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10-K
TERRAFORM GLOBAL, INC. filed this Form 10-K on 06/15/2017
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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, 2016, the Company has identified no uncertain tax positions under ASC 740-10.
At December 31, 2016, the Company's subsidiaries in the United States have net operating loss carryforwards for income tax purposes of $150.5 million, which are available to offset future taxable income, if any, over a twenty-year period. In the event the Company has experienced an ownership change within the meaning of Section 382 of the Internal Revenue Code (“IRC”), the Company’s ability to utilize any net operating losses may be limited. The Company's subsidiaries in Malaysia have net operating loss carryforwards for income tax purposes of $25.1 million, which are available to offset future taxable income, if any, over an indefinite period. The Company's subsidiaries in South Africa have net operating loss carryforwards for income tax purposes of $232.3 million, which are available to offset future taxable income, if any, over an indefinite period. The Company's subsidiaries in India have net operating loss carryforwards for income tax purposes of $97.6 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. The Company's subsidiaries in Thailand have net operating loss carryforwards for income tax purposes of $0.2 million which are available to offset future taxable income, if any, over a five-year period. The Company's subsidiaries in China have net operating loss carryforwards for income tax purposes of $8.9 million, which are available to offset future taxable income, if any, over a five-year period. The Company's subsidiary in Uruguay has net operating loss carryforwards for income tax purposes of $0.1 million, which are available to offset future taxable income, if any, over a five-year period. The Company's subsidiaries in Singapore have net operating loss carryforwards for income tax purposes of $3.2 million, which are available to offset future taxable income, if any, over an indefinite period. The Company's subsidiaries in Hong Kong have net operating loss carryforwards for income tax purposes of $0.8 million, which are available to offset future taxable income, if any, over an indefinite period.
The Company's subsidiaries in India had pretax income of $1.5 million in 2016 and pretax income of $0.9 million in 2015, 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 totaled $5.0 million, $0.8 million and zero in 2016, 2015 and 2014, respectively. The tax holiday periods are effective through 2025 or 2029, based on the applicable power plant's commission date.
The Company's subsidiaries in Malaysia had pretax loss of $0.6 million in 2016 and pretax income of $1.3 million in 2015, received tax incentives for all three power plants allowing for accelerated tax depreciation on qualified solar assets.
The Company's subsidiaries in Thailand had pretax income of $13.2 million in 2016 and pretax loss of $3.4 million in 2015, 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 companies, the tax holiday detriment/(benefit) totaled $(1.2) million, $(0.4) million and $0.1 million in 2016, 2015 and 2014, respectively. The tax holiday is effective through 2026 or 2028, based on the applicable power plant's commercial operation date.
The Company's subsidiaries in South Africa had pretax income of $4.1 million in 2016 and pretax income of $12.2 million in 2015, and received tax incentives allowing for accelerated tax depreciation on qualified solar assets.
The Company's subsidiaries in China had a pretax income of $3.9 million in 2016 and pretax loss of $1.4 million in 2015, 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 $7.8 million, $(0.1) million and $(0.3) million in 2016, 2015 and 2014, respectively. The tax holiday is effective through 2018.
The Company's subsidiaries in Brazil had a pretax income of $31.9 million in 2016 and pretax income of $6.0 million in 2015. Brazil has elected the presumed profit method which taxes gross receipts rather than adjusted taxable income. Interest income continues to be taxed at the statutory tax rate of 34%.
The Company's subsidiary in Uruguay, which had a pretax income of $1.3 million in 2016, has a 15% rate reduction tax holiday for a thirteen-year period. For its project entities, the tax holiday detriment/(benefit) totaled $(0.2) million in 2016.
12. 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


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