Portfolio Financings

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Overview

We have developed three financing options that enable customers' use of the Energy Servers through third-party ownership financing arrangements. For additional information on these financing options, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

PPA Entities' Activities Summary

The table below shows the details of the three Investment Company VIEs that were active during the three months ended March 31, 2021 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 March 31, 2021:
Distributions to Equity Investor	$	4,864	$	10,922	$	26,601
Debt repayment—principal	$	11,575	$	22,075	$	19,363
Activity as of December 31, 2020:
Distributions to Equity Investor	$	4,847	$	8,852	$	24,809
Debt repayment—principal	$	10,513	$	21,163	$	16,475


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 March 31, 2021 and 2020. At March 31, 2021 and 2020, the carrying value of redeemable noncontrolling interests of $0.4 million and $0.4 million, respectively, exceeded the maximum redemption value.

PPA Entities’ Aggregate Assets and Liabilities

Generally, the assets of an Operating Company owned by an Investment Company can be used to settle only the Operating Company obligations, and the Operating Company creditors do not have recourse to us. The following are the aggregate carrying values of our VIEs' assets and liabilities in our condensed consolidated balance sheets, after eliminations of intercompany transactions and balances, including each of the PPA Entities in the PPA IIIa transaction, the PPA IV transaction, and the PPA V transaction (in thousands):



	March 31, 2021		December 31, 2020

Assets
Current assets:
Cash and cash equivalents	$	856	$	1,421
Restricted cash	1,686		4,698
Accounts receivable	4,359		4,420
Customer financing receivable	5,515		5,428
Prepaid expenses and other current assets	1,822		3,048
Total current assets	14,238		19,015
Property and equipment, net	246,216		252,020
Customer financing receivable, non-current	43,880		45,268
Restricted cash, non-current	15,367		15,320
Other long-term assets	38		37
Total assets	$	319,739	$	331,660

Liabilities
Current liabilities:

Accrued expenses and other current liabilities	$	14,587	$	19,510
Deferred revenue and customer deposits	662		662
Non-recourse debt	118,468		120,846
Total current liabilities	133,717		141,018
Deferred revenue and customer deposits, non-current	5,909		6,072
Non-recourse debt, non-current	99,942		102,045

Total liabilities	$	239,568	$	249,135

As of January 1, 2020, the flip date, we are the majority owner shareholder in PPA IIIa receiving 95% of all cash distributions and profits and losses. In addition, we consolidated each PPA Entity as VIEs in the PPA IV transaction and PPA V transaction, as we remain the minority shareholder in each of these transactions but have determined that we are the primary beneficiary of these VIEs. These PPA Entities contain debt that is non-recourse to us and own Energy Server assets for which we do not have title.

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 table provides our stand-alone assets and liabilities, those of the PPA Entities combined, and our consolidated balances as of March 31, 2021 and December 31, 2020 (in thousands):


	March 31, 2021						December 31, 2020
	Bloom Energy		PPA Entities		Consolidated		Bloom Energy		PPA Entities		Consolidated

Assets
Current assets	$	570,234	$	14,238	$	584,472	$	599,589	$	19,015	$	618,604
Long-term assets	561,289		305,501		866,790		523,138		312,645		835,783
Total assets	$	1,131,523	$	319,739	$	1,451,262	$	1,122,727	$	331,660	$	1,454,387
Liabilities
Current liabilities	$	235,591	$	15,249	$	250,840	$	295,359	$	20,172	$	315,531
Current portion of debt	—		118,468		118,468		—		120,846		120,846
Long-term liabilities	621,612		5,909		627,521		600,489		6,072		606,561
Long-term portion of debt	290,089		99,942		390,031		168,008		102,045		270,053
Total liabilities	$	1,147,292	$	239,568	$	1,386,860	$	1,063,856	$	249,135	$	1,312,991