NOTE

— BUSINESS SEGMENTS

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:

	Electricity		Product		Other			Consolidated
	(Dollars in thousands)
Three Months Ended March 31, 2019:
Revenues from external customers:
United States (1)	$	91,528	$	11,243	$	4,002		$	106,773
Foreign (2)		51,380		40,885		—			92,265
Net revenues from external customers		142,908		52,128		4,002			199,038
Intersegment revenues		—		18,261		—			18,261
Operating income (loss)		51,551		4,252		(2,078	)		53,725
Segment assets at period end (3) (*)		2,950,444		125,248		67,522			3,143,214
* Including unconsolidated investments		71,885		—		—			71,885

Three Months Ended March 31, 2018:
Revenues from external customers:
United States (1)	$	83,683	$	194	$	2,862		$	86,739
Foreign (2)		48,806		48,478		—			97,284
Net revenues from external customers		132,489		48,672		2,862			184,023
Intersegment revenues		—		24,827		—			24,827
Operating income		46,412		9,553		(1,372	)		54,593
Segment assets at period end (3) (*)		2,542,154		114,815		53,848			2,710,817
* Including unconsolidated investments		63,109		—		—			63,109

	( 1 )	Electricity segment revenues in the United States are all accounted under ASC 842, Leases, except for $17.0 million in the three months ended March 31, 2019 that are accounted under ASC 606. For the three months ended March 31, 2018, Electricity segment revenues in the United States are all accounted under ASC 840, Leases, except for $6.7 million that are accounted under ASC 606.

	( 2 )	For the three months ended March 31, 2019, Electricity segment revenues in foreign countries are all accounted under ASC 842, Leases, and Product revenues in foreign countries are accounted under ASC 606. For the three months ended March 31, 2018, Electricity segment revenues in foreign countries are all accounted under ASC 840, Leases, and Product revenues in foreign countries are accounted under ASC 606.

(

)

Electricity segment assets include goodwill in the amount of

$20.1

million and

$7.8

million as of

March 31, 2019

and

2018,

respectively. Other segment assets include goodwill in the amount of

$13.5

million as of

March 31, 2018.

goodwill is included in the Other segments assets as of

March 31, 2019.

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

	Three Months Ended March 31,
	2019			2018
		(Dollars in thousands)
Revenue:
Total segment revenue	$	199,038		$	184,023
Intersegment revenue		18,261			24,827
Elimination of intersegment revenue		(18,261	)		(24,827	)
Total consolidated revenue	$	199,038		$	184,023

Operating income:
Operating income	$	53,725		$	54,593
Interest income		293			113
Interest expense, net		(21,223	)		(14,344	)
Derivatives and foreign currency transaction gains (losses)		472			(1,599	)
Income attributable to sale of tax benefits		7,764			7,361
Other non-operating income (expense), net		91			(20	)
Total consolidated income from operations before income taxes and equity in earnings of investees	$	41,122		$	46,104