Ameresco, Inc. Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

12 Months Ended

Dec. 31, 2019

The adoption adjustments for the Company’s outstanding operating and financing leases are detailed as follows:



	As of January 1, 2019
	As Reported		842 Adjustment		Adjusted Balances
Operating Leases:
Operating lease assets	$	—	$	31,639	$	31,639
Current portions of operating lease liabilities	—		5,084		5,084
Long-term portions of operating lease liabilities	—		28,480		28,480
Total operating lease liabilities	$	—	$	33,564	$	33,564
Weighted-average remaining lease term					10 years
Weighted-average discount rate					6.0		%

Financing Leases:
Energy assets, net	$	38,263	$	—	$	38,263
Current portions of financing lease liabilities	4,956		—		4,956
Long-term financing lease liabilities, less current portions and net of deferred financing fees	28,407		—		28,407
Total financing lease liabilities	$	33,363	$	—	$	33,363
Weighted-average remaining lease term					18 years
Weighted-average discount rate					11.7		%

Supplemental balance sheet information related to leases at December 31, 2019 is as follows:



	December 31, 2019
Operating Leases:
Operating lease assets	$	32,791
Current operating lease liabilities	5,802
Long-term portions of operating lease liabilities	29,101
Total operating lease liabilities	$	34,903
Weighted-average remaining lease term	11 years
Weighted-average discount rate	6.3		%

Financing Leases:
Energy assets, net	$	36,134
Current portions of financing lease liabilities	4,997
Long-term financing lease liabilities, less current portions and net of deferred financing fees	23,500
Total financing lease liabilities	$	28,497
Weighted-average remaining lease term	17 years
Weighted-average discount rate	11.8		%

The costs related to our leases are as follows:



	Year ended December 31, 2019
Operating Lease:
Operating lease costs	$	7,460

Financing Lease:
Amortization expense	2,129
Interest on lease liabilities	3,630

Total lease costs	$	13,219

The Company’s estimated minimum future lease obligations under our leases are as follows:



	Operating Leases		Financing Leases
Year ended December 31,
2020	$	7,768	$	8,078
2021	6,340		6,775
2022	5,775		5,173
2023	4,486		3,686
2024	3,668		2,585
Thereafter	21,220		24,215
Total minimum lease payments	$	49,257	$	50,512
Less: interest	14,354		22,015
Present value of lease liabilities	$	34,903	$	28,497

The Company’s estimated minimum future lease obligations under our leases are as follows:



	Operating Leases		Financing Leases
Year ended December 31,
2020	$	7,768	$	8,078
2021	6,340		6,775
2022	5,775		5,173
2023	4,486		3,686
2024	3,668		2,585
Thereafter	21,220		24,215
Total minimum lease payments	$	49,257	$	50,512
Less: interest	14,354		22,015
Present value of lease liabilities	$	34,903	$	28,497

See below for a summary of solar PV project sales by fiscal year:



Year Ended	# Solar PV Projects Sold (actual #’s)	Sale Price		Deferred Gain Recorded		Deferred Loss Recorded		Financing Lease Asset/Liability Recorded		Initial Lease Term (years)	Minimum Lease Payment		Maximum Lease Payment
Year-ended December 31, 2017	13	$	51,204	$	4,625	$	1,204	$	22,934	10-20	$	4	$	510
Year-ended December 31, 2018	2	$	5,145	$	574	$	—	$	2,625	20	$	3	$	144

A summary of amounts related to sale leasebacks in the Company’s consolidated balance sheets is as follows:



	December 31,		December 31,
	2019		2018
Financing lease assets, net	$	36,134	$	38,263
Deferred loss, short-term, net	115		115
Deferred loss, long-term, net	1,801		1,917
Total deferred loss	$	1,916	$	2,032
Financing lease liabilities, short-term	4,997		4,956
Financing lease liabilities, long-term	23,500		28,407
Total financing lease liabilities	$	28,497	$	33,363
Deferred gain, short-term, net	345		345
Deferred gain, long-term, net	5,463		5,808
Total deferred gain	$	5,808	$	6,153