Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Entity Central Index Key | 0001375877 |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2020 |
Entity File Number | 001-33107 |
Entity Registrant Name | CANADIAN SOLAR INC. |
Entity Incorporation, State or Country Code | A1 |
Entity Address, Address Line One | 545 Speedvale Avenue West |
Entity Address, City or Town | Guelph, Ontario |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | N1K 1E6 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 59,820,384 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
ICFR Auditor Attestation Flag | true |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 545 Speedvale Avenue West |
Entity Address, City or Town | Guelph, Ontario |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | N1K 1E6 |
Contact Personnel Name | Huifeng Chang |
City Area Code | 1-519 |
Local Phone Number | 837-1881 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,178,752 | $ 668,770 |
Restricted cash | 458,334 | 526,723 |
Accounts receivable trade, net of allowance of $29,545 and $40,293 as of December 31, 2019 and 2020, respectively | 408,958 | 436,815 |
Accounts receivable, unbilled | 28,461 | 15,256 |
Amounts due from related parties | 5,834 | 31,232 |
Inventories | 695,981 | 554,070 |
Value added tax recoverable | 102,460 | 108,920 |
Advances to suppliers-current, net of allowance of $7,222 and $5,845 as of December 31, 2019 and 2020, respectively | 182,146 | 47,978 |
Derivative assets | 23,351 | 5,547 |
Project assets | 747,764 | 604,083 |
Prepaid expenses and other current assets | 353,781 | 253,542 |
Total current assets | 4,185,822 | 3,252,936 |
Restricted cash | 2,629 | 9,927 |
Property, plant and equipment, net | 1,157,731 | 1,046,035 |
Solar power systems, net | 158,262 | 52,957 |
Deferred tax assets | 170,656 | 153,963 |
Advances to suppliers, net of allowance of $13,059 and $13,855 as of December 31, 2019 and 2020, respectively | 97,173 | 40,897 |
Prepaid land use rights | 62,414 | 60,836 |
Investments in affiliates | 78,291 | 152,828 |
Intangible assets, net | 22,429 | 22,791 |
Project assets | 389,702 | 483,051 |
Right-of-use assets | 26,793 | 37,733 |
Other non-current assets | 184,952 | 153,253 |
TOTAL ASSETS | 6,536,854 | 5,467,207 |
Current liabilities: | ||
Short-term borrowings | 1,202,285 | 933,120 |
Long-term borrowings on project assets - current | 198,794 | 286,173 |
Accounts payable | 514,742 | 585,601 |
Short-term notes payable | 710,636 | 544,991 |
Amounts due to related parties | 314 | 10,077 |
Other payables | 508,839 | 446,454 |
Advances from customers | 189,470 | 134,806 |
Derivative liabilities | 10,755 | 10,481 |
Operating lease liabilities | 15,204 | 18,767 |
Other current liabilities | 237,316 | 121,527 |
Total current liabilities | 3,588,355 | 3,091,997 |
Accrued warranty costs | 37,732 | 55,878 |
Long-term borrowings | 446,090 | 619,477 |
Convertible notes | 223,214 | |
Derivative liabilities | 1,841 | |
Liability for uncertain tax positions | 14,729 | 15,353 |
Deferred tax liabilities | 49,080 | 56,463 |
Loss contingency accruals | 26,458 | 28,513 |
Operating lease liabilities | 13,232 | 20,718 |
Financing liabilities | 81,871 | 76,575 |
Other non-current liabilities | 163,308 | 75,334 |
TOTAL LIABILITIES | 4,644,069 | 4,042,149 |
Commitments and contingencies (Note 21) | ||
Equity: | ||
Common shares - no par value: unlimited authorized shares, 59,371,684 and 59,820,384 shares issued and outstanding at December 31, 2019 and 2020, respectively | 687,033 | 703,806 |
Treasury stock, at cost, 609,516 and nil common shares as of December 31, 2019 and 2020, respectively | (11,845) | |
Additional paid-in capital | (28,236) | 17,179 |
Retained earnings | 940,304 | 793,601 |
Accumulated other comprehensive loss | (28,679) | (109,607) |
Total Canadian Solar Inc. shareholders' equity | 1,570,422 | 1,393,134 |
Non-controlling interests in subsidiaries | 322,363 | 31,924 |
TOTAL EQUITY | 1,892,785 | 1,425,058 |
TOTAL LIABILITIES AND EQUITY | $ 6,536,854 | $ 5,467,207 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable trade, allowance | $ 40,293 | $ 29,545 |
Advances to suppliers - current, allowance | 5,845 | 7,222 |
Advances to suppliers - non-current, allowance | $ 13,855 | $ 13,059 |
Common share, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 59,820,384 | 59,371,684 |
Common shares, shares outstanding (in shares) | 59,820,384 | 59,371,684 |
Treasury stock, shares issued (in shares) | 0 | 609,516 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net revenues: | |||
-Non-related parties | $ 3,413,769 | $ 3,101,113 | $ 3,624,687 |
-Related parties | 62,726 | 99,470 | 119,825 |
Total net revenues | 3,476,495 | 3,200,583 | 3,744,512 |
Cost of revenues: | |||
-Non-related parties | 2,756,687 | 2,424,476 | 2,894,611 |
-Related parties | 29,894 | 57,610 | 74,819 |
Total cost of revenues | 2,786,581 | 2,482,086 | 2,969,430 |
Gross profit | 689,914 | 718,497 | 775,082 |
Operating expenses: | |||
Selling and distribution expenses | 224,243 | 180,326 | 165,402 |
General and administrative expenses | 225,597 | 242,783 | 245,376 |
Research and development expenses | 45,167 | 47,045 | 44,193 |
Other operating income, net | (25,523) | (10,536) | (44,546) |
Total operating expenses | 469,484 | 459,618 | 410,425 |
Income from operations | 220,430 | 258,879 | 364,657 |
Other income (expenses): | |||
Interest expense | (71,874) | (81,326) | (106,032) |
Interest income | 9,306 | 12,039 | 11,207 |
Gain (loss) on change in fair value of derivatives, net | 50,001 | (22,218) | (19,230) |
Foreign exchange gain (loss) | (64,820) | 10,370 | 6,529 |
Investment income (loss) | (8,559) | 1,929 | 41,361 |
Other expenses, net | (85,946) | (79,206) | (66,165) |
Income before income taxes and equity in earnings of unconsolidated investees | 134,484 | 179,673 | 298,492 |
Income tax benefit (expense) | 1,983 | (42,066) | (61,969) |
Equity in earnings (loss) of unconsolidated investees | 10,779 | 28,948 | 5,908 |
Net income | 147,246 | 166,555 | 242,431 |
Less: net income (loss) attributable to non-controlling interests | 543 | (5,030) | 5,361 |
Net income attributable to Canadian Solar Inc. | $ 146,703 | $ 171,585 | $ 237,070 |
Earnings per share - basic | $ 2.46 | $ 2.88 | $ 4.02 |
Shares used in computation - basic | 59,575,898 | 59,633,855 | 58,914,540 |
Earnings per share - diluted | $ 2.38 | $ 2.83 | $ 3.88 |
Shares used in computation - diluted | 62,306,819 | 60,777,696 | 62,291,670 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 147,246 | $ 166,555 | $ 242,431 |
Other comprehensive income (loss) (net of tax of nil): | |||
Foreign currency translation adjustment | 76,188 | 319 | (50,577) |
Gain (loss) on commodity hedge | 953 | ||
Gain (loss) on interest rate swap | 10,724 | (5,847) | 5,141 |
De-recognition of commodity hedge and interest rate swap | (4,115) | (8,752) | |
Comprehensive income | 230,043 | 161,027 | 189,196 |
Less: comprehensive income (loss) attributable to non-controlling interests | 2,412 | (11,100) | 8,241 |
Comprehensive income attributable to Canadian Solar Inc. | $ 227,631 | $ 172,127 | $ 180,955 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Comprehensive Income, Net of Tax, Portion Attributable to Parent | |||
Other comprehensive income tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Shares | Treasury Stock | Additional Paid-in Capital | Retained EarningsCumulative effect, adjustment | Retained Earnings | Accumulated Other Comprehensive Income (loss) | Earnings Attributable to Canadian Solar Inc.Cumulative effect, adjustment | Earnings Attributable to Canadian Solar Inc. | Non-Controlling Interest | Cumulative effect, adjustment | Total | |||
Balance at Dec. 31, 2017 | $ 702,162 | $ 417 | $ 383,681 | $ (54,034) | $ 1,032,226 | $ 27,549 | $ 1,059,775 | |||||||
Balance (in shares) at Dec. 31, 2017 | 58,496,685 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net Income (loss) | 237,070 | 237,070 | 5,361 | 242,431 | ||||||||||
Foreign currency translation adjustment | (53,457) | (53,457) | 2,880 | (50,577) | ||||||||||
Acquisition of subsidiaries | 7,703 | 7,703 | ||||||||||||
Acquisition non-controlling interest's ownership | (6,591) | (6,591) | ||||||||||||
Share-based compensation | 10,258 | 10,258 | 10,258 | |||||||||||
Transfer of equity interest in subsidiaries to non-controlling shareholders | 10,470 | 10,470 | ||||||||||||
Exercise of share options and RSUs | $ 769 | 769 | 769 | |||||||||||
Exercise of share options and RSUs (in shares) | 683,939 | |||||||||||||
De-recognition of derivatives | (8,752) | (8,752) | (8,752) | |||||||||||
Fair value change on derivatives | 6,094 | 6,094 | 6,094 | |||||||||||
Balance (ASU 2014-09) at Dec. 31, 2018 | $ 1,265 | $ 1,265 | $ 1,265 | |||||||||||
Balance at Dec. 31, 2018 | $ 702,931 | 10,675 | 622,016 | (110,149) | 1,225,473 | 47,372 | 1,272,845 | |||||||
Balance (in shares) at Dec. 31, 2018 | 59,180,624 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net Income (loss) | 171,585 | 171,585 | (5,030) | 166,555 | ||||||||||
Foreign currency translation adjustment | 6,389 | 6,389 | (6,070) | 319 | ||||||||||
Acquisition non-controlling interest's ownership | (4,178) | (4,178) | (9,998) | (14,176) | ||||||||||
Repurchase of common shares | [1] | $ (11,845) | (11,845) | $ (11,845) | ||||||||||
Repurchase of common shares (in shares) | (609,516) | [1] | 609,516,000 | [1] | 609,516 | |||||||||
Repurchase of treasury stock (shares) | 609,516,000 | |||||||||||||
Share-based compensation | 10,682 | 10,682 | $ 10,682 | |||||||||||
Exercise of share options and RSUs | $ 875 | 875 | 875 | |||||||||||
Exercise of share options and RSUs (in shares) | 800,576 | |||||||||||||
Proceeds from non-controlling interests | 5,650 | 5,650 | ||||||||||||
Fair value change on derivatives | (5,847) | (5,847) | (5,847) | |||||||||||
Balance at Dec. 31, 2019 | $ 703,806 | $ (11,845) | 17,179 | 793,601 | (109,607) | 1,393,134 | 31,924 | $ 1,425,058 | ||||||
Balance (in shares) at Dec. 31, 2019 | 59,371,684 | 59,371,684 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net Income (loss) | 146,703 | 146,703 | 543 | $ 147,246 | ||||||||||
Foreign currency translation adjustment | 74,319 | 74,319 | 1,869 | 76,188 | ||||||||||
Acquisition non-controlling interest's ownership | (8,414) | (8,414) | 0 | (8,414) | ||||||||||
Repurchase of common shares | [2] | $ (5,963) | (5,963) | (5,963) | ||||||||||
Repurchase of common shares (in shares) | [2] | (381,330) | 381,330 | |||||||||||
Share-based compensation | 12,350 | 12,350 | 12,350 | |||||||||||
Transfer of equity interest in subsidiaries to non-controlling shareholders | (49,351) | (49,351) | 273,904 | 224,553 | ||||||||||
Exercise of share options and RSUs | $ 1,035 | 1,035 | 1,035 | |||||||||||
Exercise of share options and RSUs (in shares) | 830,030 | |||||||||||||
Retirement of treasury stock (in shares) | [3] | (990,846,000) | ||||||||||||
Retirement of treasury stock | [3] | $ (17,808) | $ 17,808 | |||||||||||
De-recognition of derivatives | (4,115) | (4,115) | (4,115) | |||||||||||
Proceeds from non-controlling interests | 14,123 | 14,123 | ||||||||||||
Fair value change on derivatives | 10,724 | 10,724 | 10,724 | |||||||||||
Balance at Dec. 31, 2020 | $ 687,033 | $ (28,236) | $ 940,304 | $ (28,679) | $ 1,570,422 | $ 322,363 | $ 1,892,785 | |||||||
Balance (in shares) at Dec. 31, 2020 | 59,820,384 | 59,820,384 | ||||||||||||
[1] | Following the share repurchase plan authorized by the Board Directors on December 9, 2019, the Company repurchased 609,516 outstanding shares with total costs of $11,845 in December 2019. The Company retired all outstanding shares repurchased during 2020. | |||||||||||||
[2] | Following the share repurchase plan authorized by the Board Directors on December 9, 2019, the Company repurchased 91,424 and 289,906 outstanding shares with total costs of $2,000 and $3,963 in January 2020 and March 2020, respectively. The Company retired all outstanding shares repurchased during 2020. | |||||||||||||
[3] | On September 30, 2020, the Company announced a RMB1.78 billion (approximately $261,332) capital raising for CSI Solar Co., Ltd., to qualify it for the planned carve-out IPO in China and bring in leading institutional investors and strategic partners. Refer to Note 1 to the consolidated financial statements for further information. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2020USD ($)shares | Jan. 31, 2020USD ($)shares | Dec. 31, 2020USD ($) | [1] | Dec. 31, 2019USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | ||
Number of shares repurchased | shares | 289,906 | 91,424 | 609,516 | |||||
Total cost of share repurchases | $ | $ 3,963 | $ 2,000 | $ 5,963 | $ 11,845 | [2] | |||
CSI Solar Co | ||||||||
Capital Raising Announced | $ 261,332 | ¥ 1,780 | ||||||
[1] | Following the share repurchase plan authorized by the Board Directors on December 9, 2019, the Company repurchased 91,424 and 289,906 outstanding shares with total costs of $2,000 and $3,963 in January 2020 and March 2020, respectively. The Company retired all outstanding shares repurchased during 2020. | |||||||
[2] | Following the share repurchase plan authorized by the Board Directors on December 9, 2019, the Company repurchased 609,516 outstanding shares with total costs of $11,845 in December 2019. The Company retired all outstanding shares repurchased during 2020. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income | $ 147,246 | $ 166,555 | $ 242,431 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 209,118 | 159,723 | 129,256 |
Accretion of convertible notes | 388 | ||
Loss (gain) on disposal of property, plant and equipment | (253) | 1,227 | 2,565 |
Gain on disposal of solar power systems | (1,666) | (36,098) | |
Gain on disposal of investment in affiliates | (13,936) | (1,928) | (47,102) |
Impairment loss of property, plant and equipment | 11,854 | 21,866 | 30,968 |
Impairment loss of project assets | 369 | 20,194 | 9,016 |
Impairment loss of investment | 24,060 | 0 | 5,738 |
Loss (gain) on change in fair value of derivatives, net | (50,001) | 22,218 | 19,230 |
Equity in loss of unconsolidated investees | (10,779) | (28,948) | (5,908) |
Allowance for credit losses | 9,874 | 1,250 | 2,812 |
Non-cash operating lease expenses | 19,260 | 14,318 | |
Write-down of inventories | 42,907 | 19,447 | 14,646 |
Share-based compensation | 12,350 | 10,682 | 10,258 |
Unrealized gain (loss) from sales to affiliates | (66) | 6,194 | (13,573) |
Derecognition of commodity hedge and interest rate swap | 4,439 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable trade | 65,379 | 51,670 | (179,607) |
Accounts receivable, unbilled | (12,064) | (15,268) | 1,158 |
Amounts due from related parties | 26,828 | (17,347) | 9,237 |
Inventories | (180,974) | (312,781) | 55,408 |
Value added tax recoverable | 2,687 | (849) | (9,206) |
Advances to suppliers | (138,915) | (27,066) | 29,001 |
Project assets | (443,730) | 28,527 | (30,501) |
Prepaid expenses and other current assets | (72,188) | 33,283 | (2,208) |
Other non-current assets | (11,913) | (24,037) | 9,387 |
Accounts payable | (89,180) | 209,175 | 47,756 |
Short-term notes payable | 120,445 | 185,827 | (173,148) |
Amounts due to related parties | (9,773) | (5,798) | 10,467 |
Other payables | 10,386 | 42,810 | 39,791 |
Advances from customers | 51,683 | 96,115 | (11,225) |
Operating lease liabilities | (19,369) | (12,566) | |
Other liabilities | 179,911 | (10,851) | (29,691) |
Accrued warranty costs | (19,143) | 4,624 | (3,563) |
Prepaid land use rights | 452 | 2,622 | 6,557 |
Goodwill | 1,005 | 5,243 | |
Liability for uncertain tax positions | (623) | (4,775) | 10,863 |
Deferred taxes | (21,439) | (12,455) | 37,591 |
Net settlement of derivatives | 33,054 | (27,012) | 28,731 |
Loss contingency accruals | 1,115 | 4,126 | |
Net cash provided by (used in) operating activities | (120,541) | 600,111 | 216,280 |
Investing activities: | |||
Investments in affiliates | (17,758) | (7,684) | (11,036) |
Return of investment from affiliates | 3,012 | 816 | |
Proceeds from disposal of investment in affiliates | 33,037 | 1,649 | 337,773 |
Purchase of property, plant and equipment and intangible assets | (334,781) | (291,182) | (316,282) |
Purchase of solar power systems | (160) | ||
Proceeds from disposal of solar power systems | 103 | 17,800 | |
Net cash provided by (used in) investing activities | (319,662) | (294,102) | 29,071 |
Financing activities: | |||
Proceeds from short-term borrowings | 1,667,703 | 1,257,009 | 1,430,708 |
Repayment of short-term borrowings | (1,561,597) | (1,649,721) | (2,368,967) |
Proceeds from long-term borrowings | 207,632 | 530,990 | 382,831 |
Acquisition of non-controlling interest | (14,176) | (6,591) | |
Proceeds from non-controlling interests | 261,332 | 11,488 | 10,470 |
Proceeds from third party financing liabilities | 6,419 | 3,000 | 119,095 |
Proceeds from sales-leaseback arrangement | 9,945 | 9,044 | 35,944 |
Distributions to tax equity investors | (1,120) | (3,013) | |
Repayment of finance lease obligation | (22,173) | (42,658) | (64,859) |
Net proceeds from issuance of convertible notes | 222,826 | ||
Payments for repurchase of convertible notes | (127,500) | ||
Proceeds from subscription of employee stock ownership plan | 36,342 | ||
Proceeds from exercise of stock options | 1,035 | 875 | 769 |
Payments for repurchase of treasury stock | (5,963) | (11,845) | |
Net cash provided by (used in) financing activities | 823,501 | (34,614) | (463,613) |
Effect of exchange rate changes | 50,997 | (6,965) | (38,725) |
Net increase (decrease) in cash and cash equivalents | 434,295 | 264,430 | (256,987) |
Cash and cash equivalents at the beginning of the year | 1,205,420 | 940,990 | 1,190,134 |
Less: net decrease in cash, cash equivalents and restricted cash classified within assets held-for-sale | (7,843) | ||
Cash and cash equivalents at the end of the year | 1,639,715 | 1,205,420 | 940,990 |
Supplemental disclosure of cash flow information: | |||
Interest paid (net of amounts capitalized) | 78,747 | 85,362 | 103,236 |
Income taxes paid, net of tax refund | 38,193 | 40,454 | 32,135 |
Supplemental schedule of non-cash activities: | |||
Property, plant and equipment costs included in other payables | $ 244,512 | $ 244,483 | $ 228,970 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Cash and cash equivalents | $ 1,178,752 | $ 668,770 | ||
Restricted cash - current | 458,334 | 526,723 | ||
Restricted cash - non-current | 2,629 | 9,927 | ||
Total cash and cash equivalents, and restricted cash shown in the statements of cash flows | $ 1,639,715 | $ 1,205,420 | $ 940,990 | $ 1,190,134 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Canadian Solar Inc. (“CSI”) was incorporated pursuant to the laws of the Province of Ontario in October 2001, and changed its jurisdiction by continuing under the Canadian federal corporate statute, the Canada Business Corporations Act, or CBCA, effective June 1, 2006. In July 2020, CSI filed articles of continuance, or the articles, to change its jurisdiction from the federal jurisdiction of Canada to the provincial jurisdiction of the Province of British Columbia. As a result, CSI is governed by the British Columbia Business Corporation Act, or the BCBCA, and its affairs are governed by its notice of articles and the articles. CSI and its subsidiaries (collectively, the “Company”) design, develop, and manufacture solar wafers, cells and solar power products. In recent years, the Company has increased investment in, and management attention on its total solutions business, which primarily consists of solar power project development and sale, partial ownership of solar projects, battery storage solutions, EPC and development services, O&M and asset management services, operating solar power and energy storage projects and sales of electricity, and sales of solar system kits. As of December 31, 2020, major subsidiaries of CSI are included in Appendix 1. In July 2020, the Company announced its plan to carve-out and publicly list its legacy Module and System Solutions (“MSS”) subsidiary, CSI Solar Co., Ltd. (“CSI Solar Co”), in China (“the IPO”). In preparation for the IPO, the Company successfully completed the restructuring of its business segments during the fourth quarter of 2020. The main change being the transfer and inclusion of the China Energy business within the scope of CSI Solar Co, refer to Note 22 for further information. On September 30, 2020, the Company announced a RMB1.78 billion (approximately $261,332) capital raising for CSI Solar Co, to qualify CSI Solar Co for the planned carve-out IPO in China and bring in leading institutional investors and strategic partners (“third-party investors”). The third-party investors have agreed to purchase existing CSI Solar Co shares from the Company for an aggregate of RMB1.50 billion (approximately $219,000) at an equity valuation of RMB7.50 billion (approximately $1,100,000). At the same time, selected employees also purchased existing CSI Solar Co shares from the Company for an aggregate of RMB31 million (approximately $4,500) at the same valuation. As of December 31, 2020, $224,553 of share purchase proceeds were fully received and recorded as non-controlling interests in subsidiaries on the consolidated balance sheets. In addition, CSI Solar Co approved an employee incentive plan (the “ESOP scheme”) and utilized a limited liability partnership (the “LLP”) as a vehicle to hold CSI Solar Co shares that will be used under the ESOP scheme. Eligible CSI Solar Co directors and employees and board members have collectively agreed to subscribe to equity interest in the LLP for an aggregate of RMB248 million ($36,342) at a discount of 30%, or at an equity valuation of RMB5.25 billion (approximately $768,000), for which the vesting conditions include the successful completion of the IPO and service period. The ESOP scheme will be accounted for based on the grant date fair value which equals to the value of the discount benefited by the ESOP scheme participants. Compensation cost recognized was nil in the year ended December 31, 2020. Compensation cost will be recognized over the vesting period upon and after completion of IPO. As of December 31, 2020, $36,342 of subscription advances were fully received and recorded as other payables on the consolidated balance sheets. As of December 31, 2020, the third-party investors and Canadian Solar employees, in aggregate, owned 20.4% of CSI Solar Co. The Company’s wholly-owned global project development business, its Global Energy (formerly known as Energy) subsidiary, is not part of this transaction. |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). (b) Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has a controlling financial interest or variable interest entities (“VIEs”) for which the Company is a primary beneficiary. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. All intercompany balances and transactions between the Company and its subsidiaries have been eliminated in consolidation. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (b) Basis of consolidation (Continued) The Company consolidates VIEs when the Company is the primary beneficiary. VIEs are entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders, as a group, lack one or more of the following characteristics: (a) direct or indirect ability to make decisions; (b) obligation to absorb expected losses; or (c) right to receive expected residual returns. VIEs must be evaluated quantitatively and qualitatively to determine the primary beneficiary, which is the reporting entity that has (a) the power to direct activities of a VIE that most significantly impact the VIEs economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. A VIE can have only one primary beneficiary, but may not have a primary beneficiary if no party meets the criteria described above. When evaluating whether the Company is the primary beneficiary of a VIE, and must therefore consolidate the entity, the Company performs a qualitative analysis that considers the design of the VIE, the nature of its involvement and the variable interests held by other parties. If that evaluation is inconclusive as to which party absorbs a majority of the entity’s expected losses or residual returns, a quantitative analysis is performed to determine the primary beneficiary. For the Company’s consolidated VIEs, the Company has presented in note 10, to the extent material, the assets of its consolidated VIEs that can only be used to settle specific obligations of the consolidated VIE, and the liabilities of its consolidated VIEs for which creditors do not have recourse to its general assets outside of the consolidated VIE. All intercompany accounts and transactions between the Company and its consolidated VIEs have been eliminated in consolidation. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (c) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition for sales of solar power projects, EPC and development services accounted for under a cost-based input method, allowance for credit losses and advances to suppliers, valuation of inventories and provision for firm purchase commitments, provision for contingent liability, impairment of long-lived assets and project assets, the estimated useful lives of long-lived assets, determination of assets retirement obligation (“ARO”), discount rates used to measure operating lease liabilities, accrual for warranty and the recognition of the benefit from the purchased warranty insurance, fair value estimate of financial instruments including warrants and other types of derivative, accrual for uncertain tax positions, valuation allowances for deferred tax assets, applying acquisition method of accounting to business acquisitions and the grant-date fair value of share-based compensation awards and related forfeiture rates. (d) Cash and cash equivalents and restricted cash Cash and cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and have original maturities of three months or less when acquired. Restricted cash represents amounts held by banks, which are not available for the Company’s general use, as security for issuance of letters of credit, short-term notes payable and bank borrowings. Upon maturity of the letters of credit, repayment of short-term notes payable or bank borrowings, the deposits are released by the bank and become available for general use by the Company. (e) Accounts receivable, unbilled Accounts receivable, unbilled represents a contract asset for revenue that has been recognized in advance of billing the customer. The Company uses a cost-based input method to recognize revenue from EPC and development services when all relevant revenue recognition criteria have been met. Under this accounting method, revenue may be recognized in advance of billing the customer, which results in the recording of accounts receivable, unbilled. Once the Company meets the billing criteria under such contract, the rights to consideration becomes unconditional, it bills the customer and reclassifies the unbilled balance to accounts receivable trade. Billing requirements vary by contract, but are generally structured around completion of certain construction milestones. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (f) Allowance for credit losses Before 2020, the Company determined its allowance for doubtful accounts by actively monitoring the financial condition of its customers to determine the potential for any nonpayment of accounts receivable trade, advances to suppliers and other receivables. In determining its allowance for doubtful accounts, the Company also considered other economic factors, such as aging trends. The Company believed that its process of specific review of customers, combined with overall analytical review, provided an effective evaluation of ultimate collectability of trade receivables. Provisions for allowance for doubtful accounts were recorded as general and administrative expenses in the consolidated statements of operations. After the adoption of ASU 2016-13 “Financial Instruments—Credit Losses (Topic 326)” beginning on January 1, 2020, the financial instruments are presented net of an allowance for credit losses. The Company establishes current expected credit losses (“CECL”) through an assessment based on external credit rating, internal credit rating and historical loss rates of debtors. Where CECL is measured on a collective basis or cater for cases where evidence at the individual instrument level may not yet be available, the financial instruments are grouped on the aging status; and nature, size and industry of debtors. Refer to section (ak) of this Note for further details of the adoption of this ASU. The Company began purchasing credit insurance from insurers, such as the China Export & Credit Insurance Corporation, since 2009 for certain of its accounts receivable trade in order to reduce its exposure to bad debt loss. The Company provides an allowance for accounts receivable trade using primarily a specific identification methodology. An allowance is recorded based on the likelihood of collection from the specific customer regardless whether such account is covered by credit insurance. At the time the claim is made, the Company records a receivable from these insurers equal to the expected recovery up to the amount of the specific allowance. The Company had recorded a receivable from these insurers in prepaid expenses and other current assets of $166 and $386 as of December 31, 2019 and 2020, respectively and a corresponding reduction in bad debt expense. (g) Advances to suppliers The Company makes prepayments to certain suppliers and such amounts are recorded in advances to suppliers in the consolidated balance sheets. Advances to suppliers expected to be utilized within twelve months as of each balance sheet date are recorded as current assets and the portion expected to be utilized after twelve months are classified as non-current assets in the consolidated balance sheets. (h) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by the weighted-average method. Cost of inventories consists of direct materials and, where applicable, direct labor costs, tolling costs and those overhead costs that have been incurred in bringing the inventories to their present location and condition. Adjustments are recorded to write down the cost of obsolete and excess inventories to the estimated net realizable value based on historical and forecast demand. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (i) Project assets Project assets consist primarily of capitalized costs relating to solar power projects in various stages of development prior to the intended sale of the solar power projects to a third party. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power system. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, solar modules and related equipment. Interest costs incurred on debt during the construction phase and all deferred financing costs amortized during the construction phase are also capitalized within project assets. Solar power projects are preliminarily classified as project assets unless the Company has intention not to sell them to third parties. In that case, they will be classified as solar power systems on the balance sheet. During the development phase, solar power projects are accounted for in accordance with the recognition, initial measurement and subsequent measurement subtopics of ASC 970-360, as they are considered in substance real estates. The costs to construct solar power projects are presented as operating activities or investing activities in the consolidated statement of cash flows, if they are related to project assets or solar power systems, respectively. While the solar power projects are in the development phase, they are generally classified as non-current assets, unless it is anticipated that the sale will occur within one year. Appropriateness of the classification of the solar power projects is assessed based on the circumstances on each balance sheet date. Solar power projects that the Company intends to sell within one year, which meet the criteria of ASC 360, are classified as project assets-current. Solar power projects that the Company intends to hold and operate to generate electricity are classified as solar power systems. The Company reviews project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. The Company considers a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets. The Company examines a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, permitting, capital cost, market pricing or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, the Company impairs the project asset and adjusts the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operations. Project assets are often held in separate legal entities which are formed for the special purpose of constructing the project assets, which the Company refers to as “project companies”. The Company consolidates project companies as described in note 2(b) above. The cash paid to the non-controlling interest in connection with disposal of such project companies was recorded as a financing activity in the consolidated statement of cash flows. The Company does not depreciate the project assets. Any revenue generated from a solar power system connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. If circumstances change, and the Company intends to operate the project assets for the purpose of generating income from the sale of electricity, the project assets will be reclassified to solar power systems. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (j) Business combination Business combinations are recorded using the acquisition method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. The Company charges acquisition related costs that are not part of the purchase price consideration to general and administrative expenses as they are incurred. These costs typically include transaction and integration costs, such as legal, accounting, and other professional fees. (k) Assets acquisition When the Company acquires other entities, if the assets acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on the cost, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s books. If the consideration given is not in the form of cash (that is, in the form of non cash assets, liabilities incurred, or equity interests issued), measurement is based on either the cost to the acquiring entity or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair value and does not give rise to goodwill. (l) Property, plant and equipment Property, plant and equipment is recorded at cost less accumulated depreciation. The cost of property, plant and equipment comprises its purchase price and any directly attributable costs, including interest costs capitalized during the period the asset is brought to its working condition and location for its intended use. The Company expenses repair and maintenance costs as incurred. Depreciation is computed on a straight-line basis over the following estimated useful lives: Buildings 20 years Leasehold improvements Over the shorter of the lease term or their estimated useful lives Machinery 5 Furniture, fixtures and equipment 5 years Motor vehicles 5 years Costs incurred in constructing new facilities, including progress payments, capitalized interests and other costs relating to the construction, are capitalized and transferred to property, plant and equipment on completion and depreciation commences from that time. For property, plant and equipment that has been placed into service, but is subsequently idled temporarily, the Company continues to record depreciation expense during the idle period. The Company adjusts the estimated useful life of the idled assets if the estimated useful life has changed. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (m) Solar power systems Solar power systems comprised of ground-mounted utility-scale projects that the Company intends to hold for use. The solar power systems are stated at cost less accumulated depreciation. The cost consists primarily of direct costs incurred in various stages of development prior to the commencement of operations. For a self-developed solar power system, the actual cost capitalized is the amount of the expenditure incurred for the application of the feed-in tariff (“FIT”) or other similar power purchase agreements (“PPA”), permits, consents, construction costs, interest costs capitalized, and other costs capitalized. For a solar power system acquired from third parties, the initial costs include the consideration transferred and certain direct acquisition costs. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When solar power systems is retired, or otherwise disposed of, the cost and accumulated depreciation is removed from the balance sheets and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is recognized using the straight-line method over the estimated useful lives of the solar power systems of 20 (n) Intangible assets Intangible assets primarily represent the technical know-how and computer software purchased from third parties. Intangible assets are recorded at fair value at the time of acquisition less accumulated amortization, if applicable. Amortization is recorded according to the following table on a straight-line basis for all intangible assets: Technical know-how 10 years Computer software 1 (o) Prepaid land use rights Prepaid land use rights, in substance right-of-use assets recorded according to ASC 842 from January 1, 2019, represent amounts paid for the use right of lands located in China (“PRC”). Amounts are charged to earnings ratably over the lease periods of 20 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (p) Investments in affiliates The Company uses the equity method of accounting for the investments. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The amount associated with the share of earnings is considered as return on investment, and the rest amount is considered as return of investment. Investments are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial conditions and near term prospects of the affiliates; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. During the years ended December 31, 2018, 2019 and 2020, the Company recorded $5,738, nil and $24,060 of impairment charges on its investments, respectively. (q) Impairment of long-lived assets The Company assesses the recoverability of the carrying value of long-lived assets when an indicator of impairment has been identified. The Company reviews the long-lived assets each reporting period to assess whether impairment indicators are present. For purposes of recognition and measurement of an impairment loss, a long-lived asset or assets is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For long-lived assets, when impairment indicators are present, the Company compares undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the asset group’s carrying value to determine if the asset group is recoverable. Assessments also consider changes in asset group utilization, including the temporary idling of capacity and the expected timing of placing this capacity back into production. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company will recognize an impairment loss based on the fair value of the assets. The Company recorded impairment charges for long-lived assets of $30,968, $21,866 and $11,854 for the years ended December 31, 2018, 2019 and 2020, respectively. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (r) Interest capitalization The Company capitalizes interest costs as part of the historical costs of acquiring or constructing certain assets during the period of time required to get the assets ready for their intended use or sell the asset to a customer. The Company capitalizes interest costs to the extent that expenditures to acquire, construct, or develop an asset have occurred and interest costs have been incurred. Interest capitalized for property, plant and equipment, or solar power systems is depreciated over the estimated useful life of the related asset, as the qualifying asset is placed into service. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold and all revenue recognition criteria are met. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. (s) Assets retirement obligation Certain jurisdictions in which the Company’s project assets are located or certain land lease agreements require the removal of the solar power systems when the project is decommissioned. Assets retirement obligation (“ARO”) for the estimated costs of decommissioning associated with long-lived assets at a future date are accounted for in accordance with ASC 410-20, Asset Retirement Obligations (“ASC 410-20”). ASC 410-20 requires an entity to recognize the fair value of a liability for an ARO in the period in which it is incurred and a reasonable estimate of fair value can be made. Upon initial recognition of a liability for an ARO, the asset retirement cost is capitalized by increasing the carrying amount of the related long-lived asset by the same amount. Over time, the liability is accreted to its expected future value, while the capitalized cost is depreciated over the useful life of the related asset. The Company’s ARO included in solar power systems was not material as of December 31, 2019 and 2020. (t) Leases Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), as amended (“ASC 842”) for its lease arrangements, which were recorded under ASC 840, Leases, before implementation. Upon adoption of ASC 842, the Company elected to use the remaining lease term as of January 1, 2019 in the estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, the Company use the discount rate as of the commencement date of the lease, incorporating the entire lease term. The Company, as a lessee, has both finance and operating lease arrangements. Right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheets include operating lease agreements. Finance lease agreements are recorded in property, plant and equipment, other payables and other non-current liabilities on the consolidated balance sheets. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. The Company elected the practical expedient to combine the lease and related non-lease components for all existing leases. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (t) Leases (Continued) The Company determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. At the commencement date of a lease, the Company determines the classification of the lease based on the relevant factors and presents and records a right-of- use (“ROU”) asset and lease liability. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. Variable lease payments are excluded from the ROU asset and lease liability calculations and are recognized in the period which the obligations for those payments are incurred. Operating lease ROU assets also include any lease prepayments made, initial direct costs and deferred rent if any and exclude lease incentives. As the rate implicit in the Company’s operating leases is not typically readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Some of the Company’s lease agreements include options to extend or terminate the lease, which are not included in its minimum lease terms unless they are reasonably certain to be exercised. All operating lease expenses are fixed, which are accounted for on a straight-line basis over the lease term and that of finance lease include interest and amortization expenses incurred during the current year. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial lease term of 12 months or less are not recorded on the consolidated balance sheet. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in consolidated statements of operations. The Company assesses ROU assets for impairment quarterly. When events or circumstances indicate the carrying value may not be recoverable, the Company evaluates the net book value of the asset for impairment by comparison to the projected undiscounted future cash flows. If the carrying value of the asset is determined to not be recoverable and is in excess of the estimated fair value, the Company recognizes an impairment charge in asset impairments on its consolidated statements of income. (u) Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (v) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net tax loss carry-forwards and credits using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. Income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances; (ii) current tax expense, which represents the amount of tax payable to or receivable from a taxing authority; and (iii) non-current tax expense, which represents the increases and decreases in amounts related to uncertain tax positions from prior periods and not settled with cash or other tax attributes. The Company only recognizes tax benefits related to uncertain tax positions when such positions are more likely than not of being sustained upon examination. For such positions, the amount of tax benefit that the Company recognizes is the largest amount of tax benefit that is more than fifty percent likely of being sustained upon the ultimate settlement of such uncertain tax position. The Company records penalties and interests associated with the uncertain tax positions as a component of income tax expense. The Company uses the flow-through method to account for investment tax credits earned on qualifying projects placed into service. Under this method the investment tax credits are recognized as a reduction to income tax expense in the year the credit arises. The use of the flow-through method also results in a basis difference from the recognition of a deferred tax liability and an immediate income tax expense for reduced future tax depreciation of the related assets. Such basis differences are accounted for pursuant to the income statement method. (w) Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring a promised good or service to a customer. Solar power products and materials Solar power products, including solar modules, other solar power products, solar system kits and materials related to solar power products are transferred at a point in time when the customer obtains control of the products, which is typically upon shipment or delivery depending on the contract terms. Revenues of solar product sales also include reimbursements received from customers for shipping and handling costs. Sales agreements typically contain the assurance-type customary product warranties but do not contain any post-shipment obligations nor any return or credit provisions, see note 2 (aa) for the Company’s accounting policy for warranty. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (w) Revenue recognition (Continued) The Company assessed whether it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the products that will be transferred to the customer. As of December 31, 2019 and 2020, the Company had inventories of $7,701 and $9,548, respectively, relating to sales to customers where revenues were not recognized because the collection of payment was determined to be not probable. The delivered products remain as inventories on consolidated balance sheets, regardless of whether the control has been transferred. If the collection of payment becomes probable in the future, the Company would then recognize revenue, adjust inventories and recognize cost of revenues. O&M and asset management services O&M and asset management services are transferred over time when customers receive and consume the benefits provided by the Company’s performance under the terms of service arrangements. Revenues from O&M and asset management services are recognized over time based on the work completed to date which does not require re-performances and the costs of O&M and asset management services are expensed when incurred. Battery storage solutions, EPC and development services The Company recognizes revenue for sales of battery storage solutions, EPC and development services over time based on the estimated progress to completion using a cost-based input method. In app |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2020 | |
ALLOWANCE FOR CREDIT LOSSES | |
ALLOWANCE FOR CREDIT LOSSES | 3. ALLOWANCE FOR CREDIT LOSSES Allowance for credit losses is comprised of allowances for accounts receivable trade, advances to suppliers and other receivables. Accounts receivable trade, net consisted of the following: At December 31, At December 31, 2019 2020 $ $ Accounts receivable trade, gross 466,360 449,251 Allowance for credit losses (29,545) (40,293) Accounts receivable trade, net 436,815 408,958 Advances to suppliers, net consisted of the following: At December 31, At December 31, 2019 2020 $ $ Advances to suppliers, gross 109,156 299,019 Allowance for credit losses (20,281) (19,700) Advances to suppliers, net 88,875 279,319 Other receivable, net consisted of the following: At December 31, At December 31, 2019 2020 $ $ Other receivable, gross 181,524 238,779 Allowance for credit losses (11,431) (8,802) Other receivable, net 170,093 229,977 3. ALLOWANCE FOR CREDIT LOSSES (Continued) The following table presents the change in the allowances for credit losses related to the Company’s accounts receivable trade and advances to suppliers during 2020: Advances to Accounts Receivable Suppliers and Trade Other Receivable $ $ Balance as of December 31, 2017 32,941 29,111 Allowances made during the year, net 869 2,112 Accounts written-off against allowances (297) — Foreign exchange effect (780) (593) Balance as of December 31, 2018 32,733 30,630 Allowances made (reversed) during the year, net (1,386) 2,657 Accounts written-off against allowances (309) (1,452) Foreign exchange effect (1,493) (123) Balance as of December 31, 2019 29,545 31,712 Cumulative-effect adjustment for the adoption of ASU 2016-13 — — Provision for credit losses, net 11,387 2,280 Writeoffs (639) (5,490) Balance as of December 31, 2020 40,293 28,502 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
INVENTORIES | |
INVENTORIES | 4. INVENTORIES Inventories consist of the following: At December 31, At December 31, 2019 2020 $ $ Raw materials 75,722 90,308 Work-in-process 74,105 69,132 Finished goods 404,243 536,541 554,070 695,981 Finished goods include modules of $84,202 and $181,012 as of December 31, 2019 and 2020, respectively, that allow solar energy systems to qualify for the U.S. Federal Investment Tax Credit by satisfying the 5% safe harbor method outlined in the U.S. Internal Revenue Service (IRS) guidance notice. In 2018, 2019 and 2020, inventory was written down by $14,646, $19,447 and $42,907, respectively, to reflect the lower of cost and net realizable value. |
PROJECT ASSETS
PROJECT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
PROJECT ASSETS | |
PROJECT ASSETS | 5. PROJECT ASSETS Project assets consist of the following: At December 31, At December 31, 2019 2020 $ $ Project assets — Acquisition cost 55,158 44,549 Project assets — EPC and other cost 1,031,976 1,092,917 1,087,134 1,137,466 Current portion 604,083 747,764 Non-current portion 483,051 389,702 The Company recorded impairment charges and write-off for project assets of $9,016, $20,194 and $369 for the years ended December 31, 2018, 2019 and 2020, respectively. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | 6. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consist of the following: At December 31, At December 31, 2019 2020 $ $ Buildings 453,712 533,647 Leasehold improvements 14,225 14,804 Machinery 1,074,460 1,191,780 Furniture, fixtures and equipment 64,117 75,656 Motor vehicles 6,351 7,643 Land 20,451 20,231 1,633,316 1,843,761 Accumulated depreciation (598,297) (827,601) Impairment (45,437) (52,149) Subtotal 989,582 964,011 Construction in process 56,453 193,720 Property, plant and equipment, net 1,046,035 1,157,731 Depreciation expense of property, plant and equipment was $120,834, $148,034 and $197,600 for the years ended December 31, 2018, 2019 and 2020, respectively. Construction in process primarily represents production facilities under construction and the machinery under installation. |
SOLAR POWER SYSTEMS, NET
SOLAR POWER SYSTEMS, NET | 12 Months Ended |
Dec. 31, 2020 | |
SOLAR POWER SYSTEMS, NET | |
SOLAR POWER SYSTEMS, NET | 7. SOLAR POWER SYSTEMS, NET Solar power systems, net consist of the following: At December 31, At December 31, 2019 2020 $ $ Solar power systems in operation 70,449 182,232 Solar power systems under construction 4,830 6,565 Accumulated depreciation (22,322) (30,535) Solar power systems, net 52,957 158,262 Depreciation expense of solar power systems was $3,756, $6,379 and $6,396 for the years ended December 31, 2018, 2019 and 2020, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET The following table summarizes the Company’s intangible assets: Gross Carrying Accumulated At December 31, 2020 Amount Amortization Net $ $ $ Technical know-how 1,543 (1,525) 18 Computer software 41,085 (18,674) 22,411 Total intangible assets, net 42,628 (20,199) 22,429 Gross Carrying Accumulated At December 31, 2019 Amount Amortization Net $ $ $ Technical know-how 1,428 (1,425) 3 Computer software 38,205 (15,417) 22,788 Total intangible assets, net 39,633 (16,842) 22,791 Amortization expense for the years ended December 31, 2018, 2019 and 2020 were $4,666, $5,310 and $5,122, respectively. Amortization expenses of the above intangible assets are expected to be approximately $4,443, $3,662, $3,035, $2,503, $2,034 and $6,752 for the years ended December 31, 2021, 2022, 2023, 2024, 2025 and thereafter, respectively. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 9. FAIR VALUE MEASUREMENT The Company measures at fair value its financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability (i.e., an exit price) on the measurement date in an orderly transaction between market participants. As of December 31, 2019 and 2020, the Company’s financial assets and liabilities were measured at fair value on a recurring basis in periods subsequent to their initial recognition all using the significant other observable inputs, which are Level 2 inputs. Foreign exchange option and forward contracts The Company entered into certain foreign currency derivative contracts to protect against volatility of future cash flows caused by the changes in foreign exchange rates. The foreign currency derivative contracts do not qualify for hedge accounting and, as a result, the changes in fair value of the foreign currency derivative contracts are recognized in the consolidated statements of operations. The Company’s foreign currency derivative instruments relate to foreign exchange options or forward contracts involving major currencies such as Renminbi, Canadian dollars, Brazilian reals, Japanese yen and Australian dollars. Since its derivative instruments are not traded on an exchange, the Company values them using valuation models. Interest rate yield curves and foreign exchange rates are the significant inputs into these valuation models. These inputs are observable in active markets over the terms of the instruments the Company holds, and accordingly, the fair value measurements are classified as Level 2 in the hierarchy. The Company considers the effect of its own credit standing and that of its counterparties in valuations of its derivative financial instruments. Interest rate swap In 2016, interest rate swap contracts of total notional amounts of approximately $399,000 were entered into for Recurrent projects and these were designated as cash flow hedges. The interest rate swap contracts were transferred along with the sale of the underlying projects, and the fair value of the residual notional contract amount of approximately $47,439 related to the Roserock back-leverage loan was recorded as derivative liabilities of $2,170 on the balance sheet as of December 31, 2019. In July 2020, the Company completed the sale of its class B membership interests in the Roserock project to an unrelated third party, and consequently all of the Company’s interest rate swap contracts were paid off following the loan repayment. The estimated fair value of interest rate swaps was measured based on observable market data, which were considered Level 2 inputs. 9. FAIR VALUE MEASUREMENT (Continued) The fair value of derivative instruments on the consolidated balance sheets as of December 31, 2019 and 2020 and the effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020 are as follows: Fair Value of Derivative Assets At December 31, 2019 At December 31, 2020 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative assets — current 5,097 Derivative assets — current 22,178 Foreign exchange option contracts Derivative assets — current 450 Derivative assets — current 1,173 Total 5,547 Total 23,351 Fair Value of Derivative Liabilities At December 31, 2019 At December 31, 2020 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative liabilities — current 10,127 Derivative liabilities — current 10,753 Foreign exchange option contracts Derivative liabilities — current 25 Derivative liabilities — current 2 Interest rate swap Derivative liabilities — current 329 Derivative liabilities — current — Interest rate swap Derivative liabilities — non-current 1,841 Derivative liabilities — non-current — Total 12,322 Total 10,755 Amount of Gain (Loss) Recognized in Statements Location of of Operations Gain (Loss) Recognized Years Ended December 31 in Statements of Operations 2018 2019 2020 $ $ $ Foreign exchange forward contracts Gain (loss) on change in fair value of derivatives (16,414) (20,249) 49,807 Foreign exchange option contracts Gain (loss) on change in fair value of derivatives (2,023) (1,022) 1,376 Interest rate swap Loss on change in fair value of derivatives (793) (947) (1,182) Total (19,230) (22,218) 50,001 Other fair value measurements The Company measures certain long-lived assets or long-term investments at fair value on a non-recurring basis in periods after initial measurement in circumstances when the fair value of such assets is below its recorded cost and impairment is required. The Company recorded impairment charges for certain manufacturing asset group of $30,968, $21,866 and $11,854 for the years ended December 31, 2018, 2019 and 2020, respectively. The fair value of these assets was measured based on prices offered by unrelated third-party willing buyers and classified as Level 3 fair value measurements as the offering prices are not observable. The impairment was recorded in general and administrative expenses of the CSI Solar segment. 9. FAIR VALUE MEASUREMENT (Continued) Other fair value measurements (Continued) The Company also holds financial instruments that are not recorded at fair value in the consolidated balance sheets, but whose fair value is required to be disclosed under the U.S. GAAP. The carrying values of cash and cash equivalents, restricted cash, trade receivables, billed and unbilled, amounts due from related parties, accounts payables, short-term notes payable, amounts due to related parties and short-term borrowings approximate their fair values due to the short-term maturity of these instruments. Long-term borrowings were $619,477 and $446,090 as of December 31, 2019 and 2020, respectively, which approximate their fair values since most of the borrowings contain variable interest rates. The fair value of long-term borrowings was measured based on discounted cash flow approach, which is classified as Level 2 as the key inputs can be corroborated with market data. The carrying value of the Company’s outstanding convertible notes was nil and $223,214 as of December 31, 2019 and 2020, respectively, which approximates the fair value. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2020 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 10. VARIABLE INTEREST ENTITIES Since 2016, the Company, through its wholly-owned subsidiary, CSE Japan Investment Company Limited, entered into silent partnership agreements with various Japan project companies, to securitize project finance bonds and other type of project assets. Under the silent partnership agreements, the project entities are considered VIEs in which the Company has no equity interests, but is entitled to substantially all of the economic interests of the projects. In addition, the Company has the power to make decisions over the activities that most significantly impact the economic performance of the projects under the asset management agreement signed simultaneously between the project companies and a wholly-owned subsidiary, Canadian Solar Project K.K. As such, the Company concluded it was the primary beneficiary of the project companies and thus these project companies were accounted for as consolidated VIEs since their establishment. As of December 31, 2019 and 2020, the carrying amounts and classifications of the consolidated VIEs’ major assets and liabilities with immaterial items combined, excluding intercompany balances which are eliminated upon consolidation, included in the Company’s consolidated balance sheets are as follows: At December 31, At December 31, 2019 2020 $ $ Cash 14,011 42,064 Project assets 197,366 337,836 Other assets 12,091 79,580 Total assets 223,468 459,480 Short-term borrowings 139,708 180,773 Long-term borrowings — 52,408 Other liabilities 66,569 60,845 Total liabilities 206,277 294,026 Net income and overall cash flow activities during the year are immaterial to the consolidated financial statements. |
INVESTMENTS IN AFFILIATES
INVESTMENTS IN AFFILIATES | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENTS IN AFFILIATES | |
INVESTMENTS IN AFFILIATES | 11. INVESTMENTS IN AFFILIATES Investments in affiliates consist of the following: At December 31, 2019 2020 Carrying Ownership Carrying Ownership Value Percentage Value Percentage $ (%) $ (%) Canadian Solar Infrastructure Fund, Inc. 19,162 14.66 19,980 14.66 Suzhou Financial Leasing Co., Ltd. 16,050 6 23,969 6 RE Roserock Holdings LLC (“Roserock”) 83,034 49 — — Others 34,582 15-49 34,342 15-49 Total 152,828 78,291 In 2017, Canadian Solar Infrastructure Fund, Inc. (“CSIF”) completed its initial public offering. As of December 31, 2019 and 2020, the Company owned 14.66% of total units of CSIF. One out of the three members of the board of directors of CSIF represents the Company. The quorum for a board resolution of CSIF is a majority of the members of the board of directors, and the adoption of a resolution requires a majority of the votes presents. As such, the Company is considered having significant influence over the investee and the equity method is used in this investment. CSI Solar Co established an entity, Suzhou Financial Leasing Co., Ltd., in 2015, in which the Company holds 6% voting interests. One of five board members is designated by CSI Solar Power Group, and as such CSI Solar Power Group is considered having significant influence over the investee and the equity method is used in this investment. In December 2018, the Company wrote down the class B membership interests in Roserock project to its anticipated resell value by $4,995. In July 2020, the Company completed the sale of its class B membership interests in Roserock project to an unrelated third party, and recognized $18,486 of loss from this transaction as investment loss in the consolidated statements of operations. In September 2018, the Company made full impairment charge of $700 on investment in eNow, Inc., in which the Company holds 10% voting interests, due to deterioration of the investee’s financial position. In December 2020, the Company fully disposed of its ownership of Suzhou iSilver Materials Co., Ltd to an unrelated third party, and recognized $13,140 of gain from this transaction as investment gain in the consolidated statements of operations. Equity in earnings of unconsolidated investees were $5,908, $28,948 and $10,779 for the years ended December 31, 2018, 2019 and 2020, respectively. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2020 | |
LEASE | |
LEASE | 12 . LEASE The Company leases office space, office equipment and vehicles for solar power plants construction, and manufacturing facilities in various regions where the Company operates. Leased assets are mainly located in PRC, United States and Canada. The operating and financing lease expenses were $20,905 and $24,696, respectively, for the year ended December 31, 2018, as defined under the previous lease accounting guidance of ASC Topic 840. 12 . LEASE (Continued) Upon adoption of ASC 842, the leases considered as ROU assets have various terms of up to twenty years. The Company also has certain leases with terms of 12 months or less, which are not recorded on the consolidated balance sheet. The components of lease expenses were as follows: Year ended Year ended December 31, 2019 December 31, 2020 $ $ Finance lease cost: Amortization of right-of-use assets 18,900 8,036 Interest on lease liabilities 3,213 1,497 Operating fixed lease cost 17,619 19,630 Short-term lease cost 8,920 850 Total lease cost 48,652 30,013 Other supplemental information related to leases is summarized below: Year ended Year ended December 31, 2019 December 31, 2020 $ $ Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from finance lease (3,213) (1,497) Operating cash outflows from operating lease (15,866) (20,589) Financing cash outflows from finance lease (33,614) (19,163) ROU assets obtained in exchange of new finance lease liabilities in non-cash transaction 7,300 10,666 ROU assets obtained in exchange of new operating lease liabilities in non-cash transaction 18,222 14,892 ROU assets disposed through early termination of operating leases in non-cash transaction — (6,572) At December 31, At December 31, 2019 2020 Weighted average of remaining operating lease term - finance leases (in years) 1.41 0.90 Weighted average of remaining operating lease term - operating leases (in years) 3.03 3.07 Weighted average of operating lease discount rate - finance lease 5.82 % 5.54 % Weighted average of operating lease discount rate - operating lease 4.36 % 4.18 % 12 . LEASE (Continued) As of December 31, 2020, maturities of operating and finance lease liabilities were as follows: Operating Lease Finance Lease Total Lease Payment Payment Payment $ $ $ Year Ending December 31: 2021 14,374 22,706 37,080 2022 7,427 2,514 9,941 2023 3,632 — 3,632 2024 1,242 — 1,242 2025 369 — 369 Thereafter 1,859 — 1,859 Total future minimum lease payments 28,903 25,220 54,123 Less: imputed interest 467 963 1,430 NPV for future minimum lease payments 28,436 24,257 52,693 Analysis as: Short-term 15,204 21,887 37,091 Long-term 13,232 2,370 15,602 Total lease liabilities 28,436 24,257 52,693 As of December 31, 2019, maturities of operating and finance lease liabilities were as follows: Operating Lease Finance Lease Total Lease Payment Payment Payment $ $ $ Year Ending December 31: 2020 18,953 27,439 46,392 2021 12,980 13,087 26,067 2022 4,666 604 5,270 2023 2,541 — 2,541 2024 1,077 — 1,077 Thereafter 1,504 — 1,504 Total future minimum lease payments 41,721 41,130 82,851 Less: imputed interest 2,236 2,056 4,292 NPV for future minimum lease payments 39,485 39,074 78,559 Analysis as: Short-term 18,767 25,998 44,765 Long-term 20,718 13,076 33,794 Total lease liabilities 39,485 39,074 78,559 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
BORROWINGS | |
BORROWINGS | 13 . BORROWINGS Borrowings consist of the following: At December 31, At December 31, 2019 2020 $ $ Short-term borrowings 819,031 912,549 Long-term borrowings, current portion 114,089 289,736 Subtotal for short-term borrowings 933,120 1,202,285 Long-term borrowings on project assets — current (1) 286,173 198,794 Long-term borrowings 619,477 446,090 Total 1,838,770 1,847,169 (1) Certain long-term borrowings were classified as current liabilities because these borrowings are associated with certain solar power projects that are expected to be sold within one year. As of December 31, 2020, the Company had contractual credit facilities of $2,618,761, and $707,174 was available for draw down upon demand. In addition, as of December 31, 2020, the Company also had non-binding credit facilities of $966,270. As of December 31, 2020, $433,628 of the Company’s borrowings were non-recourse in nature. As of December 31, 2020, short-term borrowings of $628,519, long-term borrowings, current portion of $258,978, long-term borrowings on project assets – current of $198,794 and long-term borrowings of $351,431 were secured by property, plant and equipment with carrying amounts of $224,893, inventories of $243,124, prepaid land use rights of $9,509, restricted cash of $107,598, accounts receivable of $15,882, equity interest of $529,431 and project assets and solar power systems of $696,955. Significant long-term borrowings newly obtained during the year ended December 31, 2019 and 2020 were as follows: In 2019, Recurrent Energy, LLC entered into two credit facilities with syndicated financial institutions, which agreed to provide financing of $123,708 and $60,000, respectively. The proceeds from the credit facilities were available for purchasing solar modules and other eligible equipment that will allow solar energy systems to qualify for the U.S. Federal Investment Tax Credit by satisfying the 5% safe harbor method outlined in the U.S. Internal Revenue Service (IRS) guidance notice. The outstanding balance at December 2020 was $177,214 and requires repayment by 2022. The credit facilities are secured by the solar modules and certain project equity interests and is guaranteed by CSI. As of December 31, 2020, the Company met all the requirements of financial covenants. In April 2020, Canadian Solar New Energy Holding Co., Ltd. entered into a $30,000 facility agreement with China-Portuguese Speaking Countries Cooperation and Development Fund for the development and construction of solar projects in Brazil. The facility is unsecured, guaranteed by CSI, and matures in March 2023. The agreement does not contain any financial covenants or restrictions. As of December 31, 2020, the facility was fully drawn. 13. BORROWINGS (Continued) In July 2020, Recurrent Energy, LLC entered into a debt financing of $282,000 with a bank club led by Norddeutsche Landesbank to construct 327.5 MWp Maplewood solar power project in Pecos County, Texas. The loan is secured by project assets, guaranteed by CSI and will mature in September 2021. As of December 31, 2020, $203,747 was drawn and the Company met all the performance obligations. In August 2020, Recurrent Energy, LLC entered into a $75,000 development loan facility with Nomura Corporate Funding Americas, LLC. The loan facility is secured by certain project assets and equity interests of certain entities wholly-owned by Recurrent Energy, LLC, guaranteed by CSI and matures in August 2022. As of December 31, 2020, the loan was fully drawn. In October 2020, Canadian Solar International Limited entered into a working capital facility up to $50,000 with China Development Bank. The loan facility is unsecured, guaranteed by CSI Solar Co., Ltd. (formerly known as “CSI Power China Group Co., Ltd.”), and matures in November 2022. As of December 31, 2020, the loan was fully drawn. These obtained long-term borrowings mentioned above bear effective floating interest rates from 1.7% to 6.5%. Future principal repayments on the long-term borrowings are as follows. Included in the future principal repayment of 2021 are $198,794 of long-term borrowings on project assets – current, associated with certain solar power projects that are expected to be sold within one year: 2021 $ 488,530 2022 275,985 2023 71,563 2024 18,785 2025 2,912 Thereafter 76,845 Total 934,620 Less: future principal repayment related to long-term borrowings, current portion (488,530) Total long-term portion $ 446,090 13. BORROWINGS (Continued) Interest expenses Average effective interest rates on borrowings are as follows: At December 31, At December 31, 2019 2020 Short-term borrowings 4.86 % 3.26 % Long-term borrowings on project assets – current 3.65 % 3.63 % Long-term borrowings 5.43 % 4.37 % The Company capitalized interest costs incurred on borrowings obtained to finance construction of solar power projects or property, plant and equipment until the asset is ready for its intended use. The interests incurred during the years ended December 31, 2018, 2019 and 2020 are as follows: Years Ended December 31, 2018 2019 2020 $ $ $ Interest capitalized — project assets 15,462 10,794 10,197 Interest capitalized — property, plant and equipment 1,182 2,620 154 Interest expense 106,032 81,326 71,874 Total interest incurred 122,676 94,740 82,225 |
SHORT-TERM NOTES PAYABLE
SHORT-TERM NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2020 | |
SHORT-TERM NOTES PAYABLE | |
SHORT-TERM NOTES PAYABLE | 14. SHORT-TERM NOTES PAYABLE The Company enters into arrangements with banks whereby the banks issue notes to the Company’s vendors, which effectively serve to extend the payment date of the associated accounts payable. Vendors may present the notes for payment to a bank, including the bank issuing the note, prior to the stated maturity date, but generally at a discount from the face amount of the note. The Company is generally required to deposit restricted cash balances with the issuing bank, which are utilized to immediately repay the bank upon the banks’ settlement of the notes. Given the purpose of these arrangements is to extend the payment dates of accounts payable, the Company has recorded such amounts as short-term notes payable. As payments by the bank are immediately repaid by the Company’s restricted cash balances and other deposits with the same bank, the notes payable does not represent cash borrowings from the bank. As of December 31, 2019 and 2020, short-term notes payable was $544,991 and $710,636, respectively. |
ACCRUED WARRANTY COSTS
ACCRUED WARRANTY COSTS | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED WARRANTY COSTS | |
ACCRUED WARRANTY COSTS | 15. ACCRUED WARRANTY COSTS The Company’s warranty activity is summarized below: Years Ended December 31, 2018 2019 2020 $ $ $ Beginning balance 55,659 50,605 55,878 Warranty provision 13,188 28,044 26,931 Warranty costs incurred (16,732) (23,282) (46,067) Foreign exchange effect (1,510) 511 990 Ending balance 50,605 55,878 37,732 |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 16. RESTRICTED NET ASSETS As stipulated by the relevant laws and regulations applicable to PRC’s foreign investment enterprise, the Company’s PRC subsidiaries are required to make appropriations from net income as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) to non-distributable reserves, which include general reserve, enterprise expansion reserve and staff welfare and bonus reserve. The wholly-owned PRC subsidiaries are not required to make appropriations to the enterprise expansion reserve but appropriations to the general reserve are required to be made at not less than 10% of the profit after tax as determined under PRC GAAP. The board of directors determines the staff welfare and bonus reserve. The general reserve is used to offset future losses. The PRC subsidiaries may, upon a resolution passed by the stockholder, convert the general reserve into capital. The staff welfare and bonus reserve is used for the collective welfare of the employee of the subsidiaries. The enterprise expansion reserve is for the expansion of the PRC subsidiaries’ operations and can be converted to capital subject to approval by the relevant authorities. These reserves represent appropriations of the retained earnings determined in accordance with Chinese law. In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiaries are considered as restricted net assets amounting to $568,931 as of December 31, 2020. |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2020 | |
CONVERTIBLE NOTES | |
CONVERTIBLE NOTES | 17. CONVERTIBLE NOTES On September 16, 2020, the Company issued $200,000 of convertible notes (the “2020 Notes”). The Company granted the initial purchasers a 30-day option to purchase up to an additional $30,000 aggregate principal amount of the 2020 Notes. The option was fully exercised by initial purchasers on the same day. The key terms of the 2020 Notes are described as follows: Maturity date. Interest. Conversion. Redemption. As of December 31, 2020, the carrying value of the convertible notes was $223,214, net of unamortized issuance costs of $6,786. The debt issuance costs are being amortized through interest expense over the period from September 16, 2020, the date of issuance, to October 1, 2025, the date of expiration, using the effective interest rate method at the rate of 3.18%. The amortization expense was $388 for the year ended December 31, 2020. Coupon interest of $1,677 was recorded for the year ended December 31, 2020, and was reflected as other payables as of December 31, 2020. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 18. INCOME TAXES Income tax expenses (benefits) The provision for income taxes is comprised of the following: Years Ended December 31, 2018 2019 2020 $ $ $ Income (loss) before income taxes Canada 10,570 (61,880) (31,896) United States 61,377 8,319 (113,262) PRC including Hong Kong and Taiwan 178,050 204,632 189,398 Japan 27,555 29,335 50,642 Other 26,848 28,215 50,381 304,400 208,621 145,263 Current tax expense (benefit) Canada (1,846) (3,420) 36,226 United States (14,786) (4,803) (71,421) PRC including Hong Kong and Taiwan 27,285 44,622 30,276 Japan 5,325 13,229 18,941 Other 2,397 7,057 8,233 18,375 56,685 22,255 Deferred tax expense (benefit) Canada 12,117 (6,558) (10,792) United States 32,696 (2,412) 23,173 PRC including Hong Kong and Taiwan 2,653 (5,333) (17,998) Japan (3,381) (2,953) (10,571) Other (491) 2,637 (8,050) 43,594 (14,619) (24,238) Total income tax expense (benefit) Canada 10,271 (9,978) 25,434 United States 17,910 (7,215) (48,248) PRC including Hong Kong and Taiwan 29,938 39,289 12,278 Japan 1,944 10,276 8,370 Other 1,906 9,694 183 61,969 42,066 (1,983) The Company mainly operates in Canada, PRC, Japan, the United States and Hong Kong. 18. INCOME TAXES (Continued) Canada CSI was incorporated in Ontario, Canada and was subject to both federal and Ontario provincial corporate income taxes at a rate of 26.5% for the years ended December 31, 2018 and 2019, and for the period from January 2020 to June 2020. In July 2020, CSI filed articles of continuance, or the articles, to change its jurisdiction from the federal jurisdiction of Canada to the provincial jurisdiction of the Province of British Columbia. CSI is subject to federal, Ontario provincial and British Columbia provincial corporate income taxes at a rate of 26.5% for the period from July 2020 through December 31, 2020. Canadian Solar Solutions Inc. was incorporated in Ontario, Canada and is subject to both federal and Ontario provincial corporate income taxes at a rate of 25% for all years ended December 31, 2018, 2019 and 2020. United States Canadian Solar (USA) Inc. was incorporated in Delaware, U.S. and is subject to federal and state corporate income taxes at a rate of 24.8%, 22.9% and 22.2% for the years ended December 31, 2018, 2019 and 2020, respectively. Recurrent Energy Group Inc. was incorporated in Delaware, U.S. and is subject to federal and state corporate income taxes at a rate of 25.3%, 27.9% and 26.1% for the years ended December 31, 2018, 2019 and 2020, respectively. In March 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law. The CARES Act allows net operating losses incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years. As a result, the Company has received tax refund of $62,699 in 2020. Japan Canadian Solar Japan K.K. was incorporated in Japan and is subject to Japanese corporate income taxes at a normal statutory rate of approximately 32.0%, 31.8% and 31.8% for the years ended December 31, 2018, 2019 and 2020, respectively. Germany Canadian Solar EMEA GmbH was incorporated in Munich, Germany and is subject to German corporate income tax at a rate of approximately 33% for the years ended December 31, 2018, 2019 and 2020, respectively. Vietnam Canadian Solar Manufacturing Vietnam Co., Ltd was incorporated in Vietnam and is subject to Vietnamese corporate income taxes at a normal statutory rate of 10%. The Company enjoyed full tax exemption from 2016 to 2019 and uses a reduced statutory rate of 5% from 2020 to 2028. 18. INCOME TAXES (Continued) Thailand Canadian Solar Manufacturing (Thailand) Co.,Ltd. was incorporated in Thailand and is subject to Thailand corporate income taxes at a normal statutory rate of 20%. The Company currently has two Board of Investment certificates for full tax exemption which have different effective years. The licenses both started from year 2017, one of which will expire in year 2022 and the other in year 2025. Hong Kong Canadian Solar New Energy Holding Company Ltd and Canadian Solar International Ltd. were incorporated in Hong Kong, China, and are subject to Hong Kong profits tax at a rate of 16.5% for the years ended December 31, 2018, 2019 and 2020, respectively. PRC The other major operating subsidiaries, including CSI Solartronics (Changshu) Co., Ltd., CSI Solar Technologies Inc., CSI Cells Co., Ltd., Canadian Solar Manufacturing (Luoyang) Inc., CSI Solar Co., Ltd. (formerly “CSI Solar Power (China) Inc.”) and Canadian Solar Manufacturing (Changshu) Inc., and Suzhou Sanysolar Materials Technology Co., Ltd. were governed by the PRC Enterprise Income Tax Law (“EIT Law”). CSI Solartronics ( Changshu Solar Luoyang Certain of the Company’s PRC subsidiaries, such as CSI New Energy Holding and CSI Luoyang Manufacturing, were once HNTEs and enjoyed preferential enterprise income tax rates. These benefits have, however, expired. In 2020, Suzhou Sanysolar, CSI Cells, CSI Changshu Manufacturing, Changshu Tegu, CSI New Energy Development (Suzhou) (formerly “Suzhou Gaochuangte New Energy Development”), Canadian Solar Sunenergy (Suzhou) Co., Ltd. (merged with CSI Cells in 2020) and Changshu Tlian enjoyed preferential enterprise income tax rates. Reconciliation between the provision for income tax computed by applying Canadian federal and provincial statutory tax rates to income before income taxes and the actual provision and benefit for income taxes is as follows: Years Ended December 31, 2018 2019 2020 Combined federal and provincial income tax rate 27 % 27 % 27 % Effect of permanent difference (11) % (1) % 4 % Effect of different tax rate on earnings in other jurisdictions — % 3 % (6) % Effect of tax holiday (1) % (4) % (1) % Unrecognized tax provision 4 % (3) % (13) % Change in valuation allowance 7 % (3) % (14) % Effect of change in tax rate (3) % (1) % 2 % Others (3) % 2 % — % 20 % 20 % (1) % 18. INCOME TAXES (Continued) PRC (Continued) The aggregate amount and per share effect of tax holiday are as follows: Years Ended December 31, 2018 2019 2020 (In Thousands of U.S. Dollars, except per share data) The aggregate amount 3,089 7,956 1,287 Per share — basic 0.05 0.13 0.02 Per share — diluted 0.05 0.13 0.02 The components of the deferred tax assets and liabilities are presented as follows: At December 31, At December 31, 2019 2020 $ $ Deferred tax assets: Accrued warranty costs 8,326 8,699 Bad debt allowance 10,324 3,218 Inventory write-down 1,128 3,121 Future deductible expenses 20,731 24,454 Depreciation and impairment difference of property, plant and equipment and solar power systems 23,380 30,138 Accrued liabilities related to antidumping, countervailing and other duty costs and true-up charges 496 406 Government subsidies 8,927 16,461 Net operating losses carry-forward 112,710 85,850 Unrealized foreign exchange loss and capital loss 7,064 1,221 Interest limitation 2,767 1,956 Others 26,415 30,958 Total deferred tax assets, gross 222,268 206,482 Valuation allowance (70,627) (50,118) Total deferred tax assets, net of valuation allowance 151,641 156,364 Deferred tax liabilities: Derivative assets 217 996 Depreciation difference of property, plant and equipment 18,789 17,027 Insurance recoverable 15,771 785 Unrealized foreign exchange gain 10,984 10,746 Others 8,380 5,234 Total deferred tax liabilities 54,141 34,788 Net deferred tax assets 97,500 121,576 Analysis as: Deferred tax assets 153,963 170,656 Deferred tax liabilities (56,463) (49,080) Net deferred tax assets 97,500 121,576 18. INCOME TAXES (Continued) PRC (Continued) In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises in PRC earned after January 1, 2008, are subject to a 10% withholding income tax. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary difference attributable to excess of financial reporting basis over tax basis in the investment in a foreign subsidiary. However, a deferred tax liability is not recognized if the basis difference is not expected to reverse in the foreseeable future and is expected to be permanent in duration. As of December 31, 2020, all of the undistributed earnings of approximately $381,716 attributable to the Company’s PRC subsidiaries and affiliates are considered to be permanently reinvested, and no provision for PRC withholding income tax on dividend has been made thereon accordingly. Upon distribution of those earnings generated after January 1, 2008, in the form of dividends or otherwise, the Company would be subject to the then applicable PRC tax laws and regulations. Distributions of earnings generated before January 1, 2008 are exempt from PRC dividend withholding tax. The amounts of unrecognized deferred tax liabilities for these earnings are in the range of $19,086 to $38,172, as the withholding tax rate of the profit distribution will be 5% or 10% depends on whether the immediate offshore companies can enjoy the preferential withholding tax rate of 5%. Valuation allowance Movement of the valuation allowance is as follows: Years Ended December 31, 2018 2019 2020 $ $ $ Beginning balance 65,399 76,522 70,627 Additions (reversals) 11,051 (6,156) (21,585) Foreign exchange effect 72 261 1,076 Ending balance 76,522 70,627 50,118 As of December 31, 2020, the Company has accumulated net operating losses of $567,049 of which $466,507 will expire between 2021 and 2040, and the remaining can be carried forward and back. The Company considers positive and negative evidences to determine whether some portion or all of the deferred tax assets will not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry-forward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. The Company has considered the following possible sources of taxable income when assessing the realization of deferred tax assets: ● Tax planning strategies; ● Future reversals of existing taxable temporary differences; ● Further taxable income exclusive of reversing temporary differences and carry-forwards; 18. INCOME TAXES (Continued) Valuation allowance (Continued) The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible for tax purposes. The CARES Act allows net operating losses incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years. As a result, the tax effect of releasing the valuation allowance on net operating losses is $15,227. The Company has recognized a valuation allowance of $70,627 and $50,118 as at December 31, 2019 and 2020, respectively. Uncertain tax positions The Company makes an assessment of the level of authority for each of its uncertain tax positions (including the potential application of interest and penalties) based on their technical merits, and has measured the unrecognized benefits associated with such tax positions. This liability is recorded as liability for uncertain tax positions in the consolidated balance sheets. In accordance with its policies, the Company accrues and classifies interest and penalties associated with such unrecognized tax benefits as a component of its income tax provision. The amount of interest and penalties accrued as of December 31, 2019 and 2020 was $4,795 and $5,101, respectively. The Company does not anticipate any significant changes to its liability for unrecognized tax positions within the next 12 months. The following table illustrates the movement and balance of the Company’s liability for uncertain tax positions (excluding interest and penalties) for the years ended December 31, 2018, 2019 and 2020, respectively. Years Ended December 31, 2018 2019 2020 $ $ $ Beginning balance 6,181 15,730 10,557 Addition for tax positions related to the current year 9,806 11 — Reductions for tax positions from prior years/Statute of limitations expirations — (5,720) (1,011) Foreign exchange effect (257) 536 82 Ending balance 15,730 10,557 9,628 The Company is subject to taxation in various jurisdictions where it operates, mainly including Canada, PRC, the United States and Japan. Generally, the Company’s taxation years from 2015 to 2020 are open for reassessment to the Canadian tax authorities. The Company is subject to taxation in the United States and various state jurisdictions. The Company is not currently under examination by the federal or state tax authorities. The Company’s income tax returns for 2016 through 2020 remain open to examination by the U.S. tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes has resulted from the computational errors of the taxpayer. The statute of limitations could be extended to five years under special circumstances. For income tax adjustments relating to transfer pricing matters, the statute of limitations is ten years. Therefore, the Company’s PRC subsidiaries might be subject to reexamination by the PRC tax authorities on non-transfer pricing matters for taxation years up to 2015 retrospectively, and on transfer pricing matters for taxation years up to 2010 retrospectively. There is no statute of limitations in case of tax evasion in PRC. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 19. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the years indicated: Years Ended December 31, 2018 2019 2020 (In Thousands of U.S. Dollars, except share and per share data) Numerator: Net income attributable to Canadian Solar Inc. — basic $ 237,070 $ 171,585 $ 146,703 Dilutive effect of interest expense of convertible notes 4,683 975 1,518 Net income attributable to Canadian Solar Inc. — diluted $ 241,753 $ 172,560 $ 148,221 Denominator: Denominator for basic calculation — weighted average number of common shares — basic 58,914,540 59,633,855 59,575,898 Diluted effects of share number from share options and RSUs 543,797 794,526 897,258 Dilutive effects of share number from convertible notes 2,833,333 349,315 1,833,663 Denominator for diluted calculation — weighted average number of common shares — diluted 62,291,670 60,777,696 62,306,819 Basic earnings per share $ 4.02 $ 2.88 $ 2.46 Diluted earnings per share $ 3.88 $ 2.83 $ 2.38 The following table sets forth anti-dilutive shares excluded from the computation of diluted earnings per share for the years indicated. Years Ended December 31, 2018 2019 2020 Share options and RSUs 276,618 41,950 187,083 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
RELATED PARTY BALANCES AND TRANSACTIONS | 20. RELATED PARTY BALANCES AND TRANSACTIONS Related party balances The amount due from related parties of $5,834 as of December 31, 2020 consists of (i) trade receivables of $3,364, $195 and $2,123 respectively for modules sales to Salgueiro I Renewable Energy S.A., Salgueiro II Renewable Energy S.A., Jaíba 4 Energias Renováveis S.A., each the The amount due to related parties of $314 as of December 31, 2020 consists of (i) a trade advance of $104 from Salgueiro III Renewable Energy S.A., the Company’s 20% owned affiliate and (ii) a payable of $210 for material purchased from Luoyang Jiwa New Material Technology Co., Ltd., the Company’s 20% owned affiliate. 20. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party balances (Continued) Guarantees and loans Dr. Shawn Qu fully guaranteed loan facilities from two Chinese banks of RMB1,270 million ($185,045), RMB1,420 million ($203,549) and RMB135 million ($20,648) in 2018, 2019 and 2020, respectively. Amounts drawn down under the facilities as of December 31, 2018, 2019 and 2020 were $155,956, $82,937 and nil, respectively. The Company granted 83,805, 26,691 and 26,073 restricted share units to Dr. Shawn Qu in 2018, 2019 and 2020, respectively, on account of his having guaranteed these loan facilities. Sales and purchase contracts with affiliates In 2019 and 2020, the Company sold three and two solar power projects to CSIF, the Company’s 14.66% owned affiliate in Japan, respectively, in the amount of JPY5,889,000 ($53,874) and JPY888,000 ($8,392), respectively, recorded in revenue. In 2018, the Company sold 5 solar power projects to CSIF, the Company’s 14.66% owned affiliate in Japan, in the amount of JPY12,276,404 ($109,597) recorded in revenue, and JPY89,238 ($836) recorded in other operating income, respectively. In 2018, 2019 and 2020, the Company provided asset management service to CSIF in the amount of JPY247,341 ($2,210), JPY 281,094 ($2,573) and JPY394,506 ($3,723), respectively. In 2018, 2019 and 2020, the Company provided O&M service to CSIF in the amount of JPY122,529 ($1,105), JPY 223,598 ($2,052) and JPY805,021 ($7,564), respectively. In 2020, the Company sold modules to Salgueiro I Renewable Energy S.A., Salgueiro II Renewable Energy S.A. and Salgueiro III Renewable Energy S.A., each the Company’s 20% owned affiliate In 2020, the Company sold modules to Jaiba 3 Renewable Energy S.A., Jaiba 4 Renewable Energy S.A. and Jaiba 9 Renewable Energy S.A., each the Company’s 20% owned affiliate In 2018 and 2019, the Company sold solar power products to ET Solutions South Africa 1 Pty, the Company’s 49% owned affiliate in South Africa in the amount of RMB45,407 ($6,859) and ZAR586,832 ($40,970), respectively. In 2019 and 2020, Company purchased raw materials from Luoyang Jiwa New Material Technology Co., Ltd., the Company’s 20% owned affiliate, in the amount of RMB18,124 ($2,584) and RMB31,388 ($4,545), respectively. In 2020, the Company provided EPC services to Lavras Solar Holding S.A., the Company’s 20% owned affiliate in Brazil, in the amount of BRL5,061 ($974). 20. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Sales and purchase contracts with affiliates (Continued) In 2018 and 2019, the Company purchased raw materials from Suzhou iSilver Materials Co., Ltd, the Company’s former 14.63% owned affiliate in PRC, in the amount of RMB512,154 ($74,490) and RMB350,590 ($50,359), respectively. In December 2020, the Company fully disposed of its ownership of Suzhou iSilver Materials Co., Ltd to an unrelated third party. From January 1, 2020 through the date of disposal, the Company purchased raw materials in the amount of RMB168,032 ($24,301) from this former affiliate. In 2018 and 2019, the Company purchased equipment from Suzhou Kzone Equipment Technology Co., Ltd, the Company’s former 32% owned affiliate in PRC, in the amount of RMB41,635 ($6,056) and RMB61,174 ($8,787), respectively. In July 2020, the Company fully disposed of its ownership of Suzhou Kzone Equipment Technology Co., Ltd to an unrelated third party. From January 1, 2020 through the date of disposal, the Company purchased raw materials in the amount of RMB7,381 ($1,048) from this former affiliate. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES a) Capital commitments As of December 31, 2020, the commitments for the purchase of property, plant and equipment were approximately $304,712, and the payment schedule for the commitments is as follow: Year Ending December 31: $ 2021 174,509 2022 84,795 2023 45,408 Total 304,712 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies Class Action Lawsuits Following the two subpoenas from the SEC in 2010, six class action lawsuits were filed in the U.S. District Court for the Southern District of New York, or the New York cases, and another class action lawsuit was filed in the U.S. District Court for the Northern District of California, or the California case. The New York cases were consolidated into a single action in December 2010. On January 5, 2011, the California case was dismissed by the plaintiff, who became a member of the lead plaintiff group in the New York action. On March 11, 2011, a Consolidated Complaint was filed with respect to the New York action. The Consolidated Complaint alleges generally that the Company’s financial disclosures during 2009 and early 2010 were false or misleading; asserts claims under Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 thereunder; and names the Company, its chief executive officer and its former chief financial officer as defendants. The Company filed its motion to dismiss in May 2011, which was taken under submission by the Court in July 2011. On March 30, 2012, the Court dismissed the Consolidated Complaint with leave to amend, and the plaintiffs filed an Amended Consolidated Complaint against the same defendants on April 19, 2012. On March 29, 2013, the Court dismissed with prejudice a class action lawsuit filed against the Company and certain named defendants alleging that the Company’s financial disclosures during 2009 and early 2010 were false or misleading and in violation of federal securities law. The court found that the plaintiffs failed to adequately allege a securities law violation and granted the Company’s motion to dismiss all claims against all defendants with prejudice. On December 20, 2013, the United States Court of Appeals for the Second Circuit affirmed the district court’s order dismissing such class action lawsuit. In addition, a similar class action lawsuit was filed against the Company and certain of its executive officers in the Ontario Superior Court of Justice on August 10, 2010. The lawsuit alleges generally that the Company’s financial disclosures during 2009 and 2010 were false or misleading and brings claims under the shareholders’ relief provisions of the CBCA, Part XX III.1 of the Ontario Securities Act as well as claims based on negligent misrepresentation. In December 2010, the Company filed a motion to dismiss the Ontario action on the basis that the Ontario Court has no jurisdiction over the claims and potential claims advanced by the plaintiff. The court dismissed the Company’s motion on August 29, 2011. On March 30, 2012, the Ontario Court of Appeal denied the Company’s appeal with regard to its jurisdictional motion. On November 29, 2012, the Supreme Court of Canada denied the Company’s application for leave to appeal the order of the Ontario Court of Appeal. The plaintiff’s motions for class certification and leave to assert the statutory cause of action under the Ontario Securities Act were served in January 2013 and initially scheduled for argument in the Ontario Superior Court of Justice in June 2013.However, the plaintiff’s motions were adjourned in view of the plaintiff’s decision to seek an order compelling the Company to file additional evidence on the motions. On July 29, 2013 the Court dismissed the plaintiff’s motion to compel evidence. On September 24, 2013 the plaintiff’s application for leave to appeal from the July 29 order was dismissed. In September 2014, the plaintiff obtained an order granting him leave to assert the statutory cause of action under the Ontario Securities Act for certain of his misrepresentation claims. 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) In January 2015, the plaintiff in the class action lawsuit filed against the Company and certain of its executive officers in the Ontario Superior Court of Justice obtained an order for class certification in respect of certain claims for which he had obtained leave in September 2014 to assert the statutory cause of action for misrepresentation under the Ontario Securities Act, for certain negligent misrepresentation claims and for oppression remedy claims advanced under the CBCA. The Court approved a settlement of the action on October 30, 2020. The settlement is no admission of liability or wrongdoing by the Company or any of the other defendants. Solar 1 On October 17, 2012, the United States Department of Commerce, or USDOC, issued final affirmative determinations with respect to its antidumping and countervailing duty investigations on crystalline silicon photovoltaic, or CSPV, cells, whether or not incorporated into modules, from China. On November 30, 2012, the U.S. International Trade Commission, or USITC, determined that imports of CSPV cells had caused material injury to the U.S. CSPV industry. The USITC’s determination was subsequently affirmed by the U.S. Court of International Trade, or CIT, and the U.S. Court of Appeals for the Federal Circuit, or Federal Circuit. As a result of these determinations, the Company was required to pay cash deposits on Chinese-origin CSPV cells imported into the U.S., whether or not incorporated into modules. The rates applicable to the company were 13.94% (antidumping duty) and 15.24% (countervailing duty). The Company paid all the cash deposits due under these determinations. Several parties challenged the determinations of the USITC in appeals to the CIT. On August 7, 2015, the CIT sustained the USITC’s final determination and on January 22, 2018, the Federal Circuit upheld the CIT’s decision. There was no further appeal to the U.S. Supreme Court and, therefore, this decision is final. The rates at which duties will be assessed and payable are subject to administrative reviews. The USDOC published the final results of the first administrative reviews in July 2015. As a result of these decisions, the duty rates applicable to the Company were revised to 9.67% (antidumping duty) and 20.94% (countervailing duty). The assessed rates were appealed to the CIT. The CIT affirmed the USDOC’s countervailing duty rates, and no change was made to the Company’s countervailing duty rate. This decision by the CIT was not appealed to the Federal Circuit. The CIT likewise affirmed USDOC’s antidumping duty rates, and no change was made to the Company’s antidumping duty rate. This decision by the CIT was, however, appealed to the Federal Circuit, which upheld the CIT’s decision. There was no further appeal to the U.S. Supreme Court and, therefore, this decision is final. The USDOC published the final results of the second administrative reviews in June 2016 (antidumping duty) and July 2016 (countervailing duty). As a result of these decisions, the antidumping duty rate applicable to the Company was reduced to 8.52% (from 9.67%) and then to 3.96% (from 8.52%). Because the Company is not subject to the second administrative review of the countervailing duty order, the Company’s countervailing duty rate remained at 20.94%. The antidumping duty rates were appealed to the CIT. The CIT affirmed the USDOC’s second antidumping duty rate. This decision by the CIT was appealed to the Federal Circuit, which in June 2020 reversed the CIT’s decision, in part, and directed the USDOC to reconsider certain issues related to its final determination. The USDOC has submitted its antidumping duty redetermination to the CIT. A decision is expected in mid-2021. 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) The USDOC published the final results of the third administrative reviews in June 2017 (antidumping duty) and July 2017 (countervailing duty), and later amended in October 2017. As result of these decisions, the duty rates applicable to the Company were changed to 13.07% (from 8.52%) (antidumping duty) and 18.16% (from 20.94%) (countervailing duty). The assessed rates were appealed to the CIT. The CIT has twice remanded the antidumping duty appeal to the USDOC to consider adjustments to the Company’s rate. Pursuant to CIT’s remand orders, the USDOC issued a redetermination. The antidumping duty rate applicable to the company was reduced to 4.12% (from 13.07%) and then further to 3.19% (from 4.12% ). In June 2020, the CIT issued its third opinion sustaining the USDOC’s remand redetermination. The Company filed a motion for reconsideration with the CIT advocating for an even lower antidumping duty rate. In September 2020, the CIT granted the Company’s motion for reconsideration and remanded to USDOC for further consideration of the Company’s antidumping duty rate. The CIT has likewise twice remanded the countervailing duty appeal to the USDOC to consider adjustments to the Company’s rate. In August 2020, the CIT sustained USDOC’s second remand redetermination. As a result, the company’s countervailing duty rate was reduced to The USDOC published the final results of the fourth administrative reviews in July 2018 (both antidumping duty and countervailing duty), with the countervailing duty rate later amended in October 2018. Because the Company is not subject to the fourth administrative review of the antidumping duty order, the Company’s antidumping duty rate remains at 13.07%. Because of these decisions, the countervailing duty rate applicable to the Company was reduced to 11.59% (from 18.16%). The countervailing duty rates were appealed to the CIT. The CIT remanded the countervailing duty appeal to the USDOC to consider adjustments to the Company’s rate. Pursuant to the CIT’s remand orders, the USDOC made a redetermination that reduced the Company’s countervailing duty rate to 5.02% (from 11.59%). The Company appealed the CIT decision to the Federal Circuit to contest USDOC’s continued assessment of a countervailing duty rate related to the alleged electricity subsidy program; a decision is expected in late 2021. The USDOC published the final results of the fifth administrative reviews in July and August 2019. The antidumping duty rate applicable to the Company was lowered to 4.06% (from 13.07%). The countervailing duty rate applicable to the Company was reduced to 9.70% (from 11.59%). The countervailing duty final results were amended to correct ministerial errors in December 2019, but they resulted in no change to the Company’s 9.70% rate. The countervailing duty and antidumping duty rates were appealed to the CIT, which is likely to issue decisions in late 2021. The USDOC published the final results of the sixth administrative reviews in October 2020 and December 2020, and amended final results of the sixth administrative review of the antidumping order in December 2020. In the amended antidumping final results, the antidumping duty rate applicable to the Company was raised to 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) The seventh and eighth antidumping duty and countervailing duty administrative reviews were initiated in February 2020 and February 2021 and are currently underway. The USDOC is currently scheduled to release the preliminary results of the seventh administrative reviews on April 16, 2021 (antidumping duty) and April 19, 2021 (countervailing duty). The final results of both the seventh antidumping and countervailing reviews will likely be published in late 2021. USDOC will likely issue preliminary results of the eighth administrative reviews in early 2022. The final results of the seventh and eighth administrative reviews may result in duty rates that differ from the previous duty rates and cash deposit rates applicable to the Company. These duty rates could materially and adversely affect the Company’s U.S. import operations and increase the Company’s cost of selling into the U.S. market. Between 2017 and 2019, the USDOC and USITC conducted five-year sunset reviews and determined to continue the Solar 1 antidumping and countervailing duty orders. In March 2018, the USDOC published the results of its expedited first sunset reviews and concluded that revocation of the Solar 1 orders would likely lead to a continuation or recurrence of dumping and a countervailable subsidy. The Company did not participate in USDOC’s first sunset review. The Company did, however, participate in the USITC’s first sunset review and requested that the Solar 1 duties be revoked. The USITC issued an affirmative determination in March 2019 declining to revoke the Solar 1 orders and finding that such revocation would be likely to lead to a continuation or recurrence of material injury to the U.S. industry within a reasonably foreseeable time. As a result, the Solar 1 orders remain in effect. Solar 2 On December 31, 2013, SolarWorld Industries America, Inc. filed a new trade action with the USDOC and the USITC accusing Chinese producers of certain CSPV modules of dumping their products into the U.S. and of receiving countervailable subsidies from the Chinese authorities. This trade action also alleged that Taiwanese producers of certain CSPV cells and modules dumped their products into the U.S. Excluded from these new actions were those Chinese-origin solar products covered by the Solar 1 orders described above. The Company was identified as one of a number of Chinese producers exporting the Solar 2 subject goods to the U.S. market. “Chinese CSPV products subject to Solar 2 orders” refers to CSPV products manufactured in mainland China using non-Chinese (e.g., Taiwanese) CSPV cells and imported into the U.S. during the investigation or administrative review periods of Solar 2. “Taiwanese CSPV products subject to Solar 2 orders” refer to CSPV products manufactured outside of mainland China using Taiwanese CSPV cells and imported into the U.S. during the investigation or review periods of Solar 2. On December 23, 2014, the USDOC issued final affirmative determinations with respect to its antidumping and countervailing duty investigation on these CSPV products. On January 21, 2015, the USITC determined that imports of these CSPV products had caused material injury to the U.S. CSPV industry. As a result of these determinations, the Company is required to pay cash deposits on these CSPV products, the rates of which applicable to the Company’s Chinese CSPV products were 30.06% (antidumping duty) and 38.43% (countervailing duty). The USDOC’s determination and the assessed countervailing duty rates were appealed to the CIT and the Federal Circuit. In March 2019, the Federal Circuit affirmed the CIT’s decision confirming the USDOC’s determination but reduced the Company’s countervailing duty rate to 33.58% (from 38.43%). There was no further appeal to the U.S. Supreme Court and, therefore, this decision is final. 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) The antidumping cash deposit rate applicable to the Company’s Taiwanese CSPV products subject to Solar 2 orders varied by solar cell producer. The Company paid all the cash deposits due under these determinations. There is no countervailing duty order on Taiwan Solar 2 products. The rates at which duties will be assessed and payable are subject to administrative reviews. The USDOC published the final results of the first administrative reviews in July 2017 (China and Taiwan antidumping duty orders) and September 2017 (China-only countervailing duty order). Because the Company is not subject to the first administrative reviews of the Chinese orders of Solar 2, the Company’s duty rates will remain at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The Company’s antidumping duty rates for the Company’s Taiwanese CSPV products had ranged from 3.56% to 4.20%, until they were changed to 1.52% to 3.78% in June 2019. The second administrative reviews for the Chinese antidumping and countervailing duty orders were rescinded, meaning that there is no change in the Chinese antidumping and countervailing duty rates applicable to the Company’s Chinese CSPV products 30.06% (antidumping duty) and 33.58% (countervailing duty). The USDOC published the final results of the second administrative review for the Taiwanese antidumping duty order (there is no countervailing duty order) in June 2018. The rate applicable to the Company is 1.33%. There is no ongoing litigation related to the Taiwanese antidumping duty rate. The Company was not subject to the third administrative reviews of the Chinese orders and, therefore, the Company’s duty rates remained unchanged at The USDOC rescinded the fourth administrative reviews of the Chinese antidumping duty and countervailing duty orders in late 2019. The Company’s duty rates will remain unchanged at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The rate assessed to the Company in the fourth administrative review of the Taiwanese antidumping order was 2.57% (from 4.39%). The USDOC also found that certain Canadian Solar entities had no shipments during this period of this review. The USDOC rescinded the fifth administrative reviews of the Chinese antidumping and countervailing duty orders. The Company’s duty rates will remain unchanged at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The USDOC initiated the fifth administrative review of the Taiwanese antidumping duty order in April 2020, and that review remains ongoing. Certain Canadian Solar entities have filed a no shipment letter for this period of review. The USDOC is scheduled to publish the preliminary results of the fifth administrative review for the Taiwanese antidumping duty order on April 23, 2021. The final results will likely be published in late 2021. The USDOC is expected to initiate the sixth administrative reviews of the Chinese antidumping and countervailing duty orders soon. No party, however, requested an antidumping or countervailing duty administrative review for any company, including the Company and, therefore, these reviews should be rescinded. The Company’s duty rates will remain unchanged at 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) In 2020, the USDOC and USITC conducted five-year sunset reviews and determined to continue the Solar 2 antidumping and countervailing duty orders. In May 2020, the USDOC published the results of its expedited first sunset reviews and concluded that revocation of the Solar 2 orders would likely lead to a continuation or recurrence of dumping and a countervailable subsidy. The USITC issued an affirmative determination on September 4, 2020, declining to revoke the Solar 2 orders and finding that such revocation would be likely to lead to a continuation or recurrence of material injury to the U.S. industry within a reasonably foreseeable time. As a result, the Solar 2 orders are expected to remain in effect for an additional five years. Section 201 On May 17, 2017, following receipt of a petition from Suniva, Inc., which was later joined by SolarWorld Americas, Inc., the USITC instituted a safeguard investigation to determine whether there were increased imports of CSPV products in such quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing like or directly competitive products. On September 22, 2017, the USITC determined that CSPV products are being imported into the United States in such increased quantities as to be a substantial cause of serious injury to the domestic industry. On January 23, 2018, the President of the United States imposed a safeguard measure on imports of CSPV cells, whether or not partially or fully assembled into other products such as modules, consisting of (1) a tariff-rate quota for four years on imports of CSPV cells not partially or fully assembled into other products, with (a) an in-quota quantity of 2.5 gigawatts, and (b) a tariff rate applicable to over-quota CSPV cells of 30%, declining annually by five percentage points to 25% in the second year, 20% in the third year, and 15% in the fourth year; and (2) a 30% tariff for four years on CSPV modules, declining annually by five percentage points to 25% in the second year, 20% in the third year, and 15% in the fourth year. This safeguard measure, which became effective on February 7, 2018, applies to CSPV products imported from all countries, except for certain developing country members of the World Trade Organization. On June 13, 2019 and following an abbreviated public comment period, the Office of the U.S. Trade Representative (or USTR) granted an exclusion from the safeguard measure for solar panels comprising solely bifacial solar cells (or bifacial solar panels). In October 2019, USTR determined to withdraw this exclusion. Invenergy Renewables LLC (or Invenergy) promptly contested USTR’s withdrawal determination at the CIT and secured a temporary restraining order against USTR in November 2019. In December 2019, the CIT preliminarily enjoined USTR’s withdrawal due to procedural deficiencies. USTR then sought and was granted a voluntary remand to reconsider its withdrawal determination for bifacial solar panels. In early 2020, USTR conducted a renewed notice-and-comment process regarding the exclusion for bifacial solar panels from the safeguard measures. In April 2020, USTR again determined that the exclusion for bifacial solar panels should be withdrawn based on the findings of its second notice-and-comment process. Notwithstanding, in May 2020 the CIT denied without prejudice the United States’ motion to dissolve the preliminary injunction and to resume the collection of the safeguard tariff on entries of bifacial modules. USTR appealed the CIT’s interlocutory decision to the Federal Circuit in July 2020, but subsequently dismissed its appeal in January 2021. The United States has continued to litigate the merits of USTR’s April 2020 withdrawal of the bifacial exclusion before the CIT. 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) In early 2020, the USITC conducted a midterm review of the safeguard order, issuing its monitoring report in February 2020. Additionally, in March 2020, at the request of the USTR, the USITC released a report regarding the probable economic effect on the domestic CSPV cell and module manufacturing industry of modifying the safeguard measure on CSPV products. The USITC found that increasing the tariff-rate quota (TRQ) on CSPV cells (an integral component of CSPV modules) would likely result in a substantial increase in U.S. module producers’ production, capacity utilization, and employment. The President must consider the USITC’s views but is not required to follow them or to take any action in the safeguard midterm review. On October 10, 2020, President Trump issued Proclamation 10101 pertaining to the midterm review. Proclamation 10101 authorized the following: (1) the revocation of the bifacial module exclusion effective October 25, 2020; (2) the reduction of the safeguard tariff to 18% ad valorem (as opposed to 15% ad valorem as prescribed in the original safeguard measures) effective February 7, 2021; and (3) the delegation to USTR of the President’s authority to ask the USITC to assess whether the safeguard measures should be extended. The President decided not to follow the USITC’s recommendation to increase the TRQ applicable to CSPV cells. Following the issuance of Proclamation 10101, Invenergy and other plaintiffs (AES Distributed Energy, Inc., Clearway Energy Group LLC, EDF Renewables, Inc. (or EDF), the Solar Energy Industries Association (or SEIA)) sought to challenge the Proclamation and filed motions to amend their complaints with the CIT. The CIT ultimately denied plaintiffs’ motions and refused to extend the bifacial module exclusion beyond October 24, 2020 as a consequence of the Proclamation (as opposed to USTR’s withdrawals). Subsequently, on December 29, 2020, Invenergy and another set of plaintiffs (SEIA, NextEra Energy, Inc., and EDF) commenced new and separate litigation once again challenging Proclamation 10101 in the CIT. This new complaint alleges that the President unlawfully terminated the bifacial module exclusion and revised the safeguard tariff, effective February 7, 2021, to be 18% ad valorem (as opposed to the originally announced 15% ad valorem). This new CIT case has also been assigned to Judge Katzmann, and no substantive decision has been made to date. European Antidumping and Anti-Subsidy Investigations On September 6, 2012, following a complaint lodged by EU ProSun, an ad-hoc industry association of EU CSPV module, cell and wafer manufacturers, the European Commission initiated an antidumping investigation concerning EU imports of CSPV modules and key components (i.e., cells and wafers) originating in China. On November 8, 2012, following a complaint lodged by the same parties, the European Commission initiated an anti-subsidy investigation on these same products. On December 6, 2013, the EU imposed definitive antidumping and countervailing measures on imports of CSPV modules and key components (i.e., cells and wafers) originating in or consigned from China. On March 3, 2017, the European Commission extended the antidumping and countervailing measures for 18 months on imports of CSPV modules and key components (i.e., cells and wafers) originating in or consigned from China. On September 16, 2017, the European Commission amended the form of the antidumping and countervailing measures for certain Chinese exporters (but not for Canadian Solar). On March 9, 2018, the antidumping and countervailing measures expired. As a result, since then, the Company’s CSPV modules and cells that originate in, or are consigned from, China, are no longer subject to antidumping or countervailing measures. 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) On February 28, 2014, the Company filed separate actions with the General Court of the EU for annulment of the regulation imposing the definitive antidumping measures and of the regulation imposing the definitive countervailing measures (case T-162/14 and joined cases T-158/14, T-161/14, and T-163/14). The General Court rejected these actions for annulment. On May 8, 2017, the Company appealed the judgements of the General Court before the Court of Justice of the EU (cases C-236/17 and C-237/17). On March 27, 2019, the Court of Justice rejected the appeals. There is no further action with regard to these matters. Canadian Antidumping and Countervailing Duties Expiry Review On June 3, 2015, the Canada Border Services Agency (CBSA) released final determinations regarding the dumping and subsidization of solar modules and laminates originating from China. The CBSA determined that such goods were dumped and subsidized. The CBSA found Canadian Solar to be a “cooperative exporter” and, as such, ascertained a low (relative to other Chinese exporters) Canadian Solar-specific subsidies rate of RMB0.014 per Watt. On July 3, 2015 the Canadian International Trade Tribunal (CITT) determined that the Canadian industry was not negatively affected as a result of imported modules but was threatened with such negative impact. As a result of these findings, definitive duties were imposed on imports of Chinese solar modules into Canada starting on July 3, 2015. The CITT may initiate an expiry review pursuant to Subsection 76.03(3) of the Special Import Measures Act (“SIMA”) before the end of 5 years of its finding. If the CITT does not initiate such an expiry review pursuant to Subsection 76.03(3) of SIMA, the finding is deemed to have been rescinded as of the expiry of the five years. On April 1, 2020, the CITT initiated the preliminary stage of the expiry review regarding the above finding. The expiry review was concluded on March 25, 2021. The CITT determined to continue its aforementioned finding. As a result, the Canadian Solar-specific subsidies rate of RMB0.014 per Watt remains unchanged. Such subsidies rate does not have a material negative effect upon the Company’s results of operations because it has module manufacturing capacity in Ontario and does not rely on Chinese solar modules to serve its Canadian business. Please refer to “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Legal and Administrative Proceedings” in the Company’s Form 20-F for detailed information on antidumping and countervailing duties. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 22. SEGMENT INFORMATION The Company uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the Chief Executive Officer of the Company, since he reviews consolidated and segment results when making decisions about allocating resources and assessing performance of the Company. From 2016 through the third quarter of 2020, the Company had been operating in two principal businesses: MSS and Energy. The MSS business comprised primarily the design, development, manufacture and sale of solar modules, other solar power products and solar system kits. The MSS business also provided engineering, procurement and construction (EPC) services. The Energy business comprised primarily the development and sale of solar projects, operating solar power projects, the sale of electricity and operating and maintenance (O&M) services. The module sales from the Company’s MSS business to its Energy business were on terms and conditions similar to sales to third parties. 22. SEGMENT INFORMATION (Continued) In July 2020, the Company reached a strategic decision to pursue a listing of its subsidiary, CSI Solar Co, in China. To align with the objective of ASC 280, Segment Reporting (“Topic 280”) and present the Company’s disaggregated financial information consistent with the management approach, beginning from the fourth quarter of 2020, the Company reports its financial performance, including revenue, gross profit and income from operations, based on the following two reportable segments: ● CSI Solar , which includes solar modules, solar system kits, battery energy storage solutions, China energy (including solar projects, EPC services and electricity revenue in China), and other materials, components and services (including EPC); and ● Global Energy , which includes global solar and energy storage power projects (excludes China), O&M and asset management services, global electricity revenue (excludes China), as well as other development services. The module sales from the Company’s CSI Solar business to its Global Energy business are on terms and conditions similar to sales to third parties. Comparative period financial information for 2018 and 2019 by reportable segment has been recast to conform to current presentation. The Company continually monitors and reviews its segment reporting structure in accordance with Topic 280 to determine whether any changes have occurred that would impact its reportable segments. The Company’s CODM reviews net revenue and gross profit and does not review balance sheet information by segment. The following table summarizes the Company’s revenues, gross profit and income from operations generated from each segment: Years Ended December 31, 2020 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 3,105,044 726,167 (354,716) 3,476,495 Cost of revenues 2,496,153 577,052 (286,624) 2,786,581 Gross profit 608,891 149,115 (68,092) 689,914 Income from operations 253,105 53,414 (86,089) 220,430 22. SEGMENT INFORMATION (Continued) Years Ended December 31, 2019 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 2,591,154 718,735 (109,306) 3,200,583 Cost of revenues 1,977,502 604,856 (100,272) 2,482,086 Gross profit 613,652 113,879 (9,034) 718,497 Income from operations 267,642 18,795 (27,558) 258,879 Years Ended December 31, 2018 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 2,448,057 1,427,245 (130,790) 3,744,512 Cost of revenues 1,941,539 1,184,724 (156,833) 2,969,430 Gross profit 506,518 242,521 26,043 775,082 Income from operations 182,488 171,876 10,293 364,657 (1) Includes inter-segment elimination, and unallocated corporate costs not considered part of management’s evaluation of reportable segment operating performance. Income from operations is estimated based on the Company’s management accounts as some services are shared by two segments. 22. SEGMENT INFORMATION (Continued) The following table summarizes the Company’s net revenues generated from different geographic locations. The information presented below is based on the location of customers’ headquarters: Years Ended December 31, 2018 2019 2020 $ $ $ Europe and other regions: —Australia 232,409 313,167 120,403 —Germany 95,514 109,119 119,035 —Spain 58,811 78,228 138,972 —Netherlands 83,475 68,770 96,372 —South Africa 53,739 93,911 49,375 —United Kingdom 101,479 33,158 8,842 —Czech 17,411 17,717 16,144 —Others 55,730 66,389 85,407 698,568 780,459 634,550 The Americas: —United States 999,144 852,231 696,101 —Brazil 339,964 395,303 284,478 —Mexico 50,004 94,446 118,846 —Canada 57,478 30,330 100,284 —Others 28,067 29,731 21,396 1,474,657 1,402,041 1,221,105 Asia: —Japan 483,041 372,687 560,701 —PRC 620,520 317,077 504,656 —Vietnam 4,216 39,268 289,621 —Korea 46,697 72,552 25,896 —India 145,873 70,893 61,141 —United Arab Emirates 104,467 43,311 53,981 —Thailand 23,511 12,753 6,108 —Others 142,962 89,542 118,736 1,571,287 1,018,083 1,620,840 Total net revenues 3,744,512 3,200,583 3,476,495 22. SEGMENT INFORMATION (Continued) The following table summarizes the Company’s long-lived assets, including property, plant and equipment, non-current project assets, solar power systems, prepaid land use rights and intangible assets at December 31, 2019 and 2020 by geographic region, based on the physical location of the assets: At December 31, At December 31, 2019 2020 $ $ PRC 835,991 1,002,409 Thailand 331,931 295,240 Japan 259,197 204,515 Australia 63,143 76,330 United States 60,177 64,009 Canada 14,718 8,898 Others 100,513 139,137 Total long-lived assets 1,665,670 1,790,538 The following table summarizes the Company’s revenues generated from each product or service: Years Ended December 31, 2018 2019 2020 $ $ $ CSI Solar: Solar modules 1,847,305 2,012,059 2,348,724 Solar system kits 93,253 116,449 157,656 Battery storage solutions — — 7,899 China energy (includes electricity sales) 245,321 58,096 175,388 Others 131,388 295,244 60,661 Global Energy: Solar power projects 1,319,021 652,050 654,827 O&M and asset management services 13,271 19,750 26,386 Others 94,953 46,935 44,954 Total net revenues 3,744,512 3,200,583 3,476,495 |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Dec. 31, 2020 | |
MAJOR CUSTOMERS | |
MAJOR CUSTOMERS | 23. MAJOR CUSTOMERS Details of customers accounting for 10% or more of total net revenues are as follows: Years Ended December 31, 2018 2019 2020 $ $ $ Company A 718,341 — (1) — (1) (1) The accounts receivable from three customers with the largest receivable balances represents 7%, 3% and 3% of the balance of the account at December 31, 2020, and 17%, 5% and 4% of the balance of the account at December 31, 2019, respectively. The balance from the customer with the largest receivable balance is $74,376 and $27,014 as of December 31, 2019 and 2020, respectively. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 24. EMPLOYEE BENEFIT PLANS Employees of the Company located in the PRC are covered by the retirement schemes defined by local practice and regulations, which are essentially defined contribution schemes. The calculation of contributions for eligible employees is based on 16% of the applicable payroll cost in 2019. The expense incurred by the Company to these defined contributions schemes was $12,544, $11,738 and $8,064 for the years ended December 31, 2018, 2019 and 2020, respectively. In addition, in 2019, the Company is required by PRC law to contribute approximately 6-8.5%, 8%, 0.5-0.7% and 0.9-2.5% of applicable salaries for medical insurance benefits, housing funds, unemployment and other statutory benefits, respectively. The PRC government is directly responsible for the payment of the benefits to these employees. The amounts contributed for these benefit schemes were $11,211, $11,409 and $11,486 for the years ended December 31, 2018, 2019 and 2020, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 25. SHARE-BASED COMPENSATION In March 2006, the Company adopted a share incentive plan, or the Plan. The purpose of the Plan is to promote the success and enhance the value of the Company by linking the personal interests of the directors, employees and consultants to those of the shareholders and providing the directors, employees and consultants with an incentive for outstanding performance to generate superior returns to the shareholders. The Plan is also intended to motivate, attract and retain the services of the directors, employees and consultants upon whose judgment, interest and effort the successful conduct of the Company’s operations is largely dependent. In September 2010, the shareholders approved an amendment to the Plan to increase the maximum number of common shares which may be issued pursuant to all awards of options, restricted shares and RSUs under the Plan to the sum of (i) 2,330,000 plus (ii) the sum of (a) 1% of the number of outstanding common shares of the Company on the first day of each of 2007, 2008 and 2009 and (b) 2.5% of the number of outstanding common shares of the Company outstanding on the first day of each calendar year after 2009. In June 2020, the shareholders approved an amendment to the Plan to extend the term of the Plan for a further ten years period. As a result, the Plan will expire on, and no awards may be granted after, June 30, 2029. Under the terms of the Plan, options are generally granted with an exercise price equal to the fair market value of the Company’s ordinary shares and expire ten years from the date of grant. Options Activities During the year ended December 31, 2020, 93,488 options were exercised with a weighted average exercise price of $11.39. The total intrinsic value of options exercised during the years ended December 31, 2018, 2019 and 2020 was $256, $1,422 and $893, respectively. As of December 31, 2020, there were 26,291 options outstanding with a weighted average exercise price of $9.33 and weighted average remaining contract terms of 0.4 year. The intrinsic value of outstanding options as of December 31, 2020 was $1,102. No compensation cost on options was recognized in the year ended December 31, 2020. 25. SHARE-BASED COMPENSATION (Continued) RSUs Activities The Company granted 759,702, 706,637 and 1,105,640 RSUs in 2018, 2019 and 2020, respectively. The RSUs entitle the holders to receive the Company’s common shares upon vesting. The RSUs were granted for free and generally vest over periods from one As of December 31, 2020, there was $31,116 of total unrecognized share-based compensation related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.81 years. A summary of the RSU activity is as follows: Weighted Average Number of Grant-Date Shares Fair Value $ Unvested at January 1, 2020 1,659,767 15.26 Granted 1,105,640 22.80 Vested (736,542) 14.85 Forfeited (140,112) 16.07 Unvested at December 31, 2020 1,888,753 19.78 The total fair value of RSUs vested during the years ended December 31, 2018, 2019 and 2020 was $10,242, $10,733 and $14,420, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 26. SUBSEQUENT EVENTS In February 2021, the Company, partnering with a business unit of the Macquarie Group as a minority investor, closed the Japan Green Infrastructure Fund and raised a total of JPY22 billion (approximately $208 million) committed capital to develop new projects in Japan. |
Additional Information - Financ
Additional Information - Financial Statement Schedule I | 12 Months Ended |
Dec. 31, 2020 | |
Additional Information - Financial Statement Schedule I | |
Additional Information - Financial Statement Schedule I | Additional Information — Financial Statement Schedule I Canadian Solar Inc. Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 4-08(e)(3) of Regulation S-X, which require condensed financial information as to financial position, cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented as the restricted net assets of Canadian Solar Inc.’s consolidated and unconsolidated subsidiaries not available for distribution to Canadian Solar Inc. as of December 31, 2020 of $568,931, exceeded the 25% threshold. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements, except that the equity method has been used to account for investments in subsidiaries. FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS December 31, December 31, 2019 2020 (In Thousands of U.S. Dollars, except share data) ASSETS Current assets: Cash and cash equivalents 1,362 33,709 Restricted cash 950 1,316 Amounts due from subsidiaries 341,557 288,226 Derivative assets — 1,111 Prepaid expenses and other current assets 9,846 22,672 Total current assets 353,715 347,034 Investment in subsidiaries 1,383,935 1,525,951 Investments in affiliates 2,483 5,322 Deferred tax assets 23,657 21,358 Other non-current assets 69,070 40,456 TOTAL ASSETS 1,832,860 1,940,121 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings — 80,000 Amounts due to related parties 340,502 — Derivative liabilities 4,713 — Other current liabilities 8,534 32,969 Total current liabilities 353,749 112,969 Convertible notes — 223,214 Long-term borrowings 50,000 — Deferred tax liabilities 22,936 20,169 Liability for uncertain tax positions 13,041 13,347 TOTAL LIABILITIES 439,726 369,699 Equity: Common shares — no issued outstanding 703,806 687,033 Treasury stock, at cost, 609,516 and nil common shares as of December 31, 2019 and 2020, respectively (11,845) — Additional paid-in capital 17,179 (28,236) Retained earnings 793,601 940,304 Accumulated other comprehensive loss (109,607) (28,679) TOTAL EQUITY 1,393,134 1,570,422 TOTAL LIABILITIES AND EQUITY 1,832,860 1,940,121 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF OPERATIONS Years Ended December 31, 2018 2019 2020 (In Thousands of U.S. Dollars) Net revenues 86,755 4,351 2,170 Cost of revenues 53,926 4,188 — Gross profit 32,829 163 2,170 Operating expenses: Selling and distribution expenses 2,518 1,727 2,174 General and administrative expenses 18,970 29,093 49,688 Research and development expenses 795 462 692 Other operating loss, net 77 — — Total operating expenses 22,360 31,282 52,554 Income (loss) from operations 10,469 (31,119) (50,384) Other income (expenses): Interest expense (9,170) (3,005) (9,628) Interest income 32,370 25,272 30,536 Gain (loss) on change in fair value of derivatives, net (2,671) (5,193) 25,341 Foreign exchange gain (loss) 22,255 (11,318) 13,768 Investment loss — (116,879) — Other income (expenses), net: 42,784 (111,123) 60,017 Income (loss) before income taxes and equity in earnings of subsidiaries 53,253 (142,242) 9,633 Income tax benefit (expense) (12,133) 5,230 (34,223) Equity in earnings of subsidiaries 195,950 308,597 171,293 Net income 237,070 171,585 146,703 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME Years Ended December 31, 2018 2019 2020 (In Thousands of U.S. Dollars) Net income 237,070 171,585 146,703 Other comprehensive income (loss) (net of tax of nil) (56,115) 542 80,928 Comprehensive income 180,955 172,127 227,631 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF CASH FLOWS Years Ended December 31, 2018 2019 2020 (In Thousands of U.S. Dollars) Operating activities: Net income 237,070 171,585 146,703 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 21 154 156 Accretion of convertible notes — — 388 Loss on disposal of subsidiaries — 116,879 — Loss (gain) on change in fair value of derivatives 2,671 5,193 (25,341) Allowance for credit losses (212) (83) 357 Equity in earnings of subsidiaries (195,950) (308,597) (171,293) Share-based compensation 10,259 10,682 12,350 Changes in operating assets and liabilities: Amounts due from subsidiaries (184,755) (43,630) 287,865 Prepaid expenses and other current assets (7,778) 17,012 (13,183) Other non-current assets (149) (1,158) 28,459 Amounts due to related parties 15,598 183,675 (340,502) Other current liabilities (22,058) (2,707) 31,809 Liability for uncertain tax positions 6,008 408 306 Net deferred tax assets 9,230 (1,292) (468) Net settlement of derivatives 21,450 (11,125) 19,517 Net cash provided by (used in) operating activities (108,595) 136,996 (22,877) Investing activities: Investments in subsidiaries (1,051) (36,146) (126,487) Investments in affiliates — (2,483) (2,766) Funding of loans to subsidiaries (94,000) (40,600) (264,848) Repayment of loans from subsidiaries 375,635 12,809 20,485 Net cash provided by (used in) investing activities 280,584 (66,420) (373,616) Financing activities: Proceeds from (repayment of) short-term borrowings (151,000) — 30,000 Proceeds from long-term borrowings — 50,000 — Proceeds from changes in ownership interests in subsidiaries without change of control — — 224,553 Net proceeds from issuance of convertible notes — — 222,826 Payments for repurchase of convertible notes — (127,500) — Payments for repurchase of common shares — (11,845) (5,963) Proceeds from exercise of stock options 769 875 1,035 Net cash provided by (used in) financing activities (150,231) (88,470) 472,451 Effect of exchange rate changes (29,618) 11,110 (43,246) Net increase (decrease) in cash and cash equivalents (7,860) (6,784) 32,712 Cash and cash equivalents at the beginning of the year 16,957 9,097 2,313 Cash and cash equivalents at the end of the year 9,097 2,313 35,025 Supplemental disclosure of cash flow information: Interest paid (net of amounts capitalized) 10,154 4,644 7,966 |
Appendix 1 - Major Subsidiaries
Appendix 1 - Major Subsidiaries of CSI | 12 Months Ended |
Dec. 31, 2020 | |
Appendix 1 - Major Subsidiaries of CSI | |
APPENDIX 1 - Major Subsidiaries of CSI | Appendix 1 Major Subsidiaries of CSI The following table sets forth information concerning CSI’s major subsidiaries: Place and Attributable Date Equity Subsidiary of Incorporation Interest Held Principal Activity Canadian Solar Solutions Inc. Canada 100 % Developing solar power project and manufacture of solar modules June 22, 2009 Canadian Solar (Australia) Pty Limited Australia 100 % Developing solar power projects February 3, 2011 Canadian Solar O and M (Ontario) Inc. Canada 100 % Solar farm operating and maintenance services May 10, 2011 Canadian Solar Projects K.K. Japan 100 % Developing solar power projects May 20, 2014 Canadian Solar UK Projects Ltd. United Kingdom 100 % Developing solar power projects August 29, 2014 Recurrent Energy, LLC USA 100 % Developing solar power projects March 31, 2015 Canadian Solar Energy Singapore Pte. Ltd. Singapore 100 % Development & ownership of solar PV projects October 29, 2015 Canadian Solar Netherlands Cooperative U.A. Netherlands 100 % Project holding and financing November 8, 2016 Canadian Solar Construction (Australia) Pty Ltd Australia 100 % Providing engineering, procurement and construction services July 04, 2017 CSUK Energy Systems Construction and Generation JSC Turkey 100 % Project development and management services October 30, 2017 Canadian Solar Argentina Investment Holding Ltd. United Kingdom 100 % Developing solar power projects January 23, 2018 Canadian Solar New Energy Holding Company Limited Hong Kong 100 % Project investment, financing, trading of solar modules March 20, 2019 Canadian Solar Energy Holding Singapore Pte. Ltd. Singapore 100 % Development & ownership of solar PV projects April 22, 2019 CSI Solar Co., Ltd. (formerly known as “CSI Solar Power Group Co., Ltd.”) PRC 79.59 % Investment holding and trading July 7, 2009 Canadian Solar Manufacturing (Luoyang) Inc. PRC 100 %* Manufacture of solar modules, ingots and wafers February 24, 2006 Canadian Solar Manufacturing (Changshu) Inc. PRC 100 %* Production of solar modules August 1, 2006 CSI Cells Co., Ltd. PRC 100 %* Manufacture of solar cells August 23, 2006 Canadian Solar (USA) Inc. USA 100 %* Sales and marketing of modules June 8, 2007 Canadian Solar Japan K.K. Japan 100 %* Sales and marketing of modules June 21, 2009 Canadian Solar EMEA GmbH Germany 100 %* Sales and marketing of modules August 21, 2009 Canadian Solar International Limited Hong Kong 100 %* Sales and marketing of modules March 25, 2011 Suzhou Sanysolar Materials Technology Co., Ltd. PRC 100 %* Production of solar module materials August 17, 2011 Canadian Solar South East Asia Pte. Ltd. Singapore 100 %* Sales and marketing of modules September 19, 2011 Canadian Solar Brazil Commerce, Import and Export of Solar Panels Ltd. Brazil 100 %* Sales and marketing of solar modules, and providing solar energy solution November 14, 2012 Canadian Solar Construction (USA) LLC USA 100 %* Solar farm operating and maintenance services May 20, 2014 CSI Solar Manufacturing (Funing) Co., Ltd. (formerly known as “CSI&GCL Solar Manufacturing (Yancheng) Inc.”) PRC 100 %* Research and development, manufacture and sales of solar cells, and solar power project development Changshu Tegu New Material Technology Co., Ltd. PRC 100 %* EVA solar packaging film research and development, production and sales September 2, 2014 Changshu Tlian Co., Ltd. PRC 100 %* Junction box and connector research, development, production and sales December 26, 2014 Canadian Solar Manufacturing Vietnam Co., Ltd. Vietnam 100 %* Production of solar modules June 25, 2015 Canadian Solar Energy Private Limited India 100 %* Sales and marketing of modules May 06, 2015 Canadian Solar MSS (Australia) Pty Ltd. Australia 100 %* Sales and marketing of modules August 03, 2015 Canadian Solar Manufacturing (Thailand) Co., Ltd. Thailand 99.99992 %* Cells and module production November 20, 2015 Canadian Solar Sunenergy (Baotou) Co., Ltd. PRC 100 %* Production of solar modules, ingots and wafers August 18, 2016 Canadian Solar Middle East DMCC United Arab Emirates 100 %* Sales and marketing of modules March 28, 2017 CSI Investment Management (Suzhou) Co., Ltd. PRC 100 %* Investment management & asset management May 5, 2017 CSI New Energy Development (Suzhou) Co., Ltd. (formerly known as “Suzhou Gaochuangte New Energy Development Co., Ltd.”) PRC 90 %* Design, engineering construction and management of solar power projects June 12, 2017 CSI Cells (Yancheng) Co., Ltd. PRC 70 %* Production of solar cells May 18, 2017 CSI Modules (Jiaxing) Co., Ltd. PRC 100 %* Production of solar modules November 3, 2017 CSI Wafer (Luoyang) Co., Ltd. PRC 100 %* Production of solar cells and wafers November 27, 2017 Canadian Solar SSES (Canada) Inc. Canada 100 %* System solution and energy storage Nov 27, 2019 Canadian Solar SSES (UK) Ltd United Kingdom 100 %* Intellectual property holding December 18, 2019 * |
SUMMARY OF PRINCIPAL ACCOUNTI_2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). |
Basis of consolidation | (b) Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has a controlling financial interest or variable interest entities (“VIEs”) for which the Company is a primary beneficiary. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. All intercompany balances and transactions between the Company and its subsidiaries have been eliminated in consolidation. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (b) Basis of consolidation (Continued) The Company consolidates VIEs when the Company is the primary beneficiary. VIEs are entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders, as a group, lack one or more of the following characteristics: (a) direct or indirect ability to make decisions; (b) obligation to absorb expected losses; or (c) right to receive expected residual returns. VIEs must be evaluated quantitatively and qualitatively to determine the primary beneficiary, which is the reporting entity that has (a) the power to direct activities of a VIE that most significantly impact the VIEs economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. A VIE can have only one primary beneficiary, but may not have a primary beneficiary if no party meets the criteria described above. When evaluating whether the Company is the primary beneficiary of a VIE, and must therefore consolidate the entity, the Company performs a qualitative analysis that considers the design of the VIE, the nature of its involvement and the variable interests held by other parties. If that evaluation is inconclusive as to which party absorbs a majority of the entity’s expected losses or residual returns, a quantitative analysis is performed to determine the primary beneficiary. For the Company’s consolidated VIEs, the Company has presented in note 10, to the extent material, the assets of its consolidated VIEs that can only be used to settle specific obligations of the consolidated VIE, and the liabilities of its consolidated VIEs for which creditors do not have recourse to its general assets outside of the consolidated VIE. All intercompany accounts and transactions between the Company and its consolidated VIEs have been eliminated in consolidation. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) |
Use of estimates | (c) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition for sales of solar power projects, EPC and development services accounted for under a cost-based input method, allowance for credit losses and advances to suppliers, valuation of inventories and provision for firm purchase commitments, provision for contingent liability, impairment of long-lived assets and project assets, the estimated useful lives of long-lived assets, determination of assets retirement obligation (“ARO”), discount rates used to measure operating lease liabilities, accrual for warranty and the recognition of the benefit from the purchased warranty insurance, fair value estimate of financial instruments including warrants and other types of derivative, accrual for uncertain tax positions, valuation allowances for deferred tax assets, applying acquisition method of accounting to business acquisitions and the grant-date fair value of share-based compensation awards and related forfeiture rates. |
Cash and cash equivalents and restricted cash | (d) Cash and cash equivalents and restricted cash Cash and cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and have original maturities of three months or less when acquired. Restricted cash represents amounts held by banks, which are not available for the Company’s general use, as security for issuance of letters of credit, short-term notes payable and bank borrowings. Upon maturity of the letters of credit, repayment of short-term notes payable or bank borrowings, the deposits are released by the bank and become available for general use by the Company. |
Accounts receivable, unbilled | (e) Accounts receivable, unbilled Accounts receivable, unbilled represents a contract asset for revenue that has been recognized in advance of billing the customer. The Company uses a cost-based input method to recognize revenue from EPC and development services when all relevant revenue recognition criteria have been met. Under this accounting method, revenue may be recognized in advance of billing the customer, which results in the recording of accounts receivable, unbilled. Once the Company meets the billing criteria under such contract, the rights to consideration becomes unconditional, it bills the customer and reclassifies the unbilled balance to accounts receivable trade. Billing requirements vary by contract, but are generally structured around completion of certain construction milestones. |
Allowance for credit losses | (f) Allowance for credit losses Before 2020, the Company determined its allowance for doubtful accounts by actively monitoring the financial condition of its customers to determine the potential for any nonpayment of accounts receivable trade, advances to suppliers and other receivables. In determining its allowance for doubtful accounts, the Company also considered other economic factors, such as aging trends. The Company believed that its process of specific review of customers, combined with overall analytical review, provided an effective evaluation of ultimate collectability of trade receivables. Provisions for allowance for doubtful accounts were recorded as general and administrative expenses in the consolidated statements of operations. After the adoption of ASU 2016-13 “Financial Instruments—Credit Losses (Topic 326)” beginning on January 1, 2020, the financial instruments are presented net of an allowance for credit losses. The Company establishes current expected credit losses (“CECL”) through an assessment based on external credit rating, internal credit rating and historical loss rates of debtors. Where CECL is measured on a collective basis or cater for cases where evidence at the individual instrument level may not yet be available, the financial instruments are grouped on the aging status; and nature, size and industry of debtors. Refer to section (ak) of this Note for further details of the adoption of this ASU. The Company began purchasing credit insurance from insurers, such as the China Export & Credit Insurance Corporation, since 2009 for certain of its accounts receivable trade in order to reduce its exposure to bad debt loss. The Company provides an allowance for accounts receivable trade using primarily a specific identification methodology. An allowance is recorded based on the likelihood of collection from the specific customer regardless whether such account is covered by credit insurance. At the time the claim is made, the Company records a receivable from these insurers equal to the expected recovery up to the amount of the specific allowance. The Company had recorded a receivable from these insurers in prepaid expenses and other current assets of $166 and $386 as of December 31, 2019 and 2020, respectively and a corresponding reduction in bad debt expense. |
Advances to suppliers | (g) Advances to suppliers The Company makes prepayments to certain suppliers and such amounts are recorded in advances to suppliers in the consolidated balance sheets. Advances to suppliers expected to be utilized within twelve months as of each balance sheet date are recorded as current assets and the portion expected to be utilized after twelve months are classified as non-current assets in the consolidated balance sheets. |
Inventories | (h) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by the weighted-average method. Cost of inventories consists of direct materials and, where applicable, direct labor costs, tolling costs and those overhead costs that have been incurred in bringing the inventories to their present location and condition. Adjustments are recorded to write down the cost of obsolete and excess inventories to the estimated net realizable value based on historical and forecast demand. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) |
Project assets | (i) Project assets Project assets consist primarily of capitalized costs relating to solar power projects in various stages of development prior to the intended sale of the solar power projects to a third party. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power system. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, solar modules and related equipment. Interest costs incurred on debt during the construction phase and all deferred financing costs amortized during the construction phase are also capitalized within project assets. Solar power projects are preliminarily classified as project assets unless the Company has intention not to sell them to third parties. In that case, they will be classified as solar power systems on the balance sheet. During the development phase, solar power projects are accounted for in accordance with the recognition, initial measurement and subsequent measurement subtopics of ASC 970-360, as they are considered in substance real estates. The costs to construct solar power projects are presented as operating activities or investing activities in the consolidated statement of cash flows, if they are related to project assets or solar power systems, respectively. While the solar power projects are in the development phase, they are generally classified as non-current assets, unless it is anticipated that the sale will occur within one year. Appropriateness of the classification of the solar power projects is assessed based on the circumstances on each balance sheet date. Solar power projects that the Company intends to sell within one year, which meet the criteria of ASC 360, are classified as project assets-current. Solar power projects that the Company intends to hold and operate to generate electricity are classified as solar power systems. The Company reviews project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. The Company considers a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets. The Company examines a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, permitting, capital cost, market pricing or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, the Company impairs the project asset and adjusts the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operations. Project assets are often held in separate legal entities which are formed for the special purpose of constructing the project assets, which the Company refers to as “project companies”. The Company consolidates project companies as described in note 2(b) above. The cash paid to the non-controlling interest in connection with disposal of such project companies was recorded as a financing activity in the consolidated statement of cash flows. The Company does not depreciate the project assets. Any revenue generated from a solar power system connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. If circumstances change, and the Company intends to operate the project assets for the purpose of generating income from the sale of electricity, the project assets will be reclassified to solar power systems. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) |
Business combination | (j) Business combination Business combinations are recorded using the acquisition method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. The Company charges acquisition related costs that are not part of the purchase price consideration to general and administrative expenses as they are incurred. These costs typically include transaction and integration costs, such as legal, accounting, and other professional fees. |
Assets acquisition | (k) Assets acquisition When the Company acquires other entities, if the assets acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on the cost, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s books. If the consideration given is not in the form of cash (that is, in the form of non cash assets, liabilities incurred, or equity interests issued), measurement is based on either the cost to the acquiring entity or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair value and does not give rise to goodwill. |
Property, plant and equipment | (l) Property, plant and equipment Property, plant and equipment is recorded at cost less accumulated depreciation. The cost of property, plant and equipment comprises its purchase price and any directly attributable costs, including interest costs capitalized during the period the asset is brought to its working condition and location for its intended use. The Company expenses repair and maintenance costs as incurred. Depreciation is computed on a straight-line basis over the following estimated useful lives: Buildings 20 years Leasehold improvements Over the shorter of the lease term or their estimated useful lives Machinery 5 Furniture, fixtures and equipment 5 years Motor vehicles 5 years Costs incurred in constructing new facilities, including progress payments, capitalized interests and other costs relating to the construction, are capitalized and transferred to property, plant and equipment on completion and depreciation commences from that time. For property, plant and equipment that has been placed into service, but is subsequently idled temporarily, the Company continues to record depreciation expense during the idle period. The Company adjusts the estimated useful life of the idled assets if the estimated useful life has changed. |
Solar power systems | (m) Solar power systems Solar power systems comprised of ground-mounted utility-scale projects that the Company intends to hold for use. The solar power systems are stated at cost less accumulated depreciation. The cost consists primarily of direct costs incurred in various stages of development prior to the commencement of operations. For a self-developed solar power system, the actual cost capitalized is the amount of the expenditure incurred for the application of the feed-in tariff (“FIT”) or other similar power purchase agreements (“PPA”), permits, consents, construction costs, interest costs capitalized, and other costs capitalized. For a solar power system acquired from third parties, the initial costs include the consideration transferred and certain direct acquisition costs. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When solar power systems is retired, or otherwise disposed of, the cost and accumulated depreciation is removed from the balance sheets and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is recognized using the straight-line method over the estimated useful lives of the solar power systems of 20 |
Intangible assets | (n) Intangible assets Intangible assets primarily represent the technical know-how and computer software purchased from third parties. Intangible assets are recorded at fair value at the time of acquisition less accumulated amortization, if applicable. Amortization is recorded according to the following table on a straight-line basis for all intangible assets: Technical know-how 10 years Computer software 1 |
Prepaid land use rights | (o) Prepaid land use rights Prepaid land use rights, in substance right-of-use assets recorded according to ASC 842 from January 1, 2019, represent amounts paid for the use right of lands located in China (“PRC”). Amounts are charged to earnings ratably over the lease periods of 20 |
Investments in affiliates | (p) Investments in affiliates The Company uses the equity method of accounting for the investments. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The amount associated with the share of earnings is considered as return on investment, and the rest amount is considered as return of investment. Investments are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial conditions and near term prospects of the affiliates; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. During the years ended December 31, 2018, 2019 and 2020, the Company recorded $5,738, nil and $24,060 of impairment charges on its investments, respectively. |
Impairment of long-lived assets | (q) Impairment of long-lived assets The Company assesses the recoverability of the carrying value of long-lived assets when an indicator of impairment has been identified. The Company reviews the long-lived assets each reporting period to assess whether impairment indicators are present. For purposes of recognition and measurement of an impairment loss, a long-lived asset or assets is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For long-lived assets, when impairment indicators are present, the Company compares undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the asset group’s carrying value to determine if the asset group is recoverable. Assessments also consider changes in asset group utilization, including the temporary idling of capacity and the expected timing of placing this capacity back into production. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company will recognize an impairment loss based on the fair value of the assets. The Company recorded impairment charges for long-lived assets of $30,968, $21,866 and $11,854 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Interest capitalization | (r) Interest capitalization The Company capitalizes interest costs as part of the historical costs of acquiring or constructing certain assets during the period of time required to get the assets ready for their intended use or sell the asset to a customer. The Company capitalizes interest costs to the extent that expenditures to acquire, construct, or develop an asset have occurred and interest costs have been incurred. Interest capitalized for property, plant and equipment, or solar power systems is depreciated over the estimated useful life of the related asset, as the qualifying asset is placed into service. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold and all revenue recognition criteria are met. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. |
Assets retirement obligation | (s) Assets retirement obligation Certain jurisdictions in which the Company’s project assets are located or certain land lease agreements require the removal of the solar power systems when the project is decommissioned. Assets retirement obligation (“ARO”) for the estimated costs of decommissioning associated with long-lived assets at a future date are accounted for in accordance with ASC 410-20, Asset Retirement Obligations (“ASC 410-20”). ASC 410-20 requires an entity to recognize the fair value of a liability for an ARO in the period in which it is incurred and a reasonable estimate of fair value can be made. Upon initial recognition of a liability for an ARO, the asset retirement cost is capitalized by increasing the carrying amount of the related long-lived asset by the same amount. Over time, the liability is accreted to its expected future value, while the capitalized cost is depreciated over the useful life of the related asset. The Company’s ARO included in solar power systems was not material as of December 31, 2019 and 2020. |
Leases | (t) Leases Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), as amended (“ASC 842”) for its lease arrangements, which were recorded under ASC 840, Leases, before implementation. Upon adoption of ASC 842, the Company elected to use the remaining lease term as of January 1, 2019 in the estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, the Company use the discount rate as of the commencement date of the lease, incorporating the entire lease term. The Company, as a lessee, has both finance and operating lease arrangements. Right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheets include operating lease agreements. Finance lease agreements are recorded in property, plant and equipment, other payables and other non-current liabilities on the consolidated balance sheets. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. The Company elected the practical expedient to combine the lease and related non-lease components for all existing leases. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (t) Leases (Continued) The Company determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. At the commencement date of a lease, the Company determines the classification of the lease based on the relevant factors and presents and records a right-of- use (“ROU”) asset and lease liability. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. Variable lease payments are excluded from the ROU asset and lease liability calculations and are recognized in the period which the obligations for those payments are incurred. Operating lease ROU assets also include any lease prepayments made, initial direct costs and deferred rent if any and exclude lease incentives. As the rate implicit in the Company’s operating leases is not typically readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Some of the Company’s lease agreements include options to extend or terminate the lease, which are not included in its minimum lease terms unless they are reasonably certain to be exercised. All operating lease expenses are fixed, which are accounted for on a straight-line basis over the lease term and that of finance lease include interest and amortization expenses incurred during the current year. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial lease term of 12 months or less are not recorded on the consolidated balance sheet. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in consolidated statements of operations. The Company assesses ROU assets for impairment quarterly. When events or circumstances indicate the carrying value may not be recoverable, the Company evaluates the net book value of the asset for impairment by comparison to the projected undiscounted future cash flows. If the carrying value of the asset is determined to not be recoverable and is in excess of the estimated fair value, the Company recognizes an impairment charge in asset impairments on its consolidated statements of income. |
Contingencies | (u) Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) |
Income taxes | (v) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net tax loss carry-forwards and credits using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. Income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances; (ii) current tax expense, which represents the amount of tax payable to or receivable from a taxing authority; and (iii) non-current tax expense, which represents the increases and decreases in amounts related to uncertain tax positions from prior periods and not settled with cash or other tax attributes. The Company only recognizes tax benefits related to uncertain tax positions when such positions are more likely than not of being sustained upon examination. For such positions, the amount of tax benefit that the Company recognizes is the largest amount of tax benefit that is more than fifty percent likely of being sustained upon the ultimate settlement of such uncertain tax position. The Company records penalties and interests associated with the uncertain tax positions as a component of income tax expense. The Company uses the flow-through method to account for investment tax credits earned on qualifying projects placed into service. Under this method the investment tax credits are recognized as a reduction to income tax expense in the year the credit arises. The use of the flow-through method also results in a basis difference from the recognition of a deferred tax liability and an immediate income tax expense for reduced future tax depreciation of the related assets. Such basis differences are accounted for pursuant to the income statement method. |
Revenue recognition | (w) Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring a promised good or service to a customer. Solar power products and materials Solar power products, including solar modules, other solar power products, solar system kits and materials related to solar power products are transferred at a point in time when the customer obtains control of the products, which is typically upon shipment or delivery depending on the contract terms. Revenues of solar product sales also include reimbursements received from customers for shipping and handling costs. Sales agreements typically contain the assurance-type customary product warranties but do not contain any post-shipment obligations nor any return or credit provisions, see note 2 (aa) for the Company’s accounting policy for warranty. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (w) Revenue recognition (Continued) The Company assessed whether it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the products that will be transferred to the customer. As of December 31, 2019 and 2020, the Company had inventories of $7,701 and $9,548, respectively, relating to sales to customers where revenues were not recognized because the collection of payment was determined to be not probable. The delivered products remain as inventories on consolidated balance sheets, regardless of whether the control has been transferred. If the collection of payment becomes probable in the future, the Company would then recognize revenue, adjust inventories and recognize cost of revenues. O&M and asset management services O&M and asset management services are transferred over time when customers receive and consume the benefits provided by the Company’s performance under the terms of service arrangements. Revenues from O&M and asset management services are recognized over time based on the work completed to date which does not require re-performances and the costs of O&M and asset management services are expensed when incurred. Battery storage solutions, EPC and development services The Company recognizes revenue for sales of battery storage solutions, EPC and development services over time based on the estimated progress to completion using a cost-based input method. In applying the cost-based input method of revenue recognition, the Company use the actual costs incurred relative to the total estimated costs to determine the Company’s progress towards contract completion and to calculate the corresponding amount of revenue and gross profit to recognize. Cost-based input method of revenue recognition is considered a faithful depiction of the Company’s efforts to satisfy battery storage solutions, EPC and development services contracts and therefore reflect the transfer of goods or services to a customer under such contracts. Costs incurred towards contract completion may include costs associated with direct materials, labor, subcontractors, and other indirect costs related to contract performance. The cost-based input method of revenue recognition requires the Company to make estimates of net contract revenues and costs to complete the Company’s projects. In making such estimates, significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives, liquidated damages, and other payments to customers. Significant judgment is also required to evaluate assumptions related to the costs to complete the Company’s projects, including materials, labor, contingencies, and other system costs. If estimated total costs of any contract are greater than the estimated net revenues, of the contract, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of revisions to estimates related to net contract revenues and costs to complete contracts, including penalties, claims, change orders, performance incentives, anticipated losses, and others are recorded in the period in which revisions to estimates are identified and the amounts can be reasonably estimated. Solar power and energy storage projects Sales of solar power and energy storage projects are recognized at a point in time when customers obtain control of solar power projects. For sales of solar power and energy storage projects in which the Company obtains an interest in the project sold to the customer, the Company recognizes all of the revenue for the consideration received, including the fair value of the non-controlling interest it obtained, and defer any profit associated with the interest obtained. The solar power projects are often held in separate legal entities which are formed for the special purpose of constructing the solar power projects, which the Company refers to as “project companies”. The Company applies guidance under ASC 810 to determine deconsolidation of the project companies upon transfer of equity interest to the customers, and then applies guidance under ASC 606 for revenue recognition. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (w) Revenue recognition (Continued) Electricity revenue Electricity revenue is generated primarily by the Company’s solar power plants under long-term PPAs and performance based energy incentives. For electricity sold under PPAs, the Company recognizes electricity revenue based on the price stated in the PPAs when electricity has been generated and transmitted to the grid. Performance-based energy incentives are awarded under certain state programs for the delivery of renewable electricity when the attached conditions have been met and there is reasonable assurance that the incentives will be received. During the years ended December 31, 2018, 2019 and 2020, the Company recognized performance-based energy incentives related to electricity generated of $4,688, $3,915 and $6,628, respectively, in revenue. Disaggregation of Revenue The disaggregation of revenue from contracts with customers for the years ended December 31, 2018, 2019, and 2020 has been disclosed under Segment Information. See Note 22 for details of revenues generated from each product or service and revenues generated from different geographic locations. The following table represents a disaggregation of revenue recognized at a point in time or over time (Comparative period financial information for 2018 and 2019 by reportable segment has been recast to conform to current presentation. Refer to Note 22 for further information.): Years Ended December 31, 2018 2019 2020 CSI Solar Segment: Revenue recognized at a point in time $ 2,232,424 $ 2,210,459 $ 2,704,332 Revenue recognized over time 84,843 271,389 45,996 Global Energy Segment: Revenue recognized at a point in time 1,406,196 696,326 687,759 Revenue recognized over time 21,049 22,409 38,408 3,744,512 3,200,583 3,476,495 The Company’s contract assets and liabilities are as follow: At December 31, At December 31, 2019 2020 Contract Assets Accounts receivable, unbilled $ 15,256 $ 28,461 Contract Liabilities Advances from customers 134,806 189,470 Other current liabilities 20,917 35,012 155,723 224,482 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (w) Revenue recognition (Continued) For the year ended December 31, 2020, $139,387 of the Company’s revenue was recognized from the beginning balance of contract liabilities as of January 1, 2020. Contract liabilities of $224,482 as of December 31, 2020 are expected to be realized within one year. The Company has applied the practical expedients related to the revenue requirements to a portfolio of contracts (or performance obligations) with similar characteristics for transactions where it is expected that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. Therefore, the Company has elected the portfolio approach in applying the revenue guidance. The Company has made an accounting policy election to not assess whether promised products are performance obligations if they are immaterial in the context of the contract with the customer. If the revenue related to a performance obligation that includes products that are immaterial in the context of the contract is recognized before those immaterial products are transferred to the customer, then the related costs to transfer those products are accrued. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company generally expenses incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. The incremental costs are recorded in operating expense. Incremental costs of obtaining a contract with an amortization period more than one year are not material to the Company. |
Shipping and handling costs | (x) Shipping and handling costs Payments received from customers for shipping and handling costs are included in net revenues. Shipping and handling costs relating to sales of $69,855, $88,079 and $134,248, are included in selling and distribution expenses for the years ended December 31, 2018, 2019 and 2020, respectively. |
Research and development | (y) Research and development Costs related to the design, development, testing and enhancement of products are included in research and development expenses. Research and development costs are expensed when incurred and amounted to $44,193, $47,045 and $45,167 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Other operating income, net | (z) Other operating income, net Other operating income, net primarily consists of gains or losses on disposal of solar power systems and property, plant and equipment, and government grants received, and compensation from business interruption insurance. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (z) Other operating income, net (Continued) Government grants received by the Company consist of unrestricted and restricted grants and subsidies. Unrestricted grants that allowed the Company’s full discretion in utilizing the funds are recognized as other operating income upon receipt of cash and when all the conditions for their receipt have been satisfied. Restricted grants related to prepaid land use rights, property, plants and equipment and certain projects, are recorded as deferred subsidies in other non-current liabilities and are amortized on a straight-line basis over the term of related assets. The following table summarizes the Company’s other operating income, net: Years Ended December 31, 2018 2019 2020 $ $ $ Net gain on disposal of solar power system (36,098) (1,666) — Net (gain) loss on disposal of property, plant and equipment 2,565 1,227 (253) Government grants (11,013) (10,097) (24,245) Business interruption insurance compensation — — (1,025) (44,546) (10,536) (25,523) |
Warranty cost | (aa) Warranty cost Before June 2009, the Company typically sold its standard solar modules with a two-year guarantee for defects in materials and workmanship and a 10-year and 25-year warranty against declines of more than 10% and 20%, respectively, from the initial minimum power generation capacity at the time of delivery. In June 2009, the Company increased its guarantee for defects in materials and workmanship to six years. In August 2011, the Company increased its guarantee for defects in materials and workmanship to ten years. In 2019, the Company increased its guarantee for defects in materials and workmanship up to twelve years and the Company warrant that, for a period of 25 years, its standard polycrystalline modules will maintain the following performance levels: (i) during the first year, the actual power output of the module will be no less than 97.5% of the labeled power output; (ii) from the second year to the 24th year, the actual annual power output decline of the module will be no more than 0.7%; and (iii) by the end of the 25th year, the actual power output of the module will be no less than 80.7% of the labeled power output. The Company has lengthened the warranty against decline in performance for its bifacial module and double glass module products to 30 years. For solar power projects built by the Company, the Company provides a limited workmanship or balance of system warranty against defects in engineering design, installation and construction under normal use, operation and service conditions for a period of up to ten years following the energizing of the solar power project. In resolving claims under the workmanship or balance of system warranty, the Company has the option of remedying through repair, refurbishment or replacement of equipment. The Company has entered into similar workmanship warranties with its suppliers to back up its warranties. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (aa) Warranty cost (Continued) The Company maintains warranty reserves to cover potential liabilities that could arise under these guarantees and warranties. Due to limited warranty claims to date, the Company accrues the estimated costs of warranties based on an assessment of its competitors’ and its own actual claim history, industry-standard accelerated testing, estimates of failure rates from the Company’s quality review, and other assumptions that the Company believes to be reasonable under the circumstances. Actual warranty costs are accumulated and charged against the accrued warranty liability. To the extent that accrual for warranty costs differs from the estimates, the Company will prospectively revise its accrual rate. The Company currently records a 1% warranty provision against the revenue for sales of solar power products. The Company has entered into agreements with a group of insurance companies with high credit ratings to back up its warranties. Under the terms of the insurance policies, which are designed to match the terms of the Company’s solar module product warranty policy, the insurance companies are obliged to reimburse the Company, subject to certain maximum claim limits and certain deductibles, for the actual product warranty costs that the Company incurs under the terms of its solar module product warranty policy. The Company records the insurance premiums initially as prepaid expenses and amortizes them over the respective policy period of one year. The unamortized carrying amount is $1,486 and $1,728 as of December 31, 2019 and 2020, respectively and was included as a component of prepaid expenses and other current assets. The warranty obligations the Company records relate to defects that existed when the product was sold to the customer. The event which the Company is insured against through its insurance policies is the sale of products with these defects. Accordingly, the Company views the insured losses attributable to the shipment of defective products covered under its warranty as analogous to potential claims, or claims that have been incurred as of the product ship date, but not yet reported. The Company expects to recover all or a portion of the cost of its obligations with respect to the defective products through insurance claims. Therefore, the Company’s accounting policy is to record an asset for the amount determined to be probable of recovery from the insurance claims (not to exceed the amount of the total losses incurred), consistent with the guidance set forth at ASC 410-30. The Company considers the following factors in determining whether an insurance receivable that is probable and recoverability can be reasonably estimated: (i) reputation and credit rating of the insurance company; (ii) comparison of the solar module product warranty policy against the terms of the insurance policies, to ensure valid warranty claims submitted by customers will be covered by the policy and therefore reimbursed by the insurance companies; and (iii) with respect to specific claims submitted, written communications from the insurance company are monitored to ensure the claim has been submitted to the insurance company, and reimbursements are probable to be subsequently collected. The successfully processed claims provide further evidence that the insurance policies are functioning as anticipated. To the extent uncertainties regarding the solvency of insurance carriers or the legal sufficiency of insurance claims (including if they became subject to litigation) were to arise, the Company will establish a provision for uncollectible amounts based on the specific facts and circumstances. To date, no provision had been determined to be necessary. In addition, to the extent that accrual for warranty costs differs from the estimates and the Company prospectively changes its accrual rate, this change may result in a change to the amount expected to be recovered from insurance. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (aa) Warranty cost (Continued) As the warranty obligation and related recovery asset do not meet the criteria for offsetting, the gross amounts are reported in the Company’s consolidated balance sheets. The asset is expected to be realized over the life of the warranty obligation, which is 25 The Company made downward adjustments to its accrued warranty costs of $243 and other non-current assets of $642, for the year ended December 31, 2020, to reflect the general declining trend of the average selling price of solar modules, which is a primary input into the estimated warranty costs. Accrued warranty costs (net effect of adjustments) of $13,188, $28,044 and $26,931 are included in cost of revenues for the years ended December 31, 2018, 2019 and 2020, respectively. |
Foreign currency translation | (ab) Foreign currency translation The United States dollars (“U.S. dollars” or “$”), the currency in which a substantial amount of the Company’s transactions are denominated, is used as the functional and reporting currency of CSI. Monetary assets and liabilities denominated in currencies other than the U.S. dollars are translated into U.S. dollars at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the U.S. dollars during the year are converted into the U.S. dollars at the applicable rates of exchange prevailing on the transaction date. Transaction gains and losses are recognized in the consolidated statements of operations. Gains and losses on intra-entity foreign currency transactions that are of a long-term-investment nature (that is, settlement is not planned or anticipated in the foreseeable future) between consolidated entities are not recognized in earnings, but are included as a component of other comprehensive income. The financial records of certain of the Company’s subsidiaries are maintained in local currencies other than the U.S. dollars, such as Renminbi (“RMB”), Euros, Canadian dollars (“CAD”), Japanese yen, Brazilian reals (“BRL”) and Australian dollars, which are their functional currencies. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive income in the statements of comprehensive income. |
Comprehensive income | (ac) Comprehensive income Comprehensive income includes all changes in equity except those resulting from investments by owners and distributions to owners. For the years presented, total comprehensive income included (i) net income, (ii) foreign currency translation adjustments, (iii) gains and losses on intra-entity foreign currency transactions that are of a long-term-investment nature (that is, settlement is not planned or anticipated in the foreseeable future) between consolidated entities and (iv) the unrealized gains or losses (effective portion) on derivative instruments that qualify for and have been designated as cash flow hedges. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) |
Foreign currency risk | (ad) Foreign currency risk The majority of the Company’s sales in 2018, 2019 and 2020 were denominated in U.S. dollars, Renminbi and Japanese yen, with the remainder in other currencies such as Euros, Brazilian reals, Australian dollars and Canadian dollars. The Company’s Renminbi costs and expenses are primarily related to the sourcing of solar cells, silicon wafers and silicon, other raw materials, including aluminum and silver paste, glass, toll manufacturing fees, labor costs and local overhead expenses within the PRC. From time to time, the Company enters into loan arrangements with commercial banks that are denominated primarily in Renminbi, U.S. dollars and Japanese yen. Most of its cash and cash equivalents and restricted cash are denominated in Renminbi. Fluctuations in exchange rates, particularly between the U.S. dollars, Renminbi, Thailand Baht, Canadian dollars, Japanese yen, Brazilian reals, Euros and Australian dollars, may result in foreign exchange gains or losses. Since 2008, the Company has hedged part of its foreign currency exposures against the U.S. dollars using foreign currency forward or option contracts. |
Concentration of credit risk | (ae) Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, advances to suppliers and amounts due from related parties. All of the Company’s cash and cash equivalents are held with financial institutions that Company management believes to have high credit quality. The Company conducts credit evaluations of customers and generally does not require collateral or other security from its customers. The Company establishes an allowance for credit losses primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. With respect to advances to suppliers, such suppliers are primarily suppliers of raw materials. The Company performs ongoing credit evaluations of its suppliers’ financial conditions. The Company generally does not require collateral or security against advances to suppliers, however, it maintains a reserve for potential credit losses and such losses have historically been within management’s expectation. The prepayments made by the Company are unsecured and expose the Company to supplier credit risk. As of December 31, 2019, prepayments made to individual suppliers were all less than 10% of total advances to suppliers and the concentration risk is relatively low. As of December 31, 2020, gross prepayments made to individual suppliers in excess of 10% of total advances to suppliers are as follows: Years Ended December 31, 2019 2020 $ $ Supplier A — (1) 43,821 (1) 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) |
Fair value of financial instruments | (af) Fair value of financial instruments The Company applies authoritative guidance for fair value measurements for its financial assets and liabilities. The guidance defines fair value as an exit price representing the amount that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. The guidance also establishes a fair value hierarchy, which prioritized the inputs used in measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3— |
Derivatives instruments and hedging activity | (ag) Derivatives instruments and hedging activity The Company’s primary objective for holding derivative financial instruments is to manage risks. Depending on the terms of the specific derivative instruments and market conditions, some of the Company’s derivative instruments may be assets and liabilities at any particular point in time. The recognition of gains or losses resulting from changes in fair value of these derivative instruments is based on the use of each derivative instrument and whether it qualifies for hedge accounting. The Company enters into derivatives to hedge its foreign currency risk exposure to losses from price adjustments of electricity and interest rate risk. When the Company determines to designate a derivative instrument as a cash flow hedge, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative that is used in hedging transactions is highly effective in offsetting changes in cash flows of hedged items. The effective portion of gains and losses on derivatives designated as cash flow hedges are initially deferred in other comprehensive income before being recognized in the statements of operations in the same period as the hedged transactions are reflected in earnings. Gains and losses on derivatives that are not designated or fail to qualify as effective hedges are recognized in the statements of operations as incurred. Fair value of the derivative instruments is determined using pricing models developed based on the underlying price of the hedged items. The values are also adjusted to reflect nonperformance risk of the counterparty and the Company, as necessary. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) |
Earnings (loss) per share | (ah) Earnings per share Basic earnings per common share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. Common share equivalents are not included in the calculation of dilutive earnings per share if their effects are anti-dilutive. |
Share-based compensation | (ai) Share-based compensation The Company’s share-based compensation with employees, such as share options, restricted shares and restricted share units (“RSUs”) with a time-based vesting condition, is measured at the grant date, based on the fair value of the award, and is recognized as compensation expense, net of estimated forfeitures, over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. The share-based compensation expense related to the award which contains both time-based and performance-based vesting condition will be recognized when it is probable that the performance-based condition will be met. The probability of the performance condition to be met is not reflected when determining the fair value of the award. |
Risks and uncertainties related to the COVID-19 pandemic | (aj) Risks and uncertainties related to the COVID-19 pandemic In March 2020, the World Health Organization categorized the outbreak of novel coronavirus, or COVID-19 as a pandemic. The outbreak of COVID-19 posed significant challenges to many aspects of the Company’s business. COVID-19 continues to spread globally, and the duration, magnitude and severity of its effects on the global population and economy are unknown. The Company is unable to predict the impact that COVID-19 will ultimately have on its result of operations, financial condition, liquidity and cash flows because of numerous uncertainties, including the duration and severity of the pandemic and the impact of various mitigation efforts. As of the date of issuance of these consolidated financial statements, the Company is not aware of any specific event or circumstance that would require updates to its estimates and judgments or revisions due to COVID-19 to the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. |
Recently issued accounting pronouncements | (ak) Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326)”, which has been subsequently updated by ASU 2019-04, 2019-05, 2019-10, 2019-11 and 2020-03. The amendments change the impairment model for most financial assets, and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The Company adopted this standard effective January 1, 2020 using the modified-retrospective approach, which no cumulative-effect adjustments were made due to its immaterial nature. Refer to Note 3 to the Consolidated Financial Statements for further information. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (ak) Recently issued accounting pronouncements (Continued) In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value”. ASU 2018-13 removes and modifies existing disclosure requirements on fair value measurement, namely regarding transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. Additionally, ASU 2018-13 adds further disclosure requirements for Level 3 fair value measurements, specifically changes in unrealized gains and losses and other quantitative information. The Company adopted this standard effective January 1, 2020. The adoption of this new standard did not have a material impact on the Company’s consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities”, which expands variable interests to indirect interests held through related parties under common control. The Company adopted this standard effective January 1, 2020. The adoption of this new standard did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which simplifies income tax accounting in various areas including, but not limited to, the accounting for hybrid tax regimes, tax implications related to business combinations, and interim period accounting for enacted changes in tax law, along with some codification improvements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. Certain changes in the standard require retrospective or modified retrospective adoption, while other changes must be adopted prospectively. The Company is currently evaluating ASU 2019-12 and its impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848)”, to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The new guidance is effective, at the Company’s election, beginning March 12, 2020 through December 31, 2022. The Company has borrowings with interest payments that are correlated to a reference rate, and it is currently evaluating the impact of adopting this guidance and the potential effects it could have on the Company’s consolidated financial statements. |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Schedule of expected useful lives of property and equipment | Buildings 20 years Leasehold improvements Over the shorter of the lease term or their estimated useful lives Machinery 5 Furniture, fixtures and equipment 5 years Motor vehicles 5 years |
Schedule of useful life intangible assets | Technical know-how 10 years Computer software 1 |
Schedule of disaggregation of revenue | The following table represents a disaggregation of revenue recognized at a point in time or over time (Comparative period financial information for 2018 and 2019 by reportable segment has been recast to conform to current presentation. Refer to Note 22 for further information.): Years Ended December 31, 2018 2019 2020 CSI Solar Segment: Revenue recognized at a point in time $ 2,232,424 $ 2,210,459 $ 2,704,332 Revenue recognized over time 84,843 271,389 45,996 Global Energy Segment: Revenue recognized at a point in time 1,406,196 696,326 687,759 Revenue recognized over time 21,049 22,409 38,408 3,744,512 3,200,583 3,476,495 |
Schedule of contract assets and contract liabilities | At December 31, At December 31, 2019 2020 Contract Assets Accounts receivable, unbilled $ 15,256 $ 28,461 Contract Liabilities Advances from customers 134,806 189,470 Other current liabilities 20,917 35,012 155,723 224,482 |
Summary of the Company's other operating income, net | Years Ended December 31, 2018 2019 2020 $ $ $ Net gain on disposal of solar power system (36,098) (1,666) — Net (gain) loss on disposal of property, plant and equipment 2,565 1,227 (253) Government grants (11,013) (10,097) (24,245) Business interruption insurance compensation — — (1,025) (44,546) (10,536) (25,523) |
Schedule of gross prepayments made to individual suppliers in excess of 10% of total advances to suppliers | Years Ended December 31, 2019 2020 $ $ Supplier A — (1) 43,821 (1) |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of allowances for credit losses | Advances to Accounts Receivable Suppliers and Trade Other Receivable $ $ Balance as of December 31, 2017 32,941 29,111 Allowances made during the year, net 869 2,112 Accounts written-off against allowances (297) — Foreign exchange effect (780) (593) Balance as of December 31, 2018 32,733 30,630 Allowances made (reversed) during the year, net (1,386) 2,657 Accounts written-off against allowances (309) (1,452) Foreign exchange effect (1,493) (123) Balance as of December 31, 2019 29,545 31,712 Cumulative-effect adjustment for the adoption of ASU 2016-13 — — Provision for credit losses, net 11,387 2,280 Writeoffs (639) (5,490) Balance as of December 31, 2020 40,293 28,502 |
Allowances for accounts receivable, trade | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of allowances | At December 31, At December 31, 2019 2020 $ $ Accounts receivable trade, gross 466,360 449,251 Allowance for credit losses (29,545) (40,293) Accounts receivable trade, net 436,815 408,958 |
Allowances for advances to suppliers | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of allowances | At December 31, At December 31, 2019 2020 $ $ Advances to suppliers, gross 109,156 299,019 Allowance for credit losses (20,281) (19,700) Advances to suppliers, net 88,875 279,319 |
Allowances for other receivables | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of allowances | At December 31, At December 31, 2019 2020 $ $ Other receivable, gross 181,524 238,779 Allowance for credit losses (11,431) (8,802) Other receivable, net 170,093 229,977 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVENTORIES | |
Schedule of inventories | At December 31, At December 31, 2019 2020 $ $ Raw materials 75,722 90,308 Work-in-process 74,105 69,132 Finished goods 404,243 536,541 554,070 695,981 |
PROJECT ASSETS (Tables)
PROJECT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROJECT ASSETS | |
Schedule of project assets | At December 31, At December 31, 2019 2020 $ $ Project assets — Acquisition cost 55,158 44,549 Project assets — EPC and other cost 1,031,976 1,092,917 1,087,134 1,137,466 Current portion 604,083 747,764 Non-current portion 483,051 389,702 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of property, plant and equipment, net | At December 31, At December 31, 2019 2020 $ $ Buildings 453,712 533,647 Leasehold improvements 14,225 14,804 Machinery 1,074,460 1,191,780 Furniture, fixtures and equipment 64,117 75,656 Motor vehicles 6,351 7,643 Land 20,451 20,231 1,633,316 1,843,761 Accumulated depreciation (598,297) (827,601) Impairment (45,437) (52,149) Subtotal 989,582 964,011 Construction in process 56,453 193,720 Property, plant and equipment, net 1,046,035 1,157,731 |
SOLAR POWER SYSTEMS, NET (Table
SOLAR POWER SYSTEMS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SOLAR POWER SYSTEMS, NET | |
Schedule of solar power systems, net | At December 31, At December 31, 2019 2020 $ $ Solar power systems in operation 70,449 182,232 Solar power systems under construction 4,830 6,565 Accumulated depreciation (22,322) (30,535) Solar power systems, net 52,957 158,262 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets | Gross Carrying Accumulated At December 31, 2020 Amount Amortization Net $ $ $ Technical know-how 1,543 (1,525) 18 Computer software 41,085 (18,674) 22,411 Total intangible assets, net 42,628 (20,199) 22,429 Gross Carrying Accumulated At December 31, 2019 Amount Amortization Net $ $ $ Technical know-how 1,428 (1,425) 3 Computer software 38,205 (15,417) 22,788 Total intangible assets, net 39,633 (16,842) 22,791 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENT | |
Schedule of fair value of derivative instruments on the consolidated balance sheets | Fair Value of Derivative Assets At December 31, 2019 At December 31, 2020 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative assets — current 5,097 Derivative assets — current 22,178 Foreign exchange option contracts Derivative assets — current 450 Derivative assets — current 1,173 Total 5,547 Total 23,351 Fair Value of Derivative Liabilities At December 31, 2019 At December 31, 2020 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative liabilities — current 10,127 Derivative liabilities — current 10,753 Foreign exchange option contracts Derivative liabilities — current 25 Derivative liabilities — current 2 Interest rate swap Derivative liabilities — current 329 Derivative liabilities — current — Interest rate swap Derivative liabilities — non-current 1,841 Derivative liabilities — non-current — Total 12,322 Total 10,755 |
Schedule of effect of derivative instruments on consolidated statements of operations | Amount of Gain (Loss) Recognized in Statements Location of of Operations Gain (Loss) Recognized Years Ended December 31 in Statements of Operations 2018 2019 2020 $ $ $ Foreign exchange forward contracts Gain (loss) on change in fair value of derivatives (16,414) (20,249) 49,807 Foreign exchange option contracts Gain (loss) on change in fair value of derivatives (2,023) (1,022) 1,376 Interest rate swap Loss on change in fair value of derivatives (793) (947) (1,182) Total (19,230) (22,218) 50,001 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
VARIABLE INTEREST ENTITIES | |
Schedule of carrying amounts and classifications of consolidated VIE's assets and liabilities, excluding intercompany balances | At December 31, At December 31, 2019 2020 $ $ Cash 14,011 42,064 Project assets 197,366 337,836 Other assets 12,091 79,580 Total assets 223,468 459,480 Short-term borrowings 139,708 180,773 Long-term borrowings — 52,408 Other liabilities 66,569 60,845 Total liabilities 206,277 294,026 |
INVESTMENTS IN AFFILIATES (Tabl
INVESTMENTS IN AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENTS IN AFFILIATES | |
Schedule of investments in affiliates | At December 31, 2019 2020 Carrying Ownership Carrying Ownership Value Percentage Value Percentage $ (%) $ (%) Canadian Solar Infrastructure Fund, Inc. 19,162 14.66 19,980 14.66 Suzhou Financial Leasing Co., Ltd. 16,050 6 23,969 6 RE Roserock Holdings LLC (“Roserock”) 83,034 49 — — Others 34,582 15-49 34,342 15-49 Total 152,828 78,291 |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASE | |
Schedule of leases | Year ended Year ended December 31, 2019 December 31, 2020 $ $ Finance lease cost: Amortization of right-of-use assets 18,900 8,036 Interest on lease liabilities 3,213 1,497 Operating fixed lease cost 17,619 19,630 Short-term lease cost 8,920 850 Total lease cost 48,652 30,013 |
Schedule of other supplemental information: | Year ended Year ended December 31, 2019 December 31, 2020 $ $ Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from finance lease (3,213) (1,497) Operating cash outflows from operating lease (15,866) (20,589) Financing cash outflows from finance lease (33,614) (19,163) ROU assets obtained in exchange of new finance lease liabilities in non-cash transaction 7,300 10,666 ROU assets obtained in exchange of new operating lease liabilities in non-cash transaction 18,222 14,892 ROU assets disposed through early termination of operating leases in non-cash transaction — (6,572) At December 31, At December 31, 2019 2020 Weighted average of remaining operating lease term - finance leases (in years) 1.41 0.90 Weighted average of remaining operating lease term - operating leases (in years) 3.03 3.07 Weighted average of operating lease discount rate - finance lease 5.82 % 5.54 % Weighted average of operating lease discount rate - operating lease 4.36 % 4.18 % |
Schedule of lease maturities | As of December 31, 2020, maturities of operating and finance lease liabilities were as follows: Operating Lease Finance Lease Total Lease Payment Payment Payment $ $ $ Year Ending December 31: 2021 14,374 22,706 37,080 2022 7,427 2,514 9,941 2023 3,632 — 3,632 2024 1,242 — 1,242 2025 369 — 369 Thereafter 1,859 — 1,859 Total future minimum lease payments 28,903 25,220 54,123 Less: imputed interest 467 963 1,430 NPV for future minimum lease payments 28,436 24,257 52,693 Analysis as: Short-term 15,204 21,887 37,091 Long-term 13,232 2,370 15,602 Total lease liabilities 28,436 24,257 52,693 As of December 31, 2019, maturities of operating and finance lease liabilities were as follows: Operating Lease Finance Lease Total Lease Payment Payment Payment $ $ $ Year Ending December 31: 2020 18,953 27,439 46,392 2021 12,980 13,087 26,067 2022 4,666 604 5,270 2023 2,541 — 2,541 2024 1,077 — 1,077 Thereafter 1,504 — 1,504 Total future minimum lease payments 41,721 41,130 82,851 Less: imputed interest 2,236 2,056 4,292 NPV for future minimum lease payments 39,485 39,074 78,559 Analysis as: Short-term 18,767 25,998 44,765 Long-term 20,718 13,076 33,794 Total lease liabilities 39,485 39,074 78,559 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
BORROWINGS | |
Schedule of bank borrowings | At December 31, At December 31, 2019 2020 $ $ Short-term borrowings 819,031 912,549 Long-term borrowings, current portion 114,089 289,736 Subtotal for short-term borrowings 933,120 1,202,285 Long-term borrowings on project assets — current (1) 286,173 198,794 Long-term borrowings 619,477 446,090 Total 1,838,770 1,847,169 (1) Certain long-term borrowings were classified as current liabilities because these borrowings are associated with certain solar power projects that are expected to be sold within one year. |
Schedule of future principal repayments on the long-term borrowings | 2021 $ 488,530 2022 275,985 2023 71,563 2024 18,785 2025 2,912 Thereafter 76,845 Total 934,620 Less: future principal repayment related to long-term borrowings, current portion (488,530) Total long-term portion $ 446,090 |
Schedule of average effective interest rates on borrowings | At December 31, At December 31, 2019 2020 Short-term borrowings 4.86 % 3.26 % Long-term borrowings on project assets – current 3.65 % 3.63 % Long-term borrowings 5.43 % 4.37 % |
Schedule of interest incurred | Years Ended December 31, 2018 2019 2020 $ $ $ Interest capitalized — project assets 15,462 10,794 10,197 Interest capitalized — property, plant and equipment 1,182 2,620 154 Interest expense 106,032 81,326 71,874 Total interest incurred 122,676 94,740 82,225 |
ACCRUED WARRANTY COSTS (Tables)
ACCRUED WARRANTY COSTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED WARRANTY COSTS | |
Summary of the Company's warranty activity | Years Ended December 31, 2018 2019 2020 $ $ $ Beginning balance 55,659 50,605 55,878 Warranty provision 13,188 28,044 26,931 Warranty costs incurred (16,732) (23,282) (46,067) Foreign exchange effect (1,510) 511 990 Ending balance 50,605 55,878 37,732 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of provision for income taxes | Years Ended December 31, 2018 2019 2020 $ $ $ Income (loss) before income taxes Canada 10,570 (61,880) (31,896) United States 61,377 8,319 (113,262) PRC including Hong Kong and Taiwan 178,050 204,632 189,398 Japan 27,555 29,335 50,642 Other 26,848 28,215 50,381 304,400 208,621 145,263 Current tax expense (benefit) Canada (1,846) (3,420) 36,226 United States (14,786) (4,803) (71,421) PRC including Hong Kong and Taiwan 27,285 44,622 30,276 Japan 5,325 13,229 18,941 Other 2,397 7,057 8,233 18,375 56,685 22,255 Deferred tax expense (benefit) Canada 12,117 (6,558) (10,792) United States 32,696 (2,412) 23,173 PRC including Hong Kong and Taiwan 2,653 (5,333) (17,998) Japan (3,381) (2,953) (10,571) Other (491) 2,637 (8,050) 43,594 (14,619) (24,238) Total income tax expense (benefit) Canada 10,271 (9,978) 25,434 United States 17,910 (7,215) (48,248) PRC including Hong Kong and Taiwan 29,938 39,289 12,278 Japan 1,944 10,276 8,370 Other 1,906 9,694 183 61,969 42,066 (1,983) |
Schedule of movement and balance of the Company's liability for uncertain tax positions (excluding interest and penalties) | Years Ended December 31, 2018 2019 2020 $ $ $ Beginning balance 6,181 15,730 10,557 Addition for tax positions related to the current year 9,806 11 — Reductions for tax positions from prior years/Statute of limitations expirations — (5,720) (1,011) Foreign exchange effect (257) 536 82 Ending balance 15,730 10,557 9,628 |
Schedule of components of the deferred tax assets and liabilities | At December 31, At December 31, 2019 2020 $ $ Deferred tax assets: Accrued warranty costs 8,326 8,699 Bad debt allowance 10,324 3,218 Inventory write-down 1,128 3,121 Future deductible expenses 20,731 24,454 Depreciation and impairment difference of property, plant and equipment and solar power systems 23,380 30,138 Accrued liabilities related to antidumping, countervailing and other duty costs and true-up charges 496 406 Government subsidies 8,927 16,461 Net operating losses carry-forward 112,710 85,850 Unrealized foreign exchange loss and capital loss 7,064 1,221 Interest limitation 2,767 1,956 Others 26,415 30,958 Total deferred tax assets, gross 222,268 206,482 Valuation allowance (70,627) (50,118) Total deferred tax assets, net of valuation allowance 151,641 156,364 Deferred tax liabilities: Derivative assets 217 996 Depreciation difference of property, plant and equipment 18,789 17,027 Insurance recoverable 15,771 785 Unrealized foreign exchange gain 10,984 10,746 Others 8,380 5,234 Total deferred tax liabilities 54,141 34,788 Net deferred tax assets 97,500 121,576 Analysis as: Deferred tax assets 153,963 170,656 Deferred tax liabilities (56,463) (49,080) Net deferred tax assets 97,500 121,576 |
Schedule of movement of the valuation allowance | Years Ended December 31, 2018 2019 2020 $ $ $ Beginning balance 65,399 76,522 70,627 Additions (reversals) 11,051 (6,156) (21,585) Foreign exchange effect 72 261 1,076 Ending balance 76,522 70,627 50,118 |
Schedule of reconciliation between the provision for income tax computed by applying Canadian federal and provincial statutory tax rates to income before income taxes and the actual provision and benefit for income taxes | Years Ended December 31, 2018 2019 2020 Combined federal and provincial income tax rate 27 % 27 % 27 % Effect of permanent difference (11) % (1) % 4 % Effect of different tax rate on earnings in other jurisdictions — % 3 % (6) % Effect of tax holiday (1) % (4) % (1) % Unrecognized tax provision 4 % (3) % (13) % Change in valuation allowance 7 % (3) % (14) % Effect of change in tax rate (3) % (1) % 2 % Others (3) % 2 % — % 20 % 20 % (1) % |
Schedule of aggregate amount and per share effect of the tax holiday | Years Ended December 31, 2018 2019 2020 (In Thousands of U.S. Dollars, except per share data) The aggregate amount 3,089 7,956 1,287 Per share — basic 0.05 0.13 0.02 Per share — diluted 0.05 0.13 0.02 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE | |
Schedule of computation of basic and diluted earnings per share | Years Ended December 31, 2018 2019 2020 (In Thousands of U.S. Dollars, except share and per share data) Numerator: Net income attributable to Canadian Solar Inc. — basic $ 237,070 $ 171,585 $ 146,703 Dilutive effect of interest expense of convertible notes 4,683 975 1,518 Net income attributable to Canadian Solar Inc. — diluted $ 241,753 $ 172,560 $ 148,221 Denominator: Denominator for basic calculation — weighted average number of common shares — basic 58,914,540 59,633,855 59,575,898 Diluted effects of share number from share options and RSUs 543,797 794,526 897,258 Dilutive effects of share number from convertible notes 2,833,333 349,315 1,833,663 Denominator for diluted calculation — weighted average number of common shares — diluted 62,291,670 60,777,696 62,306,819 Basic earnings per share $ 4.02 $ 2.88 $ 2.46 Diluted earnings per share $ 3.88 $ 2.83 $ 2.38 |
Schedule of anti-dilutive shares excluded from the computation of diluted earnings per share | Years Ended December 31, 2018 2019 2020 Share options and RSUs 276,618 41,950 187,083 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment | |
Schedule of payment for commitments | Year Ending December 31: $ 2021 174,509 2022 84,795 2023 45,408 Total 304,712 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
Summary of Company's revenues and gross profit and income from operations generated from each segment | Years Ended December 31, 2020 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 3,105,044 726,167 (354,716) 3,476,495 Cost of revenues 2,496,153 577,052 (286,624) 2,786,581 Gross profit 608,891 149,115 (68,092) 689,914 Income from operations 253,105 53,414 (86,089) 220,430 22. SEGMENT INFORMATION (Continued) Years Ended December 31, 2019 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 2,591,154 718,735 (109,306) 3,200,583 Cost of revenues 1,977,502 604,856 (100,272) 2,482,086 Gross profit 613,652 113,879 (9,034) 718,497 Income from operations 267,642 18,795 (27,558) 258,879 Years Ended December 31, 2018 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 2,448,057 1,427,245 (130,790) 3,744,512 Cost of revenues 1,941,539 1,184,724 (156,833) 2,969,430 Gross profit 506,518 242,521 26,043 775,082 Income from operations 182,488 171,876 10,293 364,657 |
Summary of the Company's net revenues generated from different geographic locations | Years Ended December 31, 2018 2019 2020 $ $ $ Europe and other regions: —Australia 232,409 313,167 120,403 —Germany 95,514 109,119 119,035 —Spain 58,811 78,228 138,972 —Netherlands 83,475 68,770 96,372 —South Africa 53,739 93,911 49,375 —United Kingdom 101,479 33,158 8,842 —Czech 17,411 17,717 16,144 —Others 55,730 66,389 85,407 698,568 780,459 634,550 The Americas: —United States 999,144 852,231 696,101 —Brazil 339,964 395,303 284,478 —Mexico 50,004 94,446 118,846 —Canada 57,478 30,330 100,284 —Others 28,067 29,731 21,396 1,474,657 1,402,041 1,221,105 Asia: —Japan 483,041 372,687 560,701 —PRC 620,520 317,077 504,656 —Vietnam 4,216 39,268 289,621 —Korea 46,697 72,552 25,896 —India 145,873 70,893 61,141 —United Arab Emirates 104,467 43,311 53,981 —Thailand 23,511 12,753 6,108 —Others 142,962 89,542 118,736 1,571,287 1,018,083 1,620,840 Total net revenues 3,744,512 3,200,583 3,476,495 |
Schedule of long-lived assets, including property, plant and equipment, non-current project assets, solar power systems, prepaid land use rights and intangible assets by geographic region | At December 31, At December 31, 2019 2020 $ $ PRC 835,991 1,002,409 Thailand 331,931 295,240 Japan 259,197 204,515 Australia 63,143 76,330 United States 60,177 64,009 Canada 14,718 8,898 Others 100,513 139,137 Total long-lived assets 1,665,670 1,790,538 |
Summary of the Company's revenues generated from each product or service | Years Ended December 31, 2018 2019 2020 $ $ $ CSI Solar: Solar modules 1,847,305 2,012,059 2,348,724 Solar system kits 93,253 116,449 157,656 Battery storage solutions — — 7,899 China energy (includes electricity sales) 245,321 58,096 175,388 Others 131,388 295,244 60,661 Global Energy: Solar power projects 1,319,021 652,050 654,827 O&M and asset management services 13,271 19,750 26,386 Others 94,953 46,935 44,954 Total net revenues 3,744,512 3,200,583 3,476,495 |
MAJOR CUSTOMERS (Tables)
MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
MAJOR CUSTOMERS | |
Schedule of details of customers accounting for 10% or more of total net revenues | Years Ended December 31, 2018 2019 2020 $ $ $ Company A 718,341 — (1) — (1) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | |
Schedule of the RSU activity | Weighted Average Number of Grant-Date Shares Fair Value $ Unvested at January 1, 2020 1,659,767 15.26 Granted 1,105,640 22.80 Vested (736,542) 14.85 Forfeited (140,112) 16.07 Unvested at December 31, 2020 1,888,753 19.78 |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Narrative) (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | |
Proceeds from issuance of common stock | $ 224,553 | |||||
Transfer of equity interest in subsidiaries to non-controlling shareholders | 224,553 | $ 10,470 | ||||
Proceeds from Noncontrolling Interests | $ 261,332 | $ 11,488 | $ 10,470 | |||
Percentage of discount on Issue of Shares | 30.00% | 30.00% | ||||
Premium (Discount) on Issue of Shares | $ 768,000 | ¥ 5,250 | ||||
Proceeds from Subscription Advances | 36,342 | |||||
Other Payables [Member] | ||||||
Proceeds from Subscription Advances | 36,342 | |||||
Canadian Solar Employees | ||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 4,500 | ¥ 31 | ||||
Canadian Solar | ||||||
Ownership Percentage by Noncontrolling Owners | 20.40% | 20.40% | ||||
Canadian Solar | Third-Party Investors | ||||||
Stock Issued During Period, Value, Employee Stock Ownership Plan | $ 36,342 | ¥ 248 | ||||
CSI Solar Co | ||||||
Capital Raising Announced | $ 261,332 | ¥ 1,780 | ||||
Business Combination, Consideration Transferred | 219,000 | 1,500 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,100,000 | ¥ 7,500 |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Allowance for doubtful receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Principal accounting policies: | |||
Prepaid expenses and other current assets | $ 353,781 | $ 253,542 | |
Accounts Receivable, Allowance for Credit Loss | 9,874 | 1,250 | $ 2,812 |
Prepaid expenses and other current assets | |||
Principal accounting policies: | |||
Accounts Receivable, Allowance for Credit Loss | $ 386 | $ 166 |
SUMMARY OF PRINCIPAL ACCOUNTI_5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | |
Property, plant and equipment | |
Estimated useful lives | 20 years |
Machinery | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 5 years |
Machinery | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 10 years |
Furniture, fixtures and equipment | |
Property, plant and equipment | |
Estimated useful lives | 5 years |
Motor vehicles | |
Property, plant and equipment | |
Estimated useful lives | 5 years |
Solar power systems | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 20 years |
Solar power systems | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 25 years |
SUMMARY OF PRINCIPAL ACCOUNTI_6
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Intangible assets and Prepaid land use rights (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Technical know-how | |
Intangible assets | |
Amortization period | 10 years |
Computer software | Minimum | |
Intangible assets | |
Amortization period | 1 year |
Computer software | Maximum | |
Intangible assets | |
Amortization period | 10 years |
Land use rights | Minimum | |
Intangible assets | |
Amortization period | 20 years |
Land use rights | Maximum | |
Intangible assets | |
Amortization period | 50 years |
SUMMARY OF PRINCIPAL ACCOUNTI_7
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Investments in affiliates, Impairment of long-lived assets, Asset retirement obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Impairment loss of investment | $ 24,060 | $ 0 | $ 5,738 |
Impairment loss of property, plant and equipment | 11,854 | 21,866 | $ 30,968 |
Asset retirement obligation | $ 0 | $ 0 |
SUMMARY OF PRINCIPAL ACCOUNTI_8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue recognition: | |||
Inventories | $ 695,981 | $ 554,070 | |
Net revenues | 3,476,495 | 3,200,583 | $ 3,744,512 |
Electricity | |||
Revenue recognition: | |||
Net revenues | 6,628 | 3,915 | $ 4,688 |
Uncollectable Revenue | |||
Revenue recognition: | |||
Inventories | $ 9,548,000 | $ 7,701,000 |
SUMMARY OF PRINCIPAL ACCOUNTI_9
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue recognition: | |||
Net revenues | $ 3,476,495 | $ 3,200,583 | $ 3,744,512 |
Recognized at a point in time | CSI Solar Segment | |||
Revenue recognition: | |||
Net revenues | 2,704,332 | 2,210,459 | 2,232,424 |
Recognized at a point in time | Global Energy Segment | |||
Revenue recognition: | |||
Net revenues | 687,759 | 696,326 | 1,406,196 |
Recognized over time | CSI Solar Segment | |||
Revenue recognition: | |||
Net revenues | 45,996 | 271,389 | 84,843 |
Recognized over time | Global Energy Segment | |||
Revenue recognition: | |||
Net revenues | $ 38,408 | $ 22,409 | $ 21,049 |
SUMMARY OF PRINCIPAL ACCOUNT_10
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition - Contract assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contract Assets | ||
Accounts receivables, unbilled | $ 28,461 | $ 15,256 |
Contract Liabilities | ||
Advances from customers | 189,470 | 134,806 |
Other current liabilities | 35,012 | 20,917 |
Contract liability | 224,482 | $ 155,723 |
Revenue recognized from beginning balance of contract liabilities | 139,387 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Contract Liabilities | ||
Contract liabilities expected to be recognized | $ 224,482 | |
Period for contract liabilities expected to be realized | 1 year |
SUMMARY OF PRINCIPAL ACCOUNT_11
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Shipping and handling costs, Research and development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Research and development expenses | $ 45,167 | $ 47,045 | $ 44,193 |
Shipping and Handling | |||
Selling and distribution expenses | $ 134,248 | $ 88,079 | $ 69,855 |
SUMMARY OF PRINCIPAL ACCOUNT_12
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Other operating income, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue recognition: | |||
Gain on disposal of solar power systems | $ (1,666) | $ (36,098) | |
Net (gain) loss on disposal of property, plant and equipment | $ (253) | 1,227 | 2,565 |
Business interruption insurance compensation | (1,025) | ||
Other operating income, net | (25,523) | (10,536) | (44,546) |
Government grants | |||
Revenue recognition: | |||
Other operating income, net | $ (24,245) | $ (10,097) | $ (11,013) |
SUMMARY OF PRINCIPAL ACCOUNT_13
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Warranty cost (Details) - USD ($) $ in Thousands | May 31, 2009 | Aug. 31, 2011 | Jun. 30, 2009 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Warranty cost | ||||||
Warranty accrual rate for sales of solar modules as a percentage of revenue | 1.00% | |||||
Term of insurance policy over which the insurance premium will be amortized | 1 year | |||||
Unamortized carrying amount of insurance premium | $ 1,728 | $ 1,486 | ||||
Insurance receivable | 82,532 | 79,888 | ||||
Warranty adjustment | 243 | |||||
Downward adjustment of other non-current assets | 642 | |||||
Warranty costs (net effect of adjustment) included in cost of revenues | $ 26,931 | $ 28,044 | $ 13,188 | |||
80% initial power capacity | ||||||
Warranty cost | ||||||
Warranty accrual rate for sales of solar modules as a percentage of revenue | 80.70% | |||||
Standard solar modules | ||||||
Warranty cost | ||||||
Term of insurance policy over which the insurance premium will be amortized | 25 years | |||||
Guarantee of solar modules for defects in materials and engineering design, installation and construction | 2 years | |||||
Warranty period of solar modules and products against decline of more than 10% of initial power generation capacity | 10 years | |||||
Warranty period of solar modules and products against decline of more than 20% of initial power generation capacity | 25 years | |||||
Minimum percentage of decline in initial minimum power generation capacity for 10 years | 10.00% | |||||
Minimum percentage of decline in initial minimum power generation capacity for 25 years | 20.00% | |||||
Standard solar modules | Material and workmanship | ||||||
Warranty cost | ||||||
Term of insurance policy over which the insurance premium will be amortized | 10 years | 6 years | 12 years | |||
Standard solar modules | 97 % initial power capacity | ||||||
Warranty cost | ||||||
Warranty accrual rate for sales of solar modules as a percentage of revenue | 97.50% | |||||
Standard solar modules | 93% initial power capacity | ||||||
Warranty cost | ||||||
Warranty accrual rate for sales of solar modules as a percentage of revenue | 0.70% | |||||
Solar Power Project | ||||||
Warranty cost | ||||||
Guarantee of solar modules for defects in materials and engineering design, installation and construction | 10 years | |||||
Bifacial module and double glass module | ||||||
Warranty cost | ||||||
Warranty period of solar modules and products against decline of more than 10% of initial power generation capacity | 30 years | |||||
Minimum | ||||||
Warranty cost | ||||||
Term of insurance policy over which the insurance premium will be amortized | 25 years | |||||
Maximum | ||||||
Warranty cost | ||||||
Term of insurance policy over which the insurance premium will be amortized | 30 years |
SUMMARY OF PRINCIPAL ACCOUNT_14
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Concentration of credit risk (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Concentration of credit risk | ||
Advances to suppliers | $ 182,146 | $ 47,978 |
Supplier A | ||
Concentration of credit risk | ||
Advances to suppliers | $ 43,821 |
SUMMARY OF PRINCIPAL ACCOUNT_15
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Recently issued accounting pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Right-of-use assets | $ 26,793 | $ 37,733 |
Lease liabilities | $ 28,436 | $ 39,485 |
ALLOWANCE FOR CREDIT LOSSES (De
ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses | $ (40,293) | $ (29,545) | $ (40,293) | $ (29,545) | |
Receivable, Net | 408,958 | 436,815 | |||
Movement of allowances | |||||
Beginning of the year | 29,545 | ||||
Closing balance | 40,293 | 29,545 | |||
Allowances for accounts receivable, trade | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receviable, gross | 449,251 | 466,360 | |||
Allowance for credit losses | (40,293) | (32,733) | $ (32,733) | (40,293) | (29,545) |
Receivable, Net | 408,958 | 436,815 | |||
Movement of allowances | |||||
Beginning of the year | 29,545 | 32,733 | 32,941 | ||
Allowances made (reversed) during the year, net | 11,387 | (1,386) | 869 | ||
Accounts written-off against allowances | (639) | (309) | (297) | ||
Foreign exchange effect | (1,493) | (780) | |||
Closing balance | 40,293 | 29,545 | 32,733 | ||
Allowances for advances to suppliers | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receviable, gross | 299,019 | 109,156 | |||
Allowance for credit losses | (19,700) | (20,281) | (19,700) | (20,281) | |
Receivable, Net | 279,319 | 88,875 | |||
Movement of allowances | |||||
Beginning of the year | 20,281 | ||||
Closing balance | 19,700 | 20,281 | |||
Allowances for other receivables | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receviable, gross | 238,779 | 181,524 | |||
Allowance for credit losses | (8,802) | (11,431) | (8,802) | (11,431) | |
Receivable, Net | 229,977 | 170,093 | |||
Movement of allowances | |||||
Beginning of the year | 11,431 | ||||
Closing balance | 8,802 | 11,431 | |||
Advances to Suppliers and Other Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses | (28,502) | (31,712) | (30,630) | $ (28,502) | $ (31,712) |
Movement of allowances | |||||
Beginning of the year | 31,712 | 30,630 | 29,111 | ||
Allowances made (reversed) during the year, net | 2,280 | 2,657 | 2,112 | ||
Accounts written-off against allowances | (5,490) | (1,452) | |||
Foreign exchange effect | (123) | (593) | |||
Closing balance | $ 28,502 | $ 31,712 | $ 30,630 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INVENTORIES | |||
Raw materials | $ 90,308 | $ 75,722 | |
Work-in-process | 69,132 | 74,105 | |
Finished goods | 536,541 | 404,243 | |
Inventories | 695,981 | 554,070 | |
Amount of finished goods includes modules | $ 181,012 | 84,202 | |
Federal Investment Tax Credit (as a percentage) | 5.00% | ||
Inventory written down | $ 42,907 | $ 19,447 | $ 14,646 |
PROJECT ASSETS (Details)
PROJECT ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PROJECT ASSETS | |||
Project assets - Acquisition cost | $ 44,549 | $ 55,158 | |
Project assets - EPC and other cost | 1,092,917 | 1,031,976 | |
Total project assets | 1,137,466 | 1,087,134 | |
Current portion | 747,764 | 604,083 | |
Non-current portion | 389,702 | 483,051 | |
Impairment loss of project assets | $ 369 | $ 20,194 | $ 9,016 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | $ 1,843,761 | $ 1,633,316 | |
Accumulated depreciation | (827,601) | (598,297) | |
Impairment | (52,149) | (45,437) | |
Property, plant and equipment, excluding construction in process, net | 964,011 | 989,582 | |
Construction in process | 193,720 | 56,453 | |
Property, plant and equipment, net | 1,157,731 | 1,046,035 | |
Depreciation expense | 197,600 | 148,034 | $ 120,834 |
Buildings | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 533,647 | 453,712 | |
Leasehold improvements | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 14,804 | 14,225 | |
Machinery | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 1,191,780 | 1,074,460 | |
Furniture, fixtures and equipment | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 75,656 | 64,117 | |
Motor vehicles | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 7,643 | 6,351 | |
Land | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | $ 20,231 | $ 20,451 |
SOLAR POWER SYSTEMS, NET (Detai
SOLAR POWER SYSTEMS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, plant and equipment | |||
Accumulated depreciation | $ (30,535) | $ (22,322) | |
Solar power systems, net | 158,262 | 52,957 | |
Depreciation expense | 197,600 | 148,034 | $ 120,834 |
Solar power systems | |||
Property, plant and equipment | |||
Solar power systems, net | 182,232 | 70,449 | |
Depreciation expense | 6,396 | 6,379 | $ 3,756 |
Solar power sysetems under construction | |||
Property, plant and equipment | |||
Solar power systems, net | $ 6,565 | $ 4,830 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INTANGIBLE ASSETS, NET | |||
Gross Carrying Amount | $ 42,628 | $ 39,633 | |
Accumulated Amortization | (20,199) | (16,842) | |
Total intangible assets, net | 22,429 | 22,791 | |
Amortization expense | 5,122 | 5,310 | $ 4,666 |
Expected amortization expense of intangible assets | |||
2021 | 4,443 | ||
2022 | 3,662 | ||
2023 | 3,035 | ||
2024 | 2,503 | ||
2025 | 2,034 | ||
2025 and thereafter | 6,752 | ||
Technical know-how | |||
INTANGIBLE ASSETS, NET | |||
Gross Carrying Amount | 1,543 | 1,428 | |
Accumulated Amortization | (1,525) | (1,425) | |
Total intangible assets, net | 18 | 3 | |
Computer software | |||
INTANGIBLE ASSETS, NET | |||
Gross Carrying Amount | 41,085 | 38,205 | |
Accumulated Amortization | (18,674) | (15,417) | |
Total intangible assets, net | $ 22,411 | $ 22,788 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - Interest rate swap - USD ($) | Dec. 31, 2019 | Dec. 31, 2016 |
Fair value measurements of the entity's assets or liabilities that are measured at fair value on a recurring basis | ||
Notional amount | $ 47,439,000 | |
Derivative liabilities | $ 2,170,000 | |
Designated as hedging instruments | Cash flow hedge | ||
Fair value measurements of the entity's assets or liabilities that are measured at fair value on a recurring basis | ||
Total notional | $ 399,000,000,000 |
FAIR VALUE MEASUREMENT - Intere
FAIR VALUE MEASUREMENT - Interest rate swap (Details) - Not designated as hedging instruments - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | $ 23,351 | $ 5,547 |
Total derivatives liability | 10,755 | 12,322 |
Derivative assets - current | Foreign exchange forward contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | 22,178 | 5,097 |
Derivative assets - current | Foreign exchange option contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | 1,173 | 450 |
Derivative liabilities - current | Foreign exchange forward contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives liability | 10,753 | 10,127 |
Derivative liabilities - current | Foreign exchange option contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives liability | $ 2 | 25 |
Derivative liabilities - current | Interest rate swap | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives liability | 329 | |
Derivative liabilities - non-current | Interest rate swap | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives liability | $ 1,841 |
FAIR VALUE MEASUREMENT - Gain (
FAIR VALUE MEASUREMENT - Gain (Loss) Recognized in Statements of Operation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | $ 50,001 | $ (22,218) | $ (19,230) |
Foreign exchange forward contracts | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | 49,807 | (20,249) | (16,414) |
Foreign exchange option contracts | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | 1,376 | (1,022) | (2,023) |
Interest rate swap | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | $ (1,182) | $ (947) | $ (793) |
FAIR VALUE MEASUREMENT - Carryi
FAIR VALUE MEASUREMENT - Carrying value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
FAIR VALUE MEASUREMENT | |||
Impairment charges for property, plant and equipment | $ 11,854 | $ 21,866 | $ 30,968 |
Carrying value of long-term borrowings | 446,090 | 619,477 | |
Convertible notes | $ 223,214 | $ 0 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
VARIABLE INTEREST ENTITIES | ||
TOTAL ASSETS | $ 6,536,854 | $ 5,467,207 |
Short-term borrowings | 1,202,285 | 933,120 |
Long-term borrowings | 934,620 | |
TOTAL LIABILITIES | 4,644,069 | 4,042,149 |
Variable Interest Entity | ||
VARIABLE INTEREST ENTITIES | ||
Cash | 42,064 | 14,011 |
Project assets | 337,836 | 197,366 |
Other assets | 79,580 | 12,091 |
TOTAL ASSETS | 459,480 | 223,468 |
Short-term borrowings | 180,773 | 139,708 |
Long-term borrowings | 52,408 | |
Other liabilities | 60,845 | 66,569 |
TOTAL LIABILITIES | $ 294,026 | $ 206,277 |
INVESTMENTS IN AFFILIATES (Deta
INVESTMENTS IN AFFILIATES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other investments | ||
Investments in affiliates | $ 78,291 | $ 152,828 |
RE Roserock Holdings LLC ("Roserock") | ||
Other investments | ||
Investments in affiliates | $ 83,034 | |
Ownership percentage | 49.00% | |
Canadian Solar Infrastructure Fund, Inc | ||
Other investments | ||
Investments in affiliates | $ 19,980 | $ 19,162 |
Ownership percentage | 14.66% | 14.66% |
Suzhou Financial Leasing Co., Ltd. | ||
Other investments | ||
Investments in affiliates | $ 23,969 | $ 16,050 |
Ownership percentage | 6.00% | 6.00% |
Others | ||
Other investments | ||
Investments in affiliates | $ 34,342 | $ 34,582 |
Others | Minimum | ||
Other investments | ||
Ownership percentage | 15.00% | |
Others | Maximum | ||
Other investments | ||
Ownership percentage | 49.00% | 49.00% |
INVESTMENTS IN AFFILIATES - Tax
INVESTMENTS IN AFFILIATES - Tax equity transactions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Tax equity transactions | |||||
Gain on disposal of investment in affiliates | $ 13,936 | $ 1,928 | $ 47,102 | ||
Class B membership interests | |||||
Tax equity transactions | |||||
Net assets derecognized | $ 18,486 | ||||
Value wrote down | $ 4,995 | ||||
RE Roserock Holdings LLC ("Roserock") | |||||
Tax equity transactions | |||||
Ownership percentage | 49.00% |
INVESTMENTS IN AFFILIATES - Oth
INVESTMENTS IN AFFILIATES - Other investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other investments | |||||
Cash consideration for acquisition of the entity | $ 17,758 | $ 7,684 | $ 11,036 | ||
Equity in earnings (loss) of unconsolidated investees | 10,779 | 28,948 | 5,908 | ||
Impairment loss of investment | $ 24,060 | $ 0 | $ 5,738 | ||
Gain or loss on sale of equity investments | $ 13,140 | ||||
Suzhou Financial Leasing Co., Ltd. | |||||
Other investments | |||||
Ownership percentage | 6.00% | 6.00% | 6.00% | ||
Canadian Solar Infrastructure Fund, Inc | |||||
Other investments | |||||
Ownership percentage | 14.66% | 14.66% | 14.66% | ||
Now, Inc. | |||||
Other investments | |||||
Ownership percentage | 10.00% | ||||
Impairment loss of investment | $ 700 |
LEASE - Lease expense (Details)
LEASE - Lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finance lease cost: | |||
Amortization of right-of-use assets | $ 8,036 | $ 18,900 | |
Interest on lease liabilities | 1,497 | 3,213 | |
Operating lease cost | 19,630 | 17,619 | |
Short term lease cost | 850 | 8,920 | |
Total lease cost | $ 30,013 | $ 48,652 | |
Operating lease expenses | $ 20,905 | ||
Finance lease expenses | $ 24,696 |
LEASE - Cash flow (Details)
LEASE - Cash flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
LEASE | ||
Operating cash outflows from finance leases | $ 1,497 | $ 3,213 |
Operating cash outflows from operating leases | 20,589 | 15,866 |
Financing cash outflows from finance lease | (19,163) | (33,614) |
ROU assets obtained in exchange of new finance lease liabilities | 10,666 | 7,300 |
ROU assets obtained in exchange of new operating leases | 14,892 | $ 18,222 |
ROU assets disposed through early termination of operating leases in non-cash transaction | $ (6,572) |
LEASE - Additional information
LEASE - Additional information (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
LEASE | ||
Weighted average term - finance leases | 10 months 24 days | 1 year 4 months 28 days |
Weighted average term - operating lease | 3 years 25 days | 3 years 10 days |
Weighted average discount rate - finance lease | 5.54% | 5.82% |
Weighted average discount rate - operating lease | 4.18% | 4.36% |
LEASE - Operating leases - Matu
LEASE - Operating leases - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of operating leases | ||
2021 | $ 14,374 | |
2022 | 7,427 | |
2023 | 3,632 | |
2024 | 1,242 | |
2025 | 369 | |
Thereafter | 1,859 | |
Total future minimum lease payments | $ 28,903 | |
Year Ending December 31: | ||
2021 | $ 18,953 | |
2022 | 12,980 | |
2022 | 4,666 | |
2022 | 2,541 | |
2023 | 1,077 | |
Thereafter | 1,504 | |
Total future minimum lease payments | $ 41,721 |
LEASE - Operating leases - Gros
LEASE - Operating leases - Gross difference (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating leases, gross difference | ||
Total future minimum lease payments | $ 28,903 | |
Less: imputed interest | 467 | $ 2,236 |
NPV for future minimum lease payments | $ 28,436 | $ 39,485 |
LEASE - Finance leases - Maturi
LEASE - Finance leases - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of finance leases | ||
2021 | $ 22,706 | |
2022 | 2,514 | |
Total future minimum lease payments | $ 25,220 | |
Year Ending December 31: | ||
2019 | $ 27,439 | |
2020 | 13,087 | |
2021 | 604 | |
Total future minimum lease payments | $ 41,130 |
LEASE - Finance leases - Gross
LEASE - Finance leases - Gross difference (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finance leases, gross difference | ||
Total future minimum lease payments | $ 25,220 | |
Less: imputed interest | 963 | |
NPV for future minimum lease payments | $ 24,257 | $ 39,074 |
Total future minimum lease payments | 41,130 | |
Less: imputed interest | 2,056 | |
NPV for future minimum lease payments | $ 39,074 |
LEASE - Total leases - Maturiti
LEASE - Total leases - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
LEASE | ||
2020 | $ 37,080 | |
2021 | 9,941 | |
2022 | 3,632 | |
2023 | 1,242 | |
2024 | 369 | |
Thereafter | 1,859 | |
Total future minimum lease payments | $ 54,123 | |
2019 | $ 46,392 | |
2020 | 26,067 | |
2021 | 5,270 | |
2022 | 2,541 | |
2023 | 1,077 | |
Thereafter | 1,504 | |
Total future minimum lease payments | $ 82,851 |
LEASE - Total leases - Gross di
LEASE - Total leases - Gross difference (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
LEASE | ||
Total future minimum lease payments | $ 54,123 | |
Less: imputed interest | 1,430 | |
NPV for future minimum lease payments | $ 52,693 | $ 78,559 |
Total future minimum lease payments | 82,851 | |
Less: imputed interest | 4,292 | |
NPV for future minimum lease payments | $ 78,559 |
LEASE - Total leases - Summary
LEASE - Total leases - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases | ||
Short-term | $ 37,091 | $ 44,765 |
Long-term | 15,602 | 33,794 |
Total lease liabilities | 52,693 | 78,559 |
Operating lease liabilities, current | 15,204 | 18,767 |
Operating lease liabilities, noncurrent | 13,232 | 20,718 |
Total operating lease liabilities | 28,436 | 39,485 |
Finance lease liabilities, current | 21,887 | 25,998 |
Finance lease liabilities, noncurrent | 2,370 | 13,076 |
Total Finance lease liabilities | $ 24,257 | $ 39,074 |
BORROWINGS (Details)
BORROWINGS (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)item | Aug. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Apr. 30, 2020USD ($) | |
BANK BORROWINGS | |||||
Subtotal for short-term borrowings | $ 1,202,285,000 | $ 933,120,000 | |||
Long-term borrowings on project assets - current | 198,794,000 | 286,173,000 | |||
Long-term borrowings | 446,090,000 | $ 619,477,000 | |||
Secured short-term borrowings | 628,519,000 | ||||
Amount drawn of bank credit facilities granted | 177,214,000 | ||||
Long-term borrowings, current | 258,978,000 | ||||
Secured long-term borrowings, Current | 198,794,000 | ||||
Secured long-term borrowings | 351,431,000 | ||||
Future principal repayment of long-term borrowings on project assets - current | 198,794,000 | ||||
Carrying value of property, plant and equipment that serve as collateral for short-term and long-term borrowings | 224,893,000 | ||||
Carrying value of inventories that serve as collateral for short-term and long-term borrowings | 243,124,000 | ||||
Carrying value of prepaid land use rights that serve as collateral for short-term and long-term borrowings | 9,509,000 | ||||
Carrying value of restricted cash that serve as collateral for short-term and long-term borrowings | 107,598,000 | ||||
Carrying value of accounts receivable that serve as collateral for short-term and long-term borrowings | 15,882,000 | ||||
Carrying value of equity that serve as collateral for short-term and long-term borrowings | 529,431,000 | ||||
Carrying value of project assets and solar power systems that serve as collateral for short-term and long-term borrowings | 696,955,000 | ||||
Canadian Solar New Energy Holding Company Limited [Member] | |||||
BANK BORROWINGS | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | ||||
Recurrent Energy, LLC | |||||
BANK BORROWINGS | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 282,000,000 | ||||
Amount drawn of bank credit facilities granted | 203,747,000 | ||||
Number of credit facilities | item | 2 | ||||
Credit facility | |||||
BANK BORROWINGS | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,618,761,000 | ||||
Available amount of credit facilities | 707,174,000 | ||||
Credit facility | Recurrent Energy, LLC | |||||
BANK BORROWINGS | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000,000,000 | ||||
Credit facility One | Recurrent Energy, LLC | |||||
BANK BORROWINGS | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 123,708,000 | ||||
Credit facility Two | Recurrent Energy, LLC | |||||
BANK BORROWINGS | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000,000 | ||||
Working Capital Facility | Canadian Solar New Energy Holding Company Limited [Member] | |||||
BANK BORROWINGS | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000,000 | ||||
Non-binding bank credit facilities | |||||
BANK BORROWINGS | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 966,270,000 | ||||
Nonrecourse [Member] | |||||
BANK BORROWINGS | |||||
Amount drawn of bank credit facilities granted | $ 433,628,000 |
BORROWINGS - Short term (Detail
BORROWINGS - Short term (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
BORROWINGS | ||
Short-term borrowings | $ 1,202,285 | $ 933,120 |
BORROWINGS - Long term (Details
BORROWINGS - Long term (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
BORROWINGS | ||
Long-term borrowings on project assets - current | $ 198,794 | $ 286,173 |
Long-term borrowings | 446,090 | 619,477 |
Future principal repayment on the long-term borrowings loans | ||
2021 | 488,530 | |
2022 | 275,985 | |
2023 | 71,563 | |
2024 | 18,785 | |
2025 | 2,912 | |
Thereafter | 76,845 | |
Total | 934,620 | |
Less: future principal repayment related to long-term borrowings, current portion | (488,530) | |
Total long-term portion | $ 446,090 | $ 619,477 |
Minimum | ||
BORROWINGS | ||
Average interest rate on long-term borrowings (as a percent) | 1.70% | |
Maximum | ||
BORROWINGS | ||
Average interest rate on long-term borrowings (as a percent) | 6.50% |
BORROWINGS - Long term narrativ
BORROWINGS - Long term narrative and interest expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
BORROWINGS | |||
Outstanding balance | $ 177,214 | ||
Floating interest rate (as a percent) | 4.37% | 5.43% | |
Interest expense | |||
Interest capitalized - project assets | $ 10,197 | $ 10,794 | $ 15,462 |
Interest capitalized - property, plant, and equipment | 154 | 2,620 | 1,182 |
Interest expense | 71,874 | 81,326 | 106,032 |
Total interest incurred | 82,225 | $ 94,740 | $ 122,676 |
Credit facility | |||
BORROWINGS | |||
Maximum borrowing capacity | $ 2,618,761 | ||
Unsecured | |||
BORROWINGS | |||
Floating interest rate (as a percent) | 3.26% | 4.86% | |
Secured by project assets and solar power systems | |||
BORROWINGS | |||
Floating interest rate (as a percent) | 3.63% | 3.65% |
SHORT-TERM NOTES PAYABLE (Detai
SHORT-TERM NOTES PAYABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
SHORT-TERM NOTES PAYABLE | ||
Short-term notes payable | $ 710,636 | $ 544,991 |
ACCRUED WARRANTY COSTS (Details
ACCRUED WARRANTY COSTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ACCRUED WARRANTY COSTS | |||
Beginning balance | $ 55,878 | $ 50,605 | $ 55,659 |
Warranty provision | 26,931 | 28,044 | 13,188 |
Warranty costs incurred | (46,067) | (23,282) | (16,732) |
Foreign exchange effect | 990 | 511 | (1,510) |
Ending balance | $ 37,732 | $ 55,878 | $ 50,605 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
RESTRICTED NET ASSETS | ||
Minimum percentage of the profit after tax to be appropriated to the general reserve | 10.00% | |
Restricted net assets | $ 568,931 | $ 568,931,000 |
CONVERTIBLE NOTES (Details)
CONVERTIBLE NOTES (Details) $ / shares in Units, $ in Thousands | Sep. 16, 2020USD ($)Ditem$ / shares | Dec. 31, 2020USD ($) |
CONVERTIBLE NOTES | ||
Amortization of financing costs | $ 388 | |
Interest expense | 1,677 | |
2020 Notes | ||
CONVERTIBLE NOTES | ||
Proceeds from initial issuance of convertible notes | $ 200,000 | |
Period of option for additional issuance | 30 days | |
Proceeds from additional issuance of convertible notes | $ 30,000 | |
Interest rate (as a percent) | 2.50% | |
Conversion rate | 27.2707 | |
Conversion rate initial principal amount | $ 1,000 | |
Conversion price (in dollars per share) | $ / shares | $ 36.67 | |
Sales price of common stock as percentage of conversion price for redemption at Company's option | 130.00% | |
Number of trading days that threshold percentage exceeds stock price for trigger of redemption at Company's option | item | 20 | |
Period of consecutive trading days that the threshold of trading days must fall within for trigger of redemption at Company's option | D | 30 | |
Redemption prices as percentage of outstanding principal amount plus accrued and unpaid interest following occurrence of certain tax related events | 100.00% | |
Carrying value of convertible notes | 223,214 | |
Unamortized issuance costs | $ 6,786 | |
Effective interest rate (as a percent) | 3.18% |
INCOME TAXES - Provision for in
INCOME TAXES - Provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income before income taxes | |||
Income (loss) before income taxes | $ 145,263 | $ 208,621 | $ 304,400 |
Current tax | |||
Current tax expense (benefit) | 22,255 | 56,685 | 18,375 |
Deferred tax | |||
Deferred tax expense (benefit) | (24,238) | (14,619) | 43,594 |
Total income tax expense | |||
Total income tax expense (benefit) | (1,983) | 42,066 | 61,969 |
Canada | |||
Income before income taxes | |||
Income (loss) before income taxes | (31,896) | (61,880) | 10,570 |
Current tax | |||
Current tax expense (benefit) | 36,226 | (3,420) | (1,846) |
Deferred tax | |||
Deferred tax expense (benefit) | (10,792) | (6,558) | 12,117 |
Total income tax expense | |||
Total income tax expense (benefit) | 25,434 | (9,978) | 10,271 |
United States | |||
Income before income taxes | |||
Income (loss) before income taxes | (113,262) | 8,319 | 61,377 |
Current tax | |||
Current tax expense (benefit) | (71,421) | (4,803) | (14,786) |
Deferred tax | |||
Deferred tax expense (benefit) | 23,173 | (2,412) | 32,696 |
Total income tax expense | |||
Total income tax expense (benefit) | (48,248) | (7,215) | 17,910 |
PRC | |||
Income before income taxes | |||
Income (loss) before income taxes | 189,398 | 204,632 | 178,050 |
Current tax | |||
Current tax expense (benefit) | 30,276 | 44,622 | 27,285 |
Deferred tax | |||
Deferred tax expense (benefit) | (17,998) | (5,333) | 2,653 |
Total income tax expense | |||
Total income tax expense (benefit) | 12,278 | 39,289 | 29,938 |
Japan | |||
Income before income taxes | |||
Income (loss) before income taxes | 50,642 | 29,335 | 27,555 |
Current tax | |||
Current tax expense (benefit) | 18,941 | 13,229 | 5,325 |
Deferred tax | |||
Deferred tax expense (benefit) | (10,571) | (2,953) | (3,381) |
Total income tax expense | |||
Total income tax expense (benefit) | 8,370 | 10,276 | 1,944 |
Others | |||
Income before income taxes | |||
Income (loss) before income taxes | 50,381 | 28,215 | 26,848 |
Current tax | |||
Current tax expense (benefit) | 8,233 | 7,057 | 2,397 |
Deferred tax | |||
Deferred tax expense (benefit) | (8,050) | 2,637 | (491) |
Total income tax expense | |||
Total income tax expense (benefit) | $ 183 | $ 9,694 | $ 1,906 |
INCOME TAXES - Domestic federal
INCOME TAXES - Domestic federal statutory tax rates (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | 36 Months Ended | 48 Months Ended | ||||
Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Income taxes: | ||||||||
Federal and provincial income tax rate (as a percent) | 27.00% | 27.00% | 27.00% | |||||
Amount of interest and penalties accrued related to unrecognized tax benefits | $ 5,101 | $ 5,101 | $ 4,795 | $ 5,101 | $ 4,795 | |||
Effective Income Tax Rate Reconciliation at Federal and Provincial Income Tax Rate | 27.00% | 27.00% | 27.00% | |||||
Tax refund, CARES Act | 62,699 | $ 62,699 | 62,699 | |||||
Changes to the company's liabilities for uncertain tax positions | ||||||||
Beginning balance | $ 10,557 | 10,557 | $ 15,730 | $ 6,181 | 6,181 | |||
Addition for tax positions related to the current year | 11 | 9,806 | ||||||
Reductions for tax positions from prior years/Statute of limitations expirations | (1,011) | |||||||
Statue of limitations expirations | (5,720) | |||||||
Foreign exchange effect | 82 | 536 | ||||||
Foreign exchange effect | (257) | |||||||
Ending balance | $ 9,628 | $ 9,628 | $ 10,557 | $ 15,730 | $ 6,181 | $ 9,628 | $ 10,557 | |
Canada | ||||||||
Income taxes: | ||||||||
Federal and provincial income tax rate (as a percent) | 26.50% | 26.50% | 26.50% | 26.50% | ||||
Effective Income Tax Rate Reconciliation at Federal and Provincial Income Tax Rate | 26.50% | 26.50% | 26.50% | 26.50% | ||||
Canada | Canadian Solar Solutions Inc. | ||||||||
Income taxes: | ||||||||
Federal and provincial income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |||||
Effective Income Tax Rate Reconciliation at Federal and Provincial Income Tax Rate | 25.00% | 25.00% | 25.00% | |||||
United States | Canadian Solar (USA) Inc. | ||||||||
Income taxes: | ||||||||
Income tax rate (as a percent) | 22.20% | 22.90% | 24.80% | |||||
United States | Canadian Solar Energy Acquisition Co. | ||||||||
Income taxes: | ||||||||
Income tax rate (as a percent) | 26.10% | 27.90% | 25.30% | |||||
Japan | Canadian Solar Japan K.K. | ||||||||
Income taxes: | ||||||||
Income tax rate (as a percent) | 31.80% | 31.80% | 32.00% | |||||
Germany | Canadian Solar EMEA GmbH | ||||||||
Income taxes: | ||||||||
Income tax rate (as a percent) | 33.00% | 33.00% | 33.00% | |||||
Vietnam | Canadian Solar Manufacturing Vietnam Co., Ltd | ||||||||
Income taxes: | ||||||||
Income tax rate (as a percent) | 10.00% | |||||||
Reduced income tax rate from 2020 to 2028 (as a percent) | 5.00% | |||||||
Thailand | Canadian Solar Manufacturing (Thailand) Co., Ltd. | ||||||||
Income taxes: | ||||||||
Income tax rate (as a percent) | 20.00% | |||||||
Number of Board of Investment certificates for tax exemption | item | 2 | |||||||
Hong Kong | HKSI | ||||||||
Income taxes: | ||||||||
Income tax rate (as a percent) | 16.50% | 16.50% | 16.50% | |||||
PRC | CSI Solartronics (Changshu) Co., Ltd | ||||||||
Income taxes: | ||||||||
Income tax rate (as a percent) | 25.00% | |||||||
PRC | CSI Solar Technologies Inc. | ||||||||
Income taxes: | ||||||||
Income tax rate (as a percent) | 25.00% | |||||||
PRC | Canadian Solar Manufacturing (Luoyang) Inc. | ||||||||
Income taxes: | ||||||||
Income tax rate (as a percent) | 25.00% |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||||
Accrued warranty costs | $ 8,699 | $ 8,326 | ||
Bad debt allowance | 3,218 | 10,324 | ||
Inventory write-down | 3,121 | 1,128 | ||
Future deductible expenses | 24,454 | 20,731 | ||
Depreciation and impairment difference of property, plant and equipment and solar power systems | 30,138 | 23,380 | ||
Accrued liabilities related to antidumping, countervailing and other duty costs and true-up charges | 406 | 496 | ||
Government subsidies | 16,461 | 8,927 | ||
Net operating losses carry-forward | 85,850 | 112,710 | ||
Unrealized foreign exchange loss and capital loss | 1,221 | 7,064 | ||
Interest limitation | 1,956 | 2,767 | ||
Others | 30,958 | 26,415 | ||
Total deferred tax assets, gross | 206,482 | 222,268 | ||
Valuation allowance | (50,118) | (70,627) | ||
Total deferred tax assets, net of valuation allowance | 156,364 | 151,641 | ||
Deferred tax liabilities: | ||||
Derivative assets | 996 | 217 | ||
Depreciation difference of property, plant and equipment | 17,027 | 18,789 | ||
Insurance recoverable | 785 | 15,771 | ||
Unrealized foreign exchange gain | 10,746 | 10,984 | ||
Others | 5,234 | 8,380 | ||
Total deferred tax liabilities | 34,788 | 54,141 | ||
Analysis as: | ||||
Deferred tax assets | 170,656 | 153,963 | ||
Deferred tax liabilities | (49,080) | (56,463) | ||
Net deferred tax assets | 121,576 | 97,500 | ||
Accumulated net operating losses | 567,049 | |||
Accumulated net operating losses subject to expiration between 2021 and 2040 | 466,507 | |||
Tax effect of valuation allowance on net operating losses, CARES Act | 15,227 | |||
Allowance | ||||
Deferred tax assets: | ||||
Valuation allowance | $ (50,118) | $ (70,627) | $ (76,522) | $ (65,399) |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation between the provision for income tax computed by applying Canadian federal and provincial statutory tax rates to income before income taxes and the actual provision and benefit for income taxes | |||
Combined federal and provincial income tax rate (as a percent) | 27.00% | 27.00% | 27.00% |
Effect of permanent difference (as a percent) | 4.00% | (1.00%) | (11.00%) |
Effect of different tax rate on earnings in other jurisdictions (as a percent) | (6.00%) | 3.00% | |
Effect of tax holiday (as a percent) | (1.00%) | (4.00%) | (1.00%) |
Unrecognized tax provision (as a percent) | (13.00%) | (3.00%) | 4.00% |
Change in valuation allowance (as a percent) | (14.00%) | (3.00%) | 7.00% |
Effect of tax credit (as a percent) | (5.00%) | ||
Effect of change in tax rate | 2.00% | (1.00%) | (3.00%) |
Others (as a percent) | 2.00% | (3.00%) | |
Actual income tax rate (as a percent) | (1.00%) | 20.00% | 20.00% |
Additional disclosure | |||
Withholding income tax rate on dividends distributed by foreign invested enterprises (as a percent) | 10.00% | ||
Undistributed earnings of subsidiaries and affiliates considered to be permanently reinvested | $ 381,716,000 | ||
Provision for withholding income tax on dividend | 0 | ||
Preferential withholding tax rate (as a percent) | 5.00% | ||
Aggregate amount and per share effect of the tax holiday | |||
The aggregate amount (in dollars) | $ 1,287,000 | $ 7,956,000 | $ 3,089,000 |
Per share effect - basic (in dollars per share) | $ 0.02 | $ 0.13 | $ 0.05 |
Per share effect - diluted (in dollars per share) | $ 0.02 | $ 0.13 | $ 0.05 |
Minimum | |||
Additional disclosure | |||
Unrecognized deferred tax liabilities | $ 19,086,000 | ||
Withholding tax rate (as a percent) | 5.00% | ||
Maximum | |||
Additional disclosure | |||
Unrecognized deferred tax liabilities | $ 38,172,000 | ||
Withholding tax rate (as a percent) | 10.00% |
INCOME TAXES - Movement of the
INCOME TAXES - Movement of the valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement of allowances | |||
Beginning of the year | $ 70,627 | ||
End of the year | 50,118 | $ 70,627 | |
Allowance | |||
Movement of allowances | |||
Beginning of the year | 70,627 | 76,522 | $ 65,399 |
Additions (Reversals) | (21,585) | (6,156) | 11,051 |
Foreign exchange effect | 1,076 | 261 | 72 |
End of the year | $ 50,118 | $ 70,627 | $ 76,522 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Computation of basic and diluted gain (loss) per share | |||
Net income attributable to Canadian Solar Inc. - basic | $ 146,703 | $ 171,585 | $ 237,070 |
Dilutive effect of interest expense of convertible notes | 1,518 | 975 | 4,683 |
Net income attributable to Canadian Solar Inc. - diluted | $ 148,221 | $ 172,560 | $ 241,753 |
Denominator for basic calculation - weighted average number of common shares - basic | 59,575,898 | 59,633,855 | 58,914,540 |
Diluted effects of share number from share options and RSUs | 897,258 | 794,526 | 543,797 |
Dilutive effects of share number from convertible notes | 1,833,663 | 349,315 | 2,833,333 |
Denominator for diluted calculation - weighted average number of common shares - diluted | 62,306,819 | 60,777,696 | 62,291,670 |
Basic earnings per share | $ 2.46 | $ 2.88 | $ 4.02 |
Diluted earnings per share | $ 2.38 | $ 2.83 | $ 3.88 |
Share options and RSUs | |||
Computation of basic and diluted gain (loss) per share | |||
Anti-dilutive shares excluded from the computation of diluted earnings per share, total | 187,083 | 41,950 | 276,618 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Details) ¥ in Thousands, ¥ in Thousands, R$ in Thousands, R in Thousands, $ in Thousands | 6 Months Ended | 11 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||||||||
Jun. 30, 2020USD ($) | Jun. 30, 2020CNY (¥) | Nov. 30, 2020USD ($) | Nov. 30, 2020CNY (¥) | Dec. 31, 2020USD ($)itemshares | Dec. 31, 2020CNY (¥)itemshares | Dec. 31, 2020JPY (¥)itemshares | Dec. 31, 2020BRL (R$)itemshares | Dec. 31, 2019USD ($)itemshares | Dec. 31, 2019CNY (¥)itemshares | Dec. 31, 2019JPY (¥)itemshares | Dec. 31, 2019ZAR (R)itemshares | Dec. 31, 2018USD ($)itemshares | Dec. 31, 2018CNY (¥)itemshares | Dec. 31, 2018JPY (¥)itemshares | Dec. 31, 2019USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Amount due from related party | $ 5,834 | $ 31,232 | $ 31,232 | ||||||||||||||||
Amounts due to related parties | 314 | 10,077 | $ 10,077 | ||||||||||||||||
Amounts drawn down | 177,214 | ||||||||||||||||||
Revenue from sale of solar products | $ 62,726 | $ 99,470 | $ 119,825 | ||||||||||||||||
RSUs | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Granted (in shares) | shares | 1,105,640 | 1,105,640 | 1,105,640 | 1,105,640 | 706,637 | 706,637 | 706,637 | 706,637 | 759,702 | 759,702 | 759,702 | ||||||||
Pilipinas Newton Energy Corp | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Cash funding from affiliate | $ 16 | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | |||||||||||||||||
Salgueiro I Renewable Energy S.A | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Trade receivable from affiliate | $ 3,364 | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||||||||||||
Revenue from sale of solar products | $ 11,636 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||||||
Salgueiro II Renewable Energy S.A. | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Trade receivable from affiliate | $ 195 | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||||||||||||
Revenue from sale of solar products | $ 9,996 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||||||
Jaba 4 Energias Renovveis S.A. | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Trade receivable from affiliate | $ 2,123 | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||||||||||||
Revenue from sale of solar products | $ 3,696 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||||||
Salgueiro III Renewable Energy S.A. | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||||||||||||
Trade payable to affiliate | $ 104 | ||||||||||||||||||
Revenue from sale of solar products | $ 9,403 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||||||
Jaiba 3 Renewable Energy S.A. | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Revenue from sale of solar products | $ 5,971 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||||||
Jaiba 9 Renewable Energy S.A. | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Revenue from sale of solar products | $ 1,372 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||||||
ET Solutions South Africa 1 Pty | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Revenue from sale of solar products | $ 40,970 | R 586,832 | $ 6,859 | ¥ 45,407 | |||||||||||||||
Percentage of ownership after sale transaction | 49.00% | ||||||||||||||||||
Canadian Solar Infrastructure Fund, Inc | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Number of solar power plants sold | item | 2 | 2 | 2 | 2 | 3 | 3 | 3 | 3 | 5 | 5 | 5 | ||||||||
Percent of units purchased | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | ||||||||
Canadian Solar Infrastructure Fund, Inc | Asset management service | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Trade payable to affiliate | $ 136 | ||||||||||||||||||
Revenue from providing development services | 3,723 | ¥ 394,506 | $ 2,573 | ¥ 281,094 | $ 2,210 | ¥ 247,341 | |||||||||||||
Canadian Solar Infrastructure Fund, Inc | O & M Service | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Revenue from providing development services | 7,564 | 805,021 | 2,052 | 223,598 | 1,105 | 122,529 | |||||||||||||
Canadian Solar Infrastructure Fund, Inc | Revenue | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Revenue from sale of solar products | $ 8,392 | ¥ 888,000 | $ 53,874 | ¥ 5,889,000 | 109,597 | 12,276,404 | |||||||||||||
Canadian Solar Infrastructure Fund, Inc | Other operating income or expense | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Revenue from sale of solar products | $ 836 | ¥ 89,238 | |||||||||||||||||
Suzhou iSilver Materials Co | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Percent of units purchased | 14.63% | 14.63% | 14.63% | 14.63% | 14.63% | 14.63% | 14.63% | ||||||||||||
Purchase from related party | $ 24,301 | ¥ 168,032 | $ 50,359 | ¥ 350,590 | $ 74,490 | ¥ 512,154 | |||||||||||||
Suzhou Kzone Equipment Technology Co., Ltd | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Percent of units purchased | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | ||||||||||||
Purchase from related party | $ 1,048 | ¥ 7,381 | $ 8,787 | ¥ 61,174 | $ 6,056 | ¥ 41,635 | |||||||||||||
Dr. Shawn Qu | RSUs | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Granted (in shares) | shares | 26,073 | 26,073 | 26,073 | 26,073 | 26,691 | 26,691 | 26,691 | 26,691 | 83,805 | 83,805 | 83,805 | ||||||||
Dr. Shawn Qu | Chinese Commercial Banks | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Maximum borrowing capacity | $ 20,648 | $ 203,549 | $ 185,045 | $ 203,549 | ¥ 135,000 | ¥ 1,420,000 | ¥ 1,270,000 | ||||||||||||
Amounts drawn down | $ 0 | $ 82,937 | $ 155,956 | $ 82,937 | |||||||||||||||
Luoyang Jiwa New Material Technology Co., Ltd [Member] | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||||||||||||
Trade payable to affiliate | $ 210 | ||||||||||||||||||
Percent of units purchased | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||
Purchase from related party | $ 4,545 | ¥ 31,388 | $ 2,584 | ¥ 18,124 | |||||||||||||||
Lavras Solar Holding S.A | |||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | |||||||||||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||||||||||||
Purchase from related party | $ 974 | ||||||||||||||||||
Purchase cost incurred from related party | R$ | R$ 5061 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Commitments (Details) - Property, plant and equipment $ in Thousands | Dec. 31, 2020USD ($) |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Commitments | $ 304,712 |
2021 | 174,509 |
2022 | 84,795 |
2023 | 45,408 |
Total | $ 304,712 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Contingencies (Details) - item | Jan. 21, 2015 | Nov. 30, 2012 | Mar. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2020 | Jul. 31, 2020 | May 31, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Oct. 31, 2018 | Sep. 30, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | Jul. 31, 2017 | Jul. 31, 2016 | Jun. 30, 2016 | May 31, 2016 | Jul. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2010 |
Solar 1 | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 13.94% | 95.50% | 3.19% | 4.12% | 4.06% | 13.07% | 13.07% | 13.07% | 8.52% | 3.96% | 8.52% | 9.67% | 9.67% | |||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 15.24% | 11.97% | 12.67% | 7.36% | 18.16% | 9.70% | 9.70% | 11.59% | 18.16% | 18.16% | 20.94% | 20.94% | 20.94% | 5.02% | ||||||||||||
Solar 2 | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Period of sunset reviews | 5 years | |||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 30.06% | 30.06% | 30.06% | 30.06% | 30.06% | 30.06% | ||||||||||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 38.43% | 33.58% | 33.58% | 33.58% | 33.58% | 38.43% | 33.58% | 33.58% | ||||||||||||||||||
Duty rate for anti-dumping duty on CSPV cells imported from Taiwan (as a percent) | 2.57% | 4.39% | 1.33% | |||||||||||||||||||||||
Solar 2 | Minimum | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 3.56% | |||||||||||||||||||||||||
Duty rate for anti-dumping duty on CSPV cells imported from Taiwan (as a percent) | 1.52% | |||||||||||||||||||||||||
Solar 2 | Maximum | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Duty rate for anti-dumping duty on CSPV cells imported from Taiwan (as a percent) | 3.78% | 4.20% | ||||||||||||||||||||||||
Class Action Lawsuits Filed in New York | ||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||
Number of subpoenas | 2 | |||||||||||||||||||||||||
Number of lawsuits filed | 6 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues and gross profit generated from each segment | |||
Net revenues | $ 3,476,495 | $ 3,200,583 | $ 3,744,512 |
Cost of revenues | 2,786,581 | 2,482,086 | 2,969,430 |
Gross profit | 689,914 | 718,497 | 775,082 |
Income from operations | 220,430 | 258,879 | 364,657 |
Operating segment | CSI Solar Segment | |||
Revenues and gross profit generated from each segment | |||
Net revenues | 3,105,044 | 2,591,154 | 2,448,057 |
Cost of revenues | 2,496,153 | 1,977,502 | 1,941,539 |
Gross profit | 608,891 | 613,652 | 506,518 |
Income from operations | 253,105 | 267,642 | 182,488 |
Operating segment | Global Energy Segment | |||
Revenues and gross profit generated from each segment | |||
Net revenues | 726,167 | 718,735 | 1,427,245 |
Cost of revenues | 577,052 | 604,856 | 1,184,724 |
Gross profit | 149,115 | 113,879 | 242,521 |
Income from operations | 53,414 | 18,795 | 171,876 |
Elimination and unallocated items | |||
Revenues and gross profit generated from each segment | |||
Net revenues | (354,716) | (109,306) | (130,790) |
Cost of revenues | (286,624) | (100,272) | (156,833) |
Gross profit | (68,092) | (9,034) | 26,043 |
Income from operations | $ (86,089) | $ (27,558) | $ 10,293 |
SEGMENT INFORMATION - Different
SEGMENT INFORMATION - Different geographic locations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | $ 3,476,495 | $ 3,200,583 | $ 3,744,512 |
Total long-lived assets | 1,790,538 | 1,665,670 | |
Europe | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 634,550 | 780,459 | 698,568 |
Australia | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 120,403 | 313,167 | 232,409 |
Total long-lived assets | 76,330 | 63,143 | |
Germany | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 119,035 | 109,119 | 95,514 |
South Africa | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 49,375 | 93,911 | 53,739 |
Spain | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 138,972 | 78,228 | 58,811 |
Netherlands | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 96,372 | 68,770 | 83,475 |
United Kingdom | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 8,842 | 33,158 | 101,479 |
Czech | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 16,144 | 17,717 | 17,411 |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 85,407 | 66,389 | 55,730 |
The Americas | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 1,221,105 | 1,402,041 | 1,474,657 |
United States | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 696,101 | 852,231 | 999,144 |
Total long-lived assets | 64,009 | 60,177 | |
BRAZIL | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 284,478 | 395,303 | 339,964 |
Canada | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 100,284 | 30,330 | 57,478 |
Total long-lived assets | 8,898 | 14,718 | |
Mexico | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 118,846 | 94,446 | 50,004 |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 21,396 | 29,731 | 28,067 |
Asia | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 1,620,840 | 1,018,083 | 1,571,287 |
Japan | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 560,701 | 372,687 | 483,041 |
Total long-lived assets | 204,515 | 259,197 | |
PRC | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 504,656 | 317,077 | 620,520 |
Total long-lived assets | 1,002,409 | 835,991 | |
Korea | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 25,896 | 72,552 | 46,697 |
India | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 61,141 | 70,893 | 145,873 |
U.A.E | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 53,981 | 43,311 | 104,467 |
Vietnam | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 289,621 | 39,268 | 4,216 |
Thailand | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 6,108 | 12,753 | 23,511 |
Total long-lived assets | 295,240 | 331,931 | |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 118,736 | 89,542 | $ 142,962 |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Total long-lived assets | $ 139,137 | $ 100,513 |
SEGMENT INFORMATION - Each prod
SEGMENT INFORMATION - Each product or service (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues generated from each product | |||
Total net revenues | $ 3,476,495 | $ 3,200,583 | $ 3,744,512 |
CSI Solar Segment | Solar modules | |||
Revenues generated from each product | |||
Total net revenues | 2,348,724 | 2,012,059 | 1,847,305 |
CSI Solar Segment | Solar system kits | |||
Revenues generated from each product | |||
Total net revenues | 157,656 | 116,449 | 93,253 |
CSI Solar Segment | Battery storage solutions | |||
Revenues generated from each product | |||
Total net revenues | 7,899 | ||
CSI Solar Segment | China energy (includes electricity sales) | |||
Revenues generated from each product | |||
Total net revenues | 175,388 | 58,096 | 245,321 |
CSI Solar Segment | Others | |||
Revenues generated from each product | |||
Total net revenues | 60,661 | 295,244 | 131,388 |
Global Energy Segment | Solar power projects | |||
Revenues generated from each product | |||
Total net revenues | 654,827 | 652,050 | 1,319,021 |
Global Energy Segment | O&M and asset management services | |||
Revenues generated from each product | |||
Total net revenues | 26,386 | 19,750 | 13,271 |
Global Energy Segment | Others | |||
Revenues generated from each product | |||
Total net revenues | $ 44,954 | $ 46,935 | $ 94,953 |
MAJOR CUSTOMERS (Details)
MAJOR CUSTOMERS (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | |
Major Customers | |||
Number of customers with the largest receivable balances | item | 3 | 3 | |
Net revenue | Customer concentration risk | Company A | |||
Major Customers | |||
Total net revenues | $ 718,341 | ||
Accounts receivable | Accounts receivable balances | Customer one | |||
Major Customers | |||
Concentration risk (as a percent) | 7.00% | 17.00% | |
Accounts receivable | $ 27,014 | $ 74,376 | |
Accounts receivable | Accounts receivable balances | Customer two | |||
Major Customers | |||
Concentration risk (as a percent) | 3.00% | 5.00% | |
Accounts receivable | Accounts receivable balances | Customer three | |||
Major Customers | |||
Concentration risk (as a percent) | 3.00% | 4.00% |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employer's contribution (as a percent) | 16.00% | ||
Defined contributions schemes expense | $ 8,064 | $ 11,738 | $ 12,544 |
Percentage of applicable salaries contributed by the employer for housing funds | 8.00% | ||
Amount of contribution by the employer for medical insurance benefits, housing funds, unemployment and other statutory benefits | $ 11,486 | $ 11,409 | $ 11,211 |
Minimum | |||
Percentage of applicable salaries contributed by the employer for medical insurance benefits | 6.00% | ||
Percentage of applicable salaries contributed by the employer for unemployment benefits | 0.50% | ||
Percentage of applicable salaries contributed by the employer for other statutory benefits | 0.90% | ||
Maximum | |||
Percentage of applicable salaries contributed by the employer for medical insurance benefits | 8.50% | ||
Percentage of applicable salaries contributed by the employer for unemployment benefits | 0.70% | ||
Percentage of applicable salaries contributed by the employer for other statutory benefits | 2.50% |
SHARE-BASED COMPENSATION - Opti
SHARE-BASED COMPENSATION - Options to Employees (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2010 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | |||||
Maximum aggregate number of shares to be issued | 2,330,000 | ||||
Annual percentage increase in authorized shares on the first day of each of 2007, 2008 and 2009 prior to the year of amendment for awards other than incentive option shares | 1.00% | ||||
Annual percentage increase in authorized shares on the first day of each calendar year from the year of amendment for awards other than incentive option shares | 2.50% | ||||
Number of shares to be granted after expiration | 0 | ||||
Expiry term of share options | 10 years | ||||
Compensation cost | $ 0 | ||||
Options | Employees | |||||
SHARE-BASED COMPENSATION | |||||
Option exercised | 93,488 | ||||
Weighted average exercise price of shares exercised (in dollars per share) | $ 11.39 | ||||
Total intrinsic value of options exercised (in dollars) | $ 893 | $ 1,422 | $ 256 | ||
Options outstanding | 26,291 | 26,291 | |||
Weighted average exercise price of options outstanding (in dollars per share) | $ 9.33 | $ 9.33 | |||
Weighted average remaining contract terms of options outstanding (in years) | 4 months 24 days | ||||
Intrinsic value of outstanding options (in dollars) | $ 1,102 | ||||
Number of Options | |||||
Exercised (in shares) | (93,488) | ||||
Options outstanding at the end of the period (in shares) | 26,291 | ||||
Weighted Average Exercise Price | |||||
Exercised (in dollars per share) | $ 11.39 | ||||
Options outstanding at the end of the period (in dollars per share) | $ 9.33 | ||||
Weighted Average Remaining Contract Terms | |||||
Options outstanding at the end of the period | 4 months 24 days | ||||
Aggregate Intrinsic Value | |||||
Options outstanding at the end of the period | $ 1,102 | ||||
Total intrinsic value of options exercised | $ 893 | $ 1,422 | $ 256 |
SHARE-BASED COMPENSATION - RSUs
SHARE-BASED COMPENSATION - RSUs to Employees (Details) - RSUs - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SHARE-BASED COMPENSATION | |||
Shares granted to employees | 1,105,640 | 706,637 | 759,702 |
Total compensation cost at the date of grant | $ 24,918,000 | $ 12,179,000 | $ 10,225,000 |
Total recognized compensation cost | 12,350 | $ 10,682 | $ 10,258 |
Total unrecognized share-based compensation costs | $ 31,116 | ||
Weighted-average period of recognition of compensation expense | 2 years 9 months 21 days | ||
Number of Shares | |||
Unvested at the beginning of the period (in shares) | 1,659,767 | ||
Granted (in shares) | 1,105,640 | 706,637 | 759,702 |
Vested (in shares) | (736,542) | ||
Forfeited (in shares) | (140,112) | ||
Unvested at the end of the period (in shares) | 1,888,753 | 1,659,767 | |
Weighted Average Grant-Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 15.26 | ||
Granted (in dollars per share) | 22.80 | ||
Vested (in dollars per share) | 14.85 | ||
Forfeited (in dollars per share) | 16.07 | ||
Unvested at the end of the period (in dollars per share) | $ 19.78 | $ 15.26 | |
Total fair value of shares vested | $ 14,420 | $ 10,733 | $ 10,242 |
Minimum | |||
SHARE-BASED COMPENSATION | |||
Vesting period | 1 year | ||
Maximum | |||
SHARE-BASED COMPENSATION | |||
Vesting period | 4 years |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Feb. 28, 2021 $ in Millions, ¥ in Billions | JPY (¥) | USD ($) |
Subsequent event | Japan Green Infrastructure Fund [Member] | ||
SUBSEQUENT EVENTS | ||
Disposal Group, Including Discontinued Operation, Consideration | ¥ 22 | $ 208 |
Financial Statement Schedule I
Financial Statement Schedule I (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Additional Information - Financial Statement Schedule I | ||
Restricted net assets of the entity's consolidated and unconsolidated subsidiaries not available for distribution | $ 568,931 | $ 568,931,000 |
Threshold percentage of restricted net assets of the entity's consolidated and unconsolidated subsidiaries | 25.00% |
Financial Statement Schedule _2
Financial Statement Schedule I - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,178,752 | $ 668,770 |
Amounts due from subsidiaries | 5,834 | 31,232 |
Derivative assets | 23,351 | 5,547 |
Prepaid expenses and other current assets | 353,781 | 253,542 |
Total current assets | 4,185,822 | 3,252,936 |
Deferred tax assets | 170,656 | 153,963 |
Other non-current assets | 184,952 | 153,253 |
TOTAL ASSETS | 6,536,854 | 5,467,207 |
Current liabilities: | ||
Short-term borrowings | 1,202,285 | 933,120 |
Amounts due to related parties | 314 | 10,077 |
Derivative liabilities | 10,755 | 10,481 |
Other current liabilities | 237,316 | 121,527 |
Total current liabilities | 3,588,355 | 3,091,997 |
Convertible notes | 223,214 | |
Long-term borrowings | 446,090 | 619,477 |
Deferred tax liabilities | 49,080 | 56,463 |
Liability for uncertain tax positions | 14,729 | 15,353 |
TOTAL LIABILITIES | 4,644,069 | 4,042,149 |
Equity: | ||
Common shares - no par value: unlimited authorized shares, 59,371,684 and 59,820,384 shares issued and outstanding at December 31, 2019 and 2020, respectively | 687,033 | 703,806 |
kTreasury stock, at cost, 609,516 and nil common shares as of | (11,845) | |
Additional paid-in capital | (28,236) | 17,179 |
Retained earnings | 940,304 | 793,601 |
Accumulated other comprehensive loss | (28,679) | (109,607) |
Total Canadian Solar Inc. shareholders' equity | 1,570,422 | 1,393,134 |
TOTAL LIABILITIES AND EQUITY | 6,536,854 | 5,467,207 |
Parent Company | Reportable Legal Entities [Member] | ||
Current assets: | ||
Cash and cash equivalents | 33,709 | 1,362 |
Restricted cash | 1,316 | 950 |
Amounts due from subsidiaries | 288,226 | 341,557 |
Prepaid expenses and other current assets | 22,672 | 9,846 |
Total current assets | 347,034 | 353,715 |
Investment in subsidiaries | 1,525,951 | 1,383,935 |
Investments in affiliates | 5,322 | 2,483 |
Deferred tax assets | 21,358 | 23,657 |
Other non-current assets | 40,456 | 69,070 |
TOTAL ASSETS | 1,940,121 | 1,832,860 |
Current liabilities: | ||
Short-term borrowings | 80,000 | |
Amounts due to related parties | 340,502 | |
Other current liabilities | 32,969 | 8,534 |
Total current liabilities | 112,969 | 353,749 |
Convertible notes | 223,214 | |
Long-term borrowings | 50,000 | |
Deferred tax liabilities | 20,169 | 22,936 |
Liability for uncertain tax positions | 13,347 | 13,041 |
TOTAL LIABILITIES | 369,699 | 439,726 |
Equity: | ||
Common shares - no par value: unlimited authorized shares, 59,371,684 and 59,820,384 shares issued and outstanding at December 31, 2019 and 2020, respectively | 687,033 | 703,806 |
kTreasury stock, at cost, 609,516 and nil common shares as of | (11,845) | |
Additional paid-in capital | (28,236) | 17,179 |
Retained earnings | 940,304 | 793,601 |
Accumulated other comprehensive loss | (28,679) | (109,607) |
Total Canadian Solar Inc. shareholders' equity | 1,570,422 | 1,393,134 |
TOTAL LIABILITIES AND EQUITY | $ 1,940,121 | $ 1,832,860 |
Financial Statement Schedule _3
Financial Statement Schedule I - BALANCE SHEETS Additional Information (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Statements | ||
Common share, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 59,820,384 | 59,371,684 |
Common shares, shares outstanding (in shares) | 59,820,384 | 59,371,684 |
Parent Company | ||
Condensed Financial Statements | ||
Treasury Stock, Common, Shares | 609,516 | |
Reportable Legal Entities [Member] | Parent Company | ||
Condensed Financial Statements | ||
Common share, par value (in dollars per share) | $ 0 | |
Common shares, shares issued (in shares) | 59,820,384 | 59,371,684 |
Common shares, shares outstanding (in shares) | 59,820,384 | 59,371,684 |
Treasury Stock, Common, Shares | 0 |
Financial Statement Schedule _4
Financial Statement Schedule I - STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements | |||
Net revenues | $ 3,476,495 | $ 3,200,583 | $ 3,744,512 |
Cost of revenues | 2,786,581 | 2,482,086 | 2,969,430 |
Gross profit | 689,914 | 718,497 | 775,082 |
Operating expenses: | |||
General and administrative expenses | 225,597 | 242,783 | 245,376 |
Research and development expenses | 45,167 | 47,045 | 44,193 |
Other operating loss, net | (25,523) | (10,536) | (44,546) |
Total operating expenses | 469,484 | 459,618 | 410,425 |
Income (loss) from operations | 220,430 | 258,879 | 364,657 |
Other income (expenses): | |||
Interest expense | (71,874) | (81,326) | (106,032) |
Interest income | 9,306 | 12,039 | 11,207 |
(Loss) gain on change in fair value of derivatives, net | 50,001 | (22,218) | (19,230) |
Foreign exchange gain (loss) | (64,820) | 10,370 | 6,529 |
Investment (loss) gain | (8,559) | 1,929 | 41,361 |
Other income (expenses), net: | (85,946) | (79,206) | (66,165) |
Income (loss) before income taxes and equity in earnings (loss) of subsidiaries and unconsolidated investees | 134,484 | 179,673 | 298,492 |
Income tax (expense) benefit | 1,983 | (42,066) | (61,969) |
Net income attributable to Canadian Solar Inc. | 146,703 | 171,585 | 237,070 |
Reportable Legal Entities [Member] | Parent Company | |||
Condensed Financial Statements | |||
Net revenues | 2,170 | 4,351 | 86,755 |
Cost of revenues | 4,188 | 53,926 | |
Gross profit | 2,170 | 163 | 32,829 |
Operating expenses: | |||
Selling and distribution expenses | 2,174 | 1,727 | 2,518 |
General and administrative expenses | 49,688 | 29,093 | 18,970 |
Research and development expenses | 692 | 462 | 795 |
Other operating loss, net | 77 | ||
Total operating expenses | 52,554 | 31,282 | 22,360 |
Income (loss) from operations | (50,384) | (31,119) | 10,469 |
Other income (expenses): | |||
Interest expense | (9,628) | (3,005) | (9,170) |
Interest income | 30,536 | 25,272 | 32,370 |
(Loss) gain on change in fair value of derivatives, net | 25,341 | (5,193) | (2,671) |
Foreign exchange gain (loss) | 13,768 | (11,318) | 22,255 |
Investment (loss) gain | (116,879) | ||
Other income (expenses), net: | 60,017 | (111,123) | 42,784 |
Income (loss) before income taxes and equity in earnings (loss) of subsidiaries and unconsolidated investees | 9,633 | (142,242) | 53,253 |
Income tax (expense) benefit | (34,223) | 5,230 | (12,133) |
Equity in earnings of subsidiaries | 171,293 | 308,597 | 195,950 |
Net income attributable to Canadian Solar Inc. | $ 146,703 | $ 171,585 | $ 237,070 |
Financial Statement Schedule _5
Financial Statement Schedule I - STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements | |||
Net income | $ 147,246 | $ 166,555 | $ 242,431 |
Other comprehensive income (loss) (net of tax of nil) | 76,188 | 319 | (50,577) |
Comprehensive income attributable to Canadian Solar Inc. | 227,631 | 172,127 | 180,955 |
Reportable Legal Entities [Member] | Parent Company | |||
Condensed Financial Statements | |||
Net income | 146,703 | 171,585 | 237,070 |
Other comprehensive income (loss) (net of tax of nil) | 80,928 | 542 | (56,115) |
Comprehensive income attributable to Canadian Solar Inc. | $ 227,631 | $ 172,127 | $ 180,955 |
Financial Statement Schedule _6
Financial Statement Schedule I - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income | $ 147,246 | $ 166,555 | $ 242,431 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 209,118 | 159,723 | 129,256 |
Accretion of convertible notes | 388 | ||
Loss (gain) on change in fair value of derivatives | (50,001) | 22,218 | 19,230 |
Share-based compensation | 12,350 | 10,682 | 10,258 |
Changes in operating assets and liabilities: | |||
Accounts receivable trade | 65,379 | 51,670 | (179,607) |
Amounts due from related parties | 26,828 | (17,347) | 9,237 |
Prepaid expenses and other current assets | (72,188) | 33,283 | (2,208) |
Other non-current assets | (11,913) | (24,037) | 9,387 |
Accounts payable | (89,180) | 209,175 | 47,756 |
Amounts due to related parties | (9,773) | (5,798) | 10,467 |
Liability for uncertain tax positions | (623) | (4,775) | 10,863 |
Net deferred tax assets | (21,439) | (12,455) | 37,591 |
Net settlement of derivatives | 33,054 | (27,012) | 28,731 |
Net cash provided by (used in) operating activities | (120,541) | 600,111 | 216,280 |
Investing activities: | |||
Net cash provided by (used in) investing activities | (319,662) | (294,102) | 29,071 |
Financing activities: | |||
Repayment of short-term borrowings | (1,561,597) | (1,649,721) | (2,368,967) |
Proceeds from changes in ownership interests in subsidiaries without change of control | 261,332 | 11,488 | 10,470 |
(Repayment of) proceeds from convertible notes | (127,500) | ||
Proceeds from exercise of stock options | 1,035 | 875 | 769 |
Net cash provided by (used in) financing activities | 823,501 | (34,614) | (463,613) |
Effect of exchange rate changes | 50,997 | (6,965) | (38,725) |
Net increase (decrease) in cash and cash equivalents | 434,295 | 264,430 | (256,987) |
Cash and cash equivalents at the beginning of the year | 1,205,420 | 940,990 | 1,190,134 |
Cash and cash equivalents at the end of the year | 1,639,715 | 1,205,420 | 940,990 |
Supplemental disclosure of cash flow information: | |||
Interest paid (net of amounts capitalized) | 78,747 | 85,362 | 103,236 |
Parent Company | Reportable Legal Entities [Member] | |||
Operating activities: | |||
Net income | 146,703 | 171,585 | 237,070 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 156 | 154 | 21 |
Accretion of convertible notes | 388 | ||
Loss on disposal of subsidiaries | 116,879 | ||
Loss (gain) on change in fair value of derivatives | (25,341) | 5,193 | 2,671 |
Allowance for credit losses | 357 | (83) | (212) |
Equity in earnings of subsidiaries | (171,293) | (308,597) | (195,950) |
Share-based compensation | 12,350 | 10,682 | 10,259 |
Changes in operating assets and liabilities: | |||
Amounts due from related parties | 287,865 | (43,630) | (184,755) |
Prepaid expenses and other current assets | (13,183) | 17,012 | (7,778) |
Other non-current assets | 28,459 | (1,158) | (149) |
Amounts due to related parties | (340,502) | 183,675 | 15,598 |
Other current liabilities | 31,809 | (2,707) | (22,058) |
Liability for uncertain tax positions | 306 | 408 | 6,008 |
Net deferred tax assets | (468) | (1,292) | 9,230 |
Net settlement of derivatives | 19,517 | (11,125) | 21,450 |
Net cash provided by (used in) operating activities | (22,877) | 136,996 | (108,595) |
Investing activities: | |||
Investment in subsidiaries | (126,487) | (36,146) | (1,051) |
Investments in affiliates | (2,766) | (2,483) | |
Funding of loans to subsidiaries | (264,848) | (40,600) | (94,000) |
Repayment of loans from subsidiaries | 20,485 | 12,809 | 375,635 |
Net cash provided by (used in) investing activities | (373,616) | (66,420) | 280,584 |
Financing activities: | |||
Repayment of short-term borrowings | 30,000 | (151,000) | |
Proceeds from (repayment of) long-term borrowings | 50,000 | ||
Proceeds from changes in ownership interests in subsidiaries without change of control | 224,553 | ||
(Repayment of) proceeds from convertible notes | 222,826 | ||
Payments of issuance costs on convertible notes | (127,500) | ||
Payments for repurchase of treasury stock | (5,963) | (11,845) | |
Proceeds from exercise of stock options | 1,035 | 875 | 769 |
Net cash provided by (used in) financing activities | 472,451 | (88,470) | (150,231) |
Effect of exchange rate changes | (43,246) | 11,110 | (29,618) |
Net increase (decrease) in cash and cash equivalents | 32,712 | (6,784) | (7,860) |
Cash and cash equivalents at the beginning of the year | 2,313 | 9,097 | 16,957 |
Cash and cash equivalents at the end of the year | 35,025 | 2,313 | 9,097 |
Supplemental disclosure of cash flow information: | |||
Interest paid (net of amounts capitalized) | $ 7,966 | $ 4,644 | $ 10,154 |
Appendix 1 - Major Subsidiari_2
Appendix 1 - Major Subsidiaries of CSI (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Cells Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 79.59% |
Canadian Solar Manufacturing (Luoyang) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Manufacturing (Changshu) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Cells Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar (USA) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Japan K.K. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Solutions Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar EMEA GmbH | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar (Australia) Pty Limited | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar International Limited | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar International Limited | CSI Solar Power Group Co., Ltd. (formerly named/known as "CSI Solar Power (China) Inc.") | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 79.59% |
Canadian Solar O and M (Ontario) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Suzhou Sanysolar Materials Technology Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar South East Asia Pte. Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Brazil Commerce, Import and Export of Solar Panels Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Construction (USA) LLC | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Project K.K. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar UK Projects Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Changsu Tegu New Material Technology Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Changshu Tlian Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Recurrent Energy, LLC | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Manufacturing Vietnam Co., Ltd | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Energy Private Limited | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar MSS (Australia) Pty Ltd (formerly named/known as "Canadian Solar Australia 1 Pty Ltd.") | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Manufacturing (Thailand) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 99.99992% |
Canadian Solar Sunenergy (Baotou) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Solar New Energy (Suzhou) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 90.00% |
CSI Cells (Yanchang) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 70.00% |
Canadian Solar Middle East DMCC | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Investment Management (SuZhou) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Construction (Australia) Pty Ltd | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSUK Energy Systems Construction and Generation JSC | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Modules (JiaXing) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Wafer (LuoYang) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Argentina Investment Holding Ltd | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar New Energy Holding Company Limited [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Energy Holding Singapore Pte. Ltd. [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Netherlands Cooperative U.A. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar SSES (Canada) Inc. [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |