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 June 30, 2021 included in Enviva’s quarterly report on Form 10-Q for the quarter ended June 30, 2021: As of June 30, 2021 As Reported Common Control Entities Acquired Total (Recast) Assets Current assets: Cash and cash equivalents $ 42,901 $ 121,800 $ 164,701 Restricted cash — 1,561 1,561 Accounts receivable 74,398 — 74,398 Other accounts receivable — 12,296 12,296 Inventories 47,662 4,056 51,718 Prepaid expenses and other current assets 13,501 (6,782) 6,719 Total current assets 178,462 132,931 311,393 Property, plant, and equipment, net 1,114,521 260,779 1,375,300 Operating lease right-of-use assets 49,539 60,176 109,715 Goodwill 99,660 — 99,660 Other long-term assets 10,526 2,232 12,758 Total assets $ 1,452,708 $ 456,118 $ 1,908,826 Liabilities and Equity Current liabilities: Accounts payable $ 28,041 $ 12,185 $ 40,226 Related-party payables, net 4,581 (4,581) — Accrued and other current liabilities 99,342 47,682 147,024 Current portion of interest payable 23,966 827 24,793 Current portion of long-term debt and finance lease obligations 12,056 1,349 13,405 Related-party note and interest payable — 23,731 23,731 Total current liabilities 167,986 81,193 249,179 Long-term debt and finance lease obligations 789,451 310,061 1,099,512 Long-term operating lease liabilities 48,368 66,468 114,836 Deferred tax liabilities, net 13,224 11,030 24,254 Other long-term liabilities 13,154 25,211 38,365 Total liabilities 1,032,183 493,963 1,526,146 Commitments and contingencies Total equity 420,525 (37,845) 382,680 Total liabilities and equity $ 1,452,708 $ 456,118 $ 1,908,826 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 and six months ended June 30, 2021 included in Enviva’s quarterly report on Form 10-Q for the quarter ended June 30, 2021: Three Months Ended June 30, 2021 As Reported Common Control Entities Acquired Total (Recast) Net revenue $ 285,042 $ 921 $ 285,963 Income (loss) from operations 15,481 (23,510) (8,029) Net income (loss) 2,645 (27,496) (24,851) Less net (income) loss attributable to noncontrolling interests (57) 3,576 3,519 Net income (loss) attributable to Enviva Inc. 2,588 (23,920) (21,332) Six Months Ended June 30, 2021 As Reported Common Control Entities Acquired Total (Recast) Net revenue $ 526,086 $ 1,498 $ 527,584 Income (loss) from operations 26,520 (45,137) (18,617) Net income (loss) 1,180 (49,206) (48,026) Less net (income) loss attributable to noncontrolling interests (82) 10,905 10,823 Net income (loss) attributable to Enviva Inc. 1,098 (38,301) (37,203) 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 six months ended June 30, 2021 included in Enviva’s quarterly report on Form 10-Q for the quarter ended June 30, 2021: Six Months Ended June 30, 2021 As Reported Common Control Entities Acquired Total (Recast) Net cash provided by (used in) operating activities $ 111,438 $ (49,267) $ 62,171 Net cash used in investing activities (72,872) (81,111) (153,983) Net cash (used in) provided by financing activities (5,669) 196,068 190,399 Net increase in cash, cash equivalents, and restricted cash $ 32,897 $ 65,690 $ 98,587 |