Lease Agreements and Power Purchase Agreements

6 Months Ended

May 31, 2016

Leases [Abstract]

Lease Agreements and Power Purchase Agreements

Note 6. Lease Agreements and Power Purchase Agreements

Lease Agreements

As of May 31, 2016, the Partnership’s unaudited condensed consolidated financial statements include approximately 5,900 residential lease agreements which have original terms of 20 years and are classified as either operating or sales-type leases. In addition, the lease agreement for the Maryland Solar Project has a lease term that will expire on December 31, 2019, and the lessee, who is an affiliate of First Solar, is obligated to pay a fixed amount of rent that is set based on the expected operations of the plant.

The following table presents the Partnership’s minimum future rental receipts on operating leases (including the lease agreement for the Maryland Solar Project and the residential lease portfolio) placed in service as of May 31, 2016:

(in thousands)	2016 (remaining six months)		2017		2018		2019		2020		Thereafter		Total
Minimum future rentals on residential    operating leases placed in service (1)	$	1,846	$	3,707	$	3,727	$	3,748	$	3,769	$	46,404	$	63,201
Maryland Solar lease		2,678		5,231		5,173		4,912		—		—		17,994
Total operating leases	$	4,524	$	8,938	$	8,900	$	8,660	$	3,769	$	46,404	$	81,195

(1) Minimum future rentals on operating leases placed in service do not include contingent rentals that may be received from customers under agreements that include performance-based incentives and executory costs.

As of May 31, 2016, future maturities of net financing receivables for sales-type leases are as follows:

(in thousands)	2016 (remaining six months)		2017		2018		2019		2020		Thereafter		Total
Scheduled maturities of minimum lease    payments receivable (1)	$	2,776	$	5,616	$	5,704	$	5,791	$	5,883	$	77,554	$	103,324

(1) Minimum future rentals on sales-type leases placed in service do not include contingent rentals that may be received from customers under agreements that include performance-based incentives and executory costs.

Power Purchase Agreements

Under the terms of various PPAs, the Partnership’s contracted counterparties may be obligated to take all or part of the output from the system at stipulated prices over defined periods. All PPAs are accounted for as operating leases, have no minimum lease payments and all of the rental income under these leases is recorded as revenue when the electricity is delivered.