Segment Information (Text Block)

12 Months Ended

Dec. 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. This structure allows each segment 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 each segment. Our product development and manufacturing operations are managed on a worldwide basis to promote a global perspective in our operations and processes and yet still maintain alignment with the 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 are 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; installation; implementation; and professional services, including 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 installation; implementation; and professional services, including 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; installation; implementation; and professional services, including consulting, and analysis.

Revenues, gross profit, and operating income associated with our segments were as follows:

	Year Ended December 31,
	2014			2013			2012
	(in thousands)
Revenues
Electricity	$	794,144		$	836,553		$	1,024,340
Gas	599,081			570,297			627,193
Water	577,472			541,878			526,645
Total Company	$	1,970,697		$	1,948,728		$	2,178,178
Gross profit
Electricity	$	208,476		$	218,913		$	295,005
Gas	211,815			207,915			235,391
Water	202,834			187,705			184,751
Total Company	$	623,125		$	614,533		$	715,147
Operating income (loss)
Electricity	$	(72,476	)	$	(235,908	)	$	24,812
Gas	75,598			83,882			110,557
Water	71,006			63,252			59,210
Corporate unallocated	(70,296		)	(46,407		)	(43,453		)
Total Company	3,832			(135,181		)	151,126
Total other income (expense)	(18,741		)	(13,073		)	(14,907		)
Income (loss) before income taxes	$	(14,909	)	$	(148,254	)	$	136,219

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

For the year ended December 31, 2012, no single customer represented more than 10% of total Company or the Gas or Water operating segment revenues, and one customer accounted for 17% of the Electricity operating segment revenues.

During 2014, in our Electricity segment, we revised our estimate of the cost to complete an OpenWay project in North America. This resulted in a decrease to gross profit of $15.9 million, which decreased basic and diluted earnings per share by $0.25 for the year ended December 31, 2014. We previously recorded additional costs on this contract in 2013, which decreased gross profit by $16.5 million and decreased basic and diluted earnings per share by $0.26 for the year December 31, 2013. The per share amounts are shown net of tax.

Revenues by region were as follows:

	Year Ended December 31,
	2014		2013		2012
	(in thousands)
United States and Canada	$	899,399	$	851,295	$	1,014,739
Europe, Middle East, and Africa (EMEA)	848,502		858,026		878,615
Other	222,796		239,407		284,824
Total revenues	$	1,970,697	$	1,948,728	$	2,178,178

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

	At December 31,
	2014		2013
	(in thousands)
United States	$	76,130	$	87,954
Outside United States	131,659		158,866
Total property, plant, and equipment, net	$	207,789	$	246,820

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

	Year Ended December 31,
	2014		2013		2012
	(in thousands)
Electricity	$	47,886	$	46,535	$	52,113
Gas	26,031		27,266		29,968
Water	24,259		24,797		27,324
Corporate Unallocated	287		247		66
Total Company	$	98,463	$	98,845	$	109,471