HA Sustainable Infrastructure Capital, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Financing Receivables and Investments (Tables)

Financing Receivables and Investments (Tables)

3 Months Ended

Mar. 31, 2014

Analysis of Financing Receivables and Investments by Type of Obligor and Credit Quality

The following is an analysis of financing receivables and investments by type of obligor and credit quality as of March 31, 2014.


	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 percentages)
Financing receivables	$	228.5		$	73.5		$	—		$	92.7		$	0.8		$	395.5
Investments		—			—			76.2			—			15.1			91.3

Total	$	228.5		$	73.5		$	76.2		$	92.7		$	15.9		$	486.8

% of Total Portfolio		46.9	%		15.1	%		15.7	%		19.0	%		3.3	%		100	%
Average Remaining Balance ⁽⁶⁾	$	9.8		$	24.5		$	25.4		$	18.5		$	15.1		$	13.8

(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.

(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 $34.4 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 owned by NRG Energy, Inc.

(6)	Average Remaining Balance excludes 13 transactions each with outstanding balances that are less than $1.0 million and that in the aggregate total $4.6 million.

Components of Financing Receivables

The components of financing receivables of March 31, 2014 and December 31, 2013, were as follows:


	March 31, 2014			December 31, 2013
	(amounts in thousands)
Financing receivables

Financing or minimum lease payments (1)	$	590,413		$	504,688
Unearned interest income		(180,465	)		(142,366	)
Allowance for credit losses		(11,000	)		(11,000	)
Unearned fee income, net of initial direct costs		(3,386	)		(3,451	)

Financing receivables ⁽¹⁾	$	395,562		$	347,871

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

Summary of Anticipated Maturity Dates of Financing Receivables and Investments

The following table provides a summary of our anticipated maturity dates of our financing receivables and investments for each range of maturities as of March 31, 2014:


	Total		Less than 1 year		1-5 years		5-10 years		More than 10 years
	(amounts in thousands)
Financing Receivables
Payment due by period	$	395,562	$	1,253	$	96,065	$	16,348	$	281,896

Investments
Payment due by period	$	91,277	$	—	$	15,101	$	—	$	76,176