Stock-Based Compensation Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

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

For the years ended December 31, stock-based compensation expense and the related tax benefit were as follows:



	2014		2013		2012
	(in thousands)
Stock options	$	2,333	$	2,074	$	1,547
Restricted stock units	14,591		15,475		16,583
Unrestricted stock awards	936		811		769
ESPP	—		490		613
Total stock-based compensation	$	17,860	$	18,850	$	19,512

Related tax benefit	$	4,994	$	5,152	$	5,377

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:



	Year Ended December 31,
	2014		2013		2012
Dividend yield	—		—		—
Expected volatility	39.3	%	38.1	%	42.1	%
Risk-free interest rate	1.7	%	1.0	%	0.8	%
Expected term (years)	5.5		5.5		5.1

Employee Stock Options Activity [Table Text Block]

A summary of our stock option activity for the years ended December 31 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, 2012	1,109		$	55.97	4.5	$	2,323
Granted	196		43.27					$	16.51
Exercised	(54	)	21.91			1,078
Expired	(114	)	69.37
Outstanding, December 31, 2012	1,137		$	54.06	4.8	$	3,815

Granted	129		$	42.76				$	15.44
Exercised	(74	)	23.87			$	1,377
Expired	(12	)	49.04
Outstanding, December 31, 2013	1,180		$	54.79	4.6	$	1,300

Granted	160		$	35.65				$	13.65
Exercised	(67	)	28.03			$	826
Forfeited	(7	)	44.06
Expired	(143	)	68.97
Outstanding, December 31, 2014	1,123		$	51.90	4.4	$	1,676

Exercisable, December 31, 2014	819		$	56.65	3.2	$	569

Expected to vest, December 31, 2014	296		$	39.12	7.7	$	1,074

⁽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.

Schedule of Share-based Payment Award, Restricted Stock Units, Valuation Assumptions [Table Text Block]

The weighted-average assumptions used to estimate the fair value of performance-based restricted stock units granted and the resulting weighted average fair-value are as follows:



	Year Ended December 31, 2014		Year Ended December 31, 2013
Dividend yield	—		—
Expected volatility	32.3	%	39.1	%
Risk-free interest rate	0.4	%	0.3	%
Expected term (years)	2.0		2.5

Weighted-average fair value	$35.15		$45.03

Restricted Stock Units Award Activity [Table Text Block]

The following table summarizes restricted stock unit activity for the years ended December 31:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value⁽¹⁾
	(in thousands)				(in thousands)
Outstanding, January 1, 2012	625
Granted	464		$	47.21
Released	(275	)			$	16,855
Forfeited	(40	)
Outstanding, December 31, 2012	774

Granted	255		$	42.51
Released	(331	)			$	17,983
Forfeited	(40	)
Outstanding, December 31, 2013	658

Granted⁽²⁾	350		$	35.74
Released	(291	)			$	14,402
Forfeited	(35	)
Outstanding, December 31, 2014	682

Vested but not released, December 31, 2014	19				$	821

Expected to vest, December 31, 2014	571				$	24,130


⁽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⁾	Restricted stock units include 14,433 shares for the 2-year award under the 2013 Performance Award Agreement, which are eligible for distribution at December 31, 2014.

Unrestricted Stock Awards Activity [Table Text Block]

The following table summarizes unrestricted stock award activity for the years ended December 31:



	2014		2013		2012
	(in thousands, except per share data)
Shares of unrestricted stock granted	24		18		19

Weighted average grant date fair value per share	$	39.06	$	44.12	$	41.43

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

The following table summarizes ESPP activity for the years ended December 31:



	2014		2013		2012
	(in thousands, except per share data)
Shares of stock sold to employees⁽¹⁾	61		94		101

Weighted average fair value per ESPP award⁽²⁾	$	—	$	6.61	$	6.29

(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 periods during the years ended December 31. Effective October 1, 2013, the ESPP is no longer compensatory and therefore the 2013 weighted average fair value per award is for the nine months ended September 30, 2013.

- 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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