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Balance Sheet Components
 6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components
Inventories
The components of inventory consisted of the following (in thousands):
 June 30,
2020		December 31, 2019
Raw materials$70,555  $67,829  
Work-in-progress25,075  21,207  
Finished goods16,849  20,570  
$112,479  $109,606  
The inventory reserves were $14.0 million and $14.6 million as of June 30, 2020 and December 31, 2019, respectively. In addition, we held Energy Server product inventory at customer locations pending installation and acceptance of $24.0 million and $14.6 million as of June 30, 2020 and December 31, 2019, respectively. As this Energy Server inventory was shipped to customer locations as a result of a signed sales contract, but where title has not transferred until acceptance occurs, these balances are recorded as deferred cost of revenues on the consolidated balance sheets.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
 June 30,
2020		December 31, 2019
   
Government incentives receivable$832  $893  
Prepaid maintenance3,158  3,763  
Receivables from employees6,089  6,130  
Other prepaid expenses and other current assets10,668  17,282  
$20,747  $28,068  
Property, Plant and Equipment, Net
Property, plant and equipment, net consisted of the following (in thousands):
 June 30,
2020		December 31, 2019
   
Energy Servers$648,273  $650,600  
Computers, software and hardware20,884  20,275  
Machinery and equipment103,892  101,650  
Furniture and fixtures8,313  8,339  
Leasehold improvements35,784  35,694  
Building46,686  40,512  
Construction in progress22,633  12,611  
886,465  869,681  
Less: Accumulated depreciation(284,899) (262,622) 
$601,566  $607,059  
Construction in progress increased $10.0 million from 2019, primarily due to an increase of $13.5 million of Energy Servers under our Managed Services sale-leaseback program pending acceptance, partially offset by $3.5 million primarily due to completion of Delaware plant expansion.
Depreciation expense related to property, plant and equipment was $12.8 million and $22.5 million for the three months ended June 30, 2020 and 2019, respectively. Depreciation expense related to property, plant and equipment was $25.9 million and $36.4 million for the six months ended June 30, 2020 and 2019, respectively.
Property, plant and equipment under operating leases by the PPA Entities was $368.0 million and $371.4 million as of June 30, 2020 and December 31, 2019, respectively. The accumulated depreciation for these assets was $104.2 million and $95.5 million as of June 30, 2020 and December 31, 2019, respectively. Depreciation expense related to our property, plant and equipment under operating leases by the PPA Entities was $5.9 million and $6.4 million for the three months ended June 30, 2020 and 2019, respectively. Depreciation expense related to our property, plant and equipment under operating leases by the PPA Entities was $12.1 million and $12.7 million for the six months ended June 30, 2020 and 2019, respectively.
Customer Financing Receivable
The components of investment in sales-type financing leases consisted of the following (in thousands):
 June 30,
2020		December 31, 2019
Total minimum lease payments to be received$73,015  $76,886  
Less: Amounts representing estimated executory costs(18,759) (19,931) 
Net present value of minimum lease payments to be received54,256  56,955  
Estimated residual value of leased assets890  890  
Less: Unearned income(1,781) (1,990) 
Net investment in sales-type financing leases53,365  55,855  
Less: Current portion(5,254) (5,108) 
Non-current portion of investment in sales-type financing leases$48,111  $50,747  
The future scheduled customer payments from sales-type financing leases were as follows as of June 30, 2020 (in thousands):
 Remainder of 20202021202220232024Thereafter
Future minimum lease payments, less interest$2,618  $5,428  $5,784  $6,155  $6,567  $25,923  
Other Long-Term Assets
Other long-term assets consisted of the following (in thousands):
 June 30,
2020		December 31, 2019
   
Prepaid and other long-term assets$30,862  $29,153  
Deferred commissions6,143  5,007  
Equity-method investments2,119  5,733  
Long-term deposits1,865  1,759  
$40,989  $41,652  
Accrued Warranty
Accrued warranty liabilities consisted of the following (in thousands):
 June 30,
2020		December 31, 2019
   
Product warranty$3,156  $2,345  
Product performance6,275  7,535  
Maintenance services contracts744  453  
$10,175  $10,333  
Changes in the product warranty and product performance liabilities were as follows (in thousands):
Balances at December 31, 2019$9,881  
Accrued warranty, net 4,164  
Warranty expenditures during period (4,614) 
Balances at June 30, 2020$9,431  
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
 June 30,
2020		December 31, 2019
   
Compensation and benefits$22,678  $17,173  
Current portion of derivative liabilities6,265  4,834  
Sales related liabilities393  416  
Accrued installation12,185  10,348  
Sales tax liabilities3,190  3,849  
Interest payable5,664  3,875  
Accrued payables26,640  18,650  
Other11,037  11,139  
$88,052  $70,284  
Other Long-Term Liabilities
Other long-term liabilities consisted of the following (in thousands):
 June 30,
2020		December 31, 2019
Delaware grant$10,469  $10,469  
Other16,807  17,544  
$27,276  $28,013  
In March 2012, we entered into an agreement with the Delaware Economic Development Authority to provide a grant of $16.5 million to us 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. We have received $12.0 million of the grant which is contingent upon us 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. We paid $1.5 million in 2017 for recapture provisions, and no additional amounts have been paid. As of June 30, 2020, we have recorded $10.5 million in other long-term liabilities for potential repayments. See Note 14, Commitments and Contingencies for a full description of the grant.