XML 50 R14.htm IDEA: XBRL DOCUMENT v3.2.0.727
Capital Lease Obligations
6 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
Capital Lease Obligations

8.     Capital Lease Obligations 

We have a capital lease with SunTrust Equipment Finance and Leasing (as Lessor) from the sale and leaseback of distributed generation equipment placed in service at customer locations. We received $5.9 million from the sale of the equipment in December 2008 which we are repaying under the terms of the lease with monthly principal and interest payments of $0.1 million over a period of 84 months.  At the expiration of the term of the lease in December 2015, we have the option to purchase the equipment for $1 dollar, assuming no default under the lease by us has occurred and is then continuing.  The lease is guaranteed by us under an equipment lease guaranty.  The lease and the lease guaranty constitute permitted indebtedness under our current credit agreement. 

 

Proceeds of the lease financing were used to finance capital investments in equipment for our recurring revenue distributed generation projects.  We account for the lease financing as a capital lease in our condensed consolidated financial statements. 

 

The lease provides us with limited rights, subject to the lessor's approval which will not be unreasonably withheld, to relocate and substitute equipment during its term.  The lease contains representations and warranties and covenants relating to the use and maintenance of the equipment, indemnification and events of default customary for leases of this nature.  The lease also grants to the lessor certain remedies upon a default, including the right to cancel the lease, to accelerate all rent payments for the remainder of the term of the lease, to recover liquidated damages, or to repossess and re-lease, sell or otherwise dispose of the equipment. 

 

The balances of our capital lease obligations shown in the accompanying condensed consolidated balance sheet at June 30, 2015 and December 31, 2014 consists entirely of our obligations under the equipment lease described above.