ORMAT TECHNOLOGIES, INC., 10-Q filed on 5/11/2020
Quarterly Report
v3.20.1
Document And Entity Information - shares
 3 Months Ended
Mar. 31, 2020
May 07, 2020
Document Information [Line Items]    
Entity Central Index Key 0001296445  
Entity Registrant Name ORMAT TECHNOLOGIES, INC.  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2020  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2020  
Document Transition Report false  
Entity File Number 001-32347  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 88-0326081  
Entity Address, Address Line One 6140 Plumas Street  
Entity Address, City or Town Reno  
Entity Address, State or Province NV  
Entity Address, Postal Zip Code 89519-6075  
City Area Code 775  
Local Phone Number 356-9029  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   51,035,718
Title of 12(b) Security Common Stock  
Trading Symbol ORA  
Security Exchange Name NYSE  
v3.20.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 231,149 $ 71,173
Restricted cash and cash equivalents (primarily related to VIEs) 88,627 81,937
Receivables:    
Trade less allowance for credit losses of $779 and $0, respectively (primarily related to VIEs) 168,924 154,525
Other 27,718 22,048
Inventories 34,107 34,949
Costs and estimated earnings in excess of billings on uncompleted contracts [1] 22,305 38,365
Prepaid expenses and other 11,456 12,667
Total current assets 584,286 415,664
Investment in unconsolidated companies 76,008 81,140
Deposits and other 37,734 38,284
Deferred income taxes 118,682 129,510
Property, plant and equipment, net 1,981,086 1,971,415
Construction-in-process 413,789 376,555
Operating leases right of use 17,611 17,405
Finance leases right of use 14,149 14,161
Intangible assets, net 182,305 186,220
Goodwill 19,963 20,140
Total assets 3,445,613 [2],[3] 3,250,494
Current liabilities:    
Accounts payable and accrued expenses 140,867 141,857
Short term revolving credit lines with banks (full recourse) 270,500 40,550
Commercial paper 8,275 50,000
Billings in excess of costs and estimated earnings on uncompleted contracts 5,937 2,755
Current portion of long-term debt:    
Senior secured notes 24,617 24,473
Other loans 34,408 34,458
Full recourse 76,572 76,572
Operating lease liabilities 2,974 2,743
Finance lease liabilities 3,169 3,068
Total current liabilities 567,319 376,476
Long-term debt, net of current portion:    
Senior secured notes (less deferred financing costs of $6,049 and $6,317, respectively) 331,077 339,336
Other loans (less deferred financing costs of $9,872 and $10,482, respectively) 309,588 317,395
Senior unsecured bonds (less deferred financing costs of $623 and $675, respectively) 286,505 286,453
Other loans (less deferred financing costs of $1,475 and $1,519, respectively) 68,789 68,747
Operating lease liabilities 14,035 14,008
Finance lease liabilities 11,230 11,209
Liability associated with sale of tax benefits 121,627 123,468
Deferred income taxes 100,969 97,126
Liability for unrecognized tax benefits 14,560 14,643
Liabilities for severance pay 18,208 18,751
Asset retirement obligation 50,786 50,183
Other long-term liabilities 7,867 8,039
Total liabilities 1,902,560 1,725,834
Commitments and contingencies (Note 9)
Redeemable noncontrolling interest 9,402 9,250
Equity:    
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 51,035,718 and 51,031,652 issued and outstanding as of March 31, 2020 and December 31, 2019, respectively 51 51
Additional paid-in capital 915,139 913,150
Retained earnings 507,537 487,873
Accumulated other comprehensive income (loss) (13,662) (8,654)
Total stockholders' equity attributable to Company's stockholders 1,409,065 1,392,420
Noncontrolling interest 124,586 122,990
Total equity 1,533,651 1,515,410
Total liabilities, redeemable noncontrolling interest and equity $ 3,445,613 $ 3,250,494
[1] Contract assets and contract liabilities are presented as "Costs and estimated earnings in excess of billings on uncompleted contracts" and "Billings in excess of costs and estimated earnings on uncompleted contracts", respectively, on the consolidated balance sheets.
[2] Electricity segment assets include goodwill in the amount of $20.0 million and $20.1 million as of March 31, 2020 and 2019, respectively. No goodwill is included in the Product and ESMS segment assets as of March 31, 2020 and 2019.
[3] Including unconsolidated investments 76,008 76,008
v3.20.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Trade, allowance for credit losses $ 779 $ 0
Property, plant and equipment, net 1,981,086 1,971,415
Construction-in-process 413,789 376,555
Operating leases right of use 17,611 17,405
Finance leases right of use $ 14,149 $ 14,161
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 200,000,000 200,000,000
Common stock, shares issued (in shares) 51,035,718 51,031,652
Common stock, shares outstanding (in shares) 51,035,718 51,031,652
Senior Secured Notes [Member]    
Deferred financing costs $ 6,049 $ 6,317
Other Loans, Limited and Non-recourse [Member]    
Deferred financing costs 9,872 10,482
Senior Unsecured Bonds [Member]    
Deferred financing costs 623 675
Other Loans, Full Recourse [Member]    
Deferred financing costs 1,475 1,519
Variable Interest Entity, Primary Beneficiary [Member]    
Property, plant and equipment, net 1,889,857 1,880,547
Construction-in-process 166,124 149,830
Operating leases right of use 4,796 4,688
Finance leases right of use $ 8,730 $ 8,479
v3.20.1
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Revenues:    
Revenue $ 192,113 $ 199,038
Cost of revenues:    
Cost of revenues 110,295 124,859
Gross profit 81,818 74,179
Operating expenses:    
Research and development expenses 1,619 900
Selling and marketing expenses 4,794 3,865
General and administrative expenses 14,348 15,689
Operating income 61,057 53,725
Other income (expense):    
Interest income 402 293
Interest expense, net (17,273) (21,223)
Derivatives and foreign currency transaction gains (losses) 393 472
Income attributable to sale of tax benefits 4,132 7,764
Other non-operating income (expense), net 78 91
Income from operations before income tax and equity in earnings (losses) of investees 48,789 41,122
Income tax (provision) benefit (18,148) (14,039)
Equity in earnings (losses) of investees, net (735) 1,047
Net income 29,906 28,130
Net income attributable to noncontrolling interest (3,873) (2,184)
Net income attributable to the Company's stockholders 26,033 25,946
Comprehensive income:    
Net income 29,906 28,130
Other comprehensive income (loss), net of related taxes:    
Change in foreign currency translation adjustments (645) (1,348)
Change in unrealized gains or losses in respect of the Company's share in derivatives instruments of unconsolidated investment (4,755) (1,145)
Change in respect of derivative instruments designated for cash flow hedge 13 22
Amortization of unrealized gains in respect of derivative instruments designated for cash flow hedge (8) (8)
Comprehensive income 24,511 25,651
Comprehensive income attributable to noncontrolling interest (3,486) (1,862)
Comprehensive income attributable to the Company's stockholders $ 21,025 $ 23,789
Basic:    
Net income (in dollars per share) $ 0.51 $ 0.51
Diluted:    
Net income (in dollars per share) $ 0.51 $ 0.51
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:    
Basic (in shares) 51,036 50,709
Diluted (in shares) 51,526 51,012
Electricity [Member]    
Revenues:    
Revenue $ 142,856 $ 142,908
Cost of revenues:    
Cost of revenues 71,368 77,543
Product [Member]    
Revenues:    
Revenue 47,411 52,128
Cost of revenues:    
Cost of revenues 36,978 42,106
Energy Storage and Management Services [Member]    
Revenues:    
Revenue 1,846 4,002
Cost of revenues:    
Cost of revenues $ 1,949 $ 5,210
v3.20.1
Condensed Consolidated Statements of Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Additional Paid-in Capital [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
AOCI Attributable to Parent [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Parent [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Noncontrolling Interest [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Common Stock [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Additional Paid-in Capital [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
AOCI Attributable to Parent [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Parent [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Noncontrolling Interest [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Parent [Member]
Noncontrolling Interest [Member]
Total
Balance (in shares) at Dec. 31, 2018 50,700                           50,700            
Balance at Dec. 31, 2018 $ 0 $ 0 $ (58) $ 0 $ (58) $ 0 $ (58) $ 51 $ 901,363 $ 422,164 $ (3,799) $ 1,319,779 $ 125,259 $ 1,445,038 $ 51 $ 901,363 $ 422,222 $ (3,799) $ 1,319,837 $ 125,259 $ 1,445,096
Stock-based compensation                             $ 0 2,360 0 0 2,360 0 2,360
Exercise of options by employees and directors (in shares)                             52            
Exercise of options by employees and directors                             $ 0 0 0 0 0 0 0
Cash paid to noncontrolling interest                             0 0 0 0 0 (4,146) (4,146)
Cash dividend declared                             0 0 (5,579) 0 (5,579) 0 (5,579)
Net income                             0 0 25,946 0 25,946 1,855 27,801
Change in foreign currency translation adjustments                             0 0 0 (1,026) (1,026) (322) (1,348)
Change in respect of derivative instruments designated for cash flow hedge                             0 0 0 22 22 0 22
Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment                             0 0 0 (1,145) (1,145) 0 (1,145)
Amortization of unrealized gains in respect of derivative instruments designated for cash flow hedge, net                             $ 0 0 0 (8) (8) 0 (8)
Balance (in shares) at Mar. 31, 2019                             50,752            
Balance at Mar. 31, 2019                             $ 51 903,723 442,531 (5,956) 1,340,349 122,646 1,462,995
Balance (in shares) at Dec. 31, 2019 51,032                           51,032            
Balance at Dec. 31, 2019 $ 0 $ 0 $ (755) $ 0 $ (755) $ 0 $ (755) $ 51 $ 913,150 $ 487,118 $ (8,654) $ 1,391,665 $ 122,990 $ 1,514,655 $ 51 913,150 487,873 (8,654) 1,392,420 122,990 1,515,410
Stock-based compensation                             $ 0 1,989 0 0 1,989 0 1,989
Exercise of options by employees and directors (in shares)                             4            
Exercise of options by employees and directors                             $ 0 0 0 0 0 0 0
Cash paid to noncontrolling interest                             0 0 0 0 0 (3,007) (3,007)
Cash dividend declared                             0 0 (5,614) 0 (5,614) 0 (5,614)
Net income                             0 0 26,033 0 26,033 3,543 29,576
Change in foreign currency translation adjustments                             0 0 0 (258) (258) (387) (645)
Change in respect of derivative instruments designated for cash flow hedge                             0 0 0 13 13 0 13
Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment                             0 0 0 (4,755) (4,755) 0 (4,755)
Amortization of unrealized gains in respect of derivative instruments designated for cash flow hedge, net                             0 0 0 (8) (8) 0 (8)
Increase in noncontrolling interest                             $ 0 0 0 0 0 1,447 1,447
Balance (in shares) at Mar. 31, 2020                             51,036            
Balance at Mar. 31, 2020                             $ 51 $ 915,139 $ 507,537 $ (13,662) $ 1,409,065 $ 124,586 $ 1,533,651
v3.20.1
Condensed Consolidated Statements of Equity (Unaudited) (Parentheticals) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Retained Earnings [Member]    
Cash dividend declared, per share (in dollars per share) $ 0.11 $ 0.11
Amortization of unrealized gains, tax   $ 18
Change in respect of derivative instruments designated for cash flow hedge, tax   24
Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment, tax   $ 0
v3.20.1
Condensed Consolidated Statements of Cash Flow (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Cash flows from operating activities:    
Net income $ 29,906 $ 28,130
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 36,952 36,901
Accretion of asset retirement obligation 772 651
Stock-based compensation 1,989 2,360
Amortization of deferred lease income 0 (775)
Income attributable to sale of tax benefits, net of interest expense (2,087) (4,314)
Equity in losses (earnings) of investees 735 (1,047)
Mark-to-market of derivative instruments (561) (1,209)
Loss on disposal of property, plant and equipment 88 377
Loss (gain) on severance pay fund asset 535 (330)
Deferred income tax provision 15,123 10,469
Liability for unrecognized tax benefits (83) 713
Changes in operating assets and liabilities, net of businesses acquired:    
Receivables (25,008) (1,119)
Costs and estimated earnings in excess of billings on uncompleted contracts 16,060 12,368
Inventories 842 2,018
Prepaid expenses and other 1,211 (2,105)
Change in operating lease right of use asset 784 1,698
Deposits and other 343 26
Accounts payable and accrued expenses 350 (4,271)
Billings in excess of costs and estimated earnings on uncompleted contracts 3,182 (2,894)
Liabilities for severance pay (543) 406
Change in operating lease liabilities (734) 0
Other long-term liabilities (100) (616)
Net cash provided by operating activities 79,756 77,437
Cash flows from investing activities:    
Capital expenditures (80,375) (51,303)
Investment in unconsolidated companies (358) 0
Decrease (increase) in severance pay fund asset, net of payments made to retired employees (87) 359
Net cash used in investing activities (80,820) (50,944)
Cash flows from financing activities:    
Proceeds from long-term loans, net of transaction costs 0 91,500
Repayments of commercial paper (41,725) 0
Proceeds from revolving credit lines with banks 872,900 914,700
Repayment of revolving credit lines with banks (642,950) (1,012,800)
Cash received from noncontrolling interest 6,270 3,346
Repayments of long-term debt (16,416) (15,757)
Cash paid to noncontrolling interest (3,279) (4,459)
Payments under finance lease obligations (675) (767)
Deferred debt issuance costs (416) (1,223)
Cash dividends paid (5,614) (5,579)
Net cash provided by (used in) financing activities 168,095 (31,039)
Effect of exchange rate changes (365) (485)
Net change in cash and cash equivalents and restricted cash and cash equivalents 166,666 (5,031)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period 153,110 177,495
Cash and cash equivalents and restricted cash and cash equivalents at end of period 319,776 172,464
Supplemental non-cash investing and financing activities:    
Increase (decrease) in accounts payable related to purchases of property, plant and equipment (1,436) 153
Right of use assets obtained in exchange for new lease liabilities $ 1,194 $ 2,154
v3.20.1
Note 1 - General and Basis of Presentation
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 — GENERAL AND BASIS OF PRESENTATION

 

These unaudited condensed consolidated interim financial statements of Ormat Technologies, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Accordingly, they do not contain all information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s condensed consolidated financial position as of March 31, 2020, the condensed consolidated statements of operations and comprehensive income, the condensed consolidated statements of cash flows and the condensed consolidated statements of equity for the three months ended March 31, 2020 and 2019.

 

The financial data and other information disclosed in the notes to the condensed consolidated financial statements related to these periods are unaudited. The results for the periods presented are not necessarily indicative of the results to be expected for the year.

 

These condensed unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The condensed consolidated balance sheet data as of December 31, 2019 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2019 but does not include all disclosures required by U.S. GAAP.

 

Dollar amounts, except per share data, in the notes to these financial statements are rounded to the closest $1,000.

 

 

COVID-19 consideration

 

In March 2020, the World Health Organization declared the outbreak of the novel coronavirus ("COVID-19") a pandemic. At the same time, countries around the world have ordered companies to limit or suspend operations and imposed many travel restrictions which resulted in a sudden decline in global economic activity and an increase in market volatility. The Company has implemented significant measures in order to meet government requirements and preserve the health and safety of its employees by working remotely where possible and applying separate shifts in its power plants, manufacturing facilities and other locations while trying to continue operations at close to full capacity in all locations. Also, the Company focused efforts to adjusting its operations to mitigate the impact of COVID-19 including optimizing its global supply chain, and enhancing its liquidity profile. While the extent and duration of the economic downturn from the COVID-19 pandemic remains unclear, the Company has considered, among other things, whether the global operational disruptions indicate a change in circumstances that may trigger asset impairments and whether it needs to revisit accounting estimates and projections or its expectations about collectability of receivables. Additionally, the Company has considered the potential impacts on its fair value disclosures and on its internal control over financial reporting. During the quarter, the Company's power plants, manufacturing and storage facilities have been operating at close to full capacity and there was no significant direct impact on the Company's operations as a result of the economic downturn. While significant uncertainty still exists concerning the magnitude of the impact and duration of the COVID-19 pandemic on the global economy, the Company has determined that there was no triggering event for an impairment with respect to any of its assets nor has there been an adverse change in the probability related to the collectability of its receivables. The Company continues to assess the potential impact of the global economic situation on its consolidated financial statements.

 

Puna

 

On May 3, 2018, the Kilauea volcano located in close proximity to the Company's 38 MW geothermal power plant in the Puna district of Hawaii's Big Island erupted following a significant increase in seismic activity in the area. Before it stopped flowing, the lava covered the wellheads of three geothermal wells, monitoring wells and the substation of the Puna complex and an adjacent warehouse that stored a drilling rig that was also consumed by the lava. The insurance policy coverage for property and business interruption is provided by a consortium of insurers. All the insurers accepted and started paying for the costs to rebuild the destroyed substation and during March and April of 2020, the Company received an additional $3.0 million of such proceeds. However, only some of the insurers accepted that the business interruption coverage started in May 2018 and, during the first quarter of 2020, the Company recognized income of $$4.9 million from such additional cash proceeds which were included in cost of revenues up to the amount covering the related costs and the remainder in general and administrative expenses in the consolidated statements of operations and comprehensive income for the three months ended March 31, 2020. The Company has filed a lawsuit against those insurers that have not accepted its business interruption claim.  

 

As of May 2020, reconstruction efforts at Puna continue. Permits that are required for the construction and operation of the substation were received. HELCO continues with its efforts to complete the upgrade of the transmission network and is waiting for PUC approval. On the field side, the Company completed drilling of two production wells, one of which was blocked immediately after its flow test while the other is ready to be connected to the power plant and is expected to enable partial production by the beginning of the fourth quarter. The Company continues its field recovery work, which includes redrilling and cleanouts of existing wells and drilling of new wells and expect gradual increase of production to 29 MW by the end of the year, assuming all permits are received, the transmission network upgrade is complete and field recovery is successfully achieved.

 

In December 2019, PGV and HELCO's subsidiary reached an agreement on an amended and restated PPA for dispatchable geothermal power sold from the Puna complex. The new PPA extends the term until 2052 with an increased contract capacity of 46MW and a fixed price with no escalation, regardless of changes to fossil fuel pricing. The COD of the new 8MW plant is expected during 2022. The existing PPA remains in effect, with current terms, until the expansion is completed, and the new plant reaches its COD.

 

The Company continues to assess the accounting implications of this event on the assets and liabilities on its consolidated balance sheets and whether an impairment will be required. Any significant damage to the geothermal resource or continued shut-down following the lava event at the Puna facilities could have an adverse impact on the power plant's electricity generation and availability, which in turn could have a material adverse impact on the Company's business and results of operations. 

 

Write-offs of unsuccessful exploration activities

 

There were no write-offs of unsuccessful exploration activities for the three months ended March 31, 2020 and 2019.

 

Reconciliation of Cash and cash equivalents and restricted cash and cash equivalents

 

The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents as reported on the balance sheet to the total of the same amounts shown on the statement of cash flows:

 

   

March 31,

    

December 31,

    

March 31,

  
   

2020

    

2019

    

2019

  
   

(Dollars in thousands)

  

Cash and cash equivalents

   $ 231,149     $ 71,173     $ 79,366  

Restricted cash and cash equivalents

     88,627       81,937       93,098  

Total Cash and cash equivalents and restricted cash and cash equivalents

   $ 319,776     $ 153,110     $ 172,464  

 

Concentration of credit risk

 

Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of temporary cash investments and accounts receivable.

 

The Company places its temporary cash investments with high credit quality financial institutions located in the United States (“U.S.”) and in foreign countries. At March 31, 2020 and December 31, 2019, the Company had deposits totaling $14.4 million and $12.9 million, respectively, in ten U.S. financial institutions that were federally insured up to $250,000 per account. At March 31, 2020 and December 31, 2019, the Company’s deposits in foreign countries amounted to approximately $228.8 million and $84.8 million, respectively.

 

At March 31, 2020 and December 31, 2019, accounts receivable related to operations in foreign countries amounted to approximately $135.1 million and $118.8 million, respectively. At March 31, 2020 and December 31, 2019, accounts receivable from the Company’s primary customers, which each accounted for revenues in excess of 10% of total consolidated revenues for the three months ended March 31, 2020 or 2019,  amounted to approximately 50% and 58% of the Company’s trade receivables, respectively.

 

Sierra Pacific Power Company and Nevada Power Company (subsidiaries of NV Energy, Inc.) accounted for 19.2% and 18.3% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively.

 

Southern California Public Power Authority (“SCPPA”) accounted for 18.7% and 19.4% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively.

 

Kenya Power and Lighting Co. Ltd. ("KPLC") accounted for 15.4% and 15.3% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively.

 

The Company has historically been able to collect on substantially all of its receivable balances. As of March 31, 2020, the amount overdue from KPLC was $38.6 million of which $8.0 million was paid in April 2020. These amounts represent an average of 61 days overdue. The Company believes it will be able to collect all past due amounts in Kenya. This belief is based on the fact that in addition to KPLC's obligations under its power purchase agreement, the Company holds a support letter from the Government of Kenya that covers  certain cases of KPLC non-payment (such as where caused by government actions/political events).

 

In Honduras, the Company has been able to collect current charges from Empresa Nacional de Energía Eléctrica (“ENEE”) starting in May 2019. However, due to the restrictive measures related to the COVID-19 pandemic which were implemented recently in Honduras, the Company may experience delays in collection as, due to a local closure, it was unable to timely submit to ENEE the charge relating to March 2020. As of March 31, 2020, the total amount overdue from ENEE was $20.1 million which relates to the period from October 2018 to April 2019, none of which has been paid to date. In view of the ongoing Honduran government support undertaking, the Company believes it will be able to collect past due amounts in Honduras.

 

The Company may experience delays in collection in other locations due to the restrictive measures related to the COVID-19 pandemic which were imposed globally at different extents.

 

Revenues from Contracts with Customers

 

Contract assets related to our Product segment reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities related to the Company's Product segment reflect payments received in advance of the satisfaction of performance under the contract. The Company receives payments from customers based on the terms established in the contracts. Total contract assets and contract liabilities as of March 31, 2020 and December 31, 2019 are as follows.

 

   

March 31,

    

December 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Contract assets (*)

   $ 22,305     $ 38,365  

Contract liabilities (*)

     (5,937 )     (2,755 )

Contract assets, net

   $ 16,368     $ 35,610  

 

(*) Contract assets and contract liabilities are presented as "Costs and estimated earnings in excess of billings on uncompleted contracts" and "Billings in excess of costs and estimated earnings on uncompleted contracts", respectively, on the consolidated balance sheets. The contract liabilities balance at the beginning of the year was fully recognized as product revenues during the three months ended March 31, 2020 as a result of performance obligations satisfied.

 

On March 31, 2020, the Company had approximately $96.5 million of remaining performance obligations not yet satisfied or partly satisfied related to our Product segment. The Company expects to recognize approximately 100% of this amount as Product revenues during the next 24 months.

 

Leases in which the Company is a lessor

 

The table below presents the lease income recognized as a lessor:

 

   

Three Months Ended March 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Lease income relating to lease payments of operating leases

   $ 126,076     $ 125,908  

Total

   $ 126,076     $ 125,908  

v3.20.1
Note 2 - New Accounting Pronouncements
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Accounting Standards Update and Change in Accounting Principle [Text Block]

NOTE 2 — NEW ACCOUNTING PRONOUNCEMENTS

 

New accounting pronouncements effective in the three-month period ended March 31, 2020

 

Financial Instruments—Credit Losses

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This guidance replaces the current incurred loss impairment methodology. Under the new guidance, on initial recognition and at each reporting period, an entity is required to recognize an allowance that reflects its current estimate of credit losses expected to be incurred over the life of the financial instrument based on historical experience, current conditions and reasonable and supportable forecasts. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. ASU 2018-19 clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. The guidance became effective on January 1, 2020, including interim periods within that year and requires a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Under the modified retrospective method of adoption, prior year reported results are not restated. The Company has performed its analysis of the impact on its financial instruments that are within the scope of this guidance, primarily cash and cash equivalents and restricted cash and cash equivalents, receivables (excluding those accounted under lease accounting) and costs and estimated earnings in excess of billings on uncompleted contracts, based on class of financing receivables which share the same or similar risk characteristics such as customer type and geographic location, among others. The Company has estimated the expected credit losses for each class of financing receivables by applying the related corporate default rate which corresponds to the credit rating of the specific customer or class of financing receivables. For trade receivables, the Company applied this methodology using aging schedules reflecting how long the receivables have been outstanding. The Company has also considered the existence of credit enhancement arrangements that may mitigate the credit risk of its financial receivables in estimating the applicable corporate default rate. The Company adopted this update effective January 1, 2020 and recorded a cumulative-effect adjustment to its retained earnings as of that date of approximately $0.8 million. While significant uncertainty still exists concerning the magnitude of the impact and duration of the COVID-19 pandemic on global economy, the Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly impacted. 

 

The following table describes the changes in the allowance for expected credit losses for the three months ended March 31, 2020 (all related to trade receivables):

 

   

(Dollars in thousands)
         

Beginning balance of the allowance for expected credit losses

   $ 755  

Current period provision for expected credit losses

     24  

Ending balance of the allowance for expected credit losses

   $ 779  

 

 

 

New accounting pronouncements effective in future periods 

 

Accounting for Income Taxes

 

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019- 12 is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The standard is effective for annual periods beginning after December 15, 2020 and interim periods within. Early adoption is permitted although the Company had not early adopted ASU 2019-12 as of March 31, 2020. The Company does not anticipate ASU 2019-12 will have a material impact on its consolidated financial statements.

 

Reference Rate Reform

 

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting as the LIBOR reference rate is scheduled to be discontinued on December 31, 2021. The amendments in this update provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Modifications of contracts within the scope of Topic 470, Debt, should be accounted for by prospectively adjusting the effective interest rate. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The Company evaluated the impact of the transition from LIBOR, and currently believe that the transition will not have a material impact on its consolidated financial statements.
v3.20.1
Note 3 - Inventories
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Inventory Disclosure [Text Block]

NOTE 3 — INVENTORIES

 

Inventories consist of the following:

 

   

March 31,

    

December 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Raw materials and purchased parts for assembly

   $ 20,559     $ 21,942  

Self-manufactured assembly parts and finished products

     13,548       13,007  

Total inventories

   $ 34,107     $ 34,949  

v3.20.1
Note 4 - Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

NOTE 4— FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The fair value measurement guidance clarifies that fair value is an exit price, representing the amount that would be received upon selling an asset or paid upon transferring a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the fair value measurement guidance are described below:

 

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.

 

Level 2 — Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

 

Level 3 — Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

 

The following table sets forth certain fair value information at March 31, 2020 and December 31, 2019 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.

 

           

March 31, 2020

  
           

Fair Value

  
   

Carrying

Value at

March 31,

2020

    

Total

    

Level 1

    

Level 2

    

Level 3

  
   

(Dollars in thousands)

  

Assets:

                                        

Current assets:

                                        

Cash equivalents (including restricted cash accounts)

   $ 36,978     $ 36,978     $ 36,978     $ —     $ —  

Derivatives:

                                        

Contingent receivable (1)

     99       99       —       —       99  

Currency forward contracts (2)

     928       928       —       928       —  

Liabilities:

                                        

Current liabilities:

                                        

Derivatives:

                                        

Contingent payables (1)

     (3,272 )     (3,272 )     —       —       (3,272 )
    $ 34,733     $ 34,733     $ 36,978     $ 928     $ (3,173 )

 

 

           

December 31, 2019

  
           

Fair Value

  
   

Carrying

Value at

December 31,

2019

    

Total

    

Level 1

    

Level 2

    

Level 3

  
   

(Dollars in thousands)

  

Assets

                                        

Current assets:

                                        

Cash equivalents (including restricted cash accounts)

   $ 28,316     $ 28,316     $ 28,316     $ —     $ —  

Derivatives:

                                        

Contingent receivables (1)

     102       102       —       —       102  

Currency forward contracts (2)

     362       362       —       362       —  

Liabilities:

                                        

Current liabilities:

                                        

Derivatives:

                                        

Contingent payable (1)

     (3,359 )     (3,359 )     —       —       (3,359 )
    $ 25,421     $ 25,421     $ 28,316     $ 362     $ (3,257 )

 

 

1.

These amounts relate to contingent receivables and payables relating to acquisition of the Guadeloupe power plant, valued primarily based on unobservable inputs and are included within “Prepaid expenses and other”, “Accounts payable and accrued expenses” and “Other long-term liabilities” on March 31, 2020 and December 31, 2019 in the consolidated balance sheets 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.

 

 

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 “Prepaid expenses and other” and “Accounts payable and accrued expenses”, as applicable, on March 31, 2020 and December 31, 2019, in the condensed consolidated balance sheets with the corresponding gain or loss being recognized within “Derivatives and foreign currency transaction gains (losses)” in the consolidated statement of operations and comprehensive income.

 

The amounts set forth in the tables above include investments in debt instruments and money market funds (which are included in cash equivalents). Those securities and deposits are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in an active market.

 

The following table presents the amounts of gain (loss) recognized in the consolidated statements of operations and comprehensive income on derivative instruments not designated as hedges (in thousands):

 

       

Amount of recognized

gain (loss)

  

Derivatives not designated

as hedging instruments

  

Location of recognized gain

(loss)

  

Three Months Ended

March 31,

  
       

2020

    

2019

  
                     

Currency forward contracts

  

Derivative and foreign currency transaction gains (losses)

     1,090       1,083  
        $ 1,090     $ 1,083  

 

The foregoing forward transactions were not designated as hedge transactions and are marked to market with the corresponding gains or losses recognized within “Derivatives and foreign currency transaction gains (losses)”.

 

There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 during the three months ended March 31, 2020.

 

The fair value of the Company’s long-term debt approximates its carrying amount, except for the following: 

 

   

Fair Value

    

Carrying Amount

  
   

March 31,

2020

    

December 31,

2019

    

March 31,

2020

    

December 31,

2019

  
   

(Dollars in millions)

    

(Dollars in millions)

  

Olkaria III Loan - OPIC

   $ 206.5     $ 202.1     $ 188.1     $ 192.6  
Olkaria III plant 4 Loan - DEG 2       46.2       43.8       42.5       42.5  
Olkaria III plant 1 Loan - DEG 3       40.8       38.8       37.1       37.1  

Platanares Loan - OPIC

     118.9       115.3       102.4       104.5  

Amatitlan Loan

     25.5       26.4       25.4       26.3  

Senior Secured Notes:

                                

OFC 2 LLC ("OFC 2")

     218.1       210.9       198.4       203.0  

Don A. Campbell 1 ("DAC 1")

     81.7       78.5       76.6       78.2  

USG Prudential - NV

     32.8       30.6       28.3       28.4  

USG Prudential - ID

     18.3       18.6       18.9       19.6  

USG DOE

     46.2       45.0       39.4       40.8  

Senior Unsecured Bonds

     207.7       205.7       204.3       204.3  

Senior Unsecured Loan

     169.0       161.3       150.0       150.0  

Plumstriker

     21.4       21.7       21.3       21.6  

Other long-term debt

     16.2       16.3       16.6       17.4  

 

The fair value of the long-term debt is determined by a valuation model, which is based on a conventional discounted cash flow methodology and utilizes assumptions of current borrowing rates. The fair value of revolving lines of credit is determined using a comparison of market-based price sources that are reflective of similar credit ratings to those of the Company.

 

As disclosed above under Note 1 to the condensed consolidated financial statements, the outbreak of the COVID-19 pandemic has resulted in a global economic downturn and market volatility that may have an impact on the estimated fair value of the Company's long-term debt. While interest rates on U.S. Treasury securities have declined and may continue to decline as a result of the COVID-19 pandemic, other components of the Company's borrowing rates have increased and may continue to increase as the global economic situation evolves, all of which have a direct impact on the fair value of the Company's long-term debt.

 

The carrying value of financial instruments such as revolving lines of credit and deposits approximates fair value.

 

The following table presents the fair value of financial instruments as of March 31, 2020: 

 

   

Level 1

    

Level 2

    

Level 3

    

Total

  
   

(Dollars in millions)

  

Olkaria III - OPIC

     —       —       206.5       206.5  
Olkaria III plant 4 Loan - DEG 2     —       —       46.2       46.2  
Olkaria III plant 1 Loan - DEG 3     —       —       40.8       40.8  

Platanares Loan - OPIC

     —       —       118.9       118.9  

Amatitlan Loan

     —       25.5       —       25.5  

Senior Secured Notes:

                                

OFC 2 Senior Secured Notes

     —       —       218.1       218.1  

DAC 1 Senior Secured Notes

     —       —       81.7       81.7  

USG Prudential - NV

     —       —       32.8       32.8  

USG Prudential - ID

     —       —       18.3       18.3  

USG DOE

     —       —       46.2       46.2  

Senior Unsecured Bonds

     —       —       207.7       207.7  

Senior Unsecured Loan

     —       —       169.0       169.0  

Plumstriker

     —       21.4       —       21.4  

Other long-term debt

     —       —       16.2       16.2  

Commercial paper

     —       8.3       —       8.3  

Revolving lines of credit

     —       270.5       —       270.5  

Deposits

     11.8       —       —       11.8  

 

The following table presents the fair value of financial instruments as of December 31, 2019:

 

   

Level 1

    

Level 2

    

Level 3

    

Total

  
   

(Dollars in millions)

  

Olkaria III Loan - OPIC

     —       —       202.1       202.1  

Olkaria IV - DEG 2

     —       —       43.8       43.8  
Olkaria IV - DEG 3     —       —       38.8       38.8  

Platanares Loan - OPIC

     —       —       115.3       115.3  

Amatitlan Loan

     —       26.4       —       26.4  

Senior Secured Notes:

                                

OFC 2 Senior Secured Notes

     —       —       210.9       210.9  

DAC 1 Senior Secured Notes

     —       —       78.5       78.5  

USG Prudential - NV

     —       —       30.6       30.6  

USG Prudential - ID

     —       —       18.6       18.6  

USG DOE

     —       —       45.0       45.0  

Senior Unsecured Bonds

     —       —       205.7       205.7  

Senior Unsecured Loan

     —       —       161.3       161.3  

Plumstriker

     —       21.7       —       21.7  

Other long-term debt

     —       —       16.3       16.3  

Commercial paper

     —       50.0       —       50.0  

Revolving lines of credit

     —       40.6       —       40.6  

Deposits

     12.2       —       —       12.2  

v3.20.1
Note 5 - Stock-based Compensation
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]

NOTE 5 — STOCK-BASED COMPENSATION

 

No grants were provided under the 2018 Incentive Plan during the three months ended March 31, 2020.
v3.20.1
Note 6 - Interest Expense, Net
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Interest Expense Disclosure [Text Block]

NOTE 6 — INTEREST EXPENSE, NET

 

The components of interest expense are as follows:

 

   

Three Months Ended

March 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Interest related to sale of tax benefits

   $ 2,324     $ 3,661  

Interest expense

     17,166       17,562  

Less — amount capitalized

     (2,217 )     —  
Total interest expense, net   $ 17,273     $ 21,223  

v3.20.1
Note 7 - Earnings Per Share
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Earnings Per Share [Text Block]

NOTE 7 — EARNINGS PER SHARE

 

Basic earnings per share attributable to the Company’s stockholders is computed by dividing net income or loss attributable to the Company’s stockholders by the weighted average number of shares of common stock outstanding for the period. The Company does not have any equity instruments that are dilutive, except for employee stock-based awards.

 

The table below shows the reconciliation of the number of shares used in the computation of basic and diluted earnings per share (in thousands):

 

   

Three Months Ended

March 31,

  
   

2020

    

2019

  
                 

Weighted average number of shares used in computation of basic earnings per share add:

     51,036       50,709  

Additional shares from the assumed exercise of employee stock options

     490       303  

Weighted average number of shares used in computation of diluted earnings per share

     51,526       51,012  

 

The number of stock-based awards that could potentially dilute future earnings per share and that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive was 4,535 and 249,908 for the three months ended March 31, 2020 and 2019, respectively. 
v3.20.1
Note 8 - Business Segments
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 8 — BUSINESS SEGMENTS

 

The Company has three reporting segments: the Electricity segment, the Product segment and the Energy Storage and Management Services segment ("ESMS"). 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 other countries around the world and sell the electricity they generate.

 

 

•

Under the Product segment, the Company designs, manufactures and sells equipment for geothermal and recovered energy-based electricity generation and remote power units and provide services relating to the engineering, procurement and construction of geothermal and recovered energy-based power plants.

 

 

•

Under the ESMS segment the Company provides energy storage, demand response and energy management related services as well as services relating to the engineering, procurement, construction, operation and maintenance of energy storage units mainly through its Viridity business. 

 

Transfer prices between the operating segments are determined based 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 the Company's disaggregated revenues from contracts with customers:

 

   

Electricity

    

Product

    

ESMS

    

Consolidated

  
   

(Dollars in thousands)

  

Three Months Ended March 31, 2020:

                                

Revenues from external customers:

                                

United States (1)

   $ 91,692     $ 398     $ 1,846     $ 93,936  

Foreign (2)

     51,164       47,013       —       98,177  

Net revenue from external customers

     142,856       47,411       1,846       192,113  

Intersegment revenue

     —       8,656       —       8,656  

Operating income (loss)

     58,630       3,872       (1,445 )     61,057  

Segment assets at period end (3) (*)

     3,139,603       230,831       75,179       3,445,613  

* Including unconsolidated investments

     76,008       —       —       76,008  
                                 

Three Months Ended March 31, 2019:

                                

Revenues from external customers:

                                

United States (1)

   $ 91,528     $ 11,243     $ 4,002     $ 106,773  

Foreign (2)

     51,380       40,885       —       92,265  

Net revenue from external customers

     142,908       52,128       4,002       199,038  

Intersegment revenue

     —       18,261       —       18,261  

Operating income

     51,551       4,252       (2,078 )     53,725  

Segment assets at period end (3) (*)

     2,950,444       125,248       67,522       3,143,214  

* Including unconsolidated investments

     71,885       —       —       71,885  

 

 

 

(1)

Electricity segment revenues in the United States are all accounted under lease accounting except for $16.8 million and $17.0 million in the three months ended March 31, 2020 and 2019, respectively, that are accounted under ASC 606. Product and ESMS segment revenues in the United States are accounted under ASC 606.

 

 

(2)

Electricity segment revenues in foreign countries are all accounted under lease accounting. Product segment revenues in foreign countries are accounted under ASC 606.

 

 

(3)

 Electricity segment assets include goodwill in the amount of $20.0 million and $20.1 million as of March 31, 2020 and 2019, respectively. No goodwill is included in the Product and ESMS segment assets as of March 31, 2020 and 2019. 

 

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

 

   

Three Months Ended

March 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Revenues:

                

Total segment revenues

   $ 192,113     $ 199,038  

Intersegment revenues

     8,656       18,261  

Elimination of intersegment revenues

     (8,656 )     (18,261 )

Total consolidated revenues

   $ 192,113     $ 199,038  
                 

Operating income:

                

Operating income

   $ 61,057     $ 53,725  

Interest income

     402       293  

Interest expense, net

     (17,273 )     (21,223 )

Derivatives and foreign currency transaction gains (losses)

     393       472  

Income attributable to sale of tax benefits

     4,132       7,764  

Other non-operating income (expense), net

     78       91  

Total consolidated income before income taxes and equity in income of investees

   $ 48,789     $ 41,122  

v3.20.1
Note 9 - Commitments and Contingencies
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

NOTE 9 — COMMITMENTS AND CONTINGENCIES

 

 

•

On May 21, 2018, a motion to certify a class action was filed in Tel Aviv District Court against Ormat Technologies, Inc. and 11 officers and directors.  The alleged class is defined as "All persons who purchased Ormat shares on the Tel Aviv Stock Exchange between August 3, 2017 and May 13, 2018". The motion alleges that the Company violated  Sections 31(a)(1) and 38C of the Israeli Securities Law because it allegedly: (1) misled investors by stating in its financial statements that it maintains effective internal controls over its accounting policies and procedures, however the Company's internal controls had material weaknesses which led to erroneous accounting in its 2017 unaudited quarterly reports that had to be restated, including adjustments to the Company’s net income and shareholders’ equity; and (2) failed to issue an immediate report in Israel until May 16, 2018, analogous to the report that was released in the United States on May 11, 2018 stating, inter alia, that the errors in its financial reports affected its balance sheet and would be remedied in its 2017 annual report. The Company filed an agreed motion to the Tel Aviv District Court to stay the proceedings in Israel until a final decision in the United States case (Mac Costas) is adjudicated.

 

 

•

 On June 11, 2018, a putative class action was filed by Mac Costas on behalf of alleged shareholders that purchased or acquired the Company's ordinary shares between August 8, 2017 and May 15, 2018 was commenced in the United States District Court for the District of Nevada against the Company and its Chief Executive Officer and Chief Financial Officer, which was subsequently amended by a consolidated complaint filed by lead plaintiff Phoenix Insurance in May 13, 2019.  The complaint asserts claim against all defendants pursuant to Section 10(b) of the Exchange Act, as amended, and Rule 10b-5 thereunder and against its officers pursuant to Section 20(a) of the Exchange Act.  The complaint alleges that the Company's Form 10-K for the years ended December 31, 2016 and 2017, and Form 10-Qs for each of the quarters in the nine months ended September 30, 2017 contained material misstatements or omissions, among other things, with respect to the Company’s tax provisions and the effectiveness of its internal control over financial reporting, and that, as a result of such alleged misstatements and omissions, the plaintiffs suffered damages. On December 6, 2019 the Company’s motion to dismiss was denied by the court. On March 23, 2020, pursuant to out of court mediation, a term sheet for a proposed settlement of the action without admission of liability or wrongdoing, was signed between the parties. The sum the Company will bear in this context is not material. The parties are working on comprehensive settlement documentation for submission to the court, whose approval is required.  

 

 

•

 On September 11, 2018, the Klein derivative action (Klein Action) was filed against the Company, our board and its Chief Executive Officer and Chief Financial Officer in the United States District Court for the District of Nevada, and on October 22, 2018, the Matthew derivative action (Matthew Action) was filed against the company, certain named present and former board members (Barniv, Beck, Boehm, Clark, Falk, Freeland, Granot, Joyal, Nishigori, Sharir, Stern and Wong) in the United States District Court, District of Nevada.  The Klein complaint asserts four derivative causes of action generally arising from Ormat's restatement of its financial statements: (i) the individual defendants allegedly breached their fiduciary duties by allowing the Company to improperly report its financials; (ii) the individual defendants allegedly were unjustly enriched by being compensated while breaching their fiduciary duties; (iii) the individual defendants allegedly committed corporate waste in paying officers and directors and by incurring legal costs and potential liability; and (iv) the director defendants allegedly breached Section 14(a) of the Exchange Act in connection with the issuance of 2018 proxy. The Matthew complaint similarly alleges derivatively a breach of fiduciary duties, abuse of control, gross mismanagement, and corporate waste by the named directors. On January 24, 2019, the Nevada Court entered an order consolidating the Klein Action and Matthew Action. The parties had stipulated a delay in the scheduling and met for out of court discussions to obtain a possible resolution. The parties are now working towards finalization of a settlement of the action, which, once completed, is subject to court approval. The sum the Company will bear in this context is not material. 

 

 

•

 Following the announcement of the Company’s acquisition of U.S. Geothermal Inc. ("USG"), a number of putative shareholder class action complaints were initially filed on behalf of USG shareholders between March 8, 2018 and March 30, 2018 against USG and the individual members of the USG board of directors.  All of the purported class action suits filed in Federal Court in Idaho have been voluntarily dismissed.  The single remaining class action complaint is a purported class action filed in the Delaware Chancery Court, entitled Riche v. Pappas, et al., Case No. 2018-0177 (Del. Ch., Mar. 12, 2018). An amended complaint was filed on May 24, 2018 under seal, under a confidentiality agreement that was executed by plaintiff.  The amended Riche complaint alleges state law claims for breach of fiduciary duty against former USG directors and seeks post-closing damages. On March 27, 2020, pursuant to out of court mediation, a term sheet for a proposed settlement of the action, without admission of liability or wrongdoing, was signed between the parties.  The sum the Company will bear in this context is not material.  The parties are working on final settlement documentation for submission to the court, whose approval is required. 

 

 

•

On March 29, 2016, a former local sales representative in Chile, Aquavant, S.A., filed a claim on the basis of unjust enrichment against Ormat’s subsidiaries in the 27th Civil Court of Santiago, Chile. The claim requests that the court order Ormat to pay Aquavant $4.6 million in connection with its activities in Chile, including the EPC contract for the Cerro Pabellon project and various geothermal concessions, plus 3.75% of Ormat geothermal products sales in Chile over the next 10 years. Pursuant to various motions submitted by the defendants and the plaintiffs to various courts, including the Court of Appeals, the case was removed from the original court and then refiled before the 11th Civil Court of Santiago. On April 16, 2020, the 11th Civil Court of Santiago issued its order rejecting Plaintiff's principal claim of unjust enrichment, as an improper cause of action, and rejecting Plaintiff's secondary claim for declaratory judgment, which the Court associates with the principal claim of unjust enrichment.    

 

In addition, from time to time, the Company is named as a party to various other lawsuits, claims and other legal and regulatory proceedings that arise in the ordinary course of the Company's business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract, property damage, punitive damages, civil penalties or other losses, or injunctive or declaratory relief. With respect to such lawsuits, claims and proceedings, the Company accrues reserves when a loss is probable, and the amount of such loss can be reasonably estimated. It is the opinion of the Company’s management that the outcome of these proceedings, individually and collectively, will not be material to the Company’s consolidated financial statements as a whole.

v3.20.1
Note 10 - Income Taxes
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE 10 — INCOME TAXES

 

The Company’s effective tax rate expense (benefit) for the three months ended March 31, 2020 and 2019 was 37.2% and 34.1%, respectively. The effective rate differs from the federal statutory rate of 21% for the three months ended March 31, 2020 due to: (i) the impact of global intangible low tax income (“GILTI”); (ii) the mix of business in various countries with higher and lower statutory tax rates than the federal tax rate; (iii) the increase in the valuation allowance on the deferred tax assets related to Production Tax Credits ("PTC") and (iv) withholding taxes on future distributions partially offset by forecasted generation of PTC.

 

In response to the COVID-19 pandemic, many governments have enacted or are contemplating measures to provide aid and economic stimulus. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), enacted on March 27, 2020 in the United States provides relief on deferral of tax payments and filings, modifies the net operating loss utilization rules, and temporarily increases the interest expense deduction allowed. For the three months ended March 31, 2020, there were no material tax impacts to our consolidated financial statements as it relates to the CARES Act or other COVID-19 stimulus measures. The Company will continue to monitor additional guidance issued by Treasury, the Internal Revenue Service and other taxing authorities.

 

Tax Audit in Kenya

 

The Company received three Letters of Preliminary Findings ("LPF’s") from the Kenya Revenue Authority ("KRA") during 2019 relating to certain findings in respect of its audit of tax years 2013 to 2017.  Afterwards, the KRA issued formal Notices of Assessments and objection decisions regarding the issues raised in the first two LPF’s. The Company has responded and objected to each of the KRA audit findings and has already filed its appeal to the first Objection Decision. The Company received from the KRA a second Objection Decision Letter on May 8, 2020 pertaining to the second assessment. The Company is currently in the process of filing its appeal to the second Objection Decision Letter. The total amounts of assessments under the first two LPFs is approximately $202 million, including penalties and interest; and the third LPF proposes an assessment of $17 million, including penalties and interest. 

 

The Company is currently at different stages of discussions with the KRA on the matters included in the KRA assessments, objection decisions and preliminary findings as described above. The Company believes its tax positions for the issues raised during the audit period is more-likely-than-not sustainable based on technical merits under Kenyan tax law.  As of March 31, 2020, the Company had not recorded any tax reserves related to these demands except for an immaterial amount included in the first Letter of Preliminary Findings.
v3.20.1
Note 11 - Subsequent Events
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Subsequent Events [Text Block]

NOTE 11 — SUBSEQUENT EVENTS

 

Cash Dividend

 

On May 8, 2020, the Board of Directors of the Company declared, approved and authorized payment of a quarterly dividend of $5.6 million ($0.11 per share) to all holders of the Company’s issued and outstanding shares of common stock on May 21, 2020, payable on June 2, 2020.

 

Senior Unsecured Bonds

 

On April 6, 2020, the Company concluded an auction tender and accepted subscriptions for an additional aggregate principal amount of approximately $50 million of its Series 3 Senior Unsecured Bonds (the “Additional Series 3 Bonds”). The Additional Series 3 Bonds will mature in September 2022 and bear interest at a fixed rate of 4.45% per annum, payable semi-annually. The Additional Series 3 Bonds will be repaid at maturity in a single bullet payment, unless earlier prepaid by the Company pursuant to the terms and conditions of the trust instrument that governs such Senior Unsecured Bonds.

 

Additionally, on April 20, 2020, the Company concluded an additional auction tender and accepted subscriptions for an aggregate principal amount of approximately $14.5 million under Series 3 Senior Unsecured Bonds (the “Second Addition to Series 3 Bonds”). The Second Addition to Series 3 Bonds will mature in September 2022 and bear interest at a fixed rate of 4.45% per annum, payable semi-annually. The Second Addition to Series 3 Bonds will be repaid at maturity in a single bullet payment, unless earlier prepaid by the Company pursuant to the terms and conditions of the trust instrument that governs such Senior Unsecured Bonds.

 

Senior Unsecured Loan

 

In April 2020, the Company entered into a second addendum (the “Second Addendum”) to the loan agreement with the Migdal Group dated March 22, 2018. The Second Addendum provides for an additional loan by the lenders to the Company in an aggregate principal amount of $50.0 million (the “Second Addendum Migdal Loan”). Of the Second Addendum Migdal Loan, $31.5 million will be repaid in equal 15 semi-annual payments commencing on September 15, 2021 and ending on September 15, 2028. The principal amount of the Second Addendum Migdal Loan of $18.5 million will be repaid in one bullet payment on March 15, 2029. The Second Addendum Migdal Loan bears interest at a fixed rate of 5.44% per annum, payable semi-annually, subject to adjustment in certain circumstances. The Second Addendum Migdal Loan was entered into under substantially the same terms and conditions of the Migdal Loan Agreement as disclosed above.

 

COVID-19 related impact

 

On April 17, 2020, the Company received from KPLC a notice declaring a force majeure event in Kenya due to the impact of COVID-19 and purporting to reduce the Olkaria complex’s contracted capacity from 150 MW to 133.9 MW. As a result of force majeure provisions in the Power Purchase Agreement related to this facility, the Company believes that the notice has an immaterial impact on its consolidated financial statements.

 

Additionally, on April 30, 2020, the Company received from ENEE a notice declaring a force majeure event in Honduras due to the impact of COVID-19. The Company is currently evaluating the potential impact of this notice on its consolidated financial statements.

 

Energy storage assets portfolio purchase transaction

 

In April 2020, the Company amended the definitive agreements entered into in February 2020 to acquire a portfolio of energy storage assets in California from Alta Gas (the "Amended Agreements"). Under the Amended Agreements, the Company will acquire the Pomona 20MW battery storage facility from Alta Gas for a total consideration of $47 million. The transaction is contingent upon specific conditions related to the project as well as other customary closing conditions. Closing is  is expected during the third quarter of 2020. The Company is currently evaluating the accounting impact of this transaction on its 2020 consolidated financial statements.   
v3.20.1
Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Effect of COVID-19 Pandemic, Policy [Text Block]

COVID-19 consideration

 

In March 2020, the World Health Organization declared the outbreak of the novel coronavirus ("COVID-19") a pandemic. At the same time, countries around the world have ordered companies to limit or suspend operations and imposed many travel restrictions which resulted in a sudden decline in global economic activity and an increase in market volatility. The Company has implemented significant measures in order to meet government requirements and preserve the health and safety of its employees by working remotely where possible and applying separate shifts in its power plants, manufacturing facilities and other locations while trying to continue operations at close to full capacity in all locations. Also, the Company focused efforts to adjusting its operations to mitigate the impact of COVID-19 including optimizing its global supply chain, and enhancing its liquidity profile. While the extent and duration of the economic downturn from the COVID-19 pandemic remains unclear, the Company has considered, among other things, whether the global operational disruptions indicate a change in circumstances that may trigger asset impairments and whether it needs to revisit accounting estimates and projections or its expectations about collectability of receivables. Additionally, the Company has considered the potential impacts on its fair value disclosures and on its internal control over financial reporting. During the quarter, the Company's power plants, manufacturing and storage facilities have been operating at close to full capacity and there was no significant direct impact on the Company's operations as a result of the economic downturn. While significant uncertainty still exists concerning the magnitude of the impact and duration of the COVID-19 pandemic on the global economy, the Company has determined that there was no triggering event for an impairment with respect to any of its assets nor has there been an adverse change in the probability related to the collectability of its receivables. The Company continues to assess the potential impact of the global economic situation on its consolidated financial statements.

 
Public Utilities, Policy [Policy Text Block]

Puna

 

On May 3, 2018, the Kilauea volcano located in close proximity to the Company's 38 MW geothermal power plant in the Puna district of Hawaii's Big Island erupted following a significant increase in seismic activity in the area. Before it stopped flowing, the lava covered the wellheads of three geothermal wells, monitoring wells and the substation of the Puna complex and an adjacent warehouse that stored a drilling rig that was also consumed by the lava. The insurance policy coverage for property and business interruption is provided by a consortium of insurers. All the insurers accepted and started paying for the costs to rebuild the destroyed substation and during March and April of 2020, the Company received an additional $3.0 million of such proceeds. However, only some of the insurers accepted that the business interruption coverage started in May 2018 and, during the first quarter of 2020, the Company recognized income of $$4.9 million from such additional cash proceeds which were included in cost of revenues up to the amount covering the related costs and the remainder in general and administrative expenses in the consolidated statements of operations and comprehensive income for the three months ended March 31, 2020. The Company has filed a lawsuit against those insurers that have not accepted its business interruption claim.  

 

As of May 2020, reconstruction efforts at Puna continue. Permits that are required for the construction and operation of the substation were received. HELCO continues with its efforts to complete the upgrade of the transmission network and is waiting for PUC approval. On the field side, the Company completed drilling of two production wells, one of which was blocked immediately after its flow test while the other is ready to be connected to the power plant and is expected to enable partial production by the beginning of the fourth quarter. The Company continues its field recovery work, which includes redrilling and cleanouts of existing wells and drilling of new wells and expect gradual increase of production to 29 MW by the end of the year, assuming all permits are received, the transmission network upgrade is complete and field recovery is successfully achieved.

 

In December 2019, PGV and HELCO's subsidiary reached an agreement on an amended and restated PPA for dispatchable geothermal power sold from the Puna complex. The new PPA extends the term until 2052 with an increased contract capacity of 46MW and a fixed price with no escalation, regardless of changes to fossil fuel pricing. The COD of the new 8MW plant is expected during 2022. The existing PPA remains in effect, with current terms, until the expansion is completed, and the new plant reaches its COD.

 

The Company continues to assess the accounting implications of this event on the assets and liabilities on its consolidated balance sheets and whether an impairment will be required. Any significant damage to the geothermal resource or continued shut-down following the lava event at the Puna facilities could have an adverse impact on the power plant's electricity generation and availability, which in turn could have a material adverse impact on the Company's business and results of operations. 

 
Exploratory Drilling Costs Capitalization and Impairment, Policy [Policy Text Block]

Write-offs of unsuccessful exploration activities

 

There were no write-offs of unsuccessful exploration activities for the three months ended March 31, 2020 and 2019.

 
Cash and Cash Equivalents, Policy [Policy Text Block]

Reconciliation of Cash and cash equivalents and restricted cash and cash equivalents

 

The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents as reported on the balance sheet to the total of the same amounts shown on the statement of cash flows:

 

   

March 31,

    

December 31,

    

March 31,

  
   

2020

    

2019

    

2019

  
   

(Dollars in thousands)

  

Cash and cash equivalents

   $ 231,149     $ 71,173     $ 79,366  

Restricted cash and cash equivalents

     88,627       81,937       93,098  

Total Cash and cash equivalents and restricted cash and cash equivalents

   $ 319,776     $ 153,110     $ 172,464  

 
Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of credit risk

 

Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of temporary cash investments and accounts receivable.

 

The Company places its temporary cash investments with high credit quality financial institutions located in the United States (“U.S.”) and in foreign countries. At March 31, 2020 and December 31, 2019, the Company had deposits totaling $14.4 million and $12.9 million, respectively, in ten U.S. financial institutions that were federally insured up to $250,000 per account. At March 31, 2020 and December 31, 2019, the Company’s deposits in foreign countries amounted to approximately $228.8 million and $84.8 million, respectively.

 

At March 31, 2020 and December 31, 2019, accounts receivable related to operations in foreign countries amounted to approximately $135.1 million and $118.8 million, respectively. At March 31, 2020 and December 31, 2019, accounts receivable from the Company’s primary customers, which each accounted for revenues in excess of 10% of total consolidated revenues for the three months ended March 31, 2020 or 2019,  amounted to approximately 50% and 58% of the Company’s trade receivables, respectively.

 

Sierra Pacific Power Company and Nevada Power Company (subsidiaries of NV Energy, Inc.) accounted for 19.2% and 18.3% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively.

 

Southern California Public Power Authority (“SCPPA”) accounted for 18.7% and 19.4% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively.

 

Kenya Power and Lighting Co. Ltd. ("KPLC") accounted for 15.4% and 15.3% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively.

 

The Company has historically been able to collect on substantially all of its receivable balances. As of March 31, 2020, the amount overdue from KPLC was $38.6 million of which $8.0 million was paid in April 2020. These amounts represent an average of 61 days overdue. The Company believes it will be able to collect all past due amounts in Kenya. This belief is based on the fact that in addition to KPLC's obligations under its power purchase agreement, the Company holds a support letter from the Government of Kenya that covers  certain cases of KPLC non-payment (such as where caused by government actions/political events).

 

In Honduras, the Company has been able to collect current charges from Empresa Nacional de Energía Eléctrica (“ENEE”) starting in May 2019. However, due to the restrictive measures related to the COVID-19 pandemic which were implemented recently in Honduras, the Company may experience delays in collection as, due to a local closure, it was unable to timely submit to ENEE the charge relating to March 2020. As of March 31, 2020, the total amount overdue from ENEE was $20.1 million which relates to the period from October 2018 to April 2019, none of which has been paid to date. In view of the ongoing Honduran government support undertaking, the Company believes it will be able to collect past due amounts in Honduras.

 

The Company may experience delays in collection in other locations due to the restrictive measures related to the COVID-19 pandemic which were imposed globally at different extents.

 
Revenue [Policy Text Block]

Revenues from Contracts with Customers

 

Contract assets related to our Product segment reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities related to the Company's Product segment reflect payments received in advance of the satisfaction of performance under the contract. The Company receives payments from customers based on the terms established in the contracts. Total contract assets and contract liabilities as of March 31, 2020 and December 31, 2019 are as follows.

 

   

March 31,

    

December 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Contract assets (*)

   $ 22,305     $ 38,365  

Contract liabilities (*)

     (5,937 )     (2,755 )

Contract assets, net

   $ 16,368     $ 35,610  

 

(*) Contract assets and contract liabilities are presented as "Costs and estimated earnings in excess of billings on uncompleted contracts" and "Billings in excess of costs and estimated earnings on uncompleted contracts", respectively, on the consolidated balance sheets. The contract liabilities balance at the beginning of the year was fully recognized as product revenues during the three months ended March 31, 2020 as a result of performance obligations satisfied.

 

On March 31, 2020, the Company had approximately $96.5 million of remaining performance obligations not yet satisfied or partly satisfied related to our Product segment. The Company expects to recognize approximately 100% of this amount as Product revenues during the next 24 months.

 
Lessor, Leases [Policy Text Block]

Leases in which the Company is a lessor

 

The table below presents the lease income recognized as a lessor:

 

   

Three Months Ended March 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Lease income relating to lease payments of operating leases

   $ 126,076     $ 125,908  

Total

   $ 126,076     $ 125,908  

v3.20.1
Note 1 - General and Basis of Presentation (Tables)
 3 Months Ended
Mar. 31, 2020
Notes Tables  
Schedule of Cash and Cash Equivalents [Table Text Block]
   

March 31,

    

December 31,

    

March 31,

  
   

2020

    

2019

    

2019

  
   

(Dollars in thousands)

  

Cash and cash equivalents

   $ 231,149     $ 71,173     $ 79,366  

Restricted cash and cash equivalents

     88,627       81,937       93,098  

Total Cash and cash equivalents and restricted cash and cash equivalents

   $ 319,776     $ 153,110     $ 172,464  
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]
   

March 31,

    

December 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Contract assets (*)

   $ 22,305     $ 38,365  

Contract liabilities (*)

     (5,937 )     (2,755 )

Contract assets, net

   $ 16,368     $ 35,610  
Operating Lease, Lease Income [Table Text Block]
   

Three Months Ended March 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Lease income relating to lease payments of operating leases

   $ 126,076     $ 125,908  

Total

   $ 126,076     $ 125,908  
v3.20.1
Note 2 - New Accounting Pronouncements (Tables)
 3 Months Ended
Mar. 31, 2020
Notes Tables  
Accounts Receivable, Allowance for Credit Loss [Table Text Block]
   

(Dollars in thousands)
         

Beginning balance of the allowance for expected credit losses

   $ 755  

Current period provision for expected credit losses

     24  

Ending balance of the allowance for expected credit losses

   $ 779  
v3.20.1
Note 3 - Inventories (Tables)
 3 Months Ended
Mar. 31, 2020
Notes Tables  
Schedule of Inventory, Current [Table Text Block]
   

March 31,

    

December 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Raw materials and purchased parts for assembly

   $ 20,559     $ 21,942  

Self-manufactured assembly parts and finished products

     13,548       13,007  

Total inventories

   $ 34,107     $ 34,949  
v3.20.1
Note 4 - Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2020
Notes Tables  
Fair Value, by Balance Sheet Grouping [Table Text Block]
           

March 31, 2020

  
           

Fair Value

  
   

Carrying

Value at

March 31,

2020

    

Total

    

Level 1

    

Level 2

    

Level 3

  
   

(Dollars in thousands)

  

Assets:

                                        

Current assets:

                                        

Cash equivalents (including restricted cash accounts)

   $ 36,978     $ 36,978     $ 36,978     $ —     $ —  

Derivatives:

                                        

Contingent receivable (1)

     99       99       —       —       99  

Currency forward contracts (2)

     928       928       —       928       —  

Liabilities:

                                        

Current liabilities:

                                        

Derivatives:

                                        

Contingent payables (1)

     (3,272 )     (3,272 )     —       —       (3,272 )
    $ 34,733     $ 34,733     $ 36,978     $ 928     $ (3,173 )
           

December 31, 2019

  
           

Fair Value

  
   

Carrying

Value at

December 31,

2019

    

Total

    

Level 1

    

Level 2

    

Level 3

  
   

(Dollars in thousands)

  

Assets

                                        

Current assets:

                                        

Cash equivalents (including restricted cash accounts)

   $ 28,316     $ 28,316     $ 28,316     $ —     $ —  

Derivatives:

                                        

Contingent receivables (1)

     102       102       —       —       102  

Currency forward contracts (2)

     362       362       —       362       —  

Liabilities:

                                        

Current liabilities:

                                        

Derivatives:

                                        

Contingent payable (1)

     (3,359 )     (3,359 )     —       —       (3,359 )
    $ 25,421     $ 25,421     $ 28,316     $ 362     $ (3,257 )
Derivative Instruments, Gain (Loss) [Table Text Block]
       

Amount of recognized

gain (loss)

  

Derivatives not designated

as hedging instruments

  

Location of recognized gain

(loss)

  

Three Months Ended

March 31,

  
       

2020

    

2019

  
                     

Currency forward contracts

  

Derivative and foreign currency transaction gains (losses)

     1,090       1,083  
        $ 1,090     $ 1,083  
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]
   

Fair Value

    

Carrying Amount

  
   

March 31,

2020

    

December 31,

2019

    

March 31,

2020

    

December 31,

2019

  
   

(Dollars in millions)

    

(Dollars in millions)

  

Olkaria III Loan - OPIC

   $ 206.5     $ 202.1     $ 188.1     $ 192.6  
Olkaria III plant 4 Loan - DEG 2       46.2       43.8       42.5       42.5  
Olkaria III plant 1 Loan - DEG 3       40.8       38.8       37.1       37.1  

Platanares Loan - OPIC

     118.9       115.3       102.4       104.5  

Amatitlan Loan

     25.5       26.4       25.4       26.3  

Senior Secured Notes:

                                

OFC 2 LLC ("OFC 2")

     218.1       210.9       198.4       203.0  

Don A. Campbell 1 ("DAC 1")

     81.7       78.5       76.6       78.2  

USG Prudential - NV

     32.8       30.6       28.3       28.4  

USG Prudential - ID

     18.3       18.6       18.9       19.6  

USG DOE

     46.2       45.0       39.4       40.8  

Senior Unsecured Bonds

     207.7       205.7       204.3       204.3  

Senior Unsecured Loan

     169.0       161.3       150.0       150.0  

Plumstriker

     21.4       21.7       21.3       21.6  

Other long-term debt

     16.2       16.3       16.6       17.4  
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]
   

Level 1

    

Level 2

    

Level 3

    

Total

  
   

(Dollars in millions)

  

Olkaria III - OPIC

     —       —       206.5       206.5  
Olkaria III plant 4 Loan - DEG 2     —       —       46.2       46.2  
Olkaria III plant 1 Loan - DEG 3     —       —       40.8       40.8  

Platanares Loan - OPIC

     —       —       118.9       118.9  

Amatitlan Loan

     —       25.5       —       25.5  

Senior Secured Notes:

                                

OFC 2 Senior Secured Notes

     —       —       218.1       218.1  

DAC 1 Senior Secured Notes

     —       —       81.7       81.7  

USG Prudential - NV

     —       —       32.8       32.8  

USG Prudential - ID

     —       —       18.3       18.3  

USG DOE

     —       —       46.2       46.2  

Senior Unsecured Bonds

     —       —       207.7       207.7  

Senior Unsecured Loan

     —       —       169.0       169.0  

Plumstriker

     —       21.4       —       21.4  

Other long-term debt

     —       —       16.2       16.2  

Commercial paper

     —       8.3       —       8.3  

Revolving lines of credit

     —       270.5       —       270.5  

Deposits

     11.8       —       —       11.8  
   

Level 1

    

Level 2

    

Level 3

    

Total

  
   

(Dollars in millions)

  

Olkaria III Loan - OPIC

     —       —       202.1       202.1  

Olkaria IV - DEG 2

     —       —       43.8       43.8  
Olkaria IV - DEG 3     —       —       38.8       38.8  

Platanares Loan - OPIC

     —       —       115.3       115.3  

Amatitlan Loan

     —       26.4       —       26.4  

Senior Secured Notes:

                                

OFC 2 Senior Secured Notes

     —       —       210.9       210.9  

DAC 1 Senior Secured Notes

     —       —       78.5       78.5  

USG Prudential - NV

     —       —       30.6       30.6  

USG Prudential - ID

     —       —       18.6       18.6  

USG DOE

     —       —       45.0       45.0  

Senior Unsecured Bonds

     —       —       205.7       205.7  

Senior Unsecured Loan

     —       —       161.3       161.3  

Plumstriker

     —       21.7       —       21.7  

Other long-term debt

     —       —       16.3       16.3  

Commercial paper

     —       50.0       —       50.0  

Revolving lines of credit

     —       40.6       —       40.6  

Deposits

     12.2       —       —       12.2  
v3.20.1
Note 6 - Interest Expense, Net (Tables)
 3 Months Ended
Mar. 31, 2020
Notes Tables  
Schedule of Other Nonoperating Expense, by Component [Table Text Block]
   

Three Months Ended

March 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Interest related to sale of tax benefits

   $ 2,324     $ 3,661  

Interest expense

     17,166       17,562  

Less — amount capitalized

     (2,217 )     —  
Total interest expense, net   $ 17,273     $ 21,223  
v3.20.1
Note 7 - Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2020
Notes Tables  
Schedule of Weighted Average Number of Shares [Table Text Block]
   

Three Months Ended

March 31,

  
   

2020

    

2019

  
                 

Weighted average number of shares used in computation of basic earnings per share add:

     51,036       50,709  

Additional shares from the assumed exercise of employee stock options

     490       303  

Weighted average number of shares used in computation of diluted earnings per share

     51,526       51,012  
v3.20.1
Note 8 - Business Segments (Tables)
 3 Months Ended
Mar. 31, 2020
Notes Tables  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
   

Electricity

    

Product

    

ESMS

    

Consolidated

  
   

(Dollars in thousands)

  

Three Months Ended March 31, 2020:

                                

Revenues from external customers:

                                

United States (1)

   $ 91,692     $ 398     $ 1,846     $ 93,936  

Foreign (2)

     51,164       47,013       —       98,177  

Net revenue from external customers

     142,856       47,411       1,846       192,113  

Intersegment revenue

     —       8,656       —       8,656  

Operating income (loss)

     58,630       3,872       (1,445 )     61,057  

Segment assets at period end (3) (*)

     3,139,603       230,831       75,179       3,445,613  

* Including unconsolidated investments

     76,008       —       —       76,008  
                                 

Three Months Ended March 31, 2019:

                                

Revenues from external customers:

                                

United States (1)

   $ 91,528     $ 11,243     $ 4,002     $ 106,773  

Foreign (2)

     51,380       40,885       —       92,265  

Net revenue from external customers

     142,908       52,128       4,002       199,038  

Intersegment revenue

     —       18,261       —       18,261  

Operating income

     51,551       4,252       (2,078 )     53,725  

Segment assets at period end (3) (*)

     2,950,444       125,248       67,522       3,143,214  

* Including unconsolidated investments

     71,885       —       —       71,885  
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]
   

Three Months Ended

March 31,

  
   

2020

    

2019

  
   

(Dollars in thousands)

  

Revenues:

                

Total segment revenues

   $ 192,113     $ 199,038  

Intersegment revenues

     8,656       18,261  

Elimination of intersegment revenues

     (8,656 )     (18,261 )

Total consolidated revenues

   $ 192,113     $ 199,038  
                 

Operating income:

                

Operating income

   $ 61,057     $ 53,725  

Interest income

     402       293  

Interest expense, net

     (17,273 )     (21,223 )

Derivatives and foreign currency transaction gains (losses)

     393       472  

Income attributable to sale of tax benefits

     4,132       7,764  

Other non-operating income (expense), net

     78       91  

Total consolidated income before income taxes and equity in income of investees

   $ 48,789     $ 41,122  
v3.20.1
Note 1 - General and Basis of Presentation 1 (Details Textual)
$ in Thousands
 1 Months Ended 2 Months Ended 3 Months Ended 12 Months Ended
Apr. 30, 2020
USD ($)
Apr. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Exploration Abandonment and Impairment Expense     $ 0 $ 0  
Cash, FDIC Insured Amount     14,400   $ 12,900
Cash, Uninsured Amount     228,800   84,800
Accounts Receivable, after Allowance for Credit Loss, Current, Total     168,924   $ 154,525
Product [Member]          
Revenue, Remaining Performance Obligation, Amount     $ 96,500    
Revenue, Remaining Performance Obligation, Percentage     100.00%    
Kenya Power and Lighting Co LTD [Member]          
Accounts Receivable, Past Due     $ 38,600    
Accounts Receivable, Past Due, Average Number of Days Overdue     61    
Kenya Power and Lighting Co LTD [Member] | Subsequent Event [Member]          
Proceeds, Overdue Accounts Receivable $ 8,000        
ENNE [Member]          
Accounts Receivable, Past Due     $ 20,100    
Accounts Receivable, Credit Loss Expense (Reversal)     $ 0    
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Primary Customers [Member]          
Concentration Risk, Percentage     50.00%   58.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Sierra Pacific Power Company And Nevada Power Company [Member]          
Concentration Risk, Percentage     19.20% 18.30%  
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Southern California Public Power Authority [Member]          
Concentration Risk, Percentage     18.70% 19.40%  
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Kenya Power and Lighting Co LTD [Member]          
Concentration Risk, Percentage     15.40% 15.30%  
Non-US [Member]          
Accounts Receivable, after Allowance for Credit Loss, Current, Total     $ 135,100   $ 118,800
Electricity Segment [Member] | Puna Geothermal Power Plant [Member]          
Proceeds from Insurance Settlement, Operating Activities   $ 3,000      
Electricity Segment [Member] | Puna Geothermal Power Plant [Member] | Cost of Sales [Member]          
Proceeds from Insurance Settlement, Operating Activities     $ 4,900    
v3.20.1
Note 1 - General and Basis of Presentation 2 (Details Textual)
Mar. 31, 2020
Product [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month) 24 months
v3.20.1
Note 1 - General and Basis of Presentation - Cash and Restricted Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2018
Cash and cash equivalents $ 231,149 $ 71,173 $ 79,366  
Restricted cash and cash equivalents 88,627 81,937 93,098  
Total Cash and cash equivalents and restricted cash and cash equivalents $ 319,776 $ 153,110 $ 172,464 $ 177,495
v3.20.1
Note 1 - General and Basis of Presentation - Contract Assets (Liabilities) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Contract assets (*) [1] $ 22,305 $ 38,365
Contract liabilities (*) [1] (5,937) (2,755)
Contract assets, net $ 16,368 $ 35,610
[1] Contract assets and contract liabilities are presented as "Costs and estimated earnings in excess of billings on uncompleted contracts" and "Billings in excess of costs and estimated earnings on uncompleted contracts", respectively, on the consolidated balance sheets.
v3.20.1
Note 1 - General and Basis of Presentation - Lease Income as Lessor (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Lease income relating to lease payments of operating leases $ 126,076 $ 125,908
Total $ 126,076 $ 125,908
v3.20.1
Note 2 - New Accounting Pronouncements (Details Textual) - USD ($)
$ in Thousands
Mar. 31, 2020
Jan. 01, 2020
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2018
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance $ 1,533,651   $ 1,515,410 $ 1,462,995 $ 1,445,096
Cumulative Effect, Period of Adoption, Adjustment [Member]          
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance     (755)   (58)
Retained Earnings [Member]          
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance $ 507,537   487,873 $ 442,531 422,222
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]          
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance     $ (755)   $ (58)
Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]          
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance   $ (800)      
v3.20.1
Note 2 - New Accounting Pronouncements - Changes in the Allowance for Expected Credit Losses (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
USD ($)
Beginning balance of the allowance for expected credit losses $ 0
Ending balance of the allowance for expected credit losses 779
Accounting Standards Update 2016-13 [Member]  
Beginning balance of the allowance for expected credit losses 755
Current period provision for expected credit losses 24
Ending balance of the allowance for expected credit losses $ 779
v3.20.1
Note 3 - Inventories - Inventories, Current (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Raw materials and purchased parts for assembly $ 20,559 $ 21,942
Self-manufactured assembly parts and finished products 13,548 13,007
Total inventories $ 34,107 $ 34,949
v3.20.1
Note 4 - Fair Value of Financial Instruments - Financial Assets and Liabilities at Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Reported Value Measurement [Member]    
Cash equivalents (including restricted cash accounts) $ 36,978 $ 28,316
Fair Value, Net Asset (Liability), Total 34,733 25,421
Reported Value Measurement [Member] | Contingent Receivable [Member]    
Derivative Asset, Current [1] 99 102
Reported Value Measurement [Member] | Currency Forward Contracts [Member]    
Derivative Asset, Current [2] 928 362
Reported Value Measurement [Member] | Contingent Payable [Member]    
Derivative Liability, Current [1] (3,272) (3,359)
Estimate of Fair Value Measurement [Member]    
Cash equivalents (including restricted cash accounts) 36,978 28,316
Fair Value, Net Asset (Liability), Total 34,733 25,421
Estimate of Fair Value Measurement [Member] | Contingent Receivable [Member]    
Derivative Asset, Current [1] 99 102
Estimate of Fair Value Measurement [Member] | Currency Forward Contracts [Member]    
Derivative Asset, Current [2] 928 362
Estimate of Fair Value Measurement [Member] | Contingent Payable [Member]    
Derivative Liability, Current [1] (3,272) (3,359)
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]    
Cash equivalents (including restricted cash accounts) 36,978 28,316
Fair Value, Net Asset (Liability), Total 36,978 28,316
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Contingent Receivable [Member]    
Derivative Asset, Current [1] 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Currency Forward Contracts [Member]    
Derivative Asset, Current [2] 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Contingent Payable [Member]    
Derivative Liability, Current [1] 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]    
Cash equivalents (including restricted cash accounts) 0 0
Fair Value, Net Asset (Liability), Total 928 362
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Contingent Receivable [Member]    
Derivative Asset, Current [1] 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Currency Forward Contracts [Member]    
Derivative Asset, Current [2] 928 362
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Contingent Payable [Member]    
Derivative Liability, Current [1] 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]    
Cash equivalents (including restricted cash accounts) 0 0
Fair Value, Net Asset (Liability), Total (3,173) (3,257)
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Receivable [Member]    
Derivative Asset, Current [1] 99 102
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Currency Forward Contracts [Member]    
Derivative Asset, Current [2] 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Payable [Member]    
Derivative Liability, Current [1] $ (3,272) $ (3,359)
[1] These amounts relate to contingent receivables and payables relating to acquisition of the Guadeloupe power plant, valued primarily based on unobservable inputs and are included within "Prepaid expenses and other", "Accounts payable and accrued expenses" and "Other long-term liabilities" on March 31, 2020 and December 31, 2019 in the consolidated balance sheets 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.
[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 "Prepaid expenses and other" and "Accounts payable and accrued expenses", as applicable, on March 31, 2020 and December 31, 2019, in the condensed consolidated balance sheets with the corresponding gain or loss being recognized within "Derivatives and foreign currency transaction gains (losses)" in the consolidated statement of operations and comprehensive income.
v3.20.1
Note 4 - Fair Value of Financial Instruments - Amounts of Gain (Loss) Recognized in Condensed Consolidated Statements on Derivative Instruments Not Designated as Hedges (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Amount of gain (loss) recognized $ 1,090 $ 1,083
Foreign Currency Gain (Loss) [Member] | Currency Forward Contracts [Member]    
Amount of gain (loss) recognized $ 1,090 $ 1,083
v3.20.1
Note 4 - Fair Value of Financial Instruments - Fair Value of Long-term Debt Approximates Its Carrying Amount, Exceptions (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Estimate of Fair Value Measurement [Member]    
Other long-term debt $ 16.2 $ 16.3
Reported Value Measurement [Member]    
Other long-term debt 16.6 17.4
Olkaria III OPIC [Member]    
Loans 206.5 202.1
Olkaria III OPIC [Member] | Estimate of Fair Value Measurement [Member]    
Loans 206.5 202.1
Olkaria III OPIC [Member] | Reported Value Measurement [Member]    
Loans 188.1 192.6
Olkaria III Plant 4 Loan - DEG 2 [Member]    
Loans 46.2 43.8
Olkaria III Plant 4 Loan - DEG 2 [Member] | Estimate of Fair Value Measurement [Member]    
Loans 46.2 43.8
Olkaria III Plant 4 Loan - DEG 2 [Member] | Reported Value Measurement [Member]    
Loans 42.5 42.5
Olkaria III plant 1 Loan - DEG 3 [Member]    
Loans 40.8 38.8
Olkaria III plant 1 Loan - DEG 3 [Member] | Estimate of Fair Value Measurement [Member]    
Loans 40.8 38.8
Olkaria III plant 1 Loan - DEG 3 [Member] | Reported Value Measurement [Member]    
Loans 37.1 37.1
Platanares Loan - OPIC [Member]    
Loans 118.9 115.3
Platanares Loan - OPIC [Member] | Estimate of Fair Value Measurement [Member]    
Loans 118.9 115.3
Platanares Loan - OPIC [Member] | Reported Value Measurement [Member]    
Loans 102.4 104.5
Amatitlan Loan [Member]    
Loans 25.5 26.4
Amatitlan Loan [Member] | Estimate of Fair Value Measurement [Member]    
Loans 25.5 26.4
Amatitlan Loan [Member] | Reported Value Measurement [Member]    
Loans 25.4 26.3
OFC Two Senior Secured Notes [Member] | Estimate of Fair Value Measurement [Member]    
Notes 218.1 210.9
OFC Two Senior Secured Notes [Member] | Reported Value Measurement [Member]    
Notes 198.4 203.0
Don A. Campbell 1 ("DAC1") [Member]    
Notes 81.7 78.5
Don A. Campbell 1 ("DAC1") [Member] | Estimate of Fair Value Measurement [Member]    
Notes 81.7 78.5
Don A. Campbell 1 ("DAC1") [Member] | Reported Value Measurement [Member]    
Notes 76.6 78.2
USG Prudential - NV [Member]    
Notes 32.8 30.6
USG Prudential - NV [Member] | Estimate of Fair Value Measurement [Member]    
Notes 32.8 30.6
USG Prudential - NV [Member] | Reported Value Measurement [Member]    
Notes 28.3 28.4
USG Prudential - ID [Member]    
Notes 18.3 18.6
USG Prudential - ID [Member] | Estimate of Fair Value Measurement [Member]    
Notes 18.3 18.6
USG Prudential - ID [Member] | Reported Value Measurement [Member]    
Notes 18.9 19.6
USG DOE [Member]    
Notes 46.2 45.0
USG DOE [Member] | Estimate of Fair Value Measurement [Member]    
Notes 46.2 45.0
USG DOE [Member] | Reported Value Measurement [Member]    
Notes 39.4 40.8
Senior Unsecured Bonds [Member]    
Senior Unsecured debt 207.7 205.7
Senior Unsecured Bonds [Member] | Estimate of Fair Value Measurement [Member]    
Senior Unsecured debt 207.7 205.7
Senior Unsecured Bonds [Member] | Reported Value Measurement [Member]    
Senior Unsecured debt 204.3 204.3
Senior Unsecured Loan [Member]    
Senior Unsecured debt 169.0 161.3
Senior Unsecured Loan [Member] | Estimate of Fair Value Measurement [Member]    
Senior Unsecured debt 169.0 161.3
Senior Unsecured Loan [Member] | Reported Value Measurement [Member]    
Senior Unsecured debt 150.0 150.0
Plumstriker Loan Agreement [Member]    
Loans 21.4  
Senior Unsecured debt   21.7
Plumstriker Loan Agreement [Member] | Estimate of Fair Value Measurement [Member]    
Loans 21.4 21.7
Plumstriker Loan Agreement [Member] | Reported Value Measurement [Member]    
Loans $ 21.3 $ 21.6
v3.20.1
Note 4 - Fair Value of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Revolving lines of credit $ 270.5 $ 40.6
Deposits 11.8 12.2
Commercial Paper [Member]    
Commercial paper 8.3 50.0
Olkaria III OPIC [Member]    
Loans 206.5 202.1
Olkaria III Plant 4 Loan - DEG 2 [Member]    
Loans 46.2 43.8
Olkaria III plant 1 Loan - DEG 3 [Member]    
Loans 40.8 38.8
Platanares Loan - OPIC [Member]    
Loans 118.9 115.3
Amatitlan Loan [Member]    
Loans 25.5 26.4
OFC Senior Secured Notes [Member]    
Notes 218.1 210.9
Don A. Campbell 1 ("DAC1") [Member]    
Notes 81.7 78.5
USG Prudential - NV [Member]    
Notes 32.8 30.6
USG Prudential - ID [Member]    
Notes 18.3 18.6
USG DOE [Member]    
Notes 46.2 45.0
Senior Unsecured Bonds [Member]    
Senior Unsecured debt 207.7 205.7
Senior Unsecured Loan [Member]    
Senior Unsecured debt 169.0 161.3
Plumstriker Loan Agreement [Member]    
Loans 21.4  
Senior Unsecured debt   21.7
Other Long-term Debt [Member]    
Senior Unsecured debt 16.2 16.3
Fair Value, Inputs, Level 1 [Member]    
Revolving lines of credit 0.0 0.0
Deposits 11.8 12.2
Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member]    
Commercial paper 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | Olkaria III OPIC [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | Olkaria III Plant 4 Loan - DEG 2 [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | Olkaria III plant 1 Loan - DEG 3 [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | Platanares Loan - OPIC [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | Amatitlan Loan [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | OFC Senior Secured Notes [Member]    
Notes 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | Don A. Campbell 1 ("DAC1") [Member]    
Notes 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | USG Prudential - NV [Member]    
Notes 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | USG Prudential - ID [Member]    
Notes 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | USG DOE [Member]    
Notes 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | Senior Unsecured Bonds [Member]    
Senior Unsecured debt 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | Senior Unsecured Loan [Member]    
Senior Unsecured debt 0.0 0.0
Fair Value, Inputs, Level 1 [Member] | Plumstriker Loan Agreement [Member]    
Loans 0.0  
Senior Unsecured debt   0.0
Fair Value, Inputs, Level 1 [Member] | Other Long-term Debt [Member]    
Senior Unsecured debt 0.0 0.0
Fair Value, Inputs, Level 2 [Member]    
Revolving lines of credit 270.5 40.6
Deposits 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member]    
Commercial paper 8.3 50.0
Fair Value, Inputs, Level 2 [Member] | Olkaria III OPIC [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | Olkaria III Plant 4 Loan - DEG 2 [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | Olkaria III plant 1 Loan - DEG 3 [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | Platanares Loan - OPIC [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | Amatitlan Loan [Member]    
Loans 25.5 26.4
Fair Value, Inputs, Level 2 [Member] | OFC Senior Secured Notes [Member]    
Notes 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | Don A. Campbell 1 ("DAC1") [Member]    
Notes 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | USG Prudential - NV [Member]    
Notes 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | USG Prudential - ID [Member]    
Notes 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | USG DOE [Member]    
Notes 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | Senior Unsecured Bonds [Member]    
Senior Unsecured debt 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | Senior Unsecured Loan [Member]    
Senior Unsecured debt 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | Plumstriker Loan Agreement [Member]    
Loans 21.4  
Senior Unsecured debt   21.7
Fair Value, Inputs, Level 2 [Member] | Other Long-term Debt [Member]    
Senior Unsecured debt 0.0 0.0
Fair Value, Inputs, Level 3 [Member]    
Revolving lines of credit 0.0 0.0
Deposits 0.0 0.0
Fair Value, Inputs, Level 3 [Member] | Commercial Paper [Member]    
Commercial paper 0.0 0.0
Fair Value, Inputs, Level 3 [Member] | Olkaria III OPIC [Member]    
Loans 206.5 202.1
Fair Value, Inputs, Level 3 [Member] | Olkaria III Plant 4 Loan - DEG 2 [Member]    
Loans 46.2 43.8
Fair Value, Inputs, Level 3 [Member] | Olkaria III plant 1 Loan - DEG 3 [Member]    
Loans 40.8 38.8
Fair Value, Inputs, Level 3 [Member] | Platanares Loan - OPIC [Member]    
Loans 118.9 115.3
Fair Value, Inputs, Level 3 [Member] | Amatitlan Loan [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 3 [Member] | OFC Senior Secured Notes [Member]    
Notes 218.1 210.9
Fair Value, Inputs, Level 3 [Member] | Don A. Campbell 1 ("DAC1") [Member]    
Notes 81.7 78.5
Fair Value, Inputs, Level 3 [Member] | USG Prudential - NV [Member]    
Notes 32.8 30.6
Fair Value, Inputs, Level 3 [Member] | USG Prudential - ID [Member]    
Notes 18.3 18.6
Fair Value, Inputs, Level 3 [Member] | USG DOE [Member]    
Notes 46.2 45.0
Fair Value, Inputs, Level 3 [Member] | Senior Unsecured Bonds [Member]    
Senior Unsecured debt 207.7 205.7
Fair Value, Inputs, Level 3 [Member] | Senior Unsecured Loan [Member]    
Senior Unsecured debt 169.0 161.3
Fair Value, Inputs, Level 3 [Member] | Plumstriker Loan Agreement [Member]    
Loans 0.0  
Senior Unsecured debt   0.0
Fair Value, Inputs, Level 3 [Member] | Other Long-term Debt [Member]    
Senior Unsecured debt $ 16.2 $ 16.3
v3.20.1
Note 5 - Stock-based Compensation (Details Textual)
shares in Thousands
Mar. 31, 2020
shares
The 2018 Incentive Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) 0
v3.20.1
Note 6 - Interest Expense, Net - Components of Interest Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Interest related to sale of tax benefits $ 2,324 $ 3,661
Interest expense 17,166 17,562
Less — amount capitalized (2,217) 0
Total interest expense, net $ 17,273 $ 21,223
v3.20.1
Note 7 - Earnings Per Share (Details Textual) - shares
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 4,535 249,908
v3.20.1
Note 7 - Earnings Per Share - Shares Used to Calculate Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Weighted average number of shares used in computation of basic earnings per share add: (in shares) 51,036 50,709
Additional shares from the assumed exercise of employee stock options (in shares) 490 303
Weighted average number of shares used in computation of diluted earnings per share (in shares) 51,526 51,012
v3.20.1
Note 8 - Business Segments (Details Textual)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Number of Reportable Segments 3    
Revenue from Contract with Customer, Including Assessed Tax $ 192,113 $ 199,038  
Goodwill, Ending Balance 19,963   $ 20,140
Electricity Segment [Member]      
Revenue from Contract with Customer, Including Assessed Tax 142,856 142,908  
Goodwill, Ending Balance 20,000 20,100  
Electricity Segment [Member] | Accounting Standards Update 2014-09 [Member]      
Revenue from Contract with Customer, Including Assessed Tax 16,800 17,000  
Product and Energy Storage and Management Services Segments [Member]      
Goodwill, Ending Balance $ 0 $ 0  
v3.20.1
Note 8 - Business Segments - Summarized Financial Information Concerning Reportable Segments (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Revenues $ 192,113 $ 199,038  
Operating income (loss) 61,057 53,725  
Segment assets at period end 3,445,613 [1],[2] 3,143,214 [1],[3] $ 3,250,494
Intersegment Eliminations [Member]      
Revenues 8,656 18,261  
Segment Reconciling Items [Member]      
Segment assets at period end 76,008 71,885  
Electricity Segment [Member]      
Revenues 142,856 142,908  
Operating income (loss) 58,630 51,551  
Segment assets at period end [1] 3,139,603 [2] 2,950,444 [3]  
Electricity Segment [Member] | Intersegment Eliminations [Member]      
Revenues 0 0  
Electricity Segment [Member] | Segment Reconciling Items [Member]      
Segment assets at period end 76,008 71,885  
Product Segment [Member]      
Revenues 47,411 52,128  
Operating income (loss) 3,872 4,252  
Segment assets at period end [1] 230,831 [2] 125,248 [3]  
Product Segment [Member] | Intersegment Eliminations [Member]      
Revenues 8,656 18,261  
Product Segment [Member] | Segment Reconciling Items [Member]      
Segment assets at period end 0 0  
Other Segments [Member]      
Revenues 1,846 4,002  
Operating income (loss) (1,445) (2,078)  
Segment assets at period end [1] 75,179 [2] 67,522 [3]  
Other Segments [Member] | Intersegment Eliminations [Member]      
Revenues 0 0  
Other Segments [Member] | Segment Reconciling Items [Member]      
Segment assets at period end 0 0  
UNITED STATES      
Revenues [4] 93,936 106,773  
UNITED STATES | Electricity Segment [Member]      
Revenues [4] 91,692 91,528  
UNITED STATES | Product Segment [Member]      
Revenues [4] 398 11,243  
UNITED STATES | Other Segments [Member]      
Revenues [4] 1,846 4,002  
Non-US [Member]      
Revenues [5] 98,177 92,265  
Non-US [Member] | Electricity Segment [Member]      
Revenues [5] 51,164 51,380  
Non-US [Member] | Product Segment [Member]      
Revenues [5] 47,013 40,885  
Non-US [Member] | Other Segments [Member]      
Revenues [5] $ 0 $ 0  
[1] Electricity segment assets include goodwill in the amount of $20.0 million and $20.1 million as of March 31, 2020 and 2019, respectively. No goodwill is included in the Product and ESMS segment assets as of March 31, 2020 and 2019.
[2] Including unconsolidated investments 76,008 76,008
[3] Including unconsolidated investments 71,885 71,885
[4] Electricity segment revenues in the United States are all accounted under lease accounting except for $16.8 million and $17.0 million in the three months ended March 31, 2020 and 2019, respectively, that are accounted under ASC 606. Product and ESMS segment revenues in the United States are accounted under ASC 606.
[5] Electricity segment revenues in foreign countries are all accounted under lease accounting. Product segment revenues in foreign countries are accounted under ASC 606.
v3.20.1
Note 8 - Business Segments - Reconciling Information Between Reportable Segments and Consolidated Totals (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Revenue $ 192,113 $ 199,038
Operating income (loss) 61,057 53,725
Interest income 402 293
Interest expense, net (17,273) (21,223)
Derivatives and foreign currency transaction gains (losses) 393 472
Income attributable to sale of tax benefits 4,132 7,764
Other non-operating income (expense), net 78 91
Total consolidated income before income taxes and equity in income of investees 48,789 41,122
Intersegment Eliminations [Member]    
Revenue 8,656 18,261
Consolidation, Eliminations [Member]    
Revenue $ (8,656) $ (18,261)
v3.20.1
Note 9 - Commitments and Contingencies (Details Textual) - Former Local Sales Representative vs. Ormat [Member] - Pending Litigation [Member]
$ in Millions
Mar. 29, 2016
USD ($)
Loss Contingency, Damages Sought, Value $ 4.6
Loss Contingency, Additional Damages Sought for Ormat Geothermal Products Sales in Chile, Percent 3.75%
Loss Contingency, Damages Sought, Ormat Geothermal Products Sales in Chile, Period (Year) 10 years
v3.20.1
Note 10 - Income Taxes (Details Textual) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 11 Months Ended
Dec. 31, 2019
Mar. 31, 2020
Mar. 31, 2019
Nov. 30, 2019
Effective Income Tax Rate Reconciliation, Percent, Total   37.20% 34.10%  
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent   21.00%    
Foreign Tax Authority [Member] | Kenya Revenue Authority [Member] | Tax Years 2013-2017 [Member]        
Income Tax Examination, Settlement Demanded Including Accrued Interest and Penalties $ 17     $ 202
v3.20.1
Note 11 - Subsequent Events (Details Textual)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
May 08, 2020
USD ($)
$ / shares
Apr. 30, 2020
USD ($)
MWh
Mar. 31, 2020
USD ($)
Mar. 31, 2019
USD ($)
Apr. 20, 2020
USD ($)
Apr. 17, 2020
MWh
Apr. 16, 2020
MWh
Apr. 06, 2020
USD ($)
Dividends, Common Stock, Total     $ 5,614 $ 5,579        
Subsequent Event [Member]                
Dividends, Common Stock, Total $ 5,600              
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ / shares $ 0.11              
Dividends Payable, Date of Record May 21, 2020              
Dividends Payable, Date to be Paid Jun. 02, 2020              
Subsequent Event [Member] | Pomona Battery Storage Facility [Member]                
Storage Capacity of Acquired Facility (Megawatt-Hour) | MWh   20            
Payments to Acquire Productive Assets, Total   $ 47,000            
Subsequent Event [Member] | Olkaria Compex [Member]                
Capacity of Plant, Contracted Level (Megawatt-Hour) | MWh           133.9 150  
Subsequent Event [Member] | Additional Series 3 Bonds [Member]                
Debt Instrument, Face Amount               $ 50,000
Debt Instrument, Interest Rate, Stated Percentage               4.45%
Subsequent Event [Member] | Second Addition to Series 3 Bonds [Member]                
Debt Instrument, Face Amount         $ 14,500      
Debt Instrument, Interest Rate, Stated Percentage         4.45%      
Subsequent Event [Member] | Second Addendum Migdal Loan [Member]                
Debt Instrument, Face Amount   $ 50,000            
Debt Instrument, Interest Rate, Stated Percentage   5.44%            
Debt Instrument, Principal to Be Repaid in Installments   $ 31,500            
Debt Instrument, Number of Semi-annual Payments   15            
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid   $ 18,500