Tesla 2011 Annual Report Download - page 140

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Table of Contents
In October 2010, we entered into a Phase 1 contract services agreement with Toyota for the development of a validated powertrain system,
including a battery, power electronics module, motor, gearbox and associated software, which will be integrated into an electric vehicle version
of the Toyota RAV4. Pursuant to the agreement, Toyota will pay us up to $60.0 million for the successful completion of certain development
milestones and the delivery of prototype samples, including a $5.0 million upfront payment that we received upon the execution of the
agreement. During the year ended December 31, 2010, we completed the first milestone and along with the amortization of our upfront payment,
we recognized $3.3 million in development services revenue. As of December 31, 2010, we had deferred $4.0 million of the upfront payment in
deferred revenues. During the year ended December 31, 2010, we received total payments from Toyota of $5.0 million and as of December 31,
2010, there were amounts receivable of $2.3 million from Toyota related to this agreement.
Panasonic Corporation
In November 2010, we sold 1,418,573 shares of our common stock to Panasonic at a price of $21.15 per share, which was the average of
the trading highs and lows of our common stock from October 25 to October 29, 2010. As we are purchasing battery cells from Panasonic and its
subsidiaries, these transactions are considered related party transactions. During the year ended December 31, 2010, we made total payments to
Panasonic and its subsidiaries of $23.0 million and as of December 31, 2010, there were amounts payable or accrued of $2.3 million to
Panasonic.
14. Commitments and Contingencies
Operating Leases
Our corporate headquarters and powertrain production operations are based in Palo Alto, California where we have leased a facility
consisting of 350,000 square feet. This lease expires in January 2016. We also lease office space under non-cancelable operating leases with
various expiration dates through December 2022. Rent expense for the years ended December 31, 2010, 2009 and 2008, was $6.3 million, $3.2
million, and $1.5 million, respectively.
Capital Leases
We have entered into various agreements to lease equipment under capital leases over terms between 36 and 60 months. The equipment
under the leases are collateral for the lease obligations and are included within property, plant and equipment, net, on the consolidated balance
sheets under the categories of computer equipment and software and office furniture and equipment.
Future minimum commitments for leases as of December 31, 2010 are as follows (in thousands):
139
Operating
Leases
Capital
Leases
2011
$
6,793
$
318
2012
6,625
286
2013
6,561
219
2014
6,431
—
2015 and thereafter
27,021
—
Total minimum lease payments
$
53,431
823
Less: Amounts representing interest not yet incurred
48
Present value of capital lease obligations
775
Less: Current portion
279
Long
-
term portion of capital lease obligations
$
496