Variable Interest Entity Arrangements (Tables)

9 Months Ended

Sep. 30, 2023

Variable Interest Entity Disclosure [Abstract]

Carrying Values of Assets and Liabilities of Subsidiary in Consolidated Balance Sheets

The aggregate carrying values of the variable interest entities’ assets and liabilities, after elimination of any intercompany transactions and balances, in the consolidated balance sheets were as follows (in millions):


	September 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	78	$	68
Accounts receivable, net	30		22
Prepaid expenses and other current assets	341		274
Total current assets	449		364
Solar energy systems, net	3,921		4,060
Other non-current assets	390		404
Total assets	$	4,760	$	4,828
Liabilities
Current liabilities
Accrued liabilities and other	$	73	$	69
Deferred revenue	10		10
Current portion of debt and finance leases	1,512		1,013
Total current liabilities	1,595		1,092
Deferred revenue, net of current portion	145		149
Debt and finance leases, net of current portion	2,134		971
Other long-term liabilities	—		3
Total liabilities	$	3,874	$	2,215

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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