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SEC Filings
10-K
TERRAFORM POWER, INC. filed this Form 10-K on 03/15/2019
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first, to the Company in an amount equal to our outlays and expenses for such quarter;
second, to holders of Class A units, until an amount has been distributed to such holders of Class A units that would result, after taking account of all taxes payable by us in respect of the taxable income attributable to such distribution, in a distribution to holders of shares of Class A common stock of $0.93 per share (subject to adjustment for distributions, combinations or subdivisions of shares of Class A common stock) if such amount were distributed to all holders of shares of Class A common stock;
third, 15% to the holders of the IDRs and 85% to the holders of Class A units until a further amount has been distributed to holders of Class A units in such quarter that would result, after taking account of all taxes payable by us in respect of the taxable income attributable to such distribution, in a distribution to holders of shares of Class A common stock of an additional $0.12 per share (subject to adjustment for distributions, combinations or subdivisions of shares of Class A common stock) if such amount were distributed to all holders of shares of Class A common stock; and
thereafter, 75% to holders of Class A units and 25% to holders of the IDRs.

We did not make any IDR payments during the years ended December 31, 2018 and 2017.

Cash Flow Discussion
    
We use traditional measures of cash flow, including net cash flows from operating activities, investing activities and financing activities to evaluate our periodic cash flow results.

Year Ended December 31, 2018 Compared to Year Ended December 31, 2017

The following table reflects the changes in cash flows for the comparative periods:
(In thousands)
 
Year Ended December 31,
 
 
 
2018
 
2017
 
Change
Net cash provided by operating activities
 
$
253,201

 
$
67,197

 
$
186,004

Net cash (used in) provided by investing activities
 
(858,998
)
 
206,272

 
(1,065,270
)
Net cash provided by (used in) financing activities
 
782,501

 
(789,513
)
 
1,572,014


Net Cash Provided By Operating Activities
    
Net cash provided by operating activities for the year ended December 31, 2018 was $253.2 million as compared to $67.2 million for the same period in the prior year. The increase in operating cash flow of $186.0 million was primarily driven by a $169.9 million increase in operating revenues for the period (excluding losses on commodity derivative contracts, recognition of deferred revenue and amortization of favorable and unfavorable rate revenue contracts, net) primarily driven by the acquisition of Saeta in June of 2018. In addition, the timing of sales and collections resulted in a $15.5 million increase in cash receipts related to accounts receivable. Total operating costs (excluding non-cash items) decreased by $28.0 million for the year ended December 31, 2018 compared to the prior year primarily due to the payment of $27.0 million of success-based advisory fees upon the consummation of the Merger in the fourth quarter of 2017. The timing of payments related to accounts payable, accrued expenses and other current liabilities resulted in a $23.8 million increase in operating cash flow primarily as a result of the increase in accrued interest on our Senior Notes due 2023 and Senior Notes due 2028. The interest payments on these Senior Notes are due in January of 2019 as a result of the refinancing that occurred in the fourth quarter of 2017.

Net Cash (Used In) Provided by Investing Activities

Net cash used in investing activities for the year ended December 31, 2018 was $859.0 million, which was primarily due to: (i) $886.1 million of payments to acquire the shares of Saeta, net of cash and restricted cash acquired; (ii) $8.3 million payments to acquire solar facilities from third parties in the United States and Spain, net of cash and restricted cash acquired; (iii) the use of $22.4 million for capital expenditures; (iv) $47.6 million of proceeds from the settlement of foreign currency contracts used to hedge the exposure associated with foreign subsidiaries; (v) the receipt of $8.7 million of proceeds received from utilities rebates for certain costs previously incurred for capital expenditures; and (vi) the receipt of $1.5 million from insurance for reimbursement for the cost of property damages.



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