v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
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 March 31, 2026 and December 31, 2025, our retained interests in securitization trusts, our derivatives, receivables for which we have elected the fair value option, if any, 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, the inputs to which consist of base interest rates and spreads over base rates. Spreads 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 Notes and Junior Subordinated Notes (each as defined below), and our Convertible Notes are valued using a market-based approach and observable prices. The receivables held-for-sale, if any and excluding those on which we have elected the fair value option, are carried at the lower of cost or fair value, as determined on an individual asset basis.
 As of March 31, 2026
 Fair ValueCarrying
Value		Level
 (in millions)
Assets
Receivables
$3,210 $3,252 Level 3
Receivables held-for-sale
42 36 Level 3
Debt securities (1)
73 73 Level 3
Retained interests in securitization trusts (2)
326 326 Level 3
Derivative assets24 24 Level 2
Liabilities (3)
Credit facility
$1 $1 Level 3
Commercial paper notes— — Level 3
Term loans payable386 386 Level 3
Non-recourse debt119 121 Level 3
Senior notes
3,398 3,403 Level 2
Junior subordinated notes1,134 1,118 Level 2
Convertible Notes
564 404 Level 2
Derivative liabilities5 5 Level 2
(1)The amortized cost of our debt securities as of March 31, 2026, was $55 million.
(2)The amortized cost of our retained interests in securitization trusts net of allowance for credit losses as of March 31, 2026 was $376 million.
(3)Fair value and carrying value exclude unamortized financing costs.
 As of December 31, 2025
 Fair ValueCarrying
Value		Level
 (in millions)
Assets
Receivables
$3,222 $3,280 Level 3
Receivables held-for-sale128 114 Level 3
Debt securities (1)
73 73 Level 3
Retained interests in securitization trusts (2)
300 300 Level 3
Derivative assets25 25 Level 2
Liabilities (3)
Credit facility
$46 $46 Level 3
Commercial paper notes225 225 Level 3
Term loans payable
391 391 Level 3
Non-recourse debt128 128 Level 3
Junior subordinated notes
529 505 Level 2
Senior notes
3,539 3,489 Level 2
Convertible Notes
527 408 Level 2
Derivative liabilities6 6 Level 2
(1)    The amortized cost of our debt securities as of December 31, 2025, was $43 million.
(2)    The amortized cost of our retained interests in securitization trusts net of allowance for credit losses as of December 31, 2025, was $348 million.
(3)    Fair value and carrying value exclude unamortized financing costs.
Debt Securities
The following table reconciles the beginning and ending balances for our Level 3 debt securities that are carried at fair value on a recurring basis:
 For the three months ended March 31,
 20262025
 (in millions)
Balance, beginning of period$73 $7 
Equity method investee losses applied (1)
12 — 
Unrealized gains (losses) on debt securities recorded in OCI
(12)— 
Balance, end of period$73 $7 
(1)    As described in Note 2, losses in excess of basis from equity method investments from which we have other outstanding instruments are allocated against those other instruments. In the three months ended March 31, 2026, we were allocated income from these investments from which we had previously applied losses to related debt securities, so previously applied losses were reversed.
We had the following debt securities 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)
March 31, 2026$66 $7 $0.2 $1.0 3 5 
December 31, 202562 7 0.3 0.9 1 5 
(1)    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 debt securities, we used a market-based risk-free rate and added a range of interest rate spreads based upon transactions involving similar assets of approximately 3% to 6% as of March 31, 2026 and December 31, 2025. The weighted average discount rates used to determine the fair value of our debt securities as of March 31, 2026 and December 31, 2025 were 9.8% and 9.7%, respectively.
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 March 31,
 20262025
 (in millions)
Balance, beginning of period$300 $249 
Accretion of retained interests in securitization trusts
5 5 
Additions to retained interests in securitization trusts
24 7 
Collections from retained interests in securitization trusts
(2)(3)
Unrealized gains (losses) on retained interests in securitization trusts recorded in OCI
(1)7 
Balance, end of period$326 $265 

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)
March 31, 2026$40 $188 $2 $53 10 85 
December 31, 202531 188 1 51 8 87 
(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 March 31, 2026 and December 31, 2025. The weighted average discount rates used to determine the fair value of our retained interests in securitization trusts as of March 31, 2026 and December 31, 2025 were 7.1% and 7.0%, respectively.
Non-recurring Fair Value Measurements
Our financial statements may include non-recurring fair value measurements related to acquisitions and non-monetary transactions. 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, the U.S. federal government, and investment grade state and local governments 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:
March 31, 2026December 31, 2025
 (in millions)
Cash deposits$124 $110 
Restricted cash deposits (included in other assets)27 35 
Total cash deposits$151 $145 
Amount of cash deposits in excess of amounts federally insured$149 $143