EFTA01366843.pdf

Amendment #4 Page 414 of 868 Tietitr. cc!! Ape retirement obligation The Operating Endes' asset retrernent obigations relate to leased and upon Much We solar energy systems were constructed The Cperabng Entities we required to restore the leased land to an weed-upon cerulean from the date construction of the asset commences Ths would imam dsmarding property. plant and equipment constructed on the leased lard, and restoring the land to its pre-construction cordnon The Opening Entitles are required to record the present value of the estimated obligations as the solar energy systems we constructed N the same trne, a corresponding asset was capta bed to the soar energy systems' cost The asset retirement obligations we be accreted to their blue value over the terms of the land leases, and the amounts canalized tfroup CCOvnI be deprecated over the remainder of the same term Coarnitrrrenta and contingencies The Operatrg Entree me involved in Mignon and clams in the ordinary course of business with possible gam a loss contegencies that we ultimately be resolved when one or more haus evens occur or tail to occur a some amount within a range Of loss appears at the tee to be a better catenate than any other amount with n the range, the amount will be accrued Wien no amours within the range is a better esbmate than any other a moult, the mnimum amount in the range will be accrued Management continualy evaluates uncertainties assoaaad wth loss contingencies and record a charge equal to at least the minimum estimate lability for a loss corlingency wren both of Ire folbwrg cantons are net (I) information available poor to issuance of the financial statements indicates Wet It is probable than an asset had been levered or a liability had been incurred at the date of the financial statements and pi) the loss or range of loss can be reasonably &donated Legal costs are expensed when totted Gain contrgencies are not recorded until realized a realizable Comintments related to projects, consist of amount* contracted tar DA net yet barred. Fill tales nmesturtenetW Management performs IS value measurements in accordance with ASC 820. ASC 820 derres fair yak* as the price that w04d be received horn selling an asset or paid to transfer a liability in an orderly transaclon between market participants at the measurement date When determining the far vale measvernents for assets and liabilitieS required to be recorded at their lair values. management considers the priropal or most advantageous market in whch it would transact and consider assumptions that market parbcgarts would use wnen morn the assets or liatkinies, such as inherent risk transfer restrictions and nsk of nonperfonnance ASC 820 establishes a fair value hierarchy that requires an entity to meanies/ the use of observable inputs and resnirrsze the use of unobservable incus when measunng far value An asset's or a hablitySeategaization wthn Ira far value hierarchy is based won the lowest level of input that is significant to the fair value measurement ASC 820 establishes three levels of inpAs that may be used to measure far value • Level 1. quoted prices in active markets for identical assets or tabInes. • Level 2 inputs other than Level 1 that are observable. either directly a indirectly. such as quoted prices n setae markets for simAar assets or liabilities. quoted prices for identical or smear assets or tabbies in markets that are rot ease. or other inputs that are observable or can be corroborated by observable market data for substantially the rut term of the assets or liabilities. or • Level 3 unotservable inges that are supported by 'Me or no market sandy and Wet are significant to the fair values of the assets a abilities F-94 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-0058371 CONFIDENTIAL SONY GM_00204555 EFTA01366843