tsla-10q_20180930.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 September 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 every Interactive Data File required to be submitted 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 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

 

 

 

 

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 October 26, 2018, there were 171,732,775 shares of the registrant’s common stock outstanding.

 

 

 

 


 

TESLA, INC.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 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 Income (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

 

36

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

49

Item 4.

 

Controls and Procedures

 

49

 

 

 

 

 

PART II.

 

OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

50

Item 1A.

 

Risk Factors

 

52

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

70

Item 3.

 

Defaults Upon Senior Securities

 

70

Item 4.

 

Mine Safety Disclosures

 

70

Item 5.

 

Other Information

 

70

Item 6.

 

Exhibits

 

70

 

 

 

 

 

SIGNATURES

 

72

 

 

 


 

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)

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,967,504

 

 

$

3,367,914

 

Restricted cash

 

 

158,627

 

 

 

155,323

 

Accounts receivable, net

 

 

1,155,001

 

 

 

515,381

 

Inventory

 

 

3,314,127

 

 

 

2,263,537

 

Prepaid expenses and other current assets

 

 

325,232

 

 

 

268,365

 

Total current assets

 

 

7,920,491

 

 

 

6,570,520

 

Operating lease vehicles, net

 

 

2,186,137

 

 

 

4,116,604

 

Solar energy systems, leased and to be leased, net

 

 

6,301,537

 

 

 

6,347,490

 

Property, plant and equipment, net

 

 

11,246,295

 

 

 

10,027,522

 

Intangible assets, net

 

 

291,476

 

 

 

361,502

 

Goodwill

 

 

65,226

 

 

 

60,237

 

MyPower customer notes receivable, net of current portion

 

 

422,897

 

 

 

456,652

 

Restricted cash, net of current portion

 

 

396,835

 

 

 

441,722

 

Other assets

 

 

431,819

 

 

 

273,123

 

Total assets

 

$

29,262,713

 

 

$

28,655,372

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,596,984

 

 

$

2,390,250

 

Accrued liabilities and other

 

 

1,990,095

 

 

 

1,731,366

 

Deferred revenue

 

 

570,920

 

 

 

1,015,253

 

Resale value guarantees

 

 

604,949

 

 

 

787,333

 

Customer deposits

 

 

905,838

 

 

 

853,919

 

Current portion of long-term debt and capital leases

 

 

2,106,538

 

 

 

796,549

 

Current portion of promissory notes issued to related parties

 

 

 

 

 

100,000

 

Total current liabilities

 

 

9,775,324

 

 

 

7,674,670

 

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

 

 

9,669,879

 

 

 

9,415,700

 

Solar bonds issued to related parties, net of current portion

 

 

100

 

 

 

100

 

Convertible senior notes issued to related parties

 

 

2,634

 

 

 

2,519

 

Deferred revenue, net of current portion

 

 

950,126

 

 

 

1,177,799

 

Resale value guarantees, net of current portion

 

 

455,762

 

 

 

2,309,222

 

Other long-term liabilities

 

 

2,555,319

 

 

 

2,442,970

 

Total liabilities

 

 

23,409,144

 

 

 

23,022,980

 

Commitments and contingencies (Note 12)

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests in subsidiaries

 

 

551,264

 

 

 

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; 171,578 and 168,797 shares issued

   and outstanding as of September 30, 2018 and December 31, 2017, respectively

 

 

171

 

 

 

169

 

Additional paid-in capital

 

 

9,957,711

 

 

 

9,178,024

 

Accumulated other comprehensive income

 

 

8,271

 

 

 

33,348

 

Accumulated deficit

 

 

(5,457,315

)

 

 

(4,974,299

)

Total stockholders' equity

 

 

4,508,838

 

 

 

4,237,242

 

Noncontrolling interests in subsidiaries

 

 

793,467

 

 

 

997,346

 

Total liabilities and equity

 

$

29,262,713

 

 

$

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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive sales

 

$

5,878,305

 

 

$

2,076,731

 

 

$

11,558,051

 

 

$

6,125,643

 

Automotive leasing

 

 

220,461

 

 

 

286,158

 

 

 

633,713

 

 

 

813,462

 

Total automotive revenues

 

 

6,098,766

 

 

 

2,362,889

 

 

 

12,191,764

 

 

 

6,939,105

 

Energy generation and storage

 

 

399,317

 

 

 

317,505

 

 

 

1,183,747

 

 

 

818,229

 

Services and other

 

 

326,330

 

 

 

304,281

 

 

 

859,884

 

 

 

713,168

 

Total revenues

 

 

6,824,413

 

 

 

2,984,675

 

 

 

14,235,395

 

 

 

8,470,502

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive sales

 

 

4,405,919

 

 

 

1,755,622

 

 

 

9,027,055

 

 

 

4,724,849

 

Automotive leasing

 

 

119,283

 

 

 

175,224

 

 

 

360,694

 

 

 

516,683

 

Total automotive cost of revenues

 

 

4,525,202

 

 

 

1,930,846

 

 

 

9,387,749

 

 

 

5,241,532

 

Energy generation and storage

 

 

330,554

 

 

 

237,288

 

 

 

1,036,190

 

 

 

592,823

 

Services and other

 

 

444,992

 

 

 

367,401

 

 

 

1,212,335

 

 

 

852,446

 

Total cost of revenues

 

 

5,300,748

 

 

 

2,535,535

 

 

 

11,636,274

 

 

 

6,686,801

 

Gross profit

 

 

1,523,665

 

 

 

449,140

 

 

 

2,599,121

 

 

 

1,783,701

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

350,848

 

 

 

331,622

 

 

 

1,104,073

 

 

 

1,023,436

 

Selling, general and administrative

 

 

729,876

 

 

 

652,998

 

 

 

2,167,039

 

 

 

1,794,210

 

Restructuring and other

 

 

26,184

 

 

 

 

 

 

129,618

 

 

 

 

Total operating expenses

 

 

1,106,908

 

 

 

984,620

 

 

 

3,400,730

 

 

 

2,817,646

 

Income (loss) from operations

 

 

416,757

 

 

 

(535,480

)

 

 

(801,609

)

 

 

(1,033,945

)

Interest income

 

 

6,907

 

 

 

5,531

 

 

 

17,185

 

 

 

13,406

 

Interest expense

 

 

(175,220

)

 

 

(117,109

)

 

 

(488,348

)

 

 

(324,896

)

Other income (expense), net

 

 

22,876

 

 

 

(24,390

)

 

 

36,071

 

 

 

(83,696

)

Income (loss) before income taxes

 

 

271,320

 

 

 

(671,448

)

 

 

(1,236,701

)

 

 

(1,429,131

)

Provision (benefit) for income taxes

 

 

16,647

 

 

 

(285

)

 

 

35,959

 

 

 

40,640

 

Net income (loss)

 

 

254,673

 

 

 

(671,163

)

 

 

(1,272,660

)

 

 

(1,469,771

)

Net loss attributable to noncontrolling interests and

   redeemable noncontrolling interests in subsidiaries

 

 

(56,843

)

 

 

(51,787

)

 

 

(157,086

)

 

 

(183,721

)

Net income (loss) attributable to common stockholders

 

$

311,516

 

 

$

(619,376

)

 

$

(1,115,574

)

 

$

(1,286,050

)

Net income (loss) per share of common stock attributable

   to common stockholders, basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.82

 

 

$

(3.70

)

 

$

(6.56

)

 

$

(7.80

)

Diluted

 

$

1.75

 

 

$

(3.70

)

 

$

(6.56

)

 

$

(7.80

)

Weighted average shares used in computing net income

   (loss) per share of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

170,893

 

 

 

167,294

 

 

 

170,019

 

 

 

164,897

 

Diluted

 

 

178,196

 

 

 

167,294

 

 

 

170,019

 

 

 

164,897

 

 

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

 

 

5


 

Tesla, Inc.

Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

(unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income (loss) attributable to common stockholders

 

$

311,516

 

 

$

(619,376

)

 

$

(1,115,574

)

 

$

(1,286,050

)

Unrealized gains (losses) on derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification adjustment for net losses into net loss

 

 

 

 

 

 

 

 

 

 

 

(5,570

)

Foreign currency translation adjustment

 

 

(10,274

)

 

 

10,289

 

 

 

(25,077

)

 

 

50,560

 

Other comprehensive (loss) income

 

 

(10,274

)

 

 

10,289

 

 

 

(25,077

)

 

 

44,990

 

Comprehensive income (loss)

 

$

301,242

 

 

$

(609,087

)

 

$

(1,140,651

)

 

$

(1,241,060

)

 

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

 

 

6


 

Tesla, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

Cash Flows from Operating Activities

 

 

 

 

 

 

 

 

Net loss

 

$

(1,272,660

)

 

$

(1,469,771

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation, amortization and impairment

 

 

1,404,313

 

 

 

1,166,397

 

Stock-based compensation

 

 

543,711

 

 

 

332,412

 

Amortization of debt discounts and issuance costs

 

 

120,873

 

 

 

60,613

 

Inventory write-downs

 

 

59,983

 

 

 

98,347

 

Loss on disposals of fixed assets

 

 

132,639

 

 

 

59,640

 

Foreign currency transaction (gains) losses

 

 

(6,614

)

 

 

35,933

 

Loss related to SolarCity acquisition

 

 

 

 

 

29,796

 

Non-cash interest and other operating activities

 

 

22,093

 

 

 

109,729

 

Changes in operating assets and liabilities, net of effect of business combinations:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(686,103

)

 

 

(105,643

)

Inventory

 

 

(1,110,611

)

 

 

(418,970

)

Operating lease vehicles

 

 

(188,948

)

 

 

(1,083,140

)

Prepaid expenses and other current assets

 

 

(31,532

)

 

 

(123,832

)

MyPower customer notes receivable and other assets

 

 

(62,399

)

 

 

17,628

 

Accounts payable and accrued liabilities

 

 

1,627,997

 

 

 

170,326

 

Deferred revenue

 

 

284,417

 

 

 

329,007

 

Customer deposits

 

 

9,471

 

 

 

3,815

 

Resale value guarantee

 

 

(57,621

)

 

 

141,044

 

Other long-term liabilities

 

 

74,232

 

 

 

76,124

 

Net cash provided by (used in) operating activities

 

 

863,241

 

 

 

(570,545

)

Cash Flows from Investing Activities

 

 

 

 

 

 

 

 

Purchases of property and equipment excluding capital leases, net of sales

 

 

(1,775,746

)

 

 

(2,628,126

)

Purchases of solar energy systems, leased and to be leased

 

 

(189,869

)

 

 

(547,085

)

Business combinations, net of cash acquired

 

 

(6,804

)

 

 

(109,147

)

Net cash used in investing activities

 

 

(1,972,419

)

 

 

(3,284,358

)

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

Proceeds from issuances of common stock in public offerings

 

 

 

 

 

400,175

 

Proceeds from issuances of convertible and other debt

 

 

3,946,575

 

 

 

5,401,158

 

Repayments of convertible and other debt

 

 

(3,111,242

)

 

 

(2,442,942

)

Repayments of borrowings under Solar Bonds issued to related parties

 

 

(100,000

)

 

 

(165,000

)

Collateralized lease (repayments) borrowings

 

 

(343,086

)

 

 

416,427

 

Proceeds from exercises of stock options and other stock issuances

 

 

219,945

 

 

 

239,328

 

Principal payments on capital leases

 

 

(105,867

)

 

 

(69,496

)

Common stock and debt issuance costs

 

 

(5,121

)

 

 

(50,530

)

Purchases of convertible note hedges

 

 

 

 

 

(204,102

)

Proceeds from settlement of convertible note hedges

 

 

 

 

 

269,456

 

Proceeds from issuances of warrants

 

 

 

 

 

52,883

 

Payments for settlements of warrants

 

 

(5

)

 

 

(219,538

)

Proceeds from investments by noncontrolling interests in subsidiaries

 

 

366,297

 

 

 

691,918

 

Distributions paid to noncontrolling interests in subsidiaries

 

 

(178,511

)

 

 

(190,715

)

Payments for buy-outs of noncontrolling interests in subsidiaries

 

 

(2,921

)

 

 

 

Net cash provided by financing activities

 

 

686,064

 

 

 

4,129,022

 

Effect of exchange rate changes on cash and cash equivalents and restricted cash

 

 

(18,879

)

 

 

35,736

 

Net (decrease) increase in cash and cash equivalents and restricted cash

 

 

(441,993

)

 

 

309,855

 

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

 

$

3,522,966

 

 

$

4,076,755

 

Supplemental Non-Cash Investing and Financing Activities

 

 

 

 

 

 

 

 

Acquisitions of property and equipment included in liabilities

 

$

305,974

 

 

$

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 September 30, 2018, the consolidated statements of operations and the consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017 and the consolidated statements of cash flows for the nine months ended September 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. Additionally, we have considered the impact from any new revenue arrangements in the current year that would have been accounted for differently under ASC 605, Revenue Recognition, as an adjustment from adoption of the new revenue standard.

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 income

 

 

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):

 

 

 

September 30, 2018

 

 

 

As Reported

 

 

Balances Without

Adoption of New

Revenue Standard

 

 

Effect of Change

Higher / (Lower)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

1,155,001

 

 

$

1,099,914

 

 

$

55,087

 

Inventory

 

 

3,314,127

 

 

 

3,431,185

 

 

 

(117,058

)

Prepaid expenses and other current assets

 

 

325,232

 

 

 

247,056

 

 

 

78,176

 

Operating lease vehicles, net

 

 

2,186,137

 

 

 

4,177,710

 

 

 

(1,991,573

)

Other assets

 

 

431,819

 

 

 

321,847

 

 

 

109,972

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accrued liabilities and other

 

 

1,990,095

 

 

 

1,896,319

 

 

 

93,776

 

Deferred revenue

 

 

570,920

 

 

 

1,080,243

 

 

 

(509,323

)

Resale value guarantees

 

 

604,949

 

 

 

978,515

 

 

 

(373,566

)

Customer deposits

 

 

905,838

 

 

 

850,229

 

 

 

55,609

 

Deferred revenue, net of current portion

 

 

950,126

 

 

 

1,387,829

 

 

 

(437,703

)

Resale value guarantees, net of current portion

 

 

455,762

 

 

 

2,016,861

 

 

 

(1,561,099

)

Other long-term liabilities

 

 

2,555,319

 

 

 

2,441,543

 

 

 

113,776

 

Redeemable noncontrolling interests

   in subsidiaries

 

 

551,264

 

 

 

544,315

 

 

 

6,949

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated other comprehensive gain

 

 

8,271

 

 

 

13,875

 

 

 

(5,604

)

Accumulated deficit

 

 

(5,457,315

)

 

 

(6,287,370

)

 

 

830,055

 

Noncontrolling interests in subsidiaries

 

 

793,467

 

 

 

871,733

 

 

 

(78,266

)

 

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 September 30, 2018

 

 

Nine Months Ended September 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

 

$

5,878,305

 

 

$

5,399,316

 

 

$

478,989

 

 

$

11,558,051

 

 

$

10,414,408

 

 

$

1,143,643

 

Automotive leasing

 

 

220,461

 

 

 

469,837

 

 

 

(249,376

)

 

 

633,713

 

 

 

1,237,239

 

 

 

(603,526

)

Energy generation and storage

 

 

399,317

 

 

 

408,205

 

 

 

(8,888

)

 

 

1,183,747

 

 

 

1,163,935

 

 

 

19,812

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automotive sales

 

 

4,405,919

 

 

 

4,076,044

 

 

 

329,875

 

 

 

9,027,055

 

 

 

8,231,328

 

 

 

795,727

 

Automotive leasing

 

 

119,283

 

 

 

307,957

 

 

 

(188,674

)

 

 

360,694

 

 

 

811,671

 

 

 

(450,977

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

 

16,647

 

 

 

16,984

 

 

 

(337

)

 

 

35,959

 

 

 

37,329

 

 

 

(1,370

)

Net income (loss)