tsla-10q_20180630.htm

 

 

 

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

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)

 

Delaware

 

91-2197729

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

3500 Deer Creek Road

Palo Alto, California

 

94304

(Address of principal executive offices)

 

(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:

 

Large accelerated filer

 

 

 

 

Accelerated filer

 

 

 

 

 

 

 

 

 

 

Non-accelerated filer

 

 

(Do not check if a smaller reporting company)

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

 

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.

 

 

 

 


 

TESLA, INC.

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2018

INDEX

 

 

 

 

 

Page

PART I.

 

FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Financial Statements (Unaudited)

 

4

 

 

Consolidated Balance Sheets

 

4

 

 

Consolidated Statements of Operations

 

5

 

 

Consolidated Statements of Comprehensive Loss

 

6

 

 

Consolidated Statements of Cash Flows

 

7

 

 

Notes to Consolidated Financial Statements

 

8

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

33

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

44

Item 4.

 

Controls and Procedures

 

44

 

 

 

 

 

PART II.

 

OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

45

Item 1A.

 

Risk Factors

 

46

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

62

Item 3.

 

Defaults Upon Senior Securities

 

62

Item 4.

 

Mine Safety Disclosures

 

62

Item 5.

 

Other Information

 

62

Item 6.

 

Exhibits

 

62

 

 

 

 

 

SIGNATURES

 

64

 

 

 


 

Forward-Looking Statements

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.

 

 

 


 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Tesla, Inc.

Consolidated Balance Sheets

(in thousands, except for par values)

(unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,236,424

 

 

$

3,367,914

 

Restricted cash

 

 

146,822

 

 

 

155,323

 

Accounts receivable, net

 

 

569,874

 

 

 

515,381

 

Inventory

 

 

3,324,643

 

 

 

2,263,537

 

Prepaid expenses and other current assets

 

 

422,034

 

 

 

268,365

 

Total current assets

 

 

6,699,797

 

 

 

6,570,520

 

Operating lease vehicles, net

 

 

2,282,047

 

 

 

4,116,604

 

Solar energy systems, leased and to be leased, net

 

 

6,340,031

 

 

 

6,347,490

 

Property, plant and equipment, net

 

 

10,969,348

 

 

 

10,027,522

 

Intangible assets, net

 

 

300,406

 

 

 

361,502

 

Goodwill

 

 

64,284

 

 

 

60,237

 

MyPower customer notes receivable, net of current portion

 

 

434,841

 

 

 

456,652

 

Restricted cash, net of current portion

 

 

399,992

 

 

 

441,722

 

Other assets

 

 

419,254

 

 

 

273,123

 

Total assets

 

$

27,910,000

 

 

$

28,655,372

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,030,493

 

 

$

2,390,250

 

Accrued liabilities and other

 

 

1,814,979

 

 

 

1,731,366

 

Deferred revenue

 

 

576,321

 

 

 

1,015,253

 

Resale value guarantees

 

 

674,255

 

 

 

787,333

 

Customer deposits

 

 

942,129

 

 

 

853,919

 

Current portion of long-term debt and capital leases

 

 

2,020,685

 

 

 

796,549

 

Current portion of promissory notes issued to related parties

 

 

82,500

 

 

 

100,000

 

Total current liabilities

 

 

9,141,362

 

 

 

7,674,670

 

Long-term debt and capital leases, net of current portion

 

 

9,510,696

 

 

 

9,415,700

 

Solar bonds issued to related parties, net of current portion

 

 

100

 

 

 

100

 

Convertible senior notes issued to related parties

 

 

2,594

 

 

 

2,519

 

Deferred revenue, net of current portion

 

 

795,820

 

 

 

1,177,799

 

Resale value guarantees, net of current portion

 

 

584,857

 

 

 

2,309,222

 

Other long-term liabilities

 

 

2,607,458

 

 

 

2,442,970

 

Total liabilities

 

 

22,642,887

 

 

 

23,022,980

 

Commitments and contingencies (Note 12)

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests in subsidiaries

 

 

539,536

 

 

 

397,734

 

Convertible senior notes (Note 10)

 

 

 

 

 

70

 

Equity

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Preferred stock; $0.001 par value; 100,000 shares authorized; no shares issued and outstanding

 

 

 

 

 

 

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

 

 

170

 

 

 

169

 

Additional paid-in capital

 

 

9,656,537

 

 

 

9,178,024

 

Accumulated other comprehensive gain

 

 

18,545

 

 

 

33,348

 

Accumulated deficit

 

 

(5,768,831

)

 

 

(4,974,299

)

Total stockholders' equity

 

 

3,906,421

 

 

 

4,237,242

 

Noncontrolling interests in subsidiaries

 

 

821,156

 

 

 

997,346

 

Total liabilities and equity

 

$

27,910,000

 

 

$

28,655,372

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

4


 

Tesla, Inc.

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive sales

 

$

3,117,865

 

 

$

2,013,852

 

 

$

5,679,746

 

 

$

4,048,912

 

Automotive leasing

 

 

239,816

 

 

 

272,764

 

 

 

413,252

 

 

 

527,304

 

Total automotive revenues

 

 

3,357,681

 

 

 

2,286,616

 

 

 

6,092,998

 

 

 

4,576,216

 

Energy generation and storage

 

 

374,408

 

 

 

286,780

 

 

 

784,430

 

 

 

500,724

 

Services and other

 

 

270,142

 

 

 

216,161

 

 

 

533,554

 

 

 

408,887

 

Total revenues

 

 

4,002,231

 

 

 

2,789,557

 

 

 

7,410,982

 

 

 

5,485,827

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive sales

 

 

2,529,739

 

 

 

1,472,578

 

 

 

4,621,136

 

 

 

2,969,227

 

Automotive leasing

 

 

136,915

 

 

 

175,433

 

 

 

241,411

 

 

 

341,459

 

Total automotive cost of revenues

 

 

2,666,654

 

 

 

1,648,011

 

 

 

4,862,547

 

 

 

3,310,686

 

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

 

Gross profit

 

 

618,930

 

 

 

666,615

 

 

 

1,075,456

 

 

 

1,334,561

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

386,129

 

 

 

369,774

 

 

 

753,225

 

 

 

691,814

 

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


 

Tesla, Inc.

Consolidated Statements of Comprehensive Loss

(in thousands)

(unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

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


 

Tesla, Inc.

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


 

Tesla, Inc.

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.

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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

 

 

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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