Tesla 2016 Annual Report Download - page 74

FutureminimumcommitmentsforleasesasofDecember31,2015areasfollows(inthousands):
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Operating Capital
  Leases Leases
2016  $ 88,629 $ 16,758
2017   86,661  11,321
2018   78,531   5,488
2019   69,013   1,112
2020andthereafter   248,030   —
Totalminimumleasepayments   570,864   34,679
Less:Amountsrepresentinginterestnotyetincurred       2,006
Presentvalueofcapitalleaseobligations      32,673
Less:Currentportion       15,451
Long-termportionofcapitalleaseobligations     $ 17,222
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Environmental Liabilities
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InconnectionwithourTeslaFactorylocatedinFremont,California,weareobligatedtopayfortheremediationofcertainenvironmentalconditions
existingatthetimewepurchasedthepropertyfromNewUnitedMotorManufacturing,Inc.(NUMMI).Teslaisresponsibleforthefirst$15millionofremediation
costsandanycostsinexcessof$30millionorcostsincurredaftertheten-yearanniversaryofclosing.NUMMIisresponsibleforremediationcostsbetween$15
millionand$30millionforupto10yearsfromtheclosingdate.ThroughDecember31,2015,wehavepaid$6.94millionforremediationcostsincurredrelatedto
theFremontfacility,effectivelysettlingouraccruedobligationandasofDecember31,2015,wehavenoaccruedamountsremaining.AsofDecember31,2014,
weaccruedatotalof$4.0millionrelatedtotheseenvironmentalliabilities.
Legal Proceedings
Fromtimetotime,wearesubjecttovariouslegalproceedingsthatarisefromthenormalcourseofbusinessactivities.Inaddition,fromtimetotime,third
partiesmayassertintellectualpropertyinfringementclaimsagainstusintheformoflettersandotherformsofcommunication.Ifanunfavorablerulingwereto
occur,thereexiststhepossibilityofamaterialadverseimpactonourresultsofoperations,prospects,cashflows,financialpositionandbrand.
InNovember2013,aputativesecuritiesclassactionlawsuitwasfiledagainstTeslainU.S.DistrictCourt,NorthernDistrictofCalifornia,alleging
violationsof,andseekingremediespursuantto,Sections10(b)and20(a)oftheSecuritiesExchangeActof1934andRule10b-5.Thecomplaint,madeclaims
againstTeslaandourCEO,ElonMusk,soughtdamagesandattorney’sfeesonthebasisofallegationsthat,amongotherthings,TeslaandMr.Muskmadefalse
and/ormisleadingrepresentationsandomissions,includingwithrespecttothesafetyofModelS.Thiscasewasbroughtonbehalfofaputativeclassconsistingof
certainpersonswhopurchasedTesla’ssecuritiesbetweenAugust19,2013andNovember17,2013.OnSeptember26,2014,thetrialcourt,uponthemotionof
TeslaandMr.Musk,dismissedthecomplaintwithprejudice,andthereafterissuedaformalwrittenordertothateffect.Theplaintiffshaveappealedfromthetrial
court’sorder,andthatappealispending.
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Note 14 - Quarterly Results of Operations (Unaudited)
ThefollowingtableincludesselectedquarterlyresultsofoperationsdatafortheyearsendedDecember31,2015and2014(inthousands,exceptpershare
data):
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Three months ended
  March 31 June 30 September 30 December 31
2015            
Totalrevenues  $ 939,880  $ 954,976  $ 936,789  $ 1,214,379
Grossprofit   260,073   213,370   231,496   218,564
Netloss   (154,181 )   (184,227)   (229,858)   (320,397)
Netlosspershare,basic   (1.22)   (1.45 )   (1.78)   (2.44)
Netincome(loss)pershare,diluted   (1.22)   (1.45)   (1.78)   (2.44 )
2014            
Totalrevenues  $ 620,542  $ 769,349  $ 851,804  $ 956,661
Grossprofit   155,128   212,995   251,851   261,697
Netincome(loss)   (49,800)   (61,900 )   (74,708)   (107,630)
Netincome(loss)pershare,basic   (0.40)   (0.50 )   (0.60)   (0.86)
Netincome(loss)pershare,diluted   (0.40)   (0.50)   (0.60)   (0.86 )
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