Quarterly report [Sections 13 or 15(d)]

Equity Method Investments

v3.25.1
Equity Method Investments
 3 Months Ended
Mar. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments Equity Method Investments
As of March 31, 2025 and December 31, 2024, we had 46 and 47 investments, respectively, which we accounted for using 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. We describe our accounting for non-controlling equity investments in Note 2.
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. Certain of our equity method investments have the unrealized mark-to-market losses on energy hedges at the project level that do not qualify for hedge accounting. These unrealized mark-to-market losses, which resulted from rising energy prices, are recorded in the revenue line of the projects’ statements of operations. As these swaps are settled, the projects will sell power at the higher market price, offsetting the loss recognized on the energy hedges. 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 March 31, 2025 and December 31, 2024, we have accumulated other comprehensive income net of tax effect of $41 million and $23 million respectively, related to the interest rate swaps designated as cash flow hedges by our investees.
Palmetto HASI Holdings LLC
Other Investments (1)
Total
(in millions)
Balance Sheet
As of December 31, 2024
Current assets $ 113  $ 938  $ 1,051 
Total assets 1,367  20,675  22,042 
Current liabilities 5  1,409  1,414 
Total liabilities 393  8,934  9,327 
Members' equity 974  11,741  12,715 
As of December 31, 2023
Current assets —  965  965 
Total assets 44  18,392  18,436 
Current liabilities 1  904  905 
Total liabilities 9  8,505  8,514 
Members' equity 35  9,887  9,922 
Income Statement
For the year ended December 31, 2024
Revenue 15  1,186  1,201 
Income (loss) from continuing operations 1  (325) (324)
Net income (loss) 1  (325) (324)
For the year ended December 31, 2023
Revenue —  1,184  1,184 
Income (loss) from continuing operations (1) (60) (61)
Net income (loss) (1) (60) (61)
(1)Represents aggregated financial statement information for investments not separately presented.