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SEC Filings
10-K
TERRAFORM POWER, INC. filed this Form 10-K on 03/15/2019
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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)
 
2019
 
2020
 
2021
 
2022
 
2023
 
Thereafter
 
Total
Long-term debt (principal)1
 
$
270,889

 
$
243,511

 
$
252,001

 
$
746,872

 
$
1,218,092

 
$
2,994,675

 
$
5,726,040

Long-term debt (interest)2
 
277,623

 
267,153

 
252,926

 
240,272

 
182,363

 
796,346

 
2,016,683

Financing lease obligations
 
5,591

 
5,470

 
5,664

 
7,230

 
3,010

 
50,101

 
77,066

Operating leases
 
20,002

 
20,005

 
20,241

 
20,410

 
20,577

 
331,425

 
432,660

Purchase obligations3
 
32,457

 
31,533

 
16,696

 
12,135

 
10,426

 
64,292

 
167,539

Brookfield MSA4
 
12,240

 
15,300

 
15,606

 
15,918

 
16,236

 
N/A4

 
75,300

Tracking accounts
 
597

 
1,018

 
1,094

 
1,174

 
1,261

 
38,667

 
43,811

Other
 
2,431

 
2,431

 
1,545

 
1,545

 

 

 
7,952

Total contractual obligations
 
$
621,830

 
$
586,421

 
$
565,773

 
$
1,045,556

 
$
1,451,965

 
$
4,275,506

 
$
8,547,051

———
(1)
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).
(2)
Includes fixed rate interest and variable rate interest using December 31, 2018 rates.
(3)
Consists of contractual payments due for third party operation and maintenance services and asset management services.
(4)
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.



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