Annual report pursuant to Section 13 and 15(d)

Financing Receivables and Investments (Tables)

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Financing Receivables and Investments (Tables)
 12 Months Ended
Dec. 31, 2013
Receivables [Abstract]  
Analysis of Financing Receivables and Investments by Type of Obligor and Credit Quality

The financing receivables and investments are typically collateralized 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 following is an analysis of financing receivables and investments by type of obligor and credit quality as of December 31, 2013.

 

     Investment Grade              
     Federal(1)     State, Local,
Institutions (2) 		    Commercial
Externally
Rated (3) 		    Commercial
Rated
Internally(4) 		    Commercial
Other(5) 		    Total  
     (amounts in millions, except for percentage)  

Financing receivables

    $ 229.8      $ 73.3      $ —        $ 43.9      $ 0.8      $ 347.8   

Investments

      —        —          76.9        —          15.1        92.0   

Financing receivables and investments held-for-sale

      24.8        —          —          —          3.2        28.0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 254.6      $ 73.3      $ 76.9      $ 43.9      $ 19.1      $ 467.8   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

% of Total Portfolio

      55 %      16 %      16 %      9 %      4 %      100 % 

Average Remaining Balance (6)

    $ 10.9      $ 24.4      $ 25.6      $ 21.9      $ 9.2      $ 14.0   

 

(1) Transactions where the ultimate obligor is the Federal Government. Transactions may have guaranties of energy savings from third party service providers, the majority of which are investment grade rated entities. Included in this category are transactions totaling $17.7 million where $1.3 million of payments has been delayed more than 90 days due to a change in a government payment processing system. The payments were made in the first quarter of 2014. The entire balance is considered collectable.
(2) Transactions where the ultimate obligors are state or local governments or institutions such as hospitals or universities where the obligors are rated investment grade (either by an independent rating agency or based upon our credit analysis). Transactions may have guaranties of energy savings from third party service providers, the majority of which are investment grade rated entities.
(3) Transactions where the projects or the ultimate obligors are commercial entities that have been rated investment grade by one or more independent rating agencies. This includes an investment grade rated debt security with a carrying value of $37.0 million that matures in 2035 whose obligor is an entity whose ultimate parent is Berkshire Hathaway Inc. and an investment grade rated debt security with a carrying value of $35.0 million that matures in 2033 whose obligor is an entity whose ultimate parent is Exelon Corporation. In each case, the carrying value approximates the estimated fair value.
(4) Transactions where the projects or the ultimate obligors are commercial entities that have been rated investment grade using our internal credit analysis.
(5) Transactions where the projects or the ultimate obligors are commercial entities that have ratings below investment grade either by an independent rating agency or using our internal credit analysis. Financing receivables are net of an allowance for credit losses of $11.0 million. Investments include a senior debt investment of $15.1 million on a wind project that is being acquired by NRG Energy, Inc.
(6) Average Remaining Balance excludes 14 transactions each with outstanding balances that are less than $1.0 million and that in the aggregate total $5.5 million.
Components of Financing Receivables

The components of financing receivables of December 31, 2013 and September 30, 2012, were as follows (amounts in thousands):

 

     December 31,
2013		     September 30,
2012		  

Financing receivables

     

Financing or minimum lease payments (1)

    $ 504,688      $ 254,465   

Unearned interest income

      (142,366 )      (54,182 ) 

Allowance for credit losses

      (11,000 )      —     

Unearned fee income, net of initial direct costs

      (3,451 )      (4,701 ) 
  

 

 

    

 

 

  

Financing receivables (1)

    $ 347,871      $ 195,582   
  

 

 

    

 

 

  

 

(1) Excludes $24.8 million in financing receivables held-for-sale at December 31, 2013

 
Summary of Anticipated Maturity Dates of Financing Receivables

The following table provides a summary of our anticipated maturity dates of our financing receivables and investments for each range of maturities as of December 31, 2013:

 

     Total      Less than 1
year		      1-5 years      5-10 years      More than 10
years		  

Financing Receivables(1)

               

Payment due by period (in thousands)

    $ 358,871       $ 924       $ 114,628       $ 7,470       $ 235,849   

Investments(1)

               

Payment due by period (in thousands)

    $ 91,964       $ —         $ 15,101       $ —         $ 76,863   

 

(1) Excludes financing receivables held-for-sale of $24.8 million and investments available-for-sale of $3.2 million that were purchased in December 2013 and sold in the three month period ended March 31, 2014. Financing receivables also excludes allowance for credit losses of $11.0 million.