Balance Sheet Components

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Balance Sheet Components

Inventories

The components of inventory consist of the following (in thousands):

	March 31,		December 31,
	2021		2020
Raw materials	$	78,113	$	79,090
Work-in-progress	33,333		29,063
Finished goods	41,726		33,906
	$	153,172	$	142,059

The inventory reserves were $14.1 million and $14.0 million as of March 31, 2021 and December 31, 2020, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):

	March 31,		December 31,
	2021		2020
Government incentives receivable	$	479	$	479
Prepaid hardware and software maintenance	5,304		5,227
Receivables from employees	5,251		5,160
Other prepaid expenses and other current assets	15,775		19,852
	$	26,809	$	30,718

Property, Plant and Equipment, Net

Property, plant and equipment, net, consists of the following (in thousands):

	March 31,		December 31,
	2021		2020
Energy Servers	$	672,667	$	669,422
Computers, software and hardware	20,206		20,432
Machinery and equipment	109,177		106,644
Furniture and fixtures	8,495		8,455
Leasehold improvements	38,019		37,497
Building	46,730		46,730
Construction in progress	27,325		21,118
	922,619		910,298
Less: accumulated depreciation	(323,182)		(309,670)
	$	599,437	$	600,628

Depreciation expense related to property, plant and equipment, net, was $13.4 million and $13.0 million for the three months ended March 31, 2021 and 2020, respectively.

Property, plant and equipment under operating leases by the PPA Entities was $368.0 million and $368.0 million as of March 31, 2021 and December 31, 2020, respectively. The accumulated depreciation for these assets was $121.7 million and $115.9 million as of March 31, 2021 and December 31, 2020, respectively. Depreciation expense for these assets was $5.8 million and $6.2 million for the three months ended March 31, 2021 and 2020, respectively.

Depreciation expense is included in cost of product, installation, service and electricity revenue as well as research and development, sales and marketing and general and administration expenses in our condensed consolidated statements of operations.

Other Long-Term Assets

Other long-term assets consist of the following (in thousands):

	March 31,		December 31,
	2021		2020
Prepaid and other long-term assets	$	24,834	$	24,116
Deferred commissions	6,744		6,732
Equity-method investments	1,880		1,954
Long-term deposits	1,741		1,709
	$	35,199	$	34,511

Accrued Warranty

Accrued warranty liabilities consist of the following (in thousands):

	March 31,		December 31,
	2021		2020
Product warranty	$	1,469	$	1,549
Product performance	4,347		8,605
Maintenance services contracts	142		109
	$	5,958	$	10,263

Changes in the product warranty and product performance liabilities were as follows (in thousands):

Balances at December 31, 2019	$	9,881
Accrued warranty, net	5,944
Warranty expenditures during the year	(5,671)
Balances at December 31, 2020	10,154
Accrued warranty, net	(3,224)
Warranty expenditures during the year-to-date period	(1,114)
Balances at March 31, 2021	$	5,816

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

	March 31,		December 31,
	2021		2020
Compensation and benefits	$	23,401	$	28,343
Current portion of derivative liabilities	13,395		19,116
Sales-related liabilities	5,902		14,479
Accrued installation	8,717		16,468
Sales tax liabilities	2,302		2,732
Interest payable	719		2,224
Other	27,697		28,642
	$	82,133	$	112,004

Other Long-Term Liabilities

Other long-term liabilities consist of the following (in thousands):

	March 31,		December 31,
	2021		2020
Delaware grant	$	9,212	$	9,212
Other	10,655		8,056
	$	19,867	$	17,268

We have recorded a long-term liability for the potential future repayment of the incentive grant received from the Delaware Economic Development Authority of $9.2 million as of March 31, 2021 and December 31, 2020. See Note 13 - Commitments and Contingencies for a full description of the grant.