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

2015 Acquisitions - Intangibles at Acquisition Date
    
The following table summarizes the final fair value and weighted average amortization period of acquired intangible assets and liabilities as of the acquisition date for transactions closed during 2015. The acquisition accounting was finalized during 2015 for all 2015 acquisitions, with the exception of Invenergy Wind, which was finalized in 2016. The final intangibles fair value reflects the following changes from the initial opening balance sheet for Invenergy; a decrease of $2.7 million to favorable rate revenue contracts, a decrease of $34.3 million to the in-place value of market rate revenue contracts and an increase of $5.0 million to unfavorable rate O&M contracts.
 
Fair Value
(In thousands)
Invenergy
Wind
 
First
Wind
 
Northern
Lights
 
Integrys
 
Other
Intangible assets
 
 
 
 
 
 
 
 
 
Favorable rate revenue contracts
$
547,300

 
$
3,900

 
$
39,000

 
$
21,168

 
$
12,454

In-place value of market rate revenue contracts
164,000

 
103,900

 

 
7,798

 

Favorable rate land leases

 
15,800

 

 

 

Intangible liabilities


 


 


 


 


Unfavorable rate revenue contracts

 
17,200

 

 
5,786

 

Unfavorable rate O&M contracts
5,000

 

 

 

 

Unfavorable rate land lease

 
1,000

 

 

 

 
 
 
 
 
 
 
 
 
 
 
Weighted Average Amortization Period1
(In years)
Invenergy
Wind
 
First
Wind
 
Northern
Lights
 
Integrys
 
Other
Intangible assets
 
 
 
 
 
 
 
 
 
Favorable rate revenue contracts
17
 
3
 
18
 
12
 
20
In-place value of market rate revenue contracts
22
 
18
 
 
22
 
Favorable rate land leases
 
20
 
 
 
Intangible liabilities

 

 

 

 

Unfavorable rate revenue contracts
 
6
 
 
19
 
Unfavorable rate O&M contracts
4
 
 
 
 
Unfavorable rate land lease
 
18
 
 
 
————
(1)
For purposes of this disclosure, the weighted average amortization period is determined based on a weighting of the individual intangible fair values against the total fair value for each major intangible asset and liability class.

Unaudited Pro Forma Supplementary Data

The unaudited pro forma supplementary data presented in the table below gives effect to the significant 2015 acquisitions, Invenergy Wind, First Wind and Northern Lights, as if those transactions had each occurred on January 1, 2014. The unaudited pro forma supplementary data is provided for informational purposes only and should not be construed to be indicative of the Company’s results of operations had the acquisitions been consummated on the date assumed or of the Company’s results of operations for any future date.
(In thousands, unaudited)
Year Ended December 31, 2015
Total operating revenues, net
$
605,441

Net loss
(128,588
)

Acquisition costs incurred by the Company related to third party acquisitions were $2.7 million and $55.8 million for the years ended December 31, 2016 and 2015, respectively. There were no acquisition costs incurred for the year ended December 31, 2017. These costs are reflected as acquisition and related costs and acquisition and related costs - affiliate in the consolidated statements of operations and are excluded from the unaudited pro forma net loss amount disclosed above.


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