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SEC Filings
10-K
TERRAFORM POWER, INC. filed this Form 10-K on 03/07/2018
Entire Document
 

Over the next five fiscal years, the Company expects to recognize annual amortization on its intangibles as follows:
(In thousands)
 
2018
 
2019
 
2020
 
2021
 
2022
Favorable rate revenue contracts
 
$
44,270

 
$
44,184

 
$
44,184

 
$
42,376

 
$
41,269

Unfavorable rate revenue contracts
 
(4,956
)
 
(4,845
)
 
(2,620
)
 
(1,379
)
 
(1,275
)
Total net amortization expense recorded to operating revenues, net
 
$
39,314

 
$
39,339

 
$
41,564

 
$
40,997

 
$
39,994

 
 
 
 
 
 
 
 
 
 
 
In-place value of market rate revenue contracts
 
$
25,557

 
$
25,557

 
$
25,557

 
$
25,557

 
$
25,552

Total amortization expense recorded to depreciation, accretion and amortization expense
 
$
25,557

 
$
25,557

 
$
25,557

 
$
25,557

 
$
25,552

 
 
 
 
 
 
 
 
 
 
 
Favorable rate land leases
 
$
799

 
$
799

 
$
799

 
$
799

 
$
799

Unfavorable rate O&M contracts
 
(1,250
)
 
(1,198
)
 

 

 

Unfavorable rate land lease
 
(56
)
 
(56
)
 
(56
)
 
(56
)
 
(56
)
Total net amortization recorded to cost of operations
 
$
(507
)
 
$
(455
)
 
$
743

 
$
743

 
$
743


10. VARIABLE INTEREST ENTITIES

The Company consolidates VIEs in renewable energy facilities when the Company is the primary beneficiary. The VIEs own and operate renewable energy facilities in order to generate contracted cash flows. The VIEs were funded through a combination of equity contributions from the owners and non-recourse, project-level debt. As a result of the Company's sale of TerraForm Resi Solar Manager, LLC, a subsidiary of the Company that owned and operated 8.9 MW of residential rooftop solar installations, during the second quarter of 2017, the related assets and liabilities of this variable interest entity were deconsolidated (see Note 4. Assets Held for Sale). No other VIEs were deconsolidated during the years ended December 31, 2017 and 2016.

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the Company's consolidated balance sheets are as follows:
 
 
As of December 31,
(In thousands)
 
2017
 
2016
Current assets
 
$
142,403

 
$
191,244

Non-current assets
 
4,155,558

 
4,351,635

Total assets
 
$
4,297,961

 
$
4,542,879

Current liabilities
 
$
119,021

 
$
638,452

Non-current liabilities
 
975,839

 
514,464

Total liabilities
 
$
1,094,860

 
$
1,152,916


The amounts shown in the table above exclude intercompany balances that are eliminated upon consolidation. All of the assets in the table above are restricted for settlement of the VIE obligations, and all of the liabilities in the table above can only be settled by using VIE resources.



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