Segment Information (Text Block)

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information [Text Block]

Segment Information

We have two operating segments: Itron North America and Itron International. Itron North America generates the majority of its revenues in the United States and Canada, while Itron International generates the majority of its revenues in Europe, and the balance in Africa, Latin America, and Asia/Pacific.

On March 14, 2011, we announced a global reorganization in which the Company will be managed under two operating segments, Energy and Water. Although certain management positions of the Company’s two new operating segments have been identified, a transition to the new organizational structure, including changes to operations and financial and operational management systems will continue through the remainder of 2011. Throughout 2011, management and external financial reporting will be based on the current geographic operating segments, Itron North America and Itron International, as the new segment information will not be available until changes to the operations have occurred and new systems and processes are deployed. Financial reporting of the Energy and Water operating segments is expected in the first quarter of 2012.

We have three measures of segment performance: revenue, gross profit (margin), and operating income (margin). Intersegment revenues were minimal. Corporate operating expenses, interest income, interest expense, other income (expense), and income tax provision (benefit) are not allocated to the segments, nor included in the measure of segment profit or loss.

Segment Products

Itron North America

Standard electricity (electronic), gas, and water meters; advanced and smart electricity and water meters and communication modules; advanced and smart gas communication modules; advanced systems including handheld, mobile, and fixed network collection technologies; smart network technologies; meter data management software; knowledge application solutions; and professional services including implementation, installation, consulting, and analysis.

Itron International

Standard electricity (electromechanical and electronic), gas, and water meters; advanced electricity, gas, and water meters; advanced water communication modules; smart electricity meters and communication modules; prepayment systems, including smart key, keypad, and smart card communication technologies; advanced systems including handheld, mobile, and fixed network collection technologies; smart network technologies; meter data management software; knowledge application solutions; and professional services including implementation, installation, consulting/analysis, and system management.

Revenues, gross profit, and operating income associated with our segments were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
	(in thousands)
Revenues
Itron North America	$	288,224		$	301,143		$	565,206		$	542,702
Itron International	324,177			266,196			610,886			522,260
Total Company	$	612,401		$	567,339		$	1,176,092		$	1,064,962
Gross profit
Itron North America	$	96,958		$	100,972		$	191,680		$	179,131
Itron International	94,125			73,084			183,513			151,989
Total Company	$	191,083		$	174,056		$	375,193		$	331,120
Operating income (loss)
Itron North America	$	42,739		$	55,384		$	86,532		$	87,420
Itron International	16,483			5,017			32,711			15,454
Corporate unallocated	(11,137		)	(10,392		)	(21,069		)	(21,246		)
Total Company	48,085			50,009			98,174			81,628
Total other income (expense)	(13,729		)	(14,279		)	(27,131		)	(29,627		)
Income before income taxes	$	34,356		$	35,730		$	71,043		$	52,001

No single customer represented more than 10% of total Company revenues for the three and six months ended June 30, 2011, while one customer represented more than 10% of total Company revenues during the same periods in 2010. Two customers each accounted for more than 10% of Itron North America revenues for the three and six months ended June 30, 2011, while three customers each accounted for more than 10% of Itron North America revenues for the same periods in 2010. No single customer represented more than 10% of Itron International revenues for the three and six months ended June 30, 2011 and 2010.

Revenues by region were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(in thousands)
United States and Canada	$	285,931	$	299,502	$	560,393	$	538,502
Europe	228,354		192,864		431,185		388,348
Other	98,116		74,973		184,514		138,112
Total revenues	$	612,401	$	567,339	$	1,176,092	$	1,064,962

Depreciation and amortization expense associated with our segments was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(in thousands)
Itron North America	$	11,176	$	11,441	$	22,347	$	22,728
Itron International	21,591		20,352		41,950		42,342
Corporate Unallocated	1		—		2		1
Total Company	$	32,768	$	31,793	$	64,299	$	65,071