Print Page  Close Window

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

Loss on Investments and Receivables - Affiliate

We incurred a net loss on investments and receivables - affiliate of $1.8 million during the year ended December 31, 2017, due to the write-off of receivables from SunEdison upon the consummation of the Merger and the effectiveness of the settlement agreement with SunEdison (the “Settlement Agreement”) on October 16, 2017. No other losses were recorded during the year ended December 31, 2018.

Other (Income) Expenses, net

We recognized $4.1 million of other income, net for the year ended December 31, 2018 compared to $5.0 million for the year ended December 31, 2017. The balance is primarily comprised on reimbursements and recoveries received for damages and other losses.

Income Tax Expense (Benefit)

Net income tax benefit from continuing operations for the year ended December 31, 2018 was $12.3 million, compared to $19.6 million for the year ended December 31, 2017. A valuation allowance is recorded against certain deferred tax assets in the U.S., Chile and certain other jurisdictions, primarily because of the history of losses in those jurisdictions. The tax benefit recognized in 2018 was comprised of a $20.1 million benefit due to the reorganization of certain entities in the United States which resulted in a decrease in the valuation allowance for deferred tax assets in the U.S. and the recognition of deferred tax expense on the Company’s profits in certain jurisdictions, primarily in Spain. For the years ended December 31, 2018 and 2017, the overall effective tax rates of 7.4% and 9.0% were different than the statutory rates in the United States of 21% and 35%, respectively, primarily due to the recording of valuation allowances on certain income tax benefits, allocated to non-controlling interests, and the effect of foreign and state taxes.

Net Loss Attributable to Non-Controlling Interests

Net loss attributable to non-controlling interests, including redeemable non-controlling interests, was $165.7 million for the year ended December 31, 2018, compared to $76.1 million in the prior year. The increase in the loss is primarily due to the reduction in the tax rate used in the Hypothetical Liquidation at Book Value (“HLBV”) methodology applied by us and described in Note 2. Summary of Significant Accounting Policies. In the calculation of the carrying values through HLBV, we allocated significantly lower amounts to certain non-controlling interests (i.e., tax equity investors) in order to achieve their contracted after-tax rate of return as a result of the reduction of the federal income tax rate from 35% to 21% as specified in the Tax Act. See Note 17. Non-Controlling Interests for more details.