Note 4. Balance Sheet Components

Financing Receivables

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 unaudited condensed consolidated balance sheets is as follows:

	As of
	February 28,			November 30,
(in thousands)	2017			2016
Minimum lease payment receivable, net (1)	$	98,684		$	100,161
Unguaranteed residual value		12,908			12,926
Less: unearned income		(29,801	)		(30,557	)
Net financing receivables	$	81,791		$	82,530
Short-term financing receivables, net (2)	$	2,559		$	2,516
Long-term financing receivables, net	$	79,232		$	80,014

(1)	Allowance for losses on financing receivables was $0.6 million and $0.7 million as of February 28, 2017 and November 30, 2016, respectively.

(2)	Accounts receivable and short-term financing receivables, net on the unaudited condensed consolidated balance sheets includes other trade accounts receivable of $3.1 million and $2.9 million, as of February 28, 2017 and November 30, 2016, respectively.

Current and Non-current Assets

	As of
	February 28,			November 30,
(in thousands)	2017			2016
Prepaid expense and other current assets
Reimbursable network upgrade costs (1)	$	7,496		$	13,870
Other current assets (2)		1,873			1,875
Total	$	9,369		$	15,745
Property and equipment, net
Utility solar power systems		613,293			578,817
Leased solar power systems		137,410			137,475
Land		1,020			1,020
Construction-in-progress (3)		15,210			36,981
	$	766,933		$	754,293
Less: accumulated depreciation		(40,744	)		(34,161	)
Total	$	726,189		$	720,132

Other long-term assets
Reimbursable network upgrade costs (1)	$	22,301		$	21,781
Intangible assets (4)		1,647			1,754
Derivative financial instruments		1,567			897
Total	$	25,515		$	24,432

(1)	For the Kingbird Project and the Quinto Project, the construction costs related to the network upgrade of a transmission grid belonging to a utility company are reimbursable by that utility company over five years from the date the project reached commercial operation.

(2)

Other current assets included $0.4 million due from SunPower related to system output performance warranties and system repairs in connection with $0.1 million of system output performance warranty accrual and $0.3 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 February 28, 2017. Similarly, other current assets included $0.5 million due from SunPower related to system output performance warranties and system repairs in connection with $0.2 million of system output performance warranty accrual and $0.3 million of system repairs accrual recorded in the “Accounts payable and other current liabilities” line item on the consolidated balance sheet as of November 30, 2016.

(3)	Construction-in-progress is the project assets related to the Kern Phase 1(a) Assets and Kern Phase 2(b) Assets.

(4)

Intangible assets represents a customer contract intangible that is amortized on a straight-line basis beginning on COD through the contract term end date of December 31, 2020, of which $0.1 million and zero reduced operating revenues in the three months ended February 28, 2017 and February 29, 2016, respectively.

Current Liabilities

	As of
	February 28,		November 30,
(in thousands)	2017		2016
Accounts payable and other current liabilities
Trade and accrued accounts payable	$	1,313	$	1,089
Related party payable (1)		7,006		20,653
System output performance warranty		138		196
Residential lease system repairs accrual		269		331
Other short-term liabilities		2,418		1,502
Total	$	11,144	$	23,771

(1)

Related party payable on the unaudited condensed consolidated balance sheets as of February 28, 2017 consists of (i) $5.8 million related to the purchase price payable to SunPower, which will be funded by tax equity investors for the Kern Phase 1(a) Acquisition and the Kern Phase 2(b) Acquisition; (ii) $0.6 million related to accrued distribution to tax equity investors; and (iii) $0.6 million for accounts payable to related parties associated with O&M, AMA and MSA fees owed to the Sponsors. Related party payable on the consolidated balance sheets as of November 30, 2016 consists of (i) $19.5 million related to the purchase price payable to SunPower for the Kern Phase 1(a) Acquisition, the Kern Phase 1(b) Acquisition, the Kern Phase 2(a) Acquisition and the Macy’s Maryland Acquisition; (ii) $1.0 million related to accrued distribution to tax equity investors; and (iii) $0.1 million for accounts payable to related parties associated with O&M, AMA and MSA fees owed to the Sponsors.