UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
|
☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2018
OR
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☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number: 001-34756
Tesla, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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91-2197729 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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3500 Deer Creek Road Palo Alto, California |
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94304 |
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(Address of principal executive offices) |
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(Zip Code) |
(650) 681-5000
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (“Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act:
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Large accelerated filer |
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☒ |
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Accelerated filer |
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☐ |
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Non-accelerated filer |
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☐ |
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(Do not check if a smaller reporting company) |
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Smaller reporting company |
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☐ |
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Emerging growth company |
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☐ |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of July 27, 2018, there were 170,593,144 shares of the registrant’s common stock outstanding.
FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2018
INDEX
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Page |
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PART I. |
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Item 1. |
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4 |
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4 |
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5 |
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6 |
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7 |
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8 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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33 |
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Item 3. |
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44 |
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Item 4. |
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44 |
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PART II. |
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Item 1. |
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45 |
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Item 1A. |
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46 |
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Item 2. |
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62 |
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Item 3. |
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62 |
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Item 4. |
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62 |
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Item 5. |
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62 |
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Item 6. |
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62 |
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64 |
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The discussions in this Quarterly Report on Form 10-Q contain forward-looking statements reflecting our current expectations that involve risks and uncertainties. These forward-looking statements include, but are not limited to, statements concerning our strategy, future operations, future financial position, future revenues, projected costs, profitability, expected cost reductions, capital adequacy, expectations regarding demand and acceptance for our technologies, growth opportunities and trends in the market in which we operate, prospects and plans and objectives of management. The words “anticipates”, “believes”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”, “projects”, “will”, “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including, without limitation, the risks set forth in Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We do not assume any obligation to update any forward-looking statements.
Tesla, Inc.
(in thousands, except for par values)
(unaudited)
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|
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June 30, |
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December 31, |
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||
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2018 |
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2017 |
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Assets |
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|
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|
|
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Current assets |
|
|
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Cash and cash equivalents |
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$ |
2,236,424 |
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$ |
3,367,914 |
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Restricted cash |
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|
146,822 |
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|
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155,323 |
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Accounts receivable, net |
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569,874 |
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|
|
515,381 |
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Inventory |
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|
3,324,643 |
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2,263,537 |
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Prepaid expenses and other current assets |
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422,034 |
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|
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268,365 |
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Total current assets |
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6,699,797 |
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|
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6,570,520 |
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Operating lease vehicles, net |
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|
2,282,047 |
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4,116,604 |
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Solar energy systems, leased and to be leased, net |
|
|
6,340,031 |
|
|
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6,347,490 |
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Property, plant and equipment, net |
|
|
10,969,348 |
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|
|
10,027,522 |
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Intangible assets, net |
|
|
300,406 |
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|
|
361,502 |
|
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Goodwill |
|
|
64,284 |
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|
|
60,237 |
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MyPower customer notes receivable, net of current portion |
|
|
434,841 |
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|
|
456,652 |
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Restricted cash, net of current portion |
|
|
399,992 |
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|
|
441,722 |
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Other assets |
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|
419,254 |
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|
|
273,123 |
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Total assets |
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$ |
27,910,000 |
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$ |
28,655,372 |
|
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Liabilities |
|
|
|
|
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Current liabilities |
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|
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Accounts payable |
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$ |
3,030,493 |
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$ |
2,390,250 |
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Accrued liabilities and other |
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1,814,979 |
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1,731,366 |
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Deferred revenue |
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576,321 |
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1,015,253 |
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Resale value guarantees |
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674,255 |
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787,333 |
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Customer deposits |
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942,129 |
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853,919 |
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Current portion of long-term debt and capital leases |
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2,020,685 |
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796,549 |
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Current portion of promissory notes issued to related parties |
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82,500 |
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100,000 |
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Total current liabilities |
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9,141,362 |
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7,674,670 |
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Long-term debt and capital leases, net of current portion |
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9,510,696 |
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9,415,700 |
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Solar bonds issued to related parties, net of current portion |
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100 |
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100 |
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Convertible senior notes issued to related parties |
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2,594 |
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2,519 |
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Deferred revenue, net of current portion |
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795,820 |
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1,177,799 |
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Resale value guarantees, net of current portion |
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584,857 |
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2,309,222 |
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Other long-term liabilities |
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2,607,458 |
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2,442,970 |
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Total liabilities |
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22,642,887 |
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23,022,980 |
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Commitments and contingencies (Note 12) |
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Redeemable noncontrolling interests in subsidiaries |
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539,536 |
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397,734 |
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Convertible senior notes (Note 10) |
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— |
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70 |
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Equity |
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Stockholders' equity |
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Preferred stock; $0.001 par value; 100,000 shares authorized; no shares issued and outstanding |
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— |
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— |
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Common stock; $0.001 par value; 2,000,000 shares authorized; 170,516 and 168,797 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively |
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170 |
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169 |
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Additional paid-in capital |
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9,656,537 |
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9,178,024 |
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Accumulated other comprehensive gain |
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18,545 |
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33,348 |
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Accumulated deficit |
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(5,768,831 |
) |
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(4,974,299 |
) |
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Total stockholders' equity |
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3,906,421 |
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4,237,242 |
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Noncontrolling interests in subsidiaries |
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821,156 |
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|
997,346 |
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Total liabilities and equity |
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$ |
27,910,000 |
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$ |
28,655,372 |
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The accompanying notes are an integral part of these consolidated financial statements.
4
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2018 |
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2017 |
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2018 |
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2017 |
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Revenues |
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Automotive sales |
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$ |
3,117,865 |
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$ |
2,013,852 |
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$ |
5,679,746 |
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$ |
4,048,912 |
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Automotive leasing |
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|
239,816 |
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|
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272,764 |
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|
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413,252 |
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|
527,304 |
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Total automotive revenues |
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3,357,681 |
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2,286,616 |
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|
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6,092,998 |
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4,576,216 |
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Energy generation and storage |
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|
374,408 |
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|
|
286,780 |
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|
784,430 |
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|
500,724 |
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Services and other |
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270,142 |
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216,161 |
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533,554 |
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|
|
408,887 |
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Total revenues |
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4,002,231 |
|
|
|
2,789,557 |
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|
|
7,410,982 |
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|
|
5,485,827 |
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Cost of revenues |
|
|
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|
|
|
|
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|
|
|
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|
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Automotive sales |
|
|
2,529,739 |
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|
|
1,472,578 |
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|
|
4,621,136 |
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|
|
2,969,227 |
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Automotive leasing |
|
|
136,915 |
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|
|
175,433 |
|
|
|
241,411 |
|
|
|
341,459 |
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Total automotive cost of revenues |
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|
2,666,654 |
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|
|
1,648,011 |
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|
|
4,862,547 |
|
|
|
3,310,686 |
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Energy generation and storage |
|
|
330,273 |
|
|
|
203,762 |
|
|
|
705,636 |
|
|
|
355,535 |
|
|
Services and other |
|
|
386,374 |
|
|
|
271,169 |
|
|
|
767,343 |
|
|
|
485,045 |
|
|
Total cost of revenues |
|
|
3,383,301 |
|
|
|
2,122,942 |
|
|
|
6,335,526 |
|
|
|
4,151,266 |
|
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Gross profit |
|
|
618,930 |
|
|
|
666,615 |
|
|
|
1,075,456 |
|
|
|
1,334,561 |
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Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Research and development |
|
|
386,129 |
|
|
|
369,774 |
|
|
|
753,225 |
|
|
|
691,814 |
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|
Selling, general and administrative |
|
|
750,759 |
|
|
|
537,757 |
|
|
|
1,437,163 |
|
|
|
1,141,212 |
|
|
Restructuring and other |
|
|
103,434 |
|
|
|
— |
|
|
|
103,434 |
|
|
|
— |
|
|
Total operating expenses |
|
|
1,240,322 |
|
|
|
907,531 |
|
|
|
2,293,822 |
|
|
|
1,833,026 |
|
|
Loss from operations |
|
|
(621,392 |
) |
|
|
(240,916 |
) |
|
|
(1,218,366 |
) |
|
|
(498,465 |
) |
|
Interest income |
|
|
5,064 |
|
|
|
4,785 |
|
|
|
10,278 |
|
|
|
7,875 |
|
|
Interest expense |
|
|
(163,582 |
) |
|
|
(108,441 |
) |
|
|
(313,128 |
) |
|
|
(207,787 |
) |
|
Other (expense) income, net |
|
|
50,911 |
|
|
|
(41,208 |
) |
|
|
13,195 |
|
|
|
(59,306 |
) |
|
Loss before income taxes |
|
|
(728,999 |
) |
|
|
(385,780 |
) |
|
|
(1,508,021 |
) |
|
|
(757,683 |
) |
|
Provision for income taxes |
|
|
13,707 |
|
|
|
15,647 |
|
|
|
19,312 |
|
|
|
40,925 |
|
|
Net loss |
|
|
(742,706 |
) |
|
|
(401,427 |
) |
|
|
(1,527,333 |
) |
|
|
(798,608 |
) |
|
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries |
|
|
(25,167 |
) |
|
|
(65,030 |
) |
|
|
(100,243 |
) |
|
|
(131,934 |
) |
|
Net loss attributable to common stockholders |
|
$ |
(717,539 |
) |
|
$ |
(336,397 |
) |
|
$ |
(1,427,090 |
) |
|
$ |
(666,674 |
) |
|
Net loss per share of common stock attributable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(4.22 |
) |
|
$ |
(2.04 |
) |
|
$ |
(8.42 |
) |
|
$ |
(4.07 |
) |
|
Diluted |
|
$ |
(4.22 |
) |
|
$ |
(2.04 |
) |
|
$ |
(8.42 |
) |
|
$ |
(4.07 |
) |
|
Weighted average shares used in computing net loss per share of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
169,997 |
|
|
|
165,212 |
|
|
|
169,574 |
|
|
|
163,679 |
|
|
Diluted |
|
|
169,997 |
|
|
|
165,212 |
|
|
|
169,574 |
|
|
|
163,679 |
|
The accompanying notes are an integral part of these consolidated financial statements.
5
Consolidated Statements of Comprehensive Loss
(in thousands)
(unaudited)
|
|
|
Three Months Ended June 30, |
|
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Six Months Ended June 30, |
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|
|
2018 |
|
|
2017 |
|
|
2018 |
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|
2017 |
|
||||
|
Net loss attributable to common stockholders |
|
$ |
(717,539 |
) |
|
$ |
(336,397 |
) |
|
$ |
(1,427,090 |
) |
|
$ |
(666,674 |
) |
|
Unrealized gains (losses) on derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification adjustment for net losses into net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,570 |
) |
|
Foreign currency translation adjustment |
|
|
(64,376 |
) |
|
|
31,730 |
|
|
|
(14,803 |
) |
|
|
40,271 |
|
|
Other comprehensive (loss) income |
|
|
(64,376 |
) |
|
|
31,730 |
|
|
|
(14,803 |
) |
|
|
34,701 |
|
|
Comprehensive loss |
|
$ |
(781,915 |
) |
|
$ |
(304,667 |
) |
|
$ |
(1,441,893 |
) |
|
$ |
(631,973 |
) |
The accompanying notes are an integral part of these consolidated financial statements.
6
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
|
|
Six Months Ended June 30, |
|
|||||
|
|
|
2018 |
|
|
2017 |
|
||
|
Cash Flows from Operating Activities |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,527,333 |
) |
|
$ |
(798,608 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation, amortization and impairment |
|
|
901,488 |
|
|
|
765,773 |
|
|
Stock-based compensation |
|
|
338,983 |
|
|
|
219,759 |
|
|
Amortization of debt discounts and issuance costs |
|
|
74,419 |
|
|
|
67,405 |
|
|
Inventory write-downs |
|
|
46,098 |
|
|
|
71,255 |
|
|
Loss on disposals of fixed assets |
|
|
118,850 |
|
|
|
53,572 |
|
|
Foreign currency transaction losses |
|
|
6,185 |
|
|
|
29,394 |
|
|
Loss related to SolarCity acquisition |
|
|
— |
|
|
|
11,571 |
|
|
Non-cash interest and other operating activities |
|
|
5,685 |
|
|
|
53,769 |
|
|
Changes in operating assets and liabilities, net of effect of business combinations: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(98,509 |
) |
|
|
77,043 |
|
|
Inventories |
|
|
(1,055,556 |
) |
|
|
(393,702 |
) |
|
Operating lease vehicles |
|
|
(186,208 |
) |
|
|
(727,453 |
) |
|
Prepaid expenses and other current assets |
|
|
(95,194 |
) |
|
|
(113,192 |
) |
|
MyPower customer notes receivable and other assets |
|
|
(59,446 |
) |
|
|
26,339 |
|
|
Accounts payable and accrued liabilities |
|
|
909,720 |
|
|
|
13,234 |
|
|
Deferred revenue |
|
|
107,497 |
|
|
|
208,685 |
|
|
Customer deposits |
|
|
42,920 |
|
|
|
(71,064 |
) |
|
Resale value guarantee |
|
|
(39,563 |
) |
|
|
176,505 |
|
|
Other long-term liabilities |
|
|
(18,076 |
) |
|
|
59,732 |
|
|
Net cash used in operating activities |
|
|
(528,040 |
) |
|
|
(269,983 |
) |
|
Cash Flows from Investing Activities |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment excluding capital leases, net of sales |
|
|
(1,265,475 |
) |
|
|
(1,511,692 |
) |
|
Purchases of solar energy systems, leased and to be leased |
|
|
(140,375 |
) |
|
|
(418,792 |
) |
|
Business combinations, net of cash acquired |
|
|
(5,604 |
) |
|
|
(109,147 |
) |
|
Net cash used in investing activities |
|
|
(1,411,454 |
) |
|
|
(2,039,631 |
) |
|
Cash Flows from Financing Activities |
|
|
|
|
|
|
|
|
|
Proceeds from issuances of common stock in public offerings |
|
|
— |
|
|
|
400,175 |
|
|
Proceeds from issuances of convertible and other debt |
|
|
3,043,227 |
|
|
|
2,408,586 |
|
|
Repayments of convertible and other debt |
|
|
(2,268,716 |
) |
|
|
(1,412,286 |
) |
|
Repayments of borrowings under Solar Bonds issued to related parties |
|
|
(17,500 |
) |
|
|
(165,000 |
) |
|
Collateralized lease (repayments) borrowings |
|
|
(200,518 |
) |
|
|
335,675 |
|
|
Proceeds from exercises of stock options and other stock issuances |
|
|
125,071 |
|
|
|
158,913 |
|
|
Principal payments on capital leases |
|
|
(48,182 |
) |
|
|
(36,857 |
) |
|
Common stock and debt issuance costs |
|
|
(3,671 |
) |
|
|
(13,688 |
) |
|
Purchases of convertible note hedges |
|
|
— |
|
|
|
(204,102 |
) |
|
Proceeds from settlement of convertible note hedges |
|
|
— |
|
|
|
251,850 |
|
|
Proceeds from issuances of warrants |
|
|
— |
|
|
|
52,883 |
|
|
Payments for settlements of warrants |
|
|
— |
|
|
|
(208,193 |
) |
|
Proceeds from investments by noncontrolling interests in subsidiaries |
|
|
253,037 |
|
|
|
583,433 |
|
|
Distributions paid to noncontrolling interests in subsidiaries |
|
|
(109,545 |
) |
|
|
(123,873 |
) |
|
Payments for buy-outs of noncontrolling interests in subsidiaries |
|
|
(2,921 |
) |
|
|
— |
|
|
Net cash provided by financing activities |
|
|
770,282 |
|
|
|
2,027,516 |
|
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
|
(12,509 |
) |
|
|
27,936 |
|
|
Net (decrease) increase in cash and cash equivalents and restricted cash |
|
|
(1,181,721 |
) |
|
|
(254,162 |
) |
|
Cash and cash equivalents and restricted cash, beginning of period |
|
|
3,964,959 |
|
|
|
3,766,900 |
|
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
2,783,238 |
|
|
$ |
3,512,738 |
|
|
Supplemental Non-Cash Investing and Financing Activities |
|
|
|
|
|
|
|
|
|
Acquisitions of property and equipment included in liabilities |
|
$ |
335,048 |
|
|
$ |
1,021,692 |
|
|
Estimated fair value of facilities under build-to-suit leases |
|
$ |
61,709 |
|
|
$ |
173,075 |
|
The accompanying notes are an integral part of these consolidated financial statements.
7
Notes to Consolidated Financial Statements
(unaudited)
Note 1 – Overview
Tesla, Inc. (“Tesla”, the “Company”, “we”, “us” or “our”) was incorporated in the State of Delaware on July 1, 2003. We design, develop, manufacture and sell high-performance fully electric vehicles and design, manufacture, install and sell solar energy generation and energy storage products. Our Chief Executive Officer, as the chief operating decision maker (“CODM”), organizes the Company, manages resource allocations and measures performance among two operating and reportable segments: (i) automotive and (ii) energy generation and storage.
Note 2 – Summary of Significant Accounting Policies
Unaudited Interim Financial Statements
The consolidated balance sheet as of June 30, 2018, the consolidated statements of operations and the consolidated statements of comprehensive loss for the three and six months ended June 30, 2018 and 2017 and the consolidated statements of cash flows for the six months ended June 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 in our Annual Report on Form 10-K for the year ended December 31, 2017.
The interim consolidated financial statements and the accompanying notes have been prepared on the same basis as the annual consolidated financial statements 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. The consolidated results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interim periods.
Reclassifications
Certain prior period balances have been reclassified to conform to the current period presentation in the consolidated financial statements and the accompanying notes as a result of the adoption of the Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows: Restricted Cash.
Revenue Recognition
Adoption of new accounting standards
ASU 2014-09, Revenue - Revenue from Contracts with Customers. On January 1, 2018, we adopted the new accounting standard ASC 606, Revenue from Contracts with Customers and all the related amendments (“new revenue standard”) using the modified retrospective method. As a policy election, the new revenue standard was applied only to contracts that were not substantially completed as of the date of adoption. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the January 1, 2018 opening balance of accumulated deficit. The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods.
A majority of our automotive sales revenue is recognized when control transfers upon delivery to customers. For certain vehicle sales where revenue was previously deferred either as an in-substance operating lease, such as certain vehicle sales to customers or leasing partners with a resale value guarantee, we now recognize revenue when the vehicles are shipped as a sale with a right of return. As a result, the corresponding operating lease asset, deferred revenue, and resale value guarantee balances as of December 31, 2017, were reclassified to accumulated deficit as part of our adoption entry. Furthermore, the warranty liability related to such vehicles has been accrued as a result of the change from in-substance operating leases to vehicle sales. Prepayments on contracts that can be cancelled without significant penalties, such as vehicle maintenance plans, have been reclassified from deferred revenue to customer deposits. Refer to the Automotive Revenue and Automotive Leasing Revenue sections below for further discussion of the impact on various categories of vehicle sales.
8
Following the adoption of the new revenue standard, the revenue recognition for our other sales arrangements, including sales of solar energy systems, energy storage products, services, and sales of used vehicles, remained consistent with our historical revenue recognition policy. Under our lease pass-through fund arrangements, we do not have any further performance obligations and therefore reclassified all investment tax credit (“ITC”) deferred revenue as of December 31, 2017, to accumulated deficit as part of our adoption entry. The corresponding effects of the changes to lease pass-through fund arrangements are also reflected in our non-controlling interests in subsidiaries.
Accordingly, the cumulative effect of the changes made to our consolidated January 1, 2018 consolidated balance sheet for the adoption of the new revenue standard was as follows (in thousands):
|
|
|
Balances at December 31, 2017 |
|
|
Adjustments from Adoption of New Revenue Standard |
|
|
Balances at January 1, 2018 |
|
|||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory |
|
$ |
2,263,537 |
|
|
$ |
(27,009 |
) |
|
$ |
2,236,528 |
|
|
Prepaid expenses and other current assets |
|
|
268,365 |
|
|
|
51,735 |
|
|
|
320,100 |
|
|
Operating lease vehicles, net |
|
|
4,116,604 |
|
|
|
(1,808,932 |
) |
|
|
2,307,672 |
|
|
Other assets |
|
|
273,123 |
|
|
|
68,355 |
|
|
|
341,478 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued liabilities and other |
|
|
1,731,366 |
|
|
|
74,487 |
|
|
|
1,805,853 |
|
|
Deferred revenue |
|
|
1,015,253 |
|
|
|
(436,737 |
) |
|
|
578,516 |
|
|
Resale value guarantees |
|
|
787,333 |
|
|
|
(295,909 |
) |
|
|
491,424 |
|
|
Customer deposits |
|
|
853,919 |
|
|
|
56,081 |
|
|
|
910,000 |
|
|
Deferred revenue, net of current portion |
|
|
1,177,799 |
|
|
|
(429,771 |
) |
|
|
748,028 |
|
|
Resale value guarantees, net of current portion |
|
|
2,309,222 |
|
|
|
(1,346,179 |
) |
|
|
963,043 |
|
|
Other long-term liabilities |
|
|
2,442,970 |
|
|
|
104,767 |
|
|
|
2,547,737 |
|
|
Redeemable noncontrolling interests in subsidiaries |
|
|
397,734 |
|
|
|
8,101 |
|
|
|
405,835 |
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive gain |
|
|
33,348 |
|
|
|
15,221 |
|
|
|
48,569 |
|
|
Accumulated deficit |
|
|
(4,974,299 |
) |
|
|
623,172 |
|
|
|
(4,351,127 |
) |
|
Noncontrolling interests in subsidiaries |
|
|
997,346 |
|
|
|
(89,084 |
) |
|
|
908,262 |
|
9
In accordance with the new revenue standard requirements, the impact of adoption on our consolidated balance sheet was as follows (in thousands):
|
|
|
June 30, 2018 |
|
|||||||||
|
|
|
As Reported |
|
|
Balances Without Adoption of New Revenue Standard |
|
|
Effect of Change Higher / (Lower) |
|
|||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory |
|
$ |
3,324,643 |
|
|
$ |
3,357,531 |
|
|
$ |
(32,888 |
) |
|
Prepaid expenses and other current assets |
|
|
422,034 |
|
|
|
364,476 |
|
|
|
57,558 |
|
|
Operating lease vehicles, net |
|
|
2,282,047 |
|
|
|
4,228,216 |
|
|
|
(1,946,169 |
) |
|
Other assets |
|
|
419,254 |
|
|
|
352,000 |
|
|
|
67,254 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued liabilities and other |
|
|
1,814,979 |
|
|
|
1,743,824 |
|
|
|
71,155 |
|
|
Deferred revenue |
|
|
576,321 |
|
|
|
1,022,041 |
|
|
|
(445,720 |
) |
|
Resale value guarantees |
|
|
674,255 |
|
|
|
1,030,975 |
|
|
|
(356,720 |
) |
|
Customer deposits |
|
|
942,129 |
|
|
|
883,611 |
|
|
|
58,518 |
|
|
Deferred revenue, net of current portion |
|
|
795,820 |
|
|
|
1,243,506 |
|
|
|
(447,686 |
) |
|
Resale value guarantees, net of current portion |
|
|
584,857 |
|
|
|
2,061,508 |
|
|
|
(1,476,651 |
) |
|
Other long-term liabilities |
|
|
2,607,458 |
|
|
|
2,496,748 |
|
|
|
110,710 |
|
|
Redeemable noncontrolling interests in subsidiaries |
|
|
539,536 |
|
|
|
532,321 |
|
|
|
7,215 |
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive gain |
|
|
18,545 |
|
|
|
18,843 |
|
|
|
(298 |
) |
|
Accumulated deficit |
|
|
(5,768,831 |
) |
|
|
(6,477,890 |
) |
|
|
709,059 |
|
|
Noncontrolling interests in subsidiaries |
|
|
821,156 |
|
|
|
904,983 |
|
|
|
(83,827 |
) |
In accordance with the new revenue standard requirements, the impact of adoption on our consolidated statement of operations and consolidated statement of comprehensive loss was as follows (in thousands):
|
|
|
Three Months Ended June 30, 2018 |
|
|
Six Months Ended June 30, 2018 |
|
||||||||||||||||||
|
|
|
As Reported |
|
|
Balances Without Adoption of New Revenue Standard |
|
|
Effect of Change Higher / (Lower) |
|
|
As Reported |
|
|
Balances Without Adoption of New Revenue Standard |
|
|
Effect of Change Higher / (Lower) |
|
||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive sales |
|
$ |
3,117,865 |
|
|
$ |
2,752,249 |
|
|
$ |
365,616 |
|
|
$ |
5,679,746 |
|
|
$ |
5,015,092 |
|
|
$ |
664,654 |
|
|
Automotive leasing |
|
|
239,816 |
|
|
|
429,027 |
|
|
|
(189,211 |
) |
|
|
413,252 |
|
|
|
767,402 |
|
|
|
(354,150 |
) |
|
Energy generation and storage |
|
|
374,408 |
|
|
|
388,695 |
|
|
|
(14,287 |
) |
|
|
784,430 |
|
|
|
802,160 |
|
|
|
(17,730 |
) |
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive sales |
|
|
2,529,739 |
|
|
|
2,280,012 |
|
|
|
249,727 |
|
|
|
4,621,136 |
|
|
|
4,155,284 |
|
|
|
465,852 |
|
|
Automotive leasing |
|
|
136,915 |
|
|
|
278,133 |
|
|
|
(141,218 |
) |
|
|
241,411 |
|
|
|
503,714 |
|
|
|
(262,303 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
13,707 |
|
|
|
14,013 |
|
|
|
(306 |
) |
|
|
19,312 |
|
|
|
20,345 |
|
|
|
(1,033 |
) |
|
Net loss |
|
|
(742,706 |
) |
|
|
(796,621 |
) |
|
|
53,915 |
|
|
|
(1,527,333 |
) |
|
|
(1,617,591 |
) |
|
|
90,258 |
|
|
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries |
|
|
(25,167 |
) |
|
|
||||||||||||||||||