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 were determined 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)
Year Ended December 31, 2018:
Revenues from external customers:
United States (1)	$	305,962	$	14,999	$	7,645		$	328,606
Foreign (2)		203,917		186,744		—			390,661
Net revenues from external customers		509,879		201,743		7,645			719,267
Intersegment revenues		—		48,817		—			48,817
Depreciation and amortization expense		126,181		4,311		1,741			132,233
Operating income (loss)		155,546		38,083		(8,519	)		185,110
Segment assets at period end (3) (*)		2,896,938		156,942		67,470			3,121,350
Expenditures for long-lived assets		219,803		9,993		28,725			258,521
* Including unconsolidated investments		71,983		—		—			71,983

Year Ended December 31, 2017:
Net revenues from external customers	$	465,593	$	224,483	$	2,736		$	692,812
Intersegment revenues		—		109,040		—			109,040
Depreciation and amortization expense		109,928		3,470		1,748			115,146
Operating income		157,613		50,543		(3,138	)		205,018
Segment assets at period end (3) (*)		2,457,514		115,713		50,637			2,623,864
Expenditures for long-lived assets		252,581		6,653		—			259,234
* Including unconsolidated investments		34,084		—		—			34,084

Year Ended December 31, 2016 :
Net revenues from external customers	$	436,292	$	226,299	$	—			662,591
Intersegment revenues		—		56,075		—			56,075
Depreciation and amortization expense		102,698		3,279		—			105,977
Operating income		126,828		75,054		—			201,882
Segment assets at period end		2,204,444		257,125		—			2,461,569
Expenditures for long-lived assets		147,211		4,719		—			151,930

(

)

Electricity segment revenues in the United States are all accounted under ASC

840,

Leases, except for

$26.9

million for the year ended

December 31, 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

to the consolidated financial statements.

(

)

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

to the consolidated financial statements.

(

)

Electricity segment assets include goodwill in the amount of

$20.0

million and

$7.6

million as of

December 31, 2018

and

2017,

respectively. Other segment assets include goodwill in the amount of

million and

$13.5

million as of

December 31, 2018

and

2017,

respectively. For further information on goodwill, see Note

– Intangible assets and goodwill to the consolidated financial statements.

Reconciling information between reportable segments and the Company’s consolidated totals is shown in the following table:

	Year Ended December 31,
	2018			2017			2016
	(Dollars in thousands)

Revenues:
Total segment revenues	$	719,267		$	692,812		$	662,591
Intersegment revenues		48,817			109,040			56,075
Elimination of intersegment revenues		(48,817	)		(109,040	)		(56,075	)

Total consolidated revenues	$	719,267		$	692,812		$	662,591

Operating income:
Operating income	$	185,110		$	205,018		$	201,882
Interest income		974			988			971
Interest expense, net		(70,924	)		(54,142	)		(67,389	)
Foreign currency translation and transaction losses		(4,761	)		2,654			(5,534	)
Income attributable to sale of equity interest		19,003			17,878			16,503
Other non-operating income, net		7,779			(1,666	)		(5,345	)
Total consolidated income before income taxes and equity in income of investees	$	137,181		$	170,730		$	141,088

The Company sells electricity and products for power plants and others, mainly to the geographical areas according to location of the customers, as detailed below. The following tables present certain data by geographic area:

	Year Ended December 31,
	2018		2017		2016
	(Dollars in thousands)

Revenues from external customers attributable to: (1)
United States	$	328,606	$	301,132	$	307,025
Indonesia		4,379		28,968		100,856
Kenya		119,094		110,243		109,270
Turkey		168,699		125,166		46,270
Chile		980		8,895		58,032
Guatemala		27,975		27,991		30,086
New Zealand		10,451		33,395		—
Other foreign countries		59,083		57,022		11,052

Consolidated total	$	719,267	$	692,812	$	662,591

(

)

Revenues as reported in the geographic area in which they originate.

	Year Ended December 31,
	2018		2017		2016
	(Dollars in thousands)

Long-lived assets (primarily power plants and related assets) located in:
United States	$	1,696,439	$	1,510,986	$	1,414,523
Kenya		301,956		340,970		327,157
Other foreign countries		222,872		281,333		199,559
Consolidated total	$	2,221,267	$	2,133,289	$	1,941,239

The following table presents revenues from major customers:

	Year Ended December 31,

	2018				2017				2016
	Revenues		%		Revenues		%		Revenues		%
	(Dollars in thousands)				(Dollars in thousands)				(Dollars in thousands)
Southern California Public Power (1)	$	109,208		15.2	$	70,100		10.1	$	67,566		10.2
Sierra Pacific Power Company and Nevada Power Company (1)(2)		116,149		16.1		125,424		18.1		127,226		19.2
Hyundai (3)		4,379		0.6		28,968		4.2		100,856		15.2
KPLC (1)		119,094		16.6		110,243		15.9		109,270		16.5

(

)

Revenues reported in Electricity segment.

(

)

Subsidiaries of NV Energy, Inc.

(

)

Revenues related to the Sarulla project that are reported in Product segment.