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Note 10 - Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2022

Intangible Assets Disclosure [Text Block]

NOTE 10 — INTANGIBLE ASSETS AND GOODWILL

As of December 31, 2022 and 2021, intangible assets amounted to $333.8 million and $363.3 million, respectively, net of accumulated amortization of $122.8 million and $110.1 million, respectively. Intangible assets are mainly related to the Company’s PPAs acquired in business combinations and its energy storage activities, .

The following table summarizes the information related to the Company's intangible assets as of December 31, 2022 and 2021:

	December 31, 2022					December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
	(Dollars in thousands)					(Dollars in thousands)
Amortized intangible assets
Electricity segment	$	402,340	$	(104,601	)	$	417,479	$	(96,250	)
Storage segment		54,310		(18,204	)		55,973		(13,888	)
Total	$	456,650	$	(122,805	)	$	473,452	$	(110,138	)

Amortization expense for the years ended December 31, 2022, 2021 and 2020 amounted to $27.2 million, $21.7 million and $14.4 million, respectively.

There were no additions to intangible assets during 2022. Additions to intangible assets during 2021 and 2020 amounted to $192.5 million and $20.4 million, respectively. The additions in 2021 and 2020 relate to the geothermal assets purchase transaction from TG Geothermal Portfolio, LLC and the Pomona acquisition, respectively. Further information on the TG Geothermal Portfolio, LLC is described under Note 2 to the consolidated financial statements.

During 2022, the Company wrote-off specific certain customer related assets in the total amount of $0.9 million. The Company tested the intangible assets for recoverability in December 2022, 2021 and 2020 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 2022, 2021 and 2020, except as noted above.

Estimated future amortization expense for the intangible assets as of December 31, 2022 is as follows:

	(Dollars in thousands)
Year ending December 31:
2023	$	27,191
2024		26,229
2025		25,911
2026		24,056
2027		22,176
Thereafter		208,282
Total	$	333,845

Goodwill

Goodwill amounting to $90.3 million and $90.0 million as of December 31, 2022 and 2021, 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 2022, 2021 and 2020, 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, 2022 and 2021 were as follows:

	2022		2021
	(Dollars in thousands)
Goodwill as of January 1,	$	89,954	$	24,566
Goodwill acquired ⁽¹⁾		—		65,441
Translation differences		371		(53	)
Goodwill as of December 31,	$	90,325	$	89,954

⁽¹⁾ Goodwill acquired in 2021 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.