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SEC Filings

10-Q
TERRAFORM GLOBAL, INC. filed this Form 10-Q on 06/27/2017
Entire Document
 

Debt Extinguishments
On March 31, 2017, Global Operating LLC permanently reduced to nil and terminated the revolving commitments under the Revolver. A loss on extinguishment of debt of $6.8 million was recognized for the three months ended March 31, 2017 related to the termination of the commitments under the Revolver. No project level indebtedness was repaid for the three months ended March 31, 2017 and 2016.

In January 2016, the Company repurchased $41.0 million of the Senior Notes for $33.2 million and paid $1.9 million of interest and prepayment fees. In total, the Company repurchased $49.6 million of the Senior Notes for $40.0 million plus prepayment fees and interest of $2.3 million. A gain on extinguishment of debt of $6.3 million was recognized for the three months ended March 31, 2016 related to these repurchases.

Interest Income
Interest expense in the unaudited condensed consolidated statements of operations is presented net of interest income. During the three-month period ended March 31, 2017 and 2016, the Company received interest income of $1.1 million and $2.2 million, respectively, from its cash and cash equivalents balances, short-term investments and restricted deposit accounts.
Maturities
The aggregate amounts of contractual payments of long-term debt due after March 31, 2017, excluding amortization of debt discounts and premiums, as stated in the financing agreements, are as follows:

Maturities
(In thousands)
Remainder of 2017 (1)
 
2018
 
2019
 
2020
 
2021
 
Thereafter
 
Total
Project Level
$
9,360

 
$
9,798

 
$
14,829

 
$
17,889

 
$
21,401

 
$
283,411

 
$
356,688

Corporate

 

 

 

 

 
753,152

 
753,152

Total debt
$
9,360

 
$
9,798

 
$
14,829

 
$
17,889

 
$
21,401

 
$
1,036,563

 
$
1,109,840

(1)
Represents the contractual principal payment due dates for the Company’s long-term debt and does not reflect the reclassification of $328.0 million of long-term debt to current as a result of debt defaults under a portion of its non-recourse financing agreements or deferred financing costs that are included with the net long-term balance of the unaudited condensed consolidated balance sheet.

8. INCOME TAXES
The income tax provision consisted of the following:
 
Three Months Ended March 31,
(In thousands, except effective tax rate)
2017
 
2016
Income (loss) before income tax expense
$
512

 
$
(5,390
)
Income tax expense
2,465

 
858

Effective tax rate
481.4
%
 
(15.9
)%
The Company records income tax expense each quarter using its best estimate of the full year’s effective tax rate. The Company regularly reviews its deferred tax assets for realizability, taking into consideration all available evidence, both positive and negative, including cumulative losses, projected future pre-tax and taxable income (losses), the expected timing of the reversals of existing temporary differences and the expected impact of tax planning strategies.
As of March 31, 2017, TerraForm Global, Inc. owned 64.8% of Global LLC and consolidates the results of Global LLC through its controlling interest. The Company records SunEdison's 35.2% ownership of Global LLC as a non-controlling interest in the financial statements. Global LLC is treated as a partnership for income tax purposes.
For the three months ended March 31, 2017, the overall effective tax rate was different than the statutory rate of 35.0% primarily due to valuation allowances, tax holiday benefits, and presumed profits taxes in Brazil. As of March 31, 2017, most jurisdictions were in a net deferred tax asset position. A valuation allowance is recorded against the deferred tax assets primarily because of the historical losses in those jurisdictions.

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