Cost of operations for the nine months ended September 30, 2017 and 2016 was $34.4 million and $32.3 million, respectively. Cost of operations increased by $2.1 million during the nine months ended September 30, 2017 compared to the same period in 2016 due to $3.7 million in additional costs related to increased production from our wind power plants, partially offset by a $1.6 million reduction in O&M costs the Company realized after transitioning to third-party vendors in 2017.
General and Administrative Expense
General and administrative expense for the nine months ended September 30, 2017 and 2016 was as follows:
Nine Months Ended September 30,
General and Administrative Expense
General and administrative expense for the nine months ended September 30, 2017 and 2016 was $58.3 million and $40.7 million, respectively. General and administrative expense increased by $17.6 million compared to the nine months ended September 30, 2016 due to continued additional expenses related to the impact of the SunEdison Bankruptcy and the costs associated with operating as a stand-alone organization, primarily driven by consulting and professional fees.
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.
As part of the Company’s transition away from its historical reliance on SunEdison, as of January 1, 2017, substantially all employees at both the corporate and project levels who were previously employed by SunEdison were hired directly by the Company. As such, the Company no longer materially relies upon SunEdison for personnel to manage and operate our business or our power plants. The Company continues to execute on the other aspects of its plan to implement a stand-alone organization. We expect to incur higher costs associated with performing these services ourselves or hiring substitute providers than the fees we paid under the MSA.
Acquisition, Formation and Related Costs
Acquisition, formation and related costs are immaterial for the nine months ended September 30, 2017, compared to $10.2 million for the same period in 2016, as there were no acquisitions terminated or completed during the nine months ended September 30, 2017.
Depreciation, Accretion and Amortization
Depreciation, accretion and amortization expense increased from $41.0 million for the nine months ended September 30, 2016 to $52.5 million for the nine months ended September 30, 2017. The increase was primarily due to the impact of foreign currency on depreciation expense for wind power plants denominated in foreign currencies.
Costs Associated with Shareholder Litigation
Costs associated with shareholder litigation were $33.0 million for the nine months ended September 30, 2017, which reflects the aggregate amount that the Company expects to pay in settlement costs and associated fees in connection with certain shareholder litigation against the Company, partially offset by insurance proceeds received by the Company as of September 30, 2017. The Company expects that the full amount of the costs associated with shareholder litigation will be funded through a combination of proceeds from existing insurance and litigation settlement proceeds available to the Company. However, there can be no assurance that there will be no out-of-pocket costs to the Company as a result of the shareholder litigation, or that the actual costs will not exceed the Company’s current expectations.
Loss (Gain) on Extinguishment of Debt, net
A loss on the extinguishment of debt of $6.7 million was recognized for the nine months ended September 30, 2017, a decrease of $12.5 million compared to the same period in 2016. This decrease was primarily due to Global Operating LLC