Balance Sheet Components

9 Months Ended

Sep. 30, 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):

	September 30,		December 31,
	2021		2020
Raw materials	$	94,051	$	79,090
Work-in-progress	40,822		29,063
Finished goods	47,682		33,906
	$	182,555	$	142,059

The inventory reserves were $14.5 million and $14.0 million as of September 30, 2021 and December 31, 2020, respectively.

Prepaid Expenses and Other Current Assets

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

	September 30,		December 31,
	2021		2020
Prepaid hardware and software maintenance	$	4,034	$	5,227
Receivables from employees	5,184		5,160
Other prepaid expenses and other current assets	22,728		20,331
	$	31,946	$	30,718

Property, Plant and Equipment, Net

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

	September 30,		December 31,
	2021		2020
Energy Servers	$	675,083	$	669,422
Computers, software and hardware	21,105		20,432
Machinery and equipment	112,634		106,644
Furniture and fixtures	8,531		8,455
Leasehold improvements	38,156		37,497
Building	46,730		46,730
Construction-in-progress	62,906		21,118
	965,145		910,298
Less: accumulated depreciation	(349,631)		(309,670)
	$	615,514	$	600,628

Depreciation expense related to property, plant and equipment was $13.3 million and $13.0 million for the three months ended September 30, 2021 and 2020, respectively. Depreciation expense related to property, plant and equipment was $40.1 million and $38.9 million for the nine months ended September 30, 2021 and 2020, respectively.

Property, plant and equipment under operating leases by the PPA Entities was $368.0 million and $368.0 million and accumulated depreciation for these assets was $133.5 million and $115.9 million as of September 30, 2021 and December 31, 2020, respectively. Depreciation expense for these assets was $5.9 million and $5.9 million for the three months ended September 30, 2021 and 2020, respectively. Depreciation expense for these assets was $17.6 million and $18.0 million for the nine months ended September 30, 2021 and 2020, respectively.

Other Long-Term Assets

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

	September 30,		December 31,
	2021		2020
Prepaid insurance	$	10,112	$	11,792
Deferred commissions	7,039		6,732
Long-term lease receivable	7,797		6,995
Goodwill	1,719		—
Prepaid and other long-term assets	11,926		8,992
	$	38,593	$	34,511

Accrued Warranty

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

	September 30,		December 31,
	2021		2020
Product warranty	$	1,107	$	1,549
Product performance	6,800		8,605
Maintenance services contracts	—		109
	$	7,907	$	10,263

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

Balances at December 31, 2020	$	10,154
Accrued warranty, net	6,682
Warranty expenditures during the year-to-date period	(8,929)
Balances at September 30, 2021	$	7,907

Accrued Expenses and Other Current Liabilities

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

	September 30,		December 31,
	2021		2020
Compensation and benefits	$	24,393	$	28,343
Current portion of derivative liabilities	12,415		19,116
Sales-related liabilities	6,232		14,479
Accrued installation	8,854		16,468
Sales tax liabilities	1,304		2,732
Interest payable	719		2,224
Other	31,960		28,642
	$	85,877	$	112,004

Other Long-Term Liabilities

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

	September 30,		December 31,
	2021		2020
Delaware grant	$	9,495	$	9,212
Other	17,260		8,056
	$	26,755	$	17,268

We recorded a long-term liability for the potential future repayment of the incentive grant received from the Delaware Economic Development Authority of $9.5 million and $9.2 million as of September 30, 2021 and December 31, 2020, respectively. See Note 13 - Commitments and Contingencies for a full description of the grant.