Tesla 2016 Annual Report Download - page 44

Thefollowingtablesetsforth,asofDecember31,2015certainsignificantobligationsthatwillaffectourfutureliquidity(inthousands):

Year Ended December 31,
  Total 2016 2017 2018 2019
2020 and
thereafter
Operatingleaseobligations  $ 570,864  $ 88,629  $ 86,661  $ 78,531  $ 69,013  $ 248,030
Capitalleaseobligations,includinginterest   34,679   16,758   11,321   5,488   1,112   —
Purchaseobligations(1)(2)   549,716   537,719   11,997      —   —
2018Notes,includinginterest(3)   684,537   684,537   —   —   —   —
2019Notes,includinginterest   928,050   2,300   2,300   2,300   1,150   920,000
2021Notes,includinginterest   1,474,875   17,250   17,250   17,250   17,250   1,405,875
Total  $ 4,242,721  $ 1,347,193  $ 129,529  $ 103,569  $ 88,525  $ 2,573,905
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(1) AmountsdonotincludefuturecashpaymentsforpurchaseobligationswhichwererecordedinAccountspayableorAccruedliabilitiesatDecember31,
2015.
(2) Thesetotalsrepresentaggregatepurchasecommitmentswithallvendors.SomeofthecommitmentsincludedareouragreementswithPanasonic
Corporation,totheextentquantitiesandtimingofsuchpurchasesarefixed.ShouldweterminatethePanasoniccontractspriortopurchasingcertain
minimumquantities,wewouldoweanadditional$57millionunderthetermsoftheagreementasofDecember31,2015.
(3) Duringthefourthquarterof2015,theclosingpriceofourcommonstockexceeded130%oftheapplicableconversionpriceofour2018Notesonatleast20
ofthelast30consecutivetradingdaysofthequarter;therefore,holdersof2018Notesmayconverttheirnotesduringthefirstquarterof2016.Assuch,we
classifiedthe$617.7millioncarryingvalueofour2018NotesascurrentliabilitiesonourcondensedconsolidatedbalancesheetasofDecember31,2015
andhaveincludedrelatedcontractualpaymentsinthe2016categoryinthetableabove.
Off-Balance Sheet Arrangements
Duringtheperiodspresented,wedidnothaverelationshipswithunconsolidatedentitiesorfinancialpartnerships,suchasentitiesoftenreferredtoas
structuredfinanceorspecialpurposeentities,whichwouldhavebeenestablishedforthepurposeoffacilitatingoff-balancesheetarrangementsorother
contractuallynarroworlimitedpurposes.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Foreign Currency Risk
Wetransactbusinessgloballyinmultiplecurrencies.Ourinternationalrevenues,aswellascostsandexpensesdenominatedinforeigncurrencies,exposeus
totheriskoffluctuationsinforeigncurrencyexchangeratesagainstthefunctionalcurrenciesofourforeignsubsidiariesandagainsttheU.S.dollar.Upon
consolidation,asforeignexchangeratesvary,revenuesandexpensesmaybesignificantlyimpactedandwemayrecordsignificantgainsorlossesonthe
remeasurementofmonetaryassetsandliabilities,includingintercompanybalances.AsofDecember31,2015,ourlargestcurrencyexposuresarefromtheeuro,
Chineseyuan,NorwegianandDanishkrona,Canadiandollar,Swissfranc,Britishpound,andJapaneseyen.Werecordedforeignexchangelossesof$45.6million
inotherincome(expense),net,fortheyearendedDecember31,2015relatedtheimpactofchangesinexchangeratesonforeigncurrencydenominatedmonetary
assetsandliabilities.
Weconsideredthehistoricaltrendsincurrencyexchangeratesanddeterminedthatitwasreasonablypossiblethatadversechangesinexchangeratesof
10%forallcurrenciescouldbeexperiencedinthenearterm.Thesereasonablypossibleadversechangesinexchangeratesof10%wereappliedtototalmonetary
assetsandliabilitiesdenominatedincurrenciesotherthanthelocalcurrenciesasofDecember31,2015tocomputetheadverseimpactthesechangeswouldhave
hadonourincomebeforeincometaxesinthenearterm.Thesechangeswouldhaveresultedinanadverseimpactonincomebeforeincometaxesofapproximately
$189.2million,recordedtootherincome(expense),net,principallyfromintercompanyandcashbalances.
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