Note 1 - General and Basis of Presentation

6 Months Ended

Jun. 30, 2014

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 — GENERAL AND BASIS OF PRESENTATION

These unaudited condensed consolidated interim financial statements of Ormat Technologies, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Accordingly, they do not contain all information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of June 30, 2014, the consolidated results of operations and comprehensive income for the three and six-month periods ended June 30, 2014 and 2013 and the consolidated cash flows for the six-month periods ended June 30, 2014 and 2013.

The financial data and other information disclosed in the notes to the condensed consolidated financial statements related to these periods are unaudited. The results for the three and six-month periods ended June 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014.

These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013. The condensed consolidated balance sheet data as of December 31, 2013 was derived from the audited consolidated financial statements for the year ended December 31, 2013, but does not include all disclosures required by U.S. GAAP.

Dollar amounts, except per share data, in the notes to these financial statements are rounded to the closest $1,000.

Other comprehensive income

For the six months ended June 30, 2014 and 2013, the Company reclassified $72,000 and $84,000, respectively, from other comprehensive income, of which $116,000 and $136,000, respectively, were recorded to reduce interest expense and $44,000 and $52,000, respectively, were recorded against the income tax provision, in the condensed consolidated statements of operations and comprehensive income. For the three months ended June 30, 2014 and 2013, the Company reclassified $36,000 and $42,000, respectively, from other comprehensive income, of which $58,000 and $68,000, respectively, were recorded to reduce interest expense and $22,000 and $26,000, respectively, were recorded against the income tax provision, in the condensed consolidated statements of operations and comprehensive income.

Termination fee

On March 15, 2013, the Company finalized the agreement with Southern California Edison Company (“Southern California Edison”), by which the G1 and G3 Standard Offer #4 power purchase agreements (“PPAs”) were terminated and a termination fee of $9.0 million was recorded in the first quarter of 2013 in selling and marketing expenses. Under the agreement, the Company will continue to sell power from G2, the third plant of the Mammoth complex, under its existing PPA with Southern California Edison, with the term of the contract extended by an additional six years until early 2027.

Solar project sale

On March 26, 2014, the Company signed an agreement with RET Holdings, LLC to sell the Heber Solar project in Imperial County, California for $35.25 million. The Company received the first payment of $15.0 million during the first quarter of 2014 and the second payment for the remaining $20.25 million was paid in the second quarter of 2014. Due to certain contingencies in the sale agreement, the Company deferred the pre-tax gain of approximately $7.6 million until the contingencies were resolved in the second quarter of 2014.

Write-off of unsuccessful exploration activities

Write-off of unsuccessful activities for the three and six months ended June 30, 2014, was $8.1 million. This represents the write-off of exploration costs related to the Company’s exploration activities in the Wister site in California, which the Company determined in the second quarter of 2014 would not support commercial operations.

OFC 2 loan prepayment

On June 20, 2014, Phase I of Tuscarora Facility achieved Project Completion under the OFC 2 Note Purchase Agreement. In accordance with the terms of the Note Purchase Agreement and following recalibration of the financing assumptions, the loan amount was adjusted through a principal prepayment of $4,275,000.

Concentration of credit risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of temporary cash investments and accounts receivable.

The Company places its temporary cash investments with high credit quality financial institutions located in the United States (“U.S.”) and in foreign countries. At June 30, 2014 and December 31, 2013, the Company had deposits totaling $21,790,000 and $13,805,000, respectively, in seven U.S. financial institutions that were federally insured up to $250,000 per account. At June 30, 2014 and December 31, 2013, the Company’s deposits in foreign countries amounted to approximately $69,129,000 and $56,133,000, respectively.

At June 30, 2014 and December 31, 2013, accounts receivable related to operations in foreign countries amounted to approximately $48,814,000 and $32,231,000, respectively. At June 30, 2014 and December 31, 2013, accounts receivable from the Company’s primary customers (as described immediately below) amounted to approximately 51.8% and 35.0% of the Company’s accounts receivable, respectively.

Sierra Pacific Power Company and Nevada Power Company (subsidiaries of NV Energy, Inc.) accounted for 17.4% and 14.9% of the Company’s total revenues for the three months ended June 30, 2014 and 2013, respectively, and 17.6% and 17.8% for the six months ended June 30, 2014 and 2013, respectively.

Southern California Edison accounted for 13.5% and 12.4% of the Company’s total revenues for the three months ended June 30, 2014 and 2013, respectively, and 12.7% and 12.1% for the six months ended June 30, 2014 and 2013, respectively.

Hawaii Electric Light Company accounted for 10.1% and 8.6% of the Company’s total revenues for the three months ended June 30, 2014 and 2013, respectively, and 9.6% and 8.9% for the six months ended June 30, 2014 and 2013, respectively.

Kenya Power and Lighting Co. Ltd. accounted for 16.9% and 10.3% of the Company’s total revenues for the three months ended June 30, 2014 and 2013, respectively, and 15.6% and 9.5% for the six months ended June 30, 2014 and 2013, respectively.

The Company performs ongoing credit evaluations of its customers’ financial condition. The Company has historically been able to collect on all of its receivable balances, and accordingly, no provision for doubtful accounts has been made.