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

assets acquired that could not be individually identified and separately recognized. The goodwill balance is not deductible for income tax purposes.

The following table presents the activity of the goodwill balance for the years ended December 31, 2018, 2017 and 2016:
(In thousands)
 
Goodwill
Balance as of December 31, 2015
 
$
55,874

Impairment1
 
(55,874
)
Balance as of December 31, 2016 and 2017
 

Goodwill resulting from the acquisition of Saeta2
 
115,381

Adjustments during the period2
 
7,726

Foreign exchange differences
 
(2,554
)
Balance as of December 31, 2018
 
$
120,553

———
(1)
The goodwill balance as of December 31, 2015 was attributable to an acquisition of solar distributed generation facilities during the year 2014 from Capital Dynamics, which provided the Company with a scalable distributed generation platform. The goodwill existed within the Company's distributed generation reporting unit within the solar reportable segment and was not deductible for federal income tax purposes. The Company performed its annual impairment test of the carrying value of its goodwill as of December 1, 2016 and concluded that the entire balance of was fully impaired. The impairment was driven by a combination of factors, including lack of near-term growth in the operating segment. The impairment test determined there was no implied value of goodwill, which resulted in an impairment charge of $55.9 million as reflected in goodwill impairment within the consolidated statements of operations for the year ended December 31, 2016.
(2)
See Note 4. Acquisitions and Dispositions for further details.

8. INTANGIBLE ASSETS, NET

The following table presents the gross carrying amount, accumulated amortization and net book value of intangibles as of December 31, 2018:
(In thousands, except weighted average amortization period)
 
Weighted Average Amortization Period
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Book Value
Concession and licensing contracts1
 
15 years
 
$
1,015,824

 
$
(36,374
)
 
$
979,450

Favorable rate revenue contracts
 
14 years
 
738,488

 
(166,507
)
 
571,981

In-place value of market rate revenue contracts
 
18 years
 
532,844

 
(100,543
)
 
432,301

Favorable rate land leases
 
16 years
 
15,800

 
(3,128
)
 
12,672

Total intangible assets, net
 
 
 
$
2,302,956

 
$
(306,552
)
 
$
1,996,404

 
 
 
 
 
 
 
 
 
Unfavorable rate revenue contracts
 
6 years
 
$
58,508

 
$
(41,605
)
 
$
16,903

Unfavorable rate O&M contracts
 
1 year
 
5,000

 
(3,802
)
 
1,198

Unfavorable rate land lease
 
14 years
 
1,000

 
(218
)
 
782

Total intangible assets, net2
 
 
 
$
64,508

 
$
(45,625
)
 
$
18,883

    


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