XML 37 R15.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Note 8 - Property, Plant and Equipment and Construction-in-process | 12 Months Ended
--- | ---
Dec. 31, 2017
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 , |
|  | 2017 |  |  | 2016 |
|  | (Dollars in thousands ) |
Land owned by the Company where the geothermal resource is located |  | $ | 32,178 |  |  | $ | 31,904 |
Leasehold improvements |  |  | 3,984 |  |  |  | 3,848 |
Machinery and equipment |  |  | 182,121 |  |  |  | 152,821 |
Land, buildings and office equipment |  |  | 31,128 |  |  |  | 28,634 |
Automobiles |  |  | 12,596 |  |  |  | 11,161 |
Geothermal and recovered energy generation power plants, including geothermal wells and exploration and resource development costs: |  |  |  |  |  |  |  |
United States of America, net of cash grants and impairment charges |  |  | 1,744,728 |  |  |  | 1,658,195 |
Foreign countries |  |  | 700,498 |  |  |  | 541,626 |
Asset retirement cost |  |  | 10,563 |  |  |  | 8,669 |
|  |  | 2,717,797 |  |  |  | 2,436,858 |
Less accumulated depreciation |  |  | (983,106 | ) |  |  | (880,480 | )
Property, plant and equipment, net |  | $ | 1,734,691 |  |  | $ | 1,556,378 |
Depreciation expense for the years ended December 31, 2017, 2016, and 2015 amounted to $98.8 million, $94.8 million and $95.2 million, respectively. Depreciation expense for the years ended December 31, 2017, 2016 and 2015 is net of the impact of the cash grant in the amount of $5.5 million for each of those years. U.S. Operations The net book value of the property, plant and equipment, including construction-in-process, located in the U.S. was approximately $1,447.4 million and $1,376.1 million as of December 31, 2017 and 2016, respectively. These amounts as of December 31, 2017 and 2016 are net of cash grants in the amount of $133.2 million and $138.7 million, respectively. Foreign Operations The net book value of property, plant and equipment, including construction-in-process, located outside of the U.S. was approximately $580.8 million and $487.0 million as of December 31, 2017 and 2016, 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 $326.1 million and $315.0 million as of December 31, 2017 and 2016, respectively. The Company sells the electricity produced by the power plants to Kenya Power and Lighting Co. Ltd. (“KPLC”) under a 20 -year PPA. 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 Instituto Nacional de Electrificacion (“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 $9.9 million and $12.2 million at December 31, 2017 and 2016, 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 $40.7 million and $40.3 million at December 31, 2017 and 2016, respectively. The Company, through its wholly owned subsidiary, GeoPlatanares, signed a Build, Operate and Transfer (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. 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 $140.3 million and $67.5 million at December 31, 2017 and 2016, 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 $24.9 million and $20.3 million at December 31, 2017 and 2016, 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, |
|  | 2017 |  |  | 2016 |
|  | (Dollars in thousands) |
Projects under exploration and development: |  |  |  |  |  |  |  |
Up-front bonus lease costs |  | $ | 17,018 |  |  | $ | 17,385 |
Exploration and development costs |  |  | 46,154 |  |  |  | 36,359 |
Interest capitalized |  |  | 703 |  |  |  | 703 |
|  |  | 63,875 |  |  |  | 54,447 |
Projects under construction: |  |  |  |  |  |  |  |
Up-front bonus lease costs |  |  | 27,473 |  |  |  | 37,713 |
Drilling and construction costs |  |  | 198,943 |  |  |  | 202,211 |
Interest capitalized |  |  | 3,251 |  |  |  | 12,338 |
|  |  | 229,667 |  |  |  | 252,262 |
Total |  | $ | 293,542 |  |  | $ | 306,709 |
|  | Projects under Exploration and Development |
|  | Up-front Bonus Lease Costs |  |  | Exploration and Development Costs |  |  | Interest Capitalized |  |  | Total |
|  | (Dollars in thousands) |
Balance at December 31, 2014 |  | $ | 26,618 |  |  | $ | 45,977 |  |  | $ | 836 |  |  | $ | 73,431 |
Cost incurred during the year |  |  | 37 |  |  |  | 10,104 |  |  |  | 869 |  |  |  | 11,010 |
Write off of unsuccessful exploration costs |  |  | (164 | ) |  |  | (1,415 | ) |  |  | — |  |  |  | (1,579 | )
Transfer of projects under exploration and development to projects under construction |  |  | — |  |  |  | (18,940 | ) |  |  | (1,002 | ) |  |  | (19,942 | )
Balance at December 31, 2015 |  |  | 26,491 |  |  |  | 35,726 |  |  |  | 703 |  |  |  | 62,920 |
Cost incurred during the year |  |  | 1,514 |  |  |  | 25,165 |  |  |  | — |  |  |  | 26,679 |
Write off of unsuccessful exploration costs |  |  | (380 | ) |  |  | (2,637 | ) |  |  | — |  |  |  | (3,017 | )
Transfer of projects under exploration and development to projects under construction |  |  | (10,240 | ) |  |  | (21,895 | ) |  |  | — |  |  |  | (32,135 | )
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 |
|  | Projects under Construction |
|  | Up-front Bonus Lease Costs |  |  | Drilling and Construction Costs |  |  | Interest Capitalized |  |  | Total |
|  | (Dollars in thousands) |
Balance at December 31, 2014 |  | $ | 27,473 |  |  | $ | 187,545 |  |  | $ | 8,273 |  |  | $ | 223,291 |
Cost incurred during the year |  |  | — |  |  |  | 140,977 |  |  |  | 3,556 |  |  |  | 144,533 |
Transfer of projects under exploration and development to projects under construction |  |  | — |  |  |  | 18,940 |  |  |  | 1,002 |  |  |  | 19,942 |
Transfer of completed projects to property, plant and equipment |  |  | — |  |  |  | (196,995 | ) |  |  | (4,856 | ) |  |  | (201,851 | )
Balance at December 31, 2015 |  |  | 27,473 |  |  |  | 150,467 |  |  |  | 7,975 |  |  |  | 185,915 |
Cost incurred during the year |  |  | — |  |  |  | 116,247 |  |  |  | 6,510 |  |  |  | 122,757 |
Transfer of exploration and development projects to projects under construction |  |  | 10,240 |  |  |  | 21,895 |  |  |  | — |  |  |  | 32,135 |
Transfer of completed projects to property, plant and equipment |  |  | — |  |  |  | (86,398 | ) |  |  | (2,147 | ) |  |  | (88,545 | )
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 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
Name: | us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration