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

Operating revenues, net increased by $84.7 million during the year ended December 31, 2015, compared to the same period in 2014, due to:
(In thousands)
Solar
 
Wind
 
Total
Power plants achieving commercial operation
$
12,659

 
$

 
$
12,659

Power plants acquired from a third party
16,641

 
31,197

 
47,838

Existing power plant energy revenue
24,170

 

 
24,170

 
$
53,470

 
$
31,197

 
$
84,667

Cost of Operations
Cost of operations for the years ended December 31, 2015 and 2014 was $19.0 million and $4.3 million, respectively. Cost of operations increased by $14.8 million during the year ended December 31, 2015, compared to the same period in 2014, due to:
(In thousands)
Solar
 
Wind
 
Total
Increase in cost of operations relating to new power plants (1)
$
5,819

 
$
7,911

 
$
13,730

Existing power plant cost of operations and other
1,055

 

 
$
1,055

Total Change
$
6,874

 
$
7,911

 
$
14,785

(1)
Includes third party acquisitions and dropdowns from SunEdison that reached commercial operation date during the year ended December 31, 2015.

General and Administrative Expense
General and administrative expense for the years ended December 31, 2015 and 2014 was $32.3 million and $12.2 million, respectively. General and administrative expense increased by $20.1 million due to a $13.6 million increase in corporate costs and costs related to being a public company, a $3.4 million increase in costs associated with power plants achieving commercial operation and a $3.1 million increase in other project level cost compared to the year ended December 31, 2014.
We have historically depended significantly on SunEdison for important corporate, project, and other services, including many management services under the MSA (such as management, secretarial, accounting, banking, treasury, administrative, regulatory and reporting functions; recommending and implementing business strategy; maintenance of books and records; calculation and payment of taxes; and preparation of audited and unaudited financial statements), as well as asset management and O&M services for most of our power plants. Because of this historical reliance on SunEdison, the SunEdison Bankruptcy has created substantial risks to our business, operations and financial condition. However, we have continued to operate our business pursuant to contingency plans that we have been developing.
Depreciation, Accretion and Amortization
Depreciation, accretion and amortization expense increased by $21.8 million during the year to $28.9 million for the year ended December 31, 2015 due to power plants achieving commercial operation and additional power plants acquired compared to the prior year.
Provision for Contingent Loss on Deposit for Acquisitions
Provision for contingent loss on deposit for acquisitions totaled $231.0 million for the year ended December 31, 2015. See Item 15. Note 6 - Deposits for Acquisitions for information regarding the 425 MW India Projects. During 2016, the Company became aware that there is a substantial risk that the 425 MW India Projects may not be completed and transferred to the Company in accordance with the India PSA. In April 2016, the Company filed a verified complaint against SunEdison (see Item 15. Note 18 - Commitments and Contingencies). The complaint asserts claims for breach of fiduciary duty, breach of contract and unjust enrichment relating to the failure by SunEdison to transfer the equity interests in the 425 MW India Projects. In addition, during April 2016, SunEdison filed for protection under Chapter 11 of the U.S. Bankruptcy Code. The Company determined that the deposit for acquisition of the 425 MW India Projects was not realizable as of December 31, 2015 and recorded a provision for contingent loss of $231.0 million. There were no such costs incurred during the year ended December 31, 2014.



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