ORMAT TECHNOLOGIES, INC., 10-K filed on 3/2/2020
Annual Report
v3.19.3.a.u2
Document And Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2019
Feb. 26, 2020
Jun. 30, 2019
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 FY    
Document Fiscal Year Focus 2019    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2019    
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    
Title of 12(b) Security Common Stock $0.001 Par Value    
Trading Symbol ORA    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
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 Public Float     $ 2,527,613,074
Entity Common Stock, Shares Outstanding   51,031,652  
v3.19.3.a.u2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 71,173 $ 98,802
Restricted cash and cash equivalents (primarily related to VIEs) 81,937 78,693
Receivables:    
Trade (primarily related to VIEs) 154,525 137,581
Other 22,048 19,393
Inventories 34,949 45,024
Costs and estimated earnings in excess of billings on uncompleted contracts [1] 38,365 42,130
Prepaid expenses and other 12,667 51,441
Total current assets 415,664 473,064
Investment in unconsolidated companies 81,140 71,983
Deposits and other 38,284 18,209
Deferred income taxes 129,510 113,760
Property, plant and equipment, net 1,971,415 1,959,578
Construction-in-process 376,555 261,690
Operating leases right of use 17,405 0
Finance leases right of use 14,161 0
Deferred financing and lease costs, net 0 3,242
Intangible assets, net 186,220 199,874
Goodwill 20,140 19,950
Total assets [2] 3,250,494 [3] 3,121,350 [4]
Current liabilities:    
Accounts payable and accrued expenses 141,857 116,362
Short term revolving credit lines with banks (full recourse) 40,550 159,000
Commercial paper 50,000 0
Billings in excess of costs and estimated earnings on uncompleted contracts 2,755 18,402
Current portion of long-term debt:    
Senior secured notes 24,473 33,493
Other loans 34,458 29,687
Full recourse 76,572 5,000
Operating lease liabilities 2,743 0
Finance lease liabilities 3,068 0
Total current liabilities 376,476 361,944
Long-term debt, net of current portion:    
Senior secured notes (less deferred financing costs of $6,317 and $7,434, respectively) 339,336 375,337
Other loans (less deferred financing costs of $10,482 and $9,354, respectively) 317,395 320,242
Senior unsecured bonds (less deferred financing costs of $675 and $758, respectively) 286,453 303,575
Other loans (less deferred financing costs of $1,519 and $921, respectively) 68,747 41,579
Operating lease liabilities 14,008 0
Finance lease liabilities 11,209 0
Liability associated with sale of tax benefits 123,468 69,893
Deferred lease income 1,201 48,433
Deferred income taxes 97,126 61,323
Liability for unrecognized tax benefits 14,643 11,769
Liabilities for severance pay 18,751 17,994
Asset retirement obligation 50,183 39,475
Other long-term liabilities 6,838 16,087
Total liabilities 1,725,834 1,667,651
Commitments and contingencies (Note 22)
Redeemable noncontrolling interest 9,250 8,603
Equity:    
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 51,031,652 and 50,699,781 issued and outstanding as of December 31, 2019 and December 31, 2018, respectively 51 51
Additional paid-in capital 913,150 901,363
Retained earnings 487,873 422,222
Accumulated other comprehensive loss (8,654) (3,799)
Total stockholders' equity attributable to Company's stockholders 1,392,420 1,319,837
Noncontrolling interest 122,990 125,259
Total equity 1,515,410 1,445,096
Total liabilities, redeemable noncontrolling interest and equity $ 3,250,494 $ 3,121,350
[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. The contract liabilities balance at the beginning of the year was fully recognized as product revenues during the years ended December 31, 2019 and 2018 as a result of performance obligations satisfied.
[2] Electricity segment assets include goodwill in the amount of $20.1 million, $20.0 million and $7.6 as of December 31, 2019, 2018 and 2017, respectively. No goodwill is included in the Product and Energy Storage and Management Services segment assets as of December 31, 2019 and 2018. Energy Storage and Management Services segment assets as December 31, 2017 include goodwill in the amount of $13.5 million. For further information on goodwill, see Note 9 - Intangible assets and goodwill to the consolidated financial statements.
[3] Including unconsolidated investments 81,140 — — 81,140
[4] Including unconsolidated investments 34,084 — — 34,084
v3.19.3.a.u2
Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Property, plant and equipment, net $ 1,971,415 $ 1,959,578
Construction-in-process 376,555 261,690
Operating leases right of use 17,405 0
Finance leases right of use $ 14,161 $ 0
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) 51,031,652 50,699,781
Common stock, shares outstanding (in shares) 51,031,652 50,699,781
Senior Secured Notes [Member]    
Deferred financing costs $ 6,317 $ 7,434
Other Loans, Limited and Non-recourse [Member]    
Deferred financing costs 10,482 9,354
Senior Unsecured Bonds [Member]    
Deferred financing costs 675 758
Other Loans, Full Recourse [Member]    
Deferred financing costs 1,519 921
Variable Interest Entity [Member]    
Property, plant and equipment, net 1,880,547 1,859,228
Construction-in-process 149,830 $ 104,085
Operating leases right of use 4,688  
Finance leases right of use $ 8,479  
v3.19.3.a.u2
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenues:      
Revenue [1] $ 746,044 $ 719,267 $ 692,812
Cost of revenues:      
Cost of revenues 476,721 448,832 424,360
Gross profit 269,323 270,435 268,452
Operating expenses:      
Research and development expenses 4,647 4,183 3,157
Selling and marketing expenses 15,047 19,802 15,600
General and administrative expenses 55,833 47,750 42,881
Impairment charge 0 13,464 0
Write-off of unsuccessful exploration activities 0 126 1,796
Operating income 193,796 185,110 205,018
Other income (expense):      
Interest income 1,515 974 988
Interest expense, net (80,384) (70,924) (54,142)
Derivatives and foreign currency transaction gains (losses) 624 (4,761) 2,654
Income attributable to sale of tax benefits 20,872 19,003 17,878
Other non-operating income (expense), net 880 7,779 (1,666)
Income from operations before income tax and equity in earnings (losses) of investees 137,303 137,181 170,730
Income tax (provision) benefit (45,613) (34,733) (21,664)
Equity in earnings (losses) of investees, net 1,853 7,663 (1,957)
Net income 93,543 110,111 147,109
Net income attributable to noncontrolling interest (5,448) (12,145) (14,695)
Net income attributable to the Company's stockholders 88,095 97,966 132,414
Comprehensive income:      
Net income 93,543 110,111 147,109
Other comprehensive income (loss), net of related taxes:      
Change in foreign currency translation adjustments (1,810) (1,831) 3,440
Change in unrealized gains or losses in respect of the Company's share in derivatives instruments of unconsolidated investment (3,417) 2,235 804
Change in respect of derivative instruments designated for cash flow hedge 75 81 135
Amortization of unrealized gains in respect of derivative instruments designated for cash flow hedge (31) (57) (73)
Comprehensive income 88,360 110,539 151,415
Comprehensive income attributable to noncontrolling interest (5,120) (11,666) (15,532)
Comprehensive income attributable to the Company's stockholders $ 83,240 $ 98,873 $ 135,883
Basic:      
Net income (in dollars per share) $ 1.73 $ 1.93 $ 2.64
Diluted:      
Net income (in dollars per share) $ 1.72 $ 1.92 $ 2.61
Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:      
Basic (in shares) 50,867 50,643 50,110
Diluted (in shares) 51,227 50,969 50,769
Electricity [Member]      
Revenues:      
Revenue $ 540,333 $ 509,879 $ 465,593
Cost of revenues:      
Cost of revenues 312,835 298,255 266,840
Product [Member]      
Revenues:      
Revenue 191,009 201,743 224,483
Cost of revenues:      
Cost of revenues 145,974 140,697 152,094
Energy Storage and Management Services [Member]      
Revenues:      
Revenue 14,702 7,645 2,736
Cost of revenues:      
Cost of revenues $ 17,912 $ 9,880 $ 5,426
[1] Revenues as reported in the geographic area in which they originate.
v3.19.3.a.u2
Consolidated Statements of Equity - USD ($)
shares in Thousands, $ in Thousands
ORTP Class B Membership [Member]
Common Stock [Member]
ORTP Class B Membership [Member]
Additional Paid-in Capital [Member]
ORTP Class B Membership [Member]
Retained Earnings [Member]
ORTP Class B Membership [Member]
AOCI Attributable to Parent [Member]
ORTP Class B Membership [Member]
Parent [Member]
ORTP Class B Membership [Member]
Noncontrolling Interest [Member]
ORTP Class B Membership [Member]
OPC Class B Membership [Member]
Common Stock [Member]
OPC Class B Membership [Member]
Additional Paid-in Capital [Member]
OPC Class B Membership [Member]
Retained Earnings [Member]
OPC Class B Membership [Member]
AOCI Attributable to Parent [Member]
OPC Class B Membership [Member]
Parent [Member]
OPC Class B Membership [Member]
Noncontrolling Interest [Member]
OPC Class B Membership [Member]
Guadeloupe 1 [Member]
Common Stock [Member]
Guadeloupe 1 [Member]
Additional Paid-in Capital [Member]
Guadeloupe 1 [Member]
Retained Earnings [Member]
Guadeloupe 1 [Member]
AOCI Attributable to Parent [Member]
Guadeloupe 1 [Member]
Parent [Member]
Guadeloupe 1 [Member]
Noncontrolling Interest [Member]
Guadeloupe 1 [Member]
Tungsten [Member]
Common Stock [Member]
Tungsten [Member]
Additional Paid-in Capital [Member]
Tungsten [Member]
Retained Earnings [Member]
Tungsten [Member]
AOCI Attributable to Parent [Member]
Tungsten [Member]
Parent [Member]
Tungsten [Member]
Noncontrolling Interest [Member]
Tungsten [Member]
McGinness Hills Phase III [Member]
Common Stock [Member]
McGinness Hills Phase III [Member]
Additional Paid-in Capital [Member]
McGinness Hills Phase III [Member]
Retained Earnings [Member]
McGinness Hills Phase III [Member]
AOCI Attributable to Parent [Member]
McGinness Hills Phase III [Member]
Parent [Member]
McGinness Hills Phase III [Member]
Noncontrolling Interest [Member]
McGinness Hills Phase III [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, 2016                                                                       49,667            
Balance at Dec. 31, 2016                                                                       $ 50 $ 869,463 $ 215,352 $ (8,175) $ 1,076,690 $ 91,582 $ 1,168,272
Stock-based compensation                                                                       $ 0 8,760 0 0 8,760 0 8,760
Exercise of options by employees and directors (in shares)                                                                       942            
Exercise of options by employees and directors                                                                       $ 1 16,111 0 0 16,112 0 16,112
Cash paid to noncontrolling interest                                                                       0 0 0 0 0 (21,313) (21,313)
Cash dividend declared                                                                       0 0 (20,511) 0 (20,511) 0 (20,511)
Buyout of Class B membership $ 0 $ 2,913 $ 0 $ 0 $ 2,913 $ (6,964) $ (4,051) $ 0 $ (8,469) $ 0 $ 0 $ (8,469) $ 6,537 $ (1,932)                                                        
Net income                                                                       0 0 132,414 0 132,414 13,643 146,057
Change in foreign currency translation adjustments                                                                       0 0 0 2,603 2,603 837 3,440
Change in respect of derivative instruments designated for cash flow hedge                                                                       0 0 0 135 135 0 135
Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment                                                                       0 0 0 804 804 0 804
Amortization of unrealized gains in respect of derivative instruments designated for cash flow hedge                                                                       $ 0 0 0 (73) (73) 0 (73)
Balance (in shares) at Dec. 31, 2017                                                                       50,609            
Balance at Dec. 31, 2017                                                                       $ 51 888,778 327,255 (4,706) 1,211,378 84,322 1,295,700
Stock-based compensation                                                                       $ 0 10,218 0 0 10,218 0 10,218
Exercise of options by employees and directors (in shares)                                                                       91            
Exercise of options by employees and directors                                                                       $ 0 0 0 0 0 0 0
Cash paid to noncontrolling interest                                                                       0 0 0 0 0 (10,972) (10,972)
Cash dividend declared                                                                       0 0 (26,834) 0 (26,834) 0 (26,834)
Net income                                                                       0 0 97,966 0 97,966 11,155 109,121
Change in foreign currency translation adjustments                                                                       0 0 0 (1,352) (1,352) (479) (1,831)
Change in respect of derivative instruments designated for cash flow hedge                                                                       0 0 0 81 81 0 81
Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment                                                                       0 0 0 2,235 2,235 0 2,235
Amortization of unrealized gains in respect of derivative instruments designated for cash flow hedge                                                                       0 0 0 (57) (57) 0 (57)
Cumulative effect of changes in accounting principles at Dec. 31, 2017                                                                       0 0 23,835 0 23,835 0 23,835
Adjusted balance as of the beginning of the year at Dec. 31, 2017                                                                       51 888,778 351,090 (4,706) 1,235,213 84,322 1,319,535
Increase in noncontrolling interest                             $ 0 $ 0 $ 0 $ 0 $ 0 $ 5,339 $ 5,339 $ 0 $ 0 $ 0 $ 0 $ 0 $ 996 $ 996                            
Tax effect of partnership interest buyout                                                                       0 2,367 0 0 2,367 0 2,367
Purchase of U.S. Geothermal                                                                       $ 0 0 0 0 0 34,898 34,898
Balance (in shares) at Dec. 31, 2018                                                                       50,700            
Balance at Dec. 31, 2018                                                                       $ 51 901,363 422,222 (3,799) 1,319,837 125,259 1,445,096
Stock-based compensation                                                                       $ 0 9,358 0 0 9,358 0 9,358
Exercise of options by employees and directors (in shares)                                                                       332            
Exercise of options by employees and directors                                                                       $ 0 2,429 0 0 2,429 0 2,429
Cash paid to noncontrolling interest                                                                       0 0 0 0 0 (8,329) (8,329)
Cash dividend declared                                                                       0 0 (22,386) 0 (22,386) 0 (22,386)
Net income                                                                       0 0 88,095 0 88,095 4,316 92,411
Change in foreign currency translation adjustments                                                                       0 0 0 (1,482) (1,482) (328) (1,810)
Change in respect of derivative instruments designated for cash flow hedge                                                                       0 0 0 75 75 0 75
Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment                                                                       0 0 0 (3,417) (3,417) 0 (3,417)
Amortization of unrealized gains in respect of derivative instruments designated for cash flow hedge                                                                       0 0 0 (31) (31) 0 (31)
Cumulative effect of changes in accounting principles at Dec. 31, 2018                                                                       0 0 (58) 0 (58) 0 (58)
Adjusted balance as of the beginning of the year at Dec. 31, 2018                                                                       $ 51 901,363 422,164 (3,799) 1,319,779 125,259 1,445,038
Increase in noncontrolling interest                                                         $ 0 $ 0 $ 0 $ 0 $ 0 $ 2,072 $ 2,072              
Balance (in shares) at Dec. 31, 2019                                                                       51,032            
Balance at Dec. 31, 2019                                                                       $ 51 $ 913,150 $ 487,873 $ (8,654) $ 1,392,420 $ 122,990 $ 1,515,410
v3.19.3.a.u2
Consolidated Statements of Equity (Parentheticals) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Retained Earnings [Member]      
Cash dividend declared, per share (in dollars per share) $ 0.44 $ 0.53 $ 0.41
Amortization of unrealized gains, tax   $ 18 $ 46
Cash dividend declared, per share (in dollars per share) $ 0.44 $ 0.53 $ 0.44
Loss in respect of derivative instruments designated for cash flow hedge, related tax   $ 24  
Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment, tax   $ 0  
v3.19.3.a.u2
Consolidated Statements of Cash Flows
$ in Thousands
 12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Cash flows from operating activities:      
Net income $ 93,543 $ 110,111 $ 147,109
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 148,761 132,233 115,146
Accretion of asset retirement obligation 2,709 2,474 1,874
Stock-based compensation 9,358 10,218 8,760
Amortization of deferred lease income (2,685) (2,685) (2,685)
Income attributable to sale of tax benefits, net of interest expense (10,084) (8,609) (11,956)
Equity in losses (earnings) of investees, net (1,853) (7,663) 1,957
Mark-to-market of derivative instruments (1,402) 2,032 (1,473)
Write-off of unsuccessful exploration activities 0 126 1,796
Goodwill, Impairment Loss 0 13,464 0
Loss (gain) on severance pay fund asset (1,016) 1,186 (1,746)
Deferred income tax provision 27,896 19,360 (41,147)
Liability for unrecognized tax benefits 2,874 2,879 3,270
Deferred lease revenues (574) (402) (356)
Gain from insurance recoveries 0 (4,463) 0
Other 914 100 737
Changes in operating assets and liabilities, net of businesses acquired:      
Receivables (15,133) (29,928) (24,040)
Costs and estimated earnings in excess of billings on uncompleted contracts 3,765 (1,185) 11,253
Inventories 5,500 (9,318) (1,070)
Prepaid expenses and other 3,452 (11,172) 208
Change in operating lease right of use asset 8,167 0 0
Deposits and other (22,525) 18 (2,570)
Accounts payable and accrued expenses 8,738 (56,724) 51,641
Billings in excess of costs and estimated earnings on uncompleted contracts (15,647) (1,839) (11,389)
Liabilities for severance pay 757 (3,147) 2,541
Change in operating lease liabilities (8,405) 0 0
Other liabilities, net (617) (11,244) (2,285)
Net cash provided by operating activities 236,493 145,822 245,575
Cash flows from investing activities:      
Capital expenditures (279,986) (258,521) (259,234)
Cash received from insurance recoveries 35,435 10,427 0
Investment in unconsolidated companies (10,674) (3,800) (46,318)
Buyout of Class B membership in ORTP 0 0 (2,400)
Buyout of Class B membership in OPC 0 2,367 (1,932)
Cash paid for acquisition of controlling interest in a subsidiary, net of cash acquired 0 (95,093) (35,300)
Intangible assets acquired 0 0 (868)
Decrease (increase) in severance pay fund asset, net of payments made to retired employees 687 2,186 526
Net cash used in investing activities (254,538) (342,434) (345,526)
Cash flows from financing activities:      
Proceeds from sale of membership interests to noncontrolling interest, net of transaction costs 0 3,174 0
Proceeds from long-term loans, net of transaction costs 132,847 214,700 0
Proceeds from exercise of options by employees 2,429 0 16,111
Proceeds from the sale of limited liability company interest, net of transaction costs 58,289 32,175 0
Prepayment of long-term debt (21,073) 0 (14,270)
Proceeds from issuance of commercial paper 50,000 0 0
Proceeds from revolving credit lines with banks 1,450,850 4,097,000 1,097,500
Repayment of revolving credit lines with banks (1,569,300) (3,989,500) (1,046,000)
Cash received from noncontrolling interest 3,346 4,134 2,017
Cash paid for achievement of production threshold in GB 0 0 (8,032)
Repayments of long-term debt (72,708) (62,774) (66,223)
Cash paid to noncontrolling interest (9,730) (13,106) (21,313)
Payments under finance lease obligations (3,164) (2,551) (1,871)
Deferred debt issuance costs (5,165) (5,287) (5,290)
Cash dividends paid (22,386) (26,834) (20,511)
Net cash provided by (used in) financing activities (5,765) 251,131 (67,882)
Effect of exchange rate changes (575) (660) 0
Net change in cash and cash equivalents and restricted cash and cash equivalents (24,385) 53,859 (167,833)
Restricted cash and cash equivalents acquired in a business combination 0 26,993 0
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period 177,495 96,643 264,476
Cash and cash equivalents and restricted cash and cash equivalents at end of period 153,110 177,495 96,643
Supplemental disclosure of cash flow information:      
Interest, net of interest capitalized 61,628 53,864 40,484
Income taxes, net 1,649 18,028 21,878
Supplemental non-cash investing and financing activities:      
Increase (decrease) in accounts payable related to purchases of property, plant and equipment 9,423 (6,878) 4,484
Right of use assets obtained in exchange for new lease liabilities 11,626 8,584 0
Increase in asset retirement cost and asset retirement obligation $ 8,334 $ 881 $ 1,888
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 — BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

 

Business

 

The Company is primarily engaged in the geothermal and recovered energy business, including the supply of equipment that is manufactured by the Company and the design and construction of power plants for projects owned by the Company or for third parties. The Company owns and operates geothermal and recovered energy-based power plants in various countries, including the United States, Kenya, Guatemala, Guadeloupe and Honduras. The Company’s equipment manufacturing operations are located in Israel. Additionally, 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.

 

Most of the Company’s domestic power plant facilities are Qualifying Facilities under the PURPA. The Power Purchase Agreements ("PPAs") for certain of such facilities are dependent upon their maintaining Qualifying Facility status. Management believes that all of the facilities located in the United States were in compliance with Qualifying Facility status requirements as of December 31, 2019.

 

Cash dividends

 

During the years ended December 31, 2019, 2018 and 2017, the Company’s Board of Directors (the “Board”) declared, approved, and authorized the payment of cash dividends in the aggregate amount of $22.4 million ($0.44 per share), $26.8 million ($0.53 per share), and $20.5 million ($0.44 per share), respectively. Such dividends were paid in the years declared.

 

Rounding

 

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

 

Basis of presentation

 

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and of all majority-owned subsidiaries in which the Company exercises control over operating and financial policies, and variable interest entities in which the Company has an interest and is the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation.

 

Investments in less-than-majority-owned entities or other entities in which the Company exercises significant influence over operating and financial policies are accounted for using the equity method of accounting or consolidated if they are a variable interest entity in which the Company has an interest and is the primary beneficiary. Under the equity method, original investments are recorded at cost and adjusted by the Company’s share of undistributed earnings or losses of such companies. The Company’s earnings or losses in investments accounted for under the equity method have been reflected as “equity in earnings (losses) of investees, net” on the Company’s consolidated statements of operations and comprehensive income (loss).

 

Cash and cash equivalents

 

The Company considers all highly liquid instruments, with an original maturity of three months or less, to be cash equivalents.

 

Restricted cash, cash equivalents, and marketable securities

 

Under the terms of certain long-term debt agreements, the Company is required to maintain certain debt service reserves, cash collateral and operating fund accounts that have been classified as restricted cash and cash equivalents. Funds that will be used to satisfy obligations due during the next 12 months are classified as current restricted cash and cash equivalents, with the remainder classified as non-current restricted cash and cash equivalents. Such amounts were invested primarily in money market accounts and commercial paper with a minimum investment grade of “A”.

 

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 reported on the balance sheet that sum to the total of the same amounts shown on the statement of cash flows:

 

 

   

December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Cash and cash equivalents

   $ 71,173     $ 98,802     $ 47,818  

Restricted cash and cash equivalents

     81,937       78,693       48,825  

Total cash and cash equivalents and restricted cash and cash equivalents

   $ 153,110     $ 177,495     $ 96,643  

 

Concentration of credit risk

 

Financial instruments which potentially subject the Company to 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 U.S. and in foreign countries. At December 31, 2019 and 2018, the Company had deposits totaling $12.9 million and $31.3 million, respectively, in ten United States financial institutions that were federally insured up to $250,000 per account. At December 31, 2019 and 2018, the Company’s deposits in foreign countries of approximately $84.8 million and $93.9 million, respectively, were not insured.

 

At December 31, 2019 and 2018, accounts receivable related to operations in foreign countries amounted to approximately $118.8 million and $102.0 million, respectively. At December 31, 2019 and 2018, accounts receivable from the Company’s major customers (see Note 19) amounted to approximately 58% and 56%, respectively, of the Company’s accounts receivable.

 

The Company has historically been able to collect substantially all of its receivable balances. As of December 31, 2019, the amount overdue from KPLC in Kenya was $40.7 million of which $24.2 million was paid in January and February of 2020. These amounts represent an average of 70 days overdue, an increase of 10 days from September 30, 2019. In Honduras, the Company has been able to collect its current charges from Empresa Nacional de Energía Eléctrica (“ENEE”) starting in May 2019, however, as of December 31, 2019, the amount overdue relating to the period from October 2018 to April 2019 was $20.1 million, none of which has been paid to date. Due to obligations of the Honduran government to support the Company, the Company believes it will be able to collect all past due amounts.

 

Additionally, Pacific Gas and Electric Corporation (“PG&E Corporation”) and its subsidiary Pacific Gas and Electric Company (“PG&E”), which accounted for 1.5%, 1.9% and 2.0% of the Company's total revenues for the years ended December 31, 2019, 2018 and 2017, respectively, are facing extraordinary challenges relating to a series of catastrophic wildfires that occurred in Northern California in 2017 and 2018. As a result, on January 29, 2019, PG&E Corporation and its subsidiary, PG&E, voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company is closely monitoring its PG&E balance to ensure cash receipts are received on a timely basis each month. As of December 31, 2019, the outstanding balance relates to the current December 2019 invoices which were paid in January 2020.

 

Inventories

 

Inventories consist primarily of raw material parts and sub-assemblies for power units and are stated at the lower of cost or net realizable value, using the weighted-average cost method. Inventories are reduced by a provision for slow-moving and obsolete inventories. This provision was not material at December 31, 2019 and 2018.

 

Deposits and other

 

Deposits and other consist primarily of performance bonds for construction projects, long-term insurance contract and receivables, certain deferred costs and derivative instruments.

 

Property, plant and equipment, net

 

Property, plant and equipment are stated at cost. All costs associated with the acquisition, development and construction of power plants operated by the Company are capitalized. Major improvements are capitalized and repairs and maintenance (including major maintenance) costs are expensed. Power plants operated by the Company, which include geothermal wells and exploration and resource development costs, are depreciated using the straight-line method over their estimated useful lives, which range from 15 to 30 years. The other assets are depreciated using the straight-line method over the following estimated useful lives of the assets:

 

Buildings (in years)

  

 

 25  

Leasehold improvements (in years)

  

15

 - 20

Machinery and equipment — manufacturing and drilling (in years)

  

 

 10  

Machinery and equipment — computers (in years)

  

3

 - 5

Office equipment — furniture and fixtures (in years)

  

5

 - 15

Office equipment — other (in years)

  

5

 - 10

Vehicles (in years)

  

5

 - 7

 

The cost and accumulated depreciation of items sold or retired are removed from the accounts. Any resulting gain or loss is recognized currently and recorded in the accompanying statements of operations.

 

The Company capitalizes interest costs as part of constructing power plant facilities. Such capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Capitalized interest costs amounted to $3.3 million, $3.7 million, and $7.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

 

Exploration and development costs

 

The Company capitalizes costs incurred in connection with the exploration and development of geothermal resources once it acquires land rights to the potential geothermal resource. Prior to acquiring land rights, the Company makes an initial assessment that an economically feasible geothermal reservoir is probable on that land. The Company determines the economic feasibility of potential geothermal resources internally, with all available data and external assessments vetted through the exploration department and occasionally using outside service providers. Costs associated with the initial assessment are expensed and included in cost of electricity revenues in the consolidated statements of operations and comprehensive income (loss). Such costs were immaterial during the years ended December 31, 2019, 2018 and 2017. It normally takes two to three years from the time active exploration of a particular geothermal resource begins to the time a production well is in operation, assuming the resource is commercially viable. However, in certain sites the process may take longer due to permitting delays, transmission constraints or any other commercial milestones that are required to be reached in order to pursue the development process.

 

In most cases, the Company obtains the right to conduct the geothermal development and operations on land owned by the Bureau of Land Management ("BLM"), various states or with private parties. The up-front bonus payments and other related costs, such as legal fees, are capitalized and included in construction-in-process. The annual land lease payments made during the exploration, development and construction phase are expensed as incurred and included in “electricity cost of revenues” in the consolidated statements of operations and comprehensive income (loss). Upon commencement of power generation on the leased land, the Company begins to pay the lessor’s long-term royalty payments based on the utilization of the geothermal resources as defined in the respective agreements. Such payments are expensed when the related revenues are earned and included in “electricity cost of revenues” in the consolidated statements of operations and comprehensive income (loss).

 

Following the acquisition of land rights to the potential geothermal resource, the Company conducts further studies and surveys, including water and soil analyses, among others, and augments its database with the results of these studies. The Company then initiates a suite of geophysical surveys to assess the resource and determine drilling locations. If the results of these activities support the initial assessment of the feasibility of the geothermal resource, the Company then proceeds to exploratory drilling and other related activities which may include drilling of temperature gradient holes, drilling of slim holes, building access roads to drilling locations, drilling full size production and/or injection wells and flow tests. If the slim hole supports a conclusion that the geothermal resource will support a commercially viable power plant, it may be converted to a full-size commercial well, used either for extraction or re-injection of geothermal fluids, or be used as an observation well to monitor and define the geothermal resource. Costs associated with these activities and other directly attributable costs, including interest once physical exploration activities begin and permitting costs are capitalized and included in “construction-in-process”. If the Company concludes that a geothermal resource will not support commercial operations, capitalized costs are expensed in the period such determination is made.

 

When deciding whether to continue holding lease rights and/or to pursue exploration activity, the Company diligently prioritizes prospective investments, taking into account resource and probability assessments in order to make informed decisions about whether a particular project will support commercial operation. As a result, write-off of unsuccessful activities for the years ended December 31, 2019, 2018 and 2017 was $0.0 million, $0.1 million, and $1.8 million, respectively. In 2017, the write-offs included exploration costs related to the Company’s exploration activities in Oregon, after which the Company determined that the applicable sites would no longer support commercial operation.

 

Grants received from the U.S. DOE are offset against the related exploration and development costs. There were no such grants for the years ended December 31, 2019, 2018 and 2017.

 

All exploration and development costs that are being capitalized, including the up-front bonus payments made to secure land leases, will be depreciated over their estimated useful lives when the related geothermal power plant is substantially complete and ready for use. A geothermal power plant is substantially complete and ready for use when electricity generation commences.

 

Asset retirement obligation

 

The Company records the fair value of a legal liability for an asset retirement obligation in the period in which it is incurred. The Company’s legal liabilities include plugging wells and post-closure costs of power producing sites. When a new liability for asset retirement obligations is recorded, the Company capitalizes the costs of the liability by increasing the carrying amount of the related long-lived asset. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. The Company periodically reassess the assumptions used to estimate the expected cash flows required to settle the asset retirement obligation, including changes in estimated probabilities, amounts, and timing of the settlement of the asset retirement obligation, as well as changes in the legal requirements of an obligation and revises the previously recorded asset retirement obligation accordingly. At retirement, the obligation is settled for its recorded amount at a gain or loss.

 

Deferred financing costs

 

Deferred financing costs are presented as a direct deduction from the carrying value of the associated debt liability or under deferred financing if associated with lines of credit. Such deferred costs are amortized over the term of the related obligation using the effective interest method or ratably, as applicable. Amortization of deferred financing costs is presented as interest expense in the consolidated statements of operations and comprehensive income (loss). Accumulated amortization related to deferred financing costs amounted to $19.5 million and $21.8 million at December 31, 2019 and 2018, respectively. Amortization expense for the years ended December 31, 2019, 2018 and 2017 amounted to $5.4 million, $4.6 million, and $5.7 million, respectively. During the years ended December 31, 2019, 2018 and 2017, amounts of $0.0 million, $0.0 million and $0.6 million, respectively, were written-off as a result of extinguishment of liabilities.

 

Goodwill

 

Goodwill represents the excess of the fair value of consideration transferred in the business combination transactions of Guadeloupe and USG over the fair value of tangible and intangible assets acquired, net of the fair value of liabilities assumed and the fair value of any noncontrolling interest in the acquisitions. Goodwill is not amortized but rather subject to a periodic impairment testing on an annual basis (on December 31 of each year) or if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Additionally, an entity is permitted to first assess qualitative factors to determine whether a quantitative goodwill impairment test is necessary. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Otherwise, no further impairment testing is required. An entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to step one of the quantitative goodwill impairment test. This would not preclude the entity from performing the qualitative assessment in any subsequent period. The first step compares the fair value of the reporting unit to its carrying value, including goodwill. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350), which was adopted by the Company in 2018, under which step two of the goodwill impairment test was eliminated. Step two measured a goodwill impairment test by comparing the implied fair value of reporting unit’s goodwill with the carrying amount of that goodwill. Under ASU 2017-04, Intangibles – Goodwill and Other, an entity should recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value as calculated under step one described above. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. For further information relating to goodwill see Note 9 - Intangible assets and goodwill to the consolidated financial statements.

 

Intangible assets

 

Intangible assets consist of allocated acquisition costs of PPAs, which are amortized using the straight-line method over the 13 to 29-year terms of the agreements (see Note 9) as well as acquisition cost allocation related to Viridity’s storage activities that are amortized over a weighted average amortization period of 19 years. Intangible assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In case there is no such events or change in circumstances, there is no need to perform the impairment testing. The recoverability is tested by comparing the net carrying value of the intangible assets to the undiscounted net cash flows to be generated from the use and eventual disposition of these assets. If the carrying amount of a long-lived asset (or asset group) is not recoverable, the fair value of the asset (asset group) is measured and if the carrying amount exceeds the fair value, an impairment loss is recognized.

 

Impairment of long-lived assets and long-lived assets to be disposed of

 

The Company evaluates long-lived assets, such as property, plant and equipment and construction-in-process for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Factors which could trigger an impairment include, among others, significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of assets or its overall business strategy, negative industry or economic trends, a determination that an exploration project will not support commercial operations, a determination that a suspended project is not likely to be completed, a significant increase in costs necessary to complete a project, legal factors relating to its business or when it concludes that it is more likely than not that an asset will be disposed of or sold.

 

The Company tests its operating plants that are operated together as a complex for impairment at the complex level because the cash flows of such plants result from significant shared operating activities. For example, the operating power plants in a complex are managed under a combined operation management generally with one central control room that controls all of the power plants in a complex and one maintenance group that services all of the power plants in a complex. As a result, the cash flows from individual plants within a complex are not largely independent of the cash flows of other plants within the complex. The Company tests for impairment its operating plants which are not operated as a complex as well as its projects under exploration, development or construction that are not part of an existing complex at the plant or project level. To the extent an operating plant becomes part of a complex, the Company will test for impairment at the complex level.

 

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated future net undiscounted cash flows expected to be generated by the asset. The significant assumptions that the Company uses in estimating its undiscounted future cash flows include: (i) projected generating capacity of the complex or power plant and rates to be received under the respective PPAs and expected market rates thereafter and (ii) projected operating expenses of the relevant complex or power plant. Estimates of future cash flows used to test recoverability of a long-lived asset under development also include cash flows associated with all future expenditures necessary to develop the asset.

 

If the assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Management believes that no impairment exists for long-lived assets; however, estimates as to the recoverability of such assets may change based on revised circumstances. If actual cash flows differ significantly from the Company’s current estimates, a material impairment charge may be required in the future.

 

Derivative instruments

 

Derivative instruments (including certain derivative instruments embedded in other contracts) are measured at their fair value and recorded as either assets or liabilities unless exempted from derivative treatment as a normal purchase and sale. All changes in the fair value of derivatives are recognized in earnings unless specific hedge criteria are met, which requires a company to formally document, designate and assess the effectiveness of transactions that receive hedge accounting.

 

The Company maintains a risk management strategy that may incorporate the use of swap contracts and put options on oil and natural gas prices, forward exchange contracts, interest rate swaps, and interest rate caps to minimize significant fluctuation in cash flows and/or earnings that are caused by oil and natural gas prices, exchange rate or interest rate volatility. Gains or losses on contracts that initially qualify for cash flow hedge accounting, net of related taxes, are included as a component of other comprehensive income or loss and accumulated other comprehensive income or loss are subsequently reclassified into earnings when the hedged forecasted transaction affects earnings. Gains or losses on contracts that are not designated as a cash flow hedge are included currently in earnings.

 

Foreign currency translation

 

The U.S. dollar is the functional currency for all of the Company’s consolidated operations and those of its equity affiliates except for the Guadeloupe power plant and the Company's operations in New Zealand. For those entities, all gains and losses from currency translations are included within the line item “Derivatives and foreign currency transaction gains (losses)” within the consolidated statements of operations and comprehensive income (loss). The Euro and New Zealand Dollar are the functional currencies of the Guadeloupe power plant and the Company's operations in New Zealand, respectively, and thus gains and losses from currency translation adjustments in those locations are included as currency translation adjustments in accumulated other comprehensive income in the consolidated statements of equity and in comprehensive income. The accumulated currency translation adjustments amounted to $1.5 million and $0.0 million as of December 31, 2019 and 2018, respectively.

 

Comprehensive income (loss) reporting

 

Comprehensive income (loss) includes net income or loss plus other comprehensive income (loss), which for the Company consists of changes in unrealized gains or losses in respect of the Company’s share in derivatives instruments of an unconsolidated investment, foreign currency translation adjustments and changes in respect of derivative instruments designated as a cash flow hedge. The changes in foreign currency translation adjustments and gains or losses in respect of derivative instruments designated as a cash flow hedge during the years ended December 31, 2019, 2018 and 2017 were immaterial. The change in the Company’s share in derivative instruments of unconsolidated investment is disclosed under Note 5 – Investment in unconsolidated companies to the consolidated financial statements.

 

Revenues and cost of revenues

 

Upon adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) on January 1, 2018, revenues from contracts with customers are recognized in connection with the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the Company is required to apply each of the following steps: (1) identify the contract(s) with the customer; (2) identify the performance obligations in the contracts; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

 

Revenues are primarily related to: (i) sale of electricity from geothermal and recovered energy-based power plants owned and operated by the Company; (ii) geothermal and recovered energy-based power plant equipment engineering, sale, construction and installation, and operating services and (iii) 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.

 

Electricity segment revenues: Revenues related to the sale of electricity from geothermal and recovered energy-based power plants and capacity payments are recorded based upon output delivered and capacity provided at rates specified under relevant contract terms. For PPAs agreed to, modified, or acquired in business combinations on or after July 1, 2003, the Company determines whether such PPAs contain a lease element requiring lease accounting. Revenue from such PPAs are accounted for in electricity revenues. The lease element of the PPAs is also assessed in accordance with the revenue arrangements with multiple deliverables guidance, which requires that revenues be allocated to the separate earnings processes based on their relative fair value. PPAs with minimum lease rentals which vary over time are generally recognized on the straight-line basis over the term of the PPAs. PPAs with contingent rentals are recognized when earned. In the Electricity segment, revenues for all but five power plants are accounted as operating leases, and therefore equipment related to geothermal and recovered energy generation power plants as described in Note 8 is considered held for leasing. For power plants in the scope of ASC 606, the Company identified electricity as a separate performance obligation. Performance obligations identified were evaluated and determined to be satisfied over time and qualified for the invoicing practical expedient since the invoiced amounts reasonably represented the value to customers of performance obligations fulfilled to date. The transaction price is determined based on the price per actual mega-watt output or available capacity as agreed to in the respective PPA. Customers are generally billed on a monthly basis and payment is typically due within 30 to 60 days after the issuance of the invoice.

 

Product segment revenues: Revenues from engineering, operating services, and parts and product sales are recorded upon providing the service or delivery of the products and parts and when collectability is reasonably assured. Revenues from the supply and/or construction of geothermal and recovered energy-based power plant equipment and other equipment to third parties are recognized over time since control is transferred continuously to the Company's customers. The majority of the Company's contracts include a single performance obligation which is essentially the promise to transfer the individual goods or services that are not separately identifiable from other promises in the contracts and therefore deemed as not distinct. Performance obligations are satisfied over-time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being constructed, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment. In the Company's Product segment, revenues are spread over a period of one to two years and are recognized over time based on the cost incurred to date in ratio to total estimated costs which represents the input method that best depicts the transfer of control over the performance obligation to the customer. Costs include direct material, labor, and indirect costs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.

 

In contracts for which the Company determines that control is not transferred continuously to the customer, the Company recognizes revenues at the point in time when the customer obtains control of the asset. Revenues for such contracts are recorded upon delivery and acceptance by the customer. This generally is the case for the sale of spare parts, generators or similar products.

 

Accounting for product contracts that are satisfied over time includes use of several estimates such as variable consideration related to bonuses and penalties and total estimated cost for completing the contract. The estimated amount of variable consideration will be included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are based on historical experience, anticipated performance and the Company's best judgment at the time.

 

The nature of the Company's product contracts give rise to several modifications or change requests by its customers. Substantially all of the modifications are treated as cumulative catch-ups to revenues since the additional goods are not distinct from those already provided. The Company includes the additional revenues related to the modifications in its transaction price when both parties to the contract approved the modification. As a significant change in one or more of these estimates could affect the profitability of the Company's contracts, the Company reviews and updates its contract-related estimates regularly. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the period in which it is identified.

 

Energy Storage and Management Services segment revenues: Battery energy storage systems as a service, demand-response and energy management related services revenues are recorded based on energy management of load curtailment capacity delivered or service provided at rates specified under the relevant contract terms. The Company determined that such revenues are in the scope of ASC 606 and identified energy management services as a separate performance obligation. Performance obligations are satisfied once the Company provides verification to the electric power grid operator or utility of its ability to meet the committed capacity, the power curtailment requirements or the ancillary services and thus entitled to cash proceeds. Such verification may be provided by the Company bi-weekly, monthly or under any other frequency as set by the related program and are typically followed by a payment shortly after. Performance obligations identified were evaluated and determined to be satisfied over time and qualified for the invoicing practical expedient since the amounts included in the verification document reasonably represent the value of performance obligations fulfilled to date. The transaction price is determined based on mechanisms specified in the contract with the customer.

 

The Company's accounting policy for revenues included under the 2017 comparative period were accounted under the previous accounting standard as follows:

 

Revenues related to the sale of electricity from geothermal and recovered energy-based power plants and capacity payments are recorded based upon output delivered and capacity provided at rates specified under relevant contract terms. For PPAs agreed to, modified, or acquired in business combinations on or after July 1, 2003, the Company determines whether such PPAs contain a lease element requiring lease accounting. Revenue from such PPAs are accounted for in electricity revenues. The lease element of the PPAs is also assessed in accordance with the revenue arrangements with multiple deliverables guidance, which requires that revenues be allocated to the separate earnings processes based on their relative fair value. PPAs with minimum lease rentals which vary over time are generally recognized on the straight-line basis over the term of the PPAs. PPAs with contingent rentals are recognized when earned. In the electricity segment, revenues for all but five power plants are accounted as operating leases, and therefore equipment related to geothermal and recovered energy generation power plants as described in Note 8 is considered held for leasing.

 

Revenues from engineering, operating services, and parts and product sales are recorded upon providing the service or delivery of the products and parts and when collectability is reasonably assured. Revenues from the supply and/or construction of geothermal and recovered energy-based power plant equipment and other equipment to third parties are recognized using the percentage-of-completion method. Revenue is recognized based on the percentage relationship that incurred costs bear to total estimated costs. Costs include direct material, labor, and indirect costs. Selling, marketing, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and revenues and are recognized in the period in which the revisions are determined.

 

In specific instances where there is a lack of dependable estimates or inherent risks that may cause the forecast to be doubtful, then the completed-contract method is followed. Revenue is recognized when the contract is substantially complete and when collectability is reasonably assured. Costs that are closely associated with the project are deferred as contract costs and recognized similarly to the associated revenues.

 

Contract assets related to the Company's Product segment reflect revenues 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 December 31, 2019 and 2018 are as follows.

 

   

December 31,

    

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Contract assets (*)

   $ 38,365     $ 42,130  

Contract liabilities (*)

     (2,755

)

     (18,402

)

Contract assets, net

   $ 35,610     $ 23,728  

 

(*) 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 years ended December 31, 2019 and 2018 as a result of performance obligations satisfied.

 

The following table presents the significant changes in the contract assets and contract liabilities for the years ended December 31, 2019 and 2018:

 

    Years Ended December 31,  
   

2019

    

2018

  
   

Contract

assets

    

Contract

liabilities

    

Contract

assets

    

Contract

liabilities

  
   

(Dollars in thousands)

  

Recognition of contract liabilities as revenue as a result of performance obligations satisfied

   $ —     $ 12,675     $ —     $ 33,349  

Cash received in advance for which revenues have not yet recognized, net of expenditures made

     —       (3,323

)

     —       (38,162

)

Reduction of contract assets as a result of rights to consideration becoming unconditional

     (130,918

)

     —       (128,659

)

     —  

Contract assets recognized, net of recognized receivables

     133,448       —       136,496       —  

Net change in contract assets and contract liabilities

   $ 2,530     $ 9,352     $ 7,837     $ (4,813

)

 

The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets and contract liabilities on the consolidated balance sheet. In the Company's Products segment, amounts are billed as work progresses in accordance with agreed-upon contractual terms, or upon achievement of contractual milestones. Generally, billing occurs subsequent to the recognition of revenue, resulting in contract assets. However, the Company sometimes receives advances or deposits from its customers before revenue can be recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. The timing of billing its customers and receiving advance payments vary from contract to contract.  The majority of payments are received no later than the completion of the project and satisfaction of the Company's performance obligation.

 

On December 31, 2019, the Company had approximately $139.3 million of remaining performance obligations not yet satisfied or partly satisfied related to its Product segment. The Company expects to recognize approximately 100% of this amount as Product revenues during the next 24 months.

 

The following schedule reconciles revenues accounted under lease accounting, and ASC 606, Revenues from Contracts with Customers, to total consolidated revenues for the years ended December 31, 2019 and 2018:

 

   

Year Ended December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Electricity Revenues accounted under lease accounting

   $ 479,059     $ 481,619  

Electricity, Product and Energy Storage and Management Services revenues accounted under ASC 606

     266,985       237,648  

Total consolidated revenues

   $ 746,044     $ 719,267  

 

Disaggregated revenues from contracts with customers for the years ended December 31, 2019 and 2018 are disclosed under Note 19 - Business Segments, to the consolidated financial statements.

 

Termination fee

 

Fees to terminate PPAs are recognized in the period incurred as selling and marketing expenses. During 2018, the Company signed a termination agreement with NV Energy, Inc. for the Galena 2 PPA under which it agreed to pay a termination fee of approximately $5 million which was recorded under Selling and marketing expenses in 2018. In 2019 and 2017, no termination fees were incurred.

 

Warranty on products sold

 

The Company generally provides a one to two years warranty against defects in workmanship and materials related to the sale of products for electricity generation. The Company considers the warranty to be an assurance type warranty since the warranty provides the customer the assurance that the product complies with agreed-upon specifications. Estimated future warranty obligations are included in operating expenses in the period in which the related revenue is recognized. Such charges are immaterial for the years ended December 31, 2019, 2018 and 2017.

 

Research and development

 

Research and development costs incurred by the Company for the development of existing and new geothermal and recovered energy power plants as well as storage related technologies are expensed as incurred. Grants received from the DOE are offset against the related research and development expenses. There were no such grants for the years ended December 31, 2019, 2018 and 2017.

 

Stock-based compensation

 

The Company accounts for stock-based compensation using the fair value method whereby compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period of the grant). The Company uses the Exercise Multiple-Based Lattice SAR-Pricing Model to value the stock-based compensation awards to reflect accumulated historic data retained of behavioral parameters.

 

Tax monetization Transactions

 

The Company has three tax monetization transactions, Opal Geo, Tungsten and McGinness Hills 3 as further described under Note 13 – tax monetization transactions to the consolidated financial statements. The OPC and ORTP tax monetization transactions terminated during 2017 upon the Company’s partners reaching their target after-tax yield on their investment, as further described in Note 13. The purpose of these transactions is to form tax partnerships, whereby investors provide cash in exchange for equity interests that provide the holder a right to the majority of tax benefits associated with a renewable energy project.  The Company accounts for a portion of the proceeds from the transaction as debt under ASC 470.  Given that a portion of these transactions is structured as a purchase of an equity interest the Company also classifies a portion as noncontrolling interest consistent with guidance in ASC 810. The portion recorded to noncontrolling interest is initially measured as the fair value of the discounted tax attributes and cash distributions which represents the partner's residual economic interest. The residual proceeds are recognized as the initial carrying value of the debt which is classified as a liability associated with sale tax benefits. The Company applies the effective interest rate method to the liability associated with the tax monetization transaction component as described by ASC 835 and CON 7.  The tax benefits and cash distributions realized by the partner each period are treated as the debt servicing amounts, with the tax benefit amounts giving rise to income attributable to the sale of tax benefits.  The deferred transaction costs have been capitalized and amortized using the effective interest method.

 

Income taxes 

 

Income taxes are accounted for using the asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The measurement of current and deferred tax assets and liabilities are based on provisions of the enacted tax law. The Company accounts for investment tax credits and production tax credits as a reduction to income taxes in the year in which the credit arises. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are  more likely than not expected to be realized. A partial valuation allowance has been established to offset the Company’s U.S. deferred tax assets. Tax benefits from uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Interest and penalties assessed by taxing authorities on an underpayment of income taxes are included as a component of income tax provision in the consolidated statements of operations and comprehensive income.

 

Earnings per share

 

Basic earnings per share attributable to the Company’s stockholders (“earnings per share”) 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 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:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(In thousands)

  

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

     50,867       50,643       50,110  

Add:

                        

Additional shares from the assumed exercise of employee stock options

     360       326       659  
                         

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

     51,227       50,969       50,769  

 

The number of stock-based awards that could potentially dilute future earnings per share and were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive was 360.5 thousand, 176.4 thousand, and 42.9 thousand, respectively, for the years ended December 31, 2019, 2018 and 2017.

 

Use of estimates in preparation of financial statements

 

The preparation of financial statements in conformity with U.S. GAAP  requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of such financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The most significant estimates with regard to the Company’s consolidated financial statements relate to the useful lives of property, plant and equipment, impairment of goodwill and long-lived assets, including intangible assets, revenue recognition of product sales using the percentage of completion method, asset retirement obligations, and the provision for income taxes.

 

Redeemable noncontrolling interest

 

Changes in the carrying amount of the Company's Redeemable noncontrolling interest were as follows:

 

   

2019

    

2018

  
   

(Dollars in thousands)

  

Redeemable noncontrolling interest as of January 1,

   $ 8,603     $ 6,416  

Redeemable noncontrolling interest in results of operation of a consolidated subsidiary

     1,132       990  

Cash paid to noncontrolling interest

     (252

)

     —  

Increase in share of redeemable noncontrolling interest

     —       1,528  

Currency translation adjustments

     (233

)

     (331

)

Redeemable noncontrolling interest as of December 31,

   $ 9,250     $ 8,603  

 

Puna Power Plant

 

On May 3, 2018, the Kilauea volcano located in close proximity to the Company's Puna 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 2019, the Company received an additional $1.1 million of such proceeds. However, only some of the insurers accepted that the business interruption coverage started in May 2018 and during 2019, the Company received and recorded an additional $9.3 million of such proceeds, which were included under cost of revenues in the consolidated statements of operations and comprehensive income for the year ended December 31, 2019. The Company has filed a lawsuit against the insurers that do not accept its claim.

 

As of February 2020, the reconstruction efforts at Puna continue. Permits that are required for the construction and operation of the substation are delayed and currently expected during the first half of 2020. HELCO continue with their efforts to complete the upgrade of the transmission network. On the field side, the Company completed the drilling of one production well that was blocked immediately after flow test of the well. The Company continues its field recovery work, which includes redrilling of existing wells, cleanouts and drilling of new wells and expects initial power generation for testing during the second quarter of 2020. Commercial operation of the full generating capacity of the Puna power plant is expected in the third quarter of 2020 assuming all permits are received, transmission network upgrade is complete and field recovery is successfully achieved.

 

The Company continues to assess the accounting implications of this event on the assets and liabilities on its balance sheet 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. 

 

New Accounting Pronouncements

 

New accounting pronouncements effective in the year ended December 31, 2019

 

Leases

 

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This new standard introduced a number of changes and simplified previous guidance, primarily the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. The new standard retained the distinction between finance leases and operating leases and the classification criteria between the two types remains substantially similar. Also, lessor accounting remained largely unchanged from previous guidance. However, key aspects of the new standard were aligned with the revenue recognition guidance in Topic 606. Additionally, the new standard defined a lease as a contract, or part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of the identified asset means that the customer has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. The Company adopted this new standard as of January 1, 2019 using the modified retrospective approach and accordingly recognized a cumulative-effect adjustment to the opening balance of retained earnings, which was an immaterial amount, with no restatement of comparative information.

 

The Company is a lessee in operating lease transactions primarily consisting of land leases for its exploration and development activities as further described under Exploration and development costs above and the Puna power plant transaction as further described under Note 12 to the consolidated financial statements. Additionally, the Company is a lessee in finance lease transactions primarily consisting of fleet vehicles and office rentals. As further described above under Revenues and cost of revenues, the Company acts as a lessor in PPAs that are accounted under ASC 842, Leases.

 

In accordance with the new standard, for agreements in which the Company is the lessee, the Company applies a unified accounting model by which it recognizes a right-of-use asset ("ROU") and a lease liability at the commencement date of the lease contract for all the leases in which the Company has a right to control identified assets for a specified period of time. The classification of the lease as a finance lease or an operating lease determines the subsequent accounting for the lease arrangement.

 

Upon the adoption of the new standard the Company, both as a lessee and as a lessor, chose to apply the following permitted practical expedients:

 

 

1.

Not reassess whether any existing contracts are or contain a lease;

 

 

2.

Not reassess the classification of leases that commenced before the effective date (for example, all existing leases that were classified as operating leases in accordance with Topic 840 will continue to be classified as operating leases, and all existing leases that were classified as capital leases in accordance with Topic 840 will continue to be classified as finance leases);

 

 

3.

Exclude initial direct costs from measurement of the ROU asset at the date of initial application;

 

 

4.

Applying the practical expedient (for a lessor) to not separate non-lease components accounted for under Topic 606 from lease components and, instead, to account for each separate lease component and the non-lease components associated with that lease component as a single component. If the non-lease components are the predominant components, the Company will account for the combined component as a single performance obligation entirely in accordance with Topic 606. Otherwise, the combined component will be accounted as an operating lease entirely in accordance with the new standard.

 

 

5.

Applying the practical expedient (for a lessee) regarding the recognition and measurement of short-term leases, for leases for a period of up to 12 months from the commencement date. Instead, the Company will continue to recognize the lease payments for those leases in profit or loss on a straight-line basis over the lease term.

 

Since the Company elected to apply the practical expedients above, it applied the new standard to all contracts entered into before January 1, 2019 and identified as leases in accordance with Topic 840.

 

The new significant accounting policies regarding leases that were applied as from January 1, 2019 following the application of the new standard are as follows:

 

 

1.

 Determining whether an arrangement contains a lease

 

On the inception date of the lease, the Company determines whether the arrangement is a lease or contains a lease, while examining if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

 

 

2.

 The Company as a lessee

 

 

a.

 Lease classification:

 

At the commencement date, a lease is a finance lease if it meets any one of the criteria below; otherwise the lease is an operating lease:

 

 

•

The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.
 

•

The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.
 

•

The lease term is for the major part of the remaining economic life of the underlying asset.
 

•

The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset.
 

•

The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term.

 

 

b.

 Leased assets and lease liabilities - initial recognition

 

Upon initial recognition, the Company recognizes a liability at the present value of the lease payments to be made over the lease term, and concurrently recognizes a ROU asset at the same amount of the liability, adjusted for any prepaid or accrued lease payments, plus initial direct costs incurred in respect of the lease. Since the interest rate implicit in the lease is not readily determinable, the incremental borrowing rate of the Company is used. The subsequent measurement depends of whether the lease is classified as a finance lease or an operating lease.

 

 

c.

 The lease term

 

The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination option if it is reasonably certain that the Company will exercise the option.

 

 

d.

Subsequent measurement of operating leases

 

After lease commencement, the Company measures the lease liability at the present value of the remaining lease payments using the discount rate determined at lease commencement (as long as the discount rate has not been updated as a result of a reassessment event).

 

The Company subsequently measures the ROU asset at the present value of the remaining lease payments, adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term and any unamortized initial direct costs.

 

Further, the Company will recognize lease expense on a straight-line basis over the lease term.

 

 

e.

Subsequent measurement of finance leases

 

After lease commencement, the Company measures the lease liability by increasing the carrying amount to reflect interest on the lease liability and reducing the carrying amount to reflect the lease payments made during the period. The Company shall determine the interest on the lease liability in each period during the lease term as the amount that produces a constant periodic discount rate on the remaining balance of the liability, taking into consideration the reassessment requirements.

 

After lease commencement, the Company measures the ROU assets at cost less any accumulated amortization and any accumulated impairment losses, taking into consideration the reassessment requirements. The Company amortizes the ROU asset on a straight-line basis, unless another systematic basis better represents the pattern in which the Company expects to consume the ROU asset’s future economic benefits. The ROU asset is amortized over the shorter of the lease term or the useful life of the ROU asset as follows:

 

   

(in years)

  

Land

     1 - 35  

Vehicles

       5    

Building

       15    

 

The total periodic expense (the sum of interest and amortization expense) of a finance lease is typically higher in the early periods and lower in the later periods.

 

 

f.

Variable lease payments:

 

Variable lease payments that depend on an index or a rate

 

On the commencement date, the lease payments shall include variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate at the commencement date.

 

The Company does not remeasure the lease liability for changes in future lease payments arising from changes in an index or rate unless the lease liability is remeasured for another reason. Therefore, after initial recognition, such variable lease payments are recognized in profit or loss as they are incurred.

 

Other variable lease payments:

 

Variable payments that depends on performance or use of the underlying asset are not included in the lease payments. Such variable payments are recognized in profit or loss in the period in which the event or condition that triggers the payment occurs.

 

 

3.

 The Company as a lessor

 

At lease commencement, the Company as a lessor classifies leases as either finance or operating leases. Finance leases are further classified as a sales-type lease or as a direct financing lease.

 

Under an operating lease, the Company recognizes the lease payment as income over the lease term, generally on a straight-line basis or as earned.

 

 

4.

Impact of the new standard

 

 

a)

The effects of the initial application of the new standard on the Company's consolidated balance sheet as of January 1, 2019 are as follows:

 

   

According to

the previous

accounting

policy

    

The change

    

As presented

according to

Topic 842

  
   

(Dollars in thousands)

  

As of January 1, 2019:

                        
                         

Prepaid expenses and other

   $ 51,441     $ (35,385

)

   $ 16,056  

Deferred financing and lease costs, net

     3,242       (1,659

)

     1,583  

Property, plant and equipment, net

     1,959,578       (12,855

)

     1,946,723  

Operating leases right of use

     —       62,244       62,244  

Finance leases right of use

     —       13,476       13,476  
                         

Accounts payable and accrued expenses

     116,362       (2,860

)

     113,502  

Current maturity of operating lease liabilities

     —       7,532       7,532  

Current maturity of finance lease liabilities

     —       2,841       2,841  
                         

Other long-term liabilities

     16,087       (9,970

)

     6,117  

Long term portion of operating lease liabilities

     —       17,668       17,668  

Long term portion of finance lease liabilities

     —       10,668       10,668  
                         

Retained earnings

     422,222       (58

)

     422,164  

 

The operating leases right of use is higher than the related lease liabilities as a result of prepayments of leases, including the Puna lease and deferred financing lease costs.

 

 

b)

 A weighted-average nominal incremental interest rate of 5% and 7% was used to discount future lease payments in the calculation of the lease liabilities in respect of operating leases and in respect of finance leases, respectively.

 

Derivatives and Hedging

 

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

 

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

 

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The guidance is effective for the fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

 

New accounting pronouncements effective in future periods

 

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 is effective beginning 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 analyzed the impact of its financial instruments that are within the scope of this guidance, primarily receivables and costs and estimated earnings in excess of billings on uncompleted contracts, and believes that the cumulative adjustment to retained earnings will have an immaterial effect on its consolidated financial statements.

 

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 permitted. The Company has not early adopted ASU 2019-12 as of December 31, 2019.  The Company does not anticipate ASU 2019-12 will have a material impact on its consolidated financial statements.
v3.19.3.a.u2
Note 2 - Business Acquisitions and Others
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Business Combination Disclosure [Text Block]

NOTE 2 —BUSINESS ACQUISITIONS AND OTHERS

 

Ijen transaction

 

On July 2, 2019, the Company agreed to acquire 49% in the Ijen geothermal project company from a subsidiary of Medco Power (“Medco”), which is party to a Power Purchase Agreement and holds a geothermal license to develop the Ijen project in East Java in Indonesia for a total consideration of approximately $2.7 million. As part of the transaction, the Company committed to make additional funding for the exploration and development of the project, subject to specific conditions. During the fourth quarter of 2019, the Company made an additional cash investment of $7.4 million.  Medco retains 51% ownership in the project company and the Company and Medco will develop the project jointly. The Company accounted for its investment in the Ijen geothermal project company under the equity method prescribed by ASC 323 - Investments - Equity Method and Joint Ventures.

 

USG transaction

 

On April 24, 2018, the Company completed the acquisition of USG. The total cash consideration (exclusive of transaction expenses) was approximately $110 million, comprised of approximately $106 million funded from available cash of Ormat Nevada Inc. (to acquire the outstanding shares of common stock of USG) and approximately $4 million funded from available cash of USG (to cash-settle outstanding in-the-money options for common stock of USG). As a result of the acquisition, USG became an indirect wholly owned subsidiary of Ormat, and Ormat indirectly acquired, among other things, interests held by USG and its subsidiaries in:

 

•      three operating power plants at Neal Hot Springs, Oregon; San Emidio, Nevada; and Raft River, Idaho with a total net generating capacity of approximately 38 MW; and

•      development assets which include a project at the Geysers, California; a second phase project at San Emidio, Nevada; a greenfield project in Crescent Valley, Nevada; and the El Ceibillo project located near Guatemala City, Guatemala.

 

As a result of the acquisition, the Company expanded its overall generation capacity and improved the profitability of the purchased assets through cost reduction and synergies. The Company accounted for the transaction in accordance with Accounting Standard Codification ASC 805, Business Combinations and following the transaction, the Company consolidates USG, in accordance with Accounting Standard Codification ASC 810, Consolidation.

 

The following table summarizes the purchase price allocation to the fair value of the assets acquired and liabilities assumed (in millions):

 

Cash and cash equivalents and restricted cash

   $ 37.9  

Property, plant and equipment and construction-in-process

     77.3  

Intangible assets (1)

     127.0  

Goodwill (2)

     12.7  

Deferred taxes

     1.7  

Total assets acquired

   $ 256.6  
         

Other working capital

   $ (8.2 )

Long-term term debt

     (98.3 )

Asset retirement obligation

     (9.0 )

Noncontrolling interest

     (34.9 )

Total liabilities assumed

   $ (150.4 )
         

Total assets acquired, and liabilities assumed, net

   $ 106.2  

 

 

(1)

Intangible assets are primarily related to long-term electricity power purchase agreements and depreciated over an average of 19 years.

 

 

(2)

Goodwill is primarily related to the expected synergies in operations as a result of the purchase transaction. The goodwill is allocated to the Electricity segment and not deductible for tax purposes.

 

The fair value of the noncontrolling interest of $34.9 million reflects the 40% minority interests in the Neal Hot Springs project that was evaluated using the income approach. The fair value of the noncontrolling interest was based on the following significant inputs: (i) forecasted cash flows assumed to be generated in correspondence with the remaining life of the related power purchase agreement which is approximately 20 years; (ii) revenues were estimated in accordance with the price and generation capacity of the related power purchase agreement; (iii) assumed terminal value based on the realizable value of the project at the end of the power purchase agreement term; and (iv) assumed discount rate of approximately 9%.

 

Total Electricity revenues and operating profit related to the three USG power plants of approximately $21.4 million and $2.5 million, respectively, for the period started at the acquisition date to December 31, 2018 were included in the Company’s consolidated statements of operations and comprehensive income for the year ended December 31, 2018. The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2017:

 

   

Pro forma for the

    

Pro forma for the

  
   

year ended

December 31, 2018

    

year ended

December 31, 2017

  
   

(Dollars in thousands)

  

Electricity revenues

   $ 521,175     $ 497,650  

Total revenues

     730,563       724,869  

Income from continuing operations before income taxes and equity in losses of investees

     134,142       169,546  

 

Viridity transaction

 

On March 15, 2017, the Company completed the acquisition of substantially all of the business and assets of Viridity Energy, Inc., a privately held Philadelphia-based company formerly engaged in the provision of demand response, energy management and energy storage services. At closing, Viridity Energy Solutions Inc. (“Viridity”), a wholly owned subsidiary of the Company, paid initial consideration of $35.3 million. Additional contingent consideration with an estimated fair value of $12.4 million was set upon the achievement of certain performance milestones to be measured at the end of fiscal years 2017 and 2020. The first performance milestone measured at the end of 2017 was not achieved and as of December 31, 2018 the Company estimated that the second milestone to be measured at the end of fiscal year 2020 will not be achieved. As a result, the Company reversed the related contingent considerations in the amount of $0.6 million and $10.3 million in 2017 and 2018, respectively, both were recorded under general and administrative expenses in the consolidated statement of operations and comprehensive income (loss).

 

The Company accounted for the transaction in accordance with Accounting Standard Codification 805, Business Combinations, and consequently recorded intangible assets of $34.7 million primarily relating to Viridity’s storage activities with a weighted-average amortization period of 19 years, approximately $0.4 million of working capital and fixed assets and $13.5 million of goodwill. Following the transaction, the Company consolidated Viridity in accordance with Accounting Standard Codification 810, Consolidation. The acquisition enabled the Company to enter the growing energy storage and demand response markets and expand its market presence.

 

In 2018, the Company recorded an impairment charge for the full amount of goodwill associated with its storage and energy management services in its consolidated statements of operations and comprehensive income (loss). Further information related to this impairment charge is disclosed in Note 9 – “Intangible assets and goodwill” to the consolidated financial statements.
v3.19.3.a.u2
Note 3 - Inventories
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Inventory Disclosure [Text Block]

NOTE 3 — INVENTORIES

 

Inventories consist of the following:

 

   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Raw materials and purchased parts for assembly

   $ 21,942     $ 26,914  

Self-manufactured assembly parts and finished products

     13,007       18,110  

Total

   $ 34,949     $ 45,024  

 
v3.19.3.a.u2
Note 4 - Cost and Estimated Earnings on Uncompleted Contracts
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Long-term Contracts or Programs Disclosure [Text Block]

NOTE 4 — COST AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

 

Cost and estimated earnings on uncompleted contracts consist of the following:

 

   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Costs and estimated earnings incurred on uncompleted contracts

   $ 196,550     $ 278,797  

Less billings to date

     (160,940

)

     (255,069

)

Total

   $ 35,610     $ 23,728  

 

These amounts are included in the consolidated balance sheets under the following captions:

 

   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Costs and estimated earnings in excess of billings on uncompleted contracts

   $ 38,365     $ 42,130  

Billings in excess of costs and estimated earnings on uncompleted contracts

     (2,755

)

     (18,402

)

Total

   $ 35,610     $ 23,728  

 

The completion costs of the Company’s construction contracts are subject to estimation. Due to uncertainties inherent in the estimation process, it is reasonably possible that estimated contract earnings will be further revised in the near term.
v3.19.3.a.u2
Note 5 - Investment in an Unconsolidated Company
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 5 — Investment in unconsolidated companies

 

Investment in unconsolidated companies mainly consists of the following:

 

   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Sarulla

   $ 70,589     $ 71,983  

Ijen

     10,551       —  
Total investment in unconsolidated companies   $ 81,140     $ 71,983  

 

The Sarulla Complex

 

The Company holds a 12.75% equity interest in a consortium that developed the 330 MW Sarulla geothermal power plant project in Tapanuli Utara, North Sumatra, Indonesia. The Sarulla project is comprised of three separately constructed 110 MW units, the most recent of which, NIL 2, was completed in April 2018. The Sarulla project is owned and operated by the consortium members under the framework of a joint operating contract and energy sales contract that were both executed on April 4, 2013. Under the joint operating contract, PT Pertamina Geothermal Energy, the concession holder for the project, provided the consortium with the right to use the geothermal field, and under the energy sales contract, PT PLN, the state electric utility, is the off-taker at the Sarulla complex for a period of 30 years.

 

During the years ended December 31, 2019 and 2018, the Company made additional cash equity investments in the Sarulla complex of approximately $0.0 million and $3.8 million, respectively, for a total of $62.0 million since inception.

 

The Sarulla consortium entered into interest rate swap agreements with various international banks, effective as of June 4, 2014, and accounted for the interest rate swap as a cash flow hedge upon which changes in the fair value of the hedging instrument, relative to the effective portion, are recorded in other comprehensive income. The Company’s share of such gains (losses) recorded in other comprehensive income (loss) are as follows:

 

   

Year Ended

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Change, net of deferred tax, in unrealized gains (losses) in respect of the Company’s share in derivative instruments of unconsolidated investment

   $ (3,417

)

   $ 2,235  

 

The related accumulated loss recorded by the Company under accumulated other comprehensive income (loss) as of December 31, 2019 and 2018 was $6.3 million and $2.9 million, respectively.

 

The Ijen Project

 

For details on the Ijen project, please see Note 2 to the consolidated financial statements under the heading "Ijen transaction".
v3.19.3.a.u2
Note 6 - Variable Interest Entities
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Disclosure Of Variable Interest Entities [Text Block]

NOTE 6 — VARIABLE INTEREST ENTITIES

 

The Company’s overall methodology for evaluating transactions and relationships under the variable interest entity (“VIE”) accounting and disclosure requirements includes the following two steps: (i) determining whether the entity meets the criteria to qualify as a VIE; and (ii) determining whether the Company is the primary beneficiary of the VIE.

 

In performing the first step, the significant factors and judgments that the Company considers in making the determination as to whether an entity is a VIE include:

 

 

•

The design of the entity, including the nature of its risks and the purpose for which the entity was created, to determine the variability that the entity was designed to create and distribute to its interest holders;

 

 

•

The nature of the Company’s involvement with the entity;

 

 

•

Whether control of the entity may be achieved through arrangements that do not involve voting equity;

 

 

•

Whether there is sufficient equity investment at risk to finance the activities of the entity; and

 

 

•

Whether parties other than the equity holders have the obligation to absorb expected losses or the right to receive residual returns.

 

 If the Company identifies a VIE based on the above considerations, it then performs the second step and evaluates whether it is the primary beneficiary of the VIE by considering the following significant factors and judgments:

 

 

•

Whether the Company has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and

 

 

•

Whether the Company has the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE.

 

The Company’s VIEs include certain of its wholly owned subsidiaries that own one or more power plants with long-term PPAs. In most cases, the PPAs require the utility to purchase substantially all of the plant’s electrical output over a significant portion of its estimated useful life. Most of the VIEs have associated project financing debt that is non-recourse to the general creditors of the Company, is collateralized by substantially all of the assets of the VIE and those of its wholly owned subsidiaries (also VIEs) and is fully and unconditionally guaranteed by such subsidiaries. The Company has concluded that such entities are VIEs primarily because the entities do not have sufficient equity at risk and/or subordinated financial support is provided through the long-term PPAs. The Company has evaluated each of its VIEs to determine the primary beneficiary by considering the party that has the power to direct the most significant activities of the entity. Such activities include, among others, construction of the power plant, operations and maintenance, dispatch of electricity, financing and strategy. Except for power plants that it acquired, the Company is responsible for the construction of its power plants and generally provides operation and maintenance services. Primarily due to its involvement in these and other activities, the Company has concluded that it directs the most significant activities at each of its VIEs and, therefore, is considered the primary beneficiary. The Company performs an ongoing reassessment of the VIEs to determine the primary beneficiary and may be required to deconsolidate certain of its VIEs in the future. The Company has aggregated its consolidated VIEs into the following categories: (i) wholly owned subsidiaries with project debt; and (ii) wholly owned subsidiaries with PPAs.

 

The tables below detail the assets and liabilities (excluding intercompany balances which are eliminated in consolidation) for the Company’s VIEs, combined by VIE classifications, that were included in the consolidated balance sheets as of December 31, 2019 and 2018:

 

   

December 31, 2019

  
   

Project Debt

    

PPAs

  
   

(Dollars in thousands)

  

Assets:

                

Restricted cash and cash equivalents

   $ 81,522     $ 20  

Other current assets

     164,386       29,076  

Property, plant and equipment, net

     1,211,656       668,891  

Construction-in-process

     10,188       139,642  

Other long-term assets

     162,995       40,138  

Total assets

   $ 1,630,747     $ 877,767  
                 

Liabilities:

                

Accounts payable and accrued expenses

     25,361       13,201  

Long-term debt

     794,214       —  

Other long-term liabilities

     126,851       32,790  

Total liabilities

     946,426       45,991  

 

   

December 31, 2018

  
   

Project Debt

    

PPAs

  
   

(Dollars in thousands)

  

Assets:

                

Restricted cash and cash equivalents

   $ 76,019       2,304  

Other current assets

     213,007       9,698  

Property, plant and equipment, net

     1,552,408       306,820  

Construction-in-process

     90,812       13,273  

Other long-term assets

     177,723       9,104  

Total assets

   $ 2,109,969       341,199  
                 

Liabilities:

                

Accounts payable and accrued expenses

   $ 24,245       2,651  

Long-term debt

     805,850       —  

Other long-term liabilities

     125,769       12,483  

Total liabilities

   $ 955,864       15,134  
v3.19.3.a.u2
Note 7 - Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

NOTE 7— 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 December 31, 2019 and 2018 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.

 

           

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 receivable (1)

     102       102       —       —       102  

Currency forward contracts (2)

     362       362       —       362       —  

Liabilities:

                                        

Current liabilities:

                                        

Derivatives:

                                        

Contingent payables (1)

     (3,359

)

     (3,359

)

     —       —       (3,359

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

)

 

           

December 31, 2018

  
           

Fair Value

  
   

Carrying Value at December 31, 2018

    

Total

    

Level 1

    

Level 2

    

Level 3

  
   

(Dollars in thousands)

  

Assets

                                        

Current assets:

                                        

Cash equivalents (including restricted cash accounts)

   $ 18,787     $ 18,787     $ 18,787     $ —     $ —  

Derivatives:

                                        

Contingent receivable (1)

     104       104       —       —       104  

Liabilities:

                                        

Current liabilities:

                                        

Derivatives:

                                        

Contingent payables (1)

     (3,424

)

     (3,424

)

     —       —       (3,424

)

Currency forward contracts (2)

     (1,040

)

     (1,040

)

     —       (1,040

)

     —  
    $ 14,427     $ 14,427     $ 18,787     $ (1,040

)

   $ (3,320

)

 

(1)      These amounts relate to contingent receivables and payables and warrants pertaining to the Guadeloupe power plant purchase transaction, 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 December 31, 2019 and 2018 in the 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.

 

(2)    These amounts relate to currency forward contracts valued primarily based on observable inputs, including forward and spot prices for currencies, net of contracted rates and then multiplied by notional amounts, and are included within "Receivables, other" and "Accounts payable and accrued expenses", as applicable, on December 31, 2019 and December 31, 2018, in the consolidated balance sheet 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 (loss) on derivative instruments not designated as hedges:

 

Derivatives not designated as

hedging instruments

  

Location of recognized gain (loss)

  

Amount of recognized gain (loss)

  
       

2019

    

2018

    

2017

  
       

(Dollars in thousands)

  
                             

Put options on natural gas price

  

Derivative and foreign currency transaction gains (losses)

   $ —     $ —     $ (350

)

Contingent considerations

  

Derivative and foreign currency transaction gains (losses)

     —       170       (129

)

Contingent considerations

  

General and administrative expenses

     —       10,322       2,048  

Currency forward contracts

  

Derivative and foreign currency transaction gains (losses)

     2,556       (3,081

)

     3,699  
        $ 2,556     $ 7,411     $ 5,268  

 

In January 2017, the Company entered into Henry Hub Natural Gas Future contracts under which it has bought a number of put options covering a notional quantity of approximately 4.1 million British Thermal Units (“MMBtu”) with exercise prices of $3 and expiration dates ranging from January 26, 2017 until November 27, 2017 in order to reduce its exposure to fluctuations in natural gas prices under its PPAs with Southern California Edison. The Company paid an aggregate amount of approximately $0.7 million for these put options. The put option contracts have monthly expiration dates at which the options can be called and the transaction would be settled on a net cash basis.

 

The foregoing forward and put options transactions have not been designated as hedge transactions and are marked to market with the corresponding gains or losses recognized within “Derivatives and foreign currency transaction gains (losses)” in the consolidated statements of operations and comprehensive income.

 

There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 during the year ended December 31, 2019.

 

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

 

   

Fair Value

    

Carrying Amount

  
   

2019

    

2018

    

2019

    

2018

  
   

(Dollars in millions)

    

(Dollars in millions)

  

Olkaria III Loan - OPIC

   $ 202.1     $ 211.8     $ 192.6     $ 210.6  

Olkaria III plant 4 Loan - DEG 2

     43.8       47.2       42.5       47.5  

Olkaria III plant 1 Loan - DEG 3

     38.8       —       37.1       —  

Platanares Loan - OPIC

     115.3       119.1       104.5       112.7  

Amatitlan Loan

     26.4       29.9       26.3       29.8  

Senior Secured Notes:

                                

OrCal Geothermal Inc. ("OrCal")

     —       19.0       —       18.7  

OFC 2 LLC ("OFC 2")

     210.9       214.5       203.0       217.8  

Don A. Campbell 1 ("DAC 1")

     78.5       78.8       78.2       83.3  

USG Prudential - NV

     30.6       29.4       28.4       27.8  

USG Prudential - ID

     18.6       18.6       19.6       18.9  

USG DOE

     45.0       48.3       40.8       51.4  

Senior Unsecured Bonds

     205.7       199.4       204.3       204.3  

Senior Unsecured Loan

     161.3       102.2       150.0       100.0  

Plumstriker

     21.7       —       21.6       —  

Other long-term debt

     16.3       5.4       17.4       6.2  

 

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.

 

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

 

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 - OPIC

   $ —     $ —     $ 202.1     $ 202.1  

Olkaria III plant 4 - DEG 2

     —       —       43.8       43.8  

Olkaria III plant 1 - 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  

 

The following table presents the fair value of financial instruments as of December 31, 2018:

 

   

Level 1

    

Level 2

    

Level 3

    

Total

  
   

(Dollars in millions)

  

Olkaria III Loan - OPIC

   $ —     $ —     $ 211.8     $ 211.8  

Olkaria III plant 4 - DEG 2

     —       —       47.2       47.2  

Platanares Loan - OPIC

     —       —       119.1       119.1  

Amatitlan Loan

     —       29.9       —       29.9  

Senior Secured Notes:

                                

OrCal Senior Secured Notes

     —       —       19.0       19.0  

OFC 2 Senior Secured Notes

     —       —       214.5       214.5  

DAC 1 Senior Secured Notes

     —       —       78.8       78.8  

USG Prudential - NV

     —       —       29.4       29.4  

USG Prudential - ID

     —       —       18.6       18.6  

USG DOE

     —       —       48.3       48.3  

Senior Unsecured Bonds

     —       —       199.4       199.4  

Senior Unsecured Loan

     —       —       102.2       102.2  

Other long-term debt

     —       —       5.4       5.4  

Revolving lines of credit

     —       159.0       —       159.0  

Deposits

     12.0       —       —       12.0  
v3.19.3.a.u2
Note 8 - Property, Plant and Equipment and Construction-in-process
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]

NOTE 8 — PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION-IN-PROCESS

 

Property, plant and equipment

 

Property, plant and equipment, net, consist of the following:

 

   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Land owned by the Company where the geothermal resource is located

   $ 38,049     $ 38,060  

Leasehold improvements

     7,757       5,718  

Machinery and equipment

     230,465       208,646  

Land, buildings and office equipment

     39,099       35,708  

Vehicles

     8,021       22,074  

Geothermal and recovered energy generation power plants, including geothermal wells and exploration and resource development costs:

                

United States of America, net of cash grants

     2,160,910       2,065,377  

Foreign countries

     721,824       710,775  

Asset retirement cost

     19,824       11,448  
      3,225,949       3,097,806  

Less accumulated depreciation

     (1,254,534

)

     (1,138,228

)
                 

Property, plant and equipment, net

   $ 1,971,415     $ 1,959,578  

 

Depreciation expense for the years ended December 31, 2019, 2018 and 2017 amounted to $126.7 million, $114.4 million and $98.8 million, respectively. Depreciation expense for the years ended December 31, 2019, 2018, and 2017 is net of the impact of the cash grant in the amount of $7.3 million, $6.4 million and $5.5 million, respectively.

 

U.S. Operations

 

The net book value of the property, plant and equipment, including construction-in-process, located in the United States was approximately $1,841.4 million and $1,696.4 million as of December 31, 2019 and 2018, respectively. These amounts as of December 31, 2019 and 2018 are net of cash grants in the amount of $162.3 million and $179.7 million, respectively.

 

Foreign Operations

 

The net book value of property, plant and equipment, including construction-in-process, located outside of the United States was approximately $506.6 million and $524.8 million as of December 31, 2019 and 2018, respectively.

 

The Company, through its wholly owned subsidiary, OrPower 4, Inc. (“OrPower 4”), owns and operates geothermal power plants in Kenya. The net book value of assets associated with the power plants was $284.5 million and $302.0 million as of December 31, 2019 and 2018, respectively. The Company sells the electricity produced by the power plants to Kenya Power and Lighting Co. Ltd. (“KPLC”) under a 20-year PPA ending between 2033 and 2036 .

 

The Company, through its wholly owned subsidiary, Orzunil I de Electricidad, Limitada (Orzunil), owns a power plant in Guatemala. On January 22, 2014, Orzunil signed an amendment to the PPA with INDE, a Guatemalan power company, for its Zunil geothermal power plant in Guatemala. The amendment extends the term of the PPA from 2019 to 2034. The PPA amendment also transfers operation and management responsibilities of the Zunil geothermal field from INDE to the Company for the term of the amended PPA in exchange for a tariff increase. Additionally, INDE exercised its right under the PPA to become a partner in the Zunil power plant with a 3% equity interest. The net book value of the assets related to the power plant was $10.3 million and $14.6 million at December 31, 2019 and 2018, respectively.

 

The Company, through its wholly owned subsidiary, Ortitlan, Limitada (“Ortitlan”), owns a power plant in Guatemala. The net book value of the assets related to the power plant was $42.8 million and $43.5 million at December 31, 2019 and 2018, respectively.

 

The Company, through its wholly owned subsidiary, GeoPlatanares, signed a BOT contract for the Platanares geothermal project in Honduras with ELCOSA, a privately owned Honduran energy company, for 15 years from the commercial operation date, which expires in 2047. Platanares sells the electricity produced by the power plants to ENEE, the national utility of Honduras under a 30-year PPA. The net book value of the assets related to the power plant was $96.1 million and $105.7 million at December 31, 2019 and 2018, respectively.

 

The Company, through its subsidiary, GB, owns a power plant in Guadeloupe. The net book value of the assets related to the power plant was $24.5 million and $23.9 million at December 31, 2019 and 2018, respectively. GB sells the electricity produced by the power plants to EDF, the French electric utility, under a 15-year PPA.

 

Construction-in-process

 

Construction-in-process consists of the following:

 

   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Projects under exploration and development:

                

Up-front bonus costs

   $ 17,018     $ 17,018  

Exploration and development costs

     66,916       53,237  

Interest capitalized

     703       703  
      84,637       70,958  

Projects under construction:

                

Up-front bonus costs

     27,473       27,473  

Drilling and construction costs

     258,484       160,398  

Interest capitalized

     5,961       2,861  
      291,918       190,732  

Total

   $ 376,555     $ 261,690  

 

 

   

Projects under exploration and development

  
   

Up-front Bonus

Costs

    

Exploration and

Development Costs

    

Interest

Capitalized

    

Total

  
   

(Dollars in thousands)

  

Balance at December 31, 2016

   $ 17,385     $ 36,359     $ 703     $ 54,447  

Cost incurred during the year

     —       11,224       —       11,224  

Write off of unsuccessful exploration costs

     (367

)

     (1,429

)

     —       (1,796

)

Balance at December 31, 2017

     17,018       46,154       703       63,875  

Cost incurred during the year

     —       7,209       —       7,209  

Write off of unsuccessful exploration costs

     —       (126

)

     —       (126

)

Balance at December 31, 2018

     17,018       53,237       703       70,958  

Cost incurred during the year

     —       17,215       —       17,215  

Transfer of projects under exploration and development to projects under construction

     —       (3,536

)

     —       (3,536

)

Balance at December 31, 2019

   $ 17,018     $ 66,916     $ 703     $ 84,637  

 

   

Projects under construction

  
   

Up-front Bonus
Costs

    

Drilling and

Construction

Costs

    

Interest

Capitalized

    

Total

  
   

(Dollars in thousands)

  

Balance at December 31, 2016

   $ 37,713     $ 202,211     $ 12,338     $ 252,262  

Cost incurred during the year

     —       231,926       7,300       239,226  

Transfer of completed projects to property, plant and equipment

     (10,240

)

     (235,194

)

     (16,387

)

     (261,821

)

Balance at December 31, 2017

     27,473       198,943       3,251       229,667  

Cost incurred during the year

     —       219,610       —       219,610  

Cost write off

     —       (1,380

)

     —       (1,380

)

Fair value of projects under construction acquired in a business combination

     —       4,668       —       4,668  

Transfer of completed projects to property, plant and equipment

     —       (261,443

)

     (390

)

     (261,833

)

Balance at December 31, 2018

     27,473       160,398       2,861       190,732  

Cost incurred during the year

     —       264,137       3,100       267,237  

Transfer of projects under exploration and development to projects under construction

     —       3,536       —       3,536  

Insurance recoveries

     —       (35,435

)

     —       (35,435

)

Transfer of completed projects to property, plant and equipment

     —       (134,152

)

     —       (134,152

)

Balance at December 31, 2019

   $ 27,473     $ 258,484     $ 5,961     $ 291,918  
v3.19.3.a.u2
Note 9 - Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]

NOTE 9 — INTANGIBLE ASSETS AND GOODWILL

 

Intangible assets amounting to $186.2 million and $199.9 million consist mainly of the Company’s PPAs acquired in business combinations and its storage activities, net of accumulated amortization of $74.1 million and $61.5 million as of December 31, 2019 and 2018, respectively. Intangible assets relating to the Company's storage activities as of December 31, 2019 and 2018 amounted to $30.2 million and $32.2 million, net of accumulated amortization of $5.4 million and $3.4 million, respectively. Amortization expense for the years ended December 31, 2019, 2018 and 2017 amounted to $13.3 million, $11.2 million and $6.9 million, respectively. Additions to intangible assets for the years ended December 31, 2019, 2018 and 2017, amounted to $0.0 million, $127.0 million and $35.6 million, respectively. The additions to intangible assets in 2018 and 2017 primarily relate to the USG and Viridity acquisitions, respectively. The Company tested the intangible assets for recoverability in December 2019 and 2018 and assessed whether there are events or change in circumstances which may indicate that the intangible assets are not recoverable. The Company's assessment resulted in that there were no write-offs of intangible assets in 2019, 2018 and 2017.

 

Estimated future amortization expense for the intangible assets as of December 31, 2019 is as follows:

 

   

(Dollars in thousands)

  

Year ending December 31:

        

2020

   $ 12,983  

2021

     12,983  

2022

     12,729  

2023

     12,610  

2024

     11,255  

Thereafter

     123,660  

Total

   $ 186,220  

 

Goodwill

 

Goodwill amounting to $20.1 million and $20.0 million as of December 31, 2019 and 2018, respectively, represents the excess of the fair value of considerations transferred in business combination transactions over the fair value of tangible and intangible assets acquired, net of the fair value of liabilities assumed and non-controlling interest (as applicable) in the acquisitions.

 

During the fourth quarter of 2018, the Company determined that certain qualitative indicators of a potential impairment existed in relation to its storage and energy management services reporting unit which required further quantitative assessment of goodwill impairment (step one as described in Note 1 to the consolidated financial statements under the caption “Goodwill”). The qualitative indicators included a significant update to the reporting unit’s business forecasts combined with a large-scale restructuring of the way the Company runs this reporting unit which were both executed during the fourth quarter of 2018. As a result of the quantitative assessment, the Company recorded a goodwill impairment charge of $13.5 million in the consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2018. Following this impairment charge, the goodwill allocated to the storage and energy management services reporting unit is zero. The Company estimated the fair value of the storage and energy management services reporting unit by using the income approach based on discounted cash flows, which utilized Level 3 measurement that represent unobservable inputs into the Company’s valuation method.

 

Except as noted above, for the years 2019, 2018 and 2017 the Company’s impairment assessment related to the Company’s other reporting units for which goodwill (all of which is in the Electricity segment) is allocated to resulted in no impairment to goodwill.

 

Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2019 and 2018 were as follows:

 

   

2019

    

2018

  
   

(Dollars in thousands)

  

Goodwill as of January 1,

   $ 19,950     $ 21,037  

Goodwill acquired

     —       12,710  

Goodwill impairment charge

     —       (13,464

)

Translation differences

     190       (333

)

Goodwill as of December 31,

   $ 20,140     $ 19,950  

 
v3.19.3.a.u2
Note 10 - Accounts Payable and Accrued Expenses
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 10 — ACCOUNTS PAYABLE AND ACCRUED EXPENSES

 

Accounts payable and accrued expenses consist of the following:

 

   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Trade payable

   $ 73,271     $ 56,299  

Salaries and other payroll costs

     24,364       20,188  

Customer advances

     2,092       918  

Accrued interest

     6,321       5,914  

Income tax payable

     11,344       8,436  

Property tax payable

     3,033       2,999  

Scheduling and transmission

     2,264       595  

Royalty accrual

     6,457       4,610  

Deferred revenues

     —       2,300  

Warranty accrual

     3,245       4,552  

Other

     9,466       9,551  

Total

   $ 141,857     $ 116,362  
v3.19.3.a.u2
Note 11 - Long-term Debt, Credit Agreements and Commercial Paper
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Long-term Debt [Text Block]

NOTE 11 — LONG-TERM DEBT, CREDIT AGREEMENTS AND COMMERCIAL PAPER

 

Long-term debt consists of notes payable under the following agreements:

 

   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Limited and non-recourse agreements:

                

Loans:

                

Non-recourse:

                

Other loans

   $ 8,997     $ 6,241  

Limited recourse:

                

Loan agreement with OPIC (the Olkaria III power plant)

     192,646       210,641  

Loan agreement with OPIC (the Platanares power plant)

     104,459       112,652  

Loan agreement with Banco Industrial S.A. and Westrust Bank (International) Limited

     26,250       29,750  

Loan agreement with a global industrial company (the Plumstriker battery energy storage projects)

     21,615       —  

Other loans

     8,367       —  

Senior Secured Notes:

                

Non-recourse:

                

OrCal Senior Secured Notes

     —       18,652  

DAC 1 Senior Secured Notes

     78,247       83,319  

Limited recourse:

                

OFC 2 Senior Secured Notes

     203,040       217,810  

Other loans

     88,840       96,482  

Total limited and non-recourse agreements

     732,461       775,547  

Less current portion

     (58,932

)

     (63,180

)

Non current portion

   $ 673,529     $ 712,367  

Full recourse agreements:

                

Senior Unsecured Bonds

     204,332       204,332  

Senior Unsecured Loan (Migdal)

     150,000       100,000  

Loan agreements with DEG (the Olkaria III and power plants 4 and 1 upgrade)

     79,632       47,500  

Revolving credit lines with banks

     40,550       159,000  

Total full recourse agreements

     474,514       510,832  

Less current portion

     (117,122

)

     (164,000

)

Non current portion

   $ 357,392     $ 346,832  

 

Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited

 

On July 31, 2015, Ortitlan, Limitada, the Company’s wholly owned subsidiary, obtained a 12-year secured term loan in the principal amount of $42.0 million for the 20 MW Amatitlan power plant in Guatemala. Under the credit agreement with Banco Industrial S.A. and Westrust Bank (International) Limited, the Company can expand the Amatitlan power plant with financing to be provided either via equity, additional debt from Banco Industrial S.A. or from other lenders, subject to certain limitations on expansion financing in the credit agreement.

 

The loan is payable in 48 quarterly payments commencing September 30, 2015. The loan bears interest at a rate per annum equal to of the sum of LIBOR (which cannot be lower than 1.25%) plus a margin of (i) 4.35% as long as the Company’s guaranty of the loan (as described below) is outstanding or (ii) 4.75% otherwise. Interest is payable quarterly, on March 30, June 30, September 30 and December 30 of each year, on the stated maturity date of the loan and on any prepayment or payment of the loan. The loan must be prepaid on the occurrence of certain events, such as casualty, condemnation, asset sales and expansion financing not provided by the lenders under the credit agreement, among others. The loan may be voluntarily prepaid if certain conditions are satisfied, including payment of a premium (ranging from 100-50 basis points) if prepayment occurs prior to the eighth anniversary of the loan.

 

There are various restrictive covenants under the Amatitlan credit agreement. These include, among other things, (i) a financial covenant to maintain a Debt Service Coverage Ratio (as defined in the credit agreement) of not less than 1.15 to 1.00 as of the last day of any fiscal quarter and (ii) limitations on Restricted Payments (as defined in the credit agreement) that among other things would limit dividends that could be paid to us unless the historical and projected Debt Service Coverage Ratio is not less than 1.25 to 1.00 for the four fiscal quarterly periods (calculated as a single accounting period). As of December 31, 2019, the covenants have been met. The credit agreement includes various events of default that would permit acceleration of the loan (subject in some cases to grace and cure periods). These include, among other things, a Change of Control (as defined in the credit agreement) and failure to maintain certain required balances in debt service and maintenance reserve accounts. The credit agreement includes certain equity cure rights for failure to maintain the Debt Service Coverage Ratio and the minimum amounts required in the debt service and maintenance reserve accounts.

 

The loan is collateralized by substantially all the assets of the borrower and a pledge of all of the membership interests of the borrower.

 

The Company has guaranteed payment of all obligations under the credit agreement and related financing documents. The guaranty is limited in the sense that the Company is only required to pay the guaranteed obligations if a “trigger event” occurs. A trigger event is the occurrence and continuation of a default by INDE in its payment obligations under the PPA for the Amatitlàn power plant or a refusal by INDE to receive capacity and energy sold under that PPA. The Company’s obligations under the guaranty may be terminated prior to payment in full of the guaranteed obligations under certain circumstances described in the guaranty. If the guaranty is terminated early, the interest rate payable on the loan would increase as described above.

 

As of December 31, 2019, $26.3 million of this loan was outstanding.

 

Finance Agreement with OPIC (the Olkaria III Complex)

 

On August 23, 2012, OrPower 4, the Company’s wholly owned subsidiary, entered into a Finance Agreement with OPIC, an agency of the U.S. government, to provide limited-recourse senior secured debt financing in an aggregate principal amount of up to $310.0 million (the “OPIC Loan”) for the refinancing and financing of the Olkaria III geothermal power complex in Kenya. The Finance Agreement was amended on November 9, 2012.

 

The OPIC Loan is comprised of up to three tranches:

 

 

•

Tranche I in an aggregate principal amount of $85.0 million, which was drawn in November 2012, was used to prepay approximately $20.5 million (plus associated prepayment penalty and breakage costs of $1.5 million) of the DEG Loan, as described below. The remainder of Tranche I proceeds was used for reimbursement of prior capital costs and other corporate purposes.

 

 

•

Tranche II in an aggregate principal amount of $180.0 million was used to fund the construction and well field drilling for the expansion of the Olkaria III geothermal power complex (“Plant 2”). In November 2012, an amount of $135.0 million was disbursed under this Tranche II, and in February 2013, the remaining $45.0 million was distributed under this Tranche II.

 

 

•

Tranche III in an aggregate principal amount of $45.0 million was used to fund the construction of Plant 3 of the Olkaria III complex. In November 2013, an amount of $45.0 million was disbursed under this Tranche.

 

In July 2013, the Company completed the conversion of the interest rate applicable to both Tranche I and Tranche II from a floating interest rate to a fixed interest rate. The average fixed interest rate for Tranche I, which has an outstanding balance as of December 31, 2019 of $51.9 million and matures on December 15, 2030, and Tranche II, which has an outstanding balance as of December 31, 2019 of $111.2 million and matures on June 15, 2030, is 6.29%. In November 2013, the Company fixed the interest rate for Tranche III. The fixed interest rate for Tranche III, which has an outstanding balance as of December 31, 2019 of $29.6 million and matures on December 15, 2030, is 6.12%.

 

OrPower 4 has a right to make voluntary prepayments of all or a portion of the OPIC Loan subject to prior notice, minimum prepayment amounts, and a prepayment premium of 2.0% in the first two years after the Plant 2 commercial operation date, declining to 1% in the third year after the Plant 2 commercial operation date, and without premium thereafter, plus a redemption premium. In addition, the OPIC Loan is subject to customary mandatory prepayment in the event of certain reductions in generation capacity of the power plants, unless such reductions will not cause the projected ratio of cash flow to debt service to fall below 1.7.

 

The OPIC Loan is collateralized by substantially all of OrPower 4’s assets and by a pledge of all of the equity interests in OrPower 4.

 

The finance agreement includes customary events of default, including failure to pay any principal, interest or other amounts when due, failure to comply with covenants, breach of representations and warranties, non-payment or acceleration of other debt of OrPower 4, bankruptcy of OrPower 4 or certain of its affiliates, judgments rendered against OrPower 4, expropriation, change of control, and revocation or early termination of security documents or certain project-related agreements, subject to various exceptions and notice, cure and grace periods.

 

There are various restrictive covenants under the OPIC Loan, which include a required historical and projected 12-month DSCR of not less than 1.4 (measured as of March 15, June 15, September 15 and December 15 of each year). If OrPower 4 fails to comply with these financial ratios it will be prohibited from making distributions to its shareholders. In addition, if the DSCR falls below 1.1, subject to certain cure rights, such failure will constitute an event of default by OrPower 4. This covenant in respect of Tranche I became effective on December 15, 2014. As of December 31, 2019, the covenants have been met.

 

As of December 31, 2019, $192.6 million of the OPIC Loan was outstanding.

 

Debt service reserve

 

As required under the terms of the OPIC Loan, OrPower 4 maintains an account which may be funded by cash or backed by letters of credit in an amount sufficient to pay scheduled debt service amounts, including principal and interest, due under the terms of the OPIC Loan in the following six months. This restricted cash account is classified as current in the consolidated balance sheets. As of December 31, 2019 and 2018, the balance of the account was $2.5 million and $2.6 million, respectively. In addition, as of December 31, 2019, part of the required debt service reserve was backed by a letter of credit in the amount of $15.6 million (see Note 22).

 

Well drilling reserve

 

As required under the terms of the OPIC Loan, OrPower 4 may be required to maintain an account which may be funded by cash or backed by letters of credit to reserve funds for future well drilling, based on determination upon the completion of the expansion work.

 

Finance Agreement with OPIC (the Platanares power plant)

 

On April 30, 2018, Geotérmica Platanares, S.A. de C.V. (“Platanares”), a Honduran sociedad anónima de capital variable and an indirect subsidiary of Ormat Technologies, Inc., entered into a Finance Agreement (the “Finance Agreement”) with OPIC, pursuant to which OPIC will provide to Platanares senior secured non-recourse debt financing in an aggregate principal amount of up to $124.7 million (the “Platanares Loan”), the proceeds of which will be used principally for the refinancing and financing of the Platanares 35 MW geothermal power plant located in western Honduras (the “Project”). The finance agreement was amended and closed in October of 2018.

 

Tranche I in an aggregate principal amount of $114.7 million was drawn in October 2018, carries a fixed interest rate of 7.02% per annum and matures in September of 2032. The closing of tranche II of up to $10 million is expected in 2020 subject to the satisfaction or waiver of certain conditions precedent.

 

Under the Finance Agreement, Platanares may, upon prior written notice to OPIC, make voluntary prepayments of the OPIC Loan, in whole or in part, in a minimum partial prepayment amount of $5 million together with payment to OPIC of all accrued but unpaid interest on the principal amount of the OPIC Loan to be prepaid, plus a prepayment premium. The prepayment premium is equal to (i) 2% of the principal amount of the OPIC Loan to be prepaid for any voluntary prepayment in the first or second year following expiration of the Commitment Period (as defined in the Finance Agreement) and (ii) 1% of the principal amount of the Platanares Loan to be prepaid for any voluntary prepayment in the third year following expiration of the Commitment Period. There is no prepayment premium for any voluntary prepayment in the fourth year following expiration of the Commitment Period or thereafter.

 

The OPIC Loan is also subject to customary mandatory prepayment upon the occurrence of certain events, including, among others, (i) receipt by Platanares of compensation or damages following a dispute that results in a material adverse change to the primary power purchase agreement for the Project, (ii) receipt by Platanares of a termination or indemnity payment from a third party (other than OPIC) or expropriation proceeds from a governmental authority upon the termination of any project documents or the condemnation, nationalization, seizure or expropriation of all or a substantial portion of the Project or property of Platanares by a governmental authority, respectively, and (iii) receipt by Platanares of sale proceeds in excess of a certain threshold from the disposition of all or any part of the property of Platanares, subject to certain exceptions.

 

The OPIC Loan will be secured by a first priority lien on all of the assets and ordinary shares of Platanares. The Finance Agreement contains various restrictive covenants applicable to Platanares, among others (i) to maintain a projected and historic debt service coverage ratio of no less than 1.1 to 1; (ii) to maintain on deposit in a debt service reserve account and well reserve account funds or assets with a value in excess of a minimum threshold and (iii) covenants that restrict Platanares from making certain payments or other distributions to its equity holders unless the projected and historic debt service coverage ratio is not less than 1.2 to 1. As of December 31, 2019, the covenants have been met.

 

The Finance Agreement also contains customary events of default, including, among others, failure to pay principal, interest or other amounts when due, non-payment or acceleration of other indebtedness of Platanares, the occurrence of a change of control of Platanares without the prior approval of OPIC, expropriation, judgments rendered against Platanares in excess of a certain threshold, failure to comply with covenants, a voluntary abandonment of the Project and the occurrence of certain bankruptcy events, subject to various exceptions and applicable notice, cure and grace periods.

 

As of December 31, 2019, $104.5 million of the Platanares OPIC Loan was outstanding.

 

Debt service reserve

 

As required under the terms of the Platanares Loan, Platanares maintains an account which may be funded by cash or backed by letters of credit in an amount sufficient to pay scheduled debt service amounts, including principal and interest, due under the terms of the Platanares Loan in the following six months (or nine months in case of overdue payments by the offtaker up to a certain agreed threshold). This restricted cash account is classified as current in the consolidated balance sheets. As of December 31, 2019, the balance of the account was $3.6 million and it is backed by a letter of credit in the amount of $8.1 million (see Note 22).

 

Well drilling reserve

 

As required under the terms of the Finance Agreement, Platanares is required to maintain an account which may be funded by cash or backed by letters of credit to reserve funds for well costs, based on certain determinations.  As of December 31, 2019, the balance of the account was $0.0 million and was backed by a letter of credit in the amount of $2.0 million (see Note 22).

 

OrCal Senior Secured Notes

 

In December 2005, OrCal, the Company’s wholly owned subsidiary, issued $165.0 million, 6.21% Senior Secured Notes (“OrCal Senior Secured Notes”) and received net cash proceeds of approximately $161.1 million, after deduction of issuance costs of approximately $3.9 million. The OrCal Senior Secured Notes have been rated BBB- by Fitch Ratings. The OrCal Senior Secured Notes had a final maturity date of December 30, 2020. Principal and interest on the OrCal Senior Secured Notes were payable in semi-annual payments. The OrCal Senior Secured Notes were collateralized by substantially all of the assets of OrCal, and those of its subsidiaries and were fully and unconditionally guaranteed by all of the wholly owned subsidiaries of OrCal. In October 2019, the Company fully prepaid the outstanding amount of $15.0 million of the OrCal Senior Secured Notes plus an additional make-whole premium of $0.4 million.

 

OFC 2 Senior Secured Notes

 

In September 2011, OFC 2, the Company’s wholly owned subsidiary and OFC 2’s wholly owned project subsidiaries (collectively, the “OFC 2 Issuers”) entered into a note purchase agreement (the “Note Purchase Agreement”) with OFC 2 Noteholder Trust, as purchaser, John Hancock Life Insurance Company (U.S.A.), as administrative agent, and the DOE, as guarantor, in connection with the offer and sale of up to $350.0 million aggregate principal amount of OFC 2 Senior Secured Notes (“OFC 2 Senior Secured Notes”) due December 31, 2034.

 

Subject to the fulfillment of customary and other specified conditions precedent, the OFC 2 Senior Secured Notes may be issued in up to six distinct series associated with the phased construction (Phase I and Phase II) of the Jersey Valley, McGinness Hills and Tuscarora geothermal power plants, which are owned by the OFC 2 Issuers. The OFC 2 Senior Secured Notes will mature and the principal amount of the OFC 2 Senior Secured Notes will be payable in equal quarterly installments and in any event not later than December 31, 2034. Each series of notes will bear interest at a rate calculated based on a spread over the Treasury yield curve that will be set at least ten business days prior to the issuance of such series of notes. Interest will be payable quarterly in arrears. The DOE will guarantee payment of 80% of principal and interest on the OFC 2 Senior Secured Notes pursuant to Section 1705 of Title XVII of the Energy Policy Act of 2005, as amended. The conditions precedent to the issuance of the OFC 2 Senior Secured Notes includes certain specified conditions required by the DOE in connection with its guarantee of the OFC 2 Senior Secured Notes.

 

On October 31, 2011, the OFC 2 Issuers completed the sale of $151.7 million in aggregate principal amount of 4.687% Series A Notes due 2032 (the “Series A Notes”). The net proceeds from the sale of the Series A Notes, after deducting transaction fees and expenses, were approximately $141.1 million, and were used to finance a portion of the construction costs of Phase I of the McGinness Hills and Tuscarora power plants and to fund certain reserves. Principal and interest on the Series A Notes are payable quarterly in arrears on the last day of March, June, September and December of each year.

 

On June 20, 2014, Phase 1 of Tuscarora Facility achieved Project Completion under the Note Purchase Agreement. In accordance with the terms of the Note Purchase Agreement and following recalibration of the financing assumptions, the loan amount was adjusted through a principal prepayment of $4.3 million.

 

On August 29, 2014, OFC 2 sold $140.0 million of OFC 2 Senior Secured Notes (the “Series  C Notes”) to finance the construction of the second phase of the McGinness Hills project. The Series C Notes are the last tranche under the Note Purchase Agreement with John Hancock Life Insurance Company and are guaranteed by the DOE’s Loan Programs Office in accordance with and subject to the DOE's Loan Guarantee Program under Section 1705 of Title XVII of the Energy Policy Act of 2005. The Series C Notes,  which mature in December 2032, carry a 4.61% coupon with principal to be repaid on a quarterly basis.

 

 The OFC 2 Senior Secured Notes are collateralized by substantially all of the assets of OFC 2 and those of its wholly owned subsidiaries and are fully and unconditionally guaranteed by all of the wholly owned subsidiaries of OFC 2. There are various restrictive covenants under the OFC 2 Senior Secured Notes, which include limitations on additional indebtedness of OFC 2 and its wholly owned subsidiaries. Failure to comply with these and other covenants will, subject to customary cure rights, constitute an event of default by OFC 2.  In addition, there are restrictions on the ability of OFC 2 to make distributions to its shareholders.

 

Among other things, the distribution restrictions include a historical debt service coverage ratio requirement of at least 1.2 (on a blended basis for all OFC 2 power plants), measured, at the time of any proposed distribution, over each of the two six-months periods comprised of distinct consecutive fiscal quarters immediately preceding the proposed distribution, and a projected future DSCR requirement of at least 1.5 (on a blended basis for all OFC 2 power plants), measured, at the time of any proposed distribution, over each of the two six-months periods comprised of distinct consecutive fiscal quarters immediately following such proposed distribution. As of December 31, 2019, the covenants have been met.

 

As of December 31, 2019, $203.0 million of the OFC 2 Senior Secured Notes were outstanding.

 

The Company provided a guaranty in connection with the issuance of the Series A Notes and Series C Notes. The guaranty may be drawn in the event of, among other things, the failure of any facility financed by the relevant series of OFC 2 Senior Secured Notes to reach completion and meet certain operational performance levels (the “non-performance trigger”) which gives rise to a prepayment obligation on the OFC 2 Senior Secured Notes. The guarantee may also be drawn if there is a payment default on the OFC 2 Senior Secured Notes or upon the occurrence of certain fundamental defaults that result in the acceleration of the OFC 2 Senior Secured Notes, in each case, prior to the date that the relevant facility(ies) financed by such OFC 2 Senior Secured Notes reaches completion and meets the applicable operational performance levels. The Company’s liability under the guaranty with respect to the non-performance trigger is limited to an amount equal to the prepayment amount on the OFC 2 Senior Secured Notes necessary to bring the OFC 2 Issuers into compliance with certain coverage ratios. The Company’s liability under the guarantee with respect to the other trigger event described above is not so limited.

 

Debt service reserve; other restricted funds

 

Under the terms of the OFC 2 Senior Secured Notes, OFC 2 is required to maintain a debt service reserve and certain other reserves, as follows:

 

 

(i)

A debt service reserve account which may be funded by cash or backed by letters of credit (see below) in an amount sufficient to pay scheduled debt service amounts, including principal and interest, due under the terms of the OFC 2 Senior Secured Notes in the following six months. This restricted cash account is classified as current in the consolidated balance sheet. As of December 31, 2019, part of the required debt service reserve was backed by a letter of credit in the amount of $19.5 million (see Note 22).

 

 

(ii)

A performance level reserve account, intended to provide additional security for the OFC 2 Senior Secured Notes, which may be funded by cash or backed by letters of credit. This reserve builds up over time and reduces gradually each time the project achieves certain milestones. Upon issuance of the Series A Notes, this reserve was funded in the amount of $28.0 million. As of December 31, 2019, the balance of such account was zero million, and no letter of credit was required to be issued.

 

 

(iii)

Under the terms of the OFC 2 Senior Secured Notes, OFC 2 is also required to maintain a well field drilling and maintenance reserve that builds up over time and is dedicated to costs and expenses associated with drilling and maintenance of the project's well field, which may be funded by cash or backed by letters of credit.

 

 

(iv)

A performance level reserve account for McGinness Hills Phase II, intended to provide additional security for the OFC 2 Senior Secured Notes, which may be funded by cash or backed by letters of credit. As of December 31, 2019, there was no requirement for an additional security to be issued as the project was completed.

 

Don A. Campbell Senior Secured Notes — Non-Recourse

 

On November 29, 2016, ORNI 47 LLC (“ORNI 47”), the Company’s subsidiary,  entered into a note purchase agreement (the “ORNI 47 Note Purchase Agreement”) with MUFG Union Bank, N.A., as collateral agent, Munich Reinsurance America, Inc. and Munich American Reassurance Company (the “Purchasers”) pursuant to which ORNI 47 issued and sold to the Purchasers $92.5 million aggregate principal amount of its 4.03% Senior Secured Notes due September 27, 2033 (the “DAC 1 Senior Secured Notes”) in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. ORNI 47 is the owner of the first phase of the Don A. Campbell geothermal power plant (“DAC 1”), and part of the ORPD LLC (“ORPD”) portfolio.

 

The net proceeds from the sale of the DAC 1 Senior Secured Notes, after deducting certain transaction expenses and the funding of a debt service reserve account, were approximately $87.1 million and ORNI 47 used the proceeds from the sale of the Notes to refinance the development and construction costs of the DAC 1 geothermal power plant, which were originally financed using equity.

 

ORNI 47 began paying a scheduled amount of principal of the DAC 1 Senior Secured Notes on December 27, 2016 and now makes principal payments quarterly, on the 27th day of each March, June, September and December, until the DAC 1 Senior Secured Notes mature.

 

The DAC 1 Senior Secured Notes constitute senior secured obligations of ORNI 47 and are secured by all of the assets of ORNI 47. Under the ORNI 47 Note Purchase Agreement, ORNI 47 may prepay at any time all, or from time to time any part of, the DAC 1 Senior Secured Notes in an amount equal to at least $2 million or such lesser amount as may remain outstanding under the DAC 1 Senior Secured Notes at 100% of the principal amount to be prepaid plus the applicable make-whole amount determined for the prepayment date with respect to such principal amount. Upon the occurrence of a Change of Control (as defined in the ORNI 47 Note Purchase Agreement), ORNI 47 must make an offer to each holder of DAC 1 Senior Secured Notes to repurchase all of the holder’s notes at 101% of the aggregate principal amount of such notes to be repurchased plus accrued and unpaid interest, if any, on such notes to, but not including, the date of repurchase. Each holder of DAC 1 Senior Secured  Notes may accept such offer in whole or in part. In certain events, including certain asset sales outside the ordinary course of business, ORNI 47 must make mandatory prepayments of the DAC 1 Senior Secured Notes at 100% of the principal amount to be prepaid. The ORNI 47 Note Purchase Agreement requires ORNI 47 to comply with certain covenants, including, among others, restrictions on the incurrence of indebtedness or liens, amendment or modification of material project documents, the ability of ORNI 47 to merge or consolidate with another entity. The ORNI 47 Note Purchase Agreement also contains customary events of default. In addition, there are restrictions on the ability of ORNI 47 to make distributions to its shareholders, which include a required historical and projected DSCR of  not less than 1.20 for the four fiscal quarterly periods. As of December 31, 2019, the covenants have been met.

 

As of December 31, 2019, $78.2 million is outstanding under the DAC 1 Senior Secured Notes.

 

Loans assumed with the acquisition of USG

 

On April 24, 2018, the Company completed the acquisition of USG. As part of the acquisition the Company assumed the following non-recourse loans:

 

Prudential Capital Group – Idaho non-recourse

 

In May 2016, USG’s wholly owned subsidiary (Idaho USG Holdings LLC) entered into a loan agreement with the Prudential Capital Group to finance its development activities. The original principal totaled $20.0 million and included the option to issue additional debt up to $50.0 million within the following two years. The $20.0 million loan amount bears interest at a fixed interest rate of 5.8% per annum. The principal and interest payments are due semi-annually and the principal is partially repaid during the first seven-year term and the remaining balance of $16.0 million is due in full at the end of this seven-year term. The loan is secured by the Company’s ownership interests in the Neal Hot Springs project and the Raft River project projects. As of December 31, 2019, $18.3 million of the Prudential Capital loan is outstanding.

 

U.S. Department of Energy – non-recourse

 

On August 31, 2011, USG’s wholly owned subsidiary, USG Oregon LLC (“USG Oregon”), completed the first funding drawdown associated with the U.S. Department of Energy (“DOE”) $96.8 million loan guarantee (“Loan Guarantee”) to construct its power plant at Neal Hot Springs project in Eastern Oregon. All loan advances covered by the Loan Guarantee have been made under the Future Advance Promissory Note dated February 23, 2011. In connection with the Loan Guarantee, the DOE has been granted a security interest in all of the equity interests of USG Oregon, as well as in the assets of USG Oregon, including a mortgage on real property interests relating to the Neal Hot Springs site. No additional advances are allowed under the terms of the loan. A total of 13 draws were taken and each individual draw or tranche is considered to be a separate loan. The loan principal is scheduled to be paid over 21.5 years from the first scheduled payment date with semi-annual installments including interest calculated at an aggregate fixed interest rate of 2.6%. The principal payment amounts are calculated on a straight-line basis according to the life of the loans and the original loan principal amounts. As of December 31, 2019, $44.9 million of the DOE loan is outstanding.

 

Prudential Capital Group – Nevada non-recourse

 

On September 26, 2013, USG’s wholly owned subsidiary (USG Nevada LLC) entered into a note purchase agreement with the Prudential Capital Group to finance the Phase I of San Emidio geothermal project located in northwest Nevada. The term of the note is approximately 24 years and bears interest at a fixed rate of 6.75% per annum. Interest payments are due quarterly. Principal payments are due quarterly based upon minimum debt service coverage ratios established according to projected operating results made at the loan origination date and available cash balances. The loan agreement is secured by USG Nevada LLC’s right, title and interest in and to its real and personal property, including the San Emidio project and the equity interests in USG Nevada LLC. As of December 31, 2019, $27.1 million of the loan is outstanding.

 

Senior Unsecured Bonds

 

In September 2016, the Company concluded an auction tender and accepted subscriptions for two series of senior unsecured bonds comprised of approximately $67.0 million aggregate principal amount of senior unsecured bonds (the “Series 2 Bonds”) and approximately $137.0 million aggregate principal amount of senior unsecured bonds (the “Series 3 Bonds” and together with the Series 2 Bonds, the “Senior Unsecured Bonds”). The proceeds from the Series 2 Bonds and Series 3 Bonds were used on September 29, 2016 to prepay the Company’s $250.0 million aggregate principal amount of previously issued bonds that were payable on August 1, 2017.

 

The Series 2 Bonds will mature in September 2020 and bear interest at a fixed rate of 3.7% per annum, payable semi-annually. The Series 3 Bonds will mature in September 2022 and bear interest at a fixed rate of 4.45% per annum, payable semi-annually. The Series 2 Bonds and 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

 

On March 22, 2018 the Company entered into a definitive loan agreement (the "Migdal Loan Agreement") with Migdal Insurance Company Ltd., Migdal Makefet Pension and Provident Funds Ltd. and Yozma Pension Fund of Self-Employed Ltd., all entities within the Migdal Group, a leading Israeli insurance company and institutional investor in Israel. The Migdal Loan Agreement provides for a loan by the lenders to the Company in an aggregate principal amount of $100.0 million (the "Migdal Loan"). The Migdal Loan will be repaid in 15 semi-annual payments of $4.2 million each, commencing on September 15, 2021, with a final payment of $37.0 million on March 15, 2029. The Migdal Loan bears interest at a fixed rate of 4.8% per annum, payable semi-annually, subject to adjustment in certain circumstances as described below.

 

The Loan is subject to early redemption by the Company prior to maturity from time to time (but not more frequently than once per quarter) and at any time in whole or in part, at a redemption price set forth in the Migdal Loan Agreement. If the rating of the Company is downgraded to "ilA-"(or equivalent), of any of Standard and Poor’s, Moody’s or Fitch (whenever in Israel or outside of Israel) (each a “Credit Rating Agency”), the interest rate applicable to the Migdal Loan will increase by 0.50%. If the rating of the Company is further downgraded to a lower level by any Credit Rating Agency, the interest rate applicable to the Migdal Loan will be increased by 0.25% for each additional downgrade. In no event will the cumulative increase in the interest rate applicable to the Loan exceed 1% regardless of the cumulative rating downgrade. A subsequent upgrade or reinstatement of a rating by any Credit Rating Agency will reduce the interest rate applicable to the Migdal Loan by 0.25% for each upgrade (but in no event will the interest rate applicable the Migdal Loan fall below the base interest rate of 4.8%). Additionally, if the ratio between short-term and long-term debt to financial institutions and bondholders, deducting cash and cash equivalents to EBITDA is equal to or higher than 4.5, the interest rate on all amounts then outstanding under the Migdal Loan shall be increased by 0.5% per annum over the interest rate then-applicable to the Migdal Loan.

 

The Migdal Loan constitutes senior unsecured indebtedness of the Company and will rank equally in right of payment with any existing and future senior unsecured indebtedness of the Company, and effectively junior to any existing and future secured indebtedness, to the extent of the security therefore.

 

The Migdal Loan Agreement includes various affirmative and negative covenants, including a covenant that the Company maintain (i) a debt to adjusted EBITDA ratio below 6, (ii) a minimum equity amount (as shown on its consolidated financial statements, excluding noncontrolling interests) of not less than $650 million, and (iii) an equity attributable to Company's stockholders to total assets ratio of not less than 25%. In addition, the Migdal Loan Agreement restricts the Company from making dividend payments if its equity falls below $800 million and otherwise restricts dividend payments in any one year to not more than 50% of the net income of the Company of such year as shown on the Company’s consolidated annual financial statements as long as any of the Company's bonds issued in Israel prior to March 27, 2018 remain outstanding. The Migdal Loan Agreement includes other customary affirmative and negative covenants and events of default.

 

On March 25, 2019, the Company entered into a first addendum (“First Addendum”) to the Migdal Loan Agreement with the Migdal Group dated March 22, 2018. The First Addendum provides for an additional loan by the lenders to the Company in an aggregate principal amount of $50.0 million (the “Additional Migdal Loan”). The Additional Migdal Loan will be repaid in 15 semi-annual payments of $2.1 million each, commencing on September 15, 2021, with a final payment of $18.5 million on March 15, 2029. The Additional Migdal Loan bears interest at a fixed rate of 4.6% per annum, payable semi-annually, subject to adjustment in certain circumstances as described below. The Additional Migdal Loan was entered into under substantially the same terms and conditions of the Migdal Loan Agreement as disclosed above.

 

Loan Agreements with DEG (the Olkaria III Complex)

 

On October 20, 2016, OrPower 4 entered into a new $50.0 million subordinated loan agreement with DEG (the “DEG 2 Loan Agreement”) and on December 21, 2016, OrPower 4 completed a drawdown of the full loan amount of $50 million, with a fixed interest rate of 6.28% for the duration of the loan (the “DEG 2 Loan”). The DEG 2 Loan is being repaid in 20 equal semi-annual principal installments which commenced on December 21, 2018, with a final maturity date of  June 21, 2028. Proceeds of the DEG 2 Loan were used by OrPower 4 to refinance Plant 4 of the Olkaria III Complex, which was originally financed using equity. The DEG 2 Loan is subordinated to the senior loan provided by OPIC for Plants 1-3 of the Olkaria III Complex. The DEG 2 Loan is guaranteed by the Company.

 

Under the DEG 2 Loan Agreement, OrPower 4 may prepay at any time all, or from time to time any part of the DEG 2 Loan in an amount equal to at least $5 million or such lesser amount as may remain outstanding under the DEG 2 Loan at 100% of the principal amount to be prepaid plus the applicable make-whole amount and certain prepayment premium amount determined for the prepayment date with respect to such principal amount. In certain events, OrPower 4 must make mandatory prepayments of the DEG 2 Loan at 100% of the principal amount to be prepaid plus the applicable make-whole amount and certain prepayment premium amount determined for the prepayment date with respect to such principal amount. The DEG 2 Loan Agreement requires OrPower 4 to comply with certain covenants, including, among others, restrictions on the incurrence of indebtedness or liens. The DEG 2 Loan Agreement also contains customary events of default.

 

As of December 31, 2019, $42.5 million is outstanding under the DEG 2 Loan.

 

DEG 3 Loan

 

On January 4, 2019, OrPower 4 entered into an additional $41.5 million subordinated loan agreement with Deutsche Investitions-und Entwicklungsgesellschaft mbH ("DEG") (the “DEG 3 Loan Agreement”) and on February 28, 2019, OrPower 4 completed a drawdown of the full loan amount, with a fixed interest rate of 6.04% for the duration of the loan (the “DEG 3 Loan”). The DEG 3 Loan is being repaid in 19 equal semi-annual principal installments, which commenced on June 21, 2019, with a final maturity date of  June 21, 2028. Proceeds of the DEG 3 Loan were used by OrPower 4 to refinance upgrades to Plant 1 of the Olkaria III Complex, which were originally financed using equity. The DEG 3 Loan is subordinated to the senior loan provided by Overseas Private Investment Corporation (“OPIC”) for Plants 1-3 of the Olkaria III Complex. The DEG 3 Loan is guaranteed by the Company.

 

As of December 31, 2019, $37.1 million is outstanding under the DEG 3 Loan.

 

Plumstriker Loan

 

On May 4, 2019, a wholly owned indirect subsidiary of the Company (“Plumstriker”) and its two subsidiaries entered into a $23.5 million loan agreement with a United States (“U.S.”) financing division of a leading global industrial company for the financing of two 20 MW battery energy storage projects located in New Jersey.

 

On May 30, 2019, Plumstriker completed the drawdown of the full loan amount, bearing interest of three months U.S. Libor plus a 3.5% margin. The loan is being repaid in 29 equal quarterly principal installments of 1.25% of the loan, and additional 14 unequal semi-annual principal payments, which commenced on June 30, 2019. The final maturity date of the loan is May 30, 2026. Proceeds of the loan were used to refinance investments in the Plumsted and Stryker projects. The debt repayment of the loan is not guaranteed by the Company or any of its subsidiaries.

 

As of December 31, 2019, $21.6 million is outstanding under the Plumstriker Loan.

 

Société Géneralé Loan

 

On April 9, 2019, an indirect subsidiary of the Company (“Guadeloupe”), entered into a $8.9 million loan agreement with Société Général. On April 29, 2019, Guadeloupe completed the drawdown of the full loan amount of the loan, bearing a fixed interest rate of 1.52%. The loan is being repaid in 28 quarterly principal installments, which commenced on July 29, 2019. The final maturity date of the loan is April 29, 2026. The loan has a limited guarantee by one of the Company’s subsidiaries.

 

As of December 31, 2019, $8.4 million was outstanding under the Société Géneralé Loan.

 

Bpifrance Loan

 

On April 4, 2019, Guadeloupe, entered into a $8.9 million loan agreement with Banque Publique d’Investissement (“Bpifrance”). On April 29, 2019, Guadeloupe completed the drawdown of the full loan amount, bearing a fixed interest rate of 1.93%. The loan will be repaid in 20 equal quarterly principal installments, commencing June 30, 2021. The final maturity date of the loan is March 31, 2026. The loan is not guaranteed by the Company or any of its other subsidiaries.

 

As of December 31, 2019, $9.0 million is outstanding under the Bpifrance Loan.

 

Revolving credit lines with commercial banks

 

As of December 31, 2019, the Company has credit agreements with eight commercial banks for an aggregate amount of $505.0 million (including $60.0 million from Union Bank, N.A. (“Union Bank”) and $35.0 million from HSBC), as described below. Under the terms of these credit agreements, the Company, or its Israeli subsidiary, Ormat Systems Ltd. (“Ormat Systems), can request: (i) extensions of credit in the form of loans and/or the issuance of one or more letters of credit in the amount of up to $260.0 million; and (ii) the issuance of one or more letters of credit in the amount of up to $245.0 million. The credit agreements mature between end of March 2020 and July 2022. Loans and draws under the credit agreements or under any letters of credit will bear interest at the respective bank’s cost of funds plus a margin.

 

As of December 31, 2019, $40.6 million in loans were outstanding and letters of credit with an aggregate stated amount of $213.7 million were issued and outstanding under such credit agreements.

 

Credit Agreements

 

Credit agreement with Union Bank

 

In February 2012, Ormat Nevada Inc. (“Ormat Nevada”),  the Company’s wholly owned subsidiary, entered into an amended and restated credit agreement with Union Bank. Under the credit agreement, the credit termination date is June 30, 2020. On December 31, 2019, the aggregate amount available under the credit agreement was $60.0 million. The facility is limited to the issuance, extension, modification or amendment of letters of credit. Union Bank is currently the sole lender and issuing bank under the credit agreement, but is also designated as an administrative agent on behalf of banks that may, from time to time in the future, join the credit agreement as lenders. In connection with this transaction, the Company entered into a guarantee in favor of the administrative agent for the benefit of the banks, pursuant to which the Company agreed to guarantee Ormat Nevada’s obligations under the credit agreement. Ormat Nevada’s obligations under the credit agreement are otherwise unsecured.

 

There are various restrictive covenants under the credit agreement, which include a requirement to comply with the following financial ratios, which are measured quarterly: (i) a 12-month debt to EBITDA ratio not to exceed 4.5; (ii) 12-month DSCR of not less than 1.35; and (iii) distribution leverage ratio not to exceed 2.0. As of December 31, 2019: (i) the actual 12-month debt to EBITDA ratio was 2.1; (ii) the 12-month DSCR was 2.87; and (iii) the distribution leverage ratio was 1.0. In addition, there are restrictions on dividend distributions in the event of a payment default or noncompliance with such ratios, and subject to specified carve-outs and exceptions, a negative pledge on the assets of Ormat Nevada in favor of Union Bank.

 

As of December 31, 2019, letters of credit in the aggregate amount of $59.5 million remain issued and outstanding under this credit agreement with Union Bank.

 

Credit agreement with HSBC

 

In May 2013, Ormat Nevada, entered into a credit agreement with HSBC Bank USA, N.A for one year with annual renewals. The current expiration date of the facility under this credit agreement is October 31, 2020. On December 31, 2019, the aggregate amount available under the credit agreement was $35.0 million. Other than $10 million of this credit facility which may be drawn for the Company's working capital needs, this credit line is limited to the issuance, extension, modification or amendment of letters of credit. HSBC is currently the sole lender and issuing bank under the credit agreement, but is also designated as an administrative agent on behalf of banks that may, from time to time in the future, join the credit agreement as parties thereto. In connection with this transaction, the Company entered into a guarantee in favor of the administrative agent for the benefit of the banks, pursuant to which the Company agreed to guarantee Ormat Nevada’s obligations under the credit agreement. Ormat Nevada’s obligations under the credit agreement are otherwise unsecured.

 

There are various restrictive covenants under the credit agreement, including a requirement to comply with the following financial ratios, which are measured quarterly: (i) a 12-month debt to EBITDA ratio not to exceed 4.5; (ii) 12-month DSCR of not less than 1.35; and (iii) distribution leverage ratio not to exceed 2.0. As of December 31, 2019: (i) the actual 12-month debt to EBITDA ratio was 2.1; (ii) the 12-month DSCR was 2.87; and (iii) the distribution leverage ratio was 1.0. In addition, there are restrictions on dividend distributions in the event of a payment default or noncompliance with such ratios, and subject to specified carve-outs and exceptions, a negative pledge on the assets of Ormat Nevada in favor of HSBC.

 

As of December 31, 2019, letters of credit in the aggregate amount of $25.5 million remain issued and outstanding under this credit agreement.

 

CHUBB Surety Bond

 

In May 2017, the Company entered into a surety bond agreement (the “Surety Agreement”) with Chubb Limited (“Chubb”) pursuant to which the Company may request that Chubb issue up to an aggregate $200.0 million of surety bonds with respect to the contractual obligations of the Company and its subsidiaries in exchange for bank letters of credit or as otherwise may be required.  There is no expiration date for the Surety Agreement, but it may be terminated by the Company at any time upon twenty days’ prior written notice to Chubb. Delivery of such termination notice will not affect any surety bonds issued and outstanding prior to the date on which such notice is delivered. As of December 31, 2019, Chubb issued a surety bond in the amount of $144.8 million under the Surety Agreement.

 

Short-term commercial paper

 

On June 27, 2019, the Company entered into a framework agreement for participation in the issuance of  commercial paper (the "Agreement") with Discount Capital Underwriting Ltd. under which the Company allowed the participants to submit proposals for purchasing and to purchase the Company's commercial paper ("Commercial Paper") in accordance with the provisions of the Agreement. On July 3, 2019, the Company completed the issuance of the Commercial Paper in the aggregate amount of $50.0 million. The Commercial Paper was issued for a period of 90 days and extends automatically for additional 90 day periods for up to five years, unless the Company notifies the participants otherwise or a notice of termination is provided by the participants in accordance with the provisions of the Agreement. The Commercial Paper bears an annual interest of three months LIBOR +0.75% which is paid at the end of each 90 day period. The Commercial Paper is presented under Current liabilities in the Consolidated Balance Sheets.

 

As of December 31, 2019, an aggregate amount of $50.0 million was issued and outstanding under this Agreement.

 

Restrictive covenants

 

The Company’s obligations under the credit agreements, the loan agreements, and the trust instrument governing the bonds, described above, are unsecured, but are subject to a negative pledge in favor of the banks and the other lenders and certain other restrictive covenants. These include, among other things, a prohibition on: (i) creating any floating charge or any permanent pledge, charge or lien over the Company's assets without obtaining the prior written approval of the lender; (ii) guaranteeing the liabilities of any third party without obtaining the prior written approval of the lender; and (iii) selling, assigning, transferring, conveying or disposing of all or substantially all of the Company's assets, or a change of control in the Company's ownership structure. Some of the credit agreements, the term loan agreements, as well as the trust instrument contain cross-default provisions with respect to other material indebtedness owed by us to any third party. In some cases, the Company has agreed to maintain certain financial ratios, which are measured quarterly, such as: (i) equity of at least $600.0 million and in no event less than 25% of total assets; (ii) 12-month debt, net of cash, cash equivalents marketable securities and short-term bank deposits to Adjusted EBITDA ratio not to exceed 6; and (iii) dividend distribution not to exceed 35% of net income for that year. As of December 31, 2019: (i) total equity was $1,515.4 million and the actual equity to total assets ratio was 46.6%, and (ii) the 12-month debt, net of cash, cash equivalents marketable securities and short-term bank deposits to Adjusted EBITDA ratio was 2.99. During the year ended December 31, 2019, the Company distributed interim dividends in an aggregate amount of $22.4 million.

 

Future minimum payments

 

Future minimum payments under long-term debt as of December 31, 2019 are as follows:

 

   

(Dollars in

thousands)

  
         

Year ending December 31:

        

2020

   $ 135,504  

2021

     76,259  

2022

     220,677  

2023

     98,982  

2024

     78,600  

Thereafter

     557,890  

Total

   $ 1,167,912  
v3.19.3.a.u2
Note 12 - Puna Power Plant Transactions
 12 Months Ended
Dec. 31, 2019
Projected [Member]  
Notes to Financial Statements  
Leases of Lessee Disclosure [Text Block]

NOTE 12 — PUNA POWER PLANT TRANSACTIONS

 

In 2005, the Company’s wholly owned subsidiary in Hawaii, Puna Geothermal Ventures (“PGV”), entered into lease transactions involving the original geothermal power plant of the Puna complex located on the Big Island (the “Puna Power Plant”).

 

In December 2019, PGV and HELCO executed an amended and restated PPA for power sold from the Puna complex power plant. The new PPA extends the term until 2052 with an increased contract capacity of 46 MW and a fixed price of $70 per MWh with no escalation all energy purchased during any contract year up to 227,000 MWh and $40 per MWh above 227,000 MWh. In addition, annual capacity payments under the contract are expected to be approximately $19.5 million. The amended and restated PPA was filed with the Public Utilities Commission on December 31, 2019.

 

In connection with the execution of the amended and restated PPA, the Company paid $20.5 million to effectively terminate the lease transactions involving the original power plant which gives the Company the ability to satisfy its obligations under the new PPA. The Company recorded this payment under deposits and other in its consolidated balance sheets as an incremental cost in obtaining the new amended and restated PPA as described above. As a result, the Company has no obligation for future minimum payments as of December 31, 2019.

 

Prior to the amended and restated PPA, PGV leased the Puna Power Plant to an unrelated company under a 31-year head lease (the “Head Lease”) in return for prepaid lease payments in the total amount of $83.0 million (the “Deferred Lease Income”). The unrelated company (the “Lessor”) simultaneously leased back the Puna Power Plant to PGV under a 23-year lease (the “Project Lease”). PGV’s rent obligations under the Project Lease were paid solely from revenues generated by the Puna Power Plant under a PPA that PGV had with HELCO. The Head Lease and the Project Lease were non-recourse lease obligations to the Company. PGV’s rights in the geothermal resource and the related PPA were not leased to the Lessor as part of the Head Lease but are part of the Lessor’s security package.

 

 The Head Lease and the Project Lease were accounted for separately. Each was classified as an operating lease in accordance with the accounting standards for leases. The Project Lease transaction was included in the initial recognition of operating leases right of use asset and liability on the consolidated balance sheets as of January 1, 2019 as further described under Note 1 to the consolidated financial statements under the caption New Accounting Pronouncements, Leases. The Deferred Lease Income was amortized into revenue using the straight-line method, over the 31-year term of the Head Lease. Deferred transaction costs amounting to $4.2 million were amortized using the straight-line method, over the 23-year term of the Project Lease. The carrying value of the leased assets as of December 31, 2018 was $19.7 million, net of accumulated depreciation of $33.1 million.
v3.19.3.a.u2
Note 13 - Tax Monetization Transactions
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Disclosure Of Investments In And Advances To Affiliates [Text Block]

NOTE 13 —TAX MONETIZATION TRANSACTIONS

 

McGinness Hills 3 tax monetization transaction

 

On August 14, 2019, one of the Company’s wholly-owned subsidiaries that indirectly owns the 48 MW McGinness Hills phase 3 geothermal power plant entered into a partnership agreement with a private investor. Under the transaction documents, the private investor acquired membership interests in the McGinness Hills phase 3 geothermal power plant for an initial purchase price of approximately $59.3 million and for which it will pay additional installments that are expected to amount to approximately $9 million and can reach up to $22 million based on the actual generation. The Company will continue to consolidate, operate and maintain the power plant and will receive substantially all the distributable cash flow generated by the power plant and the private investor will receive substantially all of the tax attributes, as described below.

 

Pursuant to the transaction documents, prior to December 31, 2027 (“Target Flip Date”), one of the Company’s wholly owned subsidiary receives substantially all of the distributable cash flow generated by the McGinness Hills phase 3 power plant, while the private investor receives substantially all of the tax attributes of the project. Following the later of the Target Flip Date and the date on which the private investor reaches its target return, the Company will receive 97.5% of the distributable cash generated by the power plant and 95.0% of the tax attributes, on a go forward basis. In the event that the private investor will not reach its target return by the Target Flip Date, then for the period between the Target Flip Date and the date on which the private investor reaches its target return, the private investor will receive 100% of the distributable cash generated by the power plant and 99% of the tax attributes as long as the project is generating PTCs (and 5% of the tax attributes afterwards).

 

On the Target Flip Date, the Company, through one of its wholly-owned subsidiaries, has the option to purchase the private investor’s interests at the then-current fair market value, plus an amount that causes the private investor to reach its target return, if needed. If the Company exercises this purchase option, it will become the sole owner of the project again.

 

Tungsten Mountain partnership transaction 

 

On May 17, 2018, one of the Company’s wholly-owned subsidiaries that indirectly owns the 26 MW Tungsten Mountain Geothermal power plant entered into a partnership agreement with a private investor. Under the transaction documents, the private investor acquired membership interests in the Tungsten Mountain Geothermal power plant project for an initial purchase price of approximately $33.4 million and for which it will pay additional installments that are expected to amount to approximately $13 million. The Company will continue to operate and maintain the power plant and will receive substantially all the distributable cash flow generated by the power plant, as described below.

 

Under the transaction documents, prior to December 31, 2026 (“Target Flip Date”), the Company’s wholly-owned subsidiary, Ormat Nevada Inc. ("Ormat Nevada"), receives substantially all of the distributable cash flow generated by the project, while the private investor receives substantially all of the tax attributes of the project. Following the later of the Target Flip Date and the date on which the private investor reaches its target return, Ormat Nevada will receive 97.5% of the distributable cash and 95.0% of the taxable income, on a go forward basis. In the event that the private investor will not reach its target return by the Target Flip Date, then for the period between the Target Flip Date and the date on which the private investor reaches its target return, the private investor will receive 100% of the distributable cash generated by the power plant and 99% of the tax attributes as long as the project is generating PTCs (and 5% of the tax attributes afterwards).

 

On the Target Flip Date, Ormat Nevada has the option to purchase the private investor’s interests at the then-current fair market value, plus an amount that causes the private investor to reach its target return, if needed. If Ormat Nevada exercises this purchase option, it will become the sole owner of the project again.

 

Opal Geo Transaction

 

On December 16, 2016, Ormat Nevada entered into an equity contribution agreement (the “Equity Contribution Agreement”) with OrLeaf LLC (“OrLeaf”) and JPM with respect to Opal Geo. Also on December 16, 2016, OrLeaf, a newly formed limited liability company formed by Ormat Nevada and ORPD LLC, entered into an amended and restated limited liability company agreement of Opal Geo (the “LLC Agreement”) with JPM. The transactions contemplated by the Equity Contribution Agreement and LLC Agreement will allow the Company to monetize federal PTCs and certain other tax benefits relating to the operation of five geothermal power plants located in Nevada.

 

In connection with the transactions contemplated by the Equity Contribution Agreement and the LLC Agreement, Ormat Nevada transferred its indirect ownership interest in the McGinness Hills (Phase I and Phase II), Tuscarora, Jersey Valley and second phase of the Don A. Campbell (“DAC 2”) geothermal power plants to Opal Geo. Prior to such transfer, Ormat Nevada held an approximately 63.25% indirect ownership interest in DAC 2 through ORPD LLC, a joint venture between Ormat Nevada and Northleaf Geothermal Holdings LLC (“Northleaf”), an affiliate of Northleaf Capital Partners, and held, directly or indirectly, a 100% ownership interest in the remaining geothermal power plants that were transferred to Opal Geo.

 

Pursuant to the Equity Contribution Agreement, JPM contributed approximately $62.1 million to Opal Geo in exchange for 100% of the Class B Membership Interests of Opal Geo. JPM also agreed to make deferred capital contributions to Opal Geo based on the amount of electricity generated by the DAC 2 and McGinness Hills Phase II power plants which are eligible for the federal PTC. The Company expects the aggregate amount of JPM’s deferred capital contributions to equal approximately $21 million and to be paid over time covering the period through December 31, 2022.

 

Under the LLC Agreement, until December 31, 2022, OrLeaf will receive distributions of 97.5% of any distributable cash generated by operation of the power plants while JPM will receive distributions of 2.5% of any distributable cash generated by operation of the power plants. Unless JPM has already achieved its target internal rate of return on its investment in Opal Geo, from December 31, 2022 until JPM has achieved its target internal rate of return, JPM will receive 100% of any distributable cash generated by operation of the power plants. Thereafter, OrLeaf will receive distributions of 97.5%, and JPM will receive 2.5%, of any distributable cash generated by operation of the power plants.

 

Under the LLC Agreement, all items of Opal Geo income and loss, gain, deduction and credit (including the federal production tax credits relating to the operation of the two PTC eligible power plants) will be allocated, until JPM has achieved its target internal rate of return on its investment in Opal Geo (and for so long as the two PTC eligible power plants are generating PTCs), 99% to JPM and 1% to OrLeaf, or 5% to JPM and 95% to OrLeaf if PTCs are no longer available to either of the two PTC eligible power plants. Once JPM achieves its target internal rate of return, all items of Opal Geo income and loss, gain, deduction and credit will be allocated 5% to JPM and 95% to OrLeaf.

 

Under the LLC Agreement, OrLeaf, which owns 100% of the Class A Membership Interests in Opal Geo, will serve as the managing member of Opal Geo and control the day-to-day management of Opal Geo and its portfolio of five power plants. However, in certain limited circumstances (such as bankruptcy of Orleaf, fraud or gross negligence by OrLeaf) JPM may remove OrLeaf as the managing member of Opal Geo. JPM, as the Class B Member of Opal Geo, has consent and approval rights with respect to certain items that are designated as major decisions for Opal Geo and the five power plants. In addition, by virtue of certain provisions in OrLeaf’s own limited liability company agreement, and consistent with the ORPD LLC formation documents, Northleaf has similar consent and approval rights with respect to OrLeaf’s determination of major decisions pertaining to the DAC 2 power plant. In both cases, these major decisions are generally equivalent to customary minority protection rights. As a result, the Company’s wholly owned subsidiary, Ormat Nevada, which serves as the managing member of OrLeaf and as the managing member of ORPD LLC, will effectively retain the day-to-day control and management of Opal Geo and its portfolio of five power plants.

 

The LLC Agreement contains certain customary restrictions on transfer applicable to both OrLeaf and JPM with respect to their respective Membership Interests in Opal Geo, and also provides OrLeaf with a right of first offer in the event JPM desires to transfer any of its Class B Membership Interests, pursuant to which OrLeaf may purchase such Class B Membership Interests. The LLC Agreement also provides OrLeaf with the option to purchase all of the Class B Membership Interests on either December 31, 2022 or the date that is 9 years after the closing date under the Equity Contribution Agreement at a price equal to the greater of (i) the fair market value of the Class B Membership Interests as of the date of purchase (subject to certain adjustments) and (ii) $3 million.

 

Pursuant to the Equity Contribution Agreement, the Company has provided a guaranty for the benefit of JPM of certain of OrLeaf’s indemnification obligations to JPM under the LLC Agreement. In addition, Ormat Nevada also provided a guaranty for the benefit of JPM of all present and future payment and performance obligations of OrLeaf under the LLC Agreement and each ancillary document to which OrLeaf is a party.

 

JPM’s approximately $62.1 million capital contribution to Opal Geo was recorded as a $3.7 million allocation to noncontrolling interests and a $58.5 million allocation to liability associated with sale of tax benefits as described in Note 1. JPM also agreed to make deferred capital contributions to Opal Geo based on the amount of electricity generated by the DAC 2 and McGinness Hills Phase II power plants which are eligible for the federal PTC.

 

Other completed tax monetization transactions

 

On May 31, 2017, the Company’s partners JPM and Morgan Stanley achieved their target after-tax yield on its investment in OPC and on October 31, 2017, Ormat Nevada purchased all of the Class B membership units in OPC from JPM and Morgan Stanley for $1.9 million. As a result, Ormat Nevada is now the sole owner of all of the economic and voting interests in OPC and continues to consolidate OPC in its financial statements. The purchase of Class B membership units of OPC was recorded in equity as a reduction of $6.5 million to Noncontrolling Interest with the surplus of $8.5 million charged to Additional Paid-in Capital.

 

In March 2017, JPM achieved its target after-tax yield on its investment in ORTP and on July 10, 2017, Ormat Nevada purchased all of the Class B membership units in ORTP from JPM for $2.4 million. As a result, Ormat Nevada is now the sole owner of all of the economic and voting interests in ORTP and continues to consolidate ORTP in its financial statements. The purchase of Class B membership units of ORTP was recorded in equity as a reduction to Noncontrolling Interest of $7.0 million with the surplus of $2.9 million charged to Additional Paid-in Capital.
v3.19.3.a.u2
Note 14 - Asset Retirement Obligation
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Asset Retirement Obligation Disclosure [Text Block]

NOTE 14 — ASSET RETIREMENT OBLIGATION

 

The following table presents a reconciliation of the beginning and ending aggregate carrying amount of asset retirement obligation for the years presented below:

 

   

Year Ended December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Balance at beginning of year

   $ 39,475     $ 27,110  

Revision in estimated cash flows

     (335

)

     (258

)

Liabilities incurred and acquired

     8,334       10,149  

Accretion expense

     2,709       2,474  

Balance at end of year

   $ 50,183     $ 39,475  
v3.19.3.a.u2
Note 15 - Stock-based Compensation
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]

NOTE 15 — STOCK-BASED COMPENSATION

 

The Company makes an estimate of expected forfeitures and recognizes compensation costs only for those stock-based awards expected to vest. As of December 31, 2019, the total future compensation cost related to unvested stock-based awards that are expected to vest is $8.4 million, which will be recognized over a weighted average period of 1.2 years.

 

During the years ended December 31, 2019, 2018 and 2017, the Company recorded compensation related to stock-based awards as follows:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Cost of revenues

   $ 3,633     $ 3,488     $ 3,369  

Selling and marketing expenses

     4,810       792       452  

General and administrative expenses

     916       5,938       4,939  

Total stock-based compensation expense

     9,359       10,218       8,760  

Tax effect on stock-based compensation expense

     736       668       604  

Net effect of stock-based compensation expense

   $ 8,623     $ 9,550     $ 8,156  

 

During the fourth quarter of 2019, 2018 and 2017, the Company evaluated the trends in the stock-based award forfeiture rate and determined that the actual rates are 10.7%, 5.3% and 1.1%, respectively. This represents an increase of 101.9%, an increase of 381.8%, and a decrease of 89.3%, respectively, from prior estimates. As a result of the change in the estimated forfeiture rate, there was an immaterial impact on stock-based compensation expense for each of the respective periods.

 

Valuation assumptions

 

The Company estimates the fair value of the stock-based awards using the Exercise Multiple-Based Lattice Model as it enables a degree of accounting for the complexities of option valuation and reduces the probability of a measurement error. The dividend yield forecast is expected to be 20% of the Company’s yearly net profit, which is equivalent to a 0.7% yearly weighted average dividend rate in the year ended December 31, 2019. The risk-free interest rate was based on the yield from U.S. constant treasury maturities bonds with an equivalent term. The forfeiture rate is based on trends in actual stock-based awards forfeitures.

 

The Company calculated the fair value of each stock-based award on the date of grant based on the following assumptions:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  

For stock based awards issued by the Company:

                        

Risk-free interest rates

     1.8

%

     2.8

%

     1.9

%

Expected lives (in weighted average years)

     3.5       3.5       3.1  

Dividend yield

     0.7

%

     0.9

%

     0.62

%

Expected volatility (weighted average)

     25.1

%

     25.5

%

     27.2

%

 

The Company estimated the forfeiture rate (on a weighted average basis) as follows:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
                         

Weighted average forfeiture rate

     8.6

%

     3.1

%

     —

%

 

Stock-based awards

 

The 2012 Incentive Compensation Plan

 

In May 2012, the Company’s shareholders adopted the 2012 Incentive Plan, which provides for the grant of the following types of awards: incentive stock options, non-qualified stock options, restricted stock units ("RSUs"), stock appreciation rights ("SARs”), stock units, performance awards, phantom stock, incentive bonuses, and other possible related dividend equivalents to employees of the Company, directors and independent contractors. Under the 2012 Incentive Plan, a total of 4,000,000 shares of the Company’s common stock were reserved for issuance, all of which could be issued as options or as other forms of awards. Options and SARs granted to employees under the 2012 Incentive Plan typically vest and become exercisable as follows: 25% vest 24 months after the grant date, an additional 25% vest 36 months after the grant date, and the remaining 50% vest 48 months after the grant date. Options granted to non-employee directors under the 2012 Incentive Plan will vest and become exercisable one year after the grant date. Restricted stock units granted to directors and members of senior management vest according to a vesting schedule as follows: for the directors, 100% on the first anniversary of the grant date and for members of senior management, 25% on each of the first, second, third and fourth anniversaries of the grant date.  The term of stock-based awards typically ranges from six to ten years from the grant date. The shares of common stock issued in respect of awards under the 2012 Incentive Plan are issued from the Company’s authorized share capital upon exercise of options or SARs. The 2012 Incentive Plan expired in May 2018 upon adoption of the 2018 Incentive Compensation Plan (“2018 Incentive Plan”), except as to stock-based awards outstanding under the 2012 Incentive Plan on that date.

 

The 2018 Incentive Compensation Plan

 

In May 2018, the Company held its 2018 Annual Meeting of Stockholders at which the Company's stockholders approved the 2018 Incentive Plan. The 2018 Incentive Plan provides for the grant of the following types of awards: incentive stock options, RSUs, SARs, stock units, performance awards, phantom stock, incentive bonuses and other possible related dividend equivalents to employees of the Company, directors and independent contractors. Under the 2018 Incentive Plan, a total of 5,000,000 shares of the Company’s common stock were authorized and reserved for issuance, all of which could be issued as options or as other forms of awards. SARs and RSUs granted to employees under the 2018 Incentive Plan typically vest and become exercisable as follows: 50% on the second anniversary of the grant date and 25% on each of the third and fourth anniversaries of the grant date.  SARs and Restricted stock units granted to directors under the 2018 Incentive Plan typically vest and become exercisable (100%) on the first anniversary of the grant date. The term of stock-based awards typically ranges from six to ten years from the grant date. The shares of common stock issued in respect of awards under the 2018 Incentive Plan are issued from the Company’s authorized share capital upon exercise of options or SARs.

 

On November 7, 2019, the Company granted its directors an aggregate of 11,495 SARs and 9,420 RSUs under the Company’s 2018 Incentive Plan. The exercise price of each SAR was $76.87 which represented the fair market value of the Company’s common stock on the grant date. The SARs will expire six years from date of grant and both the SARs and RSUs will fully vest on the first anniversary of the grant date.

 

The fair value of each SAR and RSU for the directors on the grant date was $19.8 and $76.4, respectively. The Company calculated the fair value of each SAR on the grant date using the Exercise Multiple-Based Lattice Pricing model based on the following assumptions:

 

Risk-free interest rate

     1.79

%

Expected life (in years)

     3.5  

Dividend yield

     0.57

%

Expected volatility

     24.80

%

Forfeiture rate for directors

     0.0

%

Sub-Optimal Exercise Factor for directors

     2.8  

 

Information on the awards outstanding and the related weighted average exercise price as of and for the years ended December 31, 2019, 2018 and 2017 are presented in the table below:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

Awards

(In thousands)

    

Weighted

Average

Exercise

Price

    

Awards

(In thousands)

    

Weighted

Average

Exercise

Price

    

Awards

(In thousands)

    

Weighted

Average

Exercise

Price

  

Outstanding at beginning of year

     2,527     $ 46.77       1,548     $ 41.35       2,565     $ 33.36  

Granted, at fair value:

                                                

Stock Options

     —       —       —       —       30       57.97  

SARs*

     38       69.13       1,172       53.87       132       62.55  

RSUs**

     9       —       74       —       23       —  

Exercised

     (711

)

     37.83       (203

)

     29.75       (1,181

)

     25.92  

Forfeited

     (71

)

     50.59       (64

)

     45.73       (21

)

     46.15  

Expired

     —       —       —       —       —       —  

Outstanding at end of year

     1,792       50.39       2,527       46.77       1,548       41.35  

Options and SARs exercisable at end of year

     479       48.35       846       42.06       431       32.61  

Weighted-average fair value of options and SARs granted during the year

           $ 29.24             $ 16.45             $ 22.82  

 

*

Upon exercise, SARs entitle the recipient to receive shares of common stock equal to the increase in value of the award between the grant date and the exercise date.

 

**

An RSU represents the right to receive one share of common stock once certain vesting conditions are met. The value of an RSU is identical to the value of the underlying stock.

 

As of December 31, 2019, 3,584,485 shares of the Company’s common stock are available for future grants under the 2018 Incentive Plan. No shares of the Company’s common stock are available for future grants under the 2012 Incentive Plan as of such date.

 

The following table summarizes information about stock-based awards outstanding at December 31, 2019 (shares in thousands):

 

       

Awards Outstanding

    

Awards Exercisable

  

Exercise Price

    

Number of

Stock-based

Awards

Outstanding

    

Weighted

Average

Remaining

Contractual

Life in Years

    

Aggregate

Intrinsic Value

    

Number of

Stock-based

Awards

Exercisable

    

Weighted

Average

Remaining

Contractual

Life in Years

    

Aggregate

Intrinsic Value

  
                                                     
$ —       59       1.5     $ 4,369       —       —     $ —  
  42.87       427       2.5       13,517       230       2.5       7,295  
  47.46       15       3.9       406       15       3.9       406  
  51.71       8       5.0       182       —       —       —  
  53.16       35       4.9       756       15       4.9       329  
  53.44       783       4.5       16,498       —       —       —  
  55.16       296       3.9       5,724       131       3.9       2,527  
  57.97       30       4.6       497       30       4.6       497  
  58.79       12       2.5       187       6       2.5       94  
  63.35       98       3.9       1,094       52       3.9       581  
  71.71       4       5.6       11       —       —       —  
  72.14       15       5.7       36       —       —       —  
  76.43       10       5.9       —       —       —       —  
                                                     
          1,792       3.8     $ 43,277       479       3.2     $ 11,729  

 

The following table summarizes information about stock-based awards outstanding at December 31, 2018 (shares in thousands):

 

       

Awards Outstanding

    

Awards Exercisable

  

Exercise Price

    

Number of

Stock-based

Awards

Outstanding

    

Weighted

Average

Remaining

Contractual

Life in Years

    

Aggregate

Intrinsic Value

    

Number of

Stock-based

Awards

Exercisable

    

Weighted

Average

Remaining

Contractual

Life in Years

    

Aggregate

Intrinsic Value

  
                                                     
$ —       75       1.8     $ 3,933       —       —     $ —  
  20.13       29       0.3       924       29       0.3       924  
  23.34       99       0.4       2,897       99       0.4       2,897  
  35.15       15       4.1       257       15       4.1       257  
  38.24       15       3.8       211       15       3.8       211  
  42.87       942       3.5       8,879       521       3.5       4,918  
  47.46       38       4.9       182       38       4.9       182  
  53.16       35       5.9       —       —       —       —  
  53.44       828       5.5       —       —       —       —  
  55.16       296       4.9       —       66       4.9       —  
  57.97       30       5.6       —       30       5.6       —  
  58.79       16       3.5       —       —       —       —  
  63.35       109       4.9       —       33       4.9       —  
                                                     
          2,527       4.3     $ 17,283       846       3.3     $ 9,389  

 

The aggregate intrinsic value in the above tables represents the total pretax intrinsic value, based on the Company’s stock price of $74.52 and $52.30 as of December 31, 2019 and 2018, respectively, which would have potentially been received by the stock-based award holders had all stock-based award holders exercised their stock-based award as of those dates. The total number of in-the-money stock-based awards exercisable as of December 31, 2019 and 2018 was 479,402 and 846,215, respectively.

 

The total pretax intrinsic value of options exercised during the year ended December 31, 2019 and 2018 was $19.3 million and $5.2 million, respectively, based on the average stock price of $65.04 and $55.58 during the years ended December 31, 2019 and 2018, respectively. The stock price as of December 31, 2019 and 2018 was $75.14 and $52.30, respectively.
v3.19.3.a.u2
Note 16 - Power Purchase Agreements
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Leases of Lessor Disclosure [Text Block]

NOTE 16 — POWER PURCHASE AGREEMENTS

 

Substantially all of the Company’s electricity revenues are recognized pursuant to PPAs in the United States and in various foreign countries, including Kenya, Guatemala, Guadeloupe and Honduras. These PPAs generally provide for the payment of energy payments or both energy and capacity payments through their respective terms which expire in varying periods from 2022 to 2047. Generally, capacity payments are calculated based on the amount of time that the power plants are available to generate electricity. The energy payments are calculated based on the amount of electrical energy delivered at a designated delivery point. The price terms are customary in the industry and include, among others, a fixed price, SRAC (the incremental cost that the power purchaser avoids by not having to generate such electrical energy itself or purchase it from others), and a fixed price with an escalation clause that includes the value for environmental attributes, known as renewable energy credits. Certain of the PPAs provide for bonus payments in the event that the Company is able to exceed certain target levels and potential payments by the Company if it fails to meet minimum target levels. The Company has PPAs that give the power purchaser or its designee a right of first refusal or a right of first offer to acquire the geothermal power plants at fair market value as negotiated between the parties. The Company’s subsidiaries in Guatemala sell power at an agreed upon price subject to terms of a “take or pay” PPA. During the fourth quarter of 2019, one of the Company's subsidiaries in Guatemala started selling power under the energy and capacity framework once the "take or pay" arrangement ended.

 

Pursuant to the terms of certain of the PPAs, the Company may be required to make payments to the relevant power purchaser under certain conditions, such as shortfall in delivery of renewable energy and energy credits, and not meeting certain performance threshold requirements, as defined in the relevant PPA. The amount of payment required is dependent upon the level of shortfall in delivery or performance requirements and is recorded in the period the shortfall occurs. In addition, if the Company does not meet certain minimum performance requirements, the capacity of the power plant may be permanently reduced.
v3.19.3.a.u2
Note 17 - Interest Expense, Net
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Interest Expense Disclosure [Text Block]

NOTE 17 — INTEREST EXPENSE, NET

 

The components of interest expense are as follows:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Interest related to sale of tax benefits

   $ 11,786     $ 11,284     $ 6,985  

Interest expense

     71,883       63,368       54,381  

Less — amount capitalized

     (3,285

)

     (3,728

)

     (7,224

)
    $ 80,384     $ 70,924     $ 54,142  

v3.19.3.a.u2
Note 18 - Income Taxes
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE 18 — INCOME TAXES

 

U.S. and foreign components of income from continuing operations, before income taxes and equity in income (losses) of investees consisted of:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

U.S

   $ 14,187     $ 14,097     $ 13,680  

Non-U.S. (foreign)

     123,116       123,084       157,050  

Total income from continuing operations, before income taxes and equity in losses

   $ 137,303     $ 137,181     $ 170,730  

 

The components of the provision (benefit) for income taxes, net are as follows:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Current:

                        

Federal

   $ —     $ 0     $ 43,935  

State

     172       381       43  

Foreign

     16,969       14,992       11,186  

Total current income tax expense

   $ 17,141     $ 15,373     $ 55,164  
                         

Deferred:

                        

Federal

     (12,179

)

     (6,886

)

     (55,718

)

State

     4,671       (2,595

)

     (3,284

)

Foreign

     35,980       28,841       25,502  

Total deferred tax provision (benefit)

     28,472       19,360       (33,500

)

Total Income tax provision

   $ 45,613     $ 34,733     $ 21,664  

 

Reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  

U.S. federal statutory tax rate

     21.0

%

     21.0

%

     35.0

%

Impact of federal tax reform

     0.0       2.6       (12.4

)

Transition tax inclusion

     —       (5.7

)

     42.1  

Foreign tax credits

     (22.8

)

     (4.2

)

     (50.5

)

Withholding tax

     10.4       5.9       34.1  

Valuation allowance - U.S

     (3.7

)

     (17.2

)

     (22.6

)

State income tax, net of federal benefit

     3.7       1.0       1.1  

Uncertain tax positions

     2.1       2.1       —  

Effect of foreign income tax, net

     9.7       5.6       (10.7

)

Production tax credits

     (5.0

)

     (3.1

)

     (1.2

)

Subpart F income

     0.5       0.5       1.7  

Tax on global intangible low-tax income

     16.9       18.6       —  

Intra-entity transfers of assets other than inventory

     0.3

 

     (2.1

)

     —  

Other, net

     0.1       0.3       (3.9

)

Effective tax rate

     33.2

%

     25.3

%

     12.7

%

 

The net deferred tax assets and liabilities consist of the following:

 

   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  
                 

Deferred tax assets (liabilities):

                

Net foreign deferred taxes, primarily depreciation

   $ (88,508

)

   $ (57,202

)

Depreciation

     (21,958

)

     (30,500

)

Intangible drilling costs

     (1,405

)

     7,370  

Net operating loss carryforward - U.S.

     45,307       65,020  

Tax monetization transaction

     (30,964

)

     (17,104

)
Right-of-use assets     (3,715 )     —  
Lease liabilities     3,755       —  

State and Investment tax credits

     813       813  

Production tax credits

     100,524       90,913  

Foreign tax credits

     92,497       58,072  

Withholding tax

     (15,539

)

     (8,052

)

Stock options amortization

     1,409       1,440  

Basis difference in partnership interest

     (39,622

)

     (36,516

)

Excess business interest

     6,189       —  

Accrued liabilities and other

     1,013       624  
      49,796       74,878  

Less - valuation allowance

     (17,412

)

     (22,441

)

Total

   $ 32,384     $ 52,437  

 

 

The following table presents a reconciliation of the beginning and ending valuation allowance:

 

   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  
                         

Balance at beginning of the year

   $ 22,441     $ 77,571     $ 116,234  

Additions to valuation allowance

     15,437       4,747       46,560  

Release of valuation allowance

     (20,466

)

     (59,877

)

     (85,223

)

Balance at end of the year

   $ 17,412

 

   $ 22,441     $ 77,571  

 

At December 31, 2019, the Company had U.S. federal net operating loss (“NOL”) carryforwards of approximately $132.7 million, of this amount, $127.9 million was generated before 2018 and expires between 2032 and 2037.  The remaining $4.8 million was generated after 2017 and is available to be carried forward for an indefinite period.

 

At December 31, 2019, the Company had production tax credits (“PTCs") in the amount of $100.5 million.  These PTCs are available for a 20-year period and expire between 2022 and 2039. At December 31, 2019, the Company had U.S. foreign tax credits (“FTCs”) in the amount of $92.5 million.  These FTCs are available for a 10-year period and begin to expire in 2022.

 

At December 31, 2019, the Company had state NOL carryforwards of approximately $277.9 million, $275.5 million which expire between 2025 and 2039 and $2.4 million are available to be carried forward for an indefinite period. At December 31, 2019, the Company had state tax credits in the amount of $0.8 million. These state tax credits are available to be carried forward for an indefinite period.

 

The Company has recorded deferred tax assets for net operating losses, foreign tax credits, and production tax credits.  Realization of the deferred tax assets and tax credits is dependent on generating sufficient taxable income in appropriate jurisdictions prior to expiration of the NOL carryforwards and tax credits. Based upon available evidence of the Company’s ability to generate additional taxable income in the future and historical losses in prior years, a valuation allowance in the amount of $17.4 million and $22.4 million is recorded against the U.S. deferred tax assets as of December 31, 2019 and 2018, respectively, as it is more likely than not that the deferred tax assets will not be realized.  The overall decrease in the valuation allowance of $5.0 million is due to full utilization of foreign tax credits that generated the valuation allowance at December 31, 2018, which were offset by increased valuation allowance related to production tax credits. The Company is maintaining a valuation allowance of $17.4 million against a portion of the U.S. production tax credits and state NOLs that are expected to expire before they can be utilized in future periods.

 

On April 24, 2018, the Company acquired 100% of stock of USG for approximately $110 million.  Under the acquisition method of accounting, the Company recorded a net deferred tax asset of $1.7 million comprised primarily of federal and state NOLs netted against deferred tax liabilities for partnership basis differences and fixed assets.  The total amount of acquired federal and state NOLs, which are subject to limitations under Section 382, were $115.2 million and $49.9 million, respectively.  A valuation allowance of $2.1 million has been recorded against such acquired state NOLs, as it is more likely than not that the deferred tax asset will not be realized.

 

On December 22, 2017, the U.S. government signed into law the Tax Act.  The Tax Act made significant changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2) the transition of U.S. international taxation from a worldwide tax system to a territorial system (GILTI, BEAT, Dividends Received Deduction); (3) one-time transition tax on undistributed earnings of foreign subsidiaries as of December 31, 2017;  (4) eliminating the corporate alternative minimum tax; (5) creating a new limitation on deductible interest expense; and (6) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017.

 

The FASB released guidance Staff Q&A, Topic 740, No. 5, that states a company can make an accounting policy election to either recognize deferred taxes related to GILTI or to provide for the GILTI tax expense in the year the tax is incurred as a period cost.  The Company has elected to treat any GILTI inclusions as a period cost.

 

The following table presents the deferred taxes on the balance sheet as of the dates indicated:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  
                         

Non-current deferred tax assets

   $ 129,510     $ 113,760     $ 57,337  

Non-current deferred tax liabilities

     (97,126

)

     (61,323

)

     (61,961

)

Non-current deferred tax assets, net

     32,384       52,437       (4,624

)

Uncertain tax benefit offset (1)

     (95

)

     (95

)

     (95

)
    $ 32,289     $ 52,342     $ (4,719

)

 

(1) The non-current deferred tax asset has been reduced by the uncertain tax benefit of $0.1 million in accordance with ASU 2013-11, Income Taxes.

 

At December 31, 2019, the Company is no longer indefinitely reinvested with respect to the earnings of its foreign subsidiaries due to forecasted changes in cash needs and the impact of U.S. tax reform.  The Company has accrued withholding taxes that would be owed upon future distributions of such earnings, with the exception of a certain balance of earnings held in Israel.  Accordingly, during 2019, the Company included a foreign income tax expense of $13.9 million related to foreign withholding taxes on future distributions of foreign earnings.

 

At December 31, 2018, the Company asserted indefinite reinvestment of undistributed earnings of foreign subsidiaries, other than OSL and as a result, did not record a DTL on the future tax impacts of their remittances.

 

During 2017, the Company changed its intention to reinvest certain undistributed earnings of Ormat Systems Ltd., a wholly owned subsidiary in Israel.  In the prior year, the Company distributed $396.0 million, of which $300.0 million was received in December 2017 and the remaining $96.0 million was received in December 2018.  The Company recorded the tax impact of the distribution received in 2018 as part of the 2017 financials, including the 15% Israeli withholding tax in the amount of $14.4 million and corresponding foreign tax credit tax benefit, net of valuation allowance.

 

Uncertain tax positions

 

The Company is subject to income taxes in the United States (federal and state) and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company's tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite evidence supporting the position. The Company adjusts these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve positions and changes to reserves that are considered probable.

 

At December 31, 2019 and 2018, there are $14.6 million and $11.8 million of unrecognized tax benefits, respectively, that if recognized would reduce the effective tax rate . Interest and penalties assessed by taxing authorities on an underpayment of income taxes are included as a component of income tax provision in the consolidated statements of operations and comprehensive income.

 

A reconciliation of the Company's unrecognized tax benefits is as follows:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Balance at beginning of year

   $ 8,820     $ 6,357     $ 4,609  

Additions based on tax positions taken in prior years

     104       293       5  

Additions based on tax positions taken in the current year

     2,314       2,446       2,580  

Reduction based on tax positions taken in prior years

     (615

)

     (276

)

     (837

)

Balance at end of year

   $ 10,623     $ 8,820     $ 6,357  

 

 The Company and its U.S. subsidiaries file consolidated income tax returns for federal and state (where applicable) purposes. As of December 31, 2019, the Company has not been subject to U.S. federal or state income tax examinations.

 

The Company remains open to examination by the Internal Revenue Service for the years 2002-2019 and by local state jurisdictions for the years 2004-2019. These examinations may lead to ordinary course adjustments or proposed adjustments to the Company's taxes or the Company's net operating losses with respect to years under examination as well as subsequent periods.

 

The Company’s foreign subsidiaries remain open to examination by the local income tax authorities in the following countries for the years indicated:

 

Israel

   2015 - 2019  

Kenya

   2013 - 2019  

Guatemala

   2015 - 2019  

Honduras

   2015 - 2019  

Guadeloupe

   2017 - 2019  

New Zealand

   2012 - 2019  

 

Management believes that the liability for unrecognized tax benefits is adequate for all open tax years based on its assessment of many factors, including among others, past experience and interpretations of local income tax regulations. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. As a result, it is possible that federal, state and foreign tax examinations will result in assessments in future periods. To the extent any such assessments occur, the Company will adjust its liability for unrecognized tax benefits. The Company is not able to reasonably estimate the amount of unrecognized tax benefits that will be reduced within the next twelve months.

 

Tax benefits in the United States

 

The U.S. government encourages production of electricity from geothermal resources through certain tax subsidies.  On February 9, 2018 the Bipartisan Budget Act of 2018 was enacted extending the PTC and ITC in lieu of PTCs for geothermal projects that began construction before 2018. On December 20, 2019, the Tax Extenders Bill was enacted, further extending the PTC and ITC in lieu of PTCs. Therefore, geothermal projects that begin construction before 2021 and meet certain other “beginning of construction” rules qualify for PTCs for their first 10-years of operations; alternatively, the owner of the project may elect to claim the ITC in lieu of PTCs.  In either case, under current tax rules for tax credits, any unused tax credit has a 1-year carry back and a 20-year carry forward.

 

If the Company claims the ITC, the Company’s “tax base” in the plant that it can recover through bonus or accelerated depreciation (if elected) must be reduced by half of the ITC.  If the Company claims the PTC, there is no reduction in the tax basis for depreciation.  Whether the Company claims the PTC or the ITC in lieu of PTC, for assets acquired and placed in service after September 27, 2017, the Company is eligible to expense 100% of the cost of qualified property (“bonus depreciation”).  In later years, the first-year bonus depreciation deduction phases down, as follows:

 

 

●

80% for property placed in service after Dec. 31, 2022 and before Jan. 1, 2024.
 

●

60% for property placed in service after Dec. 31, 2023 and before Jan. 1, 2025.
 

●

40% for property placed in service after Dec. 31, 2024 and before Jan. 1, 2026.
 

●

20% for property placed in service after Dec. 31, 2025 and before Jan. 1, 2027.

 

The Company could also elect in lieu of bonus deprecation to depreciate most of its "tax base" in the plant for tax purposes over five years on an accelerated basis, meaning that more of the cost may be deducted in the first few years than during the remainder of the depreciation period.

 

Income taxes related to foreign operations

 

Guatemala — The enacted tax rate is 25%. Orzunil, a wholly owned subsidiary, was granted a benefit under a law which promotes development of renewable power sources. The law allows Orzunil to reduce the investment made in its geothermal power plant from income tax payable, which currently reduces the effective tax rate to zero. Ortitlan, another wholly owned subsidiary, was granted a tax exemption for a period of ten years ending August 2017. Starting August 2017, Ortitlan pays income tax of 7% on its Electricity revenues.

 

Israel — The Company’s operations in Israel through its wholly owned Israeli subsidiary, Ormat Systems Ltd. (“Ormat Systems”), are taxed at the regular corporate tax rate of 24% in 2017 and 23% in 2018 and thereafter. Ormat Systems received “Benefited Enterprise” status under Israel’s Law for Encouragement of Capital Investments, 1959 (the “Investment Law”), with respect to two of its investment programs. In January 2011, new legislation amending the Investment Law was enacted. Under the new legislation, a uniform rate of corporate tax would apply to all qualified income of certain industrial companies, as opposed to the current law’s incentives that are limited to income from a “Benefited Enterprise” during their benefits period. According to the amendment, the uniform tax rate applicable to the zone where the production facilities of Ormat Systems are located would be 16% in 2014 and thereafter. Ormat Systems decided to irrevocably comply with the new law starting in 2011. In the event of distribution of a cash dividend out of retained earnings which were tax exempt due to prior benefits, Ormat Systems would have to pay tax in respect of the amount distributed. Since the exemptions are contingent upon nondistribution of dividends and since upon liquidation the Company will have to pay a 25% tax on exempt income, Ormat Systems recorded deferred tax liability at the rate of 25% in respect of the tax exempt income in 2004-2008. In the event that Ormat Systems fails to comply with the program terms, the tax benefits may be canceled and it may be required to refund the amount of the benefits utilized, in whole or in part, with the addition of linkage differences and interest.

 

Kenya - The Company’s operations in Kenya are taxed at the rate of 37.5%. On September 11, 2015, Kenya's Income Tax Act was amended pursuant to certain provisions of the recently adopted Finance Act, 2015. Among other matters, these amendments retain the enhanced investment deduction of 150% under Section 17B of the Income Tax Act, extend the period for deduction of tax losses from 5 years to 10 years under Sections 15(4) and 15(5) of the Income Tax Act, and amend the effective date from January 1, 2016 to January 1, 2015 under Sections 15(4) and 15(5) of the Income Tax Act.

 

Tax audit in Kenya

 

The Company received three letters from the Kenya Revenue Authority ("KRA") relating to certain findings in respect of its review of tax years 2013 to 2017 as described below:

 

The first Letter of Preliminary Findings was received in March 2019, which was followed by a Notice of Assessment during June 2019 in which the KRA demanded approximately $5.6 million from the Company, including interest and penalties in respect of two certain issues relating to its review of tax years 2014 to 2017. In July 2019, the Company responded to the KRA Notice of Assessment primarily objecting to one of the two issues raised in the assessment, consisting of approximately $4.4 million, and asked the KRA to vacate this issue as set forth in its tax assessment letter.

 

The Company received the second Letter of Preliminary Findings ("the Second Letter of Preliminary Findings") from the KRA in July 2019, which relates to findings from the KRA's audit review for tax years 2013 to 2017. In August 2019, the Company filed its response to the Second Letter of Preliminary Findings, contesting the KRA arguments and requesting that the KRA vacate all issues set forth in its Letter of Preliminary Findings. In December 2019, the KRA submitted its audit assessment letter in relation to the 2013 to 2017 tax years in which it demanded approximately $205 million from the Company, including interest and penalties in respect of the issues included in its Second Letter of Preliminary Findings. In January 2020, the Company responded to the KRA objecting to all the issues raised in the tax assessment for tax years 2013 to 2017 and asked the KRA to vacate all issues set forth in its tax assessment letter.

 

The Company received the third Letter of Preliminary Findings (the "Third Letter of Preliminary Findings") from the KRA in December 2019 relating to the same tax years in which the KRA set forth an additional demand for approximately $17 million, including interest and penalties, in relation to an additional audit finding which was not previously included in the KRA's assessments. In January 2020, the Company filed a formal objection to the Third Letter of Preliminary Findings, contesting  the KRA's finding.

 

The Company is currently at different stages of discussions with the KRA on the matters included in the KRA letters of assessment and preliminary findings as described above and 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 December 31, 2019, the Company has not recorded any tax reserves related to these demands except for an immaterial amount included in the first Letter of Preliminary Findings.

 

Guadeloupe - The Company’s operations in Guadeloupe are taxed at a rate of 34.43% in 2017, a maximum rate of 33.3% in 2018, a maximum rate 31% in 2019, a rate of 28% in 2020, 26.5% in 2021 and 25% in 2022.

 

Honduras - The Company’s operations in Honduras are exempt from income taxes for the first ten years starting at the commercial operation date of the power plant.
v3.19.3.a.u2
Note 19 - Business Segments
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 19 — BUSINESS SEGMENTS

 

In 2018, the Company started disclosing its energy storage and power load management business activity under the Energy Storage and Management Services segment as such operations met the reportable segment criteria of ASC 280, Segment Reporting. In 2019, under this business activity, the Company completed two BESS projects in New Jersey, which started generating revenues during that year, and is focused on increasing activity under this reporting segment. As such, the Company renamed its Other reportable segment to "Energy Storage and Management Services" ("ESMS"). This segment only included the Company's storage related activity starting in 2018 as disclosed above. As such, starting in 2018 the Company has three reporting segments: the Electricity segment, the Product segment and the Energy Storage and Management Services segment. These segments are managed and reported separately as each offers different products and serves different markets. The Electricity segment is engaged in the sale of electricity from the Company’s power plants pursuant to PPAs. The Product segment is engaged in the manufacture, including design and development, of turbines and power units for the supply of electrical energy and in the associated construction of power plants utilizing the power units manufactured by the Company to supply energy from geothermal fields and other alternative energy sources. The Energy Storage and Management Services segment is engaged in battery energy storage systems as a service and management of curtailable customer loads under contracts with U.S. retail energy providers and directly with large commercial and industrial customers.

 

Transfer prices between the operating segments were determined on current market values or cost plus markup of the seller’s business segment.

 

Summarized financial information concerning the Company’s reportable segments is shown in the following tables, including, as further described under Note 1 to the consolidated financial statements, the Company's disaggregated revenues from contracts with customers as required by ASC 606:

 

   

Electricity

    

Product

    

ESMS

    

Consolidated

  
   

(Dollars in thousands)

  

Year Ended December 31, 2019:

                                

Revenues from external customers:

                                

United States (1)

   $ 333,797     $ 30,562     $ 13,597     $ 377,956  

Foreign (2)

     206,536       160,447       1,105       368,088  

Net revenues from external customers

     540,333       191,009       14,702       746,044  

Intersegment revenues

     —       84,614       —       84,614  

Depreciation and amortization expense

     138,426       5,308       5,027       148,761  

Operating income (loss)

     177,192       23,180       (6,576

)

     193,796  

Segment assets at period end (3) (*)

     3,044,909       126,018       79,567       3,250,494  

Expenditures for long-lived assets

     259,898       9,156       10,932       279,986  

* Including unconsolidated investments

     81,140       —       —       81,140  
                                 

Year Ended December 31, 2018:

                                

Revenues from external customers:

                                

United States (1)

     305,962       14,999       7,645       328,606  

Foreign (2)

     203,917       186,744       —       390,661  

Net revenues from external customers

   $ 509,879     $ 201,743     $ 7,645     $ 719,267  

Intersegment revenues

     —       48,817       —       48,817  

Depreciation and amortization expense

     126,181       4,311       1,741       132,233  

Operating income (loss)

     155,546       38,083       (8,519

)

     185,110  

Segment assets at period end (3) (*)

     2,896,938       156,942       67,470       3,121,350  

Expenditures for long-lived assets

     219,803       9,993       28,725       258,521  

* Including unconsolidated investments

     71,983       —       —       71,983  
                                 

Year Ended December 31, 2017:

                                

Revenues from external customers

   $ 465,593     $ 224,483     $ 2,736     $ 692,812  

Intersegment revenues

     —       109,040       —       109,040  

Depreciation and amortization expense

     109,928       3,470       1,748       115,146  

Operating income (loss)

     157,613       50,543       (3,138

)

     205,018  

Segment assets at period end (3) (*)

     2,457,514       115,713       50,637       2,623,864  

Expenditures for long-lived assets

     252,581       6,653       —       259,234  

* Including unconsolidated investments

     34,084       —       —       34,084  

 

(1)

Electricity segment revenues in the United States are all accounted under lease accounting, except for $61.3 million and $26.9 million for the years December 31, 2019 and 2018 that are accounted under ASC 606 starting in 2018. Product and Energy Storage and Management Services segment revenues in the United States are accounted under ASC 606, as further described under Note 1 to the consolidated financial statements.

 

(2)

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

 

(3)

Electricity segment assets include goodwill in the amount of $20.1 million, $20.0 million and $7.6 as of December 31, 2019, 2018 and 2017, respectively. No goodwill is included in the Product and Energy Storage and Management Services segment assets as of December 31, 2019 and 2018. Energy Storage and Management Services segment assets as December 31, 2017 include goodwill in the amount of $13.5 million. For further information on goodwill, see Note 9 – Intangible assets and goodwill to the consolidated financial statements.

 

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

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  
                         

Revenues:

                        

Total segment revenues

   $ 746,044     $ 719,267     $ 692,812  

Intersegment revenues

     84,614       48,817       109,040  

Elimination of intersegment revenues

     (84,614

)

     (48,817

)

     (109,040

)
                         

Total consolidated revenues

   $ 746,044     $ 719,267     $ 692,812  
                         

Operating income:

                        

Operating income

   $ 193,796     $ 185,110     $ 205,018  

Interest income

     1,515       974       988  

Interest expense, net

     (80,384

)

     (70,924

)

     (54,142

)

Derivatives and foreign currency transaction gains (losses)

     624       (4,761

)

     2,654  

Income attributable to sale of tax benefits

     20,872       19,003       17,878  

Other non-operating income (expense), net

     880       7,779       (1,666

)

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

   $ 137,303     $ 137,181     $ 170,730  

 

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

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Revenues from external customers attributable to: (1)

                        

United States

   $ 377,956     $ 328,606     $ 301,132  

Indonesia

     —       4,379       28,968  

Kenya

     121,661       119,094       110,243  

Turkey

     88,938       168,699       125,166  

Chile

     25,540       980       8,895  

Guatemala

     28,624       27,975       27,991  

New Zealand

     31,222       10,451       33,395  

Honduras

     34,446       34,355       10,151  

Other foreign countries

     37,657       24,728       46,871  
                         

Consolidated total

   $ 746,044     $ 719,267     $ 692,812  

 

(1) Revenues as reported in the geographic area in which they originate.

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  
                         

Long-lived assets (primarily power plants and related assets) located in:

                        

United States

   $ 1,870,335     $ 1,696,439     $ 1,510,986  

Kenya

     284,526       301,956       340,970  

Other foreign countries

     224,676       222,872       281,333  

Consolidated total

   $ 2,379,537     $ 2,221,267     $ 2,133,289  

 

The following table presents revenues from major customers:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

Revenues

    

%

    

Revenues

    

%

    

Revenues

    

%

  
   

(Dollars in

thousands)

            

(Dollars in

thousands)

            

(Dollars in

thousands)

          

Southern California Public Power (1)

   $ 133,725       17.9     $ 109,208       15.2     $ 70,100       10.1  

Sierra Pacific Power Company and Nevada Power Company (1)(2)

     125,486       16.8       116,149       16.1       125,424       18.1  

KPLC (1)

     121,661       16.3       119,094       16.6       110,243       15.9  

 

(1)Revenues reported in Electricity segment.

(2)Subsidiaries of NV Energy, Inc.
v3.19.3.a.u2
Note 20 - Transactions With Related Entities
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

NOTE 20 — TRANSACTIONS WITH RELATED ENTITIES

 

There were no transactions between the Company and related entities, other than those disclosed elsewhere in these financial statements.
v3.19.3.a.u2
Note 21 - Employee Benefit Plan
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE 21 — EMPLOYEE BENEFIT PLAN

 

401(k) Plan

 

The Company has a 401(k) Plan (the “Plan”) for the benefit of its U.S. employees. Employees of the Company and its U.S. subsidiaries who have completed 60 days of employment are eligible to participate in the Plan. Contributions are made by employees through pre- and  post-tax deductions up to 60% of their annual salary. In 2019, 2018 and 2017,  the Company  matched employee contributions, after completion of one year of service, up to a maximum of 4%, 4% and 3% of the employee’s annual salary, respectively. The Company’s contributions to the Plan were $1.6 million, $1.6 million and $1.4 million for the years ended December 31, 2019, 2018 and 2017, respectively.

 

Severance plan

 

The Company, through Ormat Systems, provides limited non-pension benefits to all current employees in Israel who are entitled to benefits in the event of termination or retirement in accordance with the Israeli Government sponsored programs. These plans generally obligate the Company to pay one month’s salary per year of service to employees in the event of involuntary termination. There is no limit on the number of years of service in the calculation of the benefit obligation. The liabilities for these plans are recorded at each balance sheet date by determining the undiscounted obligation as if it were payable at that point in time. Such liabilities have been presented in the consolidated balance sheets as “liabilities for severance pay”. The Company has an obligation to partially fund the liabilities through regular deposits in pension funds and severance pay funds. The amounts funded amounted to $10.8 million and $10.6 million at December 31, 2019 and 2018, respectively, and have been presented in the consolidated balance sheets as part of “deposits and other”. The severance pay liability covered by the pension funds is not reflected in the financial statements as the severance pay risks have been irrevocably transferred to the pension funds. Under the Israeli severance pay law, restricted funds may not be withdrawn or pledged until the respective severance pay obligations have been met. As allowed under the program, earnings from the investment are used to offset severance pay costs. Severance pay expenses for the years ended December 31, 2019, 2018 and 2017 were $3.5 million, $3.0 million and $3.2 million, respectively, which are net of income (including loss) amounting to $1.0 million, $(1.1) million, and $1.8 million, respectively, generated from the regular deposits and amounts accrued in severance funds.

 

The Company expects to pay the following future benefits to its employees upon their reaching normal retirement age:

 

   

(Dollars in

thousands)

  

Year ending December 31:

        

2020

   $ 4,780  

2021

     1,434  

2022

     1,768  

2023

     89  

2024

     500  
2025-2043     11,232  

Total

   $ 19,803  

 

The above amounts were determined based on the employees’ current salary rates and the number of years’ service that will have been accumulated at their retirement date. These amounts do not include amounts that might be paid to employees that will cease working with the Company before reaching their normal retirement age.
v3.19.3.a.u2
Note 22 - Commitments and Contingencies
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

NOTE 22 — COMMITMENTS AND CONTINGENCIES

 

Geothermal resources

 

The Company, through its project subsidiaries in the United States, controls certain rights to geothermal fluids through certain leases with the BLM or through private leases. Royalties on the utilization of the geothermal resources are computed and paid to the lessors as defined in the respective agreements. Royalty expense under the geothermal resource agreements were $21.7 million, $21.6 million and $19.4 million for the years ended December 31, 2019, 2018 and 2017, respectively.

 

Letters of credit

 

In the ordinary course of business with customers, vendors, and lenders, the Company is contingently liable for performance under letters of credit totaling $213.8 million at December 31, 2019. Management does not expect any material losses to result from these letters of credit because performance is not expected to be required, and, therefore, is of the opinion that the fair value of these instruments is zero.

 

Purchase commitments

 

The Company purchases raw materials for inventories, construction-in-process and services from a variety of vendors. During the normal course of business, in order to manage manufacturing lead times and help assure adequate supply, the Company enters into agreements with contract manufacturers and suppliers that either allow them to procure goods and services based upon specifications defined by the Company, or that establish parameters defining the Company’s requirements.

 

At December 31, 2019, total obligations related to such supplier agreements were approximately $185.0 million (out of which approximately $59.5 million relate to construction-in-process). All such obligations are payable in 2019.

 

Grants and royalties

 

The Company, through Ormat Systems, had historically, through December 31, 2003, requested and received grants for research and development from the Office of the Chief Scientist of the Israeli Government. Ormat Systems is required to pay royalties to the Israeli Government at a rate of 3.5% to 5.0% of the revenues derived from products and services developed using these grants. No royalties were paid for the years ended December 31, 2019, 2018 and 2017. The Company is not liable for royalties if the Company does not sell such products and services. Such royalties are capped at the amount of the grants received plus interest at LIBOR. The cap at December 31, 2019 and 2018, amounted to $2.1 million and $2.0 million, respectively, of which approximately $1.1 million and $1.0 million, respectively, represents interest based on the LIBOR rate, as defined above.

 

Lease commitments

 

The Company's lease commitments are detailed under Note 23, Leases to the consolidated financial statements.

 

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 U.S. 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 U.S. 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. The Company believes that it has valid defenses under law and intends to defend itself vigorously.

 

  ●

On September 11, 2018, the Klein derivative action (“Klein Action”) was filed against the Company, its board and its CEO and CFO in the U.S. 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 U.S. 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, and staying all deadlines and hearings in the consolidated action pending entry of an order on the motion to dismiss in the Mac Costas putative class action. Pursuant to the court’s denial of the motion to dismiss in the Mac Costas putative class action, the parties have stipulated a delay in the scheduling and meet to enable out of court discussions of a possible resolution.

 

  ●

Following the announcement of the Company’s acquisition of 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. The Company believes that it has valid defenses under law and intends to defend itself vigorously.

 

  ●

On August 5, 2016, George Douvris, Stephanie Douvris, Michael Hale, Cheryl Cacocci, Hillary E. Wilt and Christina Bryan, acting for themselves and on behalf of all other similarly situated residents of the lower Puna District, filed a complaint in the Third Circuit Court for the State of Hawaii seeking certification of a class action for preliminary and permanent injunctive relief, consequential and punitive damages, attorney’s fees and statutory interest against PGV and other presently unknown defendants. HELCO and other parties were later joined as co-defendants. The Parties have reached an amicable settlement in an immaterial amount which, on April 4, 2019, was recorded by the Court, and the claim dismissed.

 

  ●

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.   The Civil Court has heard oral testimonies and the “factual” stage of the proceedings are completed. The Company believes that it has valid defenses under law and intends to defend itself vigorously.

 

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.
v3.19.3.a.u2
Note 23 - Leases
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Leases of Lessee and Lessor Disclosure [Text Block]

NOTE 23 — LEASES

 

The Company is a lessee in operating lease transactions primarily consisting of land leases for its exploration and development activities. Additionally, the Company was a lessee under an operating lease in relation to the Puna power plant transaction which was terminated in December 2019 as further described under Note 12 to the consolidated financial statements. The Company is a lessee in finance lease transactions primarily consisting of fleet vehicles and office rentals. The Company is a Lessor in PPAs that are accounted under lease accounting, as further described under Note 1 to the consolidated financial statements under Revenues and cost of revenues.

 

A.

 Leases in which the Company is a lessee

 

The table below presents the effects on the amounts relating to total lease cost:

 

   

Year Ended

December 31,

2019

  
   

(Dollars in thousands)

  

Lease cost

        

Finance lease cost:

        

Amortization of right-of-use assets

   $ 3,273  

Interest on lease liabilities

     1,330  

Operating lease cost

     8,057  
Variable lease cost     1,647  
Short-term lease cost     —  

Total lease cost

   $ 14,307  
         

Other information

        

Cash paid for amounts included in the measurement of lease liabilities:

        

Operating cash flows for finance leases

   $ 1,330  

Operating cash flows for operating leases

     9,004  

Financing cash flows for finance leases

     3,164  

Right-of-use assets obtained in exchange for new finance lease liabilities

     5,262  

Right-of-use assets obtained in exchange for new operating lease liabilities

     6,364  

 

   

December 31,

  
Additional information as of December 31, 2019:  

2019

  

Weighted-average remaining lease term — finance leases (in years)

     4.0  

Weighted-average remaining lease term — operating leases (in years)

     7.3  
Weighted-average discount rate (in percentage)     5 %

 

Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows:

 

   

Operating Leases

    

Finance Leases

  
   

(Dollars in thousands)

  

Year ending December 31,

                
2020   $ 2,742     $ 4,251  
2021     2,701       3,948  
2022     2,079       3,873  
2023     1,524       2,758  
2024     1,275       906  

Thereafter

     10,635       4,118  

Total future minimum lease payments

     20,956       19,854  

Less imputed interest

     4,205       5,577  

Total

   $ 16,751     $ 14,277  

 

Future minimum lease payments under non-cancellable leases as of December 31, 2018, under ASC 840, Leases were as follows:

 

   

(Dollars in thousands)

  

Year ending December 31,

        

2019

   $ 10,889  

2020

     7,515  

2021

     5,758  

2022

     4,415  

2023

     2,910  

Thereafter

     9,292  

Total

   $ 40,779  

 

B.

Leases in which the Company is a lessor

 

The table below presents the lease income recognized for lessors:

 

   

Year Ended

December 31,

2019

  
   

(Dollars in thousands)

  

Lease income relating to lease payments of operating leases

   $ 479,059  

Lease income relating to variable lease payments not included in the measurement of the lease

     —  

Total

   $ 479,059  

v3.19.3.a.u2
Note 24 - Quarterly Financial Information (Unaudited)
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Quarterly Financial Information [Text Block]

NOTE 24 — QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

 

   

Three Months Ended

  
   

Mar. 31,

2018

    

June 30,

2018

    

Sept. 30,

2018

    

Dec. 31,

2018

    

Mar. 31,

2019

    

June 30,

2019

    

Sept. 30,

2019

    

Dec. 31,

2019

  
   

(Dollars in thousands, except per share amounts)

  

Revenues:

                                                                

Electricity

   $ 132,489     $ 122,179     $ 116,891     $ 138,320     $ 142,908     $ 129,079     $ 123,978     $ 144,368  

Product

     48,672       54,915       48,439       49,717       52,128       52,030       43,037       43,814  

Energy storage and management services

     2,862       1,205       1,150       2,428       4,002       2,956       3,484       4,260  

Total revenues

     184,023       178,299       166,480       190,465       199,038       184,065       170,499       192,442  

Cost of revenues:

                                                                

Electricity

     73,482       81,236       79,845       63,692       77,543       73,775       80,124       81,393  

Product

     33,726       37,573       35,669       33,729       42,106       41,316       31,073       31,479  

Energy storage and management services

     3,443       2,028       2,174       2,235       5,210       3,827       3,807       5,068  

Total cost of revenues

     110,651       120,837       117,688       99,656       124,859       118,918       115,004       117,940  

Gross profit

     73,372       57,462       48,792       90,809       74,179       65,147       55,495       74,502  

Operating expenses:

                                                                

Research and development expenses

     1,108       1,251       706       1,118       900       810       1,062       1,875  

Selling and marketing expenses

     3,699       3,712       8,578       3,813       3,865       3,276       3,783       4,123  

General and administrative expenses

     13,849       15,866       13,606       4,429       15,689       14,181       11,931       14,032  

Impairment charge

     —       —       —       13,464       —       —       —       —  

Write-off of unsuccessful exploration activities

     123       —       —       3       —       —       —       —  

Operating income

     54,593       36,633       25,902       67,982       53,725       46,880       38,719       54,472  

Other income (expense):

                                                                

Interest income

     113       189       214       458       293       420       482       320  

Interest expense, net

     (14,344

)

     (15,846

)

     (18,700

)

     (22,034

)

     (21,223

)

     (21,517

)

     (20,076

)

     (17,568

)

Derivatives and foreign currency transaction gains (losses)

     (1,599

)

     (529

)

     (383

)

     (2,250

)

     472       19       205       (72

)

Income attributable to sale of tax benefits

     7,361       3,556       4,066       4,020       7,764       4,637       4,056       4,415  

Other non-operating income (expense), net

     (20

)

     7,373       309       117       91       1,027       244       (482

)

Income from operations before income tax and equity in earnings (losses) of investees

     46,104       31,376       11,408       48,293       41,122       31,466       23,630       41,085  

Income tax (provision)

     26,942       (29,105

)

     (1,184

)

     (31,386

)

     (14,039

)

     3,529       (9,626

)

     (25,477

)

Equity in earnings (losses) of investees, net

     1,210       388       (117

)

     6,182       1,047       1,202       1,085       (1,481

)

Net income

     74,256       2,659       10,107       23,089       28,130       36,197       15,089       14,127  

Net loss (income) attributable to noncontrolling interest

     (4,748

)

     (3,002

)

     474       (4,869

)

     (2,184

)

     (2,259

)

     516       (1,521

)

Net income (loss) attributable to the Company's stockholders

   $ 69,508     $ (343

)

   $ 10,581     $ 18,220     $ 25,946     $ 33,938     $ 15,605     $ 12,606  
                                                                 

Earnings (loss) per share attributable to the Company's stockholders

                                                                

Basic:

                                                                

Net income

   $ 1.37     $ (0.01

)

   $ 0.21     $ 0.36     $ 0.51     $ 0.67     $ 0.31     $ 0.25  
                                                                 

Diluted:

                                                                

Net income

   $ 1.36     $ (0.01

)

   $ 0.21     $ 0.36     $ 0.51     $ 0.66     $ 0.30     $ 0.24  
                                                                 

Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:

                                                                

Basic

     50,614       50,623       50,645       50,691       50,709       50,800       50,933       51,017  

Diluted

     51,051       50,958       50,963       50,936       51,012       51,094       51,334       51,511  
v3.19.3.a.u2
Note 25 - Subsequent Events
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Subsequent Events [Text Block]

NOTE 25 — SUBSEQUENT EVENTS

 

Cash dividend

 

On February 25, 2020, the Company’s Board of Directors 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 March 12, 2020, payable on March 26, 2020.

 

Energy storage assets portfolio purchase transaction

 

On February 28, 2020, the Company entered into definitive agreements (the “Purchase Agreements”) to acquire a portfolio of energy storage assets in California from a third party (the “Seller”). The acquisition includes one operating energy storage asset and one advanced development energy storage project, both partly contracted with South California Edison. The transaction is contingent upon specific conditions related to the projects and the transaction as well as other customary closing conditions. Under the terms of the Purchase Agreements, the Company will pay up to approximately $65 million in total consideration of which $51 million will be paid at closing, which is expected during the second quarter of 2020, and the rest will be paid upon the Seller meeting certain conditions as well as an earn out. The Company is currently evaluating the accounting impact of this transaction on its 2020 consolidated financial statements.
v3.19.3.a.u2
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Description Of Business [Policy Text Block]

Business

 

The Company is primarily engaged in the geothermal and recovered energy business, including the supply of equipment that is manufactured by the Company and the design and construction of power plants for projects owned by the Company or for third parties. The Company owns and operates geothermal and recovered energy-based power plants in various countries, including the United States, Kenya, Guatemala, Guadeloupe and Honduras. The Company’s equipment manufacturing operations are located in Israel. Additionally, 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.

 

Most of the Company’s domestic power plant facilities are Qualifying Facilities under the PURPA. The Power Purchase Agreements ("PPAs") for certain of such facilities are dependent upon their maintaining Qualifying Facility status. Management believes that all of the facilities located in the United States were in compliance with Qualifying Facility status requirements as of December 31, 2019.
Dividend Declared [Policy Text Block]

Cash dividends

 

During the years ended December 31, 2019, 2018 and 2017, the Company’s Board of Directors (the “Board”) declared, approved, and authorized the payment of cash dividends in the aggregate amount of $22.4 million ($0.44 per share), $26.8 million ($0.53 per share), and $20.5 million ($0.44 per share), respectively. Such dividends were paid in the years declared.
Rounding [Policy Text Block]

Rounding

 

Dollar amounts, except per share data, in the notes to these financial statements are rounded to the closest $1,000, unless otherwise indicated.
Basis of Accounting, Policy [Policy Text Block]

Basis of presentation

 

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and of all majority-owned subsidiaries in which the Company exercises control over operating and financial policies, and variable interest entities in which the Company has an interest and is the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation.

 

Investments in less-than-majority-owned entities or other entities in which the Company exercises significant influence over operating and financial policies are accounted for using the equity method of accounting or consolidated if they are a variable interest entity in which the Company has an interest and is the primary beneficiary. Under the equity method, original investments are recorded at cost and adjusted by the Company’s share of undistributed earnings or losses of such companies. The Company’s earnings or losses in investments accounted for under the equity method have been reflected as “equity in earnings (losses) of investees, net” on the Company’s consolidated statements of operations and comprehensive income (loss).
Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equivalents

 

The Company considers all highly liquid instruments, with an original maturity of three months or less, to be cash equivalents.
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted cash, cash equivalents, and marketable securities

 

Under the terms of certain long-term debt agreements, the Company is required to maintain certain debt service reserves, cash collateral and operating fund accounts that have been classified as restricted cash and cash equivalents. Funds that will be used to satisfy obligations due during the next 12 months are classified as current restricted cash and cash equivalents, with the remainder classified as non-current restricted cash and cash equivalents. Such amounts were invested primarily in money market accounts and commercial paper with a minimum investment grade of “A”.
Reconciliation of Cash and Cash Equivalents and Restricted Cash [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 reported on the balance sheet that sum to the total of the same amounts shown on the statement of cash flows:

 

 

   

December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Cash and cash equivalents

   $ 71,173     $ 98,802     $ 47,818  

Restricted cash and cash equivalents

     81,937       78,693       48,825  

Total cash and cash equivalents and restricted cash and cash equivalents

   $ 153,110     $ 177,495     $ 96,643  

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

Concentration of credit risk

 

Financial instruments which potentially subject the Company to 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 U.S. and in foreign countries. At December 31, 2019 and 2018, the Company had deposits totaling $12.9 million and $31.3 million, respectively, in ten United States financial institutions that were federally insured up to $250,000 per account. At December 31, 2019 and 2018, the Company’s deposits in foreign countries of approximately $84.8 million and $93.9 million, respectively, were not insured.

 

At December 31, 2019 and 2018, accounts receivable related to operations in foreign countries amounted to approximately $118.8 million and $102.0 million, respectively. At December 31, 2019 and 2018, accounts receivable from the Company’s major customers (see Note 19) amounted to approximately 58% and 56%, respectively, of the Company’s accounts receivable.

 

The Company has historically been able to collect substantially all of its receivable balances. As of December 31, 2019, the amount overdue from KPLC in Kenya was $40.7 million of which $24.2 million was paid in January and February of 2020. These amounts represent an average of 70 days overdue, an increase of 10 days from September 30, 2019. In Honduras, the Company has been able to collect its current charges from Empresa Nacional de Energía Eléctrica (“ENEE”) starting in May 2019, however, as of December 31, 2019, the amount overdue relating to the period from October 2018 to April 2019 was $20.1 million, none of which has been paid to date. Due to obligations of the Honduran government to support the Company, the Company believes it will be able to collect all past due amounts.

 

Additionally, Pacific Gas and Electric Corporation (“PG&E Corporation”) and its subsidiary Pacific Gas and Electric Company (“PG&E”), which accounted for 1.5%, 1.9% and 2.0% of the Company's total revenues for the years ended December 31, 2019, 2018 and 2017, respectively, are facing extraordinary challenges relating to a series of catastrophic wildfires that occurred in Northern California in 2017 and 2018. As a result, on January 29, 2019, PG&E Corporation and its subsidiary, PG&E, voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company is closely monitoring its PG&E balance to ensure cash receipts are received on a timely basis each month. As of December 31, 2019, the outstanding balance relates to the current December 2019 invoices which were paid in January 2020.
Inventory, Policy [Policy Text Block]

Inventories

 

Inventories consist primarily of raw material parts and sub-assemblies for power units and are stated at the lower of cost or net realizable value, using the weighted-average cost method. Inventories are reduced by a provision for slow-moving and obsolete inventories. This provision was not material at December 31, 2019 and 2018.
Deposit Contracts, Policy [Policy Text Block]

Deposits and other

 

Deposits and other consist primarily of performance bonds for construction projects, long-term insurance contract and receivables, certain deferred costs and derivative instruments.
Property, Plant and Equipment, Impairment [Policy Text Block]

Property, plant and equipment, net

 

Property, plant and equipment are stated at cost. All costs associated with the acquisition, development and construction of power plants operated by the Company are capitalized. Major improvements are capitalized and repairs and maintenance (including major maintenance) costs are expensed. Power plants operated by the Company, which include geothermal wells and exploration and resource development costs, are depreciated using the straight-line method over their estimated useful lives, which range from 15 to 30 years. The other assets are depreciated using the straight-line method over the following estimated useful lives of the assets:

 

Buildings (in years)

  

 

 25  

Leasehold improvements (in years)

  

15

 - 20

Machinery and equipment — manufacturing and drilling (in years)

  

 

 10  

Machinery and equipment — computers (in years)

  

3

 - 5

Office equipment — furniture and fixtures (in years)

  

5

 - 15

Office equipment — other (in years)

  

5

 - 10

Vehicles (in years)

  

5

 - 7

 

The cost and accumulated depreciation of items sold or retired are removed from the accounts. Any resulting gain or loss is recognized currently and recorded in the accompanying statements of operations.

 

The Company capitalizes interest costs as part of constructing power plant facilities. Such capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Capitalized interest costs amounted to $3.3 million, $3.7 million, and $7.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.
Exploratory Drilling Costs Capitalization and Impairment, Policy [Policy Text Block]

Exploration and development costs

 

The Company capitalizes costs incurred in connection with the exploration and development of geothermal resources once it acquires land rights to the potential geothermal resource. Prior to acquiring land rights, the Company makes an initial assessment that an economically feasible geothermal reservoir is probable on that land. The Company determines the economic feasibility of potential geothermal resources internally, with all available data and external assessments vetted through the exploration department and occasionally using outside service providers. Costs associated with the initial assessment are expensed and included in cost of electricity revenues in the consolidated statements of operations and comprehensive income (loss). Such costs were immaterial during the years ended December 31, 2019, 2018 and 2017. It normally takes two to three years from the time active exploration of a particular geothermal resource begins to the time a production well is in operation, assuming the resource is commercially viable. However, in certain sites the process may take longer due to permitting delays, transmission constraints or any other commercial milestones that are required to be reached in order to pursue the development process.

 

In most cases, the Company obtains the right to conduct the geothermal development and operations on land owned by the Bureau of Land Management ("BLM"), various states or with private parties. The up-front bonus payments and other related costs, such as legal fees, are capitalized and included in construction-in-process. The annual land lease payments made during the exploration, development and construction phase are expensed as incurred and included in “electricity cost of revenues” in the consolidated statements of operations and comprehensive income (loss). Upon commencement of power generation on the leased land, the Company begins to pay the lessor’s long-term royalty payments based on the utilization of the geothermal resources as defined in the respective agreements. Such payments are expensed when the related revenues are earned and included in “electricity cost of revenues” in the consolidated statements of operations and comprehensive income (loss).

 

Following the acquisition of land rights to the potential geothermal resource, the Company conducts further studies and surveys, including water and soil analyses, among others, and augments its database with the results of these studies. The Company then initiates a suite of geophysical surveys to assess the resource and determine drilling locations. If the results of these activities support the initial assessment of the feasibility of the geothermal resource, the Company then proceeds to exploratory drilling and other related activities which may include drilling of temperature gradient holes, drilling of slim holes, building access roads to drilling locations, drilling full size production and/or injection wells and flow tests. If the slim hole supports a conclusion that the geothermal resource will support a commercially viable power plant, it may be converted to a full-size commercial well, used either for extraction or re-injection of geothermal fluids, or be used as an observation well to monitor and define the geothermal resource. Costs associated with these activities and other directly attributable costs, including interest once physical exploration activities begin and permitting costs are capitalized and included in “construction-in-process”. If the Company concludes that a geothermal resource will not support commercial operations, capitalized costs are expensed in the period such determination is made.

 

When deciding whether to continue holding lease rights and/or to pursue exploration activity, the Company diligently prioritizes prospective investments, taking into account resource and probability assessments in order to make informed decisions about whether a particular project will support commercial operation. As a result, write-off of unsuccessful activities for the years ended December 31, 2019, 2018 and 2017 was $0.0 million, $0.1 million, and $1.8 million, respectively. In 2017, the write-offs included exploration costs related to the Company’s exploration activities in Oregon, after which the Company determined that the applicable sites would no longer support commercial operation.

 

Grants received from the U.S. DOE are offset against the related exploration and development costs. There were no such grants for the years ended December 31, 2019, 2018 and 2017.

 

All exploration and development costs that are being capitalized, including the up-front bonus payments made to secure land leases, will be depreciated over their estimated useful lives when the related geothermal power plant is substantially complete and ready for use. A geothermal power plant is substantially complete and ready for use when electricity generation commences.
Asset Retirement Obligation [Policy Text Block]

Asset retirement obligation

 

The Company records the fair value of a legal liability for an asset retirement obligation in the period in which it is incurred. The Company’s legal liabilities include plugging wells and post-closure costs of power producing sites. When a new liability for asset retirement obligations is recorded, the Company capitalizes the costs of the liability by increasing the carrying amount of the related long-lived asset. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. The Company periodically reassess the assumptions used to estimate the expected cash flows required to settle the asset retirement obligation, including changes in estimated probabilities, amounts, and timing of the settlement of the asset retirement obligation, as well as changes in the legal requirements of an obligation and revises the previously recorded asset retirement obligation accordingly. At retirement, the obligation is settled for its recorded amount at a gain or loss.
Deferred Financing And Lease Transaction Costs [Policy Text Block]

Deferred financing costs

 

Deferred financing costs are presented as a direct deduction from the carrying value of the associated debt liability or under deferred financing if associated with lines of credit. Such deferred costs are amortized over the term of the related obligation using the effective interest method or ratably, as applicable. Amortization of deferred financing costs is presented as interest expense in the consolidated statements of operations and comprehensive income (loss). Accumulated amortization related to deferred financing costs amounted to $19.5 million and $21.8 million at December 31, 2019 and 2018, respectively. Amortization expense for the years ended December 31, 2019, 2018 and 2017 amounted to $5.4 million, $4.6 million, and $5.7 million, respectively. During the years ended December 31, 2019, 2018 and 2017, amounts of $0.0 million, $0.0 million and $0.6 million, respectively, were written-off as a result of extinguishment of liabilities.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

 

Goodwill represents the excess of the fair value of consideration transferred in the business combination transactions of Guadeloupe and USG over the fair value of tangible and intangible assets acquired, net of the fair value of liabilities assumed and the fair value of any noncontrolling interest in the acquisitions. Goodwill is not amortized but rather subject to a periodic impairment testing on an annual basis (on December 31 of each year) or if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Additionally, an entity is permitted to first assess qualitative factors to determine whether a quantitative goodwill impairment test is necessary. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Otherwise, no further impairment testing is required. An entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to step one of the quantitative goodwill impairment test. This would not preclude the entity from performing the qualitative assessment in any subsequent period. The first step compares the fair value of the reporting unit to its carrying value, including goodwill. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350), which was adopted by the Company in 2018, under which step two of the goodwill impairment test was eliminated. Step two measured a goodwill impairment test by comparing the implied fair value of reporting unit’s goodwill with the carrying amount of that goodwill. Under ASU 2017-04, Intangibles – Goodwill and Other, an entity should recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value as calculated under step one described above. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. For further information relating to goodwill see Note 9 - Intangible assets and goodwill to the consolidated financial statements.
Intangible Assets, Finite-Lived, Policy [Policy Text Block]

Intangible assets

 

Intangible assets consist of allocated acquisition costs of PPAs, which are amortized using the straight-line method over the 13 to 29-year terms of the agreements (see Note 9) as well as acquisition cost allocation related to Viridity’s storage activities that are amortized over a weighted average amortization period of 19 years. Intangible assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In case there is no such events or change in circumstances, there is no need to perform the impairment testing. The recoverability is tested by comparing the net carrying value of the intangible assets to the undiscounted net cash flows to be generated from the use and eventual disposition of these assets. If the carrying amount of a long-lived asset (or asset group) is not recoverable, the fair value of the asset (asset group) is measured and if the carrying amount exceeds the fair value, an impairment loss is recognized.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of long-lived assets and long-lived assets to be disposed of

 

The Company evaluates long-lived assets, such as property, plant and equipment and construction-in-process for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Factors which could trigger an impairment include, among others, significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of assets or its overall business strategy, negative industry or economic trends, a determination that an exploration project will not support commercial operations, a determination that a suspended project is not likely to be completed, a significant increase in costs necessary to complete a project, legal factors relating to its business or when it concludes that it is more likely than not that an asset will be disposed of or sold.

 

The Company tests its operating plants that are operated together as a complex for impairment at the complex level because the cash flows of such plants result from significant shared operating activities. For example, the operating power plants in a complex are managed under a combined operation management generally with one central control room that controls all of the power plants in a complex and one maintenance group that services all of the power plants in a complex. As a result, the cash flows from individual plants within a complex are not largely independent of the cash flows of other plants within the complex. The Company tests for impairment its operating plants which are not operated as a complex as well as its projects under exploration, development or construction that are not part of an existing complex at the plant or project level. To the extent an operating plant becomes part of a complex, the Company will test for impairment at the complex level.

 

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated future net undiscounted cash flows expected to be generated by the asset. The significant assumptions that the Company uses in estimating its undiscounted future cash flows include: (i) projected generating capacity of the complex or power plant and rates to be received under the respective PPAs and expected market rates thereafter and (ii) projected operating expenses of the relevant complex or power plant. Estimates of future cash flows used to test recoverability of a long-lived asset under development also include cash flows associated with all future expenditures necessary to develop the asset.

 

If the assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Management believes that no impairment exists for long-lived assets; however, estimates as to the recoverability of such assets may change based on revised circumstances. If actual cash flows differ significantly from the Company’s current estimates, a material impairment charge may be required in the future.
Derivatives, Policy [Policy Text Block]

Derivative instruments

 

Derivative instruments (including certain derivative instruments embedded in other contracts) are measured at their fair value and recorded as either assets or liabilities unless exempted from derivative treatment as a normal purchase and sale. All changes in the fair value of derivatives are recognized in earnings unless specific hedge criteria are met, which requires a company to formally document, designate and assess the effectiveness of transactions that receive hedge accounting.

 

The Company maintains a risk management strategy that may incorporate the use of swap contracts and put options on oil and natural gas prices, forward exchange contracts, interest rate swaps, and interest rate caps to minimize significant fluctuation in cash flows and/or earnings that are caused by oil and natural gas prices, exchange rate or interest rate volatility. Gains or losses on contracts that initially qualify for cash flow hedge accounting, net of related taxes, are included as a component of other comprehensive income or loss and accumulated other comprehensive income or loss are subsequently reclassified into earnings when the hedged forecasted transaction affects earnings. Gains or losses on contracts that are not designated as a cash flow hedge are included currently in earnings.
Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign currency translation

 

The U.S. dollar is the functional currency for all of the Company’s consolidated operations and those of its equity affiliates except for the Guadeloupe power plant and the Company's operations in New Zealand. For those entities, all gains and losses from currency translations are included within the line item “Derivatives and foreign currency transaction gains (losses)” within the consolidated statements of operations and comprehensive income (loss). The Euro and New Zealand Dollar are the functional currencies of the Guadeloupe power plant and the Company's operations in New Zealand, respectively, and thus gains and losses from currency translation adjustments in those locations are included as currency translation adjustments in accumulated other comprehensive income in the consolidated statements of equity and in comprehensive income. The accumulated currency translation adjustments amounted to $1.5 million and $0.0 million as of December 31, 2019 and 2018, respectively.
Comprehensive Income, Policy [Policy Text Block]

Comprehensive income (loss) reporting

 

Comprehensive income (loss) includes net income or loss plus other comprehensive income (loss), which for the Company consists of changes in unrealized gains or losses in respect of the Company’s share in derivatives instruments of an unconsolidated investment, foreign currency translation adjustments and changes in respect of derivative instruments designated as a cash flow hedge. The changes in foreign currency translation adjustments and gains or losses in respect of derivative instruments designated as a cash flow hedge during the years ended December 31, 2019, 2018 and 2017 were immaterial. The change in the Company’s share in derivative instruments of unconsolidated investment is disclosed under Note 5 – Investment in unconsolidated companies to the consolidated financial statements.

 
Revenue [Policy Text Block]

Revenues and cost of revenues

 

Upon adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) on January 1, 2018, revenues from contracts with customers are recognized in connection with the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the Company is required to apply each of the following steps: (1) identify the contract(s) with the customer; (2) identify the performance obligations in the contracts; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

 

Revenues are primarily related to: (i) sale of electricity from geothermal and recovered energy-based power plants owned and operated by the Company; (ii) geothermal and recovered energy-based power plant equipment engineering, sale, construction and installation, and operating services and (iii) 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.

 

Electricity segment revenues: Revenues related to the sale of electricity from geothermal and recovered energy-based power plants and capacity payments are recorded based upon output delivered and capacity provided at rates specified under relevant contract terms. For PPAs agreed to, modified, or acquired in business combinations on or after July 1, 2003, the Company determines whether such PPAs contain a lease element requiring lease accounting. Revenue from such PPAs are accounted for in electricity revenues. The lease element of the PPAs is also assessed in accordance with the revenue arrangements with multiple deliverables guidance, which requires that revenues be allocated to the separate earnings processes based on their relative fair value. PPAs with minimum lease rentals which vary over time are generally recognized on the straight-line basis over the term of the PPAs. PPAs with contingent rentals are recognized when earned. In the Electricity segment, revenues for all but five power plants are accounted as operating leases, and therefore equipment related to geothermal and recovered energy generation power plants as described in Note 8 is considered held for leasing. For power plants in the scope of ASC 606, the Company identified electricity as a separate performance obligation. Performance obligations identified were evaluated and determined to be satisfied over time and qualified for the invoicing practical expedient since the invoiced amounts reasonably represented the value to customers of performance obligations fulfilled to date. The transaction price is determined based on the price per actual mega-watt output or available capacity as agreed to in the respective PPA. Customers are generally billed on a monthly basis and payment is typically due within 30 to 60 days after the issuance of the invoice.

 

Product segment revenues: Revenues from engineering, operating services, and parts and product sales are recorded upon providing the service or delivery of the products and parts and when collectability is reasonably assured. Revenues from the supply and/or construction of geothermal and recovered energy-based power plant equipment and other equipment to third parties are recognized over time since control is transferred continuously to the Company's customers. The majority of the Company's contracts include a single performance obligation which is essentially the promise to transfer the individual goods or services that are not separately identifiable from other promises in the contracts and therefore deemed as not distinct. Performance obligations are satisfied over-time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being constructed, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment. In the Company's Product segment, revenues are spread over a period of one to two years and are recognized over time based on the cost incurred to date in ratio to total estimated costs which represents the input method that best depicts the transfer of control over the performance obligation to the customer. Costs include direct material, labor, and indirect costs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined.

 

In contracts for which the Company determines that control is not transferred continuously to the customer, the Company recognizes revenues at the point in time when the customer obtains control of the asset. Revenues for such contracts are recorded upon delivery and acceptance by the customer. This generally is the case for the sale of spare parts, generators or similar products.

 

Accounting for product contracts that are satisfied over time includes use of several estimates such as variable consideration related to bonuses and penalties and total estimated cost for completing the contract. The estimated amount of variable consideration will be included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are based on historical experience, anticipated performance and the Company's best judgment at the time.

 

The nature of the Company's product contracts give rise to several modifications or change requests by its customers. Substantially all of the modifications are treated as cumulative catch-ups to revenues since the additional goods are not distinct from those already provided. The Company includes the additional revenues related to the modifications in its transaction price when both parties to the contract approved the modification. As a significant change in one or more of these estimates could affect the profitability of the Company's contracts, the Company reviews and updates its contract-related estimates regularly. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the period in which it is identified.

 

Energy Storage and Management Services segment revenues: Battery energy storage systems as a service, demand-response and energy management related services revenues are recorded based on energy management of load curtailment capacity delivered or service provided at rates specified under the relevant contract terms. The Company determined that such revenues are in the scope of ASC 606 and identified energy management services as a separate performance obligation. Performance obligations are satisfied once the Company provides verification to the electric power grid operator or utility of its ability to meet the committed capacity, the power curtailment requirements or the ancillary services and thus entitled to cash proceeds. Such verification may be provided by the Company bi-weekly, monthly or under any other frequency as set by the related program and are typically followed by a payment shortly after. Performance obligations identified were evaluated and determined to be satisfied over time and qualified for the invoicing practical expedient since the amounts included in the verification document reasonably represent the value of performance obligations fulfilled to date. The transaction price is determined based on mechanisms specified in the contract with the customer.

 

The Company's accounting policy for revenues included under the 2017 comparative period were accounted under the previous accounting standard as follows:

 

Revenues related to the sale of electricity from geothermal and recovered energy-based power plants and capacity payments are recorded based upon output delivered and capacity provided at rates specified under relevant contract terms. For PPAs agreed to, modified, or acquired in business combinations on or after July 1, 2003, the Company determines whether such PPAs contain a lease element requiring lease accounting. Revenue from such PPAs are accounted for in electricity revenues. The lease element of the PPAs is also assessed in accordance with the revenue arrangements with multiple deliverables guidance, which requires that revenues be allocated to the separate earnings processes based on their relative fair value. PPAs with minimum lease rentals which vary over time are generally recognized on the straight-line basis over the term of the PPAs. PPAs with contingent rentals are recognized when earned. In the electricity segment, revenues for all but five power plants are accounted as operating leases, and therefore equipment related to geothermal and recovered energy generation power plants as described in Note 8 is considered held for leasing.

 

Revenues from engineering, operating services, and parts and product sales are recorded upon providing the service or delivery of the products and parts and when collectability is reasonably assured. Revenues from the supply and/or construction of geothermal and recovered energy-based power plant equipment and other equipment to third parties are recognized using the percentage-of-completion method. Revenue is recognized based on the percentage relationship that incurred costs bear to total estimated costs. Costs include direct material, labor, and indirect costs. Selling, marketing, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and revenues and are recognized in the period in which the revisions are determined.

 

In specific instances where there is a lack of dependable estimates or inherent risks that may cause the forecast to be doubtful, then the completed-contract method is followed. Revenue is recognized when the contract is substantially complete and when collectability is reasonably assured. Costs that are closely associated with the project are deferred as contract costs and recognized similarly to the associated revenues.

 

Contract assets related to the Company's Product segment reflect revenues 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 December 31, 2019 and 2018 are as follows.

 

   

December 31,

    

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Contract assets (*)

   $ 38,365     $ 42,130  

Contract liabilities (*)

     (2,755

)

     (18,402

)

Contract assets, net

   $ 35,610     $ 23,728  

 

(*) 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 years ended December 31, 2019 and 2018 as a result of performance obligations satisfied.

 

The following table presents the significant changes in the contract assets and contract liabilities for the years ended December 31, 2019 and 2018:

 

    Years Ended December 31,  
   

2019

    

2018

  
   

Contract

assets

    

Contract

liabilities

    

Contract

assets

    

Contract

liabilities

  
   

(Dollars in thousands)

  

Recognition of contract liabilities as revenue as a result of performance obligations satisfied

   $ —     $ 12,675     $ —     $ 33,349  

Cash received in advance for which revenues have not yet recognized, net of expenditures made

     —       (3,323

)

     —       (38,162

)

Reduction of contract assets as a result of rights to consideration becoming unconditional

     (130,918

)

     —       (128,659

)

     —  

Contract assets recognized, net of recognized receivables

     133,448       —       136,496       —  

Net change in contract assets and contract liabilities

   $ 2,530     $ 9,352     $ 7,837     $ (4,813

)

 

The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets and contract liabilities on the consolidated balance sheet. In the Company's Products segment, amounts are billed as work progresses in accordance with agreed-upon contractual terms, or upon achievement of contractual milestones. Generally, billing occurs subsequent to the recognition of revenue, resulting in contract assets. However, the Company sometimes receives advances or deposits from its customers before revenue can be recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. The timing of billing its customers and receiving advance payments vary from contract to contract.  The majority of payments are received no later than the completion of the project and satisfaction of the Company's performance obligation.

 

On December 31, 2019, the Company had approximately $139.3 million of remaining performance obligations not yet satisfied or partly satisfied related to its Product segment. The Company expects to recognize approximately 100% of this amount as Product revenues during the next 24 months.

 

The following schedule reconciles revenues accounted under lease accounting, and ASC 606, Revenues from Contracts with Customers, to total consolidated revenues for the years ended December 31, 2019 and 2018:

 

   

Year Ended December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Electricity Revenues accounted under lease accounting

   $ 479,059     $ 481,619  

Electricity, Product and Energy Storage and Management Services revenues accounted under ASC 606

     266,985       237,648  

Total consolidated revenues

   $ 746,044     $ 719,267  

 

Disaggregated revenues from contracts with customers for the years ended December 31, 2019 and 2018 are disclosed under Note 19 - Business Segments, to the consolidated financial statements.
Termination fee [Policy Text Block]

Termination fee

 

Fees to terminate PPAs are recognized in the period incurred as selling and marketing expenses. During 2018, the Company signed a termination agreement with NV Energy, Inc. for the Galena 2 PPA under which it agreed to pay a termination fee of approximately $5 million which was recorded under Selling and marketing expenses in 2018. In 2019 and 2017, no termination fees were incurred.
Standard Product Warranty, Policy [Policy Text Block]

Warranty on products sold

 

The Company generally provides a one to two years warranty against defects in workmanship and materials related to the sale of products for electricity generation. The Company considers the warranty to be an assurance type warranty since the warranty provides the customer the assurance that the product complies with agreed-upon specifications. Estimated future warranty obligations are included in operating expenses in the period in which the related revenue is recognized. Such charges are immaterial for the years ended December 31, 2019, 2018 and 2017.
Research and Development Expense, Policy [Policy Text Block]

Research and development

 

Research and development costs incurred by the Company for the development of existing and new geothermal and recovered energy power plants as well as storage related technologies are expensed as incurred. Grants received from the DOE are offset against the related research and development expenses. There were no such grants for the years ended December 31, 2019, 2018 and 2017.
Share-based Payment Arrangement [Policy Text Block]

Stock-based compensation

 

The Company accounts for stock-based compensation using the fair value method whereby compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period of the grant). The Company uses the Exercise Multiple-Based Lattice SAR-Pricing Model to value the stock-based compensation awards to reflect accumulated historic data retained of behavioral parameters.
Tax Monetization Transactions Policy [Policy Text Block]

Tax monetization Transactions

 

The Company has three tax monetization transactions, Opal Geo, Tungsten and McGinness Hills 3 as further described under Note 13 – tax monetization transactions to the consolidated financial statements. The OPC and ORTP tax monetization transactions terminated during 2017 upon the Company’s partners reaching their target after-tax yield on their investment, as further described in Note 13. The purpose of these transactions is to form tax partnerships, whereby investors provide cash in exchange for equity interests that provide the holder a right to the majority of tax benefits associated with a renewable energy project.  The Company accounts for a portion of the proceeds from the transaction as debt under ASC 470.  Given that a portion of these transactions is structured as a purchase of an equity interest the Company also classifies a portion as noncontrolling interest consistent with guidance in ASC 810. The portion recorded to noncontrolling interest is initially measured as the fair value of the discounted tax attributes and cash distributions which represents the partner's residual economic interest. The residual proceeds are recognized as the initial carrying value of the debt which is classified as a liability associated with sale tax benefits. The Company applies the effective interest rate method to the liability associated with the tax monetization transaction component as described by ASC 835 and CON 7.  The tax benefits and cash distributions realized by the partner each period are treated as the debt servicing amounts, with the tax benefit amounts giving rise to income attributable to the sale of tax benefits.  The deferred transaction costs have been capitalized and amortized using the effective interest method.
Income Tax, Policy [Policy Text Block]

Income taxes 

 

Income taxes are accounted for using the asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The measurement of current and deferred tax assets and liabilities are based on provisions of the enacted tax law. The Company accounts for investment tax credits and production tax credits as a reduction to income taxes in the year in which the credit arises. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are  more likely than not expected to be realized. A partial valuation allowance has been established to offset the Company’s U.S. deferred tax assets. Tax benefits from uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Interest and penalties assessed by taxing authorities on an underpayment of income taxes are included as a component of income tax provision in the consolidated statements of operations and comprehensive income.
Earnings Per Share, Policy [Policy Text Block]

Earnings per share

 

Basic earnings per share attributable to the Company’s stockholders (“earnings per share”) 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 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:

 

   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(In thousands)

  

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

     50,867       50,643       50,110  

Add:

                        

Additional shares from the assumed exercise of employee stock options

     360       326       659  
                         

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

     51,227       50,969       50,769  

 

The number of stock-based awards that could potentially dilute future earnings per share and were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive was 360.5 thousand, 176.4 thousand, and 42.9 thousand, respectively, for the years ended December 31, 2019, 2018 and 2017.
Use of Estimates, Policy [Policy Text Block]

Use of estimates in preparation of financial statements

 

The preparation of financial statements in conformity with U.S. GAAP  requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of such financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The most significant estimates with regard to the Company’s consolidated financial statements relate to the useful lives of property, plant and equipment, impairment of goodwill and long-lived assets, including intangible assets, revenue recognition of product sales using the percentage of completion method, asset retirement obligations, and the provision for income taxes.
Redeemable Noncontrolling Interest, Policy [Policy Text Block]

Redeemable noncontrolling interest

 

Changes in the carrying amount of the Company's Redeemable noncontrolling interest were as follows:

 

   

2019

    

2018

  
   

(Dollars in thousands)

  

Redeemable noncontrolling interest as of January 1,

   $ 8,603     $ 6,416  

Redeemable noncontrolling interest in results of operation of a consolidated subsidiary

     1,132       990  

Cash paid to noncontrolling interest

     (252

)

     —  

Increase in share of redeemable noncontrolling interest

     —       1,528  

Currency translation adjustments

     (233

)

     (331

)

Redeemable noncontrolling interest as of December 31,

   $ 9,250     $ 8,603  

 
Puna Power Plant, Policy [Policy Text Block]

Puna Power Plant

 

On May 3, 2018, the Kilauea volcano located in close proximity to the Company's Puna 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 2019, the Company received an additional $1.1 million of such proceeds. However, only some of the insurers accepted that the business interruption coverage started in May 2018 and during 2019, the Company received and recorded an additional $9.3 million of such proceeds, which were included under cost of revenues in the consolidated statements of operations and comprehensive income for the year ended December 31, 2019. The Company has filed a lawsuit against the insurers that do not accept its claim.

 

As of February 2020, the reconstruction efforts at Puna continue. Permits that are required for the construction and operation of the substation are delayed and currently expected during the first half of 2020. HELCO continue with their efforts to complete the upgrade of the transmission network. On the field side, the Company completed the drilling of one production well that was blocked immediately after flow test of the well. The Company continues its field recovery work, which includes redrilling of existing wells, cleanouts and drilling of new wells and expects initial power generation for testing during the second quarter of 2020. Commercial operation of the full generating capacity of the Puna power plant is expected in the third quarter of 2020 assuming all permits are received, transmission network upgrade is complete and field recovery is successfully achieved.

 

The Company continues to assess the accounting implications of this event on the assets and liabilities on its balance sheet 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. 
New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements

 

New accounting pronouncements effective in the year ended December 31, 2019

 

Leases

 

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This new standard introduced a number of changes and simplified previous guidance, primarily the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. The new standard retained the distinction between finance leases and operating leases and the classification criteria between the two types remains substantially similar. Also, lessor accounting remained largely unchanged from previous guidance. However, key aspects of the new standard were aligned with the revenue recognition guidance in Topic 606. Additionally, the new standard defined a lease as a contract, or part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of the identified asset means that the customer has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. The Company adopted this new standard as of January 1, 2019 using the modified retrospective approach and accordingly recognized a cumulative-effect adjustment to the opening balance of retained earnings, which was an immaterial amount, with no restatement of comparative information.

 

The Company is a lessee in operating lease transactions primarily consisting of land leases for its exploration and development activities as further described under Exploration and development costs above and the Puna power plant transaction as further described under Note 12 to the consolidated financial statements. Additionally, the Company is a lessee in finance lease transactions primarily consisting of fleet vehicles and office rentals. As further described above under Revenues and cost of revenues, the Company acts as a lessor in PPAs that are accounted under ASC 842, Leases.

 

In accordance with the new standard, for agreements in which the Company is the lessee, the Company applies a unified accounting model by which it recognizes a right-of-use asset ("ROU") and a lease liability at the commencement date of the lease contract for all the leases in which the Company has a right to control identified assets for a specified period of time. The classification of the lease as a finance lease or an operating lease determines the subsequent accounting for the lease arrangement.

 

Upon the adoption of the new standard the Company, both as a lessee and as a lessor, chose to apply the following permitted practical expedients:

 

 

1.

Not reassess whether any existing contracts are or contain a lease;

 

 

2.

Not reassess the classification of leases that commenced before the effective date (for example, all existing leases that were classified as operating leases in accordance with Topic 840 will continue to be classified as operating leases, and all existing leases that were classified as capital leases in accordance with Topic 840 will continue to be classified as finance leases);

 

 

3.

Exclude initial direct costs from measurement of the ROU asset at the date of initial application;

 

 

4.

Applying the practical expedient (for a lessor) to not separate non-lease components accounted for under Topic 606 from lease components and, instead, to account for each separate lease component and the non-lease components associated with that lease component as a single component. If the non-lease components are the predominant components, the Company will account for the combined component as a single performance obligation entirely in accordance with Topic 606. Otherwise, the combined component will be accounted as an operating lease entirely in accordance with the new standard.

 

 

5.

Applying the practical expedient (for a lessee) regarding the recognition and measurement of short-term leases, for leases for a period of up to 12 months from the commencement date. Instead, the Company will continue to recognize the lease payments for those leases in profit or loss on a straight-line basis over the lease term.

 

Since the Company elected to apply the practical expedients above, it applied the new standard to all contracts entered into before January 1, 2019 and identified as leases in accordance with Topic 840.

 

The new significant accounting policies regarding leases that were applied as from January 1, 2019 following the application of the new standard are as follows:

 

 

1.

 Determining whether an arrangement contains a lease

 

On the inception date of the lease, the Company determines whether the arrangement is a lease or contains a lease, while examining if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

 

 

2.

 The Company as a lessee

 

 

a.

 Lease classification:

 

At the commencement date, a lease is a finance lease if it meets any one of the criteria below; otherwise the lease is an operating lease:

 

 

•

The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.
 

•

The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.
 

•

The lease term is for the major part of the remaining economic life of the underlying asset.
 

•

The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset.
 

•

The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term.

 

 

b.

 Leased assets and lease liabilities - initial recognition

 

Upon initial recognition, the Company recognizes a liability at the present value of the lease payments to be made over the lease term, and concurrently recognizes a ROU asset at the same amount of the liability, adjusted for any prepaid or accrued lease payments, plus initial direct costs incurred in respect of the lease. Since the interest rate implicit in the lease is not readily determinable, the incremental borrowing rate of the Company is used. The subsequent measurement depends of whether the lease is classified as a finance lease or an operating lease.

 

 

c.

 The lease term

 

The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination option if it is reasonably certain that the Company will exercise the option.

 

 

d.

Subsequent measurement of operating leases

 

After lease commencement, the Company measures the lease liability at the present value of the remaining lease payments using the discount rate determined at lease commencement (as long as the discount rate has not been updated as a result of a reassessment event).

 

The Company subsequently measures the ROU asset at the present value of the remaining lease payments, adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term and any unamortized initial direct costs.

 

Further, the Company will recognize lease expense on a straight-line basis over the lease term.

 

 

e.

Subsequent measurement of finance leases

 

After lease commencement, the Company measures the lease liability by increasing the carrying amount to reflect interest on the lease liability and reducing the carrying amount to reflect the lease payments made during the period. The Company shall determine the interest on the lease liability in each period during the lease term as the amount that produces a constant periodic discount rate on the remaining balance of the liability, taking into consideration the reassessment requirements.

 

After lease commencement, the Company measures the ROU assets at cost less any accumulated amortization and any accumulated impairment losses, taking into consideration the reassessment requirements. The Company amortizes the ROU asset on a straight-line basis, unless another systematic basis better represents the pattern in which the Company expects to consume the ROU asset’s future economic benefits. The ROU asset is amortized over the shorter of the lease term or the useful life of the ROU asset as follows:

 

   

(in years)

  

Land

     1 - 35  

Vehicles

       5    

Building

       15    

 

The total periodic expense (the sum of interest and amortization expense) of a finance lease is typically higher in the early periods and lower in the later periods.

 

 

f.

Variable lease payments:

 

Variable lease payments that depend on an index or a rate

 

On the commencement date, the lease payments shall include variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate at the commencement date.

 

The Company does not remeasure the lease liability for changes in future lease payments arising from changes in an index or rate unless the lease liability is remeasured for another reason. Therefore, after initial recognition, such variable lease payments are recognized in profit or loss as they are incurred.

 

Other variable lease payments:

 

Variable payments that depends on performance or use of the underlying asset are not included in the lease payments. Such variable payments are recognized in profit or loss in the period in which the event or condition that triggers the payment occurs.

 

 

3.

 The Company as a lessor

 

At lease commencement, the Company as a lessor classifies leases as either finance or operating leases. Finance leases are further classified as a sales-type lease or as a direct financing lease.

 

Under an operating lease, the Company recognizes the lease payment as income over the lease term, generally on a straight-line basis or as earned.

 

 

4.

Impact of the new standard

 

 

a)

The effects of the initial application of the new standard on the Company's consolidated balance sheet as of January 1, 2019 are as follows:

 

   

According to

the previous

accounting

policy

    

The change

    

As presented

according to

Topic 842

  
   

(Dollars in thousands)

  

As of January 1, 2019:

                        
                         

Prepaid expenses and other

   $ 51,441     $ (35,385

)

   $ 16,056  

Deferred financing and lease costs, net

     3,242       (1,659

)

     1,583  

Property, plant and equipment, net

     1,959,578       (12,855

)

     1,946,723  

Operating leases right of use

     —       62,244       62,244  

Finance leases right of use

     —       13,476       13,476  
                         

Accounts payable and accrued expenses

     116,362       (2,860

)

     113,502  

Current maturity of operating lease liabilities

     —       7,532       7,532  

Current maturity of finance lease liabilities

     —       2,841       2,841  
                         

Other long-term liabilities

     16,087       (9,970

)

     6,117  

Long term portion of operating lease liabilities

     —       17,668       17,668  

Long term portion of finance lease liabilities

     —       10,668       10,668  
                         

Retained earnings

     422,222       (58

)

     422,164  

 

The operating leases right of use is higher than the related lease liabilities as a result of prepayments of leases, including the Puna lease and deferred financing lease costs.

 

 

b)

 A weighted-average nominal incremental interest rate of 5% and 7% was used to discount future lease payments in the calculation of the lease liabilities in respect of operating leases and in respect of finance leases, respectively.

 

Derivatives and Hedging

 

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

 

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

 

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The guidance is effective for the fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

 

New accounting pronouncements effective in future periods

 

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 is effective beginning 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 analyzed the impact of its financial instruments that are within the scope of this guidance, primarily receivables and costs and estimated earnings in excess of billings on uncompleted contracts, and believes that the cumulative adjustment to retained earnings will have an immaterial effect on its consolidated financial statements.

 

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 permitted. The Company has not early adopted ASU 2019-12 as of December 31, 2019.  The Company does not anticipate ASU 2019-12 will have a material impact on its consolidated financial statements.
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Cash and Cash Equivalents [Table Text Block]
   

December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Cash and cash equivalents

   $ 71,173     $ 98,802     $ 47,818  

Restricted cash and cash equivalents

     81,937       78,693       48,825  

Total cash and cash equivalents and restricted cash and cash equivalents

   $ 153,110     $ 177,495     $ 96,643  
Schedule Of Estimated Useful Lives [Table Text Block]

Buildings (in years)

  

 

 25  

Leasehold improvements (in years)

  

15

 - 20

Machinery and equipment — manufacturing and drilling (in years)

  

 

 10  

Machinery and equipment — computers (in years)

  

3

 - 5

Office equipment — furniture and fixtures (in years)

  

5

 - 15

Office equipment — other (in years)

  

5

 - 10

Vehicles (in years)

  

5

 - 7
Contract with Customer, Asset and Liability [Table Text Block]
   

December 31,

    

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Contract assets (*)

   $ 38,365     $ 42,130  

Contract liabilities (*)

     (2,755

)

     (18,402

)

Contract assets, net

   $ 35,610     $ 23,728  
    Years Ended December 31,  
   

2019

    

2018

  
   

Contract

assets

    

Contract

liabilities

    

Contract

assets

    

Contract

liabilities

  
   

(Dollars in thousands)

  

Recognition of contract liabilities as revenue as a result of performance obligations satisfied

   $ —     $ 12,675     $ —     $ 33,349  

Cash received in advance for which revenues have not yet recognized, net of expenditures made

     —       (3,323

)

     —       (38,162

)

Reduction of contract assets as a result of rights to consideration becoming unconditional

     (130,918

)

     —       (128,659

)

     —  

Contract assets recognized, net of recognized receivables

     133,448       —       136,496       —  

Net change in contract assets and contract liabilities

   $ 2,530     $ 9,352     $ 7,837     $ (4,813

)
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Electricity Revenues accounted under lease accounting

   $ 479,059     $ 481,619  

Electricity, Product and Energy Storage and Management Services revenues accounted under ASC 606

     266,985       237,648  

Total consolidated revenues

   $ 746,044     $ 719,267  
   

According to

the previous

accounting

policy

    

The change

    

As presented

according to

Topic 842

  
   

(Dollars in thousands)

  

As of January 1, 2019:

                        
                         

Prepaid expenses and other

   $ 51,441     $ (35,385

)

   $ 16,056  

Deferred financing and lease costs, net

     3,242       (1,659

)

     1,583  

Property, plant and equipment, net

     1,959,578       (12,855

)

     1,946,723  

Operating leases right of use

     —       62,244       62,244  

Finance leases right of use

     —       13,476       13,476  
                         

Accounts payable and accrued expenses

     116,362       (2,860

)

     113,502  

Current maturity of operating lease liabilities

     —       7,532       7,532  

Current maturity of finance lease liabilities

     —       2,841       2,841  
                         

Other long-term liabilities

     16,087       (9,970

)

     6,117  

Long term portion of operating lease liabilities

     —       17,668       17,668  

Long term portion of finance lease liabilities

     —       10,668       10,668  
                         

Retained earnings

     422,222       (58

)

     422,164  
Schedule of Weighted Average Number of Shares [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(In thousands)

  

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

     50,867       50,643       50,110  

Add:

                        

Additional shares from the assumed exercise of employee stock options

     360       326       659  
                         

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

     51,227       50,969       50,769  
Redeemable Noncontrolling Interest [Table Text Block]
   

2019

    

2018

  
   

(Dollars in thousands)

  

Redeemable noncontrolling interest as of January 1,

   $ 8,603     $ 6,416  

Redeemable noncontrolling interest in results of operation of a consolidated subsidiary

     1,132       990  

Cash paid to noncontrolling interest

     (252

)

     —  

Increase in share of redeemable noncontrolling interest

     —       1,528  

Currency translation adjustments

     (233

)

     (331

)

Redeemable noncontrolling interest as of December 31,

   $ 9,250     $ 8,603  
ROA Asset [Member]  
Notes Tables  
Schedule Of Estimated Useful Lives [Table Text Block]
   

(in years)

  

Land

     1 - 35  

Vehicles

       5    

Building

       15    
v3.19.3.a.u2
Note 2 - Business Acquisitions and Others (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Cash and cash equivalents and restricted cash

   $ 37.9  

Property, plant and equipment and construction-in-process

     77.3  

Intangible assets (1)

     127.0  

Goodwill (2)

     12.7  

Deferred taxes

     1.7  

Total assets acquired

   $ 256.6  
         

Other working capital

   $ (8.2 )

Long-term term debt

     (98.3 )

Asset retirement obligation

     (9.0 )

Noncontrolling interest

     (34.9 )

Total liabilities assumed

   $ (150.4 )
         

Total assets acquired, and liabilities assumed, net

   $ 106.2  
Business Acquisition, Pro Forma Information [Table Text Block]
   

Pro forma for the

    

Pro forma for the

  
   

year ended

December 31, 2018

    

year ended

December 31, 2017

  
   

(Dollars in thousands)

  

Electricity revenues

   $ 521,175     $ 497,650  

Total revenues

     730,563       724,869  

Income from continuing operations before income taxes and equity in losses of investees

     134,142       169,546  
v3.19.3.a.u2
Note 3 - Inventories (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Inventory, Current [Table Text Block]
   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Raw materials and purchased parts for assembly

   $ 21,942     $ 26,914  

Self-manufactured assembly parts and finished products

     13,007       18,110  

Total

   $ 34,949     $ 45,024  
v3.19.3.a.u2
Note 4 - Cost and Estimated Earnings on Uncompleted Contracts (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Cost And Estimated Earnings On Uncompleted Contracts [Table Text Block]
   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Costs and estimated earnings incurred on uncompleted contracts

   $ 196,550     $ 278,797  

Less billings to date

     (160,940

)

     (255,069

)

Total

   $ 35,610     $ 23,728  
Cost and Estimated Earnings on Uncompleted Contracts Included in Consolidated Balance Sheets [Table Text Block]
   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Costs and estimated earnings in excess of billings on uncompleted contracts

   $ 38,365     $ 42,130  

Billings in excess of costs and estimated earnings on uncompleted contracts

     (2,755

)

     (18,402

)

Total

   $ 35,610     $ 23,728  
v3.19.3.a.u2
Note 5 - Investment in an Unconsolidated Company (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Equity Method Investments [Table Text Block]
   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Sarulla

   $ 70,589     $ 71,983  

Ijen

     10,551       —  
Total investment in unconsolidated companies   $ 81,140     $ 71,983  
Other Comprehensive Income (Loss) from Equity Method Investments[Table Text Block]
   

Year Ended

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Change, net of deferred tax, in unrealized gains (losses) in respect of the Company’s share in derivative instruments of unconsolidated investment

   $ (3,417

)

   $ 2,235  
v3.19.3.a.u2
Note 6 - Variable Interest Entities (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Variable Interest Entities [Table Text Block]
   

December 31, 2019

  
   

Project Debt

    

PPAs

  
   

(Dollars in thousands)

  

Assets:

                

Restricted cash and cash equivalents

   $ 81,522     $ 20  

Other current assets

     164,386       29,076  

Property, plant and equipment, net

     1,211,656       668,891  

Construction-in-process

     10,188       139,642  

Other long-term assets

     162,995       40,138  

Total assets

   $ 1,630,747     $ 877,767  
                 

Liabilities:

                

Accounts payable and accrued expenses

     25,361       13,201  

Long-term debt

     794,214       —  

Other long-term liabilities

     126,851       32,790  

Total liabilities

     946,426       45,991  
   

December 31, 2018

  
   

Project Debt

    

PPAs

  
   

(Dollars in thousands)

  

Assets:

                

Restricted cash and cash equivalents

   $ 76,019       2,304  

Other current assets

     213,007       9,698  

Property, plant and equipment, net

     1,552,408       306,820  

Construction-in-process

     90,812       13,273  

Other long-term assets

     177,723       9,104  

Total assets

   $ 2,109,969       341,199  
                 

Liabilities:

                

Accounts payable and accrued expenses

   $ 24,245       2,651  

Long-term debt

     805,850       —  

Other long-term liabilities

     125,769       12,483  

Total liabilities

   $ 955,864       15,134  
v3.19.3.a.u2
Note 7 - Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Fair Value, by Balance Sheet Grouping [Table Text Block]
           

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 receivable (1)

     102       102       —       —       102  

Currency forward contracts (2)

     362       362       —       362       —  

Liabilities:

                                        

Current liabilities:

                                        

Derivatives:

                                        

Contingent payables (1)

     (3,359

)

     (3,359

)

     —       —       (3,359

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

)
           

December 31, 2018

  
           

Fair Value

  
   

Carrying Value at December 31, 2018

    

Total

    

Level 1

    

Level 2

    

Level 3

  
   

(Dollars in thousands)

  

Assets

                                        

Current assets:

                                        

Cash equivalents (including restricted cash accounts)

   $ 18,787     $ 18,787     $ 18,787     $ —     $ —  

Derivatives:

                                        

Contingent receivable (1)

     104       104       —       —       104  

Liabilities:

                                        

Current liabilities:

                                        

Derivatives:

                                        

Contingent payables (1)

     (3,424

)

     (3,424

)

     —       —       (3,424

)

Currency forward contracts (2)

     (1,040

)

     (1,040

)

     —       (1,040

)

     —  
    $ 14,427     $ 14,427     $ 18,787     $ (1,040

)

   $ (3,320

)
Derivative Instruments, Gain (Loss) [Table Text Block]

Derivatives not designated as

hedging instruments

  

Location of recognized gain (loss)

  

Amount of recognized gain (loss)

  
       

2019

    

2018

    

2017

  
       

(Dollars in thousands)

  
                             

Put options on natural gas price

  

Derivative and foreign currency transaction gains (losses)

   $ —     $ —     $ (350

)

Contingent considerations

  

Derivative and foreign currency transaction gains (losses)

     —       170       (129

)

Contingent considerations

  

General and administrative expenses

     —       10,322       2,048  

Currency forward contracts

  

Derivative and foreign currency transaction gains (losses)

     2,556       (3,081

)

     3,699  
        $ 2,556     $ 7,411     $ 5,268  
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]
   

Fair Value

    

Carrying Amount

  
   

2019

    

2018

    

2019

    

2018

  
   

(Dollars in millions)

    

(Dollars in millions)

  

Olkaria III Loan - OPIC

   $ 202.1     $ 211.8     $ 192.6     $ 210.6  

Olkaria III plant 4 Loan - DEG 2

     43.8       47.2       42.5       47.5  

Olkaria III plant 1 Loan - DEG 3

     38.8       —       37.1       —  

Platanares Loan - OPIC

     115.3       119.1       104.5       112.7  

Amatitlan Loan

     26.4       29.9       26.3       29.8  

Senior Secured Notes:

                                

OrCal Geothermal Inc. ("OrCal")

     —       19.0       —       18.7  

OFC 2 LLC ("OFC 2")

     210.9       214.5       203.0       217.8  

Don A. Campbell 1 ("DAC 1")

     78.5       78.8       78.2       83.3  

USG Prudential - NV

     30.6       29.4       28.4       27.8  

USG Prudential - ID

     18.6       18.6       19.6       18.9  

USG DOE

     45.0       48.3       40.8       51.4  

Senior Unsecured Bonds

     205.7       199.4       204.3       204.3  

Senior Unsecured Loan

     161.3       102.2       150.0       100.0  

Plumstriker

     21.7       —       21.6       —  

Other long-term debt

     16.3       5.4       17.4       6.2  
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

   $ —     $ —     $ 202.1     $ 202.1  

Olkaria III plant 4 - DEG 2

     —       —       43.8       43.8  

Olkaria III plant 1 - 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  
   

Level 1

    

Level 2

    

Level 3

    

Total

  
   

(Dollars in millions)

  

Olkaria III Loan - OPIC

   $ —     $ —     $ 211.8     $ 211.8  

Olkaria III plant 4 - DEG 2

     —       —       47.2       47.2  

Platanares Loan - OPIC

     —       —       119.1       119.1  

Amatitlan Loan

     —       29.9       —       29.9  

Senior Secured Notes:

                                

OrCal Senior Secured Notes

     —       —       19.0       19.0  

OFC 2 Senior Secured Notes

     —       —       214.5       214.5  

DAC 1 Senior Secured Notes

     —       —       78.8       78.8  

USG Prudential - NV

     —       —       29.4       29.4  

USG Prudential - ID

     —       —       18.6       18.6  

USG DOE

     —       —       48.3       48.3  

Senior Unsecured Bonds

     —       —       199.4       199.4  

Senior Unsecured Loan

     —       —       102.2       102.2  

Other long-term debt

     —       —       5.4       5.4  

Revolving lines of credit

     —       159.0       —       159.0  

Deposits

     12.0       —       —       12.0  
v3.19.3.a.u2
Note 8 - Property, Plant and Equipment and Construction-in-process (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Property, Plant and Equipment [Table Text Block]
   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Land owned by the Company where the geothermal resource is located

   $ 38,049     $ 38,060  

Leasehold improvements

     7,757       5,718  

Machinery and equipment

     230,465       208,646  

Land, buildings and office equipment

     39,099       35,708  

Vehicles

     8,021       22,074  

Geothermal and recovered energy generation power plants, including geothermal wells and exploration and resource development costs:

                

United States of America, net of cash grants

     2,160,910       2,065,377  

Foreign countries

     721,824       710,775  

Asset retirement cost

     19,824       11,448  
      3,225,949       3,097,806  

Less accumulated depreciation

     (1,254,534

)

     (1,138,228

)
                 

Property, plant and equipment, net

   $ 1,971,415     $ 1,959,578  
Construction In Progress [Table Text Block]
   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Projects under exploration and development:

                

Up-front bonus costs

   $ 17,018     $ 17,018  

Exploration and development costs

     66,916       53,237  

Interest capitalized

     703       703  
      84,637       70,958  

Projects under construction:

                

Up-front bonus costs

     27,473       27,473  

Drilling and construction costs

     258,484       160,398  

Interest capitalized

     5,961       2,861  
      291,918       190,732  

Total

   $ 376,555     $ 261,690  
Rollforward Of Construction In Process [Table Text Block]
   

Projects under exploration and development

  
   

Up-front Bonus

Costs

    

Exploration and

Development Costs

    

Interest

Capitalized

    

Total

  
   

(Dollars in thousands)

  

Balance at December 31, 2016

   $ 17,385     $ 36,359     $ 703     $ 54,447  

Cost incurred during the year

     —       11,224       —       11,224  

Write off of unsuccessful exploration costs

     (367

)

     (1,429

)

     —       (1,796

)

Balance at December 31, 2017

     17,018       46,154       703       63,875  

Cost incurred during the year

     —       7,209       —       7,209  

Write off of unsuccessful exploration costs

     —       (126

)

     —       (126

)

Balance at December 31, 2018

     17,018       53,237       703       70,958  

Cost incurred during the year

     —       17,215       —       17,215  

Transfer of projects under exploration and development to projects under construction

     —       (3,536

)

     —       (3,536

)

Balance at December 31, 2019

   $ 17,018     $ 66,916     $ 703     $ 84,637  
   

Projects under construction

  
   

Up-front Bonus
Costs

    

Drilling and

Construction

Costs

    

Interest

Capitalized

    

Total

  
   

(Dollars in thousands)

  

Balance at December 31, 2016

   $ 37,713     $ 202,211     $ 12,338     $ 252,262  

Cost incurred during the year

     —       231,926       7,300       239,226  

Transfer of completed projects to property, plant and equipment

     (10,240

)

     (235,194

)

     (16,387

)

     (261,821

)

Balance at December 31, 2017

     27,473       198,943       3,251       229,667  

Cost incurred during the year

     —       219,610       —       219,610  

Cost write off

     —       (1,380

)

     —       (1,380

)

Fair value of projects under construction acquired in a business combination

     —       4,668       —       4,668  

Transfer of completed projects to property, plant and equipment

     —       (261,443

)

     (390

)

     (261,833

)

Balance at December 31, 2018

     27,473       160,398       2,861       190,732  

Cost incurred during the year

     —       264,137       3,100       267,237  

Transfer of projects under exploration and development to projects under construction

     —       3,536       —       3,536  

Insurance recoveries

     —       (35,435

)

     —       (35,435

)

Transfer of completed projects to property, plant and equipment

     —       (134,152

)

     —       (134,152

)

Balance at December 31, 2019

   $ 27,473     $ 258,484     $ 5,961     $ 291,918  
v3.19.3.a.u2
Note 9 - Intangible Assets and Goodwill (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]
   

(Dollars in thousands)

  

Year ending December 31:

        

2020

   $ 12,983  

2021

     12,983  

2022

     12,729  

2023

     12,610  

2024

     11,255  

Thereafter

     123,660  

Total

   $ 186,220  
Schedule of Goodwill [Table Text Block]
   

2019

    

2018

  
   

(Dollars in thousands)

  

Goodwill as of January 1,

   $ 19,950     $ 21,037  

Goodwill acquired

     —       12,710  

Goodwill impairment charge

     —       (13,464

)

Translation differences

     190       (333

)

Goodwill as of December 31,

   $ 20,140     $ 19,950  
v3.19.3.a.u2
Note 10 - Accounts Payable and Accrued Expenses (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]
   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Trade payable

   $ 73,271     $ 56,299  

Salaries and other payroll costs

     24,364       20,188  

Customer advances

     2,092       918  

Accrued interest

     6,321       5,914  

Income tax payable

     11,344       8,436  

Property tax payable

     3,033       2,999  

Scheduling and transmission

     2,264       595  

Royalty accrual

     6,457       4,610  

Deferred revenues

     —       2,300  

Warranty accrual

     3,245       4,552  

Other

     9,466       9,551  

Total

   $ 141,857     $ 116,362  
v3.19.3.a.u2
Note 11 - Long-term Debt, Credit Agreements and Commercial Paper (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Long-term Debt Instruments [Table Text Block]
   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Limited and non-recourse agreements:

                

Loans:

                

Non-recourse:

                

Other loans

   $ 8,997     $ 6,241  

Limited recourse:

                

Loan agreement with OPIC (the Olkaria III power plant)

     192,646       210,641  

Loan agreement with OPIC (the Platanares power plant)

     104,459       112,652  

Loan agreement with Banco Industrial S.A. and Westrust Bank (International) Limited

     26,250       29,750  

Loan agreement with a global industrial company (the Plumstriker battery energy storage projects)

     21,615       —  

Other loans

     8,367       —  

Senior Secured Notes:

                

Non-recourse:

                

OrCal Senior Secured Notes

     —       18,652  

DAC 1 Senior Secured Notes

     78,247       83,319  

Limited recourse:

                

OFC 2 Senior Secured Notes

     203,040       217,810  

Other loans

     88,840       96,482  

Total limited and non-recourse agreements

     732,461       775,547  

Less current portion

     (58,932

)

     (63,180

)

Non current portion

   $ 673,529     $ 712,367  

Full recourse agreements:

                

Senior Unsecured Bonds

     204,332       204,332  

Senior Unsecured Loan (Migdal)

     150,000       100,000  

Loan agreements with DEG (the Olkaria III and power plants 4 and 1 upgrade)

     79,632       47,500  

Revolving credit lines with banks

     40,550       159,000  

Total full recourse agreements

     474,514       510,832  

Less current portion

     (117,122

)

     (164,000

)

Non current portion

   $ 357,392     $ 346,832  
Schedule of Maturities of Long-term Debt [Table Text Block]
   

(Dollars in

thousands)

  
         

Year ending December 31:

        

2020

   $ 135,504  

2021

     76,259  

2022

     220,677  

2023

     98,982  

2024

     78,600  

Thereafter

     557,890  

Total

   $ 1,167,912  
v3.19.3.a.u2
Note 14 - Asset Retirement Obligation (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Asset Retirement Obligations [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  

Balance at beginning of year

   $ 39,475     $ 27,110  

Revision in estimated cash flows

     (335

)

     (258

)

Liabilities incurred and acquired

     8,334       10,149  

Accretion expense

     2,709       2,474  

Balance at end of year

   $ 50,183     $ 39,475  
v3.19.3.a.u2
Note 15 - Stock-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Cost of revenues

   $ 3,633     $ 3,488     $ 3,369  

Selling and marketing expenses

     4,810       792       452  

General and administrative expenses

     916       5,938       4,939  

Total stock-based compensation expense

     9,359       10,218       8,760  

Tax effect on stock-based compensation expense

     736       668       604  

Net effect of stock-based compensation expense

   $ 8,623     $ 9,550     $ 8,156  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  

For stock based awards issued by the Company:

                        

Risk-free interest rates

     1.8

%

     2.8

%

     1.9

%

Expected lives (in weighted average years)

     3.5       3.5       3.1  

Dividend yield

     0.7

%

     0.9

%

     0.62

%

Expected volatility (weighted average)

     25.1

%

     25.5

%

     27.2

%
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
                         

Weighted average forfeiture rate

     8.6

%

     3.1

%

     —

%
Schedule of Share-based Payment Award, Equity Awards Other than Options, Valuation Assumptions [Table Text Block]

Risk-free interest rate

     1.79

%

Expected life (in years)

     3.5  

Dividend yield

     0.57

%

Expected volatility

     24.80

%

Forfeiture rate for directors

     0.0

%

Sub-Optimal Exercise Factor for directors

     2.8  
Share-based Payment Arrangement, Option and Stock Appreciation Rights, Activity [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

Awards

(In thousands)

    

Weighted

Average

Exercise

Price

    

Awards

(In thousands)

    

Weighted

Average

Exercise

Price

    

Awards

(In thousands)

    

Weighted

Average

Exercise

Price

  

Outstanding at beginning of year

     2,527     $ 46.77       1,548     $ 41.35       2,565     $ 33.36  

Granted, at fair value:

                                                

Stock Options

     —       —       —       —       30       57.97  

SARs*

     38       69.13       1,172       53.87       132       62.55  

RSUs**

     9       —       74       —       23       —  

Exercised

     (711

)

     37.83       (203

)

     29.75       (1,181

)

     25.92  

Forfeited

     (71

)

     50.59       (64

)

     45.73       (21

)

     46.15  

Expired

     —       —       —       —       —       —  

Outstanding at end of year

     1,792       50.39       2,527       46.77       1,548       41.35  

Options and SARs exercisable at end of year

     479       48.35       846       42.06       431       32.61  

Weighted-average fair value of options and SARs granted during the year

           $ 29.24             $ 16.45             $ 22.82  
Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block]
       

Awards Outstanding

    

Awards Exercisable

  

Exercise Price

    

Number of

Stock-based

Awards

Outstanding

    

Weighted

Average

Remaining

Contractual

Life in Years

    

Aggregate

Intrinsic Value

    

Number of

Stock-based

Awards

Exercisable

    

Weighted

Average

Remaining

Contractual

Life in Years

    

Aggregate

Intrinsic Value

  
                                                     
$ —       59       1.5     $ 4,369       —       —     $ —  
  42.87       427       2.5       13,517       230       2.5       7,295  
  47.46       15       3.9       406       15       3.9       406  
  51.71       8       5.0       182       —       —       —  
  53.16       35       4.9       756       15       4.9       329  
  53.44       783       4.5       16,498       —       —       —  
  55.16       296       3.9       5,724       131       3.9       2,527  
  57.97       30       4.6       497       30       4.6       497  
  58.79       12       2.5       187       6       2.5       94  
  63.35       98       3.9       1,094       52       3.9       581  
  71.71       4       5.6       11       —       —       —  
  72.14       15       5.7       36       —       —       —  
  76.43       10       5.9       —       —       —       —  
                                                     
          1,792       3.8     $ 43,277       479       3.2     $ 11,729  
       

Awards Outstanding

    

Awards Exercisable

  

Exercise Price

    

Number of

Stock-based

Awards

Outstanding

    

Weighted

Average

Remaining

Contractual

Life in Years

    

Aggregate

Intrinsic Value

    

Number of

Stock-based

Awards

Exercisable

    

Weighted

Average

Remaining

Contractual

Life in Years

    

Aggregate

Intrinsic Value

  
                                                     
$ —       75       1.8     $ 3,933       —       —     $ —  
  20.13       29       0.3       924       29       0.3       924  
  23.34       99       0.4       2,897       99       0.4       2,897  
  35.15       15       4.1       257       15       4.1       257  
  38.24       15       3.8       211       15       3.8       211  
  42.87       942       3.5       8,879       521       3.5       4,918  
  47.46       38       4.9       182       38       4.9       182  
  53.16       35       5.9       —       —       —       —  
  53.44       828       5.5       —       —       —       —  
  55.16       296       4.9       —       66       4.9       —  
  57.97       30       5.6       —       30       5.6       —  
  58.79       16       3.5       —       —       —       —  
  63.35       109       4.9       —       33       4.9       —  
                                                     
          2,527       4.3     $ 17,283       846       3.3     $ 9,389  
v3.19.3.a.u2
Note 17 - Interest Expense, Net (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Other Nonoperating Expense, by Component [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Interest related to sale of tax benefits

   $ 11,786     $ 11,284     $ 6,985  

Interest expense

     71,883       63,368       54,381  

Less — amount capitalized

     (3,285

)

     (3,728

)

     (7,224

)
    $ 80,384     $ 70,924     $ 54,142  
v3.19.3.a.u2
Note 18 - Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

U.S

   $ 14,187     $ 14,097     $ 13,680  

Non-U.S. (foreign)

     123,116       123,084       157,050  

Total income from continuing operations, before income taxes and equity in losses

   $ 137,303     $ 137,181     $ 170,730  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Current:

                        

Federal

   $ —     $ 0     $ 43,935  

State

     172       381       43  

Foreign

     16,969       14,992       11,186  

Total current income tax expense

   $ 17,141     $ 15,373     $ 55,164  
                         

Deferred:

                        

Federal

     (12,179

)

     (6,886

)

     (55,718

)

State

     4,671       (2,595

)

     (3,284

)

Foreign

     35,980       28,841       25,502  

Total deferred tax provision (benefit)

     28,472       19,360       (33,500

)

Total Income tax provision

   $ 45,613     $ 34,733     $ 21,664  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  

U.S. federal statutory tax rate

     21.0

%

     21.0

%

     35.0

%

Impact of federal tax reform

     0.0       2.6       (12.4

)

Transition tax inclusion

     —       (5.7

)

     42.1  

Foreign tax credits

     (22.8

)

     (4.2

)

     (50.5

)

Withholding tax

     10.4       5.9       34.1  

Valuation allowance - U.S

     (3.7

)

     (17.2

)

     (22.6

)

State income tax, net of federal benefit

     3.7       1.0       1.1  

Uncertain tax positions

     2.1       2.1       —  

Effect of foreign income tax, net

     9.7       5.6       (10.7

)

Production tax credits

     (5.0

)

     (3.1

)

     (1.2

)

Subpart F income

     0.5       0.5       1.7  

Tax on global intangible low-tax income

     16.9       18.6       —  

Intra-entity transfers of assets other than inventory

     0.3

 

     (2.1

)

     —  

Other, net

     0.1       0.3       (3.9

)

Effective tax rate

     33.2

%

     25.3

%

     12.7

%
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
   

December 31,

  
   

2019

    

2018

  
   

(Dollars in thousands)

  
                 

Deferred tax assets (liabilities):

                

Net foreign deferred taxes, primarily depreciation

   $ (88,508

)

   $ (57,202

)

Depreciation

     (21,958

)

     (30,500

)

Intangible drilling costs

     (1,405

)

     7,370  

Net operating loss carryforward - U.S.

     45,307       65,020  

Tax monetization transaction

     (30,964

)

     (17,104

)
Right-of-use assets     (3,715 )     —  
Lease liabilities     3,755       —  

State and Investment tax credits

     813       813  

Production tax credits

     100,524       90,913  

Foreign tax credits

     92,497       58,072  

Withholding tax

     (15,539

)

     (8,052

)

Stock options amortization

     1,409       1,440  

Basis difference in partnership interest

     (39,622

)

     (36,516

)

Excess business interest

     6,189       —  

Accrued liabilities and other

     1,013       624  
      49,796       74,878  

Less - valuation allowance

     (17,412

)

     (22,441

)

Total

   $ 32,384     $ 52,437  
Summary of Valuation Allowance [Table Text Block]
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  
                         

Balance at beginning of the year

   $ 22,441     $ 77,571     $ 116,234  

Additions to valuation allowance

     15,437       4,747       46,560  

Release of valuation allowance

     (20,466

)

     (59,877

)

     (85,223

)

Balance at end of the year

   $ 17,412

 

   $ 22,441     $ 77,571  
Schedule of Deferred Taxes Classified in Balance Sheet [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  
                         

Non-current deferred tax assets

   $ 129,510     $ 113,760     $ 57,337  

Non-current deferred tax liabilities

     (97,126

)

     (61,323

)

     (61,961

)

Non-current deferred tax assets, net

     32,384       52,437       (4,624

)

Uncertain tax benefit offset (1)

     (95

)

     (95

)

     (95

)
    $ 32,289     $ 52,342     $ (4,719

)
Summary of Income Tax Contingencies [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Balance at beginning of year

   $ 8,820     $ 6,357     $ 4,609  

Additions based on tax positions taken in prior years

     104       293       5  

Additions based on tax positions taken in the current year

     2,314       2,446       2,580  

Reduction based on tax positions taken in prior years

     (615

)

     (276

)

     (837

)

Balance at end of year

   $ 10,623     $ 8,820     $ 6,357  
Summary of Income Tax Examinations [Table Text Block]

Israel

   2015 - 2019  

Kenya

   2013 - 2019  

Guatemala

   2015 - 2019  

Honduras

   2015 - 2019  

Guadeloupe

   2017 - 2019  

New Zealand

   2012 - 2019  
v3.19.3.a.u2
Note 19 - Business Segments (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
   

Electricity

    

Product

    

ESMS

    

Consolidated

  
   

(Dollars in thousands)

  

Year Ended December 31, 2019:

                                

Revenues from external customers:

                                

United States (1)

   $ 333,797     $ 30,562     $ 13,597     $ 377,956  

Foreign (2)

     206,536       160,447       1,105       368,088  

Net revenues from external customers

     540,333       191,009       14,702       746,044  

Intersegment revenues

     —       84,614       —       84,614  

Depreciation and amortization expense

     138,426       5,308       5,027       148,761  

Operating income (loss)

     177,192       23,180       (6,576

)

     193,796  

Segment assets at period end (3) (*)

     3,044,909       126,018       79,567       3,250,494  

Expenditures for long-lived assets

     259,898       9,156       10,932       279,986  

* Including unconsolidated investments

     81,140       —       —       81,140  
                                 

Year Ended December 31, 2018:

                                

Revenues from external customers:

                                

United States (1)

     305,962       14,999       7,645       328,606  

Foreign (2)

     203,917       186,744       —       390,661  

Net revenues from external customers

   $ 509,879     $ 201,743     $ 7,645     $ 719,267  

Intersegment revenues

     —       48,817       —       48,817  

Depreciation and amortization expense

     126,181       4,311       1,741       132,233  

Operating income (loss)

     155,546       38,083       (8,519

)

     185,110  

Segment assets at period end (3) (*)

     2,896,938       156,942       67,470       3,121,350  

Expenditures for long-lived assets

     219,803       9,993       28,725       258,521  

* Including unconsolidated investments

     71,983       —       —       71,983  
                                 

Year Ended December 31, 2017:

                                

Revenues from external customers

   $ 465,593     $ 224,483     $ 2,736     $ 692,812  

Intersegment revenues

     —       109,040       —       109,040  

Depreciation and amortization expense

     109,928       3,470       1,748       115,146  

Operating income (loss)

     157,613       50,543       (3,138

)

     205,018  

Segment assets at period end (3) (*)

     2,457,514       115,713       50,637       2,623,864  

Expenditures for long-lived assets

     252,581       6,653       —       259,234  

* Including unconsolidated investments

     34,084       —       —       34,084  
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  
                         

Revenues:

                        

Total segment revenues

   $ 746,044     $ 719,267     $ 692,812  

Intersegment revenues

     84,614       48,817       109,040  

Elimination of intersegment revenues

     (84,614

)

     (48,817

)

     (109,040

)
                         

Total consolidated revenues

   $ 746,044     $ 719,267     $ 692,812  
                         

Operating income:

                        

Operating income

   $ 193,796     $ 185,110     $ 205,018  

Interest income

     1,515       974       988  

Interest expense, net

     (80,384

)

     (70,924

)

     (54,142

)

Derivatives and foreign currency transaction gains (losses)

     624       (4,761

)

     2,654  

Income attributable to sale of tax benefits

     20,872       19,003       17,878  

Other non-operating income (expense), net

     880       7,779       (1,666

)

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

   $ 137,303     $ 137,181     $ 170,730  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  

Revenues from external customers attributable to: (1)

                        

United States

   $ 377,956     $ 328,606     $ 301,132  

Indonesia

     —       4,379       28,968  

Kenya

     121,661       119,094       110,243  

Turkey

     88,938       168,699       125,166  

Chile

     25,540       980       8,895  

Guatemala

     28,624       27,975       27,991  

New Zealand

     31,222       10,451       33,395  

Honduras

     34,446       34,355       10,151  

Other foreign countries

     37,657       24,728       46,871  
                         

Consolidated total

   $ 746,044     $ 719,267     $ 692,812  
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

(Dollars in thousands)

  
                         

Long-lived assets (primarily power plants and related assets) located in:

                        

United States

   $ 1,870,335     $ 1,696,439     $ 1,510,986  

Kenya

     284,526       301,956       340,970  

Other foreign countries

     224,676       222,872       281,333  

Consolidated total

   $ 2,379,537     $ 2,221,267     $ 2,133,289  
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]
   

Year Ended December 31,

  
   

2019

    

2018

    

2017

  
   

Revenues

    

%

    

Revenues

    

%

    

Revenues

    

%

  
   

(Dollars in

thousands)

            

(Dollars in

thousands)

            

(Dollars in

thousands)

          

Southern California Public Power (1)

   $ 133,725       17.9     $ 109,208       15.2     $ 70,100       10.1  

Sierra Pacific Power Company and Nevada Power Company (1)(2)

     125,486       16.8       116,149       16.1       125,424       18.1  

KPLC (1)

     121,661       16.3       119,094       16.6       110,243       15.9  
v3.19.3.a.u2
Note 21 - Employee Benefit Plan (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Schedule of Expected Benefit Payments [Table Text Block]
   

(Dollars in

thousands)

  

Year ending December 31:

        

2020

   $ 4,780  

2021

     1,434  

2022

     1,768  

2023

     89  

2024

     500  
2025-2043     11,232  

Total

   $ 19,803  
v3.19.3.a.u2
Note 23 - Leases (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Lease, Cost [Table Text Block]
   

Year Ended

December 31,

2019

  
   

(Dollars in thousands)

  

Lease cost

        

Finance lease cost:

        

Amortization of right-of-use assets

   $ 3,273  

Interest on lease liabilities

     1,330  

Operating lease cost

     8,057  
Variable lease cost     1,647  
Short-term lease cost     —  

Total lease cost

   $ 14,307  
         

Other information

        

Cash paid for amounts included in the measurement of lease liabilities:

        

Operating cash flows for finance leases

   $ 1,330  

Operating cash flows for operating leases

     9,004  

Financing cash flows for finance leases

     3,164  

Right-of-use assets obtained in exchange for new finance lease liabilities

     5,262  

Right-of-use assets obtained in exchange for new operating lease liabilities

     6,364  
   

December 31,

  
Additional information as of December 31, 2019:  

2019

  

Weighted-average remaining lease term — finance leases (in years)

     4.0  

Weighted-average remaining lease term — operating leases (in years)

     7.3  
Weighted-average discount rate (in percentage)     5 %
Lessee, Lease Liability, Maturity [Table Text Block]
   

Operating Leases

    

Finance Leases

  
   

(Dollars in thousands)

  

Year ending December 31,

                
2020   $ 2,742     $ 4,251  
2021     2,701       3,948  
2022     2,079       3,873  
2023     1,524       2,758  
2024     1,275       906  

Thereafter

     10,635       4,118  

Total future minimum lease payments

     20,956       19,854  

Less imputed interest

     4,205       5,577  

Total

   $ 16,751     $ 14,277  
Schedule of Future Minimum Rental Payments for Operating and Capital Leases [Table Text Block]
   

(Dollars in thousands)

  

Year ending December 31,

        

2019

   $ 10,889  

2020

     7,515  

2021

     5,758  

2022

     4,415  

2023

     2,910  

Thereafter

     9,292  

Total

   $ 40,779  
Operating Lease, Lease Income [Table Text Block]
   

Year Ended

December 31,

2019

  
   

(Dollars in thousands)

  

Lease income relating to lease payments of operating leases

   $ 479,059  

Lease income relating to variable lease payments not included in the measurement of the lease

     —  

Total

   $ 479,059  
v3.19.3.a.u2
Note 24 - Quarterly Financial Information (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2019
Notes Tables  
Quarterly Financial Information [Table Text Block]
   

Three Months Ended

  
   

Mar. 31,

2018

    

June 30,

2018

    

Sept. 30,

2018

    

Dec. 31,

2018

    

Mar. 31,

2019

    

June 30,

2019

    

Sept. 30,

2019

    

Dec. 31,

2019

  
   

(Dollars in thousands, except per share amounts)

  

Revenues:

                                                                

Electricity

   $ 132,489     $ 122,179     $ 116,891     $ 138,320     $ 142,908     $ 129,079     $ 123,978     $ 144,368  

Product

     48,672       54,915       48,439       49,717       52,128       52,030       43,037       43,814  

Energy storage and management services

     2,862       1,205       1,150       2,428       4,002       2,956       3,484       4,260  

Total revenues

     184,023       178,299       166,480       190,465       199,038       184,065       170,499       192,442  

Cost of revenues:

                                                                

Electricity

     73,482       81,236       79,845       63,692       77,543       73,775       80,124       81,393  

Product

     33,726       37,573       35,669       33,729       42,106       41,316       31,073       31,479  

Energy storage and management services

     3,443       2,028       2,174       2,235       5,210       3,827       3,807       5,068  

Total cost of revenues

     110,651       120,837       117,688       99,656       124,859       118,918       115,004       117,940  

Gross profit

     73,372       57,462       48,792       90,809       74,179       65,147       55,495       74,502  

Operating expenses:

                                                                

Research and development expenses

     1,108       1,251       706       1,118       900       810       1,062       1,875  

Selling and marketing expenses

     3,699       3,712       8,578       3,813       3,865       3,276       3,783       4,123  

General and administrative expenses

     13,849       15,866       13,606       4,429       15,689       14,181       11,931       14,032  

Impairment charge

     —       —       —       13,464       —       —       —       —  

Write-off of unsuccessful exploration activities

     123       —       —       3       —       —       —       —  

Operating income

     54,593       36,633       25,902       67,982       53,725       46,880       38,719       54,472  

Other income (expense):

                                                                

Interest income

     113       189       214       458       293       420       482       320  

Interest expense, net

     (14,344

)

     (15,846

)

     (18,700

)

     (22,034

)

     (21,223

)

     (21,517

)

     (20,076

)

     (17,568

)

Derivatives and foreign currency transaction gains (losses)

     (1,599

)

     (529

)

     (383

)

     (2,250

)

     472       19       205       (72

)

Income attributable to sale of tax benefits

     7,361       3,556       4,066       4,020       7,764       4,637       4,056       4,415  

Other non-operating income (expense), net

     (20

)

     7,373       309       117       91       1,027       244       (482

)

Income from operations before income tax and equity in earnings (losses) of investees

     46,104       31,376       11,408       48,293       41,122       31,466       23,630       41,085  

Income tax (provision)

     26,942       (29,105

)

     (1,184

)

     (31,386

)

     (14,039

)

     3,529       (9,626

)

     (25,477

)

Equity in earnings (losses) of investees, net

     1,210       388       (117

)

     6,182       1,047       1,202       1,085       (1,481

)

Net income

     74,256       2,659       10,107       23,089       28,130       36,197       15,089       14,127  

Net loss (income) attributable to noncontrolling interest

     (4,748

)

     (3,002

)

     474       (4,869

)

     (2,184

)

     (2,259

)

     516       (1,521

)

Net income (loss) attributable to the Company's stockholders

   $ 69,508     $ (343

)

   $ 10,581     $ 18,220     $ 25,946     $ 33,938     $ 15,605     $ 12,606  
                                                                 

Earnings (loss) per share attributable to the Company's stockholders

                                                                

Basic:

                                                                

Net income

   $ 1.37     $ (0.01

)

   $ 0.21     $ 0.36     $ 0.51     $ 0.67     $ 0.31     $ 0.25  
                                                                 

Diluted:

                                                                

Net income

   $ 1.36     $ (0.01

)

   $ 0.21     $ 0.36     $ 0.51     $ 0.66     $ 0.30     $ 0.24  
                                                                 

Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders:

                                                                

Basic

     50,614       50,623       50,645       50,691       50,709       50,800       50,933       51,017  

Diluted

     51,051       50,958       50,963       50,936       51,012       51,094       51,334       51,511  
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies 1 (Details Textual)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
May 03, 2018
USD ($)
Mar. 15, 2017
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
USD ($)
$ / shares
shares
Dividends, Common Stock, Cash                     $ 22,400 $ 26,800 $ 20,500
Common Stock, Dividends, Per Share, Declared | $ / shares                     $ 0.44 $ 0.53 $ 0.44
Cash, FDIC Insured Amount     $ 12,900       $ 31,300       $ 12,900 $ 31,300  
Cash, Uninsured Amount     84,800       93,900       84,800 93,900  
Accounts Receivable, after Allowance for Credit Loss, Current, Total     154,525       137,581       154,525 137,581  
Interest Costs Capitalized                     3,285 3,728 $ 7,224
Exploration Abandonment and Impairment Expense     0 $ 0 $ 0 $ 0 3 $ 0 $ 0 $ 123 0 126 1,796
Accumulated Amortization, Debt Issuance Costs     19,500       21,800       19,500 21,800  
Amortization of Debt Issuance Costs                     5,400 4,600 5,700
Write off of Deferred Debt Issuance Cost                     0 0 600
Impairment of Long-Lived Assets to be Disposed of                     0    
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Ending Balance     $ 1,500       0       1,500 0  
Grants Received to Offset Exploration and Development Costs Incurred                     $ 0 $ 0 $ 0
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares                     360,500 176,400 42,900
Insured Event, Gain (Loss)                     $ (0) $ 4,463 $ (0)
Operating Lease, Weighted Average Discount Rate, Percent     5.00%               5.00%    
Finance Lease, Weighted Average Discount Rate, Percent     7.00%               7.00%    
Galena 2 Power Purchase Agreement [Member]                          
Termination Fees                     $ 0 $ 5,000 $ 0
Product [Member]                          
Revenue, Remaining Performance Obligation, Amount     $ 139,300               $ 139,300    
Viridity Energy, Inc. [Member]                          
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life   19 years                 19 years    
Minimum [Member]                          
Finite-Lived Intangible Asset, Useful Life                     13 years    
Maximum [Member]                          
Finite-Lived Intangible Asset, Useful Life                     29 years    
Power Plants [Member] | Minimum [Member]                          
Property, Plant and Equipment, Useful Life                       15 years  
Power Plants [Member] | Maximum [Member]                          
Property, Plant and Equipment, Useful Life                       30 years  
Puna Geothermal Power Plant [Member]                          
Insured Event, Gain (Loss) $ 1,100                   $ 9,300    
Pacific Gas & Electric [Member]                          
Percentage of Total Revenue                     1.50% 1.90% 2.00%
Kenya Power and Lighting Co LTD [Member]                          
Accounts Receivable, Past Due     $ 40,700               $ 40,700    
Proceeds, Overdue Accounts Receivable                     $ 24,200    
Accounts Receivable, Past Due, Average Number of Days Overdue     70               70    
Accounts Receivable, Past Due, Average Number of Days Overdue, Number of Days Increase During Period                     10    
ENNE [Member]                          
Accounts Receivable, Past Due     $ 20,100               $ 20,100    
Accounts Receivable, Credit Loss Expense (Reversal)                     $ 0    
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Primary Customers [Member]                          
Concentration Risk, Percentage                     58.00% 56.00%  
Non-US [Member]                          
Accounts Receivable, after Allowance for Credit Loss, Current, Total     $ 118,800       $ 102,000       $ 118,800 $ 102,000  
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies 2 (Details Textual) - Product [Member] - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Dec. 31, 2019
Revenue, Remaining Performance Obligation, Percentage 100.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 24 months
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies - Cash and Restricted Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash and cash equivalents $ 71,173 $ 98,802 $ 47,818  
Restricted cash and cash equivalents 81,937 78,693 48,825  
Total cash and cash equivalents and restricted cash and cash equivalents $ 153,110 $ 177,495 $ 96,643 $ 264,476
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies - Property, Plant, and Equipment Estimated Useful Life (Details)
 12 Months Ended
Dec. 31, 2019
Building [Member]  
Property, plant, and equipment estimated useful lives (Year) 25 years
Leasehold Improvements [Member] | Minimum [Member]  
Property, plant, and equipment estimated useful lives (Year) 15 years
Leasehold Improvements [Member] | Maximum [Member]  
Property, plant, and equipment estimated useful lives (Year) 20 years
Machinery And Equipment - Manufacturing And Drilling [Member]  
Property, plant, and equipment estimated useful lives (Year) 10 years
Machinery and Equipment - Computers [Member] | Minimum [Member]  
Property, plant, and equipment estimated useful lives (Year) 3 years
Machinery and Equipment - Computers [Member] | Maximum [Member]  
Property, plant, and equipment estimated useful lives (Year) 5 years
Furniture and Fixtures [Member] | Minimum [Member]  
Property, plant, and equipment estimated useful lives (Year) 5 years
Furniture and Fixtures [Member] | Maximum [Member]  
Property, plant, and equipment estimated useful lives (Year) 15 years
Office Equipment - Other [Member] | Minimum [Member]  
Property, plant, and equipment estimated useful lives (Year) 5 years
Office Equipment - Other [Member] | Maximum [Member]  
Property, plant, and equipment estimated useful lives (Year) 10 years
Vehicles [Member] | Minimum [Member]  
Property, plant, and equipment estimated useful lives (Year) 5 years
Vehicles [Member] | Maximum [Member]  
Property, plant, and equipment estimated useful lives (Year) 7 years
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies - Contract Assets (Liabilities) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Contract assets (*) [1] $ 38,365 $ 42,130
Contract liabilities (*) [1] (2,755) (18,402)
Contract assets, net 35,610 23,728
Recognition of contract liabilities as revenue as a result of performance obligations satisfied 12,675 33,349
Cash received in advance for which revenues have not yet recognized, net of expenditures made (3,323) (38,162)
Reduction of contract assets as a result of rights to consideration becoming unconditional (130,918) (128,659)
Contract assets recognized, net of recognized receivables 133,448 136,496
Net change in contract assets and contract liabilities 2,530 7,837
Net change in contract assets and contract liabilities $ 9,352 $ (4,813)
[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. The contract liabilities balance at the beginning of the year was fully recognized as product revenues during the years ended December 31, 2019 and 2018 as a result of performance obligations satisfied.
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies - Impact of Adoption (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jan. 01, 2019
Revenue [1]                 $ 746,044 $ 719,267 $ 692,812  
Prepaid expenses and other $ 12,667       $ 51,441       12,667 51,441   $ 16,056
Deferred financing and lease costs, net 0       3,242       0 3,242   1,583
Property, plant and equipment, net 1,971,415       1,959,578       1,971,415 1,959,578   1,946,723
Operating leases right of use 17,405       0       17,405 0   62,244
Finance leases right of use 14,161       0       14,161 0   13,476
Accounts payable and accrued expenses 141,857       116,362       141,857 116,362   113,502
Current maturity of operating lease liabilities 2,743       0       2,743 0   7,532
Current maturity of finance lease liabilities 3,068       0       3,068 0   2,841
Other long-term liabilities 6,838       16,087       6,838 16,087   6,117
Long term portion of operating lease liabilities 14,008       0       14,008 0   17,668
Long term portion of finance lease liabilities 11,209       0       11,209 0   10,668
Retained earnings 487,873       422,222       487,873 422,222   422,164
Accounting Standards Update 2016-02 [Member]                        
Prepaid expenses and other                       (35,385)
Deferred financing and lease costs, net                       (1,659)
Property, plant and equipment, net                       (12,855)
Operating leases right of use                       62,244
Finance leases right of use                       13,476
Accounts payable and accrued expenses                       (2,860)
Current maturity of operating lease liabilities                       7,532
Current maturity of finance lease liabilities                       2,841
Other long-term liabilities                       (9,970)
Long term portion of operating lease liabilities                       17,668
Long term portion of finance lease liabilities                       10,668
Retained earnings                       $ (58)
Electricity [Member]                        
Revenue $ 144,368 $ 123,978 $ 129,079 $ 142,908 $ 138,320 $ 116,891 $ 122,179 $ 132,489 540,333 509,879 $ 465,593  
Electricity [Member] | Accounting Standards Update 2016-02 [Member]                        
Revenue                 479,059 481,619    
Electricity and Product Revenue [Member] | Accounting Standards Update 2014-09 [Member]                        
Revenue                 $ 266,985 $ 237,648    
[1] Revenues as reported in the geographic area in which they originate.
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies - Shares Used to Calculate Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Weighted average number of shares used in computation of basic earnings per share (in shares) 51,017 50,933 50,800 50,709 50,691 50,645 50,623 50,614 50,867 50,643 50,110
Additional shares from the assumed exercise of employee stock options (in shares)                 360 326 659
Weighted average number of shares used in computation of diluted earnings per share (in shares) 51,511 51,334 51,094 51,012 50,936 50,963 50,958 51,051 51,227 50,969 50,769
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies - Redeemable Noncontrolling Interest (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Redeemable noncontrolling interest as of January 1, $ 8,603 $ 6,416
Redeemable noncontrolling interest in results of operation of a consolidated subsidiary 1,132 990
Cash paid to noncontrolling interest (252) 0
Increase in share of redeemable noncontrolling interest 0 1,528
Currency translation adjustments (233) (331)
Redeemable noncontrolling interest as of December 31, $ 9,250 $ 8,603
v3.19.3.a.u2
Note 1 - Business and Significant Accounting Policies - ROU Assets Useful Life (Details)
 12 Months Ended
Dec. 31, 2019
Automobiles [Member] | ROA Asset [Member]  
Property, plant, and equipment estimated useful lives (Year) 5 years
Building [Member]  
Property, plant, and equipment estimated useful lives (Year) 25 years
Building [Member] | ROA Asset [Member]  
Property, plant, and equipment estimated useful lives (Year) 15 years
Minimum [Member] | Land [Member] | ROA Asset [Member]  
Property, plant, and equipment estimated useful lives (Year) 1 year
Maximum [Member] | Land [Member] | ROA Asset [Member]  
Property, plant, and equipment estimated useful lives (Year) 35 years
v3.19.3.a.u2
Note 2 - Business Acquisitions and Others (Details Textual)
$ in Thousands
 3 Months Ended 12 Months Ended
Jul. 02, 2019
USD ($)
Apr. 24, 2018
USD ($)
MWh
Mar. 15, 2017
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Payments to Acquire Equity Method Investments         $ 10,674 $ 3,800 $ 46,318
Goodwill, Ending Balance       $ 20,140 $ 20,140 19,950 21,037
U.S. Geothermal [Member]              
Payments to Acquire Businesses, Gross   $ 110,000          
Current Power Generation | MWh   38          
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual           21,400  
Business Acquisition, Pro Forma Operating Income (Loss) since Acquisition Date, Actual           2,500  
Business Combination, Consideration Transferred, Total   $ 110,000          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total [1]   127,000          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Working Capital   (8,200)          
Goodwill, Ending Balance [2]   $ 12,700          
U.S. Geothermal [Member] | Long-term Electricity Power Purchase Agreements [Member]              
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life   19 years          
Viridity Energy, Inc. [Member]              
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life     19 years   19 years    
Business Combination, Consideration Transferred, Total     $ 35,300        
Business Combination, Contingent Consideration, Liability, Total     12,400     $ 10,300 $ 600
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total     34,700        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Working Capital     400        
Goodwill, Ending Balance     $ 13,500        
Neal Hot Springs [Member] | U.S. Geothermal [Member]              
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value   $ 34,900          
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Percent   40.00%          
Neal Hot Springs [Member] | U.S. Geothermal [Member] | Measurement Input, Expected Term [Member]              
Noncontrolling Interest, Measurement Input   20          
Neal Hot Springs [Member] | U.S. Geothermal [Member] | Measurement Input, Discount Rate [Member]              
Noncontrolling Interest, Measurement Input   0.09          
Subsidiary of Medco Power [Member] | Ijen Geothermal Project Company [Member]              
Ownership Percentage Of Common Shares Outstanding 51.00%            
Ormat Nevada Inc. [Member] | U.S. Geothermal [Member]              
Payments to Acquire Businesses, Gross   $ 106,000          
Heit vs Ormat Technologies, Inc. [Member] | U.S. Geothermal [Member]              
Payments to Acquire Businesses, Gross   $ 4,000          
Ijen Geothermal Project Company [Member]              
Equity Method Investment, Ownership Percentage 49.00%            
Payments to Acquire Equity Method Investments $ 2,700     $ 7,400      
[1] Intangible assets are primarily related to long-term electricity power purchase agreements and depreciated over an average of 19 years.
[2] Goodwill is primarily related to the expected synergies in operations as a result of the purchase transaction. The goodwill is allocated to the Electricity segment and not deductible for tax purposes.
v3.19.3.a.u2
Note 2 - Business Acquisitions and Others - Fair Value of Amounts of Identified Assets and Liabilities Assumed in a Business Combination (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Apr. 24, 2018
Dec. 31, 2017
Goodwill (2) $ 20,140 $ 19,950   $ 21,037
U.S. Geothermal [Member]        
Cash and cash equivalents and restricted cash     $ 37,900  
Property, plant and equipment and construction-in-process     77,300  
Intangible assets (1) [1]     127,000  
Goodwill (2) [2]     12,700  
Deferred taxes     1,700  
Total assets acquired     256,600  
Other working capital     (8,200)  
Long-term term debt     (98,300)  
Asset retirement obligation     (9,000)  
Noncontrolling interest     (34,900)  
Total liabilities assumed     (150,400)  
Total assets acquired, and liabilities assumed, net     $ 106,200  
[1] Intangible assets are primarily related to long-term electricity power purchase agreements and depreciated over an average of 19 years.
[2] Goodwill is primarily related to the expected synergies in operations as a result of the purchase transaction. The goodwill is allocated to the Electricity segment and not deductible for tax purposes.
v3.19.3.a.u2
Note 2 - Business Acquisitions and Others - Summary of Pro Forma Information Related to a Business Combination (Details) - U.S. Geothermal [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Business Acquisition, Pro Forma Revenue $ 730,563 $ 724,869
Income from continuing operations before income taxes and equity in losses of investees 134,142 169,546
Electricity Segment [Member]    
Business Acquisition, Pro Forma Revenue $ 521,175 $ 497,650
v3.19.3.a.u2
Note 3 - Inventories - Inventories, Current (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Raw materials and purchased parts for assembly $ 21,942 $ 26,914
Self-manufactured assembly parts and finished products 13,007 18,110
Total $ 34,949 $ 45,024
v3.19.3.a.u2
Note 4 - Cost and Estimated Earnings on Uncompleted Contracts - Cost and Estimated Earnings on Uncompleted Contracts (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Costs and estimated earnings incurred on uncompleted contracts $ 196,550 $ 278,797
Less billings to date (160,940) (255,069)
Total $ 35,610 $ 23,728
v3.19.3.a.u2
Note 4 - Cost and Estimated Earnings on Uncompleted Contracts - Cost and Estimated Earnings on Uncompleted Contracts Included in Consolidated Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Costs and estimated earnings in excess of billings on uncompleted contracts $ 38,365 $ 42,130
Billings in excess of costs and estimated earnings on uncompleted contracts (2,755) (18,402)
Total $ 35,610 $ 23,728
v3.19.3.a.u2
Note 5 - Investment in an Unconsolidated Company (Details Textual) - Sarulla [Member]
$ in Thousands
 12 Months Ended
Dec. 31, 2019
USD ($)
MWh
Dec. 31, 2018
USD ($)
Jointly Owned Utility Plant, Proportionate Ownership Share 12.75%  
Expected Power Generating Capacity | MWh 330  
Number of Phases of Construction 3  
Power Utilization | MWh 110  
Power Plant Usage Agreement Term 30 years  
Payments to Acquire Projects $ 0 $ 3,800
Accumulated Cash Contributions to Acquire Projects 62,000  
Interest Rate Swap [Member]    
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax, Ending Balance $ 6,300 $ 2,900
v3.19.3.a.u2
Note 5 - Investment in an Unconsolidated Company - Unconsolidated Investments Mainly in Power Plants (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Total investment in unconsolidated companies $ 81,140 $ 71,983
Sarulla [Member]    
Total investment in unconsolidated companies 70,589 71,983
Ijen Geothermal Project Company [Member]    
Total investment in unconsolidated companies $ 10,551 $ 0
v3.19.3.a.u2
Note 5 - Investment in an Unconsolidated Company - Unrealized Gain (Loss) on Derivative Instruments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Interest Rate Swap [Member] | Sarulla [Member]    
Change, net of deferred tax, in unrealized gains (losses) in respect of the Company’s share in derivative instruments of unconsolidated investment $ (3,417) $ 2,235
v3.19.3.a.u2
Note 6 - Variable Interest Entities - Assets and Liabilities for the Company's 2015 Variable Interest Entity (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
Dec. 31, 2017
Restricted cash and cash equivalents (primarily related to VIEs) $ 81,937   $ 78,693  
Property, plant and equipment, net 1,971,415   1,959,578  
Construction-in-process 376,555   261,690  
Total assets [1] 3,250,494 [2]   3,121,350 [3] $ 2,623,864 [3]
Accounts payable and accrued expenses 141,857 $ 113,502 116,362  
Long-term debt 1,167,912      
Other long-term liabilities 6,838 6,117 16,087  
Total liabilities 1,725,834   1,667,651  
Assets:        
Restricted cash and cash equivalents 81,937   78,693 48,825
Property, plant and equipment, net 1,971,415   1,959,578  
Construction-in-process 376,555   261,690  
Total assets [1] 3,250,494 [2]   3,121,350 [3] $ 2,623,864 [3]
Liabilities:        
Accounts payable and accrued expenses 141,857 113,502 116,362  
Long-term debt 1,167,912      
Other long-term liabilities 6,838 $ 6,117 16,087  
Total liabilities 1,725,834   1,667,651  
Variable Interest Entity [Member]        
Construction-in-process 149,830   104,085  
Assets:        
Construction-in-process 149,830   104,085  
Variable Interest Entity [Member] | Project Debt [Member]        
Restricted cash and cash equivalents (primarily related to VIEs) 81,522      
Other current assets     213,007  
Property, plant and equipment, net 1,211,656   1,552,408  
Construction-in-process 10,188   90,812  
Other long-term assets 162,995   177,723  
Total assets 1,630,747   2,109,969  
Accounts payable and accrued expenses 25,361   24,245  
Long-term debt 794,214   805,850  
Other long-term liabilities 126,851   125,769  
Total liabilities 946,426   955,864  
Assets:        
Restricted cash and cash equivalents     76,019  
Other current assets     213,007  
Property, plant and equipment, net 1,211,656   1,552,408  
Construction-in-process 10,188   90,812  
Other long-term assets 162,995   177,723  
Total assets 1,630,747   2,109,969  
Liabilities:        
Accounts payable and accrued expenses 25,361   24,245  
Long-term debt 794,214   805,850  
Other long-term liabilities 126,851   125,769  
Total liabilities 946,426   955,864  
Variable Interest Entity [Member] | Power Purchase Agreement [Member]        
Restricted cash and cash equivalents (primarily related to VIEs) 20      
Other current assets 29,076      
Assets:        
Other current assets 29,076      
Variable Interest Entity [Member] | Power Purchase Agreements [Member]        
Other current assets     9,698  
Property, plant and equipment, net 668,891   306,820  
Construction-in-process 139,642   13,273  
Other long-term assets 40,138   9,104  
Total assets 877,767   341,199  
Accounts payable and accrued expenses 13,201   2,651  
Long-term debt 0   0  
Other long-term liabilities 32,790   12,483  
Total liabilities 45,991   15,134  
Assets:        
Restricted cash and cash equivalents     2,304  
Other current assets     9,698  
Property, plant and equipment, net 668,891   306,820  
Construction-in-process 139,642   13,273  
Other long-term assets 40,138   9,104  
Total assets 877,767   341,199  
Liabilities:        
Accounts payable and accrued expenses 13,201   2,651  
Long-term debt 0   0  
Other long-term liabilities 32,790   12,483  
Total liabilities 45,991   $ 15,134  
Variable Interest Entity [Member] | Projected [Member]        
Other current assets 164,386      
Assets:        
Other current assets $ 164,386      
[1] Electricity segment assets include goodwill in the amount of $20.1 million, $20.0 million and $7.6 as of December 31, 2019, 2018 and 2017, respectively. No goodwill is included in the Product and Energy Storage and Management Services segment assets as of December 31, 2019 and 2018. Energy Storage and Management Services segment assets as December 31, 2017 include goodwill in the amount of $13.5 million. For further information on goodwill, see Note 9 - Intangible assets and goodwill to the consolidated financial statements.
[2] Including unconsolidated investments 81,140 — — 81,140
[3] Including unconsolidated investments 34,084 — — 34,084
v3.19.3.a.u2
Note 7 - Fair Value of Financial Instruments (Details Textual) - Henry Hub Natural Gas Future ("NG") Contracts [Member] - Put Option [Member]
$ in Millions
Jan. 12, 2017
USD ($)
MMBTU
$ / BTU
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU 4.1
Derivative, Price Risk Option Strike Price | $ / BTU 3
Payments for Derivative Instrument, Investing Activities | $ $ 0.7
v3.19.3.a.u2
Note 7 - Fair Value of Financial Instruments - Financial Assets and Liabilities at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Reported Value Measurement [Member]    
Cash equivalents (including restricted cash accounts) $ 28,316 $ 18,787
25,421 14,427
Cash equivalents (including restricted cash accounts) 28,316 18,787
Reported Value Measurement [Member] | Contingent Receivable [Member]    
Derivative Asset, Current [1] 102 104
Reported Value Measurement [Member] | Currency Forward Contracts [Member]    
Derivative Asset, Current [2] 362  
Derivative Liability, Current [2]   (1,040)
Reported Value Measurement [Member] | Contingent Payable [Member]    
Derivative Liability, Current [1] (3,359) (3,424)
Estimate of Fair Value Measurement [Member]    
Cash equivalents (including restricted cash accounts) 28,316 18,787
25,421 14,427
Cash equivalents (including restricted cash accounts) 28,316 18,787
Estimate of Fair Value Measurement [Member] | Contingent Receivable [Member]    
Derivative Asset, Current [1] 102 104
Estimate of Fair Value Measurement [Member] | Currency Forward Contracts [Member]    
Derivative Asset, Current [2] 362  
Derivative Liability, Current [2]   (1,040)
Estimate of Fair Value Measurement [Member] | Contingent Payable [Member]    
Derivative Liability, Current [1] (3,359) (3,424)
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]    
Cash equivalents (including restricted cash accounts) 28,316 18,787
28,316 18,787
Cash equivalents (including restricted cash accounts) 28,316 18,787
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  
Derivative Liability, Current [2]   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
362 (1,040)
Cash equivalents (including restricted cash accounts) 0 0
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] 362  
Derivative Liability, Current [2]   (1,040)
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
(3,257) (3,320)
Cash equivalents (including restricted cash accounts) 0 0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Receivable [Member]    
Derivative Asset, Current [1] 102 104
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Currency Forward Contracts [Member]    
Derivative Asset, Current [2] 0  
Derivative Liability, Current [2]   0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Payable [Member]    
Derivative Liability, Current [1] $ (3,359) $ (3,424)
[1] These amounts relate to contingent receivables and payables and warrants pertaining to the Guadeloupe power plant purchase transaction, 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 December 31, 2019 and 2018 in the 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.
[2] These amounts relate to currency forward contracts valued primarily based on observable inputs, including forward and spot prices for currencies, net of contracted rates and then multiplied by notional amounts, and are included within "Receivables, other" and "Accounts payable and accrued expenses", as applicable, on December 31, 2019 and December 31, 2018, in the consolidated balance sheet 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.
v3.19.3.a.u2
Note 7 - 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
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Amount of gain (loss) recognized $ 2,556 $ 7,411 $ 5,268
Foreign Currency Gain (Loss) [Member] | Put Options on Natural Gas Price [Member]      
Amount of gain (loss) recognized 0 0 (350)
Foreign Currency Gain (Loss) [Member] | Contingent Considerations [Member]      
Amount of gain (loss) recognized 0 170 (129)
Foreign Currency Gain (Loss) [Member] | Currency Forward Contracts [Member]      
Amount of gain (loss) recognized 2,556 (3,081) 3,699
General and Administrative Expense [Member] | Currency Forward Contracts [Member]      
Amount of gain (loss) recognized $ 0 $ 10,322 $ 2,048
v3.19.3.a.u2
Note 7 - Fair Value of Financial Instruments - Fair Value of Long-term Debt Approximates Its Carrying Amount, Exceptions (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Estimate of Fair Value Measurement [Member]    
Other long-term debt $ 16.3 $ 5.4
Reported Value Measurement [Member]    
Other long-term debt 17.4 6.2
Olkaria III OPIC [Member]    
Loans 202.1 211.8
Olkaria III OPIC [Member] | Estimate of Fair Value Measurement [Member]    
Loans 202.1 211.8
Olkaria III OPIC [Member] | Reported Value Measurement [Member]    
Loans 192.6 210.6
Olkaria III Plant 4 Loan - DEG 2 [Member]    
Loans 43.8  
Olkaria III Plant 4 Loan - DEG 2 [Member] | Estimate of Fair Value Measurement [Member]    
Loans 43.8 47.2
Olkaria III Plant 4 Loan - DEG 2 [Member] | Reported Value Measurement [Member]    
Loans 42.5 47.5
Olkaria III plant 1 Loan - DEG 3 [Member]    
Loans 38.8  
Olkaria III plant 1 Loan - DEG 3 [Member] | Estimate of Fair Value Measurement [Member]    
Loans 38.8 0.0
Olkaria III plant 1 Loan - DEG 3 [Member] | Reported Value Measurement [Member]    
Loans 37.1 0.0
Platanares Loan - OPIC [Member]    
Loans 115.3 119.1
Platanares Loan - OPIC [Member] | Estimate of Fair Value Measurement [Member]    
Loans 115.3 119.1
Platanares Loan - OPIC [Member] | Reported Value Measurement [Member]    
Loans 104.5 112.7
Amatitlan Loan [Member]    
Loans 26.4 29.9
Amatitlan Loan [Member] | Estimate of Fair Value Measurement [Member]    
Loans 26.4 29.9
Amatitlan Loan [Member] | Reported Value Measurement [Member]    
Loans 26.3 29.8
OrCal Geothermal Inc [Member]    
Notes   19.0
OrCal Geothermal Inc [Member] | Estimate of Fair Value Measurement [Member]    
Notes 0.0 19.0
OrCal Geothermal Inc [Member] | Reported Value Measurement [Member]    
Notes 0.0 18.7
OFC Two Senior Secured Notes [Member] | Estimate of Fair Value Measurement [Member]    
Notes 210.9 214.5
OFC Two Senior Secured Notes [Member] | Reported Value Measurement [Member]    
Notes 203.0 217.8
Don A. Campbell 1 ("DAC1") [Member]    
Notes 78.5 78.8
Don A. Campbell 1 ("DAC1") [Member] | Estimate of Fair Value Measurement [Member]    
Notes 78.5 78.8
Don A. Campbell 1 ("DAC1") [Member] | Reported Value Measurement [Member]    
Notes 78.2 83.3
USG Prudential - NV [Member]    
Notes 30.6 29.4
USG Prudential - NV [Member] | Estimate of Fair Value Measurement [Member]    
Notes 30.6 29.4
USG Prudential - NV [Member] | Reported Value Measurement [Member]    
Notes 28.4 27.8
USG Prudential - ID [Member]    
Notes 18.6 18.6
USG Prudential - ID [Member] | Estimate of Fair Value Measurement [Member]    
Notes 18.6 18.6
USG Prudential - ID [Member] | Reported Value Measurement [Member]    
Notes 19.6 18.9
USG DOE [Member]    
Notes 45.0 48.3
USG DOE [Member] | Estimate of Fair Value Measurement [Member]    
Notes 45.0 48.3
USG DOE [Member] | Reported Value Measurement [Member]    
Notes 40.8 51.4
Senior Unsecured Bonds [Member]    
Senior Unsecured debt 205.7 199.4
Senior Unsecured Bonds [Member] | Estimate of Fair Value Measurement [Member]    
Senior Unsecured debt 205.7 199.4
Senior Unsecured Bonds [Member] | Reported Value Measurement [Member]    
Senior Unsecured debt 204.3 204.3
Senior Unsecured Loan [Member]    
Senior Unsecured debt 161.3 102.2
Senior Unsecured Loan [Member] | Estimate of Fair Value Measurement [Member]    
Senior Unsecured debt 161.3 102.2
Senior Unsecured Loan [Member] | Reported Value Measurement [Member]    
Senior Unsecured debt 150.0 100.0
Plumstriker Loan Agreement [Member]    
Loans 21.7  
Plumstriker Loan Agreement [Member] | Estimate of Fair Value Measurement [Member]    
Loans 21.7 0.0
Plumstriker Loan Agreement [Member] | Reported Value Measurement [Member]    
Loans $ 21.6 $ 0.0
v3.19.3.a.u2
Note 7 - Fair Value of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Revolving lines of credit $ 40.6 $ 159.0
Deposits 12.2 12.0
Commercial Paper [Member]    
Commercial paper 50.0  
Olkaria III OPIC [Member]    
Loans 202.1 211.8
Olkaria III Plant 4 Loan - DEG 2 [Member]    
Loans 43.8  
Olkaria III plant 1 Loan - DEG 3 [Member]    
Loans 38.8  
Platanares Loan - OPIC [Member]    
Loans 115.3 119.1
Amatitlan Loan [Member]    
Loans 26.4 29.9
OrCal Geothermal Inc [Member]    
Notes   19.0
OFC Senior Secured Notes [Member]    
Notes 210.9 214.5
Don A. Campbell 1 ("DAC1") [Member]    
Notes 78.5 78.8
USG Prudential - NV [Member]    
Notes 30.6 29.4
USG Prudential - ID [Member]    
Notes 18.6 18.6
USG DOE [Member]    
Notes 45.0 48.3
Senior Unsecured Bonds [Member]    
Senior Unsecured debt 205.7 199.4
Senior Unsecured Loan [Member]    
Senior Unsecured debt 161.3 102.2
Plumstriker Loan Agreement [Member]    
Loans 21.7  
Other Long-term Debt [Member]    
Senior Unsecured debt 16.3 5.4
Fair Value, Inputs, Level 1 [Member]    
Revolving lines of credit 0.0 0.0
Deposits 12.2 12.0
Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member]    
Commercial paper 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  
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] | OrCal Geothermal Inc [Member]    
Notes   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  
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 40.6 159.0
Deposits 0.0 0.0
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member]    
Commercial paper 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  
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 26.4 29.9
Fair Value, Inputs, Level 2 [Member] | OrCal Geothermal Inc [Member]    
Notes   0.0
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 21.7  
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  
Fair Value, Inputs, Level 3 [Member] | Olkaria III OPIC [Member]    
Loans 202.1 211.8
Fair Value, Inputs, Level 3 [Member] | Olkaria III Plant 4 Loan - DEG 2 [Member]    
Loans 43.8 47.2
Fair Value, Inputs, Level 3 [Member] | Olkaria III plant 1 Loan - DEG 3 [Member]    
Loans 38.8  
Fair Value, Inputs, Level 3 [Member] | Platanares Loan - OPIC [Member]    
Loans 115.3 119.1
Fair Value, Inputs, Level 3 [Member] | Amatitlan Loan [Member]    
Loans 0.0 0.0
Fair Value, Inputs, Level 3 [Member] | OrCal Geothermal Inc [Member]    
Notes   19.0
Fair Value, Inputs, Level 3 [Member] | OFC Senior Secured Notes [Member]    
Notes 210.9 214.5
Fair Value, Inputs, Level 3 [Member] | Don A. Campbell 1 ("DAC1") [Member]    
Notes 78.5 78.8
Fair Value, Inputs, Level 3 [Member] | USG Prudential - NV [Member]    
Notes 30.6 29.4
Fair Value, Inputs, Level 3 [Member] | USG Prudential - ID [Member]    
Notes 18.6 18.6
Fair Value, Inputs, Level 3 [Member] | USG DOE [Member]    
Notes 45.0 48.3
Fair Value, Inputs, Level 3 [Member] | Senior Unsecured Bonds [Member]    
Senior Unsecured debt 205.7 199.4
Fair Value, Inputs, Level 3 [Member] | Senior Unsecured Loan [Member]    
Senior Unsecured debt 161.3 102.2
Fair Value, Inputs, Level 3 [Member] | Plumstriker Loan Agreement [Member]    
Loans 0.0  
Fair Value, Inputs, Level 3 [Member] | Other Long-term Debt [Member]    
Senior Unsecured debt $ 16.3 $ 5.4
v3.19.3.a.u2
Note 8 - Property, Plant and Equipment and Construction-in-process (Details Textual) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jan. 22, 2014
Depreciation, Total $ 126.7 $ 114.4 $ 98.8  
Depreciation Net Of Amortization Of Cash Grant 7.3 6.4 $ 5.5  
Property, Plant and Equipment Including Construction In Progress, Net 1,841.4 1,696.4    
Property, Plant and Equipment, Cash Grant, Net 162.3 179.7    
Geotermica Platanares [Member]        
Property, Plant and Equipment Including Construction In Progress, Net $ 96.1 105.7    
Power Plant Usage Agreement Term 15 years      
Geothermie Bouillante SA (“GB”) [Member]        
Property, Plant and Equipment Including Construction In Progress, Net $ 24.5 23.9    
Orzunil I de Electricidad, Limitada [Member]        
Property, Plant and Equipment Including Construction In Progress, Net 10.3 14.6    
Ortitlan Limitada [Member]        
Property, Plant and Equipment Including Construction In Progress, Net $ 42.8 43.5    
Kenya Power and Lighting Co Limited [Member]        
Power Purchase Agreements Term 20 years      
Zunil Power Plant In Guatemala [Member] | Instituto Nacional de Electrificacion (INDE) [Member] | Orzunil I de Electricidad, Limitada [Member]        
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners       3.00%
ENEE [Member] | Geotermica Platanares [Member]        
Power Plant Usage Agreement Term 30 years      
EDF [Member] | Geothermie Bouillante SA (“GB”) [Member]        
Power Purchase Agreements Term 15 years      
Foreign Countries [Member]        
Property, Plant and Equipment Including Construction In Progress, Net $ 506.6 524.8    
KENYA | Power Plants [Member]        
Property, Plant and Equipment Including Construction In Progress, Net $ 284.5 $ 302.0    
v3.19.3.a.u2
Note 8 - Property, Plant and Equipment and Construction-in-process - Property, Plant and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Property, plant and equipment $ 3,225,949 $ 3,097,806
Asset retirement cost 19,824 11,448
Less accumulated depreciation (1,254,534) (1,138,228)
Property, plant and equipment, net 1,971,415 1,959,578
Land [Member]    
Property, plant and equipment 38,049 38,060
Leasehold Improvements [Member]    
Property, plant and equipment 7,757 5,718
Machinery and Equipment [Member]    
Property, plant and equipment 230,465 208,646
Office Equipment [Member]    
Property, plant and equipment 39,099 35,708
Vehicles [Member]    
Property, plant and equipment 8,021 22,074
Geothermal And Recovered Energy Generation Power Plants [Member] | UNITED STATES    
Property, plant and equipment 2,160,910 2,065,377
Geothermal And Recovered Energy Generation Power Plants [Member] | Foreign Countries [Member]    
Property, plant and equipment $ 721,824 $ 710,775
v3.19.3.a.u2
Note 8 - Property, Plant and Equipment and Construction-in-process - Construction-in-process (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Construction-in-process $ 376,555 $ 261,690    
Projects Under Exploration and Development [Member]        
Construction-in-process 84,637 70,958 $ 63,875 $ 54,447
Projects Under Exploration and Development [Member] | Up-front Bonus Lease Costs [Member]        
Construction-in-process 17,018 17,018 17,018 17,385
Projects Under Exploration and Development [Member] | Exploration and Development Costs [Member]        
Construction-in-process 66,916 53,237 46,154 36,359
Projects Under Exploration and Development [Member] | Interest Capitalized [Member]        
Construction-in-process 703 703 $ 703 $ 703
Projects Under Construction [Member]        
Construction-in-process 291,918 190,732    
Projects Under Construction [Member] | Up-front Bonus Lease Costs [Member]        
Construction-in-process 27,473 27,473    
Projects Under Construction [Member] | Interest Capitalized [Member]        
Construction-in-process 5,961 2,861    
Projects Under Construction [Member] | Drilling And Construction Costs [Member]        
Construction-in-process $ 258,484 $ 160,398    
v3.19.3.a.u2
Note 8 - Property, Plant and Equipment and Construction-in-process - Activity in Construction and Development (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Balance       $ 261,690         $ 261,690    
Write off of unsuccessful exploration costs $ 0 $ 0 $ 0 0 $ (3) $ 0 $ 0 $ (123) 0 $ (126) $ (1,796)
Balance 376,555       261,690       376,555 261,690  
Projects Under Exploration and Development [Member]                      
Balance       70,958       63,875 70,958 63,875 54,447
Cost incurred during the year                 17,215 7,209 11,224
Write off of unsuccessful exploration costs                   (126) (1,796)
Transfer of projects under exploration and development to projects under construction                 (3,536)    
Balance 84,637       70,958       84,637 70,958 63,875
Projects Under Exploration and Development [Member] | Up-front Bonus Lease Costs [Member]                      
Balance       17,018       17,018 17,018 17,018 17,385
Cost incurred during the year                 0 0 0
Write off of unsuccessful exploration costs                   0 (367)
Transfer of projects under exploration and development to projects under construction                 0    
Balance 17,018       17,018       17,018 17,018 17,018
Projects Under Exploration and Development [Member] | Exploration and Development Costs [Member]                      
Balance       53,237       46,154 53,237 46,154 36,359
Cost incurred during the year                 17,215 7,209 11,224
Write off of unsuccessful exploration costs                   (126) (1,429)
Transfer of projects under exploration and development to projects under construction                 (3,536)    
Balance 66,916       53,237       66,916 53,237 46,154
Projects Under Exploration and Development [Member] | Interest Capitalized [Member]                      
Balance       703       703 703 703 703
Cost incurred during the year                 0 0 0
Write off of unsuccessful exploration costs                   0 0
Transfer of projects under exploration and development to projects under construction                 0    
Balance 703       703       703 703 703
Construction in Progress [Member]                      
Balance       190,732       229,667 190,732 229,667 252,262
Cost incurred during the year                 267,237 219,610 239,226
Transfer of projects under exploration and development to projects under construction                 3,536    
Balance 291,918       190,732       291,918 190,732 229,667
Transfer of completed projects to property, plant and equipment                 (134,152) (261,833) (261,821)
Cost write off                   (1,380)  
Fair value of projects under construction acquired in a business combination                   4,668  
Insurance recoveries                 (35,435)    
Construction in Progress [Member] | Up-front Bonus Lease Costs [Member]                      
Balance       27,473       27,473 27,473 27,473 37,713
Cost incurred during the year                 0 0 0
Transfer of projects under exploration and development to projects under construction                 0    
Balance 27,473       27,473       27,473 27,473 27,473
Transfer of completed projects to property, plant and equipment                 0 0 (10,240)
Cost write off                   0  
Fair value of projects under construction acquired in a business combination                   0  
Insurance recoveries                 0    
Construction in Progress [Member] | Drilling And Construction Costs [Member]                      
Balance       160,398       198,943 160,398 198,943 202,211
Cost incurred during the year                 264,137 219,610 231,926
Transfer of projects under exploration and development to projects under construction                 3,536    
Balance 258,484       160,398       258,484 160,398 198,943
Transfer of completed projects to property, plant and equipment                 (134,152) (261,443) (235,194)
Cost write off                   (1,380)  
Fair value of projects under construction acquired in a business combination                   4,668  
Insurance recoveries                 (35,435)    
Construction in Progress [Member] | Interest Capitalized [Member]                      
Balance       $ 2,861       $ 3,251 2,861 3,251 12,338
Cost incurred during the year                 3,100 0 7,300
Transfer of projects under exploration and development to projects under construction                 0    
Balance $ 5,961       $ 2,861       5,961 2,861 3,251
Transfer of completed projects to property, plant and equipment                 0 (390) $ (16,387)
Cost write off                   0  
Fair value of projects under construction acquired in a business combination                   $ 0  
Insurance recoveries                 $ 0    
v3.19.3.a.u2
Note 9 - Intangible Assets and Goodwill (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Finite-Lived Intangible Assets, Net, Ending Balance $ 186,220               $ 186,220    
Amortization of Intangible Assets, Total                 13,300 $ 11,200 $ 6,900
Increase (Decrease) in Intangible Assets, Current                 0 127,000 35,600
Finite Lived Intangible Assets, Write off 0       $ 0       0 0 0
Goodwill, Ending Balance 20,140       19,950       20,140 19,950 21,037
Goodwill, Impairment Loss 0 $ 0 $ 0 $ 0 13,464 $ 0 $ 0 $ 0 0 13,464 0
Storage and Energy Management Service [Member]                      
Goodwill, Impairment Loss                   13,500  
Other Segments [Member]                      
Goodwill, Impairment Loss                 0 0 $ 0
Power Purchase Agreements and Intangible Assets Related to Storage Activities [Member]                      
Finite-Lived Intangible Assets, Net, Ending Balance 186,200       199,900       186,200 199,900  
Finite-Lived Intangible Assets, Accumulated Amortization 74,100       61,500       74,100 61,500  
Intangible Assets Related to Storage Activities [Member]                      
Finite-Lived Intangible Assets, Net, Ending Balance 30,200       32,200       30,200 32,200  
Finite-Lived Intangible Assets, Accumulated Amortization $ 5,400       $ 3,400       $ 5,400 $ 3,400  
v3.19.3.a.u2
Note 9 - Intangible Assets and Goodwill - Estimated Future Amortization Expense (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
2020 $ 12,983
2021 12,983
2022 12,729
2023 12,610
2024 11,255
Thereafter 123,660
Total $ 186,220
v3.19.3.a.u2
Note 9 - Intangible Assets and Goodwill - Goodwill (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Goodwill       $ 19,950       $ 21,037 $ 19,950 $ 21,037  
Goodwill acquired                 0 12,710  
Goodwill impairment charge $ 0 $ 0 $ 0 $ 0 $ (13,464) $ 0 $ 0 $ 0 0 (13,464) $ 0
Translation differences                 190 (333)  
Goodwill $ 20,140       $ 19,950       $ 20,140 $ 19,950 $ 21,037
v3.19.3.a.u2
Note 10 - Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
Trade payable $ 73,271   $ 56,299
Salaries and other payroll costs 24,364   20,188
Customer advances 2,092   918
Accrued interest 6,321   5,914
Income tax payable 11,344   8,436
Property tax payable 3,033   2,999
Scheduling and transmission 2,264   595
Royalty accrual 6,457   4,610
Deferred revenues 2,755   18,402
Warranty accrual 3,245   4,552
Other 9,466   9,551
Total 141,857 $ 113,502 116,362
Deferred Revenue [Member]      
Deferred revenues $ 0   $ 2,300
v3.19.3.a.u2
Note 11 - Long-term Debt, Credit Agreements and Commercial Paper (Details Textual)
$ in Thousands
 1 Months Ended 12 Months Ended
Jul. 03, 2019
USD ($)
May 30, 2019
Mar. 25, 2019
USD ($)
Mar. 22, 2018
USD ($)
Dec. 21, 2016
USD ($)
Nov. 29, 2016
USD ($)
Jul. 31, 2015
USD ($)
MWh
Nov. 30, 2013
USD ($)
Sep. 26, 2013
Feb. 28, 2013
USD ($)
Nov. 30, 2012
USD ($)
Feb. 29, 2012
Oct. 31, 2019
USD ($)
Oct. 31, 2018
USD ($)
MWh
May 31, 2016
USD ($)
Jun. 30, 2014
USD ($)
May 31, 2013
USD ($)
Nov. 30, 2012
USD ($)
Oct. 31, 2011
USD ($)
Aug. 31, 2011
USD ($)
Dec. 31, 2005
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
May 04, 2019
USD ($)
Apr. 29, 2019
Apr. 09, 2019
USD ($)
Apr. 04, 2019
USD ($)
Jan. 04, 2019
USD ($)
May 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Oct. 20, 2016
USD ($)
Sep. 30, 2016
Aug. 29, 2014
USD ($)
Aug. 23, 2012
USD ($)
Sep. 30, 2011
USD ($)
Letters of Credit Outstanding, Amount                                             $ 213,800                            
Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio                                             2.99                            
Proceeds from Issuance of Commercial Paper $ 50,000                                           $ 50,000 $ 0 $ 0                        
Commercial Paper                                             50,000 0                          
Stockholders' Equity Attributable to Parent, Ending Balance                                             $ 1,392,420 1,319,837                          
Percentage Of Company Assets                                             46.60%                            
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance                                             $ 1,515,410 1,445,096 $ 1,295,700             $ 1,168,272          
Payments of Dividends, Total                                             22,400                            
Commercial Paper [Member]                                                                          
Commercial Paper                                             $ 50,000                            
Covenant Requirement Minimum [Member]                                                                          
Amount Available For Dividend Distribution Percent Of Cumulative Net Income                                             35                            
Stockholders' Equity Attributable to Parent, Ending Balance                                             $ 600,000                            
Percentage Of Company Assets                                             25.00%                            
Minimum [Member] | Commercial Paper [Member]                                                                          
Debt Instrument, Term 90 days                                                                        
Maximum [Member] | Commercial Paper [Member]                                                                          
Debt Instrument, Term 5 years                                                                        
Maximum [Member] | Covenant Requirement Minimum [Member]                                                                          
Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio                                             6                            
London Interbank Offered Rate (LIBOR) [Member] | Commercial Paper [Member]                                                                          
Debt Instrument, Basis Spread on Variable Rate 0.75%                                                                        
Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited1 [Member]                                                                          
Debt Instrument, Term             12 years                                                            
Debt Instrument, Face Amount             $ 42,000                                                            
Power Utilization | MWh             20                                                            
Debt Instrument, Payment Frequency             144 months                                                            
Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited1 [Member] | Covenant Requirement Minimum [Member]                                                                          
Debt Services, Coverage Ratio             1.15                                                            
Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited1 [Member] | Covenant Required to not Limit Dividends [Member]                                                                          
Debt Services, Coverage Ratio             1.25                                                            
Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited1 [Member] | Minimum [Member]                                                                          
Debt Instrument, Prepayment Premium Percentage             0.50%                                                            
Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited1 [Member] | Maximum [Member]                                                                          
Debt Instrument, Prepayment Premium Percentage             1.00%                                                            
Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Guaranteed [Member]                                                                          
Debt Instrument, Basis Spread on Variable Rate             4.35%                                                            
Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Not Guaranteed [Member]                                                                          
Debt Instrument, Basis Spread on Variable Rate             4.75%                                                            
Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]                                                                          
Debt Instrument, Basis Spread on Variable Rate             1.25%                                                            
Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited [Member]                                                                          
Debt Instrument, Face Amount                                                                       $ 310,000  
Long-term Debt, Gross                                             $ 26,300                            
Loan Agreement With OPIC [Member]                                                                          
Debt Services, Coverage Ratio                                             1.7                            
Long-term Debt, Gross                                             $ 192,600                            
Debt Instrument, Prepayment Premium, First Two Years, Percentage                                             2.00%                            
Debt Instrument, Prepayment Premium, After Year 3, Percentage                                             1.00%                            
Restricted Cash and Cash Equivalents, Current, Total                                             $ 2,500 $ 2,600                          
Letters of Credit Outstanding, Amount                                             15,600                            
Loan Agreement With OPIC [Member] | Tranche One [Member]                                                                          
Debt Instrument, Face Amount                     $ 85,000             $ 85,000                                      
Long-term Debt, Gross                                             51,900                            
Prepayment Deposit On Debt                                   20,500                                      
Loan Agreement With OPIC [Member] | Tranche Two [Member]                                                                          
Long-term Debt, Gross                     135,000             135,000         $ 111,200                            
Proceeds from Issuance of Debt                   $ 45,000                                                      
Debt Instrument, Interest Rate, Stated Percentage                                             6.29%                            
Loan Agreement With OPIC [Member] | Tranche Three [Member]                                                                          
Debt Instrument, Face Amount                     45,000             45,000                                      
Long-term Debt, Gross                                             $ 29,600                            
Proceeds from Issuance of Debt               $ 45,000                                                          
Debt Instrument, Interest Rate, Stated Percentage                                             6.12%                            
Loan Agreement With OPIC [Member] | Threshold For Loan Default [Member]                                                                          
Debt Services, Coverage Ratio                                             1.1                            
Loan Agreement With OPIC [Member] | Minimum [Member] | Historical [Member]                                                                          
Debt Services, Coverage Ratio                                             1.4                            
Olkaria III DEG [Member] | Tranche One [Member]                                                                          
Debt Instrument, Face Amount                     180,000             $ 180,000                                      
Prepayment Penalty Charges                     $ 1,500                                                    
Platanares Finance Agreement [Member] | OPIC [Member]                                                                          
Long-term Debt, Gross                                             $ 104,500                            
Prepayment Deposit On Debt                                             $ 5,000                            
Proceeds from Issuance of Debt                           $ 114,700                                              
Debt Instrument, Interest Rate, Stated Percentage                           7.02%                                              
Debt Agreement, Maximum Borrowing Capacity                           $ 124,700                                              
Debt Instrument, Prepayment Premium Percentage, First or Second Year                                             2.00%                            
Debt Instrument, Prepayment Premium Percentage, Third Year                                             1.00%                            
Platanares Finance Agreement [Member] | Historical [Member] | OPIC [Member]                                                                          
Debt Services, Coverage Ratio                                             1.1                            
Platanares Finance Agreement [Member] | Debt Service Reserve [Member] | OPIC [Member]                                                                          
Restricted Cash and Cash Equivalents, Current, Total                                             $ 3,600                            
Letters of Credit Outstanding, Amount                                             8,100                            
Platanares Finance Agreement [Member] | Well Drilling Reserve [Member] | OPIC [Member]                                                                          
Restricted Cash and Cash Equivalents, Current, Total                                             0                            
Letters of Credit Outstanding, Amount                                             $ 2,000                            
Platanares Finance Agreement [Member] | Threshold For Loan Default [Member] | OPIC [Member]                                                                          
Debt Services, Coverage Ratio                                             1.2                            
Platanares Finance Agreement [Member] | Maximum [Member] | Forecast [Member] | OPIC [Member]                                                                          
Proceeds from Issuance of Debt                                           $ 10,000                              
Platanares [Member]                                                                          
Current Power Generation | MWh                           35                                              
OrCal Senior Secured Notes [Member]                                                                          
Debt Instrument, Face Amount                                         $ 165,000                                
Proceeds from Issuance of Debt                                         $ 161,100                                
Debt Instrument, Interest Rate, Stated Percentage                                         6.21%                                
Debt Instrument, Issuance Costs                                         $ 3,900                                
Repayments of Secured Debt                         $ 15,000                                                
Payment for Debt Extinguishment or Debt Prepayment Cost                         $ 400                                                
OFC Two Senior Secured Notes [Member]                                                                          
Debt Instrument, Face Amount                                                                         $ 350,000
Government Guarantee Percent                                             80.00%                            
Debtor-in-Possession Financing, Letters of Credit Outstanding                                             $ 19,500                            
OFC Two Senior Secured Notes [Member] | Senior Notes [Member]                                                                          
Secured Debt, Total                                             203,000                            
OFC Two Senior Secured Notes [Member] | Wholly Owned Subsidiaries With Project Debt [Member]                                                                          
Debt Instrument, Face Amount                                                                     $ 140,000    
Debt Instrument, Interest Rate, Stated Percentage                                                                     4.61%    
OFC Two Senior Secured Notes [Member] | Phase One Series A Senior Notes [Member]                                                                          
Debt Instrument, Face Amount                                     $ 151,700                                    
Proceeds from Issuance of Debt                                     $ 141,100                                    
Debt Instrument, Interest Rate, Stated Percentage                                     4.687%                                    
Repayments of Long-term Debt, Total                               $ 4,300                                          
Other Reserves                                             $ 0                       $ 28,000    
OFC Two Senior Secured Notes [Member] | Maximum [Member] | Historical [Member]                                                                          
Debt Services, Coverage Ratio                                             1.2                            
OFC Two Senior Secured Notes [Member] | Maximum [Member] | Projected [Member]                                                                          
Debt Services, Coverage Ratio                                             1.5                            
Don A. Cambell Senior Secured Notes [Member]                                                                          
Debt Instrument, Face Amount           $ 92,500                                                              
Proceeds from Issuance of Debt           $ 87,100                                                              
Debt Instrument, Interest Rate, Stated Percentage           4.03%                                                              
Secured Debt, Total                                             $ 78,200                            
Debt Instrument, Minimum Prepay Amount           $ 2,000                                                              
Don A. Cambell Senior Secured Notes [Member] | Minimum [Member]                                                                          
Debt Services, Coverage Ratio           1.20                                                              
Prudential Capital Group Agreement [Member]                                                                          
Debt Instrument, Term                             7 years                                            
Debt Instrument, Face Amount                             $ 20,000                                            
Long-term Debt, Gross                                             18,300                            
Debt Instrument, Interest Rate, Stated Percentage                             5.80%                                            
Line of Credit Facility, Maximum Borrowing Capacity                             $ 50,000                                            
Debt Instrument, Remaining Balance                             $ 16,000                                            
DOE Loan Guarantee [Member]                                                                          
Debt Instrument, Term                                       21 years 6 months                                  
Long-term Debt, Gross                                             44,900                            
Debt Instrument, Interest Rate, Stated Percentage                                       2.60%                                  
Line of Credit Facility, Maximum Borrowing Capacity                                       $ 96,800                                  
Prudential Capital Purchase Agreement [member]                                                                          
Debt Instrument, Term                 24 years                                                        
Long-term Debt, Gross                                             27,100                            
Debt Instrument, Interest Rate, Stated Percentage                 6.75%                                                        
Senior Unsecured Bonds [Member]                                                                          
Debt Instrument, Face Amount                                             67,000                            
Proceeds from Issuance of Unsecured Debt                                             250,000                            
Senior Unsecured Bonds [Member] | Series 3 Bonds [Member]                                                                          
Debt Instrument, Face Amount                                             137,000                            
Senior Unsecured Bonds, Series 2 [Member]                                                                          
Debt Instrument, Interest Rate, Stated Percentage                                                                   3.70%      
Senior Unsecured Bonds, Series 3 [Member]                                                                          
Debt Instrument, Interest Rate, Stated Percentage                                                                   4.45%      
Migdal Loan [Member]                                                                          
Debt Instrument, Face Amount       $ 100,000                                                                  
Debt Instrument, Interest Rate, Stated Percentage       4.80%                                                                  
Debt Instrument, Periodic Payment, Total       $ 4,200                                                                  
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid       $ 37,000                                                                  
Debt Instrument Increase in Stated Interest Rate if Rating is Downgraded to ILA Negative       0.50%                                                                  
Debt Instrument Increase in Stated Interest Rate Each Additional Downgrade       0.25%                                                                  
Debt Instrument Decrease in Stated Interest Rate for Each Rating Upgrade       0.25%                                                                  
Debt to EBITDA Ratio Threshold for Rate Increase       4.5                                                                  
Debt Instrument Increase in Stated Interest Rate if Debt to EBITDA Ratio Exceeds Threshold       0.50%                                                                  
Debt to EBITDA Ratio Requirement       6                                                                  
Stockholders Equity, Debt Covenant, Minimum Threshold       $ 650,000                                                                  
Stockholders Equity to Total Assets, Ratio       25.00%                                                                  
Stockholders Equity, Debt Covenant, Minimum Threshold to Pay Dividends       $ 800,000                                                                  
Dividends to Net Income, Ratio       50.00%                                                                  
Migdal Loan [Member] | Minimum [Member]                                                                          
Debt Instrument, Interest Rate, Stated Percentage       4.80%                                                                  
Migdal Loan [Member] | Maximum [Member]                                                                          
Debt Instrument, Increase in Stated Interest Rate       1.00%                                                                  
Additional Migdal Loan [Member]                                                                          
Debt Instrument, Face Amount     $ 50,000                                                                    
Debt Instrument, Interest Rate, Stated Percentage     4.60%                                                                    
Debt Instrument, Periodic Payment, Total     $ 2,100                                                                    
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid     $ 18,500                                                                    
DEG 2 Facility Agreement [Member]                                                                          
Debt Instrument, Interest Rate, Stated Percentage         6.28%                                                                
Debt Instrument, Minimum Prepay Amount         $ 5,000                                                                
Line of Credit Facility, Maximum Borrowing Capacity                                                                 $ 50,000        
Proceeds from Lines of Credit, Total         $ 50,000                                                                
Long-term Line of Credit, Total                                             42,500                            
DEG 3 Loan Agreement [Member]                                                                          
Long-term Debt, Gross                                             37,100                            
Debt Instrument, Interest Rate, Stated Percentage                                                           6.04%              
DEG 3 Loan Agreement [Member] | OrPower 4, Inc [Member]                                                                          
Debt Instrument, Face Amount                                                           $ 41,500              
Plumstriker Loan Agreement [Member] | Plumstriker and its Two Subsidiaries [Member]                                                                          
Debt Instrument, Face Amount                                                   $ 23,500                      
Long-term Debt, Gross                                             21,600                            
Debt Instrument, Equal Quarterly Principal Installments, Percentage of Loan   1.25%                                                                      
Plumstriker Loan Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Plumstriker and its Two Subsidiaries [Member]                                                                          
Debt Instrument, Basis Spread on Variable Rate   3.50%                                                                      
Loan Agreement with Société Général [Member] | Guadeloupe 1 [Member]                                                                          
Debt Instrument, Face Amount                                                       $ 8,900                  
Long-term Debt, Gross                                             8,400                            
Debt Instrument, Interest Rate, Stated Percentage                                                       1.52%                  
Loan Agreement with Bpifrance [Member] | Guadeloupe 1 [Member]                                                                          
Debt Instrument, Face Amount                                                         $ 8,900                
Long-term Debt, Gross                                             9,000                            
Debt Instrument, Interest Rate, Stated Percentage                                                     1.93%                    
Credit Agreements With Eight Commercial Banks [Member]                                                                          
Letters of Credit Outstanding, Amount                                             213,700                            
Line of Credit Facility, Maximum Borrowing Capacity                                             505,000                            
Long-term Line of Credit, Total                                             40,600                            
Credit Agreements With Eight Commercial Banks [Member] | Extensions of Credit in The Form of Loans and/or Letters of Credit [Member]                                                                          
Line of Credit Facility, Maximum Borrowing Capacity                                             260,000                            
Credit Agreements With Eight Commercial Banks [Member] | Letter of Credit [Member]                                                                          
Line of Credit Facility, Maximum Borrowing Capacity                                             245,000                            
Credit Agreements With Eight Commercial Banks [Member] | Union Bank, N.A. [Member]                                                                          
Line of Credit Facility, Maximum Borrowing Capacity                                             60,000                            
Credit Agreements With Eight Commercial Banks [Member] | HSBC Bank USA, N.A. [Member]                                                                          
Line of Credit Facility, Maximum Borrowing Capacity                                             $ 35,000                            
Union Bank, N.A. [Member]                                                                          
Debt Services, Coverage Ratio                                             2.87                            
Letters of Credit Outstanding, Amount                                             $ 59,500                            
Line of Credit Facility, Maximum Borrowing Capacity                                             $ 60,000                            
Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio                                             2.1                            
Amount Available For Dividend Distribution Percent Of Cumulative Net Income                       2.0                     1.0                            
Union Bank, N.A. [Member] | Minimum [Member]                                                                          
Debt Services, Coverage Ratio                       1.35                                                  
Union Bank, N.A. [Member] | Maximum [Member]                                                                          
Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio                       4.5                                                  
HSBC Bank USA, N.A. [Member]                                                                          
Debt Services, Coverage Ratio                                             2.87                            
Letters of Credit Outstanding, Amount                                             $ 25,500                            
Line of Credit Facility, Maximum Borrowing Capacity                                             $ 35,000                            
Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio                                             2.1                            
Amount Available For Dividend Distribution Percent Of Cumulative Net Income                                             1.0                            
Line of Credit Facility, Borrowing Capacity Increase                                 $ 10,000                                        
HSBC Bank USA, N.A. [Member] | Minimum [Member]                                                                          
Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio                                 1.35                                        
HSBC Bank USA, N.A. [Member] | Maximum [Member]                                                                          
Debt To Earnings Before Interest Tax Depreciation And Amortization Ratio                                 4.5                                        
Amount Available For Dividend Distribution Percent Of Cumulative Net Income                                 2.0                                        
Surety Agreement [Member] | Chubb [Member]                                                                          
Surety Bonds Available                                                             $ 200,000            
Surety Bonds Outstanding                                             $ 144,800                            
v3.19.3.a.u2
Note 11 - Long-term Debt, Credit Agreements and Commercial Paper - Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Limited Resource $ 732,461 $ 775,547
Less current portion (58,932) (63,180)
Non current portion 673,529 712,367
Recourse Debt 474,514 510,832
Less current portion (117,122) (164,000)
Non current portion 357,392 346,832
Other Loans, Limited and Non-recourse [Member]    
Non-Recourse Debt 8,997 6,241
Loan Agreement With OPIC the Olkaria III Power Plant [Member]    
Non-Recourse Debt 192,646 210,641
Platanares Loan - OPIC [Member]    
Non-Recourse Debt 104,459 112,652
Loan Agreement with Banco Industrial S.A. and Westrust Bank (International) Limited [Member]    
Non-Recourse Debt 26,250 29,750
Plumstriker Loan Agreement [Member]    
Non-Recourse Debt 21,615 0
Other Loans, Limited Resource [Member]    
Non-Recourse Debt 8,367 0
Limited Resource 88,840 96,482
OrCal Geothermal Inc [Member]    
Non-Recourse Debt   18,652
Don A. Campbell 1 ("DAC1") [Member]    
Non-Recourse Debt 78,247 83,319
Ormat Funding Corp [Member]    
Limited Resource 203,040 217,810
Senior Unsecured Bonds [Member]    
Recourse Debt 204,332 204,332
Migdal Loan [Member]    
Recourse Debt 150,000 100,000
Olkaria III DEG [Member]    
Recourse Debt 79,632 47,500
Revolving Credit Lines With Banks [Member]    
Recourse Debt $ 40,550 $ 159,000
v3.19.3.a.u2
Note 11 - Long-term Debt, Credit Agreements and Commercial Paper - Future Minimum Payments Under Long-term Obligations (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
2020 $ 135,504
2021 76,259
2022 220,677
2023 98,982
2024 78,600
Thereafter 557,890
Total $ 1,167,912
v3.19.3.a.u2
Note 12 - Puna Power Plant Transactions (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2005
Dec. 31, 2018
Lease Term   31 years  
Deferred Lease Income, before Accumulated Amortization   $ 83,000  
Lease Payment Term   23 years  
Deferred Costs, Leasing, Gross     $ 4,200
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total     19,700
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation     $ 33,100
Puna Geothermal Power Plant [Member]      
Operating Leases, Future Minimum Payments Due, Total $ 0    
Amended and Restated PPA [Member]      
Price Per MWh Under 227,000 MWh $ 70    
Price Per MWh Over 227,000 MWh $ 40    
Long-term Contract for Purchase of Electric Power, Estimated Annual Cost $ 19,500    
Loss on Contract Termination $ 20,500    
v3.19.3.a.u2
Note 13 - Tax Monetization Transactions (Details Textual)
$ in Thousands
 12 Months Ended 72 Months Ended
Dec. 31, 2022
Aug. 14, 2019
USD ($)
MWh
May 17, 2018
USD ($)
MWh
Oct. 31, 2017
USD ($)
Jul. 10, 2017
USD ($)
Dec. 16, 2016
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2022
USD ($)
Proceeds from Noncontrolling Interests             $ 3,346 $ 4,134 $ 2,017  
Payments to Acquire Additional Interest in Subsidiaries             $ (0) (0) 2,400  
OPC LLC [Member]                    
Noncontrolling Interest, Decrease (Increase) from Redemptions or Purchase of Interests               6,500    
Adjustment to Additional Paid in Capital, from Redemptions or Purchase of Interests               $ 8,500    
Ormat Nevada ORTP LLC [Member]                    
Noncontrolling Interest, Decrease (Increase) from Redemptions or Purchase of Interests                 7,000  
Adjustment to Additional Paid in Capital, from Redemptions or Purchase of Interests                 $ 2,900  
Opal Geo LLC [Member]                    
Percentage Of Distributable Cash to Controlling Interest           97.50%        
Percentage of Income (Loss), Gain, Deduction and Credit Allocated to Controlling Interests           1.00%        
Percentage of Income (Loss), Gain, Deduction and Credit Allocated to Controlling Interests, PTCs Not Available           95.00%        
Opal Geo LLC [Member] | Forecast [Member]                    
Percentage of Income (Loss), Gain, Deduction and Credit Allocated to Controlling Interests 95.00%                  
Opal Geo LLC [Member] | Capital Unit, Class A [Member]                    
Percentage Of Ownership Interests           100.00%        
Opal Geo LLC [Member] | JPM Capital Corporation [Member]                    
Proceeds from Noncontrolling Interests           $ 62,100        
Percentage Of Distributable Cash to Nontrolling Interests           2.50%        
Percentage of Income (Loss), Gain, Deduction and Credit Allocated to Noncontrolling Interests           99.00%        
Percentage of Income (Loss), Gain, Deduction and Credit Allocated to Noncontrolling Interests, PTCs Not Available           5.00%        
Opal Geo LLC [Member] | JPM Capital Corporation [Member] | Noncontrolling Interest [Member]                    
Proceeds from Noncontrolling Interests           $ 3,700        
Opal Geo LLC [Member] | JPM Capital Corporation [Member] | Allocation to Liability Associated With Sale of Tax Benefits [Member]                    
Proceeds from Noncontrolling Interests           $ 58,500        
Opal Geo LLC [Member] | JPM Capital Corporation [Member] | Forecast [Member]                    
Proceeds from Noncontrolling Interests                   $ 21,000
Percentage Of Distributable Cash to Nontrolling Interests 100.00%                  
Percentage of Income (Loss), Gain, Deduction and Credit Allocated to Noncontrolling Interests 5.00%                  
Opal Geo LLC [Member] | JPM Capital Corporation [Member] | Capital Unit, Class B [Member]                    
Percentage of Equity Interest Sold           100.00%        
Ormat Nevada ORTP LLC [Member] | ORTP Transaction [Member]                    
Payments to Acquire Additional Interest in Subsidiaries       $ 1,900            
Payments to Acquire Interest in Joint Venture         $ 2,400          
DAC 2 [Member]                    
Percentage Of Ownership Interests           63.25%        
Other Geothermal Power Plants [Member]                    
Percentage Of Ownership Interests           100.00%        
OPC LLC [Member] | JPM Capital Corporation [Member] | Capital Unit, Class B [Member]                    
Fair Value of Equity Interest Sold           $ 3,000        
Tungsten Mountain [Member]                    
Power Generated Under Contract | MWh     26              
Parternship Agreement, Initial Purchase Price     $ 33,400              
Partnership Agreement, Expected Additional Installments     $ 13,000              
Partnership Agreement, Percentage of Distributable Cash Flow Generated     97.50%              
Partnership Agreement, Percentage of Taxable Income     95.00%              
Partnership Agreement, Percentage of Distributable Cash Flow Generated to Private Investor if Target Return Not Reached     100.00%              
Partnership Agreement, Percentage of Taxable Income to Private Investor if Target Return Not Reached     99.00%              
Partnership Agreement, Percentage of Taxable Income to Private Investor if Target Return Not Reached, No Longer Generating PTCs     5.00%              
McGinness Plant [Member]                    
Power Generated Under Contract | MWh   48                
Parternship Agreement, Initial Purchase Price   $ 59,300                
Partnership Agreement, Expected Additional Installments   $ 9,000                
Partnership Agreement, Percentage of Distributable Cash Flow Generated   97.50%                
Partnership Agreement, Percentage of Taxable Income   95.00%                
Partnership Agreement, Percentage of Distributable Cash Flow Generated to Private Investor if Target Return Not Reached   100.00%                
Partnership Agreement, Percentage of Taxable Income to Private Investor if Target Return Not Reached   99.00%                
Partnership Agreement, Percentage of Taxable Income to Private Investor if Target Return Not Reached, No Longer Generating PTCs   5.00%                
McGinness Plant [Member] | Maximum [Member]                    
Partnership Agreement, Expected Additional Installments   $ 22,000                
v3.19.3.a.u2
Note 14 - Asset Retirement Obligations - Reconciliation of the Beginning and Ending Aggregate Carrying Amount of Asset Retirement Obligation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Balance at beginning of year $ 39,475 $ 27,110  
Revision in estimated cash flows (335) (258)  
Liabilities incurred and acquired 8,334 10,149  
Accretion expense 2,709 2,474 $ 1,874
Balance at end of year $ 50,183 $ 39,475 $ 27,110
v3.19.3.a.u2
Note 15 - Stock-based Compensation (Details Textual) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Nov. 07, 2019
May 07, 2018
May 31, 2012
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total       $ 8.4     $ 8.4  
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition             1 year 2 months 12 days  
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Annual Forfeiture Rate       10.70% 5.30% 1.10%    
Increase (Decrease) In Stock Based Compensation Expense Due To Forfeitures, Percent       101.90% 381.80% (89.30%)    
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Dividends Growth Rate             20.00%  
Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Weighted Average Expected Dividend Rate             0.70%  
Share Price       $ 74.52 $ 52.30   $ 74.52 $ 52.30
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number       479,402 846,215   479,402 846,215
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value             $ 19.3 $ 5.2
Weighted Average [Member]                
Share Price       $ 65.04 $ 55.58   $ 65.04 $ 55.58
2012 Stock Incentive Plan [Member] | Minimum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period     6 years          
2012 Stock Incentive Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period     10 years          
2012 Stock Incentive Plan [Member] | Stock Options And Stock Appreciation Rights [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized     4,000,000          
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period     1 year          
2012 Stock Incentive Plan [Member] | Stock Options And Stock Appreciation Rights [Member] | Share-based Payment Arrangement, Tranche One [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage     25.00%          
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period     24 months          
2012 Stock Incentive Plan [Member] | Stock Options And Stock Appreciation Rights [Member] | Share-based Payment Arrangement, Tranche One [Member] | Director [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage     100.00%          
2012 Stock Incentive Plan [Member] | Stock Options And Stock Appreciation Rights [Member] | Share-based Payment Arrangement, Tranche Two [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage     25.00%          
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period     36 months          
2012 Stock Incentive Plan [Member] | Stock Options And Stock Appreciation Rights [Member] | Share-based Payment Arrangement, Tranche Three [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage     50.00%          
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period     48 months          
2012 Stock Incentive Plan [Member] | Stock Options And Stock Appreciation Rights [Member] | Share-based Compensation Award, Tranche Four [Member] | Senior Management [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage     25.00%          
2012 Stock Incentive Plan [Member] | Share-based Payment Arrangement, Option [Member] | Non Employee Director [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period     1 year          
The 2018 Incentive Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized   5,000,000            
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant       3,584,485     3,584,485  
The 2018 Incentive Plan [Member] | Stock Appreciation Rights and Restricted Stock Units [Member] | Minimum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period   6 years            
The 2018 Incentive Plan [Member] | Stock Appreciation Rights and Restricted Stock Units [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period   10 years            
The 2018 Incentive Plan [Member] | Stock Appreciation Rights and Restricted Stock Units [Member] | Share-based Payment Arrangement, Tranche One [Member] | Director [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage   100.00%            
The 2018 Incentive Plan [Member] | Stock Appreciation Rights and Restricted Stock Units [Member] | Share-based Payment Arrangement, Tranche One [Member] | Employees [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage   50.00%            
The 2018 Incentive Plan [Member] | Stock Appreciation Rights and Restricted Stock Units [Member] | Share-based Payment Arrangement, Tranche Two [Member] | Employees [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage   25.00%            
The 2018 Incentive Plan [Member] | Stock Appreciation Rights (SARs) [Member] | Director [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period 6 years              
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 11,495              
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercise Price $ 76.87              
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value             $ 19.8  
The 2018 Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Director [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 9,420              
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value             $ 76.4  
The 2012 and 2004 Incentive Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant       0     0  
v3.19.3.a.u2
Note 15 - Stock-based Compensation - Compensation Related to Stock-based Awards (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Total stock-based compensation expense $ 9,359 $ 10,218 $ 8,760
Tax effect on stock-based compensation expense 736 668 604
Net effect of stock-based compensation expense 8,623 9,550 8,156
Cost of Sales [Member]      
Total stock-based compensation expense 3,633 3,488 3,369
Selling and Marketing Expense [Member]      
Total stock-based compensation expense 4,810 792 452
General and Administrative Expense [Member]      
Total stock-based compensation expense $ 916 $ 5,938 $ 4,939
v3.19.3.a.u2
Note 15 - Stock-based Compensation - Fair Value of Stock-based Award on the Date of Grant (Details)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Risk-free interest rates 1.80% 2.80% 1.90%
Expected lives (in weighted average years) (Year) 3 years 6 months 3 years 6 months 3 years 1 month 6 days
Dividend yield 0.70% 0.90% 0.62%
Expected volatility (weighted average) 25.10% 25.50% 27.20%
Forfeiture rate for directors 8.60% 3.10%  
v3.19.3.a.u2
Note 15 - Stock-based Compensation - Fair Value of Stock-based Award Using Exercise Multiple-based Lattice SAR Pricing Model Assumptions (Details)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Risk-free interest rate 1.80% 2.80% 1.90%
Expected life (in years) (Year) 3 years 6 months 3 years 6 months 3 years 1 month 6 days
Dividend yield 0.70% 0.90% 0.62%
Expected volatility 25.10% 25.50% 27.20%
Forfeiture rate for directors 8.60% 3.10%  
Director [Member] | The 2018 Incentive Plan [Member] | Stock Appreciation Rights (SARs) [Member]      
Risk-free interest rate 1.79%    
Expected life (in years) (Year) 3 years 6 months    
Dividend yield 0.57%    
Expected volatility 24.80%    
Forfeiture rate for directors 0.00%    
Sub-Optimal Exercise Factor for directors 2.8    
v3.19.3.a.u2
Note 15 - Stock-based Compensation - Summary of the Status of the 2012 Incentive Plan (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Outstanding at beginning of year (in shares) 2,527    
Outstanding at end of year (in shares) 1,792 2,527  
2012 Incentive Plan [Member]      
Outstanding at beginning of year (in shares) 2,527 1,548 2,565
Outstanding at beginning of year (in dollars per share) $ 46.77 $ 41.35 $ 33.36
Stock Options (in shares) 0 0 30
Stock Options (in dollars per share) $ 0 $ 0 $ 57.97
Exercised (in shares) (711) (203) (1,181)
Exercised (in dollars per share) $ 37.83 $ 29.75 $ 25.92
Forfeited (in shares) (71) (64) (21)
Forfeited (in dollars per share) $ 50.59 $ 45.73 $ 46.15
Expired (in shares) 0 0 0
Expired (in dollars per share) $ 0 $ 0 $ 0
Outstanding at end of year (in shares) 1,792 2,527 1,548
Outstanding at end of year (in dollars per share) $ 50.39 $ 46.77 $ 41.35
Options and SARs exercisable at end of year (in shares) 479 846 431
Options and SARs exercisable at end of year (in dollars per share) $ 48.35 $ 42.06 $ 32.61
Weighted-average fair value of options and SARs granted during the year (in dollars per share) $ 29.24 $ 16.45 $ 22.82
2012 Incentive Plan [Member] | Stock Appreciation Rights (SARs) [Member]      
Other than Options (in shares) [1] 38 1,172 132
Other than Options (in dollars per share) [1] $ 69.13 $ 53.87 $ 62.55
2012 Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]      
Other than Options (in shares) [2] 9 74 23
Other than Options (in dollars per share) [2] $ 0 $ 0 $ 0
[1] Upon exercise, SARs entitle the recipient to receive shares of common stock equal to the increase in value of the award between the grant date and the exercise date.
[2] An RSU represents the right to receive one share of common stock once certain vesting conditions are met. The value of an RSU is identical to the value of the underlying stock.
v3.19.3.a.u2
Note 15 - Stock-based Compensation - Summary of Information About Stock-based Awards Outstanding (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Number of shares outstanding (in shares) 1,792 2,527
Weighted average remaining contractual life in years, options outstanding (Year) 3 years 9 months 18 days 4 years 3 months 18 days
Aggregate intrinsic value, options outstanding $ 43,277 $ 17,283
Number of shares exercisable (in shares) 479 846
Aggregate intrinsic value, options exercisable $ 11,729 $ 9,389
Weighted average remaining contractual life in years, options exercisable (Year) 3 years 2 months 12 days 3 years 3 months 18 days
Exercise Price 1 [Member]    
Number of shares outstanding (in shares) 59 75
Weighted average remaining contractual life in years, options outstanding (Year) 1 year 6 months 1 year 9 months 18 days
Aggregate intrinsic value, options outstanding $ 4,369 $ 3,933
Number of shares exercisable (in shares) 0 0
Aggregate intrinsic value, options exercisable $ 0 $ 0
Exercise price (in dollars per share)   $ 0
Exercise Price 2 [Member]    
Number of shares outstanding (in shares) 427 29
Weighted average remaining contractual life in years, options outstanding (Year) 2 years 6 months 3 months 18 days
Aggregate intrinsic value, options outstanding $ 13,517 $ 924
Number of shares exercisable (in shares) 230 29
Aggregate intrinsic value, options exercisable $ 7,295 $ 924
Exercise price (in dollars per share) $ 42.87 $ 20.13
Weighted average remaining contractual life in years, options exercisable (Year) 2 years 6 months 3 months 18 days
Exercise Price 3 [Member]    
Number of shares outstanding (in shares) 15 99
Weighted average remaining contractual life in years, options outstanding (Year) 3 years 10 months 24 days 4 months 24 days
Aggregate intrinsic value, options outstanding $ 406 $ 2,897
Number of shares exercisable (in shares) 15 99
Aggregate intrinsic value, options exercisable $ 406 $ 2,897
Exercise price (in dollars per share) $ 47.46 $ 23.34
Weighted average remaining contractual life in years, options exercisable (Year) 3 years 10 months 24 days 4 months 24 days
Exercise Price 4 [Member]    
Number of shares outstanding (in shares) 8 15
Weighted average remaining contractual life in years, options outstanding (Year) 5 years 4 years 1 month 6 days
Aggregate intrinsic value, options outstanding $ 182 $ 257
Number of shares exercisable (in shares) 0 15
Aggregate intrinsic value, options exercisable $ 0 $ 257
Exercise price (in dollars per share) $ 51.71 $ 35.15
Weighted average remaining contractual life in years, options exercisable (Year)   4 years 1 month 6 days
Exercise Price 5 [Member]    
Number of shares outstanding (in shares) 35 15
Weighted average remaining contractual life in years, options outstanding (Year) 4 years 10 months 24 days 3 years 9 months 18 days
Aggregate intrinsic value, options outstanding $ 756 $ 211
Number of shares exercisable (in shares) 15 15
Aggregate intrinsic value, options exercisable $ 329 $ 211
Exercise price (in dollars per share) $ 53.16 $ 38.24
Weighted average remaining contractual life in years, options exercisable (Year) 4 years 10 months 24 days 3 years 9 months 18 days
Exercise Price 6 [Member]    
Number of shares outstanding (in shares) 783 942
Weighted average remaining contractual life in years, options outstanding (Year) 4 years 6 months 3 years 6 months
Aggregate intrinsic value, options outstanding $ 16,498 $ 8,879
Number of shares exercisable (in shares) 0 521
Aggregate intrinsic value, options exercisable $ 0 $ 4,918
Exercise price (in dollars per share) $ 53.44 $ 42.87
Weighted average remaining contractual life in years, options exercisable (Year)   3 years 6 months
Exercise Price 7 [Member]    
Number of shares outstanding (in shares) 296 38
Weighted average remaining contractual life in years, options outstanding (Year) 3 years 10 months 24 days 4 years 10 months 24 days
Aggregate intrinsic value, options outstanding $ 5,724 $ 182
Number of shares exercisable (in shares) 131 38
Aggregate intrinsic value, options exercisable $ 2,527 $ 182
Exercise price (in dollars per share) $ 55.16 $ 47.46
Weighted average remaining contractual life in years, options exercisable (Year) 3 years 10 months 24 days 4 years 10 months 24 days
Exercise Price 8 [Member]    
Number of shares outstanding (in shares) 30 35
Weighted average remaining contractual life in years, options outstanding (Year) 4 years 7 months 6 days 5 years 10 months 24 days
Aggregate intrinsic value, options outstanding $ 497 $ 0
Number of shares exercisable (in shares) 30 0
Aggregate intrinsic value, options exercisable $ 497 $ 0
Exercise price (in dollars per share) $ 57.97 $ 53.16
Weighted average remaining contractual life in years, options exercisable (Year) 4 years 7 months 6 days  
Exercise Price 9 [Member]    
Number of shares outstanding (in shares) 12 828
Weighted average remaining contractual life in years, options outstanding (Year) 2 years 6 months 5 years 6 months
Aggregate intrinsic value, options outstanding $ 187 $ 0
Number of shares exercisable (in shares) 6 0
Aggregate intrinsic value, options exercisable $ 94 $ 0
Exercise price (in dollars per share) $ 58.79 $ 53.44
Weighted average remaining contractual life in years, options exercisable (Year) 2 years 6 months  
Exercise Price 10 [Member]    
Number of shares outstanding (in shares) 98 296
Weighted average remaining contractual life in years, options outstanding (Year) 3 years 10 months 24 days 4 years 10 months 24 days
Aggregate intrinsic value, options outstanding $ 1,094 $ 0
Number of shares exercisable (in shares) 52 66
Aggregate intrinsic value, options exercisable $ 581 $ 0
Exercise price (in dollars per share) $ 63.35 $ 55.16
Weighted average remaining contractual life in years, options exercisable (Year) 3 years 10 months 24 days 4 years 10 months 24 days
Exercise Price 11 [Member]    
Number of shares outstanding (in shares) 4 30
Weighted average remaining contractual life in years, options outstanding (Year) 5 years 7 months 6 days 5 years 7 months 6 days
Aggregate intrinsic value, options outstanding $ 11 $ 0
Number of shares exercisable (in shares) 0 30
Aggregate intrinsic value, options exercisable $ 0 $ 0
Exercise price (in dollars per share) $ 71.71 $ 57.97
Weighted average remaining contractual life in years, options exercisable (Year)   5 years 7 months 6 days
Exercise Price 12 [Member]    
Number of shares outstanding (in shares) 15 16
Weighted average remaining contractual life in years, options outstanding (Year) 5 years 8 months 12 days 3 years 6 months
Aggregate intrinsic value, options outstanding $ 36 $ 0
Number of shares exercisable (in shares) 0 0
Aggregate intrinsic value, options exercisable $ 0 $ 0
Exercise price (in dollars per share) $ 72.14 $ 58.79
Exercise Price 13 [Member]    
Number of shares outstanding (in shares) 10 109
Weighted average remaining contractual life in years, options outstanding (Year) 5 years 10 months 24 days 4 years 10 months 24 days
Aggregate intrinsic value, options outstanding $ 0 $ 0
Number of shares exercisable (in shares) 0 33
Aggregate intrinsic value, options exercisable $ 0 $ 0
Exercise price (in dollars per share) $ 76.43 $ 63.35
Weighted average remaining contractual life in years, options exercisable (Year)   4 years 10 months 24 days
v3.19.3.a.u2
Note 17 - Interest Expense, Net - Components of Interest Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Interest related to sale of tax benefits                 $ 11,786 $ 11,284 $ 6,985
Interest expense                 71,883 63,368 54,381
Less — amount capitalized                 (3,285) (3,728) (7,224)
$ 17,568 $ 20,076 $ 21,517 $ 21,223 $ 22,034 $ 18,700 $ 15,846 $ 14,344 $ 80,384 $ 70,924 $ 54,142
v3.19.3.a.u2
Note 18 - Income Taxes (Details Textual) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Apr. 24, 2018
Sep. 11, 2015
Dec. 31, 2019
Jul. 31, 2019
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2014
Dec. 31, 2016
Deferred Tax Assets, Tax Credit Carryforwards, General Business     $ 100,524     $ 90,913         $ 100,524 $ 90,913      
Deferred Tax Assets, Tax Credit Carryforwards, Foreign     92,497     58,072         92,497 58,072      
Deferred Tax Assets, Investments     813     813         813 813      
Deferred Tax Assets, Valuation Allowance, Total     17,412     22,441 $ 77,571       17,412 $ 22,441 $ 77,571   $ 116,234
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount                     $ (5,000)        
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent                     21.00% 21.00% 35.00%    
Uncertain Tax Benefit, Reudction to Deferred Tax Asset [1]     95     95 95       $ 95 $ 95 $ 95    
Deferred Tax Liabilities, Gross, Total     97,126     61,323 61,961       97,126 61,323 61,961    
Foreign Earnings Repatriated             300,000           396,000    
Distribution of Earnings in Foreign Subsidiaries           96,000                  
Unrecognized Tax Benefits that Would Impact Effective Tax Rate     14,600     11,800         $ 14,600 11,800      
Depreciation Bonus Permitted Write Off Equipment Cost Percentage                     100.00%        
Placed in Service After December 31, 2022 and Before January 1, 2024 [Member]                              
Depreciation Bonus Permitted Write Off Equipment Cost Percentage                     80.00%        
Placed in Service After December 31, 2023 and Before January 1, 2025 [Member]                              
Depreciation Bonus Permitted Write Off Equipment Cost Percentage                     60.00%        
Placed in Service After December 31, 2024 and Before January 1, 2026 [Member]                              
Depreciation Bonus Permitted Write Off Equipment Cost Percentage                     40.00%        
Placed in Service After December 31, 2025 and Before January 1, 2027 [Member]                              
Depreciation Bonus Permitted Write Off Equipment Cost Percentage                     20.00%        
Accounting Standards Update 2013-11 [Member]                              
Uncertain Tax Benefit, Reudction to Deferred Tax Asset             $ 100           $ 100    
U.S. Geothermal [Member]                              
Business Acquisition, Percentage of Voting Interests Acquired 100.00%                            
Business Combination, Consideration Transferred, Total $ 110,000                            
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets (Liabilities), Net 1,700                            
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets 1,700                            
Deferred Taxes, Business Combination, Valuation Allowance, Available to Reduce Deferred Tax Asset 2,100                            
General Business Tax Credit Carryforward [Member]                              
Deferred Tax Assets, Tax Credit Carryforwards, General Business     100,500               $ 100,500        
Tax Credit Carryforward Expiration Period                     20 years        
Minimum [Member] | General Business Tax Credit Carryforward [Member]                              
Tax Credit Carryforward Expiration Year                     2022        
Maximum [Member] | General Business Tax Credit Carryforward [Member]                              
Tax Credit Carryforward Expiration Year                     2039        
Domestic Tax Authority [Member]                              
Operating Loss Carryforwards, Total     132,700               $ 132,700        
Operating Loss Carryforwards Expiring Amount     127,900               127,900        
Operating Loss Carryforwards Available For Indefinite Period     4,800               $ 4,800        
Open Tax Year                     2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019        
Domestic Tax Authority [Member] | U.S. Geothermal [Member]                              
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets 115,200                            
Domestic Tax Authority [Member] | Minimum [Member]                              
Tax Credit Carryforward Expiration Year                     2032        
Domestic Tax Authority [Member] | Maximum [Member]                              
Tax Credit Carryforward Expiration Year                     2037        
Foreign Tax Authority [Member]                              
Tax Credit Carryforward Expiration Year                     2022        
Tax Credit Carryforward Expiration Period                     10 years        
Deferred Tax Assets, Tax Credit Carryforwards, Foreign     92,500               $ 92,500        
Foreign Tax Authority [Member] | Israel Tax Authority [Member]                              
Foreign Income Tax Expense (Benefit), Continuing Operations, Total                     $ 13,900 14,400      
Deferred Tax Liabilities, Gross, Total           $ 0           $ 0      
National Corporate Tax Rate                     23.00% 23.00% 24.00%    
Foreign Tax Authority [Member] | Israel Tax Authority [Member] | Ormat Systems Ltd [Member]                              
Effective Income Tax Rate, Year Four and Thereafter                           16.00%  
Tax Rate on Exempt Income, in Event of Distribution                     25.00%        
Deferred Tax Liability, Rate, Respect of Tax Exempt Income                     25.00%        
Foreign Tax Authority [Member] | Tax Authority of Guatemala in Guatemala [Member]                              
National Corporate Tax Rate                     25.00%        
Tax Exemption Period                     10 years        
Effective Income Tax Rate                     7.00%        
Foreign Tax Authority [Member] | Kenya Revenue Authority [Member]                              
National Corporate Tax Rate                     37.50%        
Investment Deduction Percentage   150.00%                          
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority     0               $ 0        
Foreign Tax Authority [Member] | Kenya Revenue Authority [Member] | Tax Years 2014-2017 [Member]                              
Income Tax Examination, Settlement Demanded Including Accrued Interest and Penalties         $ 5,600                    
Income Tax Examination, Interest Accrued and Waiver Requested       $ 4,400                      
Foreign Tax Authority [Member] | Kenya Revenue Authority [Member] | Tax Years 2013-2017 [Member]                              
Income Tax Examination, Settlement Demanded Including Accrued Interest and Penalties     17,000 $ 205,000                      
Foreign Tax Authority [Member] | Ministry of the Economy, Finance and Industry, France [Member]                              
National Corporate Tax Rate                         34.43%    
Corporate Income Tax Rate, Taxable Income Exceeding Euro 0.5 Million                     31.00% 33.30%      
Foreign Tax Authority [Member] | Ministry of the Economy, Finance and Industry, France [Member] | Forecast [Member]                              
National Corporate Tax Rate               25.00% 26.50% 28.00%          
Foreign Tax Authority [Member] | Sistema de Administración de Rentas [Member]                              
Income Taxes Exempt Period                     10 years        
Foreign Tax Authority [Member] | Minimum [Member] | Kenya Revenue Authority [Member]                              
Tax Losses Carryforward Period                     5 years        
Foreign Tax Authority [Member] | Maximum [Member] | Kenya Revenue Authority [Member]                              
Tax Losses Carryforward Period                     10 years        
State and Local Jurisdiction [Member]                              
Operating Loss Carryforwards, Total     277,900               $ 277,900        
Operating Loss Carryforwards Expiring Amount     275,500               275,500        
Operating Loss Carryforwards Available For Indefinite Period     2,400               2,400        
Deferred Tax Assets, Investments     $ 800               $ 800        
Open Tax Year                     2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019        
State and Local Jurisdiction [Member] | U.S. Geothermal [Member]                              
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets $ 49,900                            
State and Local Jurisdiction [Member] | Minimum [Member]                              
Tax Credit Carryforward Expiration Year                     2025        
State and Local Jurisdiction [Member] | Maximum [Member]                              
Tax Credit Carryforward Expiration Year                     2039        
[1] The non-current deferred tax asset has been reduced by the uncertain tax benefit of $0.1 million in accordance with ASU 2013-11, Income Taxes.
v3.19.3.a.u2
Note 18 - Income Taxes - Income From Continuing Operations Before Income Taxes and Equity in Income (Losses) of Investees (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
U.S                 $ 14,187 $ 14,097 $ 13,680
Non-U.S. (foreign)                 123,116 123,084 157,050
Income from operations before income tax and equity in earnings (losses) of investees $ 41,085 $ 23,630 $ 31,466 $ 41,122 $ 48,293 $ 11,408 $ 31,376 $ 46,104 $ 137,303 $ 137,181 $ 170,730
v3.19.3.a.u2
Note 18 - Income Taxes - Components of Income Tax Provision (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Current:                      
Federal                 $ 0 $ 0 $ 43,935
State                 172 381 43
Foreign                 16,969 14,992 11,186
Total current income tax expense                 17,141 15,373 55,164
Deferred:                      
Federal                 (12,179) (6,886) (55,718)
State                 4,671 (2,595) (3,284)
Foreign                 35,980 28,841 25,502
Total deferred tax provision (benefit)                 28,472 19,360 (33,500)
Total Income tax provision $ 25,477 $ 9,626 $ (3,529) $ 14,039 $ 31,386 $ 1,184 $ 29,105 $ (26,942) $ 45,613 $ 34,733 $ 21,664
v3.19.3.a.u2
Note 18 - Income Taxes - Difference Between US Federal Statutory Tax Rate and Company's Effective Tax Rate (Details)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
U.S. federal statutory tax rate 21.00% 21.00% 35.00%
Impact of federal tax reform 0.00% 2.60% (12.40%)
Transition tax inclusion   (5.70%) 42.10%
Foreign tax credits (22.80%) (4.20%) (50.50%)
Withholding tax 10.40% 5.90% 34.10%
State income tax, net of federal benefit 3.70% 1.00% 1.10%
Uncertain tax positions 2.10% 2.10%  
Effect of foreign income tax, net 9.70% 5.60% (10.70%)
Production tax credits (5.00%) (3.10%) (1.20%)
Subpart F income 0.50% 0.50% 1.70%
Tax on global intangible low-tax income 16.90% 18.60%  
Intra-entity transfers of assets other than inventory 0.30% (2.10%)  
Other, net 0.10% 0.30% (3.90%)
Effective tax rate 33.20% 25.30% 12.70%
Domestic Tax Authority [Member]      
Valuation allowance (3.70%) (17.20%) (22.60%)
v3.19.3.a.u2
Note 18 - Income Taxes - Net Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Deferred tax assets (liabilities):        
Net foreign deferred taxes, primarily depreciation $ (88,508) $ (57,202)    
Depreciation, deferred tax liability (21,958) (30,500)    
Intangible drilling costs, liability (1,405)      
Intangible drilling costs, asset   7,370    
Net operating loss carryforward - U.S. 45,307 65,020    
Tax monetization transaction (30,964) (17,104)    
Right-of-use assets (3,715) 0    
Lease liabilities 3,755 0    
State and Investment tax credits 813 813    
Production tax credits 100,524 90,913    
Foreign tax credits 92,497 58,072    
Withholding tax (15,539) (8,052)    
Stock options amortization 1,409 1,440    
Basis difference in partnership interest (39,622) (36,516)    
Excess business interest 6,189 0    
Accrued liabilities and other 1,013 624    
49,796 74,878    
Less - valuation allowance (17,412) (22,441) $ (77,571) $ (116,234)
Total $ 32,384 $ 52,437    
v3.19.3.a.u2
Note 18 - Income Taxes - Reconciliation of Beginning and Ending Valuation Allowance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2019
Balance at beginning of the year $ 22,441 $ 77,571 $ 116,234  
Additions to valuation allowance 15,437 4,747 46,560  
Release of valuation allowance (20,466) (59,877) (85,223)  
Balance at end of the year $ 22,441 $ 77,571 $ 116,234 $ 17,412
v3.19.3.a.u2
Note 18 - Income Taxes - Balance Sheet Presentation of Deferred Taxes (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Non-current deferred tax assets $ 129,510 $ 113,760 $ 57,337
Non-current deferred tax liabilities (97,126) (61,323) (61,961)
Non-current deferred tax assets, net 32,384 52,437  
Non-current deferred tax liabilities, net     (4,624)
Uncertain tax benefit offset (1) [1] (95) (95) (95)
$ 32,289 $ 52,342 $ (4,719)
[1] The non-current deferred tax asset has been reduced by the uncertain tax benefit of $0.1 million in accordance with ASU 2013-11, Income Taxes.
v3.19.3.a.u2
Note 18 - Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Balance at beginning of year $ 8,820 $ 6,357 $ 4,609
Additions based on tax positions taken in prior years 104 293 5
Additions based on tax positions taken in the current year 2,314 2,446 2,580
Reduction based on tax positions taken in prior years (615) (276) (837)
Balance at end of year $ 10,623 $ 8,820 $ 6,357
v3.19.3.a.u2
Note 18 - Income Taxes - Foreign Subsidiaries Income Tax Years Open to Examination (Details)
 12 Months Ended
Dec. 31, 2019
Earliest Tax Year [Member] | ISRAEL  
Countries 2015
Earliest Tax Year [Member] | KENYA  
Countries 2013
Earliest Tax Year [Member] | GUATEMALA  
Countries 2015
Earliest Tax Year [Member] | HONDURAS  
Countries 2015
Earliest Tax Year [Member] | GUADELOUPE  
Countries 2017
Earliest Tax Year [Member] | NEW ZEALAND  
Countries 2012
Latest Tax Year [Member] | ISRAEL  
Countries 2019
Latest Tax Year [Member] | KENYA  
Countries 2019
Latest Tax Year [Member] | GUATEMALA  
Countries 2019
Latest Tax Year [Member] | HONDURAS  
Countries 2019
Latest Tax Year [Member] | GUADELOUPE  
Countries 2019
Latest Tax Year [Member] | NEW ZEALAND  
Countries 2019
v3.19.3.a.u2
Note 19 - Business Segments (Details Textual)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Number of Reportable Segments 3    
Revenue from Contract with Customer, Including Assessed Tax [1] $ 746,044 $ 719,267 $ 692,812
Goodwill, Ending Balance 20,140 19,950 21,037
Electricity Segment [Member]      
Revenue from Contract with Customer, Including Assessed Tax 540,333 509,879 465,593
Goodwill, Ending Balance 20,100 20,000 7,600
Electricity Segment [Member] | Accounting Standards Update 2014-09 [Member]      
Revenue from Contract with Customer, Including Assessed Tax 61,300 26,900  
Product and Energy Storage and Management Services Segments [Member]      
Goodwill, Ending Balance $ 0 $ 0 $ 13,500
[1] Revenues as reported in the geographic area in which they originate.
v3.19.3.a.u2
Note 19 - Business Segments - Summarized Financial Information Concerning Reportable Segments (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenues [1]                 $ 746,044 $ 719,267 $ 692,812
Depreciation and amortization expense                 148,761 132,233 115,146
Operating income (loss) $ 54,472 $ 38,719 $ 46,880 $ 53,725 $ 67,982 $ 25,902 $ 36,633 $ 54,593 193,796 185,110 205,018
Segment assets at period end [2] 3,250,494 [3]       3,121,350 [4]       3,250,494 [3] 3,121,350 [4] 2,623,864 [4]
Expenditures for long-lived assets                 279,986 258,521 259,234
Intersegment Eliminations [Member]                      
Revenues                 84,614 48,817 109,040
Segment Reconciling Items [Member]                      
Segment assets at period end 81,140       71,983       81,140 71,983 34,084
Electricity Segment [Member]                      
Revenues                 540,333 509,879 465,593
Depreciation and amortization expense                 138,426 126,181 109,928
Operating income (loss)                 177,192 155,546 157,613
Segment assets at period end [2] 3,044,909 [3]       2,896,938 [4]       3,044,909 [3] 2,896,938 [4] 2,457,514 [4]
Expenditures for long-lived assets                 259,898 219,803 252,581
Electricity Segment [Member] | Intersegment Eliminations [Member]                      
Revenues                 0 0 0
Electricity Segment [Member] | Segment Reconciling Items [Member]                      
Segment assets at period end 81,140       71,983       81,140 71,983 34,084
Product Segment [Member]                      
Revenues                 191,009 201,743 224,483
Depreciation and amortization expense                 5,308 4,311 3,470
Operating income (loss)                 23,180 38,083 50,543
Segment assets at period end [2] 126,018 [3]       156,942 [4]       126,018 [3] 156,942 [4] 115,713 [4]
Expenditures for long-lived assets                 9,156 9,993 6,653
Product Segment [Member] | Intersegment Eliminations [Member]                      
Revenues                 84,614 48,817 109,040
Product Segment [Member] | Segment Reconciling Items [Member]                      
Segment assets at period end 0       0       0 0 0
Other Segments [Member]                      
Revenues                 14,702 7,645 2,736
Depreciation and amortization expense                 5,027 1,741 1,748
Operating income (loss)                 (6,576) (8,519) (3,138)
Segment assets at period end [2] 79,567 [3]       67,470 [4]       79,567 [3] 67,470 [4] 50,637 [4]
Expenditures for long-lived assets                 10,932 28,725 0
Other Segments [Member] | Intersegment Eliminations [Member]                      
Revenues                 0 0 0
Other Segments [Member] | Segment Reconciling Items [Member]                      
Segment assets at period end $ 0       $ 0       0 0 0
UNITED STATES                      
Revenues [1]                 377,956 [5] 328,606 [5] $ 301,132
UNITED STATES | Electricity Segment [Member]                      
Revenues [5]                 333,797 305,962  
UNITED STATES | Product Segment [Member]                      
Revenues [5]                 30,562 14,999  
UNITED STATES | Other Segments [Member]                      
Revenues [5]                 13,597 7,645  
Non-US [Member]                      
Revenues [6]                 368,088 390,661  
Non-US [Member] | Electricity Segment [Member]                      
Revenues [6]                 206,536 203,917  
Non-US [Member] | Product Segment [Member]                      
Revenues [6]                 160,447 186,744  
Non-US [Member] | Other Segments [Member]                      
Revenues [6]                 $ 1,105 $ 0  
[1] Revenues as reported in the geographic area in which they originate.
[2] Electricity segment assets include goodwill in the amount of $20.1 million, $20.0 million and $7.6 as of December 31, 2019, 2018 and 2017, respectively. No goodwill is included in the Product and Energy Storage and Management Services segment assets as of December 31, 2019 and 2018. Energy Storage and Management Services segment assets as December 31, 2017 include goodwill in the amount of $13.5 million. For further information on goodwill, see Note 9 - Intangible assets and goodwill to the consolidated financial statements.
[3] Including unconsolidated investments 81,140 — — 81,140
[4] Including unconsolidated investments 34,084 — — 34,084
[5] Electricity segment revenues in the United States are all accounted under lease accounting, except for $61.3 million and $26.9 million for the years December 31, 2019 and 2018 that are accounted under ASC 606 starting in 2018. Product and Energy Storage and Management Services segment revenues in the United States are accounted under ASC 606, as further described under Note 1 to the consolidated financial statements.
[6] Electricity segment revenues in foreign countries are all accounted under lease accounting. Product and Energy Storage and Management Services segment revenues in foreign countries are accounted under ASC 606 as further described under Note 1 to the consolidated financial statements.
v3.19.3.a.u2
Note 19 - Business Segments - Reconciling Information Between Reportable Segments and Consolidated Totals (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenue [1]                 $ 746,044 $ 719,267 $ 692,812
Operating income (loss) $ 54,472 $ 38,719 $ 46,880 $ 53,725 $ 67,982 $ 25,902 $ 36,633 $ 54,593 193,796 185,110 205,018
Interest income 320 482 420 293 458 214 189 113 1,515 974 988
Interest expense, net (17,568) (20,076) (21,517) (21,223) (22,034) (18,700) (15,846) (14,344) (80,384) (70,924) (54,142)
Derivatives and foreign currency transaction gains (losses) (72) 205 19 472 (2,250) (383) (529) (1,599) 624 (4,761) 2,654
Income attributable to sale of tax benefits 4,415 4,056 4,637 7,764 4,020 4,066 3,556 7,361 20,872 19,003 17,878
Other non-operating income (expense), net (482) 244 1,027 91 117 309 7,373 (20) 880 7,779 (1,666)
Income from operations before income tax and equity in earnings (losses) of investees $ 41,085 $ 23,630 $ 31,466 $ 41,122 $ 48,293 $ 11,408 $ 31,376 $ 46,104 137,303 137,181 170,730
Intersegment Eliminations [Member]                      
Revenue                 84,614 48,817 109,040
Consolidation, Eliminations [Member]                      
Revenue                 $ (84,614) $ (48,817) $ (109,040)
[1] Revenues as reported in the geographic area in which they originate.
v3.19.3.a.u2
Note 19 - Business Segments - Revenues as Reported in the Geographic Area (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenue [1] $ 746,044 $ 719,267 $ 692,812
UNITED STATES      
Revenue [1] 377,956 [2] 328,606 [2] 301,132
INDONESIA      
Revenue [1] 0 4,379 28,968
KENYA      
Revenue [1] 121,661 119,094 110,243
TURKEY      
Revenue [1] 88,938 168,699 125,166
CHILE      
Revenue [1] 25,540 980 8,895
GUATEMALA      
Revenue [1] 28,624 27,975 27,991
NEW ZEALAND      
Revenue [1] 31,222 10,451 33,395
HONDURAS      
Revenue [1] 34,446 34,355 10,151
Other Foreign Countries [Member]      
Revenue [1] $ 37,657 $ 24,728 $ 46,871
[1] Revenues as reported in the geographic area in which they originate.
[2] Electricity segment revenues in the United States are all accounted under lease accounting, except for $61.3 million and $26.9 million for the years December 31, 2019 and 2018 that are accounted under ASC 606 starting in 2018. Product and Energy Storage and Management Services segment revenues in the United States are accounted under ASC 606, as further described under Note 1 to the consolidated financial statements.
v3.19.3.a.u2
Note 19 - Business Segments - Long Lived Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Long Lived Assets, Geographic Area $ 2,379,537 $ 2,221,267 $ 2,133,289
UNITED STATES      
Long Lived Assets, Geographic Area 1,870,335 1,696,439 1,510,986
KENYA      
Long Lived Assets, Geographic Area 284,526 301,956 340,970
Other Foreign Countries [Member]      
Long Lived Assets, Geographic Area $ 224,676 $ 222,872 $ 281,333
v3.19.3.a.u2
Note 19 - Business Segments - Revenue From Major Customers (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenue [1] $ 746,044 $ 719,267 $ 692,812
Southern California Public Power Authority [Member]      
Revenue [2] $ 133,725 $ 109,208 $ 70,100
Percentage of revenues [2] 17.90% 15.20% 10.10%
Sierra Pacific Power Company And Nevada Power Company [Member]      
Revenue [2],[3] $ 125,486 $ 116,149 $ 125,424
Percentage of revenues [2],[3] 16.80% 16.10% 18.10%
Kenya Power and Lighting Co LTD [Member]      
Revenue [2] $ 121,661 $ 119,094 $ 110,243
Percentage of revenues [2] 16.30% 16.60% 15.90%
[1] Revenues as reported in the geographic area in which they originate.
[2] Revenues reported in Electricity segment.
[3] Subsidiaries of NV Energy, Inc.
v3.19.3.a.u2
Note 21 - Employee Benefit Plan (Details Textual) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent 60.00%    
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay 4.00% 4.00% 3.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount $ 1,600 $ 1,600 $ 1,400
Deposits And Other Assets Noncurrent 38,284 18,209  
Severance Costs 3,500 3,000 3,200
Gain (Loss) Of Severance Fund 1,000 (1,100) $ 1,800
Israeli Severance Funds [Member]      
Deposits And Other Assets Noncurrent $ 10,800 $ 10,600  
v3.19.3.a.u2
Note 21 - Employee Benefit Plan - Expected Future Benefit Payments (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
2020 $ 4,780
2021 1,434
2022 1,768
2023 89
2024 500
2025-2043 11,232
Total $ 19,803
v3.19.3.a.u2
Note 22 - Commitments and Contingencies (Details Textual) - USD ($)
$ in Millions
 12 Months Ended
Mar. 29, 2016
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Letters of Credit Outstanding, Amount   $ 213.8    
Recorded Unconditional Purchase Obligation, Total   185.0    
Royalty Cap Amount   2.1 $ 2.0  
Royalty Cap Amount LIBOR Rate   $ 1.1 1.0  
Former Local Sales Representative vs. Ormat [Member] | Pending Litigation [Member]        
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 10 years      
Minimum [Member]        
Percentage For Royalty To Be Paid   3.50%    
Maximum [Member]        
Percentage For Royalty To Be Paid   5.00%    
Construction In Process [Member]        
Recorded Unconditional Purchase Obligation, Total   $ 59.5    
Geothermal Resource Agreement [Member]        
Royalty Expense   $ 21.7 $ 21.6 $ 19.4
v3.19.3.a.u2
Note 23 - Leases - Lessee's Total Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Lease cost      
Amortization of right-of-use assets $ 3,273    
Interest on lease liabilities 1,330    
Operating lease cost 8,057    
Variable lease cost 1,647    
Short-term lease cost 0    
Total lease cost 14,307    
Operating cash flows for finance leases 1,330    
Operating cash flows for operating leases 9,004    
Financing cash flows for finance leases 3,164 $ 2,551 $ 1,871
Right-of-use assets obtained in exchange for new finance lease liabilities 5,262    
Right-of-use assets obtained in exchange for new operating lease liabilities $ 6,364    
Weighted-average remaining lease term — finance leases (in years) (Year) 4 years    
Weighted-average remaining lease term — operating leases (in years) (Year) 7 years 3 months 18 days    
Weighted-average discount rate (in percentage) 5.00%    
v3.19.3.a.u2
Note 23 - Leases - Lessee Future Minimum Lease Payments (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
2020, operating leases $ 2,742
2020, finance leases 4,251
2021, operating leases 2,701
2021, finance leases 3,948
2022, operating leases 2,079
2022, finance leases 3,873
2023, operating leases 1,524
2023, finance leases 2,758
2024, operating leases 1,275
2024, finance leases 906
Thereafter, operating leases 10,635
Thereafter, finance leases 4,118
Total future minimum lease payments, operating leases 20,956
Total future minimum lease payments, finance leases 19,854
Less imputed interest, operating leases 4,205
Less imputed interest, finance leases 5,577
Total, operating leases 16,751
Total, finance leases $ 14,277
v3.19.3.a.u2
Note 23 - Leases - Future Minimum Lease Payments Under Non-cancellable Leases (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
2019 $ 10,889
2020 7,515
2021 5,758
2022 4,415
2023 2,910
Thereafter 9,292
Total $ 40,779
v3.19.3.a.u2
Note 23 - Leases - Lease Income Recognized (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
USD ($)
Lease income relating to lease payments of operating leases $ 479,059
Lease income relating to variable lease payments not included in the measurement of the lease 0
Total $ 479,059
v3.19.3.a.u2
Note 24 - Quarterly Financial Information (Unaudited) - Quarterly Financial Information (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenue [1]                 $ 746,044 $ 719,267 $ 692,812
Revenues $ 192,442 $ 170,499 $ 184,065 $ 199,038 $ 190,465 $ 166,480 $ 178,299 $ 184,023      
Cost of revenues 117,940 115,004 118,918 124,859 99,656 117,688 120,837 110,651 476,721 448,832 424,360
Gross profit 74,502 55,495 65,147 74,179 90,809 48,792 57,462 73,372 269,323 270,435 268,452
Research and development expenses 1,875 1,062 810 900 1,118 706 1,251 1,108 4,647 4,183 3,157
Selling and marketing expenses 4,123 3,783 3,276 3,865 3,813 8,578 3,712 3,699 15,047 19,802 15,600
General and administrative expenses 14,032 11,931 14,181 15,689 4,429 13,606 15,866 13,849 55,833 47,750 42,881
Impairment charge 0 0 0 0 13,464 0 0 0 0 13,464 0
Write-off of unsuccessful exploration activities 0 0 0 0 3 0 0 123 0 126 1,796
Operating income (loss) 54,472 38,719 46,880 53,725 67,982 25,902 36,633 54,593 193,796 185,110 205,018
Interest income 320 482 420 293 458 214 189 113 1,515 974 988
Interest expense, net (17,568) (20,076) (21,517) (21,223) (22,034) (18,700) (15,846) (14,344) (80,384) (70,924) (54,142)
Derivatives and foreign currency transaction gains (losses) (72) 205 19 472 (2,250) (383) (529) (1,599) 624 (4,761) 2,654
Income attributable to sale of tax benefits 4,415 4,056 4,637 7,764 4,020 4,066 3,556 7,361 20,872 19,003 17,878
Other non-operating income (expense), net (482) 244 1,027 91 117 309 7,373 (20) 880 7,779 (1,666)
Income from operations before income tax and equity in earnings (losses) of investees 41,085 23,630 31,466 41,122 48,293 11,408 31,376 46,104 137,303 137,181 170,730
Income tax (provision) benefit (25,477) (9,626) 3,529 (14,039) (31,386) (1,184) (29,105) 26,942 (45,613) (34,733) (21,664)
Equity in earnings (losses) of investees, net (1,481) 1,085 1,202 1,047 6,182 (117) 388 1,210 1,853 7,663 (1,957)
Net income 14,127 15,089 36,197 28,130 23,089 10,107 2,659 74,256      
Net loss (income) attributable to noncontrolling interest (1,521) 516 (2,259) (2,184) (4,869) 474 (3,002) (4,748) (5,448) (12,145) (14,695)
Net income (loss) attributable to the Company's stockholders $ 12,606 $ 15,605 $ 33,938 $ 25,946 $ 18,220 $ 10,581 $ (343) $ 69,508 $ 88,095 $ 97,966 $ 132,414
Net income (in dollars per share) $ 0.25 $ 0.31 $ 0.67 $ 0.51 $ 0.36 $ 0.21 $ (0.01) $ 1.37 $ 1.73 $ 1.93 $ 2.64
Net income (in dollars per share) $ 0.24 $ 0.30 $ 0.66 $ 0.51 $ 0.36 $ 0.21 $ (0.01) $ 1.36 $ 1.72 $ 1.92 $ 2.61
Basic (in shares) 51,017 50,933 50,800 50,709 50,691 50,645 50,623 50,614 50,867 50,643 50,110
Diluted (in shares) 51,511 51,334 51,094 51,012 50,936 50,963 50,958 51,051 51,227 50,969 50,769
Electricity [Member]                      
Revenue $ 144,368 $ 123,978 $ 129,079 $ 142,908 $ 138,320 $ 116,891 $ 122,179 $ 132,489 $ 540,333 $ 509,879 $ 465,593
Cost of revenues 81,393 80,124 73,775 77,543 63,692 79,845 81,236 73,482 312,835 298,255 266,840
Product [Member]                      
Revenue 43,814 43,037 52,030 52,128 49,717 48,439 54,915 48,672 191,009 201,743 224,483
Cost of revenues 31,479 31,073 41,316 42,106 33,729 35,669 37,573 33,726 145,974 140,697 152,094
Energy Storage and Management Services [Member]                      
Revenue 4,260 3,484 2,956 4,002 2,428 1,150 1,205 2,862 14,702 7,645 2,736
Cost of revenues $ 5,068 $ 3,807 $ 3,827 $ 5,210 $ 2,235 $ 2,174 $ 2,028 $ 3,443 $ 17,912 $ 9,880 $ 5,426
[1] Revenues as reported in the geographic area in which they originate.
v3.19.3.a.u2
Note 25 - Subsequent Events (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Feb. 26, 2020
Jun. 30, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dividends, Common Stock, Total     $ 22,386 $ 26,834 $ 20,511
Common Stock, Dividends, Per Share, Declared     $ 0.44 $ 0.53 $ 0.44
AltaGas Power Holdings [Member] | Forecast [Member]          
Payments to Acquire Businesses, at Closing   $ 51,000      
AltaGas Power Holdings [Member] | Forecast [Member] | Maximum [Member]          
Payments to Acquire Businesses, Gross   $ 65,000      
Subsequent Event [Member]          
Dividends, Common Stock, Total $ 5,600        
Common Stock, Dividends, Per Share, Declared $ 0.11