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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 activity of the redeemable non-controlling interests balance for the years ended December 31, 2018, 2017 and 2016:
(In thousands)
 
Redeemable Non-controlling Interests
Balance as of December 31, 2015
 
$
173,202

Sale of membership interests and contributions
 
1,011

Distributions
 
(10,764
)
Repurchase of redeemable non-controlling interest in renewable energy facility
 
(7,918
)
Accretion
 
3,962

Net income
 
6,482

Balance as of December 31, 2016
 
$
165,975

Distributions
 
(7,818
)
Accretion
 
6,729

Net income
 
1,596

Reclassification of Invenergy Wind Interest to non-controlling interests1
 
(131,822
)
Balance as of December 31, 2017
 
$
34,660

Cumulative-effect adjustment2
 
(4,485
)
Distributions
 
(2,458
)
Consolidation of redeemable non-controlling interests in acquired renewable energy facilities
 
55,117

Repurchases of redeemable non-controlling interests, net
 
(58,014
)
Net income
 
9,209

Exchange differences
 
(534
)
Balance as of December 31, 2018
 
$
33,495

———
(1)
The Company recorded a $6.7 million and $4.0 million adjustment during the years ended December 31, 2017 and 2016, respectively, to the value of the Invenergy Wind redeemable non-controlling interest, reflecting the excess of the future redemption value over its carrying amount based on SEC guidance in ASC 480-10-S99-3A. Historically, the Company was accreting the redemption value of the Invenergy Wind redeemable non-controlling interest over the redemption period using the straight-line method and accretion adjustments were recorded against additional paid-in capital. As part of the Settlement Agreement, the Option Agreement between Terra LLC and Sun Edison LLC with respect to Invenergy Wind's remaining 9.9% interest in certain subsidiaries of the Company was rejected upon the consummation of the Merger with affiliates of Brookfield on October 16, 2017. As a result, the Company is no longer obligated to perform on its Option Agreement, and as of October 16, 2017, the Invenergy Wind non-controlling interest amount of $131.8 million was no longer considered redeemable and was reclassified to non-controlling interests as of such date. The redemption adjustments recorded in additional paid-in capital will remain in additional paid-in capital.
(2)
See discussion in Note 2. Summary of Significant Accounting Policies regarding the Company’s adoption of ASU No. 2014-09 and ASU No. 2016-08 as of January 1, 2018.


18. COMMITMENTS AND CONTINGENCIES

Letters of Credit

The Company's customers, vendors and regulatory agencies often require the Company to post letters of credit in order to guarantee performance under relevant contracts and agreements. The Company is also required to post letters of credit to secure obligations under various swap agreements and leases and may, from time to time, decide to post letters of credit in lieu of cash deposits in reserve accounts under certain financing arrangements. The amount that can be drawn under some of these letters of credit may be increased from time to time subject to the satisfaction of certain conditions. As of December 31, 2018, the Company had outstanding letters of credit under the Revolver of $99.5 million and outstanding project-level letters of credit of $197.7 million compared to $102.6 million and $147.0 million as of December 31, 2017, respectively.



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