NOTE

— BUSINESS SEGMENTS

2018,

the Company started disclosing its energy storage and power load management business activity under the Other segment as such operations met the reportable segment criteria of ASC

280,

Segment Reporting. As such, starting in

2018

the Company has

three

reporting segments: the Electricity segment, the Product segment and the Other 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. The Other segment is engaged in management of curtailable customer loads under contracts with U.S. retail energy providers and directly with large commercial and industrial customers as well as battery storage as a service.

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, including, as further described under Note

to the consolidated financial statements, the Company's disaggregated revenues from contracts with customers as required by ASC

606:

	Electricity		Product		Other			Consolidated
	(Dollars in thousands)
Three Months Ended June 30, 2018:
Revenues from external customers:
United States (1)	$	73,139	$	27	$	1,205		$	74,371
Foreign (2)		49,040		54,888		—			103,928
Net revenue from external customers		122,179		54,915		1,205			178,299
Intersegment revenue		—		11,453		—			11,453
Operating income		27,462		10,761		(1,590	)		36,633
Segment assets at period end (3) (*)		2,805,182		125,572		63,395			2,994,149
* Including unconsolidated investments		66,551		—		—			66,551

Three Months Ended June 30, 2017:
Net revenue from external customers	$	110,896	$	67,587		881			179,364
Intersegment revenue		—		16,565		—			16,565
Operating income		38,014		17,035		(1,897	)		53,152
Segment assets at period end (3) (*)		2,273,503		187,015		50,115			2,510,633
* Including unconsolidated investments		13,957		—		—			13,957

Six Months Ended June 30, 2018:
Revenues from external customers:
United States (1)	$	156,822	$	221	$	4,067		$	161,110
Foreign (2)		97,846		103,366		—			201,212
Net revenues from external customers		254,668		103,587		4,067			362,322
Intersegment revenues		—		36,280		—			36,280
Operating income		73,874		20,314		(2,962	)		91,226
Segment assets at period end (3) (*)		2,805,182		125,572		63,395			2,994,149
* Including unconsolidated investments		66,551		—		—			66,551

Six Months Ended June 30, 2017:
Net revenues from external customers	$	226,672	$	141,709	$	881		$	369,262
Intersegment revenues		—		32,778		—			32,778
Operating income		78,912		35,633		(1,897	)		112,648
Segment assets at period end (3) (*)		2,273,503		187,015		50,115			2,510,633
* Including unconsolidated investments		13,957		—		—			13,957

	( 1 )	Electricity segment revenues in the United States are all accounted under ASC 840, Leases, except for $5.3 million and $11.9 million in the three and six months ended June 30, 2018 that are accounted under ASC 606 starting in 2018. Product and Other segment revenues in the United States are accounted under ASC 606, as further described under Note 2 to the consolidated financial statements.
	( 2 )	Electricity segment revenues in foreign countries are all accounted under ASC 840, Leases, and Product revenues in foreign countries are accounted under ASC 606 as further described under Note 2 to the consolidated financial statements.

(

)

Electricity segment assets include goodwill in the amount of

$26.7

million and

$6.6

million as of

June 30, 2018

and

2017,

respectively. Other segment assets include goodwill in the amount of

$13.5

million as of

June 30, 2018

and

2017.

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,
	2018			2017			2018			2017

Revenue:
Total segment revenue	$	178,299		$	179,364		$	362,322		$	369,262
Intersegment revenue		11,453			16,565			36,280			32,778
Elimination of intersegment revenue		(11,453	)		(16,565	)		(36,280	)		(32,778	)
Total consolidated revenue	$	178,299		$	179,364		$	362,322		$	369,262

Operating income:
Operating income	$	36,633		$	53,152		$	91,226		$	112,648
Interest income		189			362			302			606
Interest expense, net		(15,846	)		(14,540	)		(30,190	)		(29,463	)
Derivatives and foreign currency transaction gains (losses)		(529	)		1,703			(2,128	)		3,041
Income attributable to sale of tax benefits		3,556			4,356			10,917			10,513
Other non-operating income (expense), net		7,373			6			7,353			(86	)
Total consolidated income before income taxes and equity in income of investees	$	31,376		$	45,039		$	77,480		$	97,259