|TERRAFORM POWER, INC. filed this Form 10-K on 03/15/2019|
Net Cash Provided by Financing Activities
Net cash used in financing activities for the year ended December 31, 2018 was $782.5 million, which was primarily driven by $650.0 million proceeds received from the private placement to affiliates of Brookfield, net draws of $317.0 million on our Revolver that were partially offset by $135.2 million of dividend payments to our Class A common stockholders and net repayments of $22.8 million of non-recourse long-term debt.
Contractual Obligations and Commercial Commitments
We have a variety of contractual obligations and other commercial commitments that represent prospective cash requirements. The following table summarizes our outstanding contractual obligations and commercial commitments as of December 31, 2018:
Payment due by Period
Contractual Cash Obligations (in thousands)
Long-term debt (principal)1
Long-term debt (interest)2
Financing lease obligations
Total contractual obligations
Represents the contractual principal payment due dates for our long-term debt and does not reflect the reclassification of $19.9 million of long-term debt to current as a result of debt defaults under certain of our non-recourse financing arrangements (see Note 10. Long-term Debt to our consolidated financial statements for further discussion).
Includes fixed rate interest and variable rate interest using December 31, 2018 rates.
Consists of contractual payments due for third party operation and maintenance services and asset management services.
Represents the fixed component of the base management fee owed pursuant to the master services agreement with Brookfield and certain of its affiliates for the management and administrative services to be provided by Brookfield and certain of its affiliates to us. We will be required to pay a base management fee with a fixed component of $3.75 million (adjusted for inflation) per quarter for each quarter in 2023 and beyond that Brookfield and certain of its affiliates provide management and administrative services to us. See Note 19. Related Parties to our consolidated financial statements for further discussion.
Off-Balance Sheet Arrangements
We enter into guarantee arrangements in the normal course of business to facilitate commercial transactions with third parties. See Note 18. Commitments and Contingencies to our consolidated financial statements included in this Annual Report on Form 10-K for additional discussion.
Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions in certain circumstances that affect amounts reported in our consolidated financial statements and related footnotes. In preparing these consolidated financial statements, we have made our best estimates of certain amounts included in the consolidated financial statements. Application of accounting policies and estimates, however, involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ from these estimates. In arriving at our critical accounting estimates, factors we consider include how accurate the estimate or assumptions have been in the past, how much the estimate or assumptions have changed and how reasonably likely such change may have a material impact. Our critical accounting policies are discussed below.