Note 9 - Business Segments

9 Months Ended

Sep. 30, 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 September 30, 2017:
Net revenue from external customers	$	112,273	$	44,912	$	157,185
Intersegment revenue		—		28,248		28,248
Operating income		36,205		7,765		43,970
Segment assets at period end (1)		2,371,855		131,883		2,503,738
Three Months Ended September 30, 2016:
Net revenue from external customers	$	109,795	$	74,822		184,617
Intersegment revenue		—		14,835		14,835
Operating income		23,903		24,320		48,223
Segment assets at period end		2,137,845		141,426		2,279,271
Nine Months Ended September 30, 2017:
Net revenues from external customers	$	339,826	$	186,621		526,447
Intersegment revenues		—		61,026		61,026
Operating income		113,220		43,398		156,618
Segment assets at period end (1)		2,371,855		131,883		2,503,738
Nine Months Ended September 30, 2016:
Net revenues from external customers	$	321,664	$	174,408		496,072
Intersegment revenues		—		36,042		36,042
Operating income		91,502		59,151		150,653
Segment assets at period end		2,137,845		141,426		2,279,271

( 1 ) Electricity segment assets include goodwill in the amount of $20.7 million .

Reconciling information between reportable segments and the Company

’s consolidated totals is shown in the following table:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Revenue:
Total segment revenue	$	157,185		$	184,617		$	526,447		$	496,072
Intersegment revenue		28,248			14,835			61,026			36,042
Elimination of intersegment revenue		(28,248	)		(14,835	)		(61,026	)		(36,042	)
Total consolidated revenue	$	157,185		$	184,617		$	526,447		$	496,072
Operating income:
Operating income	$	43,970		$	48,223		$	156,618		$	150,653
Interest income		255			266			861			831
Interest expense, net		(11,692	)		(17,137	)		(41,155	)		(51,561	)
Derivatives and foreign currency transaction gains (losses)		(1,001	)		(222	)		2,040			(2,592	)
Income attributable to sale of tax benefits		3,506			3,463			14,019			12,380
Other non-operating expense, net		(1,592	)		(5,546	)		(1,678	)		(5,306	)
Total consolidated income before income taxes and equity in losses of investees	$	33,446		$	29,047		$	130,705		$	104,405