EFTA01366841.pdf

Amendment #4 Page 412 of 868 16+214/ .9t.C.eutFts.1 of ownership remain with the lessor are charged to the statement of operabons and corrixerenswe income on a scrag-cline oasis over ire pencd of tne lease Income taxes n gerera, the Operating Eddies record income tax expense (benefit) each quarter based on the test estimate as to the full years effective tax fete The estimated tax expense (teneft) is reported based on a pro.raton ci the actual income earned inIre period divided by the full year forecasted income (loss) There are certain items however. which are gran discrete period beamed and the tax effects of those items are reported in the quarter that such events anse Items that give nse to discrete recognition include (but are not limited to) finalizing tax autronly examinations. changes in statutory tax rates and expiration of a stable of iimations Tre process fa calculating income tax expense (tenet el includes es/mania parent taxes due are assessrg temporary Offerences between the recogniton of assets and liabilities for tax and financial statenent reporting purposes The Operating Enibes regularly review their deferred tax assets for realizatoty taking intoconsideration all available evdence. both positive and mission.. Including cumulative losses. proacted Iutire pretax and taxable income (bases), the expected fining of the reversals of emstrg temporary dtrerenoes and the expected impact of tax plarnrg strategies The Operabrg Entities are vexed to income taxes in South Africa and from lime to time, they are subject to income tax audits in these jurisdictions The Operating Entities believe Wet our tax relun powers we fUly supported but tax authorities may chasenge certain positions, which may not be tiny sustained Determinng the innate tax expense for trese potential assessments and recording the reared assets and liabilities requires signficant judgrrerts and estimates Tax benefits are recognized only ex tar positions that are mere lkely than not to be sista red upon examination by tax authorities. The Operating Enters review their iitibsbes quarterly, and may Klieg such babas.% due to proposed assessments ty tax eon-outes, changes in facts and ctcurrstaxes or issuance of new regrlations Cash end cash equMWents Cash and cash equivalents comprise of all cash balances Restricted cash Restricted cash consists of cash al deposit in financial institutions that are restncted from use m operations pursuant to requirements of cenan debt agreements These ftrds are reserved for current debt service payments in accordance with the restrictions in the debt agreements Accounts race/sable Accounts recenntble are reporteden the combined balance sheet at the invoiced smarts adjusted for any write-offs and the allowance for doubtful accounts Management establishes an allowance for doitotful accounts to ads:stale receivables to amounts considered to be utimately colectde The allowance is based on a vanety of factors, including the length of tore receivables are past due sgnifcant crietirre events, the financial health of asIt0MerS. and historical experience Properly. Mahe and eoulptnent Property, dart and equipment consists of solar energy systems and is stated al cost less accunuated dePreOation. ExpenditintS la rropr additions and impr0vernentS are capitalized and maintenance and repairs F-92 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058389 CONFIDENTIAL SONY GM_00204553 EFTA01366841