Sunrun Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

VIE Arrangements

VIE Arrangements

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company consolidated various VIEs at September 30, 2020 and December 31, 2019. The carrying amounts and classification of the VIEs’ assets and liabilities included in the consolidated balance sheets are as follows (in thousands):


	September 30, 2020		December 31, 2019
Assets
Current assets
Cash	$	155,201	$	133,362
Restricted cash	14,495		2,746
Accounts receivable, net	27,471		21,956
Inventories	51,894		15,721
Prepaid expenses and other current assets	1,583		554
Total current assets	250,644		174,339
Solar energy systems, net	3,773,324		3,259,712
Other assets	112,079		87,151
Total assets	$	4,136,047	$	3,521,202
Liabilities
Current liabilities
Accounts payable	$	25,535	$	11,531
Distributions payable to noncontrolling interests and redeemable noncontrolling interests	17,776		16,012
Accrued expenses and other liabilities	15,053		10,740
Deferred revenue, current portion	41,435		38,265
Deferred grants, current portion	1,011		1,011
Non-recourse debt, current portion	54,358		4,901
Total current liabilities	155,168		82,460
Deferred revenue, net of current portion	473,129		443,873
Deferred grants, net of current portion	26,220		27,023
Non-recourse debt, net of current portion	186,173		201,575
Other liabilities	35,176		19,633
Total liabilities	$	875,866	$	774,564

The Company holds a variable interest in an entity that provides the noncontrolling interest with a right to terminate the leasehold interests in all of the leased projects on the tenth anniversary of the effective date of the master lease. In this circumstance, the Company would be required to pay the noncontrolling interest an amount equal to the fair market value, as defined in the governing agreement of all leased projects as of that date.

The Company holds certain variable interests in nonconsolidated VIEs established as a result of six pass-through Fund arrangements as further explained in Note 10, Pass-through Financing Obligations. The Company does not have material exposure to losses as a result of its involvement with the VIEs in excess of the amount of the pass-through financing obligation recorded in the Company’s consolidated financial statements. The Company is not considered the primary beneficiary of these VIEs.