Note 8 - Business Segments

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 8 — 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 ("REG") 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 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.

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 March 31, 2023:
Revenues from external customers:
United States (1)	$	122,411	$	1,441		$	4,880		$	128,732
Foreign (2)		47,899		8,601			—			56,500
Net revenue from external customers		170,310		10,042			4,880			185,232
Intersegment revenues (4)		—		7,772			—			—
Operating income (loss)		57,008		(1,505	)		(2,337	)		53,166
Segment assets at period end (3) (*)		4,648,303		161,428			205,539			5,015,270
* Including unconsolidated investments		119,185		—			—			119,185
Three Months Ended March 31, 2022:
Revenues from external customers:
United States (1)	$	116,109	$	535		$	6,557		$	123,201
Foreign (2)		46,416		14,093			—			60,509
Net revenue from external customers		162,525		14,628			6,557			183,710
Intersegment revenues (4)		—		20,903			—			—
Operating income (loss)		47,575		(1,575	)		(922	)		45,078
Segment assets at period end (3) (*)		4,093,759		140,957			179,473			4,414,189
* Including unconsolidated investments		112,522		—			—			112,522

(1) Electricity segment revenues in the United States are all accounted under lease accounting except for $32.7 million for the three months ended March 31, 2023, and $22.8 million for the three months ended March 31, 2022, 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 $85.8 million and $86.0 million as of March 31, 2023 and 2022, respectively. Energy Storage segment assets include goodwill in the amount of $4.6 million and $4.6 million as of March 31, 2023 and 2022, respectively. No goodwill is included in the Product segment assets as of March 31, 2023 and 2022.

(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 March 31,
	2023			2022
	(Dollars in thousands)
Revenues:
Total segment revenues	$	185,232		$	183,710
Intersegment revenues		7,772			20,903
Elimination of intersegment revenues		(7,772	)		(20,903	)
Total consolidated revenues	$	185,232		$	183,710
Operating income:
Operating income	$	53,166		$	45,078
Interest income		1,851			342
Interest expense, net		(23,631	)		(21,081	)
Derivatives and foreign currency transaction gains (losses)		(1,937	)		260
Income attributable to sale of tax benefits		12,566			7,705
Other non-operating income, net		60			75
Total consolidated income before income taxes and equity in income of investees	$	42,075		$	32,379