Annual report pursuant to Section 13 and 15(d)

VIE Arrangements

v3.8.0.1
VIE Arrangements
12 Months Ended
Dec. 31, 2017
Variable Interest Entity Disclosure [Abstract]  
VIE Arrangements
VIE Arrangements
The Company consolidated various VIEs at December 31, 2017 and 2016. The carrying amounts and classification of the VIEs’ assets and liabilities included in the consolidated balance sheets are as follows (in thousands):
 
 
December 31,
 
 
2017
 
2016
Assets
 
 
 
 
Current assets
 
 
 
 
Cash
 
$
118,352

 
$
120,728

Restricted cash
 
2,699

 
1,680

Accounts receivable, net
 
30,200

 
20,771

Prepaid expenses and other current assets
 
917

 
242

Total current assets
 
152,168

 
143,421

Solar energy systems, net
 
2,385,329

 
1,920,330

Other assets
 
3,679

 
1,481

Total assets
 
$
2,541,176

 
$
2,065,232

Liabilities
 
 
 
 
Current liabilities
 
 
 
 
Accounts payable
 
$
15,929

 
$
14,873

Distributions payable to noncontrolling interests
   and redeemable noncontrolling interests
 
13,526

 
10,654

Accrued expenses and other liabilities
 
3,048

 
782

Deferred revenue, current portion
 
28,240

 
25,827

Deferred grants, current portion
 
1,021

 
3,644

Non-recourse debt, current portion
 
11,178

 
8,616

Total current liabilities
 
72,942

 
64,396

Deferred revenue, net of current portion
 
380,283

 
396,858

Deferred grants, net of current portion
 
29,385

 
105,390

Non-recourse debt, net of current portion
 
190,106

 
50,367

Other liabilities
 
1,848

 

Total liabilities
 
$
674,564

 
$
617,011


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 five lease pass-through Fund arrangements as further explained in Note 14, Lease 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 financing liability recorded in the Company’s consolidated financial statements. The Company is not considered the primary beneficiary of the VIEs.
In December 2017, the Company acquired investors' interests in certain consolidated VIEs for a total cash consideration of $35.4 million. In one of these entities, the Company was contractually required to make payments to the investor so that the investor achieved a specified minimum internal rate of return upon occurrence of certain events. Upon purchase of the investors' stakes in these entities, all obligations were satisfied. Additionally, in December 2017, the Company entered into an agreement to acquire an investor's interest in another consolidated VIE, which resulted in the Company derecognizing the noncontrolling interest, and recording the agreed upon purchase price as a liability in Accrued expenses and other liabilities on the consolidated balance sheet. These transactions decreased the Company's additional paid-in-capital, net of the related tax impact, by $7.1 million.