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SEC Filings

10-K
TERRAFORM GLOBAL, INC. filed this Form 10-K on 06/15/2017
Entire Document
 

Recurring Fair Value Measurements
The following table summarizes the financial instruments measured at fair value on a recurring basis classified in the fair value hierarchy (Level 1, 2 or 3) based on the inputs used for valuation in the accompanying consolidated balance sheets:
 
As of December 31, 2016
 
As of December 31, 2015
Assets (liabilities) in thousands
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Interest rate swaps
$

 
$
(2,305
)
 
$

 
$
(2,305
)
 
$

 
$
11,404

 
$

 
$
11,404

Foreign currency forward swaps
(13,299
)
 

 

 
(13,299
)
 
21,383

 

 

 
21,383

Cross currency swaps

 
41,752

 

 
41,752

 

 
64,083

 

 
64,083

Total
$
(13,299
)
 
$
39,447

 
$

 
$
26,148

 
$
21,383

 
$
75,487

 
$

 
$
96,870

The Company uses a discounted valuation technique to fair value its derivative assets and liabilities. The primary inputs into the valuation of interest rate swaps, cross currency swaps and foreign currency contracts are forward interest rates, foreign currency exchange rates, and to a lesser degree, credit spreads. The Company’s interest rate swaps and cross currency swaps are considered Level 2, since all significant inputs are corroborated by market observable data. There were no transfers into or out of Level 1, Level 2 and Level 3 during the years ended December 31, 2016 or 2015.
Fair Value of Long-Term Debt
The following table presents the carrying amount and estimated fair value of the Company's outstanding short-term and long-term debt obligations as of December 31, 2016 and 2015, respectively:
 
 
As of December 31, 2016
 
As of December 31, 2015
(In thousands)
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Long-term debt, including current portion
 
$
1,104,420

 
$
1,209,863

 
$
1,295,761

 
$
1,125,124

The fair value of the Company’s long-term debt was determined using inputs classified as Level 2 and a discounted cash flow approach using market rates for similar debt instruments.
14. STOCKHOLDERS EQUITY
Authorized Capital Stock
The certificate of incorporation of the Company authorizes the following capital stock: (i) 2,750,000,000 shares of Class A common stock, par value $0.01 per share; (ii) 200,000,000 shares of Class B common stock, par value $0.01 per share; (iii) 550,000,000 shares of Class B1 common stock, par value $0.01 per share; and (iv) 50,000,000 shares of preferred stock, par value $0.01 per share.
Each share of Class A common stock and Class B1 common stock entitles the stockholder to one vote with respect to each matter presented to the Company’s stockholders on which the holders of Class A common stock or Class B1 common stock, as applicable, are entitled to vote. Each share of Class B common stock entitles the stockholder to 100 votes on matters presented to the Company’s stockholders generally. Holders of shares of the Company’s Class A common stock, Class B common stock and Class B1 common stock vote together as a single class on all matters presented to the Company’s stockholders for their vote or approval, except as otherwise required by applicable law. Holders of the Company’s Class B common stock and Class B1 common stock do not have any right to receive dividends. Shares of Class B common stock and Class B1 common stock can be redeemed at a price per share equal to par value upon the exchange of Class B Units of Global LLC for shares of the Company’s Class A common stock.


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