NOTE

— 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, 2017:
Net revenue from external customers	$	111,777	$	67,587	$	179,364
Intersegment revenue		—		16,565		16,565
Operating income		36,117		17,035		53,152
Segment assets at period end (1)		2,323,618		187,015		2,510,633

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

Six Months Ended June 30, 2017:
Net revenues from external customers	$	227,553	$	141,709	$	369,262
Intersegment revenues		—		32,778		32,778
Operating income		77,015		35,633		112,648
Segment assets at period end (1)		2,323,618		187,015		2,510,633

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

(

)

Electricity segment assets include goodwill in the amount of

$20.1

million

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,
	2017			2016			2017			2016


Revenue:
Total segment revenue	$	179,364		$	159,861		$	369,262		$	311,455
Intersegment revenue		16,565			19,266			32,778			21,206
Elimination of intersegment revenue		(16,565	)		(19,266	)		(32,778	)		(21,206	)
Total consolidated revenue	$	179,364		$	159,861		$	369,262		$	311,455

Operating income:
Operating income	$	53,152		$	51,887		$	112,648		$	102,430
Interest income		362			245			606			565
Interest expense, net		(14,540	)		(18,401	)		(29,463	)		(34,424	)
Derivatives and foreign currency transaction gains (losses)		1,703			(4,332	)		3,041			(2,370	)
Income attributable to sale of tax benefits		4,356			4,519			10,513			8,917
Other non-operating income (expense), net		6			49			(86	)		240
Total consolidated income before income taxes and equity in income of investees	$	45,039		$	33,967		$	97,259		$	75,358