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LEASE

12 Months Ended

Dec. 31, 2024

12. LEASE

The Company leases manufacturing facilities in various regions where the Company operates. The Company also leases land for construction and operations of solar power and battery energy storage systems, and leases office space, office equipment and motor vehicles for its sales and administrative functions. Leased assets are mainly located in the United States, PRC and Europe.

The Company capitalizes lease costs to its project assets and solar power and battery energy storage systems, when such costs qualify for capitalization as during periods in which activities necessary to get the property ready for its intended use are in progress.

The leases considered as ROU assets have various terms of up to 50 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 expense were as follows:


	Years Ended December 31,
	2023		2024
Finance lease cost:
Amortization of finance lease ROU assets	$	49,483	$	75,189
Interest on finance lease liabilities		5,368		8,986
Operating fixed lease cost		24,489		24,992
Short-term lease cost		1,824		467
Total lease expense	$	81,164	$	109,634

12. LEASE (Continued)

Supplemental balance sheet information for leases is presented below:


		December 31,		December 31,
	Balance Sheet Location	2023		2024
Assets:
Operating lease ROU assets	Right-of-use assets	$	132,786	$	280,420
Land use rights, net	Right-of use assets		104,221		98,128
Total operating lease ROU assets			237,007		378,548

Finance lease ROU assets	Property, plant and equipment, net		163,553		178,151
Total finance lease ROU assets		$	163,553	$	178,151

Liabilities:
Operating lease	Operating lease liabilities – current	$	20,204	$	21,327
Operating lease	Operating lease liabilities – non-current		116,846		271,849
Total operating lease liabilities		$	137,050	$	293,176

Finance lease	Other current liabilities	$	88,180	$	54,287
Finance lease	Other non-current liabilities		71,651		132,106
Total finance lease liabilities		$	159,831	$	186,393

Other supplemental information related to leases is presented below:


	Years Ended December 31,
	2023		2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows for finance leases	$	(5,368)	$	(8,986)
Operating cash outflows for operating leases		(19,686)		(15,032)
Financing cash outflows for finance leases		(42,319)		(72,211)
ROU assets obtained in exchange for new finance lease liabilities in non-cash transaction		167,726		89,787
ROU assets obtained in exchange for new operating lease liabilities in non-cash transaction		119,412		184,481
ROU assets disposed through early termination of operating leases in non-cash transaction	$	(3,288)	$	(954)


	December 31,		December 31,
	2023		2024
Weighted average remaining lease term - finance leases (in years)	4.0		6.8
Weighted average remaining lease term - operating leases (in years)	14.4		15.5
Weighted average discount rate - finance lease	5.5	%	5.3	%
Weighted average discount rate - operating lease	5.7	%	5.0	%

12. LEASE (Continued)

As of December 31, 2024, maturities of operating and finance lease liabilities were as follows:


	Operating		Finance		Total
	Leases		Leases		Leases
Year Ending December 31,
2025	$	25,641	$	57,758	$	83,399
2026		27,541		27,049		54,590
2027		26,247		26,236		52,483
2028		27,314		25,010		52,324
2029		27,500		13,797		41,297
Thereafter		328,346		49,463		377,809
Total lease payments		462,589		199,313		661,902
Less: imputed interest		169,413		12,920		182,333
Present value of lease liabilities	$	293,176	$	186,393	$	479,569

Analysis as:
Short-term	$	21,327	$	54,287	$	75,614
Long-term		271,849		132,106		403,955
Total lease liabilities	$	293,176	$	186,393	$	479,569