Note 8 - Business Segments

6 Months Ended

Jun. 30, 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.

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, 2023:
Revenues from external customers:
United States (1)	$	106,209	$	2,253		$	6,014		$	114,476
Foreign (2)		49,115		31,205			—			80,320
Net revenue from external customers		155,324		33,458			6,014			194,796
Intersegment revenues (4)		—		12,918			—			—
Operating income (loss)		28,661		(2,297	)		(2,140	)		24,224
Segment assets at period end (3) (*)		4,576,437		182,437			251,770			5,010,644
* Including unconsolidated investments		126,451		—			—			126,451
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
Six Months Ended June 30, 2023:
Revenues from external customers:
United States (1)	$	228,620	$	3,694		$	10,894		$	243,208
Foreign (2)		97,014		39,806			—			136,820
Net revenue from external customers		325,634		43,500			10,894			380,028
Intersegment revenues (4)		—		20,690			—			—
Operating income (loss)		85,669		(3,802	)		(4,477	)		77,390
Segment assets at period end (3) (*)		4,576,437		182,437			251,770			5,010,644
* Including unconsolidated investments		126,451		—			—			126,451
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

(1) Electricity segment revenues in the United States are all accounted under lease accounting except for $30.2 million and $62.9 million for the three and six months ended June 30, 2023, and $23.2 million and $46.0 million for the three and six months ended June 30, 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 $85.6 million as of June 30, 2023 and 2022, respectively. Energy Storage segment assets include goodwill in the amount of $4.6 million and $4.6 million as of June 30, 2023 and 2022, respectively. No goodwill is included in the Product segment assets as of June 30, 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 June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
	(Dollars in thousands)						(Dollars in thousands)
Revenues:
Total segment revenues	$	194,796		$	169,078		$	380,028		$	352,788
Intersegment revenues		12,918			22,097			20,690			43,000
Elimination of intersegment revenues		(12,918	)		(22,097	)		(20,690	)		(43,000	)
Total consolidated revenues	$	194,796		$	169,078		$	380,028		$	352,788
Operating income:
Operating income	$	24,224		$	38,607		$	77,390		$	83,685
Interest income		4,942			179			6,793			521
Interest expense, net		(24,393	)		(20,418	)		(48,024	)		(41,499	)
Derivatives and foreign currency transaction gains (losses)		(1,272	)		(3,998	)		(3,209	)		(3,738	)
Income attributable to sale of tax benefits		14,979			9,527			27,545			17,232
Other non-operating income (expense), net		79			(1,260	)		139			(1,185	)
Total consolidated income before income taxes and equity in income of investees	$	18,559		$	22,637		$	60,634		$	55,016