Note 18 - Business Segments

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 18 — 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 in the United States and geothermal power plants in foreign countries, and sell 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 of geothermal and recovered energy-based power plants.

• Under the Energy Storage segment, the Company provides energy storage and related services as well as services relating to the engineering, procurement, construction, operation and maintenance of energy storage units. 

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, including, as further described under Note 1 to the consolidated financial statements, the Company's disaggregated revenues from contracts with customers as required by ASC 606:

	Electricity		Product			Energy Storage			Consolidated
	(Dollars in thousands)
Year Ended December 31, 2022:
Revenues from external customers:
United States (1)	$	446,000	$	7,037		$	31,018		$	484,055
Foreign (2)		185,727		64,377			—			250,104
Net revenues from external customers		631,727		71,414			31,018			734,159
Intersegment revenues		—		83,394			—			—
Depreciation and amortization expense		179,966		7,302			11,524			198,792
Operating income (loss)		156,178		(1,084	)		(2,291	)		152,803
Segment assets at period end (3) (*)		4,253,910		118,018			239,651			4,611,579
Expenditures for long-lived assets		462,269		16,352			84,855			563,476
* Including unconsolidated investments		115,693		—			—			115,693
Year Ended December 31, 2021:
Revenues from external customers:
United States (1)		404,303		5,414			30,393			440,110
Foreign (2)		181,468		41,506			—			222,974
Net revenues from external customers	$	585,771	$	46,920		$	30,393		$	663,084
Intersegment revenues		—		129,589			—			—
Depreciation and amortization expense		164,490		7,719			10,763			182,972
Operating income (loss)		171,550		(3,641	)		1,448			169,357
Segment assets at period end (3) (*)		4,142,341		113,817			169,520			4,425,678
Expenditures for long-lived assets		383,307		10,687			25,278			419,272
* Including unconsolidated investments		105,886		—			—			105,886
Year Ended December 31, 2020:
Revenues from external customers:
United States (1)		341,399		5,800			15,824			363,023
Foreign (2)		199,994		142,325			—			342,319
Net revenues from external customers		541,393		148,125			15,824			705,342
Intersegment revenues		—		113,200			—			—
Depreciation and amortization expense		144,357		6,010			6,245			156,612
Operating income (loss)		205,256		13,145			(4,388	)		214,013
Segment assets at period end (3) (*)		3,607,384		145,911			135,692			3,888,987
Expenditures for long-lived assets		267,843		18,011			34,884			320,738
* Including unconsolidated investments		98,217		—			—			98,217

⁽¹⁾ Electricity segment revenues in the United States are all accounted under lease accounting, except for $102.5 million, $83.4 million and $68.1 million for the years 2022, 2021 and 2020, which are accounted under ASC 606. Product and Energy Storage segment revenues in the United States are accounted under ASC 606, as further described under Note 1 to the consolidated financial statements.

⁽²⁾ Electricity segment revenues in foreign countries are all accounted under lease accounting. Product and Energy Storage segment revenues in foreign countries are accounted under ASC 606 as further described under Note 1 to the consolidated financial statements.

⁽³⁾ Electricity segment assets include goodwill in the amount of $85.7 million, $85.3 million and $20.5 million as of December 31, 2022, 2021 and 2020, respectively, $66.2 million of which was added in the third quarter of 2021 as a result of the Terra-Gen Transaction as further described under Note 2 to the consolidated financial statements. Energy Storage segment assets include goodwill in the amount of $4.6 million, $4.6 million and $4.1 million as of December 31, 2022, 2021 and 2020, respectively. No goodwill is included in the Product segment assets as of December 31, 2022, 2021 and 2020.

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

	Year Ended December 31,
	2022			2021			2020
	(Dollars in thousands)
Revenues:
Total segment revenues	$	734,159		$	663,084		$	705,342
Intersegment revenues		83,394			129,589			113,200
Elimination of intersegment revenues		(83,394	)		(129,589	)		(113,200	)
Total consolidated revenues	$	734,159		$	663,084		$	705,342
Operating income (expense):
Operating income	$	152,803		$	169,357		$	214,013
Interest income		3,417			2,124			1,717
Interest expense, net		(87,743	)		(82,658	)		(77,953	)
Derivatives and foreign currency transaction gains (losses)		(6,044	)		(14,720	)		3,802
Income attributable to sale of tax benefits		33,885			29,582			25,720
Other non-operating income (expense), net		(709	)		(134	)		1,418
Total consolidated income before income taxes and equity in earnings (losses) of investees	$	95,609		$	103,551		$	168,717

The Company sells electricity, products and energy storage services mainly to the geographical areas set forth below based on the location of the customer. The following tables present certain data by geographic:

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Revenues from external customers attributable to:
United States	$	484,055	$	440,110	$	363,023
Indonesia		15,631		8,056		—
Kenya		105,837		102,844		115,474
Turkey		1,961		2,723		65,535
Chile		579		7,035		32,418
Guatemala		28,831		26,868		27,391
New Zealand		17,130		6,770		34,985
Honduras		33,837		35,233		35,197
Other foreign countries		46,298		33,445		31,319
Consolidated total	$	734,159	$	663,084	$	705,342

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Long-lived assets (primarily power plants and related assets) located in:
United States	$	2,857,503	$	2,527,429	$	2,084,021
Kenya		301,491		297,427		289,266
Other foreign countries		254,878		217,371		232,953
Consolidated total	$	3,413,872	$	3,042,227	$	2,606,240

The following table presents revenues from major customers:

	Year Ended December 31,
	2022				2021				2020
	Revenues		%		Revenues		%		Revenues		%
	(Dollars in thousands)				(Dollars in thousands)				(Dollars in thousands)
Southern California Public Power (1)	$	157,663		21.5	$	157,318		23.7	$	145,450		20.6
Sierra Pacific Power Company and Nevada Power Company (1)(2)		124,116		16.9		120,206		18.1		123,734		17.5
KPLC (1)		105,837		14.4		102,844		15.5		115,474		16.4

⁽¹⁾ Revenues reported in Electricity segment.

⁽²⁾ Subsidiaries of NV Energy, Inc.