Property, Plant and Equipment

9 Months Ended

Sep. 30, 2012

8. Property, Plant and Equipment

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


	September 30, 2012			December 31, 2011 As Recast (1)
PV solar systems	$	21,188		$	14,852
Plant and machinery		33			740
Furniture, fixtures and equipment		385			466
Computers and software		1,516			1,606
Trucks		77			118
Leasehold improvements		217			505

		23,416			18,287
Less: accumulated depreciation		(3,781	)		(4,206	)

	$	19,635		$	14,081

(1)	As recast to reflect the balances of SGT beginning January 1, 2011 combined with the balances of Solar Power, Inc. beginning March 31, 2011, as required under the accounting guidelines for a transfer of an entity under common control (refer to Note 4—Acquisition of Solar Green Technology).

In 2009, Solar Power, Inc. capitalized a photovoltaic (“PV”) solar system relating to the Aerojet 1 solar development project along with the associated financing obligation, recorded under loans payable, financing and capital lease obligations on its consolidated financial statements. Due to certain guarantee arrangements as disclosed in Note 13—Commitments and Contingencies, the Company will continue to record this solar system within its property, plant and equipment with its associated financing obligation in loans payable and financing obligations as long as it maintains its continuing involvement with this project. The income and expenses relating to the underlying operation of the Aerojet 1 project are recorded in the Company’s Condensed Consolidated Financial Statements.

During the year ended December 31, 2011, the Company’s subsidiary, SGT, completed construction of two SEFs, which they sold to and leased back from a leasing company in May 2012. The SEFs are classified as PV solar systems under capital leases, which were recorded under the account loans payable, financing and capital lease obligations, net of current portion, on the Condensed Consolidated Financial Statements. Refer to Note 13—Commitments and Contingencies for more information related to the capital leases. As of December 31, 2011, this asset was classified as held for sale (refer to Note 9—Assets Held for Sale).

Depreciation expense for the three months ended September 30, 2012 and 2011 was $0.3 million and $0.3 million, respectively. Depreciation expense for the nine months ended September 30, 2012 and 2011 was $0.8 million and $0.6 million, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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