Stock-Based Compensation Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

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,
	2012		2011		2012		2011
	(in thousands)
Stock options	$	337	$	511	$	609	$	1,544
Restricted stock units	4,375		3,853		7,891		7,404
Unrestricted stock awards	205		15		410		190
ESPP	141		164		346		380
Total stock-based compensation	$	5,058	$	4,543	$	9,256	$	9,518

Related tax benefit	$	1,375	$	1,257	$	2,564	$	2,659

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:



	Three Months Ended June 30,				Six Months Ended June 30,
	2012⁽¹⁾		2011⁽¹⁾		2012		2011
Dividend yield	—		—		—		—
Expected volatility	—	%	—	%	42.7	%	46.6	%
Risk-free interest rate	—	%	—	%	0.9	%	2.0	%
Expected life (years)	—		—		5.14		4.85

⁽¹⁾There were no employee stock options granted for the three months ended June 30, 2012 and 2011.

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

Expected to vest, June 30, 2011	116		$	58.52	9.03	$	—

Outstanding, January 1, 2012	1,109		$	55.97	4.51	$	2,323
Granted	54		48.23					$	18.64
Exercised	(28	)	20.32			$	576
Expired	(32	)	69.69
Outstanding, June 30, 2012	1,103		$	56.10	4.32	$	3,090

Exercisable, June 30, 2012	978		$	57.09	3.70	$	2,998

Expected to vest, June 30, 2012	117		$	48.50	9.14	$	85

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

Outstanding, January 1, 2012	625
Granted⁽²⁾	443		$	47.33
Released	(176	)			$	11,536
Forfeited	(28	)
Outstanding, June 30, 2012	864

Vested, June 30, 2012	47				$	1,945

Expected to vest, June 30, 2012	782				$	32,265


⁽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 2011 and 2012 awards under the Performance Award 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,
	2012		2011		2012		2011
Shares of unrestricted stock granted	4,526		276		9,979		3,453

Weighted average grant date fair value per share	$	45.26	$	54.17	$	41.05	$	54.96

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,
	2012		2011		2012		2011
Shares of stock sold to employees⁽¹⁾	30,619		25,567		53,676		42,625

Weighted average fair value per ESPP award⁽²⁾	$	6.19	$	7.22	$	6.55	$	7.88


⁽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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