Our Portfolio (Tables)
|
3 Months Ended |
Mar. 31, 2016 |
|---|
| Receivables [Abstract] |
|
| 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 March 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Investment Grade |
|
|
|
|
|
|
|
|
|
|
| |
|
Government
(1) |
|
|
Commercial
Investment
Grade(2) |
|
|
Commercial
Non-Investment
Grade (3) |
|
|
Subtotal,
Debt and
Real Estate
|
|
|
Equity Method
Investments(4) |
|
|
Total |
|
| |
|
(dollars in
millions) |
|
|
Financing receivables
|
|
$ |
374 |
|
|
$ |
428 |
|
|
$ |
17 |
|
|
$ |
819 |
|
|
$ |
— |
|
|
$ |
819 |
|
|
Financing receivables held-for-sale
|
|
|
42 |
|
|
|
— |
|
|
|
— |
|
|
|
42 |
|
|
|
— |
|
|
|
42 |
|
|
Investments
|
|
|
21 |
|
|
|
16 |
|
|
|
— |
|
|
|
37 |
|
|
|
— |
|
|
|
37 |
|
|
Real estate(5)
|
|
|
— |
|
|
|
163 |
|
|
|
— |
|
|
|
163 |
|
|
|
— |
|
|
|
163 |
|
|
Equity method investments
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
304 |
|
|
|
304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
437 |
|
|
$ |
607 |
|
|
$ |
17 |
|
|
$ |
1,061 |
|
|
$ |
304 |
|
|
$ |
1,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Debt and Real Estate Portfolio
|
|
|
41 |
% |
|
|
57 |
% |
|
|
2 |
% |
|
|
100 |
% |
|
|
N/A |
|
|
|
N/A |
|
|
Average Remaining Balance(6)
|
|
$ |
12 |
|
|
$ |
10 |
|
|
$ |
17 |
|
|
$ |
11 |
|
|
$ |
25 |
|
|
$ |
12 |
|
| (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 $260 million of U.S. federal
government transactions and $ 177 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, $11 million
of the transactions have been rated investment grade by an
independent rating agency. Commercial investment grade financing
receivables include $174 million of internally rated residential
solar loans where the cash flows which support our financing
receivables are subordinated to the tax equity investors (whose
return is largely derived from the renewable energy tax incentives)
and for which we rely on certain tax related indemnities of the
publicly traded residential solar provider. |
| (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 wind 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 79 transactions each with
outstanding balances that are less than $1 million and that in the
aggregate total $28 million. |
|
| Components of Financing Receivables |
The components of financing receivables as of March 31, 2016
and December 31, 2015, were as follows:
|
|
|
|
|
|
|
|
|
| |
|
March 31,
2016 |
|
|
December 31,
2015 |
|
| |
|
(dollars in
millions) |
|
|
Financing receivables
|
|
|
|
|
|
|
|
|
|
Financing or minimum lease payments(1)
|
|
$ |
1,116 |
|
|
$ |
1,025 |
|
|
Unearned interest income
|
|
|
(295 |
) |
|
|
(238 |
) |
|
Allowance for credit losses
|
|
|
— |
|
|
|
— |
|
|
Unearned fee income, net of initial direct costs
|
|
|
(2 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
Financing receivables(1)
|
|
$ |
819 |
|
|
$ |
784 |
|
|
|
|
|
|
|
|
|
|
| (1) |
Excludes $42 million and $60 million
in financing receivables held-for-sale as of March 31, 2016
and December 31, 2015, respectively. |
|
| 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 March 31,
2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total |
|
|
Less than 1
year |
|
|
1-5 years |
|
|
5-10 years |
|
|
More than 10
years |
|
| |
|
(dollars in
millions) |
|
|
Financing Receivables (1)
|
|
|
|
|
|
|
|
|
|
Maturities by period
|
|
$ |
819 |
|
|
$ |
— |
|
|
$ |
130 |
|
|
$ |
39 |
|
|
$ |
650 |
|
|
Weighted average yield by period
|
|
|
5 |
% |
|
|
4 |
% |
|
|
6 |
% |
|
|
4 |
% |
|
|
5 |
% |
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturities by period
|
|
$ |
37 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
36 |
|
|
Weighted average yield by period
|
|
|
4 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
5 |
% |
|
|
4 |
% |
| (1) |
Excludes financing receivables
held-for-sale of $42 million. |
|
| Components of Real Estate Portfolio |
The components of our real estate portfolio as of March 31,
2016 and December 31, 2015, were as follows:
|
|
|
|
|
|
|
|
|
| |
|
March 31, 2016 |
|
|
December 31, 2015 |
|
| |
|
(dollars in
millions) |
|
|
Real Estate
|
|
|
|
|
|
|
|
|
|
Land
|
|
$ |
132 |
|
|
$ |
129 |
|
|
Real estate related intangibles
|
|
|
33 |
|
|
|
28 |
|
|
Accumulated amortization of real estate intangibles
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
Real Estate
|
|
$ |
163 |
|
|
$ |
156 |
|
|
|
|
|
|
|
|
|
|
|
| Future Amortization Expenses Related to Intangible Assets |
As of March 31, 2016, the future amortization expense of these
intangible assets is as follows:
|
|
|
|
|
|
Year Ending December 31,
|
|
(dollars in
millions) |
|
|
From April 1, 2016 to December 31, 2016
|
|
$ |
1 |
|
|
2017
|
|
|
1 |
|
|
2018
|
|
|
1 |
|
|
2019
|
|
|
1 |
|
|
2020
|
|
|
1 |
|
|
2021
|
|
|
1 |
|
|
Thereafter
|
|
|
25 |
|
|
|
|
|
|
|
Total
|
|
$ |
31 |
|
|
|
|
|
|
|
| Schedule of Future Minimum Rental Income Payments under Land Lease Agreements |
As of March 31, 2016, the future minimum rental income
payments under our land lease agreements are as follows:
|
|
|
|
|
|
Year Ending December 31,
|
|
(dollars in
millions) |
|
|
From April 1, 2016 to December 31, 2016
|
|
$ |
6 |
|
|
2017
|
|
|
10 |
|
|
2018
|
|
|
11 |
|
|
2019
|
|
|
11 |
|
|
2020
|
|
|
10 |
|
|
2021
|
|
|
11 |
|
|
Thereafter
|
|
|
290 |
|
|
|
|
|
|
|
Total
|
|
$ |
349 |
|
|
|
|
|
|
|