Quarterly report pursuant to Section 13 or 15(d)

Energy Assets, Net

v3.21.2
Energy Assets, Net
 9 Months Ended
Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Energy Assets, Net ENERGY ASSETS, NET
Energy assets, net consisted of the following:
  September 30, 2021 December 31, 2020
Energy assets (1)
$ 1,081,099  $ 954,426 
Less - accumulated depreciation and amortization (252,421) (225,048)
Energy assets, net $ 828,678  $ 729,378 
(1) Includes financing lease assets (see Note 6), capitalized interest and ARO assets (see tables below).
During the three months ended September 30, 2020, there was a triggering event which caused us to perform an impairment analysis on an energy asset group within the Non-solar DG segment. This triggering event was related to a decision by the applicable state environmental agency to discontinue an environmental permit. This action materially modified the obligation of the landfill owner to continue maintaining the wellfield, therefore, we plan to decommission the impacted landfill gas plant. As a result, we recorded an impairment charge of $1,901, which fully impaired this asset group. The impairment charge is included in
selling, general and administrative expenses within the condensed consolidated statements of income for the three and nine months ended September 30, 2021.
The following table sets forth our depreciation and amortization expense on energy assets, net of deferred grant amortization:
Three Months Ended September 30, Nine Months Ended September 30,
Location 2021 2020 2021 2020
Cost of revenues (2)
$ 11,313  $ 9,547  $ 31,449  $ 28,496 
(2) Includes depreciation and amortization on financing lease assets (see Note 6).
The following table presents the interest costs relating to construction financing during the period of construction, which were capitalized as part of energy assets, net:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Capitalized interest $ 827  $ 1,096  $ 4,353  $ 2,870 

The following tables sets forth information related to our Asset Retirement Obligations (“ARO”) assets and ARO liabilities:
Location September 30, 2021 December 31, 2020
ARO assets, net Energy assets, net $ 1,971  $ 1,468 
ARO liabilities, current Accrued expenses and other current liabilities $ 6  $ 86 
ARO liabilities, non-current Other liabilities 2,313  1,561 
Total ARO liabilities $ 2,319  $ 1,647 

Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Depreciation expense of ARO assets $ 30  $ 20  $ 83  $ 58 
Accretion expense of ARO liabilities $ 33  $ 21  $ 90  $ 64 
Energy Project Acquisition
In August 2021, we acquired one solar energy project, in exchange for a total purchase price of $3,461, which was paid in cash. The acquisition did not constitute a business in accordance with ASC 805-50, Business Combinations, and therefore was accounted for as an asset acquisition during the nine months ended September 30, 2021.