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
(in thousands)	August 31, 2017			November 30, 2016
Minimum lease payment receivable, net (1)	$	95,373		$	100,161
Unguaranteed residual value	12,848			12,926
Less: unearned income	(28,186		)	(30,557		)
Net financing receivables	$	80,035		$	82,530
Short-term financing receivables, net (2)	$	2,551		$	2,516
Long-term financing receivables, net	$	77,484		$	80,014


(1)	Allowance for losses on financing receivables was $0.6 million and $0.7 million as of August 31, 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 $8.3 million and $2.9 million as of August 31, 2017 and November 30, 2016, respectively.

Current and Non-current Assets



	As of
(in thousands)	August 31, 2017			November 30, 2016
Prepaid expense and other current assets
Reimbursable network upgrade costs (1)	$	8,615		$	13,870
Derivative financial instruments	1,246			—
Other current assets (2)	2,451			1,875
Total	$	12,312		$	15,745
Property and equipment, net
Utility solar power systems	632,478			578,817
Leased solar power systems	137,258			137,475
Land	1,020			1,020
Construction-in-progress (3)	3,496			36,981
	$	774,252		$	754,293
Less: accumulated depreciation	(54,384		)	(34,161		)
Total	$	719,868		$	720,132
Other long-term assets
Reimbursable network upgrade costs (1)	$	20,026		$	21,781
Intangible assets (4)	1,433			1,754
Derivative financial instruments	—			897
Total	$	21,459		$	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 $0.3 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 $0.2 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, 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 as of August 31, 2017 and November 30, 2016 is the project assets related to the Kern Phase 1(a) Assets.

(4)

Intangible assets represent 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. Operating revenues were reduced by $0.1 million and $0.3 million in the three and nine months ended August 31, 2017, respectively. Operating revenues were not affected by intangible assets in the three and nine months ended August 31, 2016.

Current Liabilities



	As of
(in thousands)	August 31, 2017		November 30, 2016
Accounts payable and other current liabilities
Trade and accrued accounts payable	$	885	$	1,089
Related party payable (1)	4,417		20,653
System output performance warranty	52		196
Residential lease system repairs accrual	253		331
Other short-term liabilities	958		1,502
Total	$	6,565	$	23,771

(1)

Related party payable on the unaudited condensed consolidated balance sheets as of August 31, 2017 consists of (i) $3.5 million related to the purchase price payable to SunPower, which will be funded by the tax equity investor for the Kern Phase 1(a) Acquisition and the Kern Phase 2(c) Acquisition; (ii) $0.9 million related to accrued distribution to tax equity investors; and (iii) less than $0.1 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.