(Mark One) | |
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT |
For the quarterly period ended: September 30, 2018 | |
or | |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT |
For the transition period from ____________to ____________ |
Delaware | 77-0565408 |
(Sate or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
1299 Orleans Drive, Sunnyvale, California | 94089 |
(Address of principal executive offices) | (Zip Code) |
(408) 543-1500 | |
(Registrant’s telephone number, including area code) |
Page | |
September 30, 2018 | December 31, 2017 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents ($5,496 and $9,549, respectively) | $ | 395,516 | $ | 103,828 | ||||
Restricted cash ($3,252 and $7,969, respectively) | 17,931 | 44,387 | ||||||
Short-term investments | 4,494 | 26,816 | ||||||
Accounts receivable ($7,377 and $7,680, respectively) | 41,485 | 30,317 | ||||||
Inventories, net | 134,725 | 90,260 | ||||||
Deferred cost of revenue | 66,009 | 92,488 | ||||||
Customer financing receivable ($5,496 and $5,209, respectively) | 5,496 | 5,209 | ||||||
Prepaid expense and other current assets ($5,727 and $6,365, respectively) | 32,876 | 26,676 | ||||||
Total current assets | 698,532 | 419,981 | ||||||
Property, plant and equipment, net ($406,784 and $430,464, respectively) | 471,074 | 497,789 | ||||||
Customer financing receivable, non-current ($68,535 and $72,677, respectively) | 68,535 | 72,677 | ||||||
Restricted cash ($27,778 and $26,748, respectively) | 30,779 | 32,397 | ||||||
Deferred cost of revenue, non-current | 139,217 | 160,683 | ||||||
Other long-term assets ($4,702 and $3,767, respectively) | 37,008 | 37,460 | ||||||
Total assets | $ | 1,445,145 | $ | 1,220,987 | ||||
Liabilities, Convertible Redeemable Preferred Stock and Stockholders’ Equity (Deficit) | ||||||||
Current liabilities | ||||||||
Accounts payable ($549 and $520, respectively) | $ | 59,818 | $ | 48,582 | ||||
Accrued warranty | 17,975 | 16,811 | ||||||
Accrued other current liabilities ($1,145 and $2,378, respectively) | 66,873 | 67,649 | ||||||
Deferred revenue and customer deposits ($786 and $786, respectively) | 105,265 | 118,106 | ||||||
Current portion of debt ($18,498 and $18,446, respectively) | 20,185 | 18,747 | ||||||
Current portion of debt from related parties ($1,737 and $1,389, respectively) | 1,737 | 1,389 | ||||||
Total current liabilities | 271,853 | 271,284 | ||||||
Preferred stock and warrant liabilities | — | 9,825 | ||||||
Derivative liabilities ($1,826 and $5,060, respectively) | 9,441 | 156,552 | ||||||
Deferred revenue and customer deposits ($8,894 and $9,482, respectively) | 290,481 | 309,843 | ||||||
Long-term portion of debt ($293,593 and $306,499, respectively) | 651,956 | 815,555 | ||||||
Long-term portion of debt from related parties ($34,765 and $35,551, respectively) | 66,933 | 105,650 | ||||||
Other long-term liabilities ($1,656 and $1,226, respectively) | 48,161 | 52,915 | ||||||
Total liabilities | 1,338,825 | 1,721,624 | ||||||
Commitments and contingencies (Note 13) | ||||||||
Redeemable noncontrolling interest | 56,446 | 58,154 | ||||||
Convertible redeemable preferred stock: 80,461,552 shares authorized at September 30, 2018 and December 31, 2017; no shares and 71,740,162 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively. Aggregate liquidation preference of $1,441,757 at December 31, 2017. | — | 1,465,841 | ||||||
Stockholders’ deficit | ||||||||
Common stock: $0.0001 par value; Common shares, no shares and 113,333,333 shares authorized at September 30, 2018 and December 31, 2017, respectively, and no shares and 10,353,269 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively. | — | 1 | ||||||
Common stock: $0.0001 par value; Class A shares, 400,000,000 shares and no shares authorized at September 30, 2018 and December 31, 2017, respectively, and 20,865,308 shares and no shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively; Class B shares, 400,000,000 shares and no shares authorized at September 30, 2018 and December 31, 2017, respectively, and 88,534,989 shares and no shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively. | 11 | — | ||||||
Additional paid-in capital | 2,387,361 | 150,804 | ||||||
Accumulated other comprehensive income (loss) | 272 | (162 | ) | |||||
Accumulated deficit | (2,472,619 | ) | (2,330,647 | ) | ||||
Total stockholders’ deficit | (84,975 | ) | (2,180,004 | ) | ||||
Noncontrolling interest | 134,849 | 155,372 | ||||||
Total equity (deficit) | 106,320 | (1,966,478 | ) | |||||
Total liabilities, convertible redeemable preferred stock and equity (deficit) | $ | 1,445,145 | $ | 1,220,987 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenue | ||||||||||||||||
Product | $ | 125,690 | $ | 45,255 | $ | 355,651 | $ | 112,855 | ||||||||
Installation | 29,690 | 14,978 | 70,053 | 41,625 | ||||||||||||
Service | 20,751 | 19,511 | 60,633 | 56,977 | ||||||||||||
Electricity | 14,059 | 14,021 | 42,095 | 41,288 | ||||||||||||
Total revenue | 190,190 | 93,765 | 528,432 | 252,745 | ||||||||||||
Cost of revenue | ||||||||||||||||
Product | 95,357 | 53,923 | 246,514 | 140,323 | ||||||||||||
Installation | 40,118 | 14,696 | 87,655 | 42,996 | ||||||||||||
Service | 22,651 | 30,058 | 66,164 | 69,585 | ||||||||||||
Electricity | 8,679 | 10,178 | 28,277 | 29,935 | ||||||||||||
Total cost of revenue | 166,805 | 108,855 | 428,610 | 282,839 | ||||||||||||
Gross profit (loss) | 23,385 | (15,090 | ) | 99,822 | (30,094 | ) | ||||||||||
Operating expenses | ||||||||||||||||
Research and development | 27,021 | 12,374 | 56,165 | 35,965 | ||||||||||||
Sales and marketing | 21,476 | 6,561 | 37,992 | 23,069 | ||||||||||||
General and administrative | 40,999 | 13,652 | 71,346 | 40,856 | ||||||||||||
Total operating expenses | 89,496 | 32,587 | 165,503 | 99,890 | ||||||||||||
Loss from operations | (66,111 | ) | (47,677 | ) | (65,681 | ) | (129,984 | ) | ||||||||
Interest expense | (17,376 | ) | (26,946 | ) | (62,645 | ) | (73,031 | ) | ||||||||
Interest expense to related parties | (1,443 | ) | (1,953 | ) | (5,378 | ) | (5,785 | ) | ||||||||
Other income (expense), net | 762 | (40 | ) | 692 | 93 | |||||||||||
Gain (loss) on revaluation of warrant liabilities and embedded derivatives | 1,655 | 572 | (21,576 | ) | 119 | |||||||||||
Net loss before income taxes | (82,513 | ) | (76,044 | ) | (154,588 | ) | (208,588 | ) | ||||||||
Income tax provision (benefit) | (3 | ) | 314 | 458 | 756 | |||||||||||
Net loss | (82,510 | ) | (76,358 | ) | (155,046 | ) | (209,344 | ) | ||||||||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (3,931 | ) | (4,527 | ) | (13,074 | ) | (14,506 | ) | ||||||||
Net loss attributable to Class A and Class B common stockholders | $ | (78,579 | ) | $ | (71,831 | ) | $ | (141,972 | ) | $ | (194,838 | ) | ||||
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted | $ | (0.97 | ) | $ | (6.97 | ) | $ | (4.13 | ) | $ | (19.06 | ) | ||||
Weighted average shares used to compute net loss per share attributable to Class A and Class B common stockholders, basic and diluted | 81,321 | 10,305 | 34,347 | 10,220 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net loss attributable to Class A and Class B stockholders | $ | (78,579 | ) | $ | (71,831 | ) | $ | (141,972 | ) | $ | (194,838 | ) | ||||
Other comprehensive loss, net of taxes | ||||||||||||||||
Unrealized gain on available-for-sale securities | 1 | 12 | 25 | 12 | ||||||||||||
Change in effective portion of interest rate swap | 1,240 | 60 | 5,156 | (243 | ) | |||||||||||
Other comprehensive income (loss) | 1,241 | 72 | 5,181 | (231 | ) | |||||||||||
Comprehensive loss | (77,338 | ) | (71,759 | ) | (136,791 | ) | (195,069 | ) | ||||||||
Comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (1,182 | ) | 3 | (4,745 | ) | 384 | ||||||||||
Comprehensive loss attributable to Class A and Class B stockholders | $ | (78,520 | ) | $ | (71,756 | ) | $ | (141,536 | ) | $ | (194,685 | ) |
Convertible Redeemable Preferred Stock | Class A and Class B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Gain (Loss) | Accumulated Deficit | Redeemable Noncontrolling Interest | Noncontrolling Interest | Total Equity (Deficit) | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances at December 31, 2017 | 71,740,162 | $ | 1,465,841 | 10,353,269 | $ | 1 | $ | 150,804 | $ | (162 | ) | $ | (2,330,647 | ) | $ | 58,154 | $ | 155,372 | $ | (1,966,478 | ) | ||||||||||||||||
Issuance of Class A common stock upon public offering, net | — | — | 20,700,000 | 2 | 282,278 | — | — | — | — | 282,280 | |||||||||||||||||||||||||||
Issuance of Class B common stock on convertible notes | — | — | 5,734,440 | 1 | 221,579 | — | — | — | — | 221,580 | |||||||||||||||||||||||||||
Issuance of Class A and B common stock upon exercise of warrants | — | — | 312,575 | — | ¹ | — | — | — | — | — | — | ||||||||||||||||||||||||||
Conversion of redeemable convertible preferred stock Series A-G | (71,740,162 | ) | (1,465,841 | ) | 71,740,162 | 7 | 1,465,834 | — | — | — | — | 1,465,841 | |||||||||||||||||||||||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | — | — | — | — | 882 | — | — | — | — | 882 | |||||||||||||||||||||||||||
Reclassification of derivative liability into additional paid-in capital | — | — | — | — | 177,208 | — | — | — | — | 177,208 | |||||||||||||||||||||||||||
Issuance of common stock | — | — | 166,667 | — | ¹ | 2,500 | — | — | — | — | 2,500 | ||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | 17,793 | — | ¹ | 478 | — | — | — | — | 478 | ||||||||||||||||||||||||||
Exercise of stock options | — | — | 375,391 | — | ¹ | 1,456 | — | — | — | — | 1,456 | ||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 84,342 | — | — | — | — | 84,342 | |||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | — | 25 | — | — | — | 25 | |||||||||||||||||||||||||||
Change in effective portion of interest rate swap agreement | — | — | — | — | — | 409 | — | 2 | 4,745 | 5,156 | |||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (6,501 | ) | (7,403 | ) | (13,904 | ) | ||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (141,972 | ) | 4,791 | (17,865 | ) | (155,046 | ) | ||||||||||||||||||||||||
Balances at September 30, 2018 | — | $ | — | 109,400,297 | $ | 11 | $ | 2,387,361 | $ | 272 | $ | (2,472,619 | ) | $ | 56,446 | $ | 134,849 | $ | 106,320 | ||||||||||||||||||
¹ Amounts are less than $0.5 thousand and round down to zero |
Convertible Redeemable Preferred Stock | Class A and Class B Common Stock | Accumulated Other Comprehensive Gain (Loss) | Accumulated Deficit | Redeemable Noncontrolling Interest | Noncontrolling Interest | Total Equity (Deficit) | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-In Capital | |||||||||||||||||||||||||||||||||
Balances at June 30, 2018 | 71,740,162 | $ | 1,465,841 | 10,570,641 | $ | 1 | $ | 166,803 | $ | 216 | $ | (2,394,040 | ) | $ | 54,940 | $ | 141,433 | $ | (2,030,647 | ) | |||||||||||||||||
Issuance of Class A common stock upon public offering, net | — | — | 20,700,000 | 2 | 282,278 | — | — | — | — | 282,280 | |||||||||||||||||||||||||||
Issuance of Class B common stock on convertible notes | — | — | 5,734,440 | 1 | 221,579 | — | — | — | — | 221,580 | |||||||||||||||||||||||||||
Issuance of Class A and B common stock upon exercise of warrants | — | — | 312,575 | — | ¹ | — | — | — | — | — | — | ||||||||||||||||||||||||||
Conversion of redeemable convertible preferred stock Series A-G | (71,740,162 | ) | (1,465,841 | ) | 71,740,162 | 7 | 1,465,834 | — | — | — | — | 1,465,841 | |||||||||||||||||||||||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | — | — | — | — | 882 | — | — | — | — | 882 | |||||||||||||||||||||||||||
Reclassification of derivative liability into additional paid-in capital | — | — | — | — | 177,208 | — | — | — | — | 177,208 | |||||||||||||||||||||||||||
Issuance of common stock | — | — | 166,667 | — | ¹ | 2,500 | — | — | — | — | 2,500 | ||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | 14,178 | — | ¹ | 238 | — | — | — | — | 238 | ||||||||||||||||||||||||||
Exercise of stock options | — | — | 161,634 | — | ¹ | 714 | — | — | — | — | 714 | ||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 69,325 | — | — | — | — | 69,325 | |||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | — | 1 | — | — | — | 1 | |||||||||||||||||||||||||||
Change in effective portion of interest rate swap agreement | — | — | — | — | — | 55 | — | — | 1,185 | 1,240 | |||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (288 | ) | (2,044 | ) | (2,332 | ) | ||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (78,579 | ) | 1,794 | (5,725 | ) | (82,510 | ) | ||||||||||||||||||||||||
Balances at September 30, 2018 | — | $ | — | 109,400,297 | $ | 11 | $ | 2,387,361 | $ | 272 | $ | (2,472,619 | ) | $ | 56,446 | $ | 134,849 | $ | 106,320 | ||||||||||||||||||
¹ Amounts are less than $0.5 thousand and round down to zero |
Convertible Redeemable Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Gain (Loss) | Accumulated Deficit | Redeemable Noncontrolling Interest | Noncontrolling Interest | Total Deficit | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances at December 31, 2016 | 71,740,162 | $ | 1,465,841 | 10,132,220 | $ | 1 | $ | 108,647 | $ | (542 | ) | $ | (2,068,048 | ) | $ | 59,320 | $ | 175,668 | $ | (1,724,954 | ) | ||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | — | 13,651 | 13,651 | |||||||||||||||||||||||||||
Issuance of common stock warrant | — | — | — | — | 9,410 | — | — | — | — | 9,410 | |||||||||||||||||||||||||||
Issuance of common stock | — | — | 64,000 | — | ¹ | 1,981 | — | — | — | — | 1,981 | ||||||||||||||||||||||||||
Exercise of stock options | — | — | 111,601 | — | ¹ | 336 | — | — | — | — | 336 | ||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | 19,650 | — | ¹ | 682 | — | — | — | — | 682 | ||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 21,540 | — | — | — | — | 21,540 | |||||||||||||||||||||||||||
Unrealized gain on available-for-sale securities | — | — | — | — | — | 12 | — | — | — | 12 | |||||||||||||||||||||||||||
Change in effective portion of interest rate swap agreement | — | — | — | — | — | 142 | — | (1 | ) | (384 | ) | (243 | ) | ||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (4,816 | ) | (8,910 | ) | (13,726 | ) | ||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | (194,838 | ) | 2,486 | (16,992 | ) | (209,344 | ) | ||||||||||||||||||||||||
Balances at September 30, 2017 | 71,740,162 | $ | 1,465,841 | 10,327,471 | $ | 1 | $ | 142,596 | $ | (388 | ) | $ | (2,262,886 | ) | $ | 56,989 | $ | 163,033 | $ | (1,900,655 | ) | ||||||||||||||||
Balances at June 30, 2017 | 71,740,162 | $ | 1,465,841 | 10,282,645 | $ | 1 | $ | 124,859 | $ | (466 | ) | $ | (2,191,055 | ) | $ | 55,814 | $ | 171,459 | $ | (1,839,388 | ) | ||||||||||||||||
Issuance of common stock warrant | — | — | — | — | 9,410 | — | — | — | — | 9,410 | |||||||||||||||||||||||||||
Issuance of common stock | — | — | 5,333 | — | ¹ | 165 | — | — | — | — | 165 | ||||||||||||||||||||||||||
Exercise of stock options | — | — | 23,529 | — | ¹ | 109 | — | — | — | — | 109 | ||||||||||||||||||||||||||
Issuance of restricted stock awards | — | — | 15,964 | — | ¹ | 568 | — | — | — | — | 568 | ||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 7,485 | — | — | — | — | 7,485 | |||||||||||||||||||||||||||
Unrealized gain on available-for-sale securities | — | — | — | — | — | 12 | — | — | — | 12 | |||||||||||||||||||||||||||
Change in effective portion of interest rate swap agreement | — | — | — | — | — | 66 | — | (2 | ) | (4 | ) | 60 | |||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (288 | ) | (2,430 | ) | (2,718 | ) | ||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | (71,831 | ) | 1,465 | (5,992 | ) | (76,358 | ) | ||||||||||||||||||||||||
Balances at September 30, 2017 | 71,740,162 | $ | 1,465,841 | 10,327,471 | $ | 1 | $ | 142,596 | $ | (388 | ) | $ | (2,262,886 | ) | $ | 56,989 | $ | 163,033 | $ | (1,900,655 | ) |
Nine Months Ended September 30, | ||||||||
2018 | 2017 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (155,046 | ) | $ | (209,344 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | 32,141 | 34,968 | ||||||
Write-off of property, plant and equipment, net | 901 | 6 | ||||||
Revaluation of derivative contracts | 26,761 | (2,764 | ) | |||||
Stock-based compensation | 87,451 | 22,349 | ||||||
Loss on long-term REC purchase contract | 150 | 60 | ||||||
Revaluation of stock warrants | (9,109 | ) | 324 | |||||
Amortization of interest expense from preferred stock warrants | 776 | 797 | ||||||
Amortization of debt issuance cost | 2,906 | 2,294 | ||||||
Amortization of debt discount from embedded derivatives | 16,597 | 31,578 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (11,168 | ) | (2,093 | ) | ||||
Inventories, net | (44,465 | ) | 31 | |||||
Deferred cost of revenue | 47,945 | (64,786 | ) | |||||
Customer financing receivable and others | 3,736 | 4,392 | ||||||
Prepaid expenses and other current assets | (6,514 | ) | (5,816 | ) | ||||
Other long-term assets | 1,052 | 2,948 | ||||||
Accounts payable | 11,236 | (2,311 | ) | |||||
Accrued warranty | 1,164 | (1,766 | ) | |||||
Accrued other current liabilities | 1,885 | 2,030 | ||||||
Deferred revenue and customer deposits | (32,203 | ) | 87,551 | |||||
Other long-term liabilities | 10,156 | 34,453 | ||||||
Net cash used in operating activities | (13,648 | ) | (65,099 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment | (4,333 | ) | (4,063 | ) | ||||
Payments for acquisition of intangible assets | (2,762 | ) | (240 | ) | ||||
Purchase of marketable securities | (15,732 | ) | (26,825 | ) | ||||
Proceeds from maturity of marketable securities | 38,250 | — | ||||||
Net cash provided by (used in) investing activities | 15,423 | (31,128 | ) | |||||
Cash flows from financing activities: | ||||||||
Borrowings from issuance of debt | — | 100,000 | ||||||
Repayment of debt | (14,036 | ) | (16,263 | ) | ||||
Repayment of debt to related parties | (990 | ) | (644 | ) | ||||
Debt issuance costs | — | (6,108 | ) | |||||
Proceeds from noncontrolling and redeemable noncontrolling interests | — | 13,652 | ||||||
Distributions to noncontrolling and redeemable noncontrolling interests | (14,192 | ) | (20,725 | ) | ||||
Proceeds from issuance of common stock | 1,456 | 336 | ||||||
Proceeds from public offerings, net of underwriting discounts and commissions | 292,529 | — | ||||||
Payments of initial public offering issuance costs | (2,928 | ) | — | |||||
Net cash provided by financing activities | 261,839 | 70,248 | ||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 263,614 | (25,979 | ) | |||||
Cash, cash equivalents, and restricted cash: | ||||||||
Beginning of period | 180,612 | 217,915 | ||||||
End of period | $ | 444,226 | $ | 191,936 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for interest | $ | 30,601 | $ | 16,874 | ||||
Cash paid during the period for taxes | 1,052 | 368 | ||||||
Non-cash investing and financing activities: | ||||||||
Liabilities recorded for property, plant and equipment | 1,874 | 72 | ||||||
Liabilities recorded for intangible assets | 3,180 | — | ||||||
Issuance of common stock warrant | — | 9,410 | ||||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 882 | — | ||||||
Conversion of redeemable convertible preferred stock into additional paid-in capital | 1,465,841 | — | ||||||
Conversion of 8% convertible promissory notes into additional paid-in capital | 221,579 | — | ||||||
Reclassification of derivative liability into additional paid-in capital | 177,208 | — | ||||||
Liabilities recorded for initial public offering in accounts payable | 1,431 | — | ||||||
Reclassification of prior year prepaid initial public offering costs to additional paid-in capital | 5,894 | — | ||||||
Issuance of common stock | — | 1,981 | ||||||
Accrued distributions to Equity Investors | 288 | 855 | ||||||
Accrued interest and issuance for notes | 20,101 | 21,737 | ||||||
Accrued interest and issuance for notes to related parties | 1,229 | 3,207 |
• | Persuasive Evidence of an Arrangement Exists. The Company relies upon non-cancelable sales agreements and purchase orders to determine the existence of an arrangement. |
• | Delivery and Acceptance has Occurred. The Company uses shipping documents and confirmation from the Company’s installations team that the deployed systems are running at full power as defined in each contract to verify delivery and acceptance. |
• | The Fee is Fixed or Determinable. The Company assesses whether the fee is fixed or determinable based on the payment terms associated with the transaction. |
• | Collectability is Reasonably Assured. The Company assesses collectability based on the customer’s credit analysis and payment history. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
2018 | 2017 | 2018 | 2017 | |||||||
Risk-free interest rate | 2.84% | 1.95% | 2.49% - 2.84% | 1.95% -2.07% | ||||||
Expected term (years) | 6.21—6.69 | 6.23—6.55 | 6.18—6.69 | 6.08—6.62 | ||||||
Expected dividend yield | — | — | — | — | ||||||
Expected volatility | 56.1 | % | 57.9 | % | 54.6% -56.1% | 57.9% - 61.0% |
Level 1 | Quoted prices in active markets for identical assets or liabilities. Financial assets utilizing Level 1 inputs typically include money market securities and U.S. Treasury securities. | |
Level 2 | Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Financial instruments utilizing Level 2 inputs include interest rate swaps. | |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial liabilities utilizing Level 3 inputs include natural gas fixed price forward contract derivatives, warrants issued to purchase the Company’s preferred stock and embedded derivatives bifurcated from convertible notes. Derivative liability valuations are performed based on a binomial lattice model and adjusted for illiquidity and/or nontransferability and such adjustments are generally based on available market evidence. |
Depreciable Lives | ||
Energy Servers | 15-21 years | |
Computers, software and hardware | 3-5 years | |
Machinery and equipment | 5-10 years | |
Furniture and fixtures | 3-5 years | |
Leasehold improvements | 1-5 years | |
Buildings | 35 years |
September 30, 2018 | December 31, 2017 | |||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||||||
Cash | $ | 84,151 | $ | 84,151 | $ | 101,356 | $ | 101,356 | ||||||||
Money market funds | 360,075 | 360,075 | 79,256 | 79,256 | ||||||||||||
$ | 444,226 | $ | 444,226 | $ | 180,612 | $ | 180,612 | |||||||||
As reported | ||||||||||||||||
Cash and cash equivalents | $ | 395,516 | $ | 395,516 | $ | 103,828 | $ | 103,828 | ||||||||
Restricted cash | 48,710 | 48,710 | 76,784 | 76,784 | ||||||||||||
$ | 444,226 | $ | 444,226 | $ | 180,612 | $ | 180,612 |
September 30, 2018 | December 31, 2017 | |||||||
Restricted cash related to PPA Entities | $ | 3,252 | $ | 7,969 | ||||
Restricted cash | 14,679 | 36,418 | ||||||
Restricted cash, current | 17,931 | 44,387 | ||||||
Restricted cash related to PPA Entities | 27,778 | 26,748 | ||||||
Restricted cash | 3,001 | 5,649 | ||||||
Restricted cash, non-current | 30,779 | 32,397 | ||||||
Total restricted cash | $ | 48,710 | $ | 76,784 |
Fair Value Measured at Reporting Date Using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
September 30, 2018 | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents | ||||||||||||||||
Money market funds | $ | 360,075 | $ | — | $ | — | $ | 360,075 | ||||||||
Short-term investments | 4,494 | — | — | 4,494 | ||||||||||||
Interest rate swap agreements | — | 1,368 | — | 1,368 | ||||||||||||
$ | 364,569 | $ | 1,368 | $ | — | $ | 365,937 | |||||||||
Liabilities | ||||||||||||||||
Derivatives | ||||||||||||||||
Natural gas fixed price forward contracts | $ | — | $ | — | $ | 11,445 | $ | 11,445 | ||||||||
Interest rate swap agreements | — | 1,845 | — | 1,845 | ||||||||||||
$ | — | $ | 1,845 | $ | 11,445 | $ | 13,290 |
Fair Value Measured at Reporting Date Using | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
December 31, 2017 | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents | ||||||||||||||||
Money market funds | $ | 79,256 | $ | — | $ | — | $ | 79,256 | ||||||||
Short-term investments | 26,816 | — | — | 26,816 | ||||||||||||
Interest rate swap agreements | — | 52 | — | 52 | ||||||||||||
$ | 106,072 | $ | 52 | $ | — | $ | 106,124 | |||||||||
Liabilities | ||||||||||||||||
Derivatives | ||||||||||||||||
Natural gas fixed price forward contracts | $ | — | $ | — | $ | 15,368 | $ | 15,368 | ||||||||
Embedded derivative on 6% promissory notes | — | — | 140,771 | 140,771 | ||||||||||||
Interest rate swap agreements | — | 5,905 | — | 5,905 | ||||||||||||
Stock warrants | ||||||||||||||||
Preferred stock warrants | — | — | 9,825 | 9,825 | ||||||||||||
$ | — | $ | 5,905 | $ | 165,964 | $ | 171,869 |
September 30, 2018 | December 31, 2017 | |||||||||||||
Number of Contracts (MMBTU)² | Fair Value | Number of Contracts (MMBTU)² | Fair Value | |||||||||||
Liabilities¹ | ||||||||||||||
Natural gas fixed price forward contracts (not under hedging relationships) | 3,457 | $ | 11,445 | 4,332 | $ | 15,368 | ||||||||
¹ Recorded in current liabilities and derivative liabilities in the consolidated balance sheets. | ||||||||||||||
² One MMBTU is a traditional unit of energy used to describe the heat value (energy content) of fuels. |
Natural Gas Fixed Price Forward Contracts | Preferred Stock Warrants | Derivative Liability | Total | |||||||||||||
Balances at December 31, 2016 | $ | 18,585 | $ | 12,885 | $ | 115,807 | $ | 147,277 | ||||||||
Settlement of natural gas fixed price forward contracts | (4,248 | ) | — | — | (4,248 | ) | ||||||||||
Embedded derivative on notes | — | — | 6,804 | 6,804 | ||||||||||||
Changes in fair value | 1,031 | (3,060 | ) | 18,160 | 16,131 | |||||||||||
Balances at December 31, 2017 | $ | 15,368 | $ | 9,825 | $ | 140,771 | $ | 165,964 | ||||||||
Settlement of natural gas fixed price forward contracts | (2,871 | ) | — | — | (2,871 | ) | ||||||||||
Embedded derivative on notes | — | — | 5,533 | 5,533 | ||||||||||||
Changes in fair value | (1,052 | ) | (8,943 | ) | 30,904 | 20,909 | ||||||||||
Conversion of preferred stock warrants liability and derivative liability to common shares | — | (882 | ) | (177,208 | ) | (178,090 | ) | |||||||||
Balances at September 30, 2018 | $ | 11,445 | $ | — | $ | — | $ | 11,445 |
September 30, 2018 | December 31, 2017 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Customer receivables: | ||||||||||||||||
Customer financing receivables | $ | 74,030 | $ | 52,037 | $ | 77,885 | $ | 55,255 | ||||||||
Debt instruments: | ||||||||||||||||
5.22% senior secured notes | $ | 81,400 | $ | 84,314 | $ | 89,564 | $ | 95,114 | ||||||||
Term loan due September 2028 | 36,502 | 42,927 | 36,940 | 46,713 | ||||||||||||
Term loan due October 2020 | 24,021 | 26,562 | 24,364 | 27,206 | ||||||||||||
6.07% senior secured notes | 82,837 | 88,291 | 84,032 | 93,264 | ||||||||||||
Term loan due December 2021 | 123,834 | 130,033 | 125,596 | 131,817 | ||||||||||||
Term loan due November 2020 | 3,631 | 4,265 | 4,887 | 5,148 | ||||||||||||
8% convertible promissory notes | — | — | 244,717 | 211,000 | ||||||||||||
5% convertible promissory notes | 34,273 | 40,548 | — | — | ||||||||||||
6% convertible promissory notes | 258,862 | 919,260 | 236,724 | 219,094 | ||||||||||||
10% notes | 95,451 | 102,162 | 94,517 | 106,124 |
September 30, 2018 | December 31, 2017 | |||||||
Raw materials | $ | 52,886 | $ | 49,963 | ||||
Work-in-progress | 27,833 | 19,998 | ||||||
Finished goods | 54,006 | 20,299 | ||||||
$ | 134,725 | $ | 90,260 |
September 30, 2018 | December 31, 2017 | |||||||
Government incentives receivable | $ | 1,060 | $ | 1,836 | ||||
Prepaid expenses and other current assets | 31,816 | 24,840 | ||||||
$ | 32,876 | $ | 26,676 |
September 30, 2018 | December 31, 2017 | |||||||
Energy Servers | $ | 511,273 | $ | 511,153 | ||||
Computers, software and hardware | 20,114 | 19,384 | ||||||
Machinery and equipment | 99,519 | 97,158 | ||||||
Furniture and fixtures | 4,848 | 4,679 | ||||||
Leasehold improvements | 22,931 | 22,799 | ||||||
Building | 40,512 | 40,512 | ||||||
Construction in progress | 11,690 | 9,898 | ||||||
710,887 | 705,583 | |||||||
Less: Accumulated depreciation | (239,813 | ) | (207,794 | ) | ||||
$ | 471,074 | $ | 497,789 |
September 30, 2018 | December 31, 2017 | |||||||
Prepaid and other long-term assets | $ | 29,940 | $ | 31,446 | ||||
Equity-method investments | 5,366 | 5,014 | ||||||
Long-term deposits | 1,702 | 1,000 | ||||||
$ | 37,008 | $ | 37,460 |
September 30, 2018 | December 31, 2017 | |||||||
Product warranty | $ | 9,765 | $ | 7,661 | ||||
Operations and maintenance services agreements | 8,210 | 9,150 | ||||||
$ | 17,975 | $ | 16,811 |
Balances at December 31, 2016 | $ | 8,104 | |
Accrued warranty, net | 7,058 | ||
Warranty expenditures during period | (7,501 | ) | |
Balances at December 31, 2017 | $ | 7,661 | |
Accrued warranty, net | 4,206 | ||
Warranty expenditures during period | (2,102 | ) | |
Balances at September 30, 2018 | $ | 9,765 |
September 30, 2018 | December 31, 2017 | |||||||
Compensation and benefits | $ | 17,241 | $ | 13,121 | ||||
Current portion of derivative liabilities | 3,849 | 5,492 | ||||||
Managed services liabilities | 4,566 | 3,678 | ||||||
Accrued installation | 8,231 | 3,348 | ||||||
Sales tax liabilities | 3,046 | 5,524 | ||||||
Interest payable | 2,169 | 5,520 | ||||||
Other | 27,771 | 30,966 | ||||||
$ | 66,873 | $ | 67,649 |
September 30, 2018 | December 31, 2017 | |||||||
Delaware grant | $ | 10,469 | $ | 10,469 | ||||
Managed services liabilities | 29,725 | 31,087 | ||||||
Other | 7,967 | 11,359 | ||||||
$ | 48,161 | $ | 52,915 |
September 30, 2018 | December 31, 2017 | |||||||
Total minimum lease payments to be received | $ | 103,013 | $ | 109,431 | ||||
Less: Amounts representing estimated executing costs | (25,836 | ) | (27,815 | ) | ||||
Net present value of minimum lease payments to be received | 77,177 | 81,616 | ||||||
Estimated residual value of leased assets | 1,051 | 1,051 | ||||||
Less: Unearned income | (4,197 | ) | (4,781 | ) | ||||
Net investment in sales-type financing leases | 74,031 | 77,886 | ||||||
Less: Current portion | (5,496 | ) | (5,209 | ) | ||||
Non-current portion of investment in sales-type financing leases | $ | 68,535 | $ | 72,677 |
Remainder of 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | |||||||||||||||||||
Future minimum lease payments, less interest | $ | 1,354 | $ | 5,594 | $ | 6,022 | $ | 6,415 | $ | 6,853 | $ | 46,742 |
Unpaid Principal Balance | Net Carrying Value | Unused Borrowing Capacity | Interest Rate | Maturity Dates | Entity | Recourse | ||||||||||||||||||||||
Current | Long- Term | Total | ||||||||||||||||||||||||||
5.22% senior secured notes | $ | 82,624 | $ | 11,840 | $ | 69,560 | $ | 81,400 | $ | — | 5.2% | March 2025 | PPA II | No | ||||||||||||||
Term loan | 40,937 | 1,737 | 34,765 | 36,502 | — | 7.5% | September 2028 | PPA IIIa | No | |||||||||||||||||||
Term loan | 24,934 | 866 | 23,155 | 24,021 | — | LIBOR plus margin | October 2020 | PPA IIIb | No | |||||||||||||||||||
6.07% senior secured notes | 83,993 | 2,308 | 80,529 | 82,837 | — | 6.1% | March 2030 | PPA IV | No | |||||||||||||||||||
Term loan | 126,088 | 3,485 | 120,349 | 123,834 | — | LIBOR plus margin | December 2021 | PPA V | No | |||||||||||||||||||
Letters of Credit | — | — | — | — | 1,504 | 2.25% | December 2021 | PPA V | No | |||||||||||||||||||
Total non-recourse debt | 358,576 | 20,236 | 328,358 | 348,594 | 1,504 | |||||||||||||||||||||||
Term loan | 3,631 | 1,686 | 1,945 | 3,631 | — | LIBOR plus margin | November 2020 | Company | Yes | |||||||||||||||||||
5% convertible promissory note | 34,273 | — | 34,273 | 34,273 | — | 5.0% | December 2020 | Company | Yes | |||||||||||||||||||
6% convertible promissory notes | 296,233 | — | 258,862 | 258,862 | — | 6.0% | December 2020 | Company | Yes | |||||||||||||||||||
10% notes | 100,000 | — | 95,451 | 95,451 | — | 10.0% | July 2024 | Company | Yes | |||||||||||||||||||
Total recourse debt | 434,137 | 1,686 | 390,531 | 392,217 | — | |||||||||||||||||||||||
Total debt | $ | 792,713 | $ | 21,922 | $ | 718,889 | $ | 740,811 | $ | 1,504 |
Unpaid Principal Balance | Net Carrying Value | Unused Borrowing Capacity | Interest Rate | Maturity Dates | Entity | Recourse | ||||||||||||||||||||||
Current | Long- Term | Total | ||||||||||||||||||||||||||
5.22% senior secured notes | $ | 91,086 | $ | 11,389 | $ | 78,175 | $ | 89,564 | $ | — | 5.2% | March 2025 | PPA II | No | ||||||||||||||
Term loan | 41,927 | 1,389 | 35,551 | 36,940 | — | 7.5% | September 2028 | PPA IIIa | No | |||||||||||||||||||
Term loan | 25,599 | 876 | 23,488 | 24,364 | — | LIBOR plus margin | October 2020 | PPA IIIb | No | |||||||||||||||||||
6.07% senior secured notes | 85,303 | 1,846 | 82,186 | 84,032 | — | 6.1% | March 2030 | PPA IV | No | |||||||||||||||||||
Term loan | 128,403 | 2,946 | 122,650 | 125,596 | — | LIBOR plus margin | December 2021 | PPA V | No | |||||||||||||||||||
Letters of Credit | — | — | — | — | 1,784 | 2.25% | December 2021 | PPA V | No | |||||||||||||||||||
Total non-recourse debt | 372,318 | 18,446 | 342,050 | 360,496 | 1,784 | |||||||||||||||||||||||
Term loan | 5,000 | 1,690 | 3,197 | 4,887 | — | LIBOR plus margin | November 2020 | Company | Yes | |||||||||||||||||||
8% convertible promissory notes | 244,717 | — | 244,717 | 244,717 | — | 8.0% | December 2019 | Company | Yes | |||||||||||||||||||
6% convertible promissory notes | 286,069 | — | 236,724 | 236,724 | — | 6.0% | December 2020 | Company | Yes | |||||||||||||||||||
10% notes | 100,000 | — | 94,517 | 94,517 | — | 10.0% | July 2024 | Company | Yes | |||||||||||||||||||
Total recourse debt | 635,786 | 1,690 | 579,155 | 580,845 | — | |||||||||||||||||||||||
Total debt | $ | 1,008,104 | $ | 20,136 | $ | 921,205 | $ | 941,341 | $ | 1,784 |
Remainder of 2018 | $ | 5,052 | |
2019 | 29,523 | ||
2020 | 392,229 | ||
2021 | 153,639 | ||
2022 | 40,059 | ||
Thereafter | 172,211 | ||
$ | 792,713 |
September 30, 2018 | December 31, 2017 | |||||||
Assets | ||||||||
Prepaid expenses and other current assets | $ | 132 | $ | — | ||||
Other long-term assets | 1,236 | 52 | ||||||
Total assets | $ | 1,368 | $ | 52 | ||||
Liabilities | ||||||||
Accrued other current liabilities | $ | 19 | $ | 845 | ||||
Derivative liabilities | 1,826 | 5,060 | ||||||
Total liabilities | $ | 1,845 | $ | 5,905 |
Balances at December 31, 2016 | $ | 6,937 | |
Loss recognized in other comprehensive loss | 669 | ||
Amounts reclassified from other comprehensive loss to earnings | (1,563 | ) | |
Net gain recognized in other comprehensive loss | (894 | ) | |
Gain recognized in earnings | (190 | ) | |
Balances at December 31, 2017 | $ | 5,853 | |
Gain recognized in other comprehensive loss | (4,796 | ) | |
Amounts reclassified from other comprehensive loss to earnings | (360 | ) | |
Net gain recognized in other comprehensive loss | (5,156 | ) | |
Gain recognized in earnings | (220 | ) | |
Balances at September 30, 2018 | $ | 477 |
Shares Authorized | Shares Issued and Outstanding | Carrying Value at Conversion | ||||||||
Series A preferred | 9,374,101 | 9,374,101 | $ | 8,956 | ||||||
Series B preferred | 7,868,854 | 7,868,854 | 11,941 | |||||||
Series C preferred | 5,979,062 | 5,979,062 | 44,928 | |||||||
Series D preferred | 6,443,818 | 6,443,818 | 102,648 | |||||||
Series E preferred | 9,486,362 | 9,486,362 | 198,264 | |||||||
Series F preferred | 14,597,248 | 13,885,893 | 376,962 | |||||||
Series G preferred | 26,712,107 | 18,702,072 | 722,142 | |||||||
80,461,552 | 71,740,162 | $ | 1,465,841 |
September 30, 2018 | December 31, 2017 | |||||||||||||
Warrants Outstanding | Fair Value of Warrants | Warrants Outstanding | Fair Value of Warrants | |||||||||||
Series F | — | $ | — | 581,182 | $ | 8,378 | ||||||||
Series G | — | — | 279,606 | 1,447 | ||||||||||
— | $ | — | 860,788 | $ | 9,825 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss attributable to common stockholders | $ | (78,579 | ) | $ | (71,831 | ) | $ | (141,972 | ) | $ | (194,838 | ) | ||||
Less: noncumulative dividends to preferred stockholders | — | — | — | — | ||||||||||||
Less: undistributed earnings to participating securities | — | — | — | — | ||||||||||||
Net loss attributable to common stockholders (basic) | (78,579 | ) | (71,831 | ) | (141,972 | ) | (194,838 | ) | ||||||||
Add: adjustments to undistributed earnings to participating securities | — | — | — | — | ||||||||||||
Net loss attributable to common stockholders (diluted) | $ | (78,579 | ) | $ | (71,831 | ) | $ | (141,972 | ) | $ | (194,838 | ) | ||||
Denominator: | ||||||||||||||||
Weighted average shares of common stock (basic) | 81,321 | 10,305 | 34,347 | 10,220 | ||||||||||||
Effect of potentially dilutive stock options | — | — | — | — | ||||||||||||
Weighted average shares of common stock (diluted) | 81,321 | 10,305 | 34,347 | 10,220 | ||||||||||||
Net loss per share attributable to common stockholders: | ||||||||||||||||
Basic and diluted | $ | (0.97 | ) | $ | (6.97 | ) | $ | (4.13 | ) | $ | (19.06 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Convertible and non-convertible redeemable preferred stock and convertible notes | 24,512 | 85,241 | 27,219 | 85,241 | ||||||||
Stock options to purchase common stock | 3,454 | 2,905 | 3,454 | 2,762 | ||||||||
Convertible redeemable preferred stock warrants | — | 60 | — | 60 | ||||||||
Convertible redeemable common stock warrants | 89 | 313 | 89 | 312 | ||||||||
28,055 | 88,519 | 30,762 | 88,375 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Cost of revenue | $ | 16,156 | $ | 1,906 | $ | 20,025 | $ | 5,543 | ||||||||
Research and development | 15,127 | 1,354 | 18,504 | 4,060 | ||||||||||||
Sales and marketing | 12,900 | 1,002 | 15,066 | 3,622 | ||||||||||||
General and administrative | 27,494 | 3,424 | 33,856 | 9,124 | ||||||||||||
$ | 71,677 | $ | 7,686 | $ | 87,451 | $ | 22,349 |
Outstanding Options/RSUs | ||||||||||||||||
Options/ RSUs Available for Grant | Number of Shares | Outstanding Options Weighted Average Exercise Price | Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||||
(in thousands) | ||||||||||||||||
Balances at December 31, 2016 | 2,768,450 | 13,171,196 | $ | 23.85 | 6.11 | $ | 74,717 | |||||||||
Added to plan | 647,159 | — | ||||||||||||||
Granted | (2,698,594 | ) | 2,698,594 | $ | 30.96 | |||||||||||
Exercised | — | (157,049 | ) | $ | 2.76 | |||||||||||
Cancelled | 967,760 | (967,760 | ) | $ | 7.44 | |||||||||||
Expired | (647,159 | ) | — | |||||||||||||
Balances at December 31, 2017 | 1,037,616 | 14,744,981 | $ | 26.42 | 6.19 | $ | 52,703 | |||||||||
Added to plan | 40,782,196 | — | ||||||||||||||
Granted | (16,853,050 | ) | 16,853,050 | $ | 16.24 | |||||||||||
Exercised | — | (395,611 | ) | $ | 4.03 | |||||||||||
Cancelled | 916,572 | (916,572 | ) | $ | 9.96 | |||||||||||
Expired | (7,348,257 | ) | — | |||||||||||||
Balances at September 30, 2018 | 18,535,077 | 30,285,848 | $ | 25.88 | 6.75 | $ | 110,750 | |||||||||
Vested and expected to vest at September 30, 2018 | 13,038,789 | $ | 26.07 | 6.67 | $ | 104,482 | ||||||||||
Exercisable at September 30, 2018 | 7,858,582 | $ | 27.51 | 5.15 | $ | 51,608 |
Number of Awards Outstanding | Weighted Average Grant Date Fair Value | ||||||
Unvested Balance at December 31, 2016 | 2,666,446 | $ | 30.95 | ||||
Granted | 552,481 | 30.96 | |||||
Vested | (33,896 | ) | 30.96 | ||||
Forfeited | (44,453 | ) | 30.95 | ||||
Unvested Balance at December 31, 2017 | 3,140,578 | 30.95 | |||||
Granted | 13,788,433 | 15.98 | |||||
Vested | (17,793 | ) | 19.67 | ||||
Forfeited | (124,649 | ) | 25.13 | ||||
Unvested Balance at September 30, 2018 | 16,786,569 | $ | 18.71 |
PPA I | PPA Company II | PPA Company IIIa | PPA Company IIIb | PPA Company IV | PPA Company V | |||||||||||||||||||
Overview: | ||||||||||||||||||||||||
Maximum size of installation (in megawatts) | 25 | 30 | 10 | 6 | 21 | 40 | ||||||||||||||||||
Term of power purchase agreements (years) | 10 | 21 | 15 | 15 | 15 | 15 | ||||||||||||||||||
First system installed | Sep-10 | Jun-12 | Feb-13 | Aug-13 | Sep-14 | Jun-15 | ||||||||||||||||||
Last system installed | Mar-13 | Nov-13 | Jun-14 | Jun-15 | Mar-16 | Dec-16 | ||||||||||||||||||
Income (loss) and tax benefits allocation to Equity Investor | 99% | 99% | 99% | 99% | 90% | 99% | ||||||||||||||||||
Cash allocation to Equity Investor | 80% | 99% | 99% | 99% | 90% | 90% | ||||||||||||||||||
Income (loss), tax and cash allocations to Equity Investor after the flip date | 22% | 5% | 5% | 5% | No flip | No flip | ||||||||||||||||||
Equity Investor ¹ | Credit Suisse | Credit Suisse | US Bank | US Bank | Exelon Corporation | Exelon Corporation | ||||||||||||||||||
Put option date ² | 10th anniversary of initial funding date | 10th anniversary of initial funding date | 1st anniversary of flip point | 1st anniversary of flip point | N/A | N/A | ||||||||||||||||||
Activity as of September 30, 2018: | ||||||||||||||||||||||||
Installed size (in megawatts) | 5 | 30 | 10 | 5 | 19 | 37 | ||||||||||||||||||
Company cash contributions | $ | 180,699 | $ | 22,442 | $ | 32,223 | $ | 22,658 | $ | 11,669 | $ | 27,932 | ||||||||||||
Company non-cash contributions ³ | $ | — | $ | — | $ | 8,655 | $ | 2,082 | $ | — | $ | — | ||||||||||||
Equity Investor cash contributions | $ | 100,000 | $ | 139,993 | $ | 36,967 | $ | 20,152 | $ | 84,782 | $ | 227,344 | ||||||||||||
Distributions to Equity Investor | $ | (81,016 | ) | $ | (116,942 | ) | $ | (3,877 | ) | $ | (1,706 | ) | $ | (4,568 | ) | $ | (65,688 | ) | ||||||
Debt financing | $ | — | $ | 144,813 | $ | 44,968 | $ | 28,676 | $ | 99,000 | $ | 131,237 | ||||||||||||
Debt repayment—principal | $ | — | $ | (62,188 | ) | $ | (4,031 | ) | $ | (3,742 | ) | $ | (15,007 | ) | $ | (5,148 | ) | |||||||
Activity as of December 31, 2017: | ||||||||||||||||||||||||
Installed size (in megawatts) | 5 | 30 | 10 | 5 | 19 | 37 | ||||||||||||||||||
Company cash contributions | $ | 180,699 | $ | 22,442 | $ | 32,223 | $ | 22,658 | $ | 11,669 | $ | 27,932 | ||||||||||||
Company non-cash contributions ³ | $ | — | $ | — | $ | 8,655 | $ | 2,082 | $ | — | $ | — | ||||||||||||
Equity Investor cash contributions | $ | 100,000 | $ | 139,993 | $ | 36,967 | $ | 20,152 | $ | 84,782 | $ | 227,344 | ||||||||||||
Distributions to Equity Investor | $ | (81,016 | ) | $ | (111,296 | ) | $ | (3,324 | ) | $ | (1,404 | ) | $ | (2,565 | ) | $ | (60,286 | ) | ||||||
Debt financing | $ | — | $ | 144,813 | $ | 44,968 | $ | 28,676 | $ | 99,000 | $ | 131,237 | ||||||||||||
Debt repayment—principal | $ | — | $ | (53,726 | ) | $ | (3,041 | ) | $ | (3,077 | ) | $ | (13,697 | ) | $ | (2,834 | ) | |||||||
¹ Investor name represents ultimate parent of subsidiary financing the project. | ||||||||||||||||||||||||
² Investor right on the certain date, upon giving the Company advance written notice, to sell the membership interests to the Company or resign or withdraw from the Company. | ||||||||||||||||||||||||
³ Non-cash contributions consisted of warrants that were issued by the Company to respective lenders to each PPA Entity, as required by such entity’s credit agreements. The corresponding values are amortized using the effective interest method over the debt term. |
September 30, 2018 | December 31, 2017 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 5,496 | $ | 9,549 | ||||
Restricted cash | 3,252 | 7,969 | ||||||
Accounts receivable | 7,377 | 7,680 | ||||||
Customer financing receivable | 5,496 | 5,209 | ||||||
Prepaid expenses and other current assets | 5,727 | 6,365 | ||||||
Total current assets | 27,348 | 36,772 | ||||||
Property and equipment, net | 406,784 | 430,464 | ||||||
Customer financing receivable, non-current | 68,535 | 72,677 | ||||||
Restricted cash | 27,778 | 26,748 | ||||||
Other long-term assets | 4,702 | 3,767 | ||||||
Total assets | $ | 535,147 | $ | 570,428 | ||||
Liabilities | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 549 | $ | 520 | ||||
Accrued other current liabilities | 1,145 | 2,378 | ||||||
Deferred revenue and customer deposits | 786 | 786 | ||||||
Current portion of debt | 20,235 | 18,446 | ||||||
Total current liabilities | 22,715 | 22,130 | ||||||
Derivative liabilities | 1,826 | 5,060 | ||||||
Deferred revenue | 8,894 | 9,482 | ||||||
Long-term portion of debt | 328,358 | 342,050 | ||||||
Other long-term liabilities | 1,656 | 1,226 | ||||||
Total liabilities | $ | 363,449 | $ | 379,948 |
September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||
Bloom | PPA Entities | Consolidated | Bloom | PPA Entities | Consolidated | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | $ | 671,184 | $ | 27,348 | $ | 698,532 | $ | 383,209 | $ | 36,772 | $ | 419,981 | ||||||||||||
Long-term assets | 238,814 | 507,799 | 746,613 | 267,350 | 533,656 | 801,006 | ||||||||||||||||||
Total assets | $ | 909,998 | $ | 535,147 | $ | 1,445,145 | $ | 650,559 | $ | 570,428 | $ | 1,220,987 | ||||||||||||
Liabilities | ||||||||||||||||||||||||
Current liabilities | $ | 247,451 | $ | 2,480 | $ | 249,931 | $ | 247,464 | $ | 3,684 | $ | 251,148 | ||||||||||||
Current portion of debt | 1,687 | 20,235 | 21,922 | 1,690 | 18,446 | 20,136 | ||||||||||||||||||
Long-term liabilities | 335,707 | 12,376 | 348,083 | 513,367 | 15,768 | 529,135 | ||||||||||||||||||
Long-term portion of debt | 390,531 | 328,358 | 718,889 | 579,155 | 342,050 | 921,205 | ||||||||||||||||||
Total liabilities | $ | 975,376 | $ | 363,449 | $ | 1,338,825 | $ | 1,341,676 | $ | 379,948 | $ | 1,721,624 |
Remainder of 2018 | $ | 2,011 | |
2019 | 8,725 | ||
2020 | 7,581 | ||
2021 | 5,097 | ||
2022 | 4,382 | ||
Thereafter | 25,249 | ||
$ | 53,045 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest paid or payable to related parties | $ | 1,443 | $ | 1,953 | $ | 5,378 | $ | 5,785 | ||||||||
Consulting expenses paid to related parties (included in general and administrative expense) | 52 | 53 | 153 | 154 |
• | Other than Tax Items relating to the proceeds of any cash grant under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 (Cash Grant), Tax Items are allocated (i) 99% to the Equity Investor and 1% to us until the last date of the calendar month in which the Equity Investor has achieved an internal rate of return equal to the Target IRR specified in the PPA II HoldCo operating agreement (Flip Date), and (ii) following the Flip Date, 5% to the Equity Investor and 95% to us. |
• | All Tax Items relating to the Cash Grant are allocated 99% to the Equity Investor and 1% to us. |
• | All cash proceeds of the Cash Grant are distributed 99% to the Equity Investor and 1% to us. |
• | All other cash available for distribution is distributed (i) 99% to the Equity Investor and 1% to us until the Flip Date, and (ii) following the Flip Date, 5% to the Equity Investor and 95% to us. |
• | Tax Items (including the ITC) are allocated (i) 99% to the Equity Investor and 1% to us. |
• | Cash available for distribution is distributed (i) until January 1, 2020, first, to the Equity Investor, a payment equal to 2% of the investor’s investment on an annual basis, and next, all remaining amounts are distributed to us; and (ii) from and after January 1, 2020, first, to the Equity Investor, a payment equal to 2% of the Equity Investor’s investment on an annual basis, and next, all remaining amounts are distributed 95.05% to us and 4.95% to the Equity Investor. |
• | Tax Items (including the ITC) are allocated 99% to the Equity Investor and 1% to us. |
• | Cash available for distribution is distributed (i) until January 1, 2021, first, to the Equity Investor, a payment equal to 2% of the investor’s investment on an annual basis, and next, all remaining amounts are distributed to us; and (ii) from and after January 1, 2021, first, to the Equity Investor, a payment equal to 2% of the Equity Investor’s investment on an annual basis, and next, all remaining amounts are distributed 95.05% to us and 4.95% to the Equity Investor. |
• | Product accepted - the number of customer acceptances of our Energy Servers in any period. We use this metric to measure the volume of deployment activity. We measure each Energy Server manufactured, shipped and accepted in terms of 100 kilowatt equivalents. |
• | Megawatts deployed - the aggregate megawatt capacity of operating Energy Servers in the field that have achieved acceptance. We use this metric to measure the total electricity-generating capacity of deployed Energy Servers, measured in megawatts. |
• | Billings for product accepted in the period - the total contracted dollar amount of the product component of all Energy Servers that are accepted in a period. We use this metric to gauge the dollar value of the product acceptances and to evaluate the change in dollar amount of acceptances between periods. |
• | Billings for installation on product accepted in the period - the total contracted dollar amount billable with respect to the installation component of all Energy Servers that are accepted. We use this metric to gauge the dollar value of the installations of our product acceptances and to evaluate the change in dollar value associated with the installation of our product acceptances between periods. |
• | Billings for annual maintenance service agreements - the dollar amount billable for one-year service contracts that have been initiated or renewed. |
• | Product costs of product accepted in the period (per kilowatt) - the average unit product cost for the Energy Servers that are accepted in a period. We use this metric to provide insight into the trajectory of product costs and, in particular, the effectiveness of cost reduction activities. |
• | Period costs of manufacturing expenses not included in product costs - the manufacturing and related operating costs that are incurred to procure parts and manufacture Energy Servers that are not included as part of product costs. |
• | Installation costs on product accepted (per kilowatt) - the average unit installation cost for Energy Servers that are accepted in a given period. This metric is used to provide insight into the trajectory of install costs and, in particular, evaluate whether our installation costs are in line with our installation billings. |
Three Months Ended September 30, | Change | |||||||||||
2018 | 2017 | Amount | % | |||||||||
Product accepted during the period (in 100 kilowatt systems) | 206 | 141 | 65 | 46.1 | % | |||||||
Megawatts deployed as of period end | 348 | MW | 277 | MW | 71 | MW | 25.6 | % |
Three Months Ended September 30, | Change | ||||||||
2018 | 2017 | Amount | % | ||||||
(dollars in thousands) | |||||||||
Billings for product accepted in the period | $115,476 | $56,876 | $58,600 | 103.0 | % | ||||
Billings for installation on product accepted in the period | $27,596 | $20,106 | $7,490 | 37.3 | % | ||||
Billings for annual maintenance service agreements | $24,532 | $23,689 | $843 | 3.6 | % |
Three Months Ended September 30, | Change | ||||||||
2018 | 2017 | Amount | % | ||||||
Product costs of product accepted in the period | $3,351/kW | $3,386/kW | $(35)/kW | (1.0 | )% | ||||
Period costs of manufacturing related expenses not included in product costs (in thousands) | $6,300 | $7,152 | $(852) | (11.9 | )% | ||||
Installation costs on product accepted in the period | $1,713/kW | $1,263/kW | $450/kW | 35.6 | % |
Nine Months Ended September 30, | Change | |||||||||||
2018 | 2017 | Amount | % | |||||||||
Product accepted during the period (in 100 kilowatt systems) | 552 | 421 | 131 | 31.1 | % | |||||||
Megawatts deployed as of period end | 348 | MW | 277 | MW | 71 | MW | 25.6 | % |
Nine Months Ended September 30, | Change | ||||||||||
2018 | 2017 | Amount | % | ||||||||
(dollars in thousands) | |||||||||||
Billings for product accepted in the period | $344,172 | $169,456 | $174,716 | 103.1 | % | ||||||
Billings for installation on product accepted in the period | $65,294 | $68,936 | ($3,642 | ) | (5.3 | )% | |||||
Billings for annual maintenance services agreements | $57,813 | $56,752 | $1,061 | 1.9 | % |
Nine Months Ended September 30, | Change | ||||||||
2018 | 2017 | Amount | % | ||||||
Product costs of product accepted in the period | $3,546/kW | $3,457/kW | $89/kW | 2.6 | % | ||||
Period costs of manufacturing related expenses not included in product costs (in thousands) | $20,103 | $23,263 | $(3,160) | (13.6 | )% | ||||
Installation costs on product accepted in the period | $1,439/kW | $1,481/kW | $(42)/kW | (2.8 | )% |
Three Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Product | $ | 125,690 | $ | 45,255 | $ | 80,435 | 177.7 | % | |||||||
Installation | 29,690 | 14,978 | 14,712 | 98.2 | % | ||||||||||
Service | 20,751 | 19,511 | 1,240 | 6.4 | % | ||||||||||
Electricity | 14,059 | 14,021 | 38 | 0.3 | % | ||||||||||
Total revenue | $ | 190,190 | $ | 93,765 | $ | 96,425 | 102.8 | % |
Three Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Cost of revenue: | |||||||||||||||
Product | $ | 95,357 | $ | 53,923 | $ | 41,434 | 76.8 | % | |||||||
Installation | 40,118 | 14,696 | 25,422 | 173.0 | % | ||||||||||
Service | 22,651 | 30,058 | (7,407 | ) | (24.6 | )% | |||||||||
Electricity | 8,679 | 10,178 | (1,499 | ) | (14.7 | )% | |||||||||
Total cost of revenue | $ | 166,805 | $ | 108,855 | $ | 57,950 | 53.2 | % |
Three Months Ended September 30, | Change | |||||||||||
2018 | 2017 | |||||||||||
(dollars in thousands) | ||||||||||||
Gross Profit (Loss): | ||||||||||||
Product | $ | 30,333 | $ | (8,668 | ) | $ | 39,001 | |||||
Installation | (10,428 | ) | 282 | (10,710 | ) | |||||||
Service | (1,900 | ) | (10,547 | ) | 8,647 | |||||||
Electricity | 5,380 | 3,843 | 1,537 | |||||||||
Total Gross Profit (Loss) | $ | 23,385 | $ | (15,090 | ) | $ | 38,475 | |||||
Gross Margin | ||||||||||||
Product | 24 | % | (19 | )% | ||||||||
Installation | (35 | )% | 2 | % | ||||||||
Service | (9 | )% | (54 | )% | ||||||||
Electricity | 38 | % | 27 | % | ||||||||
Total Gross Margin | 12 | % | (16 | )% |
Three Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Research and development | $ | 27,021 | $ | 12,374 | $ | 14,647 | 118.4 | % | |||||||
Sales and marketing | 21,476 | 6,561 | 14,915 | 227.3 | % | ||||||||||
General and administrative | 40,999 | 13,652 | 27,347 | 200.3 | % | ||||||||||
Total operating expenses | $ | 89,496 | $ | 32,587 | $ | 56,909 | 174.6 | % |
Three Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Cost of revenue | $ | 16,156 | $ | 1,906 | $ | 14,250 | 747.6 | % | |||||||
Research and development | 15,127 | 1,354 | 13,773 | 1,017.2 | % | ||||||||||
Sales and marketing | 12,900 | 1,002 | 11,898 | 1,187.4 | % | ||||||||||
General and administrative | 27,494 | 3,424 | 24,070 | 703.0 | % | ||||||||||
Total stock-based compensation | $ | 71,677 | $ | 7,686 | $ | 63,991 | 832.6 | % |
Three Months Ended September 30, | Change | |||||||||||
2018 | 2017 | |||||||||||
(dollars in thousands) | ||||||||||||
Interest expense | $ | (18,819 | ) | $ | (28,899 | ) | $ | 10,080 | ||||
Other income (expense), net | 762 | (40 | ) | 802 | ||||||||
Gain (loss) on revaluation of warrant liabilities and embedded derivatives | 1,655 | 572 | 1,083 | |||||||||
Total other expense | $ | (16,402 | ) | $ | (28,367 | ) | $ | 11,965 |
Three Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Income tax provision (benefit) | $ | (3 | ) | $ | 314 | $ | (317 | ) | (101.0 | )% |
Three Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | $ | (3,931 | ) | $ | (4,527 | ) | $ | 596 | 13.2 | % |
Three Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Net loss attributable to Class A and Class B common stockholders | $ | (78,579 | ) | $ | (71,831 | ) | $ | (6,748 | ) | (9.4 | )% |
Three months ended September 30, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
GAAP | Stock-Based Compensation | Non-GAAP | GAAP | Stock-Based Compensation | Non-GAAP | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Product | $ | 125,690 | $ | — | $ | 125,690 | $ | 45,255 | $ | — | $ | 45,255 | ||||||||||||
Installation | 29,690 | — | 29,690 | 14,978 | — | 14,978 | ||||||||||||||||||
Service | 20,751 | — | 20,751 | 19,511 | — | 19,511 | ||||||||||||||||||
Electricity | 14,059 | — | 14,059 | 14,021 | — | 14,021 | ||||||||||||||||||
Total revenue | 190,190 | — | 190,190 | 93,765 | — | 93,765 | ||||||||||||||||||
Cost of revenue | ||||||||||||||||||||||||
Product | 95,357 | 12,276 | 83,081 | 53,923 | 1,497 | 52,426 | ||||||||||||||||||
Installation | 40,118 | 2,238 | 37,880 | 14,696 | 227 | 14,469 | ||||||||||||||||||
Service | 22,651 | 1,642 | 21,009 | 30,058 | 182 | 29,876 | ||||||||||||||||||
Electricity | 8,679 | — | 8,679 | 10,178 | — | 10,178 | ||||||||||||||||||
Total cost of revenue | 166,805 | 16,156 | 150,649 | 108,855 | 1,906 | 106,949 | ||||||||||||||||||
Gross profit (loss) | 23,385 | (16,156 | ) | 39,541 | (15,090 | ) | (1,906 | ) | (13,184 | ) | ||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Research and development | 27,021 | 15,127 | 11,894 | 12,374 | 1,354 | 11,020 | ||||||||||||||||||
Sales and marketing | 21,476 | 12,900 | 8,576 | 6,561 | 1,002 | 5,559 | ||||||||||||||||||
General and administrative | 40,999 | 27,494 | 13,505 | 13,652 | 3,424 | 10,228 | ||||||||||||||||||
Total operating expenses | 89,496 | 55,521 | 33,975 | 32,587 | 5,780 | 26,807 | ||||||||||||||||||
Income (loss) from operations | (66,111 | ) | (71,677 | ) | 5,566 | (47,677 | ) | (7,686 | ) | (39,991 | ) | |||||||||||||
Interest expense | (18,819 | ) | — | (18,819 | ) | (28,899 | ) | — | (28,899 | ) | ||||||||||||||
Other income (expense), net | 762 | — | 762 | (40 | ) | — | (40 | ) | ||||||||||||||||
Gain (loss) on revaluation of warrant liabilities and embedded derivatives | 1,655 | — | 1,655 | 572 | — | 572 | ||||||||||||||||||
Net loss before income taxes | (82,513 | ) | (71,677 | ) | (10,836 | ) | (76,044 | ) | (7,686 | ) | (68,358 | ) | ||||||||||||
Income tax provision (benefit) | (3 | ) | — | (3 | ) | 314 | — | 314 | ||||||||||||||||
Net loss | $ | (82,510 | ) | $ | (71,677 | ) | $ | (10,833 | ) | $ | (76,358 | ) | $ | (7,686 | ) | $ | (68,672 | ) | ||||||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (3,931 | ) | — | (3,931 | ) | (4,527 | ) | — | (4,527 | ) | ||||||||||||||
Net loss attributable to Class A and Class B common stockholders | $ | (78,579 | ) | $ | (71,677 | ) | $ | (6,902 | ) | $ | (71,831 | ) | $ | (7,686 | ) | $ | (64,145 | ) |
Nine Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Product | $ | 355,651 | $ | 112,855 | $ | 242,796 | 215.1 | % | |||||||
Installation | 70,053 | 41,625 | 28,428 | 68.3 | % | ||||||||||
Service | 60,633 | 56,977 | 3,656 | 6.4 | % | ||||||||||
Electricity | 42,095 | 41,288 | 807 | 2.0 | % | ||||||||||
Total revenue | $ | 528,432 | $ | 252,745 | $ | 275,687 | 109.1 | % |
Nine Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Cost of revenue: | |||||||||||||||
Product | $ | 246,514 | $ | 140,323 | $ | 106,191 | 75.7 | % | |||||||
Installation | 87,655 | 42,996 | 44,659 | 103.9 | % | ||||||||||
Service | 66,164 | 69,585 | (3,421 | ) | (4.9 | )% | |||||||||
Electricity | 28,277 | 29,935 | (1,658 | ) | (5.5 | )% | |||||||||
Total cost of revenue | 428,610 | 282,839 | 145,771 | 51.5 | % | ||||||||||
Gross profit (loss) | $ | 76,437 | $ | (15,004 | ) | $ | 91,441 |
Nine Months Ended September 30, | Change | |||||||||||
2018 | 2017 | |||||||||||
(dollars in thousands) | ||||||||||||
Gross Profit (Loss): | ||||||||||||
Product | $ | 109,137 | $ | (27,468 | ) | $ | 136,605 | |||||
Installation | (17,602 | ) | (1,371 | ) | (16,231 | ) | ||||||
Service | (5,531 | ) | (12,608 | ) | 7,077 | |||||||
Electricity | 13,818 | 11,353 | 2,465 | |||||||||
Total Gross Profit (Loss) | $ | 99,822 | $ | (30,094 | ) | $ | 129,916 | |||||
Gross Margin | ||||||||||||
Product | 31 | % | (24 | )% | ||||||||
Installation | (25 | )% | (3 | )% | ||||||||
Service | (9 | )% | (22 | )% | ||||||||
Electricity | 33 | % | 27 | % | ||||||||
Total Gross Margin | 19 | % | (12 | )% |
Nine Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Research and development | $ | 56,165 | $ | 35,965 | $ | 20,200 | 56.2 | % | |||||||
Sales and marketing | 37,992 | 23,069 | 14,923 | 64.7 | % | ||||||||||
General and administrative | 71,346 | 40,856 | 30,490 | 74.6 | % | ||||||||||
Total operating expenses | $ | 165,503 | $ | 99,890 | $ | 65,613 | 65.7 | % |
Nine Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Cost of revenue | $ | 20,025 | $ | 5,543 | $ | 14,482 | 261.3 | % | |||||||
Research and development | 18,504 | 4,060 | 14,444 | 355.8 | % | ||||||||||
Sales and marketing | 15,066 | 3,622 | 11,444 | 316.0 | % | ||||||||||
General and administrative | 33,856 | 9,124 | 24,732 | 271.1 | % | ||||||||||
Total stock-based compensation | $ | 87,451 | $ | 22,349 | $ | 65,102 | 291.3 | % |
Nine Months Ended September 30, | Change | |||||||||||
2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||
Interest expense | $ | (68,023 | ) | $ | (78,816 | ) | $ | 10,793 | ||||
Other income (expense), net | 692 | 93 | 599 | |||||||||
Gain (loss) on revaluation of warrant liabilities and embedded derivatives | (21,576 | ) | 119 | (21,695 | ) | |||||||
Total | $ | (88,907 | ) | $ | (78,604 | ) | $ | (10,303 | ) |
Nine Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Income tax provision | $ | 458 | $ | 756 | $ | (298 | ) | (39.4 | )% |
Nine Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | $ | (13,074 | ) | $ | (14,506 | ) | $ | 1,432 | 9.9 | % |
Nine Months Ended September 30, | Change | ||||||||||||||
2018 | 2017 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Net loss attributable to Class A and Class B common stockholders | $ | (141,972 | ) | $ | (194,838 | ) | $ | 52,866 | 27.1 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
GAAP | Stock-Based Compensation | Non-GAAP | GAAP | Stock-Based Compensation | Non-GAAP | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Product | $ | 355,651 | $ | — | $ | 355,651 | $ | 112,855 | $ | — | $ | 112,855 | ||||||||||||
Installation | 70,053 | — | 70,053 | 41,625 | — | 41,625 | ||||||||||||||||||
Service | 60,633 | — | 60,633 | 56,977 | — | 56,977 | ||||||||||||||||||
Electricity | 42,095 | — | 42,095 | 41,288 | — | 41,288 | ||||||||||||||||||
Total revenue | 528,432 | — | 528,432 | 252,745 | — | 252,745 | ||||||||||||||||||
Cost of revenue | ||||||||||||||||||||||||
Product | 246,514 | 15,194 | 231,320 | 140,323 | 4,403 | 135,920 | ||||||||||||||||||
Installation | 87,655 | 2,813 | 84,842 | 42,996 | 595 | 42,401 | ||||||||||||||||||
Service | 66,164 | 2,018 | 64,146 | 69,585 | 545 | 69,040 | ||||||||||||||||||
Electricity | 28,277 | — | 28,277 | 29,935 | — | 29,935 | ||||||||||||||||||
Total cost of revenue | 428,610 | 20,025 | 408,585 | 282,839 | 5,543 | 277,296 | ||||||||||||||||||
Gross profit (loss) | 99,822 | (20,025 | ) | 119,847 | (30,094 | ) | (5,543 | ) | (24,551 | ) | ||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Research and development | 56,165 | 18,504 | 37,661 | 35,965 | 4,060 | 31,905 | ||||||||||||||||||
Sales and marketing | 37,992 | 15,066 | 22,926 | 23,069 | 3,622 | 19,447 | ||||||||||||||||||
General and administrative | 71,346 | 33,856 | 37,490 | 40,856 | 9,124 | 31,732 | ||||||||||||||||||
Total operating expenses | 165,503 | 67,426 | 98,077 | 99,890 | 16,806 | 83,084 | ||||||||||||||||||
Income (loss) from operations | (65,681 | ) | (87,451 | ) | 21,770 | (129,984 | ) | (22,349 | ) | (107,635 | ) | |||||||||||||
Interest expense | (68,023 | ) | — | (68,023 | ) | (78,816 | ) | — | (78,816 | ) | ||||||||||||||
Other income (expense), net | 692 | — | 692 | 93 | — | 93 | ||||||||||||||||||
Gain (loss) on revaluation of warrant liabilities and embedded derivatives | (21,576 | ) | — | (21,576 | ) | 119 | — | 119 | ||||||||||||||||
Net loss before income taxes | (154,588 | ) | (87,451 | ) | (67,137 | ) | (208,588 | ) | (22,349 | ) | (186,239 | ) | ||||||||||||
Income tax provision (benefit) | 458 | — | 458 | 756 | — | 756 | ||||||||||||||||||
Net loss | $ | (155,046 | ) | $ | (87,451 | ) | $ | (67,595 | ) | $ | (209,344 | ) | $ | (22,349 | ) | $ | (186,995 | ) | ||||||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (13,074 | ) | — | (13,074 | ) | (14,506 | ) | — | (14,506 | ) | ||||||||||||||
Net loss attributable to Class A and Class B common stockholders | $ | (141,972 | ) | $ | (87,451 | ) | $ | (54,521 | ) | $ | (194,838 | ) | $ | (22,349 | ) | $ | (172,489 | ) |
Nine Months Ended September 30, | Change | |||||||||||
2018 | 2017 | |||||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | (13,648 | ) | $ | (65,099 | ) | $ | 51,451 | ||||
Investing activities | 15,423 | (31,128 | ) | 46,551 | ||||||||
Financing activities | 261,839 | 70,248 | 191,591 | |||||||||
Net cash provided by (used in) | $ | 263,614 | $ | (25,979 | ) | $ | 289,593 |
Nine Months Ended September 30, | Change | |||||||||||
2018 | 2017 | |||||||||||
PPA Entities ¹ | ||||||||||||
Net cash provided by PPA operating activities | $ | 24,823 | $ | 12,791 | $ | 12,032 | ||||||
Net cash used in PPA financing activities | $ | (23,706 | ) | $ | (13,791 | ) | $ | (9,915 | ) | |||
¹ The PPA Entities' operating cash flows, which is a subset of our consolidated cash flows and represents the stand-alone cash flows prepared in accordance with US GAAP, consists principally of cash used to run the operations of the PPA Entities, the purchase of Energy Servers from us and principal reductions in loan balances. We believe this presentation of net cash provided by (used in) PPA activities is useful to provide the reader with the impact to consolidated cash flows of the PPA Entities in which we have only a minority interest. |
• | growing our sales volume; |
• | increasing sales to existing customers and attracting new customers; |
• | attracting and retaining financing partners who are willing to provide financing for sales on a timely basis and with attractive terms; |
• | continuing to improve the useful life of our fuel cell technology and reducing our warranty servicing costs; |
• | reducing the cost of producing our Energy Servers; |
• | improving the efficiency and predictability of our installation process; |
• | improving the effectiveness of our sales and marketing activities; and |
• | attracting and retaining key talent in a competitive marketplace. |
• | the timing of installations, which may depend on many factors such as availability of inventory, product quality or performance issues, or local permitting requirements, utility requirements, environmental, health and safety requirements, weather and customer facility construction schedules; |
• | size of particular installations and number of sites involved in any particular quarter; |
• | the mix in the type of purchase or financing options used by customers in a period, and the rates of return required by financing parties in such period; |
• | whether we are able to structure our sales agreements in a manner that would allow for the product and installation revenue to be recognized up front at acceptance; |
• | delays or cancellations of Energy Server installations; |
• | fluctuations in our service costs, particularly due to unaccrued costs of servicing and maintaining Energy Servers; |
• | weaker than anticipated demand for our Energy Servers due to changes in government incentives and policies; |
• | fluctuations in our research and development expense, including periodic increases associated with the pre-production qualification of additional tools as we expand our production capacity; |
• | interruptions in our supply chain; |
• | the length of the sales and installation cycle for a particular customer; |
• | the timing and level of additional purchases by existing customers; |
• | unanticipated expenses or installation delays associated with changes in governmental regulations, permitting requirements by local authorities at particular sites, utility requirements and environmental, health and safety requirements; and |
• | disruptions in our sales, production, service or other business activities resulting from disagreements with our labor force or our inability to attract and retain qualified personnel. |
• | our limited operating history at a large scale; |
• | our lack of profitability; |
• | unfamiliarity with or uncertainty about our Energy Servers and the overall perception of the distributed generation market; |
• | prices for electricity or natural gas in particular markets; |
• | competition from alternate sources of energy; |
• | warranty or unanticipated service issues we may experience; |
• | the environmental consciousness and perceived value of environmental programs to our customers; |
• | the size of our expansion plans in comparison to our existing capital base and the scope and history of operations; |
• | the availability and amount of tax incentives, credits, subsidies or other programs; and |
• | the other factors set forth in this section. |
• | The expansion or construction of any manufacturing facilities will be subject to the risks inherent in the development and construction of new facilities, including risks of delays and cost overruns as a result of factors outside our control such as delays in government approvals, burdensome permitting conditions and delays in the delivery of manufacturing equipment and subsystems that we manufacture or obtain from suppliers. |
• | It may be difficult to expand our business internationally without additional manufacturing facilities located outside the United States. Adding manufacturing capacity in any international location will subject us to new laws and regulations including those pertaining to labor and employment, environmental and export import. In addition, it brings with it the risk of managing larger scale foreign operations. |
• | We may be unable to achieve the production throughput necessary to achieve our target annualized production run rate at our current and future manufacturing facilities. |
• | Manufacturing equipment may take longer and cost more to engineer and build than expected, and may not operate as required to meet our production plans. |
• | We may depend on third-party relationships in the development and operation of additional production capacity, which may subject us to the risk that such third parties do not fulfill their obligations to us under our arrangements with them. |
• | We may be unable to attract or retain qualified personnel. |
• | cease selling or using our products that incorporate the challenged intellectual property; |
• | pay substantial damages (including treble damages and attorneys’ fees if our infringement is determined to be willful); |
• | obtain a license from the holder of the intellectual property right, which may not be available on reasonable terms or at all; or |
• | redesign our products or means of production, which may not be possible or cost-effective. |
• | conformity with applicable business customs, including translation into foreign languages and associated expenses; |
• | lack of availability of government incentives and subsidies; |
• | challenges in arranging, and availability of, financing for our customers; |
• | potential changes to our established business model; |
• | cost of alternative power sources, which could be meaningfully lower outside the United States; |
• | availability and cost of natural gas; |
• | difficulties in staffing and managing foreign operations in an environment of diverse culture, laws and customers, and the increased travel, infrastructure and legal and compliance costs associated with international operations; |
• | installation challenges which we have not encountered before which may require the development of a unique model for each country; |
• | compliance with multiple, potentially conflicting and changing governmental laws, regulations and permitting processes including environmental, banking, employment, tax, privacy and data protection laws and regulations such as the EU Data Privacy Directive; |
• | compliance with U.S. and foreign anti-bribery laws including the Foreign Corrupt Practices Act and the U.K. Anti-Bribery Act; |
• | difficulties in collecting payments in foreign currencies and associated foreign currency exposure; |
• | restrictions on repatriation of earnings; |
• | compliance with potentially conflicting and changing laws of taxing jurisdictions where we conduct business and applicable U.S. tax laws as they relate to international operations, the complexity and adverse consequences of such tax laws and potentially adverse tax consequences due to changes in such tax laws; and |
• | regional economic and political conditions. |
• | require us to dedicate a substantial portion of cash flow from operations to the payment of principal and interest on indebtedness, thereby reducing the funds available for other purposes such as working capital and capital expenditures; |
• | make it more difficult for us to satisfy and comply with our obligations with respect to our indebtedness; |
• | subject us to increased sensitivity to interest rate increases; |
• | make us more vulnerable to economic downturns, adverse industry conditions or catastrophic external events; |
• | limit our ability to withstand competitive pressures; |
• | limit our ability to invest in new business subsidiaries that are not PPA Entity-related |
• | reduce our flexibility in planning for or responding to changing business, industry and economic conditions; and/or |
• | place us at a competitive disadvantage to competitors that have relatively less debt than have we. |
• | borrow money; |
• | pay dividends or make other distributions; |
• | incur liens; |
• | make asset dispositions; |
• | make loans or investments; |
• | issue or sell share capital of our subsidiaries; |
• | issue guarantees; |
• | enter into transactions with affiliates; and |
• | merge, consolidate or sell, lease or transfer all or substantially all of our assets. |
• | overall performance of the equity markets; |
• | actual or anticipated fluctuations in our revenue and other operating results; |
• | changes in the financial projections we may provide to the public or our failure to meet these projections; |
• | failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company or our failure to meet these estimates or the expectations of investors; |
• | recruitment or departure of key personnel; |
• | the economy as a whole and market conditions in our industry; |
• | new laws, regulations or subsidies or credits or new interpretations of them applicable to our business; |
• | negative publicity related to problems in our manufacturing or the real or perceived quality of our products; |
• | rumors and market speculation involving us or other companies in our industry; |
• | announcements by us or our competitors of significant technical innovations, acquisitions, strategic partnerships or capital commitments; |
• | lawsuits threatened or filed against us; |
• | other events or factors including those resulting from war, incidents of terrorism or responses to these events; |
• | the expiration of contractual lock-up or market standoff agreements; and |
• | sales or anticipated sales of shares of our Class A common stock by us or our stockholders. |
• | provide that our board of directors will be classified into three classes of directors with staggered three year terms; |
• | permit the board of directors to establish the number of directors and fill any vacancies and newly created directorships; |
• | require super-majority voting to amend some provisions in our restated certificate of incorporation and amended and restated bylaws; |
• | authorize the issuance of “blank check” preferred stock that our board of directors could use to implement a stockholder rights plan; |
• | provide that only the chairman of our board of directors, our chief executive officer or a majority of our board of directors will be authorized to call a special meeting of stockholders; |
• | prohibit stockholder action by written consent, which thereby requires all stockholder actions be taken at a meeting of our stockholders; |
• | provide for a dual class common stock structure in which holders of our Class B common stock may have the ability to control the outcome of matters requiring stockholder approval even if they own significantly less than a majority of the outstanding shares of our common stock, including the election of directors and significant corporate transactions such as a merger or other sale of our company or substantially all of its assets; |
• | provide that the board of directors is expressly authorized to make, alter or repeal our bylaws; and |
• | establish advance notice requirements for nominations for election to our board of directors or for proposing matters that can be acted upon by stockholders at annual stockholder meetings. |
Exhibit | Document | |
3.1 ¹ | ||
3.2 ¹ | ||
31.1 ² | ||
31.2 ² | ||
32.1 ² ³ | ||
101.INS ² | XBRL Instance Document | |
101.SCH ² | XBRL Taxonomy Extension Schema Document | |
101.CAL ² | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF ² | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB ² | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE ² | XBRL Taxonomy Extension Presentation Linkbase Document | |
¹ Incorporated by reference to the indicated exhibit in our Quarterly Report on Form 10-Q filed on September 9, 2018. | ||
² Filed herewith. | ||
³ The certification furnished in Exhibits 32.1 hereto is deemed to accompany this Form 10-Q and is not deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act. |
BLOOM ENERGY CORPORATION | ||||
Date: | November 13, 2018 | By: | /s/ KR Sridhar | |
KR Sridhar | ||||
Founder, President, Chief Executive Officer and Director | ||||
(Principal Executive Officer) | ||||
By: | /s/ Randy Furr | |||
Randy Furr | ||||
Executive Vice President and | ||||
Chief Financial Officer | ||||
(Principal Financial and Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Bloom Energy Corporation; |
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)) 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. | 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 |
c. | 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: | November 13, 2018 | By: | /s/ KR Sridhar | |
KR Sridhar | ||||
Founder, President, Chief Executive Officer and Director | ||||
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Bloom Energy Corporation; |
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)) 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. | 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 |
c. | 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: | November 13, 2018 | By: | /s/ Randy Furr | |
Randy Furr | ||||
Chief Financial Officer | ||||
(Principal Financial Officer) |
1. | The 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 Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Date: | November 13, 2018 | By: | /s/ KR Sridhar | |
KR Sridhar | ||||
Founder, President, Chief Executive Officer and Director | ||||
(Principal Executive Officer) |
1. | The 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 Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Date: | November 13, 2018 | By: | /s/ Randy Furr | |
Randy Furr | ||||
Chief Financial Officer | ||||
(Principal Financial Officer) |
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Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Nov. 02, 2018 |
|
Document Information [Line Items] | ||
Entity Registrant Name | Bloom Energy Corp | |
Entity Central Index Key | 0001664703 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | true | |
Entity Small Business | false | |
Entity Ex Transition Period | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,865,308 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 88,551,155 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Revenue | $ 190,190 | $ 93,765 | $ 528,432 | $ 252,745 |
Cost of revenue | 166,805 | 108,855 | 428,610 | 282,839 |
Gross profit (loss) | 23,385 | (15,090) | 99,822 | (30,094) |
Operating expenses | ||||
Research and development | 27,021 | 12,374 | 56,165 | 35,965 |
Sales and marketing | 21,476 | 6,561 | 37,992 | 23,069 |
General and administrative | 40,999 | 13,652 | 71,346 | 40,856 |
Total operating expenses | 89,496 | 32,587 | 165,503 | 99,890 |
Loss from operations | (66,111) | (47,677) | (65,681) | (129,984) |
Interest expense | (17,376) | (26,946) | (62,645) | (73,031) |
Interest expense to related parties | (1,443) | (1,953) | (5,378) | (5,785) |
Other income (expense), net | 762 | (40) | 692 | 93 |
Gain (loss) on revaluation of warrant liabilities and embedded derivatives | 1,655 | 572 | (21,576) | 119 |
Net loss before income taxes | (82,513) | (76,044) | (154,588) | (208,588) |
Income tax provision (benefit) | (3) | 314 | 458 | 756 |
Net loss | (82,510) | (76,358) | (155,046) | (209,344) |
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (3,931) | (4,527) | (13,074) | (14,506) |
Net loss attributable to Class A and Class B common stockholders | $ (78,579) | $ (71,831) | $ (141,972) | $ (194,838) |
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted (in dollars per share) | $ (0.97) | $ (6.97) | $ (4.13) | $ (19.06) |
Weighted average shares used to compute net loss per share attributable to Class A and Class B common stockholders, basic and diluted (in shares) | 81,321 | 10,305 | 34,347 | 10,220 |
Product | ||||
Revenue | $ 125,690 | $ 45,255 | $ 355,651 | $ 112,855 |
Cost of revenue | 95,357 | 53,923 | 246,514 | 140,323 |
Installation | ||||
Revenue | 29,690 | 14,978 | 70,053 | 41,625 |
Cost of revenue | 40,118 | 14,696 | 87,655 | 42,996 |
Service | ||||
Revenue | 20,751 | 19,511 | 60,633 | 56,977 |
Cost of revenue | 22,651 | 30,058 | 66,164 | 69,585 |
Electricity | ||||
Revenue | 14,059 | 14,021 | 42,095 | 41,288 |
Cost of revenue | $ 8,679 | $ 10,178 | $ 28,277 | $ 29,935 |
Consolidated Statements of Comprehensive Loss Statement - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss attributable to Class A and Class B stockholders | $ (78,579) | $ (71,831) | $ (141,972) | $ (194,838) |
Other comprehensive loss, net of taxes | ||||
Unrealized gain on available-for-sale securities | 1 | 12 | 25 | 12 |
Change in effective portion of interest rate swap | 1,240 | 60 | 5,156 | (243) |
Other comprehensive income (loss) | 1,241 | 72 | 5,181 | (231) |
Comprehensive loss | (77,338) | (71,759) | (136,791) | (195,069) |
Comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (1,182) | 3 | (4,745) | 384 |
Comprehensive loss attributable to Class A and Class B stockholders | $ (78,520) | $ (71,756) | $ (141,536) | $ (194,685) |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ (155,046) | $ (209,344) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 32,141 | 34,968 |
Write off of property, plant and equipment, net | 901 | 6 |
Revaluation of derivative contracts | 26,761 | (2,764) |
Stock-based compensation | 87,451 | 22,349 |
Loss on long-term REC purchase contract | 150 | 60 |
Revaluation of stock warrants | (9,109) | 324 |
Common stock warrant valuation | 776 | 797 |
Amortization of debt issuance cost | 2,906 | 2,294 |
Amortization of debt discount from embedded derivatives | 16,597 | 31,578 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (11,168) | (2,093) |
Inventories, net | (44,465) | 31 |
Deferred cost of revenue | 47,945 | (64,786) |
Customer financing receivable and others | 3,736 | 4,392 |
Prepaid expenses and other current assets | (6,514) | (5,816) |
Other long-term assets | 1,052 | 2,948 |
Accounts payable | 11,236 | (2,311) |
Accrued warranty | 1,164 | (1,766) |
Accrued other current liabilities | 1,885 | 2,030 |
Deferred revenue and customer deposits | (32,203) | 87,551 |
Other long-term liabilities | 10,156 | 34,453 |
Net cash used in operating activities | (13,648) | (65,099) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (4,333) | (4,063) |
Payments for acquisition of intangible assets | (2,762) | (240) |
Purchase of marketable securities | (15,732) | (26,825) |
Proceeds from maturity of marketable securities | 38,250 | 0 |
Net cash provided by (used in) investing activities | 15,423 | (31,128) |
Cash flows from financing activities: | ||
Borrowings from issuance of debt | 0 | 100,000 |
Repayment of debt | (14,036) | (16,263) |
Repayment of debt to related parties | (990) | (644) |
Debt issuance costs | 0 | (6,108) |
Proceeds from noncontrolling and redeemable noncontrolling interests | 0 | 13,652 |
Distributions to noncontrolling and redeemable noncontrolling interests | (14,192) | (20,725) |
Proceeds from issuance of common stock | 1,456 | 336 |
Proceeds from public offerings, net of underwriting discounts and commissions | 292,529 | 0 |
Payments of initial public offering issuance costs | (2,928) | 0 |
Net cash provided by financing activities | 261,839 | 70,248 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 263,614 | (25,979) |
Beginning of period | 180,612 | 217,915 |
End of period | 444,226 | 191,936 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 30,601 | 16,874 |
Cash paid during the period for taxes | 1,052 | 368 |
Non-cash investing and financing activities: | ||
Liabilities recorded for property, plant and equipment | 1,874 | 72 |
Liabilities recorded for intangible assets | 3,180 | 0 |
Issuance of common stock warrant | 0 | 9,410 |
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 882 | 0 |
Conversion of redeemable convertible preferred stock into additional paid-in capital | 1,465,841 | 0 |
Conversion of 8% convertible promissory notes into additional paid-in capital | 221,579 | 0 |
Conversion of derivative liability into additional paid-in capital | 177,208 | 0 |
Liabilities recorded for initial public offering in accounts payable | 1,431 | 0 |
Reclassification of prior year prepaid initial public offering costs to additional paid-in capital | 5,894 | 0 |
Issuance of common stock | 0 | 1,981 |
Accrued distributions to Equity Investors | 288 | 855 |
Accrued interest and issuance for notes | 20,101 | 21,737 |
Accrued interest and issuance for notes to related parties | $ 1,229 | $ 3,207 |
Consolidated Statements of Cash Flows (Parenthetical) - Convertible promissory notes - Convertible Promissory Notes due December 2019 and 2020, Recourse |
Sep. 30, 2018 |
Jan. 18, 2018 |
Dec. 31, 2014 |
---|---|---|---|
Interest rate percentage | 5.00% | 5.00% | |
Affiliated entity | |||
Interest rate percentage | 8.00% |
Nature of Business and Liquidity |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Liquidity | Nature of Business and Liquidity Nature of Business Bloom Energy Corporation (together with its subsidiaries, the Company or Bloom Energy) designs, manufactures and sells solid-oxide fuel cell systems, or Energy Servers, for on-site power generation. The Company’s Energy Servers utilize an innovative fuel cell technology. The Energy Servers provide efficient energy generation with reduced operating costs and lower greenhouse gas emissions. By generating power where it is consumed, the systems offer increased electrical reliability and improved energy security while providing a path to energy independence. The Company was originally incorporated in Delaware under the name of Ion America Corporation on January 18, 2001 and was renamed on September 16, 2006 to Bloom Energy Corporation. To date, substantially all of the Company’s revenue has been derived from customers based in the United States. Liquidity The Company incurred operating losses and negative cash flows from operations since its inception. The Company’s ability to achieve its long-term business objectives is dependent upon, among other things, raising additional capital, the acceptance of its products and attaining future profitability. Management believes that the Company will be successful in raising additional financing from its stockholders or from other sources, in expanding operations and in gaining market share. In July 2018, the Company successfully completed an initial public stock offering (IPO) with the sale of 20,700,000 shares of Class A common stock at a price of $15.00 per share, resulting in net cash proceeds of $282.3 million net of underwriting discounts, commissions and offering costs. However, there can be no assurance that in the event the Company requires additional financing, such financing will be available on terms which are favorable or at all. Common Stock In July 2018 and just prior to the closing of the Company's IPO, the Board of Directors (the "Board") and stockholders approved the Twelfth Amended and Restated Certificate of Incorporation which authorized two new classes of common stock, Class A common stock and Class B common stock, and did not reauthorize the old 113,333,333 shares of common stock. As of July 18, 2018, the Company has 400,000,000 shares of Class A common stock authorized with a par value of $0.0001 per share and 400,000,000 shares of Class B common stock authorized with a par value of $0.0001 per share. All shares of old common stock outstanding immediately prior to the IPO were converted into an equivalent number of shares of Class B common stock. Shares of Class B common stock are voluntarily convertible into shares of Class A common stock at the option of the holder upon transfer. Class B common stock will automatically convert into Class A common stock without further action by the Company or the holder thereof, into Class A Common Stock, on the first to occur: (i) the fifth anniversary of the IPO, (ii) when the outstanding shares of Class B Common Stock represent less than five percent (5)% of the aggregate number of shares of Class A and Class B Common Stock then outstanding, (iii) a date and time, or upon an event specified in writing and delivered by KR Sridhar to the Board to convert all shares of Class B Common Stock, or (iv) immediately following the date of the death of KR Sridhar, whichever comes first. Still authorized are 80,461,552 shares of Convertible Redeemable Preferred Stock having rights and preferences, including voting rights, designated from time to time by the Board. All shares of Convertible Redeemable Preferred Stock outstanding immediately prior to the IPO were automatically converted into an equivalent number of shares of Class B common stock. Holders of Class A common stock are entitled to one vote for each share of Class A common stock held on all matters submitted to a vote of stockholders. Holders of Class B common stock are entitled to ten votes for each share of Class B common stock held on all matters submitted to a vote of stockholders. Except with respect to voting, the rights, preferences, powers and restrictions of the holders of Class A and Class B common stock are identical. In July 2018, the Company completed an initial public offering of its common shares wherein 20,700,000 shares of Class A common stock were sold into the market. Added to existing shares of Class B common stock were shares mandatorily converted from various financial instruments as a result of the IPO. See Note 8 - Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants. |
Basis of Presentation and Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Unaudited Interim Consolidated Financial Statements The consolidated balance sheets as of September 30, 2018, the consolidated statements of operations and the consolidated statements of comprehensive loss, the consolidated statements of convertible redeemable preferred stock, common stock and stockholders' equity (deficit) for the three and nine months ended September 30, 2018, and 2017, the consolidated statements of cash flows for the nine months ended September 30, 2018 and 2017 as well as other information disclosed in the accompanying notes, are unaudited. The consolidated balance sheet as of December 31, 2017 was derived from the audited consolidated financial statements as of that date. The interim consolidated financial statements and the accompanying notes should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained within the Company's Form S-1 filed with the Securities and Exchange Commission which was declared effective on July 24, 2018. The Company's consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP) for interim financial information and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. Principles of Consolidation These consolidated financial statements reflect the accounts and operations of the Company and those of its subsidiaries in which the Company has a controlling financial interest. The Company uses a qualitative approach in assessing the consolidation requirement for its variable interest entities, which the Company refers to as its power purchase agreement entities (PPA Entities). This approach focuses on determining whether the Company has the power to direct those activities of the PPA Entities that most significantly affect their economic performance and whether the Company has the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the PPA Entities. For all periods presented, the Company has determined that it is the primary beneficiary in all of its operational PPA Entities. The Company evaluates its relationships with the PPA Entities on an ongoing basis to ensure that it continues to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. For additional information, see Note 12 - Power Purchase Agreement Programs. Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Significant estimates include assumptions used to compute the best estimate of selling-prices (BESP), the fair value of lease and non-lease components such as estimated output, efficiency and residual value of the Energy Servers, estimates for inventory write-downs, estimates for future cash flows and the economic useful lives of property, plant and equipment, the valuation of other long-term assets, the valuation of certain accrued liabilities such as derivative valuations, estimates for accrued warranty and extended maintenance, estimates for recapture of U.S. Treasury grants and similar grants, estimates for income taxes and deferred tax asset valuation allowances, warrant liabilities, stock-based compensation costs and estimates for the allocation of profit and losses to the noncontrolling interests. Actual results could differ materially from these estimates under different assumptions and conditions. Authorized Shares and Reverse Stock Split The Company’s board of directors and stockholders approved an amended and restated certificate of incorporation to effect a 2-for-3 reverse stock split of the Company’s Class B common stock on July 5, 2018 and July 18, 2018, respectively. The Company filed the amended and restated certificate of incorporation on July 19, 2018 that effected the 2-for-3 reverse stock split. The financial statements have been retrospectively adjusted to give effect to the reverse stock split, including reclassifying an amount equal to the reduction in par value of Class B common stock to accumulated deficit. Revenue Recognition The Company primarily earns revenue from the sale and installation of its Energy Servers both to direct and to lease customers by providing services under its operations and maintenance services contracts and by selling electricity to customers under power purchase agreements. The Company offers its customers several ways to finance their purchase of a Bloom Energy Server. Customers may choose to purchase the Company’s Energy Servers outright. Customers may also lease the Company’s Energy Servers through one of the Company’s financing partners via the Company’s managed services program or as a traditional lease. Finally, customers may purchase electricity through the Company’s Power Purchase Agreement Programs. Direct Sales - To date, the Company has never sold an Energy Server without a maintenance service agreement, or vice-versa, nor does it have plans to do so in the near future. As a result, the Company recognizes revenue from contracts with customers for the sales of products and services included within these contracts in accordance with ASC 605-25, Revenue Recognition for Multiple-Element Arrangements. Revenue from the sale and installation of Energy Servers to direct customers is recognized when all of the following criteria are met:
Most of the Company’s arrangements are multiple-element arrangements with a combination of Energy Servers, installation and maintenance services. Products and services, including installation, generally qualify as separate units of accounting. For multiple-element arrangements, the Company allocates revenue to each unit of accounting based on an estimated selling price at the arrangement inception. The estimated selling price for each element is based upon the following hierarchy: vendor-specific objective evidence (VSOE) of selling price, if available; third-party evidence (TPE) of selling price, if VSOE of selling price is not available; or best estimate of selling price (BESP) if neither VSOE of selling price nor TPE of selling price are available. The total arrangement consideration is allocated to each separate unit of accounting using the relative estimated selling prices of each unit based on the aforementioned selling price hierarchy. The Company limits the amount of revenue recognized for delivered elements to an amount that is not contingent upon future delivery of additional products or services or upon meeting any specified performance conditions. The Company has not been able to obtain reliable evidence of the selling price of the standalone Energy Server. Given that the Company has never sold an Energy Server without a maintenance service agreement, and vice-versa, the Company has no evidence of selling prices for either and virtually no customers have elected to cancel their maintenance agreements while continuing to operate the Energy Servers. The Company’s objective is to determine the price at which it would transact business if the items were being sold separately. As a result, the Company's estimate of its selling price is driven primarily by its expected margin on both the Energy Server and maintenance service agreement based on their respective costs or, in the case of maintenance service agreements, the estimated costs to be incurred during the service period. Costs for Energy Servers include all direct and indirect manufacturing costs, applicable overhead costs and costs for normal production inefficiencies (i.e., variances). The Company then applies a margin to the Energy Servers to determine the selling price to be used in its BESP model. Costs for maintenance service arrangements are estimated over the life of the maintenance contracts and include estimated future service costs and future product costs. Product costs over the period of the service arrangement are impacted significantly by the longevity of the fuel cells themselves. After considering the total service costs, the Company applies a slightly lower margin to its service costs than to its Energy Servers as it best reflects the Company’s long-term service margin expectations. As the Company’s business offerings and eligibility for the Investment Tax Credit, or ITC, evolve over time, the Company may be required to modify its estimated selling prices in subsequent periods and the Company’s revenue could be adversely affected. The Company does not offer extended payment terms or rights of return for its products. Upon shipment of the product, the Company defers the product’s revenue until the acceptance criteria have been met. Such amounts are recorded within deferred revenue in the consolidated balance sheets. The related cost of such product is also deferred as a component of deferred cost of goods sold in the consolidated balance sheets until customer acceptance. Prior to shipment of the product, any prepayment made by the customer is recorded as customer deposits. Customer deposits were $19.1 million and $10.2 million as of September 30, 2018 and December 31, 2017, respectively, and were included in deferred revenue and customer deposits in the consolidated balance sheets. Traditional Leases - Under this financing option, the Company sells its Energy Servers through a direct sale to a financing partner who, in turn, leases the Energy Servers to the customer under a lease agreement between the customer and the financing partner. In addition, the Company contracts with the customer to provide extended maintenance services from the end of the standard one-year warranty period extending for the remaining duration of the lease term. Payments received are recorded within deferred revenue in the consolidated balance sheets until the acceptance criteria as defined within the customer contract are met. The related cost of such product is also deferred as a component of deferred cost in the consolidated balance sheets, until acceptance. The Company also sells extended maintenance services to its customers that effectively extend the standard warranty coverage. Payments from customers for the extended maintenance contracts are received at the beginning of each service year. Accordingly, the customer payment received is recorded as deferred revenue and revenue is recognized ratably over the extended maintenance contract. As discussed within the Direct Sales section above, the Company’s arrangements with its traditional lease customers are also multiple-element arrangements as they include a combination of Energy Servers, installation and extended maintenance services. Accordingly, the Company recognizes revenue from contracts with customers for the sales of products and services included within these contracts in accordance with ASC 605-25, Revenue Recognition - Multiple-Element Arrangements. Extended Maintenance Services - The Company typically provides to its direct sales customers a standard one-year warranty against manufacturing or performance defects. The Company also sells to these customers extended maintenance services that effectively extend the standard one-year warranty coverage at the customer’s option. These customers generally have an option to renew or cancel the extended maintenance services on an annual basis. Revenue is recognized from extended maintenance services ratably over the term of the service (or annual renewal period) using the estimates of value, as discussed above. Sale-Leaseback (Managed Services) - The Company is a party to master lease agreements that provide for the sale of Energy Servers to third-parties and the simultaneous leaseback of the systems, which the Company then subleases to its customers. In sale-leaseback sublease arrangements (also referred to as managed services), the Company first determines whether the Energy Servers under the sale-leaseback arrangement are “integral equipment”. An Energy Server is determined to be integral equipment when the cost to remove the system from its existing location, including the shipping costs of the Energy Server at the new site including any diminution in fair value, exceeds 10% of the fair value of the Energy Server at the time of its original installation. As the Energy Servers are determined not to be integral equipment, the Company determines if the leaseback is classified as a capital lease or an operating lease. The Company’s managed services arrangements are classified as operating leases. As operating leases, the Company recognizes a portion of the net revenue, net of any commitments made to the customer to cover liabilities associated with insurance, property taxes and/or incentives recorded as managed service liabilities, and the associated cost of sale and then defers the portion of net revenue and cost of sale that represents the gross profit that is equal to the present value of the future minimum lease payments over the master leaseback term. For both capital and operating leasebacks, the Company records the net deferred gross profit in its consolidated balance sheet as deferred income and then amortizes the deferred income over the leaseback term as a reduction to the leaseback rental expense included in operating leases. In connection with the Company’s common stock award agreement with a managed services customer, the share issuances are recorded as a reduction of product revenue when the installation milestones are achieved and are recorded as additional paid-in capital when the shares are issued. Revenue Recognized from Power Purchase Agreement Programs (See Note 12) In 2010, the Company began offering its Energy Servers through its Bloom Electrons financing program. This program is financed via a special purpose Investment Company and Operating Company, referred to as a PPA Entity, and are owned partly by the Company and partly by third-party investors. The investors contribute cash to the PPA Entity in exchange for an equity interest, which then allows the PPA Entity to purchase the Energy Server from the Company. The cash contributions held are classified as short-term or long-term restricted cash according to the terms of each power purchase agreement (PPA). As the Company identifies end customers, the PPA Entity enters into a PPA with the end customer pursuant to which the customer agrees to purchase the power generated by the Energy Server at a specified rate per kilowatt hour for a specified term, which can range from 10 to 21 years. The PPA Entity typically enters into a maintenance services agreement with the Company following the first year of service to extend the standard one-year warranty service and performance guarantees. This intercompany arrangement is eliminated in consolidation. Those power purchase agreements that qualify as leases are classified as either sales-type leases or operating leases and those that do not qualify as leases are classified as tariff agreements. For both operating leases and tariff agreements, income is recognized as contractual amounts are due when the electricity is generated and presented within Electricity Revenue on the consolidated statements of operations. Sales-Type Leases - Certain arrangements entered into by certain Operating Companies, including Bloom Energy 2009 PPA Project Company, LLC (PPA I), 2012 ESA Project Company, LLC (PPA Company IIIa) and 2013B ESA Project Company, LLC (PPA Company IIIb), qualify as sales-type leases in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 840, Leases (ASC 840). The Company is responsible for the installation, operation and maintenance of the Energy Servers at the customers' sites, including running the Energy Servers during the term of the PPA which ranges from 10 to 15 years. Based on the terms of the customer contracts, the Company may also be obligated to supply fuel for the Energy Servers. The amount billed for the delivery of the electricity to PPA I’s customers primarily consists of returns on the amounts financed including interest revenue, service revenue and fuel revenue for certain arrangements. The Company is obligated to supply fuel to the Energy Servers that deliver electricity under the PPA I agreements. Based on the customer offtake agreements, the customers pay an all-inclusive rate per kWh of electricity produced by the Energy Servers. The consideration received under the PPA I agreements primarily consists of returns on the amounts financed including interest revenue, service revenue and fuel revenue on the consolidated statements of operations. As the Power Purchase Agreement Programs contain a lease, the consideration received is allocated between the lease elements (lease of property and related executory costs) and non-lease elements (other products and services, excluding any derivatives) based on relative fair value in accordance with ASC 605-25-13A (b). Lease elements include the leased system and the related executory costs (i.e. installation of the system, electricity generated by the system, maintenance costs). Non-lease elements include service, fuel and interest related to the leased systems. Service revenue and fuel revenue are recognized over the term of the PPA as electricity is generated. The interest component related to the leased system is recognized as interest revenue over the life of the lease term. The customer has the option to purchase the Energy Servers at the then fair market value at the end of the PPA contract term. Service revenue related to sales-type leases of $0.8 million and $1.0 million for the three months ended September 30, 2018 and 2017, respectively, and service revenue of $2.6 million and $3.1 million for the nine months ended September 30, 2018 and 2017, respectively, is included in electricity revenue in the consolidated statements of operations. Fuel revenue of $0.1 million and $0.3 million for the three months ended September 30, 2018 and 2017, respectively, and fuel revenue of $0.4 million and $0.8 million for the nine months ended September 30, 2018 and 2017, respectively, is included in electricity revenue in the consolidated statements of operations. Interest revenue of $0.4 million and $0.5 million for the three months ended September 30, 2018 and 2017, respectively, and interest revenue of $1.1 million and $1.5 million for the nine months ended September 30, 2018 and 2017, respectively, is included in electricity revenue in the consolidated statements of operations. Product revenue associated with the sale of the Energy Servers under the PPAs that qualify as sales-type leases is recognized at the present value of the minimum lease payments, which approximates fair value, assuming all other conditions for revenue recognition noted above have also been met. A sale is typically recognized as revenue when an Energy Server begins generating electricity and has been accepted, which is consistent across all purchase options in that acceptance generally occurs after the Energy Server has been installed and is running at full power as defined in each contract. There was no product revenue recognized under sales-type leases for the three and nine months ended September 30, 2018 and 2017. Operating Leases - Certain Power Purchase Agreement Program leases entered into by PPA Company IIIa, PPA Company IIIb, 2014 ESA Holdco, LLC (PPA Company IV) and 2015 ESA Holdco, LLC (PPA Company V) that are leases in substance but do not meet the criteria of sales-type leases or direct financing leases in accordance with ASC 840 are accounted for as operating leases. Revenue under these arrangements is recognized as electricity sales and service revenue and is provided to the customer at rates specified under the contracts. During the three months ended September 30, 2018 and 2017, revenue from electricity sales amounted to $7.8 million and $7.4 million, respectively. During the nine months ended September 30, 2018 and 2017, revenue from electricity sales amounted to $23.2 million and $21.6 million, respectively. During the three months ended September 30, 2018 and 2017, service revenue amounted to $3.8 million and $3.8 million, respectively. During the nine months ended September 30, 2018 and 2017, service revenue amounted to $11.4 million and $11.6 million, respectively. Tariff Agreement - PPA Company II entered into an agreement with Delmarva, PJM Interconnection (PJM), a regional transmission organization, and the State of Delaware under which PPA Company II provides the energy generated from its Energy Servers to PJM and receives a tariff as collected by Delmarva. Revenue at the tariff rate is recognized as electricity sales and service revenue as it is generated over the term of the arrangement. Revenue relating to power generation at the Delmarva site of $5.8 million and $5.9 million for three months ended September 30, 2018 and 2017, respectively, and revenue relating to power generation at the Delmarva sites of $17.3 million and $17.5 million for the nine months ended September 30, 2018 and 2017, respectively, is included in electricity sales in the consolidated statements of operations. Revenue relating to power generation at the Delmarva site of $3.4 million and $3.5 million for the three months ended September 30, 2018 and 2017, respectively, and revenue relating to power generation at the Delmarva sites of $10.3 million and $10.4 million for the nine months ended September 30, 2018 and 2017, respectively, is included in service revenue in the consolidated statements of operations. Incentives and Grants Self-Generation Incentive Program (SGIP) - The Company’s PPA Entities’ customers receive payments under the SGIP, which is a program specific to the State of California that provides financial incentives for the installation of new and qualifying self-generation equipment that the Company owns. The SGIP funds are assigned to the PPA Entities by the customers and are recorded as other current assets and other long-term assets until received. For sales-type leases, the benefit of the SGIP funds are recorded as deferred revenue which is recognized as revenue when the Energy Server is accepted. For operating leases, the benefit of the SGIP funds are recorded as deferred revenue which is amortized on a straight-line basis over the PPA contract period. The SGIP program issues 50% of the fully anticipated amount in the first year the equipment is placed into service. The remaining incentive is then paid based on the size of the equipment (i.e., nameplate kilowatt capacity) over the subsequent five years. The SGIP program has operational criteria primarily related to fuel mixture and minimum output for the first five years after the qualified equipment is placed in service. If the operational criteria are not fulfilled, it could result in a partial refund of funds received. The SGIP program will expire on January 1, 2021. The Company received $0.2 million and $0.3 million of SGIP funds for the three months ended September 30, 2018 and 2017, and $1.0 million and $2.0 million for the nine months ended September 30, 2018 and 2017, respectively. There were no reductions or refunds of SGIP funds during the three and nine months ended September 30, 2018 and 2017, and no accrual has been made for a refund of any incentives. The Company makes SGIP reservations on behalf of certain of the PPA Entities. However, the PPA Entity receives the SGIP funds directly from the program and, therefore, bears the risk of loss if these funds are not paid. U.S. Treasury Grants - The Company is eligible for U.S. Treasury grants on eligible property as defined under Section 1603 of the American Recovery and Reinvestment Act of 2009. However, to be eligible for the U.S. Treasury grants, a fuel cell system must have commenced construction in 2011 either physically or through the commitment of sufficient project costs. For fuel cell systems under Power Purchase Agreement Programs, U.S. Treasury grants are considered a component of minimum lease payments. For fuel cell systems deployed under tariff legislation, the Company recorded the fuel cell systems net of the U.S. Treasury grants. U.S. Treasury grant receivables are classified as other current assets in the Company’s consolidated balance sheets. For operating leases, the benefit of the U.S. Treasury grant is recorded as deferred revenue and is amortized on a straight-line basis over the PPA contract period. No such grant funds have been accrued or received in the nine months ended September 30, 2018 and 2017. Investment Tax Credits - Through December 31, 2016, the Company’s Energy Servers were eligible for federal ITCs that accrued to eligible property under Internal Revenue Code Section 48. Under the Company's Power Purchase Agreement Programs, ITCs are primarily passed through to Equity Investors with approximately 1% to 10% of incentives received by the Company. These incentives are accounted for by using the flow-through method. On February 9, 2018, the U.S. Congress passed legislation to extend the federal investment tax credits for fuel cell systems applicable retroactively to January 1, 2017. Due to this reinstatement of ITC in 2018, the benefit of ITC to total revenue was $125.7 million in the nine months ended September 30, 2018, which included $45.5 million of revenue benefit related to the retroactive ITC for 2017 acceptances. The ITC program has operational criteria for the first five years after the qualified equipment is placed in service. If the qualified energy property is disposed or otherwise ceases to be investment credit property before the close of the five year recapture period is fulfilled, it could result in a partial reduction of the incentives. No ITC recapture has occurred during the three and nine months ended September 30, 2018 and 2017. Renewable Energy Credits (RECs) - RECs are tradeable energy credits that represent one megawatt hour of electricity generated from an eligible renewable energy resource generated in the U.S. RECs are primarily "held for use" and are presented as part of other current assets and other long-term assets in the consolidated balance sheets until the RECs are sold and accounted for as revenue. The Company accounts for such RECs as output from the facility where they originate. The Company values these RECs at the lower of cost or market at the end of each reporting period. To the extent the PPA Entities do not produce enough RECs to satisfy the requirements under certain PPAs, the Company may also acquire RECs under stand-alone purchase agreements with third parties to satisfy these REC obligations. Under PPAs with certain customers, the PPA Entities are required to deliver a specified quantity of biogas RECs or Western Electricity Coordinating Council (WECC) RECs. In order to meet these obligations, the PPA Entities may enter into REC purchase agreements with third parties to purchase a fixed quantity of the relevant RECs at a fixed price and on a fixed schedule. The PPA Entities utilize the Western Renewable Energy Information System (WREGIS), an independent tracking system for the region covered by the WECC, which allows the PPA Entities to manage RECs purchased and deliver the RECs to satisfy the customer obligation. Purchased RECs used to satisfy customer obligations are recorded at cost and are presented as part of other current assets and other long-term assets in the consolidated balance sheets. Costs of RECs purchased are expensed as the obligation to provide such RECs to customers occurs. The Company estimates the number of excess RECs it will ultimately acquire under the non-cancelable purchase contracts over the number required to satisfy its obligations to its customers. The Company records a purchase commitment loss if the fair value of RECs is less than the fixed purchase price amount. The purchase commitment loss is recorded on the consolidated balance sheets as a component of other current liabilities and other long-term liabilities. Components of Revenue and Cost of Revenue Revenue - The Company primarily recognizes revenue from the sale and installation of Energy Servers, from the sale of electricity and by providing services under extended operations and under maintenance services contracts (together, service agreements). Product Revenue - All of the Company’s product revenue is generated from the sale of the Company's Energy Servers to direct purchase and lease customers. The Company generally begins to recognize product revenue from contracts with customers once the Company achieves acceptance; that is, generally when the system has been installed and is running at full power as defined in each contract. All of the Company’s product arrangements contain multiple elements representing a combination of revenue from Energy Servers, from installation and from maintenance services. Upon acceptance, the Company allocates fair value to each of these elements and the Company limits the amount of revenue recognized for delivered elements up to an amount that is not contingent upon future delivery of additional products or services or upon meeting any specified performance conditions. The sale of the Company’s Energy Servers also includes a standard one-year warranty, the estimated cost of which is recorded as a component of cost of product revenue. Installation Revenue - All of the Company’s installation revenue is generated from the sale and installation of the Company's Energy Servers to direct purchase and lease customers. The Company generally begins to recognize installation revenue from contracts with customers for the sales of its Energy Servers once the Company achieves acceptance; that is, generally when the system has been installed and running at full power. Service Revenue - Service revenue is generated from operations and maintenance services agreements that extend the standard one-year warranty coverage beyond the initial first year for Energy Servers sold under direct purchase, traditional lease and managed services sales. Customers can renew these agreements on an annual basis. Revenue is recognized ratably over the term of the renewed one-year service period. The Company anticipates that almost all of its customers will continue to renew their maintenance services agreements each year. Electricity Revenue - The Company’s PPA Entities purchase Energy Servers from the Company and sell electricity produced by these systems to customers through long-term power purchase agreements (PPAs). Customers are required to purchase all of the electricity produced by the Energy Servers at agreed-upon rates over the course of the PPA's contractual term. The Company recognizes revenue from the PPAs as the electricity is provided over the term of the agreement. Cost of Product Revenue - Cost of product revenue consists of costs of Energy Servers that the Company sells to direct and lease customers. It includes costs paid to the Company’s materials suppliers, personnel costs, certain allocated costs, shipping costs, provisions for excess and obsolete inventory and the depreciation costs of the Company’s equipment. Estimated standard one-year warranty costs are also included in cost of product revenue, see Warranty Costs below. Cost of Installation Revenue - Cost of installation revenue consists of the costs to install the Energy Servers that the Company sells to direct and lease customers. It includes costs paid to the Company’s materials and service providers, personnel costs and allocated costs. Cost of Service Revenue - Cost of service revenue consists of costs incurred under maintenance service contracts for all customers including direct sales, lease and Power Purchase Agreement Program customers. It includes personnel costs for the Company’s customer support organization, certain allocated costs and extended maintenance-related product repair and replacement costs. Cost of Electricity Revenue - Cost of electricity revenue primarily consists of the depreciation of the cost of the Energy Servers owned by the PPA Entities and the cost of gas purchased in connection with the Company’s first PPA Entity. The cost of electricity revenue is generally recognized over the term of the customer’s PPA contract. The cost of depreciation of the Energy Servers is reduced by the amortization of any U.S. Treasury Department grant payment in lieu of the energy investment tax credit associated with these systems. Warranty Costs - The Company generally warrants its products sold to its direct customers for one year following the date of acceptance of the products (the “standard one-year warranty”). Additionally as part of its master service agreements (MSAs), the Company provides output and efficiency guarantees (collectively “performance guarantees”) to its customers which contractually guarantee specified levels of efficiency and output. Expenditures related to these obligations have not been material to date. As part of both its standard one-year warranty and MSA obligations, the Company monitors the operations of the underlying systems including efficiency and output levels. Performance guarantee payments represent maintenance decisions made by the Company and are accounted for as costs of goods sold. To estimate the warranty costs, the Company continuously monitors product returns for warranty failures and maintains the reserve for the related warranty expense based on various factors including historical warranty claims, field monitoring and results of lab testing. The Company’s obligations under its standard product warranty and MSAs are generally in the form of product replacement, repair or reimbursement for higher customer electricity costs. Further, if the Energy Servers run at a lower efficiency or power output than the Company committed under its performance guarantee, the Company will reimburse the customer for this underperformance. The Company’s obligation includes ensuring the customer’s equipment operates at least at the efficiency and power output levels set forth in the customer agreement. The Company’s aggregate reimbursement obligation for this performance guarantee for each order is capped at a portion of the purchase price. The standard one-year warranty covers defects in materials and workmanship under normal use and service conditions and against manufacturing or performance defects. The Company’s warranty accrual represents its best estimate of the amount necessary to settle future and existing claims during the warranty period as of the balance sheet date. The Company accrues for warranty costs based on estimated costs that may be incurred including material costs, labor costs and higher customer electricity costs should the units not work for extended periods. Estimated costs associated with standard one-year warranty, including the performance guarantee payments, are recorded at the time of sale as a component of costs of goods sold. Shipping and Handling Costs - The Company records costs related to shipping and handling in cost of revenue. Sales and Utility Taxes - The Company recognizes revenue on a net basis for taxes charged to its customers and collected on behalf of the taxing authorities. Components of Operating Expenses Advertising and Promotion Costs - Expenses related to advertising and promotion of products are charged to sales and marketing expense as incurred. The Company did not incur any material advertising or promotion expenses during the three and nine months ended September 30, 2018 and 2017. Research and Development - The Company conducts internally funded research and development activities to improve anticipated product performance and reduce product life-cycle costs. Research and development costs are expensed as incurred and include salaries and expenses related to employees conducting research and development. Stock-Based Compensation - The Company accounts for stock options and restricted stock units (RSUs) awarded to employees and non-employee directors under the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 718 - Compensation-Stock Compensation (ASC 718) using the Black-Scholes valuation model to estimate fair value. The Black-Scholes valuation model requires the Company to make estimates and assumptions regarding the underlying stock’s fair value, the expected life of the option and RSU, the risk-free rate of return interest rate, the expected volatility of the Company's common stock price and the expected dividend yield. In developing estimates used to calculate assumptions, the Company establishes the expected term for employee options and RSUs, as well as expected forfeiture rates, based on the historical settlement experience and after giving consideration to vesting schedules. Forfeitures are estimated at the time of grant and revised in subsequent periods, if necessary, if actual forfeitures differ from initial estimates. Stock-based compensation expense is recorded net of estimated forfeitures such that expense is recorded only for those stock-based awards that are expected to vest. Previously recognized expense is reversed for the portion of awards forfeited prior to vesting as and when the forfeitures occurred. The Company typically records stock-based compensation expense under the straight-line attribution method over the vesting term, which is generally four years, and records stock-based compensation expense for performance based awards using the graded-vesting method. Stock-based compensation expense is recorded in the consolidated statements of operations based on the employees’ respective function. Stock-based compensation cost for RSUs is measured based on the fair value of the underlying shares on the date of grant. Up to the date of the Company's IPO, RSUs were subject to a time-based vesting condition and a performance-based vesting condition, both of which require satisfaction before the RSUs vest and settle for shares of common stock. The performance-based condition was tied to a liquidity event such as a sale event or the completion of the Company’s IPO. The time-based conditions range between six months and four years from the end of the lock-up period after a liquidity event. Upon completion of the Company's IPO in July 2018, the performance-based condition was satisfied and the Company began recognizing stock based compensation related to these awards. Subsequent to the Company's IPO, RSU's are only subject to a time-based vesting condition. Compensation expense for equity instruments granted to non-employees is measured on the date of performance at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measured. Compensation expense for equity instruments granted to non-employees is periodically remeasured as the underlying instruments vest. The fair value of the equity instruments is charged to earnings over the term of the service agreement. The Company records deferred tax assets for awards that result in deductions on the Company’s income tax returns, unless the Company cannot realize the deduction (i.e., the Company is in a net operating loss, or NOL, position), based on the amount of compensation cost recognized and the Company’s statutory tax rate. Beginning in the first quarter of fiscal 2017 with the adoption of ASU 2016-09 on a prospective basis, stock-based compensation excess tax benefits or deficiencies are reflected in the consolidated statements of operations as a component of the provision for income taxes. No tax benefit or expense for stock-based compensation has been recorded for the three and nine months ended September 30, 2018 and 2017, since the Company remains in an NOL position. Determining the amount of stock-based compensation to be recorded requires the Company to develop estimates for the inputs used in the Black-Scholes valuation model to calculate the grant-date fair value of stock options. The Company used the following weighted-average assumptions in applying the Black-Scholes valuation model:
The risk free interest rate for periods within the contractual life of the option is based on the U.S. Treasury zero coupon issues in effect at the grant date for periods corresponding with the expected term of option. The Company’s estimate of an expected term is calculated based on the Company’s historical share option exercise data. The Company has not and does not expect to pay dividends in the foreseeable future. The estimated stock price volatility is derived based on historical volatility of the Company’s peer group, which represents the Company’s best estimate of expected volatility. The amount of stock-based compensation recognized during a period is based on the value of that portion of the awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of the surrendered option. The Company reviews historical forfeiture data and determines the appropriate forfeiture rate based on that data. The Company reevaluates this analysis periodically and adjusts the forfeiture rate as necessary and ultimately recognizes the actual expense over the vesting period only for the shares that vest. Refer to Note 11 - Stock-Based Compensation and Employee Benefits for further discussion of the Company’s stock-based compensation arrangements. Income Taxes The Company accounts for income taxes using the liability method under Financial Accounting Standards Board Accounting Standards Codification Topic 740 - Income Taxes (ASC 740). Under this method, deferred tax assets and liabilities are determined based on net operating loss carryforwards, research and development credit carryforwards and temporary differences resulting from the different treatment of items for tax and financial reporting purposes. Deferred items are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. Additionally, the Company must assess the likelihood that deferred tax assets will be recovered as deductions from future taxable income. The Company has provided a full valuation allowance on its deferred tax assets because it believes it is more likely than not that its deferred tax assets will not be realized. The Company follows the accounting guidance in ASC 740-10, which requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company records a liability for the difference between the benefit recognized and measured pursuant to ASC 740-10 and the tax position taken or expected to be taken on the Company’s tax return. To the extent that the assessment of such tax positions change, the change in estimate is recorded in the period in which the determination is made. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite the Company’s belief that the tax return positions are fully supportable. The reserves are adjusted in light of changing facts and circumstances such as the outcome of a tax audit. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. Comprehensive Loss The Company’s comprehensive loss is comprised of the Company’s net loss and unrealized gains (losses) on the remeasurement of the effective portion of the Company’s interest rate swap agreements to fair value and on the Company’s available for sale securities. Fair Value Measurement Financial Accounting Standards Board Accounting Standards Codification Topic 820 - Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value under US GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value:
Components of Balance Sheets Cash, Cash Equivalents, Short-Term Investments and Restricted Cash - The Company considers highly liquid short-term investments with maturities of 90 days or less at the date of purchase as cash equivalents. The Company considers highly liquid investments with maturities of greater than 90 days at the reporting period end date as short-term investments. Short-term investments are reported at fair value with unrealized gains or losses, net of tax, recorded in accumulated other comprehensive income (loss). The specific identification method is used to determine the cost of any securities disposed with any realized gains or losses recognized as income or expense in condensed consolidated statements of operations. Short-term investments are anticipated to be used for current operations and are, therefore, classified as available-for-sale in current assets even though their maturities may extend beyond one year. The Company periodically reviews short-term investments for impairment. In the event a decline in value is determined to be other-than-temporary, an impairment loss is recognized. When determining if a decline in value is other-than-temporary, the Company takes into consideration the current market conditions and the duration and severity of and the reason for the decline as well as considering the likelihood that it would need to sell the security prior to a recovery of par value. As of September 30, 2018, short-term investments were comprised of $4.5 million of U.S. Treasury Bills. As of December 31, 2017, short-term investments were comprised of $26.8 million of U.S. Treasury Bills. The costs of these securities approximated their fair values and there were no material gross realized or unrealized gains or losses for the three and nine months ended September 30, 2018 and 2017, and no impairment for the periods ended September 30, 2018 and December 31, 2017. As of September 30, 2018, all investments were scheduled to mature within the next twelve months. Restricted cash is held as collateral to provide financial assurance that the Company will fulfill commitments related to its power purchase agreement financings, its debt service reserves, its maintenance service reserves and its facility lease agreements. Restricted cash that is expected to be used within one year of the balance sheet date is classified as a current asset, whereas restricted cash expected to be used more than a year from the balance sheet date is classified as a non-current asset. Derivative Financial Instruments - The Company enters into derivative forward contracts to manage its exposure to the fluctuating price of fuel under certain of its power purchase agreements entered in connection with the Bloom Electrons program (refer to Note 12 - Power Purchase Agreement Programs). In addition, the Company enters into fixed forward interest rate swap arrangements to convert variable interest rates on debt to a fixed rate. The Company also issued derivative financial instruments embedded in its 6% Notes as a means by which to provide additional incentive to investors and to obtain a lower cost cash-source of funds. Derivative transactions are governed by procedures covering areas such as authorization, counterparty exposure and hedging practices. Positions are monitored based on changes in the spot price in the commodity market and their impact on the market value of derivatives. Credit risk on derivatives arises from the potential for counterparties to default on their contractual obligations to the Company. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality. The Company does not enter into derivative transactions for trading or speculative purposes. The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value on the consolidated balance sheets. Changes in the fair value of the derivatives that qualify and are designated as cash flow hedges are recorded in accumulated other comprehensive loss on the consolidated balance sheets and for those that do not qualify for hedge accounting or are not designated hedges are recorded through earnings in the consolidated statements of operations. While the Company hedges certain of its natural gas requirements under its power purchase agreements, it has not classified these forward contracts as designated hedges for accounting purposes. Therefore, the Company records the change in the fair value of its forward contracts in cost of revenue on the consolidated statements of operations. The fair value of the forward contracts is recorded on the consolidated balance sheets as a component of accrued other current liabilities and as derivative liabilities. As the forward contracts are considered economic hedges, the changes in the fair value of the forward contracts are classified as operating activities within the statement of cash flows, which is consistent with the classification of the cash flows of the hedged item. The Company’s interest rate swap arrangements qualify as cash flow hedges for accounting purposes as they effectively convert variable rate obligations into fixed rate obligations. The Company evaluates and calculates the effectiveness of the hedge at each reporting date. The effective change is recorded in accumulated other comprehensive loss and will be recognized as interest expense on settlement. Ineffectiveness is recorded in other income (expense), net. If a cash flow hedge is discontinued due to changes in the forecasted hedged transactions, hedge accounting is discontinued prospectively and any unrealized gain or loss on the related derivative is recorded in accumulated other comprehensive loss and is reclassified into earnings in the same period during which the hedged forecasted transaction affects earnings. The fair value of the swap arrangement is recorded on the consolidated balance sheets as a component of accrued other current liabilities and as derivative liabilities. The changes in fair value of swap agreement are classified as operating activities within the statement of cash flows, which is consistent with the classification of the cash flows of the hedged item. The Company issued convertible notes with conversion features. These conversion features were evaluated under ASC topic 815-40, were determined to be embedded derivatives and were bifurcated from the debt and were classified prior to the IPO as liabilities on the consolidated balance sheets. The Company recorded these derivative liabilities at fair value and adjusted the carrying value to their estimated fair value at each reporting date with the increases or decreases in the fair value recorded as a gain (loss) on revaluation of warrant liabilities and embedded derivatives in the consolidated statements of operations. Upon the IPO, the final valuation of the conversion feature was calculated as of the date of the IPO and was reclassified from a derivative liability to additional paid-in capital. Customer Financing Receivables - The contractual terms of Company's customer financing receivables are primarily contained within the PPA Entities' customer lease agreements. Leases are classified as either operating or sales-type leases in accordance with the relevant accounting guidelines and customer financing receivables are generated by Energy Servers leased to PPA Entities’ customers in leasing arrangements that qualify as sales-type leases. Customer financing receivables represents the gross minimum lease payments to be received from customers and the system’s estimated residual value, net of unearned income and allowance for estimated losses. Initial direct costs for sales-type leases are recognized as cost of revenue when the Energy Servers are placed in service. The Company reviews its customer financing receivables by aging category to identify significant customer balances with known disputes or collection issues. In determining the allowance, the Company makes judgments about the creditworthiness of a majority of its customers based on ongoing credit evaluations. The Company also considers its historical level of credit losses as well as current economic trends that might impact the level of future credit losses. The Company writes off customer financing receivables when they are deemed uncollectible. The Company has not maintained an allowance for doubtful accounts to reserve for potentially uncollectible customer financing receivables as historically all of its receivables on the consolidated balance sheets have been collected and are expected to be collected in full. Accounts Receivable - Accounts receivable primarily represents trade receivables from sales to customers recorded at net realizable value. As it does for its customer financing receivables, the Company reviews its accounts receivable by aging category to identify significant customer balances with known disputes or collection issues. In determining the allowance, the Company makes judgments about the creditworthiness of a majority of its customers based on ongoing credit evaluations. The Company also considers its historical level of credit losses as well as current economic trends that might impact the level of future credit losses. The Company writes off accounts receivable when they are deemed uncollectible. The Company has not had to maintain an allowance for doubtful accounts to reserve for potentially uncollectible accounts receivable as historically all of its receivables on the consolidated balance sheets have been collected and are expected to be collected in full. Inventories - Inventories consist principally of raw materials, work-in-process and finished goods and are stated on a first-in, first-out basis at the lower of cost or net realizable value. The Company records inventory excess and obsolescence provisions for estimated obsolete or unsellable inventory, including inventory from purchase commitments, equal to the difference between the cost of inventory and estimated net realizable value based upon assumptions about market conditions and future demand for product generally expected to be utilized over the next 12 to 24 months, including product needed to fulfill the Company’s warranty obligations. If actual future demand for the Company’s products is less than currently forecasted, additional inventory provisions may be required. Once a provision is recorded, it is maintained until the product to which it relates to is sold or otherwise disposed. The inventory reserves were $12.0 million and $15.7 million as of September 30, 2018 and December 31, 2017, respectively. Property, Plant and Equipment - Property, plant and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Energy Servers are depreciated to their residual values over the terms of the power purchase and tariff agreements. Leasehold improvements are depreciated over the shorter of the lease term or their estimated depreciable lives. Buildings are amortized over the shorter of the lease or property term or their estimated depreciable lives. Depreciation is calculated using the straight-line method over the estimated depreciable lives of the respective assets as follows:
When assets are retired or disposed, the assets and related accumulated depreciation and amortization are removed from the Company's general ledger and the resulting gain or loss is reflected in the consolidated statements of operations. Foreign Currency Transactions - The functional currency of the Company’s foreign subsidiaries is the U.S. dollar since they are considered financially and operationally integrated with their domestic parent. Foreign currency monetary assets and liabilities are remeasured into U.S. dollars at end-of-period exchange rates. Any currency transaction gains and losses are included as a component of other expense, net in the Company’s consolidated statements of operations and have not been significant for any period presented. Convertible Preferred Stock Warrants - The Company accounted for freestanding warrants to purchase shares of its convertible preferred stock as liabilities on the consolidated balance sheets at fair value upon issuance. In accordance with ASC 480 - Distinguishing Liability from Equity (ASC 480), these warrants were classified within warrant liability in the consolidated balance sheets as the underlying shares of convertible preferred stock were contingently redeemable which, therefore, may have obligated the Company to transfer assets at some point in the future. These warrants were valued on the date of issuance, using the Probability-Weighted Expected Return Model (PWERM). The warrants were subject to remeasurement to fair value at each balance sheet date or immediately before exercise of the warrants. Any change in fair value was recognized in the consolidated statements of operations. The Company’s convertible preferred stock warrants were converted upon the completion of the IPO. At that time, the convertible preferred stock warrant liability was reclassified to additional paid-in capital. Allocation of Profits and Losses of Consolidated Entities to Noncontrolling Interests - The Company generally allocates profits and losses to noncontrolling interests under the hypothetical liquidation at book value (HLBV) method. HLBV is a balance sheet-oriented approach for applying the equity method of accounting when there is a complex structure, such as the flip structure of the PPE Entities. Refer to Note 12 - Power Purchase Agreement Programs for more information. The determination of equity in earnings under the HLBV method requires management to determine how proceeds, upon a hypothetical liquidation of the entity at book value, would be allocated between its investors. The noncontrolling interests' balance is presented as a component of permanent equity in the consolidated balance sheets. Noncontrolling interests with redemption features, such as put options, that are not solely within the Company’s control are considered redeemable noncontrolling interests. Exercisability of put options are solely dependent upon the passage of time, and hence, such put options are considered to be probable of becoming exercisable. The Company elected to accrete changes in the redemption value over the period from the date it becomes probable that the instrument will become redeemable to the earliest redemption date of the instrument using an interest method. The balance of redeemable noncontrolling interests on the balance sheets is reported at the greater of its carrying value or its maximum redemption value at each reporting date. The redeemable noncontrolling interests are classified as temporary equity and therefore are reported in the mezzanine section of the consolidated balance sheets as redeemable noncontrolling interests. For income tax purposes, the Equity Investors committed to invest in the PPE Entities receive a greater proportion of the share of losses and other income tax benefits. This includes the allocation of investment tax credits which are distributed to the Equity Investors through an Investment Company subsidiary of the Company. Allocations are initially based on the terms specified in each respective partnership agreement until the Equity Investors' targeted rate of return specified in the partnership agreement is met (the "flip" of the flip structure) whereupon the allocations change. In some cases after the Equity Investors receive their contractual rate of return, the Company receives substantially all of the remaining value attributable to the long-term recurring customer payments and the other incentives. Recent Accounting Pronouncements Revenue Recognition - In May 2014, the FASB issued guidance which will replace numerous requirements in US GAAP, including industry-specific requirements, and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to show the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date by one year to December 15, 2018 for annual reporting periods beginning after that date. The FASB also permitted early adoption of the standard, but not before the original effective date of December 15, 2016. During 2016, the FASB issued several amendments to the standard, including clarification to the guidance on reporting revenues as a principal versus an agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability, presentation of sales taxes, impairment testing for contract costs and disclosure of performance obligations. The two permitted transition methods under the new standard are (1) the full retrospective method, in which case the standard would be applied to each prior reporting period presented, and the cumulative effect of applying the standard would be recognized at the earliest period shown, or (2) the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company is in the process of assessing the impact on the Company’s consolidated financial statements and whether it will adopt the full retrospective or modified retrospective approach. Leases - In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will replace most existing lease accounting guidance in US GAAP. The core principle of the ASU is that an entity should recognize the rights and obligations resulting from leases as assets and liabilities. ASU 2016-02 requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. ASU 2016-02 will be effective for the Company beginning in fiscal 2020, and requires the modified retrospective method of adoption. The Company is evaluating the impact of this guidance on its consolidated financial statements and disclosures. Financial Instruments - In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The pronouncement was issued to provide more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. This pronouncement will be effective for the Company from fiscal year 2021. A prospective transition approach is required for debt securities for which an other than temporary impairment had been recognized before the effective date. The Company is currently evaluating the impact of the adoption of this update on its financial statements. Statement of Cash Flows - In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230), which clarifies the classification of the activity in the consolidated statements of cash flows and how the predominant principle should be applied when cash receipts and cash payments have more than one class of cash flows. This pronouncement will be effective for the Company from fiscal year 2019, with early adoption permitted. Adoption will be applied retrospectively to all periods presented. The Company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. Income Taxes - In October 2016, the FASB issued ASU 2016-16, Income Taxes—Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which requires that the entities recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The amendments in this ASU are effective for public business entities in annual reporting periods beginning after December 15, 2017 and for the interim periods therein, and for all other entities in annual reporting periods beginning after December 15, 2018, and interim reporting periods in annual reporting periods beginning after December 15, 2019. Early adoption is permitted only at the beginning of an annual period for which no financial statements (interim or annual) have already been issued or made available for issuance. The Company is currently evaluating the impact of its pending adoption of this standard on its consolidated financials. Statement of Cash Flows - In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows—Restricted Cash (Topic 230), related to the presentation of restricted cash in the statement of cash flows. The pronouncement requires that a statement of cash flows explain the change during the period in cash, cash equivalents, and amounts generally described as restricted cash. Amounts generally described as restricted cash are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. Refer to Note 3 - Financial Instruments for more information. The Company elected to early adopt the updated guidance in January 2017 resulting in the application of its requirements to all applicable periods presented. The adoption of this guidance did not have an effect on the Company’s results of operations, financial position or liquidity, other than the presentation of restricted cash or restricted cash equivalents in the statements of cash flows. Financial Instruments - In July 2017, the FASB issued ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features and Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part I of this ASU addresses the complexity of accounting for certain financial instruments with down round features. Per the ASU, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The ASU is effective for public entities for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company elected early adoption effective January 1, 2018. The adoption of the ASU did not have a material impact on the Company’s financial statements. Stock Compensation - In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 aligns the accounting for share-based payment awards issued to employees and nonemployees. Measurement of equity-classified nonemployee awards will now be valued on the grant date and will no longer be remeasured through the performance completion date. This amendment also changes the accounting for nonemployee awards with performance conditions to recognize compensation cost when achievement of the performance condition is probable, rather than upon achievement of the performance condition, as well as eliminating the requirement to reassess the equity or liability classification for nonemployee awards upon vesting, except for certain award types. This ASU is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company does not expect it to have a material effect on the Company's financial statements and related disclosures. Fair Value Measurement - In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU has eliminated, amended and added disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy of timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. Companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This ASU is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. This ASU will have an impact on the Company's disclosures. The Company is evaluating the effect on the Company's financial statements and related disclosures. Internal Use Software - In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires companies to defer specified implementation costs in a cloud computing arrangement that are often expensed under current US GAAP and recognize these costs to expense over the noncancelable term of the arrangement. This ASU is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company elected early adoption effective July 1, 2018. The adoption of the ASU did not have a material impact on the Company’s financial statements and related disclosures. |
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Financial Instruments | Financial Instruments Cash, Cash Equivalents and Restricted Cash The following table summarizes the Company’s cash and cash equivalents and restricted cash (in thousands):
As of September 30, 2018 and December 31, 2017, the Company had restricted cash of $48.7 million and $76.8 million, respectively, as follows (in thousands):
Short-Term Investments As of September 30, 2018 and December 31, 2017, the Company had short-term investments in U.S. Treasury Bills of $4.5 million and $26.8 million, respectively. Derivative Instruments The Company has derivative financial instruments related to natural gas forward contracts and interest rate swaps. See Note 7 - Derivative Financial Instruments for a full description of the Company's derivative financial instruments. |
Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Financial Assets Measured at Fair Value on a Recurring Basis The tables below sets forth, by level, the Company’s financial assets that were accounted for at fair value for the respective periods. The table does not include assets and liabilities that are measured at historical cost or any basis other than fair value (in thousands):
Money Market Funds - Money market funds are classified as Level 1 financial assets because they are valued using quoted market prices for identical securities. Short-Term Investments - Short-term investments, which are comprised of U.S. Treasury Bills with maturities of 12 months or less, are classified as Level 1 financial assets because they are valued using quoted market prices for identical securities. Interest Rate Swap Agreements - The Company enters into interest rate swap agreements to swap variable interest payments for fixed interest payments on certain debt. The interest rate swaps are classified as Level 2 financial assets as quoted prices for similar liabilities are used for valuation. Interest rate swaps are designed as hedging instruments and are recognized at fair value on the Company's consolidated balance sheets. As of September 30, 2018, $0.3 million of the gain on the interest rate swaps accumulated in other comprehensive loss is expected to be reclassified into earnings in the next twelve months. Natural Gas Fixed Price Forward Contracts - The Company enters into fixed price natural gas forward contracts. The following table provides the fair value of the Company’s natural gas fixed price contracts (dollars in thousands):
The natural gas fixed price forward contracts were valued at Level 3 as there were no observable inputs supported by market activity. The Company estimates the fair value of the contracts using a combination of factors including the counterparty's credit rating and estimates of future natural gas prices. For the three months ended September 30, 2018 and 2017, the Company marked-to-market the fair value of its fixed price natural gas forward contract and recorded a gain of $1.1 million and a loss of $0.3 million, respectively, and recorded gains on the settlement of these contracts of $0.6 million and $1.1 million, respectively, in cost of revenue on the consolidated statement of operations. For the nine months ended September 30, 2018 and 2017, the Company marked-to-market the fair value of its fixed price natural gas forward contract and recorded a gain of $1.1 million and a gain of $2.4 million, respectively, and recorded gains on the settlement of these contracts of $2.9 million and $3.3 million, respectively, in cost of revenue on the consolidated statement of operations. Embedded Derivative on 6% Convertible Promissory Notes - On December 15, 2015, the Company issued $160.0 million of 6% Convertible Promissory Notes (6% Notes) that mature in December 2020. In addition, on January 29, 2016 and September 20, 2016, the Company issued an additional $25.0 million and $75.0 million, respectively, of 6% Notes. The 6% Notes are convertible at the option of the holders at a conversion price of $11.25 per share. The provisional redemption of notes was classified as an embedded derivative. The valuation of the provisional redemption feature was classified within Level 3 as it was valued using the binomial lattice method, which utilizes significant inputs that are unobservable in the market. Prior to the IPO, the fair value was determined by estimated event dates with probabilities of likely events under the scenario which is based upon facts existing through the date of the Company's IPO. Upon the expiration of embedded derivative features upon the IPO, the Company reclassified the fair value of the derivative liability into equity. The final valuation of the conversion feature was calculated as of the date of the IPO to be $177.2 million and was reclassified from derivative liability to equity on the balance sheet. Preferred Stock Warrants - The preferred stock warrants were converted to common stock warrants effective with the IPO. The fair value of the preferred stock warrants were zero and $9.8 million, respectively, as of September 30, 2018 and December 31, 2017. The preferred stock warrants were previously valued at Level 3 as there were no observable inputs supported by market activity. The Company estimated the fair value of the preferred stock warrants using a probability-weighted expected return model which considers various potential liquidity outcomes and assigned probabilities to each to arrive at the weighted equity value. The changes in fair value were recorded in gain (loss) on revaluation of warrant liabilities in the consolidated statements of operations. There were no transfers between fair value measurement levels during the three and nine months ended September 30, 2018 and 2017. The changes in the Level 3 financial assets were as follows (in thousands):
Significant changes in any assumption input in isolation can result in a significant change in fair value measurement. Generally, an increase in the market price of the Company’s shares of common stock, an increase in the volatility of the Company’s shares of common stock and an increase in the remaining term of the conversion feature would each result in a directionally similar change in the estimated fair value of the Company’s derivative liability. Increases in such assumption values would increase the associated liability while decreases in these assumption values would decrease the associated liability. An increase in the risk-free interest rate or a decrease in the market price of the Company’s shares of common stock would result in a decrease in the estimated fair value measurement and thus a decrease in the associated liability. Financial Assets Not Measured at Fair Value on a Recurring Basis Customer Receivables and Debt Instruments - The Company estimated the fair values of its customer financing receivables, senior secured notes, term loans and the value of convertible promissory notes based on rates currently being offered for instruments with similar maturities and terms (Level 3). The following table presents the estimated fair values and carrying values of customer receivables and debt instruments (in thousands):
Long-Lived Assets - The Company’s long-lived assets include property, plant and equipment. The carrying amounts of the Company’s long-lived assets are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. No material impairment of any long-lived assets was identified in the three and nine months ended September 30, 2018 and 2017. |
Supplemental Balance Sheet Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheets Information Accounts Receivable Accounts receivable primarily represents trade receivables from sales to customers recorded at net realizable value. One customer accounted for 40.9% of accounts receivable at September 30, 2018. Two customers accounted for 21.4% and 10.1% of accounts receivable at December 31, 2017. At September 30, 2018 and December 31, 2017, the Company did not maintain any allowances for doubtful accounts as it deemed all of its receivables fully collectible. Inventories, Net The components of inventory consisted of the following (in thousands):
Prepaid Expense and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands):
Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following (in thousands):
The Company’s property, plant and equipment under operating leases by the PPA Entities was $397.3 million and $397.0 million as of September 30, 2018 and December 31, 2017, respectively. The accumulated depreciation for these assets was $71.0 million and $51.9 million as of September 30, 2018 and December 31, 2017, respectively. Depreciation expense related to property, plant and equipment for the Company was $32.1 million and $35.0 million for the nine months ended September 30, 2018 and 2017, respectively. Other Long-Term Assets Other long-term assets consisted of the following (in thousands):
Accrued Warranty Accrued warranty liabilities consisted of the following (in thousands):
Changes in the standard product warranty liability were as follows (in thousands):
Accrued Other Current Liabilities Accrued other current liabilities consisted of the following (in thousands):
Other Long-Term Liabilities Accrued other long-term liabilities consisted of the following (in thousands):
In March 2012, the Company entered into an agreement with the Delaware Economic Development Authority to provide a grant of $16.5 million to the Company as an incentive to establish a new manufacturing facility in Delaware and to provide employment for full time workers at the facility over a certain period of time. The Company has received $12.0 million of the grant which is contingent upon the Company meeting certain milestones related to the construction of the manufacturing facility and the employment of full time workers at the facility through September 30, 2023. As of September 30, 2018, the Company has paid $1.5 million for recapture provisions and has recorded $10.5 million in other long-term liabilities for potential repayments. See Note 13 - Commitments and Contingencies for a full description of the grant. The Company has entered into managed services agreements that provide for the payment of property taxes and insurance premiums on behalf of customers. These obligations are included in each agreements' contract value and are recorded as short-term or long-term liabilities based on the estimated payment dates. The long-term managed services liabilities accrued were $29.7 million and $31.1 million as of September 30, 2018 and December 31, 2017, respectively. Customer Financing Leases, Receivable The components of investment in sales-type financing leases consisted of the following (in thousands):
The future scheduled customer payments from sales-type financing leases were as follows (in thousands) as of September 30, 2018:
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Outstanding Loans and Security Agreements |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Loans and Security Agreements | Outstanding Loans and Security Agreements The following is a summary of the Company’s debt as of September 30, 2018 (in thousands):
The following is a summary of the Company’s debt as of December 31, 2017 (in thousands):
Non-recourse debt refers to debt that is recourse to only specified assets or subsidiaries of the Company. Recourse debt refers to debt that is recourse to the Company’s general assets. The differences between the unpaid principal balances and the net carrying values are due to debt discounts and deferred financing costs. The Company was in compliance with all financial covenants as of September 30, 2018 and December 31, 2017. Non-recourse Debt Facilities 5.22% Senior Secured Notes - In March 2013, PPA Company II refinanced its existing debt by issuing 5.22% Senior Secured Notes (PPA II Notes) due March 30, 2025. The total amount of the loan proceeds was $144.8 million, including $28.8 million to repay outstanding principal of existing debt, $21.7 million for debt service reserves and transaction costs and $94.3 million to fund the remaining system purchases. The loan is a fixed rate term loan that bears an annual interest rate of 5.22% payable quarterly. The loan has a fixed amortization schedule of the principal, payable quarterly, which began March 30, 2014 that requires repayment in full by March 30, 2025. The Note Purchase Agreement requires the Company to maintain a debt service reserve, the balance of which was $11.2 million and $11.3 million as of September 30, 2018 and December 31, 2017, respectively, and was included as part of long-term restricted cash in the consolidated balance sheets. The PPA II Notes are secured by all the assets of PPA II. Term Loan due September 2028 - In December 2012 and later amended in August 2013, PPA IIIa entered into a $46.8 million credit agreement to help fund the purchase and installation of Energy Servers. The loan bears a fixed interest rate of 7.5% payable quarterly. The loan requires quarterly principal payments which began in March 2014. The credit agreement requires the Company to maintain a debt service reserve for all funded systems, the balance of which was $3.7 million and $3.7 million as of September 30, 2018 and December 31, 2017, respectively, and was included as part of long-term restricted cash in the consolidated balance sheets. The loan is secured by all assets of PPA IIIa. Term Loan due October 2020 - In September 2013, PPA IIIb entered into a credit agreement to help fund the purchase and installation of Energy Servers. In accordance with that agreement, PPA IIIb issued floating rate debt based on LIBOR plus a margin of 5.2%, paid quarterly. The aggregate amount of the debt facility is $32.5 million. The credit agreement requires the Company to maintain a debt service reserve for all funded systems, the balance of which was $1.7 million and $1.7 million September 30, 2018 and December 31, 2017, respectively, and was included as part of long-term restricted cash in the consolidated balance sheets. The loan is secured by all assets of PPA IIIb and requires quarterly principal payments which began in July 2014. In September 2013, PPA IIIb entered into pay-fixed, receive-float interest rate swap agreement to convert the floating-rate loan into a fixed-rate loan. 6.07% Senior Secured Notes - In July 2014, PPA IV issued senior secured notes (PPA IV Notes) amounting to $99.0 million to third parties to help fund the purchase and installation of Energy Servers. The PPA IV Notes bear a fixed interest rate of 6.07% payable quarterly. The principal amount of the PPA IV Notes is payable quarterly which began in December 2015 and ends in March 2030. The Note Purchase Agreement requires the Company to maintain a debt service reserve, the balance of which was $7.4 million as of September 30, 2018 and $7.0 million as of December 31, 2017, and was included as part of long-term restricted cash in the consolidated balance sheets. The PPA IV Notes are secured by all the assets of the PPA IV. Term Loan due December 2021 and Letters of Credit due December 2021 - In June 2015, PPA V entered into a $131.2 million credit agreement to fund the purchase and installation of Energy Servers. The lenders are a group of five financial institutions. In addition, the lenders further had commitments to the letter of credit (LC) facility with the aggregate principal amount of $6.4 million. The LC facility is to fund the Debt Service Reserve Account. The loan was initially advanced as a construction loan during the development of the PPA V Project and converted into a term loan on February 28, 2017 (the “Term Conversion Date”). As part of the term loan’s conversion, the LC facility commitments were adjusted down to total of $6.2 million. The amount reserved under the letter of credit as of September 30, 2018 and December 31, 2017 was $4.7 million and $4.4 million, respectively. The unused capacity as of September 30, 2018 and December 31, 2017 was and $1.5 million and $1.8 million, respectively. In accordance with the credit agreement, PPA V was issued a floating rate debt based on LIBOR plus a margin, paid quarterly. The applicable margins used for calculating interest expense are 2.25% for years 1-3 following the Term Conversion Date and 2.5% thereafter. For the Lenders’ commitments to the loan and the commitments to the LC, PPA V also pays commitment fees at 0.50% per annum over the outstanding commitments, paid quarterly. The loan is secured by all the assets of the PPA V and requires quarterly principal payments which began in March 2017. In connection with the floating-rate credit agreement, in July 2015 the PPA V entered into pay-fixed, receive-float interest rate swap agreements to convert its floating-rate loan into a fixed-rate loan. Recourse Debt Facilities Term Loan due November 2020 - On May 22, 2013, the Company entered into a $12.0 million financing agreement with a financial institution. The loan has a term of 90 months, payable monthly at a variable rate equal to one-month LIBOR plus the applicable margin. The weighted average interest rate as of December 31, 2017 was 5.1%. As of September 30, 2018 and December 31, 2017, the debt outstanding was $3.6 million and $4.9 million, respectively. 8% and 5% Convertible Promissory Notes - In December 2014, the Company entered into a three year $132.2 million convertible promissory note agreements with certain investors, including $10.0 million each from three related parties. The related parties consisted of Independent Board Members of the Company from Alberta Investment Management Corporation, KPCB Holdings, Inc. and New Enterprise Associates. The notes were amended to mature in December 2018. As part of the agreements with certain investors, the Company entered into two more promissory note agreements in January and February 2015 for an additional $34.0 million. In June 2015, the Company entered into an additional promissory note agreement for $27.0 million requiring principal and interest accrued as due upon maturity and were amended to mature in December 2018. The notes had a fixed interest rate of 8.0% compounded monthly, were due at maturity or at the election of the investor with accrued interest due in December of each year which, at the election of the investor, could be paid or accrued. On January 18, 2018, amendments were finalized to extend the maturity dates for all the 8% Notes to December 2019. At the same time, a portion of the notes held by Constellation NewEnergy, Inc. (the Constellation Note) was extended to December 2020 and the interest rate decreased from 8% to 5%. Investors held the right to convert the unpaid principal and accrued interest of both the 8% and 5% notes to Series G convertible preferred stock at any time at the price of $38.64. In July 2018, the $221.6 million of principal and accrued interest of outstanding 8% Notes automatically converted into equity, the conversion of which included all the related-party noteholders. Upon the Company's IPO, the 8% Notes converted to shares of Series G convertible preferred stock and, concurrently, each such share of Series G convertible preferred stock converted automatically into one share of Class B common stock. 5,734,440 shares of Class B common stock were issued from conversions and the 8% Notes were retired. The 5% Constellation Note have not elected to convert as of September 30, 2018. The Company had the intent and ability to extend the maturity from December 2018 to December 2020 for the 5% Constellation Note and from December 2018 to December 2019 for the 8% Notes, consequently the outstanding balances of $34.3 million and $244.7 million of the debt was classified as non-current as of September 30, 2018 and December 31, 2017, respectively. 6% Convertible Promissory Notes (Originally 5% Convertible Promissory Notes) - In December 2015, January 2016 and September 2016, the Company entered into five promissory note agreements with J.P. Morgan, Canadian Pension Plan Investment Board (CPPIB), Mehetia Inc., New Enterprise Associates, and KPCB Holdings, Inc. The total value of the promissory notes is $260.0 million and originally bore a 5% fixed interest rate, compounded monthly, and are entirely due at maturity. Due to a reduction of collateral as a result of the issuance of the 10% Notes in June 2017 (see the discussion below headed 10% Notes), a 1% interest increase was negotiated between the Company and investors changing the interest rate from 5% to 6% effective July 1, 2017. In connection with the issuance of the 6% Notes, the Company agreed to issue to J.P. Morgan and CPPIB, upon the occurrence of certain conditions, warrants to purchase the Company’s common stock up to a maximum of 146,666 shares and 166,222 shares, respectively. On August 31, 2017, J.P. Morgan transferred its rights to CPPIB and the Company issued 312,888 common stock warrants to CPPIB. Upon completion of the IPO, the warrants were net exercised for 312,575 Class B Common stock. As of September 30, 2018 and December 31, 2017, the amount outstanding on the 6% Notes, which includes accrued interest through the IPO date, was $296.2 million and $286.1 million, respectively. At the election of the investors, the accrued interest and the unpaid principal can be converted into common stock at any time through the maturity date, with no provision for mandatory conversion upon IPO. In certain circumstances, the notes are also redeemable at the Company’s option, in whole or in part, in connection with a change of control or at a qualified initial public offering at a redemption price. In January 2018, the Company amended the terms of the 6% Notes to extend the convertible put option dates to December 2019. After the IPO date, the Company paid the interest when due and no additional interest accrues on the consolidated balance sheet on the 6% Notes. 10% Notes - In June 2017, the Company issued $100.0 million of senior secured notes. The 10% Notes mature in July 2024 and bear a 10.0% fixed rate of interest, payable semi-annually. The notes have a continuing security interest in the cash flows payable to the Company as servicing, operations and maintenance fees, as well as administrative fees, from the five active power purchase agreements in the Company’s Bloom Electrons program. Under the terms of the indenture governing the 10% Notes, the Company is required to comply with various restrictive covenants including meeting reporting requirements such as the preparation and delivery of audited consolidated financial statements, as well as maintaining certain restrictions on investments and incurring new debt. The following table presents detail of the Company’s entire outstanding loan principal repayment schedule as of September 30, 2018 (in thousands):
Interest expense of $18.8 million and $28.9 million for the three months ended September 30, 2018 and 2017, respectively, was recorded in interest expense on the consolidated statements of operations. Interest expense of $68.0 million and $78.8 million for the nine months ended September 30, 2018 and 2017, respectively, was recorded in interest expense on the consolidated statements of operations. |
Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Swaps The Company uses various financial instruments to minimize the impact of variable market conditions on its results of operations. The Company employs natural gas forward contracts to protect against the economic impact of natural gas market prices and the Company uses interest rate swaps to minimize the impact of fluctuations of interest rate changes on its outstanding debt where LIBOR is applied. The Company does not enter into derivative contracts for trading or speculative purposes. The fair values of the derivatives designated as cash flow hedges as of September 30, 2018 and December 31, 2017 on the Company's consolidated balance sheets were as follows (in thousands):
PPA Company IIIb - In September 2013, PPA Company IIIb entered into an interest rate swap arrangement to convert a variable interest rate on debt to a fixed rate. The Company designated and documented its interest rate swap arrangement as a cash flow hedge. The swap’s term ends on October 1, 2020, which is concurrent with the final maturity of the debt floating interest rates reset on a quarterly basis. The Company evaluates and calculates the effectiveness of the hedge at each reporting date. The effective change was recorded in accumulated other comprehensive loss and was recognized as interest expense on settlement. The notional amounts of the swap were $24.9 million and $25.6 million as of September 30, 2018 and December 31, 2017, respectively. The Company measures the swap at fair value on a recurring basis. Fair value is determined by discounting future cash flows using LIBOR rates with appropriate adjustment for credit risk. The Company recorded a gain of $30,000 and a loss of $16,000 during the three months ended September 30, 2018 and 2017, respectively, due to the change in swap’s fair value. The Company recorded a gain of $31,000 and a loss of $46,000 during the nine months ended September 30, 2018 and 2017, respectively, attributable to the change in swap’s fair value. These gains and losses were included in other expense, net in the consolidated statement of operations. PPA Company V - In July 2015, PPA Company V entered into nine interest rate swap agreements to convert its floating-rate loan into a fixed-rate loan. The loss on the swaps prior to designation was recorded in current-period earnings. In July 2015, the Company designated and documented its interest rate swap arrangements as cash flow hedges. Three of these swaps matured in 2016, three will mature on December 21, 2021 and the remaining three will mature on September 30, 2031. The Company evaluates and calculates the effectiveness of the hedge at each reporting date. The effective change was recorded in accumulated other comprehensive loss and was recognized as interest expense on settlement. The notional amounts of the swaps were $187.3 million and $188.5 million as of September 30, 2018 and December 31, 2017, respectively. The Company measures the swaps at fair value on a recurring basis. Fair value is determined by discounting future cash flows using LIBOR rates with appropriate adjustment for credit risk. The Company recorded a gain of $40,000 and a gain of $32,000 during the three months ended September 30, 2018 and 2017, respectively, attributable to the change in swaps’ fair value. The Company recorded a gain of $149,000 and a gain of $84,000 attributable to the change in valuation during the nine months ended September 30, 2018 and 2017, respectively. These gains were included in other expense, net in the consolidated statement of operations. The changes in fair value of the derivative contracts designated as cash flow hedges and the amounts recognized in accumulated other comprehensive loss and in earnings for the year ended December 31, 2017 and in the nine months ended September 30, 2018, were as follows (in thousands):
Natural Gas Derivatives On September 1, 2011, the Company entered into a fixed price fixed quantity fuel forward contract with a gas supplier. This fuel forward contract is used as part of the Company’s program to manage the risk for controlling the overall cost of natural gas. The Company's PPA Company I is the only PPA Company for which natural gas was provided by the Company. The fuel forward contract meets the definition of a derivative under US GAAP. The Company has not elected to designate this contract as a hedge and, accordingly, any changes in its fair value is recorded within cost of revenue in the statements of operations. The fair value of the contract is determined using a combination of factors including the counterparty’s credit rate and estimates of future natural gas prices. For the three months ended September 30, 2018 and 2017, the Company marked-to-market the fair value of its fixed price natural gas forward contract and recorded a gain of $1.1 million and a loss of $0.3 million, respectively. For the nine months ended September 30, 2018 and 2017, the Company marked-to-market the fair value of its fixed price natural gas forward contract and recorded a gain of $1.1 million and a gain of $2.4 million, respectively. For the three months ended September 30, 2018 and 2017, the Company recorded gains on the settlement of these contracts of $0.6 million and $1.1 million, respectively. For the nine months ended September 30, 2018 and 2017, the Company recorded gains on the settlement of these contracts of $2.9 million and $3.3 million, respectively. Gains and losses are recorded in cost of revenue on the consolidated statement of operations. 6% Convertible Promissory Notes On December 15, 2015, January 29, 2016, and September 10, 2016, the Company issued $160.0 million, $25.0 million, and $75.0 million, respectively, of 6% Convertible Promissory Notes (6% Notes) that mature in December 2020. The 6% Notes are contractually convertible at the option of the holders at a conversion price per share equal to the lower of $46.37 or 75% of the offering price of the Company’s common stock sold in an initial public offering. Upon the IPO, the options are convertible at the option of the holders at the conversion price of $11.25 per share. The valuation of this embedded put feature was recorded as a derivative liability in the consolidated balance sheet, measured each reporting period. Fair value was determined using the binomial lattice method. The Company recorded a gain of $0.6 million and a gain of $0.1 million attributable to the change in valuation for the three months ended September 30, 2018 and 2017, respectively. The Company recorded a loss of $30.9 million and a gain of $2.6 million attributable to the change in valuation for the nine months ended September 30, 2018 and 2017, respectively. These gains and losses were included within loss on revaluation of warrant liabilities and embedded derivatives in the consolidated statement of operations. Upon the IPO, the final valuation of the conversion feature was calculated as of the date of the IPO and was reclassified from a derivative liability to additional paid-in capital. The fair value of the embedded derivatives within the notes was $177.2 million at conversion. |
Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants | Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants 8% Convertible Promissory Notes (8% Notes) In July 2018, the $221.6 million including principal and accrued interest of outstanding 8% Notes automatically converted into shares of Class B common stock. See Note 6 - Outstanding Loans and Security Agreements for details. Upon the Company's IPO, the original 8% Notes converted to shares of Series G convertible preferred stock at a conversion price of $38.64 per share and, concurrently, each such share of Series G convertible preferred stock converted automatically into one share of Class B common stock. Upon IPO, the Company issued 5,734,440 shares of Class B common stock were issued as a result of the note conversions. The Company recorded the debt retirement with a charge of $221.6 million to additional paid-in capital. Convertible Preferred Stock The following table summarizes the Company’s convertible preferred stock as of the conversion date (in thousands, except share data):
The shares of the Company's convertible preferred stock were convertible into an equal number of shares of Class B common stock upon the completion of the IPO and the Company issued 71,740,162 shares of Class B common stock. As of September 30, 2018, there were no convertible preferred stock shares outstanding. Preferred Stock Warrants The following table summarizes the warrants outstanding, together with their respective fair values, as of the respective dates (in thousands, except warrants outstanding):
The Company accounted for its preferred stock warrant liability at fair value. The Company recorded a gain of $1,487 during the three months ended September 30, 2018 due to the change in warrant's fair value. The Company recorded a gain of a gain of $8,943 during the nine months ended September 30, 2018 attributable to the change in warrant's fair value. These gains and losses were included in other income (expense), net in the consolidated statement of operations. The warrants for the Company's convertible preferred stock were exercisable into an equal number of shares of Class B common stock upon the completion of the IPO in July 2018. The 860,788 preferred stock warrants were converted to common stock warrants of Class B shares and the warrant liability of $0.9 million was eliminated from the consolidated balance sheets with a charge to additional paid-in capital as a result of the conversion. Common Stock Warrants CPPIB Common Stock Warrants - During 2016, in connection with the 6% Convertible Promissory Notes entered in December 2015 and September 2016, the Company recorded a $9.2 million warrant expense for convertible redeemable common stock warrants issued to J.P. Morgan and CPPIB, to purchase the Company’s common stock up to a maximum of 146,666 shares and 166,222 shares, respectively. During 2017, the fair value of the right to common stock warrants was re-measured and $0.2 million in warrant expenses was charged to the consolidated statement of operations. On August 31, 2017, J.P. Morgan assigned their warrants to CPPIB and all 312,888 warrant shares were issued to CPPIB and the Company reclassified the $9.4 million of accrued warrant liabilities to additional paid-in capital. The warrants were not subject to further remeasurement for fair value. Effective with the IPO, the 312,888 CPPIB warrants were net exercised for 312,575 shares of Class B common stock. Other Common Stock Warrants - During 2014 and in connection with a dispute settlement with the principals of a securities placement agent, the Company issued warrants to purchase 33,333 shares of the Company’s common stock at $38.64 per share. The fair value of $3.3 million was recorded as expense in the consolidated statements of operations in 2013 when it was determined that the obligation became probable. The common stock warrants were immediately exercisable for Class B common shares effective with the IPO, subject to the debt repayment requirements in the settlement agreement, and have not been exercised. |
Income Taxes |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended September 30, 2018 and 2017, the Company recorded a benefit for income taxes of $3,000, a pre-tax loss of $82.5 million for an effective tax rate of 0.0% and an expense for income taxes of $0.3 million on a pre-tax loss of $76.0 million for an effective tax rate of (0.4)%, respectively. For the nine months ended September 30, 2018 and 2017, the Company recorded an expense for income taxes of $0.5 million on a pre-tax loss of $154.6 million for an effective tax rate of (0.3)% and an expense for income taxes of $0.8 million on a pre-tax loss of $208.6 million for an effective tax rate of (0.4)%, respectively. The effective tax rate for the periods presented is lower than the statutory federal tax rate primarily due to a full valuation allowance against U.S. deferred tax assets. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, is not more likely than not to be realized. Management believes that, based on available evidence both positive and negative, it is more likely than not that the U.S. deferred tax assets will not be utilized and as such, a full valuation allowance has been recorded. The valuation allowance for deferred tax assets was $542.4 million as of December 31, 2017. There were no releases from the valuation allowance in the period. At December 31, 2017, the Company had federal and state net operating loss carryforwards of $1.7 billion and $1.5 billion, respectively, which will expire, if unused, beginning in 2022 and 2018, respectively. In addition, at December 31, 2017 the Company had approximately $16.1 million of federal research credit, $6.6 million of federal investment tax credit and $12.2 million of state research credit carryforwards. The federal tax credit carryforwards begin to expire in 2022. The state credit carryforwards may be carried forward indefinitely. The Company has not recorded deferred tax assets for the federal and state research credit carryforwards as the entire amount of the carryforwards represent unrecognized tax benefits. U.S. law H.R.1, commonly referred as to the Tax Cuts and Jobs Act of 2017 (The Act), was enacted on December 22, 2017. Given the significance of the legislation, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) which allows registrants to record provisional amounts during a one year “measurement period”. However, the measurement period is deemed to have ended earlier when the registrant has obtained, prepared and analyzed the information necessary to finalize its accounting. For the Global Intangible Low-Taxed Income (GILTI) provisions of the Tax Act, the Company has not yet completed its assessment or elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared or analyzed. The Company is in the measurement period, however, the Company believes it has made reasonable estimate for all effects for periods presented. As a result of The Act, the U.S. statutory tax rate was lowered from 34 percent to 21 percent effective on January 1, 2018. The Company is required to remeasure the U.S. deferred tax assets and liabilities to the new tax rate. The U.S. operation is in a net deferred tax asset position, offset by a full valuation allowance. |
Net Loss per Share Attributable to Common Stockholders |
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Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders In July 2018, the Company completed an initial public offering of its common shares wherein 20,700,000 shares of Class A common stock were sold into the market. Added to existing shares of Class B common stock were shares mandatorily converted from various financial instruments as a result of the IPO. See Note 8 - Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants. Net loss per share (basic) attributable to common stockholders is calculated by dividing net loss attributable to common stockholders by the weighted-average shares of common stock outstanding for the period. Net loss per share (diluted) is computed by using the "if-converted" method when calculating the potential dilutive effect, if any, of convertible shares whereby net loss attributable to common stockholders is adjusted by the effect of dilutive securities such as awards under equity compensation plans and inducement awards under separate restricted stock unit (RSU) award agreements. Net loss per share (diluted) attributable to common stockholders is then calculated by dividing the resulting adjusted net loss attributable to common stockholders by the combined weighted-average number of fully diluted common shares outstanding. There were no adjustments to net loss attributable to common stockholders in determining net loss attributable to common stockholders (diluted). Equally, there were no adjustments to the weighted average number of outstanding shares of common stock (basic) in arriving at the weighted average number of outstanding shares (diluted), as such adjustments would have been antidilutive. Net loss per share is the same for each class of common stock as they are entitled to the same liquidation and dividend rights with the exception of voting rights. As a result, net loss per share (basic) and net loss per share (diluted) attributed to common stockholders are the same for both Class A and Class B common stock and are combined for presentation. The following table sets forth the computation of the Company's net loss per share (basic) and net loss per share (diluted) attributable to common stockholders (in thousands, except per share amounts):
The following common stock equivalents (in thousands) were excluded from the computation of net loss per share attributable to common shareholders (diluted) for the periods presented as their inclusion would have been antidilutive:
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Stock-Based Compensation and Employee Benefit Plan |
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Stock-Based Compensation and Employee Benefit Plan | Stock-Based Compensation and Employee Benefit Plan 2002 Stock Plan The Company's 2002 Stock Plan (the 2002 Plan) was approved in April 2002 and amended in June 2011. In August 2012 and in connection with the adoption of the 2012 Plan, shares authorized for issuance under the 2002 Plan were cancelled, except for those shares reserved for issuance upon exercise of outstanding stock options. Any outstanding stock options granted under the 2002 Plan will remain outstanding, subject to the terms of the 2002 Plan and applicable award agreements until such shares are issued under those awards (by exercise of stock options) or until the awards terminate or expire by their terms. No additional awards have been or will be granted under the 2002 Plan. As of September 30, 2018, options to purchase 2.4 million shares of Class B common stock were outstanding under the 2002 Plan and no shares were available for future grant. As of September 30, 2018, the weighted average exercise price of outstanding options was $20.04 per share. 2012 Equity Incentive Plan The Company's 2012 Equity Incentive Plan (the 2012 Plan) was approved in August 2012. The 2012 Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights and restricted stock awards (RSUs), all of which may be granted to employees, including officers, and to non-employee directors and consultants except the Company may grant incentive stock options only to employees. Under the 2012 Plan, incentive and nonqualified stock options may be granted at a price not less than fair value and 85% of the fair value of common stock, respectively, and at 110% of fair value to holders of 10% or more of voting stock. As of September 30, 2018, options to purchase 11,007,146 shares of Class B common stock were outstanding under the 2012 Plan and no shares were available for future grant. As of September 30, 2018, the weighted average exercise price of outstanding options under the 2012 Plan was $27.13 per share. As of September 30, 2018, the Company had outstanding RSUs that may be settled for 15,289,021 shares of Class B common stock which were granted pursuant to the Company's 2012 Equity Incentive Plan. Original grants under the 2002 Plan and the 2012 Plan were of "common stock". Pursuant to the Twelfth Amended and Restated Articles of Incorporation authorized in July 2018, all such shares automatically converted to Class B shares of common stock. 2018 Equity Incentive Plan The 2018 Equity Incentive Plan (the 2018 Plan) was approved in April, 2018. The 2018 Plan became effective upon the IPO and will serve as the successor to the 2012 Plan. The Company has reserved 20,135,603 shares of Class A common stock under the 2018 Plan and no more than 26,666,667 shares of Class A common stock will be issued pursuant to the exercise of incentive stock options. The 2018 Plan authorizes the award of stock options, restricted stock awards, stock appreciation rights, RSUs, performance awards and stock bonuses. The 2018 Plan will provide for the grant of awards to employees, directors, consultants, independent contractors and advisors provided the consultants, independent contractors, directors and advisors render services not in connection with the offer and sale of securities in a capital-raising transaction. The exercise price of stock options will be at least equal to the fair market value of Class A common stock on the date of grant. As of September 30, 2018, options to purchase 1,597,548 shares of Class A common stock were outstanding under the 2018 Plan and 18,535,077 shares were available for future grant. As of September 30, 2018, the weighted average exercise price of outstanding options under the 2018 Plan was $27.65 per share. As of September 30, 2018, the Company had outstanding RSUs that may be settled for 1,497,548 shares of Class A common stock which were granted pursuant to the Company's 2018 Equity Incentive Plan. Activity The following table summarizes the components of stock-based compensation expense (in thousands):
Stock option and RSU activity is as follows:
Stock Options - During the three months ended September 30, 2018 and 2017, the Company recognized $71.7 million and $7.7 million of stock-based compensation expense, respectively. During the nine months ended September 30, 2018 and 2017, the Company recognized $87.5 million and $22.3 million of stock-based compensation expense, respectively. No stock-based compensation costs were capitalized in the three and nine months ended September 30, 2018 and 2017. During the three months ended September 30, 2018 and 2017, the intrinsic value of stock options exercised was $2.9 million and $0.6 million, respectively. During the nine months ended September 30, 2018 and 2017, the intrinsic value of stock options exercised was $8.8 million and $3.1 million, respectively. The Company granted 1,600,526 and zero options for Class A common stock during the three months ended September 30, 2018 and 2017, respectively. The Company granted 1,600,526 and zero options during the nine months ended September 30, 2018 and 2017, respectively. The Company granted 14,828,664 and 113,612 options for Class B common stock during the three months ended September 30, 2018 and 2017, respectively. The Company granted 15,252,524 and 1,795,296 options during the nine months ended September 30, 2018 and 2017, respectively. As of September 30, 2018 the Company had unrecognized compensation cost related to unvested stock options of $64.9 million. This expense is expected to be recognized over the remaining weighted-average period of 2.76 years. The Company had no excess tax benefits in the three and nine months ended September 30, 2018 and 2017. Restricted Stock Units (RSUs) - RSU award shares under the 2012 and 2018 Plans shall begin vesting on January 21, 2019, the end of the lock-up period following the IPO, and the remaining shares will vest over a period of three years from such date. The estimated fair value of RSU awards is based on the fair value of the Company’s common stock on the date of grant. The total fair value of RSUs granted during the three months ended September 30, 2018 and 2017 was $219.1 million and $1.5 million, respectively. The total fair value of RSUs granted during the nine months ended September 30, 2018 and 2017, was $220.4 million and $16.4 million, respectively. As of September 30, 2018, the Company had $238.6 million of unrecognized stock-based compensation cost related to unvested RSUs. This expense is expected to be recognized over a weighted average period of 1.1 years. A summary of the Company’s RSU activity and related information is as follows:
2018 Employee Stock Purchase Plan In April 2018, the Company adopted the 2018 Employee Stock Purchase Plan (ESPP). The ESPP became effective upon the Company's IPO in July 2018. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code. 3,333,333 shares of Class A common stock are initially reserved for issuance under the plan, subject to annual additions to a limit of 33,333,333 total shares. The ESPP allows eligible employees to purchase shares, within limits, of the Company’s Class A common stock through payroll deductions at a price per share equal to 85% of the lesser of the fair market value of the Company’s Class A common stock (i) on the first trading day of the applicable purchase period and (ii) the last trading day of each purchase period in the offering period. The ESPP provides for four 6-month purchase periods beginning in February 15 and August 15 of each year within each twenty-four month offering period. The initial offering period began in July 2018 and ends on August 14, 2020. Subsequent offering periods begin each February 15 and August 15. Employee Benefit Plan The Company maintains a tax-qualified 401(k) retirement plan for all employees who satisfy certain eligibility requirements, including requirements relating to age. Under the 401(k) plan, employees may elect to defer up to 60% of eligible compensation, subject to applicable annual Code limits. The Company does not match any contributions made by employees, including executives, but has the discretion to do so. The Company intends for the 401(k) plan to qualify under Section 401(a) and 501(a) of the Internal Revenue Code so that contributions and income earned on contributions are not taxable to employees until withdrawn from the plan. |
Power Purchase Agreement Programs |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Power Purchase Agreement Programs | Power Purchase Agreement Programs Overview In mid-2010, the Company began offering its Energy Servers through its Bloom Electrons program, which the Company denotes as Power Purchase Agreement Programs, financed via investment entities. Under these arrangements, an operating entity is created (the Operating Company) which purchases the Energy Server from the Company. The end customer then enters into a power purchase agreement (PPA) with the Operating Company to purchase the power generated by the Energy Server(s) at a specified rate per kilowatt hour for a specified term which can range from 10 to 21 years. In some cases similar to direct purchases and leases, the standard one-year warranty and performance guarantees are included in the price of the product. The Operating Company also enters into a master services agreement (MSA) with the Company following the first year of service to extend the warranty services and guarantees over the term of the PPA. In other cases, the MSA including warranties and guarantees are billed on a quarterly basis starting in the first quarter following the placed-in-service date of the energy server(s) and continuing over the term of the PPA. The first of such arrangements was considered a sales-type lease and the product revenue from that agreement was recognized up front in the same manner as direct purchase and lease transactions. Substantially all of the Company’s subsequent PPAs have been accounted for as operating leases with the related revenue under those agreements recognized ratably over the PPA term as electricity revenue. The Company recognizes the cost of revenue, primarily product costs and maintenance service costs, over the shorter of the estimated useful life of the Energy Server or the term of the PPA. The Company and third-party equity investors (Equity Investors) contribute funds into a limited liability investment entity (Investment Company) that owns and is parent to the Operating Company (together, the PPA Entities). The PPA Entities constitute variable investment entities (VIEs) under US GAAP. The Company has considered the provisions within the contractual agreements which grant it power to manage and make decisions affecting the operations of these VIEs. The Company considers that the rights granted to the Equity Investors under the contractual agreements are more protective in nature rather than participating. Therefore, the Company has determined under the power and benefits criterion of ASC 810 - Consolidations that it is the primary beneficiary of these VIEs. As the primary beneficiary of these VIEs, the Company consolidates in its financial statements the financial position, results of operations and cash flows of the PPA Entities, and all intercompany balances and transactions between the Company and the PPA Entities are eliminated in the consolidated financial statements. The Company established six different PPA Entities to date. The contributed funds are restricted for use by the Operating Company to the purchase of Energy Servers manufactured by the Company in its normal course of operations. Prior to the start of the current quarter, all six PPA Entities utilized their entire available financing capacity and have completed the purchase of their Energy Servers. Any debt incurred by the Operating Companies is non-recourse to the Company. Under these structures, each Investment Company is treated as a partnership for U.S. federal income tax purposes. Equity Investors receive investment tax credits and accelerated tax depreciation benefits. The Operating Company acquires Energy Servers from the Company for cash payments that are made on a similar schedule as if the Operating Company were a customer purchasing an Energy Server from the Company outright. In the consolidated financial statements, the sale of Energy Servers by the Company to the Operating Company are treated as intercompany transactions after the elimination of intercompany balances. The acquisition of Energy Servers by the Operating Company is accounted for as a non-cash reclassification from inventory to Energy Servers within property, plant and equipment, net on the Company’s consolidated balance sheets. In arrangements qualifying for sales-type leases, the Company reduces these recorded assets by amounts received from U.S. Treasury Department cash grants and from similar state incentive rebates. The Operating Company sells the electricity to end customers under PPAs. Cash generated by the electricity sales, as well as receipts from any applicable government incentive program, is used to pay operating expenses (including the management and services the Company provides to maintain the Energy Servers over the term of the PPA) and to service the non-recourse debt with the remaining cash flows distributed to the Equity Investors. In transactions accounted for as sales-type leases, the Company recognizes subsequent customer billings as electricity revenue over the term of the PPA and amortizes any applicable government incentive program grants as a reduction to depreciation expense of the Energy Server over the term of the PPA. In transactions accounted for as operating leases, the Company recognizes subsequent customer payments and any applicable government incentive program grants as electricity revenue over the term of the PPA. Upon sale or liquidation of a PPA Entity, distributions would occur in the order of priority specified in the contractual agreements. The table below shows the details of the Investment Companies from inception to the periods indicated (dollars in thousands):
Some of the Company's PPA Entities contain structured provisions whereby the allocation of income and equity to the Equity Investors changes at some point in time after the formation of the PPA Entity. The change in allocations to Equity Investors (or the "flip") occurs based either on a specified future date or once the Equity Investors reaches its targeted rate of return. For PPA Entities with a specified future date for the flip, the flip occurs January 1 of the calendar year immediately following the year that includes the fifth anniversary of the date the last site achieves commercial operation. The noncontrolling interests in PPA Company II, PPA Company IIIa and PPA Company IIIb are redeemable as a result of the put option held by the Equity Investors. The redemption value is the put amount. At September 30, 2018, and December 31, 2017, the carrying value of redeemable noncontrolling interests of $56.4 million and $58.2 million, respectively, exceeded the maximum redemption value. PPA Entities’ Aggregate Assets and Liabilities Generally, Operating Company assets can be used to settle only the Operating Company obligations and Operating Company creditors do not have recourse to the Company. The aggregate carrying values of the PPA Entities’ assets and liabilities in the Company's consolidated balance sheets, after eliminations of intercompany transactions and balances, were as follows (in thousands):
As stated above, the Company is a minority shareholder in the PPA Entities for the administration of the Company's Bloom Electrons program. PPA Entities contain debt that is non-recourse to the Company. The PPA Entities also own Energy Server assets for which the Company does not have title. Although the Company will continue to have Power Purchase Agreement Program entities in the future and offer customers the ability to purchase electricity without the purchase of Energy Servers, the Company does not intend to be a minority investor in any new Power Purchase Agreement Program entities. The Company believes that by presenting assets and liabilities separate from the PPA Entities, it provides a better view of the true operations of the Company's core business. The table below provides detail into the assets and liabilities of Bloom Energy separate from the PPA Entities. The following table shows Bloom Energy's stand-alone, the PPA Entities combined and the Company's consolidated balances as of September 30, 2018, and December 31, 2017 (in thousands):
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Commitments Leases - The Company leases its facilities, office buildings and equipment under operating leases that expire at various dates through December 2020. The Company’s headquarters are used for corporate administration, research and development, sales and marketing and manufacturing, and currently consists of approximately 31,000 square feet of occupied space in Sunnyvale, California under lease through December 2018. In April 2018, the Company entered into a new lease for the Company's headquarters commencing in January 2019 to occupy approximately 181,000 square feet of office space in San Jose, California through December 2028. During the three months ended September 30, 2018 and 2017, rent expense for all occupied facilities was $1.7 million and $1.4 million, respectively. During the nine months ended September 30, 2018 and 2017, rent expense for all occupied facilities was $4.6 million and $4.3 million, respectively. Beginning in December 2015, the Company is a party to master lease agreements that provide for the sale of Energy Servers to third parties and the simultaneous leaseback of the systems which the Company then subleases to customers. The lease agreements expire on various dates through 2025 and there was no recorded rent expense for the three and nine months ended September 30, 2018 and 2017. At September 30, 2018, future minimum lease payments under operating leases were as follows (in thousands):
Purchase Commitments with Suppliers and Contract Manufacturers - In order to reduce manufacturing lead-times and to ensure an adequate supply of inventories, the Company has agreements with its component suppliers and contract manufacturers to allow them to procure long lead-time component inventory based on a rolling production forecast. The Company is contractually obligated to purchase long lead-time component inventory procured by certain manufacturers in accordance with its forecasts. The Company can generally give notice of order cancellation at least 90 days prior to the delivery date. However, the Company issues purchase orders to its component suppliers and third-party manufacturers that may not be cancelable. As of September 30, 2018 and December 31, 2017, the Company had no material open purchase orders with its component suppliers and third-party manufacturers that are not cancelable. Power Purchase Agreement Program - Under the terms of the Bloom Electrons program (see Note 12 - Power Purchase Agreement Programs), customers agree to purchase power from the Company’s Energy Servers at negotiated rates, generally for periods of up to twenty-one years. The Company is responsible for all operating costs necessary to maintain, monitor and repair the Energy Servers, including the fuel necessary to operate the systems under certain PPA contracts. The risk associated with the future market price of fuel purchase obligations is mitigated with commodity contract futures. The PPA Entities guarantee the performance of Energy Servers at certain levels of output and efficiency to its customers over the contractual term. The PPA Entities monitor the need for any accruals arising from such guarantees, which are calculated as the difference between committed and actual power output or between natural gas consumption at warranted efficiency levels and actual consumption, multiplied by the contractual rates with the customer. Amounts payable under these guarantees are accrued in periods when the guarantees are not met and are recorded in cost of service revenue in the consolidated statements of operations. The Company made no such expense during the three months ended September 30, 2018 and 2017 and $0.9 million and $3.7 million was expensed for the nine months ended September 30, 2018 and 2017, respectively. In June 2015, PPA V entered into a $131.2 million credit agreement to fund the purchase and installation of Energy Servers. The lenders have commitments to a letter of credit (LC) facility with the aggregate principal amount of $6.2 million. The LC facility is to fund the Debt Service Reserve Account. The amount reserved under the letter of credit as of September 30, 2018 and December 31, 2017 was $4.7 million and $4.4 million, respectively. Contingencies Indemnification Agreements - The Company enters into standard indemnification agreements with its customers and certain other business partners in the ordinary course of business. The Company’s exposure under these agreements is unknown because it involves future claims that may be made against the Company but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. Warranty Costs - The Company generally warrants its products sold to its direct customers for one year following the date of acceptance of the products (the standard one-year warranty). As part of its MSAs, the Company provides output and efficiency guarantees (collectively “performance guarantees”) to its customers when systems operate below contractually specified levels of efficiency and output. Such amounts have not been material to date. The standard one-year warranty covers defects in materials and workmanship under normal use and service conditions, and against manufacturing or performance defects. The Company’s warranty accrual represents its best estimate of the amount necessary to settle future and existing claims during the warranty period and as of the balance sheet date. The Company’s obligations under its standard one-year warranty and MSA agreements are generally in the form of product replacement, repair or reimbursement for higher customer electricity costs. Further, if the Energy Servers run at a lower efficiency or power output than the Company committed under its performance guarantee, the Company will reimburse the customer for the underperformance. The Company’s aggregate reimbursement obligation for this performance guarantee for each order is capped at a portion of the purchase price. Delaware Economic Development Authority - In March 2012, the Company entered into an agreement with the Delaware Economic Development Authority to provide a grant of $16.5 million as an incentive to establish a new manufacturing facility in Delaware and to provide employment for full time workers at the facility over a certain period of time. The grant contains two types of milestones that the Company must complete to retain the entire amount of the grant proceeds. The first milestone was to provide employment for 900 full time workers in Delaware by the end of the first recapture period of September 30, 2017. The second milestone was to pay these full time workers a cumulative total of $108.0 million in compensation by September 30, 2017. There are two additional recapture periods at which time the Company must continue to employ 900 full time workers and the cumulative total compensation paid by the Company is required to be at least $324.0 million by September 30, 2023. As of September 30, 2018, the Company had 335 full time workers in Delaware and paid $86.0 million in cumulative compensation. As of December 31, 2017, the Company had 305 full time workers in Delaware and paid $69.3 in cumulative compensation. The Company has so far received $12.0 million of the grant which is contingent upon meeting the milestones through September 30, 2023. In the event that the Company does not meet the milestones, it may have to repay the Delaware Economic Development Authority, including up to $5.0 million on September 30, 2021 and up to an additional $2.5 million on September 30, 2023. As of September 30, 2018, the Company had paid $1.5 million for recapture provisions and has recorded $10.5 million in other long-term liabilities for potential recapture. Self-Generation Incentive Program (SGIP) - The Company’s PPA Entities’ customers receive payments under the SGIP which is a program specific to the State of California that provides financial incentives for the installation of qualifying new self-generation equipment that the Company owns. The SGIP program issues 50% of the fully anticipated amount in the first year the equipment is placed into service. The remaining incentive is then paid based on the size of the equipment (i.e., nameplate kilowatt capacity) over the subsequent five years. The SGIP program has operational criteria primarily related to fuel mixture and minimum output for the first five years after the qualified equipment is placed in service. If the operational criteria are not fulfilled, it could result in a partial refund of funds received. However, for certain PPA Entities, the Company makes SGIP reservations on behalf of the PPA Entity and, therefore, the PPA Entity bears the risk of loss if these funds are not paid. Investment Tax Credits - Through December 31, 2016, purchase of the Company’s Energy Servers were eligible for federal investment tax credits, or ITCs, that accrued to eligible property under Internal Revenue Code Section 48. The ITC program has operational criteria for the first five years after the qualified equipment is placed in service. If the qualified energy property is disposed or otherwise ceases to be investment credit property before the close of the five year recapture period is fulfilled, it could result in a partial reduction of the incentives. The Company's purchase of Energy Servers were by the PPA Entities and, therefore, the PPA Entities bear the risk of repayment if the assets placed in service do not meet the ITC operational criteria in the future. Legal Matters - From time to time, the Company is involved in disputes, claims, litigation, investigations, proceedings and/or other legal actions consisting of commercial, securities and employment matters that arise in the ordinary course of business. The Company reviews all legal matters at least quarterly and assesses whether an accrual for loss contingencies needs to be recorded. The assessment reflects the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular situation. The Company records an accrual for loss contingencies when management believes that it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Legal matters are subject to uncertainties and are inherently unpredictable, so the actual liability in any such matters may be materially different from the Company’s estimates. If an unfavorable resolution were to occur, there exists the possibility of a material adverse impact on the Company’s consolidated financial condition, results of operations or cash flows for the period in which the resolution occurs or on future periods. In July 2018, two former executives of Advanced Equities, Inc., Keith Daubenspeck and Dwight Badger, filed a Statement of Claim with the American Arbitration Association in Santa Clara, CA, against the Company, Kleiner Perkins, Caufield & Byers, LLC (“KPCB”), New Enterprise Associates, LLC (“NEA”) and affiliated entities of both KPCB and NEA seeking to compel arbitration and alleging a breach of a confidential agreement executed between the parties on June 27, 2014 (“Confidential Agreement”) . This Statement of Claim sought, among other things, to void the indemnification and confidentiality provisions under the Confidential Agreement and to recover attorneys’ fees and costs. The Statement of Claim was dismissed without prejudice on July 22, 2018. On September 19, 2018, an Amended Statement of Claim was filed by Messrs. Daubenspeck and Badger with the American Arbitration Association in Santa Clara, CA, against the parties. The Amended Statement of Claim alleges a breach of the Confidentiality Agreement and fraud in the inducement, securities fraud, racketeering and other claims. The Company’s response is currently due by November 30, 2018. The Company believes the Amended Statement of Claim to be without merit and as a result, the Company has recorded no loss contingency related to this claim. |
Segment Information and Concentration of Risk |
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Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Segment Information and Concentration of Risk | Segment Information and Concentration of Risk Segments and the Chief Operating Decision Maker The Company’s chief operating decision makers (CODMs), the Chief Executive Officer and the Chief Financial Officer, review financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The CODMs allocate resources and make operational decisions based on direct involvement with the Company’s operations and product development efforts. The Company is managed under a functionally-based organizational structure with the head of each function reporting to the Chief Executive Officer. The CODMs assess performance, including incentive compensation, based upon consolidated operations performance and financial results on a consolidated basis. As such, the Company has a single reporting segment and operating unit structure. Concentration of Geographic Risk Substantially all of the Company’s revenue and long-lived assets are attributable to operations in the United States for all periods presented. Concentrations of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivables, customer financing lease receivables and counterparties to derivative instruments. The Company only invests cash and cash equivalents in institutions which maintain the highest ratings of creditworthiness. Short-term investments consist of U.S. Treasury Bills. The Company conducts periodic evaluations of the creditworthiness of its customers and the collectability of its accounts receivable and financing leases receivable and provides for potential credit losses as necessary in the consolidated financial statements. The Company limits its credit risk on derivative instruments by dealing only with counterparties that are considered to be of high credit quality. To date, the Company has neither provided an allowance for uncollectible accounts nor experienced any credit loss. Concentrations of Customer Risk The Company's Energy Servers are sold at a significant purchase price with few numerical sales in any given quarter. Consequently in any particular period, a substantial proportion of total revenue is concentrated in a relatively small number of customers. In subsequent periods, the same is true for a different set of customers. Therefore, although revenue is highly concentrated in a few customers in a single quarterly period, such is not the case when examining revenue over longer terms. In the three months ended September 30, 2018, total revenue from Keysight and The Southern Company represented 12% and 54% of the Company’s total revenue, respectively. The Southern Company wholly owns a Third-Party PPA which purchases Bloom Energy Servers, however, such purchases and resulting revenue is made on behalf of various customers of these Third-Party PPAs. In the nine months ended September 30, 2018, total revenue from The Southern Company represented 51% and of the Company's total revenue. In the three months ended September 30, 2017, total revenue from The Southern Company and Delmarva, represented 46% and 10% of the Company’s total revenue, respectively. In the nine months ended September 30, 2017, total revenue from The Southern Company and Delmarva represented 38% and 15% of total revenue, respectively. Concentrations of Supply Risk The Company’s products are manufactured using a rare earth mineral. The suppliers for this raw material are primarily located in Asia. A significant disruption in the operations of one or more of these suppliers could impact the production of the Company’s products which could have a material adverse effect on its business, financial condition and results of operations. Cybersecurity Risk All of the Company's installed Energy Servers are connected to and controlled and monitored by the Company's centralized remote monitoring service. Additionally, the Company relies on internal computer networks for many of the systems used to operate the business generally. The Company may be vulnerable to breaches, unauthorized access, misuse, computer viruses or other malicious code and cyber-attacks. The Company takes protective measures and endeavors to modify these internal systems as circumstances warrant to prevent unauthorized intrusions or disruptions. |
Related Party Transactions |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions The Company’s operations included the following related party transactions (in thousands):
As of September 30, 2018 and December 31, 2017, the Company had $68.7 million and $107.0 million, respectively, in debt and convertible notes from investors considered to be related parties. 8% Convertible Promissory Notes In December 2014, the Company entered into a three year $132.2 million convertible promissory note agreements with certain investors, including $10.0 million each from related parties Alberta Investment Management Corporation, KPCB Holdings, Inc. and New Enterprise Associates. The notes were amended to mature in December 2018. The loans, which bear a fixed interest rate of 5.0%, compounded monthly, are due at maturity or at the election of the investor, with accrued interest due in December of each year which, at the election of the investor, can be paid or accrued. Investors have the right to convert the unpaid principal and accrued interest to Series G convertible preferred stock at any time at the price of $38.64. If an initial public offering occurs prior to the payment in full, the outstanding principal and accrued interest will mandatorily convert into Series G convertible preferred stock. As of December 31, 2017, the Company had $38.3 million in 8% Convertible Promissory Notes from investors considered to be related parties. As of June 30, 2018, the Company had $39.9 million outstanding which, upon completion of the initial public offering in July 2018, converted into 1,038,050 Series G convertible preferred stock and concurrently converted into an equal number of shares of Series B common stock. 6% Convertible Promissory Notes (Originally 5% Convertible Promissory Notes) In December 2015, January 2016 and September 2016 the Company entered into five promissory note agreements with related parties Canadian Pension Plan Investment Board (CPPIB), New Enterprise Associates, KPCB Holdings, Inc., J.P. Morgan and one other non-related party. The total value of the promissory notes is $260.0 million and originally bore a 5% fixed interest rate, compounded monthly, and are entirely due at maturity. Due to a reduction of collateral as a result of the issuance of other notes, a 1% interest increase was negotiated changing the interest rate from 5% to 6% effective July 1, 2017. As of September 30, 2018 and December 31, 2017, the amount outstanding to the related parties was $27.7 million and $26.8 million, respectively, including accrued interest. At the election of the investors, the accrued interest and the unpaid principal can be converted into common stock at any time with no provision for mandatory conversion upon the initial public offering. In certain circumstances, the notes are also redeemable at the Company’s option, in whole or in part, in connection with a change of control or at a qualified IPO at a redemption price. In January 2018, the Company amended the terms of the 6% Notes to extend the convertible put option dates to December 2019. Term Loan due September 2028 In 2013 and 2014, the Company obtained a $45.0 million term loan from related party Alberta Investment Management Corporation (Alberta) to fund the purchase and installation of Energy Servers related to PPA IIIa due September 2028. The Company repaid no and $0.2 million of outstanding debt to Alberta in the three months ended September 30, 2018 and 2017, respectively. The Company repaid $0.6 million and $1.3 million of outstanding debt to Alberta in the nine months ended September 30, 2018 and 2017, respectively. Furthermore, the Company paid $0.8 million and $0.8 million of interest to Alberta in the three months ended September 30, 2018 and 2017, respectively, and the Company paid $2.4 million and $4.8 million of interest to Alberta in the nine months ended September 30, 2018 and 2017, respectively. The balance of the loan as of September 30, 2018 and December 31, 2017 was $40.9 million and $41.9 million, respectively. Common Stock Warrants In connection with the 6% Convertible Promissory Notes, the Company agreed to issue common stock warrants to related parties J.P. Morgan and CPPIB for the right to purchase the Company’s common stock up to a maximum of 146,666 shares and 166,222 shares, respectively. On August 31, 2017, J.P. Morgan assigned their warrants to CPPIB giving all 312,888 warrant shares to CPPIB. The warrants were exercised for 312,575 net shares of Class B Common stock upon the completion of the IPO in July 2018. Consulting Arrangement In January 2009, the Company entered into a consulting agreement with General Colin L. Powell, a member of the Company’s board of directors, pursuant to which General Powell performs certain strategic planning and advisory services for the Company. Pursuant to this consulting agreement, General Powell receives compensation of $125,000 per year and reimbursement for reasonable expenses. |
Subsequent Events |
9 Months Ended |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events There have been no subsequent events that occurred during the period subsequent to the date of these financial statements that would require adjustment to or disclosure in the financial statements as presented. |
Basis of Presentation and Significant Accounting Policies (Policies) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Interim Consolidated Financial Statements | Unaudited Interim Consolidated Financial Statements The consolidated balance sheets as of September 30, 2018, the consolidated statements of operations and the consolidated statements of comprehensive loss, the consolidated statements of convertible redeemable preferred stock, common stock and stockholders' equity (deficit) for the three and nine months ended September 30, 2018, and 2017, the consolidated statements of cash flows for the nine months ended September 30, 2018 and 2017 as well as other information disclosed in the accompanying notes, are unaudited. The consolidated balance sheet as of December 31, 2017 was derived from the audited consolidated financial statements as of that date. The interim consolidated financial statements and the accompanying notes should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained within the Company's Form S-1 filed with the Securities and Exchange Commission which was declared effective on July 24, 2018. The Company's consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP) for interim financial information and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. |
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Principles of Consolidation | Principles of Consolidation These consolidated financial statements reflect the accounts and operations of the Company and those of its subsidiaries in which the Company has a controlling financial interest. The Company uses a qualitative approach in assessing the consolidation requirement for its variable interest entities, which the Company refers to as its power purchase agreement entities (PPA Entities). This approach focuses on determining whether the Company has the power to direct those activities of the PPA Entities that most significantly affect their economic performance and whether the Company has the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the PPA Entities. For all periods presented, the Company has determined that it is the primary beneficiary in all of its operational PPA Entities. The Company evaluates its relationships with the PPA Entities on an ongoing basis to ensure that it continues to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. |
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Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Significant estimates include assumptions used to compute the best estimate of selling-prices (BESP), the fair value of lease and non-lease components such as estimated output, efficiency and residual value of the Energy Servers, estimates for inventory write-downs, estimates for future cash flows and the economic useful lives of property, plant and equipment, the valuation of other long-term assets, the valuation of certain accrued liabilities such as derivative valuations, estimates for accrued warranty and extended maintenance, estimates for recapture of U.S. Treasury grants and similar grants, estimates for income taxes and deferred tax asset valuation allowances, warrant liabilities, stock-based compensation costs and estimates for the allocation of profit and losses to the noncontrolling interests. Actual results could differ materially from these estimates under different assumptions and conditions. |
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Revenue Recognition | Revenue Recognition The Company primarily earns revenue from the sale and installation of its Energy Servers both to direct and to lease customers by providing services under its operations and maintenance services contracts and by selling electricity to customers under power purchase agreements. The Company offers its customers several ways to finance their purchase of a Bloom Energy Server. Customers may choose to purchase the Company’s Energy Servers outright. Customers may also lease the Company’s Energy Servers through one of the Company’s financing partners via the Company’s managed services program or as a traditional lease. Finally, customers may purchase electricity through the Company’s Power Purchase Agreement Programs. Direct Sales - To date, the Company has never sold an Energy Server without a maintenance service agreement, or vice-versa, nor does it have plans to do so in the near future. As a result, the Company recognizes revenue from contracts with customers for the sales of products and services included within these contracts in accordance with ASC 605-25, Revenue Recognition for Multiple-Element Arrangements. Revenue from the sale and installation of Energy Servers to direct customers is recognized when all of the following criteria are met:
Most of the Company’s arrangements are multiple-element arrangements with a combination of Energy Servers, installation and maintenance services. Products and services, including installation, generally qualify as separate units of accounting. For multiple-element arrangements, the Company allocates revenue to each unit of accounting based on an estimated selling price at the arrangement inception. The estimated selling price for each element is based upon the following hierarchy: vendor-specific objective evidence (VSOE) of selling price, if available; third-party evidence (TPE) of selling price, if VSOE of selling price is not available; or best estimate of selling price (BESP) if neither VSOE of selling price nor TPE of selling price are available. The total arrangement consideration is allocated to each separate unit of accounting using the relative estimated selling prices of each unit based on the aforementioned selling price hierarchy. The Company limits the amount of revenue recognized for delivered elements to an amount that is not contingent upon future delivery of additional products or services or upon meeting any specified performance conditions. The Company has not been able to obtain reliable evidence of the selling price of the standalone Energy Server. Given that the Company has never sold an Energy Server without a maintenance service agreement, and vice-versa, the Company has no evidence of selling prices for either and virtually no customers have elected to cancel their maintenance agreements while continuing to operate the Energy Servers. The Company’s objective is to determine the price at which it would transact business if the items were being sold separately. As a result, the Company's estimate of its selling price is driven primarily by its expected margin on both the Energy Server and maintenance service agreement based on their respective costs or, in the case of maintenance service agreements, the estimated costs to be incurred during the service period. Costs for Energy Servers include all direct and indirect manufacturing costs, applicable overhead costs and costs for normal production inefficiencies (i.e., variances). The Company then applies a margin to the Energy Servers to determine the selling price to be used in its BESP model. Costs for maintenance service arrangements are estimated over the life of the maintenance contracts and include estimated future service costs and future product costs. Product costs over the period of the service arrangement are impacted significantly by the longevity of the fuel cells themselves. After considering the total service costs, the Company applies a slightly lower margin to its service costs than to its Energy Servers as it best reflects the Company’s long-term service margin expectations. As the Company’s business offerings and eligibility for the Investment Tax Credit, or ITC, evolve over time, the Company may be required to modify its estimated selling prices in subsequent periods and the Company’s revenue could be adversely affected. The Company does not offer extended payment terms or rights of return for its products. Upon shipment of the product, the Company defers the product’s revenue until the acceptance criteria have been met. Such amounts are recorded within deferred revenue in the consolidated balance sheets. The related cost of such product is also deferred as a component of deferred cost of goods sold in the consolidated balance sheets until customer acceptance. Prior to shipment of the product, any prepayment made by the customer is recorded as customer deposits. Customer deposits were $19.1 million and $10.2 million as of September 30, 2018 and December 31, 2017, respectively, and were included in deferred revenue and customer deposits in the consolidated balance sheets. Traditional Leases - Under this financing option, the Company sells its Energy Servers through a direct sale to a financing partner who, in turn, leases the Energy Servers to the customer under a lease agreement between the customer and the financing partner. In addition, the Company contracts with the customer to provide extended maintenance services from the end of the standard one-year warranty period extending for the remaining duration of the lease term. Payments received are recorded within deferred revenue in the consolidated balance sheets until the acceptance criteria as defined within the customer contract are met. The related cost of such product is also deferred as a component of deferred cost in the consolidated balance sheets, until acceptance. The Company also sells extended maintenance services to its customers that effectively extend the standard warranty coverage. Payments from customers for the extended maintenance contracts are received at the beginning of each service year. Accordingly, the customer payment received is recorded as deferred revenue and revenue is recognized ratably over the extended maintenance contract. As discussed within the Direct Sales section above, the Company’s arrangements with its traditional lease customers are also multiple-element arrangements as they include a combination of Energy Servers, installation and extended maintenance services. Accordingly, the Company recognizes revenue from contracts with customers for the sales of products and services included within these contracts in accordance with ASC 605-25, Revenue Recognition - Multiple-Element Arrangements. Extended Maintenance Services - The Company typically provides to its direct sales customers a standard one-year warranty against manufacturing or performance defects. The Company also sells to these customers extended maintenance services that effectively extend the standard one-year warranty coverage at the customer’s option. These customers generally have an option to renew or cancel the extended maintenance services on an annual basis. Revenue is recognized from extended maintenance services ratably over the term of the service (or annual renewal period) using the estimates of value, as discussed above. Sale-Leaseback (Managed Services) - The Company is a party to master lease agreements that provide for the sale of Energy Servers to third-parties and the simultaneous leaseback of the systems, which the Company then subleases to its customers. In sale-leaseback sublease arrangements (also referred to as managed services), the Company first determines whether the Energy Servers under the sale-leaseback arrangement are “integral equipment”. An Energy Server is determined to be integral equipment when the cost to remove the system from its existing location, including the shipping costs of the Energy Server at the new site including any diminution in fair value, exceeds 10% of the fair value of the Energy Server at the time of its original installation. As the Energy Servers are determined not to be integral equipment, the Company determines if the leaseback is classified as a capital lease or an operating lease. The Company’s managed services arrangements are classified as operating leases. As operating leases, the Company recognizes a portion of the net revenue, net of any commitments made to the customer to cover liabilities associated with insurance, property taxes and/or incentives recorded as managed service liabilities, and the associated cost of sale and then defers the portion of net revenue and cost of sale that represents the gross profit that is equal to the present value of the future minimum lease payments over the master leaseback term. For both capital and operating leasebacks, the Company records the net deferred gross profit in its consolidated balance sheet as deferred income and then amortizes the deferred income over the leaseback term as a reduction to the leaseback rental expense included in operating leases. In connection with the Company’s common stock award agreement with a managed services customer, the share issuances are recorded as a reduction of product revenue when the installation milestones are achieved and are recorded as additional paid-in capital when the shares are issued. Revenue - The Company primarily recognizes revenue from the sale and installation of Energy Servers, from the sale of electricity and by providing services under extended operations and under maintenance services contracts (together, service agreements). Product Revenue - All of the Company’s product revenue is generated from the sale of the Company's Energy Servers to direct purchase and lease customers. The Company generally begins to recognize product revenue from contracts with customers once the Company achieves acceptance; that is, generally when the system has been installed and is running at full power as defined in each contract. All of the Company’s product arrangements contain multiple elements representing a combination of revenue from Energy Servers, from installation and from maintenance services. Upon acceptance, the Company allocates fair value to each of these elements and the Company limits the amount of revenue recognized for delivered elements up to an amount that is not contingent upon future delivery of additional products or services or upon meeting any specified performance conditions. The sale of the Company’s Energy Servers also includes a standard one-year warranty, the estimated cost of which is recorded as a component of cost of product revenue. Installation Revenue - All of the Company’s installation revenue is generated from the sale and installation of the Company's Energy Servers to direct purchase and lease customers. The Company generally begins to recognize installation revenue from contracts with customers for the sales of its Energy Servers once the Company achieves acceptance; that is, generally when the system has been installed and running at full power. Service Revenue - Service revenue is generated from operations and maintenance services agreements that extend the standard one-year warranty coverage beyond the initial first year for Energy Servers sold under direct purchase, traditional lease and managed services sales. Customers can renew these agreements on an annual basis. Revenue is recognized ratably over the term of the renewed one-year service period. The Company anticipates that almost all of its customers will continue to renew their maintenance services agreements each year. Electricity Revenue - The Company’s PPA Entities purchase Energy Servers from the Company and sell electricity produced by these systems to customers through long-term power purchase agreements (PPAs). Customers are required to purchase all of the electricity produced by the Energy Servers at agreed-upon rates over the course of the PPA's contractual term. The Company recognizes revenue from the PPAs as the electricity is provided over the term of the agreement. |
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Revenue Recognition from Power Purchase Agreement Programs | Revenue Recognized from Power Purchase Agreement Programs (See Note 12) In 2010, the Company began offering its Energy Servers through its Bloom Electrons financing program. This program is financed via a special purpose Investment Company and Operating Company, referred to as a PPA Entity, and are owned partly by the Company and partly by third-party investors. The investors contribute cash to the PPA Entity in exchange for an equity interest, which then allows the PPA Entity to purchase the Energy Server from the Company. The cash contributions held are classified as short-term or long-term restricted cash according to the terms of each power purchase agreement (PPA). As the Company identifies end customers, the PPA Entity enters into a PPA with the end customer pursuant to which the customer agrees to purchase the power generated by the Energy Server at a specified rate per kilowatt hour for a specified term, which can range from 10 to 21 years. The PPA Entity typically enters into a maintenance services agreement with the Company following the first year of service to extend the standard one-year warranty service and performance guarantees. This intercompany arrangement is eliminated in consolidation. Those power purchase agreements that qualify as leases are classified as either sales-type leases or operating leases and those that do not qualify as leases are classified as tariff agreements. For both operating leases and tariff agreements, income is recognized as contractual amounts are due when the electricity is generated and presented within Electricity Revenue on the consolidated statements of operations. Sales-Type Leases - Certain arrangements entered into by certain Operating Companies, including Bloom Energy 2009 PPA Project Company, LLC (PPA I), 2012 ESA Project Company, LLC (PPA Company IIIa) and 2013B ESA Project Company, LLC (PPA Company IIIb), qualify as sales-type leases in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 840, Leases (ASC 840). The Company is responsible for the installation, operation and maintenance of the Energy Servers at the customers' sites, including running the Energy Servers during the term of the PPA which ranges from 10 to 15 years. Based on the terms of the customer contracts, the Company may also be obligated to supply fuel for the Energy Servers. The amount billed for the delivery of the electricity to PPA I’s customers primarily consists of returns on the amounts financed including interest revenue, service revenue and fuel revenue for certain arrangements. The Company is obligated to supply fuel to the Energy Servers that deliver electricity under the PPA I agreements. Based on the customer offtake agreements, the customers pay an all-inclusive rate per kWh of electricity produced by the Energy Servers. The consideration received under the PPA I agreements primarily consists of returns on the amounts financed including interest revenue, service revenue and fuel revenue on the consolidated statements of operations. As the Power Purchase Agreement Programs contain a lease, the consideration received is allocated between the lease elements (lease of property and related executory costs) and non-lease elements (other products and services, excluding any derivatives) based on relative fair value in accordance with ASC 605-25-13A (b). Lease elements include the leased system and the related executory costs (i.e. installation of the system, electricity generated by the system, maintenance costs). Non-lease elements include service, fuel and interest related to the leased systems. Service revenue and fuel revenue are recognized over the term of the PPA as electricity is generated. The interest component related to the leased system is recognized as interest revenue over the life of the lease term. The customer has the option to purchase the Energy Servers at the then fair market value at the end of the PPA contract term. Service revenue related to sales-type leases of $0.8 million and $1.0 million for the three months ended September 30, 2018 and 2017, respectively, and service revenue of $2.6 million and $3.1 million for the nine months ended September 30, 2018 and 2017, respectively, is included in electricity revenue in the consolidated statements of operations. Fuel revenue of $0.1 million and $0.3 million for the three months ended September 30, 2018 and 2017, respectively, and fuel revenue of $0.4 million and $0.8 million for the nine months ended September 30, 2018 and 2017, respectively, is included in electricity revenue in the consolidated statements of operations. Interest revenue of $0.4 million and $0.5 million for the three months ended September 30, 2018 and 2017, respectively, and interest revenue of $1.1 million and $1.5 million for the nine months ended September 30, 2018 and 2017, respectively, is included in electricity revenue in the consolidated statements of operations. Product revenue associated with the sale of the Energy Servers under the PPAs that qualify as sales-type leases is recognized at the present value of the minimum lease payments, which approximates fair value, assuming all other conditions for revenue recognition noted above have also been met. A sale is typically recognized as revenue when an Energy Server begins generating electricity and has been accepted, which is consistent across all purchase options in that acceptance generally occurs after the Energy Server has been installed and is running at full power as defined in each contract. There was no product revenue recognized under sales-type leases for the three and nine months ended September 30, 2018 and 2017. Operating Leases - Certain Power Purchase Agreement Program leases entered into by PPA Company IIIa, PPA Company IIIb, 2014 ESA Holdco, LLC (PPA Company IV) and 2015 ESA Holdco, LLC (PPA Company V) that are leases in substance but do not meet the criteria of sales-type leases or direct financing leases in accordance with ASC 840 are accounted for as operating leases. Revenue under these arrangements is recognized as electricity sales and service revenue and is provided to the customer at rates specified under the contracts. During the three months ended September 30, 2018 and 2017, revenue from electricity sales amounted to $7.8 million and $7.4 million, respectively. During the nine months ended September 30, 2018 and 2017, revenue from electricity sales amounted to $23.2 million and $21.6 million, respectively. During the three months ended September 30, 2018 and 2017, service revenue amounted to $3.8 million and $3.8 million, respectively. During the nine months ended September 30, 2018 and 2017, service revenue amounted to $11.4 million and $11.6 million, respectively. Tariff Agreement - PPA Company II entered into an agreement with Delmarva, PJM Interconnection (PJM), a regional transmission organization, and the State of Delaware under which PPA Company II provides the energy generated from its Energy Servers to PJM and receives a tariff as collected by Delmarva. Revenue at the tariff rate is recognized as electricity sales and service revenue as it is generated over the term of the arrangement. |
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Incentives and Grants | Incentives and Grants Self-Generation Incentive Program (SGIP) - The Company’s PPA Entities’ customers receive payments under the SGIP, which is a program specific to the State of California that provides financial incentives for the installation of new and qualifying self-generation equipment that the Company owns. The SGIP funds are assigned to the PPA Entities by the customers and are recorded as other current assets and other long-term assets until received. For sales-type leases, the benefit of the SGIP funds are recorded as deferred revenue which is recognized as revenue when the Energy Server is accepted. For operating leases, the benefit of the SGIP funds are recorded as deferred revenue which is amortized on a straight-line basis over the PPA contract period. The SGIP program issues 50% of the fully anticipated amount in the first year the equipment is placed into service. The remaining incentive is then paid based on the size of the equipment (i.e., nameplate kilowatt capacity) over the subsequent five years. The SGIP program has operational criteria primarily related to fuel mixture and minimum output for the first five years after the qualified equipment is placed in service. If the operational criteria are not fulfilled, it could result in a partial refund of funds received. The SGIP program will expire on January 1, 2021. The Company received $0.2 million and $0.3 million of SGIP funds for the three months ended September 30, 2018 and 2017, and $1.0 million and $2.0 million for the nine months ended September 30, 2018 and 2017, respectively. There were no reductions or refunds of SGIP funds during the three and nine months ended September 30, 2018 and 2017, and no accrual has been made for a refund of any incentives. The Company makes SGIP reservations on behalf of certain of the PPA Entities. However, the PPA Entity receives the SGIP funds directly from the program and, therefore, bears the risk of loss if these funds are not paid. U.S. Treasury Grants - The Company is eligible for U.S. Treasury grants on eligible property as defined under Section 1603 of the American Recovery and Reinvestment Act of 2009. However, to be eligible for the U.S. Treasury grants, a fuel cell system must have commenced construction in 2011 either physically or through the commitment of sufficient project costs. For fuel cell systems under Power Purchase Agreement Programs, U.S. Treasury grants are considered a component of minimum lease payments. For fuel cell systems deployed under tariff legislation, the Company recorded the fuel cell systems net of the U.S. Treasury grants. U.S. Treasury grant receivables are classified as other current assets in the Company’s consolidated balance sheets. For operating leases, the benefit of the U.S. Treasury grant is recorded as deferred revenue and is amortized on a straight-line basis over the PPA contract period. No such grant funds have been accrued or received in the nine months ended September 30, 2018 and 2017. Investment Tax Credits - Through December 31, 2016, the Company’s Energy Servers were eligible for federal ITCs that accrued to eligible property under Internal Revenue Code Section 48. Under the Company's Power Purchase Agreement Programs, ITCs are primarily passed through to Equity Investors with approximately 1% to 10% of incentives received by the Company. These incentives are accounted for by using the flow-through method. On February 9, 2018, the U.S. Congress passed legislation to extend the federal investment tax credits for fuel cell systems applicable retroactively to January 1, 2017. Due to this reinstatement of ITC in 2018, the benefit of ITC to total revenue was $125.7 million in the nine months ended September 30, 2018, which included $45.5 million of revenue benefit related to the retroactive ITC for 2017 acceptances. The ITC program has operational criteria for the first five years after the qualified equipment is placed in service. If the qualified energy property is disposed or otherwise ceases to be investment credit property before the close of the five year recapture period is fulfilled, it could result in a partial reduction of the incentives. No ITC recapture has occurred during the three and nine months ended September 30, 2018 and 2017. Renewable Energy Credits (RECs) - RECs are tradeable energy credits that represent one megawatt hour of electricity generated from an eligible renewable energy resource generated in the U.S. RECs are primarily "held for use" and are presented as part of other current assets and other long-term assets in the consolidated balance sheets until the RECs are sold and accounted for as revenue. The Company accounts for such RECs as output from the facility where they originate. The Company values these RECs at the lower of cost or market at the end of each reporting period. To the extent the PPA Entities do not produce enough RECs to satisfy the requirements under certain PPAs, the Company may also acquire RECs under stand-alone purchase agreements with third parties to satisfy these REC obligations. Under PPAs with certain customers, the PPA Entities are required to deliver a specified quantity of biogas RECs or Western Electricity Coordinating Council (WECC) RECs. In order to meet these obligations, the PPA Entities may enter into REC purchase agreements with third parties to purchase a fixed quantity of the relevant RECs at a fixed price and on a fixed schedule. The PPA Entities utilize the Western Renewable Energy Information System (WREGIS), an independent tracking system for the region covered by the WECC, which allows the PPA Entities to manage RECs purchased and deliver the RECs to satisfy the customer obligation. Purchased RECs used to satisfy customer obligations are recorded at cost and are presented as part of other current assets and other long-term assets in the consolidated balance sheets. Costs of RECs purchased are expensed as the obligation to provide such RECs to customers occurs. The Company estimates the number of excess RECs it will ultimately acquire under the non-cancelable purchase contracts over the number required to satisfy its obligations to its customers. The Company records a purchase commitment loss if the fair value of RECs is less than the fixed purchase price amount. The purchase commitment loss is recorded on the consolidated balance sheets as a component of other current liabilities and other long-term liabilities. |
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Cost of Revenue | Cost of Product Revenue - Cost of product revenue consists of costs of Energy Servers that the Company sells to direct and lease customers. It includes costs paid to the Company’s materials suppliers, personnel costs, certain allocated costs, shipping costs, provisions for excess and obsolete inventory and the depreciation costs of the Company’s equipment. Estimated standard one-year warranty costs are also included in cost of product revenue, see Warranty Costs below. Cost of Installation Revenue - Cost of installation revenue consists of the costs to install the Energy Servers that the Company sells to direct and lease customers. It includes costs paid to the Company’s materials and service providers, personnel costs and allocated costs. Cost of Service Revenue - Cost of service revenue consists of costs incurred under maintenance service contracts for all customers including direct sales, lease and Power Purchase Agreement Program customers. It includes personnel costs for the Company’s customer support organization, certain allocated costs and extended maintenance-related product repair and replacement costs. Cost of Electricity Revenue - Cost of electricity revenue primarily consists of the depreciation of the cost of the Energy Servers owned by the PPA Entities and the cost of gas purchased in connection with the Company’s first PPA Entity. The cost of electricity revenue is generally recognized over the term of the customer’s PPA contract. The cost of depreciation of the Energy Servers is reduced by the amortization of any U.S. Treasury Department grant payment in lieu of the energy investment tax credit associated with these systems. |
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Warranty Costs | Warranty Costs - The Company generally warrants its products sold to its direct customers for one year following the date of acceptance of the products (the “standard one-year warranty”). Additionally as part of its master service agreements (MSAs), the Company provides output and efficiency guarantees (collectively “performance guarantees”) to its customers which contractually guarantee specified levels of efficiency and output. Expenditures related to these obligations have not been material to date. As part of both its standard one-year warranty and MSA obligations, the Company monitors the operations of the underlying systems including efficiency and output levels. Performance guarantee payments represent maintenance decisions made by the Company and are accounted for as costs of goods sold. To estimate the warranty costs, the Company continuously monitors product returns for warranty failures and maintains the reserve for the related warranty expense based on various factors including historical warranty claims, field monitoring and results of lab testing. The Company’s obligations under its standard product warranty and MSAs are generally in the form of product replacement, repair or reimbursement for higher customer electricity costs. Further, if the Energy Servers run at a lower efficiency or power output than the Company committed under its performance guarantee, the Company will reimburse the customer for this underperformance. The Company’s obligation includes ensuring the customer’s equipment operates at least at the efficiency and power output levels set forth in the customer agreement. The Company’s aggregate reimbursement obligation for this performance guarantee for each order is capped at a portion of the purchase price. The standard one-year warranty covers defects in materials and workmanship under normal use and service conditions and against manufacturing or performance defects. The Company’s warranty accrual represents its best estimate of the amount necessary to settle future and existing claims during the warranty period as of the balance sheet date. The Company accrues for warranty costs based on estimated costs that may be incurred including material costs, labor costs and higher customer electricity costs should the units not work for extended periods. Estimated costs associated with standard one-year warranty, including the performance guarantee payments, are recorded at the time of sale as a component of costs of goods sold. |
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Shipping and Handling Costs | Shipping and Handling Costs - The Company records costs related to shipping and handling in cost of revenue. |
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Sales and Utility Taxes | Sales and Utility Taxes - The Company recognizes revenue on a net basis for taxes charged to its customers and collected on behalf of the taxing authorities. |
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Advertising and Promotion Costs | Advertising and Promotion Costs - Expenses related to advertising and promotion of products are charged to sales and marketing expense as incurred. The Company did not incur any material advertising or promotion expenses during the three and nine months ended September 30, 2018 and 2017. |
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Research and Development | Research and Development - The Company conducts internally funded research and development activities to improve anticipated product performance and reduce product life-cycle costs. Research and development costs are expensed as incurred and include salaries and expenses related to employees conducting research and development. |
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Stock-Based Compensation | Stock-Based Compensation - The Company accounts for stock options and restricted stock units (RSUs) awarded to employees and non-employee directors under the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 718 - Compensation-Stock Compensation (ASC 718) using the Black-Scholes valuation model to estimate fair value. The Black-Scholes valuation model requires the Company to make estimates and assumptions regarding the underlying stock’s fair value, the expected life of the option and RSU, the risk-free rate of return interest rate, the expected volatility of the Company's common stock price and the expected dividend yield. In developing estimates used to calculate assumptions, the Company establishes the expected term for employee options and RSUs, as well as expected forfeiture rates, based on the historical settlement experience and after giving consideration to vesting schedules. Forfeitures are estimated at the time of grant and revised in subsequent periods, if necessary, if actual forfeitures differ from initial estimates. Stock-based compensation expense is recorded net of estimated forfeitures such that expense is recorded only for those stock-based awards that are expected to vest. Previously recognized expense is reversed for the portion of awards forfeited prior to vesting as and when the forfeitures occurred. The Company typically records stock-based compensation expense under the straight-line attribution method over the vesting term, which is generally four years, and records stock-based compensation expense for performance based awards using the graded-vesting method. Stock-based compensation expense is recorded in the consolidated statements of operations based on the employees’ respective function. Stock-based compensation cost for RSUs is measured based on the fair value of the underlying shares on the date of grant. Up to the date of the Company's IPO, RSUs were subject to a time-based vesting condition and a performance-based vesting condition, both of which require satisfaction before the RSUs vest and settle for shares of common stock. The performance-based condition was tied to a liquidity event such as a sale event or the completion of the Company’s IPO. The time-based conditions range between six months and four years from the end of the lock-up period after a liquidity event. Upon completion of the Company's IPO in July 2018, the performance-based condition was satisfied and the Company began recognizing stock based compensation related to these awards. Subsequent to the Company's IPO, RSU's are only subject to a time-based vesting condition. Compensation expense for equity instruments granted to non-employees is measured on the date of performance at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measured. Compensation expense for equity instruments granted to non-employees is periodically remeasured as the underlying instruments vest. The fair value of the equity instruments is charged to earnings over the term of the service agreement. The Company records deferred tax assets for awards that result in deductions on the Company’s income tax returns, unless the Company cannot realize the deduction (i.e., the Company is in a net operating loss, or NOL, position), based on the amount of compensation cost recognized and the Company’s statutory tax rate. Beginning in the first quarter of fiscal 2017 with the adoption of ASU 2016-09 on a prospective basis, stock-based compensation excess tax benefits or deficiencies are reflected in the consolidated statements of operations as a component of the provision for income taxes. No tax benefit or expense for stock-based compensation has been recorded for the three and nine months ended September 30, 2018 and 2017, since the Company remains in an NOL position. Determining the amount of stock-based compensation to be recorded requires the Company to develop estimates for the inputs used in the Black-Scholes valuation model to calculate the grant-date fair value of stock options. The Company used the following weighted-average assumptions in applying the Black-Scholes valuation model:
The risk free interest rate for periods within the contractual life of the option is based on the U.S. Treasury zero coupon issues in effect at the grant date for periods corresponding with the expected term of option. The Company’s estimate of an expected term is calculated based on the Company’s historical share option exercise data. The Company has not and does not expect to pay dividends in the foreseeable future. The estimated stock price volatility is derived based on historical volatility of the Company’s peer group, which represents the Company’s best estimate of expected volatility. The amount of stock-based compensation recognized during a period is based on the value of that portion of the awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of the surrendered option. The Company reviews historical forfeiture data and determines the appropriate forfeiture rate based on that data. The Company reevaluates this analysis periodically and adjusts the forfeiture rate as necessary and ultimately recognizes the actual expense over the vesting period only for the shares that vest. |
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Income Taxes | Income Taxes The Company accounts for income taxes using the liability method under Financial Accounting Standards Board Accounting Standards Codification Topic 740 - Income Taxes (ASC 740). Under this method, deferred tax assets and liabilities are determined based on net operating loss carryforwards, research and development credit carryforwards and temporary differences resulting from the different treatment of items for tax and financial reporting purposes. Deferred items are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. Additionally, the Company must assess the likelihood that deferred tax assets will be recovered as deductions from future taxable income. The Company has provided a full valuation allowance on its deferred tax assets because it believes it is more likely than not that its deferred tax assets will not be realized. The Company follows the accounting guidance in ASC 740-10, which requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company records a liability for the difference between the benefit recognized and measured pursuant to ASC 740-10 and the tax position taken or expected to be taken on the Company’s tax return. To the extent that the assessment of such tax positions change, the change in estimate is recorded in the period in which the determination is made. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite the Company’s belief that the tax return positions are fully supportable. The reserves are adjusted in light of changing facts and circumstances such as the outcome of a tax audit. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. |
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Comprehensive Loss | Comprehensive Loss The Company’s comprehensive loss is comprised of the Company’s net loss and unrealized gains (losses) on the remeasurement of the effective portion of the Company’s interest rate swap agreements to fair value and on the Company’s available for sale securities. |
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Fair Value Measurement | Fair Value Measurement Financial Accounting Standards Board Accounting Standards Codification Topic 820 - Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value under US GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value:
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Cash and Cash Equivalents | Cash, Cash Equivalents, Short-Term Investments and Restricted Cash - The Company considers highly liquid short-term investments with maturities of 90 days or less at the date of purchase as cash equivalents. |
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Short-Term Investments | The Company considers highly liquid investments with maturities of greater than 90 days at the reporting period end date as short-term investments. Short-term investments are reported at fair value with unrealized gains or losses, net of tax, recorded in accumulated other comprehensive income (loss). The specific identification method is used to determine the cost of any securities disposed with any realized gains or losses recognized as income or expense in condensed consolidated statements of operations. Short-term investments are anticipated to be used for current operations and are, therefore, classified as available-for-sale in current assets even though their maturities may extend beyond one year. The Company periodically reviews short-term investments for impairment. In the event a decline in value is determined to be other-than-temporary, an impairment loss is recognized. When determining if a decline in value is other-than-temporary, the Company takes into consideration the current market conditions and the duration and severity of and the reason for the decline as well as considering the likelihood that it would need to sell the security prior to a recovery of par value. As of September 30, 2018, short-term investments were comprised of $4.5 million of U.S. Treasury Bills. As of December 31, 2017, short-term investments were comprised of $26.8 million of U.S. Treasury Bills. The costs of these securities approximated their fair values and there were no material gross realized or unrealized gains or losses for the three and nine months ended September 30, 2018 and 2017, and no impairment for the periods ended September 30, 2018 and December 31, 2017. As of September 30, 2018, all investments were scheduled to mature within the next twelve months. |
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Restricted Cash | Restricted cash is held as collateral to provide financial assurance that the Company will fulfill commitments related to its power purchase agreement financings, its debt service reserves, its maintenance service reserves and its facility lease agreements. Restricted cash that is expected to be used within one year of the balance sheet date is classified as a current asset, whereas restricted cash expected to be used more than a year from the balance sheet date is classified as a non-current asset. |
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Derivative Financial Instruments | Derivative Financial Instruments - The Company enters into derivative forward contracts to manage its exposure to the fluctuating price of fuel under certain of its power purchase agreements entered in connection with the Bloom Electrons program (refer to Note 12 - Power Purchase Agreement Programs). In addition, the Company enters into fixed forward interest rate swap arrangements to convert variable interest rates on debt to a fixed rate. The Company also issued derivative financial instruments embedded in its 6% Notes as a means by which to provide additional incentive to investors and to obtain a lower cost cash-source of funds. Derivative transactions are governed by procedures covering areas such as authorization, counterparty exposure and hedging practices. Positions are monitored based on changes in the spot price in the commodity market and their impact on the market value of derivatives. Credit risk on derivatives arises from the potential for counterparties to default on their contractual obligations to the Company. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality. The Company does not enter into derivative transactions for trading or speculative purposes. The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value on the consolidated balance sheets. Changes in the fair value of the derivatives that qualify and are designated as cash flow hedges are recorded in accumulated other comprehensive loss on the consolidated balance sheets and for those that do not qualify for hedge accounting or are not designated hedges are recorded through earnings in the consolidated statements of operations. While the Company hedges certain of its natural gas requirements under its power purchase agreements, it has not classified these forward contracts as designated hedges for accounting purposes. Therefore, the Company records the change in the fair value of its forward contracts in cost of revenue on the consolidated statements of operations. The fair value of the forward contracts is recorded on the consolidated balance sheets as a component of accrued other current liabilities and as derivative liabilities. As the forward contracts are considered economic hedges, the changes in the fair value of the forward contracts are classified as operating activities within the statement of cash flows, which is consistent with the classification of the cash flows of the hedged item. The Company’s interest rate swap arrangements qualify as cash flow hedges for accounting purposes as they effectively convert variable rate obligations into fixed rate obligations. The Company evaluates and calculates the effectiveness of the hedge at each reporting date. The effective change is recorded in accumulated other comprehensive loss and will be recognized as interest expense on settlement. Ineffectiveness is recorded in other income (expense), net. If a cash flow hedge is discontinued due to changes in the forecasted hedged transactions, hedge accounting is discontinued prospectively and any unrealized gain or loss on the related derivative is recorded in accumulated other comprehensive loss and is reclassified into earnings in the same period during which the hedged forecasted transaction affects earnings. The fair value of the swap arrangement is recorded on the consolidated balance sheets as a component of accrued other current liabilities and as derivative liabilities. The changes in fair value of swap agreement are classified as operating activities within the statement of cash flows, which is consistent with the classification of the cash flows of the hedged item. The Company issued convertible notes with conversion features. These conversion features were evaluated under ASC topic 815-40, were determined to be embedded derivatives and were bifurcated from the debt and were classified prior to the IPO as liabilities on the consolidated balance sheets. The Company recorded these derivative liabilities at fair value and adjusted the carrying value to their estimated fair value at each reporting date with the increases or decreases in the fair value recorded as a gain (loss) on revaluation of warrant liabilities and embedded derivatives in the consolidated statements of operations. |
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Customer Financing Receivables | Customer Financing Receivables - The contractual terms of Company's customer financing receivables are primarily contained within the PPA Entities' customer lease agreements. Leases are classified as either operating or sales-type leases in accordance with the relevant accounting guidelines and customer financing receivables are generated by Energy Servers leased to PPA Entities’ customers in leasing arrangements that qualify as sales-type leases. Customer financing receivables represents the gross minimum lease payments to be received from customers and the system’s estimated residual value, net of unearned income and allowance for estimated losses. Initial direct costs for sales-type leases are recognized as cost of revenue when the Energy Servers are placed in service. The Company reviews its customer financing receivables by aging category to identify significant customer balances with known disputes or collection issues. In determining the allowance, the Company makes judgments about the creditworthiness of a majority of its customers based on ongoing credit evaluations. The Company also considers its historical level of credit losses as well as current economic trends that might impact the level of future credit losses. The Company writes off customer financing receivables when they are deemed uncollectible. The Company has not maintained an allowance for doubtful accounts to reserve for potentially uncollectible customer financing receivables as historically all of its receivables on the consolidated balance sheets have been collected and are expected to be collected in full. |
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Accounts Receivable | Accounts Receivable - Accounts receivable primarily represents trade receivables from sales to customers recorded at net realizable value. As it does for its customer financing receivables, the Company reviews its accounts receivable by aging category to identify significant customer balances with known disputes or collection issues. In determining the allowance, the Company makes judgments about the creditworthiness of a majority of its customers based on ongoing credit evaluations. The Company also considers its historical level of credit losses as well as current economic trends that might impact the level of future credit losses. The Company writes off accounts receivable when they are deemed uncollectible. The Company has not had to maintain an allowance for doubtful accounts to reserve for potentially uncollectible accounts receivable as historically all of its receivables on the consolidated balance sheets have been collected and are expected to be collected in full. |
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Inventories | Inventories - Inventories consist principally of raw materials, work-in-process and finished goods and are stated on a first-in, first-out basis at the lower of cost or net realizable value. The Company records inventory excess and obsolescence provisions for estimated obsolete or unsellable inventory, including inventory from purchase commitments, equal to the difference between the cost of inventory and estimated net realizable value based upon assumptions about market conditions and future demand for product generally expected to be utilized over the next 12 to 24 months, including product needed to fulfill the Company’s warranty obligations. If actual future demand for the Company’s products is less than currently forecasted, additional inventory provisions may be required. Once a provision is recorded, it is maintained until the product to which it relates to is sold or otherwise disposed. |
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Property, Plant and Equipment | Property, Plant and Equipment - Property, plant and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Energy Servers are depreciated to their residual values over the terms of the power purchase and tariff agreements. Leasehold improvements are depreciated over the shorter of the lease term or their estimated depreciable lives. Buildings are amortized over the shorter of the lease or property term or their estimated depreciable lives. Depreciation is calculated using the straight-line method over the estimated depreciable lives of the respective assets as follows:
When assets are retired or disposed, the assets and related accumulated depreciation and amortization are removed from the Company's general ledger and the resulting gain or loss is reflected in the consolidated statements of operations. |
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Foreign Currency Transactions | Foreign Currency Transactions - The functional currency of the Company’s foreign subsidiaries is the U.S. dollar since they are considered financially and operationally integrated with their domestic parent. Foreign currency monetary assets and liabilities are remeasured into U.S. dollars at end-of-period exchange rates. Any currency transaction gains and losses are included as a component of other expense, net in the Company’s consolidated statements of operations and have not been significant for any period presented. |
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Convertible Preferred Stock Warrants | Convertible Preferred Stock Warrants - The Company accounted for freestanding warrants to purchase shares of its convertible preferred stock as liabilities on the consolidated balance sheets at fair value upon issuance. In accordance with ASC 480 - Distinguishing Liability from Equity (ASC 480), these warrants were classified within warrant liability in the consolidated balance sheets as the underlying shares of convertible preferred stock were contingently redeemable which, therefore, may have obligated the Company to transfer assets at some point in the future. These warrants were valued on the date of issuance, using the Probability-Weighted Expected Return Model (PWERM). The warrants were subject to remeasurement to fair value at each balance sheet date or immediately before exercise of the warrants. Any change in fair value was recognized in the consolidated statements of operations. The Company’s convertible preferred stock warrants were converted upon the completion of the IPO. At that time, the convertible preferred stock warrant liability was reclassified to additional paid-in capital. |
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Allocation of Profits and Losses of Consolidated Partnerships to Noncontrolling Interests | Allocation of Profits and Losses of Consolidated Entities to Noncontrolling Interests - The Company generally allocates profits and losses to noncontrolling interests under the hypothetical liquidation at book value (HLBV) method. HLBV is a balance sheet-oriented approach for applying the equity method of accounting when there is a complex structure, such as the flip structure of the PPE Entities. Refer to Note 12 - Power Purchase Agreement Programs for more information. The determination of equity in earnings under the HLBV method requires management to determine how proceeds, upon a hypothetical liquidation of the entity at book value, would be allocated between its investors. The noncontrolling interests' balance is presented as a component of permanent equity in the consolidated balance sheets. Noncontrolling interests with redemption features, such as put options, that are not solely within the Company’s control are considered redeemable noncontrolling interests. Exercisability of put options are solely dependent upon the passage of time, and hence, such put options are considered to be probable of becoming exercisable. The Company elected to accrete changes in the redemption value over the period from the date it becomes probable that the instrument will become redeemable to the earliest redemption date of the instrument using an interest method. The balance of redeemable noncontrolling interests on the balance sheets is reported at the greater of its carrying value or its maximum redemption value at each reporting date. The redeemable noncontrolling interests are classified as temporary equity and therefore are reported in the mezzanine section of the consolidated balance sheets as redeemable noncontrolling interests. For income tax purposes, the Equity Investors committed to invest in the PPE Entities receive a greater proportion of the share of losses and other income tax benefits. This includes the allocation of investment tax credits which are distributed to the Equity Investors through an Investment Company subsidiary of the Company. Allocations are initially based on the terms specified in each respective partnership agreement until the Equity Investors' targeted rate of return specified in the partnership agreement is met (the "flip" of the flip structure) whereupon the allocations change. In some cases after the Equity Investors receive their contractual rate of return, the Company receives substantially all of the remaining value attributable to the long-term recurring customer payments and the other incentives. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue Recognition - In May 2014, the FASB issued guidance which will replace numerous requirements in US GAAP, including industry-specific requirements, and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to show the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date by one year to December 15, 2018 for annual reporting periods beginning after that date. The FASB also permitted early adoption of the standard, but not before the original effective date of December 15, 2016. During 2016, the FASB issued several amendments to the standard, including clarification to the guidance on reporting revenues as a principal versus an agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability, presentation of sales taxes, impairment testing for contract costs and disclosure of performance obligations. The two permitted transition methods under the new standard are (1) the full retrospective method, in which case the standard would be applied to each prior reporting period presented, and the cumulative effect of applying the standard would be recognized at the earliest period shown, or (2) the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company is in the process of assessing the impact on the Company’s consolidated financial statements and whether it will adopt the full retrospective or modified retrospective approach. Leases - In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will replace most existing lease accounting guidance in US GAAP. The core principle of the ASU is that an entity should recognize the rights and obligations resulting from leases as assets and liabilities. ASU 2016-02 requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. ASU 2016-02 will be effective for the Company beginning in fiscal 2020, and requires the modified retrospective method of adoption. The Company is evaluating the impact of this guidance on its consolidated financial statements and disclosures. Financial Instruments - In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The pronouncement was issued to provide more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. This pronouncement will be effective for the Company from fiscal year 2021. A prospective transition approach is required for debt securities for which an other than temporary impairment had been recognized before the effective date. The Company is currently evaluating the impact of the adoption of this update on its financial statements. Statement of Cash Flows - In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230), which clarifies the classification of the activity in the consolidated statements of cash flows and how the predominant principle should be applied when cash receipts and cash payments have more than one class of cash flows. This pronouncement will be effective for the Company from fiscal year 2019, with early adoption permitted. Adoption will be applied retrospectively to all periods presented. The Company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. Income Taxes - In October 2016, the FASB issued ASU 2016-16, Income Taxes—Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which requires that the entities recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The amendments in this ASU are effective for public business entities in annual reporting periods beginning after December 15, 2017 and for the interim periods therein, and for all other entities in annual reporting periods beginning after December 15, 2018, and interim reporting periods in annual reporting periods beginning after December 15, 2019. Early adoption is permitted only at the beginning of an annual period for which no financial statements (interim or annual) have already been issued or made available for issuance. The Company is currently evaluating the impact of its pending adoption of this standard on its consolidated financials. Statement of Cash Flows - In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows—Restricted Cash (Topic 230), related to the presentation of restricted cash in the statement of cash flows. The pronouncement requires that a statement of cash flows explain the change during the period in cash, cash equivalents, and amounts generally described as restricted cash. Amounts generally described as restricted cash are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. Refer to Note 3 - Financial Instruments for more information. The Company elected to early adopt the updated guidance in January 2017 resulting in the application of its requirements to all applicable periods presented. The adoption of this guidance did not have an effect on the Company’s results of operations, financial position or liquidity, other than the presentation of restricted cash or restricted cash equivalents in the statements of cash flows. Financial Instruments - In July 2017, the FASB issued ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features and Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. Part I of this ASU addresses the complexity of accounting for certain financial instruments with down round features. Per the ASU, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The ASU is effective for public entities for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company elected early adoption effective January 1, 2018. The adoption of the ASU did not have a material impact on the Company’s financial statements. Stock Compensation - In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 aligns the accounting for share-based payment awards issued to employees and nonemployees. Measurement of equity-classified nonemployee awards will now be valued on the grant date and will no longer be remeasured through the performance completion date. This amendment also changes the accounting for nonemployee awards with performance conditions to recognize compensation cost when achievement of the performance condition is probable, rather than upon achievement of the performance condition, as well as eliminating the requirement to reassess the equity or liability classification for nonemployee awards upon vesting, except for certain award types. This ASU is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company does not expect it to have a material effect on the Company's financial statements and related disclosures. Fair Value Measurement - In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU has eliminated, amended and added disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy of timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. Companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This ASU is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. This ASU will have an impact on the Company's disclosures. The Company is evaluating the effect on the Company's financial statements and related disclosures. Internal Use Software - In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU requires companies to defer specified implementation costs in a cloud computing arrangement that are often expensed under current US GAAP and recognize these costs to expense over the noncancelable term of the arrangement. This ASU is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company elected early adoption effective July 1, 2018. The adoption of the ASU did not have a material impact on the Company’s financial statements and related disclosures. |
Basis of Presentation and Significant Accounting Policies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Valuation Assumptions | The Company used the following weighted-average assumptions in applying the Black-Scholes valuation model:
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Estimated Depreciable Lives of Property, Plant and Equipment | Depreciation is calculated using the straight-line method over the estimated depreciable lives of the respective assets as follows:
Property, plant and equipment, net consisted of the following (in thousands):
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Financial Instruments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table summarizes the Company’s cash and cash equivalents and restricted cash (in thousands):
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Restrictions on Cash and Cash Equivalents | As of September 30, 2018 and December 31, 2017, the Company had restricted cash of $48.7 million and $76.8 million, respectively, as follows (in thousands):
The following table summarizes the Company’s cash and cash equivalents and restricted cash (in thousands):
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Fair Value (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below sets forth, by level, the Company’s financial assets that were accounted for at fair value for the respective periods. The table does not include assets and liabilities that are measured at historical cost or any basis other than fair value (in thousands):
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Schedule of Natural Gas Forward Contracts | The following table provides the fair value of the Company’s natural gas fixed price contracts (dollars in thousands):
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Change in Level 3 Financial Liabilities | The changes in the Level 3 financial assets were as follows (in thousands):
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Schedule of Fair Values and Carrying Values of Customer Receivables and Debt Instruments | The following table presents the estimated fair values and carrying values of customer receivables and debt instruments (in thousands):
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Supplemental Balance Sheet Information (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, net | The components of inventory consisted of the following (in thousands):
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Prepaid Expense and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands):
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Property, Plant and Equipment, Net | Depreciation is calculated using the straight-line method over the estimated depreciable lives of the respective assets as follows:
Property, plant and equipment, net consisted of the following (in thousands):
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Other Long-Term Assets | Other long-term assets consisted of the following (in thousands):
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Accrued Warranty | Accrued warranty liabilities consisted of the following (in thousands):
Changes in the standard product warranty liability were as follows (in thousands):
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Accrued Other Current Liabilities | Accrued other current liabilities consisted of the following (in thousands):
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Other Long-Term Liabilities | Accrued other long-term liabilities consisted of the following (in thousands):
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Customer Financing Leases, Receivable | The components of investment in sales-type financing leases consisted of the following (in thousands):
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Schedule of Customer Payments from Sales-Type Financing Leases | The future scheduled customer payments from sales-type financing leases were as follows (in thousands) as of September 30, 2018:
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Outstanding Loans and Security Agreements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt | The following is a summary of the Company’s debt as of September 30, 2018 (in thousands):
The following is a summary of the Company’s debt as of December 31, 2017 (in thousands):
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Schedule of repayment | The following table presents detail of the Company’s entire outstanding loan principal repayment schedule as of September 30, 2018 (in thousands):
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Derivative Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Derivatives | The fair values of the derivatives designated as cash flow hedges as of September 30, 2018 and December 31, 2017 on the Company's consolidated balance sheets were as follows (in thousands):
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Changes in Fair Value of Derivative Contracts | The changes in fair value of the derivative contracts designated as cash flow hedges and the amounts recognized in accumulated other comprehensive loss and in earnings for the year ended December 31, 2017 and in the nine months ended September 30, 2018, were as follows (in thousands):
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Convertible Stock and Warrants (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Convertible Preferred Stock | The following table summarizes the Company’s convertible preferred stock as of the conversion date (in thousands, except share data):
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Schedule of Preferred Stock Warrant Activity and Warrants Outstanding | The following table summarizes the warrants outstanding, together with their respective fair values, as of the respective dates (in thousands, except warrants outstanding):
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Net Loss per Share Attributable to Common Stockholders (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company's net loss per share (basic) and net loss per share (diluted) attributable to common stockholders (in thousands, except per share amounts):
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Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following common stock equivalents (in thousands) were excluded from the computation of net loss per share attributable to common shareholders (diluted) for the periods presented as their inclusion would have been antidilutive:
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Stock-Based Compensation and Employee Benefit Plan (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Related Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee and Non-Employee Stock-Based Compensation Expense | The following table summarizes the components of stock-based compensation expense (in thousands):
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Stock Option and RSU Activity | Stock option and RSU activity is as follows:
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RSU Activity and Related Information | A summary of the Company’s RSU activity and related information is as follows:
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Power Purchase Agreement Programs (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The following table shows Bloom Energy's stand-alone, the PPA Entities combined and the Company's consolidated balances as of September 30, 2018, and December 31, 2017 (in thousands):
The table below shows the details of the Investment Companies from inception to the periods indicated (dollars in thousands):
The aggregate carrying values of the PPA Entities’ assets and liabilities in the Company's consolidated balance sheets, after eliminations of intercompany transactions and balances, were as follows (in thousands):
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | At September 30, 2018, future minimum lease payments under operating leases were as follows (in thousands):
|
Related Party Transactions (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The Company’s operations included the following related party transactions (in thousands):
|
Nature of Business and Liquidity - Liquidity (Additional Information) (Details) $ / shares in Units, $ in Millions |
1 Months Ended | ||
---|---|---|---|
Jul. 31, 2018
USD ($)
vote
$ / shares
shares
|
Sep. 30, 2018
$ / shares
shares
|
Dec. 31, 2017
$ / shares
shares
|
|
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, authorized (in shares) | 0 | 113,333,333 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0 | $ 0.0001 | |
Condition for mandatory conversion to Class A | (5.00%) | ||
Convertible redeemable preferred stock, shares authorized (in shares) | 80,461,552 | 80,461,609 | |
IPO | |||
Subsidiary, Sale of Stock [Line Items] | |||
Shares sold in offering (in shares) | 20,700,000 | ||
Offering price per share (in dollars per share) | $ / shares | $ 15.00 | ||
Net proceeds from stock offering | $ | $ 282.3 | ||
Class A common stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, authorized (in shares) | 400,000,000 | 0 | |
Stockholders' vote for each share of common stock | vote | 1 | ||
Class B common stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, authorized (in shares) | 400,000,000 | 0 | |
Stockholders' vote for each share of common stock | vote | 10 |
Basis of Presentation and Significant Accounting Policies - Reverse Stock Split (Additional Information) (Details) |
Jul. 07, 2018 |
---|---|
Accounting Policies [Abstract] | |
Reverse stock split, conversion ratio | 0.6667 |
Basis of Presentation and Significant Accounting Policies - Revenue Recognition (Additional Information) (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Accounting Policies [Abstract] | ||
Customer deposits | $ 19.1 | $ 10.2 |
Standard warranty period | 1 year |
Basis of Presentation and Significant Accounting Policies - Revenue Recognized from PPA Sales (Additional Information) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Fuel revenue | $ 100,000 | $ 300,000 | $ 400,000 | $ 800,000 |
Interest revenue | 400,000 | 500,000 | 1,100,000 | 1,500,000 |
Revenue | 190,190,000 | 93,765,000 | 528,432,000 | 252,745,000 |
Service revenue | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Revenue related to sales-type leases | 800,000 | 1,000,000 | 2,600,000 | 3,100,000 |
Operating lease revenue | 3,800,000 | 3,800,000 | 11,400,000 | 11,600,000 |
Revenue | 20,751,000 | 19,511,000 | 60,633,000 | 56,977,000 |
Product revenue | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Revenue related to sales-type leases | 0 | 0 | 0 | 0 |
Revenue | 125,690,000 | 45,255,000 | 355,651,000 | 112,855,000 |
Electricity | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Operating lease revenue | 7,800,000 | 7,400,000 | 23,200,000 | 21,600,000 |
Revenue | 14,059,000 | 14,021,000 | $ 42,095,000 | 41,288,000 |
Minimum | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Term of PPA | 10 years | |||
Minimum | Energy Servers | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Term during which the Company is responsible for the installation, operation and maintenance of the Energy Servers | 10 years | |||
Maximum | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Term of PPA | 21 years | |||
Maximum | Energy Servers | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Term during which the Company is responsible for the installation, operation and maintenance of the Energy Servers | 15 years | |||
Electricity sales | Power generation | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Revenue | 5,800,000 | 5,900,000 | $ 17,300,000 | 17,500,000 |
Service revenue | Power generation | ||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||
Revenue | $ 3,400,000 | $ 3,500,000 | $ 10,300,000 | $ 10,400,000 |
Basis of Presentation and Significant Accounting Policies - Self-Generation Incentive Program (SGIP) (Additional Information) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Accounting Policies [Abstract] | ||||
Self-Generation Incentive Program, percentage of incentive issued in the first year | 50.00% | |||
Self-Generation Incentive Program, subsequent payment period | 5 years | |||
Self-Generation Incentive Program, operational criteria period | 5 years | |||
SGIP funds received | $ 200,000 | $ 300,000 | $ 1,000,000 | $ 2,000,000 |
Reductions or refunds of SGIP funds | 0 | 0 | 0 | 0 |
Accrual for refund of incentives | $ 0 | $ 0 | $ 0 | $ 0 |
Basis of Presentation and Significant Accounting Policies - Investment Tax Credits (ITC) (Additional Information) (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2016 |
|
Tax Credit Carryforward [Line Items] | ||
Benefit of ITC | $ 125.7 | |
ITC recapture period | 5 years | |
Minimum | ||
Tax Credit Carryforward [Line Items] | ||
Incentives received by the Company | 1.00% | |
Maximum | ||
Tax Credit Carryforward [Line Items] | ||
Incentives received by the Company | 10.00% | |
2017 | ||
Tax Credit Carryforward [Line Items] | ||
Benefit of ITC | $ 45.5 |
Basis of Presentation and Significant Accounting Policies - Components of Revenue and Cost of Revenue (Additional Information) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Standard warranty period | 1 year |
Extended service renewal period | 1 year |
Basis of Presentation and Significant Accounting Policies - Stock-Based Compensation (Additional Information) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation vesting period | 4 years |
Minimum | RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Time-based condition, period | 6 months |
Maximum | RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Time-based condition, period | 4 years |
Basis of Presentation and Significant Accounting Policies - Fair Value Assumptions (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Stock-based Compensation, Valuation Assumptions | ||||
Risk-free interest rate | 2.84% | 1.95% | ||
Risk-free interest rate (minimum) | 2.49% | 1.95% | ||
Risk-free interest rate (maximum) | 2.84% | 2.07% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility | 56.10% | 57.90% | ||
Expected volatility (minimum) | 54.60% | 59.80% | ||
Expected volatility (maximum) | 56.10% | 61.00% | ||
Minimum | ||||
Stock-based Compensation, Valuation Assumptions | ||||
Expected term (years) | 6 years 2 months 16 days | 6 years 2 months 22 days | 6 years 2 months 5 days | 6 years 29 days |
Maximum | ||||
Stock-based Compensation, Valuation Assumptions | ||||
Expected term (years) | 6 years 8 months 9 days | 6 years 6 months 18 days | 6 years 8 months 9 days | 6 years 7 months 13 days |
Basis of Presentation and Significant Accounting Policies - Short-Term Investments (Additional Information) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Investment [Line Items] | ||
Short-term investments | $ 4,494 | $ 26,816 |
US Treasury Bills | ||
Investment [Line Items] | ||
Short-term investments | $ 4,500 | $ 26,800 |
Basis of Presentation and Significant Accounting Policies - Derivative Financial Instruments (Additional Information) (Details) |
Sep. 30, 2018 |
---|---|
6% Notes | Convertible debt | |
Debt Instrument [Line Items] | |
Interest rate percentage | 6.00% |
Basis of Presentation and Significant Accounting Policies - Inventories (Additional Information) (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Inventory [Line Items] | ||
Inventory reserve | $ 12.0 | $ 15.7 |
Minimum | ||
Inventory [Line Items] | ||
Future demand period | 12 months | |
Maximum | ||
Inventory [Line Items] | ||
Future demand period | 24 months |
Basis of Presentation and Significant Accounting Policies - Estimated Depreciable Lives (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Energy Servers | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 15 years |
Energy Servers | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 21 years |
Computers, software and hardware | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 3 years |
Computers, software and hardware | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 5 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 10 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 5 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 1 year |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 5 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated depreciable life | 35 years |
Financial Instruments - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||||
Cash and cash equivalents | $ 395,516 | $ 103,828 | ||
Cash, cash equivalents and restricted cash | 444,226 | 180,612 | $ 191,936 | $ 217,915 |
Amortized Cost | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cash and cash equivalents | 395,516 | 103,828 | ||
Restricted cash | 48,710 | 76,784 | ||
Cash, cash equivalents and restricted cash | 444,226 | 180,612 | ||
Amortized Cost | Cash | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cash, cash equivalents and restricted cash | 84,151 | 101,356 | ||
Amortized Cost | Money market funds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cash, cash equivalents and restricted cash | 360,075 | 79,256 | ||
Fair Value | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cash and cash equivalents | 395,516 | 103,828 | ||
Restricted cash | 48,710 | 76,784 | ||
Cash, cash equivalents and restricted cash | 444,226 | 180,612 | ||
Fair Value | Cash | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cash, cash equivalents and restricted cash | 84,151 | 101,356 | ||
Fair Value | Money market funds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cash, cash equivalents and restricted cash | $ 360,075 | $ 79,256 |
Financial Instruments - Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Restricted cash, current | $ 17,931 | $ 44,387 |
Restricted cash, non-current | 30,779 | 32,397 |
Total restricted cash | 48,710 | 76,784 |
Consolidated Entity, Excluding VIEs | ||
Variable Interest Entity [Line Items] | ||
Restricted cash, current | 14,679 | 36,418 |
Restricted cash, non-current | 3,001 | 5,649 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Restricted cash, current | 3,252 | 7,969 |
Restricted cash, non-current | $ 27,778 | $ 26,748 |
Financial Instruments - Short-Term Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Cash and Cash Equivalents [Abstract] | ||
Short-term investments | $ 4,494 | $ 26,816 |
Fair Value - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets | ||
Short-term investments | $ 4,494 | $ 26,816 |
Interest rate swap agreements | 1,368 | 52 |
Total assets | 365,937 | 106,124 |
Liabilities | ||
Total liabilities | 13,290 | 171,869 |
Money market funds | ||
Assets | ||
Cash equivalents | 360,075 | 79,256 |
Natural gas fixed price forward contracts | ||
Liabilities | ||
Derivatives | 11,445 | 15,368 |
Embedded derivative on 6% promissory notes | ||
Liabilities | ||
Derivatives | 140,771 | |
Interest rate swap agreements | ||
Liabilities | ||
Derivatives | 1,845 | 5,905 |
Preferred stock warrants | ||
Liabilities | ||
Stock warrants | 9,825 | |
Level 1 | ||
Assets | ||
Short-term investments | 4,494 | 26,816 |
Interest rate swap agreements | 0 | 0 |
Total assets | 364,569 | 106,072 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 1 | Money market funds | ||
Assets | ||
Cash equivalents | 360,075 | 79,256 |
Level 1 | Natural gas fixed price forward contracts | ||
Liabilities | ||
Derivatives | 0 | 0 |
Level 1 | Embedded derivative on 6% promissory notes | ||
Liabilities | ||
Derivatives | 0 | |
Level 1 | Interest rate swap agreements | ||
Liabilities | ||
Derivatives | 0 | 0 |
Level 1 | Preferred stock warrants | ||
Liabilities | ||
Stock warrants | 0 | |
Level 2 | ||
Assets | ||
Short-term investments | 0 | 0 |
Interest rate swap agreements | 1,368 | 52 |
Total assets | 1,368 | 52 |
Liabilities | ||
Total liabilities | 1,845 | 5,905 |
Level 2 | Money market funds | ||
Assets | ||
Cash equivalents | 0 | 0 |
Level 2 | Natural gas fixed price forward contracts | ||
Liabilities | ||
Derivatives | 0 | 0 |
Level 2 | Embedded derivative on 6% promissory notes | ||
Liabilities | ||
Derivatives | 0 | |
Level 2 | Interest rate swap agreements | ||
Liabilities | ||
Derivatives | 1,845 | 5,905 |
Level 2 | Preferred stock warrants | ||
Liabilities | ||
Stock warrants | 0 | |
Level 3 | ||
Assets | ||
Short-term investments | 0 | 0 |
Interest rate swap agreements | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 11,445 | 165,964 |
Level 3 | Money market funds | ||
Assets | ||
Cash equivalents | 0 | 0 |
Level 3 | Natural gas fixed price forward contracts | ||
Liabilities | ||
Derivatives | 11,445 | 15,368 |
Level 3 | Embedded derivative on 6% promissory notes | ||
Liabilities | ||
Derivatives | 140,771 | |
Level 3 | Interest rate swap agreements | ||
Liabilities | ||
Derivatives | 0 | 0 |
Level 3 | Preferred stock warrants | ||
Liabilities | ||
Stock warrants | $ 0 | $ 9,825 |
Fair Value - Natural Gas Derivatives (Details) - Not designated as hedging instrument - Natural gas forward contract MMBTU in Thousands, $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018
USD ($)
MMBTU
|
Dec. 31, 2017
USD ($)
MMBTU
|
|
Derivatives, Fair Value [Line Items] | ||
Number of Contracts (MMBTU) | MMBTU | 3,457 | 4,332 |
Derivative liability | $ | $ 11,445 | $ 15,368 |
Fair Value - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
Jul. 01, 2017 |
Sep. 20, 2016 |
Sep. 10, 2016 |
Jan. 29, 2016 |
Dec. 15, 2015 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Cash flow hedge gain to be reclassified within 12 months | $ 300,000 | |||||||||
Not designated as hedging instrument | Natural gas forward contract | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Gain (loss) on derivative | $ 1,100,000 | $ (300,000) | 1,100,000 | $ 2,400,000 | ||||||
Gain on the settlement of contracts | $ 600,000 | $ 1,100,000 | $ 2,900,000 | $ 3,300,000 | ||||||
Convertible promissory notes | Convertible Promissory Notes due December 2020, Recourse | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Debt face amount | $ 75,000,000 | $ 75,000,000 | $ 25,000,000 | $ 160,000,000 | ||||||
Interest rate percentage | 6.00% | 6.00% | 6.00% | 6.00% | ||||||
Convertible stock price (in dollars per share) | $ 46.37 | $ 46.37 | $ 11.25 | |||||||
Embedded derivative liability | $ 177,200,000 |
Fair Value - Change in Level 3 Financial Assets (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance | $ 165,964 | $ 147,277 |
Settlement of natural gas fixed price forward contracts | (2,871) | (4,248) |
Embedded derivative on notes | 5,533 | 6,804 |
Changes in fair value | 20,909 | 16,131 |
Conversion of preferred stock warrants liability and derivative liability to common shares | (178,090) | |
Balance | 11,445 | 165,964 |
Natural gas fixed price forward contract | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance | 15,368 | 18,585 |
Settlement of natural gas fixed price forward contracts | (2,871) | (4,248) |
Changes in fair value | (1,052) | 1,031 |
Conversion of preferred stock warrants liability and derivative liability to common shares | 0 | |
Balance | 11,445 | 15,368 |
Preferred stock warrants | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance | 9,825 | 12,885 |
Changes in fair value | (8,943) | (3,060) |
Conversion of preferred stock warrants liability and derivative liability to common shares | (882) | |
Balance | 0 | 9,825 |
Derivative liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance | 140,771 | 115,807 |
Embedded derivative on notes | 5,533 | 6,804 |
Changes in fair value | 30,904 | 18,160 |
Conversion of preferred stock warrants liability and derivative liability to common shares | (177,208) | |
Balance | $ 0 | $ 140,771 |
Fair Value - Estimated Fair Values and Carrying Values for Customer Receivables and Debt Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jul. 31, 2014 |
Mar. 31, 2013 |
Dec. 31, 2012 |
---|---|---|---|---|---|---|---|---|---|
Senior secured notes | Senior Secured Notes due March 2025, Non-Recourse | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | $ 81,400 | $ 89,564 | |||||||
Senior secured notes | Senior Secured Notes due March 2025, Non-Recourse | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 84,314 | 95,114 | |||||||
Senior secured notes | Senior Secured Notes due March 2030, Non-Recourse | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 82,837 | 84,032 | |||||||
Senior secured notes | Senior Secured Notes due March 2030, Non-Recourse | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 88,291 | 93,264 | |||||||
Term loan | Term Loan due September 2028, Non-Recourse | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 36,502 | 36,940 | |||||||
Term loan | Term Loan due September 2028, Non-Recourse | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 42,927 | 46,713 | |||||||
Term loan | Senior Secured Notes due October 2020, Non-Recourse | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 24,021 | 24,364 | |||||||
Term loan | Senior Secured Notes due October 2020, Non-Recourse | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 26,562 | 27,206 | |||||||
Term loan | Term Loan due December 2021, Non-Recourse | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 123,834 | 125,596 | |||||||
Term loan | Term Loan due December 2021, Non-Recourse | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 130,033 | 131,817 | |||||||
Term loan | Term Loan due November 2020, Recourse | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 3,631 | 4,887 | |||||||
Term loan | Term Loan due November 2020, Recourse | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 4,265 | 5,148 | |||||||
Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 34,273 | 0 | |||||||
Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 40,548 | 0 | |||||||
Convertible promissory notes | Convertible Promissory Notes One due December 2020 | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 258,862 | 236,724 | |||||||
Convertible promissory notes | Convertible Promissory Notes One due December 2020 | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 919,260 | 219,094 | |||||||
Notes | Notes due July 2024, Recourse | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 95,451 | 94,517 | |||||||
Notes | Notes due July 2024, Recourse | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 102,162 | 106,124 | |||||||
Customer financing receivables | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Customer financing receivables | 74,030 | 77,885 | |||||||
Customer financing receivables | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Customer financing receivables | 52,037 | 55,255 | |||||||
Affiliated entity | Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | Carrying Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | 0 | 244,717 | |||||||
Affiliated entity | Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | Fair Value | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Debt Instrument | $ 0 | $ 211,000 | |||||||
Convertible Promissory Notes Interest Rate 8% Due December 2019 And 2020, Recourse | Affiliated entity | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Interest rate percentage | 8.00% | ||||||||
Convertible Promissory Notes due December 2020, Recourse | Convertible promissory notes | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Interest rate percentage | 6.00% | 6.00% | 6.00% | ||||||
Convertible Promissory Notes due December 2020, Recourse | Affiliated entity | Convertible promissory notes | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Interest rate percentage | 6.00% | 6.00% | 5.00% | ||||||
Notes due July 2024, Recourse | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Interest rate percentage | 10.00% | 10.00% | |||||||
Notes due July 2024, Recourse | Notes | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Interest rate percentage | 10.00% | ||||||||
PPA Company II | Senior Secured Notes due March 2025, Non-Recourse | Senior secured notes | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Interest rate percentage | 5.22% | 5.20% | 5.22% | ||||||
PPA Company IIIa | Term Loan due September 2028, Non-Recourse | Term loan | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Interest rate percentage | 7.50% | 7.50% | 7.50% | ||||||
PPA Company IV | Senior Secured Notes due March 2030, Non-Recourse | Senior secured notes | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Interest rate percentage | 6.07% | 6.10% | 6.07% |
Supplemental Balance Sheet Information - Accounts Receivable (Additional Information) (Details) - Accounts Receivable - Customer Concentration Risk |
3 Months Ended | 9 Months Ended |
---|---|---|
Dec. 31, 2017 |
Sep. 30, 2018 |
|
Customer One | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 21.40% | 40.90% |
Customer Two | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.10% |
Supplemental Balance Sheet Information - Inventories, Net (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 52,886 | $ 49,963 |
Work-in-progress | 27,833 | 19,998 |
Finished goods | 54,006 | 20,299 |
Inventory, net | $ 134,725 | $ 90,260 |
Supplemental Balance Sheet Information - Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Government incentives receivable | $ 1,060 | $ 1,836 |
Prepaid expenses and other current assets | 31,816 | 24,840 |
Total | $ 32,876 | $ 26,676 |
Supplemental Balance Sheet Information - Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 710,887 | $ 705,583 |
Less: Accumulated depreciation | (239,813) | (207,794) |
Property, plant and equipment, net | 471,074 | 497,789 |
Energy Servers | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 511,273 | 511,153 |
Computers, software and hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 20,114 | 19,384 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 99,519 | 97,158 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,848 | 4,679 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 22,931 | 22,799 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 40,512 | 40,512 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 11,690 | $ 9,898 |
Supplemental Balance Sheet Information - Property Plant and Equipment, Net (Additional Information) (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Property Subject to or Available for Operating Lease [Line Items] | |||
Depreciation | $ 32,141 | $ 34,968 | |
Property subject to operating lease | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Property, plant and equipment | 397,300 | $ 397,000 | |
Accumulated depreciation | $ 71,000 | $ 51,900 |
Supplemental Balance Sheet Information - Other Long-Term Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid and other long-term assets | $ 29,940 | $ 31,446 |
Equity-method investments | 5,366 | 5,014 |
Long-term deposits | 1,702 | 1,000 |
Other long-term assets | $ 37,008 | $ 37,460 |
Supplemental Balance Sheet Information - Accrued Warranty (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Product warranty | $ 9,765 | $ 7,661 | $ 8,104 |
Operations and maintenance services agreements | 8,210 | 9,150 | |
Standard and Extended Product Warranty Accrual | $ 17,975 | $ 16,811 |
Supplemental Balance Sheet Information - Standard Product Warranty Liability (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Accrued warranty balance | $ 7,661 | $ 8,104 |
Accrued warranty, net | 4,206 | 7,058 |
Warranty expenditures during period | (2,102) | (7,501) |
Accrued warranty balance | $ 9,765 | $ 7,661 |
Supplemental Balance Sheet Information - Accrued Other Current Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Compensation and benefits | $ 17,241 | $ 13,121 |
Current portion of derivative liabilities | 3,849 | 5,492 |
Managed services liabilities | 4,566 | 3,678 |
Accrued installation | 8,231 | 3,348 |
Sales tax liabilities | 3,046 | 5,524 |
Interest payable | 2,169 | 5,520 |
Other | 27,771 | 30,966 |
Accrued other current liabilities | $ 66,873 | $ 67,649 |
Supplemental Balance Sheet Information - Other Long-Term Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Delaware grant | $ 10,469 | $ 10,469 |
Managed services liabilities | 29,725 | 31,087 |
Other | 7,967 | 11,359 |
Other long-term liabilities | $ 48,161 | $ 52,915 |
Supplemental Balance Sheet Information - Other Long-Term Liabilities (Additional Information) (Details) - USD ($) $ in Thousands |
76 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2018 |
Sep. 30, 2018 |
Dec. 31, 2017 |
Mar. 31, 2012 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Grants receivable | $ 16,500 | |||
Proceeds from government grants | $ 12,000 | |||
Grant agreement, recapture provision repayments | $ 1,500 | $ 1,500 | ||
Delaware grant | 10,469 | 10,469 | ||
Managed services liabilities | $ 29,725 | $ 31,087 |
Supplemental Balance Sheet Information - Customer Financing Leases Receivable (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Total minimum lease payments to be received | $ 103,013 | $ 109,431 |
Less: Amounts representing estimated executing costs | (25,836) | (27,815) |
Net present value of minimum lease payments to be received | 77,177 | 81,616 |
Estimated residual value of leased assets | 1,051 | 1,051 |
Less: Unearned income | (4,197) | (4,781) |
Net investment in sales-type financing leases | 74,031 | 77,886 |
Less: Current portion | (5,496) | (5,209) |
Non-current portion of investment in sales-type financing leases | $ 68,535 | $ 72,677 |
Supplemental Balance Sheet Information - Future Scheduled Customer Payments (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Capital Leases, Future Minimum Payments Receivable, Fiscal Year Maturity [Abstract] | |
Remaining 2018 | $ 1,354 |
2019 | 5,594 |
2020 | 6,022 |
2021 | 6,415 |
2022 | 6,853 |
Thereafter | $ 46,742 |
Outstanding Loans and Security Agreements - Schedule of Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Jul. 27, 2018 |
Jun. 30, 2018 |
Jan. 18, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Dec. 31, 2014 |
Jul. 31, 2014 |
Mar. 31, 2013 |
Dec. 31, 2012 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | $ 792,713 | $ 1,008,104 | |||||||||||
Current portion of debt | 21,922 | 20,136 | |||||||||||
Long-term portion of debt | 718,889 | 921,205 | |||||||||||
Total | 740,811 | 941,341 | |||||||||||
Unused Borrowing Capacity | $ 1,504 | $ 1,784 | |||||||||||
Notes due July 2024, Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate percentage | 10.00% | 10.00% | |||||||||||
Term loan | Term Loan due November 2020, Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | $ 3,631 | $ 5,000 | |||||||||||
Current portion of debt | 1,686 | 1,690 | |||||||||||
Long-term portion of debt | 1,945 | 3,197 | |||||||||||
Total | 3,631 | 4,887 | |||||||||||
Non-recourse debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | 358,576 | 372,318 | |||||||||||
Current portion of debt | 20,236 | 18,446 | |||||||||||
Long-term portion of debt | 328,358 | 342,050 | |||||||||||
Total | 348,594 | $ 360,496 | |||||||||||
Convertible promissory notes | Convertible Promissory Notes Interest Rate 5% Due December 2019 And 2020, Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate percentage | 5.00% | ||||||||||||
Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | 34,273 | $ 221,600 | |||||||||||
Current portion of debt | 0 | ||||||||||||
Long-term portion of debt | 34,273 | $ 244,700 | |||||||||||
Total | $ 34,273 | ||||||||||||
Interest rate percentage | 5.00% | 5.00% | |||||||||||
Convertible promissory notes | 6% Convertible Promissory Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | $ 296,233 | 286,069 | |||||||||||
Current portion of debt | 0 | 0 | |||||||||||
Long-term portion of debt | 258,862 | 236,724 | |||||||||||
Total | $ 258,862 | $ 236,724 | |||||||||||
Interest rate percentage | 6.00% | 6.00% | 6.00% | ||||||||||
Notes | Notes due July 2024, Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | $ 100,000 | $ 100,000 | |||||||||||
Current portion of debt | 0 | 0 | |||||||||||
Long-term portion of debt | 95,451 | 94,517 | |||||||||||
Total | 95,451 | 94,517 | |||||||||||
Interest rate percentage | 10.00% | ||||||||||||
Recourse debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | 434,137 | 635,786 | |||||||||||
Current portion of debt | 1,686 | 1,690 | |||||||||||
Long-term portion of debt | 390,531 | 579,155 | |||||||||||
Total | 392,217 | 580,845 | |||||||||||
PPA Company II | Senior secured notes | Senior Secured Notes due March 2025, Non-Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | 82,624 | 91,086 | |||||||||||
Current portion of debt | 11,840 | 11,389 | |||||||||||
Long-term portion of debt | 69,560 | 78,175 | |||||||||||
Total | $ 81,400 | $ 89,564 | |||||||||||
Interest rate percentage | 5.22% | 5.20% | 5.22% | ||||||||||
PPA Company IIIa | Term loan | Term Loan due September 2028, Non-Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | $ 40,937 | $ 41,927 | |||||||||||
Current portion of debt | 1,737 | 1,389 | |||||||||||
Long-term portion of debt | 34,765 | 35,551 | |||||||||||
Total | $ 36,502 | $ 36,940 | |||||||||||
Interest rate percentage | 7.50% | 7.50% | 7.50% | ||||||||||
PPA Company IIIb | Term loan | Senior Secured Notes due October 2020, Non-Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | $ 24,934 | $ 25,599 | |||||||||||
Current portion of debt | 866 | 876 | |||||||||||
Long-term portion of debt | 23,155 | 23,488 | |||||||||||
Total | 24,021 | 24,364 | |||||||||||
PPA Company IV | Senior secured notes | Senior Secured Notes due March 2030, Non-Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | 83,993 | 85,303 | |||||||||||
Current portion of debt | 2,308 | 1,846 | |||||||||||
Long-term portion of debt | 80,529 | 82,186 | |||||||||||
Total | $ 82,837 | $ 84,032 | |||||||||||
Interest rate percentage | 6.07% | 6.10% | 6.07% | ||||||||||
PPA Company V | Term loan | Term Loan due December 2021, Non-Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | $ 126,088 | $ 128,403 | |||||||||||
Current portion of debt | 3,485 | 2,946 | |||||||||||
Long-term portion of debt | 120,349 | 122,650 | |||||||||||
Total | $ 123,834 | $ 125,596 | |||||||||||
PPA Company V | Letters of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate percentage | 2.25% | 2.25% | |||||||||||
Letters of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unused Borrowing Capacity | $ 1,504 | $ 1,784 | |||||||||||
Letters of Credit | PPA Company V | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unused Borrowing Capacity | 1,504 | 1,784 | |||||||||||
Affiliated entity | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total | 68,700 | $ 107,000 | |||||||||||
Affiliated entity | Convertible Promissory Notes Interest Rate 8% Due December 2019 And 2020, Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate percentage | 8.00% | ||||||||||||
Affiliated entity | Convertible promissory notes | Convertible Promissory Notes Interest Rate 8% Due December 2019 And 2020, Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | $ 244,717 | ||||||||||||
Current portion of debt | 0 | ||||||||||||
Long-term portion of debt | 244,717 | ||||||||||||
Total | 244,717 | ||||||||||||
Affiliated entity | Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | $ 39,900 | 38,300 | |||||||||||
Interest rate percentage | 8.00% | ||||||||||||
Affiliated entity | Convertible promissory notes | 6% Convertible Promissory Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | 27,700 | 26,800 | |||||||||||
Interest rate percentage | 6.00% | 6.00% | 5.00% | ||||||||||
Affiliated entity | PPA Company IIIa | Term loan | Term Loan due September 2028, Non-Recourse | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unpaid principal balance | $ 40,900 | $ 41,900 |
Outstanding Loans and Security Agreements - Non-recourse Debt Facilities (Additional Information) (Details) |
1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Sep. 30, 2013
USD ($)
|
Mar. 31, 2013
USD ($)
|
Sep. 30, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Feb. 28, 2017
USD ($)
|
Jun. 30, 2015
USD ($)
lender
|
Jul. 31, 2014
USD ($)
|
Dec. 31, 2012
USD ($)
|
|
Debt Instrument [Line Items] | |||||||||
Unused borrowing capacity | $ 1,504,000 | $ 1,784,000 | |||||||
Long-term Debt, Gross | 792,713,000 | 1,008,104,000 | |||||||
PPA Company II | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | $ 62,188,000 | $ 53,726,000 | |||||||
PPA Company II | Senior secured notes | Senior Secured Notes due March 2025, Non-Recourse | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate percentage | 5.22% | 5.22% | 5.20% | ||||||
Total amount of loan proceeds | $ 144,800,000 | ||||||||
Repayments of debt | 28,800,000 | ||||||||
Debt proceeds used for debt service reserves and issuance costs | 21,700,000 | ||||||||
Debt used to fund remaining system purchases | $ 94,300,000 | ||||||||
Debt minimum debt service reserves required | $ 11,200,000 | $ 11,300,000 | |||||||
Long-term Debt, Gross | 82,624,000 | 91,086,000 | |||||||
PPA Company IIIa | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | $ 4,031,000 | $ 3,041,000 | |||||||
PPA Company IIIa | Term loan | Term Loan due September 2028, Non-Recourse | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate percentage | 7.50% | 7.50% | 7.50% | ||||||
Debt minimum debt service reserves required | $ 3,700,000 | $ 3,700,000 | |||||||
Debt face amount | $ 46,800,000 | ||||||||
Long-term Debt, Gross | 40,937,000 | 41,927,000 | |||||||
PPA Company IIIb | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | 3,742,000 | 3,077,000 | |||||||
PPA Company IIIb | Term loan | Term Loan due October 2020, Non-Recourse | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt minimum debt service reserves required | 1,700,000 | 1,700,000 | |||||||
Debt face amount | $ 32,500,000 | ||||||||
Long-term Debt, Gross | 24,934,000 | 25,599,000 | |||||||
PPA Company IIIb | Term loan | Term Loan due October 2020, Non-Recourse | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
LIBOR margin (as a percentage) | 5.20% | ||||||||
PPA Company IV | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | $ 15,007,000 | $ 13,697,000 | |||||||
PPA Company IV | Senior secured notes | Senior Secured Notes due March 2030, Non-Recourse | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate percentage | 6.07% | 6.10% | 6.07% | ||||||
Debt minimum debt service reserves required | $ 7,400,000 | $ 7,000,000 | |||||||
Debt face amount | $ 99,000,000 | ||||||||
Long-term Debt, Gross | 83,993,000 | 85,303,000 | |||||||
PPA Company V | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | 5,148,000 | 2,834,000 | |||||||
PPA Company V | Term loan | Term Loan due December 2021, Non-Recourse | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt face amount | $ 131,200,000 | ||||||||
Number of lenders | lender | 5 | ||||||||
Commitment fee percentage | 0.50% | ||||||||
Long-term Debt, Gross | 126,088,000 | 128,403,000 | |||||||
PPA Company V | Term loan | Term Loan due December 2021, Years One Through Three, Non-Recourse | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
LIBOR margin (as a percentage) | 2.25% | ||||||||
PPA Company V | Term loan | Term Loan due December 2021, After Year Three, Non-Recourse | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
LIBOR margin (as a percentage) | 2.50% | ||||||||
Letters of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused borrowing capacity | 1,504,000 | 1,784,000 | |||||||
Letters of Credit | PPA Company V | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 6,200,000 | $ 6,400,000 | |||||||
Amount outstanding | 4,700,000 | 4,400,000 | |||||||
Unused borrowing capacity | $ 1,504,000 | $ 1,784,000 |
Outstanding Loans and Security Agreements - Recourse Debt Facilities (Additional Information) (Details) |
1 Months Ended | 9 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 |
May 22, 2013
USD ($)
|
Dec. 31, 2014
USD ($)
related_party
shares
|
Sep. 30, 2018
USD ($)
$ / shares
shares
|
Jul. 27, 2018
USD ($)
$ / shares
|
Jun. 30, 2018
USD ($)
|
Jan. 18, 2018 |
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
agreement
|
Aug. 31, 2017
shares
|
Dec. 31, 2016
shares
|
Sep. 30, 2016
USD ($)
agreement
|
Sep. 20, 2016
USD ($)
|
Sep. 10, 2016
USD ($)
|
Jan. 29, 2016
USD ($)
|
Dec. 15, 2015
USD ($)
$ / shares
|
Jun. 30, 2015
USD ($)
|
Feb. 28, 2015
USD ($)
agreement
|
|
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt carrying value | $ 740,811,000 | $ 941,341,000 | ||||||||||||||||
Unpaid principal balance | $ 792,713,000 | 1,008,104,000 | ||||||||||||||||
Issuance of common stock upon exercise of warrants (in shares) | shares | 312,575 | |||||||||||||||||
Long-term portion of debt | $ 718,889,000 | $ 921,205,000 | ||||||||||||||||
Notes due July 2024, Recourse | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest rate percentage | 10.00% | 10.00% | ||||||||||||||||
Term loan | Term Loan due November 2020, Recourse | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt face amount | $ 12,000,000 | |||||||||||||||||
Debt term | 90 months | |||||||||||||||||
Weighted average interest rate (as a percentage) | 5.10% | |||||||||||||||||
Long-term debt carrying value | $ 3,631,000 | $ 4,887,000 | ||||||||||||||||
Unpaid principal balance | 3,631,000 | 5,000,000 | ||||||||||||||||
Long-term portion of debt | 1,945,000 | 3,197,000 | ||||||||||||||||
Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt term | 3 years | |||||||||||||||||
Long-term debt carrying value | $ 34,273,000 | |||||||||||||||||
Interest rate percentage | 5.00% | 5.00% | ||||||||||||||||
Number of related parties | related_party | 3 | |||||||||||||||||
Unpaid principal balance | $ 34,273,000 | $ 221,600,000 | ||||||||||||||||
Long-term portion of debt | 34,273,000 | 244,700,000 | ||||||||||||||||
Convertible promissory notes | Convertible Promissory Notes, January and February 2015, Recoursee | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt face amount | $ 34,000,000 | |||||||||||||||||
Number of agreements | agreement | 2 | |||||||||||||||||
Convertible promissory notes | Convertible Promissory Notes, June 2015, Recourse | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt face amount | $ 27,000,000 | |||||||||||||||||
Convertible promissory notes | Convertible Promissory Notes due December 2020, Recourse | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt face amount | $ 75,000,000 | $ 75,000,000 | $ 25,000,000 | $ 160,000,000 | ||||||||||||||
Long-term debt carrying value | $ 258,862,000 | $ 236,724,000 | ||||||||||||||||
Interest rate percentage | 6.00% | 6.00% | 6.00% | |||||||||||||||
Convertible stock price (in dollars per share) | $ / shares | $ 46.37 | $ 11.25 | ||||||||||||||||
Unpaid principal balance | $ 296,233,000 | $ 286,069,000 | ||||||||||||||||
Long-term portion of debt | 258,862,000 | 236,724,000 | ||||||||||||||||
Notes | Notes due July 2024, Recourse | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt face amount | $ 100,000,000 | |||||||||||||||||
Long-term debt carrying value | 95,451,000 | 94,517,000 | ||||||||||||||||
Interest rate percentage | 10.00% | |||||||||||||||||
Unpaid principal balance | 100,000,000 | 100,000,000 | ||||||||||||||||
Long-term portion of debt | 95,451,000 | 94,517,000 | ||||||||||||||||
Number of agreements | agreement | 5 | |||||||||||||||||
Convertible redeemable common stock warrants | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 33,333 | |||||||||||||||||
Affiliated entity | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt carrying value | $ 68,700,000 | 107,000,000 | ||||||||||||||||
Affiliated entity | Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt face amount | $ 132,200,000 | |||||||||||||||||
Debt term | 3 years | |||||||||||||||||
Interest rate percentage | 8.00% | |||||||||||||||||
Convertible stock price (in dollars per share) | $ / shares | $ 38.64 | $ 38.64 | ||||||||||||||||
Unpaid principal balance | $ 39,900,000 | 38,300,000 | ||||||||||||||||
Affiliated entity | Convertible promissory notes | Convertible Promissory Notes due December 2020, Recourse | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt face amount | $ 260,000,000 | |||||||||||||||||
Interest rate percentage | 6.00% | 6.00% | 5.00% | |||||||||||||||
Unpaid principal balance | $ 27,700,000 | $ 26,800,000 | ||||||||||||||||
Number of agreements | agreement | 5 | |||||||||||||||||
Debt interest increase (as a percentage) | 1.00% | |||||||||||||||||
Affiliated entity | Alberta Investment Management Corporation | Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt face amount | $ 10,000,000 | |||||||||||||||||
Affiliated entity | Convertible redeemable common stock warrants | CPPIB | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 312,888 | |||||||||||||||||
Maximum | Convertible redeemable common stock warrants | J.P. Morgan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 146,666 | |||||||||||||||||
Maximum | Convertible redeemable common stock warrants | CPPIB | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 166,222 | |||||||||||||||||
Maximum | Affiliated entity | Convertible redeemable common stock warrants | J.P. Morgan | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 146,666 | |||||||||||||||||
Maximum | Affiliated entity | Convertible redeemable common stock warrants | CPPIB | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 166,222 |
Outstanding Loans and Security Agreements - Schedule of Repayments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||
Remainder of 2018 | $ 5,052 | $ 5,052 | |||
2019 | 29,523 | 29,523 | |||
2020 | 392,229 | 392,229 | |||
2021 | 153,639 | 153,639 | |||
2022 | 40,059 | 40,059 | |||
Thereafter | 172,211 | 172,211 | |||
Total | 792,713 | 792,713 | $ 1,008,104 | ||
Interest expense | $ 18,800 | $ 28,900 | $ 68,000 | $ 78,800 |
Derivative Financial Instruments - Fair Value Derivatives (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivative [Line Items] | ||
Interest rate swap agreements | $ 1,368 | $ 52 |
Derivatives designated as hedging instruments | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Interest rate swap agreements | 1,368 | 52 |
Derivative liability | 1,845 | 5,905 |
Derivatives designated as hedging instruments | Prepaid expenses and other current assets | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Interest rate swap agreements | 132 | 0 |
Derivatives designated as hedging instruments | Other long-term assets | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Interest rate swap agreements | 1,236 | 52 |
Derivatives designated as hedging instruments | Accrued other current liabilities | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Derivative liability | 19 | 845 |
Derivatives designated as hedging instruments | Derivative liabilities | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Derivative liability | $ 1,826 | $ 5,060 |
Derivative Financial Instruments - Natural Gas Derivatives (Additional Information) (Details) - Not designated as hedging instrument - Natural gas forward contract - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative | $ 1.1 | $ (0.3) | $ 1.1 | $ 2.4 |
Gain on the settlement of contracts | $ 0.6 | $ 1.1 | $ 2.9 | $ 3.3 |
Derivative Financial Instruments - Interest Rate Swaps (Additional Information) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
Jul. 31, 2015
agreement
|
|
Interest rate swap | ||||||
Credit Derivatives [Line Items] | ||||||
Gain (loss) on derivative | $ 220 | $ 190 | ||||
Cash flow hedging | Interest rate swap | PPA Company IIIb | ||||||
Credit Derivatives [Line Items] | ||||||
Notional amount | $ 24,900 | 24,900 | 25,600 | |||
Gain (loss) on derivative | (30) | $ (16) | 31 | $ 46 | ||
Cash flow hedging | Interest rate swap | PPA Company V | ||||||
Credit Derivatives [Line Items] | ||||||
Notional amount | 187,300 | 187,300 | $ 188,500 | |||
Gain (loss) on derivative | $ 40 | $ 32 | $ 149 | $ 84 | ||
Number of swap agreements entered into | agreement | 9 | |||||
Cash flow hedging | Interest rate swap maturing In 2016 | PPA Company V | ||||||
Credit Derivatives [Line Items] | ||||||
Number of swap agreements entered into | agreement | 3 | |||||
Cash flow hedging | Interest rate swap maturing September 30, 2031 | PPA Company V | ||||||
Credit Derivatives [Line Items] | ||||||
Number of swap agreements entered into | agreement | 3 | |||||
Cash flow hedging | Interest rate swap maturing December 21, 2021 | PPA Company V | ||||||
Credit Derivatives [Line Items] | ||||||
Number of swap agreements entered into | agreement | 3 |
Derivative Financial Instruments - Changes in Fair Value of Derivative Contracts (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax: | |||||
Beginning balance | $ (2,030,647) | $ (1,839,388) | $ (1,966,478) | $ (1,724,954) | $ (1,724,954) |
Other comprehensive income (loss) | 1,241 | 72 | 5,181 | (231) | |
Ending balance | 106,320 | $ (1,900,655) | 106,320 | (1,900,655) | (1,966,478) |
Derivative contracts | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax: | |||||
Beginning balance | 5,853 | $ 6,937 | 6,937 | ||
Loss recognized in other comprehensive loss | (4,796) | 669 | |||
Amounts reclassified from other comprehensive loss to earnings | (360) | (1,563) | |||
Other comprehensive income (loss) | (5,156) | (894) | |||
Ending balance | $ 477 | 477 | 5,853 | ||
Interest rate swap agreements | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax: | |||||
Gain recognized in earnings | $ (220) | $ (190) |
Derivative Financial Instruments - 6% Convertible Promissory Notes (Additional Information) (Details) - 6% Convertible Promissory Notes - Convertible promissory notes - USD ($) |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
Jul. 01, 2017 |
Sep. 20, 2016 |
Sep. 10, 2016 |
Jan. 29, 2016 |
Dec. 15, 2015 |
|
Debt Instrument [Line Items] | ||||||||||
Interest rate percentage | 6.00% | 6.00% | 6.00% | 6.00% | ||||||
Debt face amount | $ 75,000,000 | $ 75,000,000 | $ 25,000,000 | $ 160,000,000 | ||||||
Convertible stock price (in dollars per share) | $ 46.37 | $ 46.37 | $ 11.25 | |||||||
Convertible debt, stock price trigger | 75.00% | |||||||||
Embedded derivative liability | $ 177,200,000 | |||||||||
Gain (loss) on embedded derivative | $ 600,000 | $ 100,000 | $ (30,900,000) | $ 2,600,000 |
Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants - Summary of Convertible Preferred Stock (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Temporary Equity [Line Items] | ||
Shares authorized (in shares) | 80,461,552 | 80,461,609 |
Shares issued (in shares) | 0 | 71,740,162 |
Shares outstanding (in shares) | 0 | 71,740,162 |
Carrying value | $ 0 | $ 1,465,841 |
Class B common stock | ||
Temporary Equity [Line Items] | ||
Shares outstanding (in shares) | 71,740,162 | |
Convertible preferred stock | ||
Temporary Equity [Line Items] | ||
Shares authorized (in shares) | 80,461,552 | |
Shares issued (in shares) | 71,740,162 | |
Carrying value | $ 1,465,841 | |
Series A preferred | ||
Temporary Equity [Line Items] | ||
Shares authorized (in shares) | 9,374,101 | |
Shares issued (in shares) | 9,374,101 | |
Shares outstanding (in shares) | 9,374,101 | |
Carrying value | $ 8,956 | |
Series B preferred | ||
Temporary Equity [Line Items] | ||
Shares authorized (in shares) | 7,868,854 | |
Shares issued (in shares) | 7,868,856 | |
Shares outstanding (in shares) | 7,868,854 | |
Carrying value | $ 11,941 | |
Series C preferred | ||
Temporary Equity [Line Items] | ||
Shares authorized (in shares) | 5,979,062 | |
Shares issued (in shares) | 5,979,069 | |
Shares outstanding (in shares) | 5,979,062 | |
Carrying value | $ 44,928 | |
Series D preferred | ||
Temporary Equity [Line Items] | ||
Shares authorized (in shares) | 6,443,818 | |
Shares issued (in shares) | 6,443,831 | |
Shares outstanding (in shares) | 6,443,818 | |
Carrying value | $ 102,648 | |
Series E preferred | ||
Temporary Equity [Line Items] | ||
Shares authorized (in shares) | 9,486,362 | |
Shares issued (in shares) | 9,486,398 | |
Shares outstanding (in shares) | 9,486,362 | |
Carrying value | $ 198,264 | |
Series F preferred | ||
Temporary Equity [Line Items] | ||
Shares authorized (in shares) | 14,597,248 | |
Shares issued (in shares) | 13,885,893 | |
Shares outstanding (in shares) | 13,885,893 | |
Carrying value | $ 376,962 | |
Series G preferred | ||
Temporary Equity [Line Items] | ||
Shares authorized (in shares) | 26,712,107 | |
Shares issued (in shares) | 18,702,014 | |
Shares outstanding (in shares) | 18,702,072 | |
Carrying value | $ 722,142 |
Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants - Convertible Stock and Warrants (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jul. 31, 2018 |
Sep. 30, 2018 |
Jul. 27, 2018 |
Jun. 30, 2018 |
Jan. 18, 2018 |
Dec. 31, 2017 |
Dec. 31, 2014 |
|
Class of Stock [Line Items] | |||||||
Unpaid principal balance | $ 792,713 | $ 1,008,104 | |||||
Convertible redeemable preferred stock, shares outstanding (in shares) | 0 | 71,740,162 | |||||
Class B common stock | |||||||
Class of Stock [Line Items] | |||||||
Debt conversion, shares issued (in shares) | 5,734,440 | ||||||
Convertible redeemable preferred stock, shares outstanding (in shares) | 71,740,162 | ||||||
Convertible Promissory Notes due December 2019 and 2020, Recourse | Convertible promissory notes | |||||||
Class of Stock [Line Items] | |||||||
Unpaid principal balance | $ 34,273 | $ 221,600 | |||||
Interest rate percentage | 5.00% | 5.00% | |||||
Affiliated entity | Convertible Promissory Notes due December 2019 and 2020, Recourse | Convertible promissory notes | |||||||
Class of Stock [Line Items] | |||||||
Unpaid principal balance | $ 39,900 | $ 38,300 | |||||
Interest rate percentage | 8.00% | ||||||
Convertible stock price (in dollars per share) | $ 38.64 | $ 38.64 |
Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants - Warrants Outstanding and Respective Fair Value (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Series F warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 0 | 581,182 |
Warrants and Rights Outstanding | $ 0 | $ 8,378 |
Series G warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 0 | 279,606 |
Warrants and Rights Outstanding | $ 0 | $ 1,447 |
Preferred stock warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 0 | 860,788 |
Warrants and Rights Outstanding | $ 0 | $ 9,825 |
Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants - Preferred stock Warrants (Additional Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Class of Warrant or Right [Line Items] | ||||
Gain on change in fair value of warrant | $ 1,487 | $ 8,943 | ||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 882 | $ 882 | $ 0 | |
Preferred stock warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants outstanding (in shares) | 0 | 0 | 860,788 | |
Warrants and Rights Outstanding | $ 0 | $ 0 | $ 9,825 |
Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants - Common Stock Warrants (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2017 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2013 |
Jul. 01, 2017 |
Sep. 30, 2016 |
Dec. 31, 2014 |
|
Class of Warrant or Right [Line Items] | ||||||||||
Issuance of common stock upon exercise of warrants (in shares) | 312,575 | |||||||||
Adjustment to additional paid in capital related to warrant reclassification | $ 9,410 | $ 9,410 | ||||||||
Common stock warrants | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Number of securities called by warrants (in shares) | 33,333 | |||||||||
Warrant exercise price (in dollars per share) | $ 38.64 | |||||||||
Revaluation of warrants | $ 9,200 | $ 3,300 | ||||||||
Common stock warrants | Maximum | J.P. Morgan | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Number of securities called by warrants (in shares) | 146,666 | |||||||||
Common stock warrants | Maximum | CPPIB | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Number of securities called by warrants (in shares) | 166,222 | |||||||||
Convertible promissory notes | Convertible Promissory Notes due December 2020, Recourse | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Interest rate percentage | 6.00% | 6.00% | 6.00% | |||||||
Affiliated entity | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Adjustment to additional paid in capital related to warrant reclassification | $ 9,400 | |||||||||
Affiliated entity | Common stock warrants | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Revaluation of warrants | $ 200 | |||||||||
Affiliated entity | Common stock warrants | CPPIB | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Number of securities called by warrants (in shares) | 312,888 | |||||||||
Affiliated entity | Common stock warrants | Maximum | J.P. Morgan | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Number of securities called by warrants (in shares) | 146,666 | |||||||||
Affiliated entity | Common stock warrants | Maximum | CPPIB | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Number of securities called by warrants (in shares) | 166,222 | |||||||||
Affiliated entity | Convertible promissory notes | Convertible Promissory Notes due December 2020, Recourse | ||||||||||
Class of Warrant or Right [Line Items] | ||||||||||
Interest rate percentage | 6.00% | 6.00% | 5.00% |
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Operating Loss Carryforwards [Line Items] | |||||
Income tax provision (benefit) | $ (3) | $ 314 | $ 458 | $ 756 | |
Net loss before income taxes | $ 82,513 | $ 76,044 | $ 154,588 | $ 208,588 | |
Effective income tax rate | 0.00% | (0.40%) | (0.30%) | (0.40%) | |
Valuation allowance | $ 542,400 | ||||
Statutory tax rate | 21.00% | 34.00% | |||
Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 1,700,000 | ||||
State and Local Jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 1,500,000 | ||||
Research Tax Credit Carryforward | Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit carryforwards | 16,100 | ||||
Research Tax Credit Carryforward | State and Local Jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit carryforwards | 12,200 | ||||
Investment Tax Credit Carryforward | Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit carryforwards | $ 6,600 |
Net Loss per Share Attributable to Common Stockholders - (Additional Information) (Details) |
1 Months Ended |
---|---|
Jul. 31, 2018
shares
| |
IPO | |
Subsidiary, Sale of Stock [Line Items] | |
Shares sold in offering (in shares) | 20,700,000 |
Net Loss per Share Attributable to Common Stockholders - Schedule of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Numerator: | ||||
Net loss attributable to common stockholders | $ (78,579) | $ (71,831) | $ (141,972) | $ (194,838) |
Less: noncumulative dividends to preferred stockholders | 0 | |||
Less: undistributed earnings to participating securities | 0 | 0 | 0 | 0 |
Net loss attributable to common stockholders (basic) | (78,579) | (71,831) | (141,972) | (194,838) |
Add: adjustments to undistributed earnings to participating securities | 0 | 0 | 0 | |
Net loss attributable to common stockholders (diluted) | $ (78,579) | $ (71,831) | $ (141,972) | $ (194,838) |
Denominator: | ||||
Weighted average shares of common stock (basic) | 81,321 | 10,305 | 34,347 | 10,220 |
Effect of potentially dilutive stock options | 0 | 0 | 0 | |
Weighted average shares of common stock-diluted (in shares) | 81,321 | 10,305 | 34,347 | |
Net loss per share attributable to common stockholders: | ||||
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.97) | $ (6.97) | $ (4.13) | $ (19.06) |
Net Loss per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 28,055 | 88,519 | 30,762 | 88,375 |
Convertible and non-convertible redeemable preferred stock and convertible notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 24,512 | 85,241 | 27,219 | 85,241 |
Stock options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 3,454 | 2,905 | 3,454 | 2,762 |
Convertible redeemable preferred stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 0 | 60 | 0 | 60 |
Convertible redeemable common stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 89 | 313 | 89 | 312 |
Stock-Based Compensation and Employee Benefit Plan - Stock Plan (Additional Information) (Details) - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 18,535,077 | 1,037,616 | 2,768,450 |
Weighted average exercise price, outstanding options (in dollars per share) | $ 25.88 | $ 26.42 | $ 23.85 |
2002 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price, outstanding options (in dollars per share) | $ 20.04 | ||
2002 Stock Plan | Class B common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of outstanding options (in shares) | 2,400,000 | ||
Stock option | 2002 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 0 |
Stock-Based Compensation and Employee Benefit Plan - Equity Incentive Plan (Additional Information) (Details) - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2012 |
---|---|---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 18,535,077 | 1,037,616 | 2,768,450 | |
Weighted average exercise price, outstanding options (in dollars per share) | $ 25.88 | $ 26.42 | $ 23.85 | |
2012 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum grant percentage of fair value of common stock | 85.00% | |||
Minimum grant percentage of fair value of shareholders | 110.00% | |||
Minimum grant percentage of fair value of voting stock | 10.00% | |||
Weighted average exercise price, outstanding options (in dollars per share) | $ 27.13 | |||
2012 Equity Incentive Plan | Class B common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of outstanding options (in shares) | 11,007,146 | |||
2018 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average exercise price, outstanding options (in dollars per share) | $ 27.65 | |||
2018 Equity Incentive Plan | Class A common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of outstanding options (in shares) | 1,597,548 | |||
Shares reserved for future issuance (in shares) | 20,135,603 | |||
Number of common stock reserved for issuance (in shares) | 26,666,667 | |||
Stock option | 2012 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 0 | |||
Stock option | 2018 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 18,535,077 | |||
RSUs | 2012 Equity Incentive Plan | Class B common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance (in shares) | 15,289,021 | |||
RSUs | 2018 Equity Incentive Plan | Class A common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of outstanding options (in shares) | 1,497,548 |
Stock-Based Compensation and Employee Benefit Plan - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 71,677 | $ 7,686 | $ 87,451 | $ 22,349 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 16,156 | 1,906 | 20,025 | 5,543 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 15,127 | 1,354 | 18,504 | 4,060 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 12,900 | 1,002 | 15,066 | 3,622 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 27,494 | $ 3,424 | $ 33,856 | $ 9,124 |
Stock-Based Compensation and Employee Benefit Plan - Stock Option and Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Options/ RSUs Available for Grant | |||
Options/RSUs available for grant, balance (in shares) | 1,037,616 | 2,768,450 | |
Added to plan (in shares) | 40,782,196 | 647,159 | |
Granted (in shares) | (16,853,050) | (2,698,594) | |
Cancelled (in shares) | 916,572 | 967,760 | |
Expired (in shares) | (7,348,257) | (647,159) | |
Options/RSUs available for grant, balance (in shares) | 18,535,077 | 1,037,616 | 2,768,450 |
Outstanding Options/RSUs, Number of Shares | |||
Outstanding (in shares) | 14,744,981 | 13,171,196 | |
Granted (in shares) | 16,853,050 | 2,698,594 | |
Exercised (in shares) | (395,611) | (157,049) | |
Cancelled (in shares) | (916,572) | (967,760) | |
Outstanding (in shares) | 30,285,848 | 14,744,981 | 13,171,196 |
Outstanding Options Weighted Average Exercise Price | |||
Outstanding (in dollars per share) | $ 26.42 | $ 23.85 | |
Granted (in dollars per share) | 16.24 | 30.96 | |
Exercised (in dollars per share) | 4.03 | 2.76 | |
Cancelled (in dollars per share) | 9.96 | 7.44 | |
Outstanding (in dollars per share) | $ 25.88 | $ 26.42 | $ 23.85 |
Outstanding, remaining contractual life | 6 years 9 months | 6 years 2 months 9 days | 6 years 1 month 10 days |
Outstanding, aggregate intrinsic value | $ 110,750 | $ 52,703 | $ 74,717 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Vested and expected to vest (in shares) | 13,038,789 | ||
Exercisable (in shares) | 7,858,582 | ||
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ 26.07 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 27.51 | ||
Vested and expected to vest, remaining contractual life | 6 years 8 months | ||
Exercisable, remaining contractual life | 5 years 1 month 25 days | ||
Vested and expected to vest, aggregate intrinsic value | $ 104,482 | ||
Exercisable, aggregate intrinsic value | $ 51,608 |
Stock-Based Compensation and Employee Benefit Plan - Stock Options (Additional Information) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Share-based Arrangements with Employees and Nonemployees [Abstract] | ||||
Allocated share-based compensation expense | $ 71,700,000 | $ 7,700,000 | $ 87,500,000 | $ 22,300,000 |
Capitalized stock-based compensation costs | 0 | 0 | 0 | 0 |
Stock options exercised | 2,900,000 | 600,000 | 8,800,000 | 3,100,000 |
Unrecognized compensation cost related to unvested stock options | $ 64,900,000 | $ 64,900,000 | ||
Expense expected to be recognized over remaining weighted-average period | 2 years 9 months 3 days | |||
Excess tax benefits | $ 0 | $ 0 | $ 0 | |
Class A common stock | ||||
Share-based Arrangements with Employees and Nonemployees [Abstract] | ||||
Granted options (in shares) | 1,600,526 | 0 | 1,600,526 | 0 |
Class B common stock | ||||
Share-based Arrangements with Employees and Nonemployees [Abstract] | ||||
Granted options (in shares) | 14,828,664 | 113,612 | 15,252,524 | 1,795,296 |
Stock-Based Compensation and Employee Benefit Plan - Restricted Stock Units (Additional Information) (Details) - Restricted Stock - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of RSUs grants in period | $ 219.1 | $ 1.5 | $ 220.4 | $ 16.4 |
Unrecognized stock-based compensation cost | $ 238.6 | $ 238.6 | ||
Expense expected to be recognized over a weighted-average period | 1 year 29 days |
Stock-Based Compensation and Employee Benefit Plan - Unvested Restricted Stock Unit Activity (Details) - Restricted Stock - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Unvested Restricted Stock Unit Activity | ||
Unvested balance (in shares) | 3,140,578 | 2,666,446 |
Granted (in shares) | 13,788,433 | 552,481 |
Vested (in shares) | (17,793) | (33,896) |
Forfeited (in shares) | (124,649) | (44,453) |
Unvested balance (in shares) | 16,786,569 | |
Weighted Average Grant Date Fair Value | ||
Unvested balance (in dollars per share) | $ 30.95 | $ 30.95 |
Granted (in dollars per share) | 15.98 | 30.96 |
Vested (in dollars per share) | 19.67 | 30.96 |
Forfeited (in dollars per share) | 25.13 | $ 30.95 |
Unvested balance (in dollars per share) | $ 18.71 |
Stock-Based Compensation and Employee Benefit Plan - Employee Stock Purchase Plan (Details) - 2018 ESPP - Employee Stock - Class A common stock - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Jul. 25, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance (in shares) | 3,333,333 | |
Number of common stock reserved for issuance (in shares) | 33,333,333 | |
Purchase price of common stock, percentage of fair market value | 85.00% |
Stock-Based Compensation and Employee Benefit Plan - Employee Benefit Plan (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Compensation Related Costs [Abstract] | |
Defined benefit plan, maximum percentage of eligible compensation deferred | 60.00% |
Power Purchase Agreement Programs - Additional Information (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018
USD ($)
variable_interest_entity
|
Dec. 31, 2017
USD ($)
|
|
Variable Interest Entity [Line Items] | ||
Standard warranty period | 1 year | |
Number of variable interest entities | variable_interest_entity | 6 | |
Redeemable noncontrolling interest | $ | $ 56,446 | $ 58,154 |
Minimum | ||
Variable Interest Entity [Line Items] | ||
Term of power purchase agreements (years) | 10 years | |
Maximum | ||
Variable Interest Entity [Line Items] | ||
Term of power purchase agreements (years) | 21 years |
Power Purchase Agreement Programs - Schedule of VIEs (Details) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2018
USD ($)
MWh
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
MWh
|
|
Variable Interest Entity [Line Items] | |||
Distributions to Equity Investor | $ (288) | $ (855) | |
PPA I | |||
Variable Interest Entity [Line Items] | |||
Maximum size of installation (in megawatts) | MWh | 25 | ||
Term of power purchase agreements (years) | 10 years | ||
Income (loss) and tax benefits allocation to Equity Investor | 99.00% | ||
Cash allocation to Equity Investor | 80.00% | ||
Income (loss), tax and cash allocations to Equity Investor after the flip date | 22.00% | ||
Installed size (in megawatts) | MWh | 5 | 5 | |
Company cash contributions | $ 180,699 | $ 180,699 | |
Company non-cash contributions | 0 | 0 | |
Equity Investor cash contributions | 100,000 | 100,000 | |
Distributions to Equity Investor | (81,016) | (81,016) | |
Debt financing | 0 | 0 | |
Debt repayment—principal | $ 0 | $ 0 | |
PPA Company II | |||
Variable Interest Entity [Line Items] | |||
Maximum size of installation (in megawatts) | MWh | 30 | ||
Term of power purchase agreements (years) | 21 years | ||
Income (loss) and tax benefits allocation to Equity Investor | 99.00% | ||
Cash allocation to Equity Investor | 99.00% | ||
Income (loss), tax and cash allocations to Equity Investor after the flip date | 5.00% | ||
Installed size (in megawatts) | MWh | 30 | 30 | |
Company cash contributions | $ 22,442 | $ 22,442 | |
Company non-cash contributions | 0 | 0 | |
Equity Investor cash contributions | 139,993 | 139,993 | |
Distributions to Equity Investor | (116,942) | (111,296) | |
Debt financing | 144,813 | 144,813 | |
Debt repayment—principal | $ (62,188) | $ (53,726) | |
PPA Company IIIa | |||
Variable Interest Entity [Line Items] | |||
Maximum size of installation (in megawatts) | MWh | 10 | ||
Term of power purchase agreements (years) | 15 years | ||
Income (loss) and tax benefits allocation to Equity Investor | 99.00% | ||
Cash allocation to Equity Investor | 99.00% | ||
Income (loss), tax and cash allocations to Equity Investor after the flip date | 5.00% | ||
Installed size (in megawatts) | MWh | 10 | 10 | |
Company cash contributions | $ 32,223 | $ 32,223 | |
Company non-cash contributions | 8,655 | 8,655 | |
Equity Investor cash contributions | 36,967 | 36,967 | |
Distributions to Equity Investor | (3,877) | (3,324) | |
Debt financing | 44,968 | 44,968 | |
Debt repayment—principal | $ (4,031) | $ (3,041) | |
PPA Company IIIb | |||
Variable Interest Entity [Line Items] | |||
Maximum size of installation (in megawatts) | MWh | 6 | ||
Term of power purchase agreements (years) | 15 years | ||
Income (loss) and tax benefits allocation to Equity Investor | 99.00% | ||
Cash allocation to Equity Investor | 99.00% | ||
Income (loss), tax and cash allocations to Equity Investor after the flip date | 5.00% | ||
Installed size (in megawatts) | MWh | 5 | 5 | |
Company cash contributions | $ 22,658 | $ 22,658 | |
Company non-cash contributions | 2,082 | 2,082 | |
Equity Investor cash contributions | 20,152 | 20,152 | |
Distributions to Equity Investor | (1,706) | (1,404) | |
Debt financing | 28,676 | 28,676 | |
Debt repayment—principal | $ (3,742) | $ (3,077) | |
PPA Company IV | |||
Variable Interest Entity [Line Items] | |||
Maximum size of installation (in megawatts) | MWh | 21 | ||
Term of power purchase agreements (years) | 15 years | ||
Income (loss) and tax benefits allocation to Equity Investor | 90.00% | ||
Cash allocation to Equity Investor | 90.00% | ||
Installed size (in megawatts) | MWh | 19 | 19 | |
Company cash contributions | $ 11,669 | $ 11,669 | |
Company non-cash contributions | 0 | 0 | |
Equity Investor cash contributions | 84,782 | 84,782 | |
Distributions to Equity Investor | (4,568) | (2,565) | |
Debt financing | 99,000 | 99,000 | |
Debt repayment—principal | $ (15,007) | $ (13,697) | |
PPA Company V | |||
Variable Interest Entity [Line Items] | |||
Maximum size of installation (in megawatts) | MWh | 40 | ||
Term of power purchase agreements (years) | 15 years | ||
Income (loss) and tax benefits allocation to Equity Investor | 99.00% | ||
Cash allocation to Equity Investor | 90.00% | ||
Installed size (in megawatts) | MWh | 37 | 37 | |
Company cash contributions | $ 27,932 | $ 27,932 | |
Company non-cash contributions | 0 | 0 | |
Equity Investor cash contributions | 227,344 | 227,344 | |
Distributions to Equity Investor | (65,688) | (60,286) | |
Debt financing | 131,237 | 131,237 | |
Debt repayment—principal | $ (5,148) | $ (2,834) |
Power Purchase Agreement Programs - Schedule of PPA Entities' Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Current assets | ||
Cash and cash equivalents | $ 395,516 | $ 103,828 |
Restricted cash, current | 17,931 | 44,387 |
Accounts receivable | 41,485 | 30,317 |
Customer financing receivable | 5,496 | 5,209 |
Total current assets | 698,532 | 419,981 |
Property, plant and equipment, net | 471,074 | 497,789 |
Non-current portion of investment in sales-type financing leases | 68,535 | 72,677 |
Restricted cash, non-current | 30,779 | 32,397 |
Other long-term assets | 37,008 | 37,460 |
Total assets | 1,445,145 | 1,220,987 |
Current liabilities | ||
Accounts payable | 59,818 | 48,582 |
Accrued other current liabilities | 66,873 | 67,649 |
Deferred revenue and customer deposits | 105,265 | 118,106 |
Current portion of debt | 21,922 | 20,136 |
Total current liabilities | 271,853 | 271,284 |
Derivative liabilities | 9,441 | 156,552 |
Deferred revenue and customer deposits | 290,481 | 309,843 |
Long-term portion of debt | 718,889 | 921,205 |
Other long-term liabilities | 48,161 | 52,915 |
Total liabilities | 1,338,825 | 1,721,624 |
Variable Interest Entity, Primary Beneficiary | ||
Current assets | ||
Cash and cash equivalents | 5,496 | 9,549 |
Restricted cash, current | 3,252 | 7,969 |
Accounts receivable | 7,377 | 7,680 |
Customer financing receivable | 5,496 | 5,209 |
Prepaid expenses and other current assets | 5,727 | 6,365 |
Total current assets | 27,348 | 36,772 |
Property, plant and equipment, net | 406,784 | 430,464 |
Non-current portion of investment in sales-type financing leases | 68,535 | 72,677 |
Restricted cash, non-current | 27,778 | 26,748 |
Other long-term assets | 4,702 | 3,767 |
Total assets | 535,147 | 570,428 |
Current liabilities | ||
Accounts payable | 549 | 520 |
Accrued other current liabilities | 1,145 | 2,378 |
Deferred revenue and customer deposits | 786 | 786 |
Current portion of debt | 20,235 | 18,446 |
Total current liabilities | 22,715 | 22,130 |
Derivative liabilities | 1,826 | 5,060 |
Deferred revenue and customer deposits | 8,894 | 9,482 |
Long-term portion of debt | 328,358 | 342,050 |
Other long-term liabilities | 1,656 | 1,226 |
Total liabilities | $ 363,449 | $ 379,948 |
Power Purchase Agreement Programs - Schedule of Consolidated Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Current assets | $ 698,532 | $ 419,981 |
Long-term assets | 746,613 | 801,006 |
Total assets | 1,445,145 | 1,220,987 |
Current liabilities | 249,931 | 251,148 |
Current portion of debt | 21,922 | 20,136 |
Long-term liabilities | 348,083 | 529,135 |
Long-term portion of debt | 718,889 | 921,205 |
Total liabilities | 1,338,825 | 1,721,624 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 27,348 | 36,772 |
Long-term assets | 507,799 | 533,656 |
Total assets | 535,147 | 570,428 |
Current liabilities | 2,480 | 3,684 |
Current portion of debt | 20,235 | 18,446 |
Long-term liabilities | 12,376 | 15,768 |
Long-term portion of debt | 328,358 | 342,050 |
Total liabilities | 363,449 | 379,948 |
Bloom | ||
Variable Interest Entity [Line Items] | ||
Current assets | 671,184 | 383,209 |
Long-term assets | 238,814 | 267,350 |
Total assets | 909,998 | 650,559 |
Current liabilities | 247,451 | 247,464 |
Current portion of debt | 1,687 | 1,690 |
Long-term liabilities | 335,707 | 513,367 |
Long-term portion of debt | 390,531 | 579,155 |
Total liabilities | $ 975,376 | $ 1,341,676 |
Commitments and Contingencies - Additional Information (Details) |
3 Months Ended | 9 Months Ended | 76 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
ft²
employee
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
ft²
employee
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jan. 31, 2019
ft²
|
Dec. 31, 2017
USD ($)
|
Feb. 28, 2017
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2012
USD ($)
employee
|
|
Operating Leased Assets [Line Items] | ||||||||||
Operating leases, rent expense | $ 1,700,000 | $ 1,400,000 | $ 4,600,000 | $ 4,300,000 | ||||||
Sale leaseback rent expense | 0 | 0 | $ 0 | 0 | ||||||
Standard warranty period | 1 year | |||||||||
Grants receivable | $ 16,500,000 | |||||||||
Number of employees to be hired per incentive grant agreement | employee | 900 | |||||||||
Minimum cumulative employee compensation, recapture period one | $ 108,000,000 | |||||||||
Minimum cumulative employee compensation, recapture period three | 324,000,000 | |||||||||
Cumulative compensation expense incurred | 86,000,000 | $ 86,000,000 | ||||||||
Proceeds from government grants | $ 12,000,000 | |||||||||
Grant agreement, maximum possible repayment amount, recapture period two | 5,000,000 | |||||||||
Grant agreement, maximum possible repayment amount, recapture period three | $ 2,500,000 | |||||||||
Grant agreement, recapture provision repayments | 1,500,000 | 1,500,000 | $ 1,500,000 | |||||||
Delaware grant obligation | $ 10,469,000 | $ 10,469,000 | 10,469,000 | |||||||
Self-Generation Incentive Program, percentage of incentive issued in the first year | 50.00% | |||||||||
Self-Generation Incentive Program, subsequent payment period | 5 years | |||||||||
Sunnyvale, California | ||||||||||
Operating Leased Assets [Line Items] | ||||||||||
Area of real estate property | ft² | 31,000 | 31,000 | ||||||||
Delaware | ||||||||||
Operating Leased Assets [Line Items] | ||||||||||
Number of full time employees | employee | 335 | 335 | ||||||||
Subsequent Event | San Jose, California | ||||||||||
Operating Leased Assets [Line Items] | ||||||||||
Area of real estate property | ft² | 181,000 | |||||||||
PPA Company V | ||||||||||
Operating Leased Assets [Line Items] | ||||||||||
PPA expenses | $ 0 | $ 0 | $ 900,000 | $ 3,700,000 | ||||||
Term loan | PPA Company V | Term Loan due December 2021, Non-Recourse | ||||||||||
Operating Leased Assets [Line Items] | ||||||||||
Debt face amount | $ 131,200,000 | |||||||||
Letters of Credit | PPA Company V | ||||||||||
Operating Leased Assets [Line Items] | ||||||||||
Maximum borrowing capacity | $ 6,200,000 | $ 6,400,000 | ||||||||
Amount outstanding | $ 4,700,000 | $ 4,700,000 | $ 4,400,000 |
Commitments and Contingencies - Minimum Lease Payments (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Future Minimum Lease Payments Under Operating Leases | |
Remainder of 2018 | $ 2,011 |
2019 | 8,725 |
2020 | 7,581 |
2021 | 5,097 |
2022 | 4,382 |
Thereafter | 25,249 |
Total operating leases, future minimum payments due | $ 53,045 |
Segment Information and Concentration of Risk (Details) - Sales Revenue, Net - Customer Concentration Risk |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Keysight | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 12.00% | |||
The Southern Company | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 54.00% | 46.00% | 51.00% | 38.00% |
Delmarva | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.00% | 15.00% |
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Related Party Transactions [Abstract] | ||||
Interest paid or payable to related parties | $ 1,443 | $ 1,953 | $ 5,378 | $ 5,785 |
Consulting expenses paid to related parties (included in general and administrative expense) | $ 52 | $ 53 | $ 153 | $ 154 |
Related Party Transactions - Additional Information (Details) |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2017
USD ($)
shares
|
Jul. 01, 2017 |
Jul. 31, 2018
shares
|
Dec. 31, 2014
USD ($)
shares
|
Sep. 30, 2018
USD ($)
$ / shares
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
$ / shares
shares
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
shares
|
Dec. 31, 2013
USD ($)
|
Jul. 27, 2018
USD ($)
$ / shares
|
Jun. 30, 2018
USD ($)
|
Jan. 18, 2018 |
Sep. 30, 2016
USD ($)
agreement
|
Sep. 20, 2016
USD ($)
|
Sep. 10, 2016
USD ($)
|
Jan. 29, 2016
USD ($)
|
Dec. 15, 2015
USD ($)
$ / shares
|
Dec. 31, 2012
USD ($)
|
|
Related Party Transaction [Line Items] | ||||||||||||||||||||
Long-term debt carrying value | $ 740,811,000 | $ 740,811,000 | $ 941,341,000 | |||||||||||||||||
Unpaid principal balance | 792,713,000 | 792,713,000 | 1,008,104,000 | |||||||||||||||||
Interest paid | $ 30,601,000 | $ 16,874,000 | ||||||||||||||||||
Issuance of common stock upon exercise of warrants (in shares) | shares | 312,575 | |||||||||||||||||||
Issuance of common stock warrant | $ 9,410,000 | 9,410,000 | ||||||||||||||||||
Affiliated entity | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Long-term debt carrying value | 68,700,000 | $ 68,700,000 | 107,000,000 | |||||||||||||||||
Issuance of common stock warrant | $ 9,400,000 | |||||||||||||||||||
Consulting Agreement | General Colin L. Powell | Director | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Related party amount of transaction | 125,000 | |||||||||||||||||||
Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Long-term debt carrying value | $ 34,273,000 | $ 34,273,000 | ||||||||||||||||||
Debt term | 3 years | |||||||||||||||||||
Interest rate percentage | 5.00% | 5.00% | 5.00% | |||||||||||||||||
Unpaid principal balance | $ 34,273,000 | $ 34,273,000 | $ 221,600,000 | |||||||||||||||||
Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | Affiliated entity | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Debt term | 3 years | |||||||||||||||||||
Debt face amount | $ 132,200,000 | |||||||||||||||||||
Interest rate percentage | 8.00% | |||||||||||||||||||
Convertible stock price (in dollars per share) | $ / shares | $ 38.64 | $ 38.64 | $ 38.64 | |||||||||||||||||
Unpaid principal balance | 38,300,000 | $ 39,900,000 | ||||||||||||||||||
Convertible promissory notes | Convertible Promissory Notes due December 2019 and 2020, Recourse | Alberta Investment Management Corporation | Affiliated entity | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Debt face amount | $ 10,000,000 | |||||||||||||||||||
Convertible promissory notes | Convertible Promissory Notes due December 2020, Recourse | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Long-term debt carrying value | $ 258,862,000 | $ 258,862,000 | $ 236,724,000 | |||||||||||||||||
Debt face amount | $ 75,000,000 | $ 75,000,000 | $ 25,000,000 | $ 160,000,000 | ||||||||||||||||
Interest rate percentage | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||||||||
Convertible stock price (in dollars per share) | $ / shares | $ 46.37 | $ 46.37 | $ 11.25 | |||||||||||||||||
Unpaid principal balance | $ 296,233,000 | $ 296,233,000 | $ 286,069,000 | |||||||||||||||||
Convertible promissory notes | Convertible Promissory Notes due December 2020, Recourse | Affiliated entity | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Debt face amount | $ 260,000,000 | |||||||||||||||||||
Interest rate percentage | 6.00% | 6.00% | 5.00% | |||||||||||||||||
Unpaid principal balance | 27,700,000 | 27,700,000 | 26,800,000 | |||||||||||||||||
Number of agreements | agreement | 5 | |||||||||||||||||||
Debt interest increase (as a percentage) | 1.00% | |||||||||||||||||||
PPA Company IIIa | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Repayments of debt | 4,031,000 | 3,041,000 | ||||||||||||||||||
PPA Company IIIa | Term loan | Term Loan due September 2028, Non-Recourse | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Long-term debt carrying value | $ 36,502,000 | $ 36,502,000 | $ 36,940,000 | |||||||||||||||||
Debt face amount | $ 46,800,000 | |||||||||||||||||||
Interest rate percentage | 7.50% | 7.50% | 7.50% | 7.50% | ||||||||||||||||
Unpaid principal balance | $ 40,937,000 | $ 40,937,000 | $ 41,927,000 | |||||||||||||||||
PPA Company IIIa | Term loan | Term Loan due September 2028, Non-Recourse | Affiliated entity | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Debt face amount | $ 45,000,000 | |||||||||||||||||||
Unpaid principal balance | 40,900,000 | 40,900,000 | 41,900,000 | |||||||||||||||||
Repayments of debt | 0 | 200,000 | 600,000 | 1,300,000 | ||||||||||||||||
Interest paid | $ 800,000 | $ 800,000 | $ 2,400,000 | $ 4,800,000 | ||||||||||||||||
Common stock warrants | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 33,333 | |||||||||||||||||||
Revaluation of warrants | $ 9,200,000 | $ 3,300,000 | ||||||||||||||||||
Common stock warrants | Affiliated entity | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Revaluation of warrants | $ 200,000 | |||||||||||||||||||
Common stock warrants | CPPIB | Affiliated entity | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 312,888 | |||||||||||||||||||
Maximum | Common stock warrants | J.P. Morgan | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 146,666 | |||||||||||||||||||
Maximum | Common stock warrants | J.P. Morgan | Affiliated entity | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 146,666 | |||||||||||||||||||
Maximum | Common stock warrants | CPPIB | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 166,222 | |||||||||||||||||||
Maximum | Common stock warrants | CPPIB | Affiliated entity | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of securities called by warrants (in shares) | shares | 166,222 | |||||||||||||||||||
Series G preferred | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Debt conversion, shares issued (in shares) | shares | 1,038,050 |
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