|TERRAFORM POWER, INC. filed this Form 10-K on 07/21/2017|
The Company did not have any assets that were legally restricted for the purpose of settling the Company's asset retirement obligations as of December 31, 2016, 2015 and 2014.
The changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 are presented in the table below:
Distributed Generation reporting unit
Year Ended December 31,
Balance as of the beginning of the year
Balance as of the end of the year
The Company performed its annual impairment test of the carrying value of its goodwill as of December 1, 2016 and concluded that the goodwill balance of $55.9 million was fully impaired. The impairment was driven by a combination of factors, including lack of near-term growth in the operating segment. The impairment test determined there was no implied value of goodwill, which resulted in an impairment charge of $55.9 million as reflected in goodwill impairment within the consolidated statement of operations for the year ended December 31, 2016.
The Company used an income approach methodology of valuation, which used the discounted cash flow method based on forecasted cash flows of the distributed generation reporting unit. The market approach was considered but not used due to the lack of direct similarities with comparable companies in the market.
The following table presents the gross carrying amount, accumulated amortization and net book value of intangibles as of December 31, 2016:
(In thousands, except weighted average amortization period)
Weighted Average Amortization Period
Gross Carrying Amount
Net Book Value
Favorable rate revenue contracts
In-place value of market rate revenue contracts
Favorable rate land leases
Total intangible assets, net
Unfavorable rate revenue contracts
Unfavorable rate O&M contracts
Unfavorable rate land lease
Total intangible liabilities, net