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

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Summary of Fair Value and Carrying Value of Financial Assets and Liabilities

As of September 30, 2016
	Fair Value		Carrying Value		Level
	(dollars in millions)
Assets
Financing receivables	$	914	$	865		Level 3
Financing receivables held-for-sale		7		7		Level 3
Investments available-for-sale⁽¹⁾		50		50		Level 3
Liabilities
Credit facilities	$	356	$	356		Level 3
Nonrecourse debt⁽²⁾		649		624		Level 3
Derivative liabilities		6		6		Level 2

(1)	The amortized cost of our investments available-for-sale as of September 30, 2016, was $51 million.

(2)	Fair value and carrying value of nonrecourse debt excludes unamortized debt issuance costs.


	As of December 31, 2015
	Fair Value		Carrying Value		Level
	(dollars in millions)
Assets
Financing receivables	$	806	$	784		Level 3
Financing receivables held-for-sale		61		60		Level 3
Investments available-for-sale⁽¹⁾		29		29		Level 3
Liabilities
Credit facility	$	247	$	247		Level 3
Nonrecourse debt⁽²⁾		690		680		Level 3
Derivative liabilities		1		1		Level 2

(1)	The amortized cost of our investments available-for-sale as of December 31, 2015, was $31 million.

(2)	Fair value and carrying value of nonrecourse debt excludes unamortized debt issuance costs.

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 on a recurring basis:


	For the three months ended September 30,					For the nine months ended September 30,
	2016		2015			2016			2015
	(dollars in millions)
Balance, beginning of period	$	48	$	28		$	29		$	27
Purchases of investments available-for-sale		2		1			34			21
Payments on investments available-for-sale		—		—			(1	)		(9	)
Sale of investments available-for-sale		—		—			(14	)		(11	)
Gains on investments available-for-sale recorded in earnings		—		—			1			1
Gains (losses) on investments available-for-sale recorded in OCI⁽¹⁾		—		(1	)		1			(1	)

Balance, end of period	$	50	$	28		$	50		$	28

(1)	As of September 30, 2016, approximately $11 million of investment grade rated debt that we held for more than 12 months was in an unrealized loss position due to interest rate movements. As of September 30, 2016, we held no other securities in an unrealized loss position.

Schedule of Cash Deposits Subject to Credit Risk

We had cash deposits that are subject to credit risk as shown below:


	September 30, 2016		December 31, 2015
	(dollars in millions)
Cash deposits	$	73	$	43
Restricted cash deposits (included in Other assets)		25		36

Total cash deposits	$	98	$	79

Amount of cash deposits in excess of amounts federally insured	$	94	$	75

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details

- 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.

+ References + Details