Note 9 - Business Segments

6 Months Ended

Jun. 30, 2022

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 foreign countries, and sells 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 provides 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.

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, 2022:
Revenues from external customers:
United States (1)	$	105,193	$	1,134		$	7,491		$	113,818
Foreign (2)		46,002		9,258			—			55,260
Net revenue from external customers		151,195		10,392			7,491			169,078
Intersegment revenues (4)		—		22,097			—			—
Operating income (loss)		40,466		(2,276	)		417			38,607
Segment assets at period end (3) (*)		4,222,340		122,221			197,415			4,541,976
* Including unconsolidated investments		114,699		—			—			114,699
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
Six Months Ended June 30, 2022:
Revenues from external customers:
United States (1)	$	221,302	$	1,669		$	14,048		$	237,019
Foreign (2)		92,418		23,351			—			115,769
Net revenue from external customers		313,720		25,020			14,048			352,788
Intersegment revenues (4)		—		43,000			—			—
Operating income (loss)		88,041		(3,851	)		(505	)		83,685
Segment assets at period end (3) (*)		4,222,340		122,221			197,415			4,541,976
* Including unconsolidated investments		114,699		—			—			114,699
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

(1) Electricity segment revenues in the United States are all accounted under lease accounting except for $23.2 million and $46.0 million for the three and six months ended June 30, 2022, and $20.8 and $40.0 million for the three and six months ended June 30, 2021, 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 $85.6 million and $20.2 million as of June 30, 2022 and 2021, respectively. Energy Storage segment assets include goodwill in the amount of $4.6 million and $4.6 as of June 30, 2022 and 2021, respectively. No goodwill is included in the Product segment assets as of June 30, 2022 and 2021.

(4) Intersegment revenues 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,
	2022			2021			2022			2021
	(Dollars in thousands)						(Dollars in thousands)
Revenues:
Total segment revenues	$	169,078		$	146,901		$	352,788		$	313,253
Intersegment revenues		22,097			51,038			43,000			76,372
Elimination of intersegment revenues		(22,097	)		(51,038	)		(43,000	)		(76,372	)
Total consolidated revenues	$	169,078		$	146,901		$	352,788		$	313,253
Operating income:
Operating income	$	38,607		$	28,619		$	83,685		$	78,508
Interest income		179			808			521			1,071
Interest expense, net		(20,418	)		(18,626	)		(41,499	)		(37,642	)
Derivatives and foreign currency transaction gains (losses)		(3,998	)		658			(3,738	)		(16,208	)
Income attributable to sale of tax benefits		9,527			7,420			17,232			13,775
Other non-operating income (expense), net		(1,260	)		(21	)		(1,185	)		(352	)
Total consolidated income before income taxes and equity in income of investees	$	22,637		$	18,858		$	55,016		$	39,152