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Note 10 - Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2021

Intangible Assets Disclosure [Text Block]

NOTE 10 — INTANGIBLE ASSETS AND GOODWILL

Intangible assets amounting to $363.3 million and $194.4 million consist mainly of the Company’s PPAs acquired in business combinations and its energy storage activities, net of accumulated amortization of $110.1 million and $89.4 million as of December 31, 2021 and 2020, respectively.

The following table summarizes the information related to the Company's intangible assets as of December 31, 2021 and 2020:

	December 31, 2021					December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
	(Dollars in thousands)					(Dollars in thousands)
Amortized intangible assets
Electricity segment	$	417,479	$	(96,250	)	$	227,811	$	(80,622	)
Storage segment		55,973		(13,888	)		55,973		(8,741	)
Total	$	473,452	$	(110,138	)	$	283,784	$	(89,363	)

Amortization expense for the years ended December 31, 2021, 2020 and 2019 amounted to $21.7 million, $14.4 million and $13.3 million, respectively.

Additions to intangible assets for the years ended December 31, 2021, 2020 and 2019, amounted to $192.5 million, $20.4 million and $0.0 million, respectively. The additions to intangible assets in 2021 and 2020 relate to the geothermal assets purchase transaction from TG Geothermal Portfolio, LLC and the Pomona acquisition, respectively, as further described under Note 2 to the consolidated financial statements. The Company tested the intangible assets for recoverability in December 2021, 2020 and 2019 and assessed whether there were events or change in circumstances which may indicate that the intangible assets are not recoverable. The Company's assessment resulted in that there were no write-offs of intangible assets in 2021, 2020 and 2019.

Estimated future amortization expense for the intangible assets as of December 31, 2021 is as follows:

	(Dollars in thousands)
Year ending December 31:
2022	$	27,429
2023		27,359
2024		26,398
2025		26,079
2026		25,368
Thereafter		230,681
Total	$	363,314

Goodwill

Goodwill amounting to $90.0 million and $24.6 million as of December 31, 2021 and 2020, respectively, represents the excess of the fair value of consideration transferred in business combination transactions over the fair value of tangible and intangible assets acquired, net of the fair value of liabilities assumed and non-controlling interest (as applicable) in the acquisitions. For the years 2021, 2020 and 2019, the Company's impairment assessment of goodwill related to its reporting units resulted in no impairment.

Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2021 and 2020 were as follows:

	2021			2020
	(Dollars in thousands)
Goodwill as of January 1,	$	24,566		$	20,140
Goodwill acquired ⁽¹⁾		65,441			4,107
Translation differences		(53	)		319
Goodwill as of December 31,	$	89,954		$	24,566

⁽¹⁾ Goodwill acquired in 2021 and 2020 is related to the purchase of geothermal assets from TG Geothermal Portfolio, LLC and the Pomona storage facility purchase transaction, respectively, as further described in Note 2 to the consolidated financial statements.