Noncontrolling Interests

8 Months Ended

Aug. 31, 2015

Note 10. Noncontrolling Interests

Noncontrolling interests represent the portion of net assets in consolidated subsidiaries that are not attributable, directly or indirectly, to the Partnership. For accounting purposes, the holders of noncontrolling interests of the Partnership include the Sponsors, which are SunPower and First Solar, as described in Note 1, and third-party investors under the tax equity financing facilities. As of August 31, 2015, First Solar and SunPower had noncontrolling interests of 31.1% and 40.7%, respectively, in OpCo.

In addition, certain subsidiaries of OpCo have entered into tax equity financing facilities with third-party investors under which the parties invest in entities that hold the solar power systems. The Partnership, through OpCo, holds controlling interests in these less-than-wholly-owned entities and has therefore fully consolidated these entities. The Partnership accounts for the portion of net assets using the HLBV Method in the consolidated entities attributable to the investors as "Redeemable noncontrolling interests" and "Noncontrolling interests" in its unaudited condensed consolidated financial statements. Noncontrolling interests in subsidiaries that are redeemable at the option of the noncontrolling interest holder are classified as "Redeemable noncontrolling interests in subsidiaries" between liabilities and equity on the condensed consolidated balance sheets. As of August 31, 2015, redeemable noncontrolling interests and noncontrolling interests were $2.1 million and $4.3 million, respectively. During the three and eight months ended August 31, 2015 and during the three and nine months ended September 28, 2014, such subsidiaries of OpCo received $7.0 million and zero, respectively, in contributions from investors under the related facilities and attributed $0.7 million and zero, respectively, in losses to the third-party investors primarily as a result of allocating certain assets, including tax credits, if any, to the investors.

The following table presents the noncontrolling interest balances by entity, reported in shareholders’ equity in the consolidated balance sheets as of August 31, 2015 and December 28, 2014:

	As of
	August 31,		December 28,
(in thousands)	2015		2014
First Solar	$	127,018	$	—
SunPower		156,726		—
Tax equity investors		4,277		—
Total	$	288,021	$	—