Sunrun Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of revenue from external customers

Revenue from external customers (including, but not limited to homeowners) for each group of similar products and services is as follows (in thousands):


	Year Ended December 31,
	2020		2019		2018
Customer agreements	$	432,527	$	345,486	$	272,672
Incentives	51,633		42,349		131,794
Customer agreements and incentives	484,160		387,835		404,466

Solar energy systems	269,866		283,429		186,512
Products	168,165		187,314		169,003
Solar energy systems and product sales	438,031		470,743		355,515
Total revenue	$	922,191	$	858,578	$	759,981

Cash and restricted cash

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):


	December 31,
	2020		2019		2018
Cash	$	519,965	$	269,577	$	226,625
Restricted cash, current and long-term	188,243		93,652		77,774
Total	$	708,208	$	363,229	$	304,399

As a result of the acquisition of Vivint Solar on October 8, 2020, cash and restricted cash increased by $537.2 million.

Cash and restricted cash


	December 31,
	2020		2019		2018
Cash	$	519,965	$	269,577	$	226,625
Restricted cash, current and long-term	188,243		93,652		77,774
Total	$	708,208	$	363,229	$	304,399

As a result of the acquisition of Vivint Solar on October 8, 2020, cash and restricted cash increased by $537.2 million.

Accounts receivable, net

Accounts receivable, net consists of the following (in thousands):


	December 31,
	2020		2019
Customer receivables	$	97,723	$	79,899
Other receivables	710		23
Rebates receivable	1,569		957
Allowance for credit losses	(4,861)		(3,151)
Total	$	95,141	$	77,728

Schedule of property and equipment depreciation

Property and equipment is depreciated on a straight-line basis over the following periods:


Leasehold improvements						Lesser of 6 years or lease term
Furniture						5 years
Computer hardware and software						3 years
Machinery and equipment						5 years or lease term
Automobiles						Lease term

Solar energy systems, net consists of the following (in thousands):


	December 31,
	2020		2019
Solar energy system equipment costs	$	7,839,427	$	4,510,677
Inverters	883,785		471,471
Total solar energy systems	8,723,212		4,982,148
Less: accumulated depreciation and amortization	(914,551)		(692,218)
Add: construction-in-progress	394,127		202,685
Total solar energy systems, net	$	8,202,788	$	4,492,615

Property and equipment, net consists of the following (in thousands):


	December 31,
	2020		2019
Machinery and equipment	$	8,860	$	7,907
Leasehold improvements, furniture, and computer hardware	42,614		34,951
Vehicles	68,245		65,663
Computer software	37,997		35,329
Total property and equipment	157,716		143,850
Less: Accumulated depreciation and amortization	(95,534)		(87,142)
Total property and equipment, net	$	62,182	$	56,708

Intangible assets, net

Finite-lived intangible assets are initially recorded at fair value and are subsequently presented net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:


Customer relationships						5 -10 years
Developed technology						5 years
Trade names						5 - 8 years

Intangible assets, net as of December 31, 2020 consist of the following (in thousands, except weighted average remaining life):


	Cost		Accumulated amortization		Carrying value		Weighted average remaining life (in years)
Customer relationships	$	32,770	$	(15,349)	$	17,421	3.6
Developed technology	6,820		(6,820)		—		—
Trade names	6,990		(6,149)		841		2.3
Total	$	46,580	$	(28,318)	$	18,262

Intangible assets, net as of December 31, 2019 consist of the following (in thousands, except weighted average remaining life):


	Cost		Accumulated amortization		Carrying value		Weighted average remaining life (in years)
Customer relationships	$	28,870	$	(10,837)	$	18,033	4.3
Developed technology	6,820		(6,525)		295		0.3
Trade names	6,990		(5,775)		1,215		3.3
Total	$	42,680	$	(23,137)	$	19,543

Deferred revenue

The opening balance of deferred revenue was $591.6 million as of December 31, 2018. Deferred revenue consists of the following (in thousands):


	December 31,
	2020		2019
Under Customer Agreements:
Payments received	$	614,906	$	558,630
Financing component balance	51,835		44,874
	666,741		603,504

Under SREC contracts:
Payments received	126,793		122,680
Financing component balance	5,742		3,315
	132,535		125,995

Total	$	799,276	$	729,499