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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q


(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-37511 
Sunrun Inc.
(Exact name of registrant as specified in its charter)

Delaware26-2841711
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)

225 Bush Street, Suite 1400
San Francisco, California 94104
(Address of principal executive offices and Zip Code)

(415) 580-6900
(Registrant’s telephone number, including area code) 


Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 par value per shareRUNNasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
     
Non-accelerated filerSmaller reporting company
     
Emerging growth company


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
As of May 4, 2020, the number of shares of the registrant’s common stock outstanding was 120,330,159.




Table of Contents

Page
Item 1
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.

1



Sunrun Inc.
Consolidated Balance Sheets
(In Thousands, Except Share Par Values)
(Unaudited)
March 31, 2020December 31, 2019
Assets
Current assets:
Cash$286,418  $269,577  
Restricted cash79,682  93,504  
Accounts receivable (net of allowances for doubtful accounts of $3,128 and $3,151 as of March 31, 2020 and December 31, 2019, respectively)
65,509  77,728  
State tax credits receivable7,780  6,466  
Inventories257,614  260,571  
Prepaid expenses and other current assets10,813  25,984  
Total current assets707,816  733,830  
Restricted cash148  148  
Solar energy systems, net4,644,044  4,492,615  
Property and equipment, net52,995  56,708  
Intangible assets, net18,060  19,543  
Goodwill95,094  95,094  
Other assets420,350  408,403  
Total assets (1)
$5,938,507  $5,806,341  
Liabilities and total equity
Current liabilities:
Accounts payable$159,791  $223,356  
Distributions payable to noncontrolling interests and redeemable noncontrolling interests
17,766  16,062  
Accrued expenses and other liabilities118,869  148,497  
Deferred revenue, current portion78,419  77,643  
Deferred grants, current portion8,089  8,093  
Finance lease obligations, current portion9,167  10,064  
Non-recourse debt, current portion71,508  35,348  
Pass-through financing obligation, current portion11,148  11,031  
Total current liabilities474,757  530,094  
Deferred revenue, net of current portion660,309  651,856  
Deferred grants, net of current portion217,692  218,568  
Finance lease obligations, net of current portion11,005  12,895  
Recourse debt237,960  239,485  
Non-recourse debt, net of current portion2,128,840  1,980,107  
Pass-through financing obligation, net of current portion327,090  327,974  
Other liabilities229,052  141,401  
Deferred tax liabilities37,445  65,964  
Total liabilities (1)
4,324,150  4,168,344  
Commitments and contingencies (Note 15)
Redeemable noncontrolling interests415,693  306,565  
Stockholders’ equity:
Preferred stock, $0.0001 par value—authorized, 200,000 shares as of March 31, 2020 and December 31, 2019; no shares issued and outstanding as of March 31, 2020 and December 31, 2019
    
Common stock, $0.0001 par value—authorized, 2,000,000 shares as of March 31, 2020 and December 31, 2019; issued and outstanding, 120,123 and 118,451 shares as of March 31, 2020 and December 31, 2019, respectively
12  12  
Additional paid-in capital775,233  766,006  
Accumulated other comprehensive loss(125,051) (52,753) 
Retained earnings222,279  251,466  
Total stockholders’ equity872,473  964,731  
Noncontrolling interests326,191  366,701  
Total equity1,198,664  1,331,432  
Total liabilities, redeemable noncontrolling interests and total equity$5,938,507  $5,806,341  


2







1)The Company’s consolidated assets as of March 31, 2020 and December 31, 2019 include $3,833,562 and $3,521,202, respectively, in assets of variable interest entities (“VIEs”) that can only be used to settle obligations of the VIEs. These assets include solar energy systems, net, as of March 31, 2020 and December 31, 2019 of $3,415,118 and $3,259,712, respectively; cash as of March 31, 2020 and December 31, 2019 of $178,982 and $133,362, respectively; restricted cash as of March 31, 2020 and December 31, 2019 of $7,370 and $2,746, respectively; accounts receivable, net as of March 31, 2020 and December 31, 2019 of $25,927 and $21,956, respectively; inventories as of March 31, 2020 and December 31, 2019 of $110,594 and 15,721, respectively; prepaid expenses and other current assets as of March 31, 2020 and December 31, 2019 of $1,497 and $554, respectively; and other assets as of March 31, 2020 and December 31, 2019 of $94,074 and $87,151, respectively. The Company’s consolidated liabilities as of March 31, 2020 and December 31, 2019 include $897,807 and $774,564, respectively, in liabilities of VIEs whose creditors have no recourse to the Company. These liabilities include accounts payable as of March 31, 2020 and December 31, 2019 of $13,758 and $11,531, respectively; distributions payable to noncontrolling interests and redeemable noncontrolling interests as of March 31, 2020 and December 31, 2019 of $17,716 and $16,012, respectively; accrued expenses and other current liabilities as of March 31, 2020 and December 31, 2019 of $9,977 and $10,740, respectively; deferred revenue as of March 31, 2020 and December 31, 2019 of $498,065 and $482,138, respectively; deferred grants as of March 31, 2020 and December 31, 2019 of $27,776 and $28,034, respectively; non-recourse debt as of March 31, 2020 and December 31, 2019 of $291,798 and $206,476, respectively; and other liabilities as of March 31, 2020 and December 31, 2019 of $38,717 and $19,633, respectively.
The accompanying notes are an integral part of these consolidated financial statements.
3


Sunrun Inc.
Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended March 31,
20202019
Revenue:
Customer agreements and incentives$99,124  $99,850  
Solar energy systems and product sales111,607  94,654  
Total revenue210,731  194,504  
Operating expenses:
Cost of customer agreements and incentives78,277  69,493  
Cost of solar energy systems and product sales
91,598  77,799  
Sales and marketing70,270  55,953  
Research and development4,046  5,474  
General and administrative28,074  29,063  
Amortization of intangible assets1,483  893  
Total operating expenses273,748  238,675  
Loss from operations(63,017) (44,171) 
Interest expense, net49,924  41,340  
Other (income) expenses, net(50) 4,756  
Loss before income taxes(112,891) (90,267) 
Income tax benefit(3,342) (3,361) 
Net loss(109,549) (86,906) 
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
(81,590) (73,044) 
Net loss attributable to common stockholders
$(27,959) $(13,862) 
Net loss per share attributable to common stockholders
Basic$(0.23) $(0.12) 
Diluted$(0.23) $(0.12) 
Weighted average shares used to compute net loss per share attributable to common stockholders
Basic119,220  113,912  
Diluted119,220  113,912  

The accompanying notes are an integral part of these consolidated financial statements.

4


Sunrun Inc.
Consolidated Statements of Comprehensive Loss
(In Thousands)
(Unaudited)
Three Months Ended March 31,
20202019
Net loss attributable to common stockholders
$(27,959) $(13,862) 
Other comprehensive (loss) income:
Unrealized loss on derivatives, net of income taxes
(72,543) (17,013) 
Interest income (expense) on derivatives recognized into earnings, net of income taxes
245  (989) 
Other comprehensive loss
(72,298) (18,002) 
Comprehensive loss$(100,257) $(31,864) 

5


Sunrun Inc.
Consolidated Statements of Redeemable Noncontrolling Interests and Equity
Three Months Ended March 31, 2020 and 2019
(In Thousands)
(Unaudited)

Three Months Ended March 31, 2020
Redeemable
Noncontrolling
Interests
Preferred StockCommon StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Total
Stockholders'
Equity
Noncontrolling
Interests
Total
Equity
SharesAmountSharesAmount
Balance at December 31, 2019
$306,565    $  118,451  $12  $766,006  $(52,753) $251,466  $964,731  $366,701  $1,331,432  
Cumulative effect of adoption of new ASU (No. 2016-13)
—  —  —  —  —  —  —  (1,228) (1,228) —  (1,228) 
Exercise of stock options
—  —  —  1,009  —  5,949  —  —  5,949  —  5,949  
Issuance of restricted stock units, net of tax withholdings
—  —  —  663    (3,530) —  —  (3,530) —  (3,530) 
Stock-based compensation
—  —  —  —  —  6,808  —  —  6,808  —  6,808  
Contributions from noncontrolling interests and redeemable noncontrolling interests
150,904  —  —  —  —  —  —  —  —  20,000  20,000  
Distributions to noncontrolling interests and redeemable noncontrolling interests
(7,084) —  —  —  —  —  —  —  —  (13,612) (13,612) 
Net loss
(34,692) —  —  —  —  —  —  (27,959) (27,959) (46,898) (74,857) 
Other comprehensive loss, net of taxes
—  —  —  —  —  —  (72,298) —  (72,298) —  (72,298) 
Balance at March 31, 2020
$415,693    $  120,123  $12  $775,233  $(125,051) $222,279  $872,473  $326,191  $1,198,664  

Three Months Ended March 31, 2019
Redeemable
Noncontrolling
Interests
Preferred StockCommon StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Total
Stockholders'
Equity
Noncontrolling
Interests
Total
Equity
SharesAmountSharesAmount
Balance at December 31, 2018
$126,302    $  113,149  $11  $722,429  $(3,124) $229,391  $948,707  $334,075  $1,282,782  
Cumulative effect of adoption of new ASU (No. 2018-02)
—  —  —  —  —  —  (740) 740  —  —  —  
Exercise of stock options
—  —  —  1,139  —  4,279  —  —  4,279  —  4,279  
Issuance of restricted stock units, net of tax withholdings
—  —  —  451  —  (3,442) —  —  (3,442) (3,442) 
Stock-based compensation
—  —  —  —  —  5,783  —  —  5,783  5,783  
Contributions from noncontrolling interests and redeemable noncontrolling interests
31,610  —  —  —  —  —  —  —  —  120,539  120,539  
Distributions to noncontrolling interests and redeemable noncontrolling interests
(3,126) —  —  —  —  —  —  —  —  (15,103) (15,103) 
Net loss
(17,170) —  —  —  —  —  (13,862) (13,862) (55,874) (69,736) 
Acquisition of noncontrolling interest
—  —  —  —  —  1,077  —  —  1,077  (6,066) (4,989) 
Other comprehensive loss, net of taxes
—  —  —  —  —  —  (18,002) —  (18,002) —  (18,002) 
Balance at March 31, 2019
$137,616    $  114,739  $11  $730,126  $(21,866) $216,269  $924,540  $377,571  $1,302,111  


6


Sunrun Inc.
Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
Three Months Ended March 31,
20202019
Operating activities:
Net loss$(109,549) $(86,906) 
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization, net of amortization of deferred grants51,021  43,661  
Deferred income taxes(3,342) (3,361) 
Stock-based compensation expense7,309  5,783  
Bonus liability converted to RSUs11,636    
Interest on pass-through financing obligations5,877  6,472  
Reduction in pass-through financing obligations(9,689) (9,986) 
Other noncash items11,442  1,489  
Changes in operating assets and liabilities:
Accounts receivable11,044  (147) 
Inventories2,957  3,283  
Prepaid and other assets1,115  (35,868) 
Accounts payable(55,604) (22,577) 
Accrued expenses and other liabilities(51,667) 7,724  
Deferred revenue10,565  101,848  
Net cash (used in) provided by operating activities(116,885) 11,415  
Investing activities:
Payments for the costs of solar energy systems(207,360) (198,880) 
Purchases of property and equipment(3,105) (2,517) 
Net cash used in investing activities(210,465) (201,397) 
Financing activities:
Proceeds from state tax credits, net of recapture  2,604  
Proceeds from issuance of recourse debt43,475  40,000  
Repayment of recourse debt(45,000) (47,965) 
Proceeds from issuance of non-recourse debt191,751  181,652  
Repayment of non-recourse debt(12,997) (99,248) 
Payment of debt fees  (2,654) 
Proceeds from pass-through financing and other obligations1,762  1,785  
Early repayment of pass-through financing obligation  (7,597) 
Payment of finance lease obligations(2,953) (3,001) 
Contributions received from noncontrolling interests and redeemable noncontrolling interests170,904  152,149  
Distributions paid to noncontrolling interests and redeemable noncontrolling interests(18,992) (18,447) 
Acquisition of noncontrolling interest  (4,600) 
Proceeds from exercises of stock options, net of withholding taxes paid on restricted stock units2,419  839  
Net cash provided by financing activities330,369  195,517  
Net change in cash and restricted cash3,019  5,535  
Cash and restricted cash, beginning of period363,229  304,399  
Cash and restricted cash, end of period$366,248  $309,934  
Supplemental disclosures of cash flow information
Cash paid for interest$28,435  $20,058  
Cash paid for income taxes$  $  
Supplemental disclosures of noncash investing and financing activities
Purchases of solar energy systems and property and equipment included in accounts payable and accrued expenses$43,664  $24,303  
Right-of-use assets obtained in exchange for new finance lease liabilities$180  $3,543  

The accompanying notes are an integral part of these consolidated financial statements.
7


Sunrun Inc.
Notes to Consolidated Financial Statements
(Unaudited)

Note 1. Organization
Sunrun Inc. (“Sunrun” or the “Company”) was originally formed in 2007 as a California limited liability company and was converted into a Delaware corporation in 2008. The Company is engaged in the design, development, installation, sale, ownership and maintenance of residential solar energy systems (“Projects”) in the United States.
Sunrun acquires customers directly and through relationships with various solar and strategic partners (“Partners”). The Projects are constructed either by Sunrun or by Sunrun’s Partners and are owned by the Company. Sunrun’s customers enter into an agreement to utilize the solar energy system (“Customer Agreement”) which typically has an initial term of 20 or 25 years. Sunrun monitors, maintains and insures the Projects. The Company also sells solar energy systems and products, such as panels and racking and solar leads generated to customers.
The Company has formed various subsidiaries (“Funds”) to finance the development of Projects. These Funds, structured as limited liability companies, obtain financing from outside investors and purchase or lease Projects from Sunrun under master purchase or master lease agreements. The Company currently utilizes three legal structures in its investment Funds, which are referred to as: (i) pass-through financing obligations, (ii) partnership-flips and (iii) joint venture (“JV”) inverted leases.


Note 2. Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2019. Beginning in the quarter ended March 31, 2020, a strain of coronavirus (COVID-19) has spread throughout the United States and at this point, the extent to which the coronavirus may impact operations of the Company is uncertain. The extent of the impact of the coronavirus on the Company's business and operations will depend on several factors, such as the duration, severity, and geographic spread of the outbreak. The Company is monitoring the evolving situation closely and evaluating its potential exposure. The results of the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2020 or other future periods, particularly in light of the uncertain impact COVID-19 could have on the Company's business.
The consolidated financial statements reflect the accounts and operations of the Company and those of its subsidiaries, including Funds, in which the Company has a controlling financial interest. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as variable interest entities (“VIEs”), through arrangements that do not involve controlling voting interests. In accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 810 (“ASC 810”) Consolidation, the Company consolidates any VIE of which it is the primary beneficiary. The primary beneficiary, as defined in ASC 810, is the party that has (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb the losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company evaluates its relationships with its VIEs on an ongoing basis to determine whether it continues to be the primary beneficiary. The consolidated financial statements reflect the assets and liabilities of VIEs that are consolidated. All intercompany transactions and balances have been eliminated in consolidation.
8


Use of Estimates
The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company regularly makes estimates and assumptions, including, but not limited to, revenue recognition constraints that result in variable consideration, the discount rate used to adjust the promised amount of consideration for the effects of a significant financing component, the estimates that affect the collectability of accounts receivable, the valuation of inventories, the useful lives of solar energy systems, the useful lives of property and equipment, the valuation and useful lives of intangible assets, the effective interest rate used to amortize pass-through financing obligations, the discount rate uses for operating and financing leases, the fair value of contingent consideration, the valuation of stock-based compensation, the determination of valuation allowances associated with deferred tax assets, the fair value of debt instruments disclosed and the redemption value of redeemable noncontrolling interests. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. In light of the uncertain impact COVID-19 could have on the Company's business, the Company's estimates may change in the future. Actual results may differ from such estimates.
Segment Information
The Company has one operating segment with one business activity, providing solar energy services and products to customers. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information presented on a consolidated basis.
Revenue from external customers for each group of similar products and services is as follows (in thousands):
Three Months Ended March 31,
20202019
Customer agreements$94,253  $78,528  
Incentives4,871  21,322  
Customer agreements and incentives99,124  99,850  
Solar energy systems71,277  58,436  
Products40,330  36,218  
Solar energy systems and product sales111,607  94,654  
Total revenue$210,731  $194,504  

Revenue from Customer Agreements includes payments by customers for the use of the system as well as utility and other rebates assigned by the customer to the Company in the Customer Agreement. Revenue from incentives includes revenue from the sale of commercial investment tax credits ("Commercial ITCs") and solar renewable energy credits (“SRECs”).
9


Cash and Restricted Cash
Restricted cash represents amounts related to obligations under certain financing transactions and future replacement of solar energy system components.
The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. Cash and restricted cash consists of the following (in thousands):
Three Months Ended March 31,
  20202019
Beginning of period:
   Cash $269,577  $226,625  
   Restricted cash, current and long-term93,652  77,774  
Total$363,229  $304,399  
End of period:
   Cash $286,418  $245,604  
   Restricted cash, current and long-term79,830  64,330  
Total$366,248  $309,934  

Accounts Receivable
Accounts receivable consist of amounts due from customers, as well as state and utility rebates due from government agencies and utility companies. Under Customer Agreements, the customers typically assign incentive rebates to the Company.
The opening balance of Accounts receivable, net was $66.4 million as of December 31, 2018. Accounts receivable, net, consists of the following (in thousands):
  March 31, 2020 December 31, 2019
Customer receivables$65,537  $79,899  
Other receivables61  23  
Rebates receivable3,039  957  
Allowance for doubtful accounts(3,128) (3,151) 
Total$65,509  $77,728  
Deferred Revenue
When the Company receives consideration, or when such consideration is unconditionally due, from a customer prior to delivering goods or services to the customer under the terms of a Customer Agreement, the Company records deferred revenue. Such deferred revenue consists of amounts for which the criteria for revenue recognition have not yet been met and includes amounts that are collected or assigned from customers, including upfront deposits and prepayments, and rebates. Deferred revenue relating to financing components represents the cumulative excess of interest expense recorded on financing component elements over the related revenue recognized to date and will eventually net to zero by the end of the initial term. Amounts received related to the sales of SRECs which have not yet been delivered to the counterparty are recorded as deferred revenue.
10


The opening balance of deferred revenue was $591.6 million as of December 31, 2018. Deferred revenue consists of the following (in thousands):
 March 31, 2020December 31, 2019
Under Customer Agreements:
Payments received$560,007  $558,630  
Financing component balance46,634  44,874  
606,641  603,504  
Under SREC contracts:
Payments received127,672  122,680  
Financing component balance4,415  3,315  
132,087  125,995  
Total$738,728  $729,499  

In the three months ended March 31, 2020 and 2019, the Company recognized revenue of $17.4 million and $14.0 million, respectively, from amounts included in deferred revenue at the beginning of the respective periods. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized and includes deferred revenue as well as amounts that will be invoiced and recognized as revenue in future periods. Contracted but not yet recognized revenue was approximately $6.9 billion as of March 31, 2020, of which the Company expects to recognize approximately 6% over the next 12 months. The annual recognition is not expected to vary significantly over the next 10 years as the vast majority of existing Customer Agreements have at least 10 years remaining, given that the average age of the Company's fleet of residential solar energy systems under Customer Agreements is less than four years due to the Company being formed in 2007 and having experienced significant growth in the last few years. The annual recognition on these existing contracts will gradually decline over the midpoint of the Customer Agreements over the following 10 years as the typical 20- or 25-year initial term expires on individual Customer Agreements.
Fair Value of Financial Instruments
The Company defines fair value as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses valuation approaches to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. The FASB establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:
Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;
Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and
Level 3—Inputs that are unobservable, significant to the measurement of the fair value of the assets or liabilities and are supported by little or no market data.

The Company's financial instruments include cash, receivables, accounts payable, accrued expenses, distributions payable to noncontrolling interests, derivatives, contingent consideration, and recourse and non-recourse debt.
Revenue Recognition
The Company recognizes revenue when control of goods or services is transferred to its customers, in an amount that reflects the consideration it expected to be entitled to in exchange for those goods or services.<