Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HASI | |
Entity Registrant Name | Hannon Armstrong Sustainable Infrastructure Capital, Inc. | |
Entity Central Index Key | 0001561894 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 63,861,385 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Equity method investments | $ 458,916 | $ 471,044 |
Government receivables | 463,715 | 497,464 |
Commercial receivables | 453,828 | 447,196 |
Real estate | 364,582 | 365,370 |
Investments | 177,636 | 169,793 |
Cash and cash equivalents | 62,091 | 21,418 |
Other assets | 206,102 | 182,628 |
Total Assets | 2,186,870 | 2,154,913 |
Liabilities: | ||
Accounts payable, accrued expenses and other | 33,266 | 36,509 |
Deferred funding obligations | 66,350 | 72,100 |
Credit facilities | 283,381 | 258,592 |
Non-recourse debt (secured by assets of $1,041 million and $1,105 million, respectively) | 814,662 | 834,738 |
Convertible notes | 147,150 | 148,451 |
Total Liabilities | 1,344,809 | 1,350,390 |
Stockholders’ Equity: | ||
Preferred stock, par value $0.01 per share, 50,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, par value $0.01 per share, 450,000,000 shares authorized, 62,875,638 and 60,510,086 shares issued and outstanding, respectively | 629 | 605 |
Additional paid in capital | 1,009,346 | 965,384 |
Accumulated deficit | (170,953) | (163,205) |
Accumulated other comprehensive income (loss) | (375) | (1,684) |
Non-controlling interest | 3,414 | 3,423 |
Total Stockholders’ Equity | 842,061 | 804,523 |
Total Liabilities and Stockholders’ Equity | $ 2,186,870 | $ 2,154,913 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | ||
Interest income, receivables | $ 15,520 | $ 12,849 |
Interest income, investments | 1,884 | 1,541 |
Rental income | 6,476 | 5,941 |
Gain on sale of receivables and investments | 6,839 | 6,256 |
Fee income | 2,174 | 1,321 |
Total revenue | 32,893 | 27,908 |
Expenses | ||
Interest expense | 15,430 | 18,711 |
Compensation and benefits | 7,439 | 5,321 |
General and administrative | 3,092 | 2,801 |
Total expenses | 25,961 | 26,833 |
Income before equity method investments | 6,932 | 1,075 |
Income (loss) from equity method investments | 4,506 | (2,285) |
Income (loss) before income taxes | 11,438 | (1,210) |
Income tax (expense) benefit | 2,270 | (18) |
Net income (loss) | 13,708 | (1,228) |
Net income (loss) attributable to non-controlling interest holders | 61 | (5) |
Net income (loss) attributable to controlling stockholders | $ 13,647 | $ (1,223) |
Basic earnings per common share (in usd per share) | $ 0.22 | $ (0.03) |
Diluted earnings per common share (in usd per share) | $ 0.21 | $ (0.03) |
Weighted average common shares outstanding — basic (in shares) | 61,748,906 | 51,710,910 |
Weighted average common shares outstanding — diluted (in shares) | 62,365,271 | 51,710,910 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Nonrecourse notes, secured by assets | $ 1,041 | $ 1,105 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 62,875,638 | 60,510,086 |
Common stock, shares outstanding (in shares) | 62,875,638 | 60,510,086 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 13,708 | $ (1,228) |
Unrealized gain (loss) on available-for-sale securities, net of tax benefit (provision) of ($0.3) million in 2019 and $0.0 million 2018 | 1,999 | (2,728) |
Unrealized gain (loss) on interest rate swaps, net of tax benefit (provision) of $0.0 million in 2019 and 2018 | (684) | 5,897 |
Comprehensive income (loss) | 15,023 | 1,941 |
Less: Comprehensive income (loss) attributable to non-controlling interest holders | 69 | 12 |
Comprehensive income (loss) attributable to controlling stockholders | $ 14,954 | $ 1,929 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) on interest rate swaps, tax benefit (provision) | $ (0.3) | $ 0 |
Unrealized gain (loss) on available-for-sale securities, tax (benefit) provision | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-Controlling Interest [Member] |
Beginning Balance (in shares) at Dec. 31, 2017 | 51,665 | |||||
Beginning Balance at Dec. 31, 2017 | $ 642,781 | $ 517 | $ 770,983 | $ (131,251) | $ (1,065) | $ 3,597 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (1,228) | (1,223) | (5) | |||
Unrealized gain (loss) on available-for-sale securities | (2,728) | (2,714) | (14) | |||
Unrealized gain (loss) on interest rate swaps, net of tax benefit (provision) of $0.0 million in 2019 and 2018 | 5,897 | 5,865 | 32 | |||
Issued shares of common stock (in shares) | 5 | |||||
Issued shares of common stock | 43 | 43 | ||||
Equity-based compensation | 1,748 | 1,739 | 9 | |||
Issuance (repurchase) of vested equity-based compensation shares (in shares) | 157 | |||||
Issuance (repurchase) of vested equity-based compensation shares | (1,822) | $ 1 | (1,823) | |||
Redemption of OP units | (67) | (20) | (47) | |||
Dividends and distributions | (17,672) | (17,578) | (94) | |||
Ending Balance (in shares) at Mar. 31, 2018 | 51,827 | |||||
Ending Balance at Mar. 31, 2018 | 626,952 | $ 518 | 770,922 | (150,052) | 2,086 | 3,478 |
Beginning Balance (in shares) at Dec. 31, 2018 | 60,510 | |||||
Beginning Balance at Dec. 31, 2018 | 804,523 | $ 605 | 965,384 | (163,205) | (1,684) | 3,423 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 13,708 | 13,647 | 61 | |||
Unrealized gain (loss) on available-for-sale securities | 1,999 | 1,990 | 9 | |||
Unrealized gain (loss) on interest rate swaps, net of tax benefit (provision) of $0.0 million in 2019 and 2018 | (684) | (681) | (3) | |||
Issued shares of common stock (in shares) | 2,068 | |||||
Issued shares of common stock | 46,812 | $ 21 | 46,791 | |||
Equity-based compensation | 3,613 | 3,596 | 17 | |||
Issuance (repurchase) of vested equity-based compensation shares (in shares) | 298 | |||||
Issuance (repurchase) of vested equity-based compensation shares | (6,422) | $ 3 | (6,425) | |||
Dividends and distributions | (21,488) | (21,395) | (93) | |||
Ending Balance (in shares) at Mar. 31, 2019 | 62,876 | |||||
Ending Balance at Mar. 31, 2019 | $ 842,061 | $ 629 | $ 1,009,346 | $ (170,953) | $ (375) | $ 3,414 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ 13,708 | $ (1,228) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,136 | 1,116 |
Amortization of deferred financing costs | 1,673 | 2,615 |
Equity-based compensation | 3,578 | 1,845 |
Equity method investments | 2,024 | 9,052 |
Non-cash gain on securitization | (6,610) | (7,256) |
Changes in receivables held-for-sale | 0 | 3,243 |
Changes in accounts payable and accrued expenses | (8,241) | (866) |
Other | (3,815) | (3,174) |
Net cash provided by (used in) operating activities | 3,453 | 5,347 |
Cash flows from investing activities | ||
Equity method investments | (10,448) | 0 |
Equity method distributions received | 20,530 | 23,387 |
Purchases of receivables | (22,430) | (3,441) |
Proceeds from sales of receivables | 26,919 | 0 |
Principal collections from receivables | 21,345 | 10,275 |
Purchases of investments | (6,809) | (3,826) |
Principal collections from investments | 1,325 | 744 |
Funding of escrow accounts | (11,869) | (9,655) |
Withdrawal from escrow accounts | 7,945 | 8,647 |
Other | 69 | (297) |
Net cash provided by (used in) investing activities | 26,577 | 25,834 |
Cash flows from financing activities | ||
Proceeds from credit facilities | 26,500 | 0 |
Principal payments on credit facilities | (1,925) | 0 |
Proceeds from issuance of non-recourse debt | 13,923 | 30,952 |
Principal payments on non-recourse debt | (35,180) | (28,787) |
Payments on deferred funding obligations | (5,759) | (16,993) |
Net proceeds of common stock issuances | 46,388 | 0 |
Payments of dividends and distributions | (20,518) | (17,606) |
Other | (6,671) | (367) |
Net cash provided by (used in) financing activities | 16,758 | (32,801) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 46,788 | (1,620) |
Cash, cash equivalents, and restricted cash at beginning of period | 59,353 | 118,177 |
Cash, cash equivalents, and restricted cash at end of period | 106,141 | 116,557 |
Interest paid | 14,882 | 17,427 |
Non-cash changes in residual assets (investing activity) | $ (6,636) | $ (7,761) |
The Company
The Company | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company Hannon Armstrong Sustainable Infrastructure Capital, Inc. (the “Company”) focuses on making investments in climate change solutions by providing capital to the leading companies in the energy efficiency, renewable energy and other sustainable infrastructure markets. Our goal is to generate attractive returns for our stockholders by investing in a diversified portfolio of investments that generate long-term, recurring and predictable cash flows from proven commercial technologies. The Company and its subsidiaries are hereafter referred to as “we,” “us,” or “our.” Our investments take various forms, including equity, joint ventures, lending or other financing transactions, as well as land ownership and typically benefit from contractually committed high credit quality obligors. We also generate on-going fees through gain-on-sale securitization transactions, advisory services and asset management. We refer to the income producing assets that we hold on our balance sheet as our “Portfolio.” Our Portfolio may include: • Equity in either preferred or common structures in unconsolidated entities; • Government and commercial receivables, such as loans for renewable energy and energy efficiency projects; • Real estate, such as land or other assets leased for use by sustainable infrastructure projects typically under long-term leases; and • Investments in debt securities of renewable energy or energy efficiency projects. We finance our business through cash on hand, borrowings under credit facilities and debt transactions, asset-backed securitization transactions and equity issuances. We also generate fee income through securitizations and syndications, by providing broker/dealer services and by managing and servicing assets owned by third parties. Some of our subsidiaries are special purpose entities that are formed for specific operations associated with investing in 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 real estate investment trust (“REIT”) and also intend to continue to operate our business in a manner that will maintain our exemption from registration as an investment company under the 1940 Act, 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 | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“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 our annual report on Form 10-K for the year ended December 31, 2018 , as filed with the SEC. In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations and cash flows have been included. Our results of operations for the quarterly period ended March 31, 2019 , 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. The consolidated financial statements include our accounts and controlled subsidiaries, including the Operating Partnership. All significant intercompany transactions and balances have been eliminated in consolidation. Following the guidance for non-controlling interests in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation ("ASC 810") , references in this report to our earnings per share and our net income and stockholders’ equity attributable to common stockholders do not include amounts attributable to non-controlling interests. Consolidation and Equity Method Investments We account for our investments in entities that are considered voting interest entities or variable interest entities (“VIEs”) under ASC 810 and assess whether we should consolidate these entities on an ongoing basis. We have established various special purpose entities or securitization trusts for the purpose of securitizing certain receivables or other debt investments which are not consolidated in our financial statements as described in Securitization of Receivables below. Substantially all of the activities of the special purpose entities that are formed for the purpose of holding our government and commercial 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. Our renewable energy projects are typically owned in holding companies (using limited liability companies ("LLCs") taxed as partnerships) where we partner with either the operator of the project or other institutional investors. We share in the cash flows, income, and tax attributes according to a negotiated schedule (which typically does not correspond with our ownership percentages) and we typically 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. Once our preferred return, if applicable, is achieved, the partnership “flips” and the operator of 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, as we do not direct the significant activities of those entities in which we invest. Our maximum exposure to loss associated with the continued operation of the underlying projects in 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 LLC agreement, less distributions received. For the LLC agreements which 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 beginning and the end 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 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”). Any difference between the amount of our investment and the amount of underlying equity in net assets is generally amortized over the life of the assets and liabilities to which the difference relates. Cash distributions received from these equity method investments are classified as operating activities to the extent of cumulative HLBV earnings in our consolidated statements of 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 that we have determined to be a voting interest entity. This investment entitles us to receive an equal percentage of both cash distributions and profit and loss under the terms of the LLC operating agreement. The investment is accounted for under the equity method of accounting with our portion of income being recognized in income (loss) from equity method investments in the period in which the income is earned. Cash distributions received from this equity method investment are classified as operating activities to the extent of cumulative earnings in our consolidated statements of cash flows. Our initial investment and additional cash distributions beyond that which are classified as operating activities are classified as investing activities in our consolidated statements of cash flows. We evaluate on a quarterly basis whether our investments accounted for using the equity method have an other than temporary impairment (“OTTI”). An OTTI occurs when the estimated fair value of an investment is below the carrying value and the difference is determined to not be recoverable. This evaluation requires significant judgment regarding, but not limited to, the severity and duration of the impairment; the ability and intent to hold the securities until recovery; financial condition, liquidity, and near-term prospects of the issuer; specific events; and other factors. Government and Commercial Receivables Government and commercial receivables (“receivables”), include project loans and receivables. These receivables are separately presented in our balance sheet to illustrate the differing nature of the credit risk related to these assets. Unless otherwise noted, we generally have the ability and intent to hold our receivables for the foreseeable future and thus they are classified as held for investment. Our ability and intent to hold certain 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 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. Receivables that are held for investment are carried, unless deemed impaired, at amortized cost, net of any unamortized acquisition premiums or discounts and include origination and acquisition costs, as applicable. Our initial investment and principal repayments of these receivables are classified as investing activities and the interest collected is classified as operating activities in our consolidated statements of cash flows. 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 receivables that we intend to sell at origination are classified as operating activities in our consolidated statements of cash flows, otherwise the net purchases and proceeds are classified as investing activities. Interest collected is classified as an operating activity in our consolidated statements of cash flows. Certain of our receivables may include the ability to defer required interest payments in exchange for increasing the receivable balance at the borrower's option. We generally accrue this paid-in-kind ("PIK") interest when collection is expected, and cease accruing PIK interest if there is insufficient value to support the accrual or we expect that any portion of the principal or interest due is not collectible. We evaluate our 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 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 receivable delinquent or impaired and place the receivable on non-accrual status and cease recognizing income from that receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a 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 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 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 ratio, 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 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 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 from the collateral. We charge off receivables against the allowance, if any, when we determine the unpaid principal balance is uncollectible, net of recovered amounts. 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. Certain real estate transactions may be characterized as "failed sale-leaseback" transactions as defined under ASC Topic 842 ("Topic 842"), Leases , and thus are accounted for similar to our Commercial Receivables as described above in Government and Commercial Receivables. For our other real estate lease transactions that are classified as operating leases, the 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, if any, related to the ongoing operation of leases where we are the lessor, are charged to operations as incurred. Our initial investment is classified as investing activities and income collected for rental income is classified as operating activities in our consolidated statements of cash flows. When our real estate transactions are treated as an asset acquisition with an operating lease, we typically record our real estate purchases as asset acquisitions that are recorded at cost, including acquisition and closing costs, which is allocated to each tangible and intangible asset acquired on a relative fair value basis. 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 typically determined by management based on appraisals by a qualified appraiser. In determining the fair value of the identified intangibles of an acquired property, above-market and below-market in-place lease values are valued 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, in which case the amortization would extend through the renewal period. If a lease were to be terminated, all unamortized amounts relating to that lease would be written off. Investments Investments are debt securities that meet the criteria of ASC 320, Investments-Debt and Equity Securities . We have designated our debt securities as available-for-sale and carry these securities at fair value on our balance sheet. Unrealized gains and losses, to the extent not considered to have an OTTI, on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income (“AOCI”) in equity on our balance sheet. Our initial investment and principal repayments of these investments are classified as investing activities and the interest collected is classified as operating activities in our consolidated statements of cash flows. 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 security’s 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 interest income using the effective interest method. Securitization of Receivables We have established various special purpose entities or securitization trusts for the purpose of securitizing certain receivables or investments. We determined that the trusts used in securitizations are VIEs, as defined in ASC 810. We typically serve as primary or master servicer of these trusts; however, as the servicer, we do not have the power to make significant decisions impacting the performance of the trusts. Based on an analysis of the structure of the trusts, we have concluded that we are not the primary beneficiary of the trusts as we do not have power over the trusts’ significant activities. Therefore, we do not consolidate these trusts in our consolidated financial statements. We account for transfers of receivables or investments to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing , when we have concluded the transferred receivables have been isolated from the transferor (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership) and we have surrendered control over the transferred receivables. We have received true-sale-at-law opinions for all of our securitization trust structures and non-consolidation legal opinions for all but one legacy securitization trust structure that support our conclusion regarding the transferred receivables. When we sell receivables in securitizations, we generally retain interests in the form of servicing rights and residual assets, which we refer to as securitization assets. Gain or loss on the sale of receivables is calculated based on the excess of the proceeds received from the securitization (less any transaction costs) plus any retained interests obtained over the cost basis of the receivables sold. For retained interests, we generally estimate fair value based on the present value of future expected cash flows using our best estimates of the key assumptions of anticipated losses, prepayment rates, and current market discount rates commensurate with the risks involved. Cash flows related to our securitizations at origination are classified as operating activities in our consolidated statements of cash flows. 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 accounted for 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 the 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. Convertible Notes We have issued convertible senior notes that are accounted for in accordance with ASC 470-20, Debt with Conversion and Other Options , and ASC 815, Derivatives and Hedging ("ASC 815") . Under ASC 815, issuers of certain convertible debt instruments are generally required to separately account for the conversion option of the convertible debt instrument as either a derivative or equity, unless it meets the scope exemption for contracts indexed to, and settled in, an issuer’s own equity. Since this conversion option is both indexed to our equity and can only be settled in our common stock, we have met the scope exemption, and therefore, we are not separately accounting for the embedded conversion option. The initial issuance and any principal repayments are classified as financing activities and interest payments are classified as operating activities in our consolidated statements of cash flows. 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. We also have taxable REIT subsidiaries ("TRSs") which are taxed separately, and which will generally be subject to U.S. federal, state, and local income taxes as well as taxes of foreign jurisdictions, if any. 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 REIT's net taxable income before dividends paid, excluding capital gains, to our stockholders. 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. We account for income taxes under ASC 740, Income Taxes ("ASC 740") for our TRSs using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. We evaluate any deferred tax assets for valuation allowances based on an assessment of available evidence including sources of taxable income, prior years taxable income, any existing taxable temporary differences and our future investment and business plans that may give rise to taxable income. We treat any tax credits we receive from our equity investments in renewable energy projects as reductions of federal income taxes of the year in which the credit arises. We apply ASC 740 with respect to how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. This guidance requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more likely than not” to be sustained by the applicable tax authority. We are required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes U.S. federal and certain states. Equity-Based Compensation In 2013, we adopted the 2013 Hannon Armstrong Sustainable Infrastructure Capital, Inc. Equity Incentive Plan (as amended, 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. Certain awards earned under the plan are based on achieving various performance targets, which are generally earned between 0% and 200% of the initial target, depending on the extent to which the performance target is met. We record compensation expense for grants made under the 2013 Plan in accordance with ASC 718, Compensation-Stock Compensation . We record compensation expense for unvested grants that vest solely based on service conditions on a straight-line basis over the vesting period of the entire award based upon the fair market value of the grant on the date of grant. Fair market value for restricted common stock is based on our share price on the date of grant. For awards where the vesting is contingent upon achievement of certain performance targets, compensation expense is measured based on the fair market value on the grant date and is recorded over the requisite service period (which includes the performance period). Actual performance results at the end of the performance period determines the number of shares that will ultimately be awarded. We have also issued awards where the vesting is contingent upon service being provided for a defined period and certain market conditions being met. The fair value of these awards, as measured at the grant date, is recognized over the requisite service period, even if the market conditions are not met. The grant date fair value of these awards was developed by an independent appraiser using a Monte Carlo simulation. Earnings Per Share We compute earnings per share of common stock in accordance with ASC 260, Earnings Per Share . Basic earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested grants under the 2013 Plan, if applicable) by the weighted-average number of shares of common stock outstanding during the period excluding the weighted average number of unvested grants under the 2013 Plan, if applicable (“participating securities” as defined in Note 12). Diluted earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested grants under the 2013 Plan, if applicable) by the weighted-average number of shares of common stock outstanding during the period plus other potential common stock instruments if they are dilutive. Other potentially dilutive common stock instruments include our unvested restricted stock, other equity-based awards, and convertible notes. The restricted stock and other equity-based awards are included if they are dilutive using the treasury stock method. The treasury stock method assumes that theoretical proceeds received for future service provided is used to purchase treasury stock at our stock’s average market price, which is deducted from the amount of stock included in the calculation. When unvested grants are dilutive, the earnings allocated to these dilutive unvested grants are not deducted from the net income attributable to controlling stockholders when calculating diluted earnings per share. The convertible notes are included if they are dilutive using the if-converted method. The if-converted method removes interest expense related to the convertible notes from the net income attributable to controlling stockholders and includes the weighted average shares over the period issuable upon conversion of the note. No adjustment is made for shares that are anti-dilutive during a period. Segment Reporting We make equity and debt investments in the energy efficiency, renewable energy, and other sustainable infrastructure markets. We manage our business as a single portfolio and report all of our activities as one business segment. Recently Issued Accounting Pronouncements Leases In February 2016, the FASB issued guidance codified in ASC Topic 842, which amends the guidance in former ASC Topic 840, Leases . The main principle of Topic 842 requires lessees to recognize the assets and liabilities that arise from nearly all leases on the balance sheet. Lessor accounting remains relatively consistent with some changes to align Topic 842 with ASC Topic 606, Revenue from Contracts with Customers, including changes to the guidance on classification of real estate lease transactions. The standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. Topic 842 provides companies with a choice of transitioning to the new standard using one of two modified retrospective transition approaches; one that requires companies to adjust comparative periods upon adoption and another where the impact of adoption is reflected in retained earnings and comparative periods are not adjusted. We have adopted Topic 842 effective January 1, 2019 and have elected to apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We have also elected the package of practical expedients which allowed us to not reassess (1) whether existing contracts contain leases, (2) the lease classification for existing leases, and (3) whether existing initial direct costs meet the new definition. The adoption of Topic 842 did not have a material impact on our financial statements. Subsequent to adoption of Topic 842, due to the changes in the lessor rules for classification of real estate leasing transactions, certain of our real estate leasing transactions may be accounted for as commercial receivables rather than being treated as real estate asset acquisitions with operating leases. Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments ("Topic 326"). Topic 326 significantly changes how entities w |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level hierarchy for classifying financial instruments. The levels of inputs used to determine the fair value of our financial assets and liabilities carried on the balance sheet at fair value and for those which only disclosure of fair value is required are characterized in accordance with the fair value hierarchy established by ASC 820, Fair Value Measurements. Where inputs for a financial asset or liability fall in more than one level in the fair value hierarchy, the financial asset or liability is classified in its entirety based on the lowest level input that is significant to the fair value measurement of that financial asset or liability. We use our judgment and consider factors specific to the financial assets and liabilities in determining the significance of an input to the fair value measurements. As of March 31, 2019 and December 31, 2018 , only our residual assets related to our securitization trusts, interest rate swaps and investments, if any, were carried at fair value on the consolidated balance sheets on a recurring basis. The three levels of the fair value hierarchy are described below: • Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date. • Level 2 — Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. • Level 3 — Unobservable inputs are used when little or no market data is available. The tables below illustrate the estimated fair value of our financial instruments on our balance sheet. Unless otherwise discussed below, fair value for our Level 2 and Level 3 measurements is measured using a discounted cash flow model, contractual terms and 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 inputs would result in a lower fair value and a decline would result in a higher fair value. Our convertible notes are valued using a market based approach and observable prices. The receivables held-for-sale, if any, are carried at the lower of cost or fair value. As of March 31, 2019 Fair Value Carrying Level (in millions) Assets Government receivables $ 463 $ 464 Level 3 Commercial receivables 449 454 Level 3 Investments (1) 178 178 Level 3 Securitization residual assets (2) 77 77 Level 3 Liabilities Credit facilities (3) $ 283 $ 283 Level 3 Non-recourse debt (3) 828 831 Level 3 Convertible notes (3) 153 151 Level 2 (1) The amortized cost of our investments as of March 31, 2019 , was $179 million. (2) Included in other assets on the consolidated balance sheet. (3) Fair value and carrying value exclude unamortized debt issuance costs. As of December 31, 2018 Fair Value Carrying Level (in millions) Assets Government receivables $ 487 $ 497 Level 3 Commercial receivables 443 447 Level 3 Investments (1) 170 170 Level 3 Securitization residual assets (2) 71 71 Level 3 Liabilities Credit facilities (3) $ 259 $ 259 Level 3 Non-recourse debt (3) 835 852 Level 3 Convertible notes (3) 139 152 Level 2 (1) The amortized cost of our investments as of December 31, 2018 , was $173 million. (2) Included in other assets on the consolidated balance sheet. (3) Fair value and carrying value exclude unamortized debt issuance costs. Investments The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value on a recurring basis: For the three months ended March 31, 2019 2018 (in millions) Balance, beginning of period $ 170 $ 151 Purchases of investments 7 4 Payments on investments (1 ) — Unrealized gains (losses) on investments recorded in AOCI 2 (3 ) Balance, end of period $ 178 $ 152 The following table illustrates our investments in an unrealized loss position: Estimated Fair Value Unrealized Losses (1) Securities with a loss shorter than 12 months Securities with a loss longer than 12 months Securities with a loss shorter than 12 months Securities with a loss longer than 12 months (in millions) March 31, 2019 $ 11 $ 132 $ 1 $ 2 December 31, 2018 82 67 1 3 (1) Loss position is due to interest rates movements. We have the intent and ability to hold these investments until a recovery of fair value. In determining the fair value of our investments, we used a range of interest rate spreads of approximately 1% to 4% based upon comparable transactions as of March 31, 2019 and December 31, 2018 . 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 Government and commercial receivables, real estate leases, and debt investments 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 and the method of rating. Additionally, our investments are collateralized by projects concentrated in certain geographic regions throughout the United States. We have structural credit protections to mitigate our risk exposure and, in most cases, the projects are insured for estimated physical loss which helps to mitigate the possible risk from these concentrations. We had cash deposits that are subject to credit risk as shown below: March 31, 2019 December 31, 2018 (in millions) Cash deposits $ 62 $ 21 Restricted cash deposits (included in other assets) 44 38 Total cash deposits $ 106 $ 59 Amount of cash deposits in excess of amounts federally insured $ 105 $ 57 |
Non-Controlling Interest
Non-Controlling Interest | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interest | Non-Controlling Interest Units of limited partnership interests in the Operating Partnership (“OP units”) that are owned by limited partners other than us are included in non-controlling interest on our consolidated balance sheets. The non-controlling interest holders are generally allocated their pro rata share of income, other comprehensive income and equity transactions. The outstanding OP units held by outside limited partners represent less than 1% of our outstanding OP units and are redeemable by the limited partners for cash, or at our option, for a like number of shares of our common stock. No OP units held by our non-controlling interest holders were exchanged during the three months ended March 31, 2019 , and 3,703 OP units were exchanged for the same number of shares during the same period in 2018 . |
Securitization of Receivables
Securitization of Receivables | 3 Months Ended |
Mar. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Securitization of Receivables | Securitization of Receivables The following summarizes certain transactions with our securitization trusts: As of and for the three months ended March 31, 2019 2018 (in millions) Gains on securitizations $ 7 $ 6 Purchase of receivables securitized 302 129 Proceeds from securitizations 309 135 Residual and servicing assets included in other assets 78 53 Cash received from residual and servicing assets 1 1 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 March 31, 2019 and December 31, 2018 , our managed assets totaled $ 5.5 billion and $5.3 billion, respectively, of which $3.6 billion and $3.3 billion, respectively, were securitized assets held in unconsolidated securitization trusts. There were no securitization credit losses in the three months ended March 31, 2019 or 2018 . As of March 31, 2019 , there were approximately $1.4 million in payments from certain debtors to the securitization trusts that were greater than 90 days past due. The securitized assets generally consist of 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, which typically 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 of our residual interests related to the receivables sold. |
Our Portfolio
Our Portfolio | 3 Months Ended |
Mar. 31, 2019 | |
Investment Portfolios [Abstract] | |
Our Portfolio | Our Portfolio As of March 31, 2019 , our Portfolio included approximately $1.9 billion of equity method investments, receivables, real estate and investments on our balance sheet. The equity method investments represent our non-controlling equity investments in renewable energy projects and land. The 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. The following is an analysis of our Portfolio as of March 31, 2019 : Investment Grade Government (1) Commercial Investment Grade (2) Commercial Non-Investment Grade (3) Subtotal, Equity Total (dollars in millions) Equity investments in renewable energy projects $ — $ — $ — $ — $ 437 $ 437 Receivables (4) 465 167 286 918 — 918 Real estate (5) — 364 — 364 22 386 Investments 104 74 — 178 — 178 Total $ 569 $ 605 $ 286 $ 1,460 $ 459 $ 1,919 % of Debt and real estate portfolio 39 % 41 % 20 % 100 % N/A N/A Average remaining balance (6) $ 11 $ 6 $ 14 $ 9 $ 16 $ 10 (1) Transactions where the ultimate obligor is the U.S. federal government or state or local governments where the obligors are rated investment grade (either by an independent rating agency or based upon our internal credit analysis). This amount includes $382 million of U.S. federal government transactions and $187 million of transactions where the ultimate obligors are state or local governments. Transactions may have guaranties of energy savings from third party service providers, which typically 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, $9 million of the transactions have been rated investment grade by an independent rating agency. (3) Transactions where the projects or the ultimate obligors are commercial entities that either have ratings below investment grade (either by an independent rating agency or using our internal credit analysis) or where the nature of the subordination in the asset causes it to be considered non-investment grade. This category of assets includes $260 million of mezzanine loans made on a non-recourse basis to special purpose subsidiaries of residential solar companies where the nature of the subordination causes it to be considered non-investment grade. These loans are secured by residential solar assets and we rely on certain limited indemnities, warranties, and other obligations of the residential solar companies or their other subsidiaries. This amount also includes $18 million of transactions where the projects or the ultimate obligors are commercial entities that have ratings below investment grade using our internal credit analysis, and $8 million of loans on non-accrual status. See Receivables and Investments below for further information. (4) Total reconciles to the total of the government receivables and commercial receivables lines of the consolidated balance sheets. (5) 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. (6) Excludes approximately 170 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $61 million. Equity Method Investments We have made non-controlling equity investments in a number of renewable energy projects as well as in a joint venture that owns land with long-term triple net lease agreements to several solar projects that we account for as equity method investments. As of March 31, 2019 , we held the following equity method investments: Investment Date Investee Carrying Value (in millions) Various 2007 Vento I, LLC $ 93 December 2015 Buckeye Wind Energy Class B Holdings, LLC 71 Various Northern Frontier Wind, LLC 65 December 2018 3D Engie, LLC 49 October 2016 Invenergy Gunsight Mountain Holdings, LLC 37 Various Helix Fund I, LLC 26 Various Other transactions 118 Total equity method investments $ 459 An underlying solar project associated with one of our equity method investments located in the U.S. Virgin Islands was materially damaged in the 2017 hurricanes. In the first quarter of 2019, we collected insurance proceeds of approximately $8 million . Although there can be no assurance in this regard, we continue to believe that the project’s other existing assets will be sufficient to recover our remaining carrying value of approximately $2 million. As of December 31, 2018 , we held a $14 million investment in a wind project that was purchased as part of a portfolio at a significant discount to the project’s book value, in part, due to the lack of a power purchase agreement and some operational issues. As disclosed in our 2018 Form 10-K, in January 2019 the sponsor indicated it was evaluating this project for impairment due to these issues and recorded an impairment of approximately $12 million in their financial statements as of and for the year ended December 31, 2018, which were issued to us in March 2019. Due to the fact that we account for this investment one quarter in arrears to allow for the receipt of financial information, we recognized our share of the operating results of the project, a loss of approximately $8 million , in the quarter ended March 31, 2019 . Based on an evaluation of our equity method investments, inclusive of these projects, we determined that no OTTI had occurred as of March 31, 2019 or December 31, 2018 . Receivables and Investments The following table provides a summary of our anticipated maturity dates of our receivables and investments and the weighted average yield for each range of maturities as of March 31, 2019 : Total Less than 1 1-5 years 5-10 years More than 10 (dollars in millions) Receivables Maturities by period $ 918 $ 3 $ 22 $ 78 $ 815 Weighted average yield by period 6.6 % 4.5 % 6.2 % 5.3 % 6.7 % Investments Maturities by period $ 178 $ 64 $ — $ 13 $ 101 Weighted average yield by period 4.3 % 3.6 % — % 4.1 % 4.7 % Our non-investment grade assets also consist of two commercial receivables with a combined total carrying value of approximately $8 million as of March 31, 2019 that we consider impaired and that are on non-accrual status. These 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”) which became past due in the second quarter of 2017. We have been informed by the owner of the Projects that the Projects are experiencing a decline in revenue. The owner of the Projects is seeking to terminate the lease. In July 2017, we filed a legal claim against the owners of the Projects in order to protect our interests in these Projects and the amounts due to us under the land lease assignments. In January 2018, we received a $1.6 million payment from the Projects, but have received no payments since that date. We continue to pursue our legal claims. Although there can be no assurance in this regard, we believe that we have the ability to recover the carrying value from the Projects based on projected cash flows, and thus have not recorded an allowance for losses as of March 31, 2019 . Other than discussed above, we had no receivables or investments that were impaired or on non-accrual status as of March 31, 2019 or December 31, 2018 . There was no provision for credit losses or troubled debt restructurings as of March 31, 2019 or December 31, 2018 . 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 March 31, 2019 and December 31, 2018 , were as follows: March 31, 2019 December 31, 2018 (in millions) Real estate Land $ 269 $ 269 Lease intangibles 104 104 Accumulated amortization of lease intangibles (8 ) (8 ) Real estate $ 365 $ 365 As of March 31, 2019 , the future amortization expense of the intangible assets and the future minimum rental income payments under our land lease agreements are as follows: Future Amortization Expense Minimum Rental Income Payments (in millions) From April 1, 2019 to December 31, 2019 $ 2 $ 17 2020 3 22 2021 3 22 2022 3 22 2023 3 23 2024 3 24 Thereafter 79 769 Total $ 96 $ 899 Deferred Funding Obligations In accordance with the terms of purchase agreements relating to certain equity method investments, 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 $66 million and $72 million as of March 31, 2019 and December 31, 2018 , respectively. We have secured financing for, or placed in escrow, approximately $63 million and $68 million of the deferred funding obligations as of March 31, 2019 and December 31, 2018 , respectively. The outstanding deferred funding obligations to be paid are as follows: Deferred Funding Obligations (in millions) From April 1, 2019 to December 31, 2019 $ 45 2020 16 2021 5 Total $ 66 |
Credit Facilities
Credit Facilities | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit facilities Senior credit facilities We have two senior revolving credit facilities, a representation-based loan agreement (the “Rep-Based Facility") and an approval-based loan agreement (the “Approval-Based Facility”) with various lenders, which mature in July 2023. The Rep-Based Facility is a senior secured revolving limited-recourse credit facility with a maximum outstanding principal amount of $250 million and the Approval-Based Facility is a senior secured revolving recourse credit facility with a maximum outstanding principal amount of $200 million . The proceeds from these credit facilities were used to pay off our existing senior secured revolving credit facility, which was terminated upon repayment. The following table provides additional detail on our senior credit facilities as of March 31, 2019 : Rep-Based Approval-Based Facility (dollars in millions) Outstanding balance $ 156 $ 127 Value of collateral pledged to credit facility 208 205 Weighted average short-term borrowing rate 4.0 % 4.3 % Loans under the Rep-Based Facility bear interest at a rate equal to one-month LIBOR plus 1.40% or 1.85% (depending on the type of collateral) or, in certain circumstances, the Federal Funds Rate plus 0.40% or 0.85% (depending on the type of collateral) and loans under the Approval-Based Facility bear interest at a rate equal to one-month LIBOR plus 1.50% or 2.00% (depending on the type of collateral) or, under certain circumstances, the Federal Funds Rate plus 0.50% or 1.00% (depending on the type of collateral). Inclusion of any financings of the Company in the borrowing base as collateral under the Rep-Based Facility will be subject to the Company making certain agreed upon representations and warranties. We have provided a limited guaranty covering the accuracy of the representations and warranties, and the repayment by the borrowers of certain amounts relating to any such financing is the exclusive remedy with respect to any breach of such representations and warranties under the Rep-Based Facility. Inclusion of any financings of the Company in the borrowing base as collateral under the Approval-Based Facility will be subject to the approval of a super-majority of the lenders, and we have provided a guaranty of the Approval-Based Facility. The amount eligible to be drawn under the facilities is based on a discount to the value of each included investment based upon the type of collateral or an applicable valuation percentage. The sum of included financings after taking into account the applicable 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. Under the Rep-Based Facility, the applicable valuation percentage is 85% in the case of a land-lease obligor or a U.S. Federal Government obligor, 80% in the case of an institutional obligor or 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 Approval-Based Facility, the applicable valuation percentage is 85% in the case of certain approved financings and 67% or such other percentage as the administrative agent may prescribe, including in the case of one asset, an agreed-upon amortization schedule. The stated minimum maturities to be paid under the amortization schedule to meet the required target loan balances as of March 31, 2019 are as follows: Future minimum maturities (in millions) April 1, 2019 to December 31, 2019 $ 8 2020 8 2021 8 2022 8 2023 15 Total $ 47 We have approximately $8 million of remaining unamortized costs associated with the credit facilities 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 credit facilities. Administrative fees are payable annually to the administrative agent under each of the Loan Agreements and letter agreements with the administrative agent. Under the Rep-Based Facility, we pay to the administrative agent on each monthly payment date, for the benefit of the lenders, certain availability fees for the Rep-Based Facility equal to 0.60% , divided by 365 or 366, as applicable, multiplied by the excess of the available total commitments under the Rep-Based Loan Agreement over the actual amount borrowed under the Rep-Based Facility. The credit facilities contain 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. We were in compliance with our covenants as of March 31, 2019 . The credit facilities also include 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 facilities, acceleration of amounts due under the credit facilities, and accrual of default interest at a rate of LIBOR plus 2.00% in the case of both the Rep-Based Facility and the Approval-Based Facility. |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Non-recourse debt We have outstanding the following asset-backed non-recourse debt and bank loans: Outstanding Balance Anticipated Value of Assets Pledged March 31, 2019 December 31, 2018 Interest Maturity Date March 31, 2019 December 31, 2018 Description (dollars in millions) HASI Sustainable Yield Bond 2013-1 $ 38 $ 55 2.79% December 2019 $ 35 $ 48 $ 76 Receivables HASI Sustainable Yield Bond 2015-1A 89 90 4.28% October 2034 — 135 135 Receivables, real estate and real estate intangibles HASI Sustainable Yield Bond 2015-1B Note 13 13 5.41% October 2034 — 135 135 Class B Bond of HASI Sustainable Yield Bond 2015-1 2017 Credit Agreement 103 112 4.12% January 2023 — 116 151 Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier, LLC HASI SYB Loan Agreement 2015-2 30 32 6.67% (1) December 2023 — 71 72 Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap HASI SYB Trust 2016-2 78 77 4.35% April 2037 — 81 81 Receivables 2017 Master Repurchase Agreement 61 56 5.11% (1) July 2019 57 72 67 Receivables and investments HASI ECON 101 Trust 133 133 3.57% May 2041 — 137 137 Receivables and investments HASI SYB Trust 2017-1 158 159 3.86% March 2042 — 207 208 Receivables, real estate and real estate intangibles Other non-recourse debt (2) 128 125 3.15% - 7.45% 2019 to 2046 18 174 178 Receivables Debt issuance costs (16 ) (17 ) Non-recourse debt (3) $ 815 $ 835 (1) Interest rate represents the current period’s LIBOR based rate plus the spread. We have hedged the LIBOR rate exposure using interest rate swaps fixed at 2.55% and 2.42% for HASI SYB Loan Agreement 2015-2 and 2017 Master Repurchase Agreement, respectively. (2) Other non-recourse debt consists of various debt agreements used to finance certain of our 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 receivables. (3) The total collateral pledged against our non-recourse debt was $1,041 million and $1,105 million as of March 31, 2019 and December 31, 2018 , respectively. In addition, $42 million and $35 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of March 31, 2019 and December 31, 2018 , 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 non-recourse 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. Generally, the assets and credit of these entities are not available to satisfy any of our other debts and obligations. 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 transactions 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 are in compliance with all covenants as of March 31, 2019 and December 31, 2018 . We have guaranteed the accuracy of certain 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 stated minimum maturities of non-recourse debt as of March 31, 2019 , were as follows: Future minimum maturities (in millions) April 1, 2019 to December 31, 2019 $ 123 2020 24 2021 26 2022 27 2023 152 2024 34 Thereafter 445 Total minimum maturities $ 831 Deferred financing costs, net (16 ) Total non-recourse debt $ 815 The stated minimum maturities of non-recourse debt above include only the mandatory minimum principal payments. To the extent there are additional cash flows received from our investments in renewable energy projects serving as collateral for certain of our non-recourse debt facilities, 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. Convertible Senior Notes We issued $150 million aggregate principal amount ( $145 million net of issuance costs) of 4.125% convertible senior notes due September 1, 2022. Holders may convert any of their convertible notes into shares of our common stock at the applicable conversion rate at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, unless the convertible notes have been previously redeemed or repurchased by us. Our board of directors approved a dividend of $0.335 payable to stockholders of record on April 3, 2019, which results in a conversion rate after that date of 36.7179 for each $1,000 principal amount of convertible notes with a conversion price of $27.23 . The conversion rate is subject to adjustment for dividends declared above $0.335 per share per quarter and certain other events that may be dilutive to the holder. Following the occurrence of a make-whole fundamental change, we will, in certain circumstances, increase the conversion rate for a holder that converts its convertible notes in connection with such make-whole fundamental change. There are no cash settlement provisions in the convertible notes and the conversion option can only be settled through physical delivery of our common stock. Additionally, upon the occurrence of certain fundamental changes involving us, holders of the convertible notes may require us to redeem all or a portion of their convertible notes for cash at a price of 100% of the principal amount outstanding, plus accrued and unpaid interest. We have a redemption option to call the convertible notes prior to maturity (i) on or after March 1, 2022 and (ii) at any time if such a redemption is deemed reasonably necessary to preserve our qualification as a REIT. The redemption price will be equal to the principal of the notes being redeemed, plus accrued and unpaid interest. In the event of redemption after March 1, 2022, there will be an additional make-whole premium paid to the holder of the redeemed notes unless the redemption is deemed reasonably necessary to preserve our qualification as a REIT. The following table presents a summary of the components of the convertible notes: March 31, 2019 December 31, 2018 (in millions) Principal $ 150 $ 150 Accrued interest 1 2 Less: Unamortized financing costs (4 ) (4 ) Carrying value of convertible notes $ 147 $ 148 We recorded approximately $2 million in interest expense related to the convertible notes in both the three months ended March 31, 2019 and March 31, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. 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. Guarantees to other transaction participants In connection with some of our transactions, we have provided certain limited representations, warranties, covenants and/or provided an indemnity against certain losses resulting from our own actions, including related to certain investment tax credits. As of March 31, 2019 , there have been no such actions resulting in claims against the Company. |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax We recorded a tax benefit of approximately $2 million for the three months ended March 31, 2019 , compared to an income tax expense of $0 million for the three months ended March 31, 2018 . For the three months ended March 31, 2019 and 2018 , our income tax expense was determined using federal rates of 21% , and combined state rates, net of federal benefit, of 3% . |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity Dividends and Distributions Our board of directors declared the following dividends in 2018 and 2019 : Announced Date Record Date Pay Date Amount per 2/21/2018 4/4/2018 4/12/2018 $ 0.330 5/31/2018 7/5/2018 7/12/2018 0.330 9/12/2018 10/3/2018 10/11/2018 0.330 12/12/2018 12/26/2018 (1) 1/10/2019 0.330 2/21/2019 4/3/2019 4/11/2019 0.335 (1) This dividend was treated as a distribution in 2019 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, debt securities, 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 (including ATM issuances) of our common stock in 2018 and 2019 : Closing Date Common Stock Offerings Shares Issued (1) Price Per Share Net Proceeds (2) (amounts in millions, except per share amounts) 5/18/18 to 6/25/18 ATM 0.834 18.76 (3) $ 15 11/15/18 to 12/11/18 ATM 2.777 23.37 (3) 64 12/17/2018 and 1/3/2019 Public Offering 5.465 21.60 (4) 117 1/23/19 to 3/21/19 ATM 1.603 23.39 (3) 37 (1) Includes shares issued in connection with the exercise of the underwriters’ option to purchase additional shares. (2) Net proceeds from the offerings are shown after deducting underwriting discounts, commissions and other offering costs. (3) Represents the average price per share at which investors in our ATM offerings purchased our shares. (4) Represents the price per share at which the underwriters in our public offerings purchased our shares. Awards of Shares of Restricted Common Stock and Restricted Stock Units under our 2013 Plan We have issued awards with service, performance and market conditions that vest from 2019 to 2023 . During the three months ended March 31, 2019 , our board of directors awarded employees and directors 192,893 shares of restricted stock and restricted stock units that vest from 2019 to 2022 . As of March 31, 2019 , as it relates to previously issued restricted stock awards with performance conditions, we have concluded that it is probable that the performance conditions will be met. For the three months ended March 31, 2019 , we recorded $4 million of equity-based compensation expense as compared to $2 million for the three months ended March 31, 2018 . The total unrecognized compensation expense related to awards of shares of restricted stock and restricted stock units was approximately $13 million as of March 31, 2019 . We expect to recognize compensation expense related to these awards over a weighted-average term of approximately 2 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, 2017 1,399,593 $ 18.73 $ 26.2 Granted 454,106 19.72 9.0 Vested (370,072 ) 18.88 (7.0 ) Forfeited (96,871 ) 18.92 (1.8 ) Ending Balance — December 31, 2018 1,386,756 $ 19.00 $ 26.4 Granted 148,401 23.96 3.5 Vested (551,502 ) 18.85 (10.4 ) Forfeited — — — Ending Balance — March 31, 2019 983,655 $ 19.83 $ 19.5 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 Units Weighted Average Share Price Value (in millions) Ending Balance — December 31, 2017 255,706 $ 18.99 $ 4.9 Granted 176,128 20.24 3.5 Vested (20,368 ) 18.99 (0.4 ) Forfeited (18,318 ) 19.05 (0.3 ) Ending Balance — December 31, 2018 393,148 $ 19.55 $ 7.7 Granted 44,492 25.03 1.1 Vested — — — Forfeited — — — Ending Balance — March 31, 2019 437,640 $ 20.10 $ 8.8 |
Earnings per Share of Common St
Earnings per Share of Common Stock | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share of Common Stock | 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 the basic earnings per share and the diluted earnings per share calculations 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. The computation of basic and diluted earnings per common share of common stock is as follows: Three Months Ended March 31, Numerator: 2019 2018 (in millions, except share and per share data) Net income (loss) attributable to controlling stockholders and participating securities $ 13.6 $ (1.2 ) Less: Dividends paid on participating securities (0.3 ) (0.5 ) Undistributed earnings attributable to participating securities — — Net income (loss) attributable to controlling stockholders $ 13.3 $ (1.7 ) Denominator: Weighted-average number of common shares — basic 61,748,906 51,710,910 Weighted-average number of common shares — diluted 62,365,271 51,710,910 Basic earnings per common share $ 0.22 $ (0.03 ) Diluted earnings per common share $ 0.21 $ (0.03 ) Other Information: Weighted-average number of OP units 277,586 283,963 Unvested restricted common stock outstanding (i.e., participating securities) 983,655 1,112,940 |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments We have non-controlling unconsolidated equity investments in renewable energy projects. We recognized income from our equity method investments of $5 million and during the three months ended March 31, 2019 , as compared to a loss of $2 million during the three months ended March 31, 2018 . We describe our accounting for non-controlling equity investments in Note 2. The following is a summary of the consolidated financial position and results of operations of the significant entities accounted for using the equity method. Buckeye Wind Energy Class B Holdings, LLC Other Investments (1) Total (in millions) Balance Sheet As of December 31, 2018 Current assets $ 4 $ 248 $ 252 Total assets 276 3,732 4,008 Current liabilities 1 127 128 Total liabilities 12 1,060 1,072 Members' equity 264 2,672 2,936 As of December 31, 2017 Current assets 3 131 134 Total assets 286 2,894 3,180 Current liabilities 1 70 71 Total liabilities 11 319 330 Members' equity 275 2,575 2,850 Income Statement For the year ended December 31, 2018 Revenue 14 248 262 Income from continuing operations (6 ) (22 ) (28 ) Net income (6 ) (22 ) (28 ) For the year ended December 31, 2017 Revenue 12 254 266 Income from continuing operations (8 ) (49 ) (57 ) Net income (8 ) (49 ) (57 ) (1) Represents aggregated financial statement information for investments not separately presented. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“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 our annual report on Form 10-K for the year ended December 31, 2018 , as filed with the SEC. In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations and cash flows have been included. Our results of operations for the quarterly period ended March 31, 2019 , 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. The consolidated financial statements include our accounts and controlled subsidiaries, including the Operating Partnership. All significant intercompany transactions and balances have been eliminated in consolidation. Following the guidance for non-controlling interests in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation ("ASC 810") , references in this report to our earnings per share and our net income and stockholders’ equity attributable to common stockholders do not include amounts attributable to non-controlling interests. |
Consolidation and Equity Method Investments | Consolidation and Equity Method Investments We account for our investments in entities that are considered voting interest entities or variable interest entities (“VIEs”) under ASC 810 and assess whether we should consolidate these entities on an ongoing basis. We have established various special purpose entities or securitization trusts for the purpose of securitizing certain receivables or other debt investments which are not consolidated in our financial statements as described in Securitization of Receivables below. Substantially all of the activities of the special purpose entities that are formed for the purpose of holding our government and commercial 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. Our renewable energy projects are typically owned in holding companies (using limited liability companies ("LLCs") taxed as partnerships) where we partner with either the operator of the project or other institutional investors. We share in the cash flows, income, and tax attributes according to a negotiated schedule (which typically does not correspond with our ownership percentages) and we typically 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. Once our preferred return, if applicable, is achieved, the partnership “flips” and the operator of 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, as we do not direct the significant activities of those entities in which we invest. Our maximum exposure to loss associated with the continued operation of the underlying projects in 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 LLC agreement, less distributions received. For the LLC agreements which 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 beginning and the end 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 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”). Any difference between the amount of our investment and the amount of underlying equity in net assets is generally amortized over the life of the assets and liabilities to which the difference relates. Cash distributions received from these equity method investments are classified as operating activities to the extent of cumulative HLBV earnings in our consolidated statements of 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 that we have determined to be a voting interest entity. This investment entitles us to receive an equal percentage of both cash distributions and profit and loss under the terms of the LLC operating agreement. The investment is accounted for under the equity method of accounting with our portion of income being recognized in income (loss) from equity method investments in the period in which the income is earned. Cash distributions received from this equity method investment are classified as operating activities to the extent of cumulative earnings in our consolidated statements of cash flows. Our initial investment and additional cash distributions beyond that which are classified as operating activities are classified as investing activities in our consolidated statements of cash flows. We evaluate on a quarterly basis whether our investments accounted for using the equity method have an other than temporary impairment (“OTTI”). An OTTI occurs when the estimated fair value of an investment is below the carrying value and the difference is determined to not be recoverable. This evaluation requires significant judgment regarding, but not limited to, the severity and duration of the impairment; the ability and intent to hold the securities until recovery; financial condition, liquidity, and near-term prospects of the issuer; specific events; and other factors. |
Government and Commercial Receivables | Government and Commercial Receivables Government and commercial receivables (“receivables”), include project loans and receivables. These receivables are separately presented in our balance sheet to illustrate the differing nature of the credit risk related to these assets. Unless otherwise noted, we generally have the ability and intent to hold our receivables for the foreseeable future and thus they are classified as held for investment. Our ability and intent to hold certain 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 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. Receivables that are held for investment are carried, unless deemed impaired, at amortized cost, net of any unamortized acquisition premiums or discounts and include origination and acquisition costs, as applicable. Our initial investment and principal repayments of these receivables are classified as investing activities and the interest collected is classified as operating activities in our consolidated statements of cash flows. 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 receivables that we intend to sell at origination are classified as operating activities in our consolidated statements of cash flows, otherwise the net purchases and proceeds are classified as investing activities. Interest collected is classified as an operating activity in our consolidated statements of cash flows. Certain of our receivables may include the ability to defer required interest payments in exchange for increasing the receivable balance at the borrower's option. We generally accrue this paid-in-kind ("PIK") interest when collection is expected, and cease accruing PIK interest if there is insufficient value to support the accrual or we expect that any portion of the principal or interest due is not collectible. We evaluate our 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 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 receivable delinquent or impaired and place the receivable on non-accrual status and cease recognizing income from that receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a 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 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 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 ratio, 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 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 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 from the collateral. We charge off receivables against the allowance, if any, when we determine the unpaid principal balance is uncollectible, net of recovered amounts. |
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. Certain real estate transactions may be characterized as "failed sale-leaseback" transactions as defined under ASC Topic 842 ("Topic 842"), Leases , and thus are accounted for similar to our Commercial Receivables as described above in Government and Commercial Receivables. For our other real estate lease transactions that are classified as operating leases, the 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, if any, related to the ongoing operation of leases where we are the lessor, are charged to operations as incurred. Our initial investment is classified as investing activities and income collected for rental income is classified as operating activities in our consolidated statements of cash flows. When our real estate transactions are treated as an asset acquisition with an operating lease, we typically record our real estate purchases as asset acquisitions that are recorded at cost, including acquisition and closing costs, which is allocated to each tangible and intangible asset acquired on a relative fair value basis. 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 typically determined by management based on appraisals by a qualified appraiser. In determining the fair value of the identified intangibles of an acquired property, above-market and below-market in-place lease values are valued 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, in which case the amortization would extend through the renewal period. If a lease were to be terminated, all unamortized amounts relating to that lease would be written off. |
Investments | Investments Investments are debt securities that meet the criteria of ASC 320, Investments-Debt and Equity Securities . We have designated our debt securities as available-for-sale and carry these securities at fair value on our balance sheet. Unrealized gains and losses, to the extent not considered to have an OTTI, on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income (“AOCI”) in equity on our balance sheet. Our initial investment and principal repayments of these investments are classified as investing activities and the interest collected is classified as operating activities in our consolidated statements of cash flows. 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 security’s 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 interest income using the effective interest method. |
Securitization of Receivables | Securitization of Receivables We have established various special purpose entities or securitization trusts for the purpose of securitizing certain receivables or investments. We determined that the trusts used in securitizations are VIEs, as defined in ASC 810. We typically serve as primary or master servicer of these trusts; however, as the servicer, we do not have the power to make significant decisions impacting the performance of the trusts. Based on an analysis of the structure of the trusts, we have concluded that we are not the primary beneficiary of the trusts as we do not have power over the trusts’ significant activities. Therefore, we do not consolidate these trusts in our consolidated financial statements. We account for transfers of receivables or investments to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing , when we have concluded the transferred receivables have been isolated from the transferor (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership) and we have surrendered control over the transferred receivables. We have received true-sale-at-law opinions for all of our securitization trust structures and non-consolidation legal opinions for all but one legacy securitization trust structure that support our conclusion regarding the transferred receivables. When we sell receivables in securitizations, we generally retain interests in the form of servicing rights and residual assets, which we refer to as securitization assets. Gain or loss on the sale of receivables is calculated based on the excess of the proceeds received from the securitization (less any transaction costs) plus any retained interests obtained over the cost basis of the receivables sold. For retained interests, we generally estimate fair value based on the present value of future expected cash flows using our best estimates of the key assumptions of anticipated losses, prepayment rates, and current market discount rates commensurate with the risks involved. Cash flows related to our securitizations at origination are classified as operating activities in our consolidated statements of cash flows. 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 accounted for 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 the 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. |
Convertible Notes | Convertible Notes We have issued convertible senior notes that are accounted for in accordance with ASC 470-20, Debt with Conversion and Other Options , and ASC 815, Derivatives and Hedging ("ASC 815") . Under ASC 815, issuers of certain convertible debt instruments are generally required to separately account for the conversion option of the convertible debt instrument as either a derivative or equity, unless it meets the scope exemption for contracts indexed to, and settled in, an issuer’s own equity. Since this conversion option is both indexed to our equity and can only be settled in our common stock, we have met the scope exemption, and therefore, we are not separately accounting for the embedded conversion option. The initial issuance and any principal repayments are classified as financing activities and interest payments are classified as operating activities in our consolidated statements of cash flows. |
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. We also have taxable REIT subsidiaries ("TRSs") which are taxed separately, and which will generally be subject to U.S. federal, state, and local income taxes as well as taxes of foreign jurisdictions, if any. 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 REIT's net taxable income before dividends paid, excluding capital gains, to our stockholders. 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. We account for income taxes under ASC 740, Income Taxes ("ASC 740") for our TRSs using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. We evaluate any deferred tax assets for valuation allowances based on an assessment of available evidence including sources of taxable income, prior years taxable income, any existing taxable temporary differences and our future investment and business plans that may give rise to taxable income. We treat any tax credits we receive from our equity investments in renewable energy projects as reductions of federal income taxes of the year in which the credit arises. We apply ASC 740 with respect to how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. This guidance requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more likely than not” to be sustained by the applicable tax authority. We are required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes U.S. federal and certain states. |
Equity-Based Compensation | Equity-Based Compensation In 2013, we adopted the 2013 Hannon Armstrong Sustainable Infrastructure Capital, Inc. Equity Incentive Plan (as amended, 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. Certain awards earned under the plan are based on achieving various performance targets, which are generally earned between 0% and 200% of the initial target, depending on the extent to which the performance target is met. We record compensation expense for grants made under the 2013 Plan in accordance with ASC 718, Compensation-Stock Compensation . We record compensation expense for unvested grants that vest solely based on service conditions on a straight-line basis over the vesting period of the entire award based upon the fair market value of the grant on the date of grant. Fair market value for restricted common stock is based on our share price on the date of grant. For awards where the vesting is contingent upon achievement of certain performance targets, compensation expense is measured based on the fair market value on the grant date and is recorded over the requisite service period (which includes the performance period). Actual performance results at the end of the performance period determines the number of shares that will ultimately be awarded. We have also issued awards where the vesting is contingent upon service being provided for a defined period and certain market conditions being met. The fair value of these awards, as measured at the grant date, is recognized over the requisite service period, even if the market conditions are not met. The grant date fair value of these awards was developed by an independent appraiser using a Monte Carlo simulation. |
Earnings Per Share | Earnings Per Share We compute earnings per share of common stock in accordance with ASC 260, Earnings Per Share . Basic earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested grants under the 2013 Plan, if applicable) by the weighted-average number of shares of common stock outstanding during the period excluding the weighted average number of unvested grants under the 2013 Plan, if applicable (“participating securities” as defined in Note 12). Diluted earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested grants under the 2013 Plan, if applicable) by the weighted-average number of shares of common stock outstanding during the period plus other potential common stock instruments if they are dilutive. Other potentially dilutive common stock instruments include our unvested restricted stock, other equity-based awards, and convertible notes. The restricted stock and other equity-based awards are included if they are dilutive using the treasury stock method. The treasury stock method assumes that theoretical proceeds received for future service provided is used to purchase treasury stock at our stock’s average market price, which is deducted from the amount of stock included in the calculation. When unvested grants are dilutive, the earnings allocated to these dilutive unvested grants are not deducted from the net income attributable to controlling stockholders when calculating diluted earnings per share. The convertible notes are included if they are dilutive using the if-converted method. The if-converted method removes interest expense related to the convertible notes from the net income attributable to controlling stockholders and includes the weighted average shares over the period issuable upon conversion of the note. No adjustment is made for shares that are anti-dilutive during a period. |
Segment Reporting | Segment Reporting We make equity and debt investments in the energy efficiency, renewable energy, and other sustainable infrastructure markets. We manage our business as a single portfolio and report all of our activities as one business segment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Leases In February 2016, the FASB issued guidance codified in ASC Topic 842, which amends the guidance in former ASC Topic 840, Leases . The main principle of Topic 842 requires lessees to recognize the assets and liabilities that arise from nearly all leases on the balance sheet. Lessor accounting remains relatively consistent with some changes to align Topic 842 with ASC Topic 606, Revenue from Contracts with Customers, including changes to the guidance on classification of real estate lease transactions. The standard is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. Topic 842 provides companies with a choice of transitioning to the new standard using one of two modified retrospective transition approaches; one that requires companies to adjust comparative periods upon adoption and another where the impact of adoption is reflected in retained earnings and comparative periods are not adjusted. We have adopted Topic 842 effective January 1, 2019 and have elected to apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We have also elected the package of practical expedients which allowed us to not reassess (1) whether existing contracts contain leases, (2) the lease classification for existing leases, and (3) whether existing initial direct costs meet the new definition. The adoption of Topic 842 did not have a material impact on our financial statements. Subsequent to adoption of Topic 842, due to the changes in the lessor rules for classification of real estate leasing transactions, certain of our real estate leasing transactions may be accounted for as commercial receivables rather than being treated as real estate asset acquisitions with operating leases. Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments ("Topic 326"). Topic 326 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. Topic 326 will replace the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for expected losses from available-for-sale debt securities rather than reduce the amortized cost, as currently required. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. Topic 326 is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact the adoption of Topic 326 will have on our consolidated financial statements and related disclosures. Other accounting standards updates issued before May 2, 2019 , and effective after March 31, 2019 , are not expected to have a material effect on our consolidated financial statements and related disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value and Carrying Value of Financial Assets and Liabilities | The tables below illustrate the estimated fair value of our financial instruments on our balance sheet. Unless otherwise discussed below, fair value for our Level 2 and Level 3 measurements is measured using a discounted cash flow model, contractual terms and 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 inputs would result in a lower fair value and a decline would result in a higher fair value. Our convertible notes are valued using a market based approach and observable prices. The receivables held-for-sale, if any, are carried at the lower of cost or fair value. As of March 31, 2019 Fair Value Carrying Level (in millions) Assets Government receivables $ 463 $ 464 Level 3 Commercial receivables 449 454 Level 3 Investments (1) 178 178 Level 3 Securitization residual assets (2) 77 77 Level 3 Liabilities Credit facilities (3) $ 283 $ 283 Level 3 Non-recourse debt (3) 828 831 Level 3 Convertible notes (3) 153 151 Level 2 (1) The amortized cost of our investments as of March 31, 2019 , was $179 million. (2) Included in other assets on the consolidated balance sheet. (3) Fair value and carrying value exclude unamortized debt issuance costs. As of December 31, 2018 Fair Value Carrying Level (in millions) Assets Government receivables $ 487 $ 497 Level 3 Commercial receivables 443 447 Level 3 Investments (1) 170 170 Level 3 Securitization residual assets (2) 71 71 Level 3 Liabilities Credit facilities (3) $ 259 $ 259 Level 3 Non-recourse debt (3) 835 852 Level 3 Convertible notes (3) 139 152 Level 2 (1) The amortized cost of our investments as of December 31, 2018 , was $173 million. (2) Included in other assets on the consolidated balance sheet. (3) Fair value and carrying value exclude unamortized debt issuance costs. |
Schedule of Reconciliation of Level 3 Investments Securities | The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value on a recurring basis: For the three months ended March 31, 2019 2018 (in millions) Balance, beginning of period $ 170 $ 151 Purchases of investments 7 4 Payments on investments (1 ) — Unrealized gains (losses) on investments recorded in AOCI 2 (3 ) Balance, end of period $ 178 $ 152 |
Schedule of Investments in Unrealized Loss Position | The following table illustrates our investments in an unrealized loss position: Estimated Fair Value Unrealized Losses (1) Securities with a loss shorter than 12 months Securities with a loss longer than 12 months Securities with a loss shorter than 12 months Securities with a loss longer than 12 months (in millions) March 31, 2019 $ 11 $ 132 $ 1 $ 2 December 31, 2018 82 67 1 3 (1) Loss position is due to interest rates movements. We have the intent and ability to hold these investments until a recovery of fair value. |
Schedule of Cash Deposits Subject to Credit Risk | We had cash deposits that are subject to credit risk as shown below: March 31, 2019 December 31, 2018 (in millions) Cash deposits $ 62 $ 21 Restricted cash deposits (included in other assets) 44 38 Total cash deposits $ 106 $ 59 Amount of cash deposits in excess of amounts federally insured $ 105 $ 57 |
Securitization of Receivables (
Securitization of Receivables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 2018 (in millions) Gains on securitizations $ 7 $ 6 Purchase of receivables securitized 302 129 Proceeds from securitizations 309 135 Residual and servicing assets included in other assets 78 53 Cash received from residual and servicing assets 1 1 |
Our Portfolio (Tables)
Our Portfolio (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investment Portfolios [Abstract] | |
Analysis of Portfolio by Type of Obligor and Credit Quality | The following is an analysis of our Portfolio as of March 31, 2019 : Investment Grade Government (1) Commercial Investment Grade (2) Commercial Non-Investment Grade (3) Subtotal, Equity Total (dollars in millions) Equity investments in renewable energy projects $ — $ — $ — $ — $ 437 $ 437 Receivables (4) 465 167 286 918 — 918 Real estate (5) — 364 — 364 22 386 Investments 104 74 — 178 — 178 Total $ 569 $ 605 $ 286 $ 1,460 $ 459 $ 1,919 % of Debt and real estate portfolio 39 % 41 % 20 % 100 % N/A N/A Average remaining balance (6) $ 11 $ 6 $ 14 $ 9 $ 16 $ 10 (1) Transactions where the ultimate obligor is the U.S. federal government or state or local governments where the obligors are rated investment grade (either by an independent rating agency or based upon our internal credit analysis). This amount includes $382 million of U.S. federal government transactions and $187 million of transactions where the ultimate obligors are state or local governments. Transactions may have guaranties of energy savings from third party service providers, which typically 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, $9 million of the transactions have been rated investment grade by an independent rating agency. (3) Transactions where the projects or the ultimate obligors are commercial entities that either have ratings below investment grade (either by an independent rating agency or using our internal credit analysis) or where the nature of the subordination in the asset causes it to be considered non-investment grade. This category of assets includes $260 million of mezzanine loans made on a non-recourse basis to special purpose subsidiaries of residential solar companies where the nature of the subordination causes it to be considered non-investment grade. These loans are secured by residential solar assets and we rely on certain limited indemnities, warranties, and other obligations of the residential solar companies or their other subsidiaries. This amount also includes $18 million of transactions where the projects or the ultimate obligors are commercial entities that have ratings below investment grade using our internal credit analysis, and $8 million of loans on non-accrual status. See Receivables and Investments below for further information. (4) Total reconciles to the total of the government receivables and commercial receivables lines of the consolidated balance sheets. (5) 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. (6) Excludes approximately 170 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $61 million. |
Schedule of Equity Method Investments | As of March 31, 2019 , we held the following equity method investments: Investment Date Investee Carrying Value (in millions) Various 2007 Vento I, LLC $ 93 December 2015 Buckeye Wind Energy Class B Holdings, LLC 71 Various Northern Frontier Wind, LLC 65 December 2018 3D Engie, LLC 49 October 2016 Invenergy Gunsight Mountain Holdings, LLC 37 Various Helix Fund I, LLC 26 Various Other transactions 118 Total equity method investments $ 459 The following is a summary of the consolidated financial position and results of operations of the significant entities accounted for using the equity method. Buckeye Wind Energy Class B Holdings, LLC Other Investments (1) Total (in millions) Balance Sheet As of December 31, 2018 Current assets $ 4 $ 248 $ 252 Total assets 276 3,732 4,008 Current liabilities 1 127 128 Total liabilities 12 1,060 1,072 Members' equity 264 2,672 2,936 As of December 31, 2017 Current assets 3 131 134 Total assets 286 2,894 3,180 Current liabilities 1 70 71 Total liabilities 11 319 330 Members' equity 275 2,575 2,850 Income Statement For the year ended December 31, 2018 Revenue 14 248 262 Income from continuing operations (6 ) (22 ) (28 ) Net income (6 ) (22 ) (28 ) For the year ended December 31, 2017 Revenue 12 254 266 Income from continuing operations (8 ) (49 ) (57 ) Net income (8 ) (49 ) (57 ) (1) Represents aggregated financial statement information for investments not separately presented. |
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 receivables and investments and the weighted average yield for each range of maturities as of March 31, 2019 : Total Less than 1 1-5 years 5-10 years More than 10 (dollars in millions) Receivables Maturities by period $ 918 $ 3 $ 22 $ 78 $ 815 Weighted average yield by period 6.6 % 4.5 % 6.2 % 5.3 % 6.7 % Investments Maturities by period $ 178 $ 64 $ — $ 13 $ 101 Weighted average yield by period 4.3 % 3.6 % — % 4.1 % 4.7 % |
Components of Real Estate Portfolio | The components of our real estate portfolio as of March 31, 2019 and December 31, 2018 , were as follows: March 31, 2019 December 31, 2018 (in millions) Real estate Land $ 269 $ 269 Lease intangibles 104 104 Accumulated amortization of lease intangibles (8 ) (8 ) Real estate $ 365 $ 365 |
Schedule of Minimum Rental Income Payments | As of March 31, 2019 , the future amortization expense of the intangible assets and the future minimum rental income payments under our land lease agreements are as follows: Future Amortization Expense Minimum Rental Income Payments (in millions) From April 1, 2019 to December 31, 2019 $ 2 $ 17 2020 3 22 2021 3 22 2022 3 22 2023 3 23 2024 3 24 Thereafter 79 769 Total $ 96 $ 899 |
Schedule of Future Amortization Expense of Intangible Assets | As of March 31, 2019 , the future amortization expense of the intangible assets and the future minimum rental income payments under our land lease agreements are as follows: Future Amortization Expense Minimum Rental Income Payments (in millions) From April 1, 2019 to December 31, 2019 $ 2 $ 17 2020 3 22 2021 3 22 2022 3 22 2023 3 23 2024 3 24 Thereafter 79 769 Total $ 96 $ 899 |
Summary of Outstanding Deferred Funding Obligations to be Paid | The outstanding deferred funding obligations to be paid are as follows: Deferred Funding Obligations (in millions) From April 1, 2019 to December 31, 2019 $ 45 2020 16 2021 5 Total $ 66 |
Credit Facilities (Tables)
Credit Facilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Additional Detail on Credit Facility | The following table provides additional detail on our senior credit facilities as of March 31, 2019 : Rep-Based Approval-Based Facility (dollars in millions) Outstanding balance $ 156 $ 127 Value of collateral pledged to credit facility 208 205 Weighted average short-term borrowing rate 4.0 % 4.3 % |
Schedule of Minimum Maturities of Debt | The stated minimum maturities to be paid under the amortization schedule to meet the required target loan balances as of March 31, 2019 are as follows: Future minimum maturities (in millions) April 1, 2019 to December 31, 2019 $ 8 2020 8 2021 8 2022 8 2023 15 Total $ 47 The stated minimum maturities of non-recourse debt as of March 31, 2019 , were as follows: Future minimum maturities (in millions) April 1, 2019 to December 31, 2019 $ 123 2020 24 2021 26 2022 27 2023 152 2024 34 Thereafter 445 Total minimum maturities $ 831 Deferred financing costs, net (16 ) Total non-recourse debt $ 815 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Non-Recourse Asset-Backed Debt and Bank Loans | We have outstanding the following asset-backed non-recourse debt and bank loans: Outstanding Balance Anticipated Value of Assets Pledged March 31, 2019 December 31, 2018 Interest Maturity Date March 31, 2019 December 31, 2018 Description (dollars in millions) HASI Sustainable Yield Bond 2013-1 $ 38 $ 55 2.79% December 2019 $ 35 $ 48 $ 76 Receivables HASI Sustainable Yield Bond 2015-1A 89 90 4.28% October 2034 — 135 135 Receivables, real estate and real estate intangibles HASI Sustainable Yield Bond 2015-1B Note 13 13 5.41% October 2034 — 135 135 Class B Bond of HASI Sustainable Yield Bond 2015-1 2017 Credit Agreement 103 112 4.12% January 2023 — 116 151 Equity interests in Strong Upwind Holdings I, II, III, and IV LLC, and Northern Frontier, LLC HASI SYB Loan Agreement 2015-2 30 32 6.67% (1) December 2023 — 71 72 Equity interest in Buckeye Wind Energy Class B Holdings LLC, related interest rate swap HASI SYB Trust 2016-2 78 77 4.35% April 2037 — 81 81 Receivables 2017 Master Repurchase Agreement 61 56 5.11% (1) July 2019 57 72 67 Receivables and investments HASI ECON 101 Trust 133 133 3.57% May 2041 — 137 137 Receivables and investments HASI SYB Trust 2017-1 158 159 3.86% March 2042 — 207 208 Receivables, real estate and real estate intangibles Other non-recourse debt (2) 128 125 3.15% - 7.45% 2019 to 2046 18 174 178 Receivables Debt issuance costs (16 ) (17 ) Non-recourse debt (3) $ 815 $ 835 (1) Interest rate represents the current period’s LIBOR based rate plus the spread. We have hedged the LIBOR rate exposure using interest rate swaps fixed at 2.55% and 2.42% for HASI SYB Loan Agreement 2015-2 and 2017 Master Repurchase Agreement, respectively. (2) Other non-recourse debt consists of various debt agreements used to finance certain of our 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 receivables. (3) The total collateral pledged against our non-recourse debt was $1,041 million and $1,105 million as of March 31, 2019 and December 31, 2018 , respectively. In addition, $42 million and $35 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of March 31, 2019 and December 31, 2018 , respectively. |
Schedule of Minimum Maturities of Debt | The stated minimum maturities to be paid under the amortization schedule to meet the required target loan balances as of March 31, 2019 are as follows: Future minimum maturities (in millions) April 1, 2019 to December 31, 2019 $ 8 2020 8 2021 8 2022 8 2023 15 Total $ 47 The stated minimum maturities of non-recourse debt as of March 31, 2019 , were as follows: Future minimum maturities (in millions) April 1, 2019 to December 31, 2019 $ 123 2020 24 2021 26 2022 27 2023 152 2024 34 Thereafter 445 Total minimum maturities $ 831 Deferred financing costs, net (16 ) Total non-recourse debt $ 815 |
Summary of Components of Convertible Notes | The following table presents a summary of the components of the convertible notes: March 31, 2019 December 31, 2018 (in millions) Principal $ 150 $ 150 Accrued interest 1 2 Less: Unamortized financing costs (4 ) (4 ) Carrying value of convertible notes $ 147 $ 148 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Summary of Dividends Declared by Board of Directors | Our board of directors declared the following dividends in 2018 and 2019 : Announced Date Record Date Pay Date Amount per 2/21/2018 4/4/2018 4/12/2018 $ 0.330 5/31/2018 7/5/2018 7/12/2018 0.330 9/12/2018 10/3/2018 10/11/2018 0.330 12/12/2018 12/26/2018 (1) 1/10/2019 0.330 2/21/2019 4/3/2019 4/11/2019 0.335 (1) This dividend was treated as a distribution in 2019 for tax purposes. |
Schedule of Common Stock Public Offerings and ATM | We completed the following public offerings (including ATM issuances) of our common stock in 2018 and 2019 : Closing Date Common Stock Offerings Shares Issued (1) Price Per Share Net Proceeds (2) (amounts in millions, except per share amounts) 5/18/18 to 6/25/18 ATM 0.834 18.76 (3) $ 15 11/15/18 to 12/11/18 ATM 2.777 23.37 (3) 64 12/17/2018 and 1/3/2019 Public Offering 5.465 21.60 (4) 117 1/23/19 to 3/21/19 ATM 1.603 23.39 (3) 37 (1) Includes shares issued in connection with the exercise of the underwriters’ option to purchase additional shares. (2) Net proceeds from the offerings are shown after deducting underwriting discounts, commissions and other offering costs. (3) Represents the average price per share at which investors in our ATM offerings purchased our shares. (4) Represents the price per share at which the underwriters in our public offerings purchased our shares. |
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, 2017 1,399,593 $ 18.73 $ 26.2 Granted 454,106 19.72 9.0 Vested (370,072 ) 18.88 (7.0 ) Forfeited (96,871 ) 18.92 (1.8 ) Ending Balance — December 31, 2018 1,386,756 $ 19.00 $ 26.4 Granted 148,401 23.96 3.5 Vested (551,502 ) 18.85 (10.4 ) Forfeited — — — Ending Balance — March 31, 2019 983,655 $ 19.83 $ 19.5 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 Units Weighted Average Share Price Value (in millions) Ending Balance — December 31, 2017 255,706 $ 18.99 $ 4.9 Granted 176,128 20.24 3.5 Vested (20,368 ) 18.99 (0.4 ) Forfeited (18,318 ) 19.05 (0.3 ) Ending Balance — December 31, 2018 393,148 $ 19.55 $ 7.7 Granted 44,492 25.03 1.1 Vested — — — Forfeited — — — Ending Balance — March 31, 2019 437,640 $ 20.10 $ 8.8 |
Earnings per Share of Common _2
Earnings per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, Numerator: 2019 2018 (in millions, except share and per share data) Net income (loss) attributable to controlling stockholders and participating securities $ 13.6 $ (1.2 ) Less: Dividends paid on participating securities (0.3 ) (0.5 ) Undistributed earnings attributable to participating securities — — Net income (loss) attributable to controlling stockholders $ 13.3 $ (1.7 ) Denominator: Weighted-average number of common shares — basic 61,748,906 51,710,910 Weighted-average number of common shares — diluted 62,365,271 51,710,910 Basic earnings per common share $ 0.22 $ (0.03 ) Diluted earnings per common share $ 0.21 $ (0.03 ) Other Information: Weighted-average number of OP units 277,586 283,963 Unvested restricted common stock outstanding (i.e., participating securities) 983,655 1,112,940 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | As of March 31, 2019 , we held the following equity method investments: Investment Date Investee Carrying Value (in millions) Various 2007 Vento I, LLC $ 93 December 2015 Buckeye Wind Energy Class B Holdings, LLC 71 Various Northern Frontier Wind, LLC 65 December 2018 3D Engie, LLC 49 October 2016 Invenergy Gunsight Mountain Holdings, LLC 37 Various Helix Fund I, LLC 26 Various Other transactions 118 Total equity method investments $ 459 The following is a summary of the consolidated financial position and results of operations of the significant entities accounted for using the equity method. Buckeye Wind Energy Class B Holdings, LLC Other Investments (1) Total (in millions) Balance Sheet As of December 31, 2018 Current assets $ 4 $ 248 $ 252 Total assets 276 3,732 4,008 Current liabilities 1 127 128 Total liabilities 12 1,060 1,072 Members' equity 264 2,672 2,936 As of December 31, 2017 Current assets 3 131 134 Total assets 286 2,894 3,180 Current liabilities 1 70 71 Total liabilities 11 319 330 Members' equity 275 2,575 2,850 Income Statement For the year ended December 31, 2018 Revenue 14 248 262 Income from continuing operations (6 ) (22 ) (28 ) Net income (6 ) (22 ) (28 ) For the year ended December 31, 2017 Revenue 12 254 266 Income from continuing operations (8 ) (49 ) (57 ) Net income (8 ) (49 ) (57 ) (1) Represents aggregated financial statement information for investments not separately presented. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Government and Commercial Receivables (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Financing receivable, past due period | 90 days |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Equity-Based Compensation (Details) - 2013 Plan [Member] - Restricted Stock Units [Member] | 3 Months Ended |
Mar. 31, 2019 | |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance target rate | 0.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance target rate | 200.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Segment Reporting (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Accounting Policies [Abstract] | |
Number of segment reported | 1 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value and Carrying Value of Financial Assets and Liabilities (Details - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value [Member] | Level 3 [Member] | Credit Facilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 283 | $ 259 |
Fair Value [Member] | Level 3 [Member] | Non-recourse Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 828 | 835 |
Fair Value [Member] | Level 3 [Member] | Government Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 463 | 487 |
Fair Value [Member] | Level 3 [Member] | Commercial Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 449 | 443 |
Fair Value [Member] | Level 3 [Member] | Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 178 | 170 |
Fair Value [Member] | Level 3 [Member] | Securitization Residual Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 77 | 71 |
Fair Value [Member] | Level 2 [Member] | Convertible Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 153 | 139 |
Carrying Value [Member] | Level 3 [Member] | Credit Facilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 283 | 259 |
Carrying Value [Member] | Level 3 [Member] | Non-recourse Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 831 | 852 |
Carrying Value [Member] | Level 3 [Member] | Government Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 464 | 497 |
Carrying Value [Member] | Level 3 [Member] | Commercial Receivables [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 454 | 447 |
Carrying Value [Member] | Level 3 [Member] | Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 178 | 170 |
Carrying Value [Member] | Level 3 [Member] | Securitization Residual Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 77 | 71 |
Carrying Value [Member] | Level 2 [Member] | Convertible Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 151 | $ 152 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Fair Value and Carrying Value of Financial Assets and Liabilities (Footnotes) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Amortized cost of investments | $ 179 | $ 173 |
Fair Value Measurements - Inves
Fair Value Measurements - Investments in Unrealized Loss Position (Details) - Debt Securities [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | $ 170 | $ 151 |
Purchases of investments | 7 | 4 |
Payments on investments | (1) | 0 |
Unrealized gains (losses) on investments recorded in AOCI | 2 | (3) |
Balance, end of period | $ 178 | $ 152 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Reconciliation of Level 3 Investments Securities (Footnotes) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Estimated Fair Value | ||
Securities with a loss shorter than 12 months | $ 11 | $ 82 |
Securities with a loss shorter than 12 months | 1 | 1 |
Unrealized Losses | ||
Securities with a loss longer than 12 months | 132 | 67 |
Securities with a loss longer than 12 months | $ 2 | $ 3 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Level 3 [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2017 | |
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 - Sch_2
Fair Value Measurements - Schedule of Cash Deposits Subject to Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Cash deposits | $ 62,091 | $ 21,418 |
Restricted cash deposits (included in other assets) | 44,000 | 38,000 |
Total cash deposits | 106,000 | 59,000 |
Amount of cash deposits in excess of amounts federally insured | $ 105,000 | $ 57,000 |
Non-Controlling Interest (Detai
Non-Controlling Interest (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Noncontrolling Interest [Line Items] | ||
Exchange of operating partnership units to common stock (in shares) | 0 | 3,703 |
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 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Gains on securitizations | $ 6,610 | $ 7,256 |
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 | 7,000 | 6,000 |
Purchase of receivables securitized | 302,000 | 129,000 |
Proceeds from securitizations | 309,000 | 135,000 |
Cash received from residual and servicing assets | 1,000 | 1,000 |
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 | $ 78,000 | $ 53,000 |
Securitization of Receivables_2
Securitization of Receivables - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Managed assets | $ 5,500,000,000 | $ 5,300,000,000 | |
Securitization credit losses | 0 | $ 0 | |
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 | ||
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 | $ 3,600,000,000 | $ 3,300,000,000 | |
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% | ||
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% |
Our Portfolio - Additional Info
Our Portfolio - Additional Information (Details) $ in Millions | Mar. 31, 2019USD ($) |
Investment Portfolios [Abstract] | |
Financing receivables, investments, real estate and equity method investments | $ 1,919 |
Our Portfolio - Analysis of Por
Our Portfolio - Analysis of Portfolio by Type of Obligor and Credit Quality (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Equity method investments | $ 458,916 | $ 471,044 |
Receivables | 918,000 | |
Real estate | 386,000 | |
Investments | 177,636 | $ 169,793 |
Total | 1,919,000 | |
Average remaining balance | 10,000 | |
Renewable Energy Projects [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equity method investments | 437,000 | |
Commercial Investment Grade [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Receivables | 167,000 | |
Real estate | 364,000 | |
Investments | 74,000 | |
Total | 605,000 | |
Average remaining balance | $ 6,000 | |
Commercial Investment Grade [Member] | Credit Concentration Risk [Member] | Debt and Real Estate Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Debt and real estate portfolio | 41.00% | |
Commercial Investment Grade [Member] | Renewable Energy Projects [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equity method investments | $ 0 | |
Commercial Non-Investment Grade [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Receivables | 286,000 | |
Real estate | 0 | |
Investments | 0 | |
Total | 286,000 | |
Average remaining balance | $ 14,000 | |
Commercial Non-Investment Grade [Member] | Credit Concentration Risk [Member] | Debt and Real Estate Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Debt and real estate portfolio | 20.00% | |
Commercial Non-Investment Grade [Member] | Renewable Energy Projects [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equity method investments | $ 0 | |
Government [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Receivables | 465,000 | |
Real estate | 0 | |
Investments | 104,000 | |
Total | 569,000 | |
Average remaining balance | $ 11,000 | |
Government [Member] | Credit Concentration Risk [Member] | Debt and Real Estate Portfolio [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
% of Debt and real estate portfolio | 39.00% | |
Government [Member] | Renewable Energy Projects [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equity method investments | $ 0 | |
Subtotal, Debt and Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Receivables | 918,000 | |
Real estate | 364,000 | |
Investments | 178,000 | |
Total | 1,460,000 | |
Average remaining balance | $ 9,000 | |
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% | |
Subtotal, Debt and Real Estate [Member] | Renewable Energy Projects [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equity method investments | $ 0 | |
Equity Method Investments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Receivables | 0 | |
Real estate | 22,000 | |
Investments | 0 | |
Total | 459,000 | |
Average remaining balance | 16,000 | |
Equity Method Investments [Member] | Renewable Energy Projects [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equity method investments | $ 437,000 |
Our Portfolio - Analysis of P_2
Our Portfolio - Analysis of Portfolio by Type of Obligor and Credit Quality (Footnotes) (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)transaction | Dec. 31, 2018USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivables on non accrual status | $ 0 | $ 0 |
Number of transactions | transaction | 170 | |
Financial receivable outstanding | $ 10,000,000 | |
Total aggregate remaining balance | 61,000,000 | |
Maximum [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financial receivable outstanding | 1,000,000 | |
Commercial Non-Investment Grade [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Increase in finance receivables | 18,000,000 | |
Financing receivables on non accrual status | 8,000,000 | |
Financial receivable outstanding | 14,000,000 | |
Investment Grade by Independent Rating Agency [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivable | 9,000,000 | |
U.S. Federal Government [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivable | 382,000,000 | |
State, Local, Institutions [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total financing receivable | 187,000,000 | |
Residential Solar Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 260,000,000 |
Our Portfolio - Equity Method I
Our Portfolio - Equity Method Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | $ 458,916 | $ 471,044 |
2007 Vento I, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | 93,000 | |
Buckeye Wind Energy Class B Holdings, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | 71,000 | |
Northern Frontier Wind, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | 65,000 | |
3D Engie, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | 49,000 | |
Invenergy Gunsight Mountain Holdings, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | 37,000 | |
Helix Fund, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | 26,000 | |
Other Transactions [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | $ 118,000 |
Our Portfolio - Equity Method_2
Our Portfolio - Equity Method Investments, Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 458,916,000 | $ 471,044,000 |
OTTI on equity method investments | 0 | 0 |
Sponsor of Wind Project [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Impairment of project | 8,000,000 | 12,000,000 |
Investment Contracts [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in project | 2,000,000 | |
Investment Contracts [Member] | Wind Projects [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 14,000,000 | |
U.S. Virgin Islands [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Insurance recoveries | $ 8,000,000 |
Our Portfolio - Summary of Anti
Our Portfolio - Summary of Anticipated Maturity Dates of Financing Receivables and Investments and Weighted Average Yield (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Maturities by period | |
Total | $ 918 |
Less than 1 year | 3 |
1-5 years | 22 |
5-10 years | 78 |
More than 10 years | $ 815 |
Weighted average yield by period | |
Total | 6.60% |
Less than 1 year | 4.50% |
1-5 years | 6.20% |
5-10 years | 5.30% |
More than 10 years | 6.70% |
Maturities by period | |
Total | $ 178 |
Less than 1 year | 64 |
1-5 years | 0 |
5-10 years | 13 |
More than 10 years | $ 101 |
Weighted average yield by period | |
Total | 4.30% |
Less than 1 year | 3.60% |
1-5 years | 0.00% |
5-10 years | 4.10% |
More than 10 years | 4.70% |
Our Portfolio - Receivables and
Our Portfolio - Receivables and Investments, Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing receivables on non accrual status | $ 0 | $ 0 | |
Provision for credit losses | 0 | 0 | |
Loan modifications that qualify as troubled debt restructurings | 0 | $ 0 | |
Land [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Proceeds from lease payments | $ 1,600,000 | ||
Commercial Non-Investment Grade [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing receivables on non accrual status | $ 8,000,000 |
Our Portfolio - Components of R
Our Portfolio - Components of Real Estate Portfolio (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Real Estate Properties [Line Items] | ||
Real estate | $ 365 | $ 365 |
Accumulated amortization of lease intangibles | (8) | (8) |
Land [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate | 269 | 269 |
Lease Intangibles [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate | $ 104 | $ 104 |
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 (Details) $ in Millions | Mar. 31, 2019USD ($) |
Future Amortization Expense | |
From April 1, 2019 to December 31, 2019 | $ 2 |
2020 | 3 |
2021 | 3 |
2022 | 3 |
2023 | 3 |
2024 | 3 |
Thereafter | 79 |
Total | 96 |
Minimum Rental Income Payments | |
From April 1, 2019 to December 31, 2019 | 17 |
2020 | 22 |
2021 | 22 |
2022 | 22 |
2023 | 23 |
2024 | 24 |
Thereafter | 769 |
Total | $ 899 |
Our Portfolio - Deferred Fundin
Our Portfolio - Deferred Funding Obligations, Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investment Portfolios [Abstract] | ||
Deferred funding obligations | $ 66,350 | $ 72,100 |
Escrow deposits | $ 63,000 | $ 68,000 |
Our Portfolio - Outstanding Def
Our Portfolio - Outstanding Deferred Funding Obligations to be Paid (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investment Portfolios [Abstract] | ||
From April 1, 2019 to December 31, 2019 | $ 45,000 | |
2020 | 16,000 | |
2021 | 5,000 | |
Total | $ 66,350 | $ 72,100 |
Credit Facilities - Senior Cred
Credit Facilities - Senior Credit Facilities (Details) - Senior Secured Revolving Credit Facility [Member] | 3 Months Ended |
Mar. 31, 2019USD ($)debt_instrument | |
Line of Credit Facility [Line Items] | |
Number of revolving credit facilities | debt_instrument | 2 |
Unamortized issuance costs | $ 8,000,000 |
Default underlying financings (percent) | 50.00% |
LIBOR [Member] | Credit Default Option [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (as a percent) | 2.00% |
Rep-Based Facility [Member] | |
Line of Credit Facility [Line Items] | |
Principal amount | $ 250,000,000 |
Availability fee percentage | 0.60% |
Rep-Based Facility [Member] | U.S. Federal Government [Member] | |
Line of Credit Facility [Line Items] | |
Applicable valuation percentages | 85.00% |
Rep-Based Facility [Member] | Institutional [Member] | |
Line of Credit Facility [Line Items] | |
Applicable valuation percentages | 80.00% |
Rep-Based Facility [Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (as a percent) | 1.40% |
Fixed interest rate | 1.85% |
Rep-Based Facility [Member] | Federal Funds Rate [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (as a percent) | 0.40% |
Fixed interest rate | 0.85% |
Approval-Based Facility [Member] | |
Line of Credit Facility [Line Items] | |
Principal amount | $ 200,000,000 |
Approval-Based Facility [Member] | Certain Approved Existing Financing [Member] | |
Line of Credit Facility [Line Items] | |
Applicable valuation percentages | 85.00% |
Approval-Based Facility [Member] | Others as Prescribed by Administrative Agent [Member] | |
Line of Credit Facility [Line Items] | |
Applicable valuation percentages | 67.00% |
Approval-Based Facility [Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (as a percent) | 1.50% |
Fixed interest rate | 2.00% |
Approval-Based Facility [Member] | Federal Funds Rate [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (as a percent) | 0.50% |
Fixed interest rate | 1.00% |
Credit Facilities - Schedule of
Credit Facilities - Schedule of Credit Facilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 283,381 | $ 258,592 |
Senior Secured Revolving Credit Facility [Member] | Rep-Based Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Outstanding balance | 156,000 | 127,000 |
Value of collateral pledged to credit facility | $ 208,000 | $ 205,000 |
Weighted average short-term borrowing rate | 4.00% | 4.30% |
Credit Facilities - Schedule _2
Credit Facilities - Schedule of Minimum Maturities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Total non-recourse debt | $ 815 | $ 835 |
Senior Secured Revolving Credit Facility [Member] | Rep-Based Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
April 1, 2019 to December 31, 2019 | 8 | |
2020 | 8 | |
2021 | 8 | |
2022 | 8 | |
2023 | 15 | |
Total non-recourse debt | $ 47 |
Long-term Debt - Schedule of Ou
Long-term Debt - Schedule of Outstanding Non-Recourse Asset-Backed Debt and Bank Loans (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Debt issuance costs | $ (16) | $ (17) |
Total non-recourse debt | 815 | 835 |
Asset-Backed Non-recourse Debt [Member] | HASI Sustainable Yield Bond 2013-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 38 | 55 |
Interest Rate | 2.79% | |
Anticipated Balance at Maturity | $ 35 | |
Value of Assets Pledged, Receivables | 48 | 76 |
Asset-Backed Non-recourse Debt [Member] | HASI Sustainable Yield Bond 2015-1A [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 89 | 90 |
Interest Rate | 4.28% | |
Anticipated Balance at Maturity | $ 0 | |
Value of Assets Pledged, Receivables | 135 | 135 |
Asset-Backed Non-recourse Debt [Member] | HASI Sustainable Yield Bond 2015-1B Note [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 13 | 13 |
Interest Rate | 5.41% | |
Anticipated Balance at Maturity | $ 0 | |
Value of Assets Pledged, Other | 135 | 135 |
Asset-Backed Non-recourse Debt [Member] | 2017 Credit Agreement [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 103 | 112 |
Interest Rate | 4.12% | |
Anticipated Balance at Maturity | $ 0 | |
Value of Assets Pledged, Other | 116 | 151 |
Asset-Backed Non-recourse Debt [Member] | HASI SYB Loan Agreement 2015-2 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 30 | 32 |
Interest Rate | 6.67% | |
Anticipated Balance at Maturity | $ 0 | |
Value of Assets Pledged, Other | 71 | 72 |
Asset-Backed Non-recourse Debt [Member] | HASI SYB Trust 2016-2 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 78 | 77 |
Interest Rate | 4.35% | |
Anticipated Balance at Maturity | $ 0 | |
Value of Assets Pledged, Receivables | 81 | 81 |
Asset-Backed Non-recourse Debt [Member] | 2017 Master Repurchase Agreement [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 61 | 56 |
Interest Rate | 5.11% | |
Anticipated Balance at Maturity | $ 57 | |
Value of Assets Pledged, Receivables | 72 | 67 |
Asset-Backed Non-recourse Debt [Member] | HASI ECON 101 Trust [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 133 | 133 |
Interest Rate | 3.57% | |
Anticipated Balance at Maturity | $ 0 | |
Value of Assets Pledged, Receivables | 137 | 137 |
Asset-Backed Non-recourse Debt [Member] | HASI SYB Trust 2017-1 [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Balance | $ 158 | 159 |
Interest Rate | 3.86% | |
Anticipated Balance at Maturity | $ 0 | |
Value of Assets Pledged, Receivables | 207 | 208 |
Other Non-recourse Debt [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Other non-recourse debt | 128 | 125 |
Anticipated Balance at Maturity | 18 | |
Value of Assets Pledged, Receivables | $ 174 | $ 178 |
Other Non-recourse Debt [Member] | Minimum [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Interest Rate | 3.15% | |
Other Non-recourse Debt [Member] | Maximum [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Interest Rate | 7.45% |
Long-term Debt - Schedule of _2
Long-term Debt - Schedule of Outstanding Non-Recourse Asset-Backed Debt and Bank Loans (Footnotes) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Collateral Pledged [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 42 | $ 35 |
Asset-Backed Non-recourse Debt [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total collateral pledged against our nonrecourse debt | $ 1,041 | $ 1,105 |
HASI SYB Loan Agreement 2015-2 [Member] | Interest Rate Swap [Member] | Asset-Backed Non-recourse Debt [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Derivative rate | 2.55% | |
2017 Master Repurchase Agreement [Member] | Interest Rate Swap [Member] | Asset-Backed Non-recourse Debt [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Derivative rate | 2.42% |
Long-term Debt - Schedule of Mi
Long-term Debt - Schedule of Minimum Maturities of Non-recourse Debt (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Future minimum maturities | ||
Deferred financing costs, net | $ (16) | $ (17) |
Total non-recourse debt | 815 | $ 835 |
Non-recourse Debt [Member] | ||
Future minimum maturities | ||
April 1, 2019 to December 31, 2019 | 123 | |
2020 | 24 | |
2021 | 26 | |
2022 | 27 | |
2023 | 152 | |
2024 | 34 | |
Thereafter | 445 | |
Total minimum maturities | 831 | |
Deferred financing costs, net | (16) | |
Total non-recourse debt | $ 815 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) | Apr. 04, 2019$ / shares | Mar. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018$ / shares | Jun. 30, 2018$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||||
Principal, net of issuance costs | $ 815,000,000 | $ 835,000,000 | |||||
Dividends declared per share (in usd per share) | $ / shares | $ 0.335 | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.33 | ||
Total interest expense | $ 15,430,000 | $ 18,711,000 | |||||
Convertible Senior Notes [Member] | 4.125% Convertible Senior Notes Due September 1, 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 150,000,000 | $ 150,000,000 | |||||
Principal, net of issuance costs | $ 145,000,000 | ||||||
Interest rate | 4.125% | ||||||
Adjustment for dividends declared (in usd per share) | $ / shares | $ 0.335 | ||||||
Redemption price, percentage | 100.00% | ||||||
Total interest expense | $ 2,000,000 | $ 2,000,000 | |||||
Convertible Senior Notes [Member] | 4.125% Convertible Senior Notes Due September 1, 2022 [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Conversion rate of shares for each $1,000 principal amount of convertible notes | 36.7179 | ||||||
Conversion price per share (in usd per share) | $ / shares | $ 27.23 |
Long-term Debt - Summary of Com
Long-term Debt - Summary of Components of Convertible Notes (Details) - Convertible Senior Notes [Member] - 4.125% Convertible Senior Notes Due September 1, 2022 [Member] - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Principal | $ 150,000,000 | $ 150,000,000 |
Accrued interest | 1,000,000 | 2,000,000 |
Unamortized financing costs | (4,000,000) | (4,000,000) |
Carrying value of convertible notes | $ 147,000,000 | $ 148,000,000 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (2,270) | $ 18 |
Federal benefit (as a percent) | 3.00% | 3.00% |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared by Board of Directors (Details) - $ / shares | 3 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Equity [Abstract] | |||||
Amount per share (in usd per share) | $ 0.335 | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.33 |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Public Offerings and ATM (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net Proceeds | $ 46,388 | $ 0 | ||
ATM [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Issued (in shares) | 1,603 | 2,777 | 834 | |
Price Per Share (in usd per share) | $ 23.39 | $ 23.37 | $ 18.76 | |
Net Proceeds | $ 37,000 | $ 64,000 | $ 15,000 | |
Public Offering [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Issued (in shares) | 5,465 | |||
Price Per Share (in usd per share) | $ 21.60 | |||
Net Proceeds | $ 117,000 |
Equity - Additional Information
Equity - Additional Information (Details) - 2013 Plan [Member] - Restricted Stock and Restricted Stock Units [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares awarded (in shares) | 192,893 | |
Equity-based compensation expense | $ 4 | $ 2 |
Unrecognized compensation expense | $ 13 | |
Weighted-average term in which unrecognized compensation expense is expected to be recognized | 2 years |
Equity - Summary of Unvested Sh
Equity - Summary of Unvested Shares of Restricted Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Restricted Shares of Common Stock [Member] | ||
Shares | ||
Beginning Balance (in shares) | 1,386,756 | 1,399,593 |
Granted (in shares) | 148,401 | 454,106 |
Vested (in shares) | (551,502) | (370,072) |
Forfeited (in shares) | 0 | (96,871) |
Ending Balance (in shares) | 983,655 | 1,386,756 |
Weighted Average Share Price | ||
Beginning Balance (in usd per share) | $ 19 | $ 18.73 |
Granted (in usd per share) | 23.96 | 19.72 |
Vested (in usd per share) | 18.85 | 18.88 |
Forfeited (in usd per share) | 0 | 18.92 |
Ending Balance (in usd per share) | $ 19.83 | $ 19 |
Value | ||
Beginning Balance | $ 26.4 | $ 26.2 |
Granted | 3.5 | 9 |
Vested | (10.4) | (7) |
Forfeited | 0 | (1.8) |
Ending Balance | $ 19.5 | $ 26.4 |
Restricted Stock Units [Member] | ||
Shares | ||
Beginning Balance (in shares) | 393,148 | 255,706 |
Granted (in shares) | 44,492 | 176,128 |
Vested (in shares) | 0 | (20,368) |
Forfeited (in shares) | 0 | (18,318) |
Ending Balance (in shares) | 437,640 | 393,148 |
Weighted Average Share Price | ||
Beginning Balance (in usd per share) | $ 19.55 | $ 18.99 |
Granted (in usd per share) | 25.03 | 20.24 |
Vested (in usd per share) | 0 | 18.99 |
Forfeited (in usd per share) | 0 | 19.05 |
Ending Balance (in usd per share) | $ 20.10 | $ 19.55 |
Value | ||
Beginning Balance | $ 7.7 | $ 4.9 |
Granted | 1.1 | 3.5 |
Vested | 0 | (0.4) |
Forfeited | 0 | (0.3) |
Ending Balance | $ 8.8 | $ 7.7 |
Earnings per Share of Common _3
Earnings per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income (loss) attributable to controlling stockholders and participating securities | $ 13,647 | $ (1,223) |
Less: Dividends paid on participating securities | (300) | (500) |
Undistributed earnings attributable to participating securities | 0 | 0 |
Net income (loss) attributable to controlling stockholders | $ 13,300 | $ (1,700) |
Denominator: | ||
Weighted average common shares outstanding — basic (in shares) | 61,748,906 | 51,710,910 |
Weighted average common shares outstanding — diluted (in shares) | 62,365,271 | 51,710,910 |
Basic earnings per common share (in usd per share) | $ 0.22 | $ (0.03) |
Diluted earnings per common share (in usd per share) | $ 0.21 | $ (0.03) |
Other Information: | ||
Weighted-average number of OP units (in shares) | 277,586 | 283,963 |
Unvested restricted common stock outstanding (i.e. participating securities) (in shares) | 983,655 | 1,112,940 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Income (loss) from equity method investments | $ 4,506 | $ (2,285) |
Equity Method Investments - Sum
Equity Method Investments - Summary of Consolidated Financial Position and Results of Operations of Significant Entities, Accounted for Using Equity Method (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Balance Sheet | ||
Current assets | $ 252 | $ 134 |
Total assets | 4,008 | 3,180 |
Current liabilities | 128 | 71 |
Total liabilities | 1,072 | 330 |
Members’ equity | 2,936 | 2,850 |
Income Statement | ||
Revenue | 262 | 266 |
Income from continuing operations | (28) | (57) |
Net income | (28) | (57) |
Buckeye Wind Energy Class B Holdings, LLC [Member] | ||
Balance Sheet | ||
Current assets | 4 | 3 |
Total assets | 276 | 286 |
Current liabilities | 1 | 1 |
Total liabilities | 12 | 11 |
Members’ equity | 264 | 275 |
Income Statement | ||
Revenue | 14 | 12 |
Income from continuing operations | (6) | (8) |
Net income | (6) | (8) |
Other Investments [Member] | ||
Balance Sheet | ||
Current assets | 248 | 131 |
Total assets | 3,732 | 2,894 |
Current liabilities | 127 | 70 |
Total liabilities | 1,060 | 319 |
Members’ equity | 2,672 | 2,575 |
Income Statement | ||
Revenue | 248 | 254 |
Income from continuing operations | (22) | (49) |
Net income | $ (22) | $ (49) |