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SEC Filings
10-K
TERRAFORM POWER, INC. filed this Form 10-K on 03/15/2019
Entire Document
 

The following table presents the gross carrying amount, accumulated amortization and net book value of intangibles as of December 31, 2017:
(In thousands, except weighted average amortization period)
 
Weighted Average Amortization Period
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Book Value
Favorable rate revenue contracts
 
15 years
 
$
718,639

 
$
(102,543
)
 
$
616,096

In-place value of market rate revenue contracts
 
19 years
 
521,323

 
(73,104
)
 
448,219

Favorable rate land leases
 
17 years
 
15,800

 
(2,329
)
 
13,471

Total intangible assets, net
 
 
 
$
1,255,762

 
$
(177,976
)
 
$
1,077,786

 
 
 
 
 
 
 
 
 
Unfavorable rate revenue contracts
 
7 years
 
$
35,086

 
$
(16,030
)
 
$
19,056

Unfavorable rate O&M contracts
 
2 years
 
5,000

 
(2,552
)
 
2,448

Unfavorable rate land lease
 
15 years
 
1,000

 
(162
)
 
838

Total intangible liabilities, net2
 
 
 
$
41,086

 
$
(18,744
)
 
$
22,342

———
(1)
See Note 4. Acquisitions and Dispositions for a discussion of the intangible assets related to Saeta.
(2)
The Company’s intangible liabilities are classified within other long-term liabilities in the consolidated balance sheets.

Amortization expense related to the concession and licensing contracts acquired from Saeta is reflected in the consolidated statements of operations within depreciation, accretion and amortization expense. During the year ended December 31, 2018 amortization expense related to concession and licensing contracts was $36.4 million.

Amortization expense related to favorable rate revenue contracts is reflected in the consolidated statements of operations as a reduction of operating revenues, net. Amortization related to unfavorable rate revenue contracts is reflected in the consolidated statements of operations as an increase to operating revenues, net. During the years ended December 31, 2018, 2017 and 2016, net amortization expense related to favorable and unfavorable rate revenue contracts resulted in a reduction of operating revenues, net of $38.8 million, $39.6 million and $40.2 million, respectively.

Amortization expense related to the in-place value of market rate revenue contracts is reflected in the consolidated statements of operations within depreciation, accretion and amortization expense. During the years ended December 31, 2018, 2017 and 2016, amortization expense related to the in-place value of market rate revenue contracts was $28.2 million, $25.5 million and $25.2 million, respectively.

Amortization expense related to favorable rate land leases is reflected in the consolidated statements of operations within cost of operations. Amortization related to the unfavorable rate land lease and unfavorable rate O&M contracts is reflected in the consolidated statements of operations as a reduction of cost of operations. During the years ended December 31, 2018, 2017 and 2016, net amortization related to favorable and unfavorable rate land leases and unfavorable rate O&M contracts resulted in a $0.5 million, $0.5 million and $0.6 million reduction of cost of operations, respectively.



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