Tesla 2015 Annual Report Download - page 76

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Net Loss per Share of Common Stock
Our basic and diluted net loss per share of common stock is calculated by dividing net loss by the weighted-average shares of common
stock outstanding for the period. Potentially dilutive shares, which are based on the number of shares underlying outstanding stock options and
warrants as well as our Notes, are not included when their effect is antidilutive.
The following table presents the potential weighted common shares outstanding that were excluded from the computation of basic and
diluted net loss per share of common stock for the periods, related to the following securities:
Since we expect to settle the principal amount of our outstanding convertible senior notes in cash, we use the treasury stock method for
calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have
a dilutive impact on diluted net income per share of common stock when the average market price of our common stock for a given period
exceeds the conversion price of $124.52, $359.87, and $359.87 per share for the convertible senior notes due 2018 Notes, 2019 Notes and 2021
Notes, respectively.
3. Balance Sheet Components
Inventory
As of December 31, 2014 and 2013, our inventory consisted of the following (in thousands):
Finished goods inventory includes vehicles made to fulfill customer orders which have not been delivered and a smaller portion of
vehicles available for immediate sale at our retail and service center locations. In addition, we also maintain vehicles used for marketing
purposes and service loaners until they are sold to customers.
We write down inventory as a result of excess and obsolete inventories, or when we believe that the net realizable value of inventories is
less than the carrying value. During the years ended December 31, 2014, 2013 and 2012, we recorded write-
downs of $15.6 million, $8.9 million
and $5.0 million, respectively, in cost of automotive sales.
75
Year Ended December 31,
2014
2013
2012
Stock options
260,852
13,881,355
25,007,776
Convertible senior notes
2,344,998
411,560
—
Warrants issued May 2013
921,985
—
—
Employee stock purchase plan
23,859
23,296
59,763
Restricted stock units
88,213
224
—
DOE warrant
—
1,061,439
2,342,353
December 31,
December 31,
2014
2013
Raw materials
$
392,292
$
184,665
Work in process
56,114
42,500
Finished goods
397,318
69,324
Service parts
107,951
43,866
Total
$
953,675
$
340,355