Tesla 2016 Annual Report Download - page 41

Other Income (Expense), Net
Otherincome(expense),net,consistsprimarilyofforeignexchangegainsandlossesrelatedtoourforeigncurrency-denominatedmonetaryassetsand
liabilitiesandthechangeinthefairvalueofourDOEcommonstockwarrantliability.Ourforeignexchangegainsandlosseswillvarydependinguponmovements
intheunderlyingforeigncurrencyexchangerates.PriortotheexpirationoftheDOEwarrantinMay2013,theDOEwarranthadbeencarriedatitsestimatedfair
valuewithchangesinitsfairvaluereflectedinotherincome(expense),net.
Otherincome(expense),net,fortheyearsendedDecember31,2015,2014,and2013was($41.7)million,$1.8millionand$22.6million.Fluctuationsin
otherincome(expense)from2014to2015areprimarilytheresultofgains(losses)fromforeigncurrencyexchangeof($45.6)millionand$2.0millionforthe
yearsendedDecember31,2015and2014.Foreigncurrencylossesduring2015relatedprimarilytochangesintheexchangeratesofeuro,Norwegiankrone,
Canadiandollars,andChineseyuan.Otherincome,netof$22.6millionin2013wasprimarilyduetothereductioninfairvalueofourDOEcommonstockwarrant
liabilityof$10.7millionduringtheyear.Otherincome,net,alsoincludesthefavorableforeigncurrencyexchangeimpactfromourforeigncurrency-denominated
liabilitiesduringtheyearendedDecember31,2013,especiallyrelatedtotheJapaneseyen.
Provision for Income Taxes
OurprovisionforincometaxesfortheyearsendedDecember31,2015,2014,and2013was$13.0million,$9.4million,and$2.6million.Theincreasesin
theprovisionforincometaxesweredueprimarilytotheincreaseintaxableincomeinourinternationaljurisdictions.


Liquidity and Capital Resources
AsofDecember31,2015,wehad$1.20billioninprincipalsourcesofliquidityavailablefromourcashandcashequivalentsincluding$297.8millionof
moneymarketfunds.AmountsheldinforeigncurrencieshadaUSdollarequivalentof$535.6millionasofDecember31,2015,andconsistedprimarilyofeuro,
Danishkrone,Norwegiankrone,Swedishkrone,Canadiandollars,euro,andJapaneseyen.
Sourcesofcasharepredominatelyfromourdeliveriesofvehicles,aswellascustomerdeposits,salesofregulatorycredits,proceedsfromfinancing
activities,TeslaEnergyproducts,andrepairandmaintenanceservices.Weexpectthatourcurrentsourcesofliquidity,includingcashandcashequivalents,
togetherwithourcurrentprojectionsofcashflowfromoperatingactivities,willprovideuswithadequateliquidityoverthenext12monthsbasedonourcurrent
plans.Thesecashflowsenableustofundourongoingoperations,researchanddevelopmentprojectsforourplannedModel3,andcertainotherfutureproducts;
purchasetoolingandmanufacturingequipmentrequiredtocontinuetorampupproductionofModelXandModelS;constructourGigafactory;andestablishand
expandourretailstores,servicecentersandSuperchargernetwork.Wecurrentlyanticipatemakingaggregatecapitalexpendituresofabout$1.5billionin2016.
In2015,weenteredintoaseniorsecuredasset-basedrevolvingcreditagreementwithasyndicateofbanksunderwhichwecurrentlyhavetotal
commitmentsofupto$1billion.TheCreditAgreementprovidesforaseniorsecuredasset-basedrevolvingcreditfacility,whichwemaydrawuponasneeded,
subjecttocertainconditions.Borrowedfundsbearinterest,attheCompany’soption,atanannualrateof(a)1%plusLIBORor(b)thehighestof(i)thefederal
fundsrateplus0.50%,(ii)thelenders“primerate”or(iii)1%plusLIBOR.InFebruary2016,weamendedtheCreditAgreementandincreasedtheavailabilityand
thecommitmentsundertheCreditAgreementfrom$750.0millionto$1.0billion.AsofDecember31,2015,borrowingsundertheCreditFacilityof$135.0
millionwereusedtorepayallborrowingsunderandterminateasecuredassetbasedlineofcreditweusedtosupportourdirectleasingprogram.
Whenmarketconditionsarefavorable,wemayevaluatealternativestopursueliquidityoptionstofundcapitalintensiveinitiatives.Shouldprevailing
economic,financial,businessorotherfactorsadverselyaffectourabilitytomeetouroperatingcashrequirements,wecouldberequiredtoobtainfundingthough
traditionaloralternativesourcesoffinancing.Wecannotbecertainthatadditionalfundswouldbeavailabletousonfavorabletermswhenrequired,oratall.
Summary of Cash Flows

Year Ended December 31,
  2015 2014 2013
Netcashprovidedby(usedin)operatingactivities  $ (524,499)  $ (57,337) $ 264,804
Netcashusedininvestingactivities   (1,673,551)  (990,444)   (249,417)
Netcashprovidedbyfinancingactivities   1,523,523   2,143,130   635,422


40