6. ASSET RETIREMENT OBLIGATIONS AND OTHER LIABILITIES
Activity in asset retirement obligations for the years ended December 31, 2015 and 2014 is as follows:
Year Ended December 31,
Balance at the beginning of the year
Assumed through acquisition
Foreign currency translation adjustment
Balance at the end of the year
The Company does not have any assets that are legally restricted for the purpose of settling our asset retirement obligations as of December 31, 2015 and 2014. Additionally, there were no revisions of the estimated cash flows for our asset retirement obligations for the years ended December 31, 2015, 2014 and 2013.
As of December 31, 2015, $19.5 million of the $123.3 million balance of accrued expenses and other current liabilities on the Company’s consolidated balance sheet is comprised of an EPC payable to a contractor due in November 2016. As of December 31, 2014, this payable was included in other long-term liabilities on the Company’s consolidated balance sheet. Subsequent to the year ended December 31, 2015, the Company paid $19.5 million encompassing the full value of the contractor payable that existed as of December 31, 2015.
7. INTANGIBLE ASSETS
The following table presents the gross carrying amount and accumulated amortization of intangible assets as of December 31, 2015:
(In thousands, except weighted average amortization period)
Weighted Average Amortization Period
Gross Carrying Amount
Accumulated Currency Translation Adjustment
Net Book Value
In-place value of market rate revenue contracts
As of December 31, 2015, the Company had revenue contracts representing long-term PPAs that were obtained through acquisitions (see Note 3 - Acquisitions). There were no intangible assets as of December 31, 2014. Revenue contracts are amortized on a straight-line basis over the remaining lives of the agreements, which range from 18 to 22 years as of December 31, 2015. Amortization expense related to revenue contracts is recognized in the consolidated statements of operations as either a reduction or increase of revenue when the contract rate is above or below market rates (favorable or unfavorable) or within depreciation, accretion and amortization expense when the contract rate is equal to market rates (in-place). As such, of the $1.6 million amortization expense recorded as of the December 31, 2015, $0.5 million was recorded as a reduction of revenue while the remaining $1.1 million of amortization expense was recorded within the depreciation, accretion, and amortization line item in the consolidated statement of operations.
Over the next five fiscal years, we expect to recognize $4.4 million of annual amortization expense each year on our revenue contracts intangible asset.