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Table of Contents
<br />AMERESCO, INC.
<br />NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<br />(In thousands, except per share amounts)
<br />trip issues. We determined that the cost to overhaul the transfer trip line would be cost prohibitive, therefore, we made a decision to shut the plant down. As a result, we
<br />recorded an impairment charge of $1,298, which fully impaired this asset group. During December 2023, there was an additional energy asset group that had successive years of
<br />losses, the PPA expires in November 2024, and we expect losses to continue in 2024, therefore, we recorded an impairment charge of $311, which fully impaired this asset
<br />group. Both of these asset groups were within the Alternative Fuels segment.
<br />During September 2021, there was a triggering event which caused us to perform an impairment analysis on an energy asset group within the Alternative Fuels segment. This
<br />triggering event was related to a decision by the applicable state environmental agency to discontinue an environmental permit. This action materially modified the obligation of
<br />the landfill owner to continue maintaining the wellfield, therefore, we plan to decommission the impacted landfill gas plant. As a result, we recorded an impairment charge of
<br />$1,901, which fully impaired this asset group.
<br />The impairment charges are included in asset impairments within the consolidated statements of income for the years ended December 31, 2023 and 2021. There were no
<br />impairment charges for the year ended December 31, 2022.
<br />Customer Energy Asset Projects
<br />We include certain customer energy asset projects in our energy assets, as we control and operate the assets as well as obtain financing during the construction and operating
<br />periods of the assets. We also carry a liability associated with these energy assets as we have an obligation to the customer for performance of the asset. Provided that
<br />performance criteria are met, the customer is responsible for repayment of the liability to the financing parry. As of December 31, 2023 there were six energy asset projects
<br />which were included in energy assets and as of December 31, 2022, there were five.
<br />The liabilities recognized in association with these customer energy assets were as follows:
<br />Location
<br />Accrued expenses and other current liabilities
<br />Other liabilities
<br />Total customer energy asset projects liability
<br />December 31,
<br />2023 2022
<br />$ 598 $ 261
<br />41,680 27,168
<br />$ 42,278 $ 27,429
<br />ARO Assets and ARO Liabilities
<br />Our ARO assets and ARO liabilities relate to the removal of equipment and pipelines at certain renewable gas projects and obligations related to the decommissioning of
<br />certain solar facilities.
<br />The following tables sets forth information related to our ARO assets and ARO liabilities:
<br />December 31,
<br />Location 2023 2022
<br />ARO assets, net Energy assets, net $ 4,800 $ 2,359
<br />ARO liabilities, non -current Other liabilities $ 5,960 $ 3,052
<br />Year Ended December 31,
<br />2023 2022 2021
<br />Depreciation expense of ARO assets $ 215 $ 146 $ 113
<br />Accretion expense of ARO liabilities $ 258 $ 146 $ 123
<br />8. LEASES
<br />We enter into a variety of operating lease agreements through the normal course of business including certain administrative offices. The leases are long-term, non -cancelable
<br />real estate lease agreements, expiring at various dates through fiscal 2032. The agreements generally provide for fixed minimum rental payments and the payment of utilities,
<br />real estate taxes, insurance, and repairs. We also lease vehicles, IT equipment and certain land parcels related to our energy projects, expiring at various dates
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