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

Non-controlling interests in subsidiaries that are redeemable either at the option of the holder or at fixed and determinable prices at certain dates are classified as redeemable non-controlling interests in subsidiaries between liabilities and stockholders' equity in the consolidated balance sheets. The redeemable non-controlling interests in subsidiaries balance is determined using the hypothetical liquidation at book value method for the VIE funds or allocation of share of income or losses in other subsidiaries subsequent to initial recognition; however, the non-controlling interests balance cannot be less than the estimated redemption value. The Company recorded a $4.0 million adjustment to the value of the Invenergy Wind redeemable non-controlling interest as of December 31, 2016, reflecting the excess of the future redemption value over its carrying amount at the balance sheet date based on SEC guidance in ASC 480-10-S99-3A. The Company accretes the redemption value of the redeemable non-controlling interest over the redemption period using the straight-line method. See additional information pertaining to this redemption feature in Note 5. Acquisitions.

The following table presents the activity of the redeemable non-controlling interest balance for the years ended December 31, 2016, 2015 and 2014:
 
 
Redeemable Non-controlling Interests
(In thousands)
 
Capital
 
Retained Earnings
 
Total
Balance as of December 31, 2013
 
$

 
$

 
$

Consolidation of redeemable non-controlling interests in acquired renewable energy facilities
 
24,338

 

 
24,338

Balance as of December 31, 2014
 
$
24,338

 
$

 
$
24,338

Consolidation of redeemable non-controlling interests in acquired renewable energy facilities
 
151,408

 

 
151,408

Sale of membership interests in renewable energy facilities
 
3,032

 

 
3,032

Repurchase of non-controlling interest in renewable energy facility
 
(8,504
)
 

 
(8,504
)
Distributions
 
(2,764
)
 

 
(2,764
)
Currency translation adjustment
 
(311
)
 

 
(311
)
Net income
 

 
8,512

 
8,512

Balance as of December 31, 2015
 
$
167,199

 
$
8,512

 
$
175,711

Sale of membership interests in renewable energy facilities
 
1,011

 

 
1,011

Distributions
 
(10,764
)
 

 
(10,764
)
Acquisition accounting adjustment to redeemable non-controlling interest in acquired renewable energy facility
 
(7,918
)
 

 
(7,918
)
Accretion of redeemable non-controlling interest
 
3,962

 

 
3,962

Net income
 

 
18,365

 
18,365

Balance as of December 31, 2016
 
$
153,490

 
$
26,877

 
$
180,367


19. COMMITMENTS AND CONTINGENCIES

Letters of Credit

The Company's customers, vendors and regulatory agencies often require the Company to post letters of credit in order to guarantee performance under relevant contracts and agreements. The Company is also required to post letters of credit to secure obligations under various swap agreements and leases and may, from time to time, decide to post letters of credit in lieu of cash deposits in reserve accounts under certain financing arrangements. The amount that can be drawn under some of these letters of credit may be increased from time to time subject to the satisfaction of certain conditions. As of December 31, 2016, the Company had outstanding letters of credit under the Revolver of $68.9 million and outstanding project-level letters of credit of $142.8 million.



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