Quarterly report pursuant to Section 13 or 15(d)

Our Portfolio (Tables)

v3.19.1
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,
Debt and
Real Estate
 
Equity 
Method
Investments
 
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
year
 
1-5 years
 
5-10 years
 
More than 10
years
 
(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