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SEC Filings
10-K
TERRAFORM POWER, INC. filed this Form 10-K on 07/21/2017
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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.

8. GOODWILL

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,
(In thousands)
 
2016
 
2015
Balance as of the beginning of the year
 
$
55,874

 
$

Goodwill acquired
 

 
55,874

Impairment
 
(55,874
)
 

Balance as of the end of the year
 
$

 
$
55,874


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.

9. INTANGIBLES

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
 
Accumulated Amortization
 
Net Book Value
Favorable rate revenue contracts
 
16 years
 
$
714,758

 
$
(57,634
)
 
$
657,124

In-place value of market rate revenue contracts
 
20 years
 
518,003

 
(47,284
)
 
470,719

Favorable rate land leases
 
18 years
 
15,800

 
(1,531
)
 
14,269

Total intangible assets, net
 
 
 
$
1,248,561

 
$
(106,449
)
 
$
1,142,112

 
 
 
 
 
 
 
 
 
Unfavorable rate revenue contracts
 
7 years
 
$
35,086

 
$
(10,541
)
 
$
24,545

Unfavorable rate O&M contracts
 
3 years
 
5,000

 
(1,302
)
 
3,698

Unfavorable rate land lease
 
16 years
 
1,000

 
(107
)
 
893

Total intangible liabilities, net
 
 
 
$
41,086

 
$
(11,950
)
 
$
29,136

    


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