Stock-Based Compensation Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2011

Stock Based Compensation [Abstract] [Abstract]

Stock-Based Compensation Expense and Related Tax Benefit [Table Text Block]

For the three and six months ended June 30, stock-based compensation expense and the related tax benefit were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(in thousands)
Stock options	$	511	$	952	$	1,544	$	2,295
Restricted stock units	3,853		3,441		7,404		6,382
Unrestricted stock awards	15		14		190		189
ESPP	164		138		380		255
Total stock-based compensation	$	4,543	$	4,545	$	9,518	$	9,121

Related tax benefit	$	1,257	$	1,324	$	2,659	$	2,732

Stock Options, Valuation Assumptions [Table Text Block]

The fair values of stock options granted were estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:



	Employee Stock Options
	Three Months Ended June 30,		Six Months Ended June 30,
	2011⁽¹⁾	2010⁽¹⁾	2011		2010
Dividend yield	—	—	—		—
Expected volatility	—	—	46.6	%	48.7	%
Risk-free interest rate	—	—	2.0	%	2.3	%
Expected life (years)	—	—	4.85		4.61

⁽¹⁾There were no employee stock options granted for the three months ended June 30, 2011 and 2010.

Employee Stock Options Activity [Table Text Block]

A summary of our stock option activity for the six months ended June 30 is as follows:



	Shares		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value ⁽¹⁾		Weighted Average Grant Date Fair Value
	(in thousands)				(years)	(in thousands)
Outstanding, January 1, 2010	1,179		$	52.93	5.90	$	22,863
Granted	71		61.97					$	27.18
Exercised	(133	)	41.51			$	4,114
Outstanding, June 30, 2010	1,117		$	54.89	6.04	$	15,391

Exercisable and expected to vest, June 30, 2010	1,104		$	54.73	6.01	$	15,379

Exercisable, June 30, 2010	963		$	52.03	5.61	$	15,241

Outstanding, January 1, 2011	1,102		$	55.21	5.58	$	10,883
Granted	78		56.64					$	23.93
Exercised	(26	)	19.91			$	989
Expired	(1	)	7.00
Outstanding, June 30, 2011	1,153		$	56.13	5.48	$	5,903

Exercisable and expected to vest, June 30, 2011	1,145		$	56.12	5.45	$	5,903

Exercisable, June 30, 2011	1,029		$	55.85	5.05	$	5,903

⁽¹⁾

The aggregate intrinsic value of outstanding stock options represents amounts that would have been received by the optionees had all in- the-money options been exercised on that date. Specifically, it is the amount by which the market value of Itron’s stock exceeded the exercise price of the outstanding in-the-money options before applicable income taxes, based on our closing stock price on the last business day of the period. The aggregate intrinsic value of stock options exercised during the period is calculated based on our stock price at the date of exercise.

Restricted Stock Units Award Activity [Table Text Block]

The following table summarizes restricted stock unit activity for the six months ended June 30:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value⁽¹⁾
	(in thousands)				(in thousands)
Outstanding, January 1, 2010	326
Granted⁽²⁾	210		$	63.52
Released	(75	)			$	4,965
Forfeited	(12	)
Outstanding, June 30, 2010	449

Outstanding, January 1, 2011	588
Granted⁽²⁾	255		$	56.64
Released	(192	)			$	15,007
Forfeited	(5	)
Outstanding, June 30, 2011	646

Expected to vest, June 30, 2011	545				$	26,268


⁽¹⁾	The aggregate intrinsic value is the market value of the stock, before applicable income taxes, based on the closing price on the stock release dates or at the end of the period for restricted stock units expected to vest.


⁽²⁾	These restricted stock units do not include the respective 2010 and 2011 awards under the Performance Awards Agreement, which are not eligible for vesting as of June 30 of each respective year.

Nonrestricted Stock Awards Activity [Table Text Block]

The following table summarizes unrestricted stock award activity for the three and six months ended June 30:



	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Shares of unrestricted stock issued	276		192		3,453		2,766

Weighted average grant date fair value	$	54.17	$	77.69	$	54.96	$	68.49

Employee Stock Purchase Plan (ESPP) Activity [Table Text Block]

The following table summarizes ESPP activity for the three and six months ended June 30:



	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Shares of stock sold to employees⁽¹⁾	25,567		10,736		42,625		23,086

Weighted average fair value per ESPP award⁽²⁾	$	7.22	$	9.27	$	7.88	$	9.95


⁽¹⁾	Stock sold to employees during each fiscal quarter under the ESPP is associated with the offering period ending on the last day of the previous fiscal quarter.


⁽²⁾	Relating to awards associated with the offering period during the three and six months ended June 30.

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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