Note 9 - Business Segments

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 9 — BUSINESS SEGMENTS

The Company has two reporting segments: the Electricity segment and the Product segment. These segments are managed and reported separately as each offers different products and serves different markets. The Electricity segment is engaged in the sale of electricity from the Company’s power plants pursuant to PPAs. The Product segment is engaged in the manufacture, including design and development, of turbines and power units for the supply of electrical energy and in the associated construction of power plants utilizing the power units manufactured by the Company to supply energy from geothermal fields and other alternative energy sources. Transfer prices between the operating segments are determined based on current market values or cost plus markup of the seller’s business segment.

Summarized financial information concerning the Company’s reportable segments is shown in the following tables:

	Electricity		Product		Consolidated
	(Dollars in thousands)
Three Months Ended June 30, 2016:
Net revenue from external customers	$	104,001	$	55,860	$	159,861
Intersegment revenue		—		19,266		19,266
Operating income		32,814		19,073		51,887
Segment assets at period end		2,031,650		241,363		2,273,013
Three Months Ended June 30, 2015:
Net revenue from external customers	$	90,926	$	49,561	$	140,487
Intersegment revenue		—		10,900		10,900
Operating income		20,920		17,723		38,643
Segment assets at period end		2,080,209		196,341		2,276,550
Six Months Ended June 30, 2016:
Net revenues from external customers	$	211,869	$	99,586	$	311,455
Intersegment revenues		—		21,206		21,206
Operating income		67,599		34,831		102,430
Segment assets at period end		2,031,650		241,363		2,273,013
Six Months Ended June 30, 2015:
Net revenues from external customers	$	180,879	$	79,839	$	260,718
Intersegment revenues		—		30,657		30,657
Operating income		44,874		23,620		68,494
Segment assets at period end		2,080,209		196,341		2,276,550

Reconciling information between reportable segments and the Company’s consolidated totals is shown in the following table:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Revenue:
Total segment revenue	$	159,861		$	140,487		$	311,455		$	260,718
Intersegment revenue		19,266			10,900			21,206			30,657
Elimination of intersegment revenue		(19,266	)		(10,900	)		(21,206	)		(30,657	)
Total consolidated revenue	$	159,861		$	140,487		$	311,455		$	260,718
Operating income:
Operating income	$	51,887		$	38,643		$	102,430		$	68,494
Interest income		245			44			565			53
Interest expense, net		(18,401	)		(18,859	)		(34,424	)		(36,687	)
Derivatives and foreign currency transaction gains (losses)		(4,332	)		(571	)		(2,370	)		(1,937	)
Income attributable to sale of tax benefits		4,519			4,731			8,917			10,283
Other non-operating income (expense), net		49			(1,675	)		240			(1,392	)
Total consolidated income before income taxes and equity in income of investees	$	33,967		$	22,313		$	75,358		$	38,814