BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2012

BUSINESS SEGMENTS

NOTE 20 — BUSINESS SEGMENTS

The Company has two reporting segments: Electricity and Product Segments. These segments are managed and reported separately as each offers different products and serves different markets. The Electricity Segment is engaged in the sale of electricity from the Company’s power plants pursuant to PPAs. The Product Segment is engaged in the manufacture, including design and development, of turbines and power units for the supply of electrical energy and in the associated construction of power plants utilizing the power units manufactured by the Company to supply energy from geothermal fields and other alternative energy sources. Transfer prices between the operating segments were determined 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:

	Electricity			Product		Consolidated
	(Dollars in thousands)
Year Ended December 31, 2012:
Net revenues from external customers	$	327,529		$	186,879	$	514,408
Intersegment revenues		—			48,315		48,315
Depreciation and amortization expense		98,783			3,557		102,340
Operating income (loss)		(185,364	)		30,279		(155,085	)
Segment assets at period end *		1,997,081			97,033		2,094,114
Expenditures for long-lived assets		228,289			4,731		233,020
* Including unconsolidated investments		2,591			—		2,591
Year Ended December 31, 2011:
Net revenues from external customers	$	323,849		$	113,160	$	437,009
Intersegment revenues		—			80,712		80,712
Depreciation and amortization expense		93,328			3,070		96,398
Operating income (loss)		45,138			18,869		64,007
Segment assets at period end *		2,222,836			91,882		2,314,718
Expenditures for long-lived assets		266,258			3,419		269,677
* Including unconsolidated investments		2,215			1,542		3,757
Year Ended December 31, 2010:
Net revenues from external customers	$	291,820		$	81,410	$	373,230
Intersegment revenues		—			70,275		70,275
Depreciation and amortization expense		84,276			2,485		86,761
Operating income (loss)		12,782			10,786		23,568
Segment assets at period end *		1,954,778			88,550		2,043,328
Expenditures for long-lived assets		280,228			3,223		283,451
* Including unconsolidated investments		2,244			2,000		4,244

Reconciling information between reportable segments and the Company’s consolidated totals is shown in the following table:

	Year Ended December 31,
	2012			2011			2010
	(Dollars in thousands)
Revenues:
Total segment revenues	$	514,408		$	437,009		$	373,230
Intersegment revenues		48,315			80,712			70,275
Elimination of intersegment revenues		(48,315	)		(80,712	)		(70,275	)
Total consolidated revenues	$	514,408		$	437,009		$	373,230
Operating income:
Operating income (loss)	$	(155,085	)	$	64,007		$	23,568
Interest income		1,201			1,427			343
Interest expense, net		(64,069	)		(69,459	)		(40,473	)
Foreign currency translation and transaction gains (losses)		242			(1,350	)		1,557
Income attributable to sale of equity interest		10,127			11,474			8,729
Gain on acquisition of controlling interest		—			—			36,928
Other non-operating income (expense), net		590			671			130
Total consolidated income (loss) before income taxes and equity in income of investees	$	(206,994	)	$	6,770		$	30,782

The Company sells electricity and products for power plants and others, mainly to the geographical areas according to location of the customers, as detailed below. The following tables present certain data by geographic area:

	Year Ended December 31,
	2012		2011		2010
	(Dollars in thousands)
Revenues from external customers attributable to:(1)
North America	$	271,845	$	254,265	$	241,732
Pacific Rim		109,177		32,174		6,878
Latin America		40,574		38,930		57,853
Africa		40,885		36,307		35,225
Far East		2,075		13,363		1,964
Europe		49,852		61,970		29,578
Consolidated total	$	514,408	$	437,009	$	373,230

⁽¹⁾  Revenues as reported in the geographic area in which they originate.

	Year Ended December 31,
	2012		2011		2010
	(Dollars in thousands)
Long-lived assets (primarily power plants and related assets) located in:
North America	$	1,332,762	$	1,686,088	$	1,536,583
Latin America		67,536		81,472		89,980
Africa		274,395		174,854		115,245
Europe		14,859		13,932		13,584
Pacific Rim and Far East		210		—		—
Consolidated total	$	1,689,762	$	1,956,346	$	1,755,392

The following table presents revenues from major customers:

	Year Ended December 31,
	2012				2011				2010
	Revenues		%		Revenues		%		Revenues		%
	(Dollars in thousands)				(Dollars in thousands)				(Dollars in thousands)
Southern California Edison:(1)	$	90,239		17.5	$	121,049		27.7	$	108,481		29.1
Hawaii Electric Light Company(1)		48,606		9.4		46,432		10.6		32,194		8.6
Sierra Pacific Power Company and Nevada Power Company(1)(2)		78,631		15.3		56,778		13.0		55,877		15.0
Mighty River Power Limited(3)		99,617		19.4		19,956		4.6		—		—
Central American Bank for Economic
Integration (Las Pailas Project)(3)		—		—		—		—		21,365		5.7

⁽¹⁾  Revenues reported in Electricity Segment.

⁽²⁾  Subsidiaries of NV Energy, Inc.

⁽³⁾  Revenues reported in Products Segment.