Power Purchase Agreement Programs |
Power Purchase Agreement Programs Overview In mid-2010, we began offering our Energy Servers through our Bloom Electrons program, which we denote as Power Purchase Agreement Programs, financed via investment entities. For additional information, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. PPA Entities' Activities Summary The table below shows the details of the three Investment Companies' VIEs that were active during the six months ended June 30, 2020 and their cumulative activities from inception to the periods indicated (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | PPA IIIa | | | | PPA IV | | PPA V | Overview: | | | | | | | | | | | | | Maximum size of installation (in megawatts) | | | | | | 10 | | | | 21 | | 40 | Installed size (in megawatts) | | | | | | 10 | | | | 19 | | 37 | Term of power purchase agreements (in years) | | | | | | 15 | | | | 15 | | 15 | First system installed | | | | | | Feb-13 | | | | Sep-14 | | Jun-15 | Last system installed | | | | | | Jun-14 | | | | Mar-16 | | Dec-16 | Income (loss) and tax benefits allocation to Equity Investor | | | | | | 99% | | | | 90% | | 99% | Cash allocation to Equity Investor | | | | | | 99% | | | | 90% | | 90% | Income (loss), tax and cash allocations to Equity Investor after the flip date | | | | | | 5% | | | | No flip | | No flip | Equity Investor 1 | | | | | | US Bank | | | | Exelon Corporation | | Exelon Corporation | Put option date 2 | | | | | | 1st anniversary of flip point | | | | N/A | | N/A | Company cash contributions | | | | | | $ | 32,223 | | | | | $ | 11,669 | | | $ | 27,932 | | Company non-cash contributions 3 | | | | | | $ | 8,655 | | | | | $ | — | | | $ | — | | Equity Investor cash contributions | | | | | | $ | 36,967 | | | | | $ | 84,782 | | | $ | 227,344 | | Debt financing | | | | | | $ | 44,968 | | | | | $ | 99,000 | | | $ | 131,237 | | Activity as of June 30, 2020: | | | | | | | | | | | | | Distributions to Equity Investor | | | | | | $ | 4,819 | | | | | $ | 8,582 | | | $ | 74,128 | | Debt repayment—principal | | | | | | $ | 9,293 | | | | | $ | 19,534 | | | $ | 11,765 | | Activity as of December 31, 2019: | | | | | | | | | | | | | Distributions to Equity Investor | | | | | | $ | 4,803 | | | | | $ | 6,692 | | | $ | 70,591 | | Debt repayment—principal | | | | | | $ | 6,631 | | | | | $ | 18,012 | | | $ | 9,453 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1 Investor name represents ultimate parent of subsidiary financing the project. | | | | | | | | | | | | | 2 Investor right on the certain date, upon giving us advance written notice, to sell the membership interests to us or resign or withdraw from the investment partnership. | | | | | | | | | | | | | 3 Non-cash contributions consisted of warrants that were issued by us to respective lenders to each PPA Entity, as required by such entity’s credit agreements. The corresponding values are amortized using the effective interest method over the debt term. | | | | | | | | | | | | |
The noncontrolling interests in PPA IIIa are redeemable as a result of the put option held by the Equity Investors as of June 30, 2020 and December 31, 2019. At June 30, 2020 and December 31, 2019, the carrying value of redeemable noncontrolling interests of $0.1 million and $0.4 million, respectively, exceeded the maximum redemption value. PPA Entities’ Aggregate Assets and Liabilities Generally, Operating Company assets can be used to settle only the Operating Company obligations and Operating Company creditors do not have recourse to us. The aggregate carrying values of our VIEs, including PPA IIIa, PPA IV and PPA V, for their assets and liabilities in our condensed consolidated balance sheets, after eliminations of intercompany transactions and balances, were (in thousands): | | | | | | | | | | | | | | | | | | | | | | June 30, 2020 | | December 31, 2019 | | | | | | Assets | | | | | Current assets: | | | | | Cash and cash equivalents | | $ | 4,600 | | | $ | 1,894 | | Restricted cash | | 827 | | | 2,244 | | Accounts receivable | | 4,004 | | | 4,194 | | Customer financing receivable | | 5,254 | | | 5,108 | | Prepaid expenses and other current assets | | 1,030 | | | 3,587 | | Total current assets | | 15,715 | | | 17,027 | | Property and equipment, net | | 263,793 | | | 275,481 | | Customer financing receivable, non-current | | 48,111 | | | 50,747 | | Restricted cash | | 15,123 | | | 15,045 | | Other long-term assets | | 241 | | | 607 | | Total assets | | $ | 342,983 | | | $ | 358,907 | | | | | | | Liabilities | | | | | Current liabilities: | | | | | | | | | | Accrued expenses and other current liabilities | | $ | 2,312 | | | $ | 1,391 | | Deferred revenue and customer deposits | | 662 | | | 662 | | Current portion of debt | | 11,366 | | | 12,155 | | Total current liabilities | | 14,340 | | | 14,208 | | Derivative liabilities | | 15,783 | | | 8,459 | | Deferred revenue | | 6,405 | | | 6,735 | | Long-term portion of debt | | 218,316 | | | 223,267 | | Other long-term liabilities | | 2,627 | | | 2,355 | | Total liabilities | | $ | 257,471 | | | $ | 255,024 | | | | | | |
As of January 1, 2020, the flip date, we are the majority owner shareholder in the PPA IIIa entity receiving 95% of all cash distributions and profits and losses. In PPA IV and PPA V we consolidate as VIEs, we are the minority shareholder. PPA Entities contain debt that is non-recourse to us. The PPA Entities also own Energy Server assets for which we do not have title. Although we will continue to have Power Purchase Agreement Program entities in the future and offer customers the ability to purchase electricity without the purchase of our Energy Servers, we do not intend to be a minority investor in any new Power Purchase Agreement Program entities. We believe that by presenting assets and liabilities separate from the PPA Entities, we provide a better view of the true operations of our core business. The table below provides detail into the assets and liabilities of Bloom Energy separate from the PPA Entities. The following table shows Bloom Energy's stand-alone, the PPA Entities combined and these consolidated balances as of June 30, 2020 and December 31, 2019 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2020 | | | | | | December 31, 2019 | | | | | | | Bloom Energy | | PPA Entities | | Consolidated | | Bloom Energy | | PPA Entities | | Consolidated | | | | | | | | | | | | | | Assets | | | | | | | | | | | | | Current assets | | $ | 425,077 | | | $ | 15,715 | | | $ | 440,792 | | | $ | 455,680 | | | $ | 17,027 | | | $ | 472,707 | | Long-term assets | | 509,483 | | | 327,268 | | | 836,751 | | | 508,004 | | | 341,880 | | | 849,884 | | Total assets | | $ | 934,560 | | | $ | 342,983 | | | $ | 1,277,543 | | | $ | 963,684 | | | $ | 358,907 | | | $ | 1,322,591 | | Liabilities | | | | | | | | | | | | | Current liabilities | | $ | 274,696 | | | $ | 2,974 | | | $ | 277,670 | | | $ | 234,328 | | | $ | 2,053 | | | $ | 236,381 | | Current portion of debt | | 14,698 | | | 11,366 | | | 26,064 | | | 325,428 | | | 12,155 | | | 337,583 | | Long-term liabilities | | 579,870 | | | 24,815 | | | 604,685 | | | 599,709 | | | 17,549 | | | 617,258 | | Long-term portion of debt | | 401,339 | | | 218,316 | | | 619,655 | | | 75,962 | | | 223,267 | | | 299,229 | | Total liabilities | | $ | 1,270,603 | | | $ | 257,471 | | | $ | 1,528,074 | | | $ | 1,235,427 | | | $ | 255,024 | | | $ | 1,490,451 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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