CREDIT CONCENTRATION

12 Months Ended

Dec. 31, 2016

Accounts, Notes, Loans and Financing Receivable, Classified [Abstract]

CREDIT CONCENTRATION

CREDIT CONCENTRATION

At December 31, 2016, the Corporation's largest account receivable from one customer was $81.6 million, representing 76% of total consolidated accounts receivable. This customer was relying on monetization of tax credits under a State of Alaska tax credit program (“Tax Credits”), either from proceeds from the State of Alaska or from third party financing sources, to satisfy the accounts receivable. There remains substantial uncertainty regarding the timing of reimbursement from the State of Alaska and the availability of third party financing to the customer, or the Corporation, in order for the Corporation to collect its accounts receivable.

Due to the customer’s inability to monetize the Tax Credits, our customer assigned $72.9 million of Tax Credits during the year ended December 31, 2016 so that we can seek to monetize these Tax Credits and apply the resulting cash, as monetization occurs, toward the customer’s repayment of its overdue account receivable. In January 2017, the customer assigned the remaining $16.1 million of Tax Credits to the Corporation. Based upon the expected timing to monetize the Tax Credits as of December 31, 2016, the Corporation has reclassified$38.0 millionfrom current accounts receivable long term accounts receivable in the December 31, 2016 consolidated balance sheet.

In its review of approximately $30.2 million of Tax Credit applications during the audit process, the Corporation received approximately $24.4 million of Tax Credit certificates from the State of Alaska during the year ended December 31, 2016. The State of Alaska disallowed approximately $5.8 million of what the Corporation believes should otherwise be eligible expenditures. The Corporation's customer filed an appeal of this decision on October 18, 2016 seeking a reversal of the disallowed amount. During the year ended December 31, 2016, the Corporation recorded a reduction of the accounts receivable balance of $10.9 million related to the start of the monetization of Tax Credits and recorded an additional reduction of $3.5 million in 2017 through the date of issuance of these financial statements. The Corporation still expects additional Tax Credit certificates from the State of Alaska representing approximately $58.8 million to be issued on a rolling basis in 2017.

There continues to be uncertainty regarding the timely payment by the State of Alaska of its obligations on issued Tax Credit certificates as well as the Corporation's ability to accurately estimate the timeframe for such payments. The Corporation continues to explore options to monetize the Tax Credit certificates, including an option to sell the certificates in the secondary market at a discount to purchasers that are able to apply the certificates to reduce their own Alaskan tax liabilities. There is a risk that any monetization of the Tax Credits certificates, however, will reflect a substantial discount and may be insufficient to fully repay the customer’s outstanding account receivable. Should this occur, the Corporation may be required to record an impairment to the amount due from the customer.