Segment Information (Text Block)

12 Months Ended

Dec. 31, 2012

Segment Information [Abstract]

Segment Information [Text Block]

Segment Information

We operate under the Itron brand worldwide and manage and report under two operating segments, Energy and Water. A transition to the new organizational structure, including changes to operations, as well as financial and management systems, was completed in the first quarter of 2012.

The Energy operating segment includes our global electricity and gas businesses, while the Water operating segment includes our global water and heat businesses.

We have three measures of segment performance: revenue, gross profit (margin), and operating income (margin). Our operating segments have distinct products, and therefore intersegment revenues are 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. In addition, we allocate only certain production assets and intangible assets to our operating segments. We do not manage the performance of the segments on a balance sheet basis.

Segment Products

Energy

Standard electricity (electromechanical and electronic) and gas meters; advanced electricity and gas meters and communication modules; smart electricity meters; smart electricity and gas 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, and analysis.

Water

Standard water and heat meters; advanced and smart water meters and communication modules; advanced systems including handheld, mobile, and fixed network collection 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:

	Year Ended December 31,
	2012			2011			2010
	(in thousands)
Revenues
Energy	$	1,651,533		$	1,912,427		$	1,801,342
Water	526,645			521,697			457,929
Total Company	$	2,178,178		$	2,434,124		$	2,259,271
Gross profit
Energy	$	530,396		$	578,575		$	541,900
Water	184,751			167,883			158,775
Total Company	$	715,147		$	746,458		$	700,675
Operating income (loss)
Energy	$	135,369		$	(112,831	)	$	184,163
Water	59,210			(303,772		)	43,611
Corporate unallocated	(43,453		)	(42,580		)	(43,577		)
Total Company	151,126			(459,183		)	184,197
Total other income (expense)	(14,907		)	(42,583		)	(59,752		)
Income (loss) before income taxes	$	136,219		$	(501,766	)	$	124,445

For the year ended December 31, 2012, no single customer represented more than 10% of total Company or the Water operating segment revenues, and one customer accounted for more than 10% of the Energy operating segment revenues.

For the year ended December 31, 2011, no single customer represented more than 10% of total Company or the Water operating segment revenues, and one customer accounted for more than 10% of the Energy operating segment revenues.

For the year ended December 31, 2010, one customer from the Energy operating segment accounted for 11% of total Company revenues, and two customers each accounted for more than 10% of the Energy operating segment revenues. No single customer represented more than 10% of the Water operating segment revenues in 2010.

Revenues by region were as follows:

	Year Ended December 31,
	2012		2011		2010
	(in thousands)
United States and Canada	$	1,014,739	$	1,182,775	$	1,168,523
Europe, Middle East, and Africa (EMEA)	878,615		899,642		803,154
Other	284,824		351,707		287,594
Total revenues	$	2,178,178	$	2,434,124	$	2,259,271

Property, plant, and equipment, net, by geographic area were as follows:

	At December 31,
	2012		2011		2010
	(in thousands)
United States	$	98,389	$	107,153	$	115,499
Outside United States	156,823		155,517		183,743
Total property, plant, and equipment, net	$	255,212	$	262,670	$	299,242

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

	Year Ended December 31,
	2012		2011		2010
	(in thousands)
Energy	$	82,081	$	97,135	$	97,827
Water	27,324		32,313		33,376
Corporate Unallocated	66		18		2
Total Company	$	109,471	$	129,466	$	131,205