Note 13 - Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 13 — DISCONTINUED OPERATIONS

On May 30, 2013, the Company’s wholly owned subsidiary, Ormat Holding Corp., sold the Momotombo Power Company (“MPC”), which operates the Momotombo power plant, located in Nicaragua to a third party for $7,751,000 approximately one year before the scheduled termination of the concession arrangement with the Nicaraguan owner. The Company recorded an after-tax gain on sale of approximately $3.6 million in the three and six months ended June 30, 2013.

In conjunction with the sale, the Company’s wholly owned subsidiary, Ormat International, Inc, and the buyer signed a technical support agreement, whereby Ormat International, Inc, will provide technical consulting services, which can be terminated by either party with 60 days advance notice. The Company is of the opinion that the expected continuing cash flows from this agreement are insignificant and that there is no significant continuing involvement by the Company, including its subsidiaries, in the operations of the MPC after the sale. Therefore, the related income from operations prior to the date of the sale and the gain on the sale of the MPC have been included as discontinued operations in the condensed consolidated statements of operations and comprehensive income for all comparative periods presented. 

The summarized financial information related to the discontinued operations is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(Dollars in thousands)						(Dollars in thousands)
Revenues - electricity	$	2,062		$	3,129		$	4,866		$	6,033
Income from discontinued operations before income taxes		4,480			1,613			5,311			2,693
Income tax provision		(363	)		(425	)		(614	)		(706	)
Income from discontinued operations, net of taxes	$	4,117		$	1,188		$	4,697		$	1,987

The net assets of the MPC as of May 30, 2013 were as follows:

	(Dollars in thousands)
Cash and cash equivalents	$	52
Accounts receivable		2,274
Prepaid expenses and other		167
Property, plant and equipment		3,935
Accounts payable and accrued expenses		(493	)
Deferred income taxes		(442	)
Accrued severance pay		(313	)
Other liabilities		(590	)
Net assets	$	4,590