Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HASI | |
Entity Registrant Name | Hannon Armstrong Sustainable Infrastructure Capital, Inc. | |
Entity Central Index Key | 1561894 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,525,946 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Financing receivables | $553,600 | $552,706 |
Financing receivables held-for-sale | 40,397 | 62,275 |
Investments available-for-sale | 22,809 | 27,273 |
Real estate | 105,566 | 90,907 |
Real estate related intangible assets | 24,791 | 23,058 |
Equity method investment in affiliate | 137,507 | 143,903 |
Cash and cash equivalents | 65,456 | 58,199 |
Restricted cash and cash equivalents | 14,736 | 11,943 |
Other assets | 29,810 | 39,993 |
Total Assets | 994,672 | 1,010,257 |
Liabilities and Equity | ||
Accounts payable, accrued expenses and other | 10,962 | 11,408 |
Deferred funding obligations | 72,336 | 88,288 |
Credit facility | 321,184 | 315,748 |
Asset-backed nonrecourse notes (secured by assets of of $241 million and $248 million, respectively) | 208,585 | 208,246 |
Other nonrecourse debt (secured by financing receivables of $95 million and $108 million, respectively) | 110,954 | 112,525 |
Total Liabilities | 724,021 | 736,215 |
Equity: | ||
Preferred stock, par value $0.01 per share, 50,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, par value $0.01 per share, 450,000,000 shares authorized, 26,429,882 and 26,377,111 shares issued and outstanding, respectively | 264 | 264 |
Additional paid in capital | 295,999 | 293,635 |
Retained deficit | -30,151 | -25,006 |
Accumulated other comprehensive income | 485 | 406 |
Non-controlling interest | 4,054 | 4,743 |
Total Equity | 270,651 | 274,042 |
Total Liabilities and Equity | $994,672 | $1,010,257 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Asset-backed nonrecourse notes, secured by assets | $241 | $248 |
Other nonrecourse debt, secured by financing receivables | $95 | $108 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 26,429,882 | 26,377,111 |
Common stock, shares outstanding | 26,429,882 | 26,377,111 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Investment Revenue: | ||
Interest Income, Financing receivables | $8,328 | $4,618 |
Interest Income, Investments | 396 | 1,294 |
Rental Income | 2,088 | |
Investment Revenue | 10,812 | 5,912 |
Investment interest expense | -6,148 | -3,530 |
Net Investment Revenue | 4,664 | 2,382 |
Provision for credit losses | 0 | 0 |
Net Investment Revenue, net of provision for credit losses | 4,664 | 2,382 |
Other Investment Revenue: | ||
Gain on sale of receivables and investments | 2,870 | 1,974 |
Fee income | 226 | 1,343 |
Other Investment Revenue | 3,096 | 3,317 |
Total Revenue, net of investment interest expense and provision | 7,760 | 5,699 |
Compensation and benefits | -3,851 | -1,613 |
General and administrative | -1,505 | -1,153 |
Other, net | -227 | -60 |
Loss from equity method investment in affiliate | -53 | |
Other Expenses, net | -5,636 | -2,826 |
Net income before income taxes | 2,124 | 2,873 |
Income tax benefit (expense) | 23 | -60 |
Net Income | 2,147 | 2,813 |
Net income attributable to non-controlling interest holders | 25 | 60 |
Net Income Attributable to Controlling Shareholders | $2,122 | $2,753 |
Basic earnings per common share | $0.07 | $0.17 |
Diluted earnings per common share | $0.07 | $0.17 |
Weighted average common shares outstanding-basic | 26,386,080 | 15,892,927 |
Weighted average common shares outstanding-diluted | 26,386,080 | 16,494,309 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $2,147 | $2,813 |
Unrealized gain (loss) on available-for-sale securities, net of tax provision of $0.1 million in 2015 | 81 | -13 |
Comprehensive income | 2,228 | 2,800 |
Less: Comprehensive income attributable to non-controlling interests holders | 26 | 60 |
Comprehensive Income Attributable to Controlling Shareholders | $2,202 | $2,740 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Statement of Comprehensive Income [Abstract] | |
Unrealized gain (loss) on available-for-sale securities, tax provision | $0.10 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net Income | $2,147 | $2,813 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 764 | 500 |
Equity-based compensation | 2,201 | 450 |
Loss from equity method investment in affiliate | 53 | |
Gain on sale of financing receivables and investments | -3,255 | |
Changes in financing receivables held-for-sale | 14,907 | 16,801 |
Changes in accounts payable and accrued expenses | -1,269 | 1,190 |
Other | -575 | 757 |
Net cash provided by operating activities | 14,973 | 22,511 |
Cash flows from investing activities | ||
Purchases of financing receivables | -19,565 | -48,660 |
Principal collections from financing receivables | 39,185 | 9,644 |
Proceeds from sales of financing receivables | 12,851 | |
Purchases of investments | -5,000 | |
Principal collections from investments | 7,607 | 688 |
Proceeds from sales of investments | 2,280 | |
Purchases of real estate | -16,540 | |
Distributions received from equity method affiliate | 6,343 | |
Change in restricted cash | -2,793 | 6,804 |
Other | -78 | 20 |
Net cash provided by (used in) investing activities | 24,290 | -31,504 |
Cash flows from financing activities | ||
Proceeds from credit facility | 35,000 | 40,000 |
Principal payments on credit facility | -29,613 | |
Proceeds from nonrecourse notes | 11,626 | |
Principal payments on nonrecourse notes | -13,764 | -10,476 |
Payments on deferred funding obligations | -27,823 | -7,470 |
Payments of dividends and distributions | -7,196 | -3,707 |
Other | -236 | -1,625 |
Net cash (used in) provided by financing activities | -32,006 | 16,722 |
Increase in cash and cash equivalents | 7,257 | 7,729 |
Cash and cash equivalents at beginning of period | 58,199 | 31,846 |
Cash and cash equivalents at end of period | 65,456 | 39,575 |
Interest paid | $4,653 | $3,800 |
The_Company
The Company | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Accounting Policies [Abstract] | |||||
The Company | 1 | The Company | |||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (“the Company”) provides debt and equity to the energy efficiency and renewable energy markets. The Company and its subsidiaries are hereafter referred to as “we,” “us,” or “our.” We refer to the financings that we hold on our balance sheet as our “Portfolio.” Our Portfolio may include: | |||||
• | Financing Receivables, such as project loans, receivables and direct financing leases, | ||||
• | Investments, such as debt and equity securities, | ||||
• | Real Estate, such as land or other physical assets and related intangible assets used in sustainable infrastructure projects, and | ||||
• | Equity Investments in unconsolidated affiliates, such as projects where we hold a non-consolidated equity interest in a project. | ||||
We finance our business through cash on hand, borrowings under our credit facility, and various asset-backed securitization transactions and equity issuances. We also generate fee income through asset-backed securitizations, by providing broker/dealer services and by servicing assets owned by third parties. Some of our subsidiaries are special purpose entities that are formed for specific operations associated with financing sustainable infrastructure receivables for specific long term contracts. | |||||
In April 2013, we completed our initial public offering (“IPO”). Concurrently with the IPO, we completed a series of transactions, which are referred to as the formation transactions, that resulted in Hannon Armstrong Capital, LLC (the “Predecessor”), the entity that operated the historical business prior to the consummation of the IPO, becoming our subsidiary. Our common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “HASI.” See Note 11 for a summary of our public offerings of common stock. | |||||
We elected and qualified as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2013. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our taxable income to stockholders and maintain our qualification as a REIT. We operate our business through, and serve as the sole general partner of, our Operating Partnership subsidiary, Hannon Armstrong Sustainable Infrastructure, L.P, (the “Operating Partnership”) which was formed to acquire and directly or indirectly own the Company’s assets. We also intend to operate our business in a manner that will continue to permit us to maintain our exception from registration as an investment company under the 1940 Act. | |||||
Real Estate Acquisitions | |||||
In May 2014, we entered into a Unit Purchase Agreement (the “Purchase Agreement”) to acquire all of the outstanding member interests in American Wind Capital Company, LLC (“AWCC”) from Northwharf Nominees Limited, DBD AWCC LLC, NGP Energy Technology Partners II, L.P. and C.C. Hinckley Company, LLC in exchange for approximately $106.7 million (the “Purchase Price”), which we funded from the use of our cash on hand and our existing credit facilities. During the year ended December 31, 2014, we agreed to a working capital adjustment of approximately $0.2 million, which reduced the Purchase Price and net working capital amounts. | |||||
The unaudited pro forma summary for the three months ended March 31, 2014 presents the consolidated results as if the acquisition was completed on January 1, 2013. The pro forma information is not necessarily indicative of what our actual results of operations would have been for the period indicated, nor does it purport to represent our estimate of future results of operations. | |||||
For the three months ended | |||||
March 31, 2014 | |||||
(amounts in millions, unaudited | ) | ||||
Pro forma net investment revenue | $ | 6.9 | |||
Pro forma net income | $ | 3.3 | |||
Since the AWCC transaction, we have completed several smaller transactions for a total consideration of $19.4 million, which we funded from the use of our cash on hand and our existing credit facilities. We did not assume any indebtedness in connection with these transactions. | |||||
Through these acquisitions and additional land purchases, we expanded our portfolio of assets, to include more than 12,500 acres of land with land leases to over 20 solar projects, which we have recorded in our financial statements as real estate, and the rights to payments from land leases for a diversified portfolio of 57 wind projects, which we have recorded in our financial statements as financing receivables. | |||||
We accounted for our acquisitions as business combinations and incurred approximately $2.5 million of acquisition related costs, which we have previously expensed as acquisition costs in our consolidated statement of operations. We recorded the acquired assets (including real estate related intangibles) at fair value. We used a qualified appraiser to assist us with the determination of the fair value estimates for the majority of these assets. We expect to finalize the purchase price allocation for one of our small acquisitions during the second quarter of 2015. There were no liabilities assumed in connection with these acquisitions. | |||||
The purchase price allocation for our acquisitions, which reflects our estimates of the fair value of the assets acquired, is as follows: | |||||
As of December 31, 2014 | |||||
(amounts in millions) | |||||
Financing receivables | $ | 37.2 | |||
Real estate | 66.6 | ||||
Real estate related intangibles | 20 | ||||
Goodwill | 2.1 | ||||
Net working capital | 0.1 | ||||
Purchase Price | $ | 126 | |||
As a result of these acquisitions, we have recorded rental income of $2.1 million and interest income of $0.6 million for the three months ended March 31, 2015 in our condensed consolidated statement of operations. | |||||
Investment in Equity Method Affiliate | |||||
In October 2014, we made a $144 million investment in Strong Upwind Holdings LLC (“Strong Upwind”), a newly formed joint venture that we own with an affiliate of JPMorgan Chase & Co (“JP Morgan”). Strong Upwind purchased JPMorgan’s minority interest in four limited liability holding companies that own ten operating wind projects across five states. Each of the four holding companies is controlled and operated by a large wind energy company. The minority ownership interests in the holding companies are structured in a typical wind partnership flip structure where Strong Upwind, along with a number of other large institutional investors receive a pre-negotiated preferred return consisting of a priority distribution of the project cash flows along with tax attributes. Once this preferred return is achieved, the partnership “flips” and the holding company receives the majority of the cash flow and the institutional investors will have an on-going residual interest. We share in the cash flow and tax attributes of Strong Upwind according to a negotiated schedule. After factoring in the various ownership interests, we own between 4% and 17.5% of the holding companies based on voting percentages. We have determined that we do not have a controlling voting interest in Strong Upwind and therefore we account for our investment using the equity method. See Note 13 for additional information. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2 | Summary of Significant Accounting Policies |
Basis of Presentation | ||
The condensed consolidated financial statements reflect all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position, results of operations, comprehensive income and cash flows for the periods presented. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the entire year. Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Certain amounts in the prior year have been reclassified to conform to the current year presentation. | ||
The condensed consolidated financial statements include the accounts of the Company and its controlled subsidiaries, including the Operating Partnership. All significant intercompany transactions and balances have been eliminated in consolidation. | ||
Following the guidance for non-controlling interests in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation, references in this report to our earnings per share and our net income and shareholders’ equity attributable to common shareholders do not include amounts attributable to non-controlling interests. | ||
Financing Receivables | ||
Financing receivables include financing sustainable infrastructure project loans, receivables and direct financing leases. | ||
Unless otherwise noted, we generally have the ability and intent to hold our financing receivables for the foreseeable future and thus they are classified as held for investment. Our ability and intent to hold certain financing receivables may change from time to time depending on a number of factors, including economic, liquidity and capital conditions. The carrying value of financing receivables held for investment represents the present value of the note, lease or other payments, net of any unearned fee income, which is recognized as income over the term of the note or lease using the effective interest method. Financing receivables that are held for investment are carried, unless deemed impaired, at cost, net of any unamortized acquisition premiums or discounts and including origination and acquisition costs, as applicable. Financing receivables that we intend to sell in the short-term are classified as held-for-sale and are carried at the lower of amortized cost or fair value on our balance sheet. The proceeds from sales are recorded as an operating activity in our statement of cash flows based on our intent at the time of purchase. We may secure nonrecourse debt with the proceeds from our financing receivables. | ||
We evaluate our financing receivables for potential delinquency or impairment on at least a quarterly basis and more frequently when economic or other conditions warrant such an evaluation. When a financing receivable becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service all of its debt or other obligations, we will generally consider the financing receivable delinquent or impaired and place the financing receivable on non-accrual status and cease recognizing income from that financing receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a financing receivable’s status significantly improves regarding the debtor’s ability to service the debt or other obligations, we will remove it from non-accrual status. | ||
A financing receivable is also considered impaired as of the date when, based on current information and events, it is determined that it is probable that we will be unable to collect all amounts due in accordance with the original contracted terms. Many of our financing receivables are secured by sustainable infrastructure projects. Accordingly, we regularly evaluate the extent and impact of any credit deterioration associated with the performance and value of the underlying project, as well as the financial and operating capability of the borrower, its sponsors or the obligor as well as any guarantors. We consider a number of qualitative and quantitative factors in our assessment, including, as appropriate, a project’s operating results, loan-to-value ratios and any cash reserves, the ability of expected cash from operations to cover the cash flow requirements currently and into the future, key terms of the transaction, the ability of the borrower to refinance the transaction, other credit support from the sponsor or guarantor and the project’s collateral value. In addition, we consider the overall economic environment, the sustainable infrastructure sector, the effect of local, industry, and broader economic factors, the impact of any variation in weather and the historical and anticipated trends in interest rates, defaults and loss severities for similar transactions. | ||
If a financing receivable is considered to be impaired, we record an allowance to reduce the carrying value of the financing receivable to the present value of expected future cash flows discounted at the financing receivable’s contractual effective rate or the amount realizable from other contractual terms such as the currently estimated fair market value of the collateral less estimated selling costs, if repayment is expected solely from the collateral. We charge off financing receivables against the allowance when we determine the unpaid principal balance is uncollectible, net of recovered amounts. | ||
Investments | ||
Investments include debt securities that meet the criteria of ASC 320, Investments—Debt and Equity Securities. As a result of the sale of certain debt securities previously designated as held-to-maturity in 2014, we have designated our debt securities as available-for-sale and will carry these securities at fair value on our balance sheet from that date. Unrealized gains and losses, to the extent not considered other than temporary impairment (“OTTI”), on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income (“OCI”) in equity on our balance sheet. Previously, we recorded our debt securities as held-to-maturity and thus had carried these securities on the balance sheet at amortized cost, which was initially at cost plus any premiums or less any discounts that are amortized or accreted from or into investment interest income using the effective interest method. | ||
We evaluate our investments for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Our OTTI assessment is a subjective process requiring the use of judgments and assumptions. Accordingly, we regularly evaluate the extent and impact of any credit deterioration associated with the financial and operating performance and value of the underlying project. We consider a number of qualitative and quantitative factors in our assessment. We first consider the current fair value of the security and the duration of any unrealized loss. Other factors considered include changes in the credit rating, performance of the underlying project, key terms of the transaction and support provided by the sponsor or guarantor. | ||
To the extent that we have identified an OTTI for a security and intend to hold the investment to maturity and we do not expect that we will be required to sell the security prior to recovery of the amortized cost basis, we recognize only the credit component of OTTI in earnings. We determine the credit component using the difference between the securities’ amortized cost basis and the present value of its expected future cash flows, discounted using the effective interest method or its estimated collateral value. Any remaining unrealized loss due to factors other than credit, or the non-credit component, is recorded in accumulated OCI. | ||
To the extent we hold investments with an OTTI and if we have made the decision to sell the security or it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, we recognize the entire portion of the impairment in earnings. | ||
Premiums or discounts on investment securities are amortized or accreted into investment interest income using the effective interest method. | ||
Real Estate | ||
Real estate reflects land or other real estate held on our balance sheet. Real estate intangibles reflect the value of associated lease intangibles, net of any amortization. In accordance with ASC 805, Business Combinations, the fair value of the real estate acquired in a business combination with in-place leases is allocated to (i) the acquired tangible assets, consisting of land or other real property such as buildings, and (ii) the identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of other acquired intangible assets, based in each case on their fair values. | ||
The fair value of the tangible assets of an acquired leased property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements, if any, based on the determination of the fair values of these assets. The as-if-vacant fair value of a property is determined by management based on an appraisal of the property by a qualified appraiser. | ||
In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as intangible assets based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease, including renewal periods reasonably assured of being exercised by the lessee. The capitalized above-market lease values are amortized as a reduction of rental income and the capitalized below-market lease values are amortized as an increase to rental income. We also record, as appropriate, an intangible asset for in-place leases. The value of the leases in place at the time of the transaction is equal to the potential revenue (rent and expenses) lost if the leases were not in place (during downtime) and that would be incurred to obtain the lease. The amortization is calculated over the initial term unless management believes that it is reasonably assured that the tenant would exercise the renewal option, whereby we would amortize the value attributable to the renewal over the renewal period. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off. | ||
We record the purchases of real estate, other than in a business combination (i.e. real estate with no in-places leases), as asset acquisitions that are recorded at cost, including acquisition and closing costs. | ||
Our real estate is generally leased to tenants on a net lease basis, whereby the tenant is responsible for all operating expenses relating to the property, generally including property taxes, insurance, maintenance, repairs and capital expenditures. Revenue is recognized as rentals are earned and expenses (if any) are charged to operations as incurred. When scheduled rental revenue varies during the lease term, income is recognized on a straight-line basis, unless there is considerable risk as to collectability, so as to produce a constant periodic rent over the term of the lease. Accrued rental income is the aggregate difference between the scheduled rents which vary during the lease term and the income recognized on a straight-line basis and is recorded in other assets. | ||
Securitization of Receivables | ||
We have established various special purpose entities or securitization trusts for the purpose of securitizing certain financing receivables or other debt investments. We determined that the trusts used in securitizations are variable interest entities, as defined in ASC 810, Consolidation. We typically serve as primary or master servicer of these trusts; however, as the servicer, we do not have the power to make significant decisions impacting the performance of the trusts. Based on an analysis of the structure of the trusts, under U.S. GAAP, we have concluded that we are not the primary beneficiary of the trusts as we do not have power over the trusts’ significant activities. Therefore, we do not consolidate these trusts in our condensed consolidated financial statements. | ||
We account for transfers of financing receivables to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing, as the transferred receivables have been isolated from the transferor (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership) and we have surrendered control over the transferred receivables. When we sell receivables in securitizations, we generally retain minor interests in the form of servicing rights and residual assets, which we refer to as securitization assets. | ||
Gain or loss on the sale of receivables is calculated based on the excess of the proceeds received from the securitization (less any transaction costs) plus any retained interests obtained over the cost basis of the receivables sold. For retained interests, we generally estimate fair value based on the present value of future expected cash flows using our best estimates of the key assumptions of anticipated losses, prepayment rates, and current market discount rates commensurate with the risks involved. | ||
We initially account for all separately recognized servicing assets and servicing liabilities at fair value and subsequently measure such servicing assets and liabilities using the amortization method. We assess servicing assets for impairment at each reporting date. If the amortized cost of servicing assets is greater than the estimated fair value, we will recognize an impairment in net income. | ||
Servicing income is recognized as earned. Servicing assets and liabilities are amortized in proportion to, and over the period of, estimated net servicing income, and are periodically assessed for impairment. | ||
Our other retained interest in securitized assets, the residual assets, are classified as available-for-sale securities and carried at fair value on the condensed consolidated balance sheets in Other Assets. We generally do not sell our residual assets. Our residual assets are evaluated for impairment in a similar manner as described under “Investments” above. | ||
Interest income related to the residual assets is recognized using the effective interest rate method. If there is a change in expected cash flows related to the residual assets, we calculate a new yield based on the current amortized cost of the residual assets and the revised expected cash flows. This yield is used prospectively to recognize interest income. | ||
Modifications to Debt | ||
We evaluate any modifications to our debt in accordance with the applicable guidance in ASC 470-50, Debt-Modifications and Extinguishments. If the debt instruments are substantially modified, the modification is accounted for in the same manner as a debt extinguishment (i.e., a major modification) and the fees paid are recognized as expense at the time of the modification. Otherwise, such fees are deferred and amortized as an adjustment of interest expense over the remaining term of the modified debt instrument using the interest method. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents include short-term government securities, certificates of deposit and money market funds, all of which had an original maturity of three months or less at the date of purchase. These securities are carried at their purchase price, which approximates fair value. | ||
Restricted Cash | ||
Restricted cash includes cash and cash equivalents set aside with certain lenders primarily to support deferred funding and other obligations outstanding at the balance sheet dates. | ||
Variable Interest Entities and Equity Method Investment in Affiliate | ||
We account for our investment in entities that are considered variable interest entities under ASC 810. We perform an ongoing assessment to determine the primary beneficiary of each entity as required by ASC 810. See Securitization of Receivables above. | ||
Substantially all of the activities of the special purpose entities that are formed for the purpose of holding our financing receivables and investments on our balance sheet are closely associated with our activities. Based on our assessment, we determined that we have power over and receive the benefits of these special purpose entities; hence, we are the primary beneficiary and should consolidate these entities under the provisions of ASC 810. | ||
As described in Note 1, in October 2014, we made a $144 million investment in Strong Upwind that is jointly owned with an affiliate of JPMorgan. We own 50% of the voting stock of Strong Upwind. Based on our assessment, we have determined that Strong Upwind is a voting interest entity and that we have the ability to exercise influence over its operating and financial policies and as such we account for the investment using the equity method. We share in the cash flow and tax attributes of Strong Upwind according to a negotiated schedule. | ||
Strong Upwind purchased JPMorgan’s minority interest in four limited liability holding companies that own ten operating wind projects across five states. Each of the four holding companies is majority owned and operated by a large wind energy company. Based on our assessment, we have determined that each of the holding companies are a variable interest entity and that we have the ability to exercise influence over operating and financial policies of the holding companies, but we are not the primary beneficiary as we do not have the power to direct the most important decisions related to the most significant activities of the investment. After factoring in the various ownership interests, we own between 4% and 17.5% of the holding companies based on voting percentage. Thus we do not consolidate either Strong Upwind or the holding companies, but account for them using the equity method of accounting as described below. | ||
Under the equity method of accounting, the carrying value of our equity method investments is determined based on amounts we invested, adjusted for the equity in earnings or losses of investee allocated based on the partnership agreement, less distributions received. Because the partnership agreements contain preferences with regard to cash flows from operations, capital events and liquidation, we reflect our share of profits and losses by determining the difference between our “claim on the investee’s book value” at the end and the beginning of the period. This claim is calculated as the amount we would receive (or be obligated to pay) if the investee were to liquidate all of its assets at recorded amounts determined in accordance with U.S. GAAP and distribute the resulting cash to creditors and investors in accordance with their respective priorities. This method is commonly referred to as the hypothetical liquidation at book value method (“HLBV”). Intra-company gains and losses are eliminated for an amount equal to our interest and are reflected in the share in loss from equity method investment in affiliate in the consolidated statements of operations. Cash distributions received from our equity method investments are classified as operating cash flows to the extent of cumulative HLBV earnings. Any additional cash flows are deemed to be returns of the investment and are classified as investing cash flows. | ||
We evaluate the realization of our investment accounted for using the equity method if circumstances indicate that our investment is OTTI. OTTI impairment occurs when the estimated fair value of an investment is below the carrying value and the difference is determined to not be recoverable. This evaluation requires significant judgment regarding, but not limited to, the severity and duration of the impairment; the ability and intent to hold the securities until recovery; financial condition, liquidity, and near-term prospects of the issuer; specific events; and other factors. Based on an evaluation of our equity method investment, we determined that no impairment had occurred for three months ended March 31, 2015. | ||
Income Taxes | ||
We elected and qualified to be taxed as a REIT for U.S. federal income tax purposes, commencing with our taxable year ended December 31, 2013. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we currently distribute at least 90% of our net taxable income, excluding capital gains, to our shareholders. We intend to continue to meet the requirements for qualification as a REIT. As a REIT, we are not subject to U.S. federal corporate income tax on that portion of net income that is currently distributed to our owners. However, our taxable REIT subsidiaries (“TRS”) will generally be subject to U.S. federal, state, and local income taxes as well as taxes of foreign jurisdictions, if any. | ||
We account for income taxes of our TRS using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. | ||
We apply accounting guidance with respect to how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. This guidance requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more likely than not” to be sustained by the applicable tax authority. We are required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes U.S. federal and certain states. We have no examinations in progress, none are expected at this time, and years 2010 through 2014 are open. As of March 31, 2015 and December 31, 2014, we had no uncertain tax positions. Our policy is to recognize interest expense and penalties related to income tax matters as a component of other expense. There was no accrued interest and penalties as of March 31, 2015 and December 31, 2014, and no interest and penalties were recognized during the three months ended March 31, 2015 and 2014. | ||
Equity-Based Compensation | ||
At the time of completion of our IPO, we adopted our 2013 Equity Incentive Plan (the “2013 Plan”), which provides for grants of stock options, stock appreciation rights, restricted stock units, shares of restricted common stock, phantom shares, dividend equivalent rights, long-term incentive-plan units (“LTIP units”) and other restricted limited partnership units issued by our Operating Partnership and other equity-based awards. From time to time, we may award unvested restricted shares as compensation to members of our senior management team, our independent directors, employees, advisors, consultants and other personnel under our 2013 Plan. | ||
We recorded compensation expense for stock awards in accordance with ASC 718, Compensation—Stock Compensation. We recognize compensation expense for unvested shares that vest solely based on service conditions on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of grant, adjusted for forfeitures. For awards where the vesting is contingent upon achievement of certain performance targets, compensation expense is recognized over the requisite service period (which includes the performance period) based on our estimate of the achievement of the various performance targets, adjusted for forfeitures. Our share price at the date of grant and actual performance results at the end of the performance period determine the fair value and the number of shares that will ultimately be awarded. The award earned is generally between 0% and 150% of the initial target, depending on the extent to which the performance target are met. If minimum performance targets are not attained, no awards will be awarded. | ||
Earnings Per Share | ||
We compute earnings per share of common stock in accordance with ASC 260, Earnings Per Share. Basic earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested shares of restricted common stock or restricted stock units) by the weighted-average number of shares of common stock outstanding during the period excluding the weighted average number of unvested shares of restricted common stock or restricted stock units (“participating securities” as defined in Note 12). Diluted earnings per share is calculated by dividing net income attributable to controlling stockholders by the weighted-average number of shares of common stock outstanding during the period plus other potentially dilutive securities. No adjustment is made for shares that are anti-dilutive during a period. | ||
Segment Reporting | ||
We provide and arrange debt and equity financing for sustainable infrastructure projects and report all of our activities as one business segment. | ||
Recently Issued Accounting Pronouncements | ||
Revenue from Contracts with Customers | ||
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for us beginning in the quarter ending March 31, 2017. We have not yet selected a transition method, and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosure. | ||
Compensation – Stock Compensation | ||
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation, which amends and updates the guidance in ASC 718, as it relates to the accounting for awards with performance conditions that affect vesting after the service. The amendment provides explicit accounting guidance for when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target (for example, an initial public offering or a profitability target) could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The amendment is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and is to be applied either retrospectively to all existing performance targets outstanding or prospectively for all awards granted or modified after the effective date, with early application permitted. We are evaluating the new standard, but do not at this time expect this standard to have a material impact on our consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Fair Value Measurements | 3 | Fair Value Measurements | |||||||||
Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level hierarchy for classifying financial instruments. The levels of inputs used to determine the fair value of our financial assets and liabilities carried on the balance sheet at fair value and for those which only disclosure of fair value is required are characterized in accordance with the fair value hierarchy established by ASC 820, Fair Value Measurements. Where inputs for a financial asset or liability fall in more than one level in the fair value hierarchy, the financial asset or liability is classified in its entirety based on the lowest level input that is significant to the fair value measurement of that financial asset or liability. We use our judgment and consider factors specific to the financial assets and liabilities in determining the significance of an input to the fair value measurements. As of March 31, 2015 and December 31, 2014, only our residual assets (described in Note 5), financing receivables held-for-sale and investments available-for-sale, if any, were carried at fair value on the condensed consolidated balance sheets on a recurring basis. The three levels of the fair value hierarchy are described below: | |||||||||||
• | Level 1—Quoted prices (unadjusted) in active markets that are accessible at the measurement date. | ||||||||||
• | Level 2—Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | ||||||||||
• | Level 3—Unobservable inputs are used when little or no market data is available. | ||||||||||
Unless otherwise discussed below, fair value is measured using a discounted cash flow model, contractual terms and Level 3 unobservable inputs which consist of base interest rates and spreads over base rates which are based upon market observation and recent comparable transactions. An increase in these unobservable inputs would result in a lower fair value and a decline would result in a higher fair value. | |||||||||||
As of March 31, 2015 | |||||||||||
Fair Value | Carrying | Level | |||||||||
Value | |||||||||||
(amounts in millions) | |||||||||||
Assets | |||||||||||
Financing receivables(1) | $ | 610 | $ | 554 | Level 3 | ||||||
Financing receivables held-for-sale | 40 | 40 | Level 3 | ||||||||
Investments available-for-sale(2) | 23 | 23 | Level 3 | ||||||||
Liabilities | |||||||||||
Credit facility | $ | 321 | $ | 321 | Level 3 | ||||||
Nonrecourse debt | 126 | 111 | Level 3 | ||||||||
Asset-backed nonrecourse notes | 210 | 209 | Level 3 | ||||||||
-1 | Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $1.2 million as of March 31, 2015. | ||||||||||
-2 | The amortized costs of our investments available-for-sale as of March 31, 2015 was $22 million. | ||||||||||
As of December 31, 2014 | |||||||||||
Fair Value | Carrying | Level | |||||||||
Value | |||||||||||
(amounts in millions) | |||||||||||
Assets | |||||||||||
Financing receivables (1) | $ | 598 | $ | 553 | Level 3 | ||||||
Financing receivables held-for-sale | 62 | 62 | Level 3 | ||||||||
Investments available-for-sale(2) | 27 | 27 | Level 3 | ||||||||
Liabilities | |||||||||||
Credit facility | $ | 316 | $ | 316 | Level 3 | ||||||
Nonrecourse debt | 127 | 113 | Level 3 | ||||||||
Asset-backed nonrecourse notes | 208 | 208 | Level 3 | ||||||||
-1 | Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $1.2 million as of December 31, 2014. | ||||||||||
-2 | The amortized costs of our investments available-for-sale as of December 31, 2014, was $26.9 million. | ||||||||||
Financing Receivables and Investments | |||||||||||
The fair value of financing receivables and investments is measured using a discounted cash flow model, contractual terms and Level 3 unobservable inputs. For investments held at fair value, we used a range of interest rate spreads of 2% to 5% based upon comparable transactions. The financing receivables held for sale are carried at cost, which approximates fair value. | |||||||||||
During 2014 as part of our portfolio management process, we sold an investment designated as held-to-maturity. As a result, we have transferred all of our remaining investments in debt securities to investments available-for-sale at fair value. The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value following the transfer of our investments to available-for-sale: | |||||||||||
For the three months ended | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
(amounts in millions) | |||||||||||
Balance, beginning of period | $ | 27.3 | $ | — | |||||||
Transfers to / purchases of available-for-sale debt securities. | 5 | — | |||||||||
Payments on available-for-sale debt securities | (7.6 | ) | — | ||||||||
Sale of available-for-sale debt securities | (2.3 | ) | — | ||||||||
Gains on debt securities recorded in earnings | 0.3 | — | |||||||||
Gains on debt securities recorded in OCI | 0.1 | — | |||||||||
Balance, end of period | $ | 22.8 | $ | — | |||||||
Non-recurring Fair Value Measurements | |||||||||||
Our financial statements may include non-recurring fair value measurements related to acquisitions, if any. Assets acquired in a business combination are recorded at their fair value. We use third party valuation firms to assist us with developing our estimates of fair value. These valuations are prepared using Level 3 inputs. | |||||||||||
Concentration of Credit Risk | |||||||||||
Financial instruments that potentially subject us to concentrations of credit risk are principally cash and cash equivalents. As of March 31, 2015 and December 31, 2014, we had cash deposits held in U.S. banks of $80 million and $70 million, respectively. Included in these balances are $77 million and $66 million in bank deposits, respectively, in excess of amounts federally insured. | |||||||||||
Financing receivables, investments and leases consist of primarily U.S. federal government-backed receivables, investment grade state and local government receivables and receivables from various sustainable infrastructure projects and do not, in our view, represent a significant concentration of credit risk. See Note 6 for an analysis by type of obligor. |
NonControlling_Interest
Non-Controlling Interest | 3 Months Ended | |
Mar. 31, 2015 | ||
Noncontrolling Interest [Abstract] | ||
Non-Controlling Interest | 4 | Non-Controlling Interest |
Non-Controlling Interest in Consolidated Entities | ||
Units of limited partnership interests in the Operating Partnership (“OP units”) that are owned by other limited partners are included in non-controlling interest on our consolidated balance sheets. As of March 31, 2015 the Operating Partnership had 28,235,160 OP units outstanding; of which we owned 99% and other limited partners owned 1% or 284,992 OP units. The outstanding OP units held by outside limited partners are redeemable for cash, or at our option, for a like number of shares of our common stock. During the three months ended March 31, 2015, we exchanged 46,290 OP units held by our non-controlling interest holders for the same number of shares of our common stock. The non-controlling interest holders are generally allocated their prorate share of income and equity transactions. |
Securitization_of_Receivables
Securitization of Receivables | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Securitization of Receivables | 5 | Securitization of Receivables | |||||||
The following summarizes certain transactions between us and the securitization trusts: | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(amounts in millions) | |||||||||
Gains on securitizations | $ | 3 | $ | 2 | |||||
Purchase of receivables securitized | $ | 60 | $ | 65 | |||||
Proceeds from securitizations | $ | 63 | $ | 67 | |||||
Residual and servicing assets included in Other Assets | $ | 9 | $ | 6 | |||||
Cash received from residual assets | $ | 0.4 | $ | 0.8 | |||||
In connection with securitization transactions, we typically retain servicing responsibilities and residual assets. In certain instances, we receive annual servicing fees ranging from 0.05% to 0.20% of the outstanding balance. Included in other assets in our consolidated balance sheets are our servicing assets at amortized cost and our residual assets at fair value. Our residual assets are subordinate to investors’ interests, and their values are subject to credit, prepayment and interest rate risks on the transferred financial assets. The investors and the securitization trusts have no recourse to our other assets for failure of debtors to pay when due. In computing gains and losses on securitizations, we use the same 8% discount rate we use for the fair value calculation of residual assets, which is determined based on a review of comparable market transactions. | |||||||||
As of March 31, 2015 and December 31, 2014, our managed assets totaled $2.6 billion and $2.5 billion, respectively, of which $1.8 billion and $1.7 billion were securitized assets in the respective periods. There were no securitization credit losses in the three months ended March 31, 2015 or 2014, and no material securitization delinquencies as of March 31, 2015 and December 31, 2014. Based on the nature of the receivables and experience-to-date, we do not currently expect to incur any credit losses on the receivables sold. |
Our_Portfolio_Financing_Receiv
Our Portfolio - Financing Receivables, Investments and Real Estate | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||
Our Portfolio - Financing Receivables, Investments and Real Estate | 6 | Our Portfolio – Financing Receivables, Investments and Real Estate | |||||||||||||||||||||||
As of March 31, 2015, our Portfolio included approximately $885 million of financing receivables, investments, real estate and equity method investments on our balance sheet. The financing receivables and investments are typically collateralized contractually committed debt obligations of government entities or private high credit quality obligors and are often supported by additional forms of credit enhancement, including security interests and supplier guaranties. The real estate is typically land and related lease intangibles for long-term leases to sustainable infrastructure projects with high credit quality obligors. The equity method investment represents our investment in a partnership that holds minority equity investments in wind projects. | |||||||||||||||||||||||||
The following is an analysis of our Portfolio by type of obligor and credit quality as of March 31, 2015, with 98% of the debt and real estate portion of our Portfolio rated investment grade as shown below: | |||||||||||||||||||||||||
Investment Grade | |||||||||||||||||||||||||
Government (1) | Commercial | Commercial | Subtotal, | Equity | Total | ||||||||||||||||||||
Investment | Non-Investment | Debt and | Method | ||||||||||||||||||||||
Grade(2) | Grade (3) | Real Estate | Investment(4) | ||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||
Financing receivables | $ | 304 | $ | 249 | $ | 1 | $ | 554 | $ | $ | 554 | ||||||||||||||
Financing receivables held-for-sale | 40 | — | — | 40 | — | 40 | |||||||||||||||||||
Investments | — | 9 | 14 | 23 | — | 23 | |||||||||||||||||||
Real estate(5) | — | 130 | — | 130 | — | 130 | |||||||||||||||||||
Equity method investment | — | — | — | — | 138 | 138 | |||||||||||||||||||
Total | $ | 344 | $ | 388 | $ | 15 | $ | 747 | $ | 138 | $ | 885 | |||||||||||||
% of Debt and Real Estate Portfolio | 46 | % | 52 | % | 2 | % | 100 | % | N/A | N/A | |||||||||||||||
Average Remaining Balance(6) | $ | 11 | $ | 9 | $ | 14 | $ | 10 | $ | 14 | $ | 10 | |||||||||||||
-1 | Transactions where the ultimate obligor is the U.S. federal government or state or local governments where the obligors are rated investment grade (either by an independent rating agency or based upon our internal credit analysis). This amount includes $261 million of U.S. federal government transactions and $83 million of transactions where the ultimate obligors are state or local governments. Transactions may have guaranties of energy savings from third party service providers, the majority of which are entities rated investment grade by an independent rating agency. | ||||||||||||||||||||||||
-2 | Transactions where the projects or the ultimate obligors are commercial entities, including institutions such as hospitals or universities, that have been rated investment grade (either by an independent rating agency or based on our internal credit analysis). Of this total, $59 million of the transactions have been rated investment grade by an independent rating agency. | ||||||||||||||||||||||||
-3 | Transactions where the projects or the ultimate obligors are commercial entities, including institutions such as hospitals or universities, that have ratings below investment grade (either by an independent rating agency or using our internal credit analysis). | ||||||||||||||||||||||||
-4 | Consists of minority ownership interest in operating wind projects in which we earn a preferred return. | ||||||||||||||||||||||||
-5 | Includes the real estate and the lease intangible assets through which we receive scheduled lease payments, typically under long-term triple net lease agreements. | ||||||||||||||||||||||||
-6 | Excludes 73 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $21 million. | ||||||||||||||||||||||||
The components of financing receivables as of March 31, 2015 and December 31, 2014, were as follows: | |||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(amounts in millions) | |||||||||||||||||||||||||
Financing receivables | |||||||||||||||||||||||||
Financing or minimum lease payments(1) | $ | 733 | $ | 723 | |||||||||||||||||||||
Unearned interest income | (175 | ) | (166 | ) | |||||||||||||||||||||
Allowance for credit losses | (1 | ) | (1 | ) | |||||||||||||||||||||
Unearned fee income, net of initial direct costs | (3 | ) | (3 | ) | |||||||||||||||||||||
Financing receivables(1) | $ | 554 | $ | 553 | |||||||||||||||||||||
-1 | Excludes $40 million and $62 million in financing receivables held-for-sale as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||
In accordance with the terms of certain financing receivables purchase agreements, payments of the purchase price is scheduled to be made over time, generally within twelve months of entering into the transaction, and as a result, we have recorded deferred funding obligations of $72 million and $88 million as of March 31, 2015 and December 31, 2014, respectively. We have $1.6 million and $3.0 million in restricted cash as of March 31, 2015 and December 31, 2014, respectively, which will be used to pay these funding obligations. | |||||||||||||||||||||||||
The following table provides a summary of our anticipated maturity dates of our financing receivables and investments and the weighted average yield for each range of maturities as of March 31, 2015: | |||||||||||||||||||||||||
Total | Less than | 1-5 years | 5-10 years | More than | |||||||||||||||||||||
1 year | 10 years | ||||||||||||||||||||||||
(amounts in millions) | |||||||||||||||||||||||||
Financing Receivables(1) | |||||||||||||||||||||||||
Payment due by period | $ | 554 | $ | 5 | $ | 62 | $ | 36 | $ | 451 | |||||||||||||||
Weighted average yield by period(2) | 5.4 | % | 6.6 | % | 7.2 | % | 5.4 | % | 5.2 | % | |||||||||||||||
Investments | |||||||||||||||||||||||||
Payment due by period | $ | 23 | $ | — | $ | 14 | $ | — | $ | 9 | |||||||||||||||
Weighted average yield by period | 5.3 | % | — | % | 5.8 | % | — | % | 4.6 | % | |||||||||||||||
-1 | Excludes financing receivables held-for-sale of $40 million. | ||||||||||||||||||||||||
-2 | Excludes yield on remaining $0.8 million loan balance that is on non-accrual status after the $1.2 million allowance for loan loss recorded as of March 2015. | ||||||||||||||||||||||||
The components of our real estate portfolio as of March 31, 2015 and December 31, 2014, were as follows: | |||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(amounts in millions) | |||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||
Land | $ | 106 | $ | 91 | |||||||||||||||||||||
Real estate related intangibles | 25 | 23 | |||||||||||||||||||||||
Accumulated amortization of real estate intangibles | (1 | ) | (0 | ) | |||||||||||||||||||||
Real Estate | $ | 130 | $ | 114 | |||||||||||||||||||||
The real estate related intangible assets will be amortized on a straight-line basis over the lease terms with expirations dates that range between the years 2047 and 2061 assuming expected extensions. There are conservation easement agreements covering two of our properties that limit the use of the property upon expiration of the respective leases. As of March 31, 2015, the future amortization expense of these intangible assets is as follows: | |||||||||||||||||||||||||
Year Ending December 31, | (amounts in | ||||||||||||||||||||||||
millions) | |||||||||||||||||||||||||
From April 1, 2015 to December 31, 2015 | $ | 0.5 | |||||||||||||||||||||||
2016 | 0.6 | ||||||||||||||||||||||||
2017 | 0.6 | ||||||||||||||||||||||||
2018 | 0.6 | ||||||||||||||||||||||||
2019 | 0.6 | ||||||||||||||||||||||||
2020 | 0.6 | ||||||||||||||||||||||||
Thereafter | 21.3 | ||||||||||||||||||||||||
Total | $ | 24.8 | |||||||||||||||||||||||
Our real estate is rented under long term land lease agreements with expiration dates that range between the years 2033 and 2044 under the initial terms and 2047 and 2061 assuming anticipated extensions by the lessees. As of March 31, 2015, the future minimum rental income under our land lease agreements is as follows: | |||||||||||||||||||||||||
Year Ending December 31, | (amounts in | ||||||||||||||||||||||||
millions) | |||||||||||||||||||||||||
From April 1, 2015 to December 31, 2015 | $ | 8 | |||||||||||||||||||||||
2016 | 10 | ||||||||||||||||||||||||
2017 | 10 | ||||||||||||||||||||||||
2018 | 10 | ||||||||||||||||||||||||
2019 | 10 | ||||||||||||||||||||||||
2020 | 10 | ||||||||||||||||||||||||
Thereafter | 333 | ||||||||||||||||||||||||
Total | $ | 391 | |||||||||||||||||||||||
In 2013, we recorded an allowance of $11.0 million on the remaining $11.8 million balance of a $24 million loan to a wholly owned subsidiary of EnergySource to be used for a geothermal project. During 2014, we agreed to cap our recovery at $2 million in exchange for the ability to realize a portion of the proceeds from the sale of land held by EnergySource and thus we charged off $9.8 million of the receivable against the allowance resulting in a remaining allowance of $1.2 million. In April 2015, we entered into an agreement where we agreed to allow EnergySource to borrow against a pending land sale from an unrelated third party in exchange for a $0.4 million cash payment and an agreement to receive an additional $0.4 million upon the closing of the land sale. Thus, we expect our final recovery from the land sale to equal the net balance of $0.8 million. However, there can be no assurance as to the actual timing or ultimate recovery from any land sale or whether any land sale will in fact occur. The project is considered a variable interest entity and the maximum exposure to loss as of March 31, 2015 and December 31, 2014 is the net balance of $0.8 million, which represented our estimate of the realizable sale value of assets and was the average balance for the respective period, net of the allowance. No interest income was accrued or collected in cash on the loan for the three months ended March 31, 2015 or 2014. Certain of our executive officers and directors own an indirect minority interest in EnergySource following the distribution of the Predecessor’s ownership interest prior to our IPO. | |||||||||||||||||||||||||
We had no other financing receivables, investments or leases on nonaccrual status as of March 31, 2015 or December 31, 2014. There was no provision for credit losses for the three months ended March 31, 2015 or 2014. We did not have any loan modifications that qualify as trouble debt restructurings for the three months ended March 31, 2015 or 2014. |
Credit_Facility
Credit Facility | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Text Block [Abstract] | |||||
Credit Facility | 7 | Credit Facility | |||
In July 2013, we entered into a $350 million senior secured revolving credit facility through newly-created, wholly-owned special purpose subsidiaries (the “Borrowers”). The terms of the credit facility are set forth in the Loan Agreement (G&I) (the “G&I Loan Agreement”) and the Loan Agreement (PF) and related amendments as described below (the “PF Loan Agreement”, and together with the G&I Loan Agreement, the “Loan Agreements”). | |||||
Since that time, we have entered into a number of amendments intended to increase the flexibility and borrowing capability of the credit facility as described below: | |||||
• | November 2013 - the PF Loan Agreement was amended to provide us with the flexibility to negotiate an alternative interest rate margin on certain loans with the approval of the administrative agent. | ||||
• | May 2014 - the PF Loan Agreement was amended to increase its overall borrowing capacity by $200 million to $500 million, increase the maximum borrowings allowed at any point in time under the PF Loan Agreement by $100 million to $250 million and expand the collateral eligibility criteria to reflect current market opportunities in distributed energy assets. | ||||
• | August 2014 - we entered into an amended and restated Loan Agreement which a) incorporated the terms of the first two amendments, b) added additional subsidiaries as Borrowers, c) provided for a fixed rate loan option and d) modified the timing of borrowings on certain projects. | ||||
• | September 2014 - the Loan Agreements were amended to reduce the required notice period for advances. | ||||
• | December 2014 - the Loan Agreements were amended to extend the maturity date of the facility to July 19, 2019 and to increase the PF Loan Agreement overall borrowing capacity by $475 million to $975 million and increase the maximum borrowings allowed at any point in time under the PF Loan Agreement by $75 million to $325 million. The G&I Loan Agreement was amended to decrease the G&I Loan Agreement overall borrowing capacity by $25 million to $375 million and decrease the maximum borrowings allowed at any point in time under the G&I Loan Agreement by $75 million to $125 million. | ||||
• | April 2015 – the PF Loan Agreement was amended to increase its overall borrowing capacity by $75 million to $1.05 billion and to increase the maximum borrowings allowed at any point in time under the PF Loan Agreement by $75 million to $400 million; provided, however, that upon the repayment of borrowings related to certain projects and the release of the related collateral, the maximum loan amount shall be reduced on a dollar for dollar basis until it is reduced to $350 million. The G&I Loan Agreement was amended to decrease the G&I Loan Agreement overall borrowing capacity by $75 million to $300 million and decrease the maximum borrowings allowed at any point in time under the G&I Loan Agreement by $25 million to $100 million. Additionally, we may, with the consent of the administrative agent, borrow against new projects before such projects become approved financings but after they have been pledged as collateral. | ||||
We have guaranteed the obligations of the Borrowers under each of the Loan Agreements pursuant to (x) a Continuing Guaranty, dated July 19, 2013, and (y) a Limited Guaranty, dated July 19, 2013. As part of our August and December 2014 amendments, we entered into amended and restated versions of these guaranties. | |||||
The Loan Agreements, as amended, provide for senior secured revolving credit facilities with total maximum advances of $1.35 billion (i) in the case of the G&I Loan Agreement, in the principal amount of $100 million to be used to leverage certain qualifying government and institutional financings entered into by us, with maximum total advances (without giving effect to prepayments or repayments) of $300 million, and (ii) in the case of the PF Loan Agreement, in the principal amount of $400 million to be used to leverage certain qualifying project financings entered into by us, with maximum total advances (without giving effect to prepayments or repayments) of $1.05 billion. The $400 million is subject to being reduced to $350 million as described above in the April 2015 amendment. The scheduled termination date of each of the Loan Agreements is July 19, 2019. Loans under the G&I Loan Agreement bear interest at a rate equal to the London Interbank Offered Rate (“LIBOR”) plus 1.50% or, under certain circumstances, the Federal Funds Rate plus 1.50%. Loans under the PF Loan Agreement bear interest at a rate equal to LIBOR plus 2.50% or, under certain circumstances, the Federal Funds Rate plus 2.50%, or a specifically negotiated rate on certain loans as approved by the administrative agent. Under the PF Loan Agreement, we also have the option to borrow at a fixed rate of interest until the expiration of the credit facility in July 2019. The fixed rate is determined by agreement with the Administrative Agent and is based on the prevailing US SWAP rate of an equivalent term to the average-life of the fixed rate portion of the borrowing plus an agreed upon margin. | |||||
Any financing we propose to be included in the borrowing base as collateral under the Loan Agreements is subject to the approval of the administrative agent in its sole discretion. As part of the December 2014 amendment, we agreed to pay a placement fee of $20,000 for each financing added to the borrowing base after the date of the amendment. The amount eligible to be drawn under the Loan Agreements for purposes of financing such investments will be based on a discount to the value of each investment or an applicable valuation percentage. Under the G&I Loan Agreement, the applicable valuation percentage for non-delinquent investments is 80% in the case of a U.S. federal government obligor, 75% in the case of an institutional obligor or a state and local obligor, and with respect to other obligors or in certain circumstances, such other percentage as the administrative agent may prescribe. Under the PF Loan Agreement, the applicable valuation percentage is 67% or such other percentage as the administrative agent may prescribe. The sum of approved financings after taking into account the valuation percentages and any changes in the valuation of the financings in accordance with the Loan Agreements determines the borrowing capacity, subject to the overall facility limits described above. | |||||
We had outstanding borrowings under our credit facilities of approximately $321 million and $316 million as of March 31, 2015 and December 31, 2014, respectively. We pledged approximately $463 million and $422 million of financing receivables as collateral for the credit facility as of March 31, 2015 and December 31, 2014, respectively. The weighted average short-term borrowing rate of our credit facilities was 2.4% as of March 31, 2015 and December 31, 2014. We incurred approximately $11 million of costs associated with the Loan Agreements that have been capitalized (included in other assets on the condensed consolidated balance sheets) and will be amortized on a straight-line basis over the term of the Loan Agreements. On each monthly payment date, the Borrowers shall also pay to the administrative agent, for the benefit of the lenders, certain availability fees for each Loan Agreement equal to 0.50%, divided by 360, multiplied by the excess of the available borrowing capacity under each Loan Agreement over the actual amount borrowed under such Loan Agreement. | |||||
Each Loan Agreement contains terms, conditions, covenants, and representations and warranties that are customary and typical for a transaction of this nature. The Loan Agreements contain various affirmative and negative covenants, and limitations on the incurrence of liens and indebtedness, investments, fundamental organizational changes, dispositions, changes in the nature of business, transactions with affiliates, use of proceeds and stock repurchases. | |||||
Each Loan Agreement also includes customary events of default, including the existence of a default in more than 50% of underlying financings. The occurrence of an event of default may result in termination of the Loan Agreements, acceleration of amounts due under both Loan Agreements, and accrual of default interest at a rate of LIBOR plus 2.50% in the case of the G&I Loan Agreement and at a rate of LIBOR plus 5.00% in the case of the PF Loan Agreement. | |||||
The Loan Agreements require that we maintain the following financial covenants: | |||||
Covenant | Covenant | ||||
Threshold | |||||
Minimum Liquidity (defined as available borrowings under the Loan Agreements plus unrestricted cash divided by actual borrowings) of greater than: | 5 | % | |||
12 month rolling Net Interest Margin of greater than: | zero | ||||
Maximum Debt to Equity Ratio of less than: (1) | 4 to 1 | ||||
-1 | Debt is defined as total indebtedness excluding accounts payable and accrued expenses and nonrecourse debt. | ||||
We were in compliance with the financial covenants of the Loan Agreements at each reporting date that such covenants were applicable. |
Nonrecourse_Debt
Nonrecourse Debt | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Nonrecourse Debt | 8 | Nonrecourse Debt | |||||||||||
Asset-Backed Nonrecourse Notes | |||||||||||||
In December 2013, through certain of our subsidiaries, we issued in a private placement $100 million of nonrecourse asset-backed Notes (the “Notes”) with a fixed interest rate of 2.79%. The Notes mature in December 2019 and are secured by certain of our financing receivables included on our balance sheet. The Noteholders can only look to the cash flows of the pledged financing receivables to satisfy the Notes and we are not liable for nonpayment by the obligor of the financing receivables securing these Notes. As of March 31, 2015 and December 31, 2014, we had approximately $90 million and $92 million, respectively, of Notes outstanding, which were secured by approximately $104 million and $104 million, respectively, of our financing receivables included on our balance sheet. Upon maturity, the Notes are anticipated to have an outstanding debt balance of approximately $57 million. The Notes may be prepaid prior to December 2018, with a make-whole payment calculated as the present value of remaining principal and interest payments using a discount rate equal to the comparable-maturity treasury yield plus 50 basis points. After December 2018, the Notes may be prepaid at par. At maturity, we will have the option to rollover the remaining debt with a mutually agreed term and rate or repay the outstanding balance. | |||||||||||||
In October 2014, through certain of our subsidiaries, we entered into a $115 million nonrecourse asset-backed loan agreement (the “ABS Loan Agreement”) with a fixed interest rate of 5.74%. The ABS Loan Agreement matures in September 2021. Principal and interest is paid quarterly starting in March 2015 with a minimum principal payment amount equal to one-half percent (0.5%) of the principal amount of the loan plus additional principal payments based on available cash flow and a target debt balance. HAT Holdings II LLC, an indirect TRS subsidiary of the Company, has pledged its 100% ownership of the equity in HA Wind LLC which in turn has pledged all of its assets, which consists primarily of a 50% ownership interest in Strong Upwind, as security for the loan. The loan is otherwise non-recourse to the Company. The expected remaining debt balance to be repaid at the maturity date is approximately $20 million. The ABS Loan Agreement contains terms, conditions, covenants, and representations and warranties from HA Wind LLC that are customary and typical for a transaction of this nature, including limitations on the incurrence of liens and indebtedness, investments, fundamental organizational changes, dispositions, changes in the nature of business, transactions with affiliates, use of proceeds and stock repurchases. The ABS Loan Agreement also includes customary events of default, the occurrence of which may result in termination of the Loan Agreement, acceleration of amounts due, and accrual of default interest at a rate of 7.74%. | |||||||||||||
We incurred approximately $2 million of costs associated with our asset-backed nonrecourse debt that have been capitalized (included in other assets on the consolidated balance sheets) and is being amortized using the effective interest method over the respective term. | |||||||||||||
Other Nonrecourse Debt | |||||||||||||
We have other nonrecourse debt that was used to finance certain of our financing receivables for the term of the financing receivable. Amounts due under nonrecourse notes are secured by financing receivables with a carrying value of approximately $95 million and $108 million as of March 31, 2015 and December 31, 2014, respectively, and there is no recourse to our general assets. Debt service payment requirements, in a majority of cases, are equal to or less than the cash flows received from the underlying financing receivables. | |||||||||||||
Analyses of other nonrecourse debt by interest rate are as follows: | |||||||||||||
As of March 31, 2015 | Balance | Maturity | |||||||||||
(amounts in millions) | |||||||||||||
Fixed-rate promissory notes, interest rates from 2.26% to 5.00% per annum | $ | 34 | 2015 to 2032 | ||||||||||
Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum | 54 | 2015 to 2031 | |||||||||||
Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum | 23 | 2015 to 2031 | |||||||||||
Other nonrecourse debt | $ | 111 | |||||||||||
As of December 31, 2014 | Balance | Maturity | |||||||||||
(amounts in millions) | |||||||||||||
Fixed-rate promissory notes, interest rates from 2.06% to 5.00% per annum | $ | 32 | 2015 to 2032 | ||||||||||
Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum | 58 | 2015 to 2031 | |||||||||||
Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum | 23 | 2015 to 2031 | |||||||||||
Other nonrecourse debt | $ | 113 | |||||||||||
The stated minimum maturities of nonrecourse debt as of March 31, 2015, were as follows: | |||||||||||||
Nonrecourse Debt | |||||||||||||
As of March 31, | Asset | Other | Total | ||||||||||
Backed | Nonrecourse | ||||||||||||
Nonrecourse | Debt | ||||||||||||
Notes | |||||||||||||
(amounts in millions) | |||||||||||||
2016 | $ | 20 | $ | 16 | $ | 36 | |||||||
2017 | 20 | 16 | 36 | ||||||||||
2018 | 21 | 13 | 34 | ||||||||||
2019 | 19 | 7 | 26 | ||||||||||
2020 | 81 | 4 | 85 | ||||||||||
Thereafter | 48 | 55 | 103 | ||||||||||
$ | 209 | $ | 111 | $ | 320 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2015 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 9 | Commitments and Contingencies |
Litigation | ||
We are not currently subject to any legal proceedings that are probable of having a material adverse effect on our financial position, results of operations or cash flows. |
Income_Tax
Income Tax | 3 Months Ended | |
Mar. 31, 2015 | ||
Income Tax Disclosure [Abstract] | ||
Income Tax | 10 | Income Tax |
We elected and qualified to be taxed as a REIT, commencing with our taxable year ending December 31, 2013. As a REIT, we are not subject to federal corporate income tax on that portion of net income that is currently distributed to our owners. However, our TRS will generally be subject to federal, state, and local income taxes as well as taxes of foreign jurisdictions, if any. Deferred tax assets and liabilities for our TRS are recognized for the estimated future tax consequences attributable to the differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. | ||
We recorded a tax benefit/(expense) of $0.0 million and $(0.1) million for the three months ended March 31, 2015 and 2014, respectively, related to the activities of our TRS. The income tax benefit and expenses recorded were determined using a federal rate of 35% and a combined state rate, net of federal benefit, of 5%. We have recorded a deferred tax liability in Accounts payable, accrued expenses and other on our consolidated balance sheet of $0.1 million related to the activities of our TRS as of March 31, 2015 and December 31, 2014. |
Equity
Equity | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Equity | 11 | Equity | |||||||||||
Dividends and Distributions | |||||||||||||
Our board of directors declared the following dividends in 2014 and 2015: | |||||||||||||
Announced Date | Record | Pay | Amount | ||||||||||
Date | Date | per | |||||||||||
share | |||||||||||||
3/13/14 | 3/27/14 | 4/9/14 | $ | 0.22 | |||||||||
6/17/14 | 6/27/14 | 7/10/14 | $ | 0.22 | |||||||||
9/16/14 | 9/26/14 | 10/9/14 | $ | 0.22 | |||||||||
12/8/14 | 12/19/14 | 1/9/15 | $ | 0.26 | |||||||||
3/17/15 | 3/30/15 | 4/9/15 | $ | 0.26 | |||||||||
We completed the following public offerings of common stock: | |||||||||||||
Closing Date | Shares | Price Per | Net | ||||||||||
Issued1 | Share | Proceeds 2 | |||||||||||
(amounts in millions, except per share amounts) | |||||||||||||
4/23/13 | 14.2 | $ | 12.5 | $ | 160 | ||||||||
4/29/14 | 5.8 | $ | 13 | $ | 70 | ||||||||
10/31/14 | 4.6 | $ | 13.6 | $ | 59 | ||||||||
5/4/15 | 4.6 | $ | 18.5 | $ | 81 | ||||||||
1 | Includes shares issued in connection with the exercise of the underwriters’ option to purchase additional shares. | ||||||||||||
2 | Net proceeds from the offerings is shown after deducting underwriting discounts, commissions, other offering costs and, in the case of our initial public offering, formation transaction costs. | ||||||||||||
Registration Statements | |||||||||||||
Resale Shelf Registration Statement | |||||||||||||
In August 2014, we filed a registration statement with the SEC registering the resale, from time to time, by certain persons of up to 3,178,410 shares of common stock, comprised of: (1) 1,741,238 shares of common stock issued in connection with our formation transactions at the time of our IPO, (2) 331,282 shares of common stock issuable upon exchange of OP units issued in connection with our formation transactions, which are exchangeable on a one-for-one basis, into cash or, at our option, shares of our common stock and (3) 1,105,890 shares of common stock granted under the 2013 Plan to our directors, officers and other employees. | |||||||||||||
The registration of the resale of these shares does not necessarily mean that all or any of these shares will be offered or sold by the holders. We have not and will not receive any proceeds from the sale of these shares by the selling stockholders. Brokerage commissions and similar costs related to the future sale of these shares, if any, will be borne by the selling stockholders. | |||||||||||||
Company Shelf Registration Statement | |||||||||||||
In August 2014, we filed a registration statement with the SEC registering the possible offering and sale of up to $500 million of any combination of our common stock, preferred stock, depositary shares, and warrants and rights (collectively referred to as the “securities”). We may offer the securities directly, through agents, or to or through underwriters. Sales of the securities may be made by means of ordinary brokers’ transactions on the NYSE or otherwise at market prices prevailing at the time of sale or at negotiated prices. The specific terms of the securities offering and the names of any underwriters involved in the sale of the securities will be set forth in the applicable prospectus supplement. Our equity offerings starting in October 2014 were completed using this shelf registration. | |||||||||||||
Awards of Shares of Restricted Common Stock under our 2013 Plan | |||||||||||||
Under the 2013 Plan, we have issued both awards with service conditions and awards with performance conditions. During the three months ended March 31, 2015, our board of directors awarded employees and directors 174,585 shares of restricted common stock that vest in 2015 to 2019 and 390,131 shares of restricted common stock to certain employees that vest upon the achievement of certain performance targets. We recognize compensation expense as described in Note 2. | |||||||||||||
For the three months ended March 31, 2015 and 2014, we recorded $2.2 million and $0.5 million of equity-based compensation expense, respectively. The total unrecognized compensation expense related to awards of shares of restricted common stock is $16.4 million as of March 31, 2015, which is expected to be recognized over a weighted-average term of approximately two years. The calculation of the compensation expense assumes a forfeiture rate up to 5%. | |||||||||||||
A summary of the unvested shares of restricted common stock that have been issued is as follows: | |||||||||||||
Restricted | Weighted | Value | |||||||||||
Shares of | Average | (in millions) | |||||||||||
Common | Share | ||||||||||||
Stock | Price | ||||||||||||
Balance — December 31, 2013 | 598,815 | 12.5 | $ | 7.5 | |||||||||
Granted | 529,100 | 14.18 | 7.5 | ||||||||||
Vested | (149,709 | ) | 12.5 | (1.9 | ) | ||||||||
Forfeited | (13,386 | ) | 12.99 | (0.2 | ) | ||||||||
Balance — December 31, 2014 | 964,820 | 13.41 | $ | 12.9 | |||||||||
Granted | 564,716 | 17.27 | 9.8 | ||||||||||
Vested | (9,250 | ) | 14.61 | (0.1 | ) | ||||||||
Forfeited | — | — | — | ||||||||||
Ending Balance — March 31, 2015 | 1,520,286 | 14.84 | $ | 22.6 | |||||||||
Earnings_per_Share_of_Common_S
Earnings per Share of Common Stock | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings per Share of Common Stock | 12. Earnings per Share of Common Stock | ||||||||
Net income or loss figures are presented net of income or loss attributable to the non-controlling OP units in the earnings per share calculations. The non-controlling limited partners’ outstanding OP units have also been excluded from the diluted earnings per share calculation attributable to common stockholders as there would be no effect on the amounts since the limited partners’ share of income would also be added back to net income. The weighted average number of OP units attributable to the non-controlling interest was 325,110 and 361,414 for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. Any shares of common stock which, if included in the diluted earnings per share calculation, would have an anti-dilutive effect have been excluded from the diluted earnings per share calculation. As of March 31, 2015 and 2014, there were 1,520,286 and 605,815 shares of unvested restricted common stock outstanding, respectively. | |||||||||
The computation of basic and diluted earnings per common share is as follows: | |||||||||
Three Months Ended March 31, | |||||||||
Numerator: | 2015 | 2014 | |||||||
(in thousands, except share and per | |||||||||
share data) | |||||||||
Net income attributable to controlling shareholders and participating securities | $ | 2,122 | $ | 2,753 | |||||
Less: Dividends paid on participating securities | (375 | ) | (127 | ) | |||||
Undistributed earnings attributable to participating securities | — | — | |||||||
Net income attributable to controlling shareholders | $ | 1,747 | $ | 2,626 | |||||
Denominator: | |||||||||
Weighted-average number of common shares — basic | 26,386,080 | 15,892,927 | |||||||
Weighted-average number of common shares — diluted | 26,386,080 | 16,494,309 | |||||||
Basic earnings per common share | $ | 0.07 | $ | 0.17 | |||||
Diluted earnings per common share | $ | 0.07 | $ | 0.17 | |||||
Equity_Method_Investment_in_Af
Equity Method Investment in Affiliate | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||
Equity Method Investment in Affiliate | 13. Equity Method Investment in Affiliate | ||||||||
Strong Upwind | |||||||||
As described in Notes 1 and 2, in October 2014, we made a $144 million investment in Strong Upwind that is jointly owned and operated with an affiliate of JPMorgan. We account for our investment using the equity method of accounting and have elected to recognize earnings from these investments one quarter in arrears to allow for the receipt of financial information. For the quarter ended March 31, 2015, we have recognized a loss of $0.1 million from our equity method investment in Strong Upwind. | |||||||||
The following is a summary of the consolidated financial position and results of operations of the holding companies, accounted for using the equity method: | |||||||||
As of and for the | |||||||||
year ended | |||||||||
December 31 | |||||||||
2014 | 2013 | ||||||||
($ in millions, unaudited) | |||||||||
Current Assets | $ | 51 | $ | 46 | |||||
Total Assets | $ | 1,504 | $ | 1,580 | |||||
Current Liabilities | $ | 17 | $ | 16 | |||||
Total Liabilities | $ | 68 | $ | 70 | |||||
Members’ Equity | $ | 1,436 | $ | 1,510 | |||||
Revenue | $ | 155 | $ | 142 | |||||
Income from Continuing Operations | $ | 44 | $ | 16 | |||||
Net Income | $ | 44 | $ | 16 |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events |
For a discussion of subsequent events occurring after March 31, 2015, see Note 11 relating to our follow on offering of common stock, Note 6 relating to our recovery from our EnergySource loan and Note 7 relating to our credit facility amendment. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The condensed consolidated financial statements reflect all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position, results of operations, comprehensive income and cash flows for the periods presented. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the entire year. Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Certain amounts in the prior year have been reclassified to conform to the current year presentation. | |
The condensed consolidated financial statements include the accounts of the Company and its controlled subsidiaries, including the Operating Partnership. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Following the guidance for non-controlling interests in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation, references in this report to our earnings per share and our net income and shareholders’ equity attributable to common shareholders do not include amounts attributable to non-controlling interests. | |
Financing Receivables | Financing Receivables |
Financing receivables include financing sustainable infrastructure project loans, receivables and direct financing leases. | |
Unless otherwise noted, we generally have the ability and intent to hold our financing receivables for the foreseeable future and thus they are classified as held for investment. Our ability and intent to hold certain financing receivables may change from time to time depending on a number of factors, including economic, liquidity and capital conditions. The carrying value of financing receivables held for investment represents the present value of the note, lease or other payments, net of any unearned fee income, which is recognized as income over the term of the note or lease using the effective interest method. Financing receivables that are held for investment are carried, unless deemed impaired, at cost, net of any unamortized acquisition premiums or discounts and including origination and acquisition costs, as applicable. Financing receivables that we intend to sell in the short-term are classified as held-for-sale and are carried at the lower of amortized cost or fair value on our balance sheet. The proceeds from sales are recorded as an operating activity in our statement of cash flows based on our intent at the time of purchase. We may secure nonrecourse debt with the proceeds from our financing receivables. | |
We evaluate our financing receivables for potential delinquency or impairment on at least a quarterly basis and more frequently when economic or other conditions warrant such an evaluation. When a financing receivable becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service all of its debt or other obligations, we will generally consider the financing receivable delinquent or impaired and place the financing receivable on non-accrual status and cease recognizing income from that financing receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a financing receivable’s status significantly improves regarding the debtor’s ability to service the debt or other obligations, we will remove it from non-accrual status. | |
A financing receivable is also considered impaired as of the date when, based on current information and events, it is determined that it is probable that we will be unable to collect all amounts due in accordance with the original contracted terms. Many of our financing receivables are secured by sustainable infrastructure projects. Accordingly, we regularly evaluate the extent and impact of any credit deterioration associated with the performance and value of the underlying project, as well as the financial and operating capability of the borrower, its sponsors or the obligor as well as any guarantors. We consider a number of qualitative and quantitative factors in our assessment, including, as appropriate, a project’s operating results, loan-to-value ratios and any cash reserves, the ability of expected cash from operations to cover the cash flow requirements currently and into the future, key terms of the transaction, the ability of the borrower to refinance the transaction, other credit support from the sponsor or guarantor and the project’s collateral value. In addition, we consider the overall economic environment, the sustainable infrastructure sector, the effect of local, industry, and broader economic factors, the impact of any variation in weather and the historical and anticipated trends in interest rates, defaults and loss severities for similar transactions. | |
If a financing receivable is considered to be impaired, we record an allowance to reduce the carrying value of the financing receivable to the present value of expected future cash flows discounted at the financing receivable’s contractual effective rate or the amount realizable from other contractual terms such as the currently estimated fair market value of the collateral less estimated selling costs, if repayment is expected solely from the collateral. We charge off financing receivables against the allowance when we determine the unpaid principal balance is uncollectible, net of recovered amounts. | |
Financing Receivables | |
Financing receivables include financing sustainable infrastructure project loans, receivables and direct financing leases. | |
Unless otherwise noted, we generally have the ability and intent to hold our financing receivables for the foreseeable future and thus they are classified as held for investment. Our ability and intent to hold certain financing receivables may change from time to time depending on a number of factors, including economic, liquidity and capital conditions. The carrying value of financing receivables held for investment represents the present value of the note, lease or other payments, net of any unearned fee income, which is recognized as income over the term of the note or lease using the effective interest method. Financing receivables that are held for investment are carried, unless deemed impaired, at cost, net of any unamortized acquisition premiums or discounts and including origination and acquisition costs, as applicable. Financing receivables that we intend to sell in the short-term are classified as held-for-sale and are carried at the lower of amortized cost or fair value on our balance sheet. The proceeds from sales are recorded as an operating activity in our statement of cash flows based on our intent at the time of purchase. We may secure nonrecourse debt with the proceeds from our financing receivables. | |
We evaluate our financing receivables for potential delinquency or impairment on at least a quarterly basis and more frequently when economic or other conditions warrant such an evaluation. When a financing receivable becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service all of its debt or other obligations, we will generally consider the financing receivable delinquent or impaired and place the financing receivable on non-accrual status and cease recognizing income from that financing receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a financing receivable’s status significantly improves regarding the debtor’s ability to service the debt or other obligations, we will remove it from non-accrual status. | |
A financing receivable is also considered impaired as of the date when, based on current information and events, it is determined that it is probable that we will be unable to collect all amounts due in accordance with the original contracted terms. Many of our financing receivables are secured by sustainable infrastructure projects. Accordingly, we regularly evaluate the extent and impact of any credit deterioration associated with the performance and value of the underlying project, as well as the financial and operating capability of the borrower, its sponsors or the obligor as well as any guarantors. We consider a number of qualitative and quantitative factors in our assessment, including, as appropriate, a project’s operating results, loan-to-value ratios and any cash reserves, the ability of expected cash from operations to cover the cash flow requirements currently and into the future, key terms of the transaction, the ability of the borrower to refinance the transaction, other credit support from the sponsor or guarantor and the project’s collateral value. In addition, we consider the overall economic environment, the sustainable infrastructure sector, the effect of local, industry, and broader economic factors, the impact of any variation in weather and the historical and anticipated trends in interest rates, defaults and loss severities for similar transactions. | |
If a financing receivable is considered to be impaired, we record an allowance to reduce the carrying value of the financing receivable to the present value of expected future cash flows discounted at the financing receivable’s contractual effective rate or the amount realizable from other contractual terms such as the currently estimated fair market value of the collateral less estimated selling costs, if repayment is expected solely from the collateral. We charge off financing receivables against the allowance when we determine the unpaid principal balance is uncollectible, net of recovered amounts. | |
Investments | Investments |
Investments include debt securities that meet the criteria of ASC 320, Investments—Debt and Equity Securities. As a result of the sale of certain debt securities previously designated as held-to-maturity in 2014, we have designated our debt securities as available-for-sale and will carry these securities at fair value on our balance sheet from that date. Unrealized gains and losses, to the extent not considered other than temporary impairment (“OTTI”), on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income (“OCI”) in equity on our balance sheet. Previously, we recorded our debt securities as held-to-maturity and thus had carried these securities on the balance sheet at amortized cost, which was initially at cost plus any premiums or less any discounts that are amortized or accreted from or into investment interest income using the effective interest method. | |
We evaluate our investments for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Our OTTI assessment is a subjective process requiring the use of judgments and assumptions. Accordingly, we regularly evaluate the extent and impact of any credit deterioration associated with the financial and operating performance and value of the underlying project. We consider a number of qualitative and quantitative factors in our assessment. We first consider the current fair value of the security and the duration of any unrealized loss. Other factors considered include changes in the credit rating, performance of the underlying project, key terms of the transaction and support provided by the sponsor or guarantor. | |
To the extent that we have identified an OTTI for a security and intend to hold the investment to maturity and we do not expect that we will be required to sell the security prior to recovery of the amortized cost basis, we recognize only the credit component of OTTI in earnings. We determine the credit component using the difference between the securities’ amortized cost basis and the present value of its expected future cash flows, discounted using the effective interest method or its estimated collateral value. Any remaining unrealized loss due to factors other than credit, or the non-credit component, is recorded in accumulated OCI. | |
To the extent we hold investments with an OTTI and if we have made the decision to sell the security or it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, we recognize the entire portion of the impairment in earnings. | |
Premiums or discounts on investment securities are amortized or accreted into investment interest income using the effective interest method. | |
Real Estate | Real Estate |
Real estate reflects land or other real estate held on our balance sheet. Real estate intangibles reflect the value of associated lease intangibles, net of any amortization. In accordance with ASC 805, Business Combinations, the fair value of the real estate acquired in a business combination with in-place leases is allocated to (i) the acquired tangible assets, consisting of land or other real property such as buildings, and (ii) the identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of other acquired intangible assets, based in each case on their fair values. | |
The fair value of the tangible assets of an acquired leased property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements, if any, based on the determination of the fair values of these assets. The as-if-vacant fair value of a property is determined by management based on an appraisal of the property by a qualified appraiser. | |
In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as intangible assets based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease, including renewal periods reasonably assured of being exercised by the lessee. The capitalized above-market lease values are amortized as a reduction of rental income and the capitalized below-market lease values are amortized as an increase to rental income. We also record, as appropriate, an intangible asset for in-place leases. The value of the leases in place at the time of the transaction is equal to the potential revenue (rent and expenses) lost if the leases were not in place (during downtime) and that would be incurred to obtain the lease. The amortization is calculated over the initial term unless management believes that it is reasonably assured that the tenant would exercise the renewal option, whereby we would amortize the value attributable to the renewal over the renewal period. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off. | |
We record the purchases of real estate, other than in a business combination (i.e. real estate with no in-places leases), as asset acquisitions that are recorded at cost, including acquisition and closing costs. | |
Our real estate is generally leased to tenants on a net lease basis, whereby the tenant is responsible for all operating expenses relating to the property, generally including property taxes, insurance, maintenance, repairs and capital expenditures. Revenue is recognized as rentals are earned and expenses (if any) are charged to operations as incurred. When scheduled rental revenue varies during the lease term, income is recognized on a straight-line basis, unless there is considerable risk as to collectability, so as to produce a constant periodic rent over the term of the lease. Accrued rental income is the aggregate difference between the scheduled rents which vary during the lease term and the income recognized on a straight-line basis and is recorded in other assets. | |
Securitization of Receivables | Securitization of Receivables |
We have established various special purpose entities or securitization trusts for the purpose of securitizing certain financing receivables or other debt investments. We determined that the trusts used in securitizations are variable interest entities, as defined in ASC 810, Consolidation. We typically serve as primary or master servicer of these trusts; however, as the servicer, we do not have the power to make significant decisions impacting the performance of the trusts. Based on an analysis of the structure of the trusts, under U.S. GAAP, we have concluded that we are not the primary beneficiary of the trusts as we do not have power over the trusts’ significant activities. Therefore, we do not consolidate these trusts in our condensed consolidated financial statements. | |
We account for transfers of financing receivables to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing, as the transferred receivables have been isolated from the transferor (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership) and we have surrendered control over the transferred receivables. When we sell receivables in securitizations, we generally retain minor interests in the form of servicing rights and residual assets, which we refer to as securitization assets. | |
Gain or loss on the sale of receivables is calculated based on the excess of the proceeds received from the securitization (less any transaction costs) plus any retained interests obtained over the cost basis of the receivables sold. For retained interests, we generally estimate fair value based on the present value of future expected cash flows using our best estimates of the key assumptions of anticipated losses, prepayment rates, and current market discount rates commensurate with the risks involved. | |
We initially account for all separately recognized servicing assets and servicing liabilities at fair value and subsequently measure such servicing assets and liabilities using the amortization method. We assess servicing assets for impairment at each reporting date. If the amortized cost of servicing assets is greater than the estimated fair value, we will recognize an impairment in net income. | |
Servicing income is recognized as earned. Servicing assets and liabilities are amortized in proportion to, and over the period of, estimated net servicing income, and are periodically assessed for impairment. | |
Our other retained interest in securitized assets, the residual assets, are classified as available-for-sale securities and carried at fair value on the condensed consolidated balance sheets in Other Assets. We generally do not sell our residual assets. Our residual assets are evaluated for impairment in a similar manner as described under “Investments” above. | |
Interest income related to the residual assets is recognized using the effective interest rate method. If there is a change in expected cash flows related to the residual assets, we calculate a new yield based on the current amortized cost of the residual assets and the revised expected cash flows. This yield is used prospectively to recognize interest income. | |
Modifications to Debt | Modifications to Debt |
We evaluate any modifications to our debt in accordance with the applicable guidance in ASC 470-50, Debt-Modifications and Extinguishments. If the debt instruments are substantially modified, the modification is accounted for in the same manner as a debt extinguishment (i.e., a major modification) and the fees paid are recognized as expense at the time of the modification. Otherwise, such fees are deferred and amortized as an adjustment of interest expense over the remaining term of the modified debt instrument using the interest method. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents include short-term government securities, certificates of deposit and money market funds, all of which had an original maturity of three months or less at the date of purchase. These securities are carried at their purchase price, which approximates fair value. | |
Restricted Cash | Restricted Cash |
Restricted cash includes cash and cash equivalents set aside with certain lenders primarily to support deferred funding and other obligations outstanding at the balance sheet dates. | |
Variable Interest Entities and Equity Method Investment in Affiliate | Variable Interest Entities and Equity Method Investment in Affiliate |
We account for our investment in entities that are considered variable interest entities under ASC 810. We perform an ongoing assessment to determine the primary beneficiary of each entity as required by ASC 810. See Securitization of Receivables above. | |
Substantially all of the activities of the special purpose entities that are formed for the purpose of holding our financing receivables and investments on our balance sheet are closely associated with our activities. Based on our assessment, we determined that we have power over and receive the benefits of these special purpose entities; hence, we are the primary beneficiary and should consolidate these entities under the provisions of ASC 810. | |
As described in Note 1, in October 2014, we made a $144 million investment in Strong Upwind that is jointly owned with an affiliate of JPMorgan. We own 50% of the voting stock of Strong Upwind. Based on our assessment, we have determined that Strong Upwind is a voting interest entity and that we have the ability to exercise influence over its operating and financial policies and as such we account for the investment using the equity method. We share in the cash flow and tax attributes of Strong Upwind according to a negotiated schedule. | |
Strong Upwind purchased JPMorgan’s minority interest in four limited liability holding companies that own ten operating wind projects across five states. Each of the four holding companies is majority owned and operated by a large wind energy company. Based on our assessment, we have determined that each of the holding companies are a variable interest entity and that we have the ability to exercise influence over operating and financial policies of the holding companies, but we are not the primary beneficiary as we do not have the power to direct the most important decisions related to the most significant activities of the investment. After factoring in the various ownership interests, we own between 4% and 17.5% of the holding companies based on voting percentage. Thus we do not consolidate either Strong Upwind or the holding companies, but account for them using the equity method of accounting as described below. | |
Under the equity method of accounting, the carrying value of our equity method investments is determined based on amounts we invested, adjusted for the equity in earnings or losses of investee allocated based on the partnership agreement, less distributions received. Because the partnership agreements contain preferences with regard to cash flows from operations, capital events and liquidation, we reflect our share of profits and losses by determining the difference between our “claim on the investee’s book value” at the end and the beginning of the period. This claim is calculated as the amount we would receive (or be obligated to pay) if the investee were to liquidate all of its assets at recorded amounts determined in accordance with U.S. GAAP and distribute the resulting cash to creditors and investors in accordance with their respective priorities. This method is commonly referred to as the hypothetical liquidation at book value method (“HLBV”). Intra-company gains and losses are eliminated for an amount equal to our interest and are reflected in the share in loss from equity method investment in affiliate in the consolidated statements of operations. Cash distributions received from our equity method investments are classified as operating cash flows to the extent of cumulative HLBV earnings. Any additional cash flows are deemed to be returns of the investment and are classified as investing cash flows. | |
We evaluate the realization of our investment accounted for using the equity method if circumstances indicate that our investment is OTTI. OTTI impairment occurs when the estimated fair value of an investment is below the carrying value and the difference is determined to not be recoverable. This evaluation requires significant judgment regarding, but not limited to, the severity and duration of the impairment; the ability and intent to hold the securities until recovery; financial condition, liquidity, and near-term prospects of the issuer; specific events; and other factors. Based on an evaluation of our equity method investment, we determined that no impairment had occurred for three months ended March 31, 2015. | |
Income Taxes | Income Taxes |
We elected and qualified to be taxed as a REIT for U.S. federal income tax purposes, commencing with our taxable year ended December 31, 2013. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we currently distribute at least 90% of our net taxable income, excluding capital gains, to our shareholders. We intend to continue to meet the requirements for qualification as a REIT. As a REIT, we are not subject to U.S. federal corporate income tax on that portion of net income that is currently distributed to our owners. However, our taxable REIT subsidiaries (“TRS”) will generally be subject to U.S. federal, state, and local income taxes as well as taxes of foreign jurisdictions, if any. | |
We account for income taxes of our TRS using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. | |
We apply accounting guidance with respect to how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. This guidance requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more likely than not” to be sustained by the applicable tax authority. We are required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes U.S. federal and certain states. We have no examinations in progress, none are expected at this time, and years 2010 through 2014 are open. As of March 31, 2015 and December 31, 2014, we had no uncertain tax positions. Our policy is to recognize interest expense and penalties related to income tax matters as a component of other expense. There was no accrued interest and penalties as of March 31, 2015 and December 31, 2014, and no interest and penalties were recognized during the three months ended March 31, 2015 and 2014. | |
Equity-Based Compensation | Equity-Based Compensation |
At the time of completion of our IPO, we adopted our 2013 Equity Incentive Plan (the “2013 Plan”), which provides for grants of stock options, stock appreciation rights, restricted stock units, shares of restricted common stock, phantom shares, dividend equivalent rights, long-term incentive-plan units (“LTIP units”) and other restricted limited partnership units issued by our Operating Partnership and other equity-based awards. From time to time, we may award unvested restricted shares as compensation to members of our senior management team, our independent directors, employees, advisors, consultants and other personnel under our 2013 Plan. | |
We recorded compensation expense for stock awards in accordance with ASC 718, Compensation—Stock Compensation. We recognize compensation expense for unvested shares that vest solely based on service conditions on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of grant, adjusted for forfeitures. For awards where the vesting is contingent upon achievement of certain performance targets, compensation expense is recognized over the requisite service period (which includes the performance period) based on our estimate of the achievement of the various performance targets, adjusted for forfeitures. Our share price at the date of grant and actual performance results at the end of the performance period determine the fair value and the number of shares that will ultimately be awarded. The award earned is generally between 0% and 150% of the initial target, depending on the extent to which the performance target are met. If minimum performance targets are not attained, no awards will be awarded. | |
Earnings Per Share | Earnings Per Share |
We compute earnings per share of common stock in accordance with ASC 260, Earnings Per Share. Basic earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested shares of restricted common stock or restricted stock units) by the weighted-average number of shares of common stock outstanding during the period excluding the weighted average number of unvested shares of restricted common stock or restricted stock units (“participating securities” as defined in Note 12). Diluted earnings per share is calculated by dividing net income attributable to controlling stockholders by the weighted-average number of shares of common stock outstanding during the period plus other potentially dilutive securities. No adjustment is made for shares that are anti-dilutive during a period. | |
Segment Reporting | Segment Reporting |
We provide and arrange debt and equity financing for sustainable infrastructure projects and report all of our activities as one business segment. | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
Revenue from Contracts with Customers | |
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for us beginning in the quarter ending March 31, 2017. We have not yet selected a transition method, and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosure. | |
Compensation – Stock Compensation | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation, which amends and updates the guidance in ASC 718, as it relates to the accounting for awards with performance conditions that affect vesting after the service. The amendment provides explicit accounting guidance for when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target (for example, an initial public offering or a profitability target) could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The amendment is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and is to be applied either retrospectively to all existing performance targets outstanding or prospectively for all awards granted or modified after the effective date, with early application permitted. We are evaluating the new standard, but do not at this time expect this standard to have a material impact on our consolidated financial statements. |
The_Company_Tables
The Company (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Accounting Policies [Abstract] | |||||
Summary of Unaudited Pro Forma Information | The unaudited pro forma summary for the three months ended March 31, 2014 presents the consolidated results as if the acquisition was completed on January 1, 2013. The pro forma information is not necessarily indicative of what our actual results of operations would have been for the period indicated, nor does it purport to represent our estimate of future results of operations. | ||||
For the three months ended | |||||
March 31, 2014 | |||||
(amounts in millions, unaudited | ) | ||||
Pro forma net investment revenue | $ | 6.9 | |||
Pro forma net income | $ | 3.3 | |||
Schedule of Purchase Price Allocation | The purchase price allocation for our acquisitions, which reflects our estimates of the fair value of the assets acquired, is as follows: | ||||
As of December 31, 2014 | |||||
(amounts in millions) | |||||
Financing receivables | $ | 37.2 | |||
Real estate | 66.6 | ||||
Real estate related intangibles | 20 | ||||
Goodwill | 2.1 | ||||
Net working capital | 0.1 | ||||
Purchase Price | $ | 126 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Summary of Fair Value and Carrying Value of Financial Assets and Liabilities | |||||||||||
As of March 31, 2015 | |||||||||||
Fair Value | Carrying | Level | |||||||||
Value | |||||||||||
(amounts in millions) | |||||||||||
Assets | |||||||||||
Financing receivables(1) | $ | 610 | $ | 554 | Level 3 | ||||||
Financing receivables held-for-sale | 40 | 40 | Level 3 | ||||||||
Investments available-for-sale(2) | 23 | 23 | Level 3 | ||||||||
Liabilities | |||||||||||
Credit facility | $ | 321 | $ | 321 | Level 3 | ||||||
Nonrecourse debt | 126 | 111 | Level 3 | ||||||||
Asset-backed nonrecourse notes | 210 | 209 | Level 3 | ||||||||
-1 | Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $1.2 million as of March 31, 2015. | ||||||||||
-2 | The amortized costs of our investments available-for-sale as of March 31, 2015 was $22 million. | ||||||||||
As of December 31, 2014 | |||||||||||
Fair Value | Carrying | Level | |||||||||
Value | |||||||||||
(amounts in millions) | |||||||||||
Assets | |||||||||||
Financing receivables (1) | $ | 598 | $ | 553 | Level 3 | ||||||
Financing receivables held-for-sale | 62 | 62 | Level 3 | ||||||||
Investments available-for-sale(2) | 27 | 27 | Level 3 | ||||||||
Liabilities | |||||||||||
Credit facility | $ | 316 | $ | 316 | Level 3 | ||||||
Nonrecourse debt | 127 | 113 | Level 3 | ||||||||
Asset-backed nonrecourse notes | 208 | 208 | Level 3 | ||||||||
-1 | Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $1.2 million as of December 31, 2014. | ||||||||||
-2 | The amortized costs of our investments available-for-sale as of December 31, 2014, was $26.9 million. | ||||||||||
Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities | The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value following the transfer of our investments to available-for-sale: | ||||||||||
For the three months ended | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
(amounts in millions) | |||||||||||
Balance, beginning of period | $ | 27.3 | $ | — | |||||||
Transfers to / purchases of available-for-sale debt securities. | 5 | — | |||||||||
Payments on available-for-sale debt securities | (7.6 | ) | — | ||||||||
Sale of available-for-sale debt securities | (2.3 | ) | — | ||||||||
Gains on debt securities recorded in earnings | 0.3 | — | |||||||||
Gains on debt securities recorded in OCI | 0.1 | — | |||||||||
Balance, end of period | $ | 22.8 | $ | — |
Securitization_of_Receivables_
Securitization of Receivables (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Summary of Certain Transactions between us and Securitization Trusts | The following summarizes certain transactions between us and the securitization trusts: | ||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(amounts in millions) | |||||||||
Gains on securitizations | $ | 3 | $ | 2 | |||||
Purchase of receivables securitized | $ | 60 | $ | 65 | |||||
Proceeds from securitizations | $ | 63 | $ | 67 | |||||
Residual and servicing assets included in Other Assets | $ | 9 | $ | 6 | |||||
Cash received from residual assets | $ | 0.4 | $ | 0.8 |
Our_Portfolio_Financing_Receiv1
Our Portfolio - Financing Receivables, Investments and Real Estate (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||
Analysis of Portfolio by Type of Obligor and Credit Quality | The following is an analysis of our Portfolio by type of obligor and credit quality as of March 31, 2015, with 98% of the debt and real estate portion of our Portfolio rated investment grade as shown below: | ||||||||||||||||||||||||
Investment Grade | |||||||||||||||||||||||||
Government (1) | Commercial | Commercial | Subtotal, | Equity | Total | ||||||||||||||||||||
Investment | Non-Investment | Debt and | Method | ||||||||||||||||||||||
Grade(2) | Grade (3) | Real Estate | Investment(4) | ||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||
Financing receivables | $ | 304 | $ | 249 | $ | 1 | $ | 554 | $ | $ | 554 | ||||||||||||||
Financing receivables held-for-sale | 40 | — | — | 40 | — | 40 | |||||||||||||||||||
Investments | — | 9 | 14 | 23 | — | 23 | |||||||||||||||||||
Real estate(5) | — | 130 | — | 130 | — | 130 | |||||||||||||||||||
Equity method investment | — | — | — | — | 138 | 138 | |||||||||||||||||||
Total | $ | 344 | $ | 388 | $ | 15 | $ | 747 | $ | 138 | $ | 885 | |||||||||||||
% of Debt and Real Estate Portfolio | 46 | % | 52 | % | 2 | % | 100 | % | N/A | N/A | |||||||||||||||
Average Remaining Balance(6) | $ | 11 | $ | 9 | $ | 14 | $ | 10 | $ | 14 | $ | 10 | |||||||||||||
-1 | Transactions where the ultimate obligor is the U.S. federal government or state or local governments where the obligors are rated investment grade (either by an independent rating agency or based upon our internal credit analysis). This amount includes $261 million of U.S. federal government transactions and $83 million of transactions where the ultimate obligors are state or local governments. Transactions may have guaranties of energy savings from third party service providers, the majority of which are entities rated investment grade by an independent rating agency. | ||||||||||||||||||||||||
-2 | Transactions where the projects or the ultimate obligors are commercial entities, including institutions such as hospitals or universities, that have been rated investment grade (either by an independent rating agency or based on our internal credit analysis). Of this total, $59 million of the transactions have been rated investment grade by an independent rating agency. | ||||||||||||||||||||||||
-3 | Transactions where the projects or the ultimate obligors are commercial entities, including institutions such as hospitals or universities, that have ratings below investment grade (either by an independent rating agency or using our internal credit analysis). | ||||||||||||||||||||||||
-4 | Consists of minority ownership interest in operating wind projects in which we earn a preferred return. | ||||||||||||||||||||||||
-5 | Includes the real estate and the lease intangible assets through which we receive scheduled lease payments, typically under long-term triple net lease agreements. | ||||||||||||||||||||||||
-6 | Excludes 73 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $21 million. | ||||||||||||||||||||||||
Components of Financing Receivables | The components of financing receivables as of March 31, 2015 and December 31, 2014, were as follows: | ||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(amounts in millions) | |||||||||||||||||||||||||
Financing receivables | |||||||||||||||||||||||||
Financing or minimum lease payments(1) | $ | 733 | $ | 723 | |||||||||||||||||||||
Unearned interest income | (175 | ) | (166 | ) | |||||||||||||||||||||
Allowance for credit losses | (1 | ) | (1 | ) | |||||||||||||||||||||
Unearned fee income, net of initial direct costs | (3 | ) | (3 | ) | |||||||||||||||||||||
Financing receivables(1) | $ | 554 | $ | 553 | |||||||||||||||||||||
-1 | Excludes $40 million and $62 million in financing receivables held-for-sale as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||
Summary of Anticipated Maturity Dates of Financing Receivables and Investments and Weighted Average Yield | The following table provides a summary of our anticipated maturity dates of our financing receivables and investments and the weighted average yield for each range of maturities as of March 31, 2015: | ||||||||||||||||||||||||
Total | Less than | 1-5 years | 5-10 years | More than | |||||||||||||||||||||
1 year | 10 years | ||||||||||||||||||||||||
(amounts in millions) | |||||||||||||||||||||||||
Financing Receivables(1) | |||||||||||||||||||||||||
Payment due by period | $ | 554 | $ | 5 | $ | 62 | $ | 36 | $ | 451 | |||||||||||||||
Weighted average yield by period(2) | 5.4 | % | 6.6 | % | 7.2 | % | 5.4 | % | 5.2 | % | |||||||||||||||
Investments | |||||||||||||||||||||||||
Payment due by period | $ | 23 | $ | — | $ | 14 | $ | — | $ | 9 | |||||||||||||||
Weighted average yield by period | 5.3 | % | — | % | 5.8 | % | — | % | 4.6 | % | |||||||||||||||
-1 | Excludes financing receivables held-for-sale of $40 million. | ||||||||||||||||||||||||
-2 | Excludes yield on remaining $0.8 million loan balance that is on non-accrual status after the $1.2 million allowance for loan loss recorded as of March 2015. | ||||||||||||||||||||||||
Components of Real Estate Portfolio | The components of our real estate portfolio as of March 31, 2015 and December 31, 2014, were as follows: | ||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(amounts in millions) | |||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||
Land | $ | 106 | $ | 91 | |||||||||||||||||||||
Real estate related intangibles | 25 | 23 | |||||||||||||||||||||||
Accumulated amortization of real estate intangibles | (1 | ) | (0 | ) | |||||||||||||||||||||
Real Estate | $ | 130 | $ | 114 | |||||||||||||||||||||
Future Amortization Expenses Related to Intangible Assets | As of March 31, 2015, the future amortization expense of these intangible assets is as follows: | ||||||||||||||||||||||||
Year Ending December 31, | (amounts in | ||||||||||||||||||||||||
millions) | |||||||||||||||||||||||||
From April 1, 2015 to December 31, 2015 | $ | 0.5 | |||||||||||||||||||||||
2016 | 0.6 | ||||||||||||||||||||||||
2017 | 0.6 | ||||||||||||||||||||||||
2018 | 0.6 | ||||||||||||||||||||||||
2019 | 0.6 | ||||||||||||||||||||||||
2020 | 0.6 | ||||||||||||||||||||||||
Thereafter | 21.3 | ||||||||||||||||||||||||
Total | $ | 24.8 | |||||||||||||||||||||||
Future Minimum Rental Income under Land Lease Agreements | As of March 31, 2015, the future minimum rental income under our land lease agreements is as follows: | ||||||||||||||||||||||||
Year Ending December 31, | (amounts in | ||||||||||||||||||||||||
millions) | |||||||||||||||||||||||||
From April 1, 2015 to December 31, 2015 | $ | 8 | |||||||||||||||||||||||
2016 | 10 | ||||||||||||||||||||||||
2017 | 10 | ||||||||||||||||||||||||
2018 | 10 | ||||||||||||||||||||||||
2019 | 10 | ||||||||||||||||||||||||
2020 | 10 | ||||||||||||||||||||||||
Thereafter | 333 | ||||||||||||||||||||||||
Total | $ | 391 | |||||||||||||||||||||||
Credit_Facility_Tables
Credit Facility (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Text Block [Abstract] | |||||
Summary of Required Covenant Included in Loan Agreements | The Loan Agreements require that we maintain the following financial covenants: | ||||
Covenant | Covenant | ||||
Threshold | |||||
Minimum Liquidity (defined as available borrowings under the Loan Agreements plus unrestricted cash divided by actual borrowings) of greater than: | 5 | % | |||
12 month rolling Net Interest Margin of greater than: | zero | ||||
Maximum Debt to Equity Ratio of less than: (1) | 4 to 1 | ||||
-1 | Debt is defined as total indebtedness excluding accounts payable and accrued expenses and nonrecourse debt. |
Nonrecourse_Debt_Tables
Nonrecourse Debt (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Analysis of Other Nonrecourse Debt by Interest Rate | Analyses of other nonrecourse debt by interest rate are as follows: | ||||||||||||
As of March 31, 2015 | Balance | Maturity | |||||||||||
(amounts in millions) | |||||||||||||
Fixed-rate promissory notes, interest rates from 2.26% to 5.00% per annum | $ | 34 | 2015 to 2032 | ||||||||||
Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum | 54 | 2015 to 2031 | |||||||||||
Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum | 23 | 2015 to 2031 | |||||||||||
Other nonrecourse debt | $ | 111 | |||||||||||
As of December 31, 2014 | Balance | Maturity | |||||||||||
(amounts in millions) | |||||||||||||
Fixed-rate promissory notes, interest rates from 2.06% to 5.00% per annum | $ | 32 | 2015 to 2032 | ||||||||||
Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum | 58 | 2015 to 2031 | |||||||||||
Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum | 23 | 2015 to 2031 | |||||||||||
Other nonrecourse debt | $ | 113 | |||||||||||
Schedule of Minimum Maturities of Nonrecourse Debt | The stated minimum maturities of nonrecourse debt as of March 31, 2015, were as follows: | ||||||||||||
Nonrecourse Debt | |||||||||||||
As of March 31, | Asset | Other | Total | ||||||||||
Backed | Nonrecourse | ||||||||||||
Nonrecourse | Debt | ||||||||||||
Notes | |||||||||||||
(amounts in millions) | |||||||||||||
2016 | $ | 20 | $ | 16 | $ | 36 | |||||||
2017 | 20 | 16 | 36 | ||||||||||
2018 | 21 | 13 | 34 | ||||||||||
2019 | 19 | 7 | 26 | ||||||||||
2020 | 81 | 4 | 85 | ||||||||||
Thereafter | 48 | 55 | 103 | ||||||||||
$ | 209 | $ | 111 | $ | 320 | ||||||||
Equity_Tables
Equity (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Summary of Dividends Declared by Board of Directors | Our board of directors declared the following dividends in 2014 and 2015: | ||||||||||||
Announced Date | Record | Pay | Amount | ||||||||||
Date | Date | per | |||||||||||
share | |||||||||||||
3/13/14 | 3/27/14 | 4/9/14 | $ | 0.22 | |||||||||
6/17/14 | 6/27/14 | 7/10/14 | $ | 0.22 | |||||||||
9/16/14 | 9/26/14 | 10/9/14 | $ | 0.22 | |||||||||
12/8/14 | 12/19/14 | 1/9/15 | $ | 0.26 | |||||||||
3/17/15 | 3/30/15 | 4/9/15 | $ | 0.26 | |||||||||
Schedule of Common Stock Public Offerings | We completed the following public offerings of common stock: | ||||||||||||
Closing Date | Shares | Price Per | Net | ||||||||||
Issued1 | Share | Proceeds 2 | |||||||||||
(amounts in millions, except per share amounts) | |||||||||||||
4/23/13 | 14.2 | $ | 12.5 | $ | 160 | ||||||||
4/29/14 | 5.8 | $ | 13 | $ | 70 | ||||||||
10/31/14 | 4.6 | $ | 13.6 | $ | 59 | ||||||||
5/4/15 | 4.6 | $ | 18.5 | $ | 81 | ||||||||
1 | Includes shares issued in connection with the exercise of the underwriters’ option to purchase additional shares. | ||||||||||||
2 | Net proceeds from the offerings is shown after deducting underwriting discounts, commissions, other offering costs and, in the case of our initial public offering, formation transaction costs. | ||||||||||||
Summary of Unvested Shares of Restricted Common Stock | A summary of the unvested shares of restricted common stock that have been issued is as follows: | ||||||||||||
Restricted | Weighted | Value | |||||||||||
Shares of | Average | (in millions) | |||||||||||
Common | Share | ||||||||||||
Stock | Price | ||||||||||||
Balance — December 31, 2013 | 598,815 | 12.5 | $ | 7.5 | |||||||||
Granted | 529,100 | 14.18 | 7.5 | ||||||||||
Vested | (149,709 | ) | 12.5 | (1.9 | ) | ||||||||
Forfeited | (13,386 | ) | 12.99 | (0.2 | ) | ||||||||
Balance — December 31, 2014 | 964,820 | 13.41 | $ | 12.9 | |||||||||
Granted | 564,716 | 17.27 | 9.8 | ||||||||||
Vested | (9,250 | ) | 14.61 | (0.1 | ) | ||||||||
Forfeited | — | — | — | ||||||||||
Ending Balance — March 31, 2015 | 1,520,286 | 14.84 | $ | 22.6 | |||||||||
Earnings_per_Share_of_Common_S1
Earnings per Share of Common Stock (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The computation of basic and diluted earnings per common share is as follows: | ||||||||
Three Months Ended March 31, | |||||||||
Numerator: | 2015 | 2014 | |||||||
(in thousands, except share and per | |||||||||
share data) | |||||||||
Net income attributable to controlling shareholders and participating securities | $ | 2,122 | $ | 2,753 | |||||
Less: Dividends paid on participating securities | (375 | ) | (127 | ) | |||||
Undistributed earnings attributable to participating securities | — | — | |||||||
Net income attributable to controlling shareholders | $ | 1,747 | $ | 2,626 | |||||
Denominator: | |||||||||
Weighted-average number of common shares — basic | 26,386,080 | 15,892,927 | |||||||
Weighted-average number of common shares — diluted | 26,386,080 | 16,494,309 | |||||||
Basic earnings per common share | $ | 0.07 | $ | 0.17 | |||||
Diluted earnings per common share | $ | 0.07 | $ | 0.17 | |||||
Equity_Method_Investment_in_Af1
Equity Method Investment in Affiliate (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||
Summary of Consolidated Financial Position and Results of Operations of Holding Companies, Accounted for Using Equity Method | The following is a summary of the consolidated financial position and results of operations of the holding companies, accounted for using the equity method: | ||||||||
As of and for the | |||||||||
year ended | |||||||||
December 31 | |||||||||
2014 | 2013 | ||||||||
($ in millions, unaudited) | |||||||||
Current Assets | $ | 51 | $ | 46 | |||||
Total Assets | $ | 1,504 | $ | 1,580 | |||||
Current Liabilities | $ | 17 | $ | 16 | |||||
Total Liabilities | $ | 68 | $ | 70 | |||||
Members’ Equity | $ | 1,436 | $ | 1,510 | |||||
Revenue | $ | 155 | $ | 142 | |||||
Income from Continuing Operations | $ | 44 | $ | 16 | |||||
Net Income | $ | 44 | $ | 16 |
The_Company_Additional_Informa
The Company - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | |
31-May-14 | Mar. 31, 2015 | Mar. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | |
acre | State | ||||
Project | |||||
Organization [Line Items] | |||||
Acquisition date | 28-May-14 | ||||
Business combination consideration paid | $106,700,000 | ||||
Acquisition completed date | 1-Jan-13 | ||||
Area of land acquired | 12,500 | ||||
Acquisition related costs | 2,500,000 | ||||
Liabilities assumed in connection with acquisitions | 0 | ||||
Rental Income | 2,088,000 | ||||
Interest Income, Financing receivables | 8,328,000 | 4,618,000 | |||
Strong Upwind Holdings LLC [Member] | |||||
Organization [Line Items] | |||||
Project investment amount | 144,000,000 | ||||
Number of limited liability companies | 4 | ||||
Number of States | 5 | ||||
Strong Upwind Holdings LLC [Member] | Minimum [Member] | |||||
Organization [Line Items] | |||||
Ownership interest based on voting percentages | 4.00% | ||||
Strong Upwind Holdings LLC [Member] | Maximum [Member] | |||||
Organization [Line Items] | |||||
Ownership interest based on voting percentages | 17.50% | ||||
Strong Upwind Holdings LLC [Member] | Wind Project Investment [Member] | |||||
Organization [Line Items] | |||||
Number of operating projects | 10 | ||||
AWCC [Member] | |||||
Organization [Line Items] | |||||
Business combination consideration paid | 19,400,000 | ||||
Working capital adjustment | 200,000 | ||||
Rental Income | 2,100,000 | ||||
Interest Income, Financing receivables | $600,000 | ||||
Solar [Member] | |||||
Organization [Line Items] | |||||
Number of projects | 20 | ||||
Wind [Member] | |||||
Organization [Line Items] | |||||
Number of projects | 57 |
The_Company_Summary_of_Unaudit
The Company - Summary of Unaudited Pro Forma Information (Detail) (AWCC [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
AWCC [Member] | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Pro forma net investment revenue | $6.90 |
Pro forma net income | $3.30 |
The_Company_Schedule_of_Purcha
The Company - Schedule of Purchase Price Allocation (Detail) (AWCC [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
AWCC [Member] | |
Business Acquisition [Line Items] | |
Financing receivables | $37.20 |
Real estate | 66.6 |
Real estate related intangibles | 20 |
Goodwill | 2.1 |
Net working capital | 0.1 |
Purchase Price | $126 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | |
Segment | State | |||
Project | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Financing receivable, past due | 90 days | |||
Cash and cash equivalents original maturity period | 3 months | |||
Impairment of equity method investment | $0 | |||
Real estate investment description | To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we currently distribute at least 90% of our net taxable income, excluding capital gains, to our shareholders. | |||
Income tax examination, description | We have no examinations in progress, none are expected at this time, and years 2010 through 2014 are open. | |||
Uncertain tax positions | 0 | 0 | ||
Accrued interest and penalties | 0 | 0 | ||
Interest and penalties recognized during the period | 0 | 0 | ||
Number of segment reported | 1 | |||
2013 Plan [Member] | Performance Based Restricted Stock Award [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Stock-based award vesting minimum percentage | 0.00% | |||
Stock-based award vesting maximum percentage | 150.00% | |||
Stock-based award, range of vesting percentage description | The award earned is generally between 0% and 150% of the initial target, depending on the extent to which the performance target are met. | |||
Strong Upwind Holdings LLC [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Project investment amount | $144,000,000 | |||
Ownership percentage | 50.00% | |||
Number of limited liability companies | 4 | |||
Number of States | 5 | |||
Strong Upwind Holdings LLC [Member] | Wind Project Investment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of operating projects | 10 | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of taxable income distributed to stockholders | 90.00% | |||
Minimum [Member] | Strong Upwind Holdings LLC [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Ownership interest based on voting percentage | 4.00% | |||
Maximum [Member] | Strong Upwind Holdings LLC [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Ownership interest based on voting percentage | 17.50% |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Fair Value and Carrying Value of Financial Assets and Liabilities (Detail) (Fair Value, Measurements, Recurring [Member], Level 3 [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value [Member] | Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $321 | $316 |
Fair Value [Member] | Nonrecourse Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 126 | 127 |
Fair Value [Member] | Asset-Backed Nonrecourse Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 210 | 208 |
Fair Value [Member] | Financing Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 610 | 598 |
Fair Value [Member] | Financing Receivables Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 40 | 62 |
Fair Value [Member] | Investments Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 23 | 27 |
Carrying Value [Member] | Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 321 | 316 |
Carrying Value [Member] | Nonrecourse Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 111 | 113 |
Carrying Value [Member] | Asset-Backed Nonrecourse Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 209 | 208 |
Carrying Value [Member] | Financing Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 554 | 553 |
Carrying Value [Member] | Financing Receivables Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 40 | 62 |
Carrying Value [Member] | Investments Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $23 | $27 |
Fair_Value_Measurements_Summar1
Fair Value Measurements - Summary of Fair Value and Carrying Value of Financial Assets and Liabilities (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Allowance for loan losses on financing receivables | $1.20 | $1.20 |
Amortized costs | 22 | 26.9 |
Financing Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net fair value collateral impaired loan | 0.8 | 0.8 |
Allowance for loan losses on financing receivables | $1.20 | $1.20 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Cash deposits held in U.S. banks | 80 | $70 |
Bank deposits | 77 | $66 |
Level 3 [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Fair value interest rate spreads, minimum | 2.00% | |
Fair value interest rate spreads, maximum | 5.00% |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance, beginning of period | $27,273,000 |
Transfers to / purchases of available-for-sale debt securities. | 5,000,000 |
Balance, end of period | 22,809,000 |
Level 3 [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance, beginning of period | 27,300,000 |
Transfers to / purchases of available-for-sale debt securities. | 5,000,000 |
Payments on available-for-sale debt securities | -7,600,000 |
Sale of available-for-sale debt securities | -2,300,000 |
Gains on debt securities recorded in earnings. | 300,000 |
Gains on debt securities recorded in OCI | 100,000 |
Balance, end of period | $22,800,000 |
NonControlling_Interest_Additi
Non-Controlling Interest - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Operating Partnership units outstanding | 28,235,160 |
Percentage of Operating Partnership owned | 99.00% |
Percentage of Operating Partnership owned by other limited partners | 1.00% |
Weighted average number of OP units held by remaining non-controlling interest | 284,992 |
Exchange of operating partnership units to common stock | 46,290 |
Securitization_of_Receivables_1
Securitization of Receivables - Summary of Certain Transactions between us and Securitization Trusts (Detail) (Securitization Trust [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Gains on securitizations | $3 | $2 |
Purchase of receivables securitized | 60 | 65 |
Proceeds from securitizations | 63 | 67 |
Cash received from residual assets | 0.4 | 0.8 |
Residual Assets [Member] | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Residual and servicing assets included in Other Assets | $9 | $6 |
Securitization_of_Receivables_2
Securitization of Receivables - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Discount rates to determine fair market value of underlying assets | 8.00% | ||
Managed receivables | $2,600,000,000 | $2,500,000,000 | |
Securitization credit losses | 0 | 0 | |
Asset-backed Securities, Securitized Loans and Receivables [Member] | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Managed receivables | $1,800,000,000 | $1,700,000,000 | |
Minimum [Member] | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Annual servicing fees | 0.05% | ||
Maximum [Member] | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Annual servicing fees | 0.20% |
Our_Portfolio_Financing_Receiv2
Our Portfolio - Financing Receivables, Investments, Real Estate and Equity Method Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Apr. 30, 2015 | Dec. 31, 2013 | 31-May-13 | |
Financing Receivable, Recorded Investment [Line Items] | ||||||
Financing receivables and investments | $885,000,000 | |||||
Deferred funding obligations | 72,336,000 | 88,288,000 | ||||
Restricted cash | 1,600,000 | 3,000,000 | ||||
Financing receivable allowance | 1,200,000 | |||||
Maximum agreed recovery amount | 2,000,000 | |||||
Charged off of receivable against allowance | 9,800,000 | |||||
Allowance for credit losses | 1,200,000 | 1,200,000 | ||||
Loan expected recovery | 800,000 | |||||
Maximum exposure loss for variable interest entity | 800,000 | 800,000 | ||||
Accrued interest income | 0 | 0 | ||||
Other financing receivables on non accrual status | 0 | 0 | ||||
Provision for credit losses | 0 | 0 | ||||
Loan modifications that qualify as trouble debt restructurings | 0 | 0 | ||||
Debt and Real Estate Portfolio [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
% of Debt and Real Estate Portfolio | 98.00% | |||||
Minimum [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Lease agreement expected expirations, term | 2047 | |||||
Long term land lease agreements expiration dates range | 2033 | |||||
Long term land lease agreements extended expiration dates range | 2047 | |||||
Maximum [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Lease agreement expected expirations, term | 2061 | |||||
Long term land lease agreements expiration dates range | 2044 | |||||
Long term land lease agreements extended expiration dates range | 2061 | |||||
Energy Source LLC [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Financing receivable allowance | 11,000,000 | |||||
Financing receivable allowance, face amount | 24,000,000 | |||||
Financial receivable average outstanding balance | 11,800,000 | |||||
Energy Source LLC [Member] | Subsequent Event [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Cash received from pending land sale from unrelated third party | 400,000 | |||||
Additional amount receivable upon the closing of the land sale | $400,000 |
Our_Portfolio_Financing_Receiv3
Our Portfolio - Financing Receivables, Investments, Real Estate and Equity Method Investments - Analysis of Portfolio by Type of Obligor and Credit Quality (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |
Financing receivables | $554 |
Financing receivables held-for-sale | 40 |
Investments | 23 |
Real estate | 130 |
Equity method investment | 138 |
Total | 885 |
Average Remaining Balance | 10 |
Commercial Investment Grade [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Financing receivables | 249 |
Investments | 9 |
Real estate | 130 |
Total | 388 |
Average Remaining Balance | 9 |
Commercial Non-Investment Grade [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Financing receivables | 1 |
Investments | 14 |
Total | 15 |
Average Remaining Balance | 14 |
Debt and Real Estate Portfolio [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
% of Debt and Real Estate Portfolio | 98.00% |
Debt and Real Estate Portfolio [Member] | Commercial Investment Grade [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
% of Debt and Real Estate Portfolio | 52.00% |
Debt and Real Estate Portfolio [Member] | Commercial Non-Investment Grade [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
% of Debt and Real Estate Portfolio | 2.00% |
Government [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Financing receivables | 304 |
Financing receivables held-for-sale | 40 |
Total | 344 |
Average Remaining Balance | 11 |
Government [Member] | Debt and Real Estate Portfolio [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
% of Debt and Real Estate Portfolio | 46.00% |
Subtotal, Debt and Real Estate [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Financing receivables | 554 |
Financing receivables held-for-sale | 40 |
Investments | 23 |
Real estate | 130 |
Total | 747 |
Average Remaining Balance | 10 |
Subtotal, Debt and Real Estate [Member] | Debt and Real Estate Portfolio [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
% of Debt and Real Estate Portfolio | 100.00% |
Equity Method Investment [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Equity method investment | 138 |
Total | 138 |
Average Remaining Balance | $14 |
Our_Portfolio_Financing_Receiv4
Our Portfolio - Financing Receivables, Investments, Real Estate and Equity Method Investments - Analysis of Portfolio by Type of Obligor and Credit Quality (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Transactions | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of transactions | 73 |
Financial receivable outstanding, Average Remaining Balance | $10 |
Total aggregate remaining balance | 21 |
U.S. Federal Government [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Total financing receivable | 261 |
State, Local, Institutions [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Total financing receivable | 83 |
Investment Grade By Independent Rating Agency [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Total financing receivable | 59 |
Maximum [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Financial receivable outstanding, Average Remaining Balance | $1 |
Our_Portfolio_Financing_Receiv5
Our Portfolio - Financing Receivables, Investments, Real Estate and Equity Method Investments - Components of Financing Receivables (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Financing receivables | ||
Financing or minimum lease payments | $733,000,000 | $723,000,000 |
Unearned interest income | -175,000,000 | -166,000,000 |
Allowance for credit losses | -1,200,000 | -1,200,000 |
Unearned fee income, net of initial direct costs | -3,000,000 | -3,000,000 |
Financing receivables | $553,600,000 | $552,706,000 |
Our_Portfolio_Financing_Receiv6
Our Portfolio - Financing Receivables, Investments, Real Estate and Equity Method Investments - Components of Financing Receivables (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ||
Financing receivables held-for-sale | $40 | $62 |
Our_Portfolio_Financing_Receiv7
Our Portfolio - Financing Receivables, Investments, Real Estate and Equity Method Investments - Summary of Anticipated Maturity Dates of Financing Receivables and Investments and Weighted Average Yield (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Receivables [Abstract] | |
Financing Receivables, payment due total | $554 |
Financing Receivables, payment due in less than 1 year | 5 |
Financing Receivables, payment due in 1-5 years | 62 |
Financing Receivables, payment due in 5-10 years | 36 |
Financing Receivables, payment due in more than 10 years | 451 |
Financing Receivables, weighted average yield total | 5.40% |
Financing Receivables, weighted average yield in less than 1 year | 6.60% |
Financing Receivables, weighted average yield in 1-5 years | 7.20% |
Financing Receivables, weighted average yield in 5-10 years | 5.40% |
Financing Receivables, weighted average yield in more than 10 years | 5.20% |
Investments, payment due total | 23 |
Investments, payment due in less than 1 year | 0 |
Investments, payment due in 1-5 years | 14 |
Investments, payment due in 5-10 years | 0 |
Investments, payment due in more than 10 years | $9 |
Investments, weighted average yield total | 5.30% |
Investments, weighted average yield in less than 1 year | 0.00% |
Investments, weighted average yield in 1-5 years | 5.80% |
Investments, weighted average yield in 5-10 years | 0.00% |
Investments, weighted average yield in more than 10 years | 4.60% |
Our_Portfolio_Financing_Receiv8
Our Portfolio - Financing Receivables, Investments, Real Estate and Equity Method Investments - Summary of Anticipated Maturity Dates of Financing Receivables and Investments and Weighted Average Yield (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ||
Financing receivables held-for-sale | $40 | $62 |
Remaining loan balance non-accrual status | 0.8 | |
Financing receivable allowance | $1.20 |
Our_Portfolio_Financing_Receiv9
Our Portfolio - Financing Receivables, Investments, Real Estate and Equity Method Investments - Components of Real Estate Portfolio (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Real Estate Properties [Line Items] | ||
Accumulated amortization of real estate intangibles | ($1) | $0 |
Real Estate | 130 | 114 |
Land [Member] | ||
Real Estate Properties [Line Items] | ||
Real Estate | 106 | 91 |
Real Estate Related Intangibles [Member] | ||
Real Estate Properties [Line Items] | ||
Real Estate | $25 | $23 |
Recovered_Sheet1
Our Portfolio - Financing Receivables, Investments and Real Estate - Future Amortization Expenses Related to Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Intangible Liability Disclosure [Abstract] | ||
From April 1, 2015 to December 31, 2015 | $500,000 | |
2016 | 600,000 | |
2017 | 600,000 | |
2018 | 600,000 | |
2019 | 600,000 | |
2020 | 600,000 | |
Thereafter | 21,300,000 | |
Net intangible assets | $24,791,000 | $23,058,000 |
Recovered_Sheet2
Our Portfolio - Financing Receivables, Investments, Real Estate and Equity Method Investments - Schedule of Future Minimum Rental Income under Land Lease Agreements (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Receivables [Abstract] | |
From April 1, 2015 to December 31, 2015 | $8 |
2016 | 10 |
2017 | 10 |
2018 | 10 |
2019 | 10 |
2020 | 10 |
Thereafter | 333 |
Total | $391 |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Apr. 30, 2015 | 31-May-14 | Jul. 31, 2013 | |
Line of Credit Facility [Line Items] | |||||
Credit facility outstanding | $315,748,000 | $321,184,000 | |||
Termination of credit facility | 19-Jul-19 | ||||
Issuance costs | 11,000,000 | ||||
Pledge of investments in financing receivables | 422,000,000 | 463,000,000 | |||
Weighted average short-term borrowing rate | 2.40% | 2.40% | |||
Fees for loan agreement description | Fees for each Loan Agreement equal to 0.50%, divided by 360, multiplied by the excess of the available borrowing capacity under each Loan Agreement over the actual amount borrowed under such Loan Agreement. | ||||
Default underlying financings | 50.00% | ||||
Senior Secured Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility outstanding | 350,000,000 | ||||
Maximum advances on credit facilities | 1,350,000,000 | ||||
Qualifying Government and Institutional Loans (G&I Facility) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, increase (decrease) in overall capacity | -25,000,000 | ||||
Termination of credit facility | 19-Jul-19 | ||||
Maximum advances on credit facilities | 375,000,000 | ||||
Maximum borrowings allowed at any point in time | 125,000,000 | ||||
Line of credit facility, decrease in maximum borrowing capacity | 75,000,000 | ||||
London Interbank Offered Rate | ("LIBOR") plus 1.50% | ||||
Floating interest rate | 1.50% | ||||
Issuance costs | 20,000 | ||||
Qualifying Government and Institutional Loans (G&I Facility) [Member] | Federal Funds [Member] | |||||
Line of Credit Facility [Line Items] | |||||
London Interbank Offered Rate | Federal Funds Rate plus 1.50% | ||||
Floating interest rate | 1.50% | ||||
Qualifying Government and Institutional Loans (G&I Facility) [Member] | Credit Default Option [Member] | |||||
Line of Credit Facility [Line Items] | |||||
London Interbank Offered Rate | LIBOR plus 2.50% | ||||
Floating interest rate | 2.50% | ||||
Qualifying Government and Institutional Loans (G&I Facility) [Member] | U.S. Federal Government [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Applicable valuation percentages | 80.00% | ||||
Qualifying Government and Institutional Loans (G&I Facility) [Member] | Institutional [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Applicable valuation percentages | 75.00% | ||||
Qualifying Government and Institutional Loans (G&I Facility) [Member] | Senior Secured Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility outstanding | 100,000,000 | ||||
Maximum advances on credit facilities | 300,000,000 | ||||
Qualifying Government and Institutional Loans (G&I Facility) [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, increase (decrease) in overall capacity | -75,000,000 | ||||
Maximum advances on credit facilities | 300,000,000 | ||||
Maximum borrowings allowed at any point in time | 100,000,000 | ||||
Line of credit facility, decrease in maximum borrowing capacity | 25,000,000 | ||||
Qualifying Project Finance Loans (PF Facility) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, increase (decrease) in overall capacity | 475,000,000 | ||||
Line of credit facility, increase in maximum borrowing capacity | 75,000,000 | ||||
Termination of credit facility | 19-Jul-19 | ||||
Maximum advances on credit facilities | 975,000,000 | ||||
Maximum borrowings allowed at any point in time | 325,000,000 | ||||
London Interbank Offered Rate | LIBOR plus 2.50% | ||||
Floating interest rate | 2.50% | ||||
Issuance costs | 20,000 | ||||
Applicable valuation percentages | 67.00% | ||||
Qualifying Project Finance Loans (PF Facility) [Member] | Federal Funds [Member] | |||||
Line of Credit Facility [Line Items] | |||||
London Interbank Offered Rate | Federal Funds Rate plus 2.50% | ||||
Floating interest rate | 2.50% | ||||
Qualifying Project Finance Loans (PF Facility) [Member] | Credit Default Option [Member] | |||||
Line of Credit Facility [Line Items] | |||||
London Interbank Offered Rate | LIBOR plus 5.00% | ||||
Floating interest rate | 5.00% | ||||
Qualifying Project Finance Loans (PF Facility) [Member] | Senior Secured Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility outstanding | 400,000,000 | ||||
Maximum advances on credit facilities | 1,050,000,000 | ||||
Qualifying Project Finance Loans (PF Facility) [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, increase (decrease) in overall capacity | 75,000,000 | ||||
Line of credit facility, increase in maximum borrowing capacity | 75,000,000 | ||||
Maximum advances on credit facilities | 1,050,000,000 | ||||
Maximum borrowings allowed at any point in time | 400,000,000 | ||||
Line of credit facility, decrease in maximum borrowing capacity | 350,000,000 | ||||
Qualifying Project Finance Loans (PF Facility) [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, increase (decrease) in overall capacity | 200,000,000 | ||||
Line of credit facility, increase in maximum borrowing capacity | 100,000,000 | ||||
Qualifying Project Finance Loans (PF Facility) [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, increase (decrease) in overall capacity | 500,000,000 | ||||
Line of credit facility, increase in maximum borrowing capacity | $250,000,000 |
Credit_Facility_Summary_of_Req
Credit Facility - Summary of Required Covenant Included in Loan Agreements (Detail) (Covenants Threshold [Member], USD $) | Mar. 31, 2015 |
Covenants Threshold [Member] | |
Line of Credit Facility [Line Items] | |
Minimum Liquidity (defined as available borrowings under the Loan Agreements plus unrestricted cash divided by actual borrowings) of greater than: | 5.00% |
12 month rolling Net Interest Margin of greater than: | $0 |
Maximum Debt to Equity Ratio of less than: | 4 |
Nonrecourse_Debt_Additional_In
Nonrecourse Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2013 | Oct. 31, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Nonrecourse Asset-Backed Loan Agreement | $208,585,000 | $208,246,000 | ||
Cost on issuance of Notes | 11,000,000 | |||
Strong Upwind Holdings LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Ownership percentage | 50.00% | |||
Asset-Backed Nonrecourse Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Nonrecourse Asset-Backed Loan Agreement | 100,000,000 | |||
Nonrecourse Asset-Backed Loan Agreement, interest rate | 2.79% | |||
Nonrecourse Asset-Backed Loan Agreement, maturity period | 2019-12 | |||
Outstanding Notes | 90,000,000 | 92,000,000 | ||
Amount of financing receivables pledged for Asset-Backed Notes | 104,000,000 | 104,000,000 | ||
Anticipated debt balance at maturity | 57,000,000 | |||
Prepayment penalty, maturity date | 2018-12 | |||
Make whole payment discount rate | 0.50% | |||
Asset-Backed Nonrecourse Loan Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Nonrecourse Asset-Backed Loan Agreement | 115,000,000 | |||
Nonrecourse Asset-Backed Loan Agreement, interest rate | 5.74% | |||
Nonrecourse Asset-Backed Loan Agreement, maturity period | 2021-09 | |||
Percentage of minimum principal payment amount | Minimum principal payment amount equal to one-half percent (0.5%) of the principal amount of the loan plus additional principal payments based on available cash flow and a target debt balance. | |||
Repayment of remaining debt balance in 2021 | 20,000,000 | |||
Default interest rate on debt in an event of default | 7.74% | |||
Cost on issuance of Notes | 2,000,000 | |||
Asset-Backed Nonrecourse Loan Agreement [Member] | Ha Wind LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Ownership percentage | 100.00% | |||
Asset-Backed Nonrecourse Loan Agreement [Member] | Strong Upwind Holdings LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Ownership percentage | 50.00% | |||
Other Nonrecourse Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of financing receivables pledged for Asset-Backed Notes | $95,000,000 | $108,000,000 |
Nonrecourse_Debt_Analysis_of_O
Nonrecourse Debt - Analysis of Other Nonrecourse Debt by Interest Rate (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Balance | 110,954 | 112,525 |
Fixed-Rate Promissory Notes, Interest Rates from 2.06% to 5.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Balance | 32,000 | |
Fixed-Rate Promissory Notes, Interest Rates from 5.01% to 6.50% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Balance | 54,000 | 58,000 |
Fixed-Rate Promissory Notes, Interest Rates from 6.51% to 8.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Balance | 23,000 | 23,000 |
Fixed-Rate Promissory Notes, Interest Rates from 2.26% to 5.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Balance | 34,000 | |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 2.06% to 5.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Maturity | 2015 | |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 5.01% to 6.50% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Maturity | 2015 | 2015 |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 6.51% to 8.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Maturity | 2015 | 2015 |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 2.26% to 5.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Maturity | 2015 | |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 2.06% to 5.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Maturity | 2032 | |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 5.01% to 6.50% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Maturity | 2031 | 2031 |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 6.51% to 8.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Maturity | 2031 | 2031 |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 2.26% to 5.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt, Maturity | 2032 |
Nonrecourse_Debt_Analysis_of_O1
Nonrecourse Debt - Analysis of Other Nonrecourse Debt by Interest Rate (Parenthetical) (Detail) | Mar. 31, 2015 | Dec. 31, 2014 |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 2.06% to 5.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed-rate promissory notes, interest rates | 2.06% | |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 5.01% to 6.50% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed-rate promissory notes, interest rates | 5.01% | 5.01% |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 6.51% to 8.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed-rate promissory notes, interest rates | 6.51% | 6.51% |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 2.26% to 5.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed-rate promissory notes, interest rates | 2.26% | |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 2.06% to 5.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed-rate promissory notes, interest rates | 5.00% | |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 5.01% to 6.50% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed-rate promissory notes, interest rates | 6.50% | 6.50% |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 6.51% to 8.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed-rate promissory notes, interest rates | 8.00% | 8.00% |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 2.26% to 5.00% Per Annum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed-rate promissory notes, interest rates | 5.00% |
Nonrecourse_Debt_Schedule_of_M
Nonrecourse Debt - Schedule of Minimum Maturities of Nonrecourse Debt (Detail) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Debt Instrument [Line Items] | |
Maturity of Nonrecourse debt, 2016 | $36 |
Maturity of Nonrecourse debt, 2017 | 36 |
Maturity of Nonrecourse debt, 2018 | 34 |
Maturity of Nonrecourse debt, 2019 | 26 |
Maturity of Nonrecourse debt, 2020 | 85 |
Maturity of Nonrecourse debt, Thereafter | 103 |
Maturity of Nonrecourse debt, Total | 320 |
Asset-Backed Nonrecourse Notes [Member] | |
Debt Instrument [Line Items] | |
Maturity of Nonrecourse debt, 2016 | 20 |
Maturity of Nonrecourse debt, 2017 | 20 |
Maturity of Nonrecourse debt, 2018 | 21 |
Maturity of Nonrecourse debt, 2019 | 19 |
Maturity of Nonrecourse debt, 2020 | 81 |
Maturity of Nonrecourse debt, Thereafter | 48 |
Maturity of Nonrecourse debt, Total | 209 |
Other Nonrecourse Debt [Member] | |
Debt Instrument [Line Items] | |
Maturity of Nonrecourse debt, 2016 | 16 |
Maturity of Nonrecourse debt, 2017 | 16 |
Maturity of Nonrecourse debt, 2018 | 13 |
Maturity of Nonrecourse debt, 2019 | 7 |
Maturity of Nonrecourse debt, 2020 | 4 |
Maturity of Nonrecourse debt, Thereafter | 55 |
Maturity of Nonrecourse debt, Total | $111 |
Income_Tax_Additional_Informat
Income Tax - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Income Tax Holiday [Line Items] | |||
Income tax (expense) benefit | $23,000 | ($60,000) | |
TRS [Member] | |||
Income Tax Holiday [Line Items] | |||
Income tax (expense) benefit | 0 | -100,000 | |
Effective income tax rate reconciliation, at federal statutory income tax rate, Percent | 35.00% | ||
Effective income tax rate reconciliation, State and local income taxes, Percent | 5.00% | ||
Net deferred tax liabilities | $100,000 | $100,000 |
Equity_Summary_of_Dividends_De
Equity - Summary of Dividends Declared by Board of Directors (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||
Apr. 09, 2014 | Mar. 31, 2015 | Jul. 10, 2014 | Oct. 09, 2014 | Jan. 09, 2015 | Apr. 09, 2015 | |
03/27/14 Record Date [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Announced Date | 13-Mar-14 | |||||
Record Date | 27-Mar-14 | |||||
Pay Date | 9-Apr-14 | |||||
Amount per share | $0.22 | |||||
06/27/14 Record Date [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Announced Date | 17-Jun-14 | |||||
Record Date | 27-Jun-14 | |||||
Pay Date | 10-Jul-14 | |||||
Amount per share | $0.22 | |||||
9/26/2014 Record Date [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Announced Date | 16-Sep-14 | |||||
Record Date | 26-Sep-14 | |||||
Pay Date | 9-Oct-14 | |||||
Amount per share | $0.22 | |||||
12/19/14 Record Date [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Announced Date | 8-Dec-14 | |||||
Record Date | 19-Dec-14 | |||||
Pay Date | 9-Jan-15 | |||||
Amount per share | $0.26 | |||||
3/30/15 Record Date [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Announced Date | 17-Mar-15 | |||||
Record Date | 30-Mar-15 | |||||
Pay Date | 9-Apr-15 | |||||
3/30/15 Record Date [Member] | Subsequent Event [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Amount per share | $0.26 |
Equity_Schedule_of_Common_Stoc
Equity - Schedule of Common Stock Public Offerings (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
4/23/2013 Closing Date [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Public offerings of common stock, Closing Date | 23-Apr-13 |
Public offerings of common stock, Shares Issued | 14,200,000 |
Public offerings of common stock, Price Per Share | $12.50 |
Net proceeds from offering | $160 |
4/29/2014 Closing Date [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Public offerings of common stock, Closing Date | 29-Apr-14 |
Public offerings of common stock, Shares Issued | 5,800,000 |
Public offerings of common stock, Price Per Share | $13 |
Net proceeds from follow-on from public offering | 70 |
10/31/2014 Closing Date [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Public offerings of common stock, Closing Date | 31-Oct-14 |
Public offerings of common stock, Shares Issued | 4,600,000 |
Public offerings of common stock, Price Per Share | $13.60 |
Net proceeds from follow-on from public offering | 59 |
5/4/2015 Closing Date [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Public offerings of common stock, Closing Date | 4-May-15 |
Public offerings of common stock, Shares Issued | 4,600,000 |
Public offerings of common stock, Price Per Share | $18.50 |
Net proceeds from follow-on from public offering | $81 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | |
Aug. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Registration of IPO Common Stock, date registered | 31-Aug-14 | ||
Sale of stock, description of transaction | In August 2014, we filed a registration statement with the SEC registering the resale, from time to time, by certain persons of up to 3,178,410 shares of common stock, comprised of: (1) 1,741,238 shares of common stock issued in connection with our formation transactions at the time of our IPO, (2) 331,282 shares of common stock issuable upon exchange of OP units issued in connection with our formation transactions, which are exchangeable on a one-for-one basis, into cash or, at our option, shares of our common stock and (3) 1,105,890 shares of common stock granted under the 2013 Plan to our directors, officers and other employees. | ||
Proceeds from the sale of the shares | $0 | ||
Scenario Forecast [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sale of stock | 3,178,410 | ||
Shares of common stock issued in connection formation transactions | 1,741,238 | ||
Shares of common stock granted to directors, officers and other employees | 1,105,890 | ||
Sale of common stock, value | 500,000,000 | ||
Scenario Forecast [Member] | Directors, Officers and Other Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock exchangeable ratio | Exchangeable on a one-for-one basis, into cash or, at our option, shares of our common stock | ||
OP Units [Member] | Scenario Forecast [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock issuable upon exchange of OP units issued | 331,282 | ||
Restricted Common Stock [Member] | 2013 Plan [Member] | Employees and Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares awarded | 174,585 | ||
Restricted common shares vesting years | Vest in 2015 to 2019 | ||
Restricted Common Stock [Member] | 2013 Plan [Member] | Certain Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares awarded | 390,131 | ||
Restricted Incentive [Member] | 2013 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation expense | 2,200,000 | 500,000 | |
Unrecognized compensation expense | 16,400,000 | ||
Weighted-average term in which unrecognized compensation expense is expected to be recognized | 2 years | ||
Assumed forfeiture rate for calculation of compensation expense | 5.00% |
Equity_Summary_of_Unvested_Sha
Equity - Summary of Unvested Shares of Restricted Common Stock (Detail) (Restricted Incentive [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Restricted Incentive [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, Restricted Shares of Common Stock | 964,820 | 598,815 |
Granted, Restricted Shares of Common Stock | 564,716 | 529,100 |
Vested, Restricted Shares of Common Stock | -9,250 | -149,709 |
Forfeited, Restricted Shares of Common Stock | -13,386 | |
Ending Balance, Restricted Shares of Common Stock | 1,520,286 | 964,820 |
Beginning Balance, Weighted Average Share Price | $13.41 | $12.50 |
Granted, Weighted Average Share Price | $17.27 | $14.18 |
Vested, Weighted Average Share Price | $14.61 | $12.50 |
Forfeited, Weighted Average Share Price | $12.99 | |
Ending Balance, Weighted Average Share Price | $14.84 | $13.41 |
Beginning Balance, Fair Value of Restricted Shares of Common Stock | $12.90 | $7.50 |
Granted, Fair Value of Restricted Shares of Common Stock | 9.8 | 7.5 |
Vested, Fair Value of Restricted Shares of Common Stock | -0.1 | -1.9 |
Forfeited, Fair Value of Restricted Shares of Common Stock | -0.2 | |
Ending Balance, Fair Value of Restricted Shares of Common Stock | $22.60 | $12.90 |
Earnings_per_Share_of_Common_S2
Earnings per Share of Common Stock - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Weighted average number of OP units held by the non-controlling interest | 325,110 | 361,414 |
Unvested shares of restricted common stock | 1,520,286 | 605,815 |
Earnings_per_Share_of_Common_S3
Earnings per Share of Common Stock - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net income attributable to controlling shareholders and participating securities | $2,122 | $2,753 |
Less: Dividends paid on participating securities | -375 | -127 |
Undistributed earnings attributable to participating securities | 0 | 0 |
Net income attributable to controlling shareholders | $1,747 | $2,626 |
Denominator: | ||
Weighted-average number of common shares - basic | 26,386,080 | 15,892,927 |
Weighted average common shares outstanding - diluted | 26,386,080 | 16,494,309 |
Basic earnings per common share | $0.07 | $0.17 |
Diluted earnings per common share | $0.07 | $0.17 |
Equity_Method_Investment_in_Af2
Equity Method Investment in Affiliate - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Oct. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Loss from equity method investment in affiliate | ($53,000) | |
Strong Upwind Holdings LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Project investment amount | 144,000,000 | |
Loss from equity method investment in affiliate | $100,000 |
Equity_Method_Investment_in_Af3
Equity Method Investment in Affiliate - Summary of Consolidated Financial Position and Results of Operations of Holding Companies, Accounted for Using Equity Method (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current Assets | $51 | $46 |
Total Assets | 1,504 | 1,580 |
Current Liabilities | 17 | 16 |
Total Liabilities | 68 | 70 |
Members' Equity | 1,436 | 1,510 |
Revenue | 155 | 142 |
Income from Continuing Operations | 44 | 16 |
Net Income | $44 | $16 |