Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Identifiable Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary amounts recognized by NEP for the estimated fair value of assets acquired and liabilities assumed in the June 2019 acquisition:



	As of June 11, 2019
	(millions)
Total consideration transferred	$	1,032
Identifiable assets acquired and liabilities assumed
Cash	$	4
Accounts receivable, other receivables and prepaid expenses	159
Property, plant and equipment – net	400
Intangible assets – PPAs	1,080
Goodwill	14
Other non-current assets	133
Accounts payable, accrued expenses and other current liabilities	(132		)
Other non-current liabilities	(154		)
Noncontrolling interest	(472		)
Total net identifiable assets, at fair value^(a)	$	1,032

______________________

(a)

Includes a right of use asset of approximately $20 million and operating lease liabilities of approximately $21 million primarily related to a land use agreement that conveys exclusive use of the land for one of the acquired projects, which were calculated based on a discount rate of 4.57% based on the incremental borrowing rate and a remaining lease term of approximately 26 years as of the date of acquisition. At September 30, 2019, NEP expects to make fixed lease payments of approximately $2 million annually over the next five years and $25 million thereafter.

Supplemental Unaudited Pro forma Results of Operations

NEP’s pro forma results of operations, had the acquisition of NEP Renewables been completed on January 1, 2017, are as follows:



	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
	(millions)
Unaudited pro forma results of operations:
Pro forma revenues	$	201	$	701
Pro forma operating income	$	58	$	425
Pro forma net income	$	109	$	378
Pro forma net income attributable to NEP	$	33	$	244