Financial Instruments

9 Months Ended

Sep. 30, 2023

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Restricted Cash

The carrying values of cash, cash equivalents, and restricted cash approximate fair values and were as follows (in thousands):


	September 30,		December 31,
	2023		2022
As Held:
Cash	$	148,301	$	226,463
Money market funds	489,395		291,903
	$	637,696	$	518,366
As Reported:
Cash and cash equivalents	$	557,384	$	348,498
Restricted cash	80,312		169,868
	$	637,696	$	518,366

Restricted cash consisted of the following (in thousands):


	September 30,		December 31,
	2023		2022
Current:
Restricted cash	$	42,614	$	50,965
Restricted cash related to PPA V Entity1	—		550
	$	42,614	$	51,515
Non-current:
Restricted cash	$	37,698	$	110,353
Restricted cash related to PPA V Entity1	—		8,000
	37,698		118,353
	$	80,312	$	169,868

1 As of December 31, 2022, we had a variable interest entity (“VIE”) related to our PPA entity, PPA V, that represented a portion of the condensed consolidated balances recorded within the “restricted cash” and other financial statement line items in the condensed consolidated balance sheets (see Note 10 - Portfolio Financings). In August 2023, we sold the PPA V entity as a result of the PPA V Repowering of Energy Servers (see Note 10 - Portfolio Financings), and as such there were no balances related to PPA V in the condensed consolidated balance sheet as of September 30, 2023. In addition, the restricted cash held in the PPA II and PPA IIIb entities as of September 30, 2023 included $28.1 million and $0.9 million of current restricted cash, respectively, and $12.3 million and $6.7 million of non-current restricted cash, respectively. The restricted cash held in the PPA II and PPA IIIb entities as of December 31, 2022, included $40.6 million and $1.2 million of current restricted cash, respectively, and $28.5 million and $6.7 million of non-current restricted cash, respectively. These entities are not considered VIEs.

Factoring Arrangements

We sell certain customer trade receivables on a non-recourse basis under factoring arrangements with certain financial institutions. These transactions are accounted for as sales and cash proceeds are included in cash used in operating activities. We derecognized $108.0 million and $167.6 million of accounts receivable during the three and nine months ended September 30, 2023, respectively. We derecognized $146.3 million and $283.3 million of accounts receivable during the three and nine months ended September 30, 2022, respectively.

The costs of factoring such accounts receivable on our condensed consolidated statements of operations for the three and nine months ended September 30, 2023 were $2.0 million and $2.7 million, respectively. The costs of factoring for the three and nine months ended September 30, 2022 were $2.5 million and $3.7 million, respectively. The costs of factoring are recorded in general and administrative expenses.