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

Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Residual Interests Securitized Receivables and Derivatives Carried at Fair Value


	As of December 31, 2014
	Fair Value		Carrying Value		Level
	(amounts in millions)
Assets
Financing receivables (1)	$	597.5	$	552.7		Level 3
Financing receivables held-for-sale		62.3		62.3		Level 3
Investments available-for-sale (2)		27.3		27.3		Level 3
Residual assets		5.2		5.2		Level 3
Liabilities
Credit facility	$	315.7	$	315.7		Level 3
Nonrecourse debt		127.4		112.5		Level 3
Asset-backed nonrecourse notes		207.8		208.2		Level 3

(1)	Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $1.2 million as of December 31, 2014.

(2)	The amortized costs of our investments available-for-sale as of December 31, 2014, was $26.9 million.


	As of December 31, 2013
	Fair Value		Carrying Value		Level
	(amounts in millions)
Assets
Financing receivables (1)	$	346.4	$	347.9		Level 3
Investments		92.0		92.0		Level 3
Financing receivables held-for-sale		24.8		24.8		Level 3
Investments available-for-sale		3.2		3.2		Level 3
Residual assets		4.9		4.9		Level 3
Liabilities
Credit facility	$	77.1	$	77.1		Level 3
Nonrecourse debt		167.1		159.8		Level 3
Asset-backed nonrecourse notes		99.8		100.0		Level 3

(1)	Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $11.0 million as of December 31, 2013.

Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities

The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value following the transfer of our investments to available-for-sale:


	For the year ended December 31,
	2014			2013
	(amounts in millions)
Balance, beginning of period	$	—		$	—
Transfers to / purchases of available-for-sale debt securities.		83.2			—
Sale of available-for-sale debt securities		(59.6	)		—
Unrealized gain on debt securities transferred to available for sale		5.0			—
Unrealized loss on debt securities		(1.3	)		—

Balance, end of Period	$	27.3		$	—

Schedule of Fair Values of Retained Assets, Discount Rates Used in Valuing Assets

As of December 31, 2014 and 2013, the fair values of retained assets, including the discount rates used in valuing those assets and the sensitivity to an increase in the discount rates of 5% and 10% were as follows:


	December 31, 2014
	Servicing			Residual Assets
	(amounts in millions)
Amortized cost basis	$	1.0		$	5.1
Fair value	$	1.2		$	5.2
Weighted-average life in years		9			7 to 19
Discount rate		8	%		8	%
Fair value that would be decreased based on hypothetical adverse changes in discount rates:
5% change in discount rate	$	0.2		$	1.5
10% change in discount rate	$	0.4		$	2.3


	December 31, 2013
	Servicing			Residual Assets
	(amounts in millions)
Amortized cost basis	$	1.3		$	4.8
Fair value	$	1.4		$	4.9
Weighted-average life in years		8			6 to 19
Discount rate		8	%		8% to 10%
Fair value that would be decreased based on hypothetical adverse changes in discount rates:
5% change in discount rate	$	0.3		$	1.2
10% change in discount rate	$	0.4		$	1.8

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) the reasons for electing a fair value option for each eligible item or group of similar eligible items and (b) if the fair value option is elected for some but not all eligible items within a group of similar eligible items: (i) a description of those similar items and the reasons for partial election and (ii) information of how the group of similar items relates to individual balance sheet line items; (c) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, information of how each line item in the statement of financial position relates to major categories of assets and liabilities presented in accordance with other fair value disclosures; (2) for items included in the income statement: (a) a description of how interest and dividends are measured and where they are reported in the income statement; (b) how the gains or losses attributable to changes in instrument-specific credit risk were determined; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk: (i) qualitative information about the reasons for the changes and (ii) how the gains and losses attributable to changes in instrument-specific credit risk were determined; and (3) certain other disclosures as required or determined to be provided.

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