Note 20 - Business Segments

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE

20

— BUSINESS SEGMENTS

The Company has

two

reporting segments: the 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, 2016:
Net revenues from external customers	$	436,292	$	226,299	$	662,591
Intersegment revenues		—		56,075		56,075
Depreciation and amortization expense		102,698		3,279		105,977
Operating income		126,828		75,054		201,882
Segment assets at period end		2,204,444		257,125		2,461,569
Expenditures for long-lived assets		147,211		4,719		151,930
Year Ended December 31, 2015:
Net revenues from external customers	$	375,920	$	218,724	$	594,644
Intersegment revenues		—		48,559		48,559
Depreciation and amortization expense		103,892		3,314		107,206
Operating income		99,345		64,716		164,061
Segment assets at period end		2,044,346		229,636		2,273,982
Expenditures for long-lived assets		149,666		2,784		152,450
Year Ended December 31, 2014 :
Net revenues from external customers	$	382,301	$	177,223	$	559,524
Intersegment revenues		—		44,718		44,718
Depreciation and amortization expense		97,826		2,973		100,799
Operating income		90,401		53,089		143,490
Segment assets at period end		1,963,486		158,070		2,121,556
Expenditures for long-lived assets		155,323		3,458		158,781

Reconciling information between reportable segments and the Company

’s consolidated totals is shown in the following table:

	Year Ended December 31,
	2016			2015			2014
	(Dollars in thousands)
Revenues:
Total segment revenues	$	662,591		$	594,644		$	559,524
Intersegment revenues		56,075			48,559			44,718
Elimination of intersegment revenues		(56,075	)		(48,559	)		(44,718	)
Total consolidated revenues	$	662,591		$	594,644		$	559,524
Operating income:
Operating income	$	201,882		$	164,061		$	143,490
Interest income		971			297			312
Interest expense, net		(67,389	)		(72,577	)		(84,654	)
Foreign currency translation and transaction losses		(5,534	)		(1,622	)		(5,839	)
Income attributable to sale of equity interest		16,503			25,431			24,143
Gain from sale of property, plant and equipment		—			—			7,628
Other non-operating income, net		(5,345	)		(1,991	)		756
Total consolidated income before income taxes and equity in income of investees	$	141,088		$	113,599		$	85,836

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,
	2016		2015		2014
	(Dollars in thousands)
Revenues from external customers attributable to: (1)
United States	$	307,025	$	286,509	$	293,710
Indonesia		100,856		93,191		38,174
Kenya		109,270		86,545		86,074
Turkey		46,270		57,356		86,340
Chile		58,032		34,478		—
Guatemala		30,086		27,897		28,439
Other foreign countries		11,052		8,668		26,787
Consolidated total	$	662,591	$	594,644	$	559,524

____________

(1)

Revenues as reported in the geographic area in which they originate.

	Year Ended December 31,
	2016		2015		2014
	(Dollars in thousands)
Long-lived assets (primarily power plants and related assets) located in:
United States	$	1,414,523	$	1,374,465	$	1,369,136
Kenya		327,157		375,257		330,200
Other foreign countries		199,559		107,407		90,735
Consolidated total	$	1,941,239	$	1,857,129	$	1,790,071

The following table presents revenues from major customers:

	Year Ended December 31,
	2016				2015				2014
	Revenues		%		Revenues		%		Revenues		%
	(Dollars in thousands)				(Dollars in thousands)				(Dollars in thousands)
Southern California Edison (1)	$	33,552		5.1	$	56,026		9.4	$	75,803		13.5
Southern California Public Power Authority  (1)		67,566		10.2		30,947		5.2		21,799		3.9
Sierra Pacific Power Company and Nevada Power Company (1)(2)		127,226		19.2		115,876		19.5		92,580		16.5
Hyundai (3)		100,856		15.2		93,131		15.7		38,174		6.8
KPLC (1)		109,270		16.5		86,545		14.6		86,074		15.4

________

(1)

Revenues reported in Electricity segment.

(2)

Subsidiaries of NV Energy, Inc.

(3)

Revenues related to the Sarulla project that are reported in Products segment.