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SEC Filings
10-K
TERRAFORM POWER, INC. filed this Form 10-K on 03/15/2019
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General and administrative expenses - affiliate decreased by $1.3 million during the year ended December 31, 2017, compared to the same period in 2016, due to a $7.5 million decrease in the management and administrative services provided by SunEdison subsequent to the SunEdison Bankruptcy, partially offset by a $3.4 million base management fee charge recorded in the fourth quarter pursuant to the Brookfield MSA and a $2.8 million increase in stock-based compensation expense that was allocated to us for unvested equity awards held by our employees in the stock of SunEdison, Inc. This increase was largely driven by the recognition of all previously unrecognized compensation cost pertaining to these awards as a result of the bankruptcy court's approval of SunEdison's plan of reorganization in July of 2017, which provided that all unvested equity awards in the stock of SunEdison, Inc. would be canceled.

Goodwill Impairment

We performed our annual impairment test of the carrying value of our goodwill as of December 1, 2016 and concluded that the goodwill balance of $55.9 million 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, recognized as impairment of goodwill within the consolidated statements of operations for the year ended December 31, 2016. As a result of this charge, we did not have any goodwill as of December 31, 2017 or 2016.

Impairment of Renewable Energy Facilities
    
During 2016, we began exploring a sale of substantially all of our portfolio of residential rooftop solar assets located in the United States through a strategic sales process, and these assets were determined to meet the criteria to be classified as held for sale during the fourth quarter of 2016. Our analysis indicated that the carrying value of the assets exceeded the fair value less costs to sell, and thus an impairment charge of $15.7 million was recognized within impairment of renewable energy facilities in the consolidated statements of operations for the year ended December 31, 2016. We also recorded a $3.3 million charge within impairment of renewable energy facilities for the year ended December 31, 2016 due to the decision to abandon certain residential construction in progress assets that were not completed by SunEdison as a result of the SunEdison Bankruptcy.

We sold our remaining 0.3 MW of residential assets during the third quarter of 2017. Prior to the sale, we determined that certain impairment indicators were present and as a result recognized an impairment charge of $1.4 million within impairment of renewable energy facilities in our consolidated statements of operations for the year ended December 31, 2017.

Depreciation, Accretion and Amortization Expense

Depreciation, accretion and amortization expense increased by $3.4 million during the year ended December 31, 2017, compared to the same period in 2016. This increase was primarily the result of a change in the estimated useful lives of the major components of our wind power plants, which was effective October 1, 2016, and the impact of capital additions placed in service during 2016. These increases were partially offset by a reduction in depreciation, accretion and amortization expense related to the classification of our U.K. Portfolio as held for sale as of the end of the first quarter of 2016.

Interest Expense, Net

Interest expense, net for the years ended December 31, 2017 and 2016 were as follows:    
 
 
Year Ended December 31,
 
 
(In thousands)
 
2017
 
2016
 
Change
Corporate-level
 
$
114,166

 
$
127,469

 
$
(13,303
)
Non-recourse:
 
 
 
 
 
 
Solar
 
70,439

 
97,123

 
(26,684
)
Wind
 
77,398

 
85,744

 
(8,346
)
Total interest expense, net
 
$
262,003

 
$
310,336

 
$
(48,333
)

Interest expense, net decreased by $48.3 million during the year ended December 31, 2017, compared to the same period in 2016. Interest expense under corporate-level long-term debt agreements decreased $13.3 million primarily due to lower outstanding balances under the Revolver. Interest expense under our non-recourse long-term debt agreements decreased by $26.7 million and $8.3 million for our Solar and Wind segments, respectively. The decrease at our Solar segment is


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