Note 8 - Business Segments

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 8 — BUSINESS SEGMENTS

The Company has three reporting segments: the Electricity segment, the Product segment and the Energy Storage and Management Services segment ("ESMS"). These segments are managed and reported separately as each offers different products and serves different markets.

• Under the Electricity segment the Company builds, owns and operates geothermal, solar PV and recovered energy-based power plants in the United States and geothermal power plants in other countries around the world and sell the electricity they generate.

• Under the Product segment, the Company designs, manufactures and sells equipment for geothermal and recovered energy-based electricity generation and remote power units and provide services relating to the engineering, procurement and construction of geothermal and recovered energy-based power plants.

• Under the ESMS segment the Company provides energy storage, demand response and energy management related services as well as services relating to the engineering, procurement, construction, operation and maintenance of energy storage units mainly through its 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, including the Company's disaggregated revenues from contracts with customers:

	Electricity		Product		ESMS			Consolidated
	(Dollars in thousands)
Three Months Ended March 31, 2020:
Revenues from external customers:
United States (1)	$	91,692	$	398	$	1,846		$	93,936
Foreign (2)		51,164		47,013		—			98,177
Net revenue from external customers		142,856		47,411		1,846			192,113
Intersegment revenue		—		8,656		—			8,656
Operating income (loss)		58,630		3,872		(1,445	)		61,057
Segment assets at period end (3) (*)		3,139,603		230,831		75,179			3,445,613
* Including unconsolidated investments		76,008		—		—			76,008
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 revenue from external customers		142,908		52,128		4,002			199,038
Intersegment revenue		—		18,261		—			18,261
Operating income		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

(1) Electricity segment revenues in the United States are all accounted under lease accounting except for $16.8 million and $17.0 million in the three months ended March 31, 2020 and 2019, respectively, that are accounted under ASC 606. Product and ESMS segment revenues in the United States are accounted under ASC 606.

(2) Electricity segment revenues in foreign countries are all accounted under lease accounting. Product segment revenues in foreign countries are accounted under ASC 606.

(3) Electricity segment assets include goodwill in the amount of $20.0 million and $20.1 million as of March 31, 2020 and 2019, respectively. No goodwill is included in the Product and ESMS segment assets as of March 31, 2020 and 2019. 

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

	Three Months Ended March 31,
	2020			2019
	(Dollars in thousands)
Revenues:
Total segment revenues	$	192,113		$	199,038
Intersegment revenues		8,656			18,261
Elimination of intersegment revenues		(8,656	)		(18,261	)
Total consolidated revenues	$	192,113		$	199,038
Operating income:
Operating income	$	61,057		$	53,725
Interest income		402			293
Interest expense, net		(17,273	)		(21,223	)
Derivatives and foreign currency transaction gains (losses)		393			472
Income attributable to sale of tax benefits		4,132			7,764
Other non-operating income (expense), net		78			91
Total consolidated income before income taxes and equity in income of investees	$	48,789		$	41,122