Note 8 - Business Segments

6 Months Ended

Jun. 30, 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 June 30, 2020:
Revenues from external customers:
United States (1)	$	80,427	$	2,269	$	2,514		$	85,210
Foreign (2)		48,258		41,432		—			89,690
Net revenue from external customers		128,685		43,701		2,514			174,900
Intersegment revenue		—		50,453		—			50,453
Operating income (loss)		45,875		3,803		(1,603	)		48,075
Segment assets at period end (3) (*)		3,150,770		190,474		77,133			3,418,377
* Including unconsolidated investments		84,414		—		—			84,414
Three Months Ended June 30, 2019:
Revenues from external customers:
United States (1)	$	76,931	$	12,532	$	2,956		$	92,419
Foreign (2)		52,148		39,498		—			91,646
Net revenue from external customers		129,079		52,030		2,956			184,065
Intersegment revenue		—		19,167		—			19,167
Operating income (loss)		43,475		5,307		(1,902	)		46,880
Segment assets at period end (3) (*)		2,992,891		128,524		72,366			3,193,781
* Including unconsolidated investments		71,047		—		—			71,047
Six Months Ended June 30, 2020:
Revenues from external customers:
United States (1)	$	172,119	$	2,667	$	4,360		$	179,146
Foreign (2)		99,422		88,445		—			187,867
Net revenue from external customers		271,541		91,112		4,360			367,013
Intersegment revenue		—		59,109		—			59,109
Operating income (loss)		104,505		7,675		(3,048	)		109,132
Segment assets at period end (3) (*)		3,150,770		190,474		77,133			3,418,377
* Including unconsolidated investments		84,414		—		—			84,414
Six Months Ended June 30, 2019:
Revenues from external customers:
United States (1)	$	168,459	$	23,775	$	6,958		$	199,192
Foreign (2)		103,528		80,383		—			183,911
Net revenue from external customers		271,987		104,158		6,958			383,103
Intersegment revenue		—		37,428		—			37,428
Operating income (loss)		95,026		9,559		(3,980	)		100,605
Segment assets at period end (3) (*)		2,992,891		128,524		72,366			3,193,781
* Including unconsolidated investments		71,047		—		—			71,047

(1) Electricity segment revenues in the United States are all accounted under lease accounting except for $15.6 million and $32.4 million in the three and six months ended June 30, 2020, respectively, that are accounted under ASC 606. For the three and six months ended June 30, 2019, Electricity segment revenues in the United States are all accounted under lease accounting except for $12.9 million and $29.9 million, 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 $20.1 million and $20.2 million as of June 30, 2020 and 2019, respectively. No goodwill is included in the Product and ESMS segment assets as of June 30, 2020 and 2019.

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(Dollars in thousands)						(Dollars in thousands)
Revenues:
Total segment revenues	$	174,900		$	184,065		$	367,013		$	383,103
Intersegment revenues		50,453			19,167			59,109			37,428
Elimination of intersegment revenues		(50,453	)		(19,167	)		(59,109	)		(37,428	)
Total consolidated revenues	$	174,900		$	184,065		$	367,013		$	383,103
Operating income:
Operating income	$	48,075		$	46,880		$	109,132		$	100,605
Interest income		441			420			843			713
Interest expense, net		(19,785	)		(21,517	)		(37,058	)		(42,740	)
Derivatives and foreign currency transaction gains (losses)		671			19			1,064			491
Income attributable to sale of tax benefits		5,672			4,637			9,804			12,401
Other non-operating income (expense), net		304			1,027			382			1,118
Total consolidated income before income taxes and equity in income of investees	$	35,378		$	31,466		$	84,167		$	72,588