Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Ameresco, Inc. | |
Entity Central Index Key | 0001488139 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 30,473,210 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 18,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents (including amounts in VIEs of $1,355 and $1,255, respectively) | $ 25,487 | $ 61,397 |
Restricted cash (including amounts in VIEs of $156 and $156, respectively) | 14,994 | 16,880 |
Accounts receivable, net (including amounts in VIEs of $272 and $374, respectively) | 81,896 | 85,985 |
Accounts receivable retainage, net | 14,762 | 13,516 |
Costs and estimated earnings in excess of billings (including amounts in VIEs of $758 and $498, respectively) | 92,264 | 86,842 |
Inventory, net | 8,930 | 7,765 |
Prepaid expenses and other current assets (including amounts in VIEs of $190 and $190, respectively) | 14,437 | 11,571 |
Income tax receivable | 1,727 | 5,296 |
Project development costs | 25,834 | 21,717 |
Total current assets | 280,331 | 310,969 |
Federal ESPC receivable | 310,922 | 293,998 |
Property and equipment, net | 7,073 | 6,985 |
Energy assets, net (including amounts in VIEs of $123,092 and $122,641, respectively) | 476,582 | 459,952 |
Goodwill | 58,835 | 58,332 |
Intangible assets, net | 2,310 | 2,004 |
Operating lease assets (including amounts in VIEs of $6,124 and $0, respectively) | 30,350 | 0 |
Other assets (including amounts in VIEs of $1,624 and $1,613, respectively) | 32,273 | 29,394 |
Total assets | 1,198,676 | 1,161,634 |
Current liabilities: | ||
Current portions of long-term debt and financing lease liabilities (including amounts in VIEs of $2,263 and $1,712, respectively) | 55,731 | 26,890 |
Accounts payable (including amounts in VIEs of $169 and $234, respectively) | 102,432 | 134,330 |
Accrued expenses and other current liabilities (including amounts in VIEs of $3,672 and $4,146, respectively) | 28,491 | 35,947 |
Current operating lease liabilities (including amounts in VIEs of $84 and $0, respectively) | 5,082 | 0 |
Billings in excess of cost and estimated earnings | 25,354 | 24,363 |
Income taxes payable | 1,196 | 1,100 |
Total current liabilities | 218,286 | 222,630 |
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees (including amounts in VIEs of $26,104 and $26,461, respectively) | 197,014 | 219,162 |
Federal ESPC liabilities | 321,954 | 288,047 |
Deferred income taxes, net | 4,066 | 4,352 |
Deferred grant income | 6,499 | 6,637 |
Long-term portions of operating lease liabilities (including amounts in VIEs of $6,271 and $0, respectively) | 27,305 | 0 |
Other liabilities (including amounts in VIEs of $1,336 and $2,131, respectively) | 28,474 | 29,212 |
Commitments and contingencies (Note 9) | ||
Redeemable non-controlling interests | 13,341 | 14,719 |
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at March 31, 2019 and December 31, 2018 | 0 | 0 |
Additional paid-in capital | 125,685 | 124,651 |
Retained earnings | 274,170 | 269,806 |
Accumulated other comprehensive loss, net | (6,485) | (5,949) |
Less - treasury stock, at cost, 2,091,040 shares at March 31, 2019 and 1,873,266 shares at December 31, 2018 | (11,638) | (11,638) |
Total stockholders’ equity | 381,737 | 376,875 |
Total liabilities, redeemable non-controlling interests and stockholders’ equity | 1,198,676 | 1,161,634 |
Common Class A | ||
Stockholders’ equity: | ||
Common Stock | 3 | 3 |
Common Class B | ||
Stockholders’ equity: | ||
Common Stock | $ 2 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | $ 25,487 | $ 61,397 |
Short-term restricted cash | 14,994 | 16,880 |
Accounts receivable, net | 81,896 | 85,985 |
Costs and estimated earnings in excess of billings | 92,264 | 86,842 |
Prepaid expenses and other current assets | 14,437 | 11,571 |
Energy assets, net | 476,582 | 459,952 |
Operating lease right-of-use asset | 30,350 | 0 |
Other assets | 32,273 | 29,394 |
Accounts payable | 102,432 | 134,330 |
Accrued expenses and other current liabilities | 28,491 | 35,947 |
Current portions of operating lease right-of-use liability | 5,082 | 0 |
Long-term debt and capital lease liabilities, less current portions and net of deferred financing fees | 197,014 | 219,162 |
Long-term portions of operating lease liability | 27,305 | 0 |
Other liabilities | $ 28,474 | $ 29,212 |
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Class A | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 30,428,466 | 30,366,546 |
Common stock, shares outstanding (in shares) | 28,337,426 | 28,275,506 |
Treasury stock, shares (in shares) | 2,091,040 | 1,873,266 |
Common Class B | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 144,000,000 | 144,000,000 |
Common stock, shares issued (in shares) | 18,000,000 | 18,000,000 |
Common stock, shares outstanding (in shares) | 18,000,000 | 18,000,000 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | $ 1,355 | $ 1,255 |
Short-term restricted cash | 156 | 156 |
Accounts receivable, net | 272 | 374 |
Costs and estimated earnings in excess of billings | 758 | 498 |
Prepaid expenses and other current assets | 190 | 190 |
Energy assets, net | 123,092 | 122,641 |
Operating lease right-of-use asset | 6,124 | 0 |
Other assets | 1,624 | 1,613 |
Long-term debt and capital lease liabilities | 2,263 | 1,712 |
Accounts payable | 169 | 234 |
Accrued expenses and other current liabilities | 3,672 | 4,146 |
Current portions of operating lease right-of-use liability | 84 | 0 |
Long-term debt and capital lease liabilities, less current portions and net of deferred financing fees | 26,104 | 26,461 |
Long-term portions of operating lease liability | 6,271 | 0 |
Other liabilities | $ 1,336 | $ 2,131 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 150,112 | $ 167,410 |
Cost of revenues | 117,480 | 131,937 |
Gross profit | 32,632 | 35,473 |
Selling, general and administrative expenses | 26,083 | 27,204 |
Operating income | 6,549 | 8,269 |
Other expenses, net | 3,421 | 3,544 |
Income before provision (benefit) for income taxes | 3,128 | 4,725 |
Income tax provision (benefit) | 257 | (2,779) |
Net income | 2,871 | 7,504 |
Net (income) loss attributable to redeemable non-controlling interests | 1,276 | (516) |
Net income attributable to common shareholders | $ 4,147 | $ 6,988 |
Net income per share attributable to common shareholders: | ||
Basic (in usd per share) | $ 0.09 | $ 0.15 |
Diluted (in usd per share) | $ 0.09 | $ 0.15 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 46,293 | 45,373 |
Diluted (in shares) | 47,654 | 45,994 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,871 | $ 7,504 |
Other comprehensive income (loss): | ||
Unrealized (loss) gain from interest rate hedges, net of tax (provision) benefit of $(325) and $389, respectively | (1,142) | 1,403 |
Foreign currency translation adjustments | 606 | 437 |
Total other comprehensive income (loss) | (536) | 1,840 |
Comprehensive income | 2,335 | 9,344 |
Comprehensive loss (income) attributable to redeemable non-controlling interests | 1,276 | (516) |
Comprehensive income attributable to common shareholders | $ 3,611 | $ 8,828 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) from interest rate hedges, tax benefit (provision) | $ (325) | $ 389 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Redeemable Non-Controlling Interests and Stockholders' Equity - USD ($) $ in Thousands | Total | Common Class A | Common Class B | Common StockCommon Class A | Common StockCommon Class B | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Redeemable non-controlling interests, beginning balance at Dec. 31, 2017 | $ 10,338 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Distributions to redeemable non-controlling interests | (103) | ||||||||
Net income (loss) | 516 | ||||||||
Redeemable non-controlling interests, ending balance at Mar. 31, 2018 | 10,751 | ||||||||
Beginning balance (in shares) at Dec. 31, 2017 | 27,533,049 | 18,000,000 | 1,873,266 | ||||||
Beginning balance at Dec. 31, 2017 | 336,620 | $ 3 | $ 2 | $ 116,196 | $ 235,844 | $ (5,626) | $ (9,799) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of stock options (in shares) | 146,435 | ||||||||
Exercise of stock options | 691 | 691 | |||||||
Stock-based compensation expense | 355 | 355 | |||||||
Open market purchase of common shares (in shares) | 212,131 | 212,131 | |||||||
Open market purchase of common shares | (1,771) | $ (1,771) | |||||||
Unrealized gain from interest rate hedge, net | 1,403 | 1,403 | |||||||
Foreign currency translation adjustments | 437 | 437 | |||||||
Net income (loss) | 6,988 | 6,988 | |||||||
Ending balance (in shares) at Mar. 31, 2018 | 27,467,353 | 18,000,000 | 2,085,397 | ||||||
Ending balance at Mar. 31, 2018 | 340,269 | $ 3 | $ 2 | 117,242 | 238,810 | (4,218) | $ (11,570) | ||
Redeemable non-controlling interests, beginning balance at Dec. 31, 2018 | 14,719 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Distributions to redeemable non-controlling interests | (102) | ||||||||
Net income (loss) | (1,276) | ||||||||
Redeemable non-controlling interests, ending balance at Mar. 31, 2019 | 13,341 | ||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 28,275,506 | 18,000,000 | 28,275,506 | 18,000,000 | 2,091,040 | ||||
Beginning balance at Dec. 31, 2018 | 376,875 | $ 3 | $ 2 | 124,651 | 269,806 | (5,949) | $ (11,638) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of stock options (in shares) | 61,920 | ||||||||
Exercise of stock options | 649 | 649 | |||||||
Stock-based compensation expense | 385 | 385 | |||||||
Open market purchase of common shares (in shares) | 0 | ||||||||
Unrealized gain from interest rate hedge, net | (925) | (925) | |||||||
Foreign currency translation adjustments | 606 | 606 | |||||||
Net income (loss) | 4,147 | 4,147 | |||||||
Ending balance (in shares) at Mar. 31, 2019 | 28,337,426 | 18,000,000 | 28,337,426 | 18,000,000 | 2,091,040 | ||||
Ending balance at Mar. 31, 2019 | $ 381,737 | $ 3 | $ 2 | $ 125,685 | $ 274,170 | $ (6,485) | $ (11,638) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||||||
Net income | $ 2,871 | $ 7,504 | ||||
Adjustments to reconcile net income to cash flows from operating activities: | ||||||
Depreciation of energy assets | 8,407 | 6,312 | ||||
Depreciation of property and equipment | 619 | 542 | ||||
Amortization of debt issuance costs | 693 | 419 | ||||
Amortization of intangible assets | 213 | 253 | ||||
Accretion of ARO and contingent consideration | 51 | 0 | ||||
Provision for bad debts | 77 | 64 | ||||
Gain on deconsolidation of VIE | (2,160) | 0 | ||||
Net gain from derivatives | (723) | (12) | ||||
Stock-based compensation expense | 385 | 355 | ||||
Deferred income taxes | 0 | (3,027) | ||||
Unrealized foreign exchange (gain) loss | (59) | 492 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | 4,718 | (1,837) | ||||
Accounts receivable retainage | (1,201) | (2,453) | ||||
Federal ESPC receivable | (26,986) | (37,967) | ||||
Inventory, net | (1,165) | (544) | ||||
Costs and estimated earnings in excess of billings | (1,027) | 30,363 | ||||
Prepaid expenses and other current assets | (2,939) | (4,578) | ||||
Project development costs | (3,688) | (2,325) | ||||
Other assets | 549 | 540 | ||||
Accounts payable, accrued expenses and other current liabilities | (40,976) | (33,309) | ||||
Billings in excess of cost and estimated earnings | 809 | 1,190 | ||||
Other liabilities | (228) | (674) | ||||
Income taxes payable | 3,666 | 1,617 | ||||
Cash flows from operating activities | (58,094) | (37,075) | ||||
Cash flows from investing activities: | ||||||
Purchases of property and equipment | (1,287) | (1,015) | ||||
Purchases of energy assets | (23,334) | (34,161) | ||||
Acquisitions, net of cash received | (1,279) | 0 | ||||
Contributions to equity investment | (192) | 0 | ||||
Cash flows from investing activities | (26,092) | (35,176) | ||||
Cash flows from financing activities: | ||||||
Payments of financing fees | 0 | (575) | ||||
Proceeds from exercises of options and ESPP | 649 | 691 | ||||
Repurchase of common stock | 0 | (1,771) | ||||
Proceeds from senior secured credit facility, net | 11,373 | 17,404 | ||||
Proceeds from long-term debt financings | 0 | 33,501 | ||||
Proceeds from Federal ESPC projects | 39,598 | 36,581 | ||||
Proceeds for energy assets from Federal ESPC | 1,732 | 717 | ||||
Distributions to redeemable non-controlling interests | (103) | (103) | ||||
Payments on long-term debt | (5,716) | (2,322) | ||||
Cash flows from financing activities | 47,533 | 84,123 | ||||
Effect of exchange rate changes on cash | 140 | (180) | ||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (36,513) | 11,692 | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 97,914 | 60,105 | $ 60,105 | |||
Cash, cash equivalents, and restricted cash, end of period | 61,401 | 71,797 | 97,914 | |||
Supplemental disclosures of cash flow information: | ||||||
Cash paid for interest | 3,391 | 1,402 | ||||
Cash paid for income taxes | 197 | 442 | ||||
Non-cash Federal ESPC settlement | 5,629 | 28,367 | ||||
Accrued purchases of energy assets | 16,247 | 4,482 | ||||
Reconciliation of cash, cash equivalents and restricted cash | ||||||
Cash and cash equivalents | $ 25,487 | $ 61,397 | $ 34,125 | |||
Short-term restricted cash | 14,994 | 16,880 | 16,894 | |||
Long-term restricted cash included in other assets | 20,920 | 19,637 | 20,778 | |||
Total cash and cash equivalents, and restricted cash | $ 97,914 | $ 60,105 | $ 60,105 | $ 61,401 | $ 97,914 | $ 71,797 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Ameresco, Inc. (including its subsidiaries, the “Company”) was organized as a Delaware corporation on April 25, 2000. The Company is a provider of energy efficiency solutions for facilities throughout North America and Europe. The Company provides solutions, both services and products, that enable customers to reduce their energy consumption, lower their operating and maintenance costs and realize environmental benefits. The Company’s comprehensive set of solutions includes upgrades to a facility’s energy infrastructure and the construction and operation of small-scale renewable energy plants. It also sells certain photovoltaic (“PV”) equipment worldwide. The Company operates in the United States, Canada and Europe. The Company is compensated through a variety of methods, including: 1) direct payments based on fee-for-services contracts (utilizing lump-sum or cost-plus pricing methodologies); 2) the sale of energy from the Company’s energy assets and the sale of energy assets; and 3) direct payment for PV equipment and systems. The condensed consolidated financial statements as of March 31, 2019 , and for the three months ended March 31, 2019 and 2018 , are unaudited, pursuant to certain rules and regulations of the Securities and Exchange Commission, and include, in the opinion of the Company, normal recurring adjustments necessary for a fair presentation in conformity with accounting principles generally accepted in the United States (“GAAP”) of the results for the periods indicated, which, however, are not necessarily indicative of results which may be expected for the full year. The December 31, 2018 consolidated balance sheet data was derived from audited financial statements, but certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The interim condensed consolidated financial statements, and notes thereto, should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 , and notes thereto, included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission on March 8, 2019 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company, its subsidiaries in which the Company has a controlling financial interest and four investment funds formed to fund the purchase and operation of solar energy systems, which are consolidated with the Company as variable interest entities (“VIE”). The Company uses a qualitative approach in assessing the consolidation requirement for VIEs. This approach focuses on determining whether the Company has the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and whether the Company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. For all periods presented, the Company has determined that it is the primary beneficiary in all but one of its operational VIEs. The Company evaluates its relationships with the VIEs on an ongoing basis to ensure that it continues to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated. Gains and losses from the translation of all foreign currency financial statements are recorded in accumulated other comprehensive loss, net, within stockholders’ equity. The Company prepares its condensed consolidated financial statements in conformity with GAAP. Use of Estimates GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidating financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant estimates and assumptions used in these condensed consolidated financial statements relate to management’s estimates of final construction contract profit in accordance with accounting for long-term contracts, allowance for doubtful accounts, inventory reserves, realization of project development costs, fair value of derivative financial instruments, accounting for business acquisitions, stock-based awards, impairment of goodwill and long-lived assets, asset retirement obligations (“AROs”), leases, income taxes, self insurance reserves and potential liability in conjunction with certain commitments and contingencies. Actual results could differ from those estimates. The Company is self-insured for employee health insurance. The maximum exposure in fiscal year 2019 under the plan was $150 per covered participant, after which reinsurance takes effect. The liability for unpaid claims and associated expenses, including incurred but not reported claims, is determined by management and reflected in the Company’s condensed consolidated balance sheets in accrued expenses and other current liabilities. The liability is calculated based on historical data, which considers both the frequency and settlement amount of claims. The Company’s estimated accrual for this liability could be different than its ultimate obligation if variables such as the frequency or amount of future claims differ significantly from management’s assumptions. Cash and Cash Equivalents Cash and cash equivalents includes cash on deposit, overnight repurchase agreements and amounts invested in highly liquid money market funds. Cash equivalents consist of short term investments with original maturities of three months or less. The Company maintains accounts with financial institutions and the balances in such accounts, at times, exceed federally insured limits. This credit risk is divided among a number of financial institutions that management believes to be of high quality. The carrying amount of cash and cash equivalents approximates its fair value measured using level 1 inputs per the fair value hierarchy as defined in Note 10. Restricted Cash Restricted cash consists of cash and cash equivalents held in an escrow account in association with construction draws for energy savings performance contracts (“ESPC”), construction of energy assets, operations and maintenance (“O&M”) reserve accounts and cash collateralized letters of credit as well as cash required under term loans to be maintained in debt service reserve accounts until all obligations have been indefeasibly paid in full. These accounts are primarily invested in highly liquid money market funds. The carrying amount of the cash and cash equivalents in these accounts approximates its fair value measured using level 1 inputs per the fair value hierarchy as defined in Note 10. Restricted cash also includes funds held for clients, which represent assets that, based upon the Company’s intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds to third parties, primarily utility service providers, relating to the Company’s enterprise energy management services. As of March 31, 2019 and December 31, 2018 , the Company classified the non-current portion of restricted cash of $20,920 and $19,637 , respectively, in other assets on its condensed consolidated balance sheets. Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based upon historical experience and management’s evaluation of outstanding accounts receivable. Bad debts are written off against the allowance when identified. Changes in the allowance for doubtful accounts are as follows: Three Months Ended March 31, 2019 2018 Allowance for doubtful accounts, beginning of period $ 2,765 $ 3,315 Charges to costs and expenses 77 64 Account write-offs and other (29 ) (86 ) Allowance for doubtful accounts, end of period $ 2,813 $ 3,293 Accounts Receivable Retainage Accounts receivable retainage represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice. The Company classifies as a current asset those retainages that are expected to be billed in the next twelve months. No amounts were determined to be uncollectible as of March 31, 2019 and December 31, 2018 . Inventory Inventories, which consist primarily of PV solar panels, batteries and related accessories, are stated at the lower of cost (“first-in, first-out” method) or net realizable value (determined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation). Provisions have been made to reduce the carrying value of inventory to the net realizable value. Prepaid Expenses Prepaid expenses consist primarily of short-term prepaid expenditures that will amortize within one year. Federal ESPC Receivable Federal ESPC receivable represents the amount to be paid by various federal government agencies for work performed and earned by the Company under specific ESPCs. The Company assigns certain of its rights to receive those payments to third-parties that provide construction and permanent financing for such contracts. Upon completion and acceptance of the project by the government, typically within 24 to 36 months of construction commencement, the assigned ESPC receivable from the government and corresponding ESPC liability are eliminated from the Company’s condensed consolidated financial statements. Project Development Costs The Company capitalizes as project development costs only those costs incurred in connection with the development of energy projects, primarily direct labor, interest costs, outside contractor services, consulting fees, legal fees and travel, if incurred after a point in time where the realization of related revenue becomes probable. Project development costs incurred prior to the probable realization of revenue are expensed as incurred. The Company classifies as a current asset those project development efforts that are expected to proceed to construction activity in the twelve months that follow. The Company periodically reviews these balances and writes off any amounts where the realization of the related revenue is no longer probable. Project development costs of $217 and $639 were included in other long-term assets at March 31, 2019 and December 31, 2018, respectively. Property and Equipment Property and equipment consists primarily of office and computer equipment, and is recorded at cost. Major additions and improvements are capitalized as additions to the property and equipment accounts, while replacements, maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Depreciation and amortization of property and equipment are computed on a straight-line basis over the following estimated useful lives: Asset Classification Estimated Useful Life Furniture and office equipment Five years Computer equipment and software costs Three to five years Leasehold improvements Lesser of term of lease or five years Automobiles Five years Land Unlimited Gains or losses on disposal of property and equipment are reflected in selling, general and administrative expenses in the condensed consolidated statements of income. Energy Assets Energy assets consist of costs of materials, direct labor, interest costs, outside contract services, deposits and project development costs incurred in connection with the construction of small-scale renewable energy plants that the Company owns. These amounts are capitalized and amortized to cost of revenues in the Company’s condensed consolidated statements of income on a straight line basis over the lives of the related assets or the terms of the related contracts. The Company capitalizes interest costs relating to construction financing during the period of construction. Capitalized interest is included in energy assets, net in the Company’s condensed consolidated balance sheets. Capitalized interest is amortized to cost of revenues in the Company’s condensed consolidated statements of income on a straight line basis over the useful life of the associated energy asset. There was $788 and $994 of interest capitalized for the three months ended March 31, 2019 and 2018 , respectively. Routine maintenance costs are expensed in the current year’s condensed consolidated statements of income to the extent that they do not extend the life of the asset. Major maintenance, upgrades and overhauls are required for certain components of the Company’s assets. In these instances, the costs associated with these upgrades are capitalized and are depreciated over the shorter of the remaining life of the asset or the period until the next required major maintenance or overhaul. Included in energy assets are financing lease assets and accumulated depreciation of financing lease assets. For additional information see the Sale-Leaseback section below. Financing leases were referred to as capital leases under previous guidance. The Company evaluates its long-lived assets for impairment as events or changes in circumstances indicate the carrying value of these assets may not be fully recoverable. Examples of such triggering events applicable to the Company’s assets include a significant decrease in the market price of a long-lived asset or asset group or a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. The Company evaluates recoverability of long-lived assets to be held and used by estimating the undiscounted future cash flows before interest associated with the expected uses and eventual disposition of those assets. When these comparisons indicate that the carrying value of those assets is greater than the undiscounted cash flows, the Company recognizes an impairment loss for the amount that the carrying value exceeds the fair value. The Company has applied for and received cash grant awards from the U.S. Treasury Department (the “Treasury”) under Section 1603 of the American Recovery and Reinvestment Act of 2009 (the “Act”). The Act authorized the Treasury to make payments to eligible persons who place in service qualifying renewable energy projects. The grants are paid in lieu of investment tax credits. All of the cash proceeds from the grants were used and recorded as a reduction in the cost basis of the applicable energy assets. If the Company disposes of the property, or the property ceases to qualify as specified energy property, within five years from the date the property is placed in service, then a prorated portion of the Section 1603 payment must be repaid. The Company last received a Section 1603 grant during the year ended December 31, 2014. No further Section 1603 grant payments are expected to be received as the program has expired. For tax purposes, the Section 1603 payments are not included in federal and certain state taxable income and the basis of the property is reduced by 50% of the payment received. Deferred grant income of $6,499 and $6,637 recorded in the accompanying condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 , respectively, represents the benefit of the basis difference to be amortized to income tax expense over the life of the related property. Leases All significant lease arrangements are recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) as the Company recognizes lease expense for these leases as incurred over the lease term. ROU assets represent the Company’s right to use an underlying asset during the reasonably certain lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, which is updated annually or when a significant event occurs that would indicate a significant change in rates, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for as a single component. See Note 8 for additional discussion on the Company’s leases. Deferred Financing Fees Deferred financing fees relate to the external costs incurred to obtain financing for the Company. Deferred financing fees are amortized over the respective term of the financing using the effective interest method, with the exception of the Company’s revolving credit facility and construction loans, as discussed in Note 15, for which deferred financing fees are amortized on a straight-line basis over the term of the agreement. Deferred financing fees are presented on the condensed consolidated balance sheets as a reduction to long-term debt and financing lease liabilities. Goodwill and Intangible Assets The Company has classified as goodwill the amounts paid in excess of fair value of the net assets (including tax attributes) of companies acquired in purchase transactions. The Company has recorded intangible assets related to customer contracts, customer relationships, non-compete agreements, trade names and technology, each with defined useful lives. The Company assesses the impairment of goodwill and intangible assets that have indefinite lives on an annual basis (December 31 st ) and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The process of evaluating the potential impairment of goodwill requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and projections of future results. T he Company estimates the reporting units fair value and compares it with the carrying value of the reporting unit, including goodwill. If the fair value is greater than the carrying value of its reporting unit, no impairment is recorded. Fair value is determined using both an income approach and a market approach. The estimates and assumptions used in the Company’s calculations include revenue growth rates, expense growth rates, expected capital expenditures to determine projected cash flows, expected tax rates and an estimated discount rate to determine present value of expected cash flows. These estimates are based on historical experiences, the Company’s projections of future operating activity and its weighted-average cost of capital. If the fair value is less than the carrying value, an impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The impairment charge would be recorded to earnings in the condensed consolidated statements of income. Judgment is required in determining whether an event has occurred that may impair the value of goodwill or identifiable intangible assets. Acquired intangible assets other than goodwill that are subject to amortization include customer contracts and customer relationships, as well as software/technology, trade names and non-compete agreements. The intangible assets are amortized over periods ranging from one to fifteen years from their respective acquisition dates. The Company evaluates its intangible assets for impairment consistent with, and part of, their long-lived assets evaluation, as discussed in Energy Assets above. See Note 5 for additional disclosures. Other Assets Other assets consist primarily of notes and contracts receivable due to the Company from various customers and non-current restricted cash. Other assets also include, the fair value of derivatives determined to be assets, the non-current portion of project development costs, accounts receivable retainages, sale-leaseback deferred loss and deferred contract costs. Asset Retirement Obligations The Company recognizes a liability for the fair value of required AROs when such obligations are incurred. The Company records, as liabilities, the fair value of the AROs on a discounted basis when incurred and reasonably estimated which is typically at the time the assets are installed or operating. Over time the liabilities increase due to the change in present value, and initial capitalized costs are depreciated over the useful life of the related assets. Upon satisfaction of the ARO conditions any difference between the recorded ARO liability and the actual retirement cost incurred is recognized as an operating gain or loss in the condensed consolidated statements of income. See Note 6 for additional disclosures on the Company’s AROs. Federal ESPC Liabilities Federal ESPC liabilities, for both projects and energy assets, represent the advances received from third-parties under agreements to finance certain ESPC projects with various federal government agencies. For projects related to the construction or installation of certain energy savings equipment or facilities developed for the government customer, upon completion and acceptance of the project by the government, typically within 24 to 36 months of construction commencement, the ESPC receivable from the government and corresponding ESPC liability is eliminated from the Company’s condensed consolidated balance sheet. Until recourse to the Company ceases for the ESPC receivables transferred to the investor, upon final acceptance of the work by the government customer, the Company remains the primary obligor for financing received. For small-scale energy assets developed for the government customer that the Company owns and operates, upon final acceptance of the work by the government customer, the Company remains the primary obligor for financing received and the liability is eliminated from the Company’s condensed consolidated balance sheet as contract payments assigned by the customer are transferred to the investor. Sale-Leaseback During the first quarter of 2015, the Company entered into an agreement with an investor which gives the Company the option to sell and contemporaneously lease back solar photovoltaic (“solar PV”) projects. In September 2016, the Company amended this agreement to increase the investor’s commitment up to a maximum combined funding amount of $100,000 through June 30, 2017 on certain projects. In May 2017, the Company amended this agreement to extend the end date of the agreement to June 30, 2018. During the third quarter of 2018, the Company entered into an agreement with an investor which gives the Company the option to sell and contemporaneously lease back solar PV projects through August 2019 up to a maximum funding amount of $100,000 . During the three months ended March 31, 2019 and 2018 the Company entered into no sale-leaseback agreements. As part of these agreements, the Company is a party to a master lease agreement that provides for the sale of solar PV projects to a third-party investor and the simultaneous leaseback of the projects, which the Company then operates and maintains, recognizing revenue through the sale of the electricity and solar renewable energy credits generated by these projects. In sale-leaseback arrangements, the Company first determines whether the solar PV project under the sale-leaseback arrangement is “integral equipment.” A solar PV project is determined to be integral equipment when the cost to remove the project from its existing location, including the shipping and reinstallation costs of the solar PV project at the new site, including any diminution in fair value, exceeds 10% of the fair value of the solar PV project at the time of its original installation. When the leaseback arrangement expires, the Company has the option to purchase the solar PV project for the then fair market value or, in certain circumstances, renew the lease for an extended term. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company not to be integral equipment as the cost to remove the project from its existing location would not exceed 10% of its original fair value. For solar PV projects that the Company has determined not to be integral equipment, the Company then determines if the leaseback should be classified as a financing lease or an operating lease. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company to be financing leases. For leasebacks classified as financing leases, the Company initially records a financing lease asset and financing lease obligation in its condensed consolidated balance sheet equal to the lower of the present value of the Company’s future minimum leaseback payments or the fair value of the solar PV project. For financing leasebacks, the Company defers any gain or loss, representing the excess or shortfall of cash received from the investor compared to the net book value of the asset in the Company’s condensed consolidated balance sheet at the time of the sale. The Company records the long term portion of any deferred gain or loss in other liabilities and other assets, respectively, and the current portion of any deferred gain and loss in accrued expenses and other current liabilities and prepaid expenses and other current assets, respectively, in its condensed consolidated balance sheet and amortizes the deferred amounts over the lease term in cost of revenues in its condensed consolidated statements of income. Net amortization expense in cost of revenues related to deferred gains and losses was $57 and $59 of net gains for the three months ended March 31, 2019 and 2018 , respectively. A summary of amounts related to sale leasebacks in the Company’s condensed consolidated balance sheets is as follows: March 31, December 31, 2019 2018 Financing lease assets, net $ 37,731 $ 38,263 Deferred loss, short-term, net 115 115 Deferred loss, long-term, net 1,888 1,917 Total deferred loss $ 2,003 $ 2,032 Financing lease liabilities, short-term 4,958 4,956 Financing lease liabilities, long-term 28,379 28,407 Total financing lease liabilities $ 33,337 $ 33,363 Deferred gain, short-term, net 345 345 Deferred gain, long-term, net 5,722 5,808 Total deferred gain $ 6,067 $ 6,153 As of January 1, 2019, the Company adopted Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) and, along with the standard, elected to take the practical expedient that the Company will not reassess lease classifications at adoption. Accordingly, these sales-leasebacks will remain under the previous guidance. See Note 8 for additional information on these sale-leasebacks. Other Liabilities Other liabilities consist primarily of deferred revenue related to multi-year operation and maintenance contracts which expire at various dates through 2033 . Other liabilities also include the fair value of derivatives, the long term portion of sale-leaseback deferred gains, ESPC energy asset liabilities, ARO liability, and certain contingent consideration. See Note 10 for additional disclosures. Revenue Recognition The Company derives revenues from energy efficiency and renewable energy products and services. Energy efficiency products and services include the design, engineering, and installation of equipment and other measures to improve the efficiency, and control the operation, of a facility’s energy infrastructure. Renewable energy products and services include the construction of small-scale plants that produce electricity, gas, heat or cooling from renewable sources of energy, the sale of such electricity, gas, heat or cooling from plants that the Company owns, and the sale and installation of solar energy products and systems. Below is a description of the Company’s primary lines of business. Projects - The Company’s principal service relates to energy efficiency projects, which entails the design, engineering and installation of, and assisting with the arranging of financing for an ever-increasing array of innovative technologies and techniques to improve the energy efficiency, and control the operation, of a building’s energy- and water- consuming systems. In certain projects, the Company also designs and constructs for a customer a central plant or cogeneration system providing power, heat and/or cooling to a building, or a small-scale plant that produces electricity, gas, heat or cooling from renewable sources of energy. The Company recognizes revenue from the installation or construction of projects over time using the cost-based input method. The Company uses the total costs incurred on the the project relative to the total expected costs to satisfy the performance obligation. When the estimate on a contract indicates a loss, or claims against costs incurred reduce the likelihood of recoverability of such costs, the Company records the entire estimated loss in the period the loss becomes known. Operations & Maintenance (“O&M”) - After an energy efficiency or renewable energy project is completed, the Company often provides ongoing O&M services under a multi-year contract. These services include operating, maintaining and repairing facility energy systems such as boilers, chillers and building controls, as well as central power and other small-scale plants. For larger projects, the Company frequently maintains staff on-site to perform these services. Maintenance revenue is recognized using the input method to recognize revenue. In most cases, O&M fees are fixed annual fees. Because the Company is on-site to perform O&M services, the services are typically a distinct series of promises, and those services have the same pattern of transfer to the customer (i.e., evenly over time), the Company records the revenue on a straight-line basis. Some O&M service contract fees are billed on time expended. In those cases, revenue is recorded based on the time expended in that month. Energy Assets - The Company’s service offerings also includes the sale of electricity, processed renewable gas fuel, heat or cooling from the portfolio of assets that the Company owns and operates. The Company has constructed and is currently designing and constructing a wide range of renewable energy plants using landfill gas (“LFG”), wastewater treatment biogas, solar, biomass, other bio-derived fuels, wind and hydro sources of energy. Most of the Company’s renewable energy projects to date have involved the generation of electricity from solar PV and LFG or the sale of processed LFG. The Company purchases the LFG that otherwise would be combusted or vented, processes it, and either sells it or uses it in its energy plants. The Company has also designed and built, as well as owns, operates and maintains, plants that take biogas generated in the anaerobic digesters of wastewater treatment plants and turns it into renewable natural gas that is either used to generate energy on-site or that can be sold through the nation’s natural gas pipeline grid. Where the Company owns and operates energy producing assets, the Company typically enters into a long-term power purchase agreement (“PPA”) for the sale of the energy. Many of the Company’s energy assets also produce environmental attributes, including renewable energy credits (“RECs”) and Renewable Identification Numbers (“RINs”). In most cases, the Company sells these attributes under separate agreements with third parties other than the PPA customer. The Company recognizes revenues from the sale and delivery of the energy output from renewable energy plants, over time as produced and delivered to the customer, in accordance with specific PPA contract terms. Environmental attributes revenue is recognized at a point in time, when the environmental attributes are transferred to the customer in accordance with the transfer protocols of the environmental attributes market that the Company operates in. In those cases where environmental attributes are sold to the same customer as the energy output, the Company records revenue monthly for both the energy output and the environmental attribute output, as generated and delivered to the customer. = Other - The Company’s service and product offerings also include integrated-PV and consulting and enterprise energy management services. The Company recognizes revenues from delivery of engineering, consulting services and enterprise energy management services over time. For the sale of solar materials, revenue is recognized at a point in time when the Company has transferred physical control of the asset to the customer upon shipment. To the extent a contract is deemed to have multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. Billings in excess of cost and estimated earnings represents advanced billings on certain construction contracts. Costs and estimated earnings in excess of billings represent certain amounts under customer contracts that were earned and billable but not invoiced. See Note 3 for additional information on the Company’s revenues. Cost of Revenues Cost of revenues include the cost of labor, materials, equipment, subcontracting and outside engineering that are required for the development and installation of projects, as well as preconstruction costs, sales incentives, associated travel, inventory obsolescence charges, amortization of intangible assets related to customer contracts and, if applicable, costs of procuring financing. A majority of the Company’s contracts have fixed price terms; however, in some cases the Company negotiates protections, such as a cost-plus structure, to mitigate the risk of rising prices for materials, services and equipment. Cost of revenues also include the costs of maintaining and opera |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table provides information about disaggregated revenue by line of business, reportable segments, and geographical region for the three months ended March 31, 2019 and 2018. US Regions U.S. Federal Canada Non-Solar DG All Other Total Line of Business Three Months Ended March 31, 2019 Project revenue $ 45,704 $ 32,353 $ 5,234 $ 1,074 $ 3,067 $ 87,432 O&M revenue 3,318 9,858 — 2,035 — 15,211 Energy assets 6,021 643 320 17,699 302 24,985 Other 554 203 1,594 422 19,711 22,484 Total revenues $ 55,597 $ 43,057 $ 7,148 $ 21,230 $ 23,080 $ 150,112 Three months ended March 31, 2018 Project revenue $ 65,440 $ 37,838 $ 6,936 $ 899 $ 570 $ 111,683 O&M revenue 3,895 9,178 19 1,996 — 15,088 Energy assets 4,981 769 366 15,114 264 21,494 Other 375 — 1,583 108 17,079 19,145 Total revenues $ 74,691 $ 47,785 $ 8,904 $ 18,117 $ 17,913 $ 167,410 Geographical Regions Three Months Ended March 31, 2019 United States $ 55,597 $ 43,057 $ 702 $ 21,230 $ 18,647 $ 139,233 Canada — — 6,446 — 65 6,511 Other — — — — 4,368 4,368 Total revenues $ 55,597 $ 43,057 $ 7,148 $ 21,230 $ 23,080 $ 150,112 Three months ended March 31, 2018 United States $ 74,691 $ 47,785 $ 520 $ 18,117 $ 16,348 $ 157,461 Canada — — 8,384 — 55 8,439 Other — — — — 1,510 1,510 Total revenues $ 74,691 $ 47,785 $ 8,904 $ 18,117 $ 17,913 $ 167,410 Contract Balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: March 31, 2019 December 31, 2018 Accounts receivable, net $ 81,896 $ 85,985 Accounts receivable retainage, net 14,762 13,516 Contract Assets: Costs and estimated earnings in excess of billings 92,264 86,842 Contract Liabilities: Billings in excess of cost and estimated earnings 31,483 30,706 March 31, 2018 January 1, 2018 Accounts receivable, net $ 93,622 $ 85,121 Accounts receivable retainage, net 19,869 17,484 Contract Assets: Costs and estimated earnings in excess of billings 64,064 95,658 Contract Liabilities: Billings in excess of cost and estimated earnings 29,500 27,248 Accounts receivable retainage represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice. The Company classifies as a current asset those retainages that are expected to be billed in the next twelve months. Unbilled revenue, presented as costs and estimated earnings in excess of billings, represent amounts earned and billable that were not invoiced at the end of the fiscal period. Contract assets represent the Company’s rights to consideration in exchange for services transferred to a customer that have not been billed as of the reporting date. The Company’s rights to consideration are generally unconditional at the time its performance obligations are satisfied. At the inception of a contract, the Company expects the period between when it satisfies its performance obligations, and when the customer pays for the services, will be one year or less. As such, the Company has elected to apply the practical expedient which allows the Company to not adjust the promised amount of consideration for the effects of a significant financing component, when a financing component is present. When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. Such deferred revenue typically results from billings in excess of costs incurred and advance payments received on project contracts. As of March 31, 2019 , the Company classified $6,129 as a non-current liability, included in other liabilities on the condensed consolidated balance sheets, for those performance obligations expected to be completed beyond the next twelve months. The increase in contract assets for the three months ended March 31, 2019 was primarily due to revenue recognized of approximately $90,344 , offset in part by billings of approximately $90,895 . The increase in contract liabilities was primarily driven by the receipt of advance payments from customers, and related billings, exceeding reductions from recognition of revenue as performance obligations were satisfied. For the three months ended March 31, 2019 , the Company recognized revenue of $24,095 , and billed customers $18,929 , that was previously included in the beginning balance of contract liabilities. Changes in contract liabilities are also driven by reclassifications to or from contract assets as a result of timing of customer payments. The decrease in contract assets for the three months ended March 31, 2018 was primarily due to billings of approximately $120,072 , offset in part by revenue recognized of $87,440 . The change in contract liabilities was primarily driven by the receipt of advance payments from customers, and related billings, exceeding reductions from recognition of revenue as performance obligations were satisfied. For the quarter ended March 31, 2018, the Company recognized revenue of $17,843 , and billed customers $16,678 , that was previously included in the beginning balance of contract liabilities. Changes in contract liabilities are also driven by reclassifications to or from contract assets as a result of timing of customer payments. Contracts are often modified for a change in scope or other requirements. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of the Company’s contract modifications are for goods or services that are not distinct from the existing performance obligations. The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or decrease) on a cumulative catchup basis. Performance obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Performance obligations are satisfied as of a point in time or over time and are supported by contracts with customers. For most of the Company’s contracts, there are multiple promises of goods or services. Typically, the Company provides a significant service of integrating a complex set of tasks and components such as design, engineering, construction management, and equipment procurement for a project contract. The bundle of goods and services are provided to deliver one output for which the customer has contracted. In these cases, the Company considers the bundle of goods and services to be a single performance obligation. The Company may also promise to provide distinct goods or services within a contract, such as a project contract for installation of energy conservation measures and post-installation O&M services. In these cases the Company separates the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Backlog - The Company’s remaining performance obligations (hereafter referred to as “backlog”) represent the unrecognized revenue value of the Company’s contract commitments. The Company’s backlog may vary significantly each reporting period based on the timing of major new contract commitments and the backlog may fluctuate with currency movements. In addition, our customers have the right, under some circumstances, to terminate contracts or defer the timing of the Company’s services and their payments to us. At March 31, 2019 , the Company had backlog of approximately $1,674,600 . Approximately 27% of our March 31, 2019 backlog is anticipated to be recognized as revenue in the next twelve months and the remaining, thereafter. The Company has applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed. Contract acquisition costs: The Company accounts for certain acquisition cost over the life of the contract, consisting primarily of commissions when paid. Commission costs are incurred commencing at contract signing. Commission costs are allocated across all performance obligations and deferred and amortized over the contract term on a progress towards completion basis. For contracts that have a duration of less than one year, the Company follows a practical expedient and expenses these costs when incurred. During the three months ended March 31, 2019 and 2018, the amortization of commission costs related to contracts were not material and have been included in the accompanying condensed consolidated statements of income. As discussed in Note 2, the Company capitalizes costs incurred related to the development of projects prior to contract signing as it is partial fulfillment of its performance obligations . During the three months ended March 31, 2019 and 2018, $2,777 and $2,440 , respectively, of project development costs were recognized in the condensed consolidated statements of income on projects that converted to customer contracts. No impairment charges in connection with the Company’s commission costs or project development costs were recorded during the periods ended March 31, 2019 and 2018. |
Business Acquisitions and Relat
Business Acquisitions and Related Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions and Related Transactions | BUSINESS ACQUISITIONS AND RELATED TRANSACTIONS The Company accounts for acquisitions using the acquisition method in accordance with ASC 805, Business Combinations. The purchase price for each has been allocated to the assets based on their estimated fair values at the date of each acquisition as set forth in the table below. The excess purchase price over the estimated fair value of the net assets, which are calculated using level 3 inputs per the fair value hierarchy as defined in Note 10, acquired has been recorded as goodwill. Intangible assets, if identified, have been recorded and are being amortized over periods ranging from one to fifteen years. See Note 5 for additional information. Determining the fair value of certain assets and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions. Certain amounts below are provisional based on our best estimates using information available as of the reporting date. The Company is waiting for information to become available to finalize its valuation of certain elements of these transactions. Specifically, the assigned values for energy assets, intangibles, and goodwill are provisional in nature and subject to change upon the completion of the final valuation of such elements. In January 2019, the Company completed an acquisition of a Massachusetts based solar operations and maintenance firm for consideration of $1,279 . The final purchase price is subject to a net working capital adjustment, dependent on the level of working capital at the acquisition date, that has not been finalized yet. The pro-forma effects of this acquisition on our operations are not material. A summary of the cumulative consideration paid and the allocation of the purchase price of all of the acquisitions in each respective period is as follows: 2019 2018 Accounts receivable $ 150 $ 1,015 Prepaid expenses and other current assets 2 12 Property and equipment and energy assets 315 — Intangibles 500 680 Goodwill 406 2,845 Accounts payable 32 67 Billings in excess of cost and estimated earnings 62 — Purchase price $ 1,279 $ 4,619 Total, net of cash received $ 1,279 $ 4,619 Debt assumed $ — $ — Total fair value of consideration $ 1,279 $ 4,619 The results of the acquired assets since the dates of the acquisitions have been included in the Company’s operations as presented in the accompanying condensed consolidated statements of income, condensed consolidated statements of comprehensive income and condensed consolidated statements of cash flows. For the three months ended March 31, 2019, in order to expand its portfolio of energy assets, the Company acquired 3 solar projects from a developer and is under definitive agreement to acquire 4 additional solar projects. The Company has concluded that in accordance with ASC 805, Business Combinations, these acquisitions did not constitute a business as the assets acquired in each case are considered a single asset or group of similar assets that made up substantially all of the fair market value of the acquisitions. See Note 6 for additional disclosures on these asset acquisitions. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The changes in the carrying value of goodwill attributable to each reportable segment are as follows: U.S. Regions U.S. Federal Canada Other Total Balance, December 31, 2018 $ 26,370 $ 4,609 $ 3,217 $ 24,136 $ 58,332 Goodwill acquired during the year 406 — — — 406 Re-measurement adjustment — (113 ) — — (113 ) Currency effects — — 68 142 210 Balance, March 31, 2019 $ 26,776 $ 4,496 $ 3,285 $ 24,278 $ 58,835 Accumulated Goodwill Impairment Balance, December 31, 2018 $ — $ — $ (1,016 ) $ — $ (1,016 ) Accumulated Goodwill Impairment Balance, March 31, 2019 $ — $ — $ (1,016 ) $ — $ (1,016 ) The Company completed one acquisition during the three months ended March 31, 2019 , which resulted in a $406 increase in goodwill as disclosed in Note 4. Since the Company’s annual goodwill impairment test there have been no events that would have triggered a need for an interim impairment test. Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. The Company annually assesses whether a change in the life over which the Company’s assets are amortized is necessary, or more frequently if events or circumstances warrant. Acquired intangible assets other than goodwill that are subject to amortization include customer contracts, customer relationships, non-compete agreements, technology and trade names. Customer contracts are amortized ratably over the period of the acquired customer contracts ranging in periods from approximately one to five years. All other acquired intangible assets are amortized over periods ranging from approximately four to fifteen years, as determined by the nature of the respective intangible asset. As discussed in Note 4, the Company completed an acquisition in January 2019 which resulted in a $500 increase in customer relationships, which will be amortized over an 8 year period. The gross carrying amount and accumulated amortization of intangible assets are as follows: As of March 31, As of December 31, 2019 2018 Gross Carrying Amount Customer contracts $ 7,868 $ 7,818 Customer relationships 12,686 12,082 Non-compete agreements 3,028 3,013 Technology 2,720 2,710 Trade names 542 541 26,844 26,164 Accumulated Amortization Customer contracts 7,740 7,668 Customer relationships 10,571 10,302 Non-compete agreements 3,028 3,013 Technology 2,668 2,651 Trade names 527 526 24,534 24,160 Intangible assets, net $ 2,310 $ 2,004 Amortization expense related to customer contracts is included in cost of revenues in the condensed consolidated statements of income. Amortization expense related to all other acquired intangible assets is included in selling, general and administrative expenses in the condensed consolidated statements of income. Amortization expense for the three months ended March 31, 2019 and 2018 related to customer contracts was $23 and $0 , respectively. Amortization expense for the three months ended March 31, 2019 and 2018 related to all other acquired intangible assets and was $190 and $253 , respectively. |
Energy Assets Energy Assets
Energy Assets Energy Assets | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Energy Assets | ENERGY ASSETS Energy assets consist of the following: March 31, December 31, 2019 2018 Energy assets $ 644,978 $ 619,708 Less - accumulated depreciation and amortization (168,396 ) (159,756 ) Energy assets, net $ 476,582 $ 459,952 Included in energy assets are financing lease assets and accumulated depreciation of financing lease assets. Financing lease assets consist of the following: March 31, 2019 December 31, 2018 Financing lease assets $ 42,402 $ 42,402 Less - accumulated depreciation and amortization (4,671 ) (4,139 ) Financing lease assets, net $ 37,731 $ 38,263 Depreciation and amortization expense on the above energy assets, net of deferred grant amortization, for the three months ended March 31, 2019 and 2018 was $8,407 and $6,312 , respectively, and is included in cost of revenues in the accompanying condensed consolidated statements of income. Included in these depreciation and amortization expense totals are depreciation and amortization expense on financing lease assets of $532 and $534 for the three months ended March 31, 2019 and 2018, respectively. For the three months ended March 31, 2019 , in order to expand its portfolio of energy assets, the Company acquired several energy projects, which did not constitute businesses under ASU 2017-01, Business Combinations. The Company acquired and closed on 3 solar projects from a developer for a total purchase price of $2,529 . The purchase price included deferred consideration of $1,425 that will be paid upon final completion of the respective projects throughout 2019. As of March 31, 2019, the Company has paid $1,104 to the developers of the projects. The Company also has a definitive agreement to purchase an additional 4 solar projects from a developer for a total purchase price of $4,556 , of which, the Company has paid $456 to the developers of the projects. As of March 31, 2019, the Company has remaining deferred purchase price consideration on previously closed projects of $4,783 . As of March 31, 2019, the Company had $886 in ARO assets recorded in project assets and $908 in ARO liabilities recorded in accrued expenses and other current liabilities and other liabilities. During the three months ended March 31, 2019, the Company recorded $11 of depreciation expense related to the ARO asset. During the three months ended March 31, 2019, the Company recorded $9 in accretion expense to the ARO liability, which is reflected in the accretion of ARO and contingent consideration on the condensed consolidated statements of cash flows. The Company’s current ARO liabilities relate to the removal of equipment and pipelines at certain renewable gas projects and obligations related to the decommissioning of certain solar facilities. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company recorded a provision for income taxes of $257 for the three months ended March 31, 2019 and a benefit for income taxes of $2,779 for the three months ended March 31, 2018 . The estimated annual effective tax rate is 8.2% for the three months ended March 31, 2019 compared to a (58.8)% estimated annual effective tax rate for the three months ended March 31, 2018 . The principal reason for the difference between the statutory rate and the estimated annual effective rate for 2019 were the effects of investment tax credits to which the Company is entitled from solar plants which have been placed into service or are forecasted to be placed into service during 2019. The principle reasons for the difference between statutory rate and the estimated annual effective tax rate for 2018 were the effects of a $ 3,800 benefit of the 2017 Section 179D deduction, which was extended in February 2018 and was included as tax deductions in 2018, and the use of investment tax credits to which the Company is entitled from owned plants. The investment tax credits and production tax credits to which the Company may be entitled fluctuate from year to year based on the cost of the renewable energy plants the Company places or expects to place in service and production levels at company owned facilities in that year. As part of the Bipartisan Budget Act signed into law on February 9, 2018 the Section 179D deduction for 2017 was retroactively extended. The Section 179D deduction expired on December 31, 2017 and has not been re-approved for tax years beginning after that date. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: Gross Unrecognized Tax Benefits Balance, December 31, 2018 $ 1,600 Additions for prior year tax positions — Settlements with tax authorities — Reductions of prior year tax positions — Balance, March 31, 2019 $ 1,600 At March 31, 2019 and December 31, 2018 , the Company had approximately $1,600 of total gross unrecognized tax benefits. At March 31, 2019 and December 31, 2018 , the Company had approximately $705 and $80 , respectively, of total gross unrecognized tax benefits (both net of the federal benefit on state amounts) representing the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), using the modified retrospective approach. The Company elected the package of practical expedients available in the standard and as a result, did not reassess the lease classification of existing contracts or leases or the initial direct costs associated with existing leases. The Company did not elect the hindsight practical expedient, and evaluated lease terms for existing leases. The Company has also elected the practical expedient to not separate lease components and non-lease components and will account for the leases as a single lease components for all classes of leases. As a result of the adoption of ASC 842, the Company recognized an increase in lease right-of-use assets of $31,639 , current portions of operating lease right-of-use liabilities of $5,084 and an increase to long-term portions of operating lease liabilities of $28,480 . There was no impact to the condensed consolidated statements of income or retained earnings for the adoption of ASC 842. No impairment was recognized on the right-of-use asset upon adoption. These adjustments are detailed as follows: As of January 1, 2019 As Reported 842 Adjustment Adjusted Balances Operating Leases: Operating lease right-of-use asset $ — $ 31,639 $ 31,639 Current portions of operating lease right-of-use liabilities — 5,084 5,084 Long-term portions of operating lease liabilities — 28,480 28,480 Total operating lease liabilities $ — $ 33,564 $ 33,564 Weighted-average remaining lease term 10 years Weighted-average discount rate 6.0 % Financing Leases: Energy assets, net $ 38,263 $ — $ 38,263 Current portions of long-term debt and financing lease liabilities 4,956 — 4,956 Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees 28,407 — 28,407 Total financing lease liabilities $ 33,363 $ — $ 33,363 Weighted-average remaining lease term 18 years Weighted-average discount rate 11.7 % The Company enters into a variety of operating lease agreements through the normal course of its business including certain administrative offices. The leases are long-term non-concealable real estate lease agreements, expiring at various dates through fiscal 2025. The agreements generally provide for fixed minimum rental payments and the payment of utilities, real estate taxes, insurance and repairs. The Company also leases certain land parcels related to our energy projects. The office and land leases make up a significant portion of the Company’s operating lease activity. Many of these leases have one or more renewal options that allow the Company, at it’s discretion, to renew the lease for six months to seven years . Only renewal options that the Company believed were likely to be exercised were included in our lease calculations. Many land leases include minimum lease payments that increase when the related project become operational. In these cases, the commercial operation date was estimated by the Company and used to calculate the estimated minimum lease payments. The Company also enters into leases for IT equipment and service agreements, automobiles, and other leases related to our construction projects such as equipment, mobile trailers and other temporary structures. These leases are either short-term in nature or immaterial. The Company will utilize the portfolio approach. A portion of the Company’s real estate leases are generally subject to annual changes in the Consumer Price Index (“CPI”). The Company utilized each lease’s minimum lease payments to calculate the lease balances upon transition. The subsequent increases in rent based on changes in CPI were excluded and will be excluded for future leases from the calculation of the lease balances, but will be recorded to the condensed consolidated statement of income as part of our operating lease costs. The Company has elected the practical expedient to not separate lease and non-lease components for existing leases for real-estate and land leases. Going forward if a lease has non-lease components the Company will allocate consideration based on price information in the agreement or, if this information is not available, the Company will make a good faith estimate based on available pricing information at the time. The discount rate was calculated using an incremental borrowing rate based on an assessment prepared by the Company based on financing rates on secured comparable notes with comparable terms and a synthetic credit rating calculated by a third party. The Company elected to apply the discount rate using the remaining lease term at the date of adoption. The Company has a number of leases that are classified as financing leases, which relate to transactions that are considered sale-leasebacks under ASC 840. Under ASC 842, these will be considered failed sale-leasebacks and will not qualify as sales. See Note 2 sale-leaseback section and Note 6 for additional information on the Company’s financing leases. Supplemental balance sheet information related to leases at March 31, 2019 are as follows: March 31, 2019 Operating Leases: Operating lease assets $ 30,350 Current operating lease liabilities 5,082 Long-term portions of operating lease liabilities 27,305 Total operating lease liabilities $ 32,387 Weighted-average remaining lease term 10 years Weighted-average discount rate 6.1 % Financing Leases: Energy assets, net $ 37,731 Current portions of long-term debt and financing lease liabilities 4,958 Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees 28,379 Total financing lease liability $ 33,337 Weighted-average remaining lease term 18 years Weighted-average discount rate 11.7 % The costs related to our leases for the three months ended March 31, 2019 are as follows: March 31, 2019 Operating Lease: Operating lease costs $ 1,838 Short-term lease costs 39 Financing Lease: Amortization expense 532 Interest on lease liabilities 949 Total lease costs $ 3,358 The Company’s estimated minimum future lease obligations under our leases are as follows: Operating Leases Financing Leases Year ended December 31, 2019 $ 5,218 $ 8,343 2020 6,476 7,881 2021 5,403 6,775 2022 4,938 5,173 2023 3,711 3,686 Thereafter 18,895 26,800 Total minimum lease payments $ 44,641 $ 58,658 Less: interest 12,254 25,321 Present value of lease liabilities $ 32,387 $ 33,337 The Company has determined that certain power purchase agreements contain a lease component in accordance with ASC 840, Leases. The Company recognized $2,224 of operating lease revenue under these agreements during the three months ended March 31, 2019, which was reflected in revenues on the condensed consolidated statements of income. As of May 2, 2019, the Company has signed one land lease with estimated undiscounted total lease payments of $535 going out to 2043 that are not reflected in the above lease disclosures. |
Leases | LEASES On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), using the modified retrospective approach. The Company elected the package of practical expedients available in the standard and as a result, did not reassess the lease classification of existing contracts or leases or the initial direct costs associated with existing leases. The Company did not elect the hindsight practical expedient, and evaluated lease terms for existing leases. The Company has also elected the practical expedient to not separate lease components and non-lease components and will account for the leases as a single lease components for all classes of leases. As a result of the adoption of ASC 842, the Company recognized an increase in lease right-of-use assets of $31,639 , current portions of operating lease right-of-use liabilities of $5,084 and an increase to long-term portions of operating lease liabilities of $28,480 . There was no impact to the condensed consolidated statements of income or retained earnings for the adoption of ASC 842. No impairment was recognized on the right-of-use asset upon adoption. These adjustments are detailed as follows: As of January 1, 2019 As Reported 842 Adjustment Adjusted Balances Operating Leases: Operating lease right-of-use asset $ — $ 31,639 $ 31,639 Current portions of operating lease right-of-use liabilities — 5,084 5,084 Long-term portions of operating lease liabilities — 28,480 28,480 Total operating lease liabilities $ — $ 33,564 $ 33,564 Weighted-average remaining lease term 10 years Weighted-average discount rate 6.0 % Financing Leases: Energy assets, net $ 38,263 $ — $ 38,263 Current portions of long-term debt and financing lease liabilities 4,956 — 4,956 Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees 28,407 — 28,407 Total financing lease liabilities $ 33,363 $ — $ 33,363 Weighted-average remaining lease term 18 years Weighted-average discount rate 11.7 % The Company enters into a variety of operating lease agreements through the normal course of its business including certain administrative offices. The leases are long-term non-concealable real estate lease agreements, expiring at various dates through fiscal 2025. The agreements generally provide for fixed minimum rental payments and the payment of utilities, real estate taxes, insurance and repairs. The Company also leases certain land parcels related to our energy projects. The office and land leases make up a significant portion of the Company’s operating lease activity. Many of these leases have one or more renewal options that allow the Company, at it’s discretion, to renew the lease for six months to seven years . Only renewal options that the Company believed were likely to be exercised were included in our lease calculations. Many land leases include minimum lease payments that increase when the related project become operational. In these cases, the commercial operation date was estimated by the Company and used to calculate the estimated minimum lease payments. The Company also enters into leases for IT equipment and service agreements, automobiles, and other leases related to our construction projects such as equipment, mobile trailers and other temporary structures. These leases are either short-term in nature or immaterial. The Company will utilize the portfolio approach. A portion of the Company’s real estate leases are generally subject to annual changes in the Consumer Price Index (“CPI”). The Company utilized each lease’s minimum lease payments to calculate the lease balances upon transition. The subsequent increases in rent based on changes in CPI were excluded and will be excluded for future leases from the calculation of the lease balances, but will be recorded to the condensed consolidated statement of income as part of our operating lease costs. The Company has elected the practical expedient to not separate lease and non-lease components for existing leases for real-estate and land leases. Going forward if a lease has non-lease components the Company will allocate consideration based on price information in the agreement or, if this information is not available, the Company will make a good faith estimate based on available pricing information at the time. The discount rate was calculated using an incremental borrowing rate based on an assessment prepared by the Company based on financing rates on secured comparable notes with comparable terms and a synthetic credit rating calculated by a third party. The Company elected to apply the discount rate using the remaining lease term at the date of adoption. The Company has a number of leases that are classified as financing leases, which relate to transactions that are considered sale-leasebacks under ASC 840. Under ASC 842, these will be considered failed sale-leasebacks and will not qualify as sales. See Note 2 sale-leaseback section and Note 6 for additional information on the Company’s financing leases. Supplemental balance sheet information related to leases at March 31, 2019 are as follows: March 31, 2019 Operating Leases: Operating lease assets $ 30,350 Current operating lease liabilities 5,082 Long-term portions of operating lease liabilities 27,305 Total operating lease liabilities $ 32,387 Weighted-average remaining lease term 10 years Weighted-average discount rate 6.1 % Financing Leases: Energy assets, net $ 37,731 Current portions of long-term debt and financing lease liabilities 4,958 Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees 28,379 Total financing lease liability $ 33,337 Weighted-average remaining lease term 18 years Weighted-average discount rate 11.7 % The costs related to our leases for the three months ended March 31, 2019 are as follows: March 31, 2019 Operating Lease: Operating lease costs $ 1,838 Short-term lease costs 39 Financing Lease: Amortization expense 532 Interest on lease liabilities 949 Total lease costs $ 3,358 The Company’s estimated minimum future lease obligations under our leases are as follows: Operating Leases Financing Leases Year ended December 31, 2019 $ 5,218 $ 8,343 2020 6,476 7,881 2021 5,403 6,775 2022 4,938 5,173 2023 3,711 3,686 Thereafter 18,895 26,800 Total minimum lease payments $ 44,641 $ 58,658 Less: interest 12,254 25,321 Present value of lease liabilities $ 32,387 $ 33,337 The Company has determined that certain power purchase agreements contain a lease component in accordance with ASC 840, Leases. The Company recognized $2,224 of operating lease revenue under these agreements during the three months ended March 31, 2019, which was reflected in revenues on the condensed consolidated statements of income. As of May 2, 2019, the Company has signed one land lease with estimated undiscounted total lease payments of $535 going out to 2043 that are not reflected in the above lease disclosures. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company also is involved in a variety of claims and other legal proceedings generally incidental to its normal business activities. While the outcome of any of these proceedings cannot be accurately predicted, the Company does not believe the ultimate resolution of any of these existing matters would have a material adverse effect on its financial condition or results of operations. Commitments as a Result of Acquisitions In May 2018, the Company completed an acquisition which provided for a $425 cash consideration holdback contingent upon the Company collecting certain acquired receivables. The contingent consideration will be paid twelve months from the completion of the acquisition and is recorded in the accrued expenses and other current liabilities line on the condensed consolidated balance sheets. In August 2018, the Company completed an acquisition which provided for a revenue earn-out contingent upon the acquired business meeting certain cumulative revenue targets over the next five years. The Company evaluated financial forecasts of the acquired business and concluded that the fair value of this earn-out is approximately $555 , which was subsequently increased to $625 at March 31, 2019 and is recorded in the other liabilities on the condensed consolidated balance sheets. The contingent consideration will be paid yearly, commencing in 2020, if any of the cumulative revenue targets are achieved and the fair value of the earn-out will be periodically re-evaluated and adjustments will be recorded as needed. See Note 10 for additional information. In November 2018, the Company completed an acquisition of certain lease options, which provided for a earn-out if the lease option is exercised and if certain financial metrics are achieved. The Company evaluated the acquired lease options and concluded that the fair-value of this contingent liability was approximately $363 , which was subsequently increased to $379 at March 31, 2019 and is recorded in accrued expenses and other current liabilities and other liabilities on the condensed consolidated balance sheets. Payments will be made when milestones are achieved. The contingent liability will be periodically re-evaluated and adjustments will be recorded as needed. See Note 10 for additional information. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT The Company recognizes its financial assets and liabilities at fair value on a recurring basis (at least annually). Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Three levels of inputs that may be used to measure fair value are as follows: Level 1: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. The following table presents the input level used to determine the fair values of the Company’s financial instruments measured at fair value on a recurring basis: Fair Value as of March 31, December 31, Level 2019 2018 Assets: Interest rate swap instruments 2 $ 285 $ 733 Commodity swap instruments 2 33 33 Total assets $ 318 $ 766 Liabilities: Interest rate swap instruments 2 $ 3,990 $ 3,187 Commodity swap instruments 2 70 70 Interest make-whole provisions 2 1,085 1,808 Contingent revenue earn-out 3 1,004 962 Total liabilities $ 6,149 $ 6,027 The fair value of the Company’s interest rate swaps was determined using cash flow analysis on the expected cash flow of the contract in combination with observable market-based inputs, including interest rate curves and implied volatilities. As part of this valuation, the Company considered the credit ratings of the counterparties to the interest rate swaps to determine if a credit risk adjustment was required. The fair value of the Company’s commodity swaps was determined using a cash flow analysis on the expected cash flow of the contract in combination with observable forward price inputs obtained from a third-party pricing source. As part of this valuation, the Company considered the credit ratings of the counterparties to the commodity swaps to determine if a credit risk adjustment was required. The fair value of the Company’s make-whole provisions were determined by comparing them against the rates of similar debt instruments under similar terms without a make-whole provision obtained from various highly rated third-party pricing sources. The fair value of the Company’s contingent consideration liabilities were determined by evaluating the acquired asset’s future financial forecasts and evaluating which, if any, of the cumulative revenue targets, financial metrics and/or milestones are likely to be met. The Company has classified contingent consideration related to certain acquisitions within Level 3 of the fair value hierarchy because the fair value is derived using significant unobservable inputs, which include discount rates and probability-weighted cash flows. The Company determined the fair value of its contingent consideration obligations based on a probability-weighted income approach derived from financial performance estimates and probability assessments of the attainment of certain targets. The Company establishes discount rates to be utilized in its valuation models based on the cost to borrow that would be required by a market participant for similar instruments. In determining the probability of attaining certain technical, financial and operation targets, the Company utilizes data regarding similar milestone events from our own experience, while considering the inherent difficulties and uncertainties in developing a product. On a quarterly basis, the Company reassesses the probability factors associated with the financial, operational and technical targets for its contingent consideration obligations. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. The key assumptions as of March 31, 2019 related to the contingent consideration from a previous acquisition of certain assets, used in the model include a discount rate of 18% for purposes of discounting the low and base case scenarios associated with achievement of the financial based earn-out. The probabilities assigned to these scenarios were 50% for both the low and base case scenarios. An increase or decrease in the probability of achievement of any scenario could result in a significant increase or decrease to the estimated fair value of the contingent consideration liability. The key assumptions as of March 31, 2019, related to the contingent consideration from a previous acquisition of certain lease options, used in the model include a discount rate of 18% for purposes of discounting the low, base and high case scenarios associated with achievement of the financial based earn-out. The probabilities assigned to these scenarios were 20% for the low case, 75% for the base case and 5% for the high case. An increase or decrease in the probability of achievement of any scenario could result in a significant increase or decrease to the estimated fair value of the contingent consideration liability. The following table sets forth a summary of changes in fair value of contingent liabilities classified as Level 3 for the three months ended March 31, 2019: Three Months Ended March 31, 2019 Contingent consideration liabilities balance at December 31, 2018 $ 962 Changes in the fair value of contingent consideration obligation 42 Contingent consideration liabilities balance at March 31, 2019 $ 1,004 The fair value of financial instruments is determined by reference to observable market data and other valuation techniques, as appropriate. The only category of financial instruments where the difference between fair value and recorded book value is notable is long-term debt. At March 31, 2019 and December 31, 2018 the fair value of the Company’s long-term debt was estimated using discounted cash flows analysis, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements which are considered to be level two inputs. There have been no transfers in or out of level two or level three financial instruments for the three months ended March 31, 2019 and the year ended December 31, 2018. Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt, excluding financing leases, are as follows: As of March 31, 2019 As of December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value Long-term debt (Level 2) $ 219,678 $ 219,408 $ 211,823 $ 212,687 The Company is also required periodically to measure certain other assets at fair value on a nonrecurring basis, including long-lived assets, goodwill and other intangible assets. There were no assets recorded at fair value on a non-recurring basis at March 31, 2019 or December 31, 2018. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES At March 31, 2019 and December 31, 2018, the following table presents information about the fair value amounts of the Company’s derivative instruments is as follows: Derivatives as of March 31, 2019 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 255 Other assets $ 703 Interest rate swap contracts Other liabilities 3,990 Other liabilities $ 3,187 Derivatives Not Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 30 Other assets $ 30 Commodity swap contracts Other assets 33 Other assets 33 Commodity swap contracts Other liabilities 70 Other liabilities $ 70 Interest make-whole provisions Other liabilities 1,085 Other liabilities 1,808 All but four of the Company’s freestanding derivatives were designated as hedging instruments as of March 31, 2019 and December 31, 2018. The following tables present information about the effects of the Company’s derivative instruments on the condensed consolidated statements of income and condensed consolidated statements of comprehensive income: Location of Gain Recognized in Net Income Amount of Gain Recognized in Net Income Three Months Ended March 31, 2019 2018 Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ (49 ) $ (102 ) Derivatives not Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ — (12 ) Commodity swap contracts Other expenses, net $ — — Interest make-whole provision Other expenses, net $ (723 ) $ — Three Months Ended March 31, 2019 Derivatives Designated as Hedging Instruments: Accumulated loss in AOCI at the beginning of the period $ (1,824 ) Cumulative impact from the adoption of ASU No. 2018-02 (217 ) Unrealized gain recognized in AOCI (949 ) Gain reclassified from AOCI to other expenses, net 49 Accumulated loss in AOCI at the end of the period $ (2,941 ) In the third quarter of 2018, the Company adopted ASU 2017-12, which resulted in an increase to retained earnings and accumulated other comprehensive loss of $432 to remove the cumulative effect of hedging ineffectiveness previously recognized in earnings, as of January 1, 2018, for contracts designated as hedging instruments that were outstanding at the beginning of the third quarter 2018. Upon adoption of the ASU, the impact to reclassify the ineffectiveness of the Company’s hedge instruments in connection with prior periods was recorded. Accordingly, the Company’s condensed consolidated statement of changes in redeemable non-controlling interests and stockholders’ equity for the three months ended March 31, 2018 reflect the adoption of ASU 2017-12 . The following tables present a listing of all the Company’s active derivative instruments as of March 31, 2019 : Active Interest Rate Swap Effective Date Expiration Date Initial Notional Amount ($) Status 11-Year, 5.77% Fixed October 2018 October 2029 $ 9,200 Designated 15-Year, 3.19% Fixed June 2018 June 2033 10,000 Designated 3-Year, 2.46% Fixed March 2018 December 2020 17,100 Not Designated 10-Year, 4.74% Fixed June 2017 December 2027 14,100 Designated 15-Year, 3.26% Fixed February 2023 December 2038 14,084 Designated 7-Year, 2.19% Fixed February 2016 February 2023 20,746 Designated 8-Year, 3.70% Fixed March 2020 June 2028 14,643 Designated 8-Year, 3.70% Fixed March 2020 June 2028 10,734 Designated 8-Year, 1.71% Fixed October 2012 March 2020 9,665 Designated 8-Year, 1.71% Fixed October 2012 March 2020 7,085 Designated 15-Year, 5.30% Fixed February 2006 February 2021 3,256 Designated 15.5-Year, 5.40% Fixed September 2008 March 2024 13,081 Designated Active Commodity Swap Effective Date Expiration Date Initial Notional Amount (Volume) Commodity Measurement Status 1-Year, $2.84 MMBtu Fixed May 2018 April 2019 323,390 MMBtus Not Designated 1-Year, $2.68 MMBtu Fixed May 2019 April 2020 437,004 MMBtus Not Designated 1-Year, $2.70 MMBtu Fixed May 2020 April 2021 435,810 MMBtus Not Designated Other Derivatives Classification Effective Date Expiration Date Fair Value ($) Interest make-whole provisions Liability June/August 2018 December 2038 $ 1,085 |
Investment Funds And Other Vari
Investment Funds And Other Variable Interest Entities | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Investment Funds And Other Variable Interest Entities | INVESTMENT FUNDS AND OTHER VARIABLE INTEREST ENTITIES Investment Funds In each of September 2015, June 2017, June 2018 and October 2018, the Company formed an investment fund with a different third party investor which granted the applicable investor ownership interests in the net assets of certain of the Company’s renewable energy project subsidiaries. The Company currently has four such investment funds each with a different third party investor. The Company consolidates the investment funds, and all inter-company balances and transactions between the Company and the investment funds are eliminated in its condensed consolidated financial statements. The Company determined that the investment funds meet the definition of a VIE. The Company uses a qualitative approach in assessing the consolidation requirement for VIEs that focuses on determining whether the Company has the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and whether the Company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company has considered the provisions within the contractual arrangements that grant it power to manage and make decisions that affect the operation of these VIEs, including determining the solar energy systems and associated long term customer contracts to be sold or contributed to the VIEs, and installation, operation and maintenance of the solar energy systems. The Company considers that the rights granted to the other investors under the contractual arrangements are more protective in nature rather than participating rights. As such, the Company has determined it is the primary beneficiary of the VIEs for all periods presented. The Company evaluates its relationships with VIEs on an ongoing basis to ensure that it continues to be the primary beneficiary. Under the related agreements, cash distributions of income and other receipts by the funds, net of agreed-upon expenses and estimated expenses, tax benefits and detriments of income and loss, and tax benefits of tax credits, are assigned to the funds’ investor and Company’s subsidiaries as specified in contractual arrangements. Certain of these arrangements have call and put options to acquire the investor’s equity interest as specified in the contractual agreements. See Note 13 for additional information on the call and put options. A summary of amounts related to the investment funds in the Company’s condensed consolidated balance sheets is as follows: March 31, December 31, 2019 (1) 2018 (1) Cash $ 1,355 $ 1,255 Restricted cash 156 156 Accounts receivable 272 374 Costs and estimated earnings in excess of billings 758 498 Prepaid expenses and other current assets 190 190 Energy assets, net 123,092 122,641 Operating lease assets 6,124 — Other assets 1,624 1,613 Accounts payable 169 234 Accrued liabilities 3,672 4,146 Current operating lease liabilities 84 — Current portions of long-term 2,263 1,712 Long-term debt, net of deferred financing costs 26,104 26,461 Long-term operating lease liabilities 6,271 — Other long-term liabilities 1,336 2,131 (1) The amounts in the above table are reflected in parenthetical references on the Company’s condensed consolidated balance sheet. See the Company’s condensed consolidated balance sheets for additional information. Other Variable Interest Entities The Company follows guidance on the consolidation of VIEs that requires companies to utilize a qualitative approach to determine whether it is the primary beneficiary of a VIE. The process for identifying the primary beneficiary of a VIE requires consideration of the factors that indicate a party has the power to direct the activities that most significantly impact the joint venture's economic performance, including powers granted to the joint venture's program manager, powers contained in the joint venture governing board and, to a certain extent, a company's economic interest in the joint venture. The Company analyzes its joint ventures and classifies them as either: • a VIE that must be consolidated because the Company is the primary beneficiary or the joint venture is not a VIE and the Company holds the majority voting interest with no significant participative rights available to the other partners; or • a VIE that does not require consolidation and is treated as an equity method investment because the Company is not the primary beneficiary or the joint venture is not a VIE and the Company does not hold the majority voting interest. The Company executes certain contracts jointly with third parties through various forms of joint ventures. Although the joint ventures own and hold the contracts with the clients, the services required by the contracts are typically performed by the Company and the Company’s joint venture partners, or by other subcontractors under subcontracting agreements with the joint ventures. Many of these joint ventures are formed for a specific project. The assets of the Company’s joint ventures generally consist almost entirely of cash and land, and the liabilities of our joint ventures generally consist almost entirely of amounts due to the joint venture partners. Many of the joint ventures are deemed to be VIEs because they lack sufficient equity to finance the activities of the joint venture. In January 2019, the Company entered into a joint venture with one other party to co-own an entity whose purpose is owning and leasing a parcel of land and attached structures to third-party entities. The joint venture has no employees and is controlled by the board of directors made up of representatives from both companies. Prior to January 2019, the Company had determined it was the primary beneficiary of the VIE and fully consolidated the entity. Upon the formation of the joint venture, the Company determined it was no longer the primary beneficiary, based on the assessment of considerations referenced above, and deconsolidated the VIE and recorded the Company’s investment in the joint venture as an equity method investment. With the deconsolidation of the VIE and the recognition of the equity method investment the Company recognized a gain of $2,160 in operating income and recorded an equity method investment of $1,361 in other assets. In addition, the Company has loaned the joint venture $1,506 and made an initial contribution at its formation in exchange for 50% of the shares in the joint venture. Unconsolidated joint ventures are accounted for under the equity method. For those joint ventures, the Company's investment balances for the joint venture are included in other assets on the condensed consolidated balance sheet and the Company’s pro rata share of net income or loss is included in operating income. The Company’s investments in equity method joint ventures on the condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 was a net asset of $1,361 and $0 , respectively. During the three months ended March 31, 2019, the Company recognized no income or expense from equity method joint ventures. |
Non-controlling Interests and E
Non-controlling Interests and Equity | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests and Equity | NON-CONTROLLING INTERESTS AND EQUITY Redeemable Non-controlling Interests The Company’s wholly owned subsidiary with a membership interest in the investment fund formed in the third quarter of 2015 has the right, beginning on the fifth anniversary of the final funding of the variable rate construction and term loans due 2023 and extending for six months , to elect to require the non-controlling interest holder to sell all of its membership units to the Company’s wholly owned subsidiary, (the “Call Option”). The Company’s investment fund, which was formed in the third quarter of 2015, also includes a right, beginning on the sixth anniversary of the final funding and extending for one year , for the non-controlling interest holder to elect to require the Company’s wholly owned subsidiary to purchase all of its membership interests in the fund, (the “Put Option”). The Company’s wholly owned subsidiary with a membership interest in the investment fund formed in the second quarter of 2017 has the right, beginning on the fifth anniversary of the final funding of the non-controlling interest holder and extending for six months , to elect to require the non-controlling interest holder to sell all of its membership units to the Company’s wholly owned subsidiary, a call option. The Company’s investment fund formed in the second quarter of 2017 also includes a right, beginning on the sixth anniversary of the final funding and extending for one year , for the non-controlling interest holder to elect to require the Company’s wholly owned subsidiary to purchase all of its membership interests in the fund, a put option. The Company’s wholly owned subsidiary with a membership interest in the investment fund formed in the second quarter of 2018 has the right, beginning on the fifth anniversary of the investment fund’s final project being placed into service and extending for six months , to elect to require the non-controlling interest holder to sell all of its membership units to the Company’s wholly owned subsidiary, a call option. The Company’s investment fund formed in the second quarter of 2018 also includes a right, upon on the expiration of the call option and extending for six months , for the non-controlling interest holder to elect to require the Company’s wholly owned subsidiary to purchase all of its membership interests in the fund, a put option. The Company’s wholly owned subsidiary with a membership interest in the investment fund formed in the fourth quarter of 2018 has the right, beginning on the fifth anniversary on the last projects placed in-service date and extending for six months, to elect to require the non-controlling interest holder to sell all of its membership units to the Company’s wholly owned subsidiary, a call option. The Company’s investment fund formed in the fourth quarter of 2018 also includes a right, upon the expiration of the call option and extending for six months, for the non-controlling interest partner to elect to require the Company’s wholly owned subsidiary to purchase all of its membership interests in the fund, a put option. The purchase price for two of the investment funds investors’ interests under the call options is equal to the fair market value of such interest at the time the option is exercised. The purchase price for the other two investment funds investor’s interests under the call options is equal to the greater of (i) the fair market value of such interests at the time the option is exercised or (ii) 7% of the investors’ contributed capital balance at the time the option is exercisable. The call options are exercisable beginning on the date that specified conditions are met for each respective fund. None of the call options are expected to become exercisable prior to 2021. The purchase price for two of the funds investors’ interests in the investment funds under the put options is the lessor of fair market value at the time the option is exercised and a specified amount, ranging from $659 - $917 . The purchase price for the other two of the fund investors’ interest in the investment funds under the put options is the sum of (i) the fair market value at the time the option is exercised, and (ii) the closing costs incurred by the investor in connection with the exercise of the put option. The put options for the investment funds are exercisable beginning on the date that specified conditions are met for each respective fund. The put options are not expected to become exercisable prior to 2022. Because the put options represents redemption features that are not solely within the control of the Company, the non-controlling interests in these funds are presented outside of permanent equity. Redeemable non-controlling interests are reported using the greater of their carrying value at each reporting date (which is impacted by attribution under the HLBV method) or their estimated redemption value in each reporting period. At both March 31, 2019 and December 31, 2018 redeemable non-controlling interests were reported at their carrying value totaling $13,341 and $14,719 , respectively, as the carrying value at each reporting period was greater than the estimated redemption value. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION The Company reports results under ASC 280, Segment Reporting. The Company’s reportable segments are U.S. Regions, U.S. Federal, Canada and Non-Solar Distributed Generation (“DG”). The Company’s U.S. Regions, U.S. Federal and Canada segments offer energy efficiency products and services, which include the design, engineering and installation of equipment and other measures to improve the efficiency and control the operation of a facility’s energy infrastructure, renewable energy solutions and services, which include the construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat or cooling from renewable sources of energy and O&M services. The Company’s Non-Solar DG segment sells electricity, processed renewable gas fuel, heat or cooling, produced from renewable sources of energy, other than solar, and generated by small-scale plants that the Company owns and O&M services for customer owned small-scale plants. The “All Other” category offers enterprise energy management services, consulting services and the sale of solar-PV energy products and systems which we refer to as integrated-PV. These segments do not include results of other activities, such as corporate operating expenses not specifically allocated to the segments. Certain reportable segments are an aggregation of operating segments. The accounting policies are the same as those described in the summary of significant accounting policies in Note 2. The reports of the Company’s chief operating decision maker do not include assets at the operating segment level. An analysis of the Company’s business segment information and reconciliation to the condensed consolidated financial statements is as follows: U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total Consolidated Three Months Ended March 31, 2019 Revenues $ 55,597 $ 43,057 $ 7,148 $ 21,230 $ 23,080 $ 150,112 Interest income 63 49 — 21 — 133 Interest expense 857 210 164 1,577 — 2,808 Depreciation and amortization of intangible assets 2,182 817 275 5,216 348 8,838 Unallocated corporate activity — — — — — (8,008 ) Income (loss) before taxes, excluding unallocated corporate activity (278 ) 5,621 (289 ) 1,381 4,701 11,136 Three Months Ended March 31, 2018 Revenues $ 74,691 $ 47,785 $ 8,904 $ 18,117 $ 17,913 $ 167,410 Interest income 1 20 — 35 — 56 Interest expense 1,191 241 484 1,081 — 2,997 Depreciation and amortization of intangible assets 1,330 672 289 4,064 379 6,734 Unallocated corporate activity — — — — — (6,869 ) Income (loss) before taxes, excluding unallocated corporate activity 4,618 5,817 (2,362 ) 2,610 912 11,595 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT As of March 31, 2019, the Company’s debt comprised the following: Commencement Date Maturity Date Acceleration Clause (2) Rate as of March 31, 2019 March 31, 2019 December 31, 2018 Senior secured credit facility, interest at varying rates monthly in arrears June 2015 June 2020 NA 4.85 % $ 52,972 $ 43,074 Variable rate term loan payable in semi-annual installments January 2006 February 2021 Yes 4.85 % 936 936 Variable rate term loan payable in semi-annual installments January 2006 June 2024 Yes 4.60 % 7,426 7,426 Term loan payable in quarterly installments March 2011 March 2021 Yes 7.25 % 1,464 1,464 Term loan payable in monthly installments October 2011 June 2028 NA 6.11 % 3,886 3,843 Variable rate term loan payable in quarterly installments October 2012 June 2020 NA 6.10 % 30,180 30,674 Variable rate term loan payable in quarterly installments September 2015 March 2023 NA 5.10 % 17,227 17,208 Term loan payable in quarterly installments August 2016 July 2031 NA 4.95 % 3,939 3,925 Term loan payable in quarterly installments March 2017 March 2028 NA 5.00 % 3,839 3,945 Term loan payable in monthly installments (3) April 2017 April 2027 NA 4.50 % 22,081 22,081 Term loan payable in quarterly installments April 2017 February 2034 NA 5.61 % 2,791 2,735 Variable rate term loan payable in quarterly installments June 2017 December 2027 NA 5.05 % 12,917 12,915 Variable rate term loan payable in quarterly installments February 2018 August 2022 Yes 10.10 % 18,042 21,475 Term loan payable in quarterly installments June 2018 December 2038 Yes 5.15 % 30,138 30,069 Variable rate term loan payable in semi-annual installments June 2018 June 2033 Yes 4.65 % 9,670 9,668 Variable rate term loan payable in monthly/quarterly installments October 2018 October 2029 Yes 4.995 % 9,077 9,072 Financing leases (1) 33,337 33,363 $ 259,922 $ 253,873 Less - current maturities 55,731 26,890 Less - deferred financing fees 7,177 7,821 Long-term debt and financing lease liabilities $ 197,014 $ 219,162 (1) Financing leases do not include approximately $25,321 in future interest payments (2) These agreements have acceleration causes that, in the event of default, as defined, the payee has the option to accelerate payment terms and make due the remaining principal and the required interest balance according to the agreement (3) As of March 31, 2019, this construction loan has an additional $2,742 commitment that could be drawn upon There were no new debt agreements in the three months ended March 31, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company, its subsidiaries in which the Company has a controlling financial interest and four investment funds formed to fund the purchase and operation of solar energy systems, which are consolidated with the Company as variable interest entities (“VIE”). The Company uses a qualitative approach in assessing the consolidation requirement for VIEs. This approach focuses on determining whether the Company has the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and whether the Company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. For all periods presented, the Company has determined that it is the primary beneficiary in all but one of its operational VIEs. The Company evaluates its relationships with the VIEs on an ongoing basis to ensure that it continues to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated. Gains and losses from the translation of all foreign currency financial statements are recorded in accumulated other comprehensive loss, net, within stockholders’ equity. The Company prepares its condensed consolidated financial statements in conformity with GAAP. |
Use of Estimates | Use of Estimates GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidating financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant estimates and assumptions used in these condensed consolidated financial statements relate to management’s estimates of final construction contract profit in accordance with accounting for long-term contracts, allowance for doubtful accounts, inventory reserves, realization of project development costs, fair value of derivative financial instruments, accounting for business acquisitions, stock-based awards, impairment of goodwill and long-lived assets, asset retirement obligations (“AROs”), leases, income taxes, self insurance reserves and potential liability in conjunction with certain commitments and contingencies. Actual results could differ from those estimates. The Company is self-insured for employee health insurance. The maximum exposure in fiscal year 2019 under the plan was $150 per covered participant, after which reinsurance takes effect. The liability for unpaid claims and associated expenses, including incurred but not reported claims, is determined by management and reflected in the Company’s condensed consolidated balance sheets in accrued expenses and other current liabilities. The liability is calculated based on historical data, which considers both the frequency and settlement amount of claims. The Company’s estimated accrual for this liability could be different than its ultimate obligation if variables such as the frequency or amount of future claims differ significantly from management’s assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents includes cash on deposit, overnight repurchase agreements and amounts invested in highly liquid money market funds. Cash equivalents consist of short term investments with original maturities of three months or less. The Company maintains accounts with financial institutions and the balances in such accounts, at times, exceed federally insured limits. This credit risk is divided among a number of financial institutions that management believes to be of high quality. The carrying amount of cash and cash equivalents approximates its fair value measured using level 1 inputs per the fair value hierarchy as defined in Note 10. |
Restricted Cash | Restricted Cash Restricted cash consists of cash and cash equivalents held in an escrow account in association with construction draws for energy savings performance contracts (“ESPC”), construction of energy assets, operations and maintenance (“O&M”) reserve accounts and cash collateralized letters of credit as well as cash required under term loans to be maintained in debt service reserve accounts until all obligations have been indefeasibly paid in full. These accounts are primarily invested in highly liquid money market funds. The carrying amount of the cash and cash equivalents in these accounts approximates its fair value measured using level 1 inputs per the fair value hierarchy as defined in Note 10. Restricted cash also includes funds held for clients, which represent assets that, based upon the Company’s intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds to third parties, primarily utility service providers, relating to the Company’s enterprise energy management services. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at the amount management expects to collect from outstanding balances. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based upon historical experience and management’s evaluation of outstanding accounts receivable. Bad debts are written off against the allowance when identified. |
Accounts Receivable Retainage | Accounts Receivable Retainage Accounts receivable retainage represents amounts due from customers, but where payments are withheld contractually until certain construction milestones are met. Amounts retained typically range from 5% to 10% of the total invoice. The Company classifies as a current asset those retainages that are expected to be billed in the next twelve months. |
Inventory | Inventory Inventories, which consist primarily of PV solar panels, batteries and related accessories, are stated at the lower of cost (“first-in, first-out” method) or net realizable value (determined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation). Provisions have been made to reduce the carrying value of inventory to the net realizable value. |
Prepaid Expenses | Prepaid Expenses Prepaid expenses consist primarily of short-term prepaid expenditures that will amortize within one year. |
Federal ESPC Receivable | Federal ESPC Receivable Federal ESPC receivable represents the amount to be paid by various federal government agencies for work performed and earned by the Company under specific ESPCs. The Company assigns certain of its rights to receive those payments to third-parties that provide construction and permanent financing for such contracts. Upon completion and acceptance of the project by the government, typically within 24 to 36 months of construction commencement, the assigned ESPC receivable from the government and corresponding ESPC liability are eliminated from the Company’s condensed consolidated financial statements. |
Project Development Costs | Project Development Costs The Company capitalizes as project development costs only those costs incurred in connection with the development of energy projects, primarily direct labor, interest costs, outside contractor services, consulting fees, legal fees and travel, if incurred after a point in time where the realization of related revenue becomes probable. Project development costs incurred prior to the probable realization of revenue are expensed as incurred. The Company classifies as a current asset those project development efforts that are expected to proceed to construction activity in the twelve months that follow. The Company periodically reviews these balances and writes off any amounts where the realization of the related revenue is no longer probable. |
Property and Equipment | Property and Equipment Property and equipment consists primarily of office and computer equipment, and is recorded at cost. Major additions and improvements are capitalized as additions to the property and equipment accounts, while replacements, maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Depreciation and amortization of property and equipment are computed on a straight-line basis over the following estimated useful lives: Asset Classification Estimated Useful Life Furniture and office equipment Five years Computer equipment and software costs Three to five years Leasehold improvements Lesser of term of lease or five years Automobiles Five years Land Unlimited Gains or losses on disposal of property and equipment are reflected in selling, general and administrative expenses in the condensed consolidated statements of income. |
Energy Assets | Energy Assets Energy assets consist of costs of materials, direct labor, interest costs, outside contract services, deposits and project development costs incurred in connection with the construction of small-scale renewable energy plants that the Company owns. These amounts are capitalized and amortized to cost of revenues in the Company’s condensed consolidated statements of income on a straight line basis over the lives of the related assets or the terms of the related contracts. The Company capitalizes interest costs relating to construction financing during the period of construction. Capitalized interest is included in energy assets, net in the Company’s condensed consolidated balance sheets. Capitalized interest is amortized to cost of revenues in the Company’s condensed consolidated statements of income on a straight line basis over the useful life of the associated energy asset. There was $788 and $994 of interest capitalized for the three months ended March 31, 2019 and 2018 , respectively. Routine maintenance costs are expensed in the current year’s condensed consolidated statements of income to the extent that they do not extend the life of the asset. Major maintenance, upgrades and overhauls are required for certain components of the Company’s assets. In these instances, the costs associated with these upgrades are capitalized and are depreciated over the shorter of the remaining life of the asset or the period until the next required major maintenance or overhaul. Included in energy assets are financing lease assets and accumulated depreciation of financing lease assets. For additional information see the Sale-Leaseback section below. Financing leases were referred to as capital leases under previous guidance. The Company evaluates its long-lived assets for impairment as events or changes in circumstances indicate the carrying value of these assets may not be fully recoverable. Examples of such triggering events applicable to the Company’s assets include a significant decrease in the market price of a long-lived asset or asset group or a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group. The Company evaluates recoverability of long-lived assets to be held and used by estimating the undiscounted future cash flows before interest associated with the expected uses and eventual disposition of those assets. When these comparisons indicate that the carrying value of those assets is greater than the undiscounted cash flows, the Company recognizes an impairment loss for the amount that the carrying value exceeds the fair value. The Company has applied for and received cash grant awards from the U.S. Treasury Department (the “Treasury”) under Section 1603 of the American Recovery and Reinvestment Act of 2009 (the “Act”). The Act authorized the Treasury to make payments to eligible persons who place in service qualifying renewable energy projects. The grants are paid in lieu of investment tax credits. All of the cash proceeds from the grants were used and recorded as a reduction in the cost basis of the applicable energy assets. If the Company disposes of the property, or the property ceases to qualify as specified energy property, within five years from the date the property is placed in service, then a prorated portion of the Section 1603 payment must be repaid. The Company last received a Section 1603 grant during the year ended December 31, 2014. No further Section 1603 grant payments are expected to be received as the program has expired. For tax purposes, the Section 1603 payments are not included in federal and certain state taxable income and the basis of the property is reduced by 50% of the payment received. |
Leases | Leases All significant lease arrangements are recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) as the Company recognizes lease expense for these leases as incurred over the lease term. ROU assets represent the Company’s right to use an underlying asset during the reasonably certain lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, which is updated annually or when a significant event occurs that would indicate a significant change in rates, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments related to initial direct cost and prepayments and excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for as a single component. |
Deferred Financing Fees | Deferred Financing Fees Deferred financing fees relate to the external costs incurred to obtain financing for the Company. Deferred financing fees are amortized over the respective term of the financing using the effective interest method, with the exception of the Company’s revolving credit facility and construction loans, as discussed in Note 15, for which deferred financing fees are amortized on a straight-line basis over the term of the agreement. Deferred financing fees are presented on the condensed consolidated balance sheets as a reduction to long-term debt and financing lease liabilities. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has classified as goodwill the amounts paid in excess of fair value of the net assets (including tax attributes) of companies acquired in purchase transactions. The Company has recorded intangible assets related to customer contracts, customer relationships, non-compete agreements, trade names and technology, each with defined useful lives. The Company assesses the impairment of goodwill and intangible assets that have indefinite lives on an annual basis (December 31 st ) and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The process of evaluating the potential impairment of goodwill requires significant judgment. The Company regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and projections of future results. T he Company estimates the reporting units fair value and compares it with the carrying value of the reporting unit, including goodwill. If the fair value is greater than the carrying value of its reporting unit, no impairment is recorded. Fair value is determined using both an income approach and a market approach. The estimates and assumptions used in the Company’s calculations include revenue growth rates, expense growth rates, expected capital expenditures to determine projected cash flows, expected tax rates and an estimated discount rate to determine present value of expected cash flows. These estimates are based on historical experiences, the Company’s projections of future operating activity and its weighted-average cost of capital. If the fair value is less than the carrying value, an impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The impairment charge would be recorded to earnings in the condensed consolidated statements of income. Judgment is required in determining whether an event has occurred that may impair the value of goodwill or identifiable intangible assets. Acquired intangible assets other than goodwill that are subject to amortization include customer contracts and customer relationships, as well as software/technology, trade names and non-compete agreements. The intangible assets are amortized over periods ranging from one to fifteen years from their respective acquisition dates. The Company evaluates its intangible assets for impairment consistent with, and part of, their long-lived assets evaluation, as discussed in Energy Assets above. |
Other Assets | Other Assets Other assets consist primarily of notes and contracts receivable due to the Company from various customers and non-current restricted cash. Other assets also include, the fair value of derivatives determined to be assets, the non-current portion of project development costs, accounts receivable retainages, sale-leaseback deferred loss and deferred contract costs. |
Asset Retirement Obligations | Asset Retirement Obligations The Company recognizes a liability for the fair value of required AROs when such obligations are incurred. The Company records, as liabilities, the fair value of the AROs on a discounted basis when incurred and reasonably estimated which is typically at the time the assets are installed or operating. Over time the liabilities increase due to the change in present value, and initial capitalized costs are depreciated over the useful life of the related assets. Upon satisfaction of the ARO conditions any difference between the recorded ARO liability and the actual retirement cost incurred is recognized as an operating gain or loss in the condensed consolidated statements of income. See Note 6 for additional disclosures on the Company’s AROs. |
Federal ESPC Liabilities | Federal ESPC Liabilities Federal ESPC liabilities, for both projects and energy assets, represent the advances received from third-parties under agreements to finance certain ESPC projects with various federal government agencies. For projects related to the construction or installation of certain energy savings equipment or facilities developed for the government customer, upon completion and acceptance of the project by the government, typically within 24 to 36 months of construction commencement, the ESPC receivable from the government and corresponding ESPC liability is eliminated from the Company’s condensed consolidated balance sheet. Until recourse to the Company ceases for the ESPC receivables transferred to the investor, upon final acceptance of the work by the government customer, the Company remains the primary obligor for financing received. For small-scale energy assets developed for the government customer that the Company owns and operates, upon final acceptance of the work by the government customer, the Company remains the primary obligor for financing received and the liability is eliminated from the Company’s condensed consolidated balance sheet as contract payments assigned by the customer are transferred to the investor. |
Sale-Leaseback | Sale-Leaseback During the first quarter of 2015, the Company entered into an agreement with an investor which gives the Company the option to sell and contemporaneously lease back solar photovoltaic (“solar PV”) projects. In September 2016, the Company amended this agreement to increase the investor’s commitment up to a maximum combined funding amount of $100,000 through June 30, 2017 on certain projects. In May 2017, the Company amended this agreement to extend the end date of the agreement to June 30, 2018. During the third quarter of 2018, the Company entered into an agreement with an investor which gives the Company the option to sell and contemporaneously lease back solar PV projects through August 2019 up to a maximum funding amount of $100,000 . During the three months ended March 31, 2019 and 2018 the Company entered into no sale-leaseback agreements. As part of these agreements, the Company is a party to a master lease agreement that provides for the sale of solar PV projects to a third-party investor and the simultaneous leaseback of the projects, which the Company then operates and maintains, recognizing revenue through the sale of the electricity and solar renewable energy credits generated by these projects. In sale-leaseback arrangements, the Company first determines whether the solar PV project under the sale-leaseback arrangement is “integral equipment.” A solar PV project is determined to be integral equipment when the cost to remove the project from its existing location, including the shipping and reinstallation costs of the solar PV project at the new site, including any diminution in fair value, exceeds 10% of the fair value of the solar PV project at the time of its original installation. When the leaseback arrangement expires, the Company has the option to purchase the solar PV project for the then fair market value or, in certain circumstances, renew the lease for an extended term. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company not to be integral equipment as the cost to remove the project from its existing location would not exceed 10% of its original fair value. For solar PV projects that the Company has determined not to be integral equipment, the Company then determines if the leaseback should be classified as a financing lease or an operating lease. All solar PV projects sold to date under the sale-leaseback program have been determined by the Company to be financing leases. For leasebacks classified as financing leases, the Company initially records a financing lease asset and financing lease obligation in its condensed consolidated balance sheet equal to the lower of the present value of the Company’s future minimum leaseback payments or the fair value of the solar PV project. For financing leasebacks, the Company defers any gain or loss, representing the excess or shortfall of cash received from the investor compared to the net book value of the asset in the Company’s condensed consolidated balance sheet at the time of the sale. The Company records the long term portion of any deferred gain or loss in other liabilities and other assets, respectively, and the current portion of any deferred gain and loss in accrued expenses and other current liabilities and prepaid expenses and other current assets, respectively, in its condensed consolidated balance sheet and amortizes the deferred amounts over the lease term in cost of revenues in its condensed consolidated statements of income. |
Other Liabilities | Other Liabilities Other liabilities consist primarily of deferred revenue related to multi-year operation and maintenance contracts which expire at various dates through 2033 . Other liabilities also include the fair value of derivatives, the long term portion of sale-leaseback deferred gains, ESPC energy asset liabilities, ARO liability, and certain contingent consideration. |
Revenue Recognition | Revenue Recognition The Company derives revenues from energy efficiency and renewable energy products and services. Energy efficiency products and services include the design, engineering, and installation of equipment and other measures to improve the efficiency, and control the operation, of a facility’s energy infrastructure. Renewable energy products and services include the construction of small-scale plants that produce electricity, gas, heat or cooling from renewable sources of energy, the sale of such electricity, gas, heat or cooling from plants that the Company owns, and the sale and installation of solar energy products and systems. Below is a description of the Company’s primary lines of business. Projects - The Company’s principal service relates to energy efficiency projects, which entails the design, engineering and installation of, and assisting with the arranging of financing for an ever-increasing array of innovative technologies and techniques to improve the energy efficiency, and control the operation, of a building’s energy- and water- consuming systems. In certain projects, the Company also designs and constructs for a customer a central plant or cogeneration system providing power, heat and/or cooling to a building, or a small-scale plant that produces electricity, gas, heat or cooling from renewable sources of energy. The Company recognizes revenue from the installation or construction of projects over time using the cost-based input method. The Company uses the total costs incurred on the the project relative to the total expected costs to satisfy the performance obligation. When the estimate on a contract indicates a loss, or claims against costs incurred reduce the likelihood of recoverability of such costs, the Company records the entire estimated loss in the period the loss becomes known. Operations & Maintenance (“O&M”) - After an energy efficiency or renewable energy project is completed, the Company often provides ongoing O&M services under a multi-year contract. These services include operating, maintaining and repairing facility energy systems such as boilers, chillers and building controls, as well as central power and other small-scale plants. For larger projects, the Company frequently maintains staff on-site to perform these services. Maintenance revenue is recognized using the input method to recognize revenue. In most cases, O&M fees are fixed annual fees. Because the Company is on-site to perform O&M services, the services are typically a distinct series of promises, and those services have the same pattern of transfer to the customer (i.e., evenly over time), the Company records the revenue on a straight-line basis. Some O&M service contract fees are billed on time expended. In those cases, revenue is recorded based on the time expended in that month. Energy Assets - The Company’s service offerings also includes the sale of electricity, processed renewable gas fuel, heat or cooling from the portfolio of assets that the Company owns and operates. The Company has constructed and is currently designing and constructing a wide range of renewable energy plants using landfill gas (“LFG”), wastewater treatment biogas, solar, biomass, other bio-derived fuels, wind and hydro sources of energy. Most of the Company’s renewable energy projects to date have involved the generation of electricity from solar PV and LFG or the sale of processed LFG. The Company purchases the LFG that otherwise would be combusted or vented, processes it, and either sells it or uses it in its energy plants. The Company has also designed and built, as well as owns, operates and maintains, plants that take biogas generated in the anaerobic digesters of wastewater treatment plants and turns it into renewable natural gas that is either used to generate energy on-site or that can be sold through the nation’s natural gas pipeline grid. Where the Company owns and operates energy producing assets, the Company typically enters into a long-term power purchase agreement (“PPA”) for the sale of the energy. Many of the Company’s energy assets also produce environmental attributes, including renewable energy credits (“RECs”) and Renewable Identification Numbers (“RINs”). In most cases, the Company sells these attributes under separate agreements with third parties other than the PPA customer. The Company recognizes revenues from the sale and delivery of the energy output from renewable energy plants, over time as produced and delivered to the customer, in accordance with specific PPA contract terms. Environmental attributes revenue is recognized at a point in time, when the environmental attributes are transferred to the customer in accordance with the transfer protocols of the environmental attributes market that the Company operates in. In those cases where environmental attributes are sold to the same customer as the energy output, the Company records revenue monthly for both the energy output and the environmental attribute output, as generated and delivered to the customer. = Other - The Company’s service and product offerings also include integrated-PV and consulting and enterprise energy management services. The Company recognizes revenues from delivery of engineering, consulting services and enterprise energy management services over time. For the sale of solar materials, revenue is recognized at a point in time when the Company has transferred physical control of the asset to the customer upon shipment. To the extent a contract is deemed to have multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. Billings in excess of cost and estimated earnings represents advanced billings on certain construction contracts. Costs and estimated earnings in excess of billings represent certain amounts under customer contracts that were earned and billable but not invoiced. See Note 3 for additional information on the Company’s revenues. Cost of Revenues Cost of revenues include the cost of labor, materials, equipment, subcontracting and outside engineering that are required for the development and installation of projects, as well as preconstruction costs, sales incentives, associated travel, inventory obsolescence charges, amortization of intangible assets related to customer contracts and, if applicable, costs of procuring financing. A majority of the Company’s contracts have fixed price terms; however, in some cases the Company negotiates protections, such as a cost-plus structure, to mitigate the risk of rising prices for materials, services and equipment. Cost of revenues also include the costs of maintaining and operating the small-scale renewable energy plants that the Company owns, including the cost of fuel (if any) and depreciation charges. |
Income Taxes | Income Taxes The Company provides for income taxes based on the liability method. The Company provides for deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities calculated using the enacted tax rates in effect for the year in which the differences are expected to be reflected in the tax return. The Company accounts for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors that include, but are not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity and changes in facts or circumstances related to a tax position. The Company evaluates uncertain tax positions on a quarterly basis and adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. The Company’s liabilities for uncertain tax positions can be relieved only if the contingency becomes legally extinguished through either payment to the taxing authority or the expiration of the statute of limitations, the recognition of the benefits associated with the position meet the “more-likely-than-not” threshold or the liability becomes effectively settled through the examination process. The Company considers matters to be effectively settled once the taxing authority has completed all of its required or expected examination procedures, including all appeals and administrative reviews; the Company has no plans to appeal or litigate any aspect of the tax position; and the Company believes that it is highly unlikely that the taxing authority would examine or re-examine the related tax position. The Company also accrues for potential interest and penalties related to unrecognized tax benefits in income tax expense. The Company has presented all deferred tax assets and liabilities as net and noncurrent on its condensed consolidated balance sheet as of March 31, 2019 and December 31, 2018, respectively. See Note 7 for additional information on the Company’s income taxes. |
Foreign Currency | Foreign Currency The local currency of the Company’s foreign operations is considered the functional currency of such operations. All assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at period-end exchange rates. Income and expense items are translated at average exchange rates prevailing during the period. Translation adjustments are accumulated as a separate component of stockholders’ equity. Foreign currency translation gains and losses are reported in the condensed consolidated statements of comprehensive income. Foreign currency transaction gains and losses are reported in the condensed consolidated statements of income. |
Financial Instruments | Financial Instruments Financial instruments consist of cash and cash equivalents, restricted cash, accounts and notes receivable, long-term contract receivables, accounts payable, accrued expenses, financing lease assets and liabilities, contingent considerations, short- and long-term borrowings, make-whole provisions, interest rate swaps, and commodity swaps. Because of their short maturity, the carrying amounts of cash and cash equivalents, restricted cash, accounts and notes receivable, accounts payable, accrued expenses, certain contingent considerations, and short-term borrowings approximate fair value. |
Fair Value Measurements | Fair Value Measurements The Company follows the guidance related to fair value measurements for all of its non-financial assets and non-financial liabilities, except for those recognized at fair value in the financial statements at least annually. These assets include goodwill and long-lived assets measured at fair value for impairment assessments, and non-financial assets and liabilities initially measured at fair value in a business combination. The Company’s financial instruments include cash and cash equivalents, restricted cash, accounts and notes receivable, long-term contract receivables, accounts payable, accrued expenses, financing lease assets and liabilities, contingent considerations, short and long-term borrowings, interest rate swaps, and commodity swaps. Because of their short maturity, the carrying amounts of cash and cash equivalents, restricted cash, accounts and notes receivable, accounts payable, and accrued expenses approximate fair value. The carrying value of long-term variable-rate debt approximates fair value. Fair value of the Company’s debt is based on quoted market prices or on rates available to the Company for debt with similar terms and maturities, which are level two inputs of the fair value hierarchy, as defined in Note 10. The Company accounts for its interest rate swaps and commodity swaps as derivative financial instruments in accordance with the related guidance. Under this guidance, derivatives are carried on the Company’s condensed consolidated balance sheets at fair value. The fair value of the Company’s interest rate and commodity swaps are determined based on observable market data in combination with expected cash flows for each instrument. The Company accounts for its make-whole provision features as embedded derivatives in accordance with related guidance. Under this guidance, the derivative is bifurcated from its host contract and recorded on the Company’s condensed consolidated balance sheets at fair value. The fair value of the Company’s make-whole provisions are determined based on observable market data and a with and without model. The consideration for the Company’s acquisitions often includes future payments that are contingent upon the occurrence of a particular event. The Company records a contingent consideration obligation for such contingent consideration payments at fair value on the acquisition date. The Company estimates the acquisition date fair value of contingent consideration obligations through valuation models that incorporate probability adjusted assumptions related to the achievement of the milestones and the likelihood of making related payments. Each period the Company revalues the contingent consideration obligations associated with the acquisition to fair value and records changes in the fair value as contingent consideration expense within the selling, general and administrative expenses line in our condensed consolidated statements of income. Increases or decreases in the fair value of the contingent consideration obligations can result from changes in assumed discount periods and rates, changes in the assumed timing and amount of revenue and expense estimates and changes in assumed probability with respect to the attainment of certain financial and operational metrics, among others. Significant judgment is employed in determining these assumptions as of the acquisition date and for each subsequent period. Accordingly, future business and economic conditions, as well as changes in any of the assumptions described above, can materially impact the amount of contingent consideration expense recorded in any given period. However, deferred consideration related to certain holdbacks and completion payments are considered short-term in nature. These amounts are recorded at full value and are only revalued if one of those underlying assumptions changes. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense Stock-based compensation expense results from the issuance of shares of restricted common stock and grants of stock options to employees, directors, outside consultants and others. The Company recognizes the costs associated with restricted stock option grants, and employee stock purchases made via the Company’s Employee Stock Purchase Plan (the “ESPP”) using the fair value recognition provisions of accounting standards codification (“ASC”) 718, Compensation - Stock Compensation (“ASC 718”) on a straight-line basis over the vesting period of the awards. Certain option grants have performance conditions that must be achieved prior to vesting and are expensed based on the expected achievement at each reporting period. Stock-based compensation expense is also recognized in association with employee stock purchases related to the Company’s employee stock purchase plan. Stock-based compensation expense is recognized based on the grant-date fair value. The Company estimates the fair value of the stock-based awards, including stock options, using the Black-Scholes option-pricing model. Determining the fair value of stock-based awards requires the use of highly subjective assumptions, including the fair value of the common stock underlying the award, the expected term of the award and expected stock price volatility. The assumptions used in determining the fair value of stock-based awards represent management’s estimates, which involve inherent uncertainties and the application of management judgment. As a result, if factors change, and different assumptions are employed, the stock-based compensation could be materially different in the future. The risk-free interest rates are based on the U.S. Treasury yield curve in effect at the time of grant, with maturities approximating the expected life of the stock options. The Company has no history of paying dividends. Additionally, as of each of the grant dates, there was no expectation that the Company would pay dividends over the expected life of the options. The expected life of the awards is estimated using historical data and management’s expectations. The Company uses historical volatility as the expected volatility assumption required in the Black-Scholes model. The Company is required to recognize compensation expense for only the portion of options that are expected to vest. If there are any modifications or cancellations of the underlying invested securities or the terms of the stock option, it may be necessary to accelerate, increase or cancel any remaining unamortized stock-based compensation expense. For the three months ended March 31, 2019 and 2018, the Company recorded stock-based compensation expense, including expense related to the ESPP, of $385 and $355 , respectively, in connection with the stock-based payment awards. The compensation expense is allocated to selling, general and administrative expenses in the accompanying condensed consolidated statements of income based on the salaries and work assignments of the employees holding the options. As of March 31, 2019 , there was $4,034 of unrecognized compensation expense related to non-vested stock option awards that is expected to be recognized over a weighted-average period of 2.3 years. |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, the Company utilizes derivatives contracts as part of its risk management strategy to manage exposure to market fluctuations in interest and commodity rates. These instruments are subject to various credit and market risks. Controls and monitoring procedures for these instruments have been established and are routinely reevaluated. Credit risk represents the potential loss that may occur because a party to a transaction fails to perform according to the terms of the contract. The measure of credit exposure is the replacement cost of contracts with a positive fair value. The Company seeks to manage credit risk by entering into financial instrument transactions only through counterparties that the Company believes to be creditworthy. Market risk represents the potential loss due to the decrease in the value of a financial instrument caused primarily by changes in interest rates and commodity prices. The Company seeks to manage market risk by establishing and monitoring limits on the types and degree of risk that may be undertaken. As a matter of policy, the Company does not use derivatives for speculative purposes. The Company considers the use of derivatives with all financing transactions to mitigate risk. The Company recognizes cash flows from derivative instruments as operating activities in the condensed consolidated statements of cash flows. The effective portion of changes in fair value on interest rate swaps designated as cash flow hedges are recognized in the Company’s condensed consolidated statements of comprehensive income. Changes in fair value on derivatives not designated as hedges are recognized in the Company’s condensed consolidated statements of income. The Company adopted ASU 2017-12 during the third quarter of 2018. Upon adoption, the Company recognized an increase to retained earnings and an accumulated other comprehensive loss of $432 to remove the cumulative effect of hedging ineffectiveness previously recognized in earnings, as of January 1, 2018, for contracts designated as hedging instruments that were outstanding at the beginning of the third quarter 2018. |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated using the Company’s weighted-average outstanding common shares, including vested restricted shares. When the effects are not anti-dilutive, diluted earnings per share is calculated using the weighted-average outstanding common shares; the dilutive effect of convertible preferred stock, under the “if converted” method; and the treasury stock method with regard to warrants and stock options; all as determined under the treasury stock method. |
Variable Interest Entities | Variable Interest Entities Certain contracts are executed jointly through partnership and joint venture arrangements with unrelated third parties. The arrangements are often formed for the single business purpose of executing a specific project and allow the Company to share risks and/or secure specialty skills required for project execution. The Company evaluates each partnership and joint venture at inception to determine if it qualifies as a VIE under ASC 810, Consolidation . A variable interest entity is an entity used for business purposes that either (a) does not have equity investors with voting rights or (b) has equity investors who are not required to provide sufficient financial resources for the entity to support its activities without additional subordinated financial support. Upon the occurrence of certain events outlined in ASC 810, the Company reassesses its initial determination of whether the partnership or joint venture is a VIE. The Company also evaluates whether it is the primary beneficiary of each VIE and consolidates the VIE if the Company has both (a) the power to direct the economically significant activities of the entity and (b) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company considers the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights and board representation of the respective parties in determining whether it qualifies as the primary beneficiary. The Company also considers all parties that have direct or implicit variable interests when determining whether it is the primary beneficiary. When the Company is determined to be the primary beneficiary, the VIE is consolidated. As required by ASC 810, management's assessment of whether the Company is the primary beneficiary of a VIE is continuously performed. The Company generally aggregates the disclosures of its VIEs based on certain qualitative and quantitative factors including the purpose and design of the underlying VIEs, the nature of the assets in the VIE, and the type of involvement the Company has with the VIE including its role and type of interest held in the VIE. |
Equity Method Investment | Equity Method Investment The Company has entered into a joint venture that the Company has determined it is not the primary beneficiary of the VIE using the methodology previously described for variable interest entities. The Company does not consolidate the operations of this joint venture and treats the joint venture as an equity method investment. See Note 12 for additional information on the Company’s equity method investment. |
Redeemable Non-Controlling Interests | Redeemable Non-Controlling Interests In each of September 2015, June 2017, June 2018 and October 2018, the Company formed an investment fund with a different third party investor which granted the applicable investor ownership interests in the net assets of certain of the Company’s renewable energy project subsidiaries. The Company currently has four such investment funds each with a different third party investor. The Company entered into these agreements in order to finance the costs of constructing energy assets which are under long-term customer contracts. The Company has determined that these entities qualify as VIEs and that it is the primary beneficiary in the operational partnerships for accounting purposes. Accordingly, the Company will consolidate the assets and liabilities and operating results of the entities in its condensed consolidated financial statements. The Company will recognize the investors’ share of the net assets of the subsidiaries as redeemable non-controlling interests in its condensed consolidated balance sheet. The Company has determined that the provisions in the contractual arrangements represent substantive profit-sharing arrangements. The Company has further determined that the appropriate methodology for attributing income and loss to the redeemable non-controlling interests each period is a balance sheet approach referred to as the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, the amounts of income and loss attributed to the redeemable non-controlling interests in the condensed consolidated statements of income reflect changes in the amounts the investors would hypothetically receive at each balance sheet date under the liquidation provisions of the contractual agreements, assuming the net assets of this funding structure were liquidated at recorded amounts. The investors’ non-controlling interest in the results of operations of this funding structure is determined as the difference in the non-controlling interest’s claim under the HLBV method at the start and end of each reporting period, after taking into account any capital transactions, such as contributions or distributions, between the Company’s subsidiaries and the investors. The use of the HLBV methodology to allocate income to the redeemable non-controlling interest holders may create volatility in the Company’s condensed consolidated statements of income as the application of HLBV can drive changes in net income available and loss attributable to the redeemable non-controlling interests from quarter to quarter. The Company classified the non-controlling interests with redemption features that are not solely within the control of the Company outside of permanent equity on its condensed consolidated balance sheets. The redeemable non-controlling interests will be reported using the greater of their carrying value at each reporting date as determined by the HLBV method or the estimated redemption values in each reporting period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, the Company is electing to only recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the condensed consolidated statements of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. On January 1, 2019, the Company adopted ASU No. 2016-02 using the modified retrospective approach of applying the new standard at the adoption date. See Note 8 for the impact of the adoption and the new disclosures required by this standard. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements, which provides clarification and improvements to the previous issued guidance. The standard is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2019-01 on its condensed consolidated financial statements, but does not expect that the adoption of this guidance will have a significant impact on its condensed consolidated financial statements. Intangibles-Goodwill and Other 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 clarifies the accounting for implementation, setup, and upfront costs and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective interim and annual periods beginning after December 15, 2019, with early adoption permitted, and can be applied either retrospectively or prospectively. The Company adopted this guidance as of January 1, 2019 and the adoption did not have an impact on the Company’s condensed consolidated financial statements. Fair Value Measurement In August 2018, the FASB issues 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. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2018-13 on its condensed consolidated financial statements, but does not expect that the adoption of this guidance will have a significant impact on its condensed consolidated financial statements. Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, to allow entities to reclassify the income tax effects of tax reform legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) on items within accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018, and early adoption is permitted. The Company adopted the guidance as of January 1, 2019. Upon adoption, the Company recognized an increase to retained earnings and a corresponding increase to accumulated other comprehensive loss of $217 . Consolidations In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities, which aligns the evaluation of whether a decision maker's fee is a variable interest with the guidance in the primary beneficiary test by requiring the decision maker to consider an indirect interest in a VIE held by related party under common control on a proportionate basis. The new standard is effective interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact ASU 2018-17 on its condensed consolidated financial statements, but does not expect that the adoption of this guidance will have a significant impact on its condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Changes in Allowance for Doubtful Accounts | Changes in the allowance for doubtful accounts are as follows: Three Months Ended March 31, 2019 2018 Allowance for doubtful accounts, beginning of period $ 2,765 $ 3,315 Charges to costs and expenses 77 64 Account write-offs and other (29 ) (86 ) Allowance for doubtful accounts, end of period $ 2,813 $ 3,293 |
Estimated Useful Lives of Property and Equipment | Depreciation and amortization of property and equipment are computed on a straight-line basis over the following estimated useful lives: Asset Classification Estimated Useful Life Furniture and office equipment Five years Computer equipment and software costs Three to five years Leasehold improvements Lesser of term of lease or five years Automobiles Five years Land Unlimited |
Schedule of Sale Leaseback Transactions | A summary of amounts related to sale leasebacks in the Company’s condensed consolidated balance sheets is as follows: March 31, December 31, 2019 2018 Financing lease assets, net $ 37,731 $ 38,263 Deferred loss, short-term, net 115 115 Deferred loss, long-term, net 1,888 1,917 Total deferred loss $ 2,003 $ 2,032 Financing lease liabilities, short-term 4,958 4,956 Financing lease liabilities, long-term 28,379 28,407 Total financing lease liabilities $ 33,337 $ 33,363 Deferred gain, short-term, net 345 345 Deferred gain, long-term, net 5,722 5,808 Total deferred gain $ 6,067 $ 6,153 |
Schedule of Earnings Per Share, Basic and Diluted | When the effects are not anti-dilutive, diluted earnings per share is calculated using the weighted-average outstanding common shares; the dilutive effect of convertible preferred stock, under the “if converted” method; and the treasury stock method with regard to warrants and stock options; all as determined under the treasury stock method. Three Months Ended March 31, 2019 2018 Net income attributable to common shareholders $ 4,147 $ 6,988 Basic weighted-average shares outstanding 46,293 45,373 Effect of dilutive securities: Stock options 1,361 621 Diluted weighted-average shares outstanding 47,654 45,994 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table provides information about disaggregated revenue by line of business, reportable segments, and geographical region for the three months ended March 31, 2019 and 2018. US Regions U.S. Federal Canada Non-Solar DG All Other Total Line of Business Three Months Ended March 31, 2019 Project revenue $ 45,704 $ 32,353 $ 5,234 $ 1,074 $ 3,067 $ 87,432 O&M revenue 3,318 9,858 — 2,035 — 15,211 Energy assets 6,021 643 320 17,699 302 24,985 Other 554 203 1,594 422 19,711 22,484 Total revenues $ 55,597 $ 43,057 $ 7,148 $ 21,230 $ 23,080 $ 150,112 Three months ended March 31, 2018 Project revenue $ 65,440 $ 37,838 $ 6,936 $ 899 $ 570 $ 111,683 O&M revenue 3,895 9,178 19 1,996 — 15,088 Energy assets 4,981 769 366 15,114 264 21,494 Other 375 — 1,583 108 17,079 19,145 Total revenues $ 74,691 $ 47,785 $ 8,904 $ 18,117 $ 17,913 $ 167,410 Geographical Regions Three Months Ended March 31, 2019 United States $ 55,597 $ 43,057 $ 702 $ 21,230 $ 18,647 $ 139,233 Canada — — 6,446 — 65 6,511 Other — — — — 4,368 4,368 Total revenues $ 55,597 $ 43,057 $ 7,148 $ 21,230 $ 23,080 $ 150,112 Three months ended March 31, 2018 United States $ 74,691 $ 47,785 $ 520 $ 18,117 $ 16,348 $ 157,461 Canada — — 8,384 — 55 8,439 Other — — — — 1,510 1,510 Total revenues $ 74,691 $ 47,785 $ 8,904 $ 18,117 $ 17,913 $ 167,410 |
Summary of Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: March 31, 2019 December 31, 2018 Accounts receivable, net $ 81,896 $ 85,985 Accounts receivable retainage, net 14,762 13,516 Contract Assets: Costs and estimated earnings in excess of billings 92,264 86,842 Contract Liabilities: Billings in excess of cost and estimated earnings 31,483 30,706 March 31, 2018 January 1, 2018 Accounts receivable, net $ 93,622 $ 85,121 Accounts receivable retainage, net 19,869 17,484 Contract Assets: Costs and estimated earnings in excess of billings 64,064 95,658 Contract Liabilities: Billings in excess of cost and estimated earnings 29,500 27,248 |
Business Acquisitions and Rel_2
Business Acquisitions and Related Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation by Acquisitions | A summary of the cumulative consideration paid and the allocation of the purchase price of all of the acquisitions in each respective period is as follows: 2019 2018 Accounts receivable $ 150 $ 1,015 Prepaid expenses and other current assets 2 12 Property and equipment and energy assets 315 — Intangibles 500 680 Goodwill 406 2,845 Accounts payable 32 67 Billings in excess of cost and estimated earnings 62 — Purchase price $ 1,279 $ 4,619 Total, net of cash received $ 1,279 $ 4,619 Debt assumed $ — $ — Total fair value of consideration $ 1,279 $ 4,619 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying value of goodwill attributable to each reportable segment are as follows: U.S. Regions U.S. Federal Canada Other Total Balance, December 31, 2018 $ 26,370 $ 4,609 $ 3,217 $ 24,136 $ 58,332 Goodwill acquired during the year 406 — — — 406 Re-measurement adjustment — (113 ) — — (113 ) Currency effects — — 68 142 210 Balance, March 31, 2019 $ 26,776 $ 4,496 $ 3,285 $ 24,278 $ 58,835 Accumulated Goodwill Impairment Balance, December 31, 2018 $ — $ — $ (1,016 ) $ — $ (1,016 ) Accumulated Goodwill Impairment Balance, March 31, 2019 $ — $ — $ (1,016 ) $ — $ (1,016 ) |
Schedule of Intangible Assets, Net | The gross carrying amount and accumulated amortization of intangible assets are as follows: As of March 31, As of December 31, 2019 2018 Gross Carrying Amount Customer contracts $ 7,868 $ 7,818 Customer relationships 12,686 12,082 Non-compete agreements 3,028 3,013 Technology 2,720 2,710 Trade names 542 541 26,844 26,164 Accumulated Amortization Customer contracts 7,740 7,668 Customer relationships 10,571 10,302 Non-compete agreements 3,028 3,013 Technology 2,668 2,651 Trade names 527 526 24,534 24,160 Intangible assets, net $ 2,310 $ 2,004 |
Energy Assets (Tables)
Energy Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Energy Assets | Energy assets consist of the following: March 31, December 31, 2019 2018 Energy assets $ 644,978 $ 619,708 Less - accumulated depreciation and amortization (168,396 ) (159,756 ) Energy assets, net $ 476,582 $ 459,952 |
Schedule of Finance Lease Assets | Included in energy assets are financing lease assets and accumulated depreciation of financing lease assets. Financing lease assets consist of the following: March 31, 2019 December 31, 2018 Financing lease assets $ 42,402 $ 42,402 Less - accumulated depreciation and amortization (4,671 ) (4,139 ) Financing lease assets, net $ 37,731 $ 38,263 Supplemental balance sheet information related to leases at March 31, 2019 are as follows: March 31, 2019 Operating Leases: Operating lease assets $ 30,350 Current operating lease liabilities 5,082 Long-term portions of operating lease liabilities 27,305 Total operating lease liabilities $ 32,387 Weighted-average remaining lease term 10 years Weighted-average discount rate 6.1 % Financing Leases: Energy assets, net $ 37,731 Current portions of long-term debt and financing lease liabilities 4,958 Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees 28,379 Total financing lease liability $ 33,337 Weighted-average remaining lease term 18 years Weighted-average discount rate 11.7 % These adjustments are detailed as follows: As of January 1, 2019 As Reported 842 Adjustment Adjusted Balances Operating Leases: Operating lease right-of-use asset $ — $ 31,639 $ 31,639 Current portions of operating lease right-of-use liabilities — 5,084 5,084 Long-term portions of operating lease liabilities — 28,480 28,480 Total operating lease liabilities $ — $ 33,564 $ 33,564 Weighted-average remaining lease term 10 years Weighted-average discount rate 6.0 % Financing Leases: Energy assets, net $ 38,263 $ — $ 38,263 Current portions of long-term debt and financing lease liabilities 4,956 — 4,956 Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees 28,407 — 28,407 Total financing lease liabilities $ 33,363 $ — $ 33,363 Weighted-average remaining lease term 18 years Weighted-average discount rate 11.7 % |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: Gross Unrecognized Tax Benefits Balance, December 31, 2018 $ 1,600 Additions for prior year tax positions — Settlements with tax authorities — Reductions of prior year tax positions — Balance, March 31, 2019 $ 1,600 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities, Lessee | Included in energy assets are financing lease assets and accumulated depreciation of financing lease assets. Financing lease assets consist of the following: March 31, 2019 December 31, 2018 Financing lease assets $ 42,402 $ 42,402 Less - accumulated depreciation and amortization (4,671 ) (4,139 ) Financing lease assets, net $ 37,731 $ 38,263 Supplemental balance sheet information related to leases at March 31, 2019 are as follows: March 31, 2019 Operating Leases: Operating lease assets $ 30,350 Current operating lease liabilities 5,082 Long-term portions of operating lease liabilities 27,305 Total operating lease liabilities $ 32,387 Weighted-average remaining lease term 10 years Weighted-average discount rate 6.1 % Financing Leases: Energy assets, net $ 37,731 Current portions of long-term debt and financing lease liabilities 4,958 Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees 28,379 Total financing lease liability $ 33,337 Weighted-average remaining lease term 18 years Weighted-average discount rate 11.7 % These adjustments are detailed as follows: As of January 1, 2019 As Reported 842 Adjustment Adjusted Balances Operating Leases: Operating lease right-of-use asset $ — $ 31,639 $ 31,639 Current portions of operating lease right-of-use liabilities — 5,084 5,084 Long-term portions of operating lease liabilities — 28,480 28,480 Total operating lease liabilities $ — $ 33,564 $ 33,564 Weighted-average remaining lease term 10 years Weighted-average discount rate 6.0 % Financing Leases: Energy assets, net $ 38,263 $ — $ 38,263 Current portions of long-term debt and financing lease liabilities 4,956 — 4,956 Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees 28,407 — 28,407 Total financing lease liabilities $ 33,363 $ — $ 33,363 Weighted-average remaining lease term 18 years Weighted-average discount rate 11.7 % |
Schedule of Lease Costs | The costs related to our leases for the three months ended March 31, 2019 are as follows: March 31, 2019 Operating Lease: Operating lease costs $ 1,838 Short-term lease costs 39 Financing Lease: Amortization expense 532 Interest on lease liabilities 949 Total lease costs $ 3,358 |
Schedule of Finance Lease Liability Maturity | The Company’s estimated minimum future lease obligations under our leases are as follows: Operating Leases Financing Leases Year ended December 31, 2019 $ 5,218 $ 8,343 2020 6,476 7,881 2021 5,403 6,775 2022 4,938 5,173 2023 3,711 3,686 Thereafter 18,895 26,800 Total minimum lease payments $ 44,641 $ 58,658 Less: interest 12,254 25,321 Present value of lease liabilities $ 32,387 $ 33,337 |
Schedule of Operating Lease Liability Maturity | The Company’s estimated minimum future lease obligations under our leases are as follows: Operating Leases Financing Leases Year ended December 31, 2019 $ 5,218 $ 8,343 2020 6,476 7,881 2021 5,403 6,775 2022 4,938 5,173 2023 3,711 3,686 Thereafter 18,895 26,800 Total minimum lease payments $ 44,641 $ 58,658 Less: interest 12,254 25,321 Present value of lease liabilities $ 32,387 $ 33,337 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Liabilities Measured on a Recurring Basis | The following table presents the input level used to determine the fair values of the Company’s financial instruments measured at fair value on a recurring basis: Fair Value as of March 31, December 31, Level 2019 2018 Assets: Interest rate swap instruments 2 $ 285 $ 733 Commodity swap instruments 2 33 33 Total assets $ 318 $ 766 Liabilities: Interest rate swap instruments 2 $ 3,990 $ 3,187 Commodity swap instruments 2 70 70 Interest make-whole provisions 2 1,085 1,808 Contingent revenue earn-out 3 1,004 962 Total liabilities $ 6,149 $ 6,027 |
Schedule of Changes In Fair Value Of Contingent Liabilities Classified as Level 3 | The following table sets forth a summary of changes in fair value of contingent liabilities classified as Level 3 for the three months ended March 31, 2019: Three Months Ended March 31, 2019 Contingent consideration liabilities balance at December 31, 2018 $ 962 Changes in the fair value of contingent consideration obligation 42 Contingent consideration liabilities balance at March 31, 2019 $ 1,004 |
Fair Value, by Balance Sheet Grouping | Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt, excluding financing leases, are as follows: As of March 31, 2019 As of December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value Long-term debt (Level 2) $ 219,678 $ 219,408 $ 211,823 $ 212,687 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | At March 31, 2019 and December 31, 2018, the following table presents information about the fair value amounts of the Company’s derivative instruments is as follows: Derivatives as of March 31, 2019 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 255 Other assets $ 703 Interest rate swap contracts Other liabilities 3,990 Other liabilities $ 3,187 Derivatives Not Designated as Hedging Instruments: Interest rate swap contracts Other assets $ 30 Other assets $ 30 Commodity swap contracts Other assets 33 Other assets 33 Commodity swap contracts Other liabilities 70 Other liabilities $ 70 Interest make-whole provisions Other liabilities 1,085 Other liabilities 1,808 Other Derivatives Classification Effective Date Expiration Date Fair Value ($) Interest make-whole provisions Liability June/August 2018 December 2038 $ 1,085 |
Schedule of Derivative Effect on Consolidated Statement of Income (Loss) | The following tables present information about the effects of the Company’s derivative instruments on the condensed consolidated statements of income and condensed consolidated statements of comprehensive income: Location of Gain Recognized in Net Income Amount of Gain Recognized in Net Income Three Months Ended March 31, 2019 2018 Derivatives Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ (49 ) $ (102 ) Derivatives not Designated as Hedging Instruments: Interest rate swap contracts Other expenses, net $ — (12 ) Commodity swap contracts Other expenses, net $ — — Interest make-whole provision Other expenses, net $ (723 ) $ — |
Schedule of Derivative Instruments Effect on Comprehensive Income (Loss) | Three Months Ended March 31, 2019 Derivatives Designated as Hedging Instruments: Accumulated loss in AOCI at the beginning of the period $ (1,824 ) Cumulative impact from the adoption of ASU No. 2018-02 (217 ) Unrealized gain recognized in AOCI (949 ) Gain reclassified from AOCI to other expenses, net 49 Accumulated loss in AOCI at the end of the period $ (2,941 ) |
Schedule of Active Derivative Instruments | The following tables present a listing of all the Company’s active derivative instruments as of March 31, 2019 : Active Interest Rate Swap Effective Date Expiration Date Initial Notional Amount ($) Status 11-Year, 5.77% Fixed October 2018 October 2029 $ 9,200 Designated 15-Year, 3.19% Fixed June 2018 June 2033 10,000 Designated 3-Year, 2.46% Fixed March 2018 December 2020 17,100 Not Designated 10-Year, 4.74% Fixed June 2017 December 2027 14,100 Designated 15-Year, 3.26% Fixed February 2023 December 2038 14,084 Designated 7-Year, 2.19% Fixed February 2016 February 2023 20,746 Designated 8-Year, 3.70% Fixed March 2020 June 2028 14,643 Designated 8-Year, 3.70% Fixed March 2020 June 2028 10,734 Designated 8-Year, 1.71% Fixed October 2012 March 2020 9,665 Designated 8-Year, 1.71% Fixed October 2012 March 2020 7,085 Designated 15-Year, 5.30% Fixed February 2006 February 2021 3,256 Designated 15.5-Year, 5.40% Fixed September 2008 March 2024 13,081 Designated Active Commodity Swap Effective Date Expiration Date Initial Notional Amount (Volume) Commodity Measurement Status 1-Year, $2.84 MMBtu Fixed May 2018 April 2019 323,390 MMBtus Not Designated 1-Year, $2.68 MMBtu Fixed May 2019 April 2020 437,004 MMBtus Not Designated 1-Year, $2.70 MMBtu Fixed May 2020 April 2021 435,810 MMBtus Not Designated |
Investment Funds And Other Va_2
Investment Funds And Other Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | A summary of amounts related to the investment funds in the Company’s condensed consolidated balance sheets is as follows: March 31, December 31, 2019 (1) 2018 (1) Cash $ 1,355 $ 1,255 Restricted cash 156 156 Accounts receivable 272 374 Costs and estimated earnings in excess of billings 758 498 Prepaid expenses and other current assets 190 190 Energy assets, net 123,092 122,641 Operating lease assets 6,124 — Other assets 1,624 1,613 Accounts payable 169 234 Accrued liabilities 3,672 4,146 Current operating lease liabilities 84 — Current portions of long-term 2,263 1,712 Long-term debt, net of deferred financing costs 26,104 26,461 Long-term operating lease liabilities 6,271 — Other long-term liabilities 1,336 2,131 (1) The amounts in the above table are reflected in parenthetical references on the Company’s condensed consolidated balance sheet. See the Company’s condensed consolidated balance sheets for additional information. |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Operational Results by Business Segments | An analysis of the Company’s business segment information and reconciliation to the condensed consolidated financial statements is as follows: U.S. Regions U.S. Federal Canada Non-Solar DG All Other Total Consolidated Three Months Ended March 31, 2019 Revenues $ 55,597 $ 43,057 $ 7,148 $ 21,230 $ 23,080 $ 150,112 Interest income 63 49 — 21 — 133 Interest expense 857 210 164 1,577 — 2,808 Depreciation and amortization of intangible assets 2,182 817 275 5,216 348 8,838 Unallocated corporate activity — — — — — (8,008 ) Income (loss) before taxes, excluding unallocated corporate activity (278 ) 5,621 (289 ) 1,381 4,701 11,136 Three Months Ended March 31, 2018 Revenues $ 74,691 $ 47,785 $ 8,904 $ 18,117 $ 17,913 $ 167,410 Interest income 1 20 — 35 — 56 Interest expense 1,191 241 484 1,081 — 2,997 Depreciation and amortization of intangible assets 1,330 672 289 4,064 379 6,734 Unallocated corporate activity — — — — — (6,869 ) Income (loss) before taxes, excluding unallocated corporate activity 4,618 5,817 (2,362 ) 2,610 912 11,595 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | debt comprised the following: Commencement Date Maturity Date Acceleration Clause (2) Rate as of March 31, 2019 March 31, 2019 December 31, 2018 Senior secured credit facility, interest at varying rates monthly in arrears June 2015 June 2020 NA 4.85 % $ 52,972 $ 43,074 Variable rate term loan payable in semi-annual installments January 2006 February 2021 Yes 4.85 % 936 936 Variable rate term loan payable in semi-annual installments January 2006 June 2024 Yes 4.60 % 7,426 7,426 Term loan payable in quarterly installments March 2011 March 2021 Yes 7.25 % 1,464 1,464 Term loan payable in monthly installments October 2011 June 2028 NA 6.11 % 3,886 3,843 Variable rate term loan payable in quarterly installments October 2012 June 2020 NA 6.10 % 30,180 30,674 Variable rate term loan payable in quarterly installments September 2015 March 2023 NA 5.10 % 17,227 17,208 Term loan payable in quarterly installments August 2016 July 2031 NA 4.95 % 3,939 3,925 Term loan payable in quarterly installments March 2017 March 2028 NA 5.00 % 3,839 3,945 Term loan payable in monthly installments (3) April 2017 April 2027 NA 4.50 % 22,081 22,081 Term loan payable in quarterly installments April 2017 February 2034 NA 5.61 % 2,791 2,735 Variable rate term loan payable in quarterly installments June 2017 December 2027 NA 5.05 % 12,917 12,915 Variable rate term loan payable in quarterly installments February 2018 August 2022 Yes 10.10 % 18,042 21,475 Term loan payable in quarterly installments June 2018 December 2038 Yes 5.15 % 30,138 30,069 Variable rate term loan payable in semi-annual installments June 2018 June 2033 Yes 4.65 % 9,670 9,668 Variable rate term loan payable in monthly/quarterly installments October 2018 October 2029 Yes 4.995 % 9,077 9,072 Financing leases (1) 33,337 33,363 $ 259,922 $ 253,873 Less - current maturities 55,731 26,890 Less - deferred financing fees 7,177 7,821 Long-term debt and financing lease liabilities $ 197,014 $ 219,162 (1) Financing leases do not include approximately $25,321 in future interest payments (2) These agreements have acceleration causes that, in the event of default, as defined, the payee has the option to accelerate payment terms and make due the remaining principal and the required interest balance according to the agreement (3) As of March 31, 2019, this construction loan has an additional $2,742 commitment that could be drawn upon |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Principles of Consolidation (Details) | Mar. 31, 2019fund |
Accounting Policies [Abstract] | |
Investment funds, purchase of solar energy systems | 4 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Use of Estimates (Details) | 3 Months Ended |
Mar. 31, 2019$ / participant | |
Accounting Policies [Abstract] | |
Maximum exposure per participant | 150,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Accounting Policies [Abstract] | |||
Restricted cash non-current | $ 20,920 | $ 19,637 | $ 20,778 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Changes in the Allowance for Doubtful Accounts [Roll Forward] | |||
Allowance for doubtful accounts, beginning of period | $ 2,765,000 | $ 3,315,000 | $ 3,315,000 |
Charges to costs and expenses | 77,000 | 64,000 | |
Account write-offs and other | (29,000) | (86,000) | |
Allowance for doubtful accounts, end of period | 2,813,000 | $ 3,293,000 | 2,765,000 |
Accounts receivable, amounts determined to be uncollectible | $ 0 | $ 0 | |
Minimum | |||
Changes in the Allowance for Doubtful Accounts [Roll Forward] | |||
Accounts receivable retainage, percentage | 5.00% | ||
Maximum | |||
Changes in the Allowance for Doubtful Accounts [Roll Forward] | |||
Accounts receivable retainage, percentage | 10.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Project Development Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Capitalized project development costs, noncurrent | $ 217 | $ 639 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Property and Equipment (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Furniture and office equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Computer equipment and software costs | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer equipment and software costs | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Automobiles | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Energy Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Interest costs capitalized | $ 788 | $ 994 |
Minimum qualifying operating period for prorated repayments of grants | 5 years | |
Property, Plant and Equipment [Line Items] | ||
Deferred grant income | $ 6,499 | $ 6,637 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 15 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Sale-Leaseback (Details) | 3 Months Ended | |||
Mar. 31, 2019USD ($)project | Mar. 31, 2018USD ($)project | Sep. 30, 2018USD ($) | Sep. 30, 2016USD ($) | |
Sale Leaseback Transaction [Line Items] | ||||
Net amortization expense | $ 57,000 | $ 59,000 | ||
Solar Photovoltaic Projects | ||||
Sale Leaseback Transaction [Line Items] | ||||
Maximum combined funding amount | $ 100,000,000 | $ 100,000,000 | ||
Number of solar PV projects sold | project | 0 | 0 | ||
Percentage of fair value threshold, integral equipment | 10.00% |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Amounts Related to Sale-Leaseback (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Sale Leaseback Transaction [Line Items] | |||
Financing lease assets, net | $ 37,731 | $ 38,263 | $ 38,263 |
Solar Photovoltaic Projects | |||
Sale Leaseback Transaction [Line Items] | |||
Deferred loss, short-term, net | 115 | 115 | |
Deferred loss, long-term, net | 1,888 | 1,917 | |
Total deferred loss | 2,003 | 2,032 | |
Financing lease liabilities, short-term | 4,958 | 4,956 | |
Financing lease liabilities, long-term | 28,379 | 28,407 | |
Total financing lease liabilities | 33,337 | 33,363 | |
Deferred gain, short-term, net | 345 | 345 | |
Deferred gain, long-term, net | 5,722 | 5,808 | |
Total deferred gain | $ 6,067 | $ 6,153 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 385 | $ 355 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested stock options unrecognized compensation expense | $ 4,034 | |
Non-vested stock options unrecognized compensation expense, weighted-average period of recognition | 2 years 3 months 12 days |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Share Repurchase Program (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Feb. 28, 2017 | Apr. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Open market purchase of treasury shares | $ 1,771,000 | |||
Open market purchase of treasury shares, fees | $ 9,000 | |||
Treasury Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Open market purchase of common shares (in shares) | 0 | 212,131 | ||
Open market purchase of treasury shares | $ 1,771,000 | |||
Common Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchase program, authorized amount (up to) | $ 15,000,000 | $ 10,000,000 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Derivative Financial Instruments (Details) - Accounting Standards Update 2017-12 $ in Thousands | Jan. 01, 2018USD ($) |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative impact from the adoption of ASU | $ 432 |
Accumulated Other Comprehensive Loss | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative impact from the adoption of ASU | $ (432) |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounting Policies [Abstract] | ||
Net income attributable to common shareholders | $ 4,147 | $ 6,988 |
Basic weighted-average shares outstanding (in shares) | 46,293 | 45,373 |
Effect of dilutive securities: | ||
Stock options (in shares) | 1,361 | 621 |
Diluted weighted-average shares outstanding (in shares) | 47,654 | 45,994 |
Stock options excluded from calculation of dilutive shares as the effect would be anti-dilutive (in shares) | 293 | 1,637 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Redeemable Non-Controlling Interest (Details) | Mar. 31, 2019fund |
Accounting Policies [Abstract] | |
Investment funds, purchase of solar energy systems | 4 |
Summary of Significant Accou_19
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - Accounting Standards Update 2018-02 $ in Thousands | Jan. 01, 2019USD ($) |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative impact from the adoption of ASU | $ 217 |
Accumulated Other Comprehensive Loss | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative impact from the adoption of ASU | $ (217) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract with customer, liability, noncurrent | $ 6,129,000 | |
Contract with customer, asset, reclassified to receivable | 90,344,000 | $ 120,072,000 |
Contract with customer, asset, revenue recognized | 90,895,000 | 87,440,000 |
Contract with customer, liability, revenue recognized | 24,095,000 | 17,843,000 |
Contract with customer, liability, billings | 18,929,000 | 16,678,000 |
Revenue, remaining performance obligation | $ 1,674,600,000 | |
Revenue, remaining performance obligation, percentage | 27.00% | |
Capitalized contract cost, project development costs | $ 2,777,000 | 2,440,000 |
Capitalized contract cost, impairment loss | $ 0 | $ 0 |
Minimum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract receivable retainage percentage | 5.00% | |
Maximum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract receivable retainage percentage | 10.00% |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 150,112 | $ 167,410 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 139,233 | 157,461 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,511 | 8,439 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,368 | 1,510 |
Project revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 87,432 | 111,683 |
O&M revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 15,211 | 15,088 |
Energy assets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 24,985 | 21,494 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 22,484 | 19,145 |
U.S. Regions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 55,597 | 74,691 |
U.S. Regions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 55,597 | 74,691 |
U.S. Regions | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
U.S. Regions | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
U.S. Regions | Project revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 45,704 | 65,440 |
U.S. Regions | O&M revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,318 | 3,895 |
U.S. Regions | Energy assets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,021 | 4,981 |
U.S. Regions | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 554 | 375 |
U.S. Federal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 43,057 | 47,785 |
U.S. Federal | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 43,057 | 47,785 |
U.S. Federal | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
U.S. Federal | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
U.S. Federal | Project revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 32,353 | 37,838 |
U.S. Federal | O&M revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9,858 | 9,178 |
U.S. Federal | Energy assets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 643 | 769 |
U.S. Federal | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 203 | 0 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,148 | 8,904 |
Canada | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 702 | 520 |
Canada | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,446 | 8,384 |
Canada | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Canada | Project revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,234 | 6,936 |
Canada | O&M revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 19 |
Canada | Energy assets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 320 | 366 |
Canada | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,594 | 1,583 |
Non-Solar DG | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 21,230 | 18,117 |
Non-Solar DG | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 21,230 | 18,117 |
Non-Solar DG | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Non-Solar DG | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Non-Solar DG | Project revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,074 | 899 |
Non-Solar DG | O&M revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,035 | 1,996 |
Non-Solar DG | Energy assets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 17,699 | 15,114 |
Non-Solar DG | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 422 | 108 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 23,080 | 17,913 |
Other | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 18,647 | 16,348 |
Other | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 65 | 55 |
Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,368 | 1,510 |
Other | Project revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,067 | 570 |
Other | O&M revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Other | Energy assets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 302 | 264 |
Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 19,711 | $ 17,079 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Jan. 01, 2018 |
Revenue from Contract with Customer [Abstract] | ||||
Accounts receivable, net | $ 81,896 | $ 85,985 | $ 93,622 | $ 85,121 |
Accounts receivable retainage, net | 14,762 | 13,516 | 19,869 | 17,484 |
Contract Assets: | ||||
Costs and estimated earnings in excess of billings (including amounts in VIEs of $758 and $498, respectively) | 92,264 | 86,842 | 64,064 | 95,658 |
Contract Liabilities: | ||||
Billings in excess of cost and estimated earnings | $ 31,483 | $ 30,706 | $ 29,500 | $ 27,248 |
Business Acquisitions and Rel_3
Business Acquisitions and Related Transactions - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2019USD ($) | Mar. 31, 2019 | Mar. 31, 2019Agreement | Mar. 31, 2019project | |
Business Acquisition [Line Items] | ||||
Number of projects acquired | 3 | 3 | ||
Number of projects under definitive agreement to acquire | Agreement | 4 | |||
Massachusetts Based Solar Operations And Maintenance Firm | ||||
Business Acquisition [Line Items] | ||||
Fair value of consideration | $ | $ 1,279 | |||
Minimum | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 1 year | |||
Minimum | Solar Photovoltaic Projects | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 1 year | |||
Maximum | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 15 years | |||
Maximum | Solar Photovoltaic Projects | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 15 years |
Business Acquisitions and Rel_4
Business Acquisitions and Related Transactions - Consideration Paid and the Allocation of the Purchase Price (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 58,835 | $ 58,332 | |
Total, net of cash received | 1,279 | $ 0 | |
Solar Photovoltaic Projects And EEX | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 150 | 1,015 | |
Prepaid expenses and other current assets | 2 | 12 | |
Property and equipment and energy assets | 315 | 0 | |
Intangibles | 500 | 680 | |
Goodwill | 406 | 2,845 | |
Accounts payable | 32 | 67 | |
Billings in excess of cost and estimated earnings | 62 | 0 | |
Purchase price | 1,279 | 4,619 | |
Total, net of cash received | 1,279 | 4,619 | |
Debt assumed | 0 | 0 | |
Total fair value of consideration | $ 1,279 | $ 4,619 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | $ 58,332 | |
Goodwill acquired during the year | 406 | |
Re-measurement adjustment | (113) | |
Currency effects | 210 | |
Balance, March 31, 2019 | 58,835 | |
Accumulated goodwill impairment | (1,016) | $ (1,016) |
Operating Segments | U.S. Regions | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 26,370 | |
Goodwill acquired during the year | 406 | |
Re-measurement adjustment | 0 | |
Currency effects | 0 | |
Balance, March 31, 2019 | 26,776 | |
Accumulated goodwill impairment | 0 | 0 |
Operating Segments | U.S. Federal | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 4,609 | |
Goodwill acquired during the year | 0 | |
Re-measurement adjustment | (113) | |
Currency effects | 0 | |
Balance, March 31, 2019 | 4,496 | |
Accumulated goodwill impairment | 0 | 0 |
Operating Segments | Canada | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 3,217 | |
Goodwill acquired during the year | 0 | |
Re-measurement adjustment | 0 | |
Currency effects | 68 | |
Balance, March 31, 2019 | 3,285 | |
Accumulated goodwill impairment | (1,016) | (1,016) |
Operating Segments | Other | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 24,136 | |
Goodwill acquired during the year | 0 | |
Re-measurement adjustment | 0 | |
Currency effects | 142 | |
Balance, March 31, 2019 | 24,278 | |
Accumulated goodwill impairment | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2019USD ($) | Mar. 31, 2019USD ($)business | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Number of businesses acquired | business | 1 | |||
Goodwill acquired during the year | $ 406 | |||
Gross Carrying Amount | 26,844 | $ 26,164 | ||
Accumulated Amortization | 24,534 | 24,160 | ||
Intangible assets, net | 2,310 | 2,004 | ||
Amortization of intangible assets | 213 | $ 253 | ||
Customer contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 7,868 | 7,818 | ||
Accumulated Amortization | 7,740 | 7,668 | ||
Amortization of intangible assets | 23 | 0 | ||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 12,686 | 12,082 | ||
Accumulated Amortization | 10,571 | 10,302 | ||
Non-compete agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 3,028 | 3,013 | ||
Accumulated Amortization | 3,028 | 3,013 | ||
Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 2,720 | 2,710 | ||
Accumulated Amortization | 2,668 | 2,651 | ||
Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 542 | 541 | ||
Accumulated Amortization | 527 | $ 526 | ||
Other intangible assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 190 | $ 253 | ||
Undisclosed Name of Acquiree 1 | Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $ 500 | |||
Remaining amortization period of asset acquired | 8 years | |||
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
All other acquired intangible assets useful life | 1 year | |||
Minimum | Customer contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired intangible assets useful life | 1 year | |||
Minimum | Other intangible assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
All other acquired intangible assets useful life | 4 years | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
All other acquired intangible assets useful life | 15 years | |||
Maximum | Customer contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired intangible assets useful life | 5 years | |||
Maximum | Other intangible assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
All other acquired intangible assets useful life | 15 years |
Energy Assets - Energy Assets (
Energy Assets - Energy Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Energy assets, net | $ 476,582 | $ 459,952 |
Energy Assets | ||
Property, Plant and Equipment [Line Items] | ||
Energy assets | 644,978 | 619,708 |
Less - accumulated depreciation and amortization | (168,396) | (159,756) |
Energy assets, net | $ 476,582 | $ 459,952 |
Energy Assets - Narrative (Det
Energy Assets - Narrative (Details) | May 03, 2019USD ($)project | Mar. 31, 2019USD ($)Agreement | Mar. 31, 2019USD ($) | Mar. 31, 2019USD ($)project | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||
Depreciation and amortization expense | $ 8,407,000 | $ 6,312,000 | ||||
Finance lease right-of-use assets, amortization expense | 532,000 | 534,000 | ||||
Number of projects acquired | 3 | 3 | ||||
Number of projects under definitive agreement to acquire | Agreement | 4 | |||||
Asset retirement obligation recorded in project assets | $ 886,000 | 886,000 | $ 886,000 | |||
Asset retirement obligation liability recorded in accrued expenses | 908,000 | 908,000 | 908,000 | $ 0 | ||
Depreciation of property and equipment | 619,000 | $ 542,000 | ||||
ARO accretion expense | 9,000 | |||||
Solar Projects 2019 | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of consideration | 2,529,000 | |||||
Contingent consideration, liability | $ 1,425,000 | 1,425,000 | $ 1,425,000 | |||
Amount paid to developers of projects | 1,104,000 | |||||
ARO Asset | ||||||
Business Acquisition [Line Items] | ||||||
Depreciation of property and equipment | $ 11,000 | |||||
Scenario, Forecast | Solar Projects 2019 | ||||||
Business Acquisition [Line Items] | ||||||
Number of projects under definitive agreement to acquire | project | 4 | |||||
Fair value of consideration | $ 4,556,000 | |||||
Contingent consideration, liability | 4,783,000 | |||||
Amount paid to developers of projects | $ 456,000 |
Energy Assets - Financing Lease
Energy Assets - Financing Lease Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Financing lease assets | $ 42,402 | $ 42,402 | |
Less - accumulated depreciation and amortization | (4,671) | (4,139) | |
Financing lease assets, net | $ 37,731 | $ 38,263 | $ 38,263 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision (benefit) | $ 257 | $ (2,779) | |
Effective tax rate, percentage | 8.20% | (58.80%) | |
Effective income tax rate reconciliation, Section 179D deduction | $ 3,800 | ||
Unrecognized tax benefits | $ 1,600 | 1,600 | |
Unrecognized tax benefits, if recognized would affect effective income tax rate | $ 705 | $ 80 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance, December 31, 2018 | $ 1,600 |
Additions for prior year tax positions | 0 |
Settlements with tax authorities | 0 |
Reductions of prior year tax positions | 0 |
Balance, March 31, 2019 | $ 1,600 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019USD ($) | May 02, 2019USD ($)Agreement | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use asset | $ 30,350 | $ 31,639 | $ 0 | |
Current portions of operating lease right-of-use liability | 5,082 | 5,084 | 0 | |
Long-term portions of operating lease liability | 27,305 | 28,480 | $ 0 | |
Operating leases revenue | $ 2,224 | |||
842 Adjustment | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use asset | 31,639 | |||
Current portions of operating lease right-of-use liability | 5,084 | |||
Long-term portions of operating lease liability | $ 28,480 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease renewal term | 6 months | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease renewal term | 7 years | |||
Subsequent Event | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of land leases not yet commenced | Agreement | 1 | |||
Undiscounted total lease payments related to land lease not yet commenced | $ 535 |
Leases - Adoption of New Leasin
Leases - Adoption of New Leasing Standard (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use asset | $ 30,350 | $ 31,639 | $ 0 |
Current portions of operating lease right-of-use liability | 5,082 | 5,084 | 0 |
Long-term portions of operating lease liability | 27,305 | 28,480 | 0 |
Total operating lease liability | $ 32,387 | $ 33,564 | |
Operating lease, weighted-average remaining lease term | 10 years | 10 years | |
Operating lease, weighted-average discount rate, percentage | 6.10% | 6.00% | |
Energy assets, net | $ 37,731 | $ 38,263 | 38,263 |
Current portions of long-term debt and financing lease liabilities | 4,958 | 4,956 | |
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees | 28,379 | 28,407 | |
Total financing lease liability | $ 33,337 | $ 33,363 | $ 33,363 |
Financing lease, weighted-average remaining lease term | 18 years | 18 years | |
Financing lease, weighted-average discount rate, percentage | 11.70% | 11.70% | |
As Reported | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use asset | $ 0 | ||
Current portions of operating lease right-of-use liability | 0 | ||
Long-term portions of operating lease liability | 0 | ||
Total operating lease liability | 0 | ||
Energy assets, net | 38,263 | ||
Current portions of long-term debt and financing lease liabilities | 4,956 | ||
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees | 28,407 | ||
Total financing lease liability | 33,363 | ||
842 Adjustment | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use asset | 31,639 | ||
Current portions of operating lease right-of-use liability | 5,084 | ||
Long-term portions of operating lease liability | 28,480 | ||
Total operating lease liability | 33,564 | ||
Energy assets, net | 0 | ||
Current portions of long-term debt and financing lease liabilities | 0 | ||
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees | 0 | ||
Total financing lease liability | $ 0 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating lease right-of-use asset | $ 30,350 | $ 31,639 | $ 0 |
Current portions of operating lease right-of-use liability | 5,082 | 5,084 | 0 |
Long-term portions of operating lease liability | 27,305 | 28,480 | 0 |
Total operating lease liability | $ 32,387 | $ 33,564 | |
Operating lease, weighted-average remaining lease term | 10 years | 10 years | |
Operating lease, weighted-average discount rate, percentage | 6.10% | 6.00% | |
Energy assets, net | $ 37,731 | $ 38,263 | 38,263 |
Current portions of long-term debt and financing lease liabilities | 4,958 | 4,956 | |
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees | 28,379 | 28,407 | |
Total financing lease liability | $ 33,337 | $ 33,363 | $ 33,363 |
Financing lease, weighted-average remaining lease term | 18 years | 18 years | |
Financing lease, weighted-average discount rate, percentage | 11.70% | 11.70% |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Operating lease costs | $ 1,838 | |
Short-term lease costs | 39 | |
Amortization expense | 532 | $ 534 |
Interest on lease liabilities | 949 | |
Total lease costs | $ 3,358 |
Leases - Minimum Future Lease O
Leases - Minimum Future Lease Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Finance Lease Liabilities, Gross Difference, Amount [Abstract] | |||
2019 | $ 8,343 | ||
2020 | 7,881 | ||
2021 | 6,775 | ||
2022 | 5,173 | ||
2023 | 3,686 | ||
Thereafter | 26,800 | ||
Total minimum lease payments | 58,658 | ||
Less: interest | 25,321 | ||
Present value of lease liabilities | 33,337 | $ 33,363 | $ 33,363 |
Operating Lease Liabilities, Payments Due [Abstract] | |||
2019 | 5,218 | ||
2020 | 6,476 | ||
2021 | 5,403 | ||
2022 | 4,938 | ||
2023 | 3,711 | ||
Thereafter | 18,895 | ||
Total minimum lease payments | 44,641 | ||
Less: interest | 12,254 | ||
Present value of lease liabilities | $ 32,387 | $ 33,564 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Aug. 31, 2018 | May 31, 2018 | Mar. 31, 2019 | Nov. 30, 2018 | |
Undisclosed Name of Acquiree 1 | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration, liability, certain acquired receivables | $ 425 | |||
Contingent consideration, liability, acquired receivables, payment period | 12 months | |||
Undisclosed Name of Acquiree 2 | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration, liability, revenue earn-outs, payment period | 5 years | |||
Contingent consideration, liability, fair value at date of acquisition | $ 555 | $ 625 | ||
Undisclosed Name Of Acquiree 3 | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration, liability | $ 379 | $ 363 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Liabilities: | ||
Total liabilities | $ 6,149 | $ 6,027 |
Level 2 | ||
Assets: | ||
Total assets | 318 | 766 |
Level 2 | Interest rate swap instruments | ||
Assets: | ||
Total assets | 285 | 733 |
Liabilities: | ||
Liability derivatives | 3,990 | 3,187 |
Level 2 | Commodity swap instruments | ||
Assets: | ||
Total assets | 33 | 33 |
Liabilities: | ||
Liability derivatives | 70 | 70 |
Level 2 | Interest make-whole provisions | ||
Liabilities: | ||
Liability derivatives | 1,085 | 1,808 |
Level 3 | ||
Liabilities: | ||
Contingent revenue earn-out | $ 1,004 | $ 962 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) | Mar. 31, 2019 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Probability of base case scenario, percentage | 50.00% |
Undisclosed Name of Acquiree 1 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Probability of low case scenario, percentage | 50.00% |
Undisclosed Name of Acquiree 1 | Interest make-whole provisions | Measurement Input, Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 0.18 |
Undisclosed Name of Acquiree 2 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 0.18 |
Probability of low case scenario, percentage | 20.00% |
Probability of base case scenario, percentage | 75.00% |
Probability of high case scenario, percentage | 5.00% |
Fair Value Measurement - Fair_2
Fair Value Measurement - Fair Value and Carrying Value of Long-term Debt (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt value (Level 2), Fair Value | $ 219,678,000 | $ 211,823,000 |
Long-term debt value (Level 2), Carrying Value | 219,408,000 | 212,687,000 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | $ 0 | $ 0 |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value Measurement - Changes in Contingent Liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Contingent consideration liabilities balance at December 31, 2018 | $ 962 |
Changes in the fair value of contingent consideration obligation | 42 |
Contingent consideration liabilities balance at March 31, 2019 | $ 1,004 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Designated | Interest rate swap instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 255 | $ 703 |
Designated | Interest rate swap instruments | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 3,990 | 3,187 |
Not Designated | Interest rate swap instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 30 | 30 |
Not Designated | Commodity swap contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 33 | 33 |
Not Designated | Commodity swap contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 70 | 70 |
Not Designated | Interest make-whole provisions | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 1,085 | $ 1,808 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Thousands | Mar. 31, 2019contract | Dec. 31, 2018contract | Jan. 01, 2018USD ($) |
Not Designated | |||
Derivative [Line Items] | |||
Number of instruments held | contract | 4 | 4 | |
Accumulated Other Comprehensive Loss | Accounting Standards Update 2017-12 | |||
Derivative [Line Items] | |||
Cumulative impact from the adoption of ASU | $ | $ (432) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Effects on Statements of Income (Loss) and Consolidated Statements of Comprehensive Loss (Details) - Other expenses, net - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Designated | Interest rate swap instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in Net Income | $ (49) | $ (102) |
Not Designated | Interest rate swap instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in Net Income | 0 | 0 |
Not Designated | Commodity swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in Net Income | 0 | 0 |
Not Designated | Interest make-whole provisions | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in Net Income | $ (723) | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Effects of Derivative Instruments in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | ||
Beginning balance | $ 376,875 | |
Ending balance | 381,737 | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | ||
Beginning balance | (1,824) | |
Unrealized gain recognized in AOCI | (949) | |
Gain reclassified from AOCI to other expenses, net | 49 | |
Ending balance | $ (2,941) | |
Accounting Standards Update 2018-02 | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | ||
Cumulative impact from the adoption of ASU No. 2018-02 | $ (217) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Summary of Active Derivative Instruments (Details) | Mar. 31, 2019USD ($)MMBTU$ / MMBTU | Dec. 31, 2018USD ($) |
Designated | Interest Rate Swap October 2029 | ||
Derivative [Line Items] | ||
Term of contract, years | 11 years | |
Fixed interest rate, percentage | 5.77% | |
Initial Notional Amount ($) | $ 9,200,000 | |
Designated | Interest Rate Swap June 2033 | ||
Derivative [Line Items] | ||
Term of contract, years | 15 years | |
Fixed interest rate, percentage | 3.19% | |
Initial Notional Amount ($) | $ 10,000,000 | |
Designated | Interest Rate Swap - December 2027 | ||
Derivative [Line Items] | ||
Term of contract, years | 10 years | |
Fixed interest rate, percentage | 4.74% | |
Initial Notional Amount ($) | $ 14,100,000 | |
Designated | Interest Rate Swap - December 2038 | ||
Derivative [Line Items] | ||
Term of contract, years | 15 years | |
Fixed interest rate, percentage | 3.26% | |
Initial Notional Amount ($) | $ 14,084,000 | |
Designated | Interest Rate Swap - February 2023 | ||
Derivative [Line Items] | ||
Term of contract, years | 7 years | |
Fixed interest rate, percentage | 2.19% | |
Initial Notional Amount ($) | $ 20,746,000 | |
Designated | Interest Rate Swap - June 2028 - Contract 1 | ||
Derivative [Line Items] | ||
Term of contract, years | 8 years | |
Fixed interest rate, percentage | 3.70% | |
Initial Notional Amount ($) | $ 14,643,000 | |
Designated | Interest Rate Swap - June 2028 - Contract 2 | ||
Derivative [Line Items] | ||
Term of contract, years | 8 years | |
Fixed interest rate, percentage | 3.70% | |
Initial Notional Amount ($) | $ 10,734,000 | |
Designated | Interest Rate Swap - March 2020 - Contract 1 | ||
Derivative [Line Items] | ||
Term of contract, years | 8 years | |
Fixed interest rate, percentage | 1.71% | |
Initial Notional Amount ($) | $ 9,665,000 | |
Designated | Interest Rate Swap - March 2020 - Contract 2 | ||
Derivative [Line Items] | ||
Term of contract, years | 8 years | |
Fixed interest rate, percentage | 1.71% | |
Initial Notional Amount ($) | $ 7,085,000 | |
Designated | Interest Rate Swap - February 2021 | ||
Derivative [Line Items] | ||
Term of contract, years | 15 years | |
Fixed interest rate, percentage | 5.30% | |
Initial Notional Amount ($) | $ 3,256,000 | |
Designated | Interest Rate Swap - March 2024 | ||
Derivative [Line Items] | ||
Term of contract, years | 15 years 6 months | |
Fixed interest rate, percentage | 5.40% | |
Initial Notional Amount ($) | $ 13,081,000 | |
Not Designated | Interest Rate Swap - December 2020 | ||
Derivative [Line Items] | ||
Term of contract, years | 3 years | |
Fixed interest rate, percentage | 2.46% | |
Initial Notional Amount ($) | $ 17,100,000 | |
Not Designated | Commodity Contract - April 2019 | ||
Derivative [Line Items] | ||
Term of contract, years | 1 year | |
Price | $ / MMBTU | 2.84 | |
Nonmonetary notional amount (in MMBtus) | MMBTU | 323,390 | |
Not Designated | Commodity Contract - April 2020 | ||
Derivative [Line Items] | ||
Term of contract, years | 1 year | |
Price | $ / MMBTU | 2.68 | |
Nonmonetary notional amount (in MMBtus) | MMBTU | 437,004 | |
Not Designated | Commodity Contract - April 2021 | ||
Derivative [Line Items] | ||
Term of contract, years | 1 year | |
Price | $ / MMBTU | 2.70 | |
Nonmonetary notional amount (in MMBtus) | MMBTU | 435,810 | |
Not Designated | Other liabilities | Interest make-whole provisions | ||
Derivative [Line Items] | ||
Liability derivatives, fair value | $ 1,085,000 | $ 1,808,000 |
Investment Funds And Other Va_3
Investment Funds And Other Variable Interest Entities (Details) $ in Thousands | 1 Months Ended | ||
Jan. 31, 2019USD ($)employee | Mar. 31, 2019USD ($)fund | Dec. 31, 2018USD ($) | |
Variable Interest Entity [Line Items] | |||
Joint venture, number of employees | employee | 0 | ||
Number of investment funds | fund | 4 | ||
Contributions to joint venture | $ 1,506 | ||
Payments to acquire interest in joint venture | 50.00% | ||
Net asset position of equity method joint ventures | $ 1,361 | $ 0 | |
Cash | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, assets | 1,355 | 1,255 | |
Restricted cash | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, assets | 156 | 156 | |
Accounts receivable | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, assets | 272 | 374 | |
Costs and estimated earnings in excess of billings | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, assets | 758 | 498 | |
Prepaid expenses and other current assets | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, assets | 190 | 190 | |
Energy assets, net | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, assets | 123,092 | 122,641 | |
Operating lease assets | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, assets | 6,124 | 0 | |
Other assets | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, assets | 1,624 | 1,613 | |
Equity method investment | $ 1,361 | ||
Accounts payable | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, liabilities | 169 | 234 | |
Accrued liabilities | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, liabilities | 3,672 | 4,146 | |
Current operating lease liabilities | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, liabilities | 84 | 0 | |
Current portions of long-term | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, liabilities | 2,263 | 1,712 | |
Long-term debt, net of deferred financing costs | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, liabilities | 26,104 | 26,461 | |
Long-term operating lease liabilities | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, liabilities | 6,271 | 0 | |
Other long-term liabilities | |||
Variable Interest Entity [Line Items] | |||
Variable interest entity, carrying amount, liabilities | $ 1,336 | $ 2,131 | |
Operating Income | |||
Variable Interest Entity [Line Items] | |||
VIE, impact of desconsolidation | $ 2,160 |
Non-Controlling Interests and_2
Non-Controlling Interests and Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2015 | |
Variable Interest Entity [Line Items] | |||||
Term of extension of call option | 6 months | 6 months | 6 months | 6 months | |
Term of extension of Call Option | 7.00% | ||||
Term of extension of put option | 6 months | 1 year | 1 year | ||
Redeemable non-controlling interests | $ 13,341 | $ 14,719 | |||
Minimum | |||||
Variable Interest Entity [Line Items] | |||||
Exercise price of put options | 659 | ||||
Maximum | |||||
Variable Interest Entity [Line Items] | |||||
Exercise price of put options | $ 917 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 150,112,000 | $ 167,410,000 |
Interest income | 133,000 | 56,000 |
Interest expense | 2,808,000 | 2,997,000 |
Depreciation and amortization of intangible assets | 8,838,000 | 6,734,000 |
Unallocated corporate activity | 0 | |
Income (loss) before taxes, excluding unallocated corporate activity | 11,136,000 | 11,595,000 |
U.S. Regions | ||
Segment Reporting Information [Line Items] | ||
Revenues | 55,597,000 | 74,691,000 |
U.S. Federal | ||
Segment Reporting Information [Line Items] | ||
Revenues | 43,057,000 | 47,785,000 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Revenues | 7,148,000 | 8,904,000 |
Non-Solar DG | ||
Segment Reporting Information [Line Items] | ||
Revenues | 21,230,000 | 18,117,000 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 23,080,000 | 17,913,000 |
Operating Segments | U.S. Regions | ||
Segment Reporting Information [Line Items] | ||
Revenues | 55,597,000 | 74,691,000 |
Interest income | 63,000 | 1,000 |
Interest expense | 857,000 | 1,191,000 |
Depreciation and amortization of intangible assets | 2,182,000 | 1,330,000 |
Income (loss) before taxes, excluding unallocated corporate activity | (278,000) | 4,618,000 |
Operating Segments | U.S. Federal | ||
Segment Reporting Information [Line Items] | ||
Revenues | 43,057,000 | 47,785,000 |
Interest income | 49,000 | 20,000 |
Interest expense | 210,000 | 241,000 |
Depreciation and amortization of intangible assets | 817,000 | 672,000 |
Income (loss) before taxes, excluding unallocated corporate activity | 5,621,000 | 5,817,000 |
Operating Segments | Canada | ||
Segment Reporting Information [Line Items] | ||
Revenues | 7,148,000 | 8,904,000 |
Interest income | 0 | 0 |
Interest expense | 164,000 | 484,000 |
Depreciation and amortization of intangible assets | 275,000 | 289,000 |
Income (loss) before taxes, excluding unallocated corporate activity | (289,000) | (2,362,000) |
Operating Segments | Non-Solar DG | ||
Segment Reporting Information [Line Items] | ||
Revenues | 21,230,000 | 18,117,000 |
Interest income | 21,000 | 35,000 |
Interest expense | 1,577,000 | 1,081,000 |
Depreciation and amortization of intangible assets | 5,216,000 | 4,064,000 |
Income (loss) before taxes, excluding unallocated corporate activity | 1,381,000 | 2,610,000 |
Operating Segments | All Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 23,080,000 | 17,913,000 |
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Depreciation and amortization of intangible assets | 348,000 | 379,000 |
Income (loss) before taxes, excluding unallocated corporate activity | 4,701,000 | 912,000 |
Unallocated corporate activity | ||
Segment Reporting Information [Line Items] | ||
Unallocated corporate activity | $ (8,008,000) | $ (6,869,000) |
Debt - Summary of Long-term De
Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Financing leases | $ 33,337 | $ 33,363 | $ 33,363 |
Debt and financing leases, gross | 259,922 | 253,873 | |
Less - current maturities | 55,731 | 26,890 | |
Less - deferred financing fees | 7,177 | 7,821 | |
Long-term debt and financing lease liabilities, less current portions and net of deferred financing fees (including amounts in VIEs of $26,104 and $26,461, respectively) | 197,014 | 219,162 | |
Future interest payments | $ 25,321 | ||
Term Loan | Variable rate term loan payable in semi-annual installments | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate, percentage | 4.85% | ||
Long-term debt, gross | $ 936 | 936 | |
Term Loan | Variable rate term loan payable in semi-annual installments | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate, percentage | 4.60% | ||
Long-term debt, gross | $ 7,426 | 7,426 | |
Term Loan | Term loan payable in quarterly installments | |||
Debt Instrument [Line Items] | |||
Fixed interest rate, percentage | 7.25% | ||
Long-term debt, gross | $ 1,464 | 1,464 | |
Term Loan | Term loan payable in monthly installments | |||
Debt Instrument [Line Items] | |||
Fixed interest rate, percentage | 6.11% | ||
Long-term debt, gross | $ 3,886 | 3,843 | |
Term Loan | Variable rate term loan payable in quarterly installments | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate, percentage | 6.10% | ||
Long-term debt, gross | $ 30,180 | 30,674 | |
Term Loan | Variable rate term loan payable in quarterly installments | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate, percentage | 5.10% | ||
Long-term debt, gross | $ 17,227 | 17,208 | |
Term Loan | Term loan payable in quarterly installments | |||
Debt Instrument [Line Items] | |||
Fixed interest rate, percentage | 4.95% | ||
Long-term debt, gross | $ 3,939 | 3,925 | |
Term Loan | Term loan payable in quarterly installments | |||
Debt Instrument [Line Items] | |||
Fixed interest rate, percentage | 5.00% | ||
Long-term debt, gross | $ 3,839 | 3,945 | |
Term Loan | Term loan payable in monthly installments | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate, percentage | 4.50% | ||
Long-term debt, gross | $ 22,081 | 22,081 | |
Term Loan | Term loan payable in quarterly installments | |||
Debt Instrument [Line Items] | |||
Fixed interest rate, percentage | 5.61% | ||
Long-term debt, gross | $ 2,791 | 2,735 | |
Construction loan, unused borrowing capacity | $ 2,742 | ||
Term Loan | Variable rate term loan payable in quarterly installments | |||
Debt Instrument [Line Items] | |||
Fixed interest rate, percentage | 5.05% | ||
Long-term debt, gross | $ 12,917 | 12,915 | |
Term Loan | Variable rate term loan payable in quarterly installments | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate, percentage | 10.10% | ||
Long-term debt, gross | $ 18,042 | 21,475 | |
Term Loan | Term loan payable in quarterly installments | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate, percentage | 5.15% | ||
Long-term debt, gross | $ 30,138 | 30,069 | |
Term Loan | Variable rate term loan payable in semi-annual installments | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate, percentage | 4.65% | ||
Long-term debt, gross | $ 9,670 | 9,668 | |
Term Loan | Variable rate term loan payable in monthly/quarterly installments | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate, percentage | 4.995% | ||
Long-term debt, gross | $ 9,077 | 9,072 | |
Revolving Senior Secured Credit Facility | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate, percentage | 4.85% | ||
Long-term debt, gross | $ 52,972 | $ 43,074 |
Uncategorized Items - amrc-2019
Label | Element | Value |
Accounting Standards Update 2017-12 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (432,000) |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,454,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,454,000) |
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (217,000) |