Note 9 - Business Segments

3 Months Ended

Mar. 31, 2017

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 March 31, 2017:
Net revenues from external customers	$	115,776	$	74,122	$	189,898
Intersegment revenues		—		16,213		16,213
Operating income		40,898		18,598		59,496
Segment assets at period end		2,282,837		217,051		2,499,888
Three Months Ended March 31, 2016:
Net revenues from external customers	$	107,868	$	43,726	$	151,594
Intersegment revenues		—		1,941		1,941
Operating income		34,785		15,758		50,543
Segment assets at period end		2,048,471		211,663		2,260,134

Reconciling information between reportable segments and the Company

’s consolidated totals is shown in the following table:

	Three Months Ended March 31,
	2017			2016
Revenue:
Total segment revenue	$	189,898		$	151,594
Intersegment revenue		16,213			1,941
Elimination of intersegment revenue		(16,213	)		(1,941	)
Total consolidated revenue	$	189,898		$	151,594
Operating income:
Operating income	$	59,496		$	50,543
Interest income		244			320
Interest expense, net		(14,923	)		(16,023	)
Derivatives and foreign currency transaction gains (losses)		1,338			1,962
Income attributable to sale of tax benefits		6,157			4,398
Other non-operating income (expense), net		(92	)		191
Total consolidated income before income taxes and equity in income of investees	$	52,220		$	41,391