Total general and administrative increased $6.4 million during the year ended December 31, 2014, compared to the same period in 2013, due to:
Increase in cost of corporate allocation relating to power plants approaching commercial operation (1)
Increase in cost of corporate allocation relating to power plants achieving commercial operation
Other general and administrative costs
(1) Includes power plants reaching commercial operation in Q1 2015
Depreciation, Accretion and Amortization
Depreciation, accretion and amortization expense increased by $2.4 million during the year ended December 31, 2014, to $7.2 million for the year ended December 31, 2014 due to projects achieving commercial operation and additional power plants acquired compared to prior year.
Interest Expense, net
Interest expense, net was $24.3 million and $11.8 million for the year ended December 31, 2014 and 2013, respectively, an increase of $12.5 million. The increase was primarily due to increases in term debt as projects were constructed.
Gain and Loss on Foreign Currency Exchange
Gain on foreign currency exchange was $4.0 million for the year ended December 31, 2014 versus a loss of $2.3 million for the year ended December 31, 2013, a change of $6.3 million. The gain on foreign currency exchange for the year ended December 31, 2014 was largely the result of $4.9 million gain on the South African Rand offset by a $0.5 million loss of the Indian rupee and $0.3 million of Malaysian ringgit. The loss on foreign currency exchange for the year ended December 31, 2013 was largely the result of $2.5 million loss of the India rupee and a $0.2 million loss on the Malaysian ringgit.
Other Income, net
Other income, net was not material for the year ended December 31, 2014 or 2013.
Income Tax Expense
The income tax expense was $1.7 million for the year ended December 31, 2014 and a benefit of $1.7 million for the year ended December 31, 2013. For the year ended December 31, 2014, the overall effective tax rate was different than the statutory rate of 35.0% primarily due to the recording of a valuation allowance on certain tax benefits attributed to the Company; the benefit in 2013 differed from the statutory rate of 35.0% primarily due to lower statutory income tax rates in our foreign jurisdictions. Income tax expense results from profitable operations in certain foreign jurisdictions which were not offset by losses in other jurisdictions due to tax regulations.
Liquidity and Capital Resources
The Company’s principal liquidity requirements are to finance current operations, service debt and, as if and when declared by the Company, to fund cash dividends to investors. We will also use capital in the future to finance expansion capital expenditures and acquisitions. As a normal part of the Company’s business, we have in the past and may from time to time seek to repurchase our outstanding securities through tender offers, open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual and legal restrictions and other factors. Changes in operating plans, lower than anticipated electricity sales, increased expenses, acquisitions or other events may cause management to seek additional debt or equity financing in future periods. We are a newly independent company, and there can be no guarantee that financing will be available on acceptable terms or at all. Debt financing, if available, could impose additional cash payment obligations and additional covenants and operating restrictions. Equity financing, if any, could result in the dilution of existing stockholders and make it more difficult to maintain our dividend policy.
Total liquidity as of October 31, 2016 was approximately $0.7 billion of unrestricted cash and cash equivalents. The unrestricted cash and cash equivalents balance as of October 31, 2016 is comprised of $567.9 million and $110.0 million