Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 03, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | HASI | |
Entity Registrant Name | Hannon Armstrong Sustainable Infrastructure Capital, Inc. | |
Entity Central Index Key | 1,561,894 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,309,186 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Financing receivables | $ 804,005 | $ 783,967 |
Financing receivables held-for-sale | 42,285 | 60,376 |
Investments available-for-sale | 47,662 | 29,017 |
Real estate | 131,713 | 128,769 |
Real estate related intangible assets | 30,720 | 26,930 |
Equity method investments in affiliates | 334,565 | 318,769 |
Cash and cash equivalents | 19,279 | 42,645 |
Other assets | 65,909 | 79,148 |
Total Assets | 1,476,138 | 1,469,621 |
Liabilities: | ||
Accounts payable, accrued expenses and other | 26,165 | 17,875 |
Deferred funding obligations | 78,127 | 108,499 |
Credit facility | 245,572 | 247,350 |
Nonrecourse debt (secured by assets of $779 million and $815 million, respectively) | 624,043 | 663,791 |
Total Liabilities | 973,907 | 1,037,515 |
Stockholders' 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, 41,985,976 and 37,010,603 shares issued and outstanding, respectively | 420 | 370 |
Additional paid in capital | 576,041 | 482,431 |
Retained deficit | (71,200) | (52,701) |
Accumulated other comprehensive loss | (6,821) | (1,905) |
Non-controlling interest | 3,791 | 3,911 |
Total Stockholders' Equity | 502,231 | 432,106 |
Total Liabilities and Stockholders' Equity | $ 1,476,138 | $ 1,469,621 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Nonrecourse notes, secured by assets | $ 779 | $ 815 |
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 | 41,985,976 | 37,010,603 |
Common stock, shares outstanding | 41,985,976 | 37,010,603 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue: | ||||
Interest income, financing receivables | $ 12,647 | $ 8,217 | $ 24,135 | $ 16,545 |
Interest income, investments | 434 | 357 | 809 | 753 |
Rental income | 2,975 | 2,564 | 5,791 | 4,652 |
Gain on sale of receivables and investments | 5,438 | 1,557 | 10,940 | 4,426 |
Fee income | 351 | 836 | 653 | 1,063 |
Total Revenue | 21,845 | 13,531 | 42,328 | 27,439 |
Expenses: | ||||
Investment interest expense | (11,034) | (6,103) | (22,310) | (12,250) |
Compensation and benefits | (5,754) | (3,978) | (10,172) | (7,830) |
General and administrative | (2,322) | (1,595) | (4,138) | (3,327) |
Total Expenses | (19,110) | (11,676) | (36,620) | (23,407) |
Income before equity method investments in affiliates | 2,735 | 1,855 | 5,708 | 4,032 |
Income (loss) from equity method investments in affiliates | 1,076 | (295) | 1,346 | (348) |
Income before income taxes | 3,811 | 1,560 | 7,054 | 3,684 |
Income tax expense | (36) | (76) | (82) | (53) |
Net Income | 3,775 | 1,484 | 6,972 | 3,631 |
Net income attributable to non-controlling interest holders | 28 | 14 | 56 | 39 |
Net Income Attributable to Controlling Shareholders | $ 3,747 | $ 1,470 | $ 6,916 | $ 3,592 |
Basic earnings per common share | $ 0.09 | $ 0.04 | $ 0.16 | $ 0.10 |
Diluted earnings per common share | $ 0.09 | $ 0.04 | $ 0.16 | $ 0.10 |
Weighted average common shares outstanding-basic | 37,737,026 | 29,479,023 | 37,376,618 | 27,941,095 |
Weighted average common shares outstanding-diluted | 37,737,026 | 29,479,023 | 37,376,618 | 27,941,095 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 3,775 | $ 1,484 | $ 6,972 | $ 3,631 |
Unrealized loss on interest rate swaps, net of taxes of $0.0 million in 2016 | (2,434) | (5,916) | ||
Unrealized gain/(loss) on available-for-sale securities, net of taxes benefit/(provision) of $0.0 million and $0.2 million in each of the three and six months periods ended 2016 and 2015, respectively | 691 | (573) | 962 | (492) |
Comprehensive income | 2,032 | 911 | 2,018 | 3,139 |
Less: Comprehensive income attributable to non-controlling interests holders | 19 | 8 | 19 | 34 |
Comprehensive Income Attributable to Controlling Shareholders | $ 2,013 | $ 903 | $ 1,999 | $ 3,105 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized loss on interest rate swaps, taxes | $ 0 | $ 0 | ||
Unrealized gain/(loss) on available-for-sale securities, benefit/(provision) | $ 0 | $ 0.2 | $ 0 | $ 0.2 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net Income | $ 6,972 | $ 3,631 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,573 | 1,561 |
Equity-based compensation | 4,920 | 5,026 |
From equity method investments in affiliates | 412 | 348 |
Gain on sale of financing receivables and investments | (8,461) | (4,763) |
Changes in financing receivables held-for-sale | 5,382 | 14,862 |
Changes in accounts payable and accrued expenses | 2,718 | (424) |
Other | (5,439) | (4,578) |
Net cash provided by operating activities | 10,077 | 15,663 |
Cash flows from investing activities | ||
Purchases of financing receivables | (106,874) | (185,643) |
Principal collections from financing receivables | 57,469 | 50,358 |
Proceeds from sales of financing receivables | 29,032 | 36,454 |
Purchases of investments | (23,333) | (20,486) |
Principal collections from investments | 857 | 8,586 |
Proceeds from sales of investments | 13,914 | 10,794 |
Purchases of real estate | (7,345) | (38,513) |
Investments in equity method affiliates, net | (10,706) | (32,735) |
Distributions received from equity method affiliates | 27,903 | 14,642 |
Other | 10,444 | (1,314) |
Net cash used in investing activities | (8,639) | (157,857) |
Cash flows from financing activities | ||
Proceeds from credit facility | 117,400 | 175,521 |
Principal payments on credit facility | (119,146) | (70,860) |
Proceeds from nonrecourse debt | 11,626 | |
Principal payments on nonrecourse debt | (41,429) | (25,430) |
Payments on deferred funding obligations | (43,414) | (50,786) |
Net proceeds of common stock issuances | 91,516 | 81,540 |
Payments of dividends and distributions | (23,321) | (14,538) |
Other | (6,410) | (1,408) |
Net cash (used in) provided by financing activities | (24,804) | 105,665 |
Decrease in cash and cash equivalents | (23,366) | (36,529) |
Cash and cash equivalents at beginning of period | 42,645 | 58,199 |
Cash and cash equivalents at end of period | 19,279 | 21,670 |
Interest paid | $ 19,396 | $ 12,831 |
The Company
The Company | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 renewable energy projects, and • Equity Investments in unconsolidated affiliates, such as projects where we hold non-consolidated equity interests in renewable energy projects. We finance our business through cash on hand, borrowings under our credit facility and debt transactions, 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. Our common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “HASI.” We have qualified as a REIT and 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 Investment Company Act of 1940, as amended. 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 our assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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. Actual results could differ from these estimates and such differences could be material. 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, including the format of the revenue section of the income statement to include a calculation of Total Revenue. 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 energy efficiency and renewable energy 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 market 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 include origination and acquisition costs, as applicable. Financing receivables that we intend to sell in the short-term are classified as held-for-sale 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 energy efficiency and renewable energy 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 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. We have designated our debt securities as available-for-sale and carry these securities at fair value on our balance sheet. 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. 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, the value of any collateral and any 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 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 likely 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 likely 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, 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-place 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. Scheduled rental revenue typically varies during the lease term and thus rental 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. Rental expenses (if any) are charged to operations as incurred. 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, or VIEs, 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 we have concluded 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. We have received true-sale-at-law opinions for all of our securitization trust structures and non-consolidation legal opinions for all but one old securitization trust structure that support our conclusion regarding 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. Servicing assets and liabilities are amortized in proportion to, and over the period of, estimated net servicing income with servicing income recognized as earned. 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. 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 on a quarterly basis. 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. 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 as of the balance sheet dates. Restricted Cash is reported as part of Other Assets in the condensed consolidated balance sheets. Variable Interest Entities and Equity Method Investments in Affiliates We account for our investment in entities that are considered voting or variable interest entities under ASC 810, Consolidation. We perform an ongoing assessment to determine the primary beneficiary of each entity as required by ASC 810. We have established various special purpose entities or securitization trusts for the purpose of securitizing certain financing receivables or other debt investments which are not consolidated in our financial statements as described in 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, we made equity investments in various renewable energy projects. We share in the cash flows and tax attributes according to a negotiated schedule. Our renewable energy projects are typically owned in partnerships structures (using limited liability corporations, or LLCs taxed as partnerships) where we, along with other large institutional investors, if any, receive a stated preferred return consisting of a priority distribution of the project’s cash flows, and in some cases, tax attributes. Once this preferred return is achieved, the partnership “flips” and the company which operates the project receives a larger portion of the cash flows through its interest in the holding company and we, along with the other institutional investors, will have an on-going residual interest. We made several new equity investments in renewable energy projects in 2016 that, along with our existing investments, are accounted for under the equity method of accounting. Certain of our equity method investments were determined to be VIEs. Our maximum exposure to loss associated with our equity method investments is limited to our recorded value of our investments. 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 limited liability entity agreement, less distributions received. Because the limited liability entity and holding company 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 or (“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 investments in affiliates 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 have elected to recognize earnings from these investments one quarter in arrears to allow for the receipt of financial information. We evaluate the realization of our investment accounted for using the equity method if circumstances indicate that our investment is OTTI. OTTI 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 Derivative Financial Instruments We utilize derivative financial instruments, primarily interest rate swaps, to manage, or hedge, our interest rate risk exposures associated with new debt issuances, to manage our exposure to fluctuations in interest rates on variable rate debt, and to optimize the mix of our fixed and floating-rate debt. In addition, we use forward-starting interest rate swap contracts to manage a portion of our interest rate exposure for anticipated refinancing of our long-term debts. Our objective is to manage the impact of interest rates on the results of operations and cash flows and the market value of our debt. The interest rate swaps we use are designated as cash flow hedges and are considered highly effective in reducing our exposure to the interest rate risk that they are designated to hedge. This effectiveness is essential in order to qualify for hedge accounting. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract. Derivatives are recorded on the consolidated balance sheet at fair value. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in Accumulated Other Comprehensive Income, net of associated deferred income tax effects, in our Consolidated Statements of Stockholders’ Equity and Comprehensive Income (Loss) and are recognized in the Consolidated Statements of Operations when the hedged item affects earnings. Changes in fair value of the ineffective portions of these hedges are recognized in General and administrative expenses in our Consolidated Statements of Operations. For any derivative instruments not designated as hedging instruments, changes in fair value would be recognized in our Consolidated Statements of Operations in the period that the change occurs. We assess, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. We do not hold derivatives for trading purposes. Interest rate swap contracts contain a credit risk that counterparties may be unable to fulfill the terms of the agreement. We attempt to minimize that risk by evaluating the creditworthiness of its counterparties, who are limited to major banks and financial institutions, and do not anticipate nonperformance by the counterparties. 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 on an ongoing basis 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 (“TRSs”) 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 TRSs 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 2012 through 2015 are open. As of June 30, 2016 and December 31, 2015, we had no uncertain tax positions. Our policy is to recognize interest expense and penalties related to income tax matters as a component of general and administrative expense. There were no accrued interest and penalties as of June 30, 2016 and December 31, 2015, and no interest and penalties were recognized during the three or six months ended June 30, 2016 and 2015. Equity-Based Compensation At the time of completion of our initial public offering (“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 stock as compensation to members of our senior management team, our independent directors, employees, advisors, consultants and other personnel under our 2013 Plan. We record compensation expense for stock awards in accordance with ASC 718, Compensation—Stock Compensation. We record 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. For awards where the vesting is contingent upon achievement of certain performance targets, compensation expense is recorded over the requisite service period (which includes the performance period) based on our estimate of the achievement of the various performance targets,. 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. 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) by the weighted-average 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 (Topic 606),” 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. The FASB proposed delaying the effective date of the standard by one year and issued a proposal that is intended to clarify and simplify the guidance. The updated standard becomes effective for us on January 1, 2018 and we expect will be first presented in our March 31, 2018, Form 10-Q. 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 disclosures. Consolidation In February 2015, the FASB issued ASU No. 2015-02 “Consolidation (Topic 810) Amendments to the Consolidation Analysis,” which affects the following areas of the consolidation analysis: limited partnerships and similar entities, evaluation of fees paid to a decision maker or service provider as a variable interest and in determination of the primary beneficiary, effect of related parties on the primary beneficiary determination and for certain investment funds. ASU No. 2015-02 is effective for us for our fiscal year ending December 31, 2016 and interim periods therein. The adoption of this standard did not have a material impact on our consolidated financial position, results of operations and cash flows. Income Taxes In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes.” The purpose of the standard is to simplify the presentation of deferred taxes on a classified balance sheet. Under current GAAP, deferred income tax assets and liabilities are separated into current and noncurrent amounts in the balance sheet. The amendments in ASU 2015-17 require that all deferred tax assets and liabilities be classified as noncurrent in the balance sheet. The ASU will be effective for us beginning January 1, 2017, including interim periods in the calendar year 2017, but with early adoption permitted. Since we do not report a classified balance sheet, we do not expect the adoption of ASU 2015-17 to have a material impact on our consolidated financial statements and related disclosures. Leases In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (a) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Changes were made to align lessor accounting with the lessee accounting model and ASU No. 2014-09, “Revenue from Contracts with Customers.” The new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The ASU will be effective for us beginning January 1, 2019. Early application is permitted for all public business entities upon issuance. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees may not apply a full retrospective transition approach. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial statements and related disclosures. Share-Based Payments In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting.” Under the new guidance, entities will be required to recognize all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. In addition, the new guidance will allow an employer to repurchase up to the maximum statutory income tax rates in the applicable jurisdictions without triggering liability accounting and allow an entity to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. The guidance is effective for us beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted in any annual or interim period for which financial statements haven’t been issued or made available for issuance, but all of the guidance must be adopted in the same period. We implemented this standard in the second quarter of 2016. The implementation did not have a material impact on our consolidated financial statements and related disclosures. See Note 11 for further information. Equity Method Investments In March 2016, the FASB issued ASU No. 2016-07, “Simplifying the Transition to the Equity Method of Accounting.” The new standard eliminates the requirement for an investor to retroactively apply the equity method when an increase in ownership interest in an investee triggers equity method accounting. It also simplifies in certain areas the accounting for equity method investments. The new standard becomes effective for us in fiscal year ending December 31, 2017 and interim periods therein. The adoption of this standard is not expected to have a material impact on our consolidated financial position, results of operations and cash flows. Credit Losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326).” ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowance |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
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 for 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 June 30, 2016 and December 31, 2015, only our residual assets (described in Note 5), financing receivables held-for-sale, • 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. The financing receivables held for sale are carried at the lower of cost or market. As of June 30, 2016 Fair Value Carrying Value Level (dollars in millions) Assets Financing receivables $ 875 $ 804 Level 3 Financing receivables held-for-sale 42 42 Level 3 Investments available-for-sale (1) 48 48 Level 3 Liabilities Credit facility $ 246 $ 246 Level 3 Nonrecourse debt (2) 668 638 Level 3 Derivative liabilities 7 7 Level 2 (1) The amortized cost of our investments available-for-sale as of June 30, 2016, was $48 million. (2) Fair value and carrying value of nonrecourse debt excludes unamortized debt issuance costs. As of December 31, 2015 Fair Value Carrying Value Level (dollars in millions) Assets Financing receivables $ 806 $ 784 Level 3 Financing receivables held-for-sale 61 60 Level 3 Investments available-for-sale (1) 29 29 Level 3 Liabilities Credit facility $ 247 $ 247 Level 3 Nonrecourse debt (2) 690 680 Level 3 Derivative liabilities 1 1 Level 2 (1) The amortized cost of our investments available-for-sale as of December 31, 2015, was $31 million. (2) Fair value and carrying value of nonrecourse debt excludes unamortized debt issuance costs. Investments We carry our investments in debt securities at fair value on our balance sheet as investments available-for-sale. The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value on a recurring basis: For the three months ended June 30, For the six months ended June 30, 2016 2015 2016 2015 (dollars in millions) Balance, beginning of period $ 37 $ 23 $ 29 $ 27 Purchases of investments available-for-sale 10 15 32 20 Payments on investments available-for-sale — (1 ) (1 ) (8 ) Sale of investments available-for-sale — (9 ) (14 ) (11 ) Gains on investments available-for-sale recorded in earnings — 1 1 1 Gains (losses) on investments available-for-sale recorded in OCI (1) 1 (1 ) 1 (1 ) Balance, end of period $ 48 $ 28 $ 48 $ 28 (1) As of June 30, 2016, approximately $10 million of investment grade rated debt that we held for more than 12 months was in an unrealized loss position due to interest rate movements. As of June 30, 2016, we held no other securities in an unrealized loss position. For investments held at fair value, we used a range of interest rate spreads of approximately 1% to 5% based upon comparable transactions. As of December 31, 2015, we held a $13 million senior secured debt investment, along with a large financial institution which held the remaining approximately $45 million in outstanding debt securities, in an operating wind project that was being foreclosed upon and expected to be sold. The foreclosure and sale was completed in 2016 and we recovered the full value of our debt investment and recognized a gain of $0.8 million. Interest Rate Swap Agreements The fair values of the derivative financial instruments are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. We have determined that the significant inputs, such as interest yield curves and discount rates, used to value our derivatives fall within Level 2 of the fair value hierarchy and that the credit valuation adjustments associated with our counterparties and our own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of our or our counterparties default. As of June 30, 2016 and December 31, 2015, we assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of our derivatives. As a result, we determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. See Note 8 for the estimated fair value of our derivative financial instruments. The fair values of the derivative financial instruments are included in the accounts payable, accrued expenses and other line item in the condensed consolidated balance sheets. Non-recurring Fair Value Measurements Our financial statements may include non-recurring fair value measurements related to acquisitions and non-monetary transactions, if any. Assets acquired in a business combination are recorded at their fair value. We may use third party valuation firms to assist us with developing our estimates of fair value. Concentration of Credit Risk Financing receivables, investments and leases consist primarily of 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. As described above, we do not believe we have a significant credit exposure to our interest rate swap providers. We had cash deposits that are subject to credit risk as shown below: June 30, 2016 December 31, 2015 (dollars in millions) Cash deposits $ 19 $ 43 Restricted cash deposits (included in Other assets) 25 36 Total cash deposits $ 44 $ 79 Amount of cash deposits in excess of amounts federally insured $ 40 $ 75 |
Non-Controlling Interest
Non-Controlling Interest | 6 Months Ended |
Jun. 30, 2016 | |
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 limited partners other than the Company are included in non-controlling interest on our condensed consolidated balance sheets. The non-controlling interest holders are generally allocated their pro rata share of income, other comprehensive income and equity transactions. The outstanding OP units held by outside limited partners represents less than 1% of our outstanding OP units and are redeemable for cash, or at our option, for a like number of shares of our common stock. No OP units were exchanged for shares of common stock during the six months ended June 30, 2016. |
Securitization of Receivables
Securitization of Receivables | 6 Months Ended |
Jun. 30, 2016 | |
Transfers and Servicing [Abstract] | |
Securitization of Receivables | 5. Securitization of Receivables The following summarizes certain transactions with our securitization trusts: For the Six Months Ended June 30, 2016 2015 (dollars in millions) Gains on securitizations $ 10 $ 4 Purchase of receivables securitized $ 319 $ 96 Proceeds from securitizations $ 329 $ 100 Residual and servicing assets included in Other Assets $ 15 $ 10 Cash received from residual and servicing assets $ 2 $ 1 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. We may periodically make servicer advances, which are subject to credit risk. Included in other assets in our condensed consolidated balance sheets are our servicing assets at amortized cost, our residual assets at fair value, and our servicing advances at cost, if any. 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 discount rates we use for the fair value calculation of residual assets, which are determined based on a review of comparable market transactions. Depending on the nature of the transaction risks, the discount rate ranged from 4% to 8%. As of June 30, 2016 and December 31, 2015, our managed assets totaled $3.5 billion and $3.2 billion, of which $2.1 billion and $1.8 billion were securitized assets held in unconsolidated securitization trusts. There were no securitization credit losses during the three or six months ended June 30, 2016 or 2015, and no material securitization delinquencies as of June 30, 2016 and December 31, 2015. The securitized assets consist of financing receivables from contracts for the installation of energy efficiency and other technologies in facilities owned by, or operated for or by, the federal government where the ultimate obligor is the U.S. federal government. The contracts may have guarantees of energy savings from third party service providers, the majority of which are entities rated investment grade by an independent rating agency. 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
Our Portfolio | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Our Portfolio | 6. Our Portfolio As of June 30, 2016, our Portfolio included approximately $1.4 billion of financing receivables, investments, real estate and equity method investments on our balance sheet. The financing receivables and investments are typically collateralized by 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 wind and solar projects with high credit quality obligors. The equity method investments represent our minority equity investments in renewable energy projects. The following is an analysis of our Portfolio by type of obligor and credit quality as of June 30, 2016: Investment Grade Government (1) Commercial Investment Grade (2) Commercial Non-Investment Grade (3) Subtotal, Debt and Real Estate Equity Method Investments (4) Total (dollars in millions) Financing receivables $ 372 $ 415 $ 17 $ 804 $ — $ 804 Financing receivables held-for-sale 42 — — 42 — 42 Investments 33 15 — 48 — 48 Real estate (5) — 162 — 162 — 162 Equity method investments — — — — 335 335 Total $ 447 $ 592 $ 17 $ 1,056 $ 335 $ 1,391 % of Debt and Real Estate Portfolio 42 % 56 % 2 % 100 % N/A N/A Average Remaining Balance (6) $ 12 $ 9 $ 17 $ 10 $ 21 $ 12 (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 $268 million of U.S. federal government transactions and $179 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, $10 million of the transactions have been rated investment grade by an independent rating agency. Commercial investment grade financing receivables include $177 million of internally rated residential solar loans where the cash flows which support our financing receivables are subordinated to the tax equity investors (whose return is largely derived from the renewable energy tax incentives) and for which we rely on certain tax related indemnities of the publicly traded residential solar provider. (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 ownership interests in operating renewable energy projects. (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 84 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $30 million. The components of financing receivables as of June 30, 2016 and December 31, 2015, were as follows: June 30, 2016 December 31, (dollars in millions) Financing receivables Financing or minimum lease payments (1) $ 1,061 $ 1,025 Unearned interest income (254 ) (238 ) Allowance for credit losses — — Unearned fee income, net of initial direct costs (3 ) (3 ) Financing receivables (1) $ 804 $ 784 (1) Excludes $42 million and $60 million in financing receivables held-for-sale as of June 30, 2016 and December 31, 2015, respectively. In accordance with the terms of certain purchase agreements related to financing receivables or other investments, payments of the purchase price are scheduled to be made over time, generally within 12 months of entering into the transaction, and as a result, we have recorded deferred funding obligations of $78 million and $108 million as of June 30, 2016 and December 31, 2015, respectively. Approximately $42 million of those investments were pledged as collateral against these 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 June 30, 2016: Total Less than 1 1-5 years 5-10 years More than 10 (dollars in millions) Financing Receivables (1) Maturities by period $ 804 $ 1 $ 83 $ 39 $ 681 Weighted average yield by period 5.5 % 4.0 % 7.0 % 4.1 % 5.4 % Investments Maturities by period $ 48 $ — $ — $ 1 $ 47 Weighted average yield by period 3.8 % — % — % 4.7 % 3.9 % (1) Excludes financing receivables held-for-sale of $42 million. Our real estate is leased to renewable energy projects, typically under long-term triple net leases with expiration dates that range between the years 2033 and 2051 under the initial terms and 2047 and 2080 if all extensions are exercised. The components of our real estate portfolio as of June 30, 2016 and December 31, 2015, were as follows: June 30, 2016 December 31, (dollars in millions) Real Estate Land $ 132 $ 129 Real estate related intangibles 33 28 Accumulated amortization of real estate intangibles (3 ) (1 ) Real Estate $ 162 $ 156 There are conservation easement agreements covering several of our properties that limit the use of the property upon expiration of the respective leases. The real estate related intangible assets are amortized on a straight-line basis over the contracted lease term. As of June 30, 2016, the future amortization expense of these intangible assets and the future minimum rental income payments under our land lease agreements are as follows: Year Ending December 31, Future Minimum (dollars in millions) From July 1, 2016 to December 31, 2016 $ 1 $ 4 2017 1 10 2018 1 11 2019 1 11 2020 1 10 2021 1 11 Thereafter 24 292 Total $ 30 $ 349 We make minority interest investments in renewable energy projects operated by renewable energy companies. Through these equity method investments, we indirectly own minority interests in a number of limited liability holding companies that own 12 operating wind projects. In June 2016, we acquired from a third party interests in several limited liability holding companies that collectively own approximately 43 megawatts of operating distributed commercial, industrial and residential solar projects. We receive a priority distribution from these projects until negotiated financial targets are achieved at which time the partnerships will flip and the company that operates the project will receive a larger portion of the cash flows and we will have an on-going residual interest. An affiliate of AES Corporation (“AES”) is the operator and project sponsor of these projects. We financed approximately $33 million of the approximately $42 million purchase price with the seller through a two-year non-interest bearing loan secured by our ownership interest in the holding companies. We have recorded our purchase obligation to the seller as a deferred funding obligation on our balance sheet and will reflect an imputed interest expense on the outstanding balance on the investment interest expense line of our income statement. See Note 2 for our accounting treatment of these investments and Note 13 for the aggregate financial position and results of operations of the significant holding companies. We had no financing receivables, investments or leases that were impaired or on nonaccrual status as of June 30, 2016 or December 31, 2015. There was no provision for credit losses for the three or six months ended June 30, 2016 or 2015. We did not have any loan modifications that qualify as trouble debt restructurings for the three or six months ended June 30, 2016 or 2015. |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [Abstract] | |
Credit Facility | 7. Credit Facility We have a senior secured revolving credit facility which provides for total maximum advances of $1.5 billion with the aggregate amount outstanding at any point in time of $500 million and which consists of two components, the G&I Facility and the PF Facility. The “G&I Facility” can be used to leverage certain qualifying government and institutional financings entered into by us and the “PF Facility” can be used to leverage certain qualifying project financings entered into by us. The facility was originally entered into in 2013 and has been amended a number of times, including in January 2016. The effect of the various amendments has been to increase the size, flexibility and allocation of the facility and extend the termination date to July 19, 2019. The limit of borrowing at any point in time and the total maximum advances is summarized below: Limit of Borrowing at any point in time Maximum Total Advances As of G&I Facility PF Facility G&I Facility PF Facility (dollars in millions) December 31, 2014 $ 125 $ 325 $ 375 $ 975 December 31, 2015 $ 150 $ 350 $ 450 $ 1,050 January 2016 $ 250 $ 250 $ 600 $ 900 Loans under the G&I Facility bear interest at a rate equal to the London Interbank Offered Rate (“LIBOR”) plus 1.5% or, under certain circumstances, 1.5% plus the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the rate of interest publicly announced by Bank of America from time to time as its “prime rate,” and (iii) LIBOR plus 1.0%. Loans under the PF Facility bear interest at a rate equal to LIBOR plus 2.5% or, under certain circumstances, 2.5% plus the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the rate of interest publicly announced by Bank of America from time to time as its “prime rate,” and (iii) LIBOR plus 1.0%. Under the PF Facility, 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. The loans are made through wholly-owned special purpose subsidiaries (the “Borrowers”) and we have guaranteed the obligations of the Borrowers under the credit facility pursuant to (x) a Continuing Guaranty, dated July 19, 2013, and (y) a Limited Guaranty, dated July 19, 2013, both as amended and restated. Any financing we propose to be included in the borrowing base as collateral under the facility is subject to the approval of the administrative agent in its sole discretion and the payment of a placement fee. We may, with the consent of the administrative agent, borrow against new projects before such projects become Approved Financings (as defined in the PF Facility loan agreement) but after they have been pledged as collateral. The amount eligible to be drawn under the facility 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 Facility, the applicable valuation percentage for non-delinquent investments is 85% in the case of a U.S. federal government obligor, 80% 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 Facility, 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. The following table provides additional detail on our credit facility as of June 30, 2016 and December 31, 2015: June 30, 2016 December 31, (dollars in millions) Outstanding balance $ 246 $ 247 Value of collateral pledged to credit facility $ 503 $ 356 Weighted average short-term borrowing rate 2.1 % 2.3 % We incurred approximately $13 million of costs associated with the credit facility that have been capitalized (included in other assets on the condensed consolidated balance sheets) and are being 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 component of the credit facility over the actual amount borrowed under such component. The credit facility contains terms, conditions, covenants, and representations and warranties that are customary and typical for a transaction of this nature, including 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. The credit facility 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 credit facility, acceleration of amounts due under the credit facility, and accrual of default interest at a rate of LIBOR plus 2.50% in the case of the G&I Facility and at a rate of LIBOR plus 5.00% in the case of the PF Facility. We were in compliance with the required financial covenants described below at each quarterly reporting date that such covenants were applicable: 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
Nonrecourse Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Nonrecourse Debt | 8. Nonrecourse Debt We have outstanding the following asset-backed nonrecourse debt and bank loans (dollars in millions): Outstanding Balance as of Value of Assets Pledged as of, June 30, 2016 December 31, Interest Rate Maturity Date Anticipated June 30, 2016 December 31, Description of Assets Pledged HASI Sustainable Yield Bond 2013-1 $ 81 $ 83 2.79% December 2019 $ 57 $ 98 $ 99 Financing receivables ABS Loan Agreement $ 95 $ 102 5.74% September 2021 $ 17 $ 104 $ 117 Equity interest in Strong Upwind Holdings I, LLC HASI Sustainable Yield Bond 2015-1 $ 99 $ 100 4.28% October 2034 $ — $ 138 $ 139 Financing receivables, real estate and real estate intangibles HASI SYB Loan Agreement 2015-1 $ 79 $ 90 4.13% (1) December 2021 $ — $ 104 $ 117 Equity interest in Strong Upwind Holdings II and III, LLC, related interest rate swap HASI SYB Loan Agreement 2015-2 $ 41 $ 42 4.63% (1) December 2023 $ — $ 70 $ 71 Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap HASI SYB Loan Agreement 2015-3 $ 152 $ 162 4.92% December 2020 $ 132 $ 177 $ 175 Residential Solar Financing receivables Other nonrecourse debt (2) $ 91 $ 101 2.26% - 7.45% 2017 to 2032 $ — $ 88 $ 97 Financing receivables Debt issuance costs $ (14 ) $ (16 ) Nonrecourse debt $ 624 $ 664 (1) Interest rate represents the current period’s LIBOR based rate plus the spread. Also see the interest rate swap contracts shown in the table below. (2) Other nonrecourse debt consists of various debt agreements used to finance certain of our financing receivables for the term of the financing receivables. Debt service payment requirements, in a majority of cases, are equal to or less than the cash flows received from the underlying financing receivables. We have pledged the ownership interest in the relevant assets or the relevant assets themselves to bankruptcy remote entities as security for the nonrecourse debt. The assets and credit of these entities are not available to satisfy any of our other debts and obligations, except as set forth in the debt agreements. The debtors can only look to the cash flows of the pledged assets to satisfy the debt and we are not liable for nonpayment of such cash flows. The debt agreements contain terms, conditions, covenants, and representations and warranties 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 agreements also include customary events of default, the occurrence of which may result in termination of the agreements, acceleration of amounts due, and accrual of default interest. We typically act as servicer for the debt transactions. We have guaranteed the performance of the representations and warranties and other obligations of certain of our subsidiaries under certain of the debt agreements and provided an indemnity against certain losses from “bad acts” of such subsidiaries including fraud, failure to disclose a material fact, theft, misappropriation, voluntary bankruptcy or unauthorized transfers. In the case of the debt secured by our renewable energy equity interests, we have also guaranteed the compliance of our subsidiaries with certain tax matters and certain obligations if certain of our joint venture partners exercise their right to withdraw from our partnerships. The HASI Sustainable Yield Bond (“HASI SYB”) 2015-1 consists of two notes, (i) $101 million in aggregate principal amount of 4.28% HASI SYB 2015-1A, Class A Bonds (the “Class A Bonds”) and (ii) $18 million in aggregate principal amount of 5.0% HASI SYB 2015-1B, Class B Bonds (the “Class B Bonds”), both with an anticipated repayment date in October 2034. The Class A Bonds rank senior to the Class B Bonds in priority of payment. We retained the Class B Bonds. The other loan and debt transactions were negotiated with, and held by, commercial banks, including one loan agreement that has a corporate financial subsidiary as a co-lender. In connection with several of our nonrecourse debt borrowings, we have entered into the following interest rate swaps that are designated as cash flow hedges (dollars in millions): Notional Value as of Fair Value as of Base Rate Hedged Rate June 30, December 31, June 30, 2016 December 31, Term HASI SYB Loan Agreement 2015-1 3 month Libor 1.55 % $ 72 $ 81 $ (1.2 ) $ (0.3 ) December 2015 to September 2021 HASI SYB Loan Agreement 2015-2 3 month Libor 1.52 % $ 37 $ 38 $ (0.6 ) $ (0.1 ) December 2015 to December 2018 HASI SYB Loan Agreement 2015-2 3 month Libor 2.55 % $ 29 $ 29 $ (1.2 ) $ (0.2 ) December 2018 to December 2024 HASI SYB Loan Agreement 2015-3 1 month Libor 2.34 % $ 119 $ — $ (3.6 ) $ — November 2020 to August 2028 Total $ 257 $ 148 $ (6.6 ) $ (0.6 ) The total fair value of our hedges relating to interest rate hedges that are effective in offsetting variable cash flows is reflected as unrealized losses in accumulated other comprehensive income and in Accounts payable, accrued expenses and other in the accompanying condensed consolidated balance sheets. As of June 30, 2016 and December 31, 2015, all of our derivatives were designated as hedging instruments and there was no ineffectiveness recorded on our designated hedges and no portion of the Accumulated other comprehensive income, net of associated deferred income tax effects, related to our interest rate hedges was reclassified into interest expense. The stated minimum maturities of nonrecourse debt as of June 30, 2016, were as follows: As of June 30, (dollars in millions) 2016 $ 48 2017 41 2018 37 2019 98 2020 155 Thereafter 259 $ 638 Deferred financing costs, net (14 ) Total nonrecourse debt $ 624 The stated minimum maturities of nonrecourse debt above include only the mandatory minimum principal payments. To the extent there are additional cash flows received from Strong Upwind Holdings II, LLC, Strong Upwind Holdings III, LLC or Buckeye Wind Energy Class B Holdings LLC, these additional cash flows are required to be used to make additional principal payments against the respective HASI SYB Loan Agreement 2015-1 and HASI SYB Loan Agreement 2015-2 notes. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Litigation The nature of our operations exposes us to the risk of claims and litigation in the normal course of our business. Other than non-material litigation arising out of the ordinary course of business, 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 | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 10. Income Tax We recorded a tax expense of less than $0.1 million for the three and six months ended June 30, 2016 and 2015. Our income tax expense was determined using a federal rate of 35% and a combined state rate, net of federal benefit, of 5%. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Equity | 11. Equity Dividends and Distributions Our board of directors declared the following dividends in 2015 and 2016: Announced Date Record Date Pay Date Amount per share 3/17/15 3/30/15 4/9/15 $ 0.26 6/16/15 6/30/15 7/9/15 $ 0.26 9/16/15 9/30/15 10/8/15 $ 0.26 12/15/15 12/30/15 1/7/16 $ 0.30 3/15/16 3/30/16 4/7/16 $ 0.30 6/07/16 7/06/16 7/14/16 $ 0.30 We have an effective shelf registration statement registering the potential offer 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 by means of ordinary brokers’ transactions on the NYSE or otherwise at market prices prevailing at the time of sale or at negotiated prices and may include “at the market” (“ATM”) offerings or sales “at the market,” to or through a market maker or into an existing trading market on an exchange or otherwise. We completed the following public offerings and ATM offerings of our common stock in 2015 and 2016: Closing Date Common Stock Offerings Shares Issued 1 Price Per Share Net Proceeds 2 (amounts in millions, except per share amounts) 5/4/15 Public Offering 4.60 $ 18.50 3 $ 82 10/19/15 Public Offering 5.75 $ 18.00 3 $ 99 6/21/16 Public Offering 4.60 $ 19.78 4 $ 91 5/9/16 to 6/30/16 ATM 0.065 $ 20.31 5 $ 1 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 and other offering costs. 3 Represents the public offering price per share. 4 Represents the price per share at which the underwriters in our public offerings purchased shares from our company. 5 Represents the average price per share at which investors in our ATM offerings purchased shares from our company. Awards of Shares of Restricted Common Stock under our 2013 Plan We recognize equity-based compensation expense as described in Note 2 and have issued both awards with service conditions and awards with both service and performance conditions. During the six months ended June 30, 2016, our board of directors awarded employees and directors 361,503 shares of restricted common stock that vest in 2016 to 2019 and 291,000 shares of restricted common stock to certain employees that vest upon the achievement of certain performance targets. As of June 30, 2016, we have concluded that it is probable that the performance conditions will be met. For the three and six months ended June 30, 2016, we recorded $3 million and $5 million, respectively, of equity-based compensation expense as compared to $3 million and $5 million, respectively, for the three and six months ended June 30, 2015. The total unrecognized compensation expense related to awards of shares of restricted common stock was approximately $15 million as of June 30, 2016, that is expected to be recognized over a weighted-average term of approximately two years. As part of the implementation of ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” we will recognize forfeitures when they occur as opposed to the previous requirement under which we reduced equity-based compensation expense for an estimated forfeiture rate of up to 5%. Expenses recognized year to date, and the adjustment to retained earnings for the equity based compensation expense previously recognized, from the adoption of this change were less than $1 million. A summary of the unvested shares of restricted common stock that have been issued is as follows: Restricted Shares of Common Stock Weighted Average Share Price Value (in millions) Balance — December 31, 2014 964,820 $ 13.41 $ 12.9 Granted 586,648 17.29 10.2 Vested (285,289 ) 13.61 (3.9 ) Forfeited (18,110 ) 15.54 (0.3 ) Balance — December 31, 2015 1,248,069 $ 15.16 $ 18.9 Granted 652,503 18.58 12.2 Vested (566,174 ) 13.74 (7.8 ) Forfeited (4,372 ) 17.47 (0.1 ) Ending Balance — June 30, 2016 1,330,026 $ 17.44 $ 23.2 |
Earnings per Share of Common St
Earnings per Share of Common Stock | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share of Common Stock | 12. Earnings per Share of Common Stock Both the net income or loss attributable to the non-controlling OP units and the non-controlling limited partners’ outstanding OP units have been excluded from net income or loss and the diluted earnings per share calculation attributable to common stockholders. 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. The computation of basic and diluted earnings per common share is as follows: Three Months Ended June 30, Six Months Ended June 30, Numerator: 2016 2015 2016 2015 (in millions, except share and per share data) Net income attributable to controlling shareholders and participating securities $ 3.8 $ 1.5 $ 6.9 $ 3.6 Less: Dividends paid on participating securities (0.4 ) (0.3 ) (0.9 ) (0.7 ) Undistributed earnings attributable to participating securities — — — — Net income attributable to controlling shareholders $ 3.4 $ 1.2 $ 6.0 $ 2.9 Denominator: Weighted-average number of common shares — basic 37,737,026 29,479,023 37,376,618 27,941,095 Weighted-average number of common shares — diluted 37,737,026 29,479,023 37,376,618 27,941,095 Basic earnings per common share $ 0.09 $ 0.04 $ 0.16 $ 0.10 Diluted earnings per common share $ 0.09 $ 0.04 $ 0.16 $ 0.10 Other Information: Weighted-average number of OP units 284,992 284,992 284,992 304,940 Unvested restricted common stock outstanding 1,330,026 1,277,010 |
Equity Method Investments in Af
Equity Method Investments in Affiliate | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments in Affiliate | 13. Equity Method Investments in Affiliate As described in Notes 1 and 2, we have noncontrolling equity investments in entities that own minority interests in renewable energy projects. We recognized income of $1.1 million and $1.3 million during the three and six months ended June 30, 2016, respectively, from our equity method investments, as compared to a loss of $0.3 million during both the three and six months ended June 30, 2015. The following is a summary of the consolidated financial position and results of operations of the significant holding companies, accounted for using the equity method: As of March 31, 2016 As of December 31, 2015 (dollars in millions, unaudited) Current Assets $ 56 $ 61 Total Assets $ 1,379 $ 1,409 Current Liabilities $ 15 $ 14 Total Liabilities $ 59 $ 58 Members’ Equity $ 1,320 $ 1,351 For the three months ended March 31, For the year ended December 31, 2016 2015 2015 2014 (dollars in millions, unaudited) (dollars in millions, unaudited) Revenue $ 39 $ 40 $ 149 $ 154 Income from Continuing Operations $ 5 $ 14 $ 33 $ 44 Net Income $ 5 $ 14 $ 33 $ 44 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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. Actual results could differ from these estimates and such differences could be material. 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, including the format of the revenue section of the income statement to include a calculation of Total Revenue. 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 energy efficiency and renewable energy 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 market 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 include origination and acquisition costs, as applicable. Financing receivables that we intend to sell in the short-term are classified as held-for-sale 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 energy efficiency and renewable energy 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 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. We have designated our debt securities as available-for-sale and carry these securities at fair value on our balance sheet. 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. 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, the value of any collateral and any 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 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 likely 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 likely 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, 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-place 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. Scheduled rental revenue typically varies during the lease term and thus rental 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. Rental expenses (if any) are charged to operations as incurred. |
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, or VIEs, 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 we have concluded 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. We have received true-sale-at-law opinions for all of our securitization trust structures and non-consolidation legal opinions for all but one old securitization trust structure that support our conclusion regarding 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. Servicing assets and liabilities are amortized in proportion to, and over the period of, estimated net servicing income with servicing income recognized as earned. 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. 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 on a quarterly basis. 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. |
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 as of the balance sheet dates. Restricted Cash is reported as part of Other Assets in the condensed consolidated balance sheets. |
Variable Interest Entities and Equity Method Investments in Affiliates | Variable Interest Entities and Equity Method Investments in Affiliates We account for our investment in entities that are considered voting or variable interest entities under ASC 810, Consolidation. We perform an ongoing assessment to determine the primary beneficiary of each entity as required by ASC 810. We have established various special purpose entities or securitization trusts for the purpose of securitizing certain financing receivables or other debt investments which are not consolidated in our financial statements as described in 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, we made equity investments in various renewable energy projects. We share in the cash flows and tax attributes according to a negotiated schedule. Our renewable energy projects are typically owned in partnerships structures (using limited liability corporations, or LLCs taxed as partnerships) where we, along with other large institutional investors, if any, receive a stated preferred return consisting of a priority distribution of the project’s cash flows, and in some cases, tax attributes. Once this preferred return is achieved, the partnership “flips” and the company which operates the project receives a larger portion of the cash flows through its interest in the holding company and we, along with the other institutional investors, will have an on-going residual interest. We made several new equity investments in renewable energy projects in 2016 that, along with our existing investments, are accounted for under the equity method of accounting. Certain of our equity method investments were determined to be VIEs. Our maximum exposure to loss associated with our equity method investments is limited to our recorded value of our investments. 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 limited liability entity agreement, less distributions received. Because the limited liability entity and holding company 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 or (“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 investments in affiliates 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 have elected to recognize earnings from these investments one quarter in arrears to allow for the receipt of financial information. We evaluate the realization of our investment accounted for using the equity method if circumstances indicate that our investment is OTTI. OTTI 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 |
Derivative Financial Instruments | Derivative Financial Instruments We utilize derivative financial instruments, primarily interest rate swaps, to manage, or hedge, our interest rate risk exposures associated with new debt issuances, to manage our exposure to fluctuations in interest rates on variable rate debt, and to optimize the mix of our fixed and floating-rate debt. In addition, we use forward-starting interest rate swap contracts to manage a portion of our interest rate exposure for anticipated refinancing of our long-term debts. Our objective is to manage the impact of interest rates on the results of operations and cash flows and the market value of our debt. The interest rate swaps we use are designated as cash flow hedges and are considered highly effective in reducing our exposure to the interest rate risk that they are designated to hedge. This effectiveness is essential in order to qualify for hedge accounting. Instruments that meet these hedging criteria are formally designated as hedges at the inception of the derivative contract. Derivatives are recorded on the consolidated balance sheet at fair value. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in Accumulated Other Comprehensive Income, net of associated deferred income tax effects, in our Consolidated Statements of Stockholders’ Equity and Comprehensive Income (Loss) and are recognized in the Consolidated Statements of Operations when the hedged item affects earnings. Changes in fair value of the ineffective portions of these hedges are recognized in General and administrative expenses in our Consolidated Statements of Operations. For any derivative instruments not designated as hedging instruments, changes in fair value would be recognized in our Consolidated Statements of Operations in the period that the change occurs. We assess, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. We do not hold derivatives for trading purposes. Interest rate swap contracts contain a credit risk that counterparties may be unable to fulfill the terms of the agreement. We attempt to minimize that risk by evaluating the creditworthiness of its counterparties, who are limited to major banks and financial institutions, and do not anticipate nonperformance by the counterparties. |
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 on an ongoing basis 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 (“TRSs”) 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 TRSs 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 2012 through 2015 are open. As of June 30, 2016 and December 31, 2015, we had no uncertain tax positions. Our policy is to recognize interest expense and penalties related to income tax matters as a component of general and administrative expense. There were no accrued interest and penalties as of June 30, 2016 and December 31, 2015, and no interest and penalties were recognized during the three or six months ended June 30, 2016 and 2015. |
Equity-Based Compensation | Equity-Based Compensation At the time of completion of our initial public offering (“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 stock as compensation to members of our senior management team, our independent directors, employees, advisors, consultants and other personnel under our 2013 Plan. We record compensation expense for stock awards in accordance with ASC 718, Compensation—Stock Compensation. We record 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. For awards where the vesting is contingent upon achievement of certain performance targets, compensation expense is recorded over the requisite service period (which includes the performance period) based on our estimate of the achievement of the various performance targets,. 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. |
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) by the weighted-average |
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 (Topic 606),” 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. The FASB proposed delaying the effective date of the standard by one year and issued a proposal that is intended to clarify and simplify the guidance. The updated standard becomes effective for us on January 1, 2018 and we expect will be first presented in our March 31, 2018, Form 10-Q. 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 disclosures. Consolidation In February 2015, the FASB issued ASU No. 2015-02 “Consolidation (Topic 810) Amendments to the Consolidation Analysis,” which affects the following areas of the consolidation analysis: limited partnerships and similar entities, evaluation of fees paid to a decision maker or service provider as a variable interest and in determination of the primary beneficiary, effect of related parties on the primary beneficiary determination and for certain investment funds. ASU No. 2015-02 is effective for us for our fiscal year ending December 31, 2016 and interim periods therein. The adoption of this standard did not have a material impact on our consolidated financial position, results of operations and cash flows. Income Taxes In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes.” The purpose of the standard is to simplify the presentation of deferred taxes on a classified balance sheet. Under current GAAP, deferred income tax assets and liabilities are separated into current and noncurrent amounts in the balance sheet. The amendments in ASU 2015-17 require that all deferred tax assets and liabilities be classified as noncurrent in the balance sheet. The ASU will be effective for us beginning January 1, 2017, including interim periods in the calendar year 2017, but with early adoption permitted. Since we do not report a classified balance sheet, we do not expect the adoption of ASU 2015-17 to have a material impact on our consolidated financial statements and related disclosures. Leases In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (a) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Changes were made to align lessor accounting with the lessee accounting model and ASU No. 2014-09, “Revenue from Contracts with Customers.” The new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The ASU will be effective for us beginning January 1, 2019. Early application is permitted for all public business entities upon issuance. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees may not apply a full retrospective transition approach. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial statements and related disclosures. Share-Based Payments In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting.” Under the new guidance, entities will be required to recognize all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. In addition, the new guidance will allow an employer to repurchase up to the maximum statutory income tax rates in the applicable jurisdictions without triggering liability accounting and allow an entity to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. The guidance is effective for us beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted in any annual or interim period for which financial statements haven’t been issued or made available for issuance, but all of the guidance must be adopted in the same period. We implemented this standard in the second quarter of 2016. The implementation did not have a material impact on our consolidated financial statements and related disclosures. See Note 11 for further information. Equity Method Investments In March 2016, the FASB issued ASU No. 2016-07, “Simplifying the Transition to the Equity Method of Accounting.” The new standard eliminates the requirement for an investor to retroactively apply the equity method when an increase in ownership interest in an investee triggers equity method accounting. It also simplifies in certain areas the accounting for equity method investments. The new standard becomes effective for us in fiscal year ending December 31, 2017 and interim periods therein. The adoption of this standard is not expected to have a material impact on our consolidated financial position, results of operations and cash flows. Credit Losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326).” ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as currently required. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact the adoption of ASU 2016-13 will have on our consolidated financial statements and related disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value and Carrying Value of Financial Assets and Liabilities | As of June 30, 2016 Fair Value Carrying Value Level (dollars in millions) Assets Financing receivables $ 875 $ 804 Level 3 Financing receivables held-for-sale 42 42 Level 3 Investments available-for-sale (1) 48 48 Level 3 Liabilities Credit facility $ 246 $ 246 Level 3 Nonrecourse debt (2) 668 638 Level 3 Derivative liabilities 7 7 Level 2 (1) The amortized cost of our investments available-for-sale as of June 30, 2016, was $48 million. (2) Fair value and carrying value of nonrecourse debt excludes unamortized debt issuance costs. As of December 31, 2015 Fair Value Carrying Value Level (dollars in millions) Assets Financing receivables $ 806 $ 784 Level 3 Financing receivables held-for-sale 61 60 Level 3 Investments available-for-sale (1) 29 29 Level 3 Liabilities Credit facility $ 247 $ 247 Level 3 Nonrecourse debt (2) 690 680 Level 3 Derivative liabilities 1 1 Level 2 (1) The amortized cost of our investments available-for-sale as of December 31, 2015, was $31 million. (2) Fair value and carrying value of nonrecourse debt excludes unamortized debt issuance costs. |
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 on a recurring basis: For the three months ended June 30, For the six months ended June 30, 2016 2015 2016 2015 (dollars in millions) Balance, beginning of period $ 37 $ 23 $ 29 $ 27 Purchases of investments available-for-sale 10 15 32 20 Payments on investments available-for-sale — (1 ) (1 ) (8 ) Sale of investments available-for-sale — (9 ) (14 ) (11 ) Gains on investments available-for-sale recorded in earnings — 1 1 1 Gains (losses) on investments available-for-sale recorded in OCI (1) 1 (1 ) 1 (1 ) Balance, end of period $ 48 $ 28 $ 48 $ 28 (1) As of June 30, 2016, approximately $10 million of investment grade rated debt that we held for more than 12 months was in an unrealized loss position due to interest rate movements. As of June 30, 2016, we held no other securities in an unrealized loss position. |
Schedule of Cash Deposits Subject to Credit Risk | We had cash deposits that are subject to credit risk as shown below: June 30, 2016 December 31, 2015 (dollars in millions) Cash deposits $ 19 $ 43 Restricted cash deposits (included in Other assets) 25 36 Total cash deposits $ 44 $ 79 Amount of cash deposits in excess of amounts federally insured $ 40 $ 75 |
Securitization of Receivables (
Securitization of Receivables (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Transfers and Servicing [Abstract] | |
Summary of Certain Transactions with Securitization Trusts | The following summarizes certain transactions with our securitization trusts: For the Six Months Ended June 30, 2016 2015 (dollars in millions) Gains on securitizations $ 10 $ 4 Purchase of receivables securitized $ 319 $ 96 Proceeds from securitizations $ 329 $ 100 Residual and servicing assets included in Other Assets $ 15 $ 10 Cash received from residual and servicing assets $ 2 $ 1 |
Our Portfolio (Tables)
Our Portfolio (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016: Investment Grade Government (1) Commercial Investment Grade (2) Commercial Non-Investment Grade (3) Subtotal, Debt and Real Estate Equity Method Investments (4) Total (dollars in millions) Financing receivables $ 372 $ 415 $ 17 $ 804 $ — $ 804 Financing receivables held-for-sale 42 — — 42 — 42 Investments 33 15 — 48 — 48 Real estate (5) — 162 — 162 — 162 Equity method investments — — — — 335 335 Total $ 447 $ 592 $ 17 $ 1,056 $ 335 $ 1,391 % of Debt and Real Estate Portfolio 42 % 56 % 2 % 100 % N/A N/A Average Remaining Balance (6) $ 12 $ 9 $ 17 $ 10 $ 21 $ 12 (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 $268 million of U.S. federal government transactions and $179 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, $10 million of the transactions have been rated investment grade by an independent rating agency. Commercial investment grade financing receivables include $177 million of internally rated residential solar loans where the cash flows which support our financing receivables are subordinated to the tax equity investors (whose return is largely derived from the renewable energy tax incentives) and for which we rely on certain tax related indemnities of the publicly traded residential solar provider. (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 ownership interests in operating renewable energy projects. (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 84 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $30 million. |
Components of Financing Receivables | The components of financing receivables as of June 30, 2016 and December 31, 2015, were as follows: June 30, 2016 December 31, (dollars in millions) Financing receivables Financing or minimum lease payments (1) $ 1,061 $ 1,025 Unearned interest income (254 ) (238 ) Allowance for credit losses — — Unearned fee income, net of initial direct costs (3 ) (3 ) Financing receivables (1) $ 804 $ 784 (1) Excludes $42 million and $60 million in financing receivables held-for-sale as of June 30, 2016 and December 31, 2015, 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 June 30, 2016: Total Less than 1 1-5 years 5-10 years More than 10 (dollars in millions) Financing Receivables (1) Maturities by period $ 804 $ 1 $ 83 $ 39 $ 681 Weighted average yield by period 5.5 % 4.0 % 7.0 % 4.1 % 5.4 % Investments Maturities by period $ 48 $ — $ — $ 1 $ 47 Weighted average yield by period 3.8 % — % — % 4.7 % 3.9 % (1) Excludes financing receivables held-for-sale of $42 million. |
Components of Real Estate Portfolio | The components of our real estate portfolio as of June 30, 2016 and December 31, 2015, were as follows: June 30, 2016 December 31, (dollars in millions) Real Estate Land $ 132 $ 129 Real estate related intangibles 33 28 Accumulated amortization of real estate intangibles (3 ) (1 ) Real Estate $ 162 $ 156 |
Schedule of Future Amortization Expenses Related to Intangible Assets and Future Minimum Rental Income Payments under Land Lease Agreements | As of June 30, 2016, the future amortization expense of these intangible assets and the future minimum rental income payments under our land lease agreements are as follows: Year Ending December 31, Future Minimum (dollars in millions) From July 1, 2016 to December 31, 2016 $ 1 $ 4 2017 1 10 2018 1 11 2019 1 11 2020 1 10 2021 1 11 Thereafter 24 292 Total $ 30 $ 349 |
Credit Facility (Tables)
Credit Facility (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Text Block [Abstract] | |
Schedule of Limit of Borrowing at Any Point in Time and Total Maximum Advances | The limit of borrowing at any point in time and the total maximum advances is summarized below: Limit of Borrowing at any point in time Maximum Total Advances As of G&I Facility PF Facility G&I Facility PF Facility (dollars in millions) December 31, 2014 $ 125 $ 325 $ 375 $ 975 December 31, 2015 $ 150 $ 350 $ 450 $ 1,050 January 2016 $ 250 $ 250 $ 600 $ 900 |
Schedule of Additional Detail on Credit Facility | The following table provides additional detail on our credit facility as of June 30, 2016 and December 31, 2015: June 30, 2016 December 31, (dollars in millions) Outstanding balance $ 246 $ 247 Value of collateral pledged to credit facility $ 503 $ 356 Weighted average short-term borrowing rate 2.1 % 2.3 % |
Summary of Required Covenant Included in Loan Agreements | We were in compliance with the required financial covenants described below at each quarterly reporting date that such covenants were applicable: 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) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Asset-Backed Nonrecourse Debt and Bank Loans | We have outstanding the following asset-backed nonrecourse debt and bank loans (dollars in millions): Outstanding Balance as of Value of Assets Pledged as of, June 30, 2016 December 31, Interest Rate Maturity Date Anticipated June 30, 2016 December 31, Description of Assets Pledged HASI Sustainable Yield Bond 2013-1 $ 81 $ 83 2.79% December 2019 $ 57 $ 98 $ 99 Financing receivables ABS Loan Agreement $ 95 $ 102 5.74% September 2021 $ 17 $ 104 $ 117 Equity interest in Strong Upwind Holdings I, LLC HASI Sustainable Yield Bond 2015-1 $ 99 $ 100 4.28% October 2034 $ — $ 138 $ 139 Financing receivables, real estate and real estate intangibles HASI SYB Loan Agreement 2015-1 $ 79 $ 90 4.13% (1) December 2021 $ — $ 104 $ 117 Equity interest in Strong Upwind Holdings II and III, LLC, related interest rate swap HASI SYB Loan Agreement 2015-2 $ 41 $ 42 4.63% (1) December 2023 $ — $ 70 $ 71 Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap HASI SYB Loan Agreement 2015-3 $ 152 $ 162 4.92% December 2020 $ 132 $ 177 $ 175 Residential Solar Financing receivables Other nonrecourse debt (2) $ 91 $ 101 2.26% - 7.45% 2017 to 2032 $ — $ 88 $ 97 Financing receivables Debt issuance costs $ (14 ) $ (16 ) Nonrecourse debt $ 624 $ 664 (1) Interest rate represents the current period’s LIBOR based rate plus the spread. Also see the interest rate swap contracts shown in the table below. (2) Other nonrecourse debt consists of various debt agreements used to finance certain of our financing receivables for the term of the financing receivables. Debt service payment requirements, in a majority of cases, are equal to or less than the cash flows received from the underlying financing receivables. |
Schedule of Interest Rate Swaps that Are Designated as Cash Flow Hedges | In connection with several of our nonrecourse debt borrowings, we have entered into the following interest rate swaps that are designated as cash flow hedges (dollars in millions): Notional Value as of Fair Value as of Base Rate Hedged Rate June 30, December 31, June 30, 2016 December 31, Term HASI SYB Loan Agreement 2015-1 3 month Libor 1.55 % $ 72 $ 81 $ (1.2 ) $ (0.3 ) December 2015 to September 2021 HASI SYB Loan Agreement 2015-2 3 month Libor 1.52 % $ 37 $ 38 $ (0.6 ) $ (0.1 ) December 2015 to December 2018 HASI SYB Loan Agreement 2015-2 3 month Libor 2.55 % $ 29 $ 29 $ (1.2 ) $ (0.2 ) December 2018 to December 2024 HASI SYB Loan Agreement 2015-3 1 month Libor 2.34 % $ 119 $ — $ (3.6 ) $ — November 2020 to August 2028 Total $ 257 $ 148 $ (6.6 ) $ (0.6 ) |
Schedule of Minimum Maturities of Nonrecourse Debt | The stated minimum maturities of nonrecourse debt as of June 30, 2016, were as follows: As of June 30, (dollars in millions) 2016 $ 48 2017 41 2018 37 2019 98 2020 155 Thereafter 259 $ 638 Deferred financing costs, net (14 ) Total nonrecourse debt $ 624 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Summary of Dividends Declared by Board of Directors | Our board of directors declared the following dividends in 2015 and 2016: Announced Date Record Date Pay Date Amount per share 3/17/15 3/30/15 4/9/15 $ 0.26 6/16/15 6/30/15 7/9/15 $ 0.26 9/16/15 9/30/15 10/8/15 $ 0.26 12/15/15 12/30/15 1/7/16 $ 0.30 3/15/16 3/30/16 4/7/16 $ 0.30 6/07/16 7/06/16 7/14/16 $ 0.30 |
Schedule of Common Stock Public Offerings and ATM Offerings | We completed the following public offerings and ATM offerings of our common stock in 2015 and 2016: Closing Date Common Stock Offerings Shares Issued 1 Price Per Share Net Proceeds 2 (amounts in millions, except per share amounts) 5/4/15 Public Offering 4.60 $ 18.50 3 $ 82 10/19/15 Public Offering 5.75 $ 18.00 3 $ 99 6/21/16 Public Offering 4.60 $ 19.78 4 $ 91 5/9/16 to 6/30/16 ATM 0.065 $ 20.31 5 $ 1 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 and other offering costs. 3 Represents the public offering price per share. 4 Represents the price per share at which the underwriters in our public offerings purchased shares from our company. 5 Represents the average price per share at which investors in our ATM offerings purchased shares from our company. |
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 Shares of Common Stock Weighted Average Share Price Value (in millions) Balance — December 31, 2014 964,820 $ 13.41 $ 12.9 Granted 586,648 17.29 10.2 Vested (285,289 ) 13.61 (3.9 ) Forfeited (18,110 ) 15.54 (0.3 ) Balance — December 31, 2015 1,248,069 $ 15.16 $ 18.9 Granted 652,503 18.58 12.2 Vested (566,174 ) 13.74 (7.8 ) Forfeited (4,372 ) 17.47 (0.1 ) Ending Balance — June 30, 2016 1,330,026 $ 17.44 $ 23.2 |
Earnings per Share of Common 28
Earnings per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, Six Months Ended June 30, Numerator: 2016 2015 2016 2015 (in millions, except share and per share data) Net income attributable to controlling shareholders and participating securities $ 3.8 $ 1.5 $ 6.9 $ 3.6 Less: Dividends paid on participating securities (0.4 ) (0.3 ) (0.9 ) (0.7 ) Undistributed earnings attributable to participating securities — — — — Net income attributable to controlling shareholders $ 3.4 $ 1.2 $ 6.0 $ 2.9 Denominator: Weighted-average number of common shares — basic 37,737,026 29,479,023 37,376,618 27,941,095 Weighted-average number of common shares — diluted 37,737,026 29,479,023 37,376,618 27,941,095 Basic earnings per common share $ 0.09 $ 0.04 $ 0.16 $ 0.10 Diluted earnings per common share $ 0.09 $ 0.04 $ 0.16 $ 0.10 Other Information: Weighted-average number of OP units 284,992 284,992 284,992 304,940 Unvested restricted common stock outstanding 1,330,026 1,277,010 |
Equity Method Investments in 29
Equity Method Investments in Affiliate (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Strong Upwind Holdings LLC [Member] | |
Schedule of Investments in Equity Method Affiliate | The following is a summary of the consolidated financial position and results of operations of the significant holding companies, accounted for using the equity method: As of March 31, 2016 As of December 31, 2015 (dollars in millions, unaudited) Current Assets $ 56 $ 61 Total Assets $ 1,379 $ 1,409 Current Liabilities $ 15 $ 14 Total Liabilities $ 59 $ 58 Members’ Equity $ 1,320 $ 1,351 For the three months ended March 31, For the year ended December 31, 2016 2015 2015 2014 (dollars in millions, unaudited) (dollars in millions, unaudited) Revenue $ 39 $ 40 $ 149 $ 154 Income from Continuing Operations $ 5 $ 14 $ 33 $ 44 Net Income $ 5 $ 14 $ 33 $ 44 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
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 investments | $ 0 | $ 0 | |||
Real estate investment description | To qualify as a REIT, we must meet on an ongoing basis 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 2012 through 2015 are open. | ||||
Uncertain tax positions | 0 | $ 0 | $ 0 | ||
Accrued interest and penalties | $ 0 | 0 | $ 0 | ||
Interest and penalties recognized during the period | $ 0 | $ 0 | |||
Number of segment reported | Segment | 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. | ||||
Earliest Tax Year [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Open tax year | 2,012 | ||||
Latest Tax Year [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Open tax year | 2,015 | ||||
Minimum [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Percentage of taxable income distributed to stockholders | 90.00% |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value and Carrying Value of Financial Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value [Member] | Level 3 [Member] | Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 246 | $ 247 |
Fair Value [Member] | Level 3 [Member] | Nonrecourse Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 668 | 690 |
Fair Value [Member] | Level 3 [Member] | Financing Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 875 | 806 |
Fair Value [Member] | Level 3 [Member] | Financing Receivables Held-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 42 | 61 |
Fair Value [Member] | Level 3 [Member] | Investments Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 48 | 29 |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 7 | 1 |
Carrying Value [Member] | Level 3 [Member] | Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 246 | 247 |
Carrying Value [Member] | Level 3 [Member] | Nonrecourse Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 638 | 680 |
Carrying Value [Member] | Level 3 [Member] | Financing Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 804 | 784 |
Carrying Value [Member] | Level 3 [Member] | Financing Receivables Held-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 42 | 60 |
Carrying Value [Member] | Level 3 [Member] | Investments Available-for-Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 48 | 29 |
Carrying Value [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 7 | $ 1 |
Fair Value Measurements - Sum32
Fair Value Measurements - Summary of Fair Value and Carrying Value of Financial Assets and Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Amortized cost | $ 48 | $ 31 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities (Detail) - Investments Available-for-Sale [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | $ 37 | $ 23 | $ 29 | $ 27 |
Purchases of investments available-for-sale | 10 | 15 | 32 | 20 |
Payments on investments available-for-sale | (1) | (1) | (8) | |
Sale of investments available-for-sale | (9) | (14) | (11) | |
Gains on investments available-for-sale recorded in earnings | 1 | 1 | 1 | |
Gains (losses) on investments available-for-sale recorded in OCI | 1 | (1) | 1 | (1) |
Balance, end of period | $ 48 | $ 28 | $ 48 | $ 28 |
Fair Value Measurements - Sch34
Fair Value Measurements - Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities (Parenthetical) (Detail) $ in Millions | Jun. 30, 2016USD ($)Security |
Fair Value Disclosures [Abstract] | |
Investment grade rated debt held for more than 12 months | $ | $ 10 |
Securities in unrealized loss position | Security | 1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Wind Projects [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Senior secured debt investment | $ 13 | |
Recognized gain on sale of debt investment | $ 0.8 | |
Wind Projects [Member] | Large Financial Institution [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Senior secured debt investment | $ 45 | |
Level 3 [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Fair value interest rate spreads, minimum | 1.00% | |
Fair value interest rate spreads, maximum | 5.00% |
Fair Value Measurements - Sch36
Fair Value Measurements - Schedule of Cash Deposits Subject to Credit Risk (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||||
Cash deposits | $ 19,279 | $ 42,645 | $ 21,670 | $ 58,199 |
Restricted cash deposits (included in Other assets) | 25,000 | 36,000 | ||
Total cash deposits | 44,000 | 79,000 | ||
Amount of cash deposits in excess of amounts federally insured | $ 40,000 | $ 75,000 |
Non-Controlling Interest - Addi
Non-Controlling Interest - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016shares | |
Noncontrolling Interest [Line Items] | |
Exchange of operating partnership units to common stock | 0 |
Minimum [Member] | |
Noncontrolling Interest [Line Items] | |
Outstanding OP units held by outside limited partners | 1.00% |
Securitization of Receivables -
Securitization of Receivables - Summary of Certain Transactions with Securitization Trusts (Detail) - Securitization Trust [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Gains on securitizations | $ 10 | $ 4 |
Purchase of receivables securitized | 319 | 96 |
Proceeds from securitizations | 329 | 100 |
Cash received from residual and servicing assets | 2 | 1 |
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 | $ 15 | $ 10 |
Securitization of Receivables39
Securitization of Receivables - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||||
Managed receivables | $ 3,500,000,000 | $ 3,500,000,000 | $ 3,200,000,000 | ||
Securitization credit losses | 0 | $ 0 | 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 | $ 2,100,000,000 | $ 2,100,000,000 | $ 1,800,000,000 | ||
Minimum [Member] | |||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||||
Annual servicing fees | 0.05% | ||||
Discount rates to determine fair market value of underlying assets | 4.00% | ||||
Maximum [Member] | |||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||||
Annual servicing fees | 0.20% | ||||
Discount rates to determine fair market value of underlying assets | 8.00% |
Our Portfolio - Additional Info
Our Portfolio - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)MW | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||||||
Financing receivables, investments, real estate and equity method investments | $ 1,391,000,000 | $ 1,391,000,000 | $ 1,391,000,000 | |||
Deferred funding obligations | 78,127,000 | 78,127,000 | 78,127,000 | $ 108,499,000 | ||
Investment securities pledged as collateral | $ 42,000,000 | 42,000,000 | 42,000,000 | |||
Total megawatts power acquired from third party | MW | 43 | |||||
Payments to acquire projects | $ 33,000,000 | |||||
Investment amount | $ 42,000,000 | 42,000,000 | 42,000,000 | |||
Non interest bearing period | 2 years | |||||
Financing receivables on non accrual status | $ 0 | 0 | 0 | $ 0 | ||
Loan modifications that qualify as trouble debt restructurings | 0 | $ 0 | 0 | $ 0 | ||
Provision for credit losses | $ 0 | $ 0 | $ 0 | $ 0 | ||
Minimum [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Long-term triple net leases expiration dates range | 2,033 | |||||
Long-term triple net leases extended expiration dates range | 2,047 | |||||
Maximum [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Long-term triple net leases expiration dates range | 2,051 | |||||
Long-term triple net leases extended expiration dates range | 2,080 |
Our Portfolio - Analysis of Por
Our Portfolio - Analysis of Portfolio by Type of Obligor and Credit Quality (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables | $ 804,000 | |
Financing receivables held-for-sale | 42,285 | $ 60,376 |
Investments | 47,662 | 29,017 |
Real estate | 162,000 | |
Equity method investments | 334,565 | $ 318,769 |
Total | 1,391,000 | |
Average Remaining Balance | 12,000 | |
Commercial Investment Grade [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables | 415,000 | |
Investments | 15,000 | |
Real estate | 162,000 | |
Total | 592,000 | |
Average Remaining Balance | 9,000 | |
Commercial Non-Investment Grade [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables | 17,000 | |
Total | 17,000 | |
Average Remaining Balance | $ 17,000 | |
Credit Concentration Risk [Member] | Commercial Investment Grade [Member] | Debt and Real Estate Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Debt and Real Estate Portfolio | 56.00% | |
Credit Concentration Risk [Member] | Commercial Non-Investment Grade [Member] | Debt and Real Estate Portfolio [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 | $ 372,000 | |
Financing receivables held-for-sale | 42,000 | |
Investments | 33,000 | |
Total | 447,000 | |
Average Remaining Balance | $ 12,000 | |
Government [Member] | Credit Concentration Risk [Member] | Debt and Real Estate Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Debt and Real Estate Portfolio | 42.00% | |
Subtotal, Debt and Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables | $ 804,000 | |
Financing receivables held-for-sale | 42,000 | |
Investments | 48,000 | |
Real estate | 162,000 | |
Total | 1,056,000 | |
Average Remaining Balance | $ 10,000 | |
Subtotal, Debt and Real Estate [Member] | Credit Concentration Risk [Member] | Debt and Real Estate Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Debt and Real Estate Portfolio | 100.00% | |
Equity Method Investments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equity method investments | $ 335,000 | |
Total | 335,000 | |
Average Remaining Balance | $ 21,000 |
Our Portfolio - Analysis of P42
Our Portfolio - Analysis of Portfolio by Type of Obligor and Credit Quality (Parenthetical) (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)Transactions | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of transactions | Transactions | 84 |
Financial receivable outstanding, Average Remaining Balance | $ 12 |
Total aggregate remaining balance | 30 |
Investment Grade By Independent Rating Agency [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Total financing receivable | 10 |
U.S. Federal Government [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Total financing receivable | 268 |
State, Local, Institutions [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Total financing receivable | 179 |
Maximum [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Financial receivable outstanding, Average Remaining Balance | 1 |
Commercial Investment Grade [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Financial receivable outstanding, Average Remaining Balance | 9 |
Commercial Investment Grade [Member] | Residential Solar Loan [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Total financing receivable | $ 177 |
Our Portfolio - Components of F
Our Portfolio - Components of Financing Receivables (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing receivables | ||
Unearned interest income | $ (254,000) | $ (238,000) |
Allowance for credit losses | 0 | 0 |
Unearned fee income, net of initial direct costs | (3,000) | (3,000) |
Financing receivables | 804,005 | 783,967 |
Commercial Portfolio Segment [Member] | ||
Financing receivables | ||
Financing or minimum lease payments | $ 1,061,000 | $ 1,025,000 |
Our Portfolio - Components of44
Our Portfolio - Components of Financing Receivables (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Financing receivables held-for-sale | $ 42 | $ 60 |
Our Portfolio - Summary of Anti
Our Portfolio - Summary of Anticipated Maturity Dates of Financing Receivables and Investments and Weighted Average Yield (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Receivables [Abstract] | |
Financing Receivables, Maturities total | $ 804 |
Financing Receivables, Maturities in less than 1 year | 1 |
Financing Receivables, Maturities in 1-5 years | 83 |
Financing Receivables, Maturities in 5-10 years | 39 |
Financing Receivables,Maturities in more than 10 years | $ 681 |
Financing Receivables, weighted average yield total | 5.50% |
Financing Receivables, weighted average yield in less than 1 year | 4.00% |
Financing Receivables, weighted average yield in 1-5 years | 7.00% |
Financing Receivables, weighted average yield in 5-10 years | 4.10% |
Financing Receivables, weighted average yield in more than 10 years | 5.40% |
Investments, Maturities total | $ 48 |
Investments, Maturities in less than 1 year | 0 |
Investments, Maturities in 1-5 years | 0 |
Investments, Maturities in 5-10 years | 1 |
Investments, Maturities in more than 10 years | $ 47 |
Investments, weighted average yield total | 3.80% |
Investments, weighted average yield in less than 1 year | 0.00% |
Investments, weighted average yield in 1-5 years | 0.00% |
Investments, weighted average yield in 5-10 years | 4.70% |
Investments, weighted average yield in more than 10 years | 3.90% |
Our Portfolio - Summary of An46
Our Portfolio - Summary of Anticipated Maturity Dates of Financing Receivables and Investments and Weighted Average Yield (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Financing receivables held-for-sale | $ 42 | $ 60 |
Our Portfolio - Components of R
Our Portfolio - Components of Real Estate Portfolio (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Real Estate Properties [Line Items] | ||
Accumulated amortization of real estate intangibles | $ (3) | $ (1) |
Real Estate | 162 | 156 |
Land [Member] | ||
Real Estate Properties [Line Items] | ||
Real Estate | 132 | 129 |
Real Estate Related Intangibles [Member] | ||
Real Estate Properties [Line Items] | ||
Real Estate | $ 33 | $ 28 |
Our Portfolio - Schedule of Fut
Our Portfolio - Schedule of Future Amortization Expenses Related to Intangible Assets and Future Minimum Rental Income Payments under Land Lease Agreements (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Finite Lived Intangible Assets Future Amortization Expense And Capital Leased Assets [Abstract] | ||
From July 1, 2016 to December 31, 2016 | $ 1,000 | |
2,017 | 1,000 | |
2,018 | 1,000 | |
2,019 | 1,000 | |
2,020 | 1,000 | |
2,021 | 1,000 | |
Thereafter | 24,000 | |
Net intangible assets | 30,720 | $ 26,930 |
From July 1, 2016 to December 31, 2016 | 4,000 | |
2,017 | 10,000 | |
2,018 | 11,000 | |
2,019 | 11,000 | |
2,020 | 10,000 | |
2,021 | 11,000 | |
Thereafter | 292,000 | |
Total | $ 349,000 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | 6 Months Ended | |||
Jun. 30, 2016 | Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||||
Credit facility outstanding | $ 245,572,000 | $ 247,350,000 | ||
Termination of credit facility | Jul. 19, 2019 | |||
Issuance costs | $ 13,000,000 | |||
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 component of the credit facility over the actual amount borrowed under such component. | |||
Default underlying financings | 50.00% | |||
Qualifying Government and Institutional Loans (G&I Facility) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum advances on credit facilities | $ 600,000,000 | 450,000,000 | $ 375,000,000 | |
Qualifying Project Finance Loans (PF Facility) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum advances on credit facilities | $ 900,000,000 | $ 1,050,000,000 | $ 975,000,000 | |
London Interbank Offered Rate | LIBOR plus 2.5% | |||
Floating interest rate | 2.50% | |||
Applicable valuation percentages | 67.00% | |||
London Interbank Offered Rate (LIBOR) [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
London Interbank Offered Rate | ("LIBOR") plus 1.5% | |||
Floating interest rate | 1.50% | |||
Fixed interest rate | 1.50% | |||
London Interbank Offered Rate (LIBOR) [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | 1.5% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Floating interest rate | 1.00% | |||
London Interbank Offered Rate (LIBOR) [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Fixed interest rate | 2.50% | |||
London Interbank Offered Rate (LIBOR) [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | 1.5% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Floating interest rate | 1.00% | |||
Federal Funds Effective Swap Rate [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | 1.5% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Floating interest rate | 0.50% | |||
Federal Funds Effective Swap Rate [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
London Interbank Offered Rate | Federal Funds Rate plus 0.5% | |||
Federal Funds Effective Swap Rate [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | 1.5% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Floating interest rate | 0.50% | |||
Credit Default Option [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
London Interbank Offered Rate | LIBOR plus 2.50% | |||
Floating interest rate | 2.50% | |||
Credit Default Option [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
London Interbank Offered Rate | LIBOR plus 5.00% | |||
Floating interest rate | 5.00% | |||
U.S. Federal Government [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Applicable valuation percentages | 85.00% | |||
Institutional [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Applicable valuation percentages | 80.00% | |||
Senior Secured Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum advances on credit facilities | $ 1,500,000,000 | |||
Credit facility outstanding | $ 500,000,000 |
Credit Facility - Schedule of L
Credit Facility - Schedule of Limit of Borrowing at Any Point in Time and Total Maximum Advances (Detail) - USD ($) | Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Qualifying Government and Institutional Loans (G&I Facility) [Member] | |||
Line of Credit Facility [Line Items] | |||
Limit of Borrowing at any point in time | $ 250,000,000 | $ 150,000,000 | $ 125,000,000 |
Maximum Total Advances | 600,000,000 | 450,000,000 | 375,000,000 |
Qualifying Project Finance Loans (PF Facility) [Member] | |||
Line of Credit Facility [Line Items] | |||
Limit of Borrowing at any point in time | 250,000,000 | 350,000,000 | 325,000,000 |
Maximum Total Advances | $ 900,000,000 | $ 1,050,000,000 | $ 975,000,000 |
Credit Facility - Schedule of A
Credit Facility - Schedule of Additional Detail on Credit Facility (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Outstanding balance | $ 245,572 | $ 247,350 |
Value of collateral pledged to credit facility | $ 503,000 | $ 356,000 |
Weighted average short-term borrowing rate | 2.10% | 2.30% |
Credit Facility - Summary of Re
Credit Facility - Summary of Required Covenant Included in Loan Agreements (Detail) - Covenants Threshold [Member] | Jun. 30, 2016USD ($) |
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 - Schedule of
Nonrecourse Debt - Schedule of Outstanding Asset-Backed Nonrecourse Debt and Bank Loans (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Debt issuance costs | $ (14) | |
Nonrecourse Asset-Backed Debt, Anticipated Balance at Maturity | 0 | |
Value of Assets Pledged, Equity interest | $ 42 | |
Minimum [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 2.26% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2017-12 | |
Maximum [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 7.45% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2032-12 | |
HASI Sustainable Yield Bond 2013-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 2.79% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2019-12 | |
Nonrecourse Asset-Backed Debt, Anticipated Balance at Maturity | $ 57 | |
ABS Loan Agreement [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 5.74% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2021-09 | |
Nonrecourse Asset-Backed Debt, Anticipated Balance at Maturity | $ 17 | |
HASI Sustainable Yield Bond 2015-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 4.28% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2034-10 | |
HASI SYB Loan Agreement 2015-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 4.13% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2021-12 | |
HASI SYB Loan Agreement 2015-2 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 4.63% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2023-12 | |
HASI SYB Loan Agreement 2015-3 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 4.92% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2020-12 | |
Nonrecourse Asset-Backed Debt, Anticipated Balance at Maturity | $ 132 | |
Asset-Backed Nonrecourse Debt Agreement [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Other nonrecourse debt | 91 | $ 101 |
Debt issuance costs | (14) | (16) |
Outstanding Balance | 624 | 664 |
Value of Assets Pledged, Equity interest | $ 88 | 97 |
Description of Assets Pledged | Financing receivables | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI Sustainable Yield Bond 2013-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 81 | 83 |
Value of Assets Pledged, Equity interest | $ 98 | 99 |
Description of Assets Pledged | Financing receivables | |
Asset-Backed Nonrecourse Debt Agreement [Member] | ABS Loan Agreement [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 95 | 102 |
Value of Assets Pledged, Equity interest | $ 104 | 117 |
Description of Assets Pledged | Equity interest in Strong Upwind Holdings I, LLC | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI Sustainable Yield Bond 2015-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 99 | 100 |
Value of Assets Pledged, Equity interest | $ 138 | 139 |
Description of Assets Pledged | Financing receivables, real estate and real estate intangibles | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI SYB Loan Agreement 2015-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 79 | 90 |
Value of Assets Pledged, Equity interest | $ 104 | 117 |
Description of Assets Pledged | Equity interest in Strong Upwind Holdings II and III, LLC, related interest rate swap | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI SYB Loan Agreement 2015-2 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 41 | 42 |
Value of Assets Pledged, Equity interest | $ 70 | 71 |
Description of Assets Pledged | Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI SYB Loan Agreement 2015-3 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 152 | 162 |
Value of Assets Pledged, Equity interest | $ 177 | $ 175 |
Description of Assets Pledged | Residential Solar Financing receivables |
Nonrecourse Debt - Additional I
Nonrecourse Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Nonrecourse Asset-Backed Debt, Aggregate Principal Amount | $ 624,043,000 | $ 663,791,000 |
Ineffectiveness recorded on designated hedges | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Debt Instrument [Line Items] | ||
Interest Expense | 0 | $ 0 |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI Sustainable Yield Bond 2015-1A ("HASI SYB") [Member] | ||
Debt Instrument [Line Items] | ||
Nonrecourse Asset-Backed Debt, Aggregate Principal Amount | $ 101,000,000 | |
Nonrecourse Asset-Backed Debt, Interest Rate | 4.28% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2034-10 | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI Sustainable Yield Bond 2015-1B [Member] | ||
Debt Instrument [Line Items] | ||
Nonrecourse Asset-Backed Debt, Aggregate Principal Amount | $ 18,000,000 | |
Nonrecourse Asset-Backed Debt, Interest Rate | 5.00% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2034-10 |
Nonrecourse Debt - Schedule o55
Nonrecourse Debt - Schedule of Interest Rate Swaps that Are Designated as Cash Flow Hedges (Detail) - Cash Flow Hedging [Member] - Interest Rate Swap [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | ||
Notional Value | $ 257,000,000 | $ 148,000,000 |
Fair Value | $ (6,600,000) | (600,000) |
HASI SYB Loan Agreement 2015-1 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Rate | 1.55% | |
Notional Value | $ 72,000,000 | 81,000,000 |
Fair Value | $ (1,200,000) | (300,000) |
HASI SYB Loan Agreement 2015-1 [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2015-12 | |
HASI SYB Loan Agreement 2015-1 [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2021-09 | |
HASI SYB Loan Agreement 2015-1 [Member] | Base Rate [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Base Rate | 3 month Libor | |
HASI SYB Loan Agreement 2015-2 A [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Rate | 1.52% | |
Notional Value | $ 37,000,000 | 38,000,000 |
Fair Value | $ (600,000) | (100,000) |
HASI SYB Loan Agreement 2015-2 A [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2015-12 | |
HASI SYB Loan Agreement 2015-2 A [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2018-12 | |
HASI SYB Loan Agreement 2015-2 A [Member] | Base Rate [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Base Rate | 3 month Libor | |
HASI SYB Loan Agreement 2015-2 B [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Rate | 2.55% | |
Notional Value | $ 29,000,000 | 29,000,000 |
Fair Value | $ (1,200,000) | $ (200,000) |
HASI SYB Loan Agreement 2015-2 B [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2018-12 | |
HASI SYB Loan Agreement 2015-2 B [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2024-12 | |
HASI SYB Loan Agreement 2015-2 B [Member] | Base Rate [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Base Rate | 3 month Libor | |
HASI SYB Loan Agreement 2015-3 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Rate | 2.34% | |
Notional Value | $ 119,000,000 | |
Fair Value | $ (3,600,000) | |
HASI SYB Loan Agreement 2015-3 [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2020-11 | |
HASI SYB Loan Agreement 2015-3 [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2028-08 | |
HASI SYB Loan Agreement 2015-3 [Member] | Base Rate [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Base Rate | 1 month Libor |
Nonrecourse Debt - Schedule o56
Nonrecourse Debt - Schedule of Minimum Maturities of Nonrecourse Debt (Detail) $ in Millions | Jun. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
Maturity of Nonrecourse debt, 2016 | $ 48 |
Maturity of Nonrecourse debt, 2017 | 41 |
Maturity of Nonrecourse debt, 2018 | 37 |
Maturity of Nonrecourse debt, 2019 | 98 |
Maturity of Nonrecourse debt, 2020 | 155 |
Maturity of Nonrecourse debt, Thereafter | 259 |
Total minimum maturities | 638 |
Deferred financing costs, net | (14) |
Total nonrecourse debt | $ 624 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Holiday [Line Items] | ||||
Income tax (expense) | $ (36,000) | $ (76,000) | $ (82,000) | $ (53,000) |
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% | |||
Maximum [Member] | ||||
Income Tax Holiday [Line Items] | ||||
Income tax (expense) | $ (100,000) | $ (100,000) | $ (100,000) | $ (100,000) |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared by Board of Directors (Detail) - $ / shares | Jul. 14, 2016 | Apr. 07, 2016 | Jan. 07, 2016 | Oct. 08, 2015 | Jul. 09, 2015 | Apr. 09, 2015 | Jun. 30, 2016 |
Subsequent Event [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Amount per share | $ 0.30 | ||||||
3/30/15 Record Date [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Announced Date | Mar. 17, 2015 | ||||||
Record Date | Mar. 30, 2015 | ||||||
Pay Date | Apr. 9, 2015 | ||||||
Amount per share | $ 0.26 | ||||||
6/30/15 Record Date [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Announced Date | Jun. 16, 2015 | ||||||
Record Date | Jun. 30, 2015 | ||||||
Pay Date | Jul. 9, 2015 | ||||||
Amount per share | $ 0.26 | ||||||
09/30/15 Record Date [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Announced Date | Sep. 16, 2015 | ||||||
Record Date | Sep. 30, 2015 | ||||||
Pay Date | Oct. 8, 2015 | ||||||
Amount per share | $ 0.26 | ||||||
12/30/15 Record Date [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Announced Date | Dec. 15, 2015 | ||||||
Record Date | Dec. 30, 2015 | ||||||
Pay Date | Jan. 7, 2016 | ||||||
Amount per share | $ 0.30 | ||||||
3/30/2016 Record Date [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Announced Date | Mar. 15, 2016 | ||||||
Record Date | Mar. 30, 2016 | ||||||
Pay Date | Apr. 7, 2016 | ||||||
Amount per share | $ 0.30 | ||||||
07/06/16 Record Date [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Announced Date | Jun. 7, 2016 | ||||||
Record Date | Jul. 6, 2016 | ||||||
Pay Date | Jul. 14, 2016 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount of potential offer and sale of securities | $ 13,914,000 | $ 10,794,000 | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Amount of potential offer and sale of securities | $ 500,000,000 | |||
Restricted Common Stock [Member] | 2013 Plan [Member] | Employees and Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares awarded | 361,503 | |||
Restricted common shares vesting years | Vest in 2016 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 | 291,000 | |||
Restricted Incentive [Member] | 2013 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation expense | $ 3,000,000 | $ 3,000,000 | $ 5,000,000 | $ 5,000,000 |
Unrecognized compensation expense | 15,000,000 | $ 15,000,000 | ||
Weighted-average term in which unrecognized compensation expense is expected to be recognized | 2 years | |||
Assumed forfeiture rate for calculation of equity-based compensation expense | 5.00% | |||
Restricted Incentive [Member] | 2013 Plan [Member] | Maximum [Member] | Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Adjustment to retained earnings for the equity based compensation expense | $ 1,000,000 | $ 1,000,000 |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Public Offerings and ATM Offerings (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Net proceeds from follow-on from public offering | $ 91,516 | $ 81,540 |
5/4/2015 Closing Date [Member] | Public Offering [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Public offerings and ATM offerings of common stock, Closing Date | May 4, 2015 | |
Public offerings of common stock, Shares Issued | 4,600 | |
Public offerings of common stock, Price Per Share | $ 18.50 | |
Net proceeds from follow-on from public offering | $ 82,000 | |
10/19/2015 Closing Date [Member] | Public Offering [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Public offerings and ATM offerings of common stock, Closing Date | Oct. 19, 2015 | |
Public offerings of common stock, Shares Issued | 5,750 | |
Public offerings of common stock, Price Per Share | $ 18 | |
Net proceeds from follow-on from public offering | $ 99,000 | |
6/21/2016 Closing Date [Member] | Public Offering [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Public offerings and ATM offerings of common stock, Closing Date | Jun. 21, 2016 | |
Public offerings of common stock, Shares Issued | 4,600 | |
Public offerings of common stock, Price Per Share | $ 19.78 | |
Net proceeds from follow-on from public offering | $ 91,000 | |
5/09/2016 to 6/30/2016 Closing Date [Member] | At the Market Offering [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Public offerings of common stock, Shares Issued | 65 | |
Public offerings of common stock, Price Per Share | $ 20.31 | |
Net proceeds from follow-on from public offering | $ 1,000 | |
5/09/2016 to 6/30/2016 Closing Date [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Public offerings and ATM offerings of common stock, Closing Date | May 9, 2016 | |
5/09/2016 to 6/30/2016 Closing Date [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Public offerings and ATM offerings of common stock, Closing Date | Jun. 30, 2016 |
Equity - Summary of Unvested Sh
Equity - Summary of Unvested Shares of Restricted Common Stock (Detail) - Restricted Incentive [Member] - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, Restricted Shares of Common Stock | 1,248,069 | 964,820 |
Granted, Restricted Shares of Common Stock | 652,503 | 586,648 |
Vested, Restricted Shares of Common Stock | (566,174) | (285,289) |
Forfeited, Restricted Shares of Common Stock | (4,372) | (18,110) |
Ending Balance, Restricted Shares of Common Stock | 1,330,026 | 1,248,069 |
Beginning Balance, Weighted Average Share Price | $ 15.16 | $ 13.41 |
Granted, Weighted Average Share Price | 18.58 | 17.29 |
Vested, Weighted Average Share Price | 13.74 | 13.61 |
Forfeited, Weighted Average Share Price | 17.47 | 15.54 |
Ending Balance, Weighted Average Share Price | $ 17.44 | $ 15.16 |
Beginning Balance, Fair Value of Restricted Shares of Common Stock | $ 18.9 | $ 12.9 |
Granted, Fair Value of Restricted Shares of Common Stock | 12.2 | 10.2 |
Vested, Fair Value of Restricted Shares of Common Stock | (7.8) | (3.9) |
Forfeited, Fair Value of Restricted Shares of Common Stock | (0.1) | (0.3) |
Ending Balance, Fair Value of Restricted Shares of Common Stock | $ 23.2 | $ 18.9 |
Earnings per Share of Common 62
Earnings per Share of Common Stock - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Net income attributable to controlling shareholders and participating securities | $ 3,747 | $ 1,470 | $ 6,916 | $ 3,592 |
Less: Dividends paid on participating securities | (400) | (300) | (900) | (700) |
Undistributed earnings attributable to participating securities | 0 | 0 | 0 | 0 |
Net income attributable to controlling shareholders | $ 3,400 | $ 1,200 | $ 6,000 | $ 2,900 |
Denominator: | ||||
Weighted-average number of common shares - basic | 37,737,026 | 29,479,023 | 37,376,618 | 27,941,095 |
Weighted-average number of common shares - diluted | 37,737,026 | 29,479,023 | 37,376,618 | 27,941,095 |
Basic earnings per common share | $ 0.09 | $ 0.04 | $ 0.16 | $ 0.10 |
Diluted earnings per common share | $ 0.09 | $ 0.04 | $ 0.16 | $ 0.10 |
Other Information: | ||||
Weighted-average number of OP units | 284,992 | 284,992 | 284,992 | 304,940 |
Unvested restricted common stock outstanding | 1,330,026 | 1,277,010 |
Equity Method Investments in 63
Equity Method Investments in Affiliate - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Income (loss) from equity method investments in affiliates | $ 1,076 | $ (295) | $ 1,346 | $ (348) |
Strong Upwind Holdings LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (loss) from equity method investments in affiliates | $ 1,100 | $ (300) | $ 1,300 | $ (300) |
Equity Method Investments in 64
Equity Method Investments in Affiliate - Summary of Consolidated Financial Position and Results of Operations of Significant Holding Companies, Accounted for Using Equity Method (Detail) - Strong Upwind Holdings LLC [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Results Related To Equity Accounted Investees [Line Items] | ||||
Current Assets | $ 56 | $ 61 | ||
Total Assets | 1,379 | 1,409 | ||
Current Liabilities | 15 | 14 | ||
Total Liabilities | 59 | 58 | ||
Members' Equity | 1,320 | 1,351 | ||
Revenue | 39 | $ 40 | 149 | $ 154 |
Income from Continuing Operations | 5 | 14 | 33 | 44 |
Net Income | $ 5 | $ 14 | $ 33 | $ 44 |