Note 1 - General and Basis of Presentation	3 Months Ended
Mar. 31, 2017
Notes to Financial Statements
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 March 31, 2017, the consolidated results of operations and comprehensive income (loss) for the three -month periods ended March 31, 2017 and 2016 and the consolidated cash flows for the three -month periods ended March 31, 2017 and 2016. 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 -month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. These condensed unaudited 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, 2016. The condensed consolidated balance sheet data as of December 31, 2016 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2016, 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. Viridity transaction On March 15, 2017, the Company completed the acquisition of substantially all of the business and assets of Viridity Energy, Inc. (“VEI”), a privately held Philadelphia-based company engaged in the provision of demand response, energy management and energy storage services. Pursuant to the Asset Purchase Agreement dated as of December 29, 2016, Viridity Energy Solutions Inc. (“Viridity”), a wholly owned subsidiary of the Company paid initial consideration of $35.3 million at closing. Additional contingent consideration with an estimated fair value of $ 12.8 million will be payable in two installments upon the achievement of certain performance milestones measured at the end of fiscal years 2017 and 2020. The acquired business and assets are operated by Viridity. Using proprietary software and solutions, Viridity serves primarily retail energy providers, utilities, and large commercial and industrial customers. Viridity ’s offerings enable its customers to optimize and monetize their energy management, demand response and storage facilities potential by interacting on their behalf with regional transmission organizations and independent system operators. The Company accounted for the transaction in accordance with Accounting Standard Codification 805, Business Combinations, and consequently recorded intangible assets of $35.0 million primarily relating to Viridity’s storage and non-storage activities with a weighted-average amortization period of 17 years, approximately $0.3 million of working capital and fixed assets, and $13.5 million of goodwill. Following the transaction, the Company consolidated Viridity, in accordance with Accounting Standard Codification 810, Consolidation. The revenues of Viridity for the period from March 15, 2017 to March 31, 2017 were included in the Company’s consolidated statements of operations and comprehensive income for the three months ended March 31, 2017. Accounting guidance provides that the allocation of the purchase price may be modified for up to one year from the date of the acquisition to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date. Other comprehensive income For the three months ended March 31, 2017 and 2016, the Company classified $2 thousand and $3 thousand, respectively, related to derivative instruments designated as cash flow hedges, from accumulated other comprehensive income, of which $3 thousand and $4 thousand, respectively, was recorded to reduce interest expense and $1 thousand, in both periods, was recorded against the income tax provision, in the condensed consolidated statements of operations and comprehensive income. The accumulated net loss included in Other comprehensive income as of March 31, 2017, is $0.6 million Write-offs of unsuccessful exploration activities Write-off s of unsuccessful exploration activities for the three months ended March 31, 2017 and 2016 were $0.0 million and $0.6 million, respectively. The write-off of exploration costs in 2016 was related to the Company’s exploration activities in Nevada, which the Company determined would not support commercial operations. 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 March 31, 2017 and December 31, 2016, the Company had deposits totaling $ 52.5 million and $72.5 million, respectively, in seven U.S. financial institutions that were federally insured up to $250,000 per account. At March 31, 2017 and December 31, 2016, the Company’s deposits in foreign countries amounted to approximately $137.4 million and $166.2 million, respectively. At March 31, 2017 and December 31, 2016, accounts receivable related to operations in foreign countries amounted to approximately $42.2 million and $53.3 million, respectively. At March 31, 2017 and December 31, 2016, accounts receivable from the Company’s primary customers amounted to approximately 60% of the Company’s accounts receivable. Sierra Pacific Power Company and Nevada Power Company (subsidiaries of NV Energy, Inc.) accounted for 18.8% and 23.2% of the Company’s total revenues for the three months ended March 31, 2017 and 2016, respectively. Kenya Power and Lighting Co. Ltd. accounted for 14.3% and 17.4% of the Company’s total revenues for the three months ended March 31, 2017 and 2016, respectively. Southern California Public Power Authority accounted for 9.0% and 12.1% of the Company’s total revenues for the three months ended March 31, 2017 and 2016, respectively. Hyundai (Sarulla geothermal power project) accounted for 6.0% and 9.0% of the Company’s total revenues for the three months ended March 31, 2017 and 2016, respectively. The Company has historically been able to collect on all of its receivable balances, and accordingly, no provision for doubtful accounts has been made.

NOTE

— 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

March

31,

2017,

the consolidated results of operations and comprehensive income (loss) for the

three

-month periods ended

March

31,

2017

and

2016

and the consolidated cash flows for the

three

-month periods ended

March

31,

2017

and

2016.

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

-month period ended

March

31,

2017

are not necessarily indicative of the results to be expected for the year ending

December

31,

2017.

These condensed unaudited 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

-K for the year ended

December

31,

2016.

The condensed consolidated balance sheet data as of

December

31,

2016

was derived from the Company’s audited consolidated financial statements for the year ended

December

31,

2016,

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.

Viridity transaction

March

15,

2017,

the Company completed the acquisition of substantially all of the business and assets of Viridity Energy, Inc. (“VEI”), a privately held Philadelphia-based company engaged in the provision of demand response, energy management and energy storage services.

Pursuant to the Asset Purchase Agreement dated as of

December

29,

2016,

Viridity Energy Solutions Inc. (“Viridity”), a wholly owned subsidiary of the Company paid initial consideration of

$35.3

million at closing. Additional contingent consideration with an estimated fair value of $

12.8

million will be payable in

two

installments upon the achievement of certain performance milestones measured at the end of fiscal years

2017

and

2020.

The acquired business and assets are operated by Viridity.

Using proprietary software and solutions, Viridity serves primarily retail energy providers, utilities, and large commercial and industrial customers. Viridity

’s offerings enable its customers to optimize and monetize their energy management, demand response and storage facilities potential by interacting on their behalf with regional transmission organizations and independent system operators.

The Company accounted for the transaction

in accordance with Accounting Standard Codification

805,

Business Combinations, and consequently recorded intangible assets of

$35.0

million primarily relating to Viridity’s storage and non-storage activities with a weighted-average amortization period of

years, approximately

$0.3

million of working capital and fixed assets, and

$13.5

million of goodwill. Following the transaction, the Company consolidated Viridity, in accordance with Accounting Standard Codification

810,

Consolidation.

The

revenues of Viridity for the period from

March

15,

2017

March

31,

2017

were included in the Company’s consolidated statements of operations and comprehensive income for the

three

months ended

March

31,

2017.

Accounting guidance provides that the allocation of the purchase price

may

be modified for up to

one

year from the date of the acquisition to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date.

Other comprehensive income

For the

three

months ended

March

31,

2017

and

2016,

the Company classified

thousand and

thousand, respectively, related to derivative instruments designated as cash flow hedges, from accumulated other comprehensive income, of which

thousand and

thousand, respectively, was recorded to reduce interest expense and

thousand, in both periods, was recorded against the income tax provision, in the condensed consolidated statements of operations and comprehensive income. The accumulated net loss included in Other comprehensive income as of

March

31,

2017,

$0.6

million

Write-offs of unsuccessful exploration activities

Write-off

s of unsuccessful exploration activities for the

three

months ended

March

31,

2017

and

2016

were

$0.0

million and

$0.6

million, respectively. The write-off of exploration costs in

2016

was related to the Company’s exploration activities in Nevada, which the Company determined would not support commercial operations.

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

March

31,

2017

and

December

31,

2016,

the Company had deposits totaling $

52.5

million and

$72.5

million, respectively, in

seven

U.S. financial institutions that were federally insured up to

$250,000

per account. At

March

31,

2017

and

December

31,

2016,

the Company’s deposits in foreign countries amounted to approximately

$137.4

million and

$166.2

million, respectively.

March

31,

2017

and

December

31,

2016,

accounts receivable related to operations in foreign countries amounted to approximately

$42.2

million and

$53.3

million, respectively. At

March

31,

2017

and

December

31,

2016,

accounts receivable from the Company’s primary customers amounted to approximately

60%

of the Company’s accounts receivable.

Sierra Pacific Power Company and Nevada Power Company (subsidiaries of NV Energy, Inc.) accounted for

18.8%

and

23.2%

of the Company’s total revenues for the

three

months ended

March

31,

2017

and

2016,

respectively.

Kenya Power and Lighting Co. Ltd. accounted for

14.3%

and

17.4%

of the Company’s total revenues for the

three

months ended

March

31,

2017

and

2016,

respectively.

Southern California

Public Power Authority accounted for

9.0%

and

12.1%

of the Company’s total revenues for the

three

months ended

March

31,

2017

and

2016,

respectively.

Hyundai

(Sarulla geothermal power project) accounted for

6.0%

and

9.0%

of the Company’s total revenues for the

three

months ended

March

31,

2017

and

2016,

respectively.

The Company has historically been able to collect on all of its receivable balances, and accordingly, no provision for doubtful accounts has been made.