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Balance Sheet Components
 9 Months Ended
Sep. 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):
 September 30,
2020		December 31, 2019
Raw materials$77,936 $67,829 
Work-in-progress28,127 21,207 
Finished goods25,848 20,570 
$131,911 $109,606 
We held Energy Server product inventory at customer locations pending installation and acceptance of $20.0 million and $14.6 million as of September 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 recognized as deferred cost of revenues on the consolidated balance sheets. We recognized inventory provisions of $0.3 million and $0.9 million during the three months ended September 30, 2020 and 2019, respectively, and $2.2 million and $2.6 million during the nine months ended September 30, 2020 and 2019, respectively.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
 September 30,
2020		December 31, 2019
   
Government incentives receivable$762 $893 
Prepaid maintenance3,780 3,763 
Receivables from employees5,413 6,130 
Other prepaid expenses and other current assets20,285 17,282 
$30,240 $28,068 
Property, Plant and Equipment, Net
Property, plant and equipment, net, consisted of the following (in thousands):
 September 30,
2020		December 31, 2019
   
Energy Servers$657,418 $650,600 
Computers, software and hardware21,278 20,275 
Machinery and equipment105,652 101,650 
Furniture and fixtures8,334 8,339 
Leasehold improvements37,497 35,694 
Building46,686 40,512 
Construction in progress22,935 12,611 
899,800 869,681 
Less: Accumulated depreciation(297,871)(262,622)
$601,929 $607,059 
Construction in progress increased $10.3 million from December 31, 2019, primarily due to an increase of $14.1 million of Energy Servers under our Managed Services sale-leaseback program pending acceptance, partially offset by $3.8 million primarily due to the completion of our Delaware plant expansion.
Property, plant and equipment, net, under operating leases by the PPA Entities was $368.0 million and $371.4 million as of September 30, 2020 and December 31, 2019, respectively. The accumulated depreciation for these assets was $110.1 million and $95.5 million as of September 30, 2020 and December 31, 2019, respectively.
Our depreciation expense includes expense related to property, plant and equipment, plus depreciation expense related to assets held under operating leases held by us and our PPA entities. Depreciation expense related to assets under operating leases was $9.3 million and $9.5 million for the three months ended September 30, 2020 and 2019, respectively, and $28.0 million and $28.3 million for the nine months ended September 30, 2020 and 2019, respectively. Depreciation expense related to property, plant and equipment, net, was $3.7 million and $3.5 million for the three months ended September 30, 2020 and 2019, respectively, and $10.9 million and $10.1 million for the nine months ended September 30, 2020 and 2019, respectively. Additionally, we recorded decommissioning charges related to the PPA II transaction of $14.6 million and $25.6 million in cost of product revenue in the three and nine months ended September 30, 2019, respectively.
Customer Financing Receivable
The components of investment in sales-type financing leases consisted of the following (in thousands):
 September 30,
2020		December 31, 2019
Total minimum lease payments to be received$71,020 $76,886 
Less: Amounts representing estimated executory costs(18,164)(19,931)
Net present value of minimum lease payments to be received52,856 56,955 
Estimated residual value of leased assets890 890 
Less: Unearned income(1,680)(1,990)
Net investment in sales-type financing leases52,066 55,855 
Less: Current portion(5,341)(5,108)
Non-current portion of investment in sales-type financing leases$46,725 $50,747 
The future scheduled customer payments from sales-type financing leases were as follows as of September 30, 2020 (in thousands):
 Remainder of 20202021202220232024Thereafter
Future minimum lease payments, less interest$1,319 $5,428 $5,784 $6,155 $6,567 $25,923 
Other Long-Term Assets
Other long-term assets consisted of the following (in thousands):
 September 30,
2020		December 31, 2019
   
Prepaid and other long-term assets$30,173 $29,153 
Deferred commissions6,524 5,007 
Equity-method investments2,040 5,733 
Long-term deposits1,895 1,759 
$40,632 $41,652 
Accrued Warranty
Accrued warranty liabilities consisted of the following (in thousands):
 September 30,
2020		December 31, 2019
   
Product warranty$2,951 $2,345 
Product performance6,749 7,535 
Maintenance services contracts107 453 
$9,807 $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 6,049 
Warranty expenditures during period (6,230)
Balances at September 30, 2020$9,700 
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
 September 30,
2020		December 31, 2019
   
Compensation and benefits$18,908 $17,173 
Current portion of derivative liabilities4,949 4,834 
Sales related liabilities521 416 
Accrued installation13,212 10,348 
Sales tax liabilities1,880 3,849 
Interest payable2,841 3,875 
Accrued payables25,035 18,650 
Other10,536 11,139 
$77,882 $70,284 
Other Long-Term Liabilities
Other long-term liabilities consisted of the following (in thousands):
 September 30,
2020		December 31, 2019
Delaware grant$9,212 $10,469 
Other17,406 17,544 
$26,618 $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 September 30, 2020, we have recorded $1.3 million in current liabilities and $9.2 million in other long-term liabilities for potential repayments. See Note 14, Commitments and Contingencies for a full description of the grant.