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FAIR VALUE OF FINANCIAL INSTRUMENTS
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value measurement guidance clarifies that fair value is an exit price, representing the amount that would be received upon selling an asset or paid upon transferring a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the fair value measurement guidance are described below: 
Level 1 — unadjusted observable inputs that reflect quoted prices for identical assets or liabilities in active markets; 
Level 2 — inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly; 
Level 3 — unobservable inputs.
The following table sets forth certain fair value information at September 30, 2024 and December 31, 2023 for financial assets and liabilities measured at fair value by level within the fair value hierarchy, as well as cost or amortized cost. As required by the fair value measurement guidance, assets and liabilities are classified in their entirety based on the lowest level of inputs that is significant to the fair value measurement.
September 30, 2024
Fair Value
Carrying Value at September 30, 2024TotalLevel 1Level 2Level 3
(Dollars in thousands)
Assets:
Current assets:
Cash equivalents (primarily restricted cash accounts)
$50,686 $50,686 $50,686 $— $— 
Interest rate swap (3)
371 371 — 371 — 
Currency forward contracts (2)
536 536 — 536 — 
Liabilities:
Current liabilities:
Cross-currency swap (1)
(3,808)(3,808)— (3,808)— 
Long term liabilities:
Interest rate swap (3)
(1,254)(1,254)— (1,254)— 
Cross-currency swap (1)
(14,194)(14,194)— (14,194)— 
$32,338 $32,338 $50,686 $(18,348)$— 
 
December 31, 2023
Fair Value
Carrying Value at December 31, 2023
TotalLevel 1Level 2Level 3
(Dollars in thousands)
Assets:
Current assets:
Cash equivalents (primarily restricted cash accounts)
$53,877 $53,877 $53,877 $— $— 
Currency forward contracts (2)
1,406 1,406 — 1,406 — 
Liabilities:
Current liabilities:
Cross- currency swap (1)
(3,686)(3,686)— (3,686)— 
Long-term liabilities:
Cross-currency swap (1)
(8,137)(8,137)— (8,137)— 
$43,461 $43,461 $53,877 $(10,416)$— 
1.These amounts relate to cross-currency swap contracts valued primarily based on the present value of the cross-currency swap future settlement prices for U.S. Dollar (“USD”) and New Israeli Shekel (“NIS”) zero yield curves and the applicable exchange rate as of September 30, 2024 and December 31, 2023, as applicable. These amounts are included within “Accounts payable and accrued expenses” or “Other long-term liabilities”, as applicable, in the condensed consolidated balance sheets on September 30, 2024 and December 31, 2023. Cash collateral deposits in the amount of $23.0 million and $10.6 million as of September 30, 2024, and December 31, 2023, respectively, are presented under “Other receivables” in the condensed consolidated balance sheets.
2.These amounts relate to currency forward contracts valued primarily based on observable inputs, including forward and spot prices for currencies, net of contracted rates and then multiplied by notional amounts, and are included within “Receivables, other” or “Accounts payable and accrued expenses”, as applicable, in the condensed consolidated balance sheets on September 30, 2024 and December 31, 2023, with the corresponding gain or loss being recognized within “Derivatives and foreign currency transaction gains (losses)” in the condensed consolidated statements of operations and comprehensive income.
3.This amount relates to interest rate swap contracts valued primarily based on the present value of the interest rate swap settlement prices and the future 3-month SOFR prices based on USD zero yield curve as of September 30, 2024. This amount is included within “Receivables, other” or “Other long-term liabilities”, as applicable, in the condensed consolidated balance sheets on September 30, 2024.

The following table presents the amounts of gain (loss) recognized in the condensed consolidated statements of operations and comprehensive income on derivative instruments (in thousands):
Amount of recognized gain (loss)Amount of recognized gain (loss)
Derivative instruments
Location of recognized gain (loss)Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(Dollars in thousands)(Dollars in thousands)
Derivatives not designated as hedging instruments
Currency forward contracts (1)
Derivative and foreign currency transaction gains (losses)
$735 $(1,090)$222 $(3,817)
Derivatives designated as cash flow hedging instruments
Cross currency swap (2)
Derivative and foreign currency transaction gains (losses)
$2,460 $(7,011)$(2,903)$(17,564)
Interest rate swap (2)
Interest expense, net
$412 $— $1,302 $— 
1.The foregoing currency forward transactions were not designated as hedge transactions and were marked to market with the corresponding gains or losses recognized within “Derivatives and foreign currency transaction gains (losses)” in the condensed consolidated statements of operations and comprehensive income.
2. The foregoing cross-currency and interest rate swap transactions were designated as a cash flow hedging instruments. The changes in the cross currency swap fair value are initially recorded in “Other comprehensive income (loss)” and a corresponding amount is reclassified out of “Accumulated other comprehensive income (loss)” to “Derivatives and foreign currency transaction gains (losses)” to offset the remeasurement of the underlying hedged transaction which also impacts the same line item in the condensed consolidated statements of operations and comprehensive income. The changes in the interest rate swap fair value are initially recorded in “Other comprehensive income (loss)” and a corresponding amount is reclassified out of “Accumulated other comprehensive income (loss)” to “Interest expenses, net” to offset the remeasurement of the underlying hedged transaction which also impacts the same line item in the condensed consolidated statements of operations and comprehensive income.
 There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 during the three and nine months ended September 30, 2024 and 2023.
 
The following table presents the effect of derivative instruments designated as cash flow hedges on the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2024, and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(Dollars in thousands)(Dollars in thousands)
Cash flow hedges:
Balance in Accumulated other comprehensive income (loss) beginning of period
$162 $994 $(318)$3,920 
Gain or (loss) recognized in Other comprehensive income (loss):
Cross currency swap
(189)2,262 (6,179)9,888 
Interest rate swap
(1,989)— 8 — 
Amount reclassified from Other comprehensive income (loss) into earnings
Cross currency swap
(2,460)(7,011)2,903 (17,564)
Interest rate swap
(412)— (1,302)— 
Balance in Accumulated other comprehensive income (loss) end of period$(4,889)$(3,756)$(4,889)$(3,756)
The estimated net amount of existing gain (loss) that is reported in "Accumulated other comprehensive income (loss)" as of September 30, 2024 that is expected to be reclassified into earnings within the next 12 months is immaterial. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flow is from the transaction commencement date through June 2031.
The fair value of the Company’s long-term debt approximates its carrying amount, except for the following: 
Fair Value
Carrying Amount (*)
September 30, 2024December 31, 2023September 30, 2024December 31, 2023
(Dollars in millions)(Dollars in millions)
Hapoalim 2024 Loan
$72.1 $— $70.3 $— 
HSBC Bank 2024 Loan
118.5 — 112.5 — 
Mammoth Senior Secured Notes
158.2 — 135.1 — 
Discount 2024 Loan
31.5 — 30.8 — 
Discount 2024 II Loan
50.0 — 50.0 — 
Mizrahi Loan58.1 61.4 56.3 60.9 
Mizrahi Loan 2023
49.5 52.0 46.9 50.0 
Convertible Senior Notes497.8 444.6 476.4 431.3 
HSBC Loan27.3 33.8 28.6 35.7 
Hapoalim Loan69.1 75.0 71.4 80.4 
Hapoalim Loan 2023
88.1 99.7 85.0 95.0 
Discount Loan59.0 69.9 62.5 75.0 
Finance liability - Dixie Valley220.7 207.2 220.6 225.8 
Olkaria III Loan - DFC 105.0 116.4 107.2 120.7 
Olkaria III plant 4 Loan - DEG 2 19.9 21.6 20.0 22.5 
Olkaria III plant 1 Loan - DEG 3 17.5 19.0 17.5 19.7 
DEG 4 Loan
31.9 — 30.0 — 
Platanares Loan - DFC 64.7 71.3 65.5 71.7 
OFC 2 LLC ("OFC 2") 122.5 134.2 131.1 142.5 
Don A. Campbell 1 ("DAC 1") 49.5 52.3 53.6 57.4 
USG Prudential - NV 22.1 22.3 23.4 23.9 
USG Prudential - ID Refinancing
49.8 54.1 55.9 58.9 
USG DOE 27.4 30.0 27.4 30.2 
Senior Unsecured Bonds 177.2 202.8 188.7 220.6 
Senior Unsecured Loan 136.0 150.4 141.2 158.0 
Other long-term debt 4.8 6.8 5.0 7.7 
 
 (*) The carrying amount value of the loans excludes the related deferred financing costs.
The fair value of the long-term debt is determined by a valuation model, which is based on a conventional discounted cash flow methodology and utilizes assumptions of current borrowing rates, except for the fair value of the Convertible Senior Notes for which the fair value was estimated based on a quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period. A hypothetical change in the quoted bid price will result in a corresponding change in the estimated fair value of the Notes. The carrying value of the deposits, the short-term revolving credit lines with banks and the commercial paper approximate their fair value.
Recently interest rates for both short-term and long-term debt have increased sharply which may have a direct impact on the fair value of the Company's long-term debt presented above, should this trend continue.
The following table presents the fair value of financial instruments as of September 30, 2024:
Level 1Level 2Level 3Total
(Dollars in millions)
Hapoalim 2024 Loan$— $— $72.1 $72.1 
HSBC Bank 2024 Loan— — 118.5 118.5 
Mammoth Senior Secured Notes— — 158.2 158.2 
Discount 2024 Loan— — 31.5 31.5 
Discount 2024 II Loan
— — 50.0 50.0 
Mizrahi Loan— — 58.1 58.1 
Mizrahi Loan 2023— — 49.5 49.5 
Convertible Senior Notes— 497.8 — 497.8 
HSBC Loan— — 27.3 27.3 
Hapoalim Loan— — 69.1 69.1 
Hapoalim Loan 2023— — 88.1 88.1 
Discount Loan— — 59.0 59.0 
Finance liability - Dixie Valley— — 220.7 220.7 
Olkaria III Loan - DFC — — 105.0 105.0 
Olkaria III plant 4 Loan - DEG 2— — 19.9 19.9 
Olkaria III plant 1 Loan - DEG 3— — 17.5 17.5 
DEG 4 Loan
— — 31.9 31.9 
Platanares Loan - DFC — — 64.7 64.7 
OFC 2 Senior Secured Notes — — 122.5 122.5 
DAC 1 Senior Secured Notes — — 49.5 49.5 
USG Prudential - NV — — 22.1 22.1 
USG Prudential - ID — — 49.8 49.8 
USG DOE — — 27.4 27.4 
Senior Unsecured Bonds — — 177.2 177.2 
Senior Unsecured Loan — — 136.0 136.0 
Other long-term debt — — 4.8 4.8 
Deposits 19.9 — — 19.9 
The following table presents the fair value of financial instruments as of December 31, 2023:
Level 1Level 2Level 3Total
(Dollars in millions)
Mizrahi Loan$— $— $61.4 $61.4 
Mizrahi Loan 2023— — 52.0 52.0 
Convertible Senior Notes— 444.6 — 444.6 
HSBC Loan— — 33.8 33.8 
Hapoalim Loan— — 75.0 75.0 
Hapoalim Loan 2023— — 99.7 99.7 
Discount Loan— — 69.9 69.9 
Financing Liability - Dixie Valley— — 207.2 207.2 
Olkaria III Loan - DFC — — 116.4 116.4 
Olkaria IV - DEG 2 — — 21.6 21.6 
Olkaria IV - DEG 3— — 19.0 19.0 
Platanares Loan - DFC — — 71.3 71.3 
OFC 2 Senior Secured Notes — — 134.2 134.2 
DAC 1 Senior Secured Notes — — 52.3 52.3 
USG Prudential - NV — — 22.3 22.3 
USG Prudential - ID — — 54.1 54.1 
USG DOE — — 30.0 30.0 
Senior Unsecured Bonds — — 202.8 202.8 
Senior Unsecured Loan — — 150.4 150.4 
Other long-term debt — — 6.8 6.8 
Deposits 20.9 — — 20.9