3 unchanged sentences
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
−Removed: September 30, 2021 (unaudited) December 31, 2020
+Added: March 31, 2022 (unaudited) December 31, 2021
Cash and cash equivalents $ 133,323 $ 226,204
3 unchanged sentences
Government receivables 116,183 125,409
+Added: Receivables held-for-sale 65,749 22,214
Real estate 359,867 356,088
6 unchanged sentences
Credit facilities 100,464 100,473
+Added: Commercial paper notes 75,172 50,094
Non-recourse debt (secured by assets of $ 567 million and $ 573 million, respectively)
16 unchanged sentences
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
−Removed: For the Three Months Ended September 30, For the Nine Months Ended September 30,
−Removed: 2021 2020 2021 2020
+Added: For the Three Months Ended March 31,
Interest income $ 30,242 $ 25,100
14 unchanged sentences
Net income (loss) attributable to non-controlling interest holders
−Removed: ( 261 ) 102 366 255
Net income (loss) attributable to controlling stockholders $ 45,346 $ 51,024
7 unchanged sentences
(DOLLARS IN THOUSANDS)
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2021 2020 2021 2020
+Added: Three Months Ended March 31,
Net income (loss) $ 45,703 $ 51,216
−Removed: Unrealized gain (loss) on available-for-sale securities, net of tax benefit (provision) of $ 0.1 million and $ 0.3 million for the three and nine months ended September 30, 2021 and $ 0.0 million and $( 1.1 ) million for the three and nine months ended September 30, 2020
−Removed: ( 900 ) 872 ( 8,268 ) 12,280
−Removed: Unrealized gain (loss) on interest rate swaps, net of tax benefit (provision) of $ 0.9 million and $( 1.0 ) million for the three and nine months ended September 30, 2021 and $( 0.3 ) million and $ 1.3 million for the three and nine months ended September 30, 2020
+Added: Unrealized gain (loss) on available-for-sale securities, net of tax benefit (provision) of $ 1.0 million for the three months ended March 31, 2022 and $ 0.8 million for the three months ended March 31, 2021
( 22,709 ) ( 19,310 )
+Added: Unrealized gain (loss) on interest rate swaps, net of tax benefit (provision) of $( 0.1 ) million for the three months ended March 31, 2022 and $( 0.4 ) million for the three months ended March 31, 2021
Comprehensive income (loss) 23,283 33,146
Comprehensive income (loss) attributable to non-controlling interest holders
−Removed: ( 274 ) 110 337 289
Comprehensive income (loss) attributable to controlling stockholders $ 23,101 $ 33,031
5 unchanged sentences
Shares Amount
−Removed: Balance at June 30, 2021 78,419 $ 784 $ 1,487,103 $ ( 193,530 ) $ 11,335 $ 16,855 $ 1,322,547
−Removed: Net income (loss) — — — ( 2,838 ) — ( 261 ) ( 3,099 )
−Removed: Unrealized gain (loss) on available-for-sale securities — — — — ( 896 ) ( 4 ) ( 900 )
−Removed: Unrealized gain (loss) on interest rate swaps — — — — ( 2,693 ) ( 10 ) ( 2,703 )
−Removed: Issued shares of common stock 857 9 48,803 — — — 48,812
−Removed: Equity-based compensation — — 985 — — 2,730 3,715
−Removed: Conversion of convertible notes 4,999 50 134,856 — — — 134,906
−Removed: Dividends and distributions — — — ( 29,565 ) — ( 328 ) ( 29,893 )
−Removed: Balance at September 30, 2021 84,275 $ 843 $ 1,671,747 $ ( 225,933 ) $ 7,746 $ 18,982 $ 1,473,385
−Removed: Balance at June 30, 2020 73,319 $ 733 $ 1,250,976 $ ( 198,719 ) $ 9,619 $ 5,355 $ 1,067,964
−Removed: Net income (loss) — — — 21,175 — 102 21,277
−Removed: Unrealized gain (loss) on available-for-sale securities — — — — 864 8 872
−Removed: Unrealized gain (loss) on interest rate swaps — — — — 991 ( 1 ) 990
−Removed: Issued shares of common stock 875 10 29,238 — — — 29,248
−Removed: Equity-based compensation — — 1,617 — — 1,285 2,902
−Removed: Other 59 — 913 — — ( 859 ) 54
−Removed: Dividends and distributions — — — ( 25,370 ) — ( 200 ) ( 25,570 )
−Removed: Balance at September 30, 2020 74,253 $ 743 $ 1,282,744 $ ( 202,914 ) $ 11,474 $ 5,690 $ 1,097,737
−Removed: See accompanying notes.
−Removed: Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Non-controlling interests Total
−Removed: Shares Amount
Balance at December 31, 2021 85,327 $ 853 $ 1,727,667 $ ( 193,706 ) $ 9,904 $ 21,797 $ 1,566,515
Net income (loss) — — — 45,346 — 357 45,703
−Removed: — — — 64,159 — 366 64,525
Unrealized gain (loss) on available-for-sale securities — — — — ( 22,532 ) ( 177 ) ( 22,709 )
−Removed: — — — — ( 8,219 ) ( 49 ) ( 8,268 )
Unrealized gain (loss) on interest rate swaps — — — — 287 2 289
1 unchanged sentence
Equity-based compensation — — 962 — — 2,579 3,541
−Removed: Issuance (repurchase) of vested equity-based compensation shares 323 3 ( 14,020 ) — — — ( 14,017 )
Conversion of convertible notes 283 3 7,671 — — — 7,674
+Added: Issuance (repurchase) of vested equity-based compensation shares 60 1 ( 2,212 ) — — — ( 2,211 )
Dividends and distributions — — — ( 32,922 ) — ( 1,746 ) ( 34,668 )
−Removed: Balance at September 30, 2021 84,275 $ 843 $ 1,671,747 $ ( 225,933 ) $ 7,746 $ 18,982 $ 1,473,385
+Added: Balance at March 31, 2022 86,720 $ 867 $ 1,783,938 $ ( 181,282 ) $ ( 12,341 ) $ 22,812 $ 1,613,994
Balance at December 31, 2020 76,457 $ 765 $ 1,394,009 $ ( 204,112 ) $ 12,634 $ 6,853 $ 1,210,149
Net income (loss) — — — 51,024 — 192 51,216
−Removed: — — — 57,491 — 255 57,746
−Removed: Adoption of ASU 2016-13, net of tax effect — — — ( 14,031 ) — ( 74 ) ( 14,105 )
Unrealized gain (loss) on available-for-sale securities — — — — ( 19,225 ) ( 85 ) ( 19,310 )
−Removed: — — — — 12,222 58 12,280
Unrealized gain (loss) on interest rate swaps — — — — 1,232 8 1,240
2 unchanged sentences
Issuance (repurchase) of vested equity-based compensation shares 223 2 ( 10,390 ) — — — ( 10,388 )
−Removed: Other 59 — 913 — — ( 860 ) 53
Dividends and distributions — — — ( 28,904 ) — ( 286 ) ( 29,190 )
−Removed: Balance at September 30, 2020 74,253 $ 743 $ 1,282,744 $ ( 202,914 ) $ 11,474 $ 5,690 $ 1,097,737
+Added: Balance at March 31, 2021 78,319 $ 783 $ 1,489,168 $ ( 181,992 ) $ ( 5,359 ) $ 8,721 $ 1,311,321
See accompanying notes.
2 unchanged sentences
(DOLLARS IN THOUSANDS)
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Cash flows from operating activities
9 unchanged sentences
(Gain) loss on sale of receivables and investments 29 ( 1,227 )
−Removed: Loss on debt extinguishment 14,584 —
+Added: Changes in receivables held-for-sale ( 43,482 ) ( 23,574 )
Changes in accounts payable and accrued expenses 11,709 1,145
9 unchanged sentences
Proceeds from sales of receivables — 36,370
+Added: Purchases of real estate ( 4,550 ) —
Purchases of investments — ( 4,830 )
−Removed: Principal collections from investments 256 1,981
Proceeds from sales of investments and securitization assets — 7,335
4 unchanged sentences
Cash flows from financing activities
−Removed: Proceeds from credit facilities 25,000 126,000
Principal payments on credit facilities — ( 3,041 )
−Removed: Proceeds from issuance of non-recourse debt
+Added: Proceeds from issuance of commercial paper notes 25,000 —
Principal payments on non-recourse debt
( 5,577 ) ( 4,830 )
−Removed: Proceeds from issuance of senior unsecured notes 1,000,000 771,250
−Removed: Proceeds from issuance of convertible notes — 143,750
−Removed: Redemption of senior unsecured notes ( 500,000 ) —
Net proceeds of common stock issuances 50,011 102,867
1 unchanged sentence
Withholdings on employee share vesting ( 2,211 ) ( 10,388 )
−Removed: Redemption premium paid ( 14,101 ) —
−Removed: Payment of debt issuance costs ( 17,672 ) ( 14,382 )
+Added: Payment of financing costs ( 3,421 ) ( 1,017 )
Other ( 461 ) ( 10 )
6 unchanged sentences
Residual assets retained from securitization transactions $ 4,532 $ 14,816
−Removed: Right-of-use asset obtained in exchange for lease liability 4,628 —
Issuance of common stock from conversion of convertible notes 7,674 —
4 unchanged sentences
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: September 30, 2021
+Added: March 31, 2022
Hannon Armstrong Sustainable Infrastructure Capital, Inc.
3 unchanged sentences
We also generate on-going fees through off-balance sheet securitization transactions, advisory services and asset management.
−Removed: We refer to the income producing assets that we hold on our balance sheet as our “Portfolio.” Our Portfolio may include:
−Removed: • equity investments in either preferred or common structures in unconsolidated entities;
−Removed: • government and commercial receivables, such as loans for renewable energy and energy efficiency projects;
−Removed: • real estate, such as land or other assets leased for use by sustainable infrastructure projects typically under long-term leases;
+Added: We refer to the income producing assets that we hold on our balance sheet as our “Portfolio.” Our Portfolio includes:
+Added: • equity investments in either preferred or common structures in unconsolidated entities which own renewable energy or energy efficiency projects;
+Added: • commercial and government receivables, such as loans for renewable energy and energy efficiency projects;
+Added: • real estate, such as land or other assets leased for use by climate solutions projects typically under long-term leases;
• investments in debt securities of renewable energy or energy efficiency projects.
−Removed: We finance our business through cash on hand, borrowings under credit facilities and debt transactions, asset-backed securitization transactions and equity issuances.
+Added: We finance our business through cash on hand, borrowings through short-term commercial paper issuances and revolving credit facilities, issuances of unsecured debt, asset-backed securitization transactions and equity issuances.
We also generate fee income through securitizations and syndications, by providing broker/dealer services and by managing and servicing assets owned by third parties.
8 unchanged sentences
In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations and cash flows have been included.
−Removed: Our results of operations for the three- and nine-month periods ended September 30, 2021 and 2020, are not necessarily indicative of the results to be expected for the full year or any other future period.
+Added: Our results of operations for the three-month periods ended March 31, 2022 and 2021, are not necessarily indicative of the results to be expected for the full year or any other future period.
Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted.
11 unchanged sentences
However, we may provide financial commitments to these VIEs or guarantees of certain of their obligations.
−Removed: Certain other entities in which we have equity investments have been assessed to be voting interest entities and are not consolidated as we exert significant influence rather than control through our ownership of voting interests, and accordingly account for them as equity method investments described below.
+Added: Certain other entities in which we have equity investments have been assessed to be voting interest entities and are not consolidated as we exert significant influence rather than control through our ownership of voting interests, and accordingly we account for them as equity method investments described below.
Equity Method Investments
6 unchanged sentences
Under the equity method of accounting, the carrying value of these equity method investments is determined based on amounts we invested, adjusted for the equity in earnings or losses of the investee allocated based on the LLC agreement, less distributions received.
−Removed: For the LLC agreements that contain preferences with regard to cash flows from operations, capital events and liquidation, we reflect our share of profits and losses by determining the difference between our claim on the investee’s book value at the beginning and the end of the period, which is adjusted for distributions received and contributions made.
+Added: For the LLC agreements that contain preferences with regard to cash flows from operations, capital events and liquidation, we reflect our share of profits and losses by determining the difference between our claim on the investee’s reported book value at the beginning and the end of the period, which is adjusted for distributions received and contributions made.
This claim is calculated as the amount we would receive if the investee were to liquidate all of its assets at the recorded amounts determined in accordance with GAAP and distribute the resulting cash to creditors and investors in accordance with their respective priorities.
This method is referred to as the hypothetical liquidation at book value method (“HLBV”).
+Added: Our exposure to loss to these investments is limited to the amount of our equity investment, as well as receivables from the same investee.
Any difference between the amount of our investment and the amount of underlying equity in net assets is generally amortized over the life of the assets and liabilities to which the difference relates.
9 unchanged sentences
and other factors.
−Removed: Government and Commercial Receivables
−Removed: Government and commercial receivables (“receivables”) include project loans and receivables.
+Added: Commercial and Government Receivables
+Added: Commercial and government receivables (“receivables”) include project loans and receivables.
These receivables are separately presented in our balance sheet to illustrate the differing nature of the credit risk related to these assets.
−Removed: Unless otherwise noted, we generally have the ability and intent to hold our receivables for the foreseeable future and thus they are classified as held for investment.
+Added: Unless otherwise noted, we generally have the ability and intent to hold our receivables for the foreseeable future and thus they are
+Added: classified as held for investment.
Our ability and intent to hold certain receivables may change from time to time depending on a number of factors including economic, liquidity and capital market conditions.
At inception of the arrangement, the carrying value of receivables held for investment represents the present value of the note, lease or other payments, net of any unearned fee income, which is recognized as income over the term of the note or lease using the effective interest method.
−Removed: Receivables that are held for investment are carried at amortized cost, net of any unamortized acquisition premiums or discounts and include
−Removed: origination and acquisition costs, as applicable.
+Added: Receivables that are held for investment are carried at amortized cost, net of any unamortized acquisition premiums or discounts and include origination and acquisition costs, as applicable.
Our initial investment and principal repayments of these receivables are classified as investing activities and the interest collected is classified as operating activities in our consolidated statements of cash flows.
24 unchanged sentences
Accrued rental income is the aggregate difference between the scheduled rents that vary during the lease term and the income recognized on a straight-line basis and is recorded in other assets.
−Removed: Expenses, if any, related to the ongoing operation of leases where we are the lessor, are charged to operations as incurred.
+Added: Expenses, if any, related to the ongoing operation of leases where we are the lessor, are charged to
+Added: operations as incurred.
Our initial investment is classified as investing activities and income collected for rental income is classified as operating activities in our consolidated statements of cash flows.
29 unchanged sentences
however, as the servicer, we do not have the power to make significant decisions impacting the performance of the trusts.
−Removed: We account for transfers of financial assets to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing (“ASC 860”), when we have concluded the transferred assets have been isolated from the transferor (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership) and we have surrendered control over the transferred assets.
+Added: We account for transfers of financial assets to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing (“ASC 860”), when we have concluded the transferred assets have been isolated from the transferor (i.e., put
+Added: presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership) and we have surrendered control over the transferred assets.
When we are unable to conclude that we have been sufficiently isolated from the securitized financial assets, we treat such trusts as secured borrowings, retaining the assets on our balance sheet and recording the amounts due to the trust investor as non-recourse debt.
9 unchanged sentences
Our other retained interest in securitized assets, the residual assets, are accounted for similar to available-for-sale debt securities and carried at fair value.
−Removed: Income related to the residual assets is recognized using the effective interest rate method and included in fee income in the income statement.
+Added: Income related to the residual assets is recognized using the effective interest rate method and included in fee income in our income statement.
Our residual assets are evaluated for impairment on a quarterly basis.
8 unchanged sentences
Restricted cash includes cash and cash equivalents set aside with certain lenders primarily to support obligations outstanding as of the balance sheet dates.
−Removed: Restricted cash is reported as part of other assets in the consolidated balance sheets.
+Added: Restricted cash is reported as part of other assets in our consolidated balance sheets.
Refer to Note 3 to our financial statements in this Form 10-Q for disclosure of the balances of restricted cash included in other assets.
4 unchanged sentences
The initial issuance and any principal repayments are classified as financing activities and interest payments are classified as operating activities in our consolidated statements of cash flows.
−Removed: If converted, the carrying value of each bond is reclassified into stockholders' equity.
+Added: If converted, the carrying value of each convertible note is reclassified into stockholders’ equity.
We elected and qualified to be taxed as a REIT for U.S.
8 unchanged sentences
Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.
−Removed: The effect on deferred tax assets and liabilities from a change in tax rates is
−Removed: recognized in earnings in the period when the new rate is enacted.
+Added: The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted.
We evaluate any deferred tax assets for valuation allowances based on an assessment of available evidence including sources of taxable income, prior years taxable income, any existing taxable temporary differences and our future investment and business plans that may give rise to taxable income.
21 unchanged sentences
We compute earnings per share of common stock in accordance with ASC 260, Earnings Per Share .
−Removed: Basic earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested grants under the 2013 Plan, if applicable) by the weighted-average number of shares of common stock outstanding during the period excluding the weighted average number of unvested grants under the 2013 Plan, if applicable (“participating securities” as defined in Note 12 to our financial statements to this Form 10-Q).
−Removed: Diluted earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested grants under the 2013 Plan, if applicable) by the weighted-average number of shares of common stock outstanding during the period plus other potential common stock instruments if they are dilutive.
+Added: Basic earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested grants, if applicable) by the weighted-average number of shares of common stock outstanding during the period excluding the weighted average number of unvested grants, if applicable (“participating securities” as defined in Note 12 to our financial statements in this Form 10-Q).
+Added: Diluted earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested grants, if applicable) by the weighted-average number of shares of common stock outstanding during the period plus other potential common stock instruments if they are dilutive.
Other potentially dilutive common stock instruments include our unvested restricted stock, other equity-based awards, and convertible notes.
6 unchanged sentences
Segment Reporting
−Removed: We make equity and debt investments in the energy efficiency, renewable energy and sustainable infrastructure markets.
+Added: We make equity and debt investments in the climate solutions markets.
We manage our business as a single portfolio and report all of our activities as one business segment.
Recently Issued Accounting Pronouncements
−Removed: Accounting standards updates issued before November 5, 2021, and effective after September 30, 2021, are not expected to have a material effect on our consolidated financial statements and related disclosures.
+Added: Accounting standards updates issued before May 6, 2022, and effective after March 31, 2022, are not expected to have a material effect on our consolidated financial statements and related disclosures.
Fair Value Measurements
4 unchanged sentences
We use our judgment and consider factors specific to the financial assets and liabilities in determining the significance of an input to the fair value measurements.
−Removed: As of September 30, 2021 and December 31, 2020, only our residual assets related to our securitization trusts and investments were carried at fair value on the consolidated balance sheets on a recurring basis.
+Added: As of March 31, 2022 and December 31, 2021, only our residual assets related to our securitization trusts and investments were carried at fair value on the consolidated balance sheets on a recurring basis.
The three levels of the fair value hierarchy are described below:
7 unchanged sentences
The receivables held-for-sale, if any, are carried at the lower of cost or fair value.
−Removed: As of September 30, 2021
+Added: As of March 31, 2022
Fair Value Carrying
(in millions)
−Removed: Government receivables $ 139 $ 126 Level 3
Commercial receivables $ 1,451 $ 1,321 Level 3
+Added: Government receivables 117 116 Level 3
+Added: Receivables held-for-sale 85 66 Level 3
Investments (1)
4 unchanged sentences
Credit facilities $ 100 $ 100 Level 3
+Added: Commercial paper notes 75 75 Level 3
Non-recourse debt 434 434 Level 3
1 unchanged sentence
Convertible notes 156 144 Level 2
−Removed: (1) The amortized cost of our investments as of September 30, 2021, was $ 17 million.
+Added: (1) The amortized cost of our investments as of March 31, 2022, was $ 17 million.
(2) Included in securitization assets on the consolidated balance sheet.
−Removed: This amount excludes securitization servicing assets, which are carried at amortized cost.
−Removed: The amortized cost of our securitization assets as of September 30, 2021 was $ 184 million.
+Added: The amortized cost of our securitization residual assets as of March 31, 2022 was $ 198 million.
(3) Fair value and carrying value exclude unamortized financing costs.
2 unchanged sentences
(in millions)
−Removed: Government receivables $ 282 $ 248 Level 3
Commercial receivables $ 1,433 $ 1,299 Level 3
+Added: Government receivables 137 125 Level 3
+Added: Receivables held-for-sale 32 22 Level 3
Investments (1)
4 unchanged sentences
Credit facilities $ 100 $ 100 Level 3
+Added: Commercial paper notes 50 50 Level 3
Non-recourse debt 476 440 Level 3
3 unchanged sentences
(2) Included in securitization assets on the consolidated balance sheet.
−Removed: This amount excludes securitization servicing assets, which are carried at amortized cost.
−Removed: The amortized cost of our securitization assets as of December 31, 2020 was $ 141 million.
+Added: The amortized cost of our securitization residual assets as of December 31, 2021 was $ 194 million.
(3) Fair value and carrying value exclude unamortized financing costs.
The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value on a recurring basis:
−Removed: For the three months ended September 30, For the nine months ended September 30,
−Removed: 2021 2020 2021 2020
+Added: For the three months ended March 31,
(in millions)
1 unchanged sentence
Purchases of investments — 5
−Removed: Principal payments on investments — — — ( 2 )
Sale of investments — ( 29 )
−Removed: Realized gains on investments recorded in gain on sale of receivables and investments — — — 5
Unrealized gains (losses) on investments recorded in OCI ( 2 ) ( 5 )
4 unchanged sentences
(in millions)
−Removed: September 30, 2021 $ 7 $ — $ 0.2 $ —
+Added: March 31, 2022 $ 9 $ — $ 0.7 $ —
December 31, 2021 7 — 0.1 —
1 unchanged sentence
We have the intent and ability to hold these investments until a recovery of fair value.
−Removed: In determining the fair value of our investments we used a market-based risk-free rate and a range of interest rate spreads of approximately 1 % to 4 % based upon transactions involving similar assets as of September 30, 2021 and December 31, 2020.
−Removed: The weighted average discount rate used to determine the fair value of our investments as of September 30, 2021 and December 31, 2020 were 3.6 % and 3.2 %, respectively.
+Added: In determining the fair value of our investments we used a market-based risk-free rate and a range of interest rate spreads of approximately 1 % to 4 % based upon transactions involving similar assets as of March 31, 2022 and December 31, 2021.
+Added: The weighted average discount rates used to determine the fair value of our investments as of March 31, 2022 and December 31, 2021 were 4.5 % and 3.6 %, respectively.
Securitization residual assets
The following table reconciles the beginning and ending balances for our Level 3 securitization residual assets that are carried at fair value on a recurring basis:
−Removed: For the three months ended September 30, For the nine months ended September 30,
−Removed: 2021 2020 2021 2020
+Added: For the three months ended March 31,
(in millions)
3 unchanged sentences
Collections of securitization residual assets ( 3 ) ( 1 )
−Removed: Sales of securitization residual assets — — — ( 21 )
Unrealized gains (losses) on securitization residual assets recorded in OCI ( 22 ) ( 15 )
Balance, end of period $ 192 $ 160
−Removed: In determining the fair value of our securitization residual assets, we used a market-based risk-free rate and a range of interest rate spreads of approximately 1 % to 4 % based upon transactions involving similar assets as of September 30, 2021 and December 31, 2020.
−Removed: The weighted average discount rates used to determine the fair value of our securitization residual assets as of September 30, 2021 and December 31, 2020 were 4.3 % and 3.8 %, respectively.
+Added: In determining the fair value of our securitization residual assets, we used a market-based risk-free rate and a range of interest rate spreads of approximately 1 % to 7 % based upon transactions involving similar assets as of March 31, 2022 and December 31, 2021.
+Added: The weighted average discount rates used to determine the fair value of our securitization residual assets as of March 31, 2022 and December 31, 2021 were 5.2 % and 4.3 %, respectively.
+Added: The difference between fair value and amortized cost is due to interest rates movements.
+Added: We have the intent and ability to hold these assets until a recovery of fair value.
Non-recurring Fair Value Measurements
2 unchanged sentences
We may use third-party valuation firms to assist us with developing our estimates of fair value.
−Removed: See Note 6 for discussion of a fair value measurement recorded at September 30, 2021 related to an equity method investment.
Concentration of Credit Risk
−Removed: Government and commercial receivables, real estate leases and debt investments consist primarily of U.S.
−Removed: federal government-backed receivables, investment grade state and local government receivables and receivables from various climate solutions projects and do not, in our view, represent a significant concentration of credit risk.
−Removed: Additionally, certain of our investments are collateralized by projects concentrated in certain geographic regions throughout the United States.
+Added: Commercial and governmental receivables, real estate leases and debt investments consist primarily of receivables from various projects, U.S.
+Added: federal government-backed receivables, and investment grade state and local government receivables and do not, in our view, represent a significant concentration of credit risk.
+Added: Certain of our investments are collateralized by projects concentrated in certain geographic regions throughout the United States.
These investments typically have structural credit protections to mitigate our risk exposure and, in most cases, the projects are insured for estimated physical loss, which helps to mitigate the possible risk from these concentrations.
We had cash deposits that are subject to credit risk as shown below:
−Removed: September 30, 2021 December 31, 2020
+Added: March 31, 2022 December 31, 2021
(in millions)
7 unchanged sentences
The outstanding OP units held by outside limited partners represent less than 1 % of our outstanding OP units and are redeemable by the limited partners for cash, or at our option, for a like number of shares of our common stock.
−Removed: No OP units were exchanged by non-controlling interest holders during the nine months ended September 30, 2021 and 57,400 OP units were exchanged by non-controlling interest holders during the nine months ended September 30, 2020.
−Removed: We have also granted to members of our management team and directors LTIP Units pursuant to the 2013 Plan.
+Added: No OP units were exchanged by non-controlling interest holders during the three months ended March 31, 2022 and March 31, 2021.
+Added: We have also granted to members of our leadership team and directors LTIP Units pursuant to the 2013 Plan.
LTIP Units issued to employees are held by HASI Management HoldCo LLC.
6 unchanged sentences
The following summarizes certain transactions with securitization trusts:
−Removed: As of and for the nine months ended September 30,
+Added: As of and for the three months ended March 31,
(in millions)
9 unchanged sentences
Our residual assets are subordinate to investors’ interests, and their values are subject to credit, prepayment and interest rate risks on the transferred financial assets.
−Removed: Other than our securitization assets representing our residual interests in the trusts' collateral, the investors and the securitization trusts have no recourse to our assets for failure of debtors to pay when due.
+Added: Other than our securitization assets representing these residual interests in the trusts’ assets, the investors and the securitization trusts have no recourse to our other assets for failure of debtors to pay when due.
In computing gains and losses on securitizations, we use discount rates based on a review of comparable market transactions including Level 3 unobservable inputs, which consist of base interest rates and spreads over these base rates.
Depending on the nature of the transaction risks, the discount rate ranged from 3 % to 9 %.
−Removed: As of September 30, 2021 and December 31, 2020, our managed assets totaled $ 8.2 billion and $ 7.2 billion, respectively, of which $ 5.0 billion and $ 4.3 billion, respectively, were securitized assets held in unconsolidated securitization trusts.
−Removed: There were no securitization credit losses in the nine months ended September 30, 2021 or September 30, 2020.
−Removed: As of September 30, 2021, there were no material payments from debtors to the securitization trusts that were greater than 90 days past due.
+Added: As of March 31, 2022 and December 31, 2021, our managed assets totaled $ 9.0 billion and $ 8.8 billion, respectively, of which $ 5.3 billion and $ 5.2 billion, respectively, were securitized assets held in unconsolidated securitization trusts.
+Added: There were no securitization credit losses in the three months ended March 31, 2022 or March 31, 2021.
+Added: As of March 31, 2022, there were no material payments from debtors to the securitization trusts that were greater than 90 days past due.
Receivables from contracts for the installation of energy efficiency and other technologies are the source of cash flows of $ 98 million of our securitization residual assets.
3 unchanged sentences
Our Portfolio
−Removed: As of September 30, 2021, our Portfolio included approximately $ 3.2 billion of equity method investments, receivables, real estate and investments on our balance sheet.
+Added: As of March 31, 2022, our Portfolio included approximately $ 3.7 billion of equity method investments, receivables, real estate and investments on our balance sheet.
The equity method investments represent our non-controlling equity investments in renewable energy and energy efficiency projects and land.
3 unchanged sentences
In addition, we consider the overall economic environment, the climate solutions sector, the effect of local, industry and broader economic factors, the impact of any variation in weather and the historical and anticipated trends in interest rates, defaults and loss severities for similar transactions.
−Removed: The following is an analysis of the Performance Ratings of our Portfolio as of September 30, 2021, which is assessed quarterly:
+Added: The following is an analysis of the Performance Ratings of our Portfolio as of March 31, 2022, which is assessed quarterly:
Portfolio Performance
25 unchanged sentences
(3) This category includes our assets where based on our credit criteria and performance to date, we believe there is substantial doubt regarding our ability to recover some or all of our invested capital.
−Removed: Included in this category are two commercial receivables with a combined total carrying value of approximately $ 8 million as of September 30, 2021, which we have held on non-accrual status since 2017.
+Added: Included in this category are two commercial receivables with a combined total carrying value of approximately $ 8 million as of March 31, 2022, which we have held on non-accrual status since 2017.
We expect to continue to pursue our legal claims with regards to these assets.
−Removed: This category previously contained an equity method investment in a wind project with no book value due to our allocation of impairment losses recorded by the project sponsor.
−Removed: We sold this equity method investment in the third quarter for nominal proceeds.
(4) Total reconciles to the total of the government receivables and commercial receivables lines of the consolidated balance sheets.
2 unchanged sentences
(6) Average remaining balance is calculated gross of allowance for loss on receivables and excludes approximately 259 transactions each with outstanding balances that are less than $ 1 million and that in the aggregate total $ 93 million.
−Removed: As of September 30, 2021, our allowance for loan losses was $ 39 million based on our expectation of credit losses over the lives of the receivables in our portfolio.
−Removed: During the three and nine months ended September 30, 2021, we increased our reserve by approximately $ 2 million and $ 3 million, respectively, primarily as a result of loans and loan commitments made during the period.
−Removed: Below is a summary of the carrying value, expected loan funding commitments, and allowance by type of receivable or “Portfolio Segment”, as defined by Topic 326, as of September 30, 2021 and December 31, 2020:
−Removed: September 30, 2021 December 31, 2020
+Added: As of March 31, 2022, our allowance for loan losses was $ 37 million based on our expectation of credit losses over the lives of the receivables in our portfolio.
+Added: During the three months ended March 31, 2022, we increased our reserve by approximately $ 1 million, primarily as a result of loans and loan commitments made during the period.
+Added: Below is a summary of the carrying value, expected loan funding commitments, and allowance by type of receivable or “Portfolio Segment”, as defined by Topic 326, as of March 31, 2022 and December 31, 2021:
+Added: March 31, 2022 December 31, 2021
Gross Carrying Value Loan Funding Commitments Allowance Gross Carrying Value Loan Funding Commitments Allowance
(in millions)
−Removed: Government (1)
−Removed: $ 126 $ — $ — $ 248 $ — $ —
Commercial (1)
1,358 196 37 1,335 184 36
+Added: Government (2)
+Added: $ 116 $ — $ — $ 125 $ — $ —
Total $ 1,474 $ 196 $ 37 $ 1,460 $ 184 $ 36
−Removed: (1) As of September 30, 2021, our government receivables include $ 28 million of U.S.
−Removed: federal government transactions and $ 98 million of transactions where the ultimate obligors are state or local governments.
−Removed: Risk characteristics of our government receivables include the energy savings or the power output of the projects and the ability of the government obligor to generate revenue for debt service, via taxation or other means.
−Removed: Transactions may have guarantees of energy savings or other performance support from third-party service providers, which typically are entities, directly or whose ultimate parent entity is, rated investment grade by an independent rating agency.
−Removed: All of our government receivables are included in Performance Rating 1 in the Portfolio Performance table above.
−Removed: Our allowance for government receivables is primarily calculated by using PD/LGD methods as discussed in Note 2 to our financial statements in this Form 10-Q.
−Removed: Our expectation of credit losses for these receivables is immaterial given the high credit-quality of the obligors.
−Removed: (2) As of September 30, 2021, this category of assets includes $ 742 million of mezzanine loans made on a non-recourse basis to special purpose subsidiaries of residential solar companies which are secured by residential solar assets where we rely on certain limited indemnities, warranties, and other obligations of the residential solar companies or their other subsidiaries.
+Added: (1) As of March 31, 2022, this category of assets includes $ 781 million of mezzanine loans made on a non-recourse basis to special purpose subsidiaries of residential solar companies which are secured by residential solar assets where we rely on certain limited indemnities, warranties, and other obligations of the residential solar companies or their other subsidiaries.
Approximately $ 702 million of our commercial receivables are loans made to entities in which we also have non-controlling equity investments of approximately $ 119 million.
4 unchanged sentences
For those assets in Performance Rating 1, the credit worthiness of the obligor combined with the various structural protections of our assets cause us to believe we have a low risk we will not receive our invested capital, however we recorded a $ 26 million allowance on these $ 1.3 billion in assets as a result of lower probability assumptions utilized in our allowance methodology.
+Added: (2) As of March 31, 2022, our government receivables include $ 20 million of U.S.
+Added: federal government transactions and $ 96 million of transactions where the ultimate obligors are state or local governments.
+Added: Risk characteristics of our government receivables include the energy savings or the power output of the projects and the ability of the government obligor to generate revenue for debt service, via taxation or other means.
+Added: Transactions may have guarantees of energy savings or other performance support from third-party service providers, which typically are entities, directly or whose ultimate parent entity is, rated investment grade by an independent rating agency.
+Added: All of our government receivables are included in Performance Rating 1 in the Portfolio Performance table above.
+Added: Our allowance for government receivables is primarily calculated by using PD/LGD methods as discussed in Note 2 to our financial statements in this Form 10-Q.
+Added: Our expectation of credit losses for these receivables is immaterial given the high credit-quality of the obligors.
The following table reconciles our beginning and ending allowance for loss on receivables by Portfolio Segment:
−Removed: Three months ended September 30, 2021 Three months ended September 30, 2020
−Removed: Government Commercial Government Commercial
−Removed: (in millions)
−Removed: Beginning balance $ — $ 37 $ — $ 29
−Removed: Provision for loss on receivables — 2 — 2
−Removed: Ending balance $ — $ 39 $ — $ 31
−Removed: Nine months ended September 30, 2021 Nine months ended September 30, 2020
+Added: Three months ended March 31, 2022 Three months ended March 31, 2021
Government Commercial Government Commercial
1 unchanged sentence
Beginning balance $ — $ 36 $ — $ 36
−Removed: $ — $ 36 $ — $ 26
Provision for loss on receivables — 1 — —
Ending balance $ — $ 37 $ — $ 36
−Removed: (1) For the nine months ended September 30, 2020, the beginning balance represents January 1, 2020, the adoption date of Topic 326.
−Removed: The beginning balance includes the pre-tax allowance for loss on receivables of $ 17 million recorded upon adoption which reflects our estimated loss as of that date under the new standard as well as the $ 8 million of receivables which were previously on non-accrual status and fully reserved.
Other than the $ 8 million of receivables discussed above with a Performance Rating of 3, we have no receivables which are on non-accrual status.
−Removed: The following table provides a summary of our anticipated maturity dates of our receivables and the weighted average yield for each range of maturities as of September 30, 2021:
+Added: The following table provides a summary of our anticipated maturity dates of our receivables and the weighted average yield for each range of maturities as of March 31, 2022:
Total Less than 1
3 unchanged sentences
Weighted average yield by period 8.1 % 7.4 % 5.9 % 8.3 % 8.1 %
−Removed: The following table provides a summary of our anticipated maturity dates of our investments and the weighted average yield for each range of maturities as of September 30, 2021:
+Added: The following table provides a summary of our anticipated maturity dates of our investments and the weighted average yield for each range of maturities as of March 31, 2022:
Total Less than 1
3 unchanged sentences
Weighted average yield by period 4.1 % — % — % — % 4.1 %
−Removed: We had no investments that were impaired or on non-accrual status as of September 30, 2021 or December 31, 2020, and no allowances associated with our investments.
+Added: We had no investments that were impaired or on non-accrual status as of March 31, 2022 or December 31, 2021, and no allowances associated with our investments.
Our real estate is leased to renewable energy projects, typically under long-term triple net leases with expiration dates that range between the years 2033 and 2058 under the initial terms and 2047 and 2080 if all renewals are exercised.
−Removed: The components of our real estate portfolio as of September 30, 2021 and December 31, 2020, were as follows:
−Removed: September 30, 2021 December 31, 2020
+Added: The components of our real estate portfolio as of March 31, 2022 and December 31, 2021, were as follows:
+Added: March 31, 2022 December 31, 2021
(in millions)
3 unchanged sentences
Real estate $ 360 $ 356
−Removed: As of September 30, 2021, the future amortization expense of the intangible assets and the future minimum rental income payments under our land lease agreements are as follows:
+Added: As of March 31, 2022, the future amortization expense of the intangible assets and the future minimum rental income payments under our land lease agreements are as follows:
Future Amortization Expense Minimum Rental Income Payments
(in millions)
−Removed: From October 1, 2021 to December 31, 2021 $ 1 $ 5
+Added: From April 1, 2022 to December 31, 2022 $ 2 $ 17
Thereafter 68 713
2 unchanged sentences
We have made non-controlling equity investments in a number of renewable energy and energy efficiency projects as well as in a joint venture that owns land with long-term triple net lease agreements to several solar projects that we account for as equity method investments.
−Removed: As of September 30, 2021, we held the following equity method investments:
+Added: As of March 31, 2022, we held the following equity method investments:
Investment Date Investee Carrying Value
2 unchanged sentences
Various Lighthouse Partnerships (1)
−Removed: March 2020 University of Iowa Energy Collaborative Holdings LLC 121
Various Phase V Class A LLC 130
+Added: March 2020 University of Iowa Energy Collaborative Holdings LLC 124
Various Other investees 626
3 unchanged sentences
We have a preferred equity interest in Jupiter Equity Holdings LLC (“Jupiter”) that owns nine operating onshore wind projects and four operating utility-scale solar projects with an aggregate capacity of approximately 2.3 gigawatts.
−Removed: As of September 30, 2021, we have made capital contributions to Jupiter of approximately $ 540 million related to these projects.
+Added: As of March 31, 2022, we have made capital contributions to Jupiter of approximately $ 546 million related to these projects.
The projects feature cash flows from fixed-price power purchase agreements and financial hedges with a weighted average contract life of 13 years, contracted with highly creditworthy off-takers and counterparties.
1 unchanged sentence
We own 100 % of the Class A Units in Jupiter corresponding to 49 % of the distributions from Jupiter subject to the preferences discussed below.
−Removed: Most major decisions that may impact Jupiter, its subsidiaries or its assets, require the majority vote of a four person committee in which we and the project sponsor each have two representatives.
+Added: Most major decisions that may impact Jupiter, its subsidiaries or its assets, require the majority vote of a four person committee on which we and the project sponsor each have two representatives.
Through Jupiter, we will be entitled to preferred distributions until certain return targets are achieved.
2 unchanged sentences
We use the equity method of accounting to account for our preferred equity interest in Jupiter, and have elected to recognize earnings from this investment one quarter in arrears to allow for the receipt of financial information.
−Removed: Lighthouse Partnerships
−Removed: In December 2020, we entered into certain agreements relating to the acquisition, ownership and management of approximately $ 663 million in preferred cash equity investments in three partnerships (the “Lighthouse Partnerships”) that expect to own cash equity interests in an approximately 1.6 gigawatt portfolio of onshore wind, utility-scale solar and solar-plus-storage projects (the “Renewables Portfolio”) developed and managed by the project sponsor.
−Removed: We have made initial investments in the preferred cash equity interests of the Lighthouse Partnerships of approximately $ 219 million through September 30, 2021, and additional investments are expected to be made in 2021 and 2022 as the projects become commercially operational.
+Added: Lighthouse Renewables Portfolio
+Added: We have entered into certain agreements relating to the acquisition, ownership and management of approximately $ 870 million in preferred cash equity investments in four partnerships (the “Lighthouse Partnerships”) that expect to own cash equity interests in an approximately 1.6 gigawatt portfolio of onshore wind, utility-scale solar and solar-plus-storage projects (the “Renewables Portfolio”) developed and managed by the project sponsor.
+Added: We have made initial investments in the preferred cash equity interests of the Lighthouse Partnerships of approximately $ 423 million through March 31, 2022, and additional investments are expected to be made in 2022 as the projects become commercially operational.
The Renewables Portfolio currently has contracted cash flows with a combined weighted average contract life of greater than 14 years with a diversified group of predominately investment grade corporate, utility, university and municipal offtakers.
−Removed: In the first quarter of 2021, we made approximately $ 15 million in equity contributions and made $ 10 million in member loans to one of the Lighthouse Partnerships for the settlement of hedging activity under one of the project's power hedge agreements as a result of the February 2021 winter storms in Texas.
Each of the Lighthouse Partnerships are or will be governed by a limited liability company agreement between us and the sponsor serving as managing member and contain customary terms and conditions.
1 unchanged sentence
The review committee is a four person committee, which includes two Company representatives and two sponsor representatives.
−Removed: Through each Lighthouse Partnership, commencing on a certain date following the effective date of the applicable limited liability company agreement, we will be entitled to preferred distributions until certain return targets are achieved.
+Added: Through each Lighthouse Partnership, commencing on a certain date following the effective date of the applicable limited liability company agreement, we will be entitled to preferred distributions until certain return targets of the Renewables Portfolio are achieved.
Subject to customary exceptions, no member of a Lighthouse Partnership can transfer any of its equity ownership in any Lighthouse Partnership to a third party without approval of the review committee of that Lighthouse Partnership.
We use the equity method of accounting to account for our preferred equity interest in each Lighthouse Partnership, and have elected to recognize earnings from this investment one quarter in arrears to allow for the receipt of financial information.
−Removed: Other Equity method investments
−Removed: In July 2021, we restructured an equity method investment with a GAAP carrying value of $ 24 million to convert it to a $ 17 million loan.
−Removed: The June 30, 2021 GAAP carrying value of this investment included amounts related to non-cash HLBV income that in normal course would have reversed over time.
−Removed: Because this transaction was an indication of fair value that existed as of June 30, 2021, we accelerated the reversal of $ 7 million of previously recorded non-cash HLBV income included in the June 30, 2021 carrying value of this investment in the second quarter through income from equity method investments on our income statement.
Credit facilities and commercial paper notes
4 unchanged sentences
The Approval-Based Facility is a secured revolving recourse credit facility with a maximum outstanding principal amount of $ 200 million.
−Removed: The following table provides additional detail on our Secured Credit Facilities as of September 30, 2021:
+Added: The following table provides additional detail on our Secured Credit Facilities as of March 31, 2022:
Facility Approval-Based Facility
3 unchanged sentences
Available capacity based on pledged assets 8 16
−Removed: Weighted average short-term borrowing rate N/A N/A
+Added: Weighted average short-term borrowing rate N/A 1.81 %
Loans under the Rep-Based Facility bear interest at a rate equal to one-month LIBOR plus 1.40 % or 1.85 % (depending on the type of collateral) or, in certain circumstances, the Federal Funds Rate plus 0.40 % or 0.85 % (depending on the type of collateral).
8 unchanged sentences
Under the Approval-Based Facility, the applicable valuation percentage is 85 % in the case of certain approved financings and 67 % or such other percentage as the administrative agent may prescribe.
−Removed: The Approval-Based Facility previously had an outstanding draw with a fixed amortization schedule that was prepaid in the third quarter of 2021.
We have approximately $ 2 million of remaining unamortized financing costs associated with the Secured Credit Facilities that have been capitalized and included in other assets on our balance sheet and are being amortized on a straight-line basis over the term of the Secured Credit Facilities.
Administrative fees are payable annually to the administrative agent under each of the Secured Credit Facilities and letter agreements with the administrative agent.
−Removed: Under the Rep-Based Facility, we pay to the administrative agent on each monthly payment date, for the benefit of the lenders, certain availability fees for the Rep-Based
−Removed: Facility equal to 0.60 %, divided by 365 or 366, as applicable, multiplied by the excess of the available total commitments under the Rep-Based Facility over the actual amount borrowed under the Rep-Based Facility.
+Added: Under the Rep-Based Facility, we pay to the administrative agent on each monthly payment date, for the benefit of the lenders, certain availability fees for the Rep-Based Facility equal to 0.60 %, divided by 365 or 366, as applicable, multiplied by the excess of the available total commitments under the Rep-Based Facility over the actual amount borrowed under the Rep-Based Facility.
The Secured Credit Facilities contain terms, conditions, covenants, and representations and warranties that are customary and typical for a transaction of this nature, including various affirmative and negative covenants, and limitations on the incurrence of liens and indebtedness, investments, fundamental organizational changes, dispositions, changes in the nature of business, transactions with affiliates, use of proceeds and stock repurchases.
−Removed: We were in compliance with our covenants as of September 30, 2021.
+Added: We were in compliance with our covenants as of March 31, 2022.
The Secured Credit Facilities also include customary events of default, including the existence of a default in more than 50 % of the value of underlying financings.
The occurrence of an event of default may result in termination of the credit facilities, acceleration of amounts due under the Secured Credit Facilities, and accrual of default interest at a rate of LIBOR plus 2.00 % in the case of both the Rep-Based Facility and the Approval-Based Facility.
−Removed: Unsecured credit facility
−Removed: In April 2021, we entered into a new $ 400 million, 364-day unsecured revolving credit facility pursuant to a revolving credit agreement with a syndicate of lenders, replacing our then-existing $ 50 million unsecured revolving credit facility entered into in February 2021.
−Removed: As of September 30, 2021, the outstanding balance on this facility was $ 25 million, and it currently bears interest at a rate of 2.325 %.
−Removed: We have approximately $ 1 million of remaining unamortized financing costs associated with the unsecured credit facility that have been capitalized and included in other assets on our balance sheet and are being amortized on a straight-line basis over the term of the unsecured credit facility.
−Removed: The unsecured revolving credit facility has a commitment fee based on our current credit rating and bears interest at a rate of the LIBOR or prime rate plus applicable margins based on our current credit rating, which may be adjusted downward up to 0.05 % to the extent our Portfolio achieves certain targeted levels of carbon emissions avoidance.
−Removed: As of the inception of the unsecured revolving credit facility, the applicable margins are 2.25 % for LIBOR-based loans and 1.25 % for prime rate-based loans.
+Added: Unsecured revolving credit facilities
+Added: In February 2022, we entered into a new $ 600 million unsecured revolving credit facility pursuant to a revolving credit agreement with a syndicate of lenders which matures in February 2025, replacing our then-existing $ 400 million unsecured revolving credit facility entered into in April 2021.
+Added: As of March 31, 2022, the outstanding balance on this facility was $ 50 million, and it currently bears interest at a rate of 2.169 %.
+Added: We have approximately $ 4 million of remaining unamortized financing costs associated with the unsecured credit facility that have been capitalized and included in other assets on our balance sheet and are being amortized on a straight-line basis over the term of the unsecured revolving credit facility.
+Added: The unsecured revolving credit facility has a commitment fee based on our current credit rating and bears interest at a rate of SOFR or prime rate plus applicable margins based on our current credit rating, which may be adjusted downward up to 0.10 % to the extent our Portfolio achieves certain targeted levels of carbon emissions avoidance, as measured by our CarbonCount © metric.
+Added: As of the inception of the unsecured revolving credit facility, the applicable margins are 1.875 % for SOFR-based loans and 0.875 % for prime rate-based loans.
+Added: The unsecured revolving credit facility has a commitment fee based on our current credit rating.
The unsecured revolving credit facility contains terms, conditions, covenants, and representations and warranties that are customary and typical for a transaction of this nature, including various affirmative and negative covenants, and limitations on the incurrence of liens and indebtedness, investments, fundamental organizational changes, dispositions, changes in the nature of business, transactions with affiliates, use of proceeds, stock repurchases and dividends we declare.
The unsecured revolving credit facility also includes customary events of default and remedies.
−Removed: At our option, upon maturity of the unsecured credit facility, we have the ability to convert amounts borrowed into term loans for a fee equal to 2.25 % of the term loan amounts.
+Added: At our option, upon maturity of the unsecured revolving credit facility, we have the ability to convert amounts borrowed into term loans for a fee equal to 1.875 % of the term loan amounts.
CarbonCount Green Commercial Paper Note Program
2 unchanged sentences
Commercial paper notes will not be redeemable, will not be subject to voluntary prepayment and are not to exceed 397 days.
−Removed: The proceeds of our commercial paper notes are used to acquire or refinance, in whole or in part, eligible green projects, including assets that are neutral to negative on incremental carbon emissions.
−Removed: We have no commercial paper notes outstanding as of September 30, 2021.
+Added: An amount equal to the proceeds of our commercial paper notes are allocated to either the acquisition or refinance of, in whole or in part, eligible green projects, including assets that are neutral to negative on incremental carbon emissions.
+Added: As of March 31, 2022, we have $ 75 million of commercial paper notes outstanding, maturing in the second quarter of 2022, which together bear an average total borrowing rate of 1.46 %.
+Added: An amount equal to the proceeds of these notes were allocated to the refinance of commercial paper notes issued in December 2021 as well as to additional investments in eligible green projects.
Green commercial paper notes will be issued at a discount based on market pricing, subject to broker fees of 0.10 %.
1 unchanged sentence
Fees paid on the drawn letters of credit may be reduced by up to 0.05 % to the extent our Portfolio achieves certain targeted levels of carbon emissions avoidance as measured by our CarbonCount metric.
−Removed: As of September 30, 2021, we have approximately $ 1 million of remaining unamortized financing costs associated with the commercial paper program and associated letter of credit that have been capitalized and included in other assets on our balance sheet and are being amortized on a straight-line basis over the term of the commercial paper program.
+Added: As of March 31, 2022, we have approximately $ 1 million of remaining unamortized financing costs associated with the commercial paper program and associated letter of credit that have been capitalized and included in other assets on our balance sheet and are being amortized on a straight-line basis over the term of the commercial paper program.
The associated letter of credit contains terms, conditions, covenants, and representations and warranties that are customary and typical for a transaction of this nature, including various affirmative and negative covenants, and limitations on the incurrence of liens and indebtedness, investments, fundamental organizational changes, dispositions, changes in the nature of business, transactions with affiliates, use of proceeds, stock repurchases and dividends we declare.
2 unchanged sentences
Non-recourse debt
−Removed: We have outstanding the following asset-backed non-recourse debt and bank loans:
+Added: We have outstanding the following asset-backed non-recourse debt:
Outstanding Balance
1 unchanged sentence
Maturity Carrying Value of Assets Pledged as of
−Removed: September 30, 2021 December 31, 2020 Interest
−Removed: Rate Maturity Date September 30, 2021 December 31, 2020 Description
+Added: March 31, 2022 December 31, 2021 Interest
+Added: Rate Maturity Date March 31, 2022 December 31, 2021 Description
of Assets Pledged
1 unchanged sentence
HASI Sustainable Yield Bond 2015-1A $ 76 $ 77 4.28 % October 2034 $ — $ 133 $ 133 Receivables, real estate and real estate intangibles
−Removed: HASI Sustainable Yield Bond 2015-1B Note (1)
−Removed: — 13 5.41 % October 2034 — 133 134 Class B Bond of HASI Sustainable Yield Bond 2015-1
HASI SYB Trust 2016-2 63 62 4.35 % April 2037 — 64 65 Receivables
−Removed: HASI ECON 101 Trust (2)
−Removed: — 126 3.57 % May 2041 — — 133 Receivables and investments
HASI SYB Trust 2017-1 145 146 3.86 % March 2042 — 203 203 Receivables, real estate and real estate intangibles
5 unchanged sentences
Non-recourse debt (2)
−Removed: (1) The Company repurchased this note in April of 2021.
−Removed: (2) In March 2021, contractual terms were modified resulting in the deconsolidation of both this debt and the related pledged assets.
−Removed: We recognized a loss of approximately $ 3 million, which is included in gain on sale of receivables and investments in our income statement.
(1) Other non-recourse debt consists of various debt agreements used to finance certain of our receivables.
Scheduled debt service payment requirements are equal to or less than the cash flows received from the underlying receivables.
−Removed: (4) The total collateral pledged against our non-recourse debt was $ 574 million and $ 723 million as of September 30, 2021 and December 31, 2020, respectively.
−Removed: In addition, $ 25 million and $ 23 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of September 30, 2021 and December 31, 2020, respectively.
+Added: (2) The total collateral pledged against our non-recourse debt was $ 567 million and $ 573 million as of March 31, 2022 and December 31, 2021, respectively.
+Added: In addition, $ 21 million and $ 24 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of March 31, 2022 and December 31, 2021, respectively.
We have pledged the financed assets, and typically our interests in one or more parents or subsidiaries of the borrower that are legally separate bankruptcy remote special purpose entities as security for the non-recourse debt.
5 unchanged sentences
We typically act as servicer for the debt transactions.
−Removed: We were in compliance with all covenants as of September 30, 2021 and December 31, 2020.
+Added: We were in compliance with all covenants as of March 31, 2022 and December 31, 2021.
We have guaranteed the accuracy of certain of the representations and warranties and other obligations of certain of our subsidiaries under certain of the debt agreements and provided an indemnity against certain losses from “bad acts” of such subsidiaries including fraud, failure to disclose a material fact, theft, misappropriation, voluntary bankruptcy or unauthorized transfers.
−Removed: The stated minimum maturities of non-recourse debt as of September 30, 2021, were as follows:
+Added: The stated minimum maturities of non-recourse debt as of March 31, 2022, were as follows:
Future minimum maturities
(in millions)
−Removed: October 1, 2021 to December 31, 2021 $ 11
+Added: April 1, 2022 to December 31, 2022 $ 19
Thereafter 274
3 unchanged sentences
The stated minimum maturities of non-recourse debt above include only the mandatory minimum principal payments.
−Removed: To the extent there are additional cash flows received from our investments in climate solutions serving as collateral for certain of our non-recourse debt facilities, these additional cash flows are required to be used to make additional principal payments against the respective debt.
+Added: To the extent there are additional cash flows received from our investments in climate solutions projects serving as collateral for certain of our non-recourse debt facilities, these additional cash flows may be required to be used to make additional principal payments against the respective debt.
Any additional principal payments made due to these provisions may impact the anticipated balance at maturity of these financings.
1 unchanged sentence
Senior Unsecured Notes
−Removed: We have outstanding senior unsecured notes issued jointly by certain of our TRS and are guaranteed by the Company and certain other subsidiaries (the “Senior Unsecured Notes”), including $ 1 billion of senior notes due 2026 (“2026 Notes”) issued in June 2021.
−Removed: Proceeds from the 2026 Notes were used to redeem the 2024 Notes as described below.
+Added: We have outstanding senior unsecured notes issued jointly by certain of our TRS and are guaranteed by the Company and certain other subsidiaries (the “Senior Unsecured Notes”).
The Senior Unsecured Notes are subject to covenants that limit our ability to incur additional indebtedness and require us to maintain unencumbered assets of not less than 120 % of our unsecured debt.
These covenants will terminate on any date at which the Senior Unsecured Notes have been rated investment grade by two of the three major credit rating agencies and no event of default has occurred.
−Removed: We are in compliance with all of our covenants as of September 30, 2021 and December 31, 2020.
+Added: We are in compliance with all of our covenants as of March 31, 2022 and December 31, 2021.
The Senior Unsecured Notes impose certain requirements in the event that we merge with or sell substantially all of our assets to another entity.
−Removed: The proceeds of our Senior Unsecured Notes are used to acquire or refinance, in whole or in part, eligible green projects, including assets that are neutral to negative on incremental carbon emissions.
+Added: We allocate an amount equal to the net proceeds of our Senior Unsecured Notes to the acquisition or refinance of, in whole or in part, eligible green projects, including assets that are neutral to negative on incremental carbon emissions.
The following are summarized terms of the Senior Unsecured Notes:
1 unchanged sentence
(in millions)
−Removed: 2024 Notes $ — (1)
−Removed: July 15, 2024 5.25 % January 15th and
−Removed: July 15th July 15, 2021
2025 Notes $ 400 April 15, 2025 6.00 % April 15 and
3 unchanged sentences
September 15, 2030 3.75 % February 15th and August 15th September 15, 2022 (3)
−Removed: (1) The first $ 350 million issuance of 2024 Notes was priced at par.
−Removed: We subsequently issued $ 150 million of the $ 500 million aggregate principal amount of the 2024 Notes for total proceeds of $ 157 million ($ 155 million net of issuance costs) at an effective interest rate of 4.13 %.
−Removed: The 2024 Notes were redeemed in June 2021 using a portion of the proceeds from the 2026 Notes.
−Removed: We recognized a loss of $ 15 million upon redemption for the redemption premium and the acceleration of debt issuance cost and premium amortization which is recorded in interest expense in our income statement.
(1) Prior to this date, we may redeem, at our option, some or all of the 2025 Notes or 2026 Notes for the outstanding principal amount plus the applicable “make-whole” premium as defined in the indenture governing the 2025 Notes or 2026 Notes plus accrued and unpaid interest through the redemption date.
6 unchanged sentences
The following table presents a summary of the components of the Senior Unsecured Notes:
−Removed: September 30, 2021 December 31, 2020
+Added: March 31, 2022 December 31, 2021
(in millions)
4 unchanged sentences
Carrying value of Senior Unsecured Notes $ 1,775 $ 1,763
−Removed: We recorded approximately $ 19 million and $ 53 million in interest expense related to the Senior Unsecured Notes in the three and nine months ended September 30, 2021, respectively, compared to approximately $ 14 million and $ 33 million in the three and nine months ended September 30, 2020, respectively.
+Added: We recorded approximately $ 19 million in interest expense related to the Senior Unsecured Notes in the three months ended March 31, 2022, compared to approximately $ 17 million in the three months ended March 31, 2021.
Convertible Senior Notes
1 unchanged sentence
Holders may convert any of their Convertible Senior Notes into shares of our common stock at the applicable conversion ratio at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, unless the Convertible Senior Notes have been previously redeemed or repurchased by us.
−Removed: The following are summarized terms of the Convertible Senior Notes as of September 30, 2021:
+Added: The following are summarized terms of the Convertible Senior Notes as of March 31, 2022:
Outstanding Principal Amount Maturity Date Stated Interest Rate Interest Payment Dates Conversion Ratio Conversion Price Issuable Shares Dividend Threshold Amount (1)
5 unchanged sentences
(1) The conversion ratio is subject to adjustment for dividends declared above these amounts per share per quarter and certain other events that may be dilutive to the holder.
−Removed: (2) During the quarter ended September 30, 2021, $ 136 million in principal amount of 2022 Convertible Senior Notes were converted into 5 million shares of common stock.
−Removed: For both the 2022 Convertible Senior Notes and the 2023 Convertible Senior Notes, following the occurrence of a make-whole fundamental change, we will, in certain circumstances, increase the conversion rate for a holder that converts its convertible notes in connection with such make-whole fundamental change.
+Added: (2) During the quarter ended March 31, 2022, the remaining $ 8 million in principal amount of 2022 Convertible Senior Notes were converted into 282,678 shares of common stock.
+Added: For the 2023 Convertible Senior Notes, following the occurrence of a make-whole fundamental change, we will, in certain circumstances, increase the conversion rate for a holder that converts its convertible notes in connection with such make-whole fundamental change.
There are no cash settlement provisions in the convertible notes and the conversion option can only be settled through physical delivery of our common stock.
Additionally, upon the occurrence of certain fundamental changes involving us, holders of the convertible notes may require us to redeem all or a portion of their convertible notes for cash at a price of 100 % of the principal amount outstanding, plus accrued and unpaid interest.
−Removed: We have a redemption option to call the 2022 Convertible Senior Notes prior to maturity (i) on or after March 1, 2022 and (ii) at any time if such a redemption is deemed reasonably necessary to preserve our qualification as a REIT,
−Removed: with the holder of the notes having the option of converting prior to our redemption becoming effective.
−Removed: The redemption price will be equal to the principal of the notes being redeemed, plus accrued and unpaid interest.
−Removed: In the event of redemption after March 1, 2022, there will be an additional make-whole premium paid to the holder of the redeemed notes unless the redemption is deemed reasonably necessary to preserve our qualification as a REIT.
+Added: In March 2022, we exercised a redemption option to call the remaining outstanding $ 8.1 million principal 2022 Convertible Senior Notes.
+Added: $ 7.6 million principal of notes converted prior to the effectiveness of the redemption option, with the remaining notes being redeemed for cash of $ 0.5 million.
We may redeem the 2023 Convertible Senior Notes at any time only if such a redemption is deemed reasonably necessary to preserve our qualification as a REIT.
The following table presents a summary of the components of the Convertible Senior Notes:
−Removed: September 30, 2021 December 31, 2020
+Added: March 31, 2022 December 31, 2021
(in millions)
3 unchanged sentences
Carrying value of Convertible Senior Notes
−Removed: We recorded approximately $ 2 million and $ 6 million in interest expense related to the Convertible Senior Notes in the three and nine months ended September 30, 2021 and 2020, respectively .
+Added: We recorded approximately $ 0.5 million and $ 2.1 million in interest expense related to the Convertible Senior Notes in the three months ended March 31, 2022 and 2021, respectively.
+Added: In April 2022, certain of our TRS jointly issued $ 200 million of 0.00 % green exchangeable senior notes due 2025 which are guaranteed by the Company and certain other subsidiaries and may, under certain conditions, be exchangeable for the Company’s common stock.
+Added: The notes accrete to a premium at maturity at an effective rate of 3.25 % annually.
+Added: Upon any exchange, holders will receive a number of shares of the Company’s common stock equal to the product of (i) the aggregate initial principal amount of the notes to be exchanged, divided by $1,000 and (ii) the applicable exchange rate, which will initially be 17.6873 , equivalent to an initial exchange price of approximately $ 56.54 per share, plus cash in lieu of fractional shares.
+Added: The Company intends to allocate an amount equal to the net proceeds of this offering to the acquisition or refinancing of, in whole or in part, new and/or existing eligible green projects, which include assets that are neutral to negative on incremental carbon emissions.
Commitments and Contingencies
2 unchanged sentences
Guarantees and other commitments
−Removed: We have made a guarantee related to the financing of one of our joint venture entities that owns debt securities of energy efficiency projects.
−Removed: The entity entered into a financing arrangement where we have guaranteed the obligations of the entity related to this financing, which includes collateral posting requirements as well as repayment of the financing at maturity in December 2021.
−Removed: As of September 30, 2021, our maximum obligation under this guarantee is approximately $ 60 million.
−Removed: We have executed a separate agreement with our joint venture partner pursuant to which it is liable for 15 % of this obligation repayable to us.
In connection with some of our transactions, we have provided certain limited representations, warranties, covenants and/or provided an indemnity against certain losses resulting from our own actions, including related to certain investment tax credits.
−Removed: As of September 30, 2021, there have been no such actions resulting in claims against the Company.
+Added: As of March 31, 2022, there have been no such actions resulting in claims against the Company.
The COVID-19 global pandemic has brought forth uncertainty and disruption to the global economy.
−Removed: As of September 30, 2021, we have not recorded any contingencies on our balance sheet related to COVID-19 with the exception of any allowances related to our receivables described in Note 6 to our financial statements in this Form 10-Q.
+Added: As of March 31, 2022, we have not recorded any contingencies on our balance sheet related to COVID-19 with the exception of any allowances related to our receivables described in Note 6 to our financial statements in this Form 10-Q.
To the extent COVID-19 continues to cause dislocations in the global economy, our financial condition, results of operations, and cash flows may be adversely impacted.
−Removed: We recorded an income tax (expense) benefit of approximately $ 1 million and $( 12 ) million for the three and nine months ended September 30, 2021, respectively, compared to a $( 2 ) million and $( 3 ) million income tax (expense) benefit in the three and nine months ended September 30, 2020, respectively.
−Removed: For the three and nine months ended September 30, 2021 and 2020, our income tax (expense) benefit was determined using the federal tax rate of 21%, and combined state tax rates, net of federal benefit, of approximately 3 % for 2021 and 4 % for 2020.
+Added: We recorded an income tax (expense) benefit of approximately $( 11 ) million for the three months ended March 31, 2022, compared to a $( 7 ) million income tax (expense) benefit in the three months ended March 31, 2021.
+Added: For the three months ended March 31, 2022 and 2021, our income tax (expense) benefit was determined using the federal tax rate of 21%, and combined state tax rates, net of federal benefit, of approximately 3 % for 2022 and 2021.
Dividends and Distributions
8 unchanged sentences
5/3/2022 7/5/2022 7/12/2022 $ 0.375
−Removed: 8/5/2021 10/1/2021 10/8/2021 0.35
(1) This dividend was treated as a distribution in 2022 for tax purposes.
7 unchanged sentences
Q1 2021 ATM 1.639 $ 63.55 $ 103
−Removed: Q2 2020 ATM 1.938 23.10 44
−Removed: Q3 2020 ATM 0.875 33.81 29
+Added: Q2 2021 None — — —
Q3 2021 ATM 0.857 57.56 49
Q4 2021 ATM 0.830 59.82 49
−Removed: Q2 2021 None — — —
Q1 2022 ATM 1.050 48.14 50
−Removed: (1) Net proceeds from the offerings are shown after deducting underwriting discounts, commissions and other offering costs.
+Added: (1) Net proceeds from the offerings are shown after deducting underwriting discounts and commissions.
(2) Represents the average price per share at which investors in our ATM offerings purchased our shares.
−Removed: Equity-based Compensation Awards under our 2013 Plan
+Added: Equity-based Compensation Awards
We have issued equity awards that vest from 2022 to 2026 subject to service, performance and market conditions.
−Removed: During the nine months ended September 30, 2021, our board of directors awarded employees and directors 434,159 shares of restricted stock, restricted stock units and LTIP Units that vest from 2022 to 2025.
−Removed: As of September 30, 2021, we have concluded that it is probable that the performance conditions will be met for previously issued restricted stock awards with performance conditions.
+Added: During the three months ended March 31, 2022, our board of directors awarded employees and directors 332,322 shares of restricted stock, restricted stock units and LTIP Units that vest from 2023 to 2026.
+Added: As of March 31, 2022, we have concluded that it is probable that the performance conditions will be met for previously issued restricted stock awards with performance conditions.
Refer to Note 4 to our financial statements in this Form 10-Q for background on the LTIP Units.
−Removed: For the three and nine months ended September 30, 2021 we recorded $ 4 million and $ 14 million of stock based compensation, respectively, compared to $ 4 million and $ 12 million during the three and nine months ended September 30, 2020.
−Removed: Of the current nine-month period expense, $ 2 million is related to the acceleration of compensation expense related to an employee with a change in employment status that occurred in the first quarter of 2021.
−Removed: The total unrecognized compensation expense related to awards of shares of restricted stock and restricted stock units was approximately $ 19 million as of September 30, 2021.
+Added: For the three months ended March 31, 2022 we recorded $ 4 million of stock based compensation, compared to $ 5 million during the three months ended March 31, 2021.
+Added: Of the prior-year three-month period expense, $ 2 million is related to the acceleration of compensation expense related to an employee with a change in employment status that occurred in the first quarter of 2021.
+Added: The total unrecognized compensation expense related to awards of shares of restricted stock and restricted stock units was approximately $ 28 million as of March 31, 2022.
We expect to recognize compensation expense related to our equity awards over a weighted-average term of approximately 2 years.
10 unchanged sentences
Forfeited — — —
−Removed: Ending Balance — September 30, 2021 197,255 $ 38.89 $ 7.7
+Added: Ending Balance — March 31, 2022 195,659 $ 41.61 $ 8.1
A summary of the unvested shares of restricted stock units that have market-based vesting conditions that have been issued is as follows:
12 unchanged sentences
Forfeited — — —
−Removed: Ending Balance — September 30, 2021 81,846 $ 35.52 $ 2.9
+Added: Ending Balance — March 31, 2022 63,426 $ 50.88 $ 3.2
(1) As discussed in Note 2 to our financial statements in this Form 10-Q, restricted stock units with market-based vesting conditions can vest between 0 % and 200 % subject to both the absolute performance of the Company's common stock as well as relative performance compared to a group of peers.
12 unchanged sentences
Forfeited — — —
−Removed: Ending Balance — September 30, 2021 384,046 $ 43.15 $ 16.6
+Added: Ending Balance — March 31, 2022 451,095 $ 48.15 $ 21.7
(1) See Note 4 to our financial statements in this Form 10-Q for information on the vesting of LTIP Units.
5 unchanged sentences
Granted 86,274 65.28 5.6
+Added: Vested ( 103,000 ) 21.09 ( 2.1 )
Forfeited — — —
4 unchanged sentences
Forfeited — — —
−Removed: Ending Balance — September 30, 2021 347,478 $ 31.61 $ 11.0
+Added: Ending Balance — March 31, 2022 324,028 $ 42.84 $ 13.9
(1) See Note 4 to our financial statements in this Form 10-Q for information on the vesting of LTIP Units.
LTIP Units with market-based vesting conditions can vest between 0 % and 200 % subject to both the absolute performance of the Company's common stock as well as relative performance compared to a group of peers.
+Added: The incremental performance shares granted relate to the vesting of an award at the 200 % level.
Earnings per Share of Common Stock
4 unchanged sentences
The computation of basic and diluted earnings per common share of common stock is as follows:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2021 2020 2021 2020
+Added: Three Months Ended March 31,
(in millions, except share and per share data)
14 unchanged sentences
Weighted-average number of OP units 675,207 323,527
−Removed: As of September 30, 2021 As of September 30, 2020
+Added: As of March 31, 2022 As of March 31, 2021
Participating securities:
8 unchanged sentences
We have non-controlling unconsolidated equity investments in renewable energy and energy efficiency projects as well as in a joint venture that owns land with long-term triple net lease agreements to several solar projects.
−Removed: We recognized income (loss) from our equity method investments of approximately $( 7 ) million and $ 70 million during the three and nine months ended September 30, 2021, respectively, compared to $ 17 million and $ 33 million during the three and nine months ended September 30, 2020, respectively.
−Removed: We describe our accounting for non-controlling equity investments in Note 2 to our financial statements in this Form 10-Q.
−Removed: The following is a summary of the consolidated financial position and results of operations of the significant entities accounted for using the equity method.
−Removed: SunStrong Capital Holdings LLC Rosie Target Co, LLC (1)
−Removed: Lighthouse Renewable HoldCo LLC (1)
−Removed: Summit Ridge Capital Holdings, LLC Vivint Solar Asset 3 Holdco Parent LLC Other Investments (2)
+Added: We recognized income (loss) from our equity method investments of approximately $ 48 million during the three months ended March 31, 2022, compared to $ 54 million during the three months ended March 31, 2021.
+Added: We describe our accounting for non-controlling equity investments in Note 2.
+Added: The following is a summary of the consolidated balance sheets and income statements of the entities in which we have a significant equity method investment.
+Added: These amounts are presented on the underlying investees’ accounting basis.
+Added: In certain instances, adjustment to these equity values may be necessary in order to reflect our basis in these investments.
+Added: As described in Note 2, any difference between the amount of our investment and the amount of our share of underlying equity is generally amortized over the life of the assets and liabilities to which the differences relate.
+Added: Jupiter Equity Holdings LLC Phase V Class A LLC Vivint Solar Asset 3 Holdco Parent LLC Other Investments (1)
(in millions)
Balance Sheet
−Removed: As of June 30, 2021
+Added: As of December 31, 2021
Current assets $ 323 $ 17 $ 13 $ 489 $ 842
10 unchanged sentences
Income Statement
−Removed: For the six months ended June 30, 2021
+Added: For the twelve months ended December 31, 2021
Revenue ( 253 ) 4 28 393 172
1 unchanged sentence
Net income (loss) ( 450 ) — 1 ( 133 ) ( 582 )
−Removed: For the six months ended June 30, 2020
+Added: For the twelve months ended December 31, 2020
Revenue ( 14 ) — 1 378 365
1 unchanged sentence
Net income (loss) ( 72 ) — ( 2 ) ( 164 ) ( 238 )
−Removed: (1) Component of the Lighthouse Partnerships described in Note 6 to our financial statements in this Form 10-Q.
(1) Represents aggregated financial statement information for investments not separately presented.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.