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Restructuring and Other
9 Months Ended
Sep. 30, 2018
Restructuring And Related Activities [Abstract]  
Restructuring and Other

Note 16 – Restructuring and Other

During the second quarter of 2018, we carried-out certain restructuring actions in order to reduce costs and improve efficiency. As a result, in the three months ended June 30, 2018, we recognized $34.0 million of one-time employee termination expenses and estimated losses from sub-leasing a certain facility. The employee termination expenses of $26.2 million were substantially paid by the end of the third quarter of 2018, while the remaining amounts were non-cash. Also included within restructuring and other activities was $56.1 million of expenses (materially all of which were non-cash) from restructuring the energy generation and storage segment, which comprised of disposals of certain tangible assets, the shortening of the useful life of a trade name intangible asset and a contract termination penalty. In addition, we concluded that a small portion of the IPR&D is not commercially feasible. Consequently, we recognized an impairment loss of $13.3 million in the three months ended June 30, 2018 (see Note 3, Intangible Assets).

In October 2018, a final court order was entered approving the terms of a settlement in connection with the SEC’s legal actions relating to Mr. Musk’s prior consideration during the third quarter of 2018 of a take-private proposal for Tesla. Consequently, we recognized settlement and legal expenses of $25.8 million in the three months ended September 30, 2018 (see Note 12, Commitments and Contingencies). These expenses are expected to be substantially paid by the end of the fourth quarter of 2018.