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Project Assets
12 Months Ended
Oct. 31, 2018
Project Assets [Abstract]  
Project Assets

Note 5.  Project Assets

The carrying value of project assets as of October 31, 2018 and 2017 was $99.6 million and $73.0 million, respectively.  Project assets as of October 31, 2018 and 2017 included five completed, commissioned installations generating power with respect to which we have a power purchase agreement (“PPA”) with the end-user of power and site host with an aggregate value of $28.6 million and $32.1 million as of October 31, 2018 and 2017, respectively.  Certain of these assets are the subject of sale-leaseback arrangements with PNC Energy Capital, LLC (“PNC”), which are recorded under the financing method.  

The project assets balance as of October 31, 2018 and 2017 also includes assets aggregating $71.0 million and $40.9 million, respectively, which are being developed and constructed by the Company under existing PPAs and have not been placed in service.

On April 5, 2018, the Company sold a project asset to NRG Yield (now known as Clearway Energy) which resulted in the recognition of product revenue of $10.8 million.  The total reduction in project assets relating to the sale to NRG Yield was $9.8 million which was recorded as product cost of revenues.

On August 28, 2018, the Company sold a project asset to AEP OnSite Partners, LLC, and American Electric Power Company, Inc. (NYSE: AEP) which resulted in the recognition of product revenue of $9.2 million.  The total reduction in project assets relating to the sale was $8.0 million, which was recorded as product cost of revenues.

The Company also recorded a $0.5 million impairment of a project asset during the year ended October 31, 2018 due to the termination of the project.  The impairment was recorded as generation cost of revenues.

Depreciation expense for project assets was $4.1 million, $4.1 million and $0.7 million for the years ended October 31, 2018, 2017 and 2016, respectively.

Project construction costs incurred for long-term project assets are reported as investing activities in the Consolidated Statements of Cash Flows. The proceeds received from the sale and subsequent leaseback of project assets are classified as “Cash flows from financing activities” within the Consolidated Statements of Cash Flows and are classified as a financing obligation within “Current portion of long-term debt” and “Long-term debt and other liabilities” on the Consolidated Balance Sheets (refer to Note 12 for more information).