v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level hierarchy for classifying financial instruments. The levels of inputs used to determine the fair value of our financial assets and liabilities carried on the balance sheet at fair value and for those which only disclosure of fair value is required are characterized in accordance with the fair value hierarchy established by ASC 820, Fair Value Measurements. Where inputs for a financial asset or liability fall in more than one level in the fair value hierarchy, the financial asset or liability is classified in its entirety based on the lowest level input that is significant to the fair value measurement of that financial asset or liability. We use our judgment and consider factors specific to the financial assets and liabilities in determining the significance of an input to the fair value measurements. As of June 30, 2025 and December 31, 2024, only our retained interests in securitization trusts, our derivatives, and our debt securities were carried at fair value on the consolidated balance sheets on a recurring basis. The three levels of the fair value hierarchy are described below:
•Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date.
•Level 2 — Observable prices that are based on inputs not quoted on active markets but corroborated by market data.
•Level 3 — Unobservable inputs are used when little or no market data is available.
The tables below state the estimated fair value of our financial instruments on our balance sheet. Unless otherwise discussed below, fair values for our Level 2 and Level 3 measurements are measured using a discounted cash flow model, contractual terms and inputs which consist of base interest rates and spreads over base rates which are based upon market observation and recent comparable transactions. An increase in these inputs would result in a lower fair value and a decline would result in a higher fair value. Our Senior Unsecured Notes (as defined below) and Convertible Notes are valued using a market-based approach and observable prices. The receivables held-for-sale, if any, are carried at the lower of cost or fair value, as determined on an individual asset basis.
 As of June 30, 2025
 Fair ValueCarrying
Value		Level
 (in millions)
Assets
Receivables
$2,845 $3,026 Level 3
Receivables held-for-sale50 43 Level 3
Debt securities (1)
13 13 Level 3
Retained interests in securitization trusts (2)
272 272 Level 3
Derivative assets21 21 Level 2
Liabilities (3)
Commercial paper notes356 356 Level 3
Term loans payable403 403 Level 3
Non-recourse debt129 130 Level 3
Senior unsecured notes3,426 3,456 Level 2
Convertible Notes
472 409 
Level 2
Derivative liabilities7 7 Level 2
(1)The amortized cost of our debt securities as of June 30, 2025, was $8 million.
(2)The amortized cost of our retained interests in securitization trusts net of allowance for credit losses as of June 30, 2025 was $321 million.
(3)Fair value and carrying value exclude unamortized financing costs.
 As of December 31, 2024
 Fair ValueCarrying
Value		Level
 (in millions)
Assets
Receivables
$2,700 $2,896 Level 3
Receivables held-for-sale79 76 Level 3
Debt securities (1)
7 7 Level 3
Retained interests in securitization trusts (2)
249 249 Level 3
Derivative assets72 72 Level 2
Liabilities (3)
Credit facilities$1 $1 Level 3
Commercial paper notes100 100 Level 3
Term loan facilities415 415 Level 3
Non-recourse debt132 136 Level 3
Senior unsecured notes3,098 3,162 Level 2
Convertible Notes:
2025 Exchangeable Senior Notes214 218 Level 2
2028 Exchangeable Senior Notes470 408 Level 2
Total Convertible Notes684 626 
Derivative liabilities3 3 Level 2
(1)    The amortized cost of our debt securities as of December 31, 2024, was $8 million.
(2)    The amortized cost of our retained interests in securitization trusts net of allowance for credit losses as of December 31, 2024, was $301 million.
(3)    Fair value and carrying value exclude unamortized financing costs.

Retained interests in securitization trusts
The following table reconciles the beginning and ending balances for our Level 3 retained interest in securitization trust assets that are carried at fair value on a recurring basis, with changes in fair value recorded through AOCI:
 For the three months ended June 30,For the six months ended June 30,
 2025202420252024
 (in millions)
Balance, beginning of period$265 $220 $249 $219 
Accretion of retained interests in securitization trusts
5 4 9 8
Additions to retained interests in securitization trusts
11 21 19 28 
Collections from retained interests in securitization trusts
(6)(2)(9)(5)
Unrealized gains (losses) on retained interests in securitization trusts recorded in OCI
(3)(5)4 (12)
Balance, end of period$272 $238 $272 $238 

We had the following retained interests in securitization trusts in an unrealized loss position:
Estimated Fair Value
Unrealized Losses (1)
Count of Assets
Assets with a loss shorter than 12 monthsAssets with a loss longer than 12 monthsAssets with a loss shorter than 12 monthsAssets with a loss longer than 12 monthsAssets with a loss shorter than 12 monthsAssets with a loss longer than 12 months
(in millions)
June 30, 2025$60 $158 $2 $50 24 72 
December 31, 202467 152 4 52 28 69 
(1)    Other than the assets for which there is a reserve as discussed in Note 5, loss positions are due to interest rates movements and are not indicative of credit deterioration. We have the intent and ability to hold these assets until a recovery of fair value.
In determining the fair value of our retained interests in securitization trusts, we used a market-based risk-free rate and added a range of interest rate spreads based upon transactions involving similar assets of approximately 1% to 5% as of June 30, 2025 and 1% to 6% as of December 31, 2024. The weighted average discount rates used to determine the fair value of our retained interests in securitization trusts as of June 30, 2025 and December 31, 2024 were 7.0% and 7.3%, respectively.
Non-recurring Fair Value Measurements
Our financial statements may include non-recurring fair value measurements related to acquisitions and non-monetary transactions, if any. Assets acquired in a business combination, if any, are recorded at their fair value. We may use third-party valuation firms to assist us with developing our estimates of fair value.
Concentration of Credit Risk
Our receivables and debt securities are backed by various projects, U.S. federal government-backed receivables, and investment grade state and local government receivables and do not, in our view, represent a significant concentration of credit risk given the large number of diverse offtakers and other obligors of the projects. Additionally, certain of our investments are collateralized by projects concentrated in certain geographic regions throughout the United States. These investments typically have structural credit protections to mitigate our risk exposure and, in most cases, the projects are insured for estimated physical loss, which helps to mitigate the possible risk from these concentrations.
We had cash deposits that are subject to credit risk as shown below:
June 30, 2025December 31, 2024
 (in millions)
Cash deposits$87 $130 
Restricted cash deposits (included in other assets)17 20 
Total cash deposits$104 $150 
Amount of cash deposits in excess of amounts federally insured$102 $148