Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,072,035 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Financing receivables | $ 1,140,441 | $ 1,042,237 |
Investments | 126,329 | 58,058 |
Real estate | 298,145 | 172,257 |
Equity method investments | 550,986 | 363,297 |
Cash and cash equivalents | 41,696 | 29,428 |
Other assets | 130,934 | 80,610 |
Total Assets | 2,288,531 | 1,745,887 |
Liabilities: | ||
Accounts payable, accrued expenses and other | 37,559 | 25,219 |
Deferred funding obligations | 273,447 | 170,892 |
Credit facilities | 392,482 | 283,346 |
Nonrecourse debt (secured by assets of $1,269 million and $864 million, respectively) | 921,780 | 692,091 |
Total Liabilities | 1,625,268 | 1,171,548 |
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, 51,655,406 and 46,493,155 shares issued and outstanding, respectively | 517 | 465 |
Additional paid in capital | 766,894 | 663,744 |
Accumulated deficit | (107,263) | (92,213) |
Accumulated other comprehensive income (loss) | (575) | (1,388) |
Non-controlling interest | 3,690 | 3,731 |
Total Stockholders' Equity | 663,263 | 574,339 |
Total Liabilities and Stockholders' Equity | $ 2,288,531 | $ 1,745,887 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Nonrecourse notes, secured by assets | $ 1,269 | $ 864 |
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 | 51,655,406 | 46,493,155 |
Common stock, shares outstanding | 51,655,406 | 46,493,155 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Interest income, financing receivables | $ 13,637 | $ 12,647 | $ 27,755 | $ 24,135 |
Interest income, investments | 1,358 | 434 | 2,301 | 809 |
Rental income | 4,863 | 2,975 | 8,972 | 5,791 |
Gain on sale of receivables and investments | 7,726 | 5,438 | 11,675 | 10,940 |
Fee income | 691 | 351 | 1,372 | 653 |
Total Revenue | 28,275 | 21,845 | 52,075 | 42,328 |
Expenses: | ||||
Interest expense | 15,361 | 11,034 | 29,144 | 22,310 |
Compensation and benefits | 5,659 | 5,754 | 10,385 | 10,172 |
General and administrative | 3,139 | 2,322 | 5,327 | 4,138 |
Total Expenses | 24,159 | 19,110 | 44,856 | 36,620 |
Income before equity method investments | 4,116 | 2,735 | 7,219 | 5,708 |
Income (loss) from equity method investments | 8,377 | 1,076 | 12,548 | 1,346 |
Income before income taxes | 12,493 | 3,811 | 19,767 | 7,054 |
Income tax (expense) benefit | (83) | (36) | (114) | (82) |
Net income (loss) | 12,410 | 3,775 | 19,653 | 6,972 |
Net income (loss) attributable to non-controlling interest holders | 70 | 28 | 114 | 56 |
Net income (loss) attributable to controlling stockholders | $ 12,340 | $ 3,747 | $ 19,539 | $ 6,916 |
Basic earnings per common share | $ 0.23 | $ 0.09 | $ 0.38 | $ 0.16 |
Diluted earnings per common share | $ 0.23 | $ 0.09 | $ 0.38 | $ 0.16 |
Weighted average common shares outstanding-basic | 50,573,996 | 37,737,026 | 49,044,051 | 37,376,618 |
Weighted average common shares outstanding-diluted | 50,573,996 | 37,737,026 | 49,044,051 | 37,376,618 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 12,410 | $ 3,775 | $ 19,653 | $ 6,972 |
Unrealized gain (loss) on interest rate swaps, net of tax benefit (provision) of $0.0 million in each of the three and six month periods ended 2017 and 2016 | (2,792) | (2,434) | (1,804) | (5,916) |
Unrealized gain (loss) on available-for-sale securities, net of tax benefit (provision) of $0.0 million and $0.0 million in each of the three and six months periods ended 2017 and 2016, respectively | 2,149 | 691 | 2,621 | 962 |
Comprehensive income (loss) | 11,767 | 2,032 | 20,470 | 2,018 |
Less: Comprehensive income (loss) attributable to non-controlling interest holders | 67 | 19 | 118 | 19 |
Comprehensive income (loss) attributable to controlling stockholders | $ 11,700 | $ 2,013 | $ 20,352 | $ 1,999 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on interest rate swaps, tax benefit (provision) | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on available-for-sale securities, benefit (provision) | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net income (loss) | $ 19,653 | $ 6,972 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,058 | 3,573 |
Equity-based compensation | 5,553 | 4,920 |
Equity method investments | (6,938) | 412 |
Non-cash gain on securitization | (11,061) | (7,095) |
Gain on sale of financing receivables and investments | (1,655) | (1,366) |
Changes in financing receivables held-for-sale | 5,382 | |
Changes in accounts payable and accrued expenses | 2,168 | 2,718 |
Other | (129) | (5,439) |
Net cash provided by operating activities | 13,649 | 10,077 |
Cash flows from investing activities | ||
Purchases of financing receivables | (80,921) | (106,874) |
Principal collections from financing receivables | 55,513 | 57,469 |
Proceeds from sales of financing receivables | 51,389 | 29,032 |
Purchases of investments | (10,991) | (23,333) |
Principal collections from investments | 1,225 | 857 |
Proceeds from sales of investments | 13,914 | |
Purchases of real estate | (118,963) | (7,345) |
Equity method investments | (214,537) | (10,706) |
Equity method distributions received | 33,772 | 27,903 |
Other | (5,285) | (1,550) |
Net cash used in investing activities | (288,798) | (20,633) |
Cash flows from financing activities | ||
Proceeds from credit facilities | 277,612 | 117,400 |
Principal payments on credit facilities | (168,801) | (119,146) |
Proceeds from nonrecourse debt | 258,189 | |
Principal payments on nonrecourse debt | (27,704) | (41,429) |
Payments on deferred funding obligations | (73,927) | (43,414) |
Net proceeds of common stock issuances | 98,399 | 91,516 |
Payments of dividends and distributions | (33,020) | (23,321) |
Other | (9,167) | (5,912) |
Net cash provided by (used in) financing activities | 321,581 | (24,306) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 46,432 | (34,862) |
Cash, cash equivalents, and restricted cash at beginning of period | 59,144 | 79,216 |
Cash, cash equivalents, and restricted cash at end of period | 105,576 | 44,354 |
Interest paid | 21,088 | 19,396 |
Non-cash changes in deferred funding obligations | 175,970 | 13,041 |
Non-cash changes in financing receivables and investments | (175,970) | (26,456) |
Non-cash changes in residual assets | $ (11,061) | $ (7,095) |
The Company
The Company | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | 1. The Company Hannon Armstrong Sustainable Infrastructure Capital, Inc. (“the Company”) makes debt and equity investments in sustainable infrastructure, including energy efficiency and renewable energy. 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, • Debt securities, • Real estate, such as land or other physical assets and related intangible assets used in sustainable infrastructure projects, and • Equity investments in unconsolidated entities, such as projects where we hold a non-controlling equity interest. We finance our business through cash on hand, borrowings under credit facilities and debt transactions, and various asset-backed securitization transactions and equity issuances. We also generate fee income through securitizations and syndications, 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, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation 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. These financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2016, as filed with the SEC. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been included. The Company’s results of operations for the quarterly period ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year or any other future period. Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Certain amounts in the prior years have been reclassified to conform to the current year presentation. These reclassifications include changes to the presentation of the Consolidated Statements of Cash Flows related to the adoption of Accounting Standards Update (“ASU”) No. 2016-18 Statement of Cash Flows (Topic 230). The 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. 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. At inception of the arrangement, 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 and are carried at the lower of amortized cost or fair value on our balance sheet. The net purchases and proceeds from these sales of our held-for-sale financing receivables are recorded as an operating activity in our statement of cash flows based on our intent at the time of purchase. We may secure debt with the proceeds from our financing receivables. We evaluate our financing receivables for potential delinquency or impairment on at least a quarterly basis and more frequently when economic or other conditions warrant such an evaluation. When a financing receivable becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service all of its debt or other obligations, we will generally consider the financing receivable delinquent or impaired and place the financing receivable on non-accrual status and cease recognizing income from that financing receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a financing receivable’s status significantly improves regarding the debtor’s ability to service the debt or other obligations, we will remove it from non-accrual status. A financing receivable is also considered impaired as of the date when, based on current information and events, it is determined that it is probable that we will be unable to collect all amounts due in accordance with the original contracted terms. Many of our financing receivables are secured by 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 ratios and any cash reserves, the ability of expected cash from operations to cover the cash flow requirements currently and into the future, key terms of the transaction, the ability of the borrower to refinance the transaction, other credit support from the sponsor or guarantor and the project’s collateral value. In addition, we consider the overall economic environment, the sustainable infrastructure sector, the effect of local, industry, and broader economic factors, the impact of any variation in weather and the historical and anticipated trends in interest rates, defaults and loss severities for similar transactions. If a financing receivable is considered to be impaired, we will determine if an allowance should be recorded. We will record an allowance if the present value of expected future cash flows discounted at the financing receivable’s contractual effective rate is less than its carrying value. This estimate of cash flows may include 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, Investments—Debt and Equity Securities 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 the 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 is recorded in AOCI. 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 consists of land or other real estate and its related lease intangibles, net of any amortization. Our real estate is generally leased to tenants on a triple 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. Expenses related to leases where we are the lessor, if any, are charged to operations as incurred. We record our real estate purchases as asset acquisitions that are recorded at cost, including acquisition and closing costs, unless they meet the definition of a business combination 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 appraisals by a qualified appraiser. In allocating the fair value of the identified intangibles of an acquired property, above-market and below-market in-place lease values are recorded 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, both of which are amortized over the term used to value the intangible. 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 income lost if the leases were not in place. The amortization of this intangible occurs over the initial term unless management believes that it is likely that the tenant would exercise the renewal option. If a lease were to be terminated, all unamortized amounts relating to that lease would be written off. 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 (“VIEs”), as defined in ASC 810, Consolidation We account for transfers of financing receivables to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing 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 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 consolidated balance sheets. Refer to Note 3 for disclosure of the balances of Restricted cash included in Other Assets. Consolidation and Equity Method Investments We account for our investment in entities that are considered voting or variable interest entities under ASC 810, Consolidation 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. We have made equity investments in various renewable energy projects. We share in the cash flows, income, and tax attributes according to a negotiated schedule (which typically does not correspond with our ownership percentages). Our renewable energy projects are typically owned in partnerships structures (using limited liability companies, or LLCs taxed as partnerships) where we receive a stated preferred return consisting of a priority distribution of all or a portion of the project’s cash flows, and in some cases, tax attributes. We have typically partnered with either the operator of the project or other tax equity investors. Once our 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 any other institutional investors, will have an on-going residual interest. These equity investments in renewable energy projects are accounted for under the equity method of accounting. Certain of our equity method investments were determined to be VIEs in which we are not the primary beneficiary. 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 these equity method investments is determined based on amounts we invested, adjusted for the equity in earnings or losses of the investee allocated based on the limited liability company agreement, less distributions received. Because certain of the limited liability company 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, which is adjusted for distributions received and contributions made. 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”). Intercompany gains and losses are eliminated for an amount equal to our interest and are reflected in the share in income or loss from equity method investments 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 have also made an investment in a joint venture which holds land under solar projects. This investment entitles us to receive an equal percentage of both cash distributions and profit and loss under the terms of the LLC agreement. The investment, which we have determined to be a voting interest entity, is accounted for under the equity method of accounting, with our portion of rental income, adjusted for any fair value to book value basis difference, being recognized in Income (loss) from equity method investments in the period in which the income is earned. We evaluate the realization of our investments accounted for using the equity method if circumstances indicate that our investment is an OTTI. An OTTI impairment occurs when the estimated fair value of an investment is below the carrying value and the difference is determined to not be recoverable. This evaluation requires significant judgment regarding, but not limited to, the severity and duration of the impairment; the ability and intent to hold the securities until recovery; financial condition, liquidity, and near-term prospects of the issuer; specific events; and other factors. 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 reduce the impact of changes in interest rates on our results of operations and cash flows. 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 required in order to qualify for hedge accounting. Instruments that meet the required hedging criteria are formally designated as hedges at the inception of the derivative contract. Derivatives are recorded 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 AOCI, net of associated deferred income tax effects and are recognized in earnings at the same time as the hedged item, including as a result of the accrual of interest. Changes in fair value of the ineffective portions of these hedges are recognized in general and administrative expenses. For any derivative instruments not designated as hedging instruments, changes in fair value would be recognized in earnings in the period that the change occurs. We assess, both at the inception of the hedge and on an ongoing basis, whether the derivatives designated as cash flow hedges are highly effective in offsetting the changes in cash flows of the 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 stockholders. 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 under ASC 740, Income Taxes We apply ASC 740, Income Taxes 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 make equity or equity based awards 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 grants made under the 2013 Plan in accordance with ASC 718, Compensation—Stock Compensation Earnings Per Share We compute earnings per share of common stock in accordance with ASC 260, Earnings Per Share Segment Reporting We provide and arrange debt and equity investments 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 ASU No. 2014-09, Revenue from Contracts with Customers Leases In February 2016, the FASB issued ASU No. 2016-02, Leases Revenue from Contracts with Customers Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments Equity Method Investments In March 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting Other accounting standards updates effective after June 30, 2017, are not expected to have a material effect on our consolidated financial statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level hierarchy for classifying financial instruments. The levels of inputs used to determine the fair value of our financial assets and liabilities carried on the balance sheet at fair value and for those which only disclosure of fair value is required are characterized in accordance with the fair value hierarchy established by ASC 820, Fair Value Measurements 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, if any, are carried at the lower of cost or fair value. As of June 30, 2017 Fair Value Carrying Level (dollars in millions) Assets Financing receivables $ 1,129 $ 1,140 Level 3 Investments (1) 126 126 Level 3 Securitization residual assets 28 28 Level 3 Liabilities Credit facilities $ 392 $ 392 Level 3 Nonrecourse notes (2) 951 943 Level 3 Derivative liabilities 1 1 Level 2 (1) The amortized cost of our investments as of June 30, 2017 was $127 million. (2) Fair value and carrying value of nonrecourse notes excludes unamortized debt issuance costs. As of December 31, 2016 Fair Value Carrying Level (dollars in millions) Assets Financing receivables $ 1,017 $ 1,042 Level 3 Investments (1) 58 58 Level 3 Securitization residual assets 19 19 Level 3 Derivative assets 1 1 Level 2 Liabilities Credit facilities $ 283 $ 283 Level 3 Nonrecourse notes (2) 718 709 Level 3 (1) The amortized cost of our investments as of December 31, 2016 was $61 million. (2) Fair value and carrying value of nonrecourse notes 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 For the six months 2017 2016 2017 2016 (dollars in millions) Balance, beginning of period $ 125 $ 37 $ 58 $ 29 Purchases of investments 1 10 67 32 Payments on investments (1 ) — (1 ) (1 ) Sale of investments — — — (14 ) Gains on investments recorded in earnings — — — 1 Gains (losses) on investments recorded in OCI (1) 1 1 2 1 Balance, end of period $ 126 $ 48 $ 126 $ 48 (1) As of June 30, 2017 and December 31, 2016, approximately $10 million of investment grade rated debt was held for more than 12 months in an unrealized loss position of approximately $1 million due to interest rate movements. We have the intent and the ability to hold this investment until a recovery of amortized cost. As of June 30, 2017 and December 31, 2016, we held no other securities in an unrealized loss position for over 12 months. For investments held at fair value, we used a range of interest rate spreads of approximately 1% to 4% based upon comparable transactions as of June 30, 2017 and December 31, 2016. 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, 2017 and December 31, 2016, 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. The fair values of the derivative financial instruments are included in the other assets or accounts payable, accrued expenses and other line items in the 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, December 31, (dollars in millions) Cash deposits $ 42 $ 29 Restricted cash deposits (included in Other assets) 64 30 Total cash deposits $ 106 $ 59 Amount of cash deposits in excess of amounts federally insured $ 103 $ 57 |
Non-Controlling Interest
Non-Controlling Interest | 6 Months Ended |
Jun. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interest | 4. Non-Controlling Interest 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 consolidated balance sheets. 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 or redeemed for cash during the six months ended June 30, 2017 or the six months ended June 30, 2016. The non-controlling interest holders are generally allocated their pro rata share of income, other comprehensive income and equity transactions. |
Securitization of Receivables
Securitization of Receivables | 6 Months Ended |
Jun. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Securitization of Receivables | 5. Securitization of Receivables The following summarizes certain transactions with our securitization trusts: As of and for the six months 2017 2016 (dollars in millions) Gains on securitizations $ 12 $ 10 Purchase of receivables securitized $ 195 $ 319 Proceeds from securitizations $ 207 $ 329 Residual and servicing assets included in Other Assets $ 29 $ 15 Cash received from residual and servicing assets $ 3 $ 2 In connection with securitization transactions, we typically retain servicing responsibilities and residual assets. In certain instances, we receive annual servicing fees of up 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 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 including Level 3 unobservable inputs which consist of base interest rates and spreads over base rates. Depending on the nature of the transaction risks, the discount rate ranged from 4% to 7%. As of June 30, 2017 and December 31, 2016, our managed assets totaled $4.6 billion and $3.9 billion, respectively, of which $2.5 billion and $2.3 billion, respectively, were securitized assets held in unconsolidated securitization trusts. There were no securitization credit losses in the six months ended June 30, 2017 or 2016. As of June 30, 2017 there was approximately $1.4 million in payments from certain debtors to the securitization trusts that was greater than 90 days past due. 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, federal, state or local government entities where the ultimate obligor is the 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, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Our Portfolio | 6. Our Portfolio As of June 30, 2017, our Portfolio included approximately $2.1 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 non-controlling equity investments in renewable energy projects and land. The following is an analysis of our Portfolio by type of obligor and credit quality as of June 30, 2017: Investment Grade Government (1) Commercial (2) Commercial Non-Investment (3) Subtotal, Debt and Real Estate Equity Method Total (dollars in millions) Financing receivables $ 632 $ 482 $ 26 $ 1,140 $ — $ 1,140 Investments 104 22 — 126 — 126 Real estate (4) — 298 — 298 21 319 Equity investments in renewable energy projects — — — — 530 530 Total $ 736 $ 802 $ 26 $ 1,564 $ 551 $ 2,115 % of Debt and Real Estate Portfolio 47 % 51 % 2 % 100 % N/A N/A Average Remaining Balance (5) $ 13 $ 9 $ 9 $ 11 $ 20 $ 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 $525 million of U.S. federal government transactions and $211 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 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 $311 million of internally rated residential solar loans made on a nonrecourse basis to special purpose subsidiaries of the SunPower Corporation, for which we rely on certain limited indemnities, warranties, and other obligations of Sunpower Corporation or its other subsidiaries. (3) Transactions where the projects or the ultimate obligors are commercial entities that have ratings below investment grade (either by an independent rating agency or using our internal credit analysis). (4) Includes the real estate and the lease intangible assets (including those held through equity method investments) from which we receive scheduled lease payments, typically under long-term triple net lease agreements. (5) Excludes approximately 125 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $48 million. Financing Receivables and Investments 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, 2017: Total Less than 1 1-5 years 5-10 years More than 10 (dollars in millions) Financing Receivables Maturities by period $ 1,140 $ 7 $ 25 $ 75 $ 1,033 Weighted average yield by period 5.2 % 8.4 % 5.3 % 5.0 % 5.2 % Investments Maturities by period $ 126 $ — $ — $ 1 $ 125 Weighted average yield by period 4.3 % — % — % 4.7 % 4.3 % Our non-investment grade assets includes two financing receivables with a carrying value of approximately $10 million that became past due in the second quarter of 2017. These financing receivables, which we acquired as part of our acquisition of American Wind Capital Company, LLC in 2014, are assignments of land lease payments from two wind projects (the “Projects”). We have been informed by the owner of the Projects that the Projects are experiencing a decline in revenue. On this basis, the owner of the Projects is seeking to renegotiate the land lease contractual payment terms or terminate the lease. In July 2017, we filed a legal claim against the owners of the Projects in order to protect our interests in the Projects and the amounts due to us under the land lease assignments. Although there can be no assurance in this regard, we believe that we have the ability to recover the carrying value from the Projects, including by taking title to the underlying collateral, and thus have not recorded an allowance for losses as of June 30, 2017. We have determined that the assets are impaired and placed them on non-accrual status. Other than discussed above, we had no financing receivables, investments or leases that were impaired or on nonaccrual status as of June 30, 2017 or December 31, 2016. There was no provision for credit losses or troubled debt restructurings as of June 30, 2017 or December 31, 2016. Real Estate 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 2057 under the initial terms and 2047 and 2080 if all renewals are exercised. The components of our real estate portfolio as of June 30, 2017 and December 31, 2016, were as follows: June 30, 2017 December 31, (dollars in millions) Real Estate Land $ 222 $ 145 Lease intangibles 80 29 Accumulated amortization of lease intangibles (4 ) (2 ) Real Estate $ 298 $ 172 In the first quarter of 2017, we purchased a portfolio of over 4,000 acres of land and related long-term triple net leases to over 20 individual solar projects with investment grade off-takers at a cost of approximately $138 million. Approximately $21 million (1,100 acres) of this real estate portfolio was acquired through an equity interest in a joint venture that we account for under the equity method of accounting and approximately $49 million of our purchase price was allocated to intangible lease assets on a relative fair value basis. Up to an additional $7 million may become payable under this transaction upon completion of certain project related contingencies. As of June 30, 2017, the future amortization expense of these intangible assets and the future minimum rental income payments under our land lease agreements are as follows: Years Ending December 31, Future Minimum (dollars in millions) From July 1, 2017 to December 31, 2017 $ 1 $ 8 2018 2 17 2019 2 17 2020 2 17 2021 2 17 2022 2 17 Thereafter 65 602 Total $ 76 $ 695 There are conservation easement agreements covering several of our properties that limit the use of the property upon its lease expiration. Equity Investments We have made non-controlling equity investments in a number of renewable energy projects operated by renewable energy companies as well as in a joint venture that owns land with a long-term triple net lease agreement to several solar projects that we account for as equity method investments. As of June 30, 2017, we held the following equity method investments: Acquisition Date Transaction Investment Partner (in millions) Various Strong Upwind Holdings I,II, and III LLC $ 195 Various (1) June 2017 Northern Frontier LLC 94 Various December 2015 Buckeye Wind Energy Class B Holdings LLC 67 Invenergy February 2017 Strong Upwind Holdings IV LLC 59 JPMorgan October 2016 Invenergy Gunsight Mountain Holdings, LLC 36 Invenergy Acquisition Date Transaction Investment Partner (in millions) June 2016 MM Solar Holdings LLC 28 AES Various Other transactions 72 Various Total Equity Method Investments $ 551 (1) In June 2017, we acquired the remaining interest in these holding company entities for $22 million from JPMorgan. The entities are now consolidated entities in which the underlying assets (i.e. project level equity method investments) are being reported in our financial statements as equity method investments. Based on an evaluation of our equity method investments, we determined that no OTTI impairment had occurred as of June 30, 2017, or December 31, 2016. Deferred Funding Obligations In accordance with the terms of certain purchase agreements relating to financing receivables and investments, payments of the purchase price are scheduled to be made over time and as a result, we have recorded deferred funding obligations of $273 million and $171 million as of June 30, 2017 and December 31, 2016, respectively. As of June 30, 2017 and December 31, 2016, we have pledged approximately $34 million and $41 million of our equity method investments as collateral for a deferred funding obligation of $26 million and $34 million, respectively. The next five years of outstanding deferred funding obligations to be paid are as follows: (dollars in millions) July 1, 2017 to December 31, 2017 $ 49 2018 103 2019 73 2020 36 2021 12 Total Deferred Funding Obligations $ 273 |
Credit Facilities
Credit Facilities | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
Credit Facilities | 7. Credit Facilities Revolver We have a senior secured revolving credit facility which matures in July 2019. The facility 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. In June 2017, we entered into an amendment that adjusted certain of the sub-limits but did not change the overall maximum advances or aggregate amount available at any point in time. The following table provides additional detail on our credit facility as of June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 (dollars in millions) Outstanding balance $ 290 $ 283 Value of collateral pledged to credit facility $ 421 $ 471 Weighted average short-term borrowing rate 2.9 % 2.3 % 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 Base Rate. Loans under the PF Facility bear interest at a rate equal to LIBOR plus 2.5% or, under certain circumstances, 2.5% plus the Base Rate or as mutually agreed. The Base Rate is defined as 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,” (iii) LIBOR plus 1.0% and (iv) zero. 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. We have approximately $5 million of remaining unamortized costs associated with the credit facility that have been capitalized and included in Other assets on our balance sheet, 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. Term Loan In February 2017, we borrowed $102 million under a recourse credit facility. In July 2017, we amended this agreement to mature on September 20, 2017. This credit facility is secured by equity in one of our wholly-owned subsidiaries that holds approximately $128 million of real estate, financing receivables and equity investments. The credit facility can be repaid at any time. The loan bears interest at a rate of three month LIBOR plus 200 basis points through September 1, 2017, increasing to three month LIBOR plus 275 basis points on September 2, 2017. This term loan also includes customary events of default. The occurrence of an event of default may result in termination of the term loan, acceleration of amounts due, and accrual of default interest. Any default interest will accrue at the applicable rate plus 2.0% prior to any acceleration or the scheduled maturity date, and 5.0% thereafter. We recorded $1.4 million of debt issuance costs which are netted against the outstanding balance. |
Nonrecourse Debt
Nonrecourse Debt | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 December 31, 2016 Interest Maturity Date Anticipated June 30, 2017 December 31, 2016 Description of Assets Pledged HASI Sustainable Yield Bond 2013-1 $ 73 $ 75 2.79 % December 2019 $ 57 $ 91 $ 93 Financing receivables ABS Loan Agreement $ 89 $ 90 5.74 % September 2021 $ 17 $ 87 $ 97 Equity interest in Strong Upwind Holdings I, LLC HASI Sustainable Yield Bond 2015-1A $ 96 $ 97 4.28 % October 2034 $ — $ 138 $ 138 Financing receivables, real estate and real estate intangibles HASI Sustainable Yield Bond 2015-1B Note $ 14 $ — 5.41 % October 2034 $ — $ 138 $ — Class B Bond of HASI Sustainable Yield Bond 2015-1 HASI SYB Loan Agreement 2015-1 (1) $ 74 (1) (1) (1) (1) $ 96 Equity interest in Strong Upwind Holdings II and III, LLC, related interest rate swap 2017 Credit Agreement $ 196 — 3.47 % (2) June 2024 $ — $ 262 $ — Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier, LLC HASI SYB Loan Agreement 2015-2 $ 37 $ 41 5.38 % (3) December 2023 $ — $ 67 $ 70 Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap HASI SYB Loan Agreement 2015-3 $ 147 $ 150 4.92 % December 2020 $ 127 $ 173 $ 175 Residential solar financing receivables, related interest rate swaps HASI SYB Loan Agreement 2016-1 $ 119 $ 98 4.23 % (3) November 2021 $ 101 $ 139 $ 114 Residential solar financing receivables, related interest rate swaps HASI SYB Trust 2016-2 $ 85 $ — 4.35 % April 2037 $ — $ 91 $ — Financing receivables Other nonrecourse debt (4) $ 87 $ 84 2.26 % - 7.45% 2017 to 2046 $ — $ 221 $ 81 Financing receivables Debt issuance costs $ (21 ) $ (17 ) Nonrecourse debt (5) $ 922 $ 692 (1) This nonrecourse debt agreement was re-financed in the second quarter of 2017 with the same lender through the 2017 Credit Agreement. (2) Interest rate represents the current period’s LIBOR based rate plus the spread. Under the terms of the 2017 Credit Agreement, this rate will become fixed upon the lender’s syndication of the loan, or that can be fixed at our option. (3) 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, the value of which are not included in the book value of assets pledged. (4) Other nonrecourse debt consists of various debt agreements used to finance certain of our financing receivables for their term. Debt service payment requirements, in a majority of cases, are equal to or less than the cash flows received from the underlying financing receivables. (5) The total collateral pledged against our nonrecourse debt was $1,269 million and $864 million as of June 30, 2017 and December 31, 2016, respectively. We have pledged the financed assets, and typically our interests in one or more parents or subsidiaries of the borrower that are legally separate bankruptcy remote special purpose entities as security for the nonrecourse debt. There is no recourse for repayment of these obligations other than to the applicable borrower and any collateral pledged as security for the obligations. The assets and credit of these entities are not available to satisfy any of our other debts and obligations, except as not prohibited by the debt agreements. The creditors can only look to the borrower, the cash flows of the pledged assets and any other collateral pledged, to satisfy the debt and we are not otherwise 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 certain of our renewable energy equity interests, we have also guaranteed the compliance of our subsidiaries with certain tax matters and certain obligations if our joint venture partners exercise their right to withdraw from our partnerships. The HASI Sustainable Yield Bond (“HASI SYB”) 2015-1 consists of two instruments, (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. In January 2017, we borrowed $14 million of non-recourse debt using the Class B Bonds as collateral. 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, 2017 December 31, Term HASI SYB Loan Agreement 2015-1 (1) 3 month Libor 1.55 % $ — $ 67 $ — $ — December 2015 to September 2021 HASI SYB Loan Agreement 2015-2 3 month Libor 1.52 % $ 36 $ 37 $ — $ — December 2015 to December 2018 HASI SYB Loan Agreement 2015-2 3 month Libor 2.55 % $ 29 $ 29 $ (0.4 ) $ (0.2 ) December 2018 to December 2024 HASI SYB Loan Agreement 2015-3 1 month Libor 2.34 % $ 119 $ 119 $ 0.2 $ 1.0 November 2020 to August 2028 HASI SYB Loan Agreement 2016-1 3 month Libor 1.88 % $ 109 $ 72 $ (0.1 ) $ 0.2 November 2016 to November 2021 HASI SYB Loan Agreement 2016-1 3 month Libor 2.73 % $ 107 $ 107 $ (0.7 ) $ — November 2021 to October 2032 Total $ 400 $ 431 $ (1.0 ) $ 1.0 (1) This interest rate swap was financially settled in June 2017. The total fair value of our derivatives relating to interest rate hedges that are effective in offsetting variable cash flows is reflected as unrealized gains or losses in AOCI and in Other assets or Accounts payable, accrued expenses and other in the Condensed Consolidated Balance Sheets. As of June 30, 2017 and December 31, 2016, all of our derivatives were designated as hedging instruments and there was no ineffectiveness recorded on our designated hedges. The next 12-months of stated minimum maturities of nonrecourse debt are as follows: (dollars in millions) July 1, 2017 to December 31, 2017 $ 37 2018 47 2019 105 2020 176 2021 143 2022 18 Thereafter 417 $ 943 Deferred financing costs, net (21 ) Total Nonrecourse $ 922 Debt 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 Buckeye Wind Energy Class B Holdings LLC, these additional cash flows are required to be used to make additional principal payments against the respective debt. Any additional principal payments made due to these provisions may impact the anticipated balance at maturity of these financings. SunPower Corporation (“Sunpower”), which originated and services the residential solar leases that are the collateral for the HASI SYB Loan Agreement 2015-3 and the HASI SYB Loan Agreement 2016-1, had publicly disclosed that were not in compliance and did not expect to be in compliance for 2017, with a debt-to-EBITDA leverage covenant in one of their loan agreements, due in part to a restructuring they have undertaken as result of changes in the broader solar market. According to SunPower’s disclosure, they were not in default under this cash collateralized loan that has an outstanding balance of $5 million. In June 2017, SunPower negotiated an amendment to their loan agreement and removed the debt-to-EBITDA leverage covenant. The portfolios of residential solar leases are held in bankruptcy remote special purpose entities (“SPEs”) that are performing in line with our expectations and the SPEs, and not SunPower, are the source of repayment under our loans. SunPower has provided us certain limited indemnities and warranties and as servicer, provides various services including billing, monitoring payments by homeowners to a third-party lockbox and customer service. Our loan agreements included the same debt-to-EBITDA covenant referred to above to monitor changes in SunPower’s credit, as is typical for a servicer. As a result, our lenders are entitled to apply approximately $1 million of the cash flow after payment of principal and interest each quarter to further reduce the principal balance on our loan. We continue to monitor the situation and anticipate having further discussions with our lenders and with SunPower but at the present time, do not anticipate any other impact. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 10. Income Tax We recorded a tax expense of approximately $0.1 million for the three and six months ended June 30, 2017 and 2016. 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, 2017 | |
Equity [Abstract] | |
Equity | 11. Equity Dividends and Distributions Our board of directors declared the following dividends in 2016 and 2017: Announced Date Record Date Pay Date Amount per 3/15/16 3/30/16 4/7/16 $ 0.30 6/07/16 7/06/16 7/14/16 $ 0.30 9/15/16 10/05/16 10/13/16 $ 0.30 12/13/16 12/29/16 * 1/12/17 $ 0.33 3/15/17 4/05/17 4/13/17 $ 0.33 6/01/17 7/06/17 7/13/17 $ 0.33 * This dividend was treated as a distribution in 2017 for tax purposes. We have an effective universal shelf registration statement registering the potential offer and sale, from time to time and in one or more offerings, 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 2016 and 2017: Closing Date Common Stock Offerings Shares Issued (1) Price Per Share Net Proceeds (2) (amounts in millions, except per share amounts) 6/21/16 Public Offering 4.600 $ 19.78 (3 ) $ 91 5/9/16 to 6/30/16 ATM 0.065 $ 20.31 (4 ) $ 1 11/09/16 Public Offering 4.025 $ 19.28 (3 ) $ 77 12/13/16 to 12/29/16 ATM 0.407 $ 19.47 (4 ) $ 8 1/20/17 to 2/2/17 ATM 0.197 $ 19.18 (4 ) $ 4 3/10/17 Public Offering 3.450 $ 18.73 (3 ) $ 64 5/17/17 to 6/22/17 ATM 1.376 $ 22.71 (4 ) $ 31 (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 price per share at which the underwriters in our public offerings purchased shares from our company. (4) 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 have issued awards with service, performance and market conditions. During the six months ended June 30, 2017, our board of directors awarded employees and directors 707,648 shares of restricted stock and restricted stock units that vest in 2017 to 2020. As of June 30, 2017, as it relates to previously issued awards with performance conditions, we have concluded that it is probable that the performance conditions will be met. For the three and six months ended June 30, 2017, we recorded $3 million and $6 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, 2016. The total unrecognized compensation expense related to awards of shares of restricted stock and restricted stock units was approximately $17 million as of June 30, 2017. We expect to recognize compensation expense related to these awards over a weighted-average term of approximately two years. 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) Ending Balance — December 31, 2015 1,248,069 $ 15.16 $ 18.9 Granted 661,055 18.62 12.3 Vested (716,264 ) 14.03 (10.0 ) Forfeited (11,188 ) 17.25 (0.2 ) Ending Balance — December 31, 2016 1,181,672 $ 17.76 $ 21.0 Granted 451,614 19.04 8.6 Vested (216,657 ) 14.12 (3.1 ) Forfeited — — — Ending Balance — June 30, 2017 1,416,629 $ 18.72 $ 26.5 A summary of the unvested shares of restricted stock units that have market based vesting conditions that have been issued is as follows: Restricted Stock Weighted Average Value Ending Balance — December 31, 2016 — — — Granted 256,034 $ 18.99 $ 4.9 Vested — — — Forfeited — — — Ending Balance — June 30, 2017 256,034 $ 18.99 $ 4.9 |
Earnings per Share of Common St
Earnings per Share of Common Stock | 6 Months Ended |
Jun. 30, 2017 | |
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 of common stock is as follows: Three Months Ended June 30, Six Months Ended June 30, Numerator: 2017 2016 2017 2016 (in millions, except share and per share data) Net income attributable to controlling stockholders and participating securities $ 12.3 $ 3.8 $ 19.5 $ 6.9 Less: Dividends paid on participating securities (0.4 ) (0.4 ) (0.9 ) (0.9 ) Undistributed earnings attributable to participating securities — — — — Net income attributable to controlling stockholders $ 11.9 $ 3.4 $ 18.6 $ 6.0 Denominator: Weighted-average number of common shares — basic 50,573,996 37,737,026 49,044,051 37,376,618 Weighted-average number of common shares — diluted 50,573,996 37,737,026 49,044,051 37,376,618 Basic earnings per common share $ 0.23 $ 0.09 $ 0.38 $ 0.16 Diluted earnings per common share $ 0.23 $ 0.09 $ 0.38 $ 0.16 Other Information: Weighted-average number of OP units 284,992 284,992 284,992 284,992 Unvested restricted common stock outstanding as of 1,416,629 1,330,026 Unvested restricted stock units outstanding as of 256,034 0 |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | 13. Equity Method Investments We have noncontrolling unconsolidated equity investments in entities that own minority interests in renewable energy projects and in one case, real estate. We recognized income from our equity method investments of $8.4 million and $12.5 million during the three and six months ended June 30, 2017, respectively, as compared to income of $1.1 million and $1.3 million during the three and six months ended June 30, 2016. We describe our accounting for noncontrolling equity investments in Note 2. 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, 2017 As of December 31, 2016 (dollars in millions, unaudited) Current Assets $ 3 $ 3 Total Assets $ 115 $ 99 Current Liabilities $ 4 $ 4 Total Liabilities $ 38 $ 39 Members’ Equity $ 77 $ 60 For the three months 2017 2016 (dollars in millions, unaudited) Revenue $ 3 $ 3 Income from Continuing Operations $ 1 $ 0 Net income $ 1 $ 0 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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. These financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2016, as filed with the SEC. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been included. The Company’s results of operations for the quarterly period ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year or any other future period. Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Certain amounts in the prior years have been reclassified to conform to the current year presentation. These reclassifications include changes to the presentation of the Consolidated Statements of Cash Flows related to the adoption of Accounting Standards Update (“ASU”) No. 2016-18 Statement of Cash Flows (Topic 230). The 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. |
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. At inception of the arrangement, 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 and are carried at the lower of amortized cost or fair value on our balance sheet. The net purchases and proceeds from these sales of our held-for-sale financing receivables are recorded as an operating activity in our statement of cash flows based on our intent at the time of purchase. We may secure debt with the proceeds from our financing receivables. We evaluate our financing receivables for potential delinquency or impairment on at least a quarterly basis and more frequently when economic or other conditions warrant such an evaluation. When a financing receivable becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service all of its debt or other obligations, we will generally consider the financing receivable delinquent or impaired and place the financing receivable on non-accrual status and cease recognizing income from that financing receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a financing receivable’s status significantly improves regarding the debtor’s ability to service the debt or other obligations, we will remove it from non-accrual status. A financing receivable is also considered impaired as of the date when, based on current information and events, it is determined that it is probable that we will be unable to collect all amounts due in accordance with the original contracted terms. Many of our financing receivables are secured by 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 ratios and any cash reserves, the ability of expected cash from operations to cover the cash flow requirements currently and into the future, key terms of the transaction, the ability of the borrower to refinance the transaction, other credit support from the sponsor or guarantor and the project’s collateral value. In addition, we consider the overall economic environment, the sustainable infrastructure sector, the effect of local, industry, and broader economic factors, the impact of any variation in weather and the historical and anticipated trends in interest rates, defaults and loss severities for similar transactions. If a financing receivable is considered to be impaired, we will determine if an allowance should be recorded. We will record an allowance if the present value of expected future cash flows discounted at the financing receivable’s contractual effective rate is less than its carrying value. This estimate of cash flows may include 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, Investments—Debt and Equity Securities 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 the 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 is recorded in AOCI. 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 consists of land or other real estate and its related lease intangibles, net of any amortization. Our real estate is generally leased to tenants on a triple 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. Expenses related to leases where we are the lessor, if any, are charged to operations as incurred. We record our real estate purchases as asset acquisitions that are recorded at cost, including acquisition and closing costs, unless they meet the definition of a business combination 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 appraisals by a qualified appraiser. In allocating the fair value of the identified intangibles of an acquired property, above-market and below-market in-place lease values are recorded 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, both of which are amortized over the term used to value the intangible. 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 income lost if the leases were not in place. The amortization of this intangible occurs over the initial term unless management believes that it is likely that the tenant would exercise the renewal option. If a lease were to be terminated, all unamortized amounts relating to that lease would be written off. |
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 (“VIEs”), as defined in ASC 810, Consolidation We account for transfers of financing receivables to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing 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 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 consolidated balance sheets. Refer to Note 3 for disclosure of the balances of Restricted cash included in Other Assets. |
Consolidation and Equity Method Investments | Consolidation and Equity Method Investments We account for our investment in entities that are considered voting or variable interest entities under ASC 810, Consolidation 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. We have made equity investments in various renewable energy projects. We share in the cash flows, income, and tax attributes according to a negotiated schedule (which typically does not correspond with our ownership percentages). Our renewable energy projects are typically owned in partnerships structures (using limited liability companies, or LLCs taxed as partnerships) where we receive a stated preferred return consisting of a priority distribution of all or a portion of the project’s cash flows, and in some cases, tax attributes. We have typically partnered with either the operator of the project or other tax equity investors. Once our 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 any other institutional investors, will have an on-going residual interest. These equity investments in renewable energy projects are accounted for under the equity method of accounting. Certain of our equity method investments were determined to be VIEs in which we are not the primary beneficiary. 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 these equity method investments is determined based on amounts we invested, adjusted for the equity in earnings or losses of the investee allocated based on the limited liability company agreement, less distributions received. Because certain of the limited liability company 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, which is adjusted for distributions received and contributions made. 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”). Intercompany gains and losses are eliminated for an amount equal to our interest and are reflected in the share in income or loss from equity method investments 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 have also made an investment in a joint venture which holds land under solar projects. This investment entitles us to receive an equal percentage of both cash distributions and profit and loss under the terms of the LLC agreement. The investment, which we have determined to be a voting interest entity, is accounted for under the equity method of accounting, with our portion of rental income, adjusted for any fair value to book value basis difference, being recognized in Income (loss) from equity method investments in the period in which the income is earned. We evaluate the realization of our investments accounted for using the equity method if circumstances indicate that our investment is an OTTI. An OTTI impairment occurs when the estimated fair value of an investment is below the carrying value and the difference is determined to not be recoverable. This evaluation requires significant judgment regarding, but not limited to, the severity and duration of the impairment; the ability and intent to hold the securities until recovery; financial condition, liquidity, and near-term prospects of the issuer; specific events; and other factors. |
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 reduce the impact of changes in interest rates on our results of operations and cash flows. 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 required in order to qualify for hedge accounting. Instruments that meet the required hedging criteria are formally designated as hedges at the inception of the derivative contract. Derivatives are recorded 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 AOCI, net of associated deferred income tax effects and are recognized in earnings at the same time as the hedged item, including as a result of the accrual of interest. Changes in fair value of the ineffective portions of these hedges are recognized in general and administrative expenses. For any derivative instruments not designated as hedging instruments, changes in fair value would be recognized in earnings in the period that the change occurs. We assess, both at the inception of the hedge and on an ongoing basis, whether the derivatives designated as cash flow hedges are highly effective in offsetting the changes in cash flows of the 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 stockholders. 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 under ASC 740, Income Taxes We apply ASC 740, Income Taxes |
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 make equity or equity based awards 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 grants made under the 2013 Plan in accordance with ASC 718, Compensation—Stock Compensation |
Earnings Per Share | Earnings Per Share We compute earnings per share of common stock in accordance with ASC 260, Earnings Per Share |
Segment Reporting | Segment Reporting We provide and arrange debt and equity investments 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 ASU No. 2014-09, Revenue from Contracts with Customers Leases In February 2016, the FASB issued ASU No. 2016-02, Leases Revenue from Contracts with Customers Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments Equity Method Investments In March 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting Other accounting standards updates effective after June 30, 2017, are not expected to have a material effect on our consolidated financial statements and related disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value and Carrying Value of Financial Assets and Liabilities | As of June 30, 2017 Fair Value Carrying Level (dollars in millions) Assets Financing receivables $ 1,129 $ 1,140 Level 3 Investments (1) 126 126 Level 3 Securitization residual assets 28 28 Level 3 Liabilities Credit facilities $ 392 $ 392 Level 3 Nonrecourse notes (2) 951 943 Level 3 Derivative liabilities 1 1 Level 2 (1) The amortized cost of our investments as of June 30, 2017 was $127 million. (2) Fair value and carrying value of nonrecourse notes excludes unamortized debt issuance costs. As of December 31, 2016 Fair Value Carrying Level (dollars in millions) Assets Financing receivables $ 1,017 $ 1,042 Level 3 Investments (1) 58 58 Level 3 Securitization residual assets 19 19 Level 3 Derivative assets 1 1 Level 2 Liabilities Credit facilities $ 283 $ 283 Level 3 Nonrecourse notes (2) 718 709 Level 3 (1) The amortized cost of our investments as of December 31, 2016 was $61 million. (2) Fair value and carrying value of nonrecourse notes 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 For the six months 2017 2016 2017 2016 (dollars in millions) Balance, beginning of period $ 125 $ 37 $ 58 $ 29 Purchases of investments 1 10 67 32 Payments on investments (1 ) — (1 ) (1 ) Sale of investments — — — (14 ) Gains on investments recorded in earnings — — — 1 Gains (losses) on investments recorded in OCI (1) 1 1 2 1 Balance, end of period $ 126 $ 48 $ 126 $ 48 (1) As of June 30, 2017 and December 31, 2016, approximately $10 million of investment grade rated debt was held for more than 12 months in an unrealized loss position of approximately $1 million due to interest rate movements. We have the intent and the ability to hold this investment until a recovery of amortized cost. As of June 30, 2017 and December 31, 2016, we held no other securities in an unrealized loss position for over 12 months. |
Schedule of Cash Deposits Subject to Credit Risk | We had cash deposits that are subject to credit risk as shown below: June 30, December 31, (dollars in millions) Cash deposits $ 42 $ 29 Restricted cash deposits (included in Other assets) 64 30 Total cash deposits $ 106 $ 59 Amount of cash deposits in excess of amounts federally insured $ 103 $ 57 |
Securitization of Receivables (
Securitization of Receivables (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Summary of Certain Transactions with Securitization Trusts | The following summarizes certain transactions with our securitization trusts: As of and for the six months 2017 2016 (dollars in millions) Gains on securitizations $ 12 $ 10 Purchase of receivables securitized $ 195 $ 319 Proceeds from securitizations $ 207 $ 329 Residual and servicing assets included in Other Assets $ 29 $ 15 Cash received from residual and servicing assets $ 3 $ 2 |
Our Portfolio (Tables)
Our Portfolio (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [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, 2017: Investment Grade Government (1) Commercial (2) Commercial Non-Investment (3) Subtotal, Debt and Real Estate Equity Method Total (dollars in millions) Financing receivables $ 632 $ 482 $ 26 $ 1,140 $ — $ 1,140 Investments 104 22 — 126 — 126 Real estate (4) — 298 — 298 21 319 Equity investments in renewable energy projects — — — — 530 530 Total $ 736 $ 802 $ 26 $ 1,564 $ 551 $ 2,115 % of Debt and Real Estate Portfolio 47 % 51 % 2 % 100 % N/A N/A Average Remaining Balance (5) $ 13 $ 9 $ 9 $ 11 $ 20 $ 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 $525 million of U.S. federal government transactions and $211 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 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 $311 million of internally rated residential solar loans made on a nonrecourse basis to special purpose subsidiaries of the SunPower Corporation, for which we rely on certain limited indemnities, warranties, and other obligations of Sunpower Corporation or its other subsidiaries. (3) Transactions where the projects or the ultimate obligors are commercial entities that have ratings below investment grade (either by an independent rating agency or using our internal credit analysis). (4) Includes the real estate and the lease intangible assets (including those held through equity method investments) from which we receive scheduled lease payments, typically under long-term triple net lease agreements. (5) Excludes approximately 125 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $48 million. |
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, 2017: Total Less than 1 1-5 years 5-10 years More than 10 (dollars in millions) Financing Receivables Maturities by period $ 1,140 $ 7 $ 25 $ 75 $ 1,033 Weighted average yield by period 5.2 % 8.4 % 5.3 % 5.0 % 5.2 % Investments Maturities by period $ 126 $ — $ — $ 1 $ 125 Weighted average yield by period 4.3 % — % — % 4.7 % 4.3 % |
Components of Real Estate Portfolio | The components of our real estate portfolio as of June 30, 2017 and December 31, 2016, were as follows: June 30, 2017 December 31, (dollars in millions) Real Estate Land $ 222 $ 145 Lease intangibles 80 29 Accumulated amortization of lease intangibles (4 ) (2 ) Real Estate $ 298 $ 172 |
Schedule of Future Amortization Expenses Related to Intangible Assets and Future Minimum Rental Income Payments under Land Lease Agreements | As of June 30, 2017, the future amortization expense of these intangible assets and the future minimum rental income payments under our land lease agreements are as follows: Years Ending December 31, Future Minimum (dollars in millions) From July 1, 2017 to December 31, 2017 $ 1 $ 8 2018 2 17 2019 2 17 2020 2 17 2021 2 17 2022 2 17 Thereafter 65 602 Total $ 76 $ 695 |
Summary of Outstanding Deferred Funding Obligations to be Paid | The next five years of outstanding deferred funding obligations to be paid are as follows: (dollars in millions) July 1, 2017 to December 31, 2017 $ 49 2018 103 2019 73 2020 36 2021 12 Total Deferred Funding Obligations $ 273 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Schedule of Equity Method Investments | 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, 2017 As of December 31, 2016 (dollars in millions, unaudited) Current Assets $ 3 $ 3 Total Assets $ 115 $ 99 Current Liabilities $ 4 $ 4 Total Liabilities $ 38 $ 39 Members’ Equity $ 77 $ 60 For the three months 2017 2016 (dollars in millions, unaudited) Revenue $ 3 $ 3 Income from Continuing Operations $ 1 $ 0 Net income $ 1 $ 0 |
Renewable Energy Projects [Member] | |
Schedule of Equity Method Investments | As of June 30, 2017, we held the following equity method investments: Acquisition Date Transaction Investment Partner (in millions) Various Strong Upwind Holdings I,II, and III LLC $ 195 Various (1) June 2017 Northern Frontier LLC 94 Various December 2015 Buckeye Wind Energy Class B Holdings LLC 67 Invenergy February 2017 Strong Upwind Holdings IV LLC 59 JPMorgan October 2016 Invenergy Gunsight Mountain Holdings, LLC 36 Invenergy Acquisition Date Transaction Investment Partner (in millions) June 2016 MM Solar Holdings LLC 28 AES Various Other transactions 72 Various Total Equity Method Investments $ 551 (1) In June 2017, we acquired the remaining interest in these holding company entities for $22 million from JPMorgan. The entities are now consolidated entities in which the underlying assets (i.e. project level equity method investments) are being reported in our financial statements as equity method investments. |
Credit Facilities (Tables)
Credit Facilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
Schedule of Additional Detail on Credit Facility | The following table provides additional detail on our credit facility as of June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 (dollars in millions) Outstanding balance $ 290 $ 283 Value of collateral pledged to credit facility $ 421 $ 471 Weighted average short-term borrowing rate 2.9 % 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, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Nonrecourse Asset-Backed 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, 2017 December 31, 2016 Interest Maturity Date Anticipated June 30, 2017 December 31, 2016 Description of Assets Pledged HASI Sustainable Yield Bond 2013-1 $ 73 $ 75 2.79 % December 2019 $ 57 $ 91 $ 93 Financing receivables ABS Loan Agreement $ 89 $ 90 5.74 % September 2021 $ 17 $ 87 $ 97 Equity interest in Strong Upwind Holdings I, LLC HASI Sustainable Yield Bond 2015-1A $ 96 $ 97 4.28 % October 2034 $ — $ 138 $ 138 Financing receivables, real estate and real estate intangibles HASI Sustainable Yield Bond 2015-1B Note $ 14 $ — 5.41 % October 2034 $ — $ 138 $ — Class B Bond of HASI Sustainable Yield Bond 2015-1 HASI SYB Loan Agreement 2015-1 (1) $ 74 (1) (1) (1) (1) $ 96 Equity interest in Strong Upwind Holdings II and III, LLC, related interest rate swap 2017 Credit Agreement $ 196 — 3.47 % (2) June 2024 $ — $ 262 $ — Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier, LLC HASI SYB Loan Agreement 2015-2 $ 37 $ 41 5.38 % (3) December 2023 $ — $ 67 $ 70 Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap HASI SYB Loan Agreement 2015-3 $ 147 $ 150 4.92 % December 2020 $ 127 $ 173 $ 175 Residential solar financing receivables, related interest rate swaps HASI SYB Loan Agreement 2016-1 $ 119 $ 98 4.23 % (3) November 2021 $ 101 $ 139 $ 114 Residential solar financing receivables, related interest rate swaps HASI SYB Trust 2016-2 $ 85 $ — 4.35 % April 2037 $ — $ 91 $ — Financing receivables Other nonrecourse debt (4) $ 87 $ 84 2.26 % - 7.45% 2017 to 2046 $ — $ 221 $ 81 Financing receivables Debt issuance costs $ (21 ) $ (17 ) Nonrecourse debt (5) $ 922 $ 692 (1) This nonrecourse debt agreement was re-financed in the second quarter of 2017 with the same lender through the 2017 Credit Agreement. (2) Interest rate represents the current period’s LIBOR based rate plus the spread. Under the terms of the 2017 Credit Agreement, this rate will become fixed upon the lender’s syndication of the loan, or that can be fixed at our option. (3) 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, the value of which are not included in the book value of assets pledged. (4) Other nonrecourse debt consists of various debt agreements used to finance certain of our financing receivables for their term. Debt service payment requirements, in a majority of cases, are equal to or less than the cash flows received from the underlying financing receivables. (5) The total collateral pledged against our nonrecourse debt was $1,269 million and $864 million as of June 30, 2017 and December 31, 2016, respectively. |
Schedule of Interest Rate Swaps which 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, 2017 December 31, Term HASI SYB Loan Agreement 2015-1 (1) 3 month Libor 1.55 % $ — $ 67 $ — $ — December 2015 to September 2021 HASI SYB Loan Agreement 2015-2 3 month Libor 1.52 % $ 36 $ 37 $ — $ — December 2015 to December 2018 HASI SYB Loan Agreement 2015-2 3 month Libor 2.55 % $ 29 $ 29 $ (0.4 ) $ (0.2 ) December 2018 to December 2024 HASI SYB Loan Agreement 2015-3 1 month Libor 2.34 % $ 119 $ 119 $ 0.2 $ 1.0 November 2020 to August 2028 HASI SYB Loan Agreement 2016-1 3 month Libor 1.88 % $ 109 $ 72 $ (0.1 ) $ 0.2 November 2016 to November 2021 HASI SYB Loan Agreement 2016-1 3 month Libor 2.73 % $ 107 $ 107 $ (0.7 ) $ — November 2021 to October 2032 Total $ 400 $ 431 $ (1.0 ) $ 1.0 (1) This interest rate swap was financially settled in June 2017. |
Schedule of Minimum Maturities of Nonrecourse Debt | The next 12-months of stated minimum maturities of nonrecourse debt are as follows: (dollars in millions) July 1, 2017 to December 31, 2017 $ 37 2018 47 2019 105 2020 176 2021 143 2022 18 Thereafter 417 $ 943 Deferred financing costs, net (21 ) Total Nonrecourse $ 922 Debt |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Summary of Dividends Declared by Board of Directors | Our board of directors declared the following dividends in 2016 and 2017: Announced Date Record Date Pay Date Amount per 3/15/16 3/30/16 4/7/16 $ 0.30 6/07/16 7/06/16 7/14/16 $ 0.30 9/15/16 10/05/16 10/13/16 $ 0.30 12/13/16 12/29/16 * 1/12/17 $ 0.33 3/15/17 4/05/17 4/13/17 $ 0.33 6/01/17 7/06/17 7/13/17 $ 0.33 * This dividend was treated as a distribution in 2017 for tax purposes. |
Schedule of Common Stock Public Offerings and ATM | We completed the following public offerings and ATM offerings of our common stock in 2016 and 2017: Closing Date Common Stock Offerings Shares Issued (1) Price Per Share Net Proceeds (2) (amounts in millions, except per share amounts) 6/21/16 Public Offering 4.600 $ 19.78 (3 ) $ 91 5/9/16 to 6/30/16 ATM 0.065 $ 20.31 (4 ) $ 1 11/09/16 Public Offering 4.025 $ 19.28 (3 ) $ 77 12/13/16 to 12/29/16 ATM 0.407 $ 19.47 (4 ) $ 8 1/20/17 to 2/2/17 ATM 0.197 $ 19.18 (4 ) $ 4 3/10/17 Public Offering 3.450 $ 18.73 (3 ) $ 64 5/17/17 to 6/22/17 ATM 1.376 $ 22.71 (4 ) $ 31 (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 price per share at which the underwriters in our public offerings purchased shares from our company. (4) 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) Ending Balance — December 31, 2015 1,248,069 $ 15.16 $ 18.9 Granted 661,055 18.62 12.3 Vested (716,264 ) 14.03 (10.0 ) Forfeited (11,188 ) 17.25 (0.2 ) Ending Balance — December 31, 2016 1,181,672 $ 17.76 $ 21.0 Granted 451,614 19.04 8.6 Vested (216,657 ) 14.12 (3.1 ) Forfeited — — — Ending Balance — June 30, 2017 1,416,629 $ 18.72 $ 26.5 A summary of the unvested shares of restricted stock units that have market based vesting conditions that have been issued is as follows: Restricted Stock Weighted Average Value Ending Balance — December 31, 2016 — — — Granted 256,034 $ 18.99 $ 4.9 Vested — — — Forfeited — — — Ending Balance — June 30, 2017 256,034 $ 18.99 $ 4.9 |
Earnings per Share of Common 29
Earnings per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share of Common Stock | The computation of basic and diluted earnings per common share of common stock is as follows: Three Months Ended June 30, Six Months Ended June 30, Numerator: 2017 2016 2017 2016 (in millions, except share and per share data) Net income attributable to controlling stockholders and participating securities $ 12.3 $ 3.8 $ 19.5 $ 6.9 Less: Dividends paid on participating securities (0.4 ) (0.4 ) (0.9 ) (0.9 ) Undistributed earnings attributable to participating securities — — — — Net income attributable to controlling stockholders $ 11.9 $ 3.4 $ 18.6 $ 6.0 Denominator: Weighted-average number of common shares — basic 50,573,996 37,737,026 49,044,051 37,376,618 Weighted-average number of common shares — diluted 50,573,996 37,737,026 49,044,051 37,376,618 Basic earnings per common share $ 0.23 $ 0.09 $ 0.38 $ 0.16 Diluted earnings per common share $ 0.23 $ 0.09 $ 0.38 $ 0.16 Other Information: Weighted-average number of OP units 284,992 284,992 284,992 284,992 Unvested restricted common stock outstanding as of 1,416,629 1,330,026 Unvested restricted stock units outstanding as of 256,034 0 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017Segment | |
Summary of Significant Accounting Policies [Line Items] | |
Financing receivable, past due | 90 days |
Cash and cash equivalents original maturity period | 3 months |
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 stockholders. |
Number of segment reported | 1 |
2013 Plan [Member] | Performance Based Restricted Stock Award [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Stock-based award vesting minimum percentage | 0.00% |
Stock-based award vesting maximum percentage | 200.00% |
Stock-based award, range of vesting percentage description | The award earned is generally between 0% and 200% of the initial target, depending on the extent to which the performance target is met. |
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, 2017 | Dec. 31, 2016 |
Fair Value [Member] | Level 3 [Member] | Credit Facilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 392 | $ 283 |
Fair Value [Member] | Level 3 [Member] | Non Recourse Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 951 | 718 |
Fair Value [Member] | Level 3 [Member] | Financing Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,129 | 1,017 |
Fair Value [Member] | Level 3 [Member] | Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 126 | 58 |
Fair Value [Member] | Level 3 [Member] | Securitization Residual Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 28 | 19 |
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 | 1 | |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1 | |
Carrying Value [Member] | Level 3 [Member] | Credit Facilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 392 | 283 |
Carrying Value [Member] | Level 3 [Member] | Non Recourse Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 943 | 709 |
Carrying Value [Member] | Level 3 [Member] | Financing Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,140 | 1,042 |
Carrying Value [Member] | Level 3 [Member] | Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 126 | 58 |
Carrying Value [Member] | Level 3 [Member] | Securitization Residual Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 28 | 19 |
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 | $ 1 | |
Carrying Value [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 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, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Amortized cost | $ 127 | $ 61 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities (Detail) - Investments Available-for-Sale [Member] - Debt Securities [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | $ 125 | $ 37 | $ 58 | $ 29 |
Purchases of investments | 1 | 10 | 67 | 32 |
Payments on investments | (1) | (1) | (1) | |
Sale of investments | (14) | |||
Gains on investments recorded in earnings | 1 | |||
Gains (losses) on investments recorded in OCI | 1 | 1 | 2 | 1 |
Balance, end of period | $ 126 | $ 48 | $ 126 | $ 48 |
Fair Value Measurements - Sch34
Fair Value Measurements - Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities (Parenthetical) (Detail) $ in Millions | Jun. 30, 2017USD ($)Security | Dec. 31, 2016USD ($)Security |
Fair Value Disclosures [Abstract] | ||
Investment grade rated debt held for more than 12 months | $ 10 | $ 10 |
Securities in unrealized loss position | $ 1 | $ 1 |
Securities in unrealized loss position | Security | 0 | 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Level 3 [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Fair value interest rate spreads, minimum | 1.00% | 1.00% |
Fair value interest rate spreads, maximum | 4.00% | 4.00% |
Fair Value Measurements - Sch36
Fair Value Measurements - Schedule of Cash Deposits Subject to Credit Risk (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Cash deposits | $ 41,696 | $ 29,428 |
Restricted cash deposits (included in Other assets) | 64,000 | 30,000 |
Total cash deposits | 106,000 | 59,000 |
Amount of cash deposits in excess of amounts federally insured | $ 103,000 | $ 57,000 |
Non-Controlling Interest - Addi
Non-Controlling Interest - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Noncontrolling Interest [Line Items] | ||
Exchange of operating partnership units to common stock | 0 | 0 |
Payment in cash for redemption of operating partnership units | $ 0 | |
Maximum [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) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Gains on securitizations | $ 11,061 | $ 7,095 |
Securitization Trust [Member] | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Gains on securitizations | 12,000 | 10,000 |
Purchase of receivables securitized | 195,000 | 319,000 |
Proceeds from securitizations | 207,000 | 329,000 |
Cash received from residual and servicing assets | 3,000 | 2,000 |
Securitization Trust [Member] | 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 | $ 29,000 | $ 15,000 |
Securitization of Receivables39
Securitization of Receivables - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Managed receivables | $ 4,600,000,000 | $ 3,900,000,000 | |
Securitization credit losses | 0 | $ 0 | |
Asset-backed Securities, Securitized Loans and Receivables [Member] | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Managed receivables | 2,500,000,000 | $ 2,300,000,000 | |
Greater than 90 Days Past Due [Member] | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Payment from debtors to securitization trust | $ 1,400,000 | ||
Minimum [Member] | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Discount rates to determine fair market value of underlying assets | 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 | 7.00% |
Our Portfolio - Additional Info
Our Portfolio - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)aProject | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivables, investments, real estate and equity method investments | $ 2,115,000,000 | |||
Financing receivables on non accrual status | 0 | $ 0 | ||
Loan modifications that qualify as trouble debt restructurings | 0 | 0 | ||
Provision for credit losses | 0 | 0 | ||
Land purchased | a | 4,000 | |||
Number of solar projects | Project | 20 | |||
Portfolio cost | $ 138,000,000 | 118,963,000 | $ 7,345,000 | |
Amount payable upon completion of certain project related contingencies | 7,000,000 | |||
Impairment of equity method investments | 0 | 0 | ||
Deferred funding obligations | 273,447,000 | 170,892,000 | ||
Investment securities pledged as collateral | 34,000,000 | 41,000,000 | ||
Financing Receivables and Investments [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Deferred funding obligations | 26,000,000 | $ 34,000,000 | ||
American Wind Capital Company, LLC ("AWCC") [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Financing receivables, carrying value that became past due | $ 10,000,000 | |||
Real Estate Portfolio [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Real estate portfolio acquired value through equity interest in joint venture | $ 21,000,000 | |||
Joint Venture [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Land purchased | a | 1,100 | |||
Lease Intangibles [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Portfolio cost | $ 49,000,000 | |||
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 | 2,057 | |||
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, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables | $ 1,140,000 | |
Investments | 126,329 | $ 58,058 |
Investments | 126,329 | 58,058 |
Real estate | 319,000 | |
Equity method investments | 550,986 | $ 363,297 |
Total | 2,115,000 | |
Average Remaining Balance | 12,000 | |
Renewable Energy Projects [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equity method investments | 530,000 | |
Commercial Investment Grade [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables | 482,000 | |
Investments | 22,000 | |
Investments | 22,000 | |
Real estate | 298,000 | |
Total | 802,000 | |
Average Remaining Balance | 9,000 | |
Commercial Non-Investment Grade [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables | 26,000 | |
Total | 26,000 | |
Average Remaining Balance | $ 9,000 | |
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 | 51.00% | |
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 | $ 632,000 | |
Investments | 104,000 | |
Investments | 104,000 | |
Total | 736,000 | |
Average Remaining Balance | $ 13,000 | |
Government [Member] | Credit Concentration Risk [Member] | Debt and Real Estate Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Debt and Real Estate Portfolio | 47.00% | |
Subtotal, Debt and Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables | $ 1,140,000 | |
Investments | 126,000 | |
Investments | 126,000 | |
Real estate | 298,000 | |
Total | 1,564,000 | |
Average Remaining Balance | $ 11,000 | |
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] | ||
Real estate | $ 21,000 | |
Total | 551,000 | |
Average Remaining Balance | 20,000 | |
Equity Method Investments [Member] | Renewable Energy Projects [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equity method investments | $ 530,000 |
Our Portfolio - Analysis of P42
Our Portfolio - Analysis of Portfolio by Type of Obligor and Credit Quality (Parenthetical) (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($)Transactions | Dec. 31, 2016USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivable | $ 1,140,441 | $ 1,042,237 |
Number of transactions | Transactions | 125 | |
Financial receivable outstanding, Average Remaining Balance | $ 12,000 | |
Total aggregate remaining balance | 48,000 | |
Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financial receivable outstanding, Average Remaining Balance | 1,000 | |
Investment Grade By Independent Rating Agency [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivable | 10,000 | |
U.S. Federal Government [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivable | 525,000 | |
State, Local, Institutions [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivable | 211,000 | |
Commercial Investment Grade [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financial receivable outstanding, Average Remaining Balance | 9,000 | |
Commercial Investment Grade [Member] | Residential Solar Loan [Member] | Subsidiaries Of SunPower Corporation [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivable | $ 311,000 |
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, 2017USD ($) | |
Receivables [Abstract] | |
Financing receivables, maturities total | $ 1,140 |
Financing receivables, maturities in less than 1 year | 7 |
Financing receivables, maturities in 1-5 years | 25 |
Financing receivables, maturities in 5-10 years | 75 |
Financing receivables,maturities in more than 10 years | $ 1,033 |
Financing receivables, weighted average yield total | 5.20% |
Financing receivables, weighted average yield in less than 1 year | 8.40% |
Financing receivables, weighted average yield in 1-5 years | 5.30% |
Financing receivables, weighted average yield in 5-10 years | 5.00% |
Financing receivables, weighted average yield in more than 10 years | 5.20% |
Investments, maturities total | $ 126 |
Investments, maturities in less than 1 year | 0 |
Investments, maturities in 5-10 years | 0 |
Investments, maturities in 1-5 years | 1 |
Investments, maturities in more than 10 years | $ 125 |
Investments, weighted average yield total | 4.30% |
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 | 4.30% |
Our Portfolio - Components of R
Our Portfolio - Components of Real Estate Portfolio (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Real Estate Properties [Line Items] | ||
Accumulated amortization of lease intangibles | $ (4) | $ (2) |
Real Estate | 298 | 172 |
Land [Member] | ||
Real Estate Properties [Line Items] | ||
Real Estate | 222 | 145 |
Lease Intangibles [Member] | ||
Real Estate Properties [Line Items] | ||
Real Estate | $ 80 | $ 29 |
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) $ in Millions | Jun. 30, 2017USD ($) |
Intangible Liability Disclosure [Abstract] | |
From July 1, 2017 to December 31, 2017 | $ 1 |
2,018 | 2 |
2,019 | 2 |
2,020 | 2 |
2,021 | 2 |
2,022 | 2 |
Thereafter | 65 |
Net intangible assets | 76 |
From July 1, 2017 to December 31, 2017 | 8 |
2,018 | 17 |
2,019 | 17 |
2,020 | 17 |
2,021 | 17 |
2,022 | 17 |
Thereafter | 602 |
Total | $ 695 |
Our Portfolio - Schedule of Equ
Our Portfolio - Schedule of Equity Method Investments (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Feb. 28, 2017 | Oct. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | |||||
Projects investment amount | $ 551 | ||||
Strong Upwind Holdings I,II, and III LLC [Member] | Various [Member] | Renewable Energy Projects [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Projects investment amount | 195 | ||||
Strong Upwind Holdings IV, LLC [Member] | JP Morgan [Member] | Renewable Energy Projects [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Projects investment amount | $ 59 | ||||
Northern Frontier LLC [Member] | Various [Member] | Renewable Energy Projects [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Projects investment amount | 94 | ||||
Buckeye Wind Energy Class B Holdings LLC [Member] | Invenergy [Member] | Renewable Energy Projects [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Projects investment amount | $ 67 | ||||
MM Solar Holdings LLC [Member] | AES [Member] | Renewable Energy Projects [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Projects investment amount | $ 28 | ||||
Invenergy Gunsight Mountain Holdings LLC [Member] | Invenergy [Member] | Renewable Energy Projects [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Projects investment amount | $ 36 | ||||
Other Transactions [Member] | Various [Member] | Renewable Energy Projects [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Projects investment amount | $ 72 |
Our Portfolio - Schedule of E47
Our Portfolio - Schedule of Equity Method Investments (Parenthetical) (Detail) $ in Millions | 1 Months Ended |
Jun. 30, 2017USD ($) | |
JP Morgan [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Acquisition of remaining interest in holding company | $ 22 |
Our Portfolio - Summary of Outs
Our Portfolio - Summary of Outstanding Deferred Funding Obligations to be Paid (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
July 1, 2017 to December 31, 2017 | $ 49,000 | |
2,018 | 103,000 | |
2,019 | 73,000 | |
2,020 | 36,000 | |
2,021 | 12,000 | |
Total Deferred Funding Obligations | $ 273,447 | $ 170,892 |
Credit Facilities - Additional
Credit Facilities - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Line of Credit Facility [Line Items] | |
Unamortized issuance costs | $ 5,000,000 |
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% |
Debt issuance cost | $ 21,000,000 |
Qualifying Project Finance Loans (PF Facility) [Member] | |
Line of Credit Facility [Line Items] | |
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 | The 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% |
Base Rate [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | |
Line of Credit Facility [Line Items] | |
Floating interest rate | 0.00% |
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% |
Loans Payable [Member] | |
Line of Credit Facility [Line Items] | |
Maturity date | Sep. 20, 2017 |
Security provided for debt | $ 128,000,000 |
Additional interest rate on debt default | 2.00% |
Debt issuance cost | $ 1,400,000 |
Loans Payable [Member] | Through April 9, 2017 [Member] | |
Line of Credit Facility [Line Items] | |
Short-term loans borrowed | $ 102,000,000 |
Loans Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | Through April 9, 2017 [Member] | |
Line of Credit Facility [Line Items] | |
London Interbank Offered Rate | Three month LIBOR plus 200 basis points |
Floating interest rate | 2.00% |
Loans Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | April 9, 2017 [Member] | |
Line of Credit Facility [Line Items] | |
London Interbank Offered Rate | Three month LIBOR plus 275 basis points |
Floating interest rate | 2.75% |
Loans Payable [Member] | Thereafter [Member] | |
Line of Credit Facility [Line Items] | |
Additional interest rate on debt default | 5.00% |
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 |
Maturity month and year | 2019-07 |
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% |
Credit Facilities - Schedule of
Credit Facilities - Schedule of Additional Detail on Credit Facility (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 392,482 | $ 283,346 |
Senior Secured Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding balance | 290,000 | 283,000 |
Value of collateral pledged to credit facility | $ 421,000 | $ 471,000 |
Weighted average short-term borrowing rate | 2.90% | 2.30% |
Credit Facilities - Summary of
Credit Facilities - Summary of Required Covenant Included in Loan Agreements (Detail) - Covenants Threshold [Member] | Jun. 30, 2017USD ($) |
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:(1) | 4 |
Nonrecourse Debt - Schedule of
Nonrecourse Debt - Schedule of Outstanding Nonrecourse Asset-Backed Debt and Bank Loans (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Debt issuance costs | $ (21) | |
Value of Assets Pledged, Equity interest | $ 34 | $ 41 |
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 | 2046-12 | |
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 2015-1A [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 Sustainable Yield Bond 2015-1B [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 5.41% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2034-10 | |
2017 Credit Agreement [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 3.47% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2024-06 | |
HASI SYB Loan Agreement 2015-2 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 5.38% | |
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 | $ 127 | |
HASI SYB Loan Agreement 2016-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 4.23% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2021-11 | |
Nonrecourse Asset-Backed Debt, Anticipated Balance at Maturity | $ 101 | |
HASI SYB Trust 2016-2 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 4.35% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2037-04 | |
Asset-Backed Nonrecourse Debt Agreement [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Other nonrecourse debt | $ 87 | 84 |
Debt issuance costs | (21) | (17) |
Outstanding Balance | 922 | 692 |
Value of Assets Pledged, Equity interest | $ 221 | 81 |
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 | $ 73 | 75 |
Value of Assets Pledged, Equity interest | $ 91 | 93 |
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 | $ 89 | 90 |
Value of Assets Pledged, Equity interest | $ 87 | 97 |
Description of Assets Pledged | Equity interest in Strong Upwind Holdings I, LLC | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI Sustainable Yield Bond 2015-1A [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 96 | 97 |
Nonrecourse Asset-Backed Debt, Interest Rate | 4.28% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2034-10 | |
Value of Assets Pledged, Equity interest | $ 138 | 138 |
Description of Assets Pledged | Financing receivables, real estate and real estate intangibles | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI Sustainable Yield Bond 2015-1B [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 14 | |
Nonrecourse Asset-Backed Debt, Interest Rate | 5.00% | |
Nonrecourse Asset-Backed Debt, Maturity Date | 2034-10 | |
Value of Assets Pledged, Equity interest | $ 138 | |
Description of Assets Pledged | Class B Bond of HASI Sustainable Yield Bond 2015-1 | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI SYB Loan Agreement 2015-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | 74 | |
Value of Assets Pledged, Equity interest | 96 | |
Description of Assets Pledged | Equity interest in Strong Upwind Holdings II and III, LLC, related interest rate swap | |
Asset-Backed Nonrecourse Debt Agreement [Member] | 2017 Credit Agreement [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 196 | |
Value of Assets Pledged, Equity interest | $ 262 | |
Description of Assets Pledged | Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier, LLC | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI SYB Loan Agreement 2015-2 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 37 | 41 |
Value of Assets Pledged, Equity interest | $ 67 | 70 |
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 | $ 147 | 150 |
Value of Assets Pledged, Equity interest | $ 173 | 175 |
Description of Assets Pledged | Residential solar financing receivables, related interest rate swaps | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI SYB Loan Agreement 2016-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 119 | 98 |
Value of Assets Pledged, Equity interest | $ 139 | $ 114 |
Description of Assets Pledged | Residential solar financing receivables, related interest rate swaps | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI SYB Trust 2016-2 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 85 | |
Value of Assets Pledged, Equity interest | $ 91 | |
Description of Assets Pledged | Financing receivables |
Nonrecourse Debt - Schedule o53
Nonrecourse Debt - Schedule of Outstanding Nonrecourse Asset-Backed Debt and Bank Loans (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Asset-Backed Nonrecourse Debt Agreement [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total collateral pledged against our nonrecourse debt | $ 1,269 | $ 864 |
Nonrecourse Debt - Additional I
Nonrecourse Debt - Additional Information (Detail) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | Jan. 31, 2017 |
Debt Instrument [Line Items] | ||||
Nonrecourse Asset-Backed Debt, Aggregate Principal Amount | $ 921,780,000 | $ 692,091,000 | $ 921,780,000 | |
Ineffectiveness recorded on designated hedges | 0 | 0 | ||
SunPower Corporation [Member] | Residential Solar Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | $ 5,000,000 | 5,000,000 | ||
Payment of principal and interest on loan | $ 1,000,000 | |||
HASI Sustainable Yield Bond 2015-1A [Member] | ||||
Debt Instrument [Line Items] | ||||
Nonrecourse Asset-Backed Debt, Interest Rate | 4.28% | 4.28% | ||
Nonrecourse Asset-Backed Debt, Maturity Date | 2034-10 | |||
HASI Sustainable Yield Bond 2015-1B [Member] | ||||
Debt Instrument [Line Items] | ||||
Nonrecourse Asset-Backed Debt, Interest Rate | 5.41% | 5.41% | ||
Nonrecourse Asset-Backed Debt, Maturity Date | 2034-10 | |||
Asset-Backed Nonrecourse Debt Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Balance | $ 922,000,000 | 692,000,000 | $ 922,000,000 | |
Asset-Backed Nonrecourse Debt Agreement [Member] | HASI Sustainable Yield Bond 2015-1A [Member] | ||||
Debt Instrument [Line Items] | ||||
Nonrecourse Asset-Backed Debt, Aggregate Principal Amount | $ 101,000,000 | $ 101,000,000 | ||
Nonrecourse Asset-Backed Debt, Interest Rate | 4.28% | 4.28% | ||
Nonrecourse Asset-Backed Debt, Maturity Date | 2034-10 | |||
Outstanding Balance | $ 96,000,000 | $ 97,000,000 | $ 96,000,000 | |
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 | $ 18,000,000 | $ 14,000,000 | |
Nonrecourse Asset-Backed Debt, Interest Rate | 5.00% | 5.00% | ||
Nonrecourse Asset-Backed Debt, Maturity Date | 2034-10 | |||
Outstanding Balance | $ 14,000,000 | $ 14,000,000 |
Nonrecourse Debt - Schedule o55
Nonrecourse Debt - Schedule of Interest Rate Swaps which are Designated as Cash Flow Hedges (Detail) - Cash Flow Hedging [Member] - Interest Rate Swap [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | ||
Notional Value | $ 400,000,000 | $ 431,000,000 |
Fair Value | $ (1,000,000) | 1,000,000 |
HASI SYB Loan Agreement 2015-1 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Rate | 1.55% | |
Notional Value | 67,000,000 | |
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 | $ 36,000,000 | 37,000,000 |
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 | $ (400,000) | (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 | 119,000,000 |
Fair Value | $ 200,000 | 1,000,000 |
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 | |
HASI SYB Loan Agreement 2016-1 A [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Rate | 1.88% | |
Notional Value | $ 109,000,000 | 72,000,000 |
Fair Value | $ (100,000) | 200,000 |
HASI SYB Loan Agreement 2016-1 A [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2016-11 | |
HASI SYB Loan Agreement 2016-1 A [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2021-11 | |
HASI SYB Loan Agreement 2016-1 A [Member] | Base Rate [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Base Rate | 3 month Libor | |
HASI SYB Loan Agreement 2016-1 B [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedged Rate | 2.73% | |
Notional Value | $ 107,000,000 | $ 107,000,000 |
Fair Value | $ (700,000) | |
HASI SYB Loan Agreement 2016-1 B [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2021-11 | |
HASI SYB Loan Agreement 2016-1 B [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity | 2032-10 | |
HASI SYB Loan Agreement 2016-1 B [Member] | Base Rate [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Base Rate | 3 month Libor |
Nonrecourse Debt - Schedule o56
Nonrecourse Debt - Schedule of Minimum Maturities of Nonrecourse Debt (Detail) $ in Millions | Jun. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
Maturity of Nonrecourse debt, July 1, 2017 to December 31, 2017 | $ 37 |
Maturity of Nonrecourse debt, 2018 | 47 |
Maturity of Nonrecourse debt, 2019 | 105 |
Maturity of Nonrecourse debt, 2020 | 176 |
Maturity of Nonrecourse debt, 2021 | 143 |
Maturity of Nonrecourse debt, 2022 | 18 |
Maturity of Nonrecourse debt, Thereafter | 417 |
Total minimum maturities | 943 |
Deferred financing costs, net | (21) |
Total Nonrecourse Debt | $ 922 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (expense) benefit | $ 83 | $ 36 | $ 114 | $ 82 |
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% |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared by Board of Directors (Detail) - $ / shares | Jul. 13, 2017 | Apr. 13, 2017 | Jan. 12, 2017 | Oct. 13, 2016 | Jul. 14, 2016 | Apr. 07, 2016 | Jun. 30, 2017 | |
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 | |||||||
Amount per share | $ 0.30 | |||||||
10/05/16 Record Date [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Announced Date | Sep. 15, 2016 | |||||||
Record Date | Oct. 5, 2016 | |||||||
Pay Date | Oct. 13, 2016 | |||||||
Amount per share | $ 0.30 | |||||||
12/29/16 Record Date [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Announced Date | Dec. 13, 2016 | |||||||
Record Date | [1] | Dec. 29, 2016 | ||||||
Pay Date | Jan. 12, 2017 | |||||||
Amount per share | $ 0.33 | |||||||
4/05/2017 Record Date [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Announced Date | Mar. 15, 2017 | |||||||
Record Date | Apr. 5, 2017 | |||||||
Pay Date | Apr. 13, 2017 | |||||||
Amount per share | $ 0.33 | |||||||
7/06/2017 Record Date [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Announced Date | Jun. 1, 2017 | |||||||
Record Date | Jul. 6, 2017 | |||||||
Pay Date | Jul. 13, 2017 | |||||||
7/06/2017 Record Date [Member] | Subsequent Event [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Amount per share | $ 0.33 | |||||||
[1] | This dividend was treated as a distribution in 2017 for tax purposes. |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Public Offerings and ATM (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Net proceeds from follow-on from public offering | $ 98,399 | $ 91,516 |
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 | |
11/09/2016 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 | Nov. 9, 2016 | |
Public offerings of common stock, Shares Issued | 4,025 | |
Public offerings of common stock, Price Per Share | $ 19.28 | |
Net proceeds from follow-on from public offering | $ 77,000 | |
12/13/16 to 12/29/16 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 | 407 | |
Public offerings of common stock, Price Per Share | $ 19.47 | |
Net proceeds from follow-on from public offering | $ 8,000 | |
12/13/16 to 12/29/16 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 | Dec. 13, 2016 | |
12/13/16 to 12/29/16 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 | Dec. 29, 2016 | |
1/20/17 to 2/2/17 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 | 197 | |
Public offerings of common stock, Price Per Share | $ 19.18 | |
Net proceeds from follow-on from public offering | $ 4,000 | |
1/20/17 to 2/2/17 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 | Jan. 20, 2017 | |
1/20/17 to 2/2/17 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 | Feb. 2, 2017 | |
3/10/2017 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 | Mar. 10, 2017 | |
Public offerings of common stock, Shares Issued | 3,450 | |
Public offerings of common stock, Price Per Share | $ 18.73 | |
Net proceeds from follow-on from public offering | $ 64,000 | |
5/17/17 to 6/22/17 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 | 1,376 | |
Public offerings of common stock, Price Per Share | $ 22.71 | |
Net proceeds from follow-on from public offering | $ 31,000 | |
5/17/17 to 6/22/17 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 17, 2017 | |
5/17/17 to 6/22/17 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. 22, 2017 |
Equity - Additional Information
Equity - Additional Information (Detail) - Restricted stock and restricted stock units [Member] - 2013 Plan [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation expense | $ 3 | $ 3 | $ 6 | $ 5 |
Unrecognized compensation expense | $ 17 | $ 17 | ||
Weighted-average term in which unrecognized compensation expense is expected to be recognized | 2 years | |||
Employees and Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares awarded | 707,648 | |||
Employees and Directors [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted common shares vesting years | 2,017 | |||
Employees and Directors [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted common shares vesting years | 2,020 |
Equity - Summary of Unvested Sh
Equity - Summary of Unvested Shares of Restricted Common Stock (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Restricted Incentive [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, Restricted Shares of Common Stock/Units | 1,181,672 | 1,248,069 |
Granted, Restricted Shares of Common Stock/Units | 451,614 | 661,055 |
Vested, Restricted Shares of Common Stock/Units | 216,657 | 716,264 |
Forfeited, Restricted Shares of Common Stock/Units | 11,188 | |
Ending Balance, Restricted Shares of Common Stock/Units | 1,416,629 | 1,181,672 |
Beginning Balance, Weighted Average Share Price | $ 17.76 | $ 15.16 |
Granted, Weighted Average Share Price | 19.04 | 18.62 |
Vested, Weighted Average Share Price | 14.12 | 14.03 |
Forfeited, Weighted Average Share Price | 17.25 | |
Ending Balance, Weighted Average Share Price | $ 18.72 | $ 17.76 |
Beginning Balance, Fair Value of Restricted Shares of Common Stock | $ 21 | $ 18.9 |
Granted, Fair Value of Restricted Shares of Common Stock | 8.6 | 12.3 |
Vested, Fair Value of Restricted Shares of Common Stock | (3.1) | (10) |
Forfeited, Fair Value of Restricted Shares of Common Stock | (0.2) | |
Ending Balance, Fair Value of Restricted Shares of Common Stock | $ 26.5 | $ 21 |
Restricted stock and restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Restricted Shares of Common Stock/Units | 256,034 | |
Ending Balance, Restricted Shares of Common Stock/Units | 256,034 | |
Granted, Weighted Average Share Price | $ 18.99 | |
Ending Balance, Weighted Average Share Price | $ 18.99 | |
Granted, Fair Value of Restricted Shares of Common Stock | $ 4.9 | |
Ending Balance, Fair Value of Restricted Shares of Common Stock | $ 4.9 |
Earnings per Share of Common 62
Earnings per Share of Common Stock -Schedule of Computation of Basic and Diluted Earnings Per Common Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net income attributable to controlling stockholders and participating securities | $ 12,340 | $ 3,747 | $ 19,539 | $ 6,916 |
Less: Dividends paid on participating securities | (400) | (400) | (900) | (900) |
Undistributed earnings attributable to participating securities | 0 | 0 | 0 | 0 |
Net income attributable to controlling stockholders | $ 11,900 | $ 3,400 | $ 18,600 | $ 6,000 |
Denominator: | ||||
Weighted-average number of common shares - basic | 50,573,996 | 37,737,026 | 49,044,051 | 37,376,618 |
Weighted-average number of common shares - diluted | 50,573,996 | 37,737,026 | 49,044,051 | 37,376,618 |
Basic earnings per common share | $ 0.23 | $ 0.09 | $ 0.38 | $ 0.16 |
Diluted earnings per common share | $ 0.23 | $ 0.09 | $ 0.38 | $ 0.16 |
Other Information: | ||||
Weighted-average number of OP units | 284,992 | 284,992 | 284,992 | 284,992 |
Unvested restricted common stock outstanding as of | 1,416,629 | 1,330,026 | ||
Unvested restricted stock units outstanding as of | 256,034 | 0 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity [Abstract] | ||||
Income (loss) from equity method investments | $ 8,377 | $ 1,076 | $ 12,548 | $ 1,346 |
Equity Method Investments - Sum
Equity Method Investments - 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 | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |||
Current Assets | $ 3 | $ 3 | |
Total Assets | 115 | 99 | |
Current Liabilities | 4 | 4 | |
Total Liabilities | 38 | 39 | |
Members' Equity | 77 | $ 60 | |
Revenue | 3 | $ 3 | |
Income from Continuing Operations | 1 | 0 | |
Net income | $ 1 | $ 0 |