Our Portfolio (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| Receivables [Abstract] |
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| Analysis of Portfolio by Type of Obligor and Credit Quality |
The following is an analysis of our Portfolio by type of obligor
and credit quality as of December 31, 2016:
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Investment Grade |
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Government (1) |
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Commercial
Investment
Grade (2) |
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Commercial
Non-Investment
Grade (3) |
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Subtotal,
Debt
and Real
Estate |
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Equity
Method
Investments (4) |
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Total |
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(dollars in
millions) |
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Financing receivables
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$ |
526 |
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$ |
494 |
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$ |
22 |
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$ |
1,042 |
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$ |
— |
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$ |
1,042 |
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Investments
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38 |
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20 |
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— |
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58 |
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— |
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58 |
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Real estate (5)
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— |
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172 |
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— |
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172 |
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— |
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172 |
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Equity method investments
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— |
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— |
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— |
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— |
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363 |
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363 |
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Total
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$ |
564 |
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$ |
686 |
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$ |
22 |
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$ |
1,272 |
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$ |
363 |
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$ |
1,635 |
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% of Debt and Real Estate Portfolio
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44 |
% |
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54 |
% |
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2 |
% |
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100 |
% |
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N/A |
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N/A |
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Average Remaining Balance (6)
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$ |
12 |
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$ |
10 |
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$ |
11 |
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$ |
11 |
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$ |
19 |
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$ |
12 |
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| (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 $337 million of U.S. federal
government transactions and $227 million of transactions where
the ultimate obligors are state or local governments. Transactions
may have guaranties of energy savings from third party service
providers, the majority of which are entities rated investment
grade by an independent rating agency. |
| (2) |
Transactions where the projects or
the ultimate obligors are commercial entities, including
institutions such as hospitals or universities, that have been
rated investment grade (either by an independent rating agency or
based on our internal credit analysis). Of this total,
$10 million of the transactions have been rated investment
grade by an independent rating agency. Commercial investment grade
financing receivables include $289 million of internally rated
residential solar loans made on a nonrecourse basis to special
purpose subsidiaries of SunPower Corporation, for which we rely on
certain limited indemnities, warranties and other obligations of
SunPower Corporation or its other subsidiaries. |
| (3) |
Transactions where the projects or
the ultimate obligors are commercial entities, including
institutions such as hospitals or universities, that have ratings
below investment grade (either by an independent rating agency or
using our internal credit analysis). |
| (4) |
Consists of ownership interests in
operating renewable energy projects. |
| (5) |
Includes the real estate and the
lease intangible assets through which we receive scheduled lease
payments, typically under long-term triple net lease
agreements. |
| (6) |
Excludes 88 transactions each with
outstanding balances that are less than $1 million and that in
the aggregate total $31 million. |
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| Components of Financing Receivables |
The components of financing receivables of December 31, 2016
and 2015 were as follows:
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December 31, |
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2016
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2015
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(dollars in
millions) |
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Financing receivables
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Financing or minimum lease payments (1)
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$ |
1,395 |
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$ |
1,025 |
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Unearned interest income
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(351 |
) |
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(238 |
) |
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Unearned fee income, net of initial direct costs
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(2 |
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(3 |
) |
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Financing receivables (1)
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$ |
1,042 |
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$ |
784 |
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| (1) |
Excludes $60 million in
financing receivables held-for-sale as of December 31,
2015. |
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| Summary of Anticipated Maturity Dates of Financing Receivables and Investments and Weighted Average Yield |
The following table provides a summary of our anticipated maturity
dates of our financing receivables and investments and the weighted
average yield for each range of maturities as of December 31,
2016:
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Total |
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Less than 1 year
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1-5 years |
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5-10 years |
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More than 10
years
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(dollars in
millions) |
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Financing Receivables
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Maturities by period
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$ |
1,042 |
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$ |
1 |
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$ |
39 |
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$ |
88 |
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$ |
914 |
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Weighted average yield by period
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5 |
% |
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5 |
% |
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7 |
% |
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5 |
% |
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5 |
% |
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Investments
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Maturities by period
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$ |
58 |
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$ |
— |
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$ |
— |
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$ |
1 |
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$ |
57 |
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Weighted average yield by period
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4 |
% |
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— |
% |
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— |
% |
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5 |
% |
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4 |
% |
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| Components of Real Estate Portfolio |
The components of
our real estate portfolio as of December 31, 2016 and 2015
were as follows:
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December 31, |
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2016
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2015
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(dollars
in million) |
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Real Estate
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Land
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$ |
145 |
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$ |
129 |
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Real estate related intangibles
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29 |
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28 |
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Accumulated amortization of real estate intangibles
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(2 |
) |
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(1 |
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Real Estate
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$ |
172 |
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$ |
156 |
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| Schedule of Future Amortization Expenses Related to Intangible Assets and Future Minimum Rental Income Payments under Land Lease Agreements |
As of December 31, 2016, the future amortization expense of
these intangible assets and the future minimum rental income
payments under our land lease agreements are as follows:
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Year Ending December 31,
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Future
Amortization
Expense |
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Minimum
Rental
Income
Payments |
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(dollars in
millions) |
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2017
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$ |
1 |
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$ |
10 |
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2018
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1 |
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11 |
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2019
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1 |
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11 |
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2020
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1 |
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11 |
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2021
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1 |
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11 |
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Thereafter
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22 |
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324 |
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Total
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$ |
27 |
|
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$ |
378 |
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| Summary of Unaudited Pro Forma Information |
The unaudited pro forma summary below presents the consolidated
results of operations as if the acquisition was completed on
January 1, 2013. The pro forma information is not necessarily
indicative of what our actual results of operations would have been
for the period, nor does it purport to represent our estimate of
future results of operations.
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For the year ended
December 31, 2014 |
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(dollars in millions, unaudited) |
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Pro forma total revenue
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$ |
32 |
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Pro forma net income (loss)
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$ |
12 |
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| Schedule of Purchase Price Allocation |
The purchase price allocation for this business combination, which
reflects our estimates of the fair value of the assets acquired
with the assistance of a qualified appraiser, along with $19
million of other separately acquired transactions is as follows
(dollars in millions, unaudited):
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Financing receivables
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$ |
37 |
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Real estate
|
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67 |
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Real estate related intangibles
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20 |
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Goodwill
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2 |
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Purchase Price
|
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$ |
126 |
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