EFTA01366951.pdf

Amendment ::4 Page 522 of 868 Cash committed tot construchon projects Cash committed fa construction proects includes ban proceeds deposited into meet comport bank accounts in the normal course of business for general use only in the operations of the project company to build the solar energy systems The loan proceeds cannot be used by other project convenes or for general corporate purposes In certain instances withdrawal of such funds may only occur alter certain mlesiones or experetures dunrg construction have been incurred and approved by the lender in accordance wrth the normal terms of the debt agreement Approve* for the distxtsernent of sten funds are typos ty received based on support for the csialifieci expenditures related to tne protect and no default et the loan. Restricted cash Restricted cash consists of cash in financial insteLlons that Is restncted horn use in operations pursuant to requirements el certain debt agreements These funds are used to pay for capital experiatires, current operating expenses and current debt service paymerts in accordance with the restriction in the debt agreements Restricted cash with maturty periods greater than ore year is reported in noncurrent assets in the corraned base rce sheets Accounts receivable Accounts receivable are reported in ine combned balance sheets at the wooed amounts adjusted for any wnte.olts and an allowance for doubtful accounts We establish an allowance for doubtful accounts to &dust our aoewables to amounts considered to be ultimately collectible Cur atowarce is based on a variety of factors including the length of time receivables are past due, sgracart one-true events the financial heath of our customers and historical experience The allowance for doubtful accounts was 527 and SO as of December 31. 2014 and December 31. 2013 respeawely Untitled recervabies included in accounts receivable were 52 037 and 52.562 as of December 31. 2014 and 2013. respectively Properly and equipment Property and &moment consists or land solar energy systems and constructon in progress and is stated at cost Expenditures for major addrtions and improvemerts are captalized and minor replacements mainteronce and repairs are charged to expense as neared When property and cowmen is retired or otherwise dsposed of tne cost and accumUated depreciation *removed from the accounts and any resultirg gain or loss is meta:led in the resins 01 operator* for the respective period Depreciation ot property and equipment is recognized usng the straght-lee method over de estrreted useful Ives of the solar energy systems which is the lesser ot thirty years a the term of the underlying nomenewable real property lease to which the assets are affixed VUe operate under solar power services agreements with some customers that include a requrement fa the removal of the solar energy systems at the end of the term of Se agreement In addeon we could nave cenain egal obligations fa asset retrernerts related to disposcg of materials m the evert of cbsure, abandonment or sale of certan of au manulactuirg Vacates Asset retirement obligations are recognized at lair value in the period in which they are wowed and the carrying amount of the related long. Wed asset is correspondingly increased Over time, the liability s accreted to its expected future value The corresponOng asset capitalized at inception is deprecated over the useful life of the solar energy propel to which the asset relates F-202 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-0058479 CONFIDENTIAL SDNY_GM_00204663 EFTA01366951