XML 33 R21.htm IDEA: XBRL DOCUMENT v3.19.1
Income Taxes
3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes    
The income tax expense rate for the three months ended March 31, 2019 and 2018 was 3.7% and (9.9)%, respectively. The differences between the actual consolidated effective income tax rate and the U.S. federal statutory rate were primarily attributable to an increase in valuation allowance on deferred tax assets and the allocation of losses on noncontrolling interests and redeemable noncontrolling interests.
The Company sells solar energy systems to investment Funds. As the investment Funds are consolidated by the Company, the gain on the sale of the assets has been eliminated in the consolidated financial statements, however gains on sale are recognized for tax purposes.
Tax Cuts and Jobs Act
On December 22, 2017, the U.S, government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). While the Company has fully accounted for the impact of the Tax Act, it will continue to monitor additional clarification and guidance from the IRS, including guidance related to Section 451(c) income recognition that could lead to the Company utilizing a portion of its net operating losses.
Uncertain Tax Positions
 
As of March 31, 2019 and December 31, 2018, the Company had $0.6 million of unrecognized tax benefits related to an acquisition in 2015. In addition, there was $0.2 million of interest and penalties for uncertain tax positions as of March 31, 2019 and December 31, 2018. Due to the expiration of federal and California statute of limitations, the Company expects the total amount of gross unrecognized tax benefits will decrease by $0.5 million within 12 months of March 31, 2019.
Net Operating Loss Carryforwards
As a result of the Company’s net operating loss carryforwards as of March 31, 2019 and December 31, 2018, the Company does not expect to pay income tax, including in connection with its income tax provision for the three months ended March 31, 2019. As of December 31, 2018, the Company had net operating loss carryforwards for federal, California, and other state income tax purposes of approximately $1.1 billion, $572.2 million, 535.8 million, respectively, which will begin to expire in the year 2028, 2028, and 2024, respectively, if not utilized. The Company does not expect to pay any income taxes until the Company's net operating losses are fully utilized. Federal and certain state net operating loss carryforwards generated in tax years beginning after December 31, 2017 have indefinite carryover periods and do not expire, but are limited to the amount that can be utilized in any one year.