Note 8 - Business Segments

3 Months Ended

Mar. 31, 2024

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 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 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 battery energy storage systems ("BESS") as a service as well as 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 March 31, 2024:
Revenues from external customers:
United States (1)	$	143,816	$	876		$	8,081		$	152,773
Foreign (2)		47,437		23,956			—			71,393
Net revenue from external customers		191,253		24,832			8,081			224,166
Intersegment revenues (4)		—		20,597			—			—
Operating income (loss)		52,681		842			(940	)		52,583
Segment assets at period end (3) (*)		4,961,483		190,210			365,151			5,516,844
* Including unconsolidated investments		127,386		—			—			127,386
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

(1) Electricity segment revenues in the United States are all accounted for under lease accounting except for $44.8 million in three months ended March 31, 2024, and $32.7 million for the three months ended March 31, 2023, that are accounted for under ASC 606. Product and Energy Storage segment revenues in the United States are accounted for under ASC 606, Revenue from Contracts with Customers ("ASC 606"), except for Energy Storage revenues of $0.7 million for the three months ended March 31, 2024, and none for the three months ended March 31, 2023, that are accounted for under lease accounting.

(2) Electricity segment revenues in foreign countries are all accounted for under lease accounting. Product segment revenues in foreign countries are all accounted for under ASC 606.

(3) Electricity segment assets include goodwill in the amount of $146.5 million and $85.8 million as of March 31, 2024 and 2023, respectively. Energy Storage segment assets include goodwill in the amount of $4.6 million and $4.6 million as of March 31, 2024 and 2023, respectively. No goodwill is included in the Product segment assets as of March 31, 2024 and 2023.

(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,
	2024			2023
	(Dollars in thousands)
Revenues:
Total segment revenues	$	224,166		$	185,232
Intersegment revenues		20,597			7,772
Elimination of intersegment revenues		(20,597	)		(7,772	)
Total consolidated revenues	$	224,166		$	185,232
Operating income:
Operating income	$	52,583		$	53,166
Interest income		1,839			1,851
Interest expense, net		(30,968	)		(23,631	)
Derivatives and foreign currency transaction gains (losses)		(1,582	)		(1,937	)
Income attributable to sale of tax benefits		17,476			12,566
Other non-operating income, net		26			60
Total consolidated income before income taxes and equity in income of investees	$	39,374		$	42,075