Balance Sheet Components (Tables)

8 Months Ended

Aug. 31, 2015

Balance Sheet Related Disclosures [Abstract]

The Partnership’s net investment in sales-type leases presented in “Accounts receivable and short-term financing receivables, net” and “Long-term financing receivables, net” on the condensed consolidated balance sheets is as follows:

	As of
	August 31,			December 28,
(in thousands)	2015			2014
Minimum lease payment receivable, net (1)	$	107,937		$	112,087
Unguaranteed residual value		12,974			13,068
Less: unearned income		(34,464	)		(36,742	)
Net financing receivables	$	86,447		$	88,413
Short-term financing receivables, net (2)	$	2,350		$	2,778
Long-term financing receivables, net	$	84,097		$	85,635

(1)	Allowance for losses on financing receivables was $0.3 million and zero as of August 31, 2015 and December 28, 2014, respectively.

(2)

Accounts receivable and short-term financing receivables, net on the condensed consolidated balance sheets includes accounts receivable from operating leases of $0.4 million and $0.1 million and accounts receivable from test electricity generation customers of $1.2 million and zero as of August 31, 2015 and December 28, 2014, respectively.

Summary of Balance Sheet Components

	As of
	August 31,			December 28,
(in thousands)	2015			2014
Cash grants and rebates receivable
Cash grants and rebates receivable (1)	$	—		$	1,216
Prepaid expense and other current assets
Reimbursable network upgrade costs (2)	$	5,783		$	—
Other current assets (3)		2,080			—
Total	$	7,863		$	—
Property and equipment, net
Solar energy systems utility	$	56,497			—
Leased solar energy systems		81,206			80,678
Construction-in-progress
Project assets (2)		348,493			84,436
	$	486,196		$	165,114
Less: accumulated depreciation (4)		(10,133	)		(6,906	)
Total	$	476,063		$	158,208

Other long-term assets
Reimbursable network upgrade costs (2)	$	23,134		$	—

(1)

The federal Section 1603 cash grant program, from which the Partnership’s Predecessor had benefitted, expired on December 28, 2014 and the Partnership no longer benefits from cash grants nor rebate revenue. The Partnership’s Predecessor did not recognize any cash grants in the three and eight months ended August 31, 2015, as all cash grants have been awarded, collected and recognized as of December 28, 2014. Previously, the Partnership’s Predecessor recognized zero and $11.9 million of cash grants in the three and nine months ended September 28, 2014, respectively, of which zero and $6.2 million reduced the carrying amount of the operating lease assets and zero and $5.7 million reduced sales-type lease cost of operations.

(2)

Throughout fiscal years 2013 and 2014, in relation to the construction of the Quinto Project, the Predecessor incurred construction costs related to the network upgrade of a transmission grid belonging to a utility company. These costs are reimbursable by the utility over five years when the project reaches commercial operation. In the early stages of construction, the Predecessor classified these costs as construction-in progress – project assets in the Property and equipment, net line item of the unaudited condensed consolidated financial statements. As the Quinto Project is expected to achieve COD in October 2015, the Partnership reclassified such cost as other assets, current and long term, on the consolidated financial statements.

(3)

Other current assets included $1.4 million due from SunPower related to system output performance warranties and system repairs in connection with $0.3 million of system output performance warranty accrual and $1.1 million of system repairs accrual recorded in the “Accounts payable and other current liabilities” line item on the unaudited condensed consolidated balance sheets as of August 31, 2015.

(4)	Depreciation expense in the three and eight months ended August 31, 2015 was $1.2 million and $2.4 million, respectively, and in the three and nine months ended September 28, 2014 was $0.7 million and $1.6 million, respectively.

Schedule of Account Payables and Other Liabilities

	As of
	August 31,		December 28,
(in thousands)	2015		2014
Accounts payable and other current liabilities
Residential lease financing fee payable to third-party investors	$	—	$	1,865
Accrued project costs		—		8,775
Accrued accounts payable		355		—
System output performance warranty		275		525
Residential lease system repairs accrual		1,094		660
Interest payable		123		366
Derivative financial instruments		770		—
Income taxes payable		—		23
Other short-term liabilities		69		—
	$	2,686	$	12,214
Other long-term liabilities
Derivative financial instruments	$	—	$	3,156
Asset retirement obligations		8,450		—
Deferred tax liabilities		695		—
Warranty reserves		—		818
	$	9,145	$	3,974