Transactions between entities under common control - Recast of Historical Financial Information | Transactions Between Entities Under Common Control Recast of Historical Financial Statements The Simplification Transaction was a business combination of entities under common control and net assets acquired were combined at their historical costs with a change in reporting entity. Accordingly, the condensed consolidated financial statements have been retroactively recast to reflect the Simplification Transaction as if the Simplification Transaction had occurred on March 18, 2010, the date Holdings was originally organized. While the Partnership was the surviving entity for legal purposes, Holdings is the surviving entity for accounting purposes. As a result, the historical financial results prior to the Simplification Transaction are those of Holdings. Prior to the Simplification Transaction, Holdings controlled the Partnership so the financial statements of the Partnership were consolidated into the financial statements of Holdings and the common units of the Partnership held by the public are reflected as a noncontrolling interest. The following table presents changes as a result of the Simplification Transaction for the common control entities acquired to previously reported amounts in the unaudited condensed consolidated balance sheet as of March 31, 2021 included in Enviva’s quarterly report on Form 10-Q for the quarter ended March 31, 2021: As of March 31, 2021 As Reported Common Control Entities Acquired Total (Recast) Assets Current assets: Cash and cash equivalents $ 3,388 $ 159,909 $ 163,297 Restricted cash — 1,561 1,561 Accounts receivable 83,257 1 83,258 Other accounts receivable — 13,401 13,401 Inventories 59,947 3,680 63,627 Prepaid expenses and other current assets 15,028 (7,833) 7,195 Total current assets 161,620 170,719 332,339 Property, plant, and equipment, net 1,090,489 204,445 1,294,934 Operating lease right-of-use assets 50,509 58,990 109,499 Goodwill 99,660 — 99,660 Other long-term assets 9,629 1,614 11,243 Total assets $ 1,411,907 $ 435,768 $ 1,847,675 Liabilities and Equity Current liabilities: Accounts payable $ 28,540 $ 10,338 $ 38,878 Related-party payables, net 10,986 (10,986) — Accrued liabilities and other current liabilities 79,637 33,383 113,020 Current portion of interest payable 11,706 887 12,593 Current portion of long-term debt and finance lease obligations 12,446 836 13,282 Related-party note and interest payable — 23,379 23,379 Deferred revenue — 37 37 Total current liabilities 143,315 57,874 201,189 Long-term debt and finance lease obligations 955,347 315,623 1,270,970 Long-term operating lease liabilities 49,277 62,381 111,658 Deferred tax liabilities, net 13,199 11,319 24,518 Other long-term liabilities 13,011 15,916 28,927 Total liabilities 1,174,149 463,113 1,637,262 Commitments and contingencies Total equity 237,758 (27,345) 210,413 Total liabilities and equity $ 1,411,907 $ 435,768 $ 1,847,675 The recast unaudited interim condensed consolidated balance sheet resulting from the Simplification Transaction separately presents “Other accounts receivable”, which included some amounts that had been previously reported as “Prepaid expenses and other current assets.” The following tables present the changes as a result of the Simplification Transaction to previously reported amounts in the unaudited interim condensed consolidated statements of operations for the three months ended March 31, 2021 included in Enviva’s quarterly report on Form 10-Q for the quarter ended March 31, 2021: Three Months Ended March 31, 2021 As Reported Common Control Entities Acquired Total (Recast) Net revenue $ 241,044 $ 577 $ 241,621 Income (loss) from operations 11,039 (21,627) (10,588) Net loss (1,465) (21,710) (23,175) Less net (income) loss attributable to noncontrolling interests (25) 7,329 7,304 Net loss attributable to Enviva Inc. (1,490) (14,381) (15,871) The following tables present the changes as a result of the Simplification Transaction to previously reported amounts in the unaudited interim condensed consolidated statements of cash flows for the three months ended March 31, 2021 included in Enviva’s quarterly report on Form 10-Q for the quarter ended March 31, 2021: Three Months Ended March 31, 2021 As Reported Common Control Entities Acquired Total (Recast) Net cash provided by (used in) operating activities $ 37,713 $ (39,282) $ (1,569) Net cash used in investing activities (37,142) (40,520) (77,662) Net cash (used in) provided by financing activities (7,187) 183,601 176,414 Net (decrease) increase in cash, cash equivalents and restricted cash $ (6,616) $ 103,799 $ 97,183 |