Segment Information (Text Block)

3 Months Ended

Mar. 31, 2015

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 GAAP measures of segment performance: revenue, gross profit (margin), and operating income (margin). Our operating segments have distinct products, and, therefore, intersegment revenues are minimal. Certain operating expenses are allocated to the operating segments based upon internally established allocation methodologies. 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; 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; smart heat meters; 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:

	Three Months Ended March 31,
	2015			2014
	(in thousands)
Revenues
Electricity	$	193,852		$	180,218
Gas	125,089			146,109
Water	129,306			148,468
Total Company	$	448,247		$	474,795
Gross profit
Electricity	$	55,120		$	42,740
Gas	43,516			58,406
Water	39,563			53,389
Total Company	$	138,199		$	154,535
Operating income (loss)
Electricity	$	2,396		$	(22,969	)
Gas	13,592			25,724
Water	8,097			20,643
Corporate unallocated	(10,546		)	(18,859		)
Total Company	13,539			4,539
Total other income (expense)	(2,611		)	(5,310		)
Income before income taxes	$	10,928		$	(771	)

For the three months ended March 31, 2015 and March 31, 2014, 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,
	2015		2014
	(in thousands)
United States and Canada	$	231,136	$	200,370
Europe, Middle East, and Africa	174,654		223,504
Other	42,457		50,921
Total revenues	$	448,247	$	474,795

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

	Three Months Ended March 31,
	2015		2014
	(in thousands)
Electricity	$	9,147	$	12,767
Gas	5,326		6,649
Water	4,793		6,094
Corporate Unallocated	73		82
Total Company	$	19,339	$	25,592