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Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Effect of COVID-19 Pandemic, Policy [Text Block]

COVID-19 consideration

 

In March 2020, the World Health Organization declared the outbreak of the novel coronavirus ("COVID-19") a pandemic. At the same time, countries around the world have ordered companies to limit or suspend operations and imposed many travel restrictions which resulted in a sudden decline in global economic activity and an increase in market volatility. The Company has implemented significant measures in order to meet government requirements and preserve the health and safety of its employees by working remotely where possible and applying separate shifts in its power plants, manufacturing facilities and other locations while trying to continue operations at close to full capacity in all locations. Also, the Company focused efforts to adjusting its operations to mitigate the impact of COVID-19 including optimizing its global supply chain, and enhancing its liquidity profile. While the extent and duration of the economic downturn from the COVID-19 pandemic remains unclear, the Company has considered, among other things, whether the global operational disruptions indicate a change in circumstances that may trigger asset impairments and whether it needs to revisit accounting estimates and projections or its expectations about collectability of receivables. Additionally, the Company has considered the potential impacts on its fair value disclosures and on its internal control over financial reporting. During the quarter, the Company's power plants, manufacturing and storage facilities have been operating at close to full capacity and there was no significant direct impact on the Company's operations as a result of the economic downturn. While significant uncertainty still exists concerning the magnitude of the impact and duration of the COVID-19 pandemic on the global economy, the Company has determined that there was no triggering event for an impairment with respect to any of its assets nor has there been an adverse change in the probability related to the collectability of its receivables. The Company continues to assess the potential impact of the global economic situation on its consolidated financial statements.

 

Public Utilities, Policy [Policy Text Block]

Puna

 

On May 3, 2018, the Kilauea volcano located in close proximity to the Company's 38 MW geothermal power plant in the Puna district of Hawaii's Big Island erupted following a significant increase in seismic activity in the area. Before it stopped flowing, the lava covered the wellheads of three geothermal wells, monitoring wells and the substation of the Puna complex and an adjacent warehouse that stored a drilling rig that was also consumed by the lava. The insurance policy coverage for property and business interruption is provided by a consortium of insurers. All the insurers accepted and started paying for the costs to rebuild the destroyed substation and during March and April of 2020, the Company received an additional $3.0 million of such proceeds. However, only some of the insurers accepted that the business interruption coverage started in May 2018 and, during the first quarter of 2020, the Company recognized income of $$4.9 million from such additional cash proceeds which were included in cost of revenues up to the amount covering the related costs and the remainder in general and administrative expenses in the consolidated statements of operations and comprehensive income for the three months ended March 31, 2020. The Company has filed a lawsuit against those insurers that have not accepted its business interruption claim.  

 

As of May 2020, reconstruction efforts at Puna continue. Permits that are required for the construction and operation of the substation were received. HELCO continues with its efforts to complete the upgrade of the transmission network and is waiting for PUC approval. On the field side, the Company completed drilling of two production wells, one of which was blocked immediately after its flow test while the other is ready to be connected to the power plant and is expected to enable partial production by the beginning of the fourth quarter. The Company continues its field recovery work, which includes redrilling and cleanouts of existing wells and drilling of new wells and expect gradual increase of production to 29 MW by the end of the year, assuming all permits are received, the transmission network upgrade is complete and field recovery is successfully achieved.

 

In December 2019, PGV and HELCO's subsidiary reached an agreement on an amended and restated PPA for dispatchable geothermal power sold from the Puna complex. The new PPA extends the term until 2052 with an increased contract capacity of 46MW and a fixed price with no escalation, regardless of changes to fossil fuel pricing. The COD of the new 8MW plant is expected during 2022. The existing PPA remains in effect, with current terms, until the expansion is completed, and the new plant reaches its COD.

 

The Company continues to assess the accounting implications of this event on the assets and liabilities on its consolidated balance sheets and whether an impairment will be required. Any significant damage to the geothermal resource or continued shut-down following the lava event at the Puna facilities could have an adverse impact on the power plant's electricity generation and availability, which in turn could have a material adverse impact on the Company's business and results of operations. 

 

Exploratory Drilling Costs Capitalization and Impairment, Policy [Policy Text Block]

Write-offs of unsuccessful exploration activities

 

There were no write-offs of unsuccessful exploration activities for the three months ended March 31, 2020 and 2019.

 

Cash and Cash Equivalents, Policy [Policy Text Block]

Reconciliation of Cash and cash equivalents and restricted cash and cash equivalents

 

The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents as reported on the balance sheet to the total of the same amounts shown on the statement of cash flows:

 

   

March 31,

   

December 31,

   

March 31,

 
   

2020

   

2019

   

2019

 
   

(Dollars in thousands)

 

Cash and cash equivalents

  $ 231,149     $ 71,173     $ 79,366  

Restricted cash and cash equivalents

    88,627       81,937       93,098  

Total Cash and cash equivalents and restricted cash and cash equivalents

  $ 319,776     $ 153,110     $ 172,464  

 

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of credit risk

 

Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of temporary cash investments and accounts receivable.

 

The Company places its temporary cash investments with high credit quality financial institutions located in the United States (“U.S.”) and in foreign countries. At March 31, 2020 and December 31, 2019, the Company had deposits totaling $14.4 million and $12.9 million, respectively, in ten U.S. financial institutions that were federally insured up to $250,000 per account. At March 31, 2020 and December 31, 2019, the Company’s deposits in foreign countries amounted to approximately $228.8 million and $84.8 million, respectively.

 

At March 31, 2020 and December 31, 2019, accounts receivable related to operations in foreign countries amounted to approximately $135.1 million and $118.8 million, respectively. At March 31, 2020 and December 31, 2019, accounts receivable from the Company’s primary customers, which each accounted for revenues in excess of 10% of total consolidated revenues for the three months ended March 31, 2020 or 2019,  amounted to approximately 50% and 58% of the Company’s trade receivables, respectively.

 

Sierra Pacific Power Company and Nevada Power Company (subsidiaries of NV Energy, Inc.) accounted for 19.2% and 18.3% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively.

 

Southern California Public Power Authority (“SCPPA”) accounted for 18.7% and 19.4% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively.

 

Kenya Power and Lighting Co. Ltd. ("KPLC") accounted for 15.4% and 15.3% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively.

 

The Company has historically been able to collect on substantially all of its receivable balances. As of March 31, 2020, the amount overdue from KPLC was $38.6 million of which $8.0 million was paid in April 2020. These amounts represent an average of 61 days overdue. The Company believes it will be able to collect all past due amounts in Kenya. This belief is based on the fact that in addition to KPLC's obligations under its power purchase agreement, the Company holds a support letter from the Government of Kenya that covers  certain cases of KPLC non-payment (such as where caused by government actions/political events).

 

In Honduras, the Company has been able to collect current charges from Empresa Nacional de Energía Eléctrica (“ENEE”) starting in May 2019. However, due to the restrictive measures related to the COVID-19 pandemic which were implemented recently in Honduras, the Company may experience delays in collection as, due to a local closure, it was unable to timely submit to ENEE the charge relating to March 2020. As of March 31, 2020, the total amount overdue from ENEE was $20.1 million which relates to the period from October 2018 to April 2019, none of which has been paid to date. In view of the ongoing Honduran government support undertaking, the Company believes it will be able to collect past due amounts in Honduras.

 

The Company may experience delays in collection in other locations due to the restrictive measures related to the COVID-19 pandemic which were imposed globally at different extents.

 

Revenue [Policy Text Block]

Revenues from Contracts with Customers

 

Contract assets related to our Product segment reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities related to the Company's Product segment reflect payments received in advance of the satisfaction of performance under the contract. The Company receives payments from customers based on the terms established in the contracts. Total contract assets and contract liabilities as of March 31, 2020 and December 31, 2019 are as follows.

 

   

March 31,

   

December 31,

 
   

2020

   

2019

 
   

(Dollars in thousands)

 

Contract assets (*)

  $ 22,305     $ 38,365  

Contract liabilities (*)

    (5,937 )     (2,755 )

Contract assets, net

  $ 16,368     $ 35,610  

 

(*) Contract assets and contract liabilities are presented as "Costs and estimated earnings in excess of billings on uncompleted contracts" and "Billings in excess of costs and estimated earnings on uncompleted contracts", respectively, on the consolidated balance sheets. The contract liabilities balance at the beginning of the year was fully recognized as product revenues during the three months ended March 31, 2020 as a result of performance obligations satisfied.

 

On March 31, 2020, the Company had approximately $96.5 million of remaining performance obligations not yet satisfied or partly satisfied related to our Product segment. The Company expects to recognize approximately 100% of this amount as Product revenues during the next 24 months.

 

Lessor, Leases [Policy Text Block]

Leases in which the Company is a lessor

 

The table below presents the lease income recognized as a lessor:

 

   

Three Months Ended March 31,

 
   

2020

   

2019

 
   

(Dollars in thousands)

 

Lease income relating to lease payments of operating leases

  $ 126,076     $ 125,908  

Total

  $ 126,076     $ 125,908