Annual report pursuant to Section 13 and 15(d)

Equity Method Investments

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Equity Method Investments
 12 Months Ended
Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments Equity Method Investments
During the years ended December 31, 2024, 2023, and 2022 we recognized income of $248 million, $141 million, and $31 million respectively, from our equity method investments. We describe our accounting for the non-controlling equity investments in Note 2. As of both December 31, 2024 and December 31, 2023, we had 47 investments which we accounted for under the equity method. The majority of these investees are limited liability companies taxed as partnerships wherein we participate in cash distributions and tax attributes according to pre-negotiated profit-sharing arrangements. The limited liability company agreements do not define a fixed percentage of our ownership of these entities, and our claims on the net assets of each investment changes over time as preferred investors achieve their pre-negotiated preferred returns.
The following is a summary of the consolidated balance sheets and income statements of the entities in which we have a significant equity method investment. These amounts are presented on the underlying investees’ accounting basis. In certain instances, adjustment to these equity values may be necessary in order to reflect our basis in these investments, for reasons including but not limited to the investees reporting to us being on a cost basis rather than a fair value basis or due to our allocations under HLBV differing from our purchase price of the investment. As described in Note 2, any difference between the amount of our investment and the amount of our share of underlying equity is generally amortized over the life of the assets and liabilities to which the differences relate. Our basis in equity method investments exceeds the basis reported to us by our investees by an aggregate amount of $104 million, and $284 million, as of December 31, 2024 and 2023, respectively. Certain of the projects in which we have equity method investments also have interest rate swaps which are designated as cash flow hedges, and we recognize the portion of the gain or loss allocated to us related to those instruments through other comprehensive income. As of December 31, 2024 and 2023, we have accumulated other comprehensive income net of tax effect of $23 million and $47 million respectively, related to the interest rate swaps designated as cash flow hedges by our investees.
Daggett Renewable HoldCo LLC
Other Investments (1)
Total
Balance Sheet
(in millions)
As of September 30, 2024
Current assets $ 66  $ 1,156  $ 1,222 
Total assets 1,114  20,217  21,331 
Current liabilities 13  2,050  2,063 
Total liabilities 453  9,514  9,967 
Members’ equity 661  10,703  11,364 
As of December 31, 2023
Current assets 35  947  982 
Total assets 677  17,917  18,594 
Current liabilities 10  920  930 
Total liabilities 262  8,398  8,660 
Members’ equity 415  9,519  9,934 
Income Statement
For the nine months ended September 30, 2024
Revenue 50  860  910 
Income (loss) from continuing operations (16) (264) (280)
Net income (loss) (16) (264) (280)
For the year ended December 31, 2023
Revenue 16  1,209  1,225 
Income (loss) from continuing operations (6) (63) (69)
Net income (loss) (6) (63) (69)
For the year ended December 31, 2022
Revenue —  500  500 
Income (loss) from continuing operations —  (392) (392)
Net income (loss) —  (392) (392)
(1)    Represents aggregated financial statement information for investments not separately presented.