0001296445 ORMAT TECHNOLOGIES, INC. false --12-31 Q1 2021 597 597 2,012,052 1,978,220 208,972 198,812 4,589 4,712 289 7,001 5,082 5,318 8,132 8,557 1,996 2,086 1,295 1,340 0.001 0.001 200,000,000 200,000,000 55,984,392 55,984,392 55,983,259 55,983,259 0 0.11 0.12 0 0 0 3 0 0 May 18, 2021 June 1, 2021 Electricity segment assets include goodwill in the amount of $20.1 million and $20.0 million as of March 31, 2021 and 2020, respectively. Energy Storage segment assets include goodwill in the amount of $4.1 million and none as of March 31, 2021 and 2020, respectively. No goodwill is included in the Product segment assets as of March 31, 2021 and 2020. Including unconsolidated investments 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 March 31, 2021 and December 31, 2020, as applicable, in the condensed consolidated balance sheets with the corresponding gain or loss being recognized within "Derivatives and foreign currency transaction gains (losses)" in the condensed consolidated statements of operations and comprehensive income. 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 March 31, 2021 and December 31, 2020, in the condensed consolidated balance sheets with the corresponding gain or loss being recognized within “Derivatives and foreign currency transaction gains (losses)” in the condensed consolidated statements of operations and comprehensive income. The amount of gain or (loss) recognized in Other comprehensive income (loss) is net of tax of $1.1 million. 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 March 31, 2021 and December 31, 2020, in the condensed consolidated balance sheets with the corresponding gain or loss being recognized within “Derivatives and foreign currency transaction gains (losses)” in the condensed consolidated statements of operations and comprehensive income. These amounts relate to cross currency swap contracts valued primarily based on the present value of the cross currency swap future settlement prices for USD and NIS zero yield curves and the applicable exchange rate as of March 31, 2021 and December 31, 2020, as applicable. These amounts are included within “Deposits and other” and "Accounts payable and accrued expenses", as applicable, on March 31, 2021 and December 31, 2020 in the condensed consolidated balance sheets. There are no cash collateral deposits on March 31, 2021 and December 31, 2020. 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 not yet recognized as product revenues during the three months ended March 31, 2021 as a result of performance obligations having been satisfied. The foregoing currency forward and price swap transactions were not designated as hedge transactions and are marked to market with the corresponding gains or losses recognized within “Derivatives and foreign currency transaction gains (losses)” in the condensed consolidated statements of operations and comprehensive income. The price swap transaction relates to a hedging agreement with a third party that was effective January 1, 2021 under which the Company fixed the price per MWH on a portion of RRS provided by its Rabbit Hill storage facility, as described under Note 1 to the condensed consolidated financial statements. The price swap transaction was terminated effective April 1, 2021. This amount relates to a price swap contract valued primarily based on observable inputs, including market prices per MWH multiplied by notional amounts, and is included within “Accounts payable and accrued expenses” on March 31, 2021 in the condensed consolidated balance sheets with the corresponding gain or loss being recognized within “Derivatives and foreign currency transaction gains (losses)” in the condensed consolidated statements of operations and comprehensive income. Intersegment revenue are fully eliminated in consolidation. Electricity segment revenues in foreign countries are all accounted under lease accounting. Product segment revenues in foreign countries are accounted under ASC 606. Electricity segment revenues in the United States are all accounted under lease accounting except for $19.2 million and $16.8 million in the three months ended March 31, 2021 and 2020, respectively, that are accounted under ASC 606. Product and Energy Storage segment revenues in the United States are accounted under ASC 606. The foregoing cross currency swap transactions were designated as a cash flow hedge as further described under note 1 to the condensed consolidated financial statements. The changes in the cross currency swap fair value are initially recorded in "Other comprehensive income (loss)" and a corresponding amount is reclassified out of "Accumulated other comprehensive income (loss)" to "Derivatives and foreign currency transaction gains (losses)" to offset the remeasurement of the underlying hedged transaction which also impacts the same line item in the condensed consolidated statements of operations and comprehensive income. 00012964452021-01-012021-03-31 xbrli:shares 00012964452021-04-30 thunderdome:item iso4217:USD 00012964452021-03-31 00012964452020-12-31 0001296445us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-03-31 0001296445us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-12-31 0001296445ora:SeniorSecuredNotesMember2021-03-31 0001296445ora:SeniorSecuredNotesMember2020-12-31 0001296445ora:OtherLoansLimitedAndNonrecourseMember2021-03-31 0001296445ora:OtherLoansLimitedAndNonrecourseMember2020-12-31 0001296445ora:SeniorUnsecuredBondsMember2021-03-31 0001296445ora:SeniorUnsecuredBondsMember2020-12-31 0001296445ora:OtherLoansFullRecourseMember2021-03-31 0001296445ora:OtherLoansFullRecourseMember2020-12-31 iso4217:USDxbrli:shares 0001296445us-gaap:ElectricityMember2021-01-012021-03-31 0001296445us-gaap:ElectricityMember2020-01-012020-03-31 0001296445us-gaap:ProductMember2021-01-012021-03-31 0001296445us-gaap:ProductMember2020-01-012020-03-31 0001296445ora:EnergyStorageAndManagementServicesMember2021-01-012021-03-31 0001296445ora:EnergyStorageAndManagementServicesMember2020-01-012020-03-31 00012964452020-01-012020-03-31 0001296445us-gaap:CommonStockMember2019-12-31 0001296445us-gaap:AdditionalPaidInCapitalMember2019-12-31 0001296445us-gaap:RetainedEarningsMember2019-12-31 0001296445us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-31 0001296445us-gaap:ParentMember2019-12-31 0001296445us-gaap:NoncontrollingInterestMember2019-12-31 00012964452019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:CommonStockMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AdditionalPaidInCapitalMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ParentMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:NoncontrollingInterestMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:CommonStockMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AdditionalPaidInCapitalMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:RetainedEarningsMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:ParentMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:NoncontrollingInterestMember2019-12-31 0001296445srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-31 0001296445us-gaap:CommonStockMember2020-01-012020-03-31 0001296445us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-31 0001296445us-gaap:RetainedEarningsMember2020-01-012020-03-31 0001296445us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-31 0001296445us-gaap:ParentMember2020-01-012020-03-31 0001296445us-gaap:NoncontrollingInterestMember2020-01-012020-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CommonStockMember2020-01-012020-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:RetainedEarningsMember2020-01-012020-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:ParentMember2020-01-012020-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NoncontrollingInterestMember2020-01-012020-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMember2020-01-012020-03-31 0001296445us-gaap:CommonStockMember2020-03-31 0001296445us-gaap:AdditionalPaidInCapitalMember2020-03-31 0001296445us-gaap:RetainedEarningsMember2020-03-31 0001296445us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-31 0001296445us-gaap:ParentMember2020-03-31 0001296445us-gaap:NoncontrollingInterestMember2020-03-31 00012964452020-03-31 0001296445us-gaap:CommonStockMember2020-12-31 0001296445us-gaap:AdditionalPaidInCapitalMember2020-12-31 0001296445us-gaap:RetainedEarningsMember2020-12-31 0001296445us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-31 0001296445us-gaap:ParentMember2020-12-31 0001296445us-gaap:NoncontrollingInterestMember2020-12-31 0001296445us-gaap:CommonStockMember2021-01-012021-03-31 0001296445us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-31 0001296445us-gaap:RetainedEarningsMember2021-01-012021-03-31 0001296445us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-31 0001296445us-gaap:ParentMember2021-01-012021-03-31 0001296445us-gaap:NoncontrollingInterestMember2021-01-012021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CommonStockMember2021-01-012021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:RetainedEarningsMember2021-01-012021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:ParentMember2021-01-012021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NoncontrollingInterestMember2021-01-012021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMember2021-01-012021-03-31 0001296445us-gaap:CommonStockMember2021-03-31 0001296445us-gaap:AdditionalPaidInCapitalMember2021-03-31 0001296445us-gaap:RetainedEarningsMember2021-03-31 0001296445us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-31 0001296445us-gaap:ParentMember2021-03-31 0001296445us-gaap:NoncontrollingInterestMember2021-03-31 00012964452020-01-012020-12-31 00012964452021-02-012021-02-28 0001296445us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-03-31 0001296445us-gaap:NonUsMember2021-03-31 0001296445us-gaap:NonUsMember2020-12-31 xbrli:pure 0001296445us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberora:PrimaryCustomersMember2021-01-012021-03-31 0001296445us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberora:PrimaryCustomersMember2020-01-012020-12-31 0001296445us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberora:SierraPacificPowerCompanyAndNevadaPowerCompanyMember2021-01-012021-03-31 0001296445us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberora:SierraPacificPowerCompanyAndNevadaPowerCompanyMember2020-01-012020-03-31 0001296445us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberora:SouthernCaliforniaPublicPowerAuthorityMember2021-01-012021-03-31 0001296445us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberora:SouthernCaliforniaPublicPowerAuthorityMember2020-01-012020-03-31 0001296445us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberora:KenyaPowerAndLightingCoLTDMember2021-01-012021-03-31 0001296445us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberora:KenyaPowerAndLightingCoLTDMember2020-01-012020-03-31 0001296445ora:KenyaPowerAndLightingCoLTDMember2021-03-31 0001296445ora:KenyaPowerAndLightingCoLTDMemberus-gaap:SubsequentEventMember2021-04-012021-04-30 0001296445ora:ENNEMember2021-03-31 0001296445ora:ENNEMemberus-gaap:SubsequentEventMember2021-04-012021-04-30 0001296445us-gaap:AccountingStandardsUpdate201613Member2020-12-31 0001296445us-gaap:AccountingStandardsUpdate201613Member2019-12-31 0001296445us-gaap:AccountingStandardsUpdate201613Member2021-01-012021-03-31 0001296445us-gaap:AccountingStandardsUpdate201613Member2020-01-012020-03-31 0001296445us-gaap:AccountingStandardsUpdate201613Member2021-03-31 0001296445us-gaap:AccountingStandardsUpdate201613Member2020-03-31 0001296445us-gaap:ProductMember2021-03-31 utr:Y 0001296445us-gaap:ProductMember2021-04-012021-03-31 0001296445us-gaap:CorporateDebtSecuritiesMember2021-03-31 0001296445us-gaap:CommercialPaperMember2021-03-31 0001296445us-gaap:MoneyMarketFundsMember2021-03-31 0001296445us-gaap:ForeignCorporateDebtSecuritiesMember2021-03-31 0001296445us-gaap:MunicipalBondsMember2021-03-31 0001296445us-gaap:CashAndCashEquivalentsMember2021-03-31 0001296445ora:MaturityLessThan12MonthsMemberus-gaap:CorporateDebtSecuritiesMember2021-03-31 0001296445ora:MaturityGreaterThan12MonthsMemberus-gaap:CorporateDebtSecuritiesMember2021-03-31 0001296445ora:MaturityLessThan12MonthsMemberus-gaap:CommercialPaperMember2021-03-31 0001296445ora:MaturityGreaterThan12MonthsMemberus-gaap:CommercialPaperMember2021-03-31 0001296445ora:MaturityLessThan12MonthsMemberus-gaap:MoneyMarketFundsMember2021-03-31 0001296445ora:MaturityGreaterThan12MonthsMemberus-gaap:MoneyMarketFundsMember2021-03-31 0001296445ora:MaturityLessThan12MonthsMemberus-gaap:ForeignCorporateDebtSecuritiesMember2021-03-31 0001296445ora:MaturityGreaterThan12MonthsMemberus-gaap:ForeignCorporateDebtSecuritiesMember2021-03-31 0001296445ora:MaturityLessThan12MonthsMemberus-gaap:MunicipalBondsMember2021-03-31 0001296445ora:MaturityGreaterThan12MonthsMemberus-gaap:MunicipalBondsMember2021-03-31 0001296445ora:MaturityLessThan12MonthsMember2021-03-31 0001296445ora:MaturityGreaterThan12MonthsMember2021-03-31 0001296445us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:SwapTransactionOnRRSPricesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:SwapTransactionOnRRSPricesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:SwapTransactionOnRRSPricesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:SwapTransactionOnRRSPricesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:SwapTransactionOnRRSPricesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:ContingentPayableMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:ContingentPayableMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:ContingentPayableMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:ContingentPayableMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:ContingentPayableMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:ContingentReceivableMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:ContingentReceivableMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:ContingentReceivableMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:ContingentReceivableMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:ContingentReceivableMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:ContingentPayableMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:ContingentPayableMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:ContingentPayableMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:ContingentPayableMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:ContingentPayableMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:DepositsAndOtherAndAccountsPayableAndAccruedExpensesMemberus-gaap:CrossCurrencyInterestRateContractMember2021-03-31 0001296445ora:DepositsAndOtherAndAccountsPayableAndAccruedExpensesMemberus-gaap:CrossCurrencyInterestRateContractMember2020-12-31 0001296445ora:SwapTransactionOnRRSPricesMemberus-gaap:ForeignCurrencyGainLossMember2021-01-012021-03-31 0001296445ora:SwapTransactionOnRRSPricesMemberus-gaap:ForeignCurrencyGainLossMember2020-01-012020-03-30 0001296445ora:CurrencyForwardContractsMemberus-gaap:ForeignCurrencyGainLossMember2021-01-012021-03-31 0001296445ora:CurrencyForwardContractsMemberus-gaap:ForeignCurrencyGainLossMember2020-01-012020-03-30 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:ForeignCurrencyGainLossMember2021-01-012021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:ForeignCurrencyGainLossMember2020-01-012020-03-30 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2020-12-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-01-012021-03-31 0001296445us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2021-03-31 0001296445ora:OlkariaIIIOPICMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:OlkariaIIIOPICMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:OlkariaIIIOPICMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:OlkariaIIIOPICMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:OlkariaIIIPlant4LoanDeg2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:OlkariaIIIPlant4LoanDeg2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:OlkariaIIIPlant4LoanDeg2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:OlkariaIIIPlant4LoanDeg2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:OlkariaIIIPlant1LoanDeg3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:OlkariaIIIPlant1LoanDeg3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:OlkariaIIIPlant1LoanDeg3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:OlkariaIIIPlant1LoanDeg3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:PlatanaresLoanOpicMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:PlatanaresLoanOpicMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:PlatanaresLoanOpicMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:PlatanaresLoanOpicMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:AmatitlanLoanMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:AmatitlanLoanMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:AmatitlanLoanMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:AmatitlanLoanMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:OFCTwoSeniorSecuredNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:OFCTwoSeniorSecuredNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:OFCTwoSeniorSecuredNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:OFCTwoSeniorSecuredNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:DonACampbell1Dac1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:DonACampbell1Dac1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:DonACampbell1Dac1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:DonACampbell1Dac1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:USGPrudentialNVMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:USGPrudentialNVMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:USGPrudentialNVMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:USGPrudentialNVMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:USGPrudentialIDMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:USGPrudentialIDMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:USGPrudentialIDMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:USGPrudentialIDMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:USGDOEMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:USGDOEMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:USGDOEMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:USGDOEMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:SeniorUnsecuredBondsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:SeniorUnsecuredBondsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:SeniorUnsecuredBondsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:SeniorUnsecuredBondsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:SeniorUnsecuredLoanMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:SeniorUnsecuredLoanMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:SeniorUnsecuredLoanMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:SeniorUnsecuredLoanMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:PlumstrikerLoanAgreementMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-31 0001296445ora:PlumstrikerLoanAgreementMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-31 0001296445ora:PlumstrikerLoanAgreementMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-31 0001296445ora:PlumstrikerLoanAgreementMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31 0001296445ora:OlkariaIIIOPICMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:OlkariaIIIOPICMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:OlkariaIIIOPICMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:OlkariaIIIOPICMember2021-03-31 0001296445ora:OlkariaIIIPlant4LoanDeg2Memberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:OlkariaIIIPlant4LoanDeg2Memberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:OlkariaIIIPlant4LoanDeg2Memberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:OlkariaIIIPlant4LoanDeg2Member2021-03-31 0001296445ora:OlkariaIIIPlant1LoanDeg3Memberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:OlkariaIIIPlant1LoanDeg3Memberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:OlkariaIIIPlant1LoanDeg3Memberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:OlkariaIIIPlant1LoanDeg3Member2021-03-31 0001296445ora:PlatanaresLoanOpicMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:PlatanaresLoanOpicMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:PlatanaresLoanOpicMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:PlatanaresLoanOpicMember2021-03-31 0001296445ora:AmatitlanLoanMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:AmatitlanLoanMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:AmatitlanLoanMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:AmatitlanLoanMember2021-03-31 0001296445ora:OFCSeniorSecuredNotesMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:OFCSeniorSecuredNotesMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:OFCSeniorSecuredNotesMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:OFCSeniorSecuredNotesMember2021-03-31 0001296445ora:DonACampbell1Dac1Memberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:DonACampbell1Dac1Memberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:DonACampbell1Dac1Memberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:DonACampbell1Dac1Member2021-03-31 0001296445ora:USGPrudentialNVMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:USGPrudentialNVMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:USGPrudentialNVMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:USGPrudentialNVMember2021-03-31 0001296445ora:USGPrudentialIDMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:USGPrudentialIDMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:USGPrudentialIDMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:USGPrudentialIDMember2021-03-31 0001296445ora:USGDOEMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:USGDOEMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:USGDOEMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:USGDOEMember2021-03-31 0001296445ora:SeniorUnsecuredBondsMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:SeniorUnsecuredBondsMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:SeniorUnsecuredBondsMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:SeniorUnsecuredBondsMember2021-03-31 0001296445ora:SeniorUnsecuredLoanMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:SeniorUnsecuredLoanMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:SeniorUnsecuredLoanMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:SeniorUnsecuredLoanMember2021-03-31 0001296445ora:PlumstrikerLoanAgreementMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:PlumstrikerLoanAgreementMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:PlumstrikerLoanAgreementMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:PlumstrikerLoanAgreementMember2021-03-31 0001296445ora:OtherLongtermDebtMemberus-gaap:FairValueInputsLevel1Member2021-03-31 0001296445ora:OtherLongtermDebtMemberus-gaap:FairValueInputsLevel2Member2021-03-31 0001296445ora:OtherLongtermDebtMemberus-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:OtherLongtermDebtMember2021-03-31 0001296445us-gaap:FairValueInputsLevel1Member2021-03-31 0001296445us-gaap:FairValueInputsLevel2Member2021-03-31 0001296445us-gaap:FairValueInputsLevel3Member2021-03-31 0001296445ora:OlkariaIIIOPICMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:OlkariaIIIOPICMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:OlkariaIIIOPICMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:OlkariaIIIOPICMember2020-12-31 0001296445ora:OlkariaIVLoanDeg2Memberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:OlkariaIVLoanDeg2Memberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:OlkariaIVLoanDeg2Memberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:OlkariaIVLoanDeg2Member2020-12-31 0001296445ora:OlkariaIVLoanDEG3Memberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:OlkariaIVLoanDEG3Memberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:OlkariaIVLoanDEG3Memberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:OlkariaIVLoanDEG3Member2020-12-31 0001296445ora:PlatanaresLoanOpicMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:PlatanaresLoanOpicMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:PlatanaresLoanOpicMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:PlatanaresLoanOpicMember2020-12-31 0001296445ora:AmatitlanLoanMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:AmatitlanLoanMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:AmatitlanLoanMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:AmatitlanLoanMember2020-12-31 0001296445ora:OFCSeniorSecuredNotesMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:OFCSeniorSecuredNotesMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:OFCSeniorSecuredNotesMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:OFCSeniorSecuredNotesMember2020-12-31 0001296445ora:DonACampbell1Dac1Memberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:DonACampbell1Dac1Memberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:DonACampbell1Dac1Memberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:DonACampbell1Dac1Member2020-12-31 0001296445ora:USGPrudentialNVMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:USGPrudentialNVMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:USGPrudentialNVMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:USGPrudentialNVMember2020-12-31 0001296445ora:USGPrudentialIDMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:USGPrudentialIDMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:USGPrudentialIDMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:USGPrudentialIDMember2020-12-31 0001296445ora:USGDOEMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:USGDOEMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:USGDOEMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:USGDOEMember2020-12-31 0001296445ora:SeniorUnsecuredBondsMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:SeniorUnsecuredBondsMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:SeniorUnsecuredBondsMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:SeniorUnsecuredBondsMember2020-12-31 0001296445ora:SeniorUnsecuredLoanMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:SeniorUnsecuredLoanMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:SeniorUnsecuredLoanMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:SeniorUnsecuredLoanMember2020-12-31 0001296445ora:PlumstrikerLoanAgreementMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:PlumstrikerLoanAgreementMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:PlumstrikerLoanAgreementMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:PlumstrikerLoanAgreementMember2020-12-31 0001296445ora:OtherLongtermDebtMemberus-gaap:FairValueInputsLevel1Member2020-12-31 0001296445ora:OtherLongtermDebtMemberus-gaap:FairValueInputsLevel2Member2020-12-31 0001296445ora:OtherLongtermDebtMemberus-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:OtherLongtermDebtMember2020-12-31 0001296445us-gaap:FairValueInputsLevel1Member2020-12-31 0001296445us-gaap:FairValueInputsLevel2Member2020-12-31 0001296445us-gaap:FairValueInputsLevel3Member2020-12-31 0001296445ora:ElectricitySegmentMembercountry:US2021-01-012021-03-31 0001296445ora:ProductSegmentMembercountry:US2021-01-012021-03-31 0001296445us-gaap:AllOtherSegmentsMembercountry:US2021-01-012021-03-31 0001296445country:US2021-01-012021-03-31 0001296445ora:ElectricitySegmentMemberus-gaap:NonUsMember2021-01-012021-03-31 0001296445ora:ProductSegmentMemberus-gaap:NonUsMember2021-01-012021-03-31 0001296445us-gaap:AllOtherSegmentsMemberus-gaap:NonUsMember2021-01-012021-03-31 0001296445us-gaap:NonUsMember2021-01-012021-03-31 0001296445ora:ElectricitySegmentMember2021-01-012021-03-31 0001296445ora:ProductSegmentMember2021-01-012021-03-31 0001296445us-gaap:AllOtherSegmentsMember2021-01-012021-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberora:ElectricitySegmentMember2021-01-012021-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberora:ProductSegmentMember2021-01-012021-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberus-gaap:AllOtherSegmentsMember2021-01-012021-03-31 0001296445us-gaap:MaterialReconcilingItemsMember2021-01-012021-03-31 0001296445ora:ElectricitySegmentMember2021-03-31 0001296445ora:ProductSegmentMember2021-03-31 0001296445us-gaap:AllOtherSegmentsMember2021-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberora:ElectricitySegmentMember2021-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberora:ProductSegmentMember2021-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberus-gaap:AllOtherSegmentsMember2021-03-31 0001296445us-gaap:MaterialReconcilingItemsMember2021-03-31 0001296445ora:ElectricitySegmentMembercountry:US2020-01-012020-03-31 0001296445ora:ProductSegmentMembercountry:US2020-01-012020-03-31 0001296445us-gaap:AllOtherSegmentsMembercountry:US2020-01-012020-03-31 0001296445country:US2020-01-012020-03-31 0001296445ora:ElectricitySegmentMemberus-gaap:NonUsMember2020-01-012020-03-31 0001296445ora:ProductSegmentMemberus-gaap:NonUsMember2020-01-012020-03-31 0001296445us-gaap:AllOtherSegmentsMemberus-gaap:NonUsMember2020-01-012020-03-31 0001296445us-gaap:NonUsMember2020-01-012020-03-31 0001296445ora:ElectricitySegmentMember2020-01-012020-03-31 0001296445ora:ProductSegmentMember2020-01-012020-03-31 0001296445us-gaap:AllOtherSegmentsMember2020-01-012020-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberora:ElectricitySegmentMember2020-01-012020-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberora:ProductSegmentMember2020-01-012020-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberus-gaap:AllOtherSegmentsMember2020-01-012020-03-31 0001296445us-gaap:MaterialReconcilingItemsMember2020-01-012020-03-31 0001296445ora:ElectricitySegmentMember2020-03-31 0001296445ora:ProductSegmentMember2020-03-31 0001296445us-gaap:AllOtherSegmentsMember2020-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberora:ElectricitySegmentMember2020-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberora:ProductSegmentMember2020-03-31 0001296445us-gaap:MaterialReconcilingItemsMemberus-gaap:AllOtherSegmentsMember2020-03-31 0001296445us-gaap:MaterialReconcilingItemsMember2020-03-31 0001296445us-gaap:AccountingStandardsUpdate201409Memberora:ElectricitySegmentMember2021-01-012021-03-31 0001296445us-gaap:AccountingStandardsUpdate201409Memberora:ElectricitySegmentMember2020-01-012020-03-31 0001296445ora:EnergyStorageAndManagementServicesMember2021-03-31 0001296445ora:EnergyStorageAndManagementServicesMember2020-03-31 0001296445us-gaap:IntersegmentEliminationMember2021-01-012021-03-31 0001296445us-gaap:IntersegmentEliminationMember2020-01-012020-03-31 0001296445srt:ConsolidationEliminationsMember2021-01-012021-03-31 0001296445srt:ConsolidationEliminationsMember2020-01-012020-03-31 0001296445ora:FormerLocalSalesRepresentativeVsOrmatMemberus-gaap:PendingLitigationMember2016-03-292016-03-29 0001296445ora:AvishaiShmuelManoVsOrmatMember2021-03-032021-03-03 0001296445us-gaap:SubsequentEventMember2021-05-052021-05-05
 


Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


Form 10-Q 


 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the quarterly period ended March 31, 2021

 

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to

 

Commission file number: 001-32347

 

ORMAT TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

88-0326081

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification Number)

  

6140 Plumas Street, Reno, Nevada

89519-6075

(Address of principal executive offices)

(Zip Code)

 

(775) 356-9029

(Registrants telephone number, including area code)  

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☑     No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☑     No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large accelerated filer ☑

Accelerated filer ☐    

Non-accelerated filer ☐    

Smaller reporting company 

Emerging growth company 

   

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes     ☑ No

 

As of April 30, 2021, the number of outstanding shares of common stock, par value $0.001 per share, was 55,984,392.

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

ORA

NYSE

 



 

 

 
 

 

ORMAT TECHNOLOGIES, INC.

 

FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2021

 

PART I  FINANCIAL INFORMATION

 
   

ITEM 1.

FINANCIAL STATEMENTS

4

     

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION  AND RESULTS OF OPERATIONS

28

     

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

51

     

ITEM 4.

CONTROLS AND PROCEDURES

51

     

PART II  OTHER INFORMATION

52

   

ITEM 1.

LEGAL PROCEEDINGS

52

     

ITEM 1A.

RISK FACTORS

52

     

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

52

     

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

52

     

ITEM 4.

MINE SAFETY DISCLOSURES

52

     

ITEM 5.

OTHER INFORMATION

52

     

ITEM 6.

EXHIBITS

52

     

SIGNATURES

54

 

ii

 

Certain Definitions

 

Unless the context otherwise requires, all references in this quarterly report to Ormat, the Company, we, us, our company, Ormat Technologies or our refer to Ormat Technologies, Inc. and its consolidated subsidiaries.

 

iii

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENT

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

  

March 31,

2021

  

December 31,

2020

 
  

(Dollars in thousands)

 
ASSETS        

Current assets:

        

Cash and cash equivalents

 $376,630  $448,252 

Marketable securities at fair value

  27,735    

Restricted cash and cash equivalents (primarily related to VIEs)

  88,449   88,526 

Receivables:

        

Trade less allowance for credit losses of $597 and $597, respectively (primarily related to VIEs)

  139,711   149,170 

Other

  10,513   17,987 

Inventories

  38,408   35,321 

Costs and estimated earnings in excess of billings on uncompleted contracts

  20,876   24,544 

Prepaid expenses and other

  22,613   15,354 

Total current assets

  724,935   779,154 

Investment in unconsolidated companies

  104,519   98,217 

Deposits and other

  52,956   66,989 

Deferred income taxes

  119,217   119,299 

Property, plant and equipment, net ($2,012,052 and $1,978,220 related to VIEs, respectively)

  2,148,589   2,099,046 

Construction-in-process ($208,972 and $198,812 related to VIEs, respectively)

  471,548   479,315 

Operating leases right of use ($4,589 and $4,712 related to VIEs, respectively)

  15,627   16,347 

Finance leases right of use ($289 and $7,001 related to VIEs, respectively)

  8,336   11,633 

Intangible assets, net

  189,249   194,421 

Goodwill

  24,237   24,566 

Total assets

 $3,859,213  $3,888,987 
         
LIABILITIES AND EQUITY        

Current liabilities:

        

Accounts payable and accrued expenses

 $148,071  $152,763 

Billings in excess of costs and estimated earnings on uncompleted contracts

  12,686   11,179 

Current portion of long-term debt:

        

Limited and non-recourse (primarily related to VIEs):

        

Senior secured notes

  24,963   24,949 

Other loans

  36,240   35,897 

Full recourse

  26,168   17,768 

Operating lease liabilities

  2,935   2,922 

Finance lease liabilities

  3,171   3,169 

Total current liabilities

  254,234   248,647 

Long-term debt, net of current portion:

        

Limited and non-recourse (primarily related to VIEs):

        

 

4

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

Senior secured notes (less deferred financing costs of $5,082 and $5,318, respectively)

  306,891   315,195 

Other loans (less deferred financing costs of $8,132 and $8,557, respectively)

  276,186   284,928 

Full recourse:

        

Senior unsecured bonds (less deferred financing costs of $1,996 and $2,086, respectively)

  698,271   717,534 

Other loans (less deferred financing costs of $1,295 and $1,340, respectively)

  59,601   59,556 

Operating lease liabilities

  12,332   12,897 

Finance lease liabilities

  5,851   9,104 

Liability associated with sale of tax benefits

  107,105   111,476 

Deferred income taxes

  87,421   87,972 

Liability for unrecognized tax benefits

  3,094   1,970 

Liabilities for severance pay

  18,202   18,749 

Asset retirement obligation

  64,354   63,457 

Other long-term liabilities

  6,086   6,235 

Total liabilities

  1,899,628   1,937,720 
         

Commitments and contingencies (Note 10)

          
         

Redeemable noncontrolling interest

  9,706   9,830 
         

Equity:

        

The Company's stockholders' equity:

        

Common stock, par value $0.001 per share; 200,000,000 shares authorized; 55,984,392 and 55,983,259 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively

  56   56 

Additional paid-in capital

  1,264,828   1,262,446 

Retained earnings

  558,644   550,103 

Accumulated other comprehensive income (loss)

  (6,920)  (6,620)

Total stockholders' equity attributable to Company's stockholders

  1,816,608   1,805,985 

Noncontrolling interest

  133,271   135,452 

Total equity

  1,949,879   1,941,437 

Total liabilities, redeemable noncontrolling interest and equity

 $3,859,213  $3,888,987 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

5

 

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

(Unaudited)

 

  

Three Months Ended

March 31,

 
  

2021

  

2020

 
  

(Dollars in thousands,

except per share data)

 

Revenues:

        

Electricity

 $144,988  $142,856 

Product

  8,643   47,411 

Energy storage

  12,721   1,846 

Total revenues

  166,352   192,113 

Cost of revenues:

        

Electricity

  79,851   71,368 

Product

  8,074   36,978 

Energy storage

  4,780   1,949 

Total cost of revenues

  92,705   110,295 

Gross profit

  73,647   81,818 

Operating expenses:

        

Research and development expenses

  876   1,619 

Selling and marketing expenses

  4,276   4,794 

General and administrative expenses

  18,606   16,745 

Business interruption insurance income

     (2,397)

Operating income

  49,889   61,057 

Other income (expense):

        

Interest income

  263   402 

Interest expense, net

  (19,016)  (17,273)

Derivatives and foreign currency transaction gains (losses)

  (16,866)  393 

Income attributable to sale of tax benefits

  6,355   4,132 

Other non-operating income (expense), net

  (331)  78 

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

  20,294   48,789 

Income tax (provision) benefit

  (3,007)  (18,148)

Equity in earnings (losses) of investees, net

  542   (735)

Net income

  17,829   29,906 

Net income attributable to noncontrolling interest

  (2,570)  (3,873)

Net income attributable to the Company's stockholders

 $15,259  $26,033 

Comprehensive income:

        

Net income

  17,829   29,906 

Other comprehensive income (loss), net of related taxes:

        

Change in foreign currency translation adjustments

  (1,826)  (645)

Change in unrealized gains or losses in respect of the Company's share in derivatives instruments of unconsolidated investment

  3,755   (4,755)

Change in unrealized gains or losses in respect of a cross currency swap derivative instrument that qualifies as a cash flow hedge

  (2,798)   

Change in unrealized gains or losses on marketable securities available-for-sale (net of related tax of $0)

  (20)   

Other changes in comprehensive income

  16   5 

Comprehensive income

  16,956   24,511 

Comprehensive income attributable to noncontrolling interest

  (1,997)  (3,486)

Comprehensive income attributable to the Company's stockholders

 $14,959  $21,025 
         

Earnings per share attributable to the Company's stockholders:

        

Basic:

  0.27   0.51 

Diluted:

  0.27   0.51 

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

        

Basic

  55,988   51,036 

Diluted

  56,735   51,526 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

6

 

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

 

  

The Company's Stockholders' Equity

 
                  

Accumulated

             
          

Additional

      

Other

             
  

Common Stock

  

Paid-in

  

Retained

  

Comprehensive

      

Noncontrolling

  

Total

 
  

Shares

  

Amount

  

Capital

  

Earnings

  

Income (Loss)

  

Total

  

Interest

  

Equity

 
  

(Dollars in thousands, except per share data)

 

Balance at December 31, 2019

  51,032  $51  $913,150  $487,873  $(8,654) $1,392,420  $122,990  $1,515,410 

Cumulative effect of changes in accounting principles

           (755)     (755)     (755)

Adjusted balance as of the beginning of the year

  51,032   51   913,150   487,118   (8,654)  1,391,665   122,990   1,514,655 

Stock-based compensation

        1,989         1,989      1,989 

Exercise of stock-based awards by employees and directors

  4                      

Cash paid to noncontrolling interest

                    (3,007)  (3,007)

Cash dividend declared, $0.11 per share

           (5,614)     (5,614)     (5,614)

Increase in noncontrolling interest

                    1,447   1,447 

Net income

           26,033      26,033   3,543   29,576 

Other comprehensive income (loss), net of related taxes:

                                

Foreign currency translation adjustments

              (258)  (258)  (387)  (645)

Change in respect of derivative instruments designated for cash flow hedge

              13   13      13 

Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment

              (4,755)  (4,755)     (4,755)

Amortization of unrealized gains in respect of derivative instruments designated for cash flow hedge

              (8)  (8)     (8)

Balance at March 31, 2020

  51,036  $51  $915,139  $507,537  $(13,662) $1,409,065  $124,586  $1,533,651 
                                 
                                 

Balance at December 31, 2020

  55,983  $56  $1,262,446  $550,103  $(6,620) $1,805,985  $135,452  $1,941,437 

Stock-based compensation

        2,097         2,097      2,097 

Exercise of stock-based awards by employees and directors

  1                      

Stock issuance costs reimbursement

        285         285      285 

Cash paid to noncontrolling interest

                    (3,898)  (3,898)

Cash dividend declared, $0.12 per share

           (6,718)     (6,718)     (6,718)

Net income

           15,259      15,259   2,290   17,549 

Other comprehensive income (loss), net of related taxes:

                                

Foreign currency translation adjustments

              (1,253)  (1,253)  (573)  (1,826)

Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment

              3,755   3,755      3,755 

Change in unrealized gains or losses in respect of a cross currency swap derivative instrument that qualifies as a cash flow hedge

              (2,798)  (2,798)     (2,798)

Unrealized gains (losses) in respect of investment in marketable securities (net of related tax of $0)

              (20)  (20)     (20)

Other comprehensive income (loss)

              16   16      16 

Balance at March 31, 2021

  55,984  $56  $1,264,828  $558,644  $(6,920) $1,816,608  $133,271  $1,949,879 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

7

 

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited) 

 

   

Three Months Ended

March 31,

 
   

2021

   

2020

 
   

(Dollars in thousands)

 

Cash flows from operating activities:

               

Net income

  $ 17,829     $ 29,906  

Adjustments to reconcile net income to net cash provided by operating activities:

               

Depreciation and amortization

    42,100       36,952  

Accretion of asset retirement obligation

    955       772  

Stock-based compensation

    2,097       1,989  

Income attributable to sale of tax benefits, net of interest expense

    (4,245 )     (2,087 )

Equity in losses (earnings) of investees

    (542 )     735  

Mark-to-market of derivative instruments

    2,086       (561 )

Loss on disposal of property, plant and equipment

    91       88  

Loss (gain) on severance pay fund asset

    358       535  

Deferred income tax provision

    (83 )     15,123  

Liability for unrecognized tax benefits

    1,124       (83 )

Changes in operating assets and liabilities, net of businesses acquired:

               

Receivables

    8,856       (25,008 )

Costs and estimated earnings in excess of billings on uncompleted contracts

    3,668       16,060  

Inventories

    (3,087 )     842  

Prepaid expenses and other

    (7,259 )     1,211  

Change in operating lease right of use asset

    658       784  

Deposits and other

    92       343  

Accounts payable and accrued expenses

    3,794       350  

Billings in excess of costs and estimated earnings on uncompleted contracts

    1,507       3,182  

Liabilities for severance pay

    (547 )     (543 )

Change in operating lease liabilities

    (493 )     (734 )

Other long-term liabilities

    (35 )     (100 )

Net cash provided by operating activities

    68,924       79,756  

Cash flows from investing activities:

               

Purchase of marketable securities

    (27,755 )      

Capital expenditures

    (87,896 )     (80,375 )

Investment in unconsolidated companies

    (2,005 )     (358 )

Decrease (increase) in severance pay fund asset, net of payments made to retired employees

    182       (87 )

Net cash used in investing activities

    (117,474 )     (80,820 )

Cash flows from financing activities:

               

Repayments of commercial paper and prepayment of loans

          (41,725 )

Proceeds from revolving credit lines with banks

          872,900  

Repayment of revolving credit lines with banks

          (642,950 )

Cash received from noncontrolling interest

    5,390       6,270  

Repayments of long-term debt

    (16,573 )     (16,416 )

Stock issuance costs reimbursement

    285        

Cash paid to noncontrolling interest

    (4,197 )     (3,279 )

Payments under finance lease obligations

    (764 )     (675 )

Deferred debt issuance costs

    (230 )     (416 )

Cash dividends paid

    (6,718 )     (5,614 )

Net cash provided by (used in) financing activities

    (22,807 )     168,095  

Effect of exchange rate changes

    (342 )     (365 )

Net change in cash and cash equivalents and restricted cash and cash equivalents

    (71,699 )     166,666  

Cash and cash equivalents and restricted cash and cash equivalents at beginning of period

    536,778       153,110  

Cash and cash equivalents and restricted cash and cash equivalents at end of period

  $ 465,079     $ 319,776  

Supplemental non-cash investing and financing activities:

               

Increase (decrease) in accounts payable related to purchases of property, plant and equipment

  $ (8,732 )   $ (1,436 )

Right of use assets obtained in exchange for new lease liabilities

  $ 467     $ 1,194  

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

8

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

 

NOTE 1 — GENERAL AND BASIS OF PRESENTATION

 

These unaudited condensed consolidated interim financial statements of Ormat Technologies, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Accordingly, they do not contain all information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s condensed consolidated financial position as of March 31, 2021, the condensed consolidated statements of operations and comprehensive income and the condensed consolidated statements of equity for the three months ended March 31, 2021 and 2020 and the condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2020.

 

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

 

These condensed unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The condensed consolidated balance sheet data as of December 31, 2020 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2020 but does not include all disclosures required by U.S. GAAP.

 

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

 

 

COVID-19 consideration

 

In March 2020, the World Health Organization declared the outbreak of the novel coronavirus ("COVID-19") a pandemic. Since that time through the date of this report, the Company has implemented significant measures in order to meet government requirements and preserve the health and safety of its employees, including by working remotely and adopting separate shifts in its power plants, manufacturing facilities and other locations while at the same time trying to continue operations at close to full capacity in all locations. Since the end of the first quarter of 2021, the Company has experienced on one hand an easing of government restrictions in a few countries, mainly in Israel, and on the other hand a tightening of restrictions in other countries such as in Kenya, which has been under lockdown since the beginning of April of 2021. With respect to its employees, the Company has not laid-off or furloughed any employees due to the COVID-19 and continued to pay full salaries. In addition, the Company focused efforts on adjusting its operations to mitigate the impact of COVID-19 including managing its global supply chain risks and enhancing its liquidity profile. The Company took prompt steps to manage its expenses including responsible cost cutting measures and in addition, in order to support its capital expenditure and growth plans, in 2020 the Company raised $419.3 million through long term loans and $339.5 million through a public offering of its common stock. As most of the Company's electricity revenues are generated under long term contracts, the majority of which are under a fixed energy rate, the impact of COVID-19 on electricity revenues was limited. Nevertheless, during 2020 the Company received notices declaring a force majeure event in Kenya from Kenya Power and Lighting Co. Ltd. ("KPLC") and in Honduras from Empresa Nacional de Energía Eléctrica ("ENEE"), both of which had an immaterial impact and were ultimately removed during the year. In addition, the Company experienced a higher rate of curtailments during 2020 from KPLC in respect of its Olkaria complex and continued to experience certain curtailments in the first quarter of 2021.

 

In the Product segment, the Company experienced a significant decline in product backlog, which it believes resulted mainly due to the impact of COVID-19 and the unwillingness of potential customers to enter into new commitments at this time.

 

In the Energy Storage segment, revenues are generated primarily from participating in the energy and ancillary services markets and therefore are directly impacted by the prevailing energy prices in those markets.

 

While the extent and duration of the economic downturn from the COVID-19 pandemic remains unclear, the Company has considered, among other things, whether the global operational disruptions indicate a change in circumstances that may trigger asset impairments and whether it needs to revisit accounting estimates and projections or its expectations about collectability of receivables. Additionally, the Company has considered the potential impacts on its fair value disclosures and on its internal control over financial reporting and while significant uncertainty still exists concerning the magnitude of the impact and duration of the COVID-19 pandemic on the global economy, the Company has determined that there was no triggering event for an impairment with respect to any of its assets nor has there been an adverse change in the probability related to the collectability of its receivables. The Company continues to assess the potential impact of the global economic situation on its consolidated financial statements.

 

9

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

 

Puna Power Plant

 

On May 3, 2018, the Kilauea volcano located in close proximity to the Company's 38 MW Puna 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 some of which denied the full amount of our claim asserting that our insurance policy has coverage limitations. The Company has filed a lawsuit against those insurers that have not accepted its insurance claim. During the first quarter of 2021, the Company did not recognize any insurance income.

 

The Puna power plant resumed operations in November 2020 following a shut down period as a result of the damage caused by the volcano eruption and is currently operating at approximately 20 MW. On the field side, the Company connected one new injection well and another well is planned to be connected during the second quarter of 2021. It is expected that the operation of these two injection wells along with repairs to a bottoming turbine unit will gradually increase generating capacity of the Puna power plant to near its full levels by mid-2021, assuming connection of the wells to the power plant will be successful.

 

In December 2019, Puna Geothermal Venture ("PGV") and Hawaii Electric Light Company's ("HELCO") subsidiary reached an agreement on an amended and restated power purchase agreement ("PPA") for dispatchable geothermal power to be sold from the Puna complex. The new PPA, which is subject to Public Utility Commission (“PUC”) approval, extends the term until 2052 with an increased contract capacity of 46 MW and fixes the price with no escalation, regardless of changes to fossil fuel pricing. On March 31, 2021, the PUC issued an order suspending the request to approve the PPA application until an environmental review is conducted on the proposed expansion, and ordered the parties to renegotiate the PPA rates. HELCO and PGV have filed motions, which are pending, for reconsideration of the order with the PUC. The existing PPA remains in effect, with its current terms, until the expansion is completed and the new plant reaches its Commercial Operation Date ("COD").

 

The Company continues to assess the accounting implications of these events on its assets and liabilities and whether any related assets may be impaired. As of March 31, 2021, the Company assessed that no impairment was required.

 

February power crisis in Texas

 

In February 2021, extreme weather conditions in Texas resulted in a significant increase in demand for electricity on the one hand and a decrease in electricity supply in the region on the other hand. On February 15, 2021, the Electricity Reliability Council of Texas (“ERCOT”) issued an Energy Emergency Alert Level 3 ("EEA 3") prompting rotating outages in Texas. This ultimately led to a significant increase in the Responsive Reserve Service (“RRS”) market prices, where the Company operates its Rabbit Hill battery energy storage facility which provides ancillary services and energy optimization to the wholesale markets managed by ERCOT. Due to the electricity supply shortage, ERCOT restricted battery charging in the Rabbit Hill facility from February 16, 2021 to February 19, 2021, resulting in a limited ability of the Rabbit Hill storage facility to provide RRS. As a result, the Company incurred losses of approximately $9.1 million, net of associated revenues, from a hedge transaction in relation to its inability to provide RRS during that period and that it does not expect to recover from the market. Starting February 19, 2021, the Rabbit Hill energy storage facility resumed operation at full capacity.

 

In addition, the Company recorded a provision for approximately $3.0 million for receivables related to imbalance charges from the grid operator in respect of its demand response operation as it estimated it is probable it may be unable to collect such receivables. The provision for uncollectible receivables is included in "General and administrative expenses" in the condensed consolidated statements of operations and comprehensive income.

 

The Company is currently in discussions with ERCOT with respect to some of the imbalance charges and revenue allocated to its Demand Response services and customers, the outcome of which at may impact the final amount.

 

Write-offs of unsuccessful exploration activities

 

There were no write-offs of unsuccessful exploration activities for the three months ended March 31, 2021 and 2020.

 

10

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

 

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

 

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

 

  

March 31,

  

December 31,

  

March 31,

 
  

2021

  

2020

  

2020

 
  

(Dollars in thousands)

 

Cash and cash equivalents

 $376,630  $448,252  $231,149 

Restricted cash and cash equivalents

  88,449   88,526   88,627 

Total Cash and cash equivalents and restricted cash and cash equivalents

 $465,079  $536,778  $319,776 

 

Concentration of credit risk

 

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

 

The Company places its temporary cash investments with high credit quality financial institutions located in the United States (“U.S.”) and in foreign countries. At March 31, 2021 and December 31, 2020, the Company had deposits totaling $29.6 million and $18.9 million, respectively, in ten U.S. financial institutions that were federally insured up to $250,000 per account. At March 31, 2021 and December 31, 2020, the Company’s deposits in foreign countries amounted to approximately $75.4 million and $72.4 million, respectively.

 

At March 31, 2021 and December 31, 2020, accounts receivable related to operations in foreign countries amounted to approximately $102.8 million and $111.3 million, respectively. At March 31, 2021 and December 31, 2020, accounts receivable from the Company’s primary customers, which each accounted for revenues in excess of 10% of total consolidated revenues for the related period, amounted to approximately 67% and 65% of the Company’s trade receivables, respectively.

 

The Company's revenues from its primary customers as a percentage of total revenues are as follows:

 

  

Three Months Ended March 31,

 
  

2021

  

2020

 

Sierra Pacific Power Company and Nevada Power Company

  21.4

%

  19.2

%

Southern California Public Power Authority (“SCPPA”)

  24.9   18.7 

Kenya Power and Lighting Co. Ltd. ("KPLC")

  15.6   15.4 

 

The Company has historically been able to collect on substantially all of its receivable balances. As of March 31, 2021, the amount overdue from KPLC in Kenya was $47.3 million of which $10.7 million was paid during April 2021. These amounts represent an average of 76 days overdue. The Company believes it will be able to collect all past due amounts in Kenya. This belief is supported by the fact that in addition to KPLC's obligations under its power purchase agreement, the Company holds a support letter from the Government of Kenya that covers certain cases of KPLC non-payment (such as where caused by government actions/political events). Additionally, the Company continued to experience certain curtailments in the first quarter of 2021 by KPLC in the Olkaria complex. The impact of the curtailments is limited as the structure of the PPA secures the vast majority of the Company's revenues with fixed capacity payments unrelated to the electricity actually generated. 

 

In Honduras, as of March 31, 2021, the total amount overdue from ENEE was $5.5 million, of which the Company received payment of $2.4 million in April 2021. In addition, due to continuing restrictive measures related to the COVID-19 pandemic in Honduras, the Company may experience additional delays in collection.

 

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

 

11

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

 

A

llowance for credit losses

 

The Company performs an analysis of potential credit losses related to its financial instruments that are within the scope of ASU 2018-19, Codification Improvements to Topic 325, Financial Instruments – Credit Losses, primarily cash and cash equivalents, restricted cash and cash equivalents, investment in marketable securities, receivables (excluding those accounted under lease accounting) and costs and estimated earnings in excess of billings on uncompleted contracts, based on class of financing receivables which share the same or similar risk characteristics such as customer type and geographic location, among others. The Company estimates the expected credit losses for each class of financing receivables by applying the related corporate default rate which corresponds to the credit rating of the specific customer or class of financing receivables. For trade receivables, the Company applied this methodology using aging schedules reflecting how long the receivables have been outstanding. The Company has also considered the existence of credit enhancement arrangements that may mitigate the credit risk of its financial receivables in estimating the applicable corporate default rate. While significant uncertainty still exists concerning the magnitude of the impact and duration of the COVID-19 pandemic on the global economy, the Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly impacted. 

 

The following table describes the changes in the allowance for expected credit losses for the three months ended March 31, 2021 and 2020 (all related to trade receivables):

 

  

Three Months Ended March 31,

 
  

2021

  

2020

 
  

(Dollars in thousands)

 

Beginning balance of the allowance for expected credit losses

 $597  $755 

Change in the provision for expected credit losses for the period

     24 

Ending balance of the allowance for expected credit losses

 $597  $779 

 

Revenues from contracts with customers

 

Contract assets related to our Product segment reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities related to the Company's Product segment reflect payments received in advance of the satisfaction of performance under the contract. The Company receives payments from customers based on the terms established in the contracts. Total contract assets and contract liabilities as of March 31, 2021 and December 31, 2020 are as follows:

 

  

March 31,

  

December 31,

 
  

2021

  

2020

 
  

(Dollars in thousands)

 

Contract assets (*)

 $20,876  $24,544 

Contract liabilities (*)

 $(12,686) $(11,179)

 

(*) 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 not yet recognized as product revenues during the three months ended March 31, 2021 as a result of performance obligations having not yet been satisfied.

 

On March 31, 2021, the Company had approximately $37.1 million of remaining performance obligations not yet satisfied or partly satisfied related to our Product segment. The Company expects to recognize approximately 100% of this amount as Product revenues during the next 24 months.

 

Disaggregated revenues from contracts with customers for the three months ended March 31, 2021 and 2020 are disclosed under Note 9 - Business Segments, to the condensed consolidated financial statements.

 

12

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

 

Leases in which the Company is a lessor

 

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

 

  

Three Months Ended March 31,

 
  

2021

  

2020

 
  

(Dollars in thousands)

 

Lease income relating to lease payments from operating leases

 $125,746  $126,076 

 

Marketable securities

 

The Company’s investments in marketable securities consist of debt securities with maturity of up to one year and a high credit rating. The investments in marketable securities are classified as available-for-sale ("AFS") and thus measured at fair value based on quoted market prices. Unrealized gains and losses from AFS debt securities are excluded from earnings and reported net of the related tax effect in "Accumulated other comprehensive income (loss)". Realized gains and losses from sale of marketable securities, as determined on a specific identification basis, as well as interest income earned, are included in earnings. The Company considers available evidence in evaluating potential impairments of its investments, including credit market conditions, credit ratings of the security as well as the duration and extent to which fair value is less than amortized cost. The Company estimates the lifetime expected credit losses for all AFS debt securities in an unrealized loss position under its allowance for credit losses model. The Company assesses the security’s credit indicators, including credit ratings when estimating a security’s probability of default. If the assessment indicates that an expected credit loss exists, the Company determines the portion of the unrealized loss attributable to credit deterioration and records an allowance for the expected credit loss in earnings. Unrealized gains and losses attributable to non-credit factors are recorded in "Accumulated other comprehensive income (loss)", net of tax. Marketable debt securities with maturities of 90 days or less that meet all classification criteria of cash equivalents are presented under "Cash and cash equivalents" in the condensed consolidated balance sheets.

 

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. Changes in the fair value of derivatives not designated as hedging instruments are recognized in earnings. Changes in the fair value of derivatives designated as cash flow hedging instruments are initially recorded in "Other comprehensive income (loss)" and a corresponding amount is reclassified out of "Accumulated other comprehensive income (loss)" to earnings to offset the remeasurement of the underlying hedge transaction which also impacts the same line item in the consolidated statements of operations and comprehensive income.

 

The Company maintains a risk management strategy that may incorporate the use of swap contracts, put options, forward exchange contracts, interest rate swaps, and cross-currency swaps 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.

 

 

 

 

NOTE 2 NEW ACCOUNTING PRONOUNCEMENTS

 

New accounting pronouncements effective in the three months period ended March 31, 2021

 

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 simplifies 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. The Company adopted ASU 2019-12 on January 1, 2021. The adoption of of this update did not have a material impact on the Company's consolidated financial statements.

 

New accounting pronouncements effective in future periods 

 

There are no new applicable significant accounting pronouncements effective in future periods.

 

13

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

 

 

NOTE 3 INVENTORIES

 

Inventories consist of the following:

 

   

March 31,

   

December 31,

 
   

2021

   

2020

 
   

(Dollars in thousands)

 

Raw materials and purchased parts for assembly

  $ 14,081     $ 14,835  

Self-manufactured assembly parts and finished products

    24,327       20,486  

Total inventories

  $ 38,408     $ 35,321  

 

 

 

 

 

NOTE 4 MARKETABLE SECURITIES

 

Marketable securities are presented at fair value and include investments in debt securities classified as available for sale. All marketable securities have maturities of less than a year. Investment in marketable securities is comprised of the following:

 

  

March 31, 2021

 
  

Amortized cost

  

Gross

unrealized gains

  

Gross unrealized

losses

  

Fair value

 
  

(Dollars in thousands)

 

Debt security type:

                

Corporate bonds

 $17,578  $  $(12) $17,653 

Commercial paper

  7,768         7,768 

Money market funds

  3,751         3,751 

Foreign issuers

  2,856      (8)  2,873 

Municipal bonds

  931         937 

Total debt securities available for sale

 $32,884  $  $(20) $32,982 

 

As of March 31, 2021, approximately $5.2 million of debt securities were classified under "Cash and cash equivalents" in the condensed consolidated balance sheets as they met all applicable classification criteria.

 

14

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

 

The following table summarizes the fair value and gross unrealized losses of debt securities with unrealized losses aggregated by security type and length of time that the fair value had been below amortized cost, on an individual security basis:

 

  

March 31, 2021

 
  

Less than 12 months

  

Greater than 12 months

 
  

Fair value

  

Gross unrealized

loss

  

Fair value

  

Gross unrealized

loss

 
  

(Dollars in thousands)

 

Debt security type:

                

Corporate bonds

 $17,653  $(12) $  $ 

Commercial paper

  7,768          

Money market funds

  3,751          

Foreign issuers

  2,873   (8)      

Municipal bonds

  937          

Total debt securities available for sale

 $32,982  $(20) $  $ 

 

 

There were no sales of investments in debt securities during the three months ended March 31, 2021 and 2020.

 

15

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

 

 

NOTE 5 FAIR VALUE OF FINANCIAL INSTRUMENTS

 

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

 

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

 

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

 

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

 

The following table sets forth certain fair value information at March 31, 2021 and December 31, 2020 for financial assets and liabilities measured at fair value by level within the fair value hierarchy, as well as cost or amortized cost. As required by the fair value measurement guidance, assets and liabilities are classified in their entirety based on the lowest level of inputs that is significant to the fair value measurement.

 

      

March 31, 2021

 
      

Fair Value

 
  

Carrying

Value at

March 31,

2021

  

Total

  

Level 1

  

Level 2

  

Level 3

 
  

(Dollars in thousands)

 

Assets:

                    

Current assests:

                    

Cash equivalents (including restricted cash accounts)

 $39,229  $39,229  $39,229  $  $ 

Marketable securities (including cash equivalents)

  32,884   32,884   32,884       

Derivatives:

                    

Long-term Assets:

                    

Cross currency swap (3)

  14,419   14,419      14,419    

Liabilities:

                    

Current liabilities:

                    

Derivatives:

                    

Swap transaction on RRS prices (4)

  (14,540)  (14,540)  (14,540)      

Cross currency swap (3)

  (2,672)  (2,672)     (2,672)   

Currency forward contracts (2)

  (532)  (532)     (532)   

Long term liabilities:

                    

Contingent payables (1)

  (2,514)  (2,514)        (2,514)
  $66,274  $66,274  $57,573  $11,215  $(2,514)

 

16

 

ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

 

      

December 31, 2020

 
      

Fair Value

 
  

Carrying

Value at

December

31, 2020

  

Total

  

Level 1

  

Level 2

  

Level 3

 
  

(Dollars in thousands)

 

Assets

                    

Current assets:

                    

Cash equivalents (including restricted cash accounts)

 $28,653  $28,653  $28,653  $  $ 

Derivatives:

                    

Contingent receivables (1)

  111   111         111 

Currency forward contracts (2)

  1,554   1,554      1,554    

Long-term assets:

                    

Cross currency swap (3)

  27,829   27,829      27,829    

Liabilities:

                    

Current liabilities:

                    

Derivatives:

                    

Contingent payables (1)

  (549)  (549)        (549)

Cross currency swap (3)

  (2,283)  (2,283)     (2,283)   

Long-term liabilities:

                    

Contingent payables (1)

  (2,630)  (2,630)        (2,630)
  $52,685  $52,685  $28,653  $27,100  $(3,068