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Note 9 - Business Segments

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 9 — 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 ("BSAAS"). Under this segment, we provide energy storage, demand response and energy management related services through our Viridity Energy Solutions Inc. ("Viridity") business.

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 September 30, 2019:
Revenues from external customers:
United States⁽¹⁾		$	71,916			$	4,816			$	3,484			$	80,216
Foreign⁽²⁾			52,062				38,221				—				90,283
Net revenue from external customers			123,978				43,037				3,484				170,499
Intersegment revenue			—				20,831				—				20,831
Operating income (loss)			32,362				6,826				(469	)			38,719
Segment assets at period end ^{(3) (*)}			3,050,971				125,762				82,760				3,259,493
* Including unconsolidated investments			73,714				—				—				73,714

Three Months Ended September 30, 2018:
Revenues from external customers:
United States ⁽¹⁾		$	64,905			$	281			$	1,150			$	66,336
Foreign⁽²⁾			51,986				48,158				—				100,144
Net revenue from external customers			116,891			$	48,439				1,150				166,480
Intersegment revenue			—				9,236				—				9,236
Operating income (loss)			20,150				7,300				(1,548	)			25,902
Segment assets at period end ^{(3) (*)}			2,859,354				125,881				74,348				3,059,583
* Including unconsolidated investments			67,739				—				—				67,739

Nine Months Ended September 30, 2019:
Revenues from external customers:
United States ⁽¹⁾		$	240,375			$	28,591			$	10,442			$	279,408
Foreign⁽²⁾			155,590				118,604				—				274,194
Net revenues from external customers			395,965				147,195				10,442				553,602
Intersegment revenues			—				58,259				—				58,259
Operating income (loss)			127,388				16,385				(4,449	)			139,324
Segment assets at period end ^{(3) (*)}			3,050,971				125,762				82,760				3,259,493
* Including unconsolidated investments			73,714				—				—				73,714

Nine Months Ended September 30, 2018:
Revenues from external customers:
United States ⁽¹⁾		$	221,727			$	502			$	5,217			$	227,446
Foreign⁽²⁾			149,832				151,524				—				301,356
Net revenues from external customers			371,559				152,026				5,217				528,802
Intersegment revenues			—				45,516				—				45,516
Operating income (loss)			94,024				27,614				(4,510	)			117,128
Segment assets at period end			2,859,354				125,881				74,348				3,059,583
* Including unconsolidated investments			67,739				—				—				67,739

	⁽¹⁾	Electricity segment revenues in the United States are all accounted under ASC 842, Leases, except for $13.5 million and $44.0 million in the three and nine months ended September 30, 2019 that are accounted under ASC 606. For the three and nine months ended September 30, 2018, Electricity segment revenues in the United States are all accounted under ASC 840, Leases, except for $5.8 million and $17.7 million that are accounted under ASC 606.
	⁽²⁾	For the three and nine months ended September 30, 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 and nine months ended September 30, 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.

⁽³⁾

Electricity segment assets include goodwill in the amount of $19.9 million and $26.7 million as of September 30, 2019 and 2018, respectively. Other segment assets include goodwill in the amount of $13.5 million as of September 30, 2018. No goodwill is included in the Other segment assets as of September 30, 2019.

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,
		2019				2018				2019				2018


Revenue:
Total segment revenue		$	170,499			$	166,480			$	553,602			$	528,802
Intersegment revenue			20,831				9,236				58,259				45,516
Elimination of intersegment revenue			(20,831	)			(9,236	)			(58,259	)			(45,516	)
Total consolidated revenue		$	170,499			$	166,480			$	553,602			$	528,802

Operating income:
Operating income		$	38,719			$	25,902			$	139,324			$	117,128
Interest income			482				214				1,195				516
Interest expense, net			(20,076	)			(18,700	)			(62,816	)			(48,890	)
Derivatives and foreign currency transaction gains (losses)			205				(383	)			696				(2,511	)
Income attributable to sale of tax benefits			4,056				4,066				16,457				14,983
Other non-operating income (expense), net			244				309				1,362				7,662
Total consolidated income before income taxes and equity in income of investees		$	23,630			$	11,408			$	96,218			$	88,888