Segment Information (Text Block)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information [Text Block]

Segment Information

We operate under the Itron brand worldwide and manage and report under three operating segments, Electricity, Gas, and Water. Our Water operating segment includes both our global water and heat solutions.

In March 2013, we separated the management of our Energy operating segment into Electricity and Gas to allow each business line to develop its own go-to-market strategy, prioritize its marketing and product development requirements, and focus on its strategic investments. Our sales, marketing, and delivery functions are managed under three business lines - Electricity, Gas, and Water. Our product development and manufacturing operations are now managed on a worldwide basis to promote a global perspective in our operations and processes while maintaining alignment with the business lines. The transition to the new organizational structure, including changes to operations and financial reporting systems, was completed in the fourth quarter of 2013. Our historical segment information for the three months ended March 31, 2013 has been recast to reflect our new operating segments.

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

Electricity	Standard electricity (electromechanical and electronic) meters; advanced electricity meters and communication modules; smart electricity meters; smart electricity 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.
Gas	Standard gas meters; advanced gas meters and communication modules; smart gas meters; smart 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; smart heat meters; 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:

	Three Months Ended March 31,
	2014			2013
	(in thousands)
Revenues
Electricity	$	180,218		$	175,763
Gas	146,109			136,915
Water	148,468			134,858
Total Company	$	474,795		$	447,536
Gross profit
Electricity	$	42,740		$	44,912
Gas	58,406			50,642
Water	53,389			44,569
Total Company	$	154,535		$	140,123
Operating income (loss)
Electricity	$	(22,969	)	$	(19,050	)
Gas	25,724			19,530
Water	20,643			12,575
Corporate unallocated	(18,859		)	(10,708		)
Total Company	4,539			2,347
Total other income (expense)	(5,310		)	(2,094		)
Income (loss) before income taxes	$	(771	)	$	253

For the three months ended March 31, 2014 and March 31, 2013, no single customer represented more than 10% of total Company or the Electricity, Gas, or Water operating segment revenues.

Revenues by region were as follows:

	Three Months Ended March 31,
	2014		2013
	(in thousands)
United States and Canada	$	200,370	$	177,206
Europe, Middle East, and Africa	223,504		211,895
Other	50,921		58,435
Total revenues	$	474,795	$	447,536

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

	Three Months Ended March 31,
	2014		2013
	(in thousands)
Electricity	$	12,767	$	11,630
Gas	6,649		6,841
Water	6,094		6,269
Corporate Unallocated	82		17
Total Company	$	25,592	$	24,757