EFTA01366952.pdf

Amendment #4 Page 523 of 868 Tolle et einem, Capitalized Interest Interest expense consisting of amortization of deterred financing costs and amounts incurred on funds borrowed to finance construction of acid/ erergy systems is capitalized wit the system is ready for as intended use The amount of interest ceplbalized was $1629 and $634 Cuing Ire years ended December 31. 2014 and 2013, re$a. vety Deferred financing costs Frarong costs .rcurred in connection wen obtaang construcbcn and term financing are deferred and ern:clued over the mauntes ot the respectNe financrig arrangements Deferred financing costs related to the amperrys Bridge Facility nave been captatized and amortized usng Ire sire gitene method over the penod in whch the Bridge Facility * expected to be outstanding. Amortization is recorded as interest expense n the combined statements of Operations. Deleted I inancing costs related to construction loans is amortized using the straight-line method due to the revomrg novae of these financing agreements Upon completion of construdon construction loans are converted 'No tarn loans and deterred financing costs related to term loans are amortized usrg the effective rterest rate method Amortization of deferred financing costs rs captatzed cluing construction and recorded as interest expense in the combined statements of operations foltnving cv untnvmiT a of commercial operatcn Arrortizabon of deferred fnancing costs was recorded as merest expense and totaled 31,140 and 5772 clunng the years ended December 31. 2014 and 2013. respectively Impairment of long-lived assets Long-toted assets trot are held and used are reviewed for impairment whenever vents or charges in amumetances indicate carrying values may rot be recoverable An impairment loss * recognized if retreat Mae estmated urdiscoueed cash flows expected from an asset are less than its carrying value An impairment charge is measured as the difference between an asset's taming amount and fair value with the difference recorded in operating costs and expenses in the statement of operations Fair values are determined by a vat* Ot valuation methods including a pprasals sales pies of similar assets and present vat lechnguss There were no impairrnents recognzed dung the years ended December 31. 2014 and 2013 Ravenna recognition The Company 6 revenues are ottamed through the sale of energy pusuant to terms of poet; purchase agreements CPPAsi or Other cortractual arrangements whch have rerreinng eves of 15.25 years as of Decanter 31. 2014 AU PP0s are accounted for as Operating leases. have no minimum lease payments and all of One rental ircare under these leases is recorded as income when the electncky es delivered. The contergent rents income recognized in the years ended December 31, 2014 and 2013 was 539.449 and 322.196, respectivery Income taxes Our income tax balances are determined and reported using a 'separate return' method. Income taxes as presented herein allocate current and deferred income taxes of the Parent to us in a manner that is systemabc, rational and consrstert with the asset and liability method The sum of the amotnts alocated to the Company's carveott tax provisions may not equal Op hetorical consolidated provision. Under the separate return F-203 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-0058480 CONFIDENTIAL SDNY_GM_00204664 EFTA01366952