Stock-Based Compensation Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

Stock Based Compensation [Abstract] [Abstract]

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

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



	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012		2011
	(in thousands)
Stock options	$	333	$	(320	)	$	942	$	1,224
Restricted stock units	4,390		2,916			12,281		10,320
Unrestricted stock awards	179		140			589		330
ESPP	161		147			507		527
Total stock-based compensation	$	5,063	$	2,883		$	14,319	$	12,401

Related tax benefit	$	1,358	$	700		$	3,922	$	3,359

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 September 30,				Nine Months Ended September 30,
	2012⁽¹⁾		2011		2012		2011
Dividend yield	—		—		—		—
Expected volatility	—	%	45.8	%	42.7	%	46.4	%
Risk-free interest rate	—	%	0.9	%	0.9	%	1.7	%
Expected life (years)	—		4.91		5.14		4.86

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

Employee Stock Options Activity [Table Text Block]

A summary of our stock option activity for the nine months ended September 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	103		52.13					$	21.81
Exercised	(29	)	19.53			$	1,050
Forfeited	(63	)	58.50
Expired	(1	)	7.00
Outstanding, September 30, 2011	1,112		$	55.72	4.68	$	1,518

Exercisable, September 30, 2011	1,027		$	55.94	4.30	$	1,518

Expected to vest, September 30, 2011	80		$	53.19	9.28	$	—

Outstanding, January 1, 2012	1,109		$	55.97	4.51	$	2,323
Granted	54		48.23					$	18.64
Exercised	(50	)	22.12			$	972
Expired	(83	)	60.06
Outstanding, September 30, 2012	1,030		$	56.87	4.35	$	3,127

Exercisable, September 30, 2012	904		$	58.04	3.72	$	2,969

Expected to vest, September 30, 2012	119		$	48.50	8.89	$	149

⁽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 nine months ended September 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⁾	286		$	54.82
Released	(201	)			$	15,739
Forfeited	(37	)
Outstanding, September 30, 2011	636

Outstanding, January 1, 2012	625
Granted⁽²⁾	452		$	47.29
Released	(207	)			$	12,835
Forfeited	(34	)
Outstanding, September 30, 2012	836

Vested, September 30, 2012	48				$	2,049

Expected to vest, September 30, 2012	763				$	32,904


⁽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 September 30 of each respective year.

Nonrestricted Stock Awards Activity [Table Text Block]

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Shares of unrestricted stock granted	4,342		2,864		14,321		6,317

Weighted average grant date fair value per share	$	41.41	$	48.84	$	41.16	$	52.19

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

The following table summarizes ESPP activity for the three and nine months ended September 30:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Shares of stock sold to employees⁽¹⁾	22,739		22,518		76,415		65,143

Weighted average fair value per ESPP award⁽²⁾	$	6.47	$	4.43	$	6.52	$	5.56


⁽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 nine months ended September 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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