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10-K
TERRAFORM GLOBAL, INC. filed this Form 10-K on 12/21/2016
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expected timing of the reversals of existing temporary differences and the expected impact of tax planning strategies. In conjunction with the IPO, the Company recognized net deferred tax assets of $5.5 million in jurisdictions where it is more likely than not these tax benefits will be realized. The Company’s total deferred tax liabilities, net of deferred tax assets, as of December 31, 2015 and December 31, 2014, were $28.9 million and $2.7 million, respectively.
As of December 31, 2015, the Company's most significant asset for which deferred taxes are being provided is its basis in the Global LLC partnership interest. The underlying solar generation facilities are controlled under Global LLC, and thus deferred tax assets and liabilities at the Company's project portfolio companies are captured within the deferred tax asset for investment in partnership. As of December 31, 2015, the Company has gross net operating loss carryforwards of $62.6 million in the United States and $298.2 million in multiple foreign jurisdictions that will expire beginning in 2036 and 2016, respectively. The Company believes that it is more likely than not that it will not generate sufficient taxable income to realize the deferred tax assets associated with most of its net operating losses and tax credit carryforwards and has recorded a valuation allowance against most of its net deferred tax assets.
As of December 31, 2015, the Company has identified no uncertain tax positions under ASC 740-10.
At December 31, 2015, United States has net operating loss carryforwards for income tax purposes of $62.6 million, which are available to offset future taxable income, if any, over a twenty year period. Malaysia has net operating loss carryforwards for income tax purposes of $23.0 million, which are available to offset future taxable income, if any, over an indefinite period. South Africa has net operating loss carryforwards for income tax purposes of $212.7 million, which are available to offset future taxable income, if any, over an indefinite period. India has net operating loss carryforwards for income tax purposes of $27.8 million, which are available to offset future taxable income, if any, over an indefinite period to the extent of unabsorbed tax depreciation. Any other carryforwards in India are available for an eight year period from the period in which they were generated. China has net operating loss carryforwards for income tax purposes of $32.5 million, which are available to offset future taxable income, if any, over a five year period. Singapore has net operating loss carryforwards for income tax purposes of $2.2 million, which are available to offset future taxable income, if any, over an indefinite period.    
Our subsidiaries in India had pretax income of $0.9 million in 2015 and pretax income of $0.7 million in 2014, have a 100% rate reduction tax holiday, which expires 15 years from the date of commissioning of the solar power plant and is available for a 10-year period starting from the date on which the project entity starts claiming the holiday. For its project entities, the tax holiday detriment/(benefit) totaled $0.8 million, zero, and $(1.1) million in 2015, 2014 and 2013, respectively. The tax holiday periods are effective through 2025 or 2029, based on the applicable project's commission date.
Our subsidiaries in Malaysia had pretax loss of $1.3 million in 2015 and pretax income of $0.2 million in 2014, received tax incentives for all three power plants allowing for accelerated tax depreciation on qualified solar assets.
Our subsidiaries in Thailand had pretax income of $0.9 million in 2015 and pretax loss of $0.4 million in 2014, have a 100% rate reduction tax holiday for the first eight years, and a 50% rate reduction for the next five years. For its project entities, the tax holiday detriment/(benefit) totaled $(0.4) million, $0.1 million, and $0.1 million in 2015, 2014 and 2013, respectively. The tax holiday is effective through 2026.
Our subsidiaries in South Africa had pretax income of $12.2 million in 2015 and pretax income of $0.1 million in 2014, received tax incentives allowing for accelerated tax depreciation on qualified solar assets.
Our subsidiaries in China had a pretax income of $1.4 million in 2015 and pretax loss of $3.1 million in 2014, and have a 100% rate reduction tax holiday for the first three years, and a 50% rate reduction for the next three years. For its project entities, the tax holiday detriment/(benefit) totaled $(0.1) million, $(0.3) million, and $0.5 million in 2015, 2014 and 2013, respectively. The tax holiday is effective through 2018.
Our subsidiaries in Brazil had a pretax income of $6.0 million in 2015. Brazil has elected the presumed profit method which taxes gross receipts rather than adjusted taxable income.
11. DERIVATIVES
As part of the Company’s risk management strategy, the Company has entered into derivative instruments which include interest rate swaps, foreign currency contracts and cross currency swaps to mitigate interest rate and foreign currency exposure. If the Company elects to do so and if the instrument meets the criteria specified in ASC 815, Derivatives and Hedging, the Company designates its derivative instruments as cash flow hedges. The Company enters into interest rate swap agreements in order to hedge the variability of expected future cash interest payments. Cross currency swaps are used to reduce risks arising from the change in fair value of certain foreign currency denominated assets and liabilities in order to minimize the


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