Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Domestic and Foreign (Loss) Income before Income Taxes

The following table presents the domestic and foreign components of (loss) income before income taxes for the periods presented (in thousands):

	Year Ended December 31,
	2016			2015			2014
United States	$	(1,849,436	)	$	(1,467,184	)	$	(718,416	)
Noncontrolling interest and redeemable noncontrolling interests		1,059,121			710,492			319,196
Foreign		(30,340	)		(8,804	)		(2,746	)
Total	$	(820,655	)	$	(765,496	)	$	(401,966	)

Schedule of Income Tax Provision (Benefit)

The income tax provision (benefit) was composed of the following (in thousands):

	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$	206		$	2,946		$	10
State		272			812			473
Foreign		106			95			100
Total current provision		584			3,853			583
Deferred:
Federal		370			13			(26,528	)
State		50			3			(791	)
Foreign		(1,312	)		(543	)		—
Total deferred provision		(892	)		(527	)		(27,319	)
Total provision (benefit) for income taxes	$	(308	)	$	3,326		$	(26,736	)

Schedule of Reconciliation of Effective Tax Rate

The following table presents a reconciliation of the federal statutory rate and the Company’s effective tax rate for the periods presented:

	Year Ended December 31,
	2016			2015			2014
Tax benefit at federal statutory rate		(35.00	)%		(35.00	)%		(34.00	)%
State income taxes (net of federal benefit)		0.58			(5.66	)		(1.71	)
Foreign income and withholding taxes		0.64			(0.04	)		0.44
Noncontrolling interests and redeemable noncontrolling interests adjustment		44.24			27.99			5.18
Investment in certain financing funds		2.24			(0.45	)		16.49
Stock-based compensation		2.48			0.89			2.35
Prepaid tax expense		(19.00	)		(19.38	)		(5.45	)
Other		(0.67	)		0.03			1.24
Tax credits		(2.09	)		(1.65	)		(1.49	)
Change in valuation allowance		6.55			33.70			10.30
Effective tax rate		(0.03	)%		0.43	%		(6.65	)%

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents significant components of the Company’s deferred tax assets and liabilities for the periods presented (in thousands):

	As of December 31,
	2016			2015
Deferred tax assets:
Accruals and reserves	$	186,875		$	156,225
Net operating losses		178,995			23,869
Accelerated gain on assets		24,586			26,005
Investment in certain financing funds		383,147			485,159
Tax rebate revenue		39,523			43,037
Stock-based compensation		34,938			47,605
Other deferred tax assets		9,585			9,887
Tax credits		39,944			7,946
Gross deferred tax assets		897,593			799,733
Valuation allowance		(422,889	)		(369,157	)
Net deferred tax assets		474,704			430,576
Deferred tax liabilities:
Depreciation and amortization		(269,685	)		(279,492	)
Initial direct costs related to customer solar energy system lease acquisition costs and Other deferred tax liabilities		(205,500	)		(152,457	)
Gross deferred tax liabilities		(475,185	)		(431,949	)
Net deferred taxes	$	(481	)	$	(1,373	)

An analysis of deferred tax assets and liabilities is as follows (in thousands):

	As of December 31,
	2016			2015
Noncurrent:
Deferred tax assets	$	422,408		$	367,784
Deferred tax liabilities		—			—
Total noncurrent gross deferred tax assets		422,408			367,784
Less: valuation allowance		(422,889	)		(369,157	)
Net noncurrent deferred tax liabilities	$	(481	)	$	(1,373	)

Reconciliation of Unrecognized Tax Benefits

The Company applies a two-step approach with respect to uncertain tax positions. This approach involves recognizing any uncertain tax positions that are more-likely-than-not of being ultimately realized and then measuring those positions to determine the amounts to be recognized. The Company had $13.4 million of unrecognized tax benefits as of December 31, 2016, of which $1.5 million would affect the Company’s effective tax rate if recognized. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

Balance, January 1, 2014	$	120
Acquired from Silevo		434
True-up to prior year ending balance		(23	)
Balance, December 31, 2014		531
Additions related to positions from the current year		1,384
Additions related to positions from the prior years		8,181
Balance, December 31, 2015		10,096
Additions related to positions from the current year		2,882
Additions related to positions from the prior years		453
Balance, December 31, 2016	$	13,431