Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | RUN | |
Entity Registrant Name | Sunrun Inc. | |
Entity Central Index Key | 1,469,367 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 111,852,426 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash | $ 242,936 | $ 202,525 | |
Restricted cash | 32,049 | 39,265 | |
Accounts receivable (net of allowances for doubtful accounts of $2,369 and $1,665 as of September 30, 2018 and December 31, 2017, respectively) | 65,354 | 60,359 | |
State tax credits receivable | 0 | 11,085 | |
Inventories | 95,978 | 94,427 | |
Prepaid expenses and other current assets | 9,699 | 9,202 | |
Total current assets | 446,016 | 416,863 | |
Restricted cash | 148 | 0 | |
Solar energy systems, net | 3,618,125 | 3,161,570 | |
Property and equipment, net | 33,522 | 36,402 | |
Intangible assets, net | 11,140 | 14,294 | |
Goodwill | 87,543 | 87,543 | |
Other assets | 336,705 | 246,464 | |
Total assets | [1] | 4,533,199 | 3,963,136 |
Current liabilities: | |||
Accounts payable | 136,064 | 115,193 | |
Distributions payable to noncontrolling interests and redeemable noncontrolling interests | 15,387 | 13,583 | |
Accrued expenses and other liabilities | 85,897 | 97,230 | |
Deferred revenue, current portion | 46,571 | 42,609 | |
Deferred grants, current portion | 8,719 | 8,193 | |
Finance lease obligations, current portion | 8,372 | 7,421 | |
Non-recourse debt, current portion | 27,496 | 21,529 | |
Pass-through financing obligation, current portion | 55,355 | 5,387 | |
Total current liabilities | 383,861 | 311,145 | |
Deferred revenue, net of current portion | 539,863 | 522,243 | |
Deferred grants, net of current portion | 220,274 | 227,519 | |
Finance lease obligations, net of current portion | 7,301 | 5,811 | |
Recourse debt | 247,000 | 247,000 | |
Non-recourse debt, net of current portion | 1,290,102 | 1,026,416 | |
Pass-through financing obligation, net of current portion | 306,642 | 132,823 | |
Other liabilities | 37,717 | 42,743 | |
Deferred tax liabilities | 98,954 | 83,119 | |
Total liabilities | [1] | 3,131,714 | 2,598,819 |
Commitments and contingencies (Note 15) | |||
Redeemable noncontrolling interests | 117,468 | 123,801 | |
Stockholders’ equity: | |||
Preferred stock, $0.0001 par value—authorized, 200,000 shares as of September 30, 2018 and December 31, 2017; no shares issued and outstanding as of September 30, 2018 and December 31, 2017 | 0 | 0 | |
Common stock, $0.0001 par value—authorized, 2,000,000 shares as of September 30, 2018 and December 31, 2017; issued and outstanding, 111,652 and 107,350 shares as of September 30, 2018 and December 31, 2017, respectively | 11 | 11 | |
Additional paid-in capital | 712,646 | 682,950 | |
Accumulated other comprehensive income | 18,856 | (4,113) | |
Retained earnings | 235,279 | 202,734 | |
Total stockholders’ equity | 966,792 | 881,582 | |
Noncontrolling interests | 317,225 | 358,934 | |
Total equity | 1,284,017 | 1,240,516 | |
Total liabilities, redeemable noncontrolling interests and total equity | $ 4,533,199 | $ 3,963,136 | |
[1] | The Company’s consolidated assets as of September 30, 2018 and December 31, 2017 include $2,783,397 and $2,568,378, respectively, in assets of variable interest entities (“VIEs”) that can only be used to settle obligations of the VIEs. These assets include solar energy systems, net, as of September 30, 2018 and December 31, 2017 of $2,587,296 and $2,385,329, respectively; cash as of September 30, 2018 and December 31, 2017 of $106,492 and $118,352, respectively; restricted cash as of September 30, 2018 and December 31, 2017 of $4,944 and $2,699, respectively; accounts receivable, net as of September 30, 2018 and December 31, 2017 of $19,123 and $18,786, respectively; prepaid expenses and other current assets as of September 30, 2018 and December 31, 2017 of $387 and $917, respectively; and other assets as of September 30, 2018 and December 31, 2017 of $65,155 and $42,295, respectively. The Company’s consolidated liabilities as of September 30, 2018 and December 31, 2017 include $652,906 and $677,955, respectively, in liabilities of VIEs whose creditors have no recourse to the Company. These liabilities include accounts payable as of September 30, 2018 and December 31, 2017 of $8,442 and $15,929, respectively; distributions payable to noncontrolling interests and redeemable noncontrolling interests as of September 30, 2018 and December 31, 2017 of $15,337 and $13,526, respectively; accrued expenses and other current liabilities as of September 30, 2018 and December 31, 2017 of $6,568 and $5,200, respectively; deferred revenue as of September 30, 2018 and December 31, 2017 of $388,970 and $409,761, respectively; deferred grants as of September 30, 2018 and December 31, 2017 of $29,505 and $30,406, respectively; non-recourse debt as of September 30, 2018 and December 31, 2017 of $195,294 and $201,285, respectively; and other liabilities as of September 30, 2018 and December 31, 2017 of $8,790 and $1,848, respectively. |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | $ 2,369 | $ 1,665 | |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | |
Common stock, shares issued | 111,652,000 | 107,350,000 | |
Common stock, shares outstanding | 111,652,000 | 107,350,000 | |
Total assets | [1] | $ 4,533,199 | $ 3,963,136 |
Solar energy systems, net | 3,618,125 | 3,161,570 | |
Cash | 242,936 | 202,525 | |
Restricted cash | 32,049 | 39,265 | |
Accounts receivable, net | 65,354 | 60,359 | |
Prepaid expenses and other current assets | 9,699 | 9,202 | |
Other assets | 336,705 | 246,464 | |
Total liabilities | [1] | 3,131,714 | 2,598,819 |
Accounts payable | 136,064 | 115,193 | |
Distributions payable to noncontrolling interests and redeemable noncontrolling interests | 15,387 | 13,583 | |
Accrued expenses and other liabilities | 85,897 | 97,230 | |
Deferred revenue | 586,434 | 564,852 | |
Non-recourse debt | 1,564,598 | 1,294,945 | |
Other liabilities | 37,717 | 42,743 | |
Variable Interest Entities | |||
Total assets | 2,783,397 | 2,568,378 | |
Solar energy systems, net | 2,587,296 | 2,385,329 | |
Cash | 106,492 | 118,352 | |
Restricted cash | 4,944 | 2,699 | |
Accounts receivable, net | 19,123 | 18,786 | |
Prepaid expenses and other current assets | 387 | 917 | |
Other assets | 65,155 | 42,295 | |
Total liabilities | 652,906 | 677,955 | |
Accounts payable | 8,442 | 15,929 | |
Distributions payable to noncontrolling interests and redeemable noncontrolling interests | 15,337 | 13,526 | |
Accrued expenses and other liabilities | 6,568 | 5,200 | |
Deferred revenue | 388,970 | 409,761 | |
Deferred grants | 29,505 | 30,406 | |
Non-recourse debt | 195,294 | 201,285 | |
Other liabilities | $ 8,790 | $ 1,848 | |
[1] | The Company’s consolidated assets as of September 30, 2018 and December 31, 2017 include $2,783,397 and $2,568,378, respectively, in assets of variable interest entities (“VIEs”) that can only be used to settle obligations of the VIEs. These assets include solar energy systems, net, as of September 30, 2018 and December 31, 2017 of $2,587,296 and $2,385,329, respectively; cash as of September 30, 2018 and December 31, 2017 of $106,492 and $118,352, respectively; restricted cash as of September 30, 2018 and December 31, 2017 of $4,944 and $2,699, respectively; accounts receivable, net as of September 30, 2018 and December 31, 2017 of $19,123 and $18,786, respectively; prepaid expenses and other current assets as of September 30, 2018 and December 31, 2017 of $387 and $917, respectively; and other assets as of September 30, 2018 and December 31, 2017 of $65,155 and $42,295, respectively. The Company’s consolidated liabilities as of September 30, 2018 and December 31, 2017 include $652,906 and $677,955, respectively, in liabilities of VIEs whose creditors have no recourse to the Company. These liabilities include accounts payable as of September 30, 2018 and December 31, 2017 of $8,442 and $15,929, respectively; distributions payable to noncontrolling interests and redeemable noncontrolling interests as of September 30, 2018 and December 31, 2017 of $15,337 and $13,526, respectively; accrued expenses and other current liabilities as of September 30, 2018 and December 31, 2017 of $6,568 and $5,200, respectively; deferred revenue as of September 30, 2018 and December 31, 2017 of $388,970 and $409,761, respectively; deferred grants as of September 30, 2018 and December 31, 2017 of $29,505 and $30,406, respectively; non-recourse debt as of September 30, 2018 and December 31, 2017 of $195,294 and $201,285, respectively; and other liabilities as of September 30, 2018 and December 31, 2017 of $8,790 and $1,848, respectively. |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Revenue | $ 204,960 | $ 144,546 | $ 519,861 | $ 380,277 |
Operating expenses: | ||||
Sales and marketing | 56,758 | 39,921 | 150,074 | 108,109 |
Research and development | 4,604 | 3,936 | 13,552 | 10,642 |
General and administrative | 26,720 | 27,925 | 87,743 | 77,761 |
Amortization of intangible assets | 1,051 | 1,052 | 3,153 | 3,154 |
Total operating expenses | 228,507 | 189,721 | 635,088 | 514,824 |
Loss from operations | (23,547) | (45,175) | (115,227) | (134,547) |
Interest expense, net | 34,482 | 23,217 | 94,552 | 65,746 |
Other expenses (income), net | (4,517) | (94) | (5,701) | 589 |
Loss before income taxes | (53,512) | (68,298) | (204,078) | (200,882) |
Income tax expense (benefit) | (5,988) | 14,517 | 6,593 | 30,698 |
Net loss | (47,524) | (82,815) | (210,671) | (231,580) |
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (44,628) | (110,822) | (243,216) | (287,815) |
Net income (loss) available to common stockholders | $ (2,896) | $ 28,007 | $ 32,545 | $ 56,235 |
Net income (loss) per share available to common stockholders | ||||
Basic (in dollars per share) | $ (0.03) | $ 0.26 | $ 0.30 | $ 0.54 |
Diluted (in dollars per share) | $ (0.02) | $ 0.26 | $ 0.28 | $ 0.52 |
Weighted average shares used to compute net income per share available to common stockholders | ||||
Basic (in shares) | 111,134 | 105,783 | 109,351 | 105,060 |
Diluted (in shares) | 120,396 | 109,598 | 116,052 | 107,893 |
Customer agreements and incentives | ||||
Revenue: | ||||
Customer agreements and incentives | $ 114,572 | $ 61,717 | $ 273,167 | $ 168,918 |
Operating expenses: | ||||
Costs | 63,195 | 47,299 | 175,540 | 135,201 |
Solar energy systems and product sales | ||||
Revenue: | ||||
Revenue | 90,388 | 82,829 | 246,694 | 211,359 |
Operating expenses: | ||||
Costs | $ 76,179 | $ 69,588 | $ 205,026 | $ 179,957 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) available to common stockholders | $ (2,896) | $ 28,007 | $ 32,545 | $ 56,235 |
Other comprehensive income: | ||||
Unrealized gain (loss) on derivatives, net of income taxes | 8,495 | (543) | 30,328 | (5,016) |
Less interest income (expense) on derivatives recognized into earnings, net of income taxes | 697 | (138) | 2,352 | (1,042) |
Comprehensive income | $ 4,902 | $ 27,602 | $ 60,521 | $ 52,261 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities: | ||
Net loss | $ (210,671) | $ (231,580) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization, net of amortization of deferred grants | 113,711 | 94,077 |
Deferred income taxes | 6,590 | 30,697 |
Stock-based compensation expense | 21,983 | 16,494 |
Interest on pass-through financing obligations | 12,464 | 9,457 |
Reduction in pass-through financing obligations | (69,842) | (13,799) |
Other noncash losses and expenses | 20,636 | 15,341 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,063) | (8,783) |
Inventories | (1,551) | 4,003 |
Prepaid and other assets | (54,157) | (37,152) |
Accounts payable | 18,289 | 31,669 |
Accrued expenses and other liabilities | (16,727) | (5,288) |
Deferred revenue | 21,582 | 30,834 |
Net cash used in operating activities | (143,756) | (64,030) |
Investing activities: | ||
Payments for the costs of solar energy systems | (571,181) | (558,393) |
Purchases of property and equipment | (3,079) | (5,956) |
Net cash used in investing activities | (574,260) | (564,349) |
Financing activities: | ||
Proceeds from state tax credits, net of recapture | 10,949 | 12,785 |
Payment of debt fees | (9,839) | (6,332) |
Proceeds from pass-through financing and other obligations | 286,642 | 4,639 |
Payment of finance lease obligations | (6,390) | (7,585) |
Contributions received from noncontrolling interests and redeemable noncontrolling interests | 247,704 | 471,322 |
Distributions paid to noncontrolling interests and redeemable noncontrolling interests | (50,726) | (38,761) |
Proceeds from exercises of stock options, net of withholding taxes paid on restricted stock units | 8,676 | (207) |
Net cash provided by financing activities | 751,359 | 640,146 |
Net change in cash and restricted cash | 33,343 | 11,767 |
Cash and restricted cash, beginning of period | 241,790 | 224,363 |
Cash and restricted cash, end of period | 275,133 | 236,130 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest | 55,601 | 29,383 |
Cash paid for taxes | 0 | 0 |
Supplemental disclosures of noncash investing and financing activities | ||
Purchases of solar energy systems and property and equipment included in accounts payable and accrued expenses | 23,445 | 29,206 |
Purchases of solar energy systems included in non-recourse debt | 0 | 12,873 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 9,001 | 166 |
Recourse debt | ||
Financing activities: | ||
Proceeds from issuance of debt | 17,000 | 125,400 |
Repayment of debt | (17,000) | (122,400) |
Non-recourse debt | ||
Financing activities: | ||
Proceeds from issuance of debt | 488,376 | 294,086 |
Repayment of debt | $ (224,033) | $ (92,801) |
Organization
Organization | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Sunrun Inc. (“Sunrun” or the “Company”) was originally formed in 2007 as a California limited liability company and was converted into a Delaware corporation in 2008. The Company is engaged in the design, development, installation, sale, ownership and maintenance of residential solar energy systems (“Projects”) in the United States. Sunrun acquires customers directly and through relationships with various solar and strategic partners (“Partners”). The Projects are constructed either by Sunrun or by Sunrun’s Partners and are owned by the Company. Sunrun’s customers enter into an agreement to utilize the solar system (“Customer Agreement”) which typically has an initial term of 20 years. Sunrun monitors, maintains and insures the Projects. The Company also sells solar energy systems and products, such as panels and racking and solar leads generated to customers. The Company has formed various subsidiaries (“Funds”) to finance the development of Projects. These Funds, structured as limited liability companies, obtain financing from outside investors and purchase or lease Projects from Sunrun under master purchase or master lease agreements. The Company currently utilizes three legal structures in its investment Funds, which are referred to as: (i) pass-through financing obligations, (ii) partnership-flips and (iii) joint venture (“JV”) inverted leases. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2017 . The Company has restated certain prior period amounts to conform to the current period presentation as described in the Recently Issued and Adopted Accounting Standards section below. The results of the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2018 or other future periods. The consolidated financial statements reflect the accounts and operations of the Company and those of its subsidiaries, including Funds, in which the Company has a controlling financial interest. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as variable interest entities (“VIEs”), through arrangements that do not involve controlling voting interests. In accordance with the provisions of Financial Accounting Standards Board (“FASB”), Accounting Standards Codification Topic 810 (“Topic 810”) Consolidation , the Company consolidates any VIE of which it is the primary beneficiary. The primary beneficiary, as defined in Topic 810, is the party that has (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb the losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company evaluates its relationships with its VIEs on an ongoing basis to determine whether it continues to be the primary beneficiary. The consolidated financial statements reflect the assets and liabilities of VIEs that are consolidated. All intercompany transactions and balances have been eliminated in consolidation. Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation. Use of Estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company regularly makes significant estimates and assumptions, including, but not limited to, for revenue recognition, constraints which result in variable consideration, the discount rate used to adjust the promised amount of consideration for the effects of a significant financing component, the estimates that affect the collectability of accounts receivable, the valuation of inventories, the useful lives of solar energy systems, the useful lives of property and equipment, the valuation and useful lives of intangible assets, the effective interest rate used to amortize pass-through financing obligations, the discount rate used for operating and finance leases, the valuation of stock-based compensation, the determination of valuation allowances associated with deferred tax assets, the fair value of debt instruments disclosed and the redemption value of redeemable noncontrolling interests. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. Actual results may differ from such estimates. Segment Information The Company has one operating segment with one business activity, providing solar energy services and products to customers. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information presented on a consolidated basis. Revenue from external customers (including, but not limited to homeowners) for each group of similar products and services is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Customer agreements $ 70,864 $ 55,134 $ 199,171 $ 152,679 Incentives 43,708 6,583 73,996 16,239 Customer agreements and incentives 114,572 61,717 273,167 168,918 Solar energy systems 47,771 30,734 122,503 79,431 Products 42,617 52,095 124,191 131,928 Solar energy systems and product sales 90,388 82,829 246,694 211,359 Total revenue $ 204,960 $ 144,546 $ 519,861 $ 380,277 Revenue from Customer Agreements includes payments by customers for the use of the system as well as utility and other rebates assigned by the customer in the Customer Agreement. Revenue from incentives includes revenue from the sale of investment tax credits ("ITCs") and renewable energy credits (“SRECs”). The increase relates primarily to the sale of ITCs related to a financing obligation fund opened in 2018. Cash and Restricted Cash The following table provides a reconciliation of cash, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. Cash and restricted cash consists of the following (in thousands): September 30, 2018 December 31, 2017 Cash $ 242,936 $ 202,525 Restricted cash, current and long-term 32,197 39,265 Total $ 275,133 $ 241,790 Restricted cash represents amounts related to replacement of solar energy system components and obligations under certain financing transactions. Accounts Receivable Accounts receivable consist of amounts due from customers as well as rebates due from government agencies and utility companies. Under Customer Agreements, the customers typically assign incentive rebates to the Company. Accounts receivable, net consists of the following (in thousands): September 30, 2018 December 31, 2017 Customer receivables $ 63,150 $ 59,263 Other receivables 1,128 1,319 Rebates receivable 3,445 1,442 Allowance for doubtful accounts (2,369 ) (1,665 ) Total $ 65,354 $ 60,359 Deferred Revenue When the Company receives consideration, or when such consideration is unconditionally due, from a customer prior to delivering goods or services to the customer under the terms of a Customer Agreement, the Company records deferred revenue. Such deferred revenue consists of amounts for which the criteria for revenue recognition have not yet been met and includes amounts that are collected or assigned from customers, including upfront deposits and prepayments, and rebates. Deferred revenue relating to financing components represents the cumulative excess of interest expense recorded on financing component elements over the related revenue recognized to date and will eventually net to zero by the end of the initial term. Amounts received related to the sales of SRECs which have not yet been delivered to the counterparty are recorded as deferred revenue. The opening balance of deferred revenue was $525.4 million as of December 31, 2016 . Deferred revenue consists of the following (in thousands): September 30, 2018 December 31, 2017 Under Customer Agreements: Payments received $ 535,045 $ 517,544 Financing component balance 35,979 30,736 571,024 548,280 Under SREC contracts: Payments received 13,494 14,805 Financing component balance 1,916 1,767 15,410 16,572 Total $ 586,434 $ 564,852 In the three months ended September 30, 2018 and 2017 , the Company recognized revenue of $13.3 million and $12.1 million , respectively, and in the nine months ended September 30, 2018 and 2017 , the Company recognized revenue of $39.1 million and $35.1 million , respectively, from amounts included in deferred revenue at the beginning of the respective periods. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized and includes deferred revenue as well as amounts that will be invoiced and recognized as revenue in future periods. Contracted but not yet recognized revenue was approximately $5.1 billion as of September 30, 2018 , of which the Company expects to recognize approximately 6% over the next 12 months. The annual recognition is not expected to vary significantly over the next 10 years as the vast majority of existing Customer Agreements have at least 10 years remaining, given that the average age of our fleet of residential solar energy systems under Customer Agreements is less than three years due to the Company being formed in 2007 and having experienced significant growth in the last few years. The annual recognition on these existing contracts will gradually decline over the following 10 years as the typically 20 year initial term expires on individual Customer Agreements. Fair Value of Financial Instruments The Company defines fair value as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses valuation approaches to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. The FASB establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: • Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; • Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities 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 related assets or liabilities; and • Level 3—Inputs that are unobservable, significant to the measurement of the fair value of the assets or liabilities and are supported by little or no market data. Revenue Recognition The Company recognizes revenue when control of goods or services is transferred to its customers, in an amount that reflects the consideration it expected to be entitled to in exchange for those goods or services. Customer agreements and incentives Customer agreements and incentives revenue is primarily comprised of revenue from Customer Agreements in which the Company provides continuous access to a functioning solar system and revenue from the sales of SRECs generated by the Company’s solar energy systems to third parties. The Company begins to recognize revenue on Customer Agreements when permission to operate ("PTO") is given by the local utility company or on the date daily operation commences if utility approval is not required. Revenue recognition does not necessarily follow the receipt of cash. The Company recognizes revenue evenly over the time that it satisfies its performance obligations over the initial term of the Customer Agreements. Customer Agreements typically have an initial term of 20 years. After the initial contract term, our Customer Agreements typically automatically renew on an annual basis and the rate is initially set at up to a 10% discount to then-prevailing power prices. SREC revenue arises from the sale of environmental credits generated by solar energy systems and is generally recognized upon delivery of the SRECs to the counterparty. For pass-through financing obligation Funds, the value attributable to the ITCs are recognized in the period a solar system is granted PTO - see Note 10 , Pass-through Financing Obligations . In determining the transaction price, the Company adjusts the promised amount of consideration for the effects of the time value of money when the timing of payments provides it with a significant benefit of financing the transfer of goods or services to the customer. In those circumstances, the contract contains a significant financing component. When adjusting the promised amount of consideration for a significant financing component, the Company uses the discount rate that would be reflected in a separate financing transaction between the entity and its customer at contract inception and recognizes the revenue amount on a straight-line basis over the term of the Customer Agreement, and interest expense using the effective interest rate method. Consideration from customers is considered variable due to the performance guarantee under Customer Agreements and liquidating provisions under SREC contracts. Performance guarantees provide a credit to the customer if the system's cumulative production, as measured on various PTO anniversary dates, is below the Company's guarantee of a specified minimum. Revenue is recognized to the extent it is probable that a significant reversal of such revenue will not occur. The Company capitalizes incremental costs incurred to obtain a contract in Other Assets in the consolidated balance sheets. These amounts are amortized on a straight-line basis over the term of the Customer Agreements, and are included in sales and marketing in the consolidated statements of operations. Solar energy systems and product sales For solar energy systems sold to customers, the Company recognizes revenue when the solar energy system passes inspection by the authority having jurisdiction. The Company’s installation projects are typically completed in a short period of time. Product sales consist of solar panels, racking systems, inverters, other solar energy products sold to resellers and customer leads. Product sales revenue is recognized at the time when control is transferred, generally upon shipment. Consideration from customers is considered variable when volume discounts are given to customers, and are recorded as a reduction of revenue. Customer lead revenue, included in product sales, is recognized at the time the lead is delivered. Taxes assessed by government authorities that are directly imposed on revenue producing transactions are excluded from solar energy systems and product sales. Cost of Revenue Customer agreements and incentives Cost of revenue for customer agreements and incentives is primarily comprised of (1) the depreciation of the cost of the solar energy systems, as reduced by amortization of deferred grants, (2) solar energy system operations, monitoring and maintenance costs including associated personnel costs, and (3) allocated corporate overhead costs. Upon adoption of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("Topic 606"), the Company no longer records initial direct costs from the origination of Customer Agreements. Instead, the Company records costs to obtain a contract as described in Revenue Recognition above. Solar energy systems and product sales Cost of revenue for solar energy systems and non-lead generation product sales consists of direct and indirect material and labor costs for solar energy systems installations and product sales. Also included are engineering and design costs specific to an individual customer project, estimated warranty costs, freight costs, allocated corporate overhead costs, vehicle depreciation costs and personnel costs associated with supply chain, logistics, operations management, safety and quality control. Cost of revenue for lead generation consists of costs related to direct-response advertising activities associated with generating customer leads. Recently Issued and Adopted Accounting Standards Accounting standards adopted January 1, 2018 causing restatement of prior periods: In May 2014, the FASB issued Topic 606. The standard establishes a single revenue recognition model for all contracts with customers, eliminates industry specific requirements, and expands disclosure requirements. The Company adopted Topic 606 effective January 1, 2018, using the full retrospective method, which required the Company to restate each prior reporting period presented. The Company has elected to use the practical expedient under Topic 606 and has excluded disclosures of transaction prices allocated to remaining performance obligations and when the Company expects to recognize such revenue for all periods prior to the date of initial application. In February 2016, the FASB issued ASU No. 2016-02, Leases , to replace existing lease guidance with Accounting Standards Codification Topic 842 ("Topic 842"). Topic 842 changes how the definition of a lease is applied and judgment may be required in applying the definition of a lease to certain arrangements. The Company elected to early adopt the standard effective January 1, 2018 concurrent with the adoption of Topic 606 related to revenue recognition, using the modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements, which required the Company to restate each prior reporting period presented. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , to clarify how to apply certain aspects of the new leases standard. The clarifications address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. These amendments have the same effective date and transition requirements as the new leases standard, as such the Company adopted the new ASU and the impact of adopting this standard was not material to its financial statements. Upon the adoption of Topic 842, the Company's Customer Agreements are accounted for under Topic 606 due to changes in the definition of a lease under Topic 842 when the Company was considered a lessor. For operating leases in which the Company is the lessee, the Company concluded that all existing operating leases under Accounting Standards Codification Topic 840 ("Topic 840"), Leases , continue to be classified as operating leases under Topic 842, and all existing capital leases under Topic 840 are classified as finance leases under Topic 842. The Company has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. The Company accounts for short-term leases on a straight-line basis over the lease term. Under Topic 606, total consideration for Customer Agreements, including price escalators and performance guarantees, is estimated and recognized over the term of the Customer Agreement. This accounting for price escalators creates an unbilled receivable balance for the first half of the Customer Agreement, which is then reduced over the second half. Customer Agreements and SRECs with a prepaid element are deemed to include a significant financing component, as defined under Topic 606, which increases both revenue and interest expense. For pass-through financing obligation funds that report investment tax credit revenue, the ITC revenue is now recognized in full at PTO. SREC revenue is estimated net of any variable consideration related to possible liquidated damages, and recognized upon delivery of SRECs to the counterparty. The accounting did not materially differ for revenue currently recognized as solar energy systems and product sales. The adoption of Topic 606 also resulted in an adjustment to the Company's deferred tax liabilities, and impacted the analysis of the realizability of deferred tax assets, resulting in the release of valuation allowance related to state deferred tax assets. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows ("Topic 230"), Restricted Cash, which requires a statement of cash flows to present the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents. The Company adopted Topic 230 effective January 1, 2018, using the retrospective transition method, which required the Company to restate each prior reporting period presented. As a result, the Company no longer presents transfers between cash and restricted cash in the consolidated cash flow statements. Adjustments to Previously Reported Financial Statements from the Adoption of Accounting Standards The primary impact of adopting Topic 606 and Topic 842 includes the recognition of revenue from Customer Agreements, and certain incentives revenue, namely SRECs and ITCs. Previously, under Topic 840, the Company recognized revenue related to certain Customer Agreements as contingent revenue when earned. Under Topic 606, because the Company has a continuous obligation to provide fully functional systems that provide electricity over the term of the Customer Agreement, it recognizes revenue evenly over the term of the Customer Agreements taking into account price escalators and performance guarantees when estimating variable consideration. Previously, the Company recognized revenue related to the sale of SRECs to the extent the cumulative value of delivered SRECs per contract exceeded any possible liquidated damages for non-delivery, if any. Under Topic 606, the Company estimates revenue net of any variable consideration related to possible liquidated damages, and recognizes revenue upon delivery of SRECs to the counterparty. Under Topic 605 and Topic 840, the Company previously reported ITC revenue over five years: following when the related solar system was granted PTO, with one-fifth of the monetized ITCs recognized on each anniversary of the solar energy systems' PTO date. Under Topic 606, the Company recognizes ITC revenue in full at PTO. Previously, under Topic 840, the Company capitalized direct and incremental costs as a component of Solar energy systems, net on the consolidated balance sheets. Under Topic 606, the Company capitalizes incremental costs incurred to obtain a contract in Other Assets in the consolidated balance sheets. These amounts are amortized on a straight-line basis over the term of the Customer Agreements, and are included in Sales and marketing in the consolidated statements of operations. In addition to the impact of revenue recognition related to Customer Agreements, the impact of adopting Topic 842 includes a change in accounting for leases when the Company is the lessee, primarily the inclusion of right-of use ("ROU") assets included in other assets on the consolidated balance sheets, and operating lease liabilities included in accrued expenses and other liabilities and other liabilities on the consolidated balance sheets. The income tax impact as a result of the adoption of Topic 842 was immaterial. The following table presents the effect of the adoption of Topic 606 and Topic 842 on the Company's condensed consolidated balance sheet as of December 31, 2017 (in thousands): December 31, 2017 Previously Reported Adoption Impact Restated Accounts receivable, net of allowances for doubtful accounts $ 76,198 $ (15,839 ) $ 60,359 Solar energy systems, net 3,319,708 (158,138 ) 3,161,570 Other assets 37,225 209,239 246,464 Accrued expenses and other liabilities 85,639 11,591 97,230 Deferred revenue, current portion 77,310 (34,701 ) 42,609 Deferred grants, current portion 8,269 (76 ) 8,193 Pass-through financing obligation, current portion 6,087 (700 ) 5,387 Deferred revenue, net of current portion 584,427 (62,184 ) 522,243 Deferred grants, net of current portion 228,603 (1,084 ) 227,519 Pass-through financing obligation, net of current portion 138,124 (5,301 ) 132,823 Other liabilities 13,520 29,223 42,743 Deferred tax liabilities 59,131 23,988 83,119 Redeemable noncontrolling interests 123,737 64 123,801 Additional paid-in capital 684,141 (1,191 ) 682,950 Retained earnings 131,959 70,775 202,734 Noncontrolling interests 354,076 4,858 358,934 The following table presents the effect of the adoption of Topic 606 and Topic 842 on the Company's condensed consolidated statement of operations for the three and nine months ended September 30, 2017 (in thousands except per share amounts): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Previously Reported Adoption Impact Restated Previously Reported Adoption Impact Restated Revenue: Customer agreements and incentives $ 58,462 $ 3,255 $ 61,717 $ 171,897 $ (2,979 ) $ 168,918 Cost of customer agreements and incentives 49,232 (1,933 ) 47,299 140,682 (5,481 ) 135,201 Sales and marketing 37,298 2,623 39,921 101,758 6,351 108,109 General and administrative 27,925 — 27,925 77,776 (15 ) 77,761 Interest expense, net 17,707 5,510 23,217 49,586 16,160 65,746 Income tax expense 14,834 (317 ) 14,517 37,625 (6,927 ) 30,698 Net loss (80,187 ) (2,628 ) (82,815 ) (218,513 ) (13,067 ) (231,580 ) Net loss attributable to noncontrolling interests and redeemable noncontrolling interests (107,969 ) (2,853 ) (110,822 ) (284,144 ) (3,671 ) (287,815 ) Net income available to common stockholders 27,782 225 28,007 65,631 (9,396 ) 56,235 Basic net income per share available to common stockholders 0.26 — 0.26 0.62 (0.08 ) 0.54 Diluted net income per share available to common stockholders 0.25 0.01 0.26 0.61 (0.09 ) 0.52 The following table presents the effect of the adoption of Topic 230, Topic 606 and Topic 842 on the Company's condensed consolidated statement of cash flows for the nine months ended September 30, 2017 (in thousands): Nine Months Ended September 30, 2017 Previously Reported Adoption Impact Restated Net loss $ (218,513 ) $ (13,067 ) $ (231,580 ) Net cash used in operating activities (39,166 ) (24,864 ) (64,030 ) Net cash used in investing activities (589,144 ) 24,795 (564,349 ) Net cash provided by financing activities 638,088 2,058 640,146 Net change in cash and restricted cash (1) 9,778 1,989 11,767 Cash and restricted cash, beginning of period (1) 206,364 17,999 224,363 Cash and restricted cash, end of period (1) 216,142 19,988 236,130 (1) Pursuant to Topic 230, restricted cash is included in the restated balances in the statement of cash flows, as described above. The amounts in the previously reported column include only cash. Accounting standards to be adopted: In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments , which replaces the current incurred loss impairment methodology with a current expected credit losses model. The amendment applies to entities which hold financial assets and net investment in leases that are not accounted for at fair value through net income as well as loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. Adoption of this ASU is applied using a modified retrospective approach, with certain aspects requiring a prospective approach. The Company is currently evaluating this guidance and the impact it may have on the Company’s consolidated financial statements. In August 2017, the FASB issued 2017-12, Derivatives and Hedging, Targeted Improvements to Accounting for Hedging Activities, which expands an entity's ability to hedge nonfinancial and financial risk components, eliminates the requirement to separately measure and report hedge ineffectiveness, and aligned the recognition and presentation of the effects of hedging instruments in the financial statements. The ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. Adoption of this ASU is applied using a modified retrospective approach. The Company is currently evaluating this guidance and the impact it may have on the Company's consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting , which is intended to align the accounting for share-based payment awards issued to employees and nonemployees, however, this amendment does not apply to instruments issued in a financing transaction nor to equity instruments granted to a customer under a contract in the scope of Topic 606. Currently, performance conditions are recognized once the performance conditions are met. Under this new amendment, equity-classified nonemployee share-based payments will be measured at the grant-date fair value and will be recognized based on the probable outcome of the performance conditions. This ASU is effective for fiscal periods beginning after December 15, 2018. The Company is currently evaluating this guidance and the impact it may have on the Company's consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements . This amendment makes changes to a variety of topics to clarify, correct errors in, or make minor improvements to the Accounting Standards Codification. The majority of the amendments in ASU 2018-09 are effective for periods beginning after December 15, 2018. The Company is currently evaluating this guidance and the impact it may have on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements as part of its disclosure framework project. Under this amendment, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. However, for Level 3 fair value measurements, disclosures around the range and weighted average used to develop significant unobservable inputs will be required. This ASU is effective for fiscal periods beginning after December 15, 2019. The Company is currently evaluating this guidance and the impact it may have on the Company's consolidated financial statements and disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Topic 350, Intangibles- Goodwill and Other , to determine which implementation costs to capitalize as assets or expense as incurred. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. The Company is currently evaluating this guidance and the impact it may have on the Company's consolidated financial statements. In August 2018, the Securities and Exchange Commission adopted a Disclosure Update and Simplification release, which outlines Regulation S-X amendments to eliminate outdated or duplicative disclosure requirements. The final rule also amends the interim financial statement requirements to require a reconciliation of changes in stockholders’ equity in the notes or as a separate statement. These amendments are effective for all filings made 30 days after the amendments are published in the Federal Register, which was on October 4, 2018. The SEC announced that it would not object if the first presentation of the changes in stockholders’ equity for a calendar year end filer were made in the Company’s March 31, 2019 Form 10-Q. The Company plans to use the new presentation beginning in 2019. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement At September 30, 2018 and December 31, 2017 , the carrying value of receivables, accounts payable, accrued expenses and distributions payable to noncontrolling interests approximates fair value due to their short-term nature and falls under the Level 2 hierarchy. The carrying values and fair values of debt instruments are as follows (in thousands): September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Bank line of credit $ 247,000 $ 247,000 $ 247,000 $ 247,000 Senior debt 1,067,947 1,067,529 808,455 807,698 Subordinated debt 157,943 156,257 111,488 111,095 Securitization debt 91,708 89,005 95,821 96,999 SREC Loans — — 32,181 32,181 Total $ 1,564,598 $ 1,559,791 $ 1,294,945 $ 1,294,973 At September 30, 2018 and December 31, 2017 , the fair value of the Company’s lines of credit, and certain senior, subordinated and SREC loans approximate their carrying values because their interest rates are variable rates that approximate rates currently available to the Company. At September 30, 2018 and December 31, 2017 , the fair value of the Company’s other debt instruments are based on rates currently offered for debt with similar maturities and terms. The Company’s fair value of the debt instruments fell under the Level 3 hierarchy. These valuation approaches involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market. The Company determines the fair value of its interest rate swaps using a discounted cash flow model that incorporates an assessment of the risk of non-performance by the interest rate swap counterparty and an evaluation of the Company’s credit risk in valuing derivative instruments. The valuation model uses various inputs including contractual terms, interest rate curves, credit spreads and measures of volatility. At September 30, 2018 and December 31, 2017 , financial instruments measured at fair value on a recurring basis, based upon the fair value hierarchy are as follows (in thousands): September 30, 2018 Level 1 Level 2 Level 3 Total Derivative assets: Interest rate swaps $ — $ 27,567 $ — $ 27,567 Total $ — $ 27,567 $ — $ 27,567 Derivative liabilities: Interest rate swaps $ — $ 55 $ — $ 55 Total $ — $ 55 $ — $ 55 December 31, 2017 Level 1 Level 2 Level 3 Total Derivative assets: Interest rate swaps $ — $ 1,917 $ — $ 1,917 Total $ — $ 1,917 $ — $ 1,917 Derivative liabilities: Interest rate swaps $ — $ 8,568 $ — $ 8,568 Total $ — $ 8,568 $ — $ 8,568 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): September 30, 2018 December 31, 2017 Raw materials $ 84,726 $ 87,927 Work-in-process 11,252 6,500 Total $ 95,978 $ 94,427 |
Solar Energy Systems, net
Solar Energy Systems, net | 9 Months Ended |
Sep. 30, 2018 | |
Solar Energy Systems Disclosure [Abstract] | |
Solar Energy Systems, net | Solar Energy Systems, net Solar energy systems, net consists of the following (in thousands): September 30, 2018 December 31, 2017 Solar energy system equipment costs $ 3,622,735 $ 3,124,407 Inverters 374,035 317,390 Total solar energy systems 3,996,770 3,441,797 Less: accumulated depreciation and amortization (498,797 ) (399,280 ) Add: construction-in-progress 120,152 119,053 Total solar energy systems, net $ 3,618,125 $ 3,161,570 All solar energy systems, construction-in-progress and inverters have been leased to or are subject to signed Customer Agreements with customers. The Company recorded depreciation expense related to solar energy systems of $35.6 million and $28.9 million for the three months ended September 30, 2018 and 2017 , respectively, and $101.8 million and $82.1 million for the nine months ended September 30, 2018 and 2017 , respectively. The depreciation expense was reduced by the amortization of deferred grants of $2.0 million and $1.9 million for the three months ended September 30, 2018 and 2017 , respectively, and $5.8 million and $5.7 million for the nine months ended September 30, 2018 and 2017 , respectively. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following (in thousands): September 30, 2018 December 31, 2017 Costs to obtain contracts $ 200,758 $ 157,970 Accumulated amortization of costs to obtain contracts (22,571 ) (16,485 ) Unbilled receivables 72,290 51,710 Operating lease right-of-use assets 20,577 25,465 Other assets 65,651 27,804 Total $ 336,705 $ 246,464 The Company recorded amortization of costs to obtain contracts of $2.2 million and $1.7 million for the three months ended September 30, 2018 and 2017 , respectively, and $6.2 million and $4.7 million for the nine months ended September 30, 2018 and 2017 , respectively, in the sales and marketing expense. The majority of unbilled receivables arise from fixed price escalators included in our long-term Customer Agreements. The escalator is included in calculating the total estimated transaction value for an individual Customer Agreement. The average rate is then determined from the transaction value and consistently applied over the term of such Customer Agreement to recognize revenue. The amount of unbilled receivables increases while the actual billing rate in an individual Customer Agreement is less than the average rate for that Customer Agreement. Conversely, the amount of unbilled receivables decreases when the actual billing rate escalates and becomes higher than the average rate. At the end of the initial term of a Customer Agreement, the cumulative amounts recognized as revenue and billed to date are the same, therefore the unbilled receivable balance for an individual Customer Agreement will be zero. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): September 30, 2018 December 31, 2017 Accrued employee compensation $ 30,623 $ 30,298 Operating lease obligations 8,288 9,202 Accrued interest 7,889 6,054 Accrued professional fees 9,643 5,837 Other accrued expenses 29,454 45,839 Total $ 85,897 $ 97,230 |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness As of September 30, 2018 , debt consisted of the following (in thousands, except percentages): Carrying Values, net of debt discount Unused Borrowing Capacity Interest Rate (1) Maturity Date Current Long Term Total Recourse debt: Bank line of credit $ — $ 247,000 $ 247,000 $ 406 5.33% - 5.54% April 2020 Total recourse debt $ — $ 247,000 $ 247,000 $ 406 Non-recourse debt: Senior 18,693 1,049,254 1,067,947 — 4.33% - 5.39% September 2020 - October 2024 Subordinated 4,641 153,302 157,943 — 7.03% - 7.84% September 2020 - October 2024 Securitization Class A 3,703 78,241 81,944 — 4.40 % July 2024 Securitization Class B 459 9,305 9,764 — 5.38 % July 2024 Total non-recourse debt $ 27,496 $ 1,290,102 $ 1,317,598 $ — Total debt $ 27,496 $ 1,537,102 $ 1,564,598 $ 406 (1) Reflects contractual, unhedged rates. See Note 9 , Derivatives for hedge rates. As of December 31, 2017 , debt consisted of the following (in thousands, except percentages): Carrying Values, net of debt discount Unused Borrowing Capacity Interest Rate Maturity Date Current Long Term Total Recourse debt: Bank line of credit $ — $ 247,000 $ 247,000 $ 406 4.58% - 4.87% April 2018 Total recourse debt $ — $ 247,000 $ 247,000 $ 406 Non-recourse debt: Senior 3,561 804,894 808,455 12,758 3.63% - 4.69% September 2020 - October 2024 Subordinated 4,301 107,187 111,488 27 6.36% - 7.13% September 2020 - October 2024 Securitization Class A 3,534 82,203 85,737 — 4.40 % July 2024 Securitization Class B 440 9,644 10,084 — 5.38 % July 2024 SREC Loans 9,693 22,488 32,181 — 7.28 % July 2021 Total non-recourse debt $ 21,529 $ 1,026,416 $ 1,047,945 $ 12,785 Total debt $ 21,529 $ 1,273,416 $ 1,294,945 $ 13,191 Bank Line of Credit The Company has outstanding borrowings under a syndicated working capital facility with banks for a total commitment of up to $250.0 million . The working capital facility is secured by substantially all of the unencumbered assets of the Company, as well as ownership interests in certain subsidiaries of the Company. Loans under the facility bear interest at LIBOR + 3.25% per annum or the Base Rate + 2.25% per annum. The Base Rate is the highest of the Federal Funds Rate + 0.50% , the Prime Rate, or LIBOR + 1.00% . Under the terms of the working capital facility, the Company is required to meet various restrictive covenants, such as the completion and presentation of audited consolidated financial statements, maintaining a minimum unencumbered liquidity of at least $30 million at the end of each calendar month and maintaining a minimum interest coverage ratio of 3.00 or greater, measured quarterly as of the last day of each quarter. The Company was in compliance with all debt covenants as of September 30, 2018 . As of September 30, 2018 , the balance under this facility was $247.0 million with a maturity date in April 2020. Syndicated Credit Facilities Each of the Company's syndicated credit facilities contain customary covenants including the requirement to maintain certain financial measurements and provide lender reporting. Each of the syndicated credit facilities also contain certain provisions in the event of default which entitle lenders to take certain actions including acceleration of amounts due under the facilities and acquisition of membership interests and assets that are pledged to the lenders under the terms of the credit facilities. The facilities are non-recourse to the Company and are secured by net cash flows from Customer Agreements less certain operating, maintenance and other expenses which are available to the borrower after distributions to tax equity investors. The Company was in compliance with all debt covenants as of September 30, 2018 . As of September 30, 2018 , certain subsidiaries of the Company have an outstanding balance of $285.7 million on secured credit facilities that were syndicated with various lenders due in October 2024 . The credit facilities totaled $303.0 million and consisted of $293.0 million in term loans, and a $10.0 million revolving debt service reserve letter of credit facility. Term Loan A ("TLA") is a senior delayed draw term loan that bears interest at LIBOR + 2.75% per annum for LIBOR loans or the Base Rate + 1.75% per annum on Base Rate loans. Term Loan B ("TLB") is subordinated debt and consists of a Class A portion which accrues interest at a fixed interest rate of 7.03% per annum and a Class B portion which accrues interest at LIBOR + 5.00% per annum or the Base Rate + 4.00% per annum. The Base Rate is the highest of the Federal Funds Rate + 0.50% , the Prime Rate, or LIBOR + 1.00% . Under TLA, prepayments are permitted with no penalties. Under TLB, prepayments are permitted with associated penalties ranging from 0% - 5% depending on the timing of prepayments. As of September 30, 2018 , certain subsidiaries of the Company have an outstanding balance of $188.3 million on senior secured credit facilities that were syndicated with various lenders due in April 2024 . These facilities are subject to the National Grid project equity transaction. The credit facilities totaled $202.0 million and consisted of a $195.0 million senior delayed draw term loan facility and a $7.0 million revolving debt service reserve letter of credit facility. Loans under the facility bear interest at LIBOR + 2.25% per annum, as amended in March 2018, for the remainder of the initial four -year period for LIBOR loans or the Base Rate + 1.25% per annum for Base Rate Loans. The Base Rate is the highest of the Federal Funds Rate + 0.50% , the Prime Rate, or LIBOR + 1.00% . The facilities are non-recourse to the Company and are secured by net cash flows from Customer Agreements and SRECs, less certain operating, maintenance and other expenses which are available to the borrower after distributions to tax equity investors. Prepayments are permitted under the delayed draw term loan facility. As of September 30, 2018 , certain subsidiaries of the Company have an outstanding balance of $511.9 million on secured credit facilities agreements, as amended, with a syndicate of banks due in March 2023 . The facilities totaled $595.0 million and consisted of a revolving aggregation facility (“Aggregation Facility”), a term loan ("Term Loan") and a revolving debt service reserve letter of credit facility. Senior loans under the Aggregation Facility bear interest at LIBOR + 2.50% per annum for the initial three -year revolving availability period, stepping up to LIBOR + 2.75% per annum in the following two -year period. The subordinated Term Loan bears interest at LIBOR + 5.00% per annum for the first three -year period, stepping up to LIBOR + 6.50% per annum thereafter. Term Loan prepayment penalties range from 0% - 1% depending on the timing of prepayments. Senior Debt As of September 30, 2018 , a subsidiary of the Company has an outstanding balance of $189.6 million on a revolving loan facility due in September 2020 . The facility is non-recourse to the Company and is secured by the assets of such subsidiary and its net cash flows, including the net cash flows from the generation of contracted SRECs by certain subsidiaries of the Company. Loans under the facility bear interest at LIBOR + 2.75% per annum for the senior secured loan, and LIBOR + 5.50% per annum for the subordinated loan. The Company was in compliance with all debt covenants under this loan facility as of September 30, 2018 . As of September 30, 2018 , a subsidiary of the Company has an outstanding balance of $21.8 million on a term loan due in April 2022 . The loan is secured by the assets and related net cash flow of this subsidiary and is non-recourse to the Company’s other assets. The Company was in compliance with all debt covenants under this loan as of September 30, 2018 . As of September 30, 2018 , a subsidiary of the Company has an outstanding balance of $11.1 million on a non-recourse loan due in September 2022 . The loan is secured by substantially all of the assets of the subsidiary including this subsidiary’s membership interests and assets in its investment funds. The loan contains certain provisions in the event of default which entitles the lender to take certain actions including acceleration of amounts due under the loan. Loans under this facility bear interest at LIBOR + 3.00% per annum. The financing agreement requires the Company to maintain certain financial covenants. The Company was in compliance with all debt covenants under this loan as of September 30, 2018 . As of September 30, 2018 , a subsidiary of the Company has an outstanding balance of $17.5 million on a secured, non-recourse loan agreement due in September 2022 . The loan will be repaid through cash flows from a pass-through financing obligation arrangement previously entered into by the Company. The loan agreement contains customary covenants including the requirement to maintain certain financial measurements and provide lender reporting. The loan also contains certain provisions in the event of default which entitles the lender to take certain actions including acceleration of amounts due under the loan. Loans under this facility bear interest at LIBOR + 2.25% per annum. The Company was in compliance with all debt covenants under this loan as of September 30, 2018 . Securitization Loans As of September 30, 2018 , a subsidiary of the Company has an outstanding balance of $91.7 million on solar asset-backed notes ("Notes") secured by associated customer contracts (“Solar Assets”) held by a special purpose entity (“Issuer”). As of September 30, 2018 and December 31, 2017 , these Solar Assets had a carrying value of $166.5 million and $172.8 million , respectively, and are included under solar energy systems, net, in the consolidated balance sheets. The Company was in compliance with all debt covenants as of September 30, 2018 . |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Interest Rate Swaps The Company uses interest rate swaps to hedge variable interest payments due on certain of its term loans and aggregation facility. These swaps allow the Company to incur fixed interest rates on these loans and receive payments based on variable interest rates with the swap counterparty based on the one or three month LIBOR on the notional amounts over the life of the swaps. The interest rate swaps have been designated as cash flow hedges. The credit risk adjustment associated with these swaps is the risk of non-performance by the counterparties to the contracts. In the nine months ended September 30, 2018 , the hedge relationships on the Company’s interest rate swaps have been assessed as highly effective as the critical terms of the interest rate swaps match the critical terms of the underlying forecasted hedged transactions. Accordingly, changes in the fair value of these derivatives are recorded as a component of accumulated other comprehensive income, net of income taxes. Changes in the fair value of these derivatives are subsequently reclassified into earnings, and are included in interest expense, net in the Company’s statements of operations, in the period that the hedged forecasted transactions affects earnings. The Company recorded an unrealized gain of $8.5 million and $ 30.3 million for the three and nine months ended September 30, 2018 respectively, net of applicable tax expense of $(3.1) million and $(10.7) million , respectively. The Company recorded an unrealized loss of $0.5 million and $5.0 million for the three and nine months ended September 30, 2017 respectively, net of applicable tax benefit of $0.3 million and $3.2 million , respectively. The Company recognized interest expense on derivatives of $0.7 million and $2.4 million for the three and nine months ended September 30, 2018 , respectively, net of tax benefit of $0.3 million and $0.8 million , respectively. The Company recognized interest expense on derivatives of $0.1 million and $1.0 million for the three and nine months ended September 30, 2017 , respectively, net of tax expense of $0.1 million and $0.7 million , respectively. During the three months ended September 30, 2018 , the Company accelerated the reclassification of an amount in other comprehensive income to earnings as a result of a hedged forecasted transaction becoming probable to not occur due to a refinancing which repaid the hedged debt. The related interest rate swap was also terminated. The accelerated amount resulted in a gain of $6.9 million recognized as Other expenses (income), net in the Consolidated Statement of Operations. During the next 12 months, the Company expects to reclassify $1.8 million of net gains on derivative instruments from accumulated other comprehensive income to earnings. There were no undesignated derivative instruments recorded by the Company as of September 30, 2018 . At September 30, 2018 , the Company had designated derivative instruments classified as derivative assets as reported in other assets of $27.6 million and derivative liabilities as reported in other liabilities of $0.1 million in the Company’s balance sheet. At December 31, 2017 , the Company had designated derivative instruments classified as hedges of variable interest payments as derivative assets that are reported in other assets of $1.9 million and derivative liabilities as reported in other liabilities of $8.6 million in the Company’s balance sheet. At September 30, 2018 , the Company had the following derivative instruments (dollars in thousands): Type Quantity Effective Dates Maturity Dates Hedge Interest Rates Notional Amount Adjusted Net Fair Market Value Interest rate swap 1 5/21/2018 9/20/2020 2.69% $ 109,305 $ 228 Interest rate swaps 2 4/29/2016 - 12/30/2016 8/31/2022 - 9/30/2022 1.27%- 2.37% $ 24,952 $ 897 Interest rate swaps 10 7/31/2017 - 1/31/2019 4/30/2024 - 10/31/2024 2.16%- 2.69% $ 347,687 $ 11,797 Interest rate swaps 3 4/30/2021 10/30/2026 - 10/31/2026 2.89% - 3.08% $ 102,720 $ 383 Interest rate swap 1 9/20/2020 6/20/2030 2.57% $ 67,013 $ 1,374 Interest rate swap 1 9/30/2022 9/30/2031 3.23% $ 8,642 $ (44 ) Interest rate swap 1 9/20/2020 4/20/2032 2.60% $ 33,409 $ 775 Interest rate swaps 5 1/31/2019 - 10/31/2024 7/31/2034 2.48% - 3.04% $ 144,379 $ 4,562 Interest rate swaps 5 7/31/2017 - 4/30/2024 7/31/2035 2.56% - 2.95% $ 151,869 $ 3,330 Interest rate swaps 5 1/31/2018 - 10/18/2024 10/31/2036 2.62% - 2.95% $ 183,671 $ 3,802 Interest rate swaps 3 10/30/2026 - 10/31/2026 1/31/2038 3.01% - 3.16% $ 101,135 $ 408 |
Pass-through Financing Obligati
Pass-through Financing Obligations | 9 Months Ended |
Sep. 30, 2018 | |
Property Subject to or Available for Operating Lease, Net [Abstract] | |
Pass-Through Financing Obligations | Pass-through Financing Obligations The Company's pass-through financing obligations ("financing obligations") arise when the Company leases solar energy systems to Fund investors who are considered commercial customers under a master lease agreement, and these investors in turn are assigned the Customer Agreements with customers. The Company receives all of the value attributable to the accelerated tax depreciation and some or all of the value attributable to the other incentives. Given the assignment of operating cash flows, these arrangements are accounted for as financing obligations. The Company also sells the rights and related value attributable to the ITC to these investors. Under these financing obligation arrangements, wholly owned subsidiaries of the Company finance the cost of solar energy systems with investors for an initial term of typically 20 years. The solar energy systems are subject to Customer Agreements with an initial term of typically 20 years that automatically renew on an annual basis. These solar energy systems are reported under the line item solar energy systems, net in the consolidated balance sheets. As of September 30, 2018 and December 31, 2017 , the cost of the solar energy systems placed in service under the financing obligations was $565.3 million and $464.2 million , respectively. The accumulated depreciation related to these assets as of September 30, 2018 and December 31, 2017 was $76.5 million and $63.7 million , respectively. The investors make a series of large up-front payments and, in certain cases, subsequent smaller quarterly payments (lease payments) to the subsidiaries of the Company. The Company accounts for the payments received from the investors under the arrangements as borrowings by recording the proceeds received as financing obligations. These financing obligations are reduced over a period of approximately 20 years by customer payments under the Customer Agreements, U.S. Treasury grants (where applicable), incentive rebates (where applicable), the fair value of the ITCs monetized (where applicable) and proceeds from the contracted resale of SRECs as they are received by the investor. Under this approach, the Company accounts for the Customer Agreements and any related U.S. Treasury grants or incentive rebates as well the resale of SRECs consistent with the Company’s revenue recognition accounting policies as described in Note 2, Summary of Significant Accounting Policies. Interest is calculated on the financing obligations using the effective interest rate method. The effective interest rate, which is adjusted on a prospective basis, is the interest rate that equates the present value of the estimated cash amounts, including ITCs, to be received by the investor over the lease term with the present value of the cash amounts paid by the investor to the Company, adjusted for amounts received by the investor. The financing obligations are nonrecourse once the associated assets have been placed in service and all the contractual arrangements have been assigned to the investor. Under the majority of the financing obligations, the investor has a right to extend its right to receive cash flows from the customers beyond the initial term in certain circumstances. Depending on the arrangement, the Company has the option to settle the outstanding financing obligation on the ninth or eleventh anniversary of the Fund inception at a price equal to the higher of (a) the fair value of future remaining cash flows or (b) the amount that would result in the investor earning their targeted return. In several of these financing obligations, the investor has an option to require repayment of the entire outstanding balance on the tenth anniversary of the Fund inception at a price equal to the fair value of the future remaining cash flows. In one arrangement the investor has a right, on June 30, 2019, to purchase all of the systems leased at a price equal to the higher of (a) the sum of the present value of the expected remaining lease payments due by the investor, discounted at 5% , and the fair market value of the Company’s residual interest in the systems as determined through independent valuation or (b) a set value per kilowatt applied to the aggregate size of all leased systems. Under all financing obligations, the Company is responsible for services such as warranty support, accounting, lease servicing and performance reporting to customers. As part of the warranty and performance guarantee with customers, the Company guarantees certain specified minimum annual solar energy production output for the solar energy systems leased to the customers, which the Company accounts for as disclosed in Note 2, Summary of Significant Accounting Policies. |
VIE Arrangements
VIE Arrangements | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entity Disclosure [Abstract] | |
VIE Arrangements | VIE Arrangements The Company consolidated various VIEs at September 30, 2018 and December 31, 2017 . The carrying amounts and classification of the VIEs’ assets and liabilities included in the consolidated balance sheets are as follows (in thousands): September 30, 2018 December 31, 2017 Assets Current assets Cash $ 106,492 $ 118,352 Restricted cash 4,944 2,699 Accounts receivable, net 19,123 18,786 Prepaid expenses and other current assets 387 917 Total current assets 130,946 140,754 Solar energy systems, net 2,587,296 2,385,329 Other assets 65,155 42,295 Total assets $ 2,783,397 $ 2,568,378 Liabilities Current liabilities Accounts payable $ 8,442 $ 15,929 Distributions payable to noncontrolling interests and redeemable noncontrolling interests 15,337 13,526 Accrued expenses and other liabilities 6,568 5,200 Deferred revenue, current portion 28,034 28,695 Deferred grants, current portion 1,016 1,021 Non-recourse debt, current portion 2,755 11,179 Total current liabilities 62,152 75,550 Deferred revenue, net of current portion 360,936 381,066 Deferred grants, net of current portion 28,489 29,385 Non-recourse debt, net of current portion 192,539 190,106 Other liabilities 8,790 1,848 Total liabilities $ 652,906 $ 677,955 The Company holds a variable interest in an entity that provides the noncontrolling interest with a right to terminate the leasehold interests in all of the leased projects on the tenth anniversary of the effective date of the master lease. In this circumstance, the Company would be required to pay the noncontrolling interest an amount equal to the fair market value, as defined in the governing agreement of all leased projects as of that date. The Company holds certain variable interests in nonconsolidated VIEs established as a result of five pass-through financing obligation Fund arrangements as further explained in Note 10 , Pass-through Financing Obligations . The Company does not have material exposure to losses as a result of its involvement with the VIEs in excess of the amount of the pass-through financing obligation recorded in the Company’s consolidated financial statements. The Company is not considered the primary beneficiary of these VIEs. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests and Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Redeemable Noncontrolling Interests and Equity | Redeemable Noncontrolling Interests and Equity As of September 30, 2018 , the changes in redeemable noncontrolling interests, total stockholders’ equity and noncontrolling interests were as follows (in thousands): Redeemable Noncontrolling Interests Total Stockholders' Equity Noncontrolling Interests Total Equity Balance — December 31, 2017 $ 123,801 $ 881,582 $ 358,934 $ 1,240,516 Exercise of stock options — 13,860 — 13,860 Issuance of restricted stock units, net of tax withholdings — (7,910 ) — (7,910 ) Shares issued in connection with the Employee Stock Purchase Plan — 1,755 — 1,755 Stock based compensation — 21,991 — 21,991 Contributions from noncontrolling interests and redeemable noncontrolling interests 60,683 — 187,021 187,021 Distributions to noncontrolling interests and redeemable noncontrolling interests (8,168 ) — (44,362 ) (44,362 ) Net income (loss) (58,848 ) 32,545 (184,368 ) (151,823 ) Other comprehensive loss, net of taxes — 22,969 — 22,969 Balance — September 30, 2018 $ 117,468 $ 966,792 $ 317,225 $ 1,284,017 The carrying value of redeemable noncontrolling interests was greater than the redemption value except for five Funds at September 30, 2018 and December 31, 2017 where the carrying value has been adjusted to the redemption value. As of September 30, 2017 , the changes in redeemable noncontrolling interests, total stockholders’ equity and noncontrolling interests were as follows (in thousands): Redeemable Noncontrolling Interests Total Stockholders' Equity Noncontrolling Interests Total Equity Balance — December 31, 2016 $ 140,996 $ 742,771 $ 252,957 $ 995,728 Cumulative effect of adoption of ASU 2016-16 and ASU 2016-09 — 2,996 — 2,996 Exercise of stock options — 1,573 — 1,573 Issuance of restricted stock units, net of tax withholdings — (2,925 ) — (2,925 ) Shares issued in connection with the Employee Stock Purchase Plan — 1,145 — 1,145 Stock based compensation — 16,530 — 16,530 Contributions from noncontrolling interests and redeemable noncontrolling interests 105,167 — 368,902 368,902 Distributions to noncontrolling interests and redeemable noncontrolling interests (11,794 ) — (31,098 ) (31,098 ) Net income (loss) (57,942 ) 56,235 (229,873 ) (173,638 ) Other comprehensive loss, net of taxes — (3,974 ) — (3,974 ) Balance — September 30, 2017 $ 176,427 $ 814,351 $ 360,888 $ 1,175,239 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options The following table summarizes the activity for all stock options under all of the Company’s equity incentive plans for the nine months ended September 30, 2018 (shares and aggregate intrinsic value in thousands): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2017 16,268 $ 5.70 7.41 $ 14,832 Granted 1,469 8.48 Exercised (2,555 ) 5.40 Cancelled / forfeited (834 ) 6.56 Outstanding at September 30, 2018 14,348 $ 5.98 6.81 $ 93,159 Options vested and exercisable at September 30, 2018 8,093 $ 5.53 5.56 $ 56,270 Restricted Stock Units The following table summarizes the activity for all restricted stock units (“RSUs”) under all of the Company’s equity incentive plans for the nine months ended September 30, 2018 (shares in thousands): Number of Awards Weighted Average Grant Date Fair Value Unvested balance at December 31, 2017 5,330 $ 5.82 Granted 1,909 8.54 Issued (1,451 ) 6.45 Cancelled / forfeited (1,170 ) 5.62 Unvested balance at September 30, 2018 4,618 $ 6.80 Employee Stock Purchase Plan Under the Company's amended 2015 Employee Stock Purchase Plan ("ESPP"), eligible employees are offered shares bi-annually through a 24 -month offering period which encompasses four six month purchase periods. Each purchase period begins on the first trading day on or after May 15 and November 15 of each year. Employees may purchase a limited number of shares of the Company’s common stock via regular payroll deductions at a discount of 15% of the lower of the fair market value of the Company’s common stock on the first trading date of each offering period or on the exercise date. Employees may deduct up to 15% of payroll, with a cap of $25,000 of fair market value of shares in any calendar year and 10,000 shares per employee per purchase period. Stock-Based Compensation Expense The Company recognized stock-based compensation expense, including ESPP expenses, in the consolidated statements of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cost of customer agreements and incentives $ 648 $ (69 ) $ 1,926 $ 1,792 Cost of solar energy systems and product sales 188 171 545 441 Sales and marketing 1,102 1,580 6,086 4,304 Research and development 313 259 918 594 General and administration 3,490 3,164 12,507 9,363 Total $ 5,741 $ 5,105 $ 21,982 $ 16,494 In August 2017, the Company entered into an agreement with an affiliate ("Contractor") of Comcast Corporation ("Comcast") whereby Contractor will receive lead or sales fees for new customers it brings to the Company over a 40 -month term. The Company also issued Comcast a warrant to purchase up to 11,793,355 shares of the Company's common stock, at an exercise price of $0.01 per warrant share. The warrant would initially vest 50.05% when both (i) Contractor has earned a lead or sales fee with respect to 30,000 of installed solar energy systems, and (ii) Contractor or its affiliates have spent at least $10.0 million in marketing and sales in connection with the agreement. Thereafter, the warrant would vest in five additional increments for each additional 6,000 installed solar energy systems. On November 7, 2018 the warrant vesting schedule was modified so that it will initially vest either (i) as to 10.0% if Contractor has earned a lead or sales fee with respect to 6,000 of installed solar energy systems by September 30, 2019 or (ii) as to 13.3% if Contractor has earned a lead or sales fee with respect to 8,000 of installed solar energy systems by December 31, 2019, provided that, in either case, Contractor or its affiliates have spent at least $ 25.0 million in marketing and sales in connection with the agreement. Thereafter, the warrant will vest in additional 8.3% increments for each additional 5,000 installed solar energy systems. If the initial vesting conditions have not been met by December 31, 2019, the Warrant will expire. As of November 7, 2018, none of the shares under this amended warrant have vested and, therefore, the modification has no current financial statement effect as no expense has been recognized to date based on the terms of the award. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax expense rate for the three months ended September 30, 2018 and 2017 was 11.2% and (21.3)% , respectively, and for the nine months ended September 30, 2018 and 2017 was (3.2)% and (15.3)% , respectively. The differences between the actual consolidated effective income tax rate and the U.S. federal statutory rate were primarily attributable to the allocation of losses on noncontrolling interests and redeemable noncontrolling interests, which assumes a hypothetical liquidation of these partnerships as of the reporting dates and therefore a deferred tax expense is calculated on the income available to common stockholders. The Company sells solar energy systems to investment Funds. As the investment Funds are consolidated by the Company, the gain on the sale of the assets has been eliminated in the consolidated financial statements. Tax Act On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code that affected 2017, the current year and onwards, including, but not limited to, a reduction of the U.S. federal corporate tax rate from as high as 35% to 21%, net operating loss deduction limitations, interest expense limitations, revenue recognition changes and 100% disallowance of entertainment expense. The Company continues to analyze the Tax Act and implement relevant changes in the accounting for income taxes. In addition on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118") which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes , for the year ended December 31, 2017. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. The Company has determined that the deduction related to officers' compensation and the new tax statute needs further analysis to make their final assessment. The Company is still within the measurement period as of September 30, 2018 and no further conclusions have been made, as the Company reviews the law change and the impact to the Company. Uncertain Tax Positions As of September 30, 2018 and December 31, 2017 , the Company had $0.6 million and $1.5 million , respectively, of unrecognized tax benefits related to an acquisition in 2015. In addition, there was $0.2 million and $0.4 million of interest and penalties for uncertain tax positions as of September 30, 2018 and December 31, 2017 , respectively. During the nine months ended September 30, 2018 , the Company recorded an income tax benefit of $1.1 million due to the expiration of federal and California statute of limitations. This benefit was fully offset by an indemnification asset that was written down to zero through operating expenses during the year. The Company is subject to taxation and files income tax returns in the United States, its territories, and various state and local jurisdictions. Due to the Company’s net losses, substantially all of its federal, state and local income tax returns since inception are still subject to audit. Net Operating Loss Carryforwards As a result of the Company’s net operating loss carryforwards as of September 30, 2018 and December 31, 2017 , the Company does not expect to pay income tax, including in connection with its income tax provision for the nine months ended September 30, 2018 until the Company’s net operating losses are fully utilized. As of December 31, 2017 , the Company’s federal and state net operating loss carryforwards were $720.1 million and $630.7 million , respectively. If not utilized, the federal net operating loss will begin to expire in the year 2028 and the state net operating losses will begin to expire in the year 2024 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit As of September 30, 2018 and December 31, 2017 , the Company had $15.5 million and $16.4 million , respectively, of unused letters of credit outstanding, which carry fees of 2.50% - 3.25% per annum. Operating and Finance Leases The Company leases real estate under non-cancellable-operating leases and equipment under finance leases. The components of lease expense were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Finance lease cost: Amortization of right-of-use assets $ 3,126 $ 2,706 $ 8,483 $ 8,302 Interest on lease liabilities 167 142 414 509 Operating lease cost 2,616 2,433 7,749 7,563 Short-term lease cost 228 145 583 388 Variable lease cost 947 630 2,454 1,953 Sublease income $ (156 ) $ (18 ) $ (381 ) $ (18 ) Total lease cost $ 6,928 $ 6,038 $ 19,302 $ 18,697 Other information related to leases was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,771 $ 2,509 $ 8,026 $ 7,481 Operating cash flows from finance leases 123 134 327 468 Financing cash flows from finance leases 2,357 2,369 6,529 7,735 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,322 1,589 1,414 5,455 Finance leases 4,997 72 9,139 174 Weighted average remaining lease term (years): Operating leases 3.51 4.08 3.51 4.08 Finance leases 2.59 2.20 2.59 2.20 Weighted average discount rate: Operating leases 4.2 % 4.0 % 4.2 % 4.0 % Finance leases 4.0 % 3.0 % 4.0 % 3.0 % Future minimum lease payments under non-cancellable leases as of September 30, 2018 were as follows (in thousands): Operating Leases Finance Leases 2018 $ 9,000 $ 8,749 2019 5,984 4,131 2020 4,211 2,371 2021 2,734 1,107 2022 1,918 49 Thereafter 321 19 Total future lease payments 24,168 16,426 Less: Amount representing interest (1,623 ) (753 ) Present value of future payments 22,545 15,673 Less: Current portion (8,288 ) (8,372 ) Long-term portion $ 14,257 $ 7,301 Purchase Commitment The Company entered into purchase commitments, which have the ability to be canceled without significant penalties, with multiple suppliers to purchase $159.6 million of photovoltaic modules and inverters by the end of 2019. Warranty Accrual The Company accrues warranty costs when revenue is recognized for solar energy systems sales, based on the estimated future costs of meeting its warranty obligations. Warranty costs primarily consist of replacement costs for supplies and labor costs for service personnel since warranties for equipment and materials are covered by the original manufacturer’s warranty (other than a small deductible in certain cases). As such, the warranty reserve is immaterial in all periods presented. The Company makes and revises these estimates based on the number of solar energy systems under warranty, the Company’s historical experience with warranty claims, assumptions on warranty claims to occur over a systems’ warranty period and the Company’s estimated replacement costs. ITC and Cash Grant Indemnification The Company is contractually committed to compensate certain investors for any losses that they may suffer in certain limited circumstances resulting from reductions in ITCs or U.S. Treasury grants. Generally, such obligations would arise as a result of reductions to the value of the underlying solar energy systems as assessed by the Internal Revenue Service (the “IRS”) or U.S. Treasury Department. At each balance sheet date, the Company assesses and recognizes, when applicable, the potential exposure from this obligation based on all the information available at that time, including any audits undertaken by the IRS. The Company believes that this obligation is not probable based on the facts known as of the filing date of this Quarterly Report on Form 10-Q. The maximum potential future payments that the Company could have to make under this obligation would depend largely on the difference between the prices at which the solar energy systems were sold or transferred to the Funds (or, in certain structures, the fair market value claimed in respect of such systems (referred to as "claimed values")) and the eligible basis determined by the IRS. The Company set the purchase prices and claimed values based on fair market values determined with the assistance of an independent third-party appraisal with respect to the systems that generate ITCs that are passed-through to and claimed by the Fund investors. Since the Company cannot determine how the IRS may evaluate system values used in claiming ITCs, the Company is unable to reliably estimate the maximum potential future payments that it could have to make under this obligation as of each balance sheet date, though any potential future payments are mitigated by the insurance policy described below. In April 2018, the Company purchased an insurance policy providing for certain payments by the insurers in the event there is any final determination (including a judicial determination) that reduced the ITCs claimed in respect of solar energy systems sold or transferred to most Funds through April 2018, or later, in the case of Funds added to the policy after such date. In general, the policy indemnifies the Company and related parties for additional taxes (including penalties and interest) owed in respect of lost ITCs, gross-up costs and expenses incurred in defending such claim, subject to negotiated exclusions from, and limitations to, coverage. Litigation The Company is subject to certain legal proceedings, claims, investigations and administrative proceedings in the ordinary course of its business. The Company records a provision for a liability when it is both probable that the liability has been incurred and the amount of the liability can be reasonably estimated. These provisions, if any, are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Depending on the nature and timing of any such proceedings that may arise, an unfavorable resolution of a matter could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period. In July 2012, the U.S. Treasury Department and the Department of Justice (together, the “Government”) opened a civil investigation into the participation by residential solar developers in the Section 1603 grant program. The Government served subpoenas on several developers, including Sunrun, along with their investors and valuation firms. The focus of the investigation is the claimed fair market value of the solar systems the developers submitted to the Government in their grant applications. The Company has cooperated fully with the Government and plans to continue to do so. No claims have been brought against the Company. The Company is not able to estimate the ultimate outcome or a range of possible loss at this point in time. On November 20, 2015, a putative class action captioned Slovin et al. v. Sunrun Inc. and Clean Energy Experts, LLC , Case No. 4:15-cv-05340, was filed in the United States District Court, Northern District of California. The complaint generally alleged violations of the Telephone Consumer Protection Act (the “TCPA”) on behalf of an individual and putative classes of persons alleged to be similarly situated. Plaintiffs filed a First Amended Complaint on December 2, 2015, and a Second Amended Complaint on March 25, 2016, also asserting individual and putative class claims under the TCPA. By Order entered on April 28, 2016, the Court granted the Company’s motion to strike the class allegations set forth in the Second Amended Complaint, and granted leave to amend. Plaintiffs filed a Third Amended Complaint on July 12, 2016 asserting individual and putative class claims under the TCPA. On October 12, 2016, the Court denied the Company’s motion to again strike the class allegations set forth in the Third Amended Complaint. On October 3, 2017, plaintiffs filed a motion for leave to file a Fourth Amended Complaint, seeking to, among other things, revise the definitions of the classes that plaintiffs seek to represent. The Company has opposed that motion, which remains pending before the Court. In each iteration of their complaint, plaintiffs seek statutory damages, equitable and injunctive relief, and attorneys’ fees and costs, on behalf of themselves and the absent classes. On April 12, 2018, the Company and plaintiffs advised the Court that they reached a settlement in principle, and the Court vacated all deadlines relating to the motion for class certification. On September 27, 2018, Plaintiffs filed a motion for preliminary approval to settle all claims against the Company for $ 5.5 million , which was accrued as of March 31, 2018. Most, if not all, of the claims asserted in the lawsuit relate to activities allegedly engaged in by third-party vendors, for which the Company denies any responsibility. The vendors are contractually obligated to indemnify the Company for losses related to the conduct alleged. The Company has denied, and continues to deny, the claims alleged and the settlement does not reflect any admission of fault, wrongdoing or liability. The settlement is subject to definitive documentation, class notice and court approval. On April 13, 2016, a purported shareholder class action captioned Pytel v. Sunrun Inc., et al. , Case No. CIV 538215, was filed in the Superior Court of California, County of San Mateo, against the Company, certain of the Company’s directors and officers, the underwriters of the Company’s initial public offering and certain other defendants. The complaint generally alleges that the defendants violated Sections 11, 12 and 15 of the Securities Act of 1933, as amended (the "Securities Act"), by making false or misleading statements in connection with the Company’s August 5, 2015 initial public offering regarding the continuation of net metering programs. The plaintiffs seek to represent a class of persons who acquired the Company’s common stock pursuant or traceable to the initial public offering. Plaintiffs seek compensatory damages, including interest, rescission or rescissory damages, an award of reasonable costs and attorneys’ fees, and any equitable or injunctive relief deemed appropriate by the court. On April 29, 2016, a purported shareholder class action captioned Baker et al. v. Sunrun Inc., et al. , Case No. CIV 538419, was filed in the Superior Court of California, County of San Mateo. On May 10, 2016, a purported shareholder class action captioned Nunez v. Sunrun Inc., et al. , Case No. CIV 538593, was filed in the Superior Court of California, County of San Mateo. The Baker and Nunez complaints are substantially similar to the Pytel complaint, and seek similar relief against similar defendants on behalf of the same purported class. On May 3, 2018, plaintiffs filed a second amended complaint including allegations related to the alleged effect of customer cancellations on the Company’s business. On April 21, 2016, a purported shareholder class action captioned Cohen, et al. v. Sunrun Inc., et al. , Case No. CIV 538304, was filed in the Superior Court of California, County of San Mateo, against the Company, certain of the Company’s directors and officers, and the underwriters of the Company’s initial public offering. The complaint generally alleges that the defendants violated Sections 11, 12 and 15 of the Securities Act by making false or misleading statements in connection with an August 5, 2015 initial public offering regarding the Company’s business practices and its dependence on complex financial instruments. The Cohen plaintiffs seek to represent the same class and seek similar relief as the plaintiffs in the Pytel, Nunez, and Baker actions. On September 26, 2016, the Baker, Cohen, Nunez, and Pytel actions were consolidated (such consolidated action referred to as the "state court litigation"). On December 27, 2017, the court granted Plaintiffs’ motion for class certification. Following a mediation on May 4, 2018, the parties entered into an agreement in principle to settle all claims asserted in the state court litigation against all defendants. The aggregate amount of the proposed settlement is $32.0 million , $30.1 million of which will be funded by the Company’s insurers and the remaining $1.9 million of which was accrued as of June 30, 2018. The Company and all defendants have denied, and continue to deny, the claims alleged in the state court litigation and the settlement does not reflect any admission of fault, wrongdoing or liability as to any defendant. On September 14, 2018, the court granted preliminary approval of the settlement. The settlement is subject to definitive documentation, shareholder notice and final court approval. On May 3, 2017, a purported shareholder class action captioned Fink, et al. v. Sunrun Inc., et al. , Case No. 3:17-cv-02537, was filed in the United States District Court, Northern District of California, against the Company and certain of the Company’s directors and officers. The complaint generally alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and Securities and Exchange Commission Rule 10b-5, by making false or misleading statements in connection with public filings made between September 15, 2015 and March 8, 2017 regarding the number of customers who canceled contracts after signing up for the Company’s home-solar energy system. The plaintiff seeks compensatory damages, including interest, attorney's fees, and costs, on behalf of all persons other than the defendants who purchased the Company's securities between September 16, 2015 and May 2, 2017. On May 4, 2017, a purported shareholder class action captioned Hall, et al. v. Sunrun Inc., et al. , Case No. 3:17-cv-02571, was filed in the United States District Court, Northern District of California. On May 18, 2017, a purported shareholder class action captioned Sanogo, et al. v. Sunrun Inc., et al. , Case No. 3:17-cv-02865, was filed in the United States District Court, Northern California District of California. The Hall and Sanogo complaints are substantially similar to the Fink complaint, and seeks similar relief against similar defendants on behalf of a substantially similar class. On August 23, 2017, the Fink , Hall , and Sanogo actions were consolidated, and on September 25, 2017, plaintiffs filed a consolidated amended complaint which alleges the same underlying violations as the original Fink , Hall and Sanogo complaints (such consolidated action referred to as the "federal court litigation"). On April 5, 2018, the court granted the Company’s motion to dismiss without prejudice. Plaintiffs filed a second amended complaint on May 3, 2018. On July 19, 2018, the court again granted defendants' motion to dismiss without prejudice. On August 8, 2018, the Company reached an agreement in principal with plaintiffs to settle all claims asserted in the federal court litigation against all defendants for $2.5 million , all of which will be funded by the Company's insurers. The Company and all defendants have denied, and continue to deny, the claims alleged in the federal court litigation and the settlement does not reflect any admission of fault, wrongdoing or liability as to any defendant. The settlement is subject to definitive documentation, shareholder notice and court approval. On June 29, 2017, a shareholder derivative complaint captioned Barbara Sue Sklar Living Trust v. Sunrun Inc. et al. , was filed in the United States District Court, Northern District of California, against the Company and certain of the Company’s directors and officers. The complaint generally alleges that the defendants violated Section 14(a) of the Exchange Act by making false or misleading statements in connection with public filings, including proxy statements, made between September 10, 2015 and May 3, 2017 regarding the number of customers who cancelled contracts after signing up for the Company’s home solar energy system. The Plaintiff seeks, among other things, damages in favor of the Company, certain corporate actions to purportedly improve the Company’s corporate governance, and an award of costs and expenses to the putative plaintiff stockholder, including attorneys’ fees. The Company believes that the claims are without merit and intends to defend itself vigorously. The case has been stayed pending the outcome of the federal court litigation matter described above. On April 5, 2018, a stockholder derivative complaint captioned Leonard Olsen v. Sunrun Inc. et al. , was filed in the United States District Court, District of Delaware, against the Company and certain of the Company’s directors and officers. The complaint generally alleges that the individual defendants breached their fiduciary duties and violated Section 14(a) of the Exchange Act by making false or misleading statements in connection with public filings, including proxy statements, made between September 16, 2015 and May 21, 2017 regarding the number of customers who canceled contracts after signing up for the Company's home-solar energy system. The Plaintiff seeks, among other things, damages in favor of the Company, equitable relief, and an award of costs and expenses to the putative plaintiff stockholder, including attorneys’ fees. The Company believes that the claims are without merit and intends to defend itself vigorously. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of the Company’s basic and diluted net income per share are as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Net income (loss) attributable to common stockholders $ (2,896 ) $ 28,007 $ 32,545 $ 56,235 Denominator: Weighted average shares used to compute net income per share attributable to common stockholders, basic 111,134 105,783 109,351 105,060 Weighted average effect of potentially dilutive shares to purchase common stock 9,262 3,815 6,701 2,833 Weighted average shares used to compute net income per share attributable to common stockholders, diluted 120,396 109,598 116,052 107,893 Net income (loss) per share attributable to common stockholders Basic $ (0.03 ) $ 0.26 $ 0.30 $ 0.54 Diluted $ (0.02 ) $ 0.26 $ 0.28 $ 0.52 The following shares were excluded from the computation of diluted net income per share as the impact of including those shares would be anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Warrants — 1,251 834 1,251 Outstanding stock options 527 9,346 4,211 12,257 Unvested restricted stock units 240 787 784 1,099 Total 767 11,384 5,829 14,607 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2017 . The Company has restated certain prior period amounts to conform to the current period presentation as described in the Recently Issued and Adopted Accounting Standards section below. The results of the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2018 or other future periods. The consolidated financial statements reflect the accounts and operations of the Company and those of its subsidiaries, including Funds, in which the Company has a controlling financial interest. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as variable interest entities (“VIEs”), through arrangements that do not involve controlling voting interests. In accordance with the provisions of Financial Accounting Standards Board (“FASB”), Accounting Standards Codification Topic 810 (“Topic 810”) Consolidation , the Company consolidates any VIE of which it is the primary beneficiary. The primary beneficiary, as defined in Topic 810, is the party that has (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb the losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company evaluates its relationships with its VIEs on an ongoing basis to determine whether it continues to be the primary beneficiary. The consolidated financial statements reflect the assets and liabilities of VIEs that are consolidated. All intercompany transactions and balances have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to current period presentation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company regularly makes significant estimates and assumptions, including, but not limited to, for revenue recognition, constraints which result in variable consideration, the discount rate used to adjust the promised amount of consideration for the effects of a significant financing component, the estimates that affect the collectability of accounts receivable, the valuation of inventories, the useful lives of solar energy systems, the useful lives of property and equipment, the valuation and useful lives of intangible assets, the effective interest rate used to amortize pass-through financing obligations, the discount rate used for operating and finance leases, the valuation of stock-based compensation, the determination of valuation allowances associated with deferred tax assets, the fair value of debt instruments disclosed and the redemption value of redeemable noncontrolling interests. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. Actual results may differ from such estimates. |
Segment Information | Segment Information The Company has one operating segment with one business activity, providing solar energy services and products to customers. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information presented on a consolidated basis. Revenue from external customers (including, but not limited to homeowners) for each group of similar products and services is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Customer agreements $ 70,864 $ 55,134 $ 199,171 $ 152,679 Incentives 43,708 6,583 73,996 16,239 Customer agreements and incentives 114,572 61,717 273,167 168,918 Solar energy systems 47,771 30,734 122,503 79,431 Products 42,617 52,095 124,191 131,928 Solar energy systems and product sales 90,388 82,829 246,694 211,359 Total revenue $ 204,960 $ 144,546 $ 519,861 $ 380,277 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company defines fair value as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses valuation approaches to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. The FASB establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: • Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; • Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities 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 related assets or liabilities; and • Level 3—Inputs that are unobservable, significant to the measurement of the fair value of the assets or liabilities and are supported by little or no market data. |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards Accounting standards adopted January 1, 2018 causing restatement of prior periods: In May 2014, the FASB issued Topic 606. The standard establishes a single revenue recognition model for all contracts with customers, eliminates industry specific requirements, and expands disclosure requirements. The Company adopted Topic 606 effective January 1, 2018, using the full retrospective method, which required the Company to restate each prior reporting period presented. The Company has elected to use the practical expedient under Topic 606 and has excluded disclosures of transaction prices allocated to remaining performance obligations and when the Company expects to recognize such revenue for all periods prior to the date of initial application. In February 2016, the FASB issued ASU No. 2016-02, Leases , to replace existing lease guidance with Accounting Standards Codification Topic 842 ("Topic 842"). Topic 842 changes how the definition of a lease is applied and judgment may be required in applying the definition of a lease to certain arrangements. The Company elected to early adopt the standard effective January 1, 2018 concurrent with the adoption of Topic 606 related to revenue recognition, using the modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements, which required the Company to restate each prior reporting period presented. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , to clarify how to apply certain aspects of the new leases standard. The clarifications address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. These amendments have the same effective date and transition requirements as the new leases standard, as such the Company adopted the new ASU and the impact of adopting this standard was not material to its financial statements. Upon the adoption of Topic 842, the Company's Customer Agreements are accounted for under Topic 606 due to changes in the definition of a lease under Topic 842 when the Company was considered a lessor. For operating leases in which the Company is the lessee, the Company concluded that all existing operating leases under Accounting Standards Codification Topic 840 ("Topic 840"), Leases , continue to be classified as operating leases under Topic 842, and all existing capital leases under Topic 840 are classified as finance leases under Topic 842. The Company has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. The Company accounts for short-term leases on a straight-line basis over the lease term. Under Topic 606, total consideration for Customer Agreements, including price escalators and performance guarantees, is estimated and recognized over the term of the Customer Agreement. This accounting for price escalators creates an unbilled receivable balance for the first half of the Customer Agreement, which is then reduced over the second half. Customer Agreements and SRECs with a prepaid element are deemed to include a significant financing component, as defined under Topic 606, which increases both revenue and interest expense. For pass-through financing obligation funds that report investment tax credit revenue, the ITC revenue is now recognized in full at PTO. SREC revenue is estimated net of any variable consideration related to possible liquidated damages, and recognized upon delivery of SRECs to the counterparty. The accounting did not materially differ for revenue currently recognized as solar energy systems and product sales. The adoption of Topic 606 also resulted in an adjustment to the Company's deferred tax liabilities, and impacted the analysis of the realizability of deferred tax assets, resulting in the release of valuation allowance related to state deferred tax assets. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows ("Topic 230"), Restricted Cash, which requires a statement of cash flows to present the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents. The Company adopted Topic 230 effective January 1, 2018, using the retrospective transition method, which required the Company to restate each prior reporting period presented. As a result, the Company no longer presents transfers between cash and restricted cash in the consolidated cash flow statements. Adjustments to Previously Reported Financial Statements from the Adoption of Accounting Standards The primary impact of adopting Topic 606 and Topic 842 includes the recognition of revenue from Customer Agreements, and certain incentives revenue, namely SRECs and ITCs. Previously, under Topic 840, the Company recognized revenue related to certain Customer Agreements as contingent revenue when earned. Under Topic 606, because the Company has a continuous obligation to provide fully functional systems that provide electricity over the term of the Customer Agreement, it recognizes revenue evenly over the term of the Customer Agreements taking into account price escalators and performance guarantees when estimating variable consideration. Previously, the Company recognized revenue related to the sale of SRECs to the extent the cumulative value of delivered SRECs per contract exceeded any possible liquidated damages for non-delivery, if any. Under Topic 606, the Company estimates revenue net of any variable consideration related to possible liquidated damages, and recognizes revenue upon delivery of SRECs to the counterparty. Under Topic 605 and Topic 840, the Company previously reported ITC revenue over five years: following when the related solar system was granted PTO, with one-fifth of the monetized ITCs recognized on each anniversary of the solar energy systems' PTO date. Under Topic 606, the Company recognizes ITC revenue in full at PTO. Previously, under Topic 840, the Company capitalized direct and incremental costs as a component of Solar energy systems, net on the consolidated balance sheets. Under Topic 606, the Company capitalizes incremental costs incurred to obtain a contract in Other Assets in the consolidated balance sheets. These amounts are amortized on a straight-line basis over the term of the Customer Agreements, and are included in Sales and marketing in the consolidated statements of operations. In addition to the impact of revenue recognition related to Customer Agreements, the impact of adopting Topic 842 includes a change in accounting for leases when the Company is the lessee, primarily the inclusion of right-of use ("ROU") assets included in other assets on the consolidated balance sheets, and operating lease liabilities included in accrued expenses and other liabilities and other liabilities on the consolidated balance sheets. The income tax impact as a result of the adoption of Topic 842 was immaterial. The following table presents the effect of the adoption of Topic 606 and Topic 842 on the Company's condensed consolidated balance sheet as of December 31, 2017 (in thousands): December 31, 2017 Previously Reported Adoption Impact Restated Accounts receivable, net of allowances for doubtful accounts $ 76,198 $ (15,839 ) $ 60,359 Solar energy systems, net 3,319,708 (158,138 ) 3,161,570 Other assets 37,225 209,239 246,464 Accrued expenses and other liabilities 85,639 11,591 97,230 Deferred revenue, current portion 77,310 (34,701 ) 42,609 Deferred grants, current portion 8,269 (76 ) 8,193 Pass-through financing obligation, current portion 6,087 (700 ) 5,387 Deferred revenue, net of current portion 584,427 (62,184 ) 522,243 Deferred grants, net of current portion 228,603 (1,084 ) 227,519 Pass-through financing obligation, net of current portion 138,124 (5,301 ) 132,823 Other liabilities 13,520 29,223 42,743 Deferred tax liabilities 59,131 23,988 83,119 Redeemable noncontrolling interests 123,737 64 123,801 Additional paid-in capital 684,141 (1,191 ) 682,950 Retained earnings 131,959 70,775 202,734 Noncontrolling interests 354,076 4,858 358,934 The following table presents the effect of the adoption of Topic 606 and Topic 842 on the Company's condensed consolidated statement of operations for the three and nine months ended September 30, 2017 (in thousands except per share amounts): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Previously Reported Adoption Impact Restated Previously Reported Adoption Impact Restated Revenue: Customer agreements and incentives $ 58,462 $ 3,255 $ 61,717 $ 171,897 $ (2,979 ) $ 168,918 Cost of customer agreements and incentives 49,232 (1,933 ) 47,299 140,682 (5,481 ) 135,201 Sales and marketing 37,298 2,623 39,921 101,758 6,351 108,109 General and administrative 27,925 — 27,925 77,776 (15 ) 77,761 Interest expense, net 17,707 5,510 23,217 49,586 16,160 65,746 Income tax expense 14,834 (317 ) 14,517 37,625 (6,927 ) 30,698 Net loss (80,187 ) (2,628 ) (82,815 ) (218,513 ) (13,067 ) (231,580 ) Net loss attributable to noncontrolling interests and redeemable noncontrolling interests (107,969 ) (2,853 ) (110,822 ) (284,144 ) (3,671 ) (287,815 ) Net income available to common stockholders 27,782 225 28,007 65,631 (9,396 ) 56,235 Basic net income per share available to common stockholders 0.26 — 0.26 0.62 (0.08 ) 0.54 Diluted net income per share available to common stockholders 0.25 0.01 0.26 0.61 (0.09 ) 0.52 The following table presents the effect of the adoption of Topic 230, Topic 606 and Topic 842 on the Company's condensed consolidated statement of cash flows for the nine months ended September 30, 2017 (in thousands): Nine Months Ended September 30, 2017 Previously Reported Adoption Impact Restated Net loss $ (218,513 ) $ (13,067 ) $ (231,580 ) Net cash used in operating activities (39,166 ) (24,864 ) (64,030 ) Net cash used in investing activities (589,144 ) 24,795 (564,349 ) Net cash provided by financing activities 638,088 2,058 640,146 Net change in cash and restricted cash (1) 9,778 1,989 11,767 Cash and restricted cash, beginning of period (1) 206,364 17,999 224,363 Cash and restricted cash, end of period (1) 216,142 19,988 236,130 (1) Pursuant to Topic 230, restricted cash is included in the restated balances in the statement of cash flows, as described above. The amounts in the previously reported column include only cash. Accounting standards to be adopted: In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments , which replaces the current incurred loss impairment methodology with a current expected credit losses model. The amendment applies to entities which hold financial assets and net investment in leases that are not accounted for at fair value through net income as well as loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. Adoption of this ASU is applied using a modified retrospective approach, with certain aspects requiring a prospective approach. The Company is currently evaluating this guidance and the impact it may have on the Company’s consolidated financial statements. In August 2017, the FASB issued 2017-12, Derivatives and Hedging, Targeted Improvements to Accounting for Hedging Activities, which expands an entity's ability to hedge nonfinancial and financial risk components, eliminates the requirement to separately measure and report hedge ineffectiveness, and aligned the recognition and presentation of the effects of hedging instruments in the financial statements. The ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. Adoption of this ASU is applied using a modified retrospective approach. The Company is currently evaluating this guidance and the impact it may have on the Company's consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting , which is intended to align the accounting for share-based payment awards issued to employees and nonemployees, however, this amendment does not apply to instruments issued in a financing transaction nor to equity instruments granted to a customer under a contract in the scope of Topic 606. Currently, performance conditions are recognized once the performance conditions are met. Under this new amendment, equity-classified nonemployee share-based payments will be measured at the grant-date fair value and will be recognized based on the probable outcome of the performance conditions. This ASU is effective for fiscal periods beginning after December 15, 2018. The Company is currently evaluating this guidance and the impact it may have on the Company's consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements . This amendment makes changes to a variety of topics to clarify, correct errors in, or make minor improvements to the Accounting Standards Codification. The majority of the amendments in ASU 2018-09 are effective for periods beginning after December 15, 2018. The Company is currently evaluating this guidance and the impact it may have on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements as part of its disclosure framework project. Under this amendment, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. However, for Level 3 fair value measurements, disclosures around the range and weighted average used to develop significant unobservable inputs will be required. This ASU is effective for fiscal periods beginning after December 15, 2019. The Company is currently evaluating this guidance and the impact it may have on the Company's consolidated financial statements and disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Topic 350, Intangibles- Goodwill and Other , to determine which implementation costs to capitalize as assets or expense as incurred. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. The Company is currently evaluating this guidance and the impact it may have on the Company's consolidated financial statements. In August 2018, the Securities and Exchange Commission adopted a Disclosure Update and Simplification release, which outlines Regulation S-X amendments to eliminate outdated or duplicative disclosure requirements. The final rule also amends the interim financial statement requirements to require a reconciliation of changes in stockholders’ equity in the notes or as a separate statement. These amendments are effective for all filings made 30 days after the amendments are published in the Federal Register, which was on October 4, 2018. The SEC announced that it would not object if the first presentation of the changes in stockholders’ equity for a calendar year end filer were made in the Company’s March 31, 2019 Form 10-Q. The Company plans to use the new presentation beginning in 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of revenue from external customers | Revenue from external customers (including, but not limited to homeowners) for each group of similar products and services is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Customer agreements $ 70,864 $ 55,134 $ 199,171 $ 152,679 Incentives 43,708 6,583 73,996 16,239 Customer agreements and incentives 114,572 61,717 273,167 168,918 Solar energy systems 47,771 30,734 122,503 79,431 Products 42,617 52,095 124,191 131,928 Solar energy systems and product sales 90,388 82,829 246,694 211,359 Total revenue $ 204,960 $ 144,546 $ 519,861 $ 380,277 |
Cash and restricted cash | Cash and restricted cash consists of the following (in thousands): September 30, 2018 December 31, 2017 Cash $ 242,936 $ 202,525 Restricted cash, current and long-term 32,197 39,265 Total $ 275,133 $ 241,790 |
Accounts receivable, net | Accounts receivable, net consists of the following (in thousands): September 30, 2018 December 31, 2017 Customer receivables $ 63,150 $ 59,263 Other receivables 1,128 1,319 Rebates receivable 3,445 1,442 Allowance for doubtful accounts (2,369 ) (1,665 ) Total $ 65,354 $ 60,359 |
Deferred revenue | The opening balance of deferred revenue was $525.4 million as of December 31, 2016 . Deferred revenue consists of the following (in thousands): September 30, 2018 December 31, 2017 Under Customer Agreements: Payments received $ 535,045 $ 517,544 Financing component balance 35,979 30,736 571,024 548,280 Under SREC contracts: Payments received 13,494 14,805 Financing component balance 1,916 1,767 15,410 16,572 Total $ 586,434 $ 564,852 |
Adoption of new accounting pronouncement | The following table presents the effect of the adoption of Topic 606 and Topic 842 on the Company's condensed consolidated balance sheet as of December 31, 2017 (in thousands): December 31, 2017 Previously Reported Adoption Impact Restated Accounts receivable, net of allowances for doubtful accounts $ 76,198 $ (15,839 ) $ 60,359 Solar energy systems, net 3,319,708 (158,138 ) 3,161,570 Other assets 37,225 209,239 246,464 Accrued expenses and other liabilities 85,639 11,591 97,230 Deferred revenue, current portion 77,310 (34,701 ) 42,609 Deferred grants, current portion 8,269 (76 ) 8,193 Pass-through financing obligation, current portion 6,087 (700 ) 5,387 Deferred revenue, net of current portion 584,427 (62,184 ) 522,243 Deferred grants, net of current portion 228,603 (1,084 ) 227,519 Pass-through financing obligation, net of current portion 138,124 (5,301 ) 132,823 Other liabilities 13,520 29,223 42,743 Deferred tax liabilities 59,131 23,988 83,119 Redeemable noncontrolling interests 123,737 64 123,801 Additional paid-in capital 684,141 (1,191 ) 682,950 Retained earnings 131,959 70,775 202,734 Noncontrolling interests 354,076 4,858 358,934 The following table presents the effect of the adoption of Topic 606 and Topic 842 on the Company's condensed consolidated statement of operations for the three and nine months ended September 30, 2017 (in thousands except per share amounts): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Previously Reported Adoption Impact Restated Previously Reported Adoption Impact Restated Revenue: Customer agreements and incentives $ 58,462 $ 3,255 $ 61,717 $ 171,897 $ (2,979 ) $ 168,918 Cost of customer agreements and incentives 49,232 (1,933 ) 47,299 140,682 (5,481 ) 135,201 Sales and marketing 37,298 2,623 39,921 101,758 6,351 108,109 General and administrative 27,925 — 27,925 77,776 (15 ) 77,761 Interest expense, net 17,707 5,510 23,217 49,586 16,160 65,746 Income tax expense 14,834 (317 ) 14,517 37,625 (6,927 ) 30,698 Net loss (80,187 ) (2,628 ) (82,815 ) (218,513 ) (13,067 ) (231,580 ) Net loss attributable to noncontrolling interests and redeemable noncontrolling interests (107,969 ) (2,853 ) (110,822 ) (284,144 ) (3,671 ) (287,815 ) Net income available to common stockholders 27,782 225 28,007 65,631 (9,396 ) 56,235 Basic net income per share available to common stockholders 0.26 — 0.26 0.62 (0.08 ) 0.54 Diluted net income per share available to common stockholders 0.25 0.01 0.26 0.61 (0.09 ) 0.52 The following table presents the effect of the adoption of Topic 230, Topic 606 and Topic 842 on the Company's condensed consolidated statement of cash flows for the nine months ended September 30, 2017 (in thousands): Nine Months Ended September 30, 2017 Previously Reported Adoption Impact Restated Net loss $ (218,513 ) $ (13,067 ) $ (231,580 ) Net cash used in operating activities (39,166 ) (24,864 ) (64,030 ) Net cash used in investing activities (589,144 ) 24,795 (564,349 ) Net cash provided by financing activities 638,088 2,058 640,146 Net change in cash and restricted cash (1) 9,778 1,989 11,767 Cash and restricted cash, beginning of period (1) 206,364 17,999 224,363 Cash and restricted cash, end of period (1) 216,142 19,988 236,130 (1) Pursuant to Topic 230, restricted cash is included in the restated balances in the statement of cash flows, as described above. The amounts in the previously reported column include only cash. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying values and fair values of debt instruments | The carrying values and fair values of debt instruments are as follows (in thousands): September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Bank line of credit $ 247,000 $ 247,000 $ 247,000 $ 247,000 Senior debt 1,067,947 1,067,529 808,455 807,698 Subordinated debt 157,943 156,257 111,488 111,095 Securitization debt 91,708 89,005 95,821 96,999 SREC Loans — — 32,181 32,181 Total $ 1,564,598 $ 1,559,791 $ 1,294,945 $ 1,294,973 |
Schedule of fair value, financial instruments measured on recurring basis | At September 30, 2018 and December 31, 2017 , financial instruments measured at fair value on a recurring basis, based upon the fair value hierarchy are as follows (in thousands): September 30, 2018 Level 1 Level 2 Level 3 Total Derivative assets: Interest rate swaps $ — $ 27,567 $ — $ 27,567 Total $ — $ 27,567 $ — $ 27,567 Derivative liabilities: Interest rate swaps $ — $ 55 $ — $ 55 Total $ — $ 55 $ — $ 55 December 31, 2017 Level 1 Level 2 Level 3 Total Derivative assets: Interest rate swaps $ — $ 1,917 $ — $ 1,917 Total $ — $ 1,917 $ — $ 1,917 Derivative liabilities: Interest rate swaps $ — $ 8,568 $ — $ 8,568 Total $ — $ 8,568 $ — $ 8,568 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following (in thousands): September 30, 2018 December 31, 2017 Raw materials $ 84,726 $ 87,927 Work-in-process 11,252 6,500 Total $ 95,978 $ 94,427 |
Solar Energy Systems, net (Tabl
Solar Energy Systems, net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Solar Energy Systems Disclosure [Abstract] | |
Solar energy systems, net | Solar energy systems, net consists of the following (in thousands): September 30, 2018 December 31, 2017 Solar energy system equipment costs $ 3,622,735 $ 3,124,407 Inverters 374,035 317,390 Total solar energy systems 3,996,770 3,441,797 Less: accumulated depreciation and amortization (498,797 ) (399,280 ) Add: construction-in-progress 120,152 119,053 Total solar energy systems, net $ 3,618,125 $ 3,161,570 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Other assets consist of the following (in thousands): September 30, 2018 December 31, 2017 Costs to obtain contracts $ 200,758 $ 157,970 Accumulated amortization of costs to obtain contracts (22,571 ) (16,485 ) Unbilled receivables 72,290 51,710 Operating lease right-of-use assets 20,577 25,465 Other assets 65,651 27,804 Total $ 336,705 $ 246,464 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other liabilities | Accrued expenses and other liabilities consist of the following (in thousands): September 30, 2018 December 31, 2017 Accrued employee compensation $ 30,623 $ 30,298 Operating lease obligations 8,288 9,202 Accrued interest 7,889 6,054 Accrued professional fees 9,643 5,837 Other accrued expenses 29,454 45,839 Total $ 85,897 $ 97,230 |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | As of September 30, 2018 , debt consisted of the following (in thousands, except percentages): Carrying Values, net of debt discount Unused Borrowing Capacity Interest Rate (1) Maturity Date Current Long Term Total Recourse debt: Bank line of credit $ — $ 247,000 $ 247,000 $ 406 5.33% - 5.54% April 2020 Total recourse debt $ — $ 247,000 $ 247,000 $ 406 Non-recourse debt: Senior 18,693 1,049,254 1,067,947 — 4.33% - 5.39% September 2020 - October 2024 Subordinated 4,641 153,302 157,943 — 7.03% - 7.84% September 2020 - October 2024 Securitization Class A 3,703 78,241 81,944 — 4.40 % July 2024 Securitization Class B 459 9,305 9,764 — 5.38 % July 2024 Total non-recourse debt $ 27,496 $ 1,290,102 $ 1,317,598 $ — Total debt $ 27,496 $ 1,537,102 $ 1,564,598 $ 406 (1) Reflects contractual, unhedged rates. See Note 9 , Derivatives for hedge rates. As of December 31, 2017 , debt consisted of the following (in thousands, except percentages): Carrying Values, net of debt discount Unused Borrowing Capacity Interest Rate Maturity Date Current Long Term Total Recourse debt: Bank line of credit $ — $ 247,000 $ 247,000 $ 406 4.58% - 4.87% April 2018 Total recourse debt $ — $ 247,000 $ 247,000 $ 406 Non-recourse debt: Senior 3,561 804,894 808,455 12,758 3.63% - 4.69% September 2020 - October 2024 Subordinated 4,301 107,187 111,488 27 6.36% - 7.13% September 2020 - October 2024 Securitization Class A 3,534 82,203 85,737 — 4.40 % July 2024 Securitization Class B 440 9,644 10,084 — 5.38 % July 2024 SREC Loans 9,693 22,488 32,181 — 7.28 % July 2021 Total non-recourse debt $ 21,529 $ 1,026,416 $ 1,047,945 $ 12,785 Total debt $ 21,529 $ 1,273,416 $ 1,294,945 $ 13,191 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of derivative instruments | At September 30, 2018 , the Company had the following derivative instruments (dollars in thousands): Type Quantity Effective Dates Maturity Dates Hedge Interest Rates Notional Amount Adjusted Net Fair Market Value Interest rate swap 1 5/21/2018 9/20/2020 2.69% $ 109,305 $ 228 Interest rate swaps 2 4/29/2016 - 12/30/2016 8/31/2022 - 9/30/2022 1.27%- 2.37% $ 24,952 $ 897 Interest rate swaps 10 7/31/2017 - 1/31/2019 4/30/2024 - 10/31/2024 2.16%- 2.69% $ 347,687 $ 11,797 Interest rate swaps 3 4/30/2021 10/30/2026 - 10/31/2026 2.89% - 3.08% $ 102,720 $ 383 Interest rate swap 1 9/20/2020 6/20/2030 2.57% $ 67,013 $ 1,374 Interest rate swap 1 9/30/2022 9/30/2031 3.23% $ 8,642 $ (44 ) Interest rate swap 1 9/20/2020 4/20/2032 2.60% $ 33,409 $ 775 Interest rate swaps 5 1/31/2019 - 10/31/2024 7/31/2034 2.48% - 3.04% $ 144,379 $ 4,562 Interest rate swaps 5 7/31/2017 - 4/30/2024 7/31/2035 2.56% - 2.95% $ 151,869 $ 3,330 Interest rate swaps 5 1/31/2018 - 10/18/2024 10/31/2036 2.62% - 2.95% $ 183,671 $ 3,802 Interest rate swaps 3 10/30/2026 - 10/31/2026 1/31/2038 3.01% - 3.16% $ 101,135 $ 408 |
VIE Arrangements (Tables)
VIE Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entity Disclosure [Abstract] | |
Carrying amounts and classification of the VIEs' assets and liabilities included in the consolidated balance sheets | The carrying amounts and classification of the VIEs’ assets and liabilities included in the consolidated balance sheets are as follows (in thousands): September 30, 2018 December 31, 2017 Assets Current assets Cash $ 106,492 $ 118,352 Restricted cash 4,944 2,699 Accounts receivable, net 19,123 18,786 Prepaid expenses and other current assets 387 917 Total current assets 130,946 140,754 Solar energy systems, net 2,587,296 2,385,329 Other assets 65,155 42,295 Total assets $ 2,783,397 $ 2,568,378 Liabilities Current liabilities Accounts payable $ 8,442 $ 15,929 Distributions payable to noncontrolling interests and redeemable noncontrolling interests 15,337 13,526 Accrued expenses and other liabilities 6,568 5,200 Deferred revenue, current portion 28,034 28,695 Deferred grants, current portion 1,016 1,021 Non-recourse debt, current portion 2,755 11,179 Total current liabilities 62,152 75,550 Deferred revenue, net of current portion 360,936 381,066 Deferred grants, net of current portion 28,489 29,385 Non-recourse debt, net of current portion 192,539 190,106 Other liabilities 8,790 1,848 Total liabilities $ 652,906 $ 677,955 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests and Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of changes in redeemable noncontrolling interest, total stockholders' equity and noncontrolling interests | As of September 30, 2017 , the changes in redeemable noncontrolling interests, total stockholders’ equity and noncontrolling interests were as follows (in thousands): Redeemable Noncontrolling Interests Total Stockholders' Equity Noncontrolling Interests Total Equity Balance — December 31, 2016 $ 140,996 $ 742,771 $ 252,957 $ 995,728 Cumulative effect of adoption of ASU 2016-16 and ASU 2016-09 — 2,996 — 2,996 Exercise of stock options — 1,573 — 1,573 Issuance of restricted stock units, net of tax withholdings — (2,925 ) — (2,925 ) Shares issued in connection with the Employee Stock Purchase Plan — 1,145 — 1,145 Stock based compensation — 16,530 — 16,530 Contributions from noncontrolling interests and redeemable noncontrolling interests 105,167 — 368,902 368,902 Distributions to noncontrolling interests and redeemable noncontrolling interests (11,794 ) — (31,098 ) (31,098 ) Net income (loss) (57,942 ) 56,235 (229,873 ) (173,638 ) Other comprehensive loss, net of taxes — (3,974 ) — (3,974 ) Balance — September 30, 2017 $ 176,427 $ 814,351 $ 360,888 $ 1,175,239 As of September 30, 2018 , the changes in redeemable noncontrolling interests, total stockholders’ equity and noncontrolling interests were as follows (in thousands): Redeemable Noncontrolling Interests Total Stockholders' Equity Noncontrolling Interests Total Equity Balance — December 31, 2017 $ 123,801 $ 881,582 $ 358,934 $ 1,240,516 Exercise of stock options — 13,860 — 13,860 Issuance of restricted stock units, net of tax withholdings — (7,910 ) — (7,910 ) Shares issued in connection with the Employee Stock Purchase Plan — 1,755 — 1,755 Stock based compensation — 21,991 — 21,991 Contributions from noncontrolling interests and redeemable noncontrolling interests 60,683 — 187,021 187,021 Distributions to noncontrolling interests and redeemable noncontrolling interests (8,168 ) — (44,362 ) (44,362 ) Net income (loss) (58,848 ) 32,545 (184,368 ) (151,823 ) Other comprehensive loss, net of taxes — 22,969 — 22,969 Balance — September 30, 2018 $ 117,468 $ 966,792 $ 317,225 $ 1,284,017 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock option activity | The following table summarizes the activity for all stock options under all of the Company’s equity incentive plans for the nine months ended September 30, 2018 (shares and aggregate intrinsic value in thousands): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2017 16,268 $ 5.70 7.41 $ 14,832 Granted 1,469 8.48 Exercised (2,555 ) 5.40 Cancelled / forfeited (834 ) 6.56 Outstanding at September 30, 2018 14,348 $ 5.98 6.81 $ 93,159 Options vested and exercisable at September 30, 2018 8,093 $ 5.53 5.56 $ 56,270 |
Summary of activity for all restricted stock units (RSUs) | The following table summarizes the activity for all restricted stock units (“RSUs”) under all of the Company’s equity incentive plans for the nine months ended September 30, 2018 (shares in thousands): Number of Awards Weighted Average Grant Date Fair Value Unvested balance at December 31, 2017 5,330 $ 5.82 Granted 1,909 8.54 Issued (1,451 ) 6.45 Cancelled / forfeited (1,170 ) 5.62 Unvested balance at September 30, 2018 4,618 $ 6.80 |
Summary of stock-based compensation expense | The Company recognized stock-based compensation expense, including ESPP expenses, in the consolidated statements of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cost of customer agreements and incentives $ 648 $ (69 ) $ 1,926 $ 1,792 Cost of solar energy systems and product sales 188 171 545 441 Sales and marketing 1,102 1,580 6,086 4,304 Research and development 313 259 918 594 General and administration 3,490 3,164 12,507 9,363 Total $ 5,741 $ 5,105 $ 21,982 $ 16,494 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease expense and other information related to leases | The components of lease expense were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Finance lease cost: Amortization of right-of-use assets $ 3,126 $ 2,706 $ 8,483 $ 8,302 Interest on lease liabilities 167 142 414 509 Operating lease cost 2,616 2,433 7,749 7,563 Short-term lease cost 228 145 583 388 Variable lease cost 947 630 2,454 1,953 Sublease income $ (156 ) $ (18 ) $ (381 ) $ (18 ) Total lease cost $ 6,928 $ 6,038 $ 19,302 $ 18,697 Other information related to leases was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,771 $ 2,509 $ 8,026 $ 7,481 Operating cash flows from finance leases 123 134 327 468 Financing cash flows from finance leases 2,357 2,369 6,529 7,735 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,322 1,589 1,414 5,455 Finance leases 4,997 72 9,139 174 Weighted average remaining lease term (years): Operating leases 3.51 4.08 3.51 4.08 Finance leases 2.59 2.20 2.59 2.20 Weighted average discount rate: Operating leases 4.2 % 4.0 % 4.2 % 4.0 % Finance leases 4.0 % 3.0 % 4.0 % 3.0 % |
Future minimum lease payments under non-cancellable leases | Future minimum lease payments under non-cancellable leases as of September 30, 2018 were as follows (in thousands): Operating Leases Finance Leases 2018 $ 9,000 $ 8,749 2019 5,984 4,131 2020 4,211 2,371 2021 2,734 1,107 2022 1,918 49 Thereafter 321 19 Total future lease payments 24,168 16,426 Less: Amount representing interest (1,623 ) (753 ) Present value of future payments 22,545 15,673 Less: Current portion (8,288 ) (8,372 ) Long-term portion $ 14,257 $ 7,301 |
Future minimum lease payments under non-cancellable leases | Future minimum lease payments under non-cancellable leases as of September 30, 2018 were as follows (in thousands): Operating Leases Finance Leases 2018 $ 9,000 $ 8,749 2019 5,984 4,131 2020 4,211 2,371 2021 2,734 1,107 2022 1,918 49 Thereafter 321 19 Total future lease payments 24,168 16,426 Less: Amount representing interest (1,623 ) (753 ) Present value of future payments 22,545 15,673 Less: Current portion (8,288 ) (8,372 ) Long-term portion $ 14,257 $ 7,301 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net income (loss) per share | The computation of the Company’s basic and diluted net income per share are as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Net income (loss) attributable to common stockholders $ (2,896 ) $ 28,007 $ 32,545 $ 56,235 Denominator: Weighted average shares used to compute net income per share attributable to common stockholders, basic 111,134 105,783 109,351 105,060 Weighted average effect of potentially dilutive shares to purchase common stock 9,262 3,815 6,701 2,833 Weighted average shares used to compute net income per share attributable to common stockholders, diluted 120,396 109,598 116,052 107,893 Net income (loss) per share attributable to common stockholders Basic $ (0.03 ) $ 0.26 $ 0.30 $ 0.54 Diluted $ (0.02 ) $ 0.26 $ 0.28 $ 0.52 |
Schedule of shares excluded from computation of diluted net income per share | The following shares were excluded from the computation of diluted net income per share as the impact of including those shares would be anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Warrants — 1,251 834 1,251 Outstanding stock options 527 9,346 4,211 12,257 Unvested restricted stock units 240 787 784 1,099 Total 767 11,384 5,829 14,607 |
Organization - Additional Infor
Organization - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018InvestmentFund | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Power purchase or lease agreement term | 20 years |
Number of types of investment funds used by the company | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018BusinessActivitySegment | |
Accounting Policies [Abstract] | |
Number of operating segments | Segment | 1 |
Number of business activities | BusinessActivity | 1 |
Customer agreement, initial term | 20 years |
Customer agreement, discount rate | 10.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Revenues from External Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Major Customer [Line Items] | ||||
Revenue | $ 204,960 | $ 144,546 | $ 519,861 | $ 380,277 |
Customer agreements and incentives | ||||
Revenue, Major Customer [Line Items] | ||||
Customer agreements and incentives | 114,572 | 61,717 | 273,167 | 168,918 |
Customer agreements | ||||
Revenue, Major Customer [Line Items] | ||||
Customer agreements and incentives | 70,864 | 55,134 | 199,171 | 152,679 |
Incentives | ||||
Revenue, Major Customer [Line Items] | ||||
Customer agreements and incentives | 43,708 | 6,583 | 73,996 | 16,239 |
Solar energy systems and product sales | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 90,388 | 82,829 | 246,694 | 211,359 |
Solar energy systems | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 47,771 | 30,734 | 122,503 | 79,431 |
Products | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | $ 42,617 | $ 52,095 | $ 124,191 | $ 131,928 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash | $ 242,936 | $ 202,525 | ||
Restricted cash, current and long-term | 32,197 | 39,265 | ||
Total Cash and Restricted Cash | $ 275,133 | $ 241,790 | $ 236,130 | $ 224,363 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Customer receivables | $ 63,150 | $ 59,263 |
Other receivables | 1,128 | 1,319 |
Rebates receivable | 3,445 | 1,442 |
Allowance for doubtful accounts | (2,369) | (1,665) |
Accounts receivable, net | $ 65,354 | $ 60,359 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Revenue Arrangement [Line Items] | ||||||
Power purchase or lease agreement term | 20 years | |||||
Deferred revenue | $ 586,434 | $ 586,434 | $ 564,852 | $ 525,400 | ||
Deferred revenue, revenue recognized | 13,300 | $ 12,100 | 39,100 | $ 35,100 | ||
Contracted but not yet recognized | 5,100,000 | $ 5,100,000 | ||||
Revenue expected to recognize over next twelve months, percent | 6.00% | |||||
Revenue recognized, term, existing deferred revenue | 20 years | |||||
Under Customer Agreements | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue | 571,024 | $ 571,024 | 548,280 | |||
Under Customer Agreements | Payments received | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue | 535,045 | 535,045 | 517,544 | |||
Under Customer Agreements | Financing component balance | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue | 35,979 | 35,979 | 30,736 | |||
Under SREC contracts | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue | 15,410 | 15,410 | 16,572 | |||
Under SREC contracts | Payments received | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue | 13,494 | 13,494 | 14,805 | |||
Under SREC contracts | Financing component balance | ||||||
Deferred Revenue Arrangement [Line Items] | ||||||
Deferred revenue | $ 1,916 | $ 1,916 | $ 1,767 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Adoption of Topic 606 and ASC 842, Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, net of allowances for doubtful accounts | $ 65,354 | $ 60,359 |
Solar energy systems, net | 3,618,125 | 3,161,570 |
Other assets | 336,705 | 246,464 |
Accrued expenses and other liabilities | 85,897 | 97,230 |
Deferred revenue, current portion | 46,571 | 42,609 |
Deferred grants, current portion | 8,719 | 8,193 |
Pass-through financing obligation, current portion | 55,355 | 5,387 |
Deferred revenue, net of current portion | 539,863 | 522,243 |
Deferred grants, net of current portion | 220,274 | 227,519 |
Pass-through financing obligation, net of current portion | 306,642 | 132,823 |
Other liabilities | 37,717 | 42,743 |
Deferred tax liabilities | 98,954 | 83,119 |
Redeemable noncontrolling interests | 117,468 | 123,801 |
Additional paid-in capital | 712,646 | 682,950 |
Retained earnings | 235,279 | 202,734 |
Noncontrolling interests | $ 317,225 | 358,934 |
Previously Reported | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, net of allowances for doubtful accounts | 76,198 | |
Solar energy systems, net | 3,319,708 | |
Other assets | 37,225 | |
Accrued expenses and other liabilities | 85,639 | |
Deferred revenue, current portion | 77,310 | |
Deferred grants, current portion | 8,269 | |
Pass-through financing obligation, current portion | 6,087 | |
Deferred revenue, net of current portion | 584,427 | |
Deferred grants, net of current portion | 228,603 | |
Pass-through financing obligation, net of current portion | 138,124 | |
Other liabilities | 13,520 | |
Deferred tax liabilities | 59,131 | |
Redeemable noncontrolling interests | 123,737 | |
Additional paid-in capital | 684,141 | |
Retained earnings | 131,959 | |
Noncontrolling interests | 354,076 | |
Adoption Impact | Accounting Standards Update 2014-09 and ASC 842 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, net of allowances for doubtful accounts | (15,839) | |
Solar energy systems, net | (158,138) | |
Other assets | 209,239 | |
Accrued expenses and other liabilities | 11,591 | |
Deferred revenue, current portion | (34,701) | |
Deferred grants, current portion | (76) | |
Pass-through financing obligation, current portion | (700) | |
Deferred revenue, net of current portion | (62,184) | |
Deferred grants, net of current portion | (1,084) | |
Pass-through financing obligation, net of current portion | (5,301) | |
Other liabilities | 29,223 | |
Deferred tax liabilities | 23,988 | |
Redeemable noncontrolling interests | 64 | |
Additional paid-in capital | (1,191) | |
Retained earnings | 70,775 | |
Noncontrolling interests | $ 4,858 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Adoption of Topic 606 and ASC 842, Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue: Customer agreements and incentives | $ 61,717 | $ 168,918 | ||
Cost of customer agreements and incentives | 47,299 | 135,201 | ||
Sales and marketing | $ 56,758 | 39,921 | $ 150,074 | 108,109 |
General and administrative | 26,720 | 27,925 | 87,743 | 77,761 |
Interest expense, net | 34,482 | 23,217 | 94,552 | 65,746 |
Income tax expense (benefit) | (5,988) | 14,517 | 6,593 | 30,698 |
Net loss | (47,524) | (82,815) | (210,671) | (231,580) |
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (44,628) | (110,822) | (243,216) | (287,815) |
Net income (loss) available to common stockholders | $ (2,896) | $ 28,007 | $ 32,545 | $ 56,235 |
Basic (in dollars per share) | $ (0.03) | $ 0.26 | $ 0.30 | $ 0.54 |
Diluted (in dollars per share) | $ (0.02) | $ 0.26 | $ 0.28 | $ 0.52 |
Previously Reported | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue: Customer agreements and incentives | $ 58,462 | $ 171,897 | ||
Cost of customer agreements and incentives | 49,232 | 140,682 | ||
Sales and marketing | 37,298 | 101,758 | ||
General and administrative | 27,925 | 77,776 | ||
Interest expense, net | 17,707 | 49,586 | ||
Income tax expense (benefit) | 14,834 | 37,625 | ||
Net loss | (80,187) | (218,513) | ||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (107,969) | (284,144) | ||
Net income (loss) available to common stockholders | $ 27,782 | $ 65,631 | ||
Basic (in dollars per share) | $ 0.26 | $ 0.62 | ||
Diluted (in dollars per share) | $ 0.25 | $ 0.61 | ||
Adoption Impact | Accounting Standards Update 2014-09 and ASC 842 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue: Customer agreements and incentives | $ 3,255 | $ (2,979) | ||
Cost of customer agreements and incentives | (1,933) | (5,481) | ||
Sales and marketing | 2,623 | 6,351 | ||
General and administrative | 0 | (15) | ||
Interest expense, net | 5,510 | 16,160 | ||
Income tax expense (benefit) | (317) | (6,927) | ||
Net loss | (2,628) | (13,067) | ||
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests | (2,853) | (3,671) | ||
Net income (loss) available to common stockholders | $ 225 | $ (9,396) | ||
Basic (in dollars per share) | $ 0 | $ (0.08) | ||
Diluted (in dollars per share) | $ 0.01 | $ (0.09) |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Adoption of Topic 606 and ASC 842, Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net loss | $ (47,524) | $ (82,815) | $ (210,671) | $ (231,580) |
Net cash used in operating activities | (64,030) | |||
Net cash used in investing activities | (564,349) | |||
Net cash provided by financing activities | 640,146 | |||
Net change in cash and restricted cash(1) | 33,343 | 11,767 | ||
Cash and restricted cash, beginning of period | 241,790 | 224,363 | ||
Cash and restricted cash, end of period | $ 275,133 | 236,130 | $ 275,133 | 236,130 |
Previously Reported | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net loss | (80,187) | (218,513) | ||
Net cash used in operating activities | (39,166) | |||
Net cash used in investing activities | (589,144) | |||
Net cash provided by financing activities | 638,088 | |||
Net change in cash and restricted cash(1) | 9,778 | |||
Cash and restricted cash, beginning of period | 206,364 | |||
Cash and restricted cash, end of period | 216,142 | 216,142 | ||
Adoption Impact | Accounting Standards Update 2014-09, Topic 230 and ASC 842 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net loss | (13,067) | |||
Net cash used in operating activities | (24,864) | |||
Net cash used in investing activities | 24,795 | |||
Net cash provided by financing activities | 2,058 | |||
Net change in cash and restricted cash(1) | 1,989 | |||
Cash and restricted cash, beginning of period | 17,999 | |||
Cash and restricted cash, end of period | $ 19,988 | $ 19,988 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Carrying Values and Fair Values of Debt Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | $ 1,564,598 | $ 1,294,945 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 1,559,791 | 1,294,973 |
Bank line of credit | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 247,000 | 247,000 |
Bank line of credit | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 247,000 | 247,000 |
Senior debt | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 1,067,947 | 808,455 |
Senior debt | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 1,067,529 | 807,698 |
Subordinated debt | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 157,943 | 111,488 |
Subordinated debt | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 156,257 | 111,095 |
Securitization debt | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 91,708 | 95,821 |
Securitization debt | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 89,005 | 96,999 |
SREC Loans | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 0 | 32,181 |
SREC Loans | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | $ 0 | $ 32,181 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Fair Value, Financial Instruments Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 27,567 | $ 1,917 |
Derivative liabilities | 55 | 8,568 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 27,567 | 1,917 |
Derivative liabilities | 55 | 8,568 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 27,567 | 1,917 |
Derivative liabilities | 55 | 8,568 |
Interest rate swaps | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest rate swaps | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 27,567 | 1,917 |
Derivative liabilities | 55 | 8,568 |
Interest rate swaps | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 84,726 | $ 87,927 |
Work-in-process | 11,252 | 6,500 |
Total | $ 95,978 | $ 94,427 |
Solar Energy Systems, net (Deta
Solar Energy Systems, net (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Solar energy systems | $ 3,996,770 | $ 3,441,797 |
Less: accumulated depreciation and amortization | (498,797) | (399,280) |
Add: construction-in-progress | 120,152 | 119,053 |
Total solar energy systems, net | 3,618,125 | 3,161,570 |
Solar energy system equipment costs | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Solar energy systems | 3,622,735 | 3,124,407 |
Inverters | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Solar energy systems | $ 374,035 | $ 317,390 |
Solar Energy Systems, net - Add
Solar Energy Systems, net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Solar Energy Systems Disclosure [Abstract] | ||||
Depreciation expense | $ 35.6 | $ 28.9 | $ 101.8 | $ 82.1 |
Amortization of deferred grants | $ 2 | $ 1.9 | $ 5.8 | $ 5.7 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Costs to obtain contracts | $ 200,758 | $ 200,758 | $ 157,970 | ||
Accumulated amortization of costs to obtain contracts | (22,571) | (22,571) | (16,485) | ||
Unbilled receivables | 72,290 | 72,290 | 51,710 | ||
Operating lease right-of-use assets | 20,577 | 20,577 | 25,465 | ||
Other assets | 65,651 | 65,651 | 27,804 | ||
Other assets, total | 336,705 | 336,705 | $ 246,464 | ||
Amortization cost | $ 2,200 | $ 1,700 | $ 6,200 | $ 4,700 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation | $ 30,623 | $ 30,298 |
Operating lease obligations | 8,288 | 9,202 |
Accrued interest | 7,889 | 6,054 |
Accrued professional fees | 9,643 | 5,837 |
Other accrued expenses | 29,454 | 45,839 |
Total | $ 85,897 | $ 97,230 |
Indebtedness - Schedule of Debt
Indebtedness - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long term debt, current | $ 27,496 | $ 21,529 |
Long term debt, noncurrent | 1,537,102 | 1,273,416 |
Long term debt | 1,564,598 | 1,294,945 |
Unused borrowing capacity | $ 406 | $ 13,191 |
Bank line of credit | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.33% | 4.58% |
Bank line of credit | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.54% | 4.87% |
Senior | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.33% | 3.63% |
Senior | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.39% | 4.69% |
Subordinated | ||
Debt Instrument [Line Items] | ||
Unused borrowing capacity | $ 0 | $ 27 |
Subordinated | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.03% | 6.36% |
Subordinated | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.84% | 7.13% |
Recourse debt | ||
Debt Instrument [Line Items] | ||
Long term debt, current | $ 0 | $ 0 |
Long term debt, noncurrent | 247,000 | 247,000 |
Long term debt | 247,000 | 247,000 |
Unused borrowing capacity | 406 | 406 |
Recourse debt | Bank line of credit | ||
Debt Instrument [Line Items] | ||
Long term debt, current | 0 | 0 |
Long term debt, noncurrent | 247,000 | 247,000 |
Long term debt | 247,000 | 247,000 |
Unused borrowing capacity | 406 | 406 |
Non-recourse debt | ||
Debt Instrument [Line Items] | ||
Long term debt, current | 27,496 | 21,529 |
Long term debt, noncurrent | 1,290,102 | 1,026,416 |
Long term debt | 1,317,598 | 1,047,945 |
Unused borrowing capacity | 0 | 12,785 |
Non-recourse debt | Senior | ||
Debt Instrument [Line Items] | ||
Long term debt, current | 18,693 | 3,561 |
Long term debt, noncurrent | 1,049,254 | 804,894 |
Long term debt | 1,067,947 | 808,455 |
Unused borrowing capacity | 0 | 12,758 |
Non-recourse debt | Subordinated | ||
Debt Instrument [Line Items] | ||
Long term debt, current | 4,641 | 4,301 |
Long term debt, noncurrent | 153,302 | 107,187 |
Long term debt | 157,943 | 111,488 |
Non-recourse debt | Securitization Class A | ||
Debt Instrument [Line Items] | ||
Long term debt, current | 3,703 | 3,534 |
Long term debt, noncurrent | 78,241 | 82,203 |
Long term debt | 81,944 | 85,737 |
Unused borrowing capacity | $ 0 | $ 0 |
Interest rate | 4.40% | 4.40% |
Non-recourse debt | Securitization Class B | ||
Debt Instrument [Line Items] | ||
Long term debt, current | $ 459 | $ 440 |
Long term debt, noncurrent | 9,305 | 9,644 |
Long term debt | 9,764 | 10,084 |
Unused borrowing capacity | $ 0 | $ 0 |
Interest rate | 5.38% | 5.38% |
Non-recourse debt | SREC Loans | ||
Debt Instrument [Line Items] | ||
Long term debt, current | $ 9,693 | |
Long term debt, noncurrent | 22,488 | |
Long term debt | 32,181 | |
Unused borrowing capacity | $ 0 | |
Interest rate | 7.28% |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Loan outstanding balance | $ 1,564,598,000 | $ 1,294,945,000 |
Recourse debt | ||
Debt Instrument [Line Items] | ||
Loan outstanding balance | 247,000,000 | 247,000,000 |
Non-recourse debt | ||
Debt Instrument [Line Items] | ||
Loan outstanding balance | 1,317,598,000 | 1,047,945,000 |
Non-recourse debt | Aggregation facility, March 2023 | ||
Debt Instrument [Line Items] | ||
Loan outstanding balance | 511,900,000 | |
Non-recourse debt | Line of credit | Aggregation facility, March 2023 | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 595,000,000 | |
Non-recourse debt | London Interbank Offered Rate (LIBOR) | Line of credit | Aggregation facility, March 2023 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Facility available period | 3 years | |
Debt instrument basis spread on variable rate, periodic increase | 2.75% | |
Revolving line of credit facility available period, period increase | 2 years | |
Bank line of credit | Recourse debt | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 250,000,000 | |
Minimum unencumbered liquid assets to be maintained | $ 30,000,000 | |
Interest coverage ratio | 300.00% | |
Loan outstanding balance | $ 247,000,000 | 247,000,000 |
Bank line of credit | Recourse debt | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.25% | |
Bank line of credit | Recourse debt | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Bank line of credit | Recourse debt | Federal Funds Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Bank line of credit | Recourse debt | LIBOR Floor Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Term Loan | Non-recourse debt | Minimum | Aggregation facility, March 2023 | ||
Debt Instrument [Line Items] | ||
Term loan prepayment penalty, percent | 0.00% | |
Term Loan | Non-recourse debt | Maximum | Aggregation facility, March 2023 | ||
Debt Instrument [Line Items] | ||
Term loan prepayment penalty, percent | 1.00% | |
Term Loan | Non-recourse debt | London Interbank Offered Rate (LIBOR) | Aggregation facility, March 2023 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 5.00% | |
Facility available period | 3 years | |
Debt instrument basis spread on variable rate, periodic increase | 6.50% | |
Term Loan Due in October 2024 | Non-recourse debt | Senior secured revolving letter of credit facility | Aggregation facility, October 2024 | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 303,000,000 | |
Loan outstanding balance | 285,700,000 | |
Term Loan Due in October 2024 | Non-recourse debt | Revolving debt | Aggregation facility, October 2024 | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | 10,000,000 | |
Term Loan Due in October 2024 | Non-recourse debt | Term Loan | Aggregation facility, October 2024 | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 293,000,000 | |
Term Loan A | Non-recourse debt | London Interbank Offered Rate (LIBOR) | Aggregation facility, October 2024 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.75% | |
Term Loan A | Non-recourse debt | Base Rate | Aggregation facility, October 2024 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Term Loan B | Non-recourse debt | Minimum | Aggregation facility, October 2024 | ||
Debt Instrument [Line Items] | ||
Term loan prepayment penalty, percent | 0.00% | |
Term Loan B | Non-recourse debt | Maximum | Aggregation facility, October 2024 | ||
Debt Instrument [Line Items] | ||
Term loan prepayment penalty, percent | 5.00% | |
Term Loan B, Class A | Non-recourse debt | London Interbank Offered Rate (LIBOR) | Aggregation facility, October 2024 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 7.03% | |
Term Loan B, Class B | Non-recourse debt | London Interbank Offered Rate (LIBOR) | Aggregation facility, October 2024 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 5.00% | |
Basis spread on Federal Funds Rate | 1.00% | |
Term Loan B, Class B | Non-recourse debt | Base Rate | Aggregation facility, October 2024 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4.00% | |
Basis spread on Federal Funds Rate | 0.50% | |
Term Loan Due in April 2024 | Non-recourse debt | Senior secured revolving letter of credit facility | Aggregation facility, April 2024 | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 202,000,000 | |
Loan outstanding balance | 188,300,000 | |
Term Loan Due in April 2024 | Non-recourse debt | Delayed draw term loan | Aggregation facility, April 2024 | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | 195,000,000 | |
Term Loan Due in April 2024 | Non-recourse debt | Revolving debt | Aggregation facility, April 2024 | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 7,000,000 | |
Term Loan Due in April 2024 | Non-recourse debt | London Interbank Offered Rate (LIBOR) | Aggregation facility, April 2024 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Facility available period | 4 years | |
Term Loan Due in April 2024 | Non-recourse debt | Base Rate | Aggregation facility, April 2024 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Term Loan Due in April 2024 | Non-recourse debt | Federal Funds Rate | Aggregation facility, April 2024 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Term Loan Due in April 2024 | Non-recourse debt | LIBOR Floor Rate | Aggregation facility, April 2024 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Senior debt | Non-recourse debt | ||
Debt Instrument [Line Items] | ||
Loan outstanding balance | $ 1,067,947,000 | 808,455,000 |
Senior debt | Non-recourse debt | London Interbank Offered Rate (LIBOR) | Revolving loan facility, September 2020 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.75% | |
Bank term loan due September 2020 | Non-recourse debt | Revolving loan facility, September 2020 | ||
Debt Instrument [Line Items] | ||
Loan outstanding balance | $ 189,600,000 | |
Subordinated debt | Non-recourse debt | ||
Debt Instrument [Line Items] | ||
Loan outstanding balance | $ 157,943,000 | 111,488,000 |
Subordinated debt | Non-recourse debt | London Interbank Offered Rate (LIBOR) | Revolving loan facility, September 2020 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 5.50% | |
Bank Term Loan Due April 2022 | Non-recourse debt | ||
Debt Instrument [Line Items] | ||
Loan outstanding balance | $ 21,800,000 | |
Bank term loans due September 2022, Tranche One | Non-recourse debt | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.00% | |
Loan outstanding balance | $ 11,100,000 | |
Bank term loans due September 2022, Tranche Two | Non-recourse debt | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Loan outstanding balance | $ 17,500,000 | |
Securitization loans | ||
Debt Instrument [Line Items] | ||
Secured borrowings assets carrying amount | 166,500,000 | $ 172,800,000 |
Securitization loans | Non-recourse debt | ||
Debt Instrument [Line Items] | ||
Loan outstanding balance | $ 91,700,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||||
Unrealized gain (loss) on derivatives, net of tax | $ 8,495 | $ (543) | $ 30,328 | $ (5,016) | |
Recognized interest expense on derivatives into earnings, net of tax | (697) | 138 | (2,352) | 1,042 | |
Derivative assets | 27,600 | 27,600 | $ 1,900 | ||
Derivative liabilities | 100 | 100 | $ 8,600 | ||
Interest rate swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Unrealized gain (loss) on derivatives, net of tax | 8,500 | (500) | 30,300 | (5,000) | |
Unrealized gain (loss), applicable tax expense (benefit) | (3,100) | (300) | (10,700) | (3,200) | |
Recognized interest expense on derivatives into earnings, net of tax | 700 | 100 | 2,400 | 1,000 | |
Recognized interest expense on derivatives into earnings, tax expense (benefit) | (300) | $ 100 | (800) | $ 700 | |
Accelerated reclassification of gains | 6,900 | ||||
Additional amount to be classified as an increase to interest expense during next 12 months | $ 1,800 | $ 1,800 |
Derivatives - Summary of Deriva
Derivatives - Summary of Derivative Instruments (Details) - Interest rate swaps $ in Thousands | Sep. 30, 2018USD ($)Instrument |
Interest rate swap, 9/20/2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 1 |
Hedge interest rates | 2.69% |
Notional amount | $ 109,305 |
Derivative liability, fair market value | $ 228 |
Interest rate swap, 8/31/2022 - 9/30/2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 2 |
Notional amount | $ 24,952 |
Derivative asset, fair market value | $ 897 |
Interest rate swap, 8/31/2022 - 9/30/2022 | Minimum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 1.27% |
Interest rate swap, 8/31/2022 - 9/30/2022 | Maximum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 2.37% |
Interest rate swap, 4/30/2024 - 10/31/2024 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 10 |
Notional amount | $ 347,687 |
Derivative asset, fair market value | $ 11,797 |
Interest rate swap, 4/30/2024 - 10/31/2024 | Minimum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 2.16% |
Interest rate swap, 4/30/2024 - 10/31/2024 | Maximum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 2.69% |
Interest rate swap, 10/30/2026 - 10/31/2026 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 3 |
Notional amount | $ 102,720 |
Derivative liability, fair market value | $ 383 |
Interest rate swap, 10/30/2026 - 10/31/2026 | Minimum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 2.89% |
Interest rate swap, 10/30/2026 - 10/31/2026 | Maximum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 3.08% |
Interest rate swap, 6/20/2030 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 1 |
Hedge interest rates | 2.57% |
Notional amount | $ 67,013 |
Derivative asset, fair market value | $ 1,374 |
Interest rate swap, 9/30/2031 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 1 |
Hedge interest rates | 3.23% |
Notional amount | $ 8,642 |
Derivative liability, fair market value | $ (44) |
Interest rate swap, 4/20/2032 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 1 |
Hedge interest rates | 2.60% |
Notional amount | $ 33,409 |
Derivative asset, fair market value | $ 775 |
Interest rate swap, 7/31/2034 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 5 |
Notional amount | $ 144,379 |
Derivative asset, fair market value | $ 4,562 |
Interest rate swap, 7/31/2034 | Minimum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 2.48% |
Interest rate swap, 7/31/2034 | Maximum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 3.04% |
Interest rate swap, 7/31/2035 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 5 |
Notional amount | $ 151,869 |
Derivative asset, fair market value | $ 3,330 |
Interest rate swap, 7/31/2035 | Minimum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 2.56% |
Interest rate swap, 7/31/2035 | Maximum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 2.95% |
Interest rate swap, 10/31/2036 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 5 |
Notional amount | $ 183,671 |
Derivative asset, fair market value | $ 3,802 |
Interest rate swap, 10/31/2036 | Minimum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 2.62% |
Interest rate swap, 10/31/2036 | Maximum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 2.95% |
Interest rate swap, 1/31/2038 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Quantity | Instrument | 3 |
Notional amount | $ 101,135 |
Derivative liability, fair market value | $ 408 |
Interest rate swap, 1/31/2038 | Minimum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 3.01% |
Interest rate swap, 1/31/2038 | Maximum | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedge interest rates | 3.16% |
Pass-through Financing Obliga_2
Pass-through Financing Obligations - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Initial lease term | 20 years | |
Solar energy systems, gross | $ 3,996,770 | $ 3,441,797 |
Depreciation on lease | $ 498,797 | 399,280 |
Discount on expected remaining lease payments | 5.00% | |
Solar energy systems under lease pass-through fund arrangements | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Initial lease term | 20 years | |
Solar energy systems, gross | $ 565,300 | 464,200 |
Depreciation on lease | $ 76,500 | $ 63,700 |
VIE Arrangements - Carrying Amo
VIE Arrangements - Carrying Amounts and Classification of the VIEs' Assets and Liabilities Included in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash | $ 242,936 | $ 202,525 | |
Restricted cash | 32,049 | 39,265 | |
Accounts receivable, net | 65,354 | 60,359 | |
Prepaid expenses and other current assets | 9,699 | 9,202 | |
Total current assets | 446,016 | 416,863 | |
Solar energy systems, net | 3,618,125 | 3,161,570 | |
Other assets | 336,705 | 246,464 | |
Total assets | [1] | 4,533,199 | 3,963,136 |
Current liabilities: | |||
Accounts payable | 136,064 | 115,193 | |
Distributions payable to noncontrolling interests and redeemable noncontrolling interests | 15,387 | 13,583 | |
Accrued expenses and other liabilities | 85,897 | 97,230 | |
Deferred revenue, current portion | 46,571 | 42,609 | |
Deferred grants, current portion | 8,719 | 8,193 | |
Non-recourse debt, current portion | 27,496 | 21,529 | |
Total current liabilities | 383,861 | 311,145 | |
Deferred revenue, net of current portion | 539,863 | 522,243 | |
Deferred grants, net of current portion | 220,274 | 227,519 | |
Non-recourse debt, net of current portion | 1,290,102 | 1,026,416 | |
Other liabilities | 37,717 | 42,743 | |
Total liabilities | [1] | 3,131,714 | 2,598,819 |
Variable Interest Entities | |||
Current assets: | |||
Cash | 106,492 | 118,352 | |
Restricted cash | 4,944 | 2,699 | |
Accounts receivable, net | 19,123 | 18,786 | |
Prepaid expenses and other current assets | 387 | 917 | |
Total current assets | 130,946 | 140,754 | |
Solar energy systems, net | 2,587,296 | 2,385,329 | |
Other assets | 65,155 | 42,295 | |
Total assets | 2,783,397 | 2,568,378 | |
Current liabilities: | |||
Accounts payable | 8,442 | 15,929 | |
Distributions payable to noncontrolling interests and redeemable noncontrolling interests | 15,337 | 13,526 | |
Accrued expenses and other liabilities | 6,568 | 5,200 | |
Deferred revenue, current portion | 28,034 | 28,695 | |
Deferred grants, current portion | 1,016 | 1,021 | |
Non-recourse debt, current portion | 2,755 | 11,179 | |
Total current liabilities | 62,152 | 75,550 | |
Deferred revenue, net of current portion | 360,936 | 381,066 | |
Deferred grants, net of current portion | 28,489 | 29,385 | |
Non-recourse debt, net of current portion | 192,539 | 190,106 | |
Other liabilities | 8,790 | 1,848 | |
Total liabilities | $ 652,906 | $ 677,955 | |
[1] | The Company’s consolidated assets as of September 30, 2018 and December 31, 2017 include $2,783,397 and $2,568,378, respectively, in assets of variable interest entities (“VIEs”) that can only be used to settle obligations of the VIEs. These assets include solar energy systems, net, as of September 30, 2018 and December 31, 2017 of $2,587,296 and $2,385,329, respectively; cash as of September 30, 2018 and December 31, 2017 of $106,492 and $118,352, respectively; restricted cash as of September 30, 2018 and December 31, 2017 of $4,944 and $2,699, respectively; accounts receivable, net as of September 30, 2018 and December 31, 2017 of $19,123 and $18,786, respectively; prepaid expenses and other current assets as of September 30, 2018 and December 31, 2017 of $387 and $917, respectively; and other assets as of September 30, 2018 and December 31, 2017 of $65,155 and $42,295, respectively. The Company’s consolidated liabilities as of September 30, 2018 and December 31, 2017 include $652,906 and $677,955, respectively, in liabilities of VIEs whose creditors have no recourse to the Company. These liabilities include accounts payable as of September 30, 2018 and December 31, 2017 of $8,442 and $15,929, respectively; distributions payable to noncontrolling interests and redeemable noncontrolling interests as of September 30, 2018 and December 31, 2017 of $15,337 and $13,526, respectively; accrued expenses and other current liabilities as of September 30, 2018 and December 31, 2017 of $6,568 and $5,200, respectively; deferred revenue as of September 30, 2018 and December 31, 2017 of $388,970 and $409,761, respectively; deferred grants as of September 30, 2018 and December 31, 2017 of $29,505 and $30,406, respectively; non-recourse debt as of September 30, 2018 and December 31, 2017 of $195,294 and $201,285, respectively; and other liabilities as of September 30, 2018 and December 31, 2017 of $8,790 and $1,848, respectively. |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests and Equity - Schedule of Changes in Redeemable Noncontrolling Interest,Total Stockholders' Equity and Noncontrolling Interests (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018USD ($)fund | Sep. 30, 2017USD ($) | Dec. 31, 2017fund | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at beginning of period | $ 123,801 | ||
Balance at end of period | 117,468 | ||
Balance at beginning of period | 1,240,516 | $ 995,728 | |
Cumulative effect of adoption of ASU 2016-16 and ASU 2016-09 | 2,996 | ||
Exercise of stock options | 13,860 | 1,573 | |
Issuance of restricted stock units, net of tax withholdings | (7,910) | (2,925) | |
Shares issued in connection with the Employee Stock Purchase Plan | 1,755 | 1,145 | |
Stock based compensation | 21,991 | 16,530 | |
Contributions from noncontrolling interests and redeemable noncontrolling interests | 187,021 | 368,902 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (44,362) | (31,098) | |
Net income (loss) | (151,823) | (173,638) | |
Other comprehensive loss, net of taxes | 22,969 | (3,974) | |
Balance at end of period | $ 1,284,017 | 1,175,239 | |
Number of funds, carrying value adjusted to redemption value | fund | 5 | 5 | |
Redeemable Noncontrolling Interests | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at beginning of period | $ 123,801 | 140,996 | |
Contributions from redeemable noncontrolling interests | 60,683 | 105,167 | |
Distributions to redeemable noncontrolling interests | (8,168) | (11,794) | |
Net income (loss) | (58,848) | (57,942) | |
Balance at end of period | 117,468 | 176,427 | |
Total Stockholders' Equity | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at beginning of period | 881,582 | 742,771 | |
Cumulative effect of adoption of ASU 2016-16 and ASU 2016-09 | 2,996 | ||
Exercise of stock options | 13,860 | 1,573 | |
Issuance of restricted stock units, net of tax withholdings | (7,910) | (2,925) | |
Shares issued in connection with the Employee Stock Purchase Plan | 1,755 | 1,145 | |
Stock based compensation | 21,991 | 16,530 | |
Net income (loss) | 32,545 | 56,235 | |
Other comprehensive loss, net of taxes | 22,969 | (3,974) | |
Balance at end of period | 966,792 | 814,351 | |
Noncontrolling Interests | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at beginning of period | 358,934 | 252,957 | |
Contributions from noncontrolling interests and redeemable noncontrolling interests | 187,021 | 368,902 | |
Distributions to noncontrolling interests and redeemable noncontrolling interests | (44,362) | (31,098) | |
Net income (loss) | (184,368) | (229,873) | |
Balance at end of period | $ 317,225 | $ 360,888 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Number of Options | ||
Number of stock options, outstanding, balance (in shares) | 16,268 | |
Number of stock options, granted (in shares) | 1,469 | |
Number stock options, exercised (in shares) | (2,555) | |
Number of stock options, cancelled (in shares) | (834) | |
Number of stock options, outstanding, balance (in shares) | 14,348 | 16,268 |
Weighted Average Exercise Price | ||
Weighted-average exercise price, outstanding, balance (in dollars per share) | $ 5.70 | |
Weighted-average exercise price, granted (in dollars per share) | 8.48 | |
Weighted-average exercise price, exercised (in dollars per share) | 5.40 | |
Weighted-average exercise price, cancelled (in dollars per share) | 6.56 | |
Weighted-average exercise price, outstanding, balance (in dollars per share) | $ 5.98 | $ 5.70 |
Weighted-average remaining contractual life, options outstanding | 6 years 9 months 21 days | 7 years 4 months 28 days |
Aggregate intrinsic value, options outstanding | $ 93,159 | $ 14,832 |
Options vested and exercisable, number of options (in shares) | 8,093 | |
Options vested and exercisable, weighted average exercise price (in dollars per share) | $ 5.53 | |
Options vested and exercisable, weighted average remaining contractual life | 5 years 6 months 21 days | |
Options vested and exercisable, aggregate intrinsic value | $ 56,270 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity for All Restricted Stock Units ("RSUs") (Details) - Restricted Stock Units (RSUs) shares in Thousands | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of awards, unvested, balance (in units) | shares | 5,330 |
Number of awards, granted (in units) | shares | 1,909 |
Number of awards, issued (in units) | shares | (1,451) |
Number of awards, forfeited (in units) | shares | (1,170) |
Number of awards, unvested, balance (in units) | shares | 4,618 |
Weighted-average grant date fair value, unvested, beginning balance (in dollars per unit) | $ / shares | $ 5.82 |
Weighted-average grant date fair value, granted (in dollars per unit) | $ / shares | 8.54 |
Weighted-average grant date fair value, issued (in dollars per unit) | $ / shares | 6.45 |
Weighted-average grant date fair value, forfeited (in dollars per unit) | $ / shares | 5.62 |
Weighted-average grant date fair value, unvested, ending balance (in dollars per unit) | $ / shares | $ 6.80 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - Employee Stock Purchase Plan | 1 Months Ended | 3 Months Ended |
Jul. 31, 2015USD ($)shares | Sep. 30, 2018purchase_period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ESPP offering period | 24 months | |
Number of purchase periods | purchase_period | 4 | |
Maximum percentage in payroll deductions to acquire shares of common stock | 15.00% | |
Maximum deductible fair market value of shares available for employee to purchase per calendar year | $ | $ 25,000 | |
Maximum number of shares available for employee to purchase per offering period | shares | 10,000 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Compensation expense recognized | $ 5,741 | $ 5,105 | $ 21,982 | $ 16,494 |
Cost of customer agreements and incentives | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Compensation expense recognized | 648 | (69) | 1,926 | 1,792 |
Cost of solar energy systems and product sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Compensation expense recognized | 188 | 171 | 545 | 441 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Compensation expense recognized | 1,102 | 1,580 | 6,086 | 4,304 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Compensation expense recognized | 313 | 259 | 918 | 594 |
General and administration | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Compensation expense recognized | $ 3,490 | $ 3,164 | $ 12,507 | $ 9,363 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Stock-Based Compensation Expense Additional Details (Details) - Warrants | Nov. 07, 2018USD ($)solar_energy_system_install | Aug. 31, 2017USD ($)solar_energy_system_installvesting_increment$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrant, term | 40 months | |
Warrant, number purchased | shares | 11,793,355 | |
Warrant, exercise price (in dollars per share) | $ / shares | $ 0.01 | |
Warrant, vesting percentage | 50.05% | |
Warrant, milestone one, solar energy systems | 30,000 | |
Warrant, milestone two, marketing and sales dollars | $ | $ 10,000,000 | |
Warrant, vesting term | vesting_increment | 5 | |
Warrant, milestone two, solar energy systems | 6,000 | |
Subsequent Event | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrant, milestone one, solar energy systems | 6,000 | |
Warrant, milestone two, solar energy systems | 8,000 | |
Warrant, vesting percentage, milestone one | 10.00% | |
Warrant, vesting percentage, milestone two | 13.30% | |
Warrant, milestone one and two, marketing and sales dollars | $ | $ 25,000,000 | |
Warrant, vesting percentage, milestone three | 8.30% | |
Warrant, milestone three, solar energy systems | 5,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax rates | 11.20% | (21.30%) | (3.20%) | (15.30%) | |
Unrecognized tax benefits | $ 0.6 | $ 0.6 | $ 1.5 | ||
Unrecognized tax benefits income tax penalties and interest accrued | $ 0.2 | 0.2 | 0.4 | ||
Unrecognized tax benefits, reduction resulting from lapse of applicable statute of limitations | $ 1.1 | ||||
State | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | 630.7 | ||||
Net operating loss carryforwards, Year of expiration | 2,024 | ||||
Federal | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards | $ 720.1 | ||||
Net operating loss carryforwards, Year of expiration | 2,028 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Aug. 08, 2018 | May 04, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Other Commitments [Line Items] | |||||
Letters of credit outstanding, amount | $ 15.5 | $ 16.4 | |||
Purchase commitment | $ 159.6 | ||||
Letter of Credit | Minimum | |||||
Other Commitments [Line Items] | |||||
Letter of credit, fee percentage | 2.50% | ||||
Letter of Credit | Maximum | |||||
Other Commitments [Line Items] | |||||
Letter of credit, fee percentage | 3.25% | ||||
Settled litigation | Slovin et al. v. Sunrun Inc. and Clean Energy Experts, LLC | |||||
Other Commitments [Line Items] | |||||
Settlement amount, accrual | $ 5.5 | ||||
Settled litigation | Cohen, et al. v. Sunrun Inc., et al. | |||||
Other Commitments [Line Items] | |||||
Settlement amount, accrual | $ 1.9 | ||||
Settlement amount | 32 | ||||
Settlement amount, funded by insurers | $ 30.1 | ||||
Settled litigation | Fink, et al. v. Sunrun Inc., et al. | |||||
Other Commitments [Line Items] | |||||
Settlement amount | $ 2.5 |
Commitments and Contingencies_2
Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Finance lease cost: | ||||
Finance lease cost, amortization of right-of-use assets | $ 3,126 | $ 2,706 | $ 8,483 | $ 8,302 |
Finance lease cost, interest on lease liabilities | 167 | 142 | 414 | 509 |
Operating lease cost | 2,616 | 2,433 | 7,749 | 7,563 |
Short-term lease cost | 228 | 145 | 583 | 388 |
Variable lease cost | 947 | 630 | 2,454 | 1,953 |
Sublease income | (156) | (18) | (381) | (18) |
Total lease cost | $ 6,928 | $ 6,038 | $ 19,302 | $ 18,697 |
Commitments and Contingencies_3
Commitments and Contingencies - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities, operating cash flows from operating leases | $ 2,771 | $ 2,509 | $ 8,026 | $ 7,481 |
Cash paid for amounts included in the measurement of lease liabilities, operating cash flows from finance leases | 123 | 134 | 327 | 468 |
Cash paid for amounts included in the measurement of lease liabilities, financing cash flows from finance leases | 2,357 | 2,369 | 6,529 | 7,735 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | 1,322 | 1,589 | 1,414 | 5,455 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 4,997 | $ 72 | $ 9,139 | $ 174 |
Weighted average remaining lease term (years), operating leases | 3 years 6 months 3 days | 4 years 29 days | 3 years 6 months 3 days | 4 years 29 days |
Weighted average remaining lease term (years), finance leases | 2 years 7 months 2 days | 2 years 2 months 12 days | 2 years 7 months 2 days | 2 years 2 months 12 days |
Weighted average discount rate, operating leases | 4.20% | 4.00% | 4.20% | 4.00% |
Weighted average discount rate, finance leases | 4.00% | 3.00% | 4.00% | 3.00% |
Commitments and Contingencies_4
Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Operating Leases | ||
Operating leases, 2018 | $ 9,000 | |
Operating leases, 2019 | 5,984 | |
Operating leases, 2020 | 4,211 | |
Operating leases, 2021 | 2,734 | |
Operating leases, 2022 | 1,918 | |
Operating leases, thereafter | 321 | |
Operating leases, future lease payments | 24,168 | |
Operating leases, future lease payments | (1,623) | |
Operating leases, amount representing interest | 22,545 | |
Operating lease obligations | (8,288) | $ (9,202) |
Operating lease obligations, net of current portion | 14,257 | |
Finance Leases | ||
Finance leases, 2018 | 8,749 | |
Finance leases, 2019 | 4,131 | |
Finance leases, 2020 | 2,371 | |
Finance leases, 2021 | 1,107 | |
Finance leases, 2022 | 49 | |
Finance leases, thereafter | 19 | |
Finance leases, future lease payments | 16,426 | |
Finance leases, amount representing interest | (753) | |
Finance leases, present value of future payments | 15,673 | |
Finance lease obligations, current portion | (8,372) | (7,421) |
Finance lease obligations, net of current portion | $ 7,301 | $ 5,811 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) available to common stockholders | $ (2,896) | $ 28,007 | $ 32,545 | $ 56,235 |
Denominator: | ||||
Weighted average shares used to compute net income per share attributable to common stockholders, basic (in shares) | 111,134 | 105,783 | 109,351 | 105,060 |
Weighted average effect of potentially dilutive shares to purchase common stock (in shares) | 9,262 | 3,815 | 6,701 | 2,833 |
Weighted average shares used to compute net income per share attributable to common stockholders, diluted (in shares) | 120,396 | 109,598 | 116,052 | 107,893 |
Net income (loss) per share available to common stockholders | ||||
Basic (in dollars per share) | $ (0.03) | $ 0.26 | $ 0.30 | $ 0.54 |
Diluted (in dollars per share) | $ (0.02) | $ 0.26 | $ 0.28 | $ 0.52 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Shares Excluded From Computation of Diluted Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net income per share (in shares) | 767 | 11,384 | 5,829 | 14,607 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net income per share (in shares) | 0 | 1,251 | 834 | 1,251 |
Outstanding stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net income per share (in shares) | 527 | 9,346 | 4,211 | 12,257 |
Unvested restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of net income per share (in shares) | 240 | 787 | 784 | 1,099 |