Note 18 - Business Segments

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 18 — 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 power plants in the United States and geothermal power plants in foreign countries, and sell the electricity generated by those power plants.

• 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 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. 

Transfer prices between the operating segments were determined 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, as further described under Note 1 to the consolidated financial statements, the Company's disaggregated revenues from contracts with customers as required by ASC 606:

	Electricity		Product			Energy Storage			Consolidated
	(Dollars in thousands)
Year Ended December 31, 2021:
Revenues from external customers:
United States (1)	$	404,303	$	5,414		$	30,393		$	440,110
Foreign (2)		181,468		41,506			—			222,974
Net revenues from external customers		585,771		46,920			30,393			663,084
Intersegment revenues		—		129,589			—			—
Depreciation and amortization expense		164,490		7,719			10,763			182,972
Operating income (loss)		171,550		(3,641	)		1,448			169,357
Segment assets at period end (3) (*)		4,142,341		113,817			169,520			4,425,678
Expenditures for long-lived assets		383,307		10,687			25,278			419,272
* Including unconsolidated investments		105,886		—			—			105,886
Year Ended December 31, 2020:
Revenues from external customers:
United States (1)		341,399		5,800			15,824			363,023
Foreign (2)		199,994		142,325			—			342,319
Net revenues from external customers	$	541,393	$	148,125		$	15,824		$	705,342
Intersegment revenues		—		113,200			—			—
Depreciation and amortization expense		144,357		6,010			6,245			156,612
Operating income (loss)		205,256		13,145			(4,388	)		214,013
Segment assets at period end (3) (*)		3,607,384		145,911			135,692			3,888,987
Expenditures for long-lived assets		267,843		18,011			34,884			320,738
* Including unconsolidated investments		98,217		—			—			98,217
Year Ended December 31, 2019:
Revenues from external customers:
United States (1)		333,797		30,562			13,597			377,956
Foreign (2)		206,536		160,447			1,105			368,088
Net revenues from external customers		540,333		191,009			14,702			746,044
Intersegment revenues		—		84,614			—			—
Depreciation and amortization expense		138,426		5,308			5,027			148,761
Operating income (loss)		177,192		23,180			(6,576	)		193,796
Segment assets at period end (3) (*)		3,044,909		126,018			79,567			3,250,494
Expenditures for long-lived assets		259,898		9,156			10,932			279,986
* Including unconsolidated investments		81,140		—			—			81,140

⁽¹⁾ Electricity segment revenues in the United States are all accounted under lease accounting, except for $83.4 million, $68.1 million and $61.3 million for the years 2021, 2020 and 2019, which are accounted under ASC 606. Product and Energy Storage segment revenues in the United States are accounted under ASC 606, as further described under Note 1 to the consolidated financial statements.

⁽²⁾ Electricity segment revenues in foreign countries are all accounted under lease accounting. Product and Energy Storage segment revenues in foreign countries are accounted under ASC 606 as further described under Note 1 to the consolidated financial statements.

⁽³⁾ Electricity segment assets include goodwill in the amount of $85.3 million, $20.5 million and $20.1 million as of December 31, 2021, 2020 and 2019, respectively, $65.4 million of which was added in the third quarter of 2021 as a result of the Terra-Gen Transaction as further described under Note 2 to the consolidated financial statements. Energy Storage segment assets include goodwill in the amount of $4.6 million, $4.1 million and $0.0 million as of December 31, 2021, 2020 and 2019, respectively. No goodwill is included in the Product segment assets as of December 31, 2021, 2020 and 2019.

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

	Year Ended December 31,
	2021			2020			2019
	(Dollars in thousands)
Revenues:
Total segment revenues	$	663,084		$	705,342		$	746,044
Intersegment revenues		129,589			113,200			84,614
Elimination of intersegment revenues		(129,589	)		(113,200	)		(84,614	)
Total consolidated revenues	$	663,084		$	705,342		$	746,044
Operating income (expense):
Operating income	$	169,357		$	214,013		$	193,796
Interest income		2,124			1,717			1,515
Interest expense, net		(82,658	)		(77,953	)		(80,384	)
Derivatives and foreign currency transaction gains (losses)		(14,720	)		3,802			624
Income attributable to sale of tax benefits		29,582			25,720			20,872
Other non-operating income (expense), net		(134	)		1,418			880
Total consolidated income before income taxes and equity in earnings (losses) of investees	$	103,551		$	168,717		$	137,303

The Company sells electricity, products and energy storage services mainly to the geographical areas set forth below based on the location of the customer. The following tables present certain data by geographic area:

	Year Ended December 31,
	2021		2020		2019
	(Dollars in thousands)
Revenues from external customers attributable to:
United States	$	440,110	$	363,023	$	377,956
Indonesia		8,056		—		0
Kenya		102,844		115,474		121,661
Turkey		2,723		65,535		88,938
Chile		7,035		32,418		25,540
Guatemala		26,868		27,391		28,624
New Zealand		6,770		34,985		31,222
Honduras		35,233		35,197		34,446
Other foreign countries		33,445		31,319		37,657
Consolidated total	$	663,084	$	705,342	$	746,044

	Year Ended December 31,
	2021		2020		2019
	(Dollars in thousands)
Long-lived assets (primarily power plants and related assets) located in:
United States	$	2,527,429	$	2,084,021	$	1,870,335
Kenya		297,427		289,266		284,526
Other foreign countries		217,371		232,953		224,676
Consolidated total	$	3,042,227	$	2,606,240	$	2,379,537

The following table presents revenues from major customers:

	Year Ended December 31,
	2021				2020				2019
	Revenues		%		Revenues		%		Revenues		%
	(Dollars in thousands)				(Dollars in thousands)				(Dollars in thousands)
Southern California Public Power (1)	$	157,318		23.7	$	145,450		20.6	$	133,725		17.9
Sierra Pacific Power Company and Nevada Power Company (1)(2)		120,206		18.1		123,734		17.5		125,486		16.8
KPLC (1)		102,844		15.5		115,474		16.4		121,661		16.3

^{(1 )}Revenues reported in Electricity segment.

⁽²⁾ Subsidiaries of NV Energy, Inc.