Note 9 - Business Segments

6 Months Ended

Jun. 30, 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 renamed this reporting segment to be "Energy Storage" starting 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 June 30, 2021:
Revenues from external customers:
United States (1)	$	87,564	$	647		$	5,627		$	93,838
Foreign (2)		46,300		6,763			—			53,063
Net revenue from external customers		133,864		7,410			5,627			146,901
Intersegment revenues (4)		—		51,038			—			—
Operating income (loss)		30,018		(427	)		(972	)		28,619
Segment assets at period end (3) (*)		3,530,256		122,868			165,426			3,818,550
* Including unconsolidated investments		103,890		—			—			103,890
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 revenues (4)		—		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
Six Months Ended June 30, 2021:
Revenues from external customers:
United States (1)	$	186,540	$	2,500		$	18,348		$	207,388
Foreign (2)		92,312		13,553			—			105,865
Net revenue from external customers		278,852		16,053			18,348			313,253
Intersegment revenues (4)		—		76,372			—			—
Operating income (loss)		77,767		(1,638	)		2,379			78,508
Segment assets at period end (3) (*)		3,530,256		122,868			165,426			3,818,550
* Including unconsolidated investments		103,890		—			—			103,890
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 revenues (4)		—		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

(1) Electricity segment revenues in the United States are all accounted under lease accounting except for $20.8 million and $40.0 million for the three and six months ended June 30, 2021, respectively, and $15.6 and $32.4 million for the three and six months ended June 30, 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 $20.2 million and $20.1 million as of June 30, 2021 and 2020, respectively. Energy Storage segment assets include goodwill in the amount of $4.6 million and none as of June 30, 2021 and 2020, respectively. No goodwill is included in the Product segment assets as of June 30, 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 June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
	(Dollars in thousands)						(Dollars in thousands)
Revenues:
Total segment revenues	$	146,901		$	174,900		$	313,253		$	367,013
Intersegment revenues		51,038			50,453			76,372			59,109
Elimination of intersegment revenues		(51,038	)		(50,453	)		(76,372	)		(59,109	)
Total consolidated revenues	$	146,901		$	174,900		$	313,253		$	367,013
Operating income:
Operating income	$	28,619		$	48,075		$	78,508		$	109,132
Interest income		808			441			1,071			843
Interest expense, net		(18,626	)		(19,785	)		(37,642	)		(37,058	)
Derivatives and foreign currency transaction gains (losses)		658			671			(16,208	)		1,064
Income attributable to sale of tax benefits		7,420			5,672			13,775			9,804
Other non-operating income (expense), net		(21	)		304			(352	)		382
Total consolidated income before income taxes and equity in income of investees	$	18,858		$	35,378		$	39,152		$	84,167