Note 9 - Business Segments

3 Months Ended

Mar. 31, 2021

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 Energy Storage segment. 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 ("REG") 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 ("EPC") of geothermal and recovered energy-based power plants.

• Under the Energy Storage segment, the Company provides energy storage and related services as well as services relating to the engineering, procurement, construction, operation and maintenance of energy storage units. To better reflect the significant business activities under this reporting segment, the Company has renamed this reporting segment "Energy Storage" starting with the fourth quarter of 2020. There was no change to the business units reported under this segment.

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			Energy Storage			Consolidated
	(Dollars in thousands)
Three Months Ended March 31, 2021:
Revenues from external customers:
United States (1)	$	98,976	$	1,853		$	12,721		$	113,550
Foreign (2)		46,012		6,790			—			52,802
Net revenue from external customers		144,988		8,643			12,721			166,352
Intersegment revenues (4)		—		25,334			—			—
Operating income (loss)		47,749		(1,211	)		3,351			49,889
Segment assets at period end (3) (*)		3,577,745		140,039			141,429			3,859,213
* Including unconsolidated investments		104,519		—			—			104,519
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 revenues (4)		—		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

(1) Electricity segment revenues in the United States are all accounted under lease accounting except for $19.2 million and $16.8 million in the three months ended March 31, 2021 and 2020, respectively, that are accounted under ASC 606. Product and Energy Storage 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 $20.0 million as of March 31, 2021 and 2020, respectively. Energy Storage segment assets include goodwill in the amount of $4.1 million and none as of March 31, 2021 and 2020, respectively. No goodwill is included in the Product segment assets as of March 31, 2021 and 2020.

(4) Intersegment revenue are fully eliminated in consolidation.

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

	Three Months Ended March 31,
	2021			2020
	(Dollars in thousands)
Revenues:
Total segment revenues	$	166,352		$	192,113
Intersegment revenues		25,334			8,656
Elimination of intersegment revenues		(25,334	)		(8,656	)
Total consolidated revenues	$	166,352		$	192,113
Operating income:
Operating income	$	49,889		$	61,057
Interest income		263			402
Interest expense, net		(19,016	)		(17,273	)
Derivatives and foreign currency transaction gains (losses)		(16,866	)		393
Income attributable to sale of tax benefits		6,355			4,132
Other non-operating income (expense), net		(331	)		78
Total consolidated income before income taxes and equity in income of investees	$	20,294		$	48,789