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

Over the next five years, the Company expects to recognize annual amortization on its intangibles as follows:
(In thousands)
 
2019
 
2020
 
2021
 
2022
 
2023
Concession and licensing contracts
 
$
71,089

 
$
71,089

 
$
71,089

 
$
71,089

 
$
71,089

Favorable rate revenue contracts
 
47,384

 
43,984

 
42,251

 
41,021

 
40,263

Unfavorable rate revenue contracts
 
(7,678
)
 
(2,620
)
 
(1,379
)
 
(1,275
)
 
(948
)
Total net amortization expense recorded to operating revenues, net
 
$
110,795

 
$
112,453

 
$
111,961

 
$
110,835

 
$
110,404

 
 
 
 
 
 
 
 
 
 
 
In-place value of market rate revenue contracts
 
$
26,019

 
$
26,019

 
$
26,019

 
$
26,014

 
$
26,009

Total amortization expense recorded to depreciation, accretion and amortization expense
 
$
26,019

 
$
26,019

 
$
26,019

 
$
26,014

 
$
26,009

 
 
 
 
 
 
 
 
 
 
 
Favorable rate land leases
 
$
799

 
$
799

 
$
799

 
$
799

 
$
799

Unfavorable rate O&M contracts
 
(1,198
)
 

 

 

 

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

 
$
743

 
$
743

 
$
743


9. 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. Acquisitions and Dispositions). No other VIEs were deconsolidated during the years ended December 31, 2018 and 2017.

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)
 
2018
 
2017
Current assets
 
$
134,057

 
$
142,403

Non-current assets
 
3,909,549

 
4,155,558

Total assets
 
$
4,043,606

 
$
4,297,961

Current liabilities
 
$
120,790

 
$
119,021

Non-current liabilities
 
1,014,789

 
975,839

Total liabilities
 
$
1,135,579

 
$
1,094,860


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



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