Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Below are tabular disclosures, which give insight into how GS Holdings affects GreenSky, Inc.’s financial position, performance and cash flows. Prior to the IPO and Reorganization Transactions, GreenSky, Inc. was not impacted by GS Holdings, and therefore 2017 periods were not presented below.

The following table presents the balances related to GS Holdings that are included on the Unaudited Consolidated Balance Sheets as well as GreenSky, Inc.'s interest in the variable interest entity ("VIE") at June 30, 2018.



	June 30, 2018
	June 30, 2018

Assets
Cash	$	236,524
Restricted cash	142,542
Loan receivables held for sale, net	43,489
Accounts receivable, net	20,424
Related party receivables	335
Property, equipment and software, net	8,518
Other assets	5,401
Total assets	$	457,233

Liabilities and Members Equity (Deficit)
Liabilities
Accounts payable	$	6,342
Accrued compensation and benefits	6,451
Other accrued expenses	1,077
Finance charge reversal liability	107,047
Term loan	387,979
Related party liabilities	825
Other liabilities	39,612
Total liabilities	549,333

Members Equity (Deficit)
Equity attributable to Continuing LLC Members	(68,020		)
Equity attributable to GreenSky, Inc.	(24,080		)
Total members equity (deficit)	(92,100		)
Total liabilities and members equity (deficit)	$	457,233

The following table reflects the impact of consolidation of GS Holdings into the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2018.



	Three Months Ended June 30,			Six Months Ended June 30,
	2018			2018

Total operating revenue	$	105,704		$	191,030
Total operating expenses	58,896			120,645
Operating profit	46,808			70,385
Total other income/(expense), net	(4,398		)	(9,371		)
Net income	$	42,410		$	61,014

The following table reflects the cash flow impact of GS Holdings on the Unaudited Consolidated Statement of Cash Flows during the six months ended June 30, 2018:



	Six Months Ended June 30,
	2018

Net cash provided by operating activities	$	109,604
Net cash (used in) investing activities	(2,707		)
Net cash (used in) financing activities	(81,669		)

Net increase in cash and restricted cash	25,228
Cash and restricted cash at beginning of period	353,838
Cash and restricted cash at end of period	$	379,066

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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