0001193125-20-305718 | S-1 | XBRL Viewer

Cover	9 Months Ended
Cover	Sep. 30, 2020
Cover [Abstract]
Document Type	S-1
Amendment Flag	false
Entity Registrant Name	ARRAY TECHNOLOGIES, INC.
Entity Central Index Key	0001820721
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Current Assets
Cash	$ 27,144	$ 310,262	$ 40,826
Restricted cash	0	50,995	0
Accounts receivable, net	118,098	96,251	51,557
Inventories, net	96,515	148,024	55,172
Income tax receivables	16,518	628	10,569
Prepaid expenses and other	6,302	13,524	15,752
Total Current Assets	264,577	619,684	173,876
Property, Plant and Equipment, net	9,620	10,660	11,029
Goodwill	69,727	69,727	69,727
Other Intangible Assets, net	204,573	223,510	248,760
Deferred Tax Asset	3,775	0	6,469
Total Assets	552,272	923,581	509,861
Current Liabilities
Accounts payable	47,300	129,584	22,803
Accounts payable - related party	2,232	5,922	7,222
Accrued expenses and other	22,740	17,755	19,003
Accrued warranty reserve	2,884	2,592	1,935
Income tax payable	8,528	1,944	0
Deferred revenue liability			21,787
Deferred revenue	44,781	328,781
Current portion of contingent consideration	18,123	6,293	2,673
Revolving loan	102	70	39,148
Current portion of term loan	0	55,879	20,000
Current portion of related party loans	0	41,800	0
Total Current Liabilities	146,690	590,620	134,571
Long-Term Liabilities
Deferred tax liability	12,187	15,853	0
Contingent consideration, net of current portion	16,135	11,957	14,937
Term loan, net of current portion		0	59,321
Revolving loan and term loan	0	0
Related party loans, net of current portion		0	36,558
Total Long-Term Liabilities	28,322	27,810	110,816
Total Liabilities	175,012	618,430	245,387
Commitments and Contingencies
Member's Equity	377,260	305,151	264,474
Total Liabilities and Member's Equity	$ 552,272	$ 923,581	$ 509,861

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Revenue	$ 692,096	$ 423,189	$ 647,899	$ 290,783
Cost of revenue	524,747	333,024	497,138	279,228
Gross Profit	167,349	90,165	150,761	11,555
Operating Expenses
General and administrative	34,772	27,939	41,852	46,053
Contingent consideration	16,008	178	640	(825)
Depreciation and amortization	19,117	19,133	25,500	26,708
Total Operating Expenses	69,897	47,250	67,352	72,761
Income (Loss) from Operations	97,452	42,915	83,409	(61,206)
Other Expense
Other expense, net	(2,163)	106	(33)	(447)
Interest expense	(8,313)	(13,879)	(18,797)	(19,043)
Total Other Expense	(10,476)	(13,773)	(18,830)	(19,490)
Income Before Income Tax Expense	86,976	29,142	64,579	(80,696)
Income Tax Expense	18,131	16,177	24,834	(19,932)
Net Income	$ 68,845	$ 12,965	$ 39,745	$ (60,764)
Basic and Diluted
Basic and Diluted	$ 0.57	$ 0.11	$ 0.33	$ (0.51)
Weighted Average Number of Units
Basic and Diluted	119,994	119,994	119,994	119,994

Condensed Consolidated Statements of Changes in Member's Equity $ in Thousands	USD ($) shares
Beginning balance at Dec. 31, 2017	$ 275,238
Beginning balance (in shares) at Dec. 31, 2017 \| shares	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Capital contributions	$ 50,000
Net income (loss)	(60,764)
Ending balance at Dec. 31, 2018	$ 264,474
Ending balance (in shares) at Dec. 31, 2018 \| shares	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Capital contributions	$ 133
Net income (loss)	12,965
Ending balance at Sep. 30, 2019	$ 277,572
Ending balance (in shares) at Sep. 30, 2019 \| shares	1
Beginning balance at Dec. 31, 2018	$ 264,474
Beginning balance (in shares) at Dec. 31, 2018 \| shares	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Capital contributions	$ 133
Equity based compensation	799
Net income (loss)	39,745
Ending balance at Dec. 31, 2019	$ 305,151
Ending balance (in shares) at Dec. 31, 2019 \| shares	1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity based compensation	$ 3,264
Net income (loss)	68,845
Ending balance at Sep. 30, 2020	$ 377,260
Ending balance (in shares) at Sep. 30, 2020 \| shares	1

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Cash Flows from Operating Activities
Net income	$ 68,845	$ 12,965	$ 39,745	$ (60,764)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for (recovery of) bad debts	493	(3,987)	(3,986)	3,720
Deferred tax (benefit) expense	(3,666)	14,539	22,322	(20,062)
Depreciation and amortization	20,587	20,487	27,316	28,450
Amortization of debt discount and issuance costs	2,160	3,004	3,968	2,991
Interest paid-in-kind	3,421	2,256	2,832	705
Equity based compensation	3,264	0	799	0
Change in fair value of contingent consideration	16,008	178	640	(825)
Warranty provision (expense) benefit			1,387	(95)
Warranty provision	633	244
Provision for inventory obsolescence	2,517	2,201	1,742	3,098
Changes in operating assets and liabilities
Accounts receivable	(22,340)	(63,241)	(40,708)	19,399
Inventories	48,992	(40,050)	(94,594)	(10,261)
Income tax receivables	(15,890)	8,445	9,941	(11)
Prepaid expenses and other	7,222	9,848	2,228	(3,010)
Accounts payable	(85,974)	33,502	105,481	6,497
Accrued expenses and other	4,644	(13,221)	(1,978)	11,058
Income tax payable	6,584	2,458	1,944	0
Deferred revenue	(284,000)	(1,148)	306,994	7,383
Net Cash Provided by (Used in) Operating Activities	(226,500)	(11,520)	386,073	(11,727)
Cash Flows from Investing Activities
Purchase of property, plant and equipment	(610)	(784)	(1,697)	(2,073)
Internal-use software modification costs			0	(4,357)
Net Cash Used in Investing Activities	(610)	(784)	(1,697)	(6,430)
Cash Flows from Financing Activities
Proceeds from (payments on) revolving loan	32	(5,807)	(39,078)	30,465
Principal payments on term loan	(57,702)	(20,000)	(25,000)	(64,587)
Proceeds from related party loans			0	50,600
Payments on related party loans	(45,558)	0	0	(12,000)
Payments for debt issuance costs			0	(3,615)
Deferred offering costs	(3,775)	0
Capital contributions	0	133	133	50,000
Net Cash Provided by (Used in) Financing Activities	(107,003)	(25,674)	(63,945)	50,863
Net Decrease in Cash and Restricted Cash	(334,113)	(37,978)	320,431	32,706
Cash and Restricted Cash, beginning of year	361,257	40,826	40,826	8,120
Cash and Restricted Cash, end of year	$ 27,144	$ 2,848	361,257	40,826
Supplemental Cash Flow Information
Cash paid for interest			11,343	14,257
Cash paid for income taxes			$ 443	$ 176

Organization and Business

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements Abstract

Organization and Business

1.	Organization and Business

ATI Intermediate Holdings, LLC (the “Company”) is a Delaware corporation formed in December 2018 as a wholly owned subsidiary of ATI Investment Parent, LLC (the “Parent”). On October 14, 2020, we converted from a Delaware limited liability company to a Delaware corporation and changed our name to Array Technologies, Inc. The Company is headquartered in Albuquerque, New Mexico, and manufactures and supplies solar tracking systems and related products for customers across the United States and internationally. The Company, through its wholly-owned subsidiaries, High Desert Finance, LLC (“HDF”) and ATI Investment Holdings, Inc. (“ATI Investment”), owns two other subsidiaries through which its conducts substantially all operations; Array Technologies, Inc. and Array Technologies Patent Holdings Co., LLC (“Array”). Parent acquired Array on July 8, 2016.

1.	Organization and Business

ATI Intermediate Holdings, LLC (the “Company”) is a Delaware limited liability company formed in December 2018 as a wholly owned subsidiary of ATI Investment Parent, LLC (the “Parent”). The Company is headquartered in Albuquerque, New Mexico, and manufactures and supplies solar tracking systems and related products for customers across the United States and internationally. The Company, through its wholly-owned subsidiaries, High Desert Finance, LLC (“HDF”) and ATI Investment Holdings, Inc. (“ATI Investment”), owns two other subsidiaries through which its conducts substantially all operations: Array Technologies, Inc. and Array Technologies Patent Holdings Co., LLC (“Array”). Parent acquired Array on July 8, 2016.

Summary of Significant Accounting Policies

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Basis of Accounting and Presentation

The accompanying consolidated financial statements were prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Corporate Conversion and Stock Split

On October 14, 2020, prior to the issuance of any of our shares of common stock in our initial public offering (the “IPO”), we converted from a Delaware limited liability company to a Delaware corporation. In connection with the corporate conversion we converted all 1,000 of our outstanding member units into 100,000,000 shares of common stock and then completed a stock split of 1.19994-for-1. The corporate conversion and stock split representing 119,994,467 shares of common stock have been adjusted retroactively for the purposes of calculating basic and diluted earnings per share.

Principles of Consolidation

The consolidated financial statements include the accounts of ATI Intermediate Holdings, LLC and its Subsidiaries, which include HDF, ATI Investment and Array. All intercompany accounts and transactions have been eliminated upon consolidation.

Unaudited Interim Financial Information

The accompanying balance sheet as of September 30, 2020, the statements of operations, the statements of member’s equity and statements of cash flows for the nine months ended September 30, 2019 and 2020 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of September 30, 2020 and the results of its operations and its cash flows for the nine months ended September 30, 2019 and 2020. The financial data and other information disclosed in these notes related to the nine months ended September 30, 2019 and 2020 are also unaudited. The results for the nine months ended September 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020, any other interim periods, or any future year or period. The balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date. Certain disclosures have been condensed or omitted from the interim financial statements. These financial statements should be read in conjunction with the Company’s audited financial statements included elsewhere in this prospectus.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Significant estimates include impairment of goodwill, impairment of long-lived assets, fair value of contingent consideration, allowance for doubtful accounts, reserve for excess or obsolete inventories, valuation of deferred tax assets and warranty reserve. Management believes that these estimates and assumptions provide a reasonable basis for the fair presentation of the consolidated financial statements.

Impact of COVID-19 Pandemic

In December 2019, a novel strain of coronavirus, SARS-CoV-2, which causes coronavirus disease 2019, or COVID-19, surfaced in Wuhan, China. Since then, COVID-19 has spread to multiple countries, including the United States. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. To date, the Company has maintained uninterrupted business operations with normal turnaround times for its delivery of solar tracking systems. The Company has implemented adjustments to its operations designed to keep employees safe and comply with federal, state and local guidelines, including those regarding social distancing. The extent to which COVID19 may further impact the Company’s business, results of operations, financial condition and cash flows will depend on future developments, which are highly uncertain and cannot be predicted with confidence. In response to COVID-19, the United States government has passed legislation and taken other actions to provide financial relief to companies and other organizations affected by the pandemic.

Deferred Offering Costs

Deferred offering costs consist primarily of legal and accounting fees, which are direct and incremental fees related to the IPO. The deferred offering costs will be offset against the IPO proceeds, which will be recorded in the fourth quarter of 2020. As of September 30, 2020, the Company had incurred $3.3 million in deferred offering costs, which are reported as Other assets - long-term on the condensed consolidated balance sheets. Additionally, as of September 30, 2020, the Company had incurred debt issuance costs of $0.5 million associated with a new senior secured credit facility that was obtained in October 2020.

Revenue Recognition

The Company recognized revenues from the sale of solar tracking systems and parts and determines its revenue recognition through the following steps (i) identification of the contract or contracts with a customer, (ii) identification of the performance obligations within the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligations within the contract, and (v) recognition of revenue when, or as the performance obligation has been satisfied.

Performance Obligations

The Company’s contracts with customers are predominately accounted for as one performance obligation, as the majority of tasks and services is part of a single project or capability. As these contracts are typically a customized assembly for a customer-specific solution, the Company uses the expected cost-plus margin approach to estimate the standalone selling price of each performance obligation. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. In assessing the recognition of revenue, the Company also evaluates whether two or more contracts should be combined and accounted for as one contract and if the combined or single contract should be accounted for as multiple performance obligations which could change the amount of revenue and profit (loss) recorded in a period. Change orders may include changes in specifications or design, manner of performance, equipment, materials, scope of work, and/or the period of completion of the project. The Company analyzes its change orders to determine if they should be accounted for as a modification to an existing contract or a new stand-alone contract. The Company’s change orders are generally modifications to existing contracts and are included in the total estimated contract revenue when it is probable that the change order will result in additional value that can be reliably estimated and realized. The majority of the Company’s contracts do not contain variable consideration provisions as a continuation of the original contract.

The Company’s performance obligations are satisfied predominately over-time as work progresses for its custom assembled solar systems, utilizing an output measure of completed products and based on the timing of the product’s shipments considering the shipping terms described in the contract.

Revenue recognized for the Company’s part sales are recorded at a point in time and recognized when obligations under the terms of the contract with our customer are satisfied. Generally, this occurs with the transfer of control of the asset, which is in line with shipping terms.

Contract Estimates

Accounting for contracts utilizing the over-time method and their expected cost-plus margins is based on various assumptions to project the outcome of future events that can exceed a year. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; and the availability and timing of funding from the customer. The Company reviews and updates its contract-related estimates each reporting period. The Company recognizes adjustments in estimated expected cost-plus on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the period it is identified.

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the consolidated balance sheets. The majority of the Company’s contract amounts are billed as work progresses in accordance with agreed-upon contractual terms, which generally coincide with the shipment of one or more phases of the project. Billing sometimes occurs subsequent to revenue recognition, resulting in contract assets. The changes in contract assets (i.e. unbilled receivables) and the corresponding amounts recorded in revenue relate to fluctuations in the timing and volume of billings for the Company’s revenue recognized over-time. As of December 31, 2019 and September 30, 2020, contract assets consisting of unbilled receivables totaling $16.1 million and $34.8 million, respectively, are recorded within accounts receivable on the consolidated balance sheets on a contract-by-contract basis at the end of the reporting period. The Company also receives advances or deposits from its customers, before revenue is recognized, resulting in contract liabilities. The changes in contract liabilities (i.e. deferred revenue) relate to advanced orders and payments received by the Company and are the result of customers looking to take advantage of certain U.S. federal tax incentives set to decrease at the end of 2019. Based on the terms of the tax incentives the customer must pay for the goods prior to December 31, 2019 which accounts for the increase in the advanced orders and payments and the resulting deferred revenue at December 31, 2019 and subsequent reduction for deliveries which occurred during the nine months ended September 30, 2020. As of December 31, 2019 and September 30, 2020, contract liabilities consisting of deferred revenue were $328.8 million and $44.8 million, respectively, and were recorded on a contract-by-contract basis at the end of each reporting period. During the nine months ended September 30, 2019 and 2020, the Company converted $328.8 million and $20.5 million deferred revenue to revenue, respectively, which represented 100% and 99.2% of the prior years deferred revenue balance.

Remaining Performance Obligations

As of September 30, 2020, the Company had $227.0 million of remaining performance obligations. The Company expects to recognize revenue on 100% of these performance obligations in the next twelve months.

Equity-Based Compensation

The Company recognizes equity-based compensation expense based on the equity award’s grant date fair value. The determination of the fair value of equity awards issued to employees of the Company is based upon the underlying unit price and a number of assumptions, including volatility, performance period, risk-free interest rate and expected dividends. The Company accounts for forfeitures as they occur. The grant date fair value of each unit is amortized on a straight-line basis over the requisite service period.

Earnings per Unit (“EPU”)

Basic earnings per unit, or EPU, is computed by dividing net income available to unit holders by the weighted average units outstanding during the period. Diluted EPU takes into account the potential dilution that could occur if securities or other contracts to issue units, such as stock options and unvested restricted stock units, were exercised and converted into units. Diluted EPU is computed by dividing net income available to unit holders by the weighted average units outstanding during the period, increased by the number of additional units that would have been outstanding if the potential units had been issued and were dilutive.

CARES Act Payroll Tax Deferral

The CARES Act permits employers to defer the payment of the employer share of social security taxes due for the period beginning March 27, 2020 and ending December 31, 2020. Of the amounts deferred, 50% are required to be paid by December 31, 2021 and the remaining 50% are required to be paid by December 31, 2022. The Company began deferring payment of the employer share of social security taxes in April 2020. As of September 30, 2020, the Company had deferred payment of $0.7 million of such taxes.

Credit Concentration

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, restricted cash and accounts receivable. The Company has no significant off balance sheet concentrations of credit risk. The Company maintains its cash and restricted cash with financial institutions that are believed to be of high credit quality and has not experienced any material losses relating to any cash and restricted cash. As of December 31, 2019 and September 30, 2020, $360.9 million and $26.6 million, respectively, of the Company’s bank balances were uninsured and uncollateralized and exposed to custodial credit risk.

The Company’s customer base consists primarily of solar contractors. The Company does not require collateral on its trade receivables. For the nine months ended September 30, 2019, the Company’s largest customer and five largest customers constituted 21.2% and 55.2% of total revenues, respectively. Three customers make up 43.1% of revenue and are the only customers constituting greater than 10% of total revenue. For the nine months ended September 30, 2020, the Company’s largest customer and five largest customers constituted 14.3% and 45.9% of total revenues, respectively. Two customers make up 24.5% of revenue and are the only customers greater than 10% of total revenue. The loss of any one of the Company’s top five customers could have a materially adverse effect on the revenues and profits of the Company. Further, the Company’s trade accounts receivable are from companies within the solar industry and, as such, the Company is exposed to normal industry credit risks. As of December 31, 2019, the Company’s largest customer and five largest customers constituted 29.5% and 69.0% of trade accounts receivable, respectively. As of September 30, 2020, the Company’s largest customer and five largest customers constituted 21.7% and 23.9% of trade accounts receivable, respectively. The Company continually evaluates its reserves for potential credit losses and establishes reserves for such losses.

Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company follows a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs may be used to measure fair value, as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity that are significant to the fair value of the assets or liabilities.

Assets valued using Level 1 inputs are determined by quoted market prices derived from an active market and Level 2 inputs are based primarily on quoted prices for similar assets in active or inactive markets. Level 3 inputs are valued by management’s assumptions about the assumptions the market participants would utilize in pricing the asset.

The fair values of the Company’s cash, restricted cash, accounts receivable, and accounts payable approximate their carrying values due to their short maturities. The carrying value of the Company’s notes payable and related party loans approximates their fair values, as they are based on current market rates at which the Company could borrow funds with similar terms.

The Company follows the provisions of FASB ASC Topic 820-10 for nonfinancial assets and liabilities measured at fair value on a non-recurring basis. As it relates to the Company, this applies to certain nonfinancial assets and liabilities acquired in business combinations and measurement of goodwill impairment and non-amortizable intangibles and is thereby measured at fair value. The Company has determined such fair value primarily by third-party valuations.

New Accounting Standards

To be adopted

In February 2016, the FASB issued ASU No. 2016-02 (Topic 842) “Leases” which supersedes the lease recognition requirements in ASC Topic 840, “Leases.” Under ASU No. 2016-02, lessees are required to recognize assets and liabilities on the consolidated balance sheets for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance or operating. For companies that are not emerging growth companies (“EGCs”), the ASU is effective for fiscal years beginning after December 15, 2018. For EGCs, the ASU is effective for fiscal years beginning after December 15, 2021. The Company will adopt the new standard using the modified retrospective method, under which the Company will apply Topic 842 to existing and new leases as of the effective date, but prior periods will not be restated and will continue to be reported under Topic 840 guidance in effect during those periods. The Company anticipates that the adoption will not have a material impact on its consolidated statements of operations or its consolidated statements of cash flows but expects to recognize right-of-use assets and liabilities for lease obligations associated with its operating leases.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which was subsequently amended by ASU No. 2018-19 and ASU No. 2019-10, requires the measurement of expected credit losses for financial instruments carried at amortized cost held at the reporting date based on historical experience, current conditions and reasonable forecasts. The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The standard is effective for fiscal years beginning after December 15, 2022 or December 15, 2021 if we lose our EGC status in 2021. The Company will continue to assess the possible impact of this standard, but currently does not expect the adoption of this standard will have a significant impact on its consolidated financial statements and its limited history of bad debt expense relating to trade accounts receivable.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement against or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. Early adoption is permitted upon issuance of the update. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”), which is intended to simplify various aspects of the accounting for income taxes. ASU No. 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.

2.	Summary of Significant Accounting Policies

Basis of Accounting and Presentation

Principles of Consolidation

Corporate Conversion and Stock Split

On October 14, 2020, prior to the issuance of any of our shares of common stock in our initial public offering (“IPO”), we converted from a Delaware limited liability company to a Delaware corporation. In connection with the corporate conversion we converted all 1,000 of our outstanding member units into 100,000,000 shares of common stock and then completed a stock split of 1.9994-for-1. The corporate conversion and stock split representing 119,994,467 shares of common stock have been adjusted retroactively for the purposes of calculating basic and diluted earnings per share.

Use of Estimates

Restricted Cash

At December 31, 2019, the Company had $51.0 million in restricted cash. The restricted cash secures its standby letter of credit facility which expires August 31, 2020 (see Note 8). As such, the restricted cash is considered a current asset in the accompanying balance sheets.

The following table provides a reconciliation of cash and restricted cash at December 31, 2018 and 2019 as reported within the consolidated balance sheets to the same such amounts shown in the consolidated statements of cash flows (in thousands):


	2018		2019
Cash	$	40,826	$	310,262
Restricted cash		—		50,995

Cash and restricted cash	$	40,826	$	361,257

Accounts Receivable

The Company’s accounts receivable are due primarily from solar contractors across the United States and internationally. Credit is extended in the normal course of business based on evaluation of a customer’s financial condition and, generally, collateral is not required. Trade receivables consist of uncollateralized customer obligations due under normal trade terms requiring payment within 30-60 days of the invoice date. Management regularly reviews outstanding accounts receivable and provides for estimated losses through an allowance for doubtful accounts or direct write-off. In evaluating the level of established reserves, management makes judgments regarding the customers’ ability to make required payments, economic events, and other factors. As the financial conditions of these customers change, circumstances develop, or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. When deemed uncollectible, the receivable is charged against the allowance or directly written off. At December 31, 2018 and 2019, the allowance for doubtful accounts was $7.9 million and $0.2 million, respectively.

Amounts retained by project owners under contracts and included in accounts receivable at December 31, 2018 and 2019 were $5.7 million and $6.1 million, respectively. Such retention amounts represent funds withheld by our customers until the products are installed by a third party, arranged by the customer, and the project is declared operational. Retention amounts and length of retention periods may vary. All retention amounts outstanding as of December 31, 2019 are collectible within the next 12 months.

Inventories

Inventories consist of raw materials and finished goods. Inventories are stated at the lower of cost or estimated net realizable value using the weighted average method. Provisions are made to reduce excess or obsolete inventories to their estimated net realizable values. See Note 3 for a detail of the components that comprise the inventory balance presented on the accompanying consolidated balance sheets.

Property, Plant and Equipment

Property, plant and equipment acquired in the acquisition of Array are recorded at fair value at the date of acquisition net of accumulated depreciation and amortization; all other property, plant and equipment are recorded at cost, net of accumulated depreciation and amortization. Improvements, betterments and replacements which significantly extend the life of an asset are capitalized. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the respective assets. Repair and maintenance costs are expensed as incurred.

A gain or loss on the sale of property, plant and equipment is calculated as the difference between the cost of the asset disposed of, net of depreciation, and the sales proceeds received. A gain or loss on an asset disposal is recognized in the period that the sale occurs.

Impairment of Long-Lived Assets

When events, circumstances or operating results indicate that the carrying values of long-lived assets might not be recoverable through future operations, the Company prepares projections of the undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the projections indicate that the recorded amounts are not expected to be recoverable, such amounts are reduced to estimated fair value. Fair value is estimated based upon internal evaluation of each asset that includes quantitative analyses of net revenue and cash flows, review of recent sales of similar assets and market responses based upon discussions in connection with offers received from potential buyers. Management determined there was no impairment for the years ended December 31, 2018 and 2019.

Goodwill

Goodwill is evaluated for impairment annually or when events or circumstances occur indicating goodwill might be impaired. Guidance related to goodwill impairment testing provides an option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company determines reporting units based on component parts of its business for which discrete financial information is available and reviewed regularly by management. The Company considers various events and circumstances when evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and whether an impairment analysis is necessary.

Amortizable and Other Intangible Assets

The Company amortizes identifiable intangible assets consisting of developed technology, customer relationships, contractual backlog and internal-use software modifications because these assets have finite lives. The Company’s intangible assets with finite lives are amortized on a straight-line basis over the estimated useful lives. The basis of amortization approximates the pattern in which the assets are utilized, over their estimated useful lives. The Array Technologies trade name has been determined to have an indefinite life and, therefore, is not amortized but is subject to an annual impairment test or at any other time when impairment indicators exist.

Debt Discount/Deferred Financing Costs

Debt discount and financing costs incurred to issue debt are deferred and amortized using the effective interest method as a component of interest expense over the life of the related debt agreement. Amortization expense of debt discount and deferred financing costs was $3.0 million and $4.0 million, respectively, for the years ended December 31, 2018 and 2019.

Revenue Recognition - 2019

The Company recognized revenue from the sale of solar tracking systems and parts and determines its revenue recognition through the following steps (i) identification of the contract or contracts with a customer, (ii) identification of the performance obligations within the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligations within the contract, and (v) recognition of revenue when, or as the performance obligation has been satisfied.

Performance Obligations

The Company’s change orders are generally modifications to existing contracts and are included in the total estimated contract revenue when it is probable that the change order will result in additional value that can be reliably estimated and realized. The majority of the Company’s contracts do not contain variable consideration provisions as a continuation of the original contract.

Contract Estimates

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the consolidated balance sheets. The majority of the Company’s contract amounts are billed as work progresses in accordance with agreed-upon contractual terms, which generally coincide with the shipment of one or more phases of the project. Billing sometimes occurs subsequent to revenue recognition, resulting in contract assets. The changes in contract assets (i.e. unbilled receivables) and the corresponding amounts recorded in revenue relate to fluctuations in the timing and volume of billings for the Company’s revenue recognized over-time. As of December 31, 2018 and 2019, contract assets consisting of unbilled receivables totaling $1.9 million and $16.1 million, respectively, are recorded within accounts receivable on the consolidated balance sheets on a contract-by-contract basis at the end of the reporting period. The Company also receives advances or deposits from its customers, before revenue is recognized, resulting in contract liabilities. The changes in contract liabilities (i.e. deferred revenue) relate to advanced orders and payments received by the Company and are the result of customers looking to take advantage of certain U.S. federal tax incentives set to decrease at the end of 2019. Based on the terms of the tax incentives the customer must pay for the goods prior to December 31, 2019 which accounts for the increase in the advanced orders and payments and the resulting deferred revenue. As of December 31, 2018 and 2019, contract liabilities consisting of deferred revenue were $21.8 million and $328.8 million, respectively, and were recorded on a contract-by-contract basis at the end of each reporting period. During the years ended December 31, 2018 and 2019, the Company converted $14.4 million and $21.8 million of deferred revenue to revenue, respectively, which represented 100% of the prior years deferred revenue balance.

Remaining Performance Obligations

As of December 31, 2019, the Company had $434.9 million of remaining performance obligations. The Company expects to recognize revenue on 100% of these performance obligations in 2020.

Practical Expedients and Exemptions

The Company has elected to adopt certain practical expedients and exemptions as allowed under the new revenue guidance such as, (i) recording sales commissions as incurred because the amortization period is less than one year, (ii) there is no adjustment related to the effects of significant financing components as the contract term is less than one year, (iii) excludes the collected sales tax amounts from the calculation of revenue, and (iv) the election to account for shipping and handling activities that are incurred after the customer obtained control of the product as fulfillment costs rather than a separate service provided to the customer for which consideration would need to be allocated. As such, reimbursement by the Company’s customers for shipping and handling costs for delivery of the Company’s products are recorded as revenue in the accompanying consolidated statements of operations and totaled $16.4 million and $22.9 million for the years ended December 31, 2018 and 2019, respectively. Shipping and handling expenses are included as a component of cost of revenue as incurred and totaled $20.1 million and $17.3 million for the years ended December 31, 2018 and 2019, respectively.

Revenue Recognition - 2018

Products are sold by the Company for cash-in-advance and on credit. Revenue is recognized when persuasive evidence of an agreement exists and upon delivery and acceptance, or earlier if required by shipping terms, provided title is transferred, prices are fixed or determinable, and collection is deemed probable. Revenues are presented net of sales, use, value-added and other excise taxes collected by the Company that are remitted to various governmental authorities.

Warranty Obligations

The Company offers an assurance type warranty for its products against defects in design, materials and workmanship for a period ranging from two to twenty years from customer acceptance. For these assurance type warranties, a provision for estimated future costs related to warranty expense is recorded when they are probable and reasonably estimable, which is typically when products are delivered. This provision is based on historical information on the nature, frequency and average cost of claims for each product line. When little or no experience exists for an immature product line, the estimate is based on comparable product lines. These estimates are re-evaluated on an ongoing basis using best-available information and revisions to estimates are made as necessary.

Income Taxes

The Company provides for income taxes based on the provisions of FASB ASC Topic 740, Income Taxes, which, among other things, requires that recognition of deferred income taxes be measured by the provisions of enacted tax rates in effect at the date of the consolidated financial statements. A valuation allowance is provided to reduce deferred income tax assets if it is more likely than not that all, or some portion, of such deferred tax assets will not be recognized. Provision for estimated income taxes is based upon elements of income and expense reported in the consolidated statements of operations. The Company also files certain corporate state income tax returns. Generally, the Company is subject to examination by U.S. federal (or state or local) income tax authorities for three years from the filing of a tax return. The current provision for income taxes represents actual or estimated amounts payable on tax return filings each year. Deferred tax assets and liabilities are recorded for the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the accompanying consolidated balance sheets, and for operating loss and tax credit carryforwards. The change in deferred tax assets and liabilities for the period measures the deferred tax provision or benefit for the period. Effects of changes in enacted tax laws on deferred tax assets and liabilities are reflected as adjustments to the tax provision or benefit in the period of enactment. Adjustments for penalties and interest, if any, are also reflected in the current year tax provision or benefit.

The Company determines whether uncertain tax positions are more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position.

The Company recognizes interest and penalties related to unrecognized tax benefits within the interest expense line and other expense line, respectively, in the consolidated statements of operations. Accrued interest and penalties are included within the related liability lines in the consolidated balance sheets.

Equity-Based Compensation

Earnings per Unit (“EPU”)

Basic earnings (loss) per unit, or EPU, is computed by dividing net income (loss) available to unit holders by the weighted average units outstanding during the period. Diluted EPU takes into account the potential dilution that could occur if securities or other contracts to issue units, such as stock options and unvested restricted stock units, were exercised and converted into units. Diluted EPU is computed by dividing net income (loss) available to unit holders by the weighted average units outstanding during the period, increased by the number of additional units that would have been outstanding if the potential units had been issued and were dilutive.

Credit Concentration

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, restricted cash and accounts receivable. The Company has no significant off balance sheet concentrations of credit risk. The Company maintains its cash with financial institutions that are believed to be of high credit quality and has not experienced any material losses relating to any cash and restricted cash. As of December 31, 2018 and 2019, $40.1 million and $360.9 million, respectively, of the Company’s bank balances were uninsured and uncollateralized and exposed to custodial credit risk.

The Company’s customer base consists primarily of solar contractors. The Company does not require collateral on its trade receivables. For the year ended December 31, 2018, the Company’s largest customer and five largest customers constituted 17.5% and 50.9% of total revenues, respectively. Two customers make up 28.3% of revenue and are the only customers constituting greater than 10% of total revenue. For the year ended December 31, 2019, the Company’s largest customer and five largest customers constituted 17.2% and 50.1% of total revenues, respectively. Two customers make up 28.7% of revenue and are the only customers constituting greater than 10% of total revenue. The loss of any one of the Company’s top five customers could have a materially adverse effect on the revenues and profits of the Company. Further, the Company’s trade accounts receivable are from companies within the solar industry and, as such, the Company is exposed to normal industry credit risks. As of December 31, 2018, the Company’s largest customer and five largest customers constituted 11.6% and 26.5% of trade accounts receivable, respectively. As of December 31, 2019, the Company’s largest customer and five largest customers constituted 29.5% and 69.0% of trade accounts receivable, respectively. The Company continually evaluates its reserves for potential credit losses and establishes reserves for such losses.

Fair Value

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity that are significant to the fair value of the assets or liabilities.

New Accounting Standards

Adopted in 2019

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” with the intent of significantly enhancing consistency and comparability of revenue recognition practices across entities and industries. ASU No. 2014-09 supersedes the revenue recognition guidance in Topic 605, Revenue Recognition. The new standard establishes a single, principle-based five-step model to be applied to all contracts with customers and introduces new and enhanced disclosure requirements. It also requires the use of more estimates and judgments than the present standards in addition to additional disclosures. The Company has reviewed its various customer arrangements in order to determine the impact the new accounting guidance for revenue recognition will have on its consolidated financial statements and related disclosures. The Company adopted this, on January 1, 2019, using a modified retrospective approach for those contracts not completed at the date of initial adoption. There was no significant impact to its consolidated financial statements, due to the value and satisfaction of performance obligations occurred at a materially similar value and timing as recorded utilizing previous accounting treatment, other than additional disclosures contained herein.

To be Adopted

In February 2016, the FASB issued ASU No. 2016-02 (Topic 842) “Leases” which supersedes the lease recognition requirements in ASC Topic 840, “Leases.” Under ASU No. 2016-02, lessees are required to recognize assets and liabilities on the consolidated balance sheets for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance or operating. For companies that are not emerging growth companies (“EGCs”), the ASU is effective for fiscal years beginning after December 15, 2018. For EGCs, the ASU is effective for fiscal years beginning after December 15, 2021. The Company will adopt the new standard using the modified retrospective method, under which the Company will apply Topic 842 to existing and new leases as of January 1, 2022, but prior periods will not be restated and will continue to be reported under Topic 840 guidance in effect during those periods. The Company anticipates that the adoption will not have a material impact on its consolidated statements of operations or its consolidated statements of cash flows but expects to recognize right-of-use assets and liabilities for lease obligations associated with its operating leases. The Company’s operating lease arrangements are discussed in Note 12.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which was subsequently amended by ASU No. 2018-19 and ASU No. 2019-10, requires the measurement of expected credit losses for financial instruments carried at amortized cost held at the reporting date based on historical experience, current conditions and reasonable forecasts. The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The Company will continue to assess the possible impact of this standard, but currently does not expect the adoption of this standard will have a significant impact on its consolidated financial statements and its limited history of bad debt expense relating to trade accounts receivable.

Inventories

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Inventory Disclosure [Abstract]

Inventories

3.	Inventories

Inventories consist of the following at (in thousands):


	December 31, 2019			September 30, 2020 (unaudited)
Raw materials	$	62,923		$	32,506
Finished goods		90,301			71,726
Reserve for excess or obsolete inventory		(5,200	)		(7,717	)

Total	$	148,024		$	96,515

3.	Inventories

Inventories consist of the following at December 31, (in thousands):


	2018			2019
Raw materials	$	6,512		$	62,923
Finished goods		52,118			90,301
Reserve for excess or obsolete inventory		(3,458	)		(5,200	)

Total	$	55,172		$	148,024

Property, Plant and Equipment

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

4.	Property, Plant and Equipment

Property, plant and equipment consisted of the following at (in thousands):


	Estimated Useful Lives (Years)		December 31, 2019			September 30, 2020 (unaudited)
Land		N/A	$	1,340		$	1,340
Buildings and land improvements		15-39		2,464			2,487
Manufacturing equipment		7		12,631			13,002
Furniture, fixtures and equipment		5-7		277			287
Vehicles		5		140			140
Hardware and software		3-5		398			589

				17,250			17,845
Less: accumulated depreciation				(6,590	)		(8,225	)

Total			$	10,660		$	9,620

Depreciation expense was $1.6 million and $1.7 million, respectively, for the nine months ended September 30, 2019 and 2020, of which $1.4 million and $1.5 million, respectively, has been allocated to cost of revenue and $0.2 million and $0.2 million, respectively, is included in depreciation and amortization in the accompanying consolidated statements of operations for the nine months ended September 30, 2019 and 2020.

4.	Property, Plant and Equipment

Property, plant and equipment consisted of the following at December 31, (in thousands):


	Estimated Useful Lives (Years)		2018			2019
Land		N/A	$	1,340		$	1,340
Buildings and land improvements		15-39		2,448			2,464
Manufacturing equipment		7		10,954			12,631
Furniture, fixtures and equipment		5-7		332			277
Vehicles		5		123			140
Hardware and software		3-5		358			398

				15,555			17,250
Less: accumulated depreciation				(4,526	)		(6,590	)

Total			$	11,029		$	10,660

Depreciation expense was $1.9 million and $2.1 million, respectively, for the years ended December 31, 2018 and 2019, of which $1.7 million and $1.8 million, respectively, has been allocated to cost of revenue and $0.2 million and $0.3 million, respectively, is included in depreciation and amortization in the accompanying consolidated statements of operations for the years ended December 31, 2018 and 2019.

Goodwill and Other Intangible Assets

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

5.	Goodwill and Other Intangible Assets

Goodwill

Goodwill relates to the acquisition of Array. At the acquisition date, July 8, 2016, goodwill was $121.6 million. At December 31, 2019 and September 30, 2020 goodwill totaled $69.7 million, net of accumulated impairment of $51.9 million and is not deductible for tax purposes.

Other Intangible Assets

Other intangible assets consisted of the following at (in thousands):


	Estimated Useful Lives (Years)		December 31, 2019		September 30, 2020 (unaudited)
Amortizable:
Costs:
Developed technology		14	$	203,800	$	203,800
Customer relationship		10		89,500		89,500
Internal-use software modification costs		2.5		4,356		4,356

Total Amortizable Intangibles				297,656		297,656

Accumulated amortization:
Developed technology				50,676		61,594
Customer relationship				31,157		37,869
Internal-use software modification costs				2,613		3,920

Total Accumulated Amortization				84,446		103,383

Total Amortizable Intangibles, Net				213,210		194,273

Non-amortizable costs:
Trade name				10,300		10,300

Total Other Intangible Assets, Net			$	223,510	$	204,573

Amortization expense related to intangible assets amounted to $18.9 million for the nine months ended September 30, 2019 and 2020. Estimated future annual amortization expense for the above amortizable intangible assets for the remaining periods through December 31, as follows (in thousands):


	Amortization Expense
2020	$	6,313
2021		23,507
2022		23,507
2023		23,507
2024		23,507
Thereafter		93,932

	$	194,273

5.	Goodwill and Other Intangible Assets

Goodwill

Goodwill relates to the acquisition of Array. At the acquisition date, July 8, 2016, goodwill was $121.6 million. At December 31, 2018 and 2019, goodwill totaled $69.7 million, net of accumulated impairment of $51.9 million and is not deductible for tax purposes.

During 2018, the Company early adopted the guidance contained in ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which removes the step 2 requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Goodwill impairment is the amount by which the Company’s single reporting unit carrying value exceeds its fair value, not to exceed the recorded amount of goodwill. To estimate the fair value of the Company’s equity, the Company used both a market approach based on the guideline companies’ method (“Market Comparable Approach”), and an income approach based on a discounted cash flow analysis.

The Market Comparable Approach estimates fair value using market multiples of various financial measures compared to a set of comparable public companies. In performing the valuations, significant assumptions utilized include unobservable Level 3 inputs including cash flows and long-term growth rates reflective of management’s forecasted outlook, and discount rates inclusive of risk adjustments consistent with current market conditions. Discount rates are based on the development of a weighted average cost of capital using guideline public company data, factoring in current market data and any company specific risk factors. The value indicated by both methods was weighted to arrive at a concluded value.

The Company completes its annual goodwill impairment test as of year-end. At December 31, 2018 and 2019, the fair value of the reporting unit was in excess of the carrying value; therefore, there was no impairment.

Non-Amortizable Intangible Asset

The Company also completed its annual impairment test for its other non-amortizable asset (Trade Name) by comparing the estimated fair value to the carrying value of such asset. Based on the results of the Company’s tests, it recorded no impairment charges for the years ended December 31, 2018 or 2019.

Other Intangible Assets

Other intangible assets consisted of the following at December 31, (in thousands):


	Estimated Useful Lives (Years)		2018		2019
Amortizable:
Costs:
Developed technology		14	$	203,800	$	203,800
Customer relationship		10		89,500		89,500
Internal-use software modification costs		2.5		4,356		4,356

Total Amortizable Intangibles				297,656		297,656

Accumulated amortization:
Developed technology				36,119		50,676
Customer relationship				22,206		31,157
Internal-use software modification costs				871		2,613

Total Accumulated Amortization				59,196		84,446

Total Amortizable Intangibles, Net				238,460		213,210

Non-amortizable costs:
Trade name				10,300		10,300

Total Other Intangible Assets, Net			$	248,760	$	223,510

Amortization expense related to intangible assets amounted to $26.5 million and $25.2 million for the years ended December 31, 2018 and 2019, respectively. Estimated future annual amortization expense for the above amortizable intangible assets are as follows (in thousands):


For the Year Ending December 31,	Amortization Expense
2020	$	25,250
2021		23,507
2022		23,507
2023		23,507
2024		23,507
Thereafter		93,932

	$	213,210

Income Taxes

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

6.	Income Taxes

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the COVID-19 pandemic. Among other things, the CARES Act provided the ability for taxpayers to carryback a net operating loss (“NOL”) arising in a taxable year beginning after December 31, 2017 and before January 1, 2021 to each of the five years preceding the year of the loss. The Company generated a significant NOL during its tax year ended March 31, 2019 and filed a carryback claim in June 2020 for this NOL. As a result of the carryback claim, the Company recorded an income tax benefit of $6.6 million on its condensed consolidated statement of operations for the nine months ended September 30, 2020, resulting from the difference in the current U.S. federal tax rate of 21% and the tax rate of 35% applicable in the carryback year.

The Company’s 2017 federal income tax return was selected for examination by the IRS in 2018. As a result of the examination, an adjustment related to the value allocated to the developed technology for tax purposes was potentially required. During 2019, the Company settled the 2017 examination and agreed to a reduction in the developed technology value from $210 million to $188 million for federal income tax purposes. As a result of this change in the value of the acquired developed technology, the Company has reduced its NOL carryforwards by approximately $2.8 million for previously taken amortization and increased the deferred tax liability related to the revised developed technology tax basis by approximately $4.6 million. In addition, the Company will no longer receive the tax basis upon payment of the Tax Receivable Agreement (“TRA”) liability, as the related deferred tax asset of $4.7 million for the TRA was also written off during 2019. The adjustments resulting from the change in developed technology value have been recorded as an income tax expense for the nine months ended September 30, 2019.

6.	Income Taxes

The provision for income taxes charged to operations consists of the following for the years ended December 31, (in thousands):


	2018			2019
Current Expense:
Federal	$	31		$	1,709
State		99			803

		130			2,512
Deferred Expense (Benefit):
Federal		(15,955	)		20,576
State		(4,107	)		1,746

		(20,062	)		22,322

Total Income Tax Expense (Benefit)	$	(19,932	)	$	24,834

Significant components of the Company’s deferred tax assets and liabilities are as follows as of December 31, (in thousands):


	2018			2019
Deferred Tax Assets:
Bad debts	$	1,817		$	37
Inventories		1,116			1,632
Accrued warranties		447			599
Accrued compensation		613			843
Contingent Consideration - TRA		4,654			—
Net operating loss		11,169			795
Disallowed interest		4,345			—
Other		589			124

Deferred Tax Assets		24,750			4,030
Valuation allowance		(253	)		(208	)

Deferred Tax Assets, net		24,497			3,822

Deferred Tax Liabilities:
Property, plant, and equipment		(1,217	)		(1,093	)
Intangible assets		(16,811	)		(18,582	)

Deferred Tax Liabilities		(18,028	)		(19,675	)

Deferred Tax Asset (Liability), net	$	6,469		$	(15,853	)

A reconciliation of income tax expense (benefit) computed at the federal statutory rate of 21% for the years ended December 31, 2018 and 2019 to actual income tax expense at the Company’s effective rate is as follows (in thousands):


	2018			2019
Income tax expense (benefit) at federal statutory rate	$	(16,947	)	$	13,562
State income taxes		(3,365	)		2,049
Permanent differences:
Derecognition of tax assets from IRS examination		—			9,284
Equity based compensation		—			168
Contingent consideration		49			134
Credits		—			(284	)
Other nondeductible expenses		48			40
Foreign income benefit		—			(155	)
Change in valuation allowance		253			(45	)
Other		30			81

Total Income Tax Expense (Benefit)	$	(19,932	)	$	24,834

The Company files income tax returns in the U.S. federal jurisdiction and in multiple states. The Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2014.

As of December 31, 2019, the Company has no federal income tax net operating loss (“NOL”) carryforwards. The Company has state income tax NOL carryforwards of approximately $14.7 million that will expire in future years beginning in 2036.

The Company’s 2017 federal income tax return was selected for examination by the IRS in 2018. As a result of the examination, an adjustment related to the value allocated to the developed technology for tax purposes was potentially required. During 2019, the Company settled the 2017 examination and agreed to a reduction in the developed technology value from $210 million to $188 million for federal income tax purposes. As a result of this change in the value of the acquired developed technology, the Company has reduced its NOL carryforwards by approximately $2.8 million for previously taken amortization and increased the deferred tax liability related to the revised patent tax basis by approximately $4.6 million. In addition, the Company will no longer receive the tax basis upon payment of the Tax Receivable Agreement (“TRA”) liability, as the related deferred tax asset of $4.7 million for the TRA was also written off during 2019. The adjustments resulting from the change in patent value have been recorded as an income tax expense in the above rate reconciliation for the year ended December 31, 2019.

TRA - Refer to Note 12, Commitments and Contingencies, for detail on the TRA, which was contingent consideration at the time of the Array acquisition.

Realization of deferred tax assets associated with net operating loss carryforwards is dependent upon generating sufficient taxable income in the appropriate jurisdictions prior to their expirations, if any expiration. The existence of reversing temporary differences supports the recognition by the Company of certain deferred tax assets. It is not more likely than not that those deferred tax assets from certain state net operating loss carryforwards would be realized due to the Company’s lack of earnings history and as such the Company has established a valuation allowance of $253 thousand and $208 thousand for the years ended December 31, 2018 and 2019, respectively.

ASC 740, Income Taxes, addresses the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. In accordance with ASC 740, the Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The Company’s assessments of its tax positions in accordance with ASC 740 did not result in changes that had a material impact on results of operations, financial condition or liquidity. The Company has no unrecognized income tax benefits at either December 31, 2018 or 2019.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Accrued Warranty Reserve

12 Months Ended

Dec. 31, 2019

Guarantees and Product Warranties [Abstract]

Accrued Warranty Reserve

7.	Accrued Warranty Reserve

The following table summarizes the activity related to the estimated accrued warranty reserve during the years ended December 31, (in thousands):


	2018			2019
Beginning balance	$	2,916		$	1,935
Provision for warranties issued		759			2,473
Payments		(886	)		(730	)
Warranty expirations		(854	)		(1,086	)

Ending balance	$	1,935		$	2,592

Term Loan, Revolving Loan and Letter of Credit Facility

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Debt Disclosure [Abstract]

Term Loan, Revolving Loan and Letter of Credit Facility

7.	Term Loan, Revolving Loan and Letter of Credit Facility

The Company had a Term Loan Credit and Guarantee Agreement (the “Term Loan”) as amended. The Term Loan was secured by assets of ATI Investment. The Term Loan was payable in quarterly installments of $5 million. As of December 31, 2019, the Term Loan had a balance of $57.7 million. The Term Loan accrued interest equal to applicable margin of 6.25% plus base rate (the “Base Rate Loan”) (8.96% at December 31, 2019). The balance of the Term loan is presented in the accompanying consolidated balance sheets net of debt discount and issuance costs of $1.8 million at December 31, 2019. The Term Loan had an annual excess cash flow calculation which could require the Company to make advance principal payments. At December 31, 2019, the excess cash flow calculation resulted in the Term Loan be classified as current on the accompanying consolidated balance sheet. The Company paid the outstanding amount due on the Term Loan on February 2, 2020 and settled all obligations with respect to the Term Loan.

The Company has a credit facility (“Revolving Loan”) as amended which has a commitment of $100.0 million. As of December 31, 2019 and September 30, 2020, the Revolving Loan had an outstanding balance of $70 thousand and $0.1 million, respectively. The Revolving Loan had $30.7 million in letters of credit outstanding and availability of $68.9 million at September 30, 2020. The Revolving Loan accrues interest at base rate plus applicable margin (4.0% at September 30, 2020).

The Revolving Loan and Term Loan subject the Company to a number of restrictive covenants, including financial covenants. These financial covenants include a minimum fixed charge coverage ratio, net leverage ratio, EBITDA, and excess cash flow percentage, as defined in the Revolving Loan and Term Loan Credit Facility. As of September 30, 2020, the Company was in compliance with all the required covenants.

In connection with the IPO and the New Senior Secured Credit Facility, the Company paid the remaining balance and settled all obligations related to the Revolving Loan. See Note 14 - Subsequent Events for discussion of the New Senior Secured Credit Facility.

8.	Term Loan, Revolving Loan and Letter of Credit Facility

The Company had a Term Loan Credit and Guarantee Agreement (Term Loan) as amended. The Term Loan was secured by assets of ATI Investment. The Term Loan was payable in quarterly installments of $5 million. As of December 31, 2018 and 2019, the Term Loan had a balance of $82.7 million and $57.7 million, respectively. The Term Loan accrues interest equal to applicable margin of 6.25% plus base rate (Base Rate Loan) (8.96% at December 31, 2019). The balance of the Term Loan is presented in the accompanying consolidated balance sheets net of debt discount and issuance costs of $3.4 million and $1.8 million at December 31, 2018 and 2019, respectively. The Term Loan has an annual excess cash flow calculation which could require the Company to make advance principal payments. At December 31, 2019, the excess cash flow calculation resulted in the Term Loan be classified as current on the accompanying consolidated balance sheet. The Company paid the outstanding amount due on the Term Loan on February 2, 2020 and settled all obligations with respect to the Term Loan.

The Company also has a credit facility (Revolving Loan) as amended which has a commitment of $47.5 million and matures on June 23, 2021. As of December 31, 2018 and 2019, the Revolving Loan had an outstanding balance of $39.1 million and $70 thousand, respectively. The Revolving Loan had $28.7 million in letters of credit outstanding and availability of $18.7 million at December 31, 2019. The Revolving Loan accrues interest at base rate plus applicable margin (5.75% at December 31, 2019). The borrowings under the Revolving Loan requires the borrower to maintain a lockbox with the lender and are considered short term obligations. As a result, the Revolving Loan is classified as a current liability in the accompanying consolidated balance sheets.

The Revolving Loan and Term Loan subject the Company to a number of restrictive covenants, including financial covenants. These financial covenants include a minimum fixed charge coverage ratio, net leverage ratio, EBITDA, and excess cash flow percentage, as defined in the Revolving Loan and Term Loan Credit Facility. As of December 31, 2019, the Company was in compliance with all the required covenants.

Letter of Credit Facility

On December 16, 2019, the Company entered into a letter of credit facility (“LC Facility”) to provide customers with additional credit support in the form of a standby letter of credit to secure the Company’s performance obligations under contracts for which certain customers elected to prepay for the design and manufacture of solar projects. The LC Facility has a commitment of $100.0 million in standby letters of credit and expires August 31, 2020. At December 31, 2019, the Company had $51.0 million in outstanding standby letters of credit outstanding, secured by cash collateral.

Related Party Loan

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Related Party Loan

8.	Related Party Loan

On August 22, 2018, the Company entered into a $38.6 million senior secured promissory note, as amended (the “Senior Secured Loan”) with a unit holder of Parent that bears interest at a stated rate of 12% per year. Interest payments on the Senior Secured Loan are due quarterly and were based on the division of the Senior Secured Loan into two tranches: a $22.5 million tranche (“Tranche A”) that requires cash interest payments and; a $16.1 million tranche (“Tranche B”) that provides for payments in kind (“PIK”) through the addition of accrued interest to the principal balance.

The Senior Secured Loan included an up-front fee to the lender of $3.5 million, treated as an original issue discount, payment of $0.1 million in legal fees and the deposit of $1.9 million for future payments of Tranche A interest. The effective interest rate on the Senior Secured Loan, after consideration of up-front and legal fees, is approximately 19%. The balance of the Senior Secured Loan, presented in the accompanying consolidated balance sheets net of debt discount and issuance costs, is $41.8 million at December 31, 2019. The Company paid the remaining outstanding balance and accrued interest on July 31, 2020 to settle the obligation with respect to the Senior Secured Loan.

For the nine months ended September 30, 2019 and 2020, interest expense totaled $4.1 million and $3.8 million, respectively, which consisted of cash interest, PIK interest and amortization of the debt discount.

9.	Related Party Loans

On December 7, 2018, the Company received proceeds under a $12 million uncollateralized demand promissory note with a company controlled by a unit holder of Parent. The note bore interest based on the Company’s internal cost of capital plus 1.35% and was fully repaid by the Company, including accrued interest expense of $27 thousand on December 21, 2018.

On August 22, 2018, the Company entered into a $38.6 million senior secured promissory note (the “Senior Secured Loan”) with a unit holder of Parent that bears interest at a stated rate of 12% per year, is collateralized by 100% of the common stock in ATI Investment and was originally due on February 22, 2020 but extended as described in Note 18 - Subsequent Events. Interest payments on the Senior Secured Loan are due quarterly and are based on the division of the Senior Secured Loan into two tranches: a $22.5 million tranche (“Tranche A”) that requires cash interest payments and; a $16.1 million tranche (“Tranche B”) that provides for payments in kind (“PIK”) through the addition of accrued interest to the principal balance.

The Senior Secured Loan included an up-front fee to the lender of $3.5 million, treated as an original issue discount, payment of $0.1 million in legal fees and the deposit of $1.9 million for future payments of Tranche A interest. The effective interest rate on the Senior Secured Loan, after consideration of up-front and legal fees, is approximately 19%. The balance of the Senior Secured Loan, presented in the accompanying consolidated balance sheets net of debt discount and issuance costs, is $36.6 million and $41.8 million at December 31, 2018 and 2019, respectively.

The Senior Secured Loan is subject to the restrictive covenants included in the Revolving Loan and Term Loan (see Note 8) and includes prohibitions on incurring additional indebtedness, making equity distributions and receiving equity contributions as described in the senior secured loan agreement.

For the years ended December 31, 2018 and 2019, interest expense totaled $2.6 million and $7.3 million, respectively, which consisted of cash interest, PIK interest and amortization of the debt discount.

Revenues

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenues

9.	Revenues

Based on Topic 606 provisions, the Company disaggregates its revenue from contracts with customers by those sales recorded over-time and sales recorded at a point in time. The following table presents the Company’s revenue disaggregated by sales recorded over-time and sales recorded at a point in time for the nine months ended September 30, as follows (in thousands):


	2019		2020
Over-time Revenues	$	383,135	$	620,447
Point in time Revenues		40,054		71,649

Total Revenue	$	423,189	$	692,096

10.

Revenues

Based on Topic 606 provisions, the Company disaggregates its revenue from contracts with customers by those sales recorded over-time and sales recorded at a point in time. The following table presents the Company’s revenue disaggregated by sales recorded over-time and sales recorded at a point in time for the year ended December 31, 2019 as follows (in thousands):


	2019
Over-time Revenues	$	599,863
Point in time Revenues		48,036

Total Revenue	$	647,899

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Earnings (Loss) per Unit

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings (Loss) per Unit

10.

Earnings per Unit

The following table sets forth the computation of basic and diluted earnings per unit for the nine months ended September 30, (in thousands, except per unit amounts):


	2019		2020
Basic and Diluted:
Net income	$	12,965	$	68,845
Weighted-average units		119,994		119,994
Basic and diluted net earnings per unit	$	0.11	$	0.57

There are 26,671,594 Class B units and 1,000 Class C units of Parent issued to certain employees or directors of the Company which were not included in the calculation of basic or diluted EPU for the nine months ended September 30, 2020 as the Class B and Class C units do not represent potential units of the Company.

11.

Earnings per Unit

The following table sets forth the computation of basic and diluted earnings per unit for the years ended December 31, (in thousands, except per unit amounts):


	2018			2019
Basic and Diluted:
Net income (loss)	$	(60,764	)	$	39,745
Weighted-average units		119,994			119,994
Basic and diluted earnings (loss) per unit	$	(0.51	)	$	0.33

There are 22,326,253 shares of Class B units of Parent issued to certain employees of the Company which were not included in the calculation of basic or diluted EPU for the year ended December 31, 2019 as the Class B units do not represent potential units of the Company.

Commitments and Contingencies

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11.

Commitments and Contingencies

Litigation

The Company, in the normal course of business, is subject to claims and litigation. Management believes that there are no outstanding claims or assessments against the Company that would result in a material unfavorable outcome.

Contingent Consideration

TRA

Concurrent with the acquisition of Array, the Company entered into a TRA with the former majority shareholder of Array. The TRA is valued based on the future expected payments under the agreement. The TRA provides for the payment by Array Tech, Inc. (f/k/a Array Technologies, Inc.) to the former owners for certain federal, state, local and non-U.S. tax benefits deemed realized in post-closing taxable periods by Array, from the use of certain deductions generated by the increase in the tax value of the developed technology. The TRA is accounted for as contingent consideration and subsequent changes in fair value of the contingent liability are recognized in general and administrative in the accompanying consolidated statements of operations. At December 31, 2019 and September 30, 2020, the fair value of the TRA was $17.8 million and $18.3 million, respectively.

Estimating the amount of payments that may be made under the TRA is by nature imprecise. The significant fair value inputs used to estimate the future expected TRA payments to the former owners include the timing of tax payments, a discount rate, book income projections, timing of expected adjustments to calculate taxable income and the projected rate of use for attributes defined in the TRA.

Payments made under the TRA consider tax positions taken by the Company and are due within 125 days following the filing of the Company’s U.S. federal and state income tax returns under procedures described in the agreement. The current portion of the TRA liability is based on tax returns. The TRA will continue until all tax benefit payments have been made or the Company elects early termination under the terms described in the TRA.

As of September 30, 2020, the undiscounted future expected payments through December 31, under the TRA are as follows (in thousands):


2020	$	7,414
2021		1,692
2022		1,748
2023		1,748
2024		1,748
2025 and thereafter		10,931

	$	25,281

Earn-Out Liability

The Company is required to pay the selling shareholders of Array future contingent consideration consisting of earn-out payments in the form of cash upon the occurrence of certain events, including the sale, transfer, assignment, pledge, encumbrance, distribution or disposition of shares held by the acquirer to a third party; initial public offering of the equity securities of Parent, acquirer or the Company; the sale of equity securities or assets of Parent, acquirer or the Company to a third-party; or a merger, consolidation, recapitalization or reorganization of Parent, acquirer or the Company. The maximum aggregate earn-out consideration is $25.0 million.

The earn-out liability is included in contingent consideration in the accompanying consolidated balance sheets in the amount of $0.4 million and $15.9 million at December 31, 2019 and September 30, 2020, respectively.

The fair value of the earn-out liability was initially determined as of the acquisition date using unobservable inputs. These inputs include the estimated amount and timing of future cash flows, the probability of a qualifying event occurring, and a risk-free rate used to adjust the probability-weighted cash flows to their present value. Subsequent to the acquisition date, at each reporting period, the earn-out liability is re-measured to fair value with changes in fair value recorded in general and administrative in the accompanying consolidated statements of operations.

The following table summarizes the liability related to the estimated contingent consideration during the nine months ended September 30, (in thousands):


	TRA			Earn-Out Liability		Contingent Consideration
Balance, December 31, 2018	$	17,168		$	442	$	17,610
IRS settlement		(2,727	)		—		(2,727	)
Fair value adjustment		2,905			—		2,905

Balance, September 30, 2019	$	17,346		$	442	$	17,788


Balance, December 31, 2019	$	17,808		$	442	$	18,250
Fair value adjustment		516			15,492		16,008

Balance, September 30, 2020	$	18,324		$	15,934	$	34,258

The TRA and earn-out liabilities require significant judgment and are classified as Level 3 in the fair value hierarchy.

12.

Commitments and Contingencies

Leases


For the Year Ending December 31,
2020	$	6,337
2021		5,990
2022		5,378
2023		28

	$	17,733

For the year ended December 31, 2019, the Company recorded lease expenses associated with its operating leases in cost of revenue and general and administrative within its consolidated statements of operations totaling $1.5 million and $0.3 million, respectively.

Litigation

Contingent Consideration

TRA

Concurrent with the acquisition of Array, the Company entered into a TRA with the former majority shareholder of Array. The TRA is valued based on the future expected payments under the agreement. The TRA provides for the payment by Array Tech, Inc. (f/k/a Array Technologies, Inc.) to the former owners for certain federal, state, local and non-U.S. tax benefits deemed realized in post-closing taxable periods by Array, from the use of certain deductions generated by the increase in the tax value of the developed technology. The TRA is accounted for as contingent consideration and subsequent changes in fair value of the contingent liability are recognized in general and administrative in the accompanying consolidated statements of operations. At December 31, 2018 and 2019, the fair value of the TRA was $17.2 million and $17.8 million, respectively.

The Company re-measured the TRA as part of an IRS settlement in 2019 in which the recognized value of developed technology was reduced. See Note 6 - Income Taxes. The Company recognized a gain of $2.7 million resulting from the reduction in the fair value of the TRA.

As of December 31, 2019, the undiscounted future expected payments under the TRA are as follows (in thousands):


For the Year Ending December 31,
2020	$	6,293
2021		1,746
2022		1,746
2023		1,746
2024		1,746
2025 and thereafter		9,033

	$	22,310

Earn-Out Liability

The earn-out liability is included in contingent consideration in the accompanying consolidated balance sheets in the amount of $0.4 million at December 31, 2018 and 2019.

The following table summarizes the liability related to the estimated contingent consideration during the years ended December 31, (in thousands):


	TRA			Earn-Out Liability		Contingent Consideration
Balance, December 31, 2017	$	17,993		$	442	$	18,435
Fair value adjustment		(825	)		—		(825	)

Balance, December 31, 2018		17,168			442		17,610
IRS settlement		(2,727	)		—		(2,727	)
Fair value adjustment		3,367			—		3,367

Balance, December 31, 2019	$	17,808		$	442	$	18,250

The TRA and earn-out liabilities require significant judgment and are classified as Level 3 in the fair value hierarchy.

Equity Based Compensation

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Equity Based Compensation

12.

Equity Based Compensation

The Company accounts for equity grants to employees (Class B units and Class C units, the “Units,” of Parent) as equity based compensation under ASC 718, Compensation-Stock Compensation. The Units contain vesting provisions as defined in the agreement. Vested units do not forfeit upon termination and represent a residual interest in Parent. Equity based compensation cost is measured at the grant date fair value and is recognized on a straight-line basis over the requisite service period, including those units with graded vesting with a corresponding credit to additional paid-in capital as a capital contribution from Parent. However, the amount of equity based compensation at any date is equal to the portion of the grant date value of the award that is vested.

The Units issued to employees are measured at fair value on the grant date using an option pricing model. The Company utilizes the estimated weighted average of the Company’s expected fund life dependent on various exit scenarios to estimate the expected term of the awards. Expected volatility is based on the average of historical and implied volatility of a set of comparable companies, adjusted for size and leverage. The risk-free rates are based on the yields of U.S. Treasury instruments with comparable terms. Actual results may vary depending on the assumptions applied within the model.

On November 19, 2019 and May 19, 2020, Parent issued 22,326,653 and 4,344,941, respectively, Class B units to certain employees of the Company. On March 28, 2020, Parent issued 1,000 Class C units to a member of the board of directors of Array Technologies, Inc.

For the nine months ended September 30, 2020, the Company recognized $3.3 million in equity based compensation. At September 30, 2020, the Company had $7.5 million of unrecognized compensation costs related to Class B units which is expected to be recognized over a period of 3.25 years. There were no forfeitures during 2020.

13.

Equity Based Compensation

The Company accounts for equity grants to employees (Class B units of Parent) as equity based compensation under ASC 718, Compensation-Stock Compensation. The Class B units contain vesting provisions as defined in the agreement. Vested units do not forfeit upon termination and represent a residual interest in Parent. Equity based compensation cost is measured at the grant date fair value and is recognized on a straight-line basis over the requisite service period, including those units with graded vesting with a corresponding credit to additional paid-in capital as a capital contribution from Parent. However, the amount of equity based compensation at any date is equal to the portion of the grant date value of the award that is vested.

The Class B units issued to employees are measured at fair value on the grant date using an option pricing model. The Company utilizes the estimated weighted average of the Company’s expected fund life dependent on various exit scenarios to estimate the expected term of the awards. Expected volatility is based on the average of historical and implied volatility of a set of comparable companies, adjusted for size and leverage. The risk-free rates are based on the yields of U.S. Treasury instruments with comparable terms. Actual results may vary depending on the assumptions applied within the model.

On November 19, 2019, Parent issued 22,326,653 Class B units to certain employees of the Company. For the year ended December 31, 2019, the Company recognized $0.8 million in equity based compensation. At December 31, 2019, the Company had $8.2 million of unrecognized compensation costs related to Class B units which is expected to be recognized over a weighted average period of 3.25 years. There were no forfeitures during 2019.

Employee Benefit Plan

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Employee Benefit Plan

14.

Employee Benefit Plan

The Company sponsors a qualified defined contribution 401(k) plan (the “Plan”). The Plan covers employees who have completed ninety days of service and who have attained the age of 18. The Plan allows eligible employees to contribute their compensation to the Plan on either a pre-tax basis or Roth basis up to the annual limit allowed by law. Annually, the Company, at its discretion, may elect to contribute matching contributions or profit-sharing contributions to the Plan. During the years ended December 31, 2018 and 2019, the Company made matching contributions of $0.3 million and $0.6 million, respectively.

Sales/Use Tax Examination

12 Months Ended

Dec. 31, 2019

Income Tax Uncertainties [Abstract]

Sales/Use Tax Examination

15.

Sales/Use Tax Examination

The Company is currently under audit by the State of California regarding sales/use tax for the period from December 1, 2011 to September 30, 2015. At December 31, 2018 and 2019, the Company recorded a sales tax payable of $0.7 million and $1.4 million, respectively, which includes estimated penalties and interest. As the period under examination relates to the pre-acquisition period and the Company has indemnification from the selling shareholders, the Company has also recorded a receivable totaling $0.7 million and $1.4 million at December 31, 2018 and 2019, respectively.

Related Party Transactions

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Related Party Transactions

13.

Related Party Transactions

Accounts Payable-Related Party

The Company had $5.9 million and $2.2 million at December 31, 2019 and September 30, 2020, respectively, of accounts payable - related party with the former shareholders of Array and current unit holder of Parent. The payables relate to a Federal tax refund related to the pre-acquisition periods, restricted cash at acquisition date which were due to the sellers of Array upon release of the restriction offset by a receivable related to a sales/use tax audit from the pre-acquisition period for which the seller provided the Company with indemnification.

Consent Fees-Related Party

The Company incurred $2.2 million in consent fees with the former majority shareholder of Array to allow a carryback of post-acquisition net operating losses to pre-acquisition periods under the CARES Act. The consent fee is included in accounts payable – related party and other income (expense), net in the accompanying condensed consolidated financial statements at September 30, 2020 and for the nine months ended September 30, 2020, respectively.

Related Party Loans - see Note 8

Contingent Consideration - see Note 11

16.

Related Party Transactions

Accounts Payable - Related Party

The Company had $7.2 million and $5.9 million at December 31, 2018 and 2019, respectively, of accounts payable-related party with the former shareholders of Array and current unit holder of Parent. The payables relate to a Federal tax refund related to the pre-acquisition periods, restricted cash at acquisition date which were due to the sellers of Array upon release of the restriction offset by a receivable related to a sales/use tax audit from the pre-acquisition period for which the seller provided the Company with indemnification. The Company paid the $5.9 million outstanding at December 31, 2019 subsequent to year end.

Related Party Loans - see Note 9

Contingent Consideration - see Note 12

Geographic Information

12 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Geographic Information

17.

Geographic Information

Summary information about geographic areas:

ASC 280 (“Segment Reporting”) establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment and derives revenues from selling its product. The Company’s long-lived assets are located in the United States.

Revenues within geographic areas based upon Customers’ project location for the years ended December 31, (in thousands):


	2018		2019
United States	$	218,380	$	563,157
Australia		51,450		51,531
Rest of the world		20,953		33,211

Total Revenues	$	290,783	$	647,899

Subsequent Events

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

14.

Subsequent Events

New Senior Secured Credit Facility

On October 14, 2020, the Company entered into a new credit senior credit facility consisting of (i) a $575 million senior secured seven-year term loan facility (the “New Term Loan Facility”) and (ii) a $150 million senior secured five-year revolving credit facility (the “New Revolving Credit Facility” and, together with the New Term Loan Facility, the “New Senior Secured Credit Facility”).

Interest Rate

The interest rates applicable to the loans under the New Term Loan Facility equals, at our option, either, (i) in the case of ABR borrowings, the highest of (a) the Federal Funds Rate as of such day plus 50 basis points, (b) the prime rate and (c) the adjusted LIBOR rate as of such day for a deposit in U.S. dollars with a maturity of one month plus 100 basis points, provided that in no event shall the ABR be less than 150 basis points, plus, in each case, the applicable margin of 300 basis points per annum; or (ii) in the case of Eurocurrency borrowings, the greater of (a) the London interbank offered rate for the relevant currency, adjusted for statutory reserve requirements, and (b) 100 basis points, plus, in each case, the applicable margin of 400 basis points per annum.

The interest rates applicable to the loans under the New Revolving Facility equals, at our option, either, (i) in the case of ABR borrowings, the highest of (a) the Federal Funds Rate as of such day plus 50 basis points, (b) the prime rate and (c) the adjusted LIBOR rate as of such day for a deposit in U.S. dollars with a maturity of one month plus 100 basis points, provided that in no event shall the ABR be less than 150 basis points, plus, in each case, the applicable margin of 225 basis points per annum; or (ii) in the case of Eurocurrency borrowings, the greater of (a) the London interbank offered rate for the relevant currency, adjusted for statutory reserve requirements, and (b) 50 basis points, plus, in each case, the applicable margin of 325 basis points per annum.

Guarantees and Security

The obligations under the New Senior Secured Credit Facility are guaranteed by ATI Investment Sub, Inc. and its wholly owned domestic subsidiaries other than certain immaterial subsidiaries and other excluded subsidiaries. The obligations under the New Senior Secured Credit Facility are secured by a first priority security interest in substantially all of Array Tech, Inc.’s and the guarantors’ existing and future property and assets, including accounts receivable, inventory, equipment, general intangibles, intellectual property, investment property, other personal property, material owned real property, cash and proceeds of the foregoing, subject to customary exceptions.

Prepayments and Amortization

Loans under the New Revolving Credit Facility may be voluntarily prepaid in whole, or in part, in each case without premium or penalty. Loans under the New Term Loan Facility may be voluntarily prepaid in whole, or in part, in each case without premium or penalty (other than a 1% premium with respect to prepayments on account of certain “repricing events,” subject to exceptions, occurring within 12 months of the closing date of the New Senior Credit Facility), subject to certain customary conditions.

Subject to certain customary exceptions, the New Senior Secured Credit Facility requires mandatory prepayments, but not permanent reductions of commitments thereunder, for excess cash flow, asset sales, subject to a right of reinvestment, and refinancing facilities.

The New Term Loan Facility amortizes in equal quarterly installments in aggregate annual amounts equal to 1.00% per annum of the original principal amount of the loans funded thereunder. There is no scheduled amortization under the New Revolving Credit Facility.

Restrictive Covenants and Other Matters

The New Senior Secured Credit Facility contains affirmative and negative covenants that are customary for financings of this type, including covenants that restrict our incurrence of indebtedness, incurrence of liens, dispositions, investments, acquisitions, restricted payments, transactions with affiliates, as well as other negative covenants customary for financings of this type.

The New Revolving Credit Facility also includes a springing financial maintenance covenant that is tested on the last day of each fiscal quarter if the outstanding loans and certain other credit extensions under the New Revolving Credit Facility exceed 35% of the aggregate amount of commitments thereunder, subject to customary exclusions and conditions. If the financial maintenance covenant is triggered, the first lien net leverage ratio will be tested for compliance not to exceed 7.10 to 1.00.

The New Senior Secured Credit Facility also includes customary events of default, including the occurrence of a change of control.

Special Distribution to Parent

On October 14, 2020, the Company issued a special distribution of $589 million to Parent. Proceeds for the New Senior Secured Credit facility and cash on hand were used to fund the special distribution.

Corporate Conversion and Stock Split

On October 14, 2020, prior to the issuance of any of our shares of common stock in our initial public offering (“IPO”), we converted from a Delaware limited liability company to a Delaware corporation. In connection with the corporate conversion we converted all 1,000 of our outstanding member units into 100,000,000 shares of common stock and then completed a stock split of 1.19994-for-1. The corporate conversion and stock split representing 119,994,467 shares of common stock have been adjusted retroactively for the purposes of calculating basic and diluted earnings per share.

Authorized Shares of Common and Preferred Stock

On October 14, 2020, in connection with the closing of the IPO, a new Certificate of Incorporation became effective for the Company, which authorized capital stock of 1,000,000,000 shares of common stock, $0.001 par value, and 5,000,000 shares of preferred stock, $0.001 par value.

IPO

On October 14, 2020, we completed our IPO and sold 7,000,000 shares of common stock at a public offering price of $22.00 per share. We received net proceeds of $140.2 million after deducting underwriting discounts and commissions of $8.5 million and other offering costs of $5.3 million. We used $105 million of the IPO proceeds to pay down the balance of the New Term Loan Facility to $470 million.

Equity Incentive Plan

On October 14, 2020, the Company’s 2020 Equity Incentive Plan (“2020 Plan”) became effective. The 2020 Plan authorized 6,683,919 new shares.

Effective October 14, 2020, the Company granted an aggregate of 29,398 restricted stock units (RSU’s) to its non-employee directors in connection with their service on the board of directors and 470,608 RSU’s to certain executives and members of management. The RSU’s were granted under the 2020 Plan at the IPO price of $22.00 per share. Each share has a vesting commencement date of and is subject to a two to three-year vesting schedule, vesting annually after the vesting commencement date.

Earn-out Payment

On October 14, 2020, as a result of certain qualifying events, the special distribution and shares sold in the IPO by the selling shareholders, a payment of $9.1 million was made to holders of the Earn-out.

18.

Subsequent Events

Amendment to Revolving Loan

On March 23, 2020, the Company amended its Revolving Loan to increase the commitment from $47.5 million to $100.0 million and extend the maturity date March 23, 2025 on similar terms.

Related Party Loan

On February 23, 2020, the Senior Secured Loan was amended to extend the due date to March 22, 2020. On March 20, 2020, the loan was again amended (“Fourth Amendment”) to extend the due date to require 50% of the principal to be paid on June 22, 2020 and the remaining unpaid balance to be paid September 22, 2020. The Fourth Amendment increased the interest rate on the Senior Secured Loan to 18% from its effective date to provide for PIK payment of the April 1, 2020 Tranche A interest of $0.6 million. The Company made a $21.7 million principal payment per the amendment on June 22, 2020 and paid the related party loan in full on July 31, 2020.

Class B Units in Parent

In May 2020, certain employees of the Company received 4,344,941 Class B Units in Parent.

Economic Developments

The Company is monitoring the recent global health emergency driven by the potential impact of the COVID-19 virus, along with global supply and demand dynamics. The extent to which these events may impact the Company’s business will depend on future developments, which are highly uncertain and cannot be predicted at this time. Though the Company has thus far avoided significant impact to performance of operations as the global crisis enters its fourth month, the Company could encounter project delays due to impacts on suppliers, customers, or others. The duration and intensity of these impacts and resulting disruption to the Company’s operations is uncertain and continues to evolve as of the date of this report. Accordingly, management will continue to monitor the impact of the global situation on its financial condition, liquidity, operations, suppliers, industry, and workforce.

Coronavirus Aid, Relief, and Economic Security (CARES) Act

On March 27, 2020, the President of the United States signed into law the CARES Act. The CARES Act among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improved property.

The Company continues to examine the impact that the CARES Act may have on our business. The Company began deferring the employer portion of social security payments in April 2020. In June 2020, the Company filed a carryback claim for a tentative refund of $13.0 million pursuant to the CARES Act that extended NOL carryback provisions.

The Company has reviewed subsequent events through August 11, 2020, the date these consolidated financial statements were available to be issued and has identified no other events that would require recognition or disclosure in these consolidated financial statements other than those disclosed herein.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Accounting and Presentation and Unaudited Interim Financial Information

Basis of Accounting and Presentation

Unaudited Interim Financial Information

Basis of Accounting and Presentation

Principles of Consolidation

Principles of Consolidation

Corporate Conversion and Stock Split

Corporate Conversion and Stock Split

Use of Estimates

Use of Estimates

Restricted Cash

Restricted Cash


	2018		2019
Cash	$	40,826	$	310,262
Restricted cash		—		50,995

Cash and restricted cash	$	40,826	$	361,257

Accounts Receivable

Accounts Receivable

Inventories

Inventories

Property, Plant and Equipment

Property, Plant and Equipment

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Goodwill

Goodwill

Amortizable and Other Intangible Assets

Amortizable and Other Intangible Assets

Debt Discount/Deferred Financing Costs

Debt Discount/Deferred Financing Costs

Revenue Recognition

Revenue Recognition

Performance Obligations

Contract Estimates

Contract Balances

Remaining Performance Obligations

Revenue Recognition - 2019

Performance Obligations

Contract Estimates

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the consolidated balance sheets. The majority of the Company’s contract amounts are billed as work progresses in accordance with agreed-upon contractual terms, which generally coincide with the shipment of one or more phases of the project. Billing sometimes occurs subsequent to revenue recognition, resulting in contract assets. The changes in contract assets (i.e. unbilled receivables) and the corresponding amounts recorded in revenue relate to fluctuations in the timing and volume of billings for the Company’s revenue recognized over-time. As of December 31, 2018 and 2019, contract assets consisting of unbilled receivables totaling $1.9 million and $16.1 million, respectively, are recorded within accounts receivable on the consolidated balance sheets on a contract-by-contract basis at the end of the reporting period. The Company also receives advances or deposits from its customers, before revenue is recognized, resulting in contract liabilities. The changes in contract liabilities (i.e. deferred revenue) relate to advanced orders and payments received by the Company and are the result of customers looking to take advantage of certain U.S. federal tax incentives set to decrease at the end of 2019. Based on the terms of the tax incentives the customer must pay for the goods prior to December 31, 2019 which accounts for the increase in the advanced orders and payments and the resulting deferred revenue. As of December 31, 2018 and 2019, contract liabilities consisting of deferred revenue were $21.8 million and $328.8 million, respectively, and were recorded on a contract-by-contract basis at the end of each reporting period. During the years ended December 31, 2018 and 2019, the Company converted $14.4 million and $21.8 million of deferred revenue to revenue, respectively, which represented 100% of the prior years deferred revenue balance.

Remaining Performance Obligations

As of December 31, 2019, the Company had $434.9 million of remaining performance obligations. The Company expects to recognize revenue on 100% of these performance obligations in 2020.

Practical Expedients and Exemptions

Revenue Recognition - 2018

Warranty Obligations

Warranty Obligations

Income Taxes

Income Taxes

Equity-Based Compensation

Equity-Based Compensation

Earnings per Unit ("EPU")

Earnings per Unit (“EPU”)

Credit Concentration

Credit Concentration

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, restricted cash and accounts receivable. The Company has no significant off balance sheet concentrations of credit risk. The Company maintains its cash with financial institutions that are believed to be of high credit quality and has not experienced any material losses relating to any cash and restricted cash. As of December 31, 2018 and 2019, $40.1 million and $360.9 million, respectively, of the Company’s bank balances were uninsured and uncollateralized and exposed to custodial credit risk.

Fair Value

Fair Value

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity that are significant to the fair value of the assets or liabilities.

Fair Value

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity that are significant to the fair value of the assets or liabilities.

New Accounting Standards

New Accounting Standards

To be adopted

New Accounting Standards

Adopted in 2019

To be Adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which was subsequently amended by ASU No. 2018-19 and ASU No. 2019-10, requires the measurement of expected credit losses for financial instruments carried at amortized cost held at the reporting date based on historical experience, current conditions and reasonable forecasts. The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The Company will continue to assess the possible impact of this standard, but currently does not expect the adoption of this standard will have a significant impact on its consolidated financial statements and its limited history of bad debt expense relating to trade accounts receivable.

Impact of COVID-19 Pandemic and CARES Act Payroll Tax Deferral

Impact of COVID-19 Pandemic

Deferred Offering Costs

Deferred Offering Costs

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Reconciliation of Cash and Restricted Cash


	2018		2019
Cash	$	40,826	$	310,262
Restricted cash		—		50,995

Cash and restricted cash	$	40,826	$	361,257

Inventories (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Inventory Disclosure [Abstract]

Schedule of current inventory

Inventories consist of the following at (in thousands):


	December 31, 2019			September 30, 2020 (unaudited)
Raw materials	$	62,923		$	32,506
Finished goods		90,301			71,726
Reserve for excess or obsolete inventory		(5,200	)		(7,717	)

Total	$	148,024		$	96,515

Inventories consist of the following at December 31, (in thousands):


	2018			2019
Raw materials	$	6,512		$	62,923
Finished goods		52,118			90,301
Reserve for excess or obsolete inventory		(3,458	)		(5,200	)

Total	$	55,172		$	148,024

Property, Plant and Equipment (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Summary of property, plant and equipment

Property, plant and equipment consisted of the following at (in thousands):


	Estimated Useful Lives (Years)		December 31, 2019			September 30, 2020 (unaudited)
Land		N/A	$	1,340		$	1,340
Buildings and land improvements		15-39		2,464			2,487
Manufacturing equipment		7		12,631			13,002
Furniture, fixtures and equipment		5-7		277			287
Vehicles		5		140			140
Hardware and software		3-5		398			589

				17,250			17,845
Less: accumulated depreciation				(6,590	)		(8,225	)

Total			$	10,660		$	9,620

Property, plant and equipment consisted of the following at December 31, (in thousands):


	Estimated Useful Lives (Years)		2018			2019
Land		N/A	$	1,340		$	1,340
Buildings and land improvements		15-39		2,448			2,464
Manufacturing equipment		7		10,954			12,631
Furniture, fixtures and equipment		5-7		332			277
Vehicles		5		123			140
Hardware and software		3-5		358			398

				15,555			17,250
Less: accumulated depreciation				(4,526	)		(6,590	)

Total			$	11,029		$	10,660

Goodwill and Other Intangible Assets (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of indefinite-lived intangible assets

Other intangible assets consisted of the following at (in thousands):


	Estimated Useful Lives (Years)		December 31, 2019		September 30, 2020 (unaudited)
Amortizable:
Costs:
Developed technology		14	$	203,800	$	203,800
Customer relationship		10		89,500		89,500
Internal-use software modification costs		2.5		4,356		4,356

Total Amortizable Intangibles				297,656		297,656

Accumulated amortization:
Developed technology				50,676		61,594
Customer relationship				31,157		37,869
Internal-use software modification costs				2,613		3,920

Total Accumulated Amortization				84,446		103,383

Total Amortizable Intangibles, Net				213,210		194,273

Non-amortizable costs:
Trade name				10,300		10,300

Total Other Intangible Assets, Net			$	223,510	$	204,573

Other intangible assets consisted of the following at December 31, (in thousands):


	Estimated Useful Lives (Years)		2018		2019
Amortizable:
Costs:
Developed technology		14	$	203,800	$	203,800
Customer relationship		10		89,500		89,500
Internal-use software modification costs		2.5		4,356		4,356

Total Amortizable Intangibles				297,656		297,656

Accumulated amortization:
Developed technology				36,119		50,676
Customer relationship				22,206		31,157
Internal-use software modification costs				871		2,613

Total Accumulated Amortization				59,196		84,446

Total Amortizable Intangibles, Net				238,460		213,210

Non-amortizable costs:
Trade name				10,300		10,300

Total Other Intangible Assets, Net			$	248,760	$	223,510

Schedule of finite-lived intangible assets

Other intangible assets consisted of the following at (in thousands):


	Estimated Useful Lives (Years)		December 31, 2019		September 30, 2020 (unaudited)
Amortizable:
Costs:
Developed technology		14	$	203,800	$	203,800
Customer relationship		10		89,500		89,500
Internal-use software modification costs		2.5		4,356		4,356

Total Amortizable Intangibles				297,656		297,656

Accumulated amortization:
Developed technology				50,676		61,594
Customer relationship				31,157		37,869
Internal-use software modification costs				2,613		3,920

Total Accumulated Amortization				84,446		103,383

Total Amortizable Intangibles, Net				213,210		194,273

Non-amortizable costs:
Trade name				10,300		10,300

Total Other Intangible Assets, Net			$	223,510	$	204,573

Other intangible assets consisted of the following at December 31, (in thousands):


	Estimated Useful Lives (Years)		2018		2019
Amortizable:
Costs:
Developed technology		14	$	203,800	$	203,800
Customer relationship		10		89,500		89,500
Internal-use software modification costs		2.5		4,356		4,356

Total Amortizable Intangibles				297,656		297,656

Accumulated amortization:
Developed technology				36,119		50,676
Customer relationship				22,206		31,157
Internal-use software modification costs				871		2,613

Total Accumulated Amortization				59,196		84,446

Total Amortizable Intangibles, Net				238,460		213,210

Non-amortizable costs:
Trade name				10,300		10,300

Total Other Intangible Assets, Net			$	248,760	$	223,510

Schedule of future annual amortization expense of amortizable intangible assets

Estimated future annual amortization expense for the above amortizable intangible assets for the remaining periods through December 31, as follows (in thousands):


	Amortization Expense
2020	$	6,313
2021		23,507
2022		23,507
2023		23,507
2024		23,507
Thereafter		93,932

	$	194,273

Estimated future annual amortization expense for the above amortizable intangible assets are as follows (in thousands):


For the Year Ending December 31,	Amortization Expense
2020	$	25,250
2021		23,507
2022		23,507
2023		23,507
2024		23,507
Thereafter		93,932

	$	213,210

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes charged to operations

The provision for income taxes charged to operations consists of the following for the years ended December 31, (in thousands):


	2018			2019
Current Expense:
Federal	$	31		$	1,709
State		99			803

		130			2,512
Deferred Expense (Benefit):
Federal		(15,955	)		20,576
State		(4,107	)		1,746

		(20,062	)		22,322

Total Income Tax Expense (Benefit)	$	(19,932	)	$	24,834

Schedule of significant components of the Company's deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows as of December 31, (in thousands):


	2018			2019
Deferred Tax Assets:
Bad debts	$	1,817		$	37
Inventories		1,116			1,632
Accrued warranties		447			599
Accrued compensation		613			843
Contingent Consideration - TRA		4,654			—
Net operating loss		11,169			795
Disallowed interest		4,345			—
Other		589			124

Deferred Tax Assets		24,750			4,030
Valuation allowance		(253	)		(208	)

Deferred Tax Assets, net		24,497			3,822

Deferred Tax Liabilities:
Property, plant, and equipment		(1,217	)		(1,093	)
Intangible assets		(16,811	)		(18,582	)

Deferred Tax Liabilities		(18,028	)		(19,675	)

Deferred Tax Asset (Liability), net	$	6,469		$	(15,853	)

Summary of reconciliation of income tax expense (benefit)


	2018			2019
Income tax expense (benefit) at federal statutory rate	$	(16,947	)	$	13,562
State income taxes		(3,365	)		2,049
Permanent differences:
Derecognition of tax assets from IRS examination		—			9,284
Equity based compensation		—			168
Contingent consideration		49			134
Credits		—			(284	)
Other nondeductible expenses		48			40
Foreign income benefit		—			(155	)
Change in valuation allowance		253			(45	)
Other		30			81

Total Income Tax Expense (Benefit)	$	(19,932	)	$	24,834

Accrued Warranty Reserve (Tables)

12 Months Ended

Dec. 31, 2019

Guarantees and Product Warranties [Abstract]

Summary of Activity Related to Estimated Accrued Warranty Reserve

The following table summarizes the activity related to the estimated accrued warranty reserve during the years ended December 31, (in thousands):


	2018			2019
Beginning balance	$	2,916		$	1,935
Provision for warranties issued		759			2,473
Payments		(886	)		(730	)
Warranty expirations		(854	)		(1,086	)

Ending balance	$	1,935		$	2,592

Revenues (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

The following table presents the Company’s revenue disaggregated by sales recorded over-time and sales recorded at a point in time for the nine months ended September 30, as follows (in thousands):


	2019		2020
Over-time Revenues	$	383,135	$	620,447
Point in time Revenues		40,054		71,649

Total Revenue	$	423,189	$	692,096

The following table presents the Company’s revenue disaggregated by sales recorded over-time and sales recorded at a point in time for the year ended December 31, 2019 as follows (in thousands):


	2019
Over-time Revenues	$	599,863
Point in time Revenues		48,036

Total Revenue	$	647,899

Earnings (Loss) per Unit (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Earnings Per Share [Abstract]

Schedule of earnings per share, basic and diluted

The following table sets forth the computation of basic and diluted earnings per unit for the nine months ended September 30, (in thousands, except per unit amounts):


	2019		2020
Basic and Diluted:
Net income	$	12,965	$	68,845
Weighted-average units		119,994		119,994
Basic and diluted net earnings per unit	$	0.11	$	0.57

The following table sets forth the computation of basic and diluted earnings per unit for the years ended December 31, (in thousands, except per unit amounts):


	2018			2019
Basic and Diluted:
Net income (loss)	$	(60,764	)	$	39,745
Weighted-average units		119,994			119,994
Basic and diluted earnings (loss) per unit	$	(0.51	)	$	0.33

Commitments and Contingencies (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of operating lease commitments


For the Year Ending December 31,
2020	$	6,337
2021		5,990
2022		5,378
2023		28

	$	17,733

Undiscounted future expected payments under the TRA

As of September 30, 2020, the undiscounted future expected payments through December 31, under the TRA are as follows (in thousands):


2020	$	7,414
2021		1,692
2022		1,748
2023		1,748
2024		1,748
2025 and thereafter		10,931

	$	25,281

As of December 31, 2019, the undiscounted future expected payments under the TRA are as follows (in thousands):


For the Year Ending December 31,
2020	$	6,293
2021		1,746
2022		1,746
2023		1,746
2024		1,746
2025 and thereafter		9,033

	$	22,310

Summary of liability related to estimated contingent consideration

The following table summarizes the liability related to the estimated contingent consideration during the nine months ended September 30, (in thousands):


	TRA			Earn-Out Liability		Contingent Consideration
Balance, December 31, 2018	$	17,168		$	442	$	17,610
IRS settlement		(2,727	)		—		(2,727	)
Fair value adjustment		2,905			—		2,905

Balance, September 30, 2019	$	17,346		$	442	$	17,788


Balance, December 31, 2019	$	17,808		$	442	$	18,250
Fair value adjustment		516			15,492		16,008

Balance, September 30, 2020	$	18,324		$	15,934	$	34,258

The following table summarizes the liability related to the estimated contingent consideration during the years ended December 31, (in thousands):


	TRA			Earn-Out Liability		Contingent Consideration
Balance, December 31, 2017	$	17,993		$	442	$	18,435
Fair value adjustment		(825	)		—		(825	)

Balance, December 31, 2018		17,168			442		17,610
IRS settlement		(2,727	)		—		(2,727	)
Fair value adjustment		3,367			—		3,367

Balance, December 31, 2019	$	17,808		$	442	$	18,250

Geographic Information (Tables)

12 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Summary of Revenues Within Geographic Areas Based upon Customers Project Location

Revenues within geographic areas based upon Customers’ project location for the years ended December 31, (in thousands):


	2018		2019
United States	$	218,380	$	563,157
Australia		51,450		51,531
Rest of the world		20,953		33,211

Total Revenues	$	290,783	$	647,899

Summary of Significant Accounting Policies - Narrative (Detail) $ in Thousands		9 Months Ended		12 Months Ended
	Oct. 14, 2020 shares	Sep. 30, 2020 USD ($) shares	Sep. 30, 2019 USD ($) shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($) shares
Class of Stock [Line Items]
Weighted-average units (in shares) \| shares		119,994,000	119,994,000	119,994,000	119,994,000
Restricted cash				$ 51,000
Allowance for doubtful accounts				200	$ 7,900
Amortization expense of debt discount and deferred financing costs		$ 2,160	$ 3,004	3,968	2,991
Contract assets		34,800		16,100	1,900
Deferred revenue					21,800
Contract liabilities		44,800		328,800
Deferred revenue recognized		$ 20,500	$ 328,800	$ 21,800	14,400
Percentage of deferred revenue recognized		99.20%	100.00%	100.00%
Remaining performance obligation		$ 227,000		$ 434,900
Percentage of performance obligation to be recognized		100.00%		100.00%
Revenue, practical expedient, initial application and transition				true
Amortization period of sales commissions				1 year
Contract term of financing components				1 year
Cost of revenue		$ 524,747	$ 333,024	$ 497,138	279,228
Income tax examination period				Three years
Cash that is uninsured and uncollateralized		26,600		$ 360,900	$ 40,100
Deferred offering costs		3,300
Debt issuance costs		$ 500
Three Customers [Member] \| Revenue Benchmark \| Customer Concentration Risk
Class of Stock [Line Items]
Concentration risk percentage			43.10%
Five Largest Customers \| Revenue Benchmark \| Customer Concentration Risk
Class of Stock [Line Items]
Concentration risk percentage		45.90%	55.20%	50.10%	50.90%
Five Largest Customers \| Trade Accounts Receivable \| Customer Concentration Risk
Class of Stock [Line Items]
Concentration risk percentage		23.90%		69.00%	26.50%
Largest Customer \| Revenue Benchmark \| Customer Concentration Risk
Class of Stock [Line Items]
Concentration risk percentage		14.30%	21.20%	17.20%	17.50%
Largest Customer \| Trade Accounts Receivable \| Customer Concentration Risk
Class of Stock [Line Items]
Concentration risk percentage		21.70%		29.50%	11.60%
Two Customers \| Revenue Benchmark \| Customer Concentration Risk
Class of Stock [Line Items]
Concentration risk percentage		24.50%		28.70%	28.30%
CARES Act Payroll Tax Deferral
Class of Stock [Line Items]
Deferred payment of employer share of social security taxes		$ 700
Subsequent event
Class of Stock [Line Items]
Stock split conversion ratio	1.19994
Weighted-average units (in shares) \| shares	119,994,467
Member units \| Subsequent event
Class of Stock [Line Items]
Number of shares converted \| shares	1,000
Common stock \| Subsequent event
Class of Stock [Line Items]
Number of shares issued upon conversion \| shares	100,000,000
Shipping and Handling
Class of Stock [Line Items]
Revenue				$ 22,900	$ 16,400
Cost of revenue				17,300	20,100
2020-10-01
Class of Stock [Line Items]
Remaining performance obligation, period		12 months
Accounts Receivable
Class of Stock [Line Items]
Amounts under contracts				$ 6,100	$ 5,700
Minimum
Class of Stock [Line Items]
Accounts receivable payment term				30 days
Warranty obligations period				2 years
Maximum
Class of Stock [Line Items]
Accounts receivable payment term				60 days
Warranty obligations period				20 years
Accounting Standards Update 2014-09
Class of Stock [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted				true
Change in Accounting Principle, Accounting Standards Update, Adoption Date				May 31, 2014
Change in Accounting Principle, Accounting Standards Update, Early Adoption				false
Accounting Standards Update 2016-02
Class of Stock [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted				true
Change in Accounting Principle, Accounting Standards Update, Adoption Date				Feb. 28, 2016
Change in Accounting Principle, Accounting Standards Update, Early Adoption				false
Accounting Standards Update 2016-13
Class of Stock [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted				true
Change in Accounting Principle, Accounting Standards Update, Adoption Date				Jun. 30, 2016
Change in Accounting Principle, Accounting Standards Update, Early Adoption				false
Accounting Standards Update 2018-13
Class of Stock [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted				true
Change in Accounting Principle, Accounting Standards Update, Adoption Date				Aug. 31, 2018
Change in Accounting Principle, Accounting Standards Update, Early Adoption				false
Accounting Standards Update 2019-12
Class of Stock [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted				true
Change in Accounting Principle, Accounting Standards Update, Adoption Date				Dec. 31, 2019
Change in Accounting Principle, Accounting Standards Update, Early Adoption				false

Summary of Significant Accounting Policies - Summary of Reconciliation of Cash and Restricted Cash (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Restricted Cash and Investments [Abstract]
Cash	$ 27,144	$ 310,262	$ 40,826
Restricted cash	$ 0	50,995	0
Cash and restricted cash		$ 361,257	$ 40,826

Inventory - Schedule of current inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 32,506	$ 62,923	$ 6,512
Finished goods	71,726	90,301	52,118
Reserve for excess or obsolete inventory	(7,717)	(5,200)	(3,458)
Inventories, net	$ 96,515	$ 148,024	$ 55,172

Property, Plant, and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 17,845	$ 17,250	$ 15,555
Less: accumulated depreciation	(8,225)	(6,590)	(4,526)
Property, plant and equipment, net	9,620	10,660	11,029
Land
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	1,340	1,340	1,340
Buildings and land improvements
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 2,487	$ 2,464	2,448
Buildings and land improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	15 years	15 years
Buildings and land improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	39 years	39 years
Manufacturing equipment
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 13,002	$ 12,631	10,954
Estimated Useful Lives	7 years	7 years
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 287	$ 277	332
Furniture, fixtures and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	5 years	5 years
Furniture, fixtures and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	7 years	7 years
Vehicles
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 140	$ 140	123
Estimated Useful Lives	5 years	5 years
Hardware and software
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 589	$ 398	$ 358
Hardware and software \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	3 years	3 years
Hardware and software \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	5 years	5 years

Property, Plant, and Equipment - Narrative (Detail) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1.7	$ 1.6	$ 2.1	$ 1.9
Depreciation allocated to cost of revenue	1.5	1.4	1.8	1.7
Depreciation included in depreciation and amortization	$ 0.2	$ 0.2	$ 0.3	$ 0.2

Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Jul. 08, 2016
Goodwill [Line Items]
Goodwill	$ 69,727		$ 69,727	$ 69,727
Accumulated impairment	51,900		51,900	51,900
Goodwill and intangible asset impairment			0	0
Impairment charge related to other intangible assets			0	0
Amortization expense related to intangible assets	$ 18,900	$ 18,900	$ 25,200	$ 26,500
Array
Goodwill [Line Items]
Goodwill					$ 121,600

Goodwill and Other Intangible Assets - Schedule of other intangible assets (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2017
Indefinite-lived Intangible Assets [Line Items]
Total Amortizable Intangibles	$ 297,656	$ 297,656	$ 297,656
Total Accumulated Amortization	103,383	84,446	59,196
Total Amortizable Intangibles, Net	194,273	213,210	238,460
Total Other Intangible Assets, Net	204,573	223,510	248,760
Trade Names
Indefinite-lived Intangible Assets [Line Items]
Non-amortizable costs	$ 10,300	$ 10,300	10,300
Developed technology
Indefinite-lived Intangible Assets [Line Items]
Estimated Useful Lives (Years)	14 years	14 years
Total Amortizable Intangibles	$ 203,800	$ 203,800	203,800
Total Accumulated Amortization	$ 61,594	$ 50,676	36,119
Total Amortizable Intangibles, Net				$ 188,000	$ 210,000
Customer Relationships
Indefinite-lived Intangible Assets [Line Items]
Estimated Useful Lives (Years)	10 years	10 years
Total Amortizable Intangibles	$ 89,500	$ 89,500	89,500
Total Accumulated Amortization	$ 37,869	$ 31,157	22,206
Computer Software, Intangible Asset [Member]
Indefinite-lived Intangible Assets [Line Items]
Estimated Useful Lives (Years)	2 years 6 months	2 years 6 months
Total Amortizable Intangibles	$ 4,356	$ 4,356	4,356
Total Accumulated Amortization	$ 3,920	$ 2,613	$ 871

Goodwill and Other Intangible Assets - Schedule of future annual amortization expense of amortizable intangible assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 6,313	$ 25,250
2021	23,507	23,507
2022	23,507	23,507
2023	23,507	23,507
2024	23,507	23,507
Thereafter	93,932	93,932
Total Amortizable Intangibles, Net	$ 194,273	$ 213,210	$ 238,460

Income Taxes - Schedule of Provision for Income Taxes Charged to Operations (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Current Expense:
Federal			$ 1,709	$ 31
State			803	99
Current expense			2,512	130
Deferred Expense (Benefit):
Federal			20,576	(15,955)
State			1,746	(4,107)
Deferred expense (benefit)	$ (3,666)	$ 14,539	22,322	(20,062)
Total Income Tax Expense (Benefit)	$ 18,131	$ 16,177	$ 24,834	$ (19,932)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Schedule of Significant Components of the Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred Tax Assets:
Bad debts	$ 37	$ 1,817
Inventories	1,632	1,116
Accrued warranties	599	447
Accrued compensation	843	613
Contingent Consideration - TRA		4,654
Net operating loss	795	11,169
Disallowed interest		4,345
Other	124	589
Deferred Tax Assets	4,030	24,750
Valuation allowance	(208)	(253)
Deferred Tax Assets, net	3,822	24,497
Deferred Tax Liabilities:
Property, plant, and equipment	(1,093)	(1,217)
Intangible assets	(18,582)	(16,811)
Deferred Tax Liabilities	(19,675)	(18,028)
Deferred Tax Asset (Liability), net		$ 6,469
Deferred Tax Asset (Liability), net	$ (15,853)

Income Taxes (Detail) - USD ($)	9 Months Ended	12 Months Ended
Income Taxes (Detail) - USD ($)	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2017
Income Tax Examination [Line Items]
Income tax expense (benefit) computed at the federal statutory rate		21.00%	21.00%
State income tax NOL carryforwards		$ 14,700,000
Federal income tax net operating loss ("NOL")		$ 0
Expiration period		Dec. 31, 2036
Reduction in developed technology value for federal income tax purposes	$ 194,273,000	$ 213,210,000	$ 238,460,000
Reduction of NOL carryforward	2,800,000	2,800,000
Increase in deferred tax liability from income tax examination	4,600,000	4,600,000
Write off of deferred tax asset related to TRA	4,700,000	4,700,000
Valuation allowance		$ 208,000	$ 253,000
Income tax benefit	$ 6,600,000
Developed technology
Income Tax Examination [Line Items]
Reduction in developed technology value for federal income tax purposes				$ 188,000,000	$ 210,000,000

Income Taxes - Summary of Reconciliation of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Income tax expense (benefit) reconciliation [Abstract]
Income tax expense (benefit) at federal statutory rate			$ 13,562	$ (16,947)
State income taxes			2,049	(3,365)
Permanent differences:
Derecognition of tax assets from IRS examination			9,284
Equity based compensation			168
Contingent consideration			134	49
Credits			(284)
Other nondeductible expenses			40	48
Foreign income benefit			(155)
Change in valuation allowance			(45)	253
Other			81	30
Total Income Tax Expense (Benefit)	$ 18,131	$ 16,177	$ 24,834	$ (19,932)

Accrued Warranty Reserve - Summary of Activity Related to Estimated Accrued Warranty Reserve (Detail) - Accrued Warranty Reserve - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Product Warranty Liability [Line Items]
Beginning balance	$ 1,935	$ 2,916
Provision for warranties issued	2,473	759
Payments	(730)	(886)
Warranty expirations	(1,086)	(854)
Ending balance	$ 2,592	$ 1,935

Term Loan, Revolving Loan and Letter of Credit Facility - Narrative (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Revolving loan outstanding balance	$ 102,000	$ 70,000	$ 39,148,000
Letters of credit outstanding	$ 30,700,000	$ 28,700,000
Base Rate
Debt Instrument [Line Items]
Effective interest rate	4.00%	5.75%
New Revolving Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 100,000,000	$ 47,500,000
Revolving loan outstanding balance	100,000	70,000	39,100,000
Available borrowing capacity	68,900,000	18,700,000
Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		100,000,000
Letters of credit outstanding		51,000,000
Term Loan Credit and Guarantee Agreement \| Secured Debt
Debt Instrument [Line Items]
Quarterly installment payments	$ 5,000,000	5,000,000
Term Loan balance		$ 57,700,000	82,700,000
Effective interest rate		8.96%
Debt discount and issuance costs		$ 1,800,000	$ 3,400,000
Term Loan Credit and Guarantee Agreement \| Base Rate \| Secured Debt
Debt Instrument [Line Items]
Interest rate applicable margin		6.25%

Related Party Loan - Narrative (Detail) - Unit holder of Parent - USD ($)			9 Months Ended		12 Months Ended
	Dec. 07, 2018	Aug. 22, 2018	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 21, 2018
Senior Secured Loan
Related Party Transaction [Line Items]
Balance of Senior Secured Loan					$ 41,800,000	$ 36,600,000
Interest expense			$ 3,800,000	$ 4,100,000	$ 7,300,000	$ 2,600,000
Senior Secured Loan \| Secured Debt
Related Party Transaction [Line Items]
Senior secured promissory note		$ 38,600,000
Stated rate		12.00%
Stated rate collateralized		100.00%
Debt, original issue discount		$ 3,500,000
Legal fees		$ 100,000
Debt, effective interest rate		19.00%
Tranche A \| Secured Debt
Related Party Transaction [Line Items]
Senior secured promissory note		$ 22,500,000
Deposit for future interest payments		1,900,000
Tranche B \| Secured Debt
Related Party Transaction [Line Items]
Senior secured promissory note		$ 16,100,000
Uncollateralized Demand Promissory Note
Related Party Transaction [Line Items]
Proceeds from related party debt	$ 12,000,000
Repayments of related party debt	1.35%
Accrued interest expense							$ 27,000

Revenues - Disaggregation of revenue (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 692,096	$ 423,189	$ 647,899	$ 290,783
Over-time
Disaggregation of Revenue [Line Items]
Revenues	620,447	383,135	599,863
Point in time
Disaggregation of Revenue [Line Items]
Revenues	$ 71,649	$ 40,054	$ 48,036

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Earnings (Loss) per Unit - Schedule of earnings per share, basic and diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Basic and Diluted:
Net income (loss)	$ 68,845	$ 12,965	$ 39,745	$ (60,764)
Weighted-average units (in shares)	119,994	119,994	119,994	119,994
Basic and diluted net earnings (loss) per unit (in dollars per share)	$ 0.57	$ 0.11	$ 0.33	$ (0.51)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Earnings (Loss) per Unit - Narrative (Detail) - Equity grants - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Class B units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares not included in the calculation of basic or diluted EPS	26,671,594	22,326,253
Class C Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares not included in the calculation of basic or diluted EPS	1,000	0

Commitment and Contingencies - Schedule of Operating Lease Commitments (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020	$ 6,337
2021	5,990
2022	5,378
2023	28
Total	$ 17,733

Commitment and Contingencies - Narrative (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	$ 34,258,000	$ 18,250,000	$ 17,788,000	$ 17,610,000	$ 18,435,000
Array \| TRA
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	$ 18,324,000	17,808,000	17,346,000	17,168,000	17,993,000
Gain in fair value of TRA		$ 2,700,000
Tax Receivable Agreement, payment term	125 days	125 days
Array \| Earn-Out Liability
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	$ 15,934,000	$ 442,000	$ 442,000	$ 442,000	$ 442,000
Maximum aggregate earn-out consideration	$ 25,000,000	25,000,000
Cost of Revenue
Business Acquisition, Contingent Consideration [Line Items]
Lease expenses		1,500,000
General and Administrative Expense
Business Acquisition, Contingent Consideration [Line Items]
Lease expenses		$ 300,000

Commitment and Contingencies - Undiscounted future expected payments under the TRA (Detail) - Array - TRA - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Other Commitments [Line Items]
Other Commitment, to be Paid, Remainder of 2020	$ 7,414
Other Commitment, to be Paid, Year One	1,692	$ 6,293
Other Commitment, to be Paid, Year Two	1,748	1,746
Other Commitment, to be Paid, Year Three	1,748	1,746
Other Commitment, to be Paid, Year Four	1,748	1,746
Other Commitment, to be Paid, After Year Four	10,931
Other Commitment, to be Paid, Year Five		1,746
Other Commitment, to be Paid, After Year Five		9,033
Total	$ 25,281	$ 22,310

Commitment and Contingencies - Summary of liability related to estimated contingent consideration (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Business Combination, Contingent Consideration Arrangements, Change In Amount Of Contingent Consideration [Roll Forward]
Beginning balance	$ 18,250	$ 17,610	$ 17,610	$ 18,435
IRS settlement		(2,727)	(2,727)
Fair value adjustment	16,008	178	640	(825)
Fair value adjustment		2,905	(3,367)
Ending balance	34,258	17,788	18,250	17,610
Array \| TRA
Business Combination, Contingent Consideration Arrangements, Change In Amount Of Contingent Consideration [Roll Forward]
Beginning balance	17,808	17,168	17,168	17,993
IRS settlement		(2,727)	(2,727)
Fair value adjustment	516			(825)
Fair value adjustment		2,905	(3,367)
Ending balance	18,324	17,346	17,808	17,168
Array \| Earn-Out Liability
Business Combination, Contingent Consideration Arrangements, Change In Amount Of Contingent Consideration [Roll Forward]
Beginning balance	442	442	442	442
IRS settlement			0
Fair value adjustment	15,492
Fair value adjustment			0
Ending balance	$ 15,934	$ 442	$ 442	$ 442

Equity Based Compensation - Narrative (Detail) - Equity grants - USD ($) $ in Millions				9 Months Ended	12 Months Ended
	Mar. 28, 2020	Nov. 19, 2019	May 19, 2019	Sep. 30, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation				$ 3.3	$ 0.8
Forfeitures in period (in shares)				0	0
Class B units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)		22,326,653	4,344,941
Unrecognized compensation costs				$ 7.5	$ 8.2
Unrecognized compensation costs, period of recognition				3 years 3 months	3 years 3 months
Class C Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	1,000

Employee Benefit Plan - Narrative (Detail) - 401(K) Plan - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan, description	The Company sponsors a qualified defined contribution 401(k) plan (the "Plan"). The Plan covers employees who have completed ninety days of service and who have attained the age of 18. The Plan allows eligible employees to contribute their compensation to the Plan on either a pre-tax basis or Roth basis up to the annual limit allowed by law. Annually, the Company, at its discretion, may elect to contribute matching contributions or profit-sharing contributions to the Plan.
Employer matching contributions	$ 0.6	$ 0.3

Sales Use Tax Examination - Narrative (Detail) - California - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Sales and Use Tax Examinations [Line Items]
Sales tax payable	$ 1.4	$ 0.7
Indemnification receivable during pre-acquisition	$ 1.4	$ 0.7

Related Party Transactions - Narrative (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Accounts payable - related party	$ 2,232	$ 5,922	$ 7,222
Outstanding accounts payable paid		$ 5,900
Unit holder of Parent \| Consent Fees
Related Party Transaction [Line Items]
Consent fees incurred	$ 2,200

Geographic Information - Narrative (Detail)	12 Months Ended
Geographic Information - Narrative (Detail)	Dec. 31, 2019 Segment
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Number of reportable segment	1

Geographic Information - Summary of Revenues Within Geographic Areas Based upon Customers Project Location (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenues	$ 692,096	$ 423,189	$ 647,899	$ 290,783
UNITED STATES
Segment Reporting Information [Line Items]
Revenues			563,157	218,380
AUSTRALIA
Segment Reporting Information [Line Items]
Revenues			51,531	51,450
Rest of World
Segment Reporting Information [Line Items]
Revenues			$ 33,211	$ 20,953

- Definition

+ References

+ Details

Subsequent Events (Detail)					1 Months Ended	9 Months Ended		12 Months Ended
Subsequent Events (Detail)	Oct. 19, 2020 USD ($)	Oct. 14, 2020 USD ($) $ / shares shares	Apr. 01, 2020 USD ($)	Mar. 20, 2020	May 31, 2020 shares	Sep. 30, 2020 USD ($) shares	Sep. 30, 2019 shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 shares	Jun. 30, 2020 USD ($)	Jun. 22, 2020 USD ($)	Mar. 23, 2020 USD ($)
Subsequent Event [Line Items]
Revolving Loan						$ 0		$ 0
Retroactively adjusted shares of common stock \| shares						119,994,000	119,994,000	119,994,000	119,994,000
Subsequent event
Subsequent Event [Line Items]
Revolving Loan												$ 47,500,000
Maximum borrowing capacity												$ 100,000,000
Revolving loan Maturity date												Mar. 25, 2025
Social security Carryback claim for tentative refund										$ 13,000,000
Special distribution		$ 589,000,000
Stock split conversion ratio		1.19994
Retroactively adjusted shares of common stock \| shares		119,994,467
Authorized capital stock (in shares) \| shares		1,000,000,000
Common stock, par value (usd per share) \| $ / shares		$ 0.001
Authorized preferred stock (in shares ) \| shares		5,000,000
Preferred stock, par value (usd per share) \| $ / shares		$ 0.001
Payment of Earn-out		$ 9,100,000
Subsequent event \| Class B units
Subsequent Event [Line Items]
Shares granted in period (in shares) \| shares					43,449.41
Subsequent event \| Related Party Loans \| Senior Secured Loan
Subsequent Event [Line Items]
Interest rate on senior secured loan			18.00%
Percentage of loan principal amount required to be paid				50.00%
Principal payment per amendment											$ 21,700,000
Principal payment interest			$ 600,000
Subsequent event \| RSU's
Subsequent Event [Line Items]
Share price (usd per share) \| $ / shares		$ 22.00
Subsequent event \| RSU's \| Minimum
Subsequent Event [Line Items]
Vesting period		2 years
Subsequent event \| RSU's \| Maximum
Subsequent Event [Line Items]
Vesting period		3 years
Subsequent event \| RSU's \| Non-employee directors
Subsequent Event [Line Items]
Shares granted in period (in shares) \| shares		29,398
Subsequent event \| RSU's \| Executives and members of management
Subsequent Event [Line Items]
Shares granted in period (in shares) \| shares		470,608
Subsequent event \| 2020 Plan
Subsequent Event [Line Items]
Authorized shares \| shares		6,683,919
Subsequent event \| IPO
Subsequent Event [Line Items]
Number of shares of common stock issued \| shares		7,000,000
Public offering price (usd per share) \| $ / shares		$ 22.00
Net proceeds		$ 140,200,000
Underwriting discounts and commissions		8,500,000
Other offering costs		$ 5,300,000
Subsequent event \| Member units
Subsequent Event [Line Items]
Number of shares converted \| shares		1,000
Subsequent event \| Common stock
Subsequent Event [Line Items]
Number of shares issued upon conversion \| shares		100,000,000
Subsequent event \| New Term Loan Facility
Subsequent Event [Line Items]
Maximum borrowing capacity		$ 575,000,000
Debt instrument term		7 years
Repayment of long term line of credit	$ 105,000,000
New Term Loan outstanding balance	$ 470,000,000
Subsequent event \| New Term Loan Facility \| Fed Funds Effective Rate Overnight Index Swap Rate
Subsequent Event [Line Items]
Revolving Loan applicable margin		0.50%
Subsequent event \| New Term Loan Facility \| London Interbank Offered Rate (LIBOR)
Subsequent Event [Line Items]
Monthly basis spread on variable rate		1.00%
Subsequent event \| New Term Loan Facility \| Base Rate
Subsequent Event [Line Items]
Minimum allowable variable rate		0.0150
Minimum annual variable rate		0.0300
Subsequent event \| New Term Loan Facility \| Eurodollar
Subsequent Event [Line Items]
Minimum allowable variable rate		0.0100
Minimum annual variable rate		0.0400
Subsequent event \| New Revolving Credit Facility
Subsequent Event [Line Items]
Maximum borrowing capacity		$ 150,000,000
Debt instrument term		5 years
Prepayment premium		1.00%
Annual amortization rate		1.00%
Springing financial maintenance covenant		35.00%
Net leverage ratio		7.10
Subsequent event \| New Revolving Credit Facility \| Fed Funds Effective Rate Overnight Index Swap Rate
Subsequent Event [Line Items]
Revolving Loan applicable margin		0.50%
Subsequent event \| New Revolving Credit Facility \| London Interbank Offered Rate (LIBOR)
Subsequent Event [Line Items]
Monthly basis spread on variable rate		1.00%
Subsequent event \| New Revolving Credit Facility \| Base Rate
Subsequent Event [Line Items]
Minimum allowable variable rate		0.0150
Minimum annual variable rate		0.0225
Subsequent event \| New Revolving Credit Facility \| Eurodollar
Subsequent Event [Line Items]
Minimum allowable variable rate		0.0050
Minimum annual variable rate		0.0325