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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping
The following table sets forth certain fair value information at June 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.
June 30, 2024
Fair Value
Carrying Value at June 30, 2024TotalLevel 1Level 2Level 3
(Dollars in thousands)
Assets:
Current assets:
Cash equivalents (primarily restricted cash accounts)
$52,067 $52,067 $52,067 $— $— 
Interest rate swap (3)
1,380 1,380 — 1,380 — 
Currency forward contracts (2)
127 127 — 127 — 
Long-term Assets:
Interest rate swap (3)
161 161 — 161 — 
Liabilities:
Current liabilities:
Cross currency swap (1)
(4,466)(4,466)— (4,466)— 
Long term liabilities:
Cross currency swap (1)
(13,346)(13,346)— (13,346)— 
$35,923 $35,923 $52,067 $(16,144)$— 
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 June 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 June 30, 2024 and December 31, 2023. Cash collateral deposits in the amount of $16.7 million and $10.6 million as of June 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 June 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 June 30, 2024. This amount is included within “Accounts payable and accrued expenses” in the condensed consolidated balance sheets on June 30, 2024.
Derivative Instruments, Gain (Loss)
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 June 30,Six Months Ended June 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)
$(185)$(1,071)$(513)$(2,727)
Derivatives designated as cash flow hedging instruments
Cross currency swap (2)
Derivative and foreign currency transaction gains (losses)
$(2,127)$(3,761)$(5,363)$(10,553)
Interest rate swap (2)
Interest expense, net
$433 $— $890 $— 
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 hedge as further described above and under Note 1 to the condensed consolidated financial statements. 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.
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
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 six months ended June 30, 2024, and 2023:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Dollars in thousands)(Dollars in thousands)
Cash flow hedges:
Balance in Accumulated other comprehensive income (loss) beginning of period
$1,309 $(1,483)$(318)$3,920 
Gain or (loss) recognized in Other comprehensive income (loss):
Cross currency swap
(3,315)6,238 (5,990)7,627 
Interest rate swap
474 — 1,997 — 
Amount reclassified from Other comprehensive income (loss) into earnings
Cross currency swap
2,127 (3,761)5,363 (10,553)
Interest rate swap
(433)— (890)— 
Balance in Accumulated other comprehensive income (loss) end of period$162 $994 $162 $994 
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments
The fair value of the Company’s long-term debt approximates its carrying amount, except for the following: 
Fair Value
Carrying Amount (*)
June 30, 2024December 31, 2023June 30, 2024December 31, 2023
(Dollars in millions)(Dollars in millions)
Hapoalim 2024 Loan
$73.2 $— $72.7 $— 
HSBC Bank 2024 Loan
127.5 — 125.0 — 
Mammoth Senior Secured Notes
150.7 — 135.1 — 
Discount 2024 Loan
32.5 — 31.8 — 
Mizrahi Loan56.2 61.4 56.3 60.9 
Mizrahi Loan 2023
48.4 52.0 46.9 50.0 
Convertible Senior Notes428.2 444.6 431.3 431.3 
HSBC Loan30.5 33.8 32.1 35.7 
Hapoalim Loan66.7 75.0 71.4 80.4 
Hapoalim Loan 2023
93.0 99.7 90.0 95.0 
Discount Loan63.9 69.9 68.8 75.0 
Finance liability - Dixie Valley224.8 207.2 223.3 225.8 
Olkaria III Loan - DFC 107.1 116.4 111.7 120.7 
Olkaria III plant 4 Loan - DEG 2 19.2 21.6 20.0 22.5 
Olkaria III plant 1 Loan - DEG 3 16.9 19.0 17.5 19.7 
DEG 4 Loan
30.7 — 30.0 — 
Platanares Loan - DFC 66.5 71.3 67.6 71.7 
OFC 2 LLC ("OFC 2") 124.8 134.2 133.7 142.5 
Don A. Campbell 1 ("DAC 1") 49.1 52.3 54.3 57.4 
USG Prudential - NV 21.7 22.3 23.6 23.9 
USG Prudential - ID Refinancing
52.0 54.1 57.2 58.9 
USG DOE 28.4 30.0 28.8 30.2 
Senior Unsecured Bonds 169.2 202.8 186.2 220.6 
Senior Unsecured Loan 141.5 150.4 149.6 158.0 
Other long-term debt 5.6 6.8 6.0 7.7 
 
 (*) Carrying amount value excludes the related deferred financing costs.
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis
The following table presents the fair value of financial instruments as of June 30, 2024:
Level 1Level 2Level 3Total
(Dollars in millions)
Hapoalim 2024 Loan$— $— $73.2 $73.2 
HSBC Bank 2024 Loan— — 127.5 127.5 
Mammoth Senior Secured Notes— — 150.7 150.7 
Discount 2024 Loan— — 32.5 32.5 
Mizrahi Loan— — 56.2 56.2 
Mizrahi Loan 2023— — 48.4 48.4 
Convertible Senior Notes— 428.2 — 428.2 
HSBC Loan— — 30.5 30.5 
Hapoalim Loan— — 66.7 66.7 
Hapoalim Loan 2023— — 93.0 93.0 
Discount Loan— — 63.9 63.9 
Finance liability - Dixie Valley— — 224.8 224.8 
Olkaria III Loan - DFC — — 107.1 107.1 
Olkaria III plant 4 Loan - DEG 2— — 19.2 19.2 
Olkaria III plant 1 Loan - DEG 3— — 16.9 16.9 
DEG 4 Loan
— — 30.7 30.7 
Platanares Loan - DFC — — 66.5 66.5 
OFC 2 Senior Secured Notes — — 124.8 124.8 
DAC 1 Senior Secured Notes — — 49.1 49.1 
USG Prudential - NV — — 21.7 21.7 
USG Prudential - ID — — 52.0 52.0 
USG DOE — — 28.4 28.4 
Senior Unsecured Bonds — — 169.2 169.2 
Senior Unsecured Loan — — 141.5 141.5 
Other long-term debt — — 5.6 5.6 
Deposits 19.9 — — 19.9 
The following table presents the fair value of financial instruments as of December 31, 2023:
Level 1Level 2Level 3Total
(Dollars in millions)
Mizrahi Loan$— $— $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