Note 9 - Business Segments

9 Months Ended

Sep. 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 in 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 September 30, 2021:
Revenues from external customers:
United States (1)	$	98,550	$	1,541		$	5,664		$	105,755
Foreign(2)		44,101		8,986			—			53,087
Net revenue from external customers		142,651		10,527			5,664			158,842
Intersegment revenues (4)		—		14,147			—			—
Operating income (loss)		38,409		(1,115	)		(1,306	)		35,988
Segment assets at period end (3) (*)		4,064,679		125,167			169,520			4,359,366
* Including unconsolidated investments		109,725		—			—			109,725
Three Months Ended September 30, 2020:
Revenues from external customers:
United States (1)	$	73,180	$	435		$	5,662		$	79,277
Foreign(2)		50,480		29,190			—			79,670
Net revenue from external customers		123,660		29,625			5,662			158,947
Intersegment revenues (4)		—		36,839			—			—
Operating income (loss)		50,847		1,285			(446	)		51,686
Segment assets at period end(3) (*)		3,236,631		148,106			136,210			3,520,947
* Including unconsolidated investments		91,277		—			—			91,277
Nine Months Ended September 30, 2021:
Revenues from external customers:
United States (1)	$	285,090	$	4,041		$	24,012		$	313,143
Foreign (2)		136,413		22,539			—			158,952
Net revenue from external customers		421,503		26,580			24,012			472,095
Intersegment revenues (4)		—		90,519			—			—
Operating income (loss)		116,176		(2,753	)		1,073			114,496
Segment assets at period end(3) (*)		4,064,679		125,167			169,520			4,359,366
* Including unconsolidated investments		109,725		—			—			109,725
Nine Months Ended September 30, 2020:
Revenues from external customers:
United States (1)	$	245,299	$	1,412		$	10,022		$	256,733
Foreign (2)		149,902		119,325			—			269,227
Net revenue from external customers		395,201		120,737			10,022			525,960
Intersegment revenues (4)		—		95,948			—			—
Operating income (loss)		155,352		8,960			(3,494	)		160,818
Segment assets at period end (3) (*)		3,236,631		148,106			136,210			3,520,947
* Including unconsolidated investments		91,277		—			—			91,277

(1) Electricity segment revenues in the United States are all accounted under lease accounting except for $19.0 million and $59.0 million for the three and nine months ended September 30, 2021, respectively, and $15.0 and $47.4 million for the three and nine months ended September 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 $86.7 million and $20.1 million as of September 30, 2021 and 2020, respectively, $66.6 million of which were added in the third quarter of 2021 as a result of the geothermal asset purchase transaction as further detailed under Note 1 to the condensed consolidated financial statements. Energy Storage segment assets include goodwill in the amount of $4.6 million and $3.5 as of September 30, 2021 and 2020, respectively. No goodwill is included in the Product segment assets as of September 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 September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(Dollars in thousands)						(Dollars in thousands)
Revenues:
Total segment revenues	$	158,842		$	158,947		$	472,095		$	525,960
Intersegment revenues		14,147			36,839			90,519			95,948
Elimination of intersegment revenues		(14,147	)		(36,839	)		(90,519	)		(95,948	)
Total consolidated revenues	$	158,842		$	158,947		$	472,095		$	525,960
Operating income:
Operating income	$	35,988		$	51,686		$	114,496		$	160,818
Interest income		519			626			1,590			1,469
Interest expense, net		(22,230	)		(21,756	)		(59,872	)		(58,814	)
Derivatives and foreign currency transaction gains (losses)		(21	)		1,047			(16,229	)		2,111
Income attributable to sale of tax benefits		7,879			7,014			21,654			16,818
Other non-operating income (expense), net		44			961			(308	)		1,343
Total consolidated income before income taxes and equity in income of investees	$	22,179		$	39,578		$	61,331		$	123,745