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SEC Filings
10-K
TERRAFORM POWER, INC. filed this Form 10-K on 03/07/2018
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23. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

Quarterly results of operations for the year ended December 31, 2017 were as follows:
(In thousands, except per share data)
 
Q1
 
Q2(1)
 
Q3(2)
 
Q4(3)
Operating revenues, net
 
$
151,135

 
$
170,367

 
$
153,430

 
$
135,539

Operating income (loss)
 
12,068

 
25,547

 
24,686

 
(21,578
)
Interest expense, net
 
68,312

 
68,205

 
70,232

 
55,254

Net loss
 
(56,273
)
 
(680
)
 
(34,820
)
 
(141,091
)
Net (loss) income attributable to Class A common stockholders
 
(31,769
)
 
7,425

 
(26,546
)
 
(113,299
)
Weighted average basic Class A common shares outstanding
 
92,072

 
92,257

 
92,352

 
138,401

Weighted average diluted Class A common shares outstanding
 
92,072

 
92,745

 
92,352

 
138,401

Net (loss) earnings per weighted average Class A common share - basic and diluted
 
$
(0.37
)
 
$
0.06

 
$
(0.31
)
 
$
(0.82
)
———
(1)
The Company closed on the sale of the U.K. Portfolio during the second quarter of 2017 and recognized a gain on the sale of $37.1 million which is reflected within gain on sale of renewable energy facilities in the consolidated statement of operations.
(2)
The Company entered into a settlement agreement in 2017 with insurers of one of its wind power plants with respect to insurance proceeds related to a battery fire that occurred at the wind power plant in 2012, and the Company received the insurance proceeds in the fourth quarter of 2017. The receipt of the proceeds became probable in the third quarter of 2017, and the Company recognized a $5.3 million gain in other (income) expenses, net.
(3)
The fourth quarter of 2017 includes a $78.6 million loss on extinguishment of debt comprised of charges related to the Revolver, the Senior Notes due 2023 and the Midco Portfolio Term Loan (as discussed in Note 11. Long-term Debt), $27.0 million of charges recorded within general and administrative expenses related to success fees and advisory fees paid to third party advisers upon the closing of the Merger and a $7.0 million stock-based compensation charge recognized within general and administrative expenses as a result of the vesting of all previously unvested equity awards issued under the TerraForm Power 2014 Second Amended and Restated Long-term Incentive Plan upon the consummation of the Merger. These charges were partially offset by a $6.4 million increase recorded to the income tax benefit in the fourth quarter of 2017 to adjust amounts previously reported in 2016 as discussed in Note 12. Income Taxes and a $4 million gain recognized within general and administrative expenses as a result of the final settlement of the EMEC litigation as discussed in Note 19. Commitments and Contingencies.

Quarterly results of operations for the year ended December 31, 2016 were as follows:
(In thousands, except per share data)
 
Q1
 
Q2(1)
 
Q3(2)
 
Q4(3)
Operating revenues, net
 
$
153,917

 
$
187,301

 
$
178,118

 
$
135,220

Operating income (loss)
 
32,505

 
62,558

 
50,708

 
(56,794
)
Interest expense, net
 
68,994

 
101,299

 
72,818

 
67,225

Net loss
 
(33,505
)
 
(44,937
)
 
(27,711
)
 
(135,354
)
Net loss attributable to Class A common stockholders
 
(481
)
 
(20,907
)
 
(26,171
)
 
(82,288
)
Weighted average Class A common shares outstanding - basic and diluted
 
87,833

 
90,809

 
90,860

 
91,658

Net loss per weighted average Class A common share - basic and diluted
 
$
(0.01
)
 
$
(0.23
)
 
$
(0.29
)
 
$
(0.94
)
———
(1)
During the second quarter of 2016, the Company discontinued hedge accounting for interest rate swaps related to its U.K. Portfolio. This resulted in the reclassification of $16.9 million of losses from accumulated other comprehensive income into interest expense. Subsequent to the discontinuation of hedge accounting, the Company recognized additional unrealized losses of $13.7 million pertaining to these interest rate swaps during the second quarter that are also reported in interest expense.
(2)
The third quarter of 2016 includes a $3.3 million impairment charge due to the decision to abandon certain residential construction in progress assets that were not completed by SunEdison as a result of the SunEdison Bankruptcy. This charge is reflected within impairment of renewable energy facilities in the consolidated statement of operations. The third quarter of 2016 also includes $3.2 million of special interest for the Senior Notes due 2023, Senior Notes due 2025 and Revolver per the terms of the fourth supplemental indenture to the 2023 Indenture, third supplemental indenture to the 2025 Indenture and eighth amendment to the Revolver credit and guaranty agreement, respectively, and $5.2 million of unrealized losses pertaining to interest rate swaps for the U.K. Portfolio.
(3)
The fourth quarter of 2016 includes a $55.9 million goodwill impairment charge, a $15.7 million impairment charge within impairment of renewable energy facilities related to substantially all of the Company's portfolio of residential rooftop solar assets that were held for sale as of December 31, 2016, a $2.5 million loss on related party receivables and a $1.1 million loss on extinguishment of debt driven by a reduction of borrowing capacity for the Revolver and corresponding write-off of a portion of the unamortized deferred financing


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