Segment Information (Text Block)

3 Months Ended

Mar. 31, 2016

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 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,
	2016			2015
	(in thousands)
Revenues
Electricity	$	217,295		$	191,840
Gas	139,256			125,081
Water	141,039			129,825
Total Company	$	497,590		$	446,746
Gross profit
Electricity	$	64,586		$	54,204
Gas	48,577			44,037
Water	50,040			40,181
Total Company	$	163,203		$	138,422
Operating income (loss)
Electricity	$	10,632		$	1,114
Gas	16,299			14,491
Water	18,076			8,715
Corporate unallocated	(21,433		)	(10,824		)
Total Company	23,574			13,496
Total other income (expense)	(4,164		)	(2,613		)
Income before income taxes	$	19,410		$	10,883

For the three months ended March 31, 2016, one customer represented 13% of total Electricity segment revenues. For the three months ended March 31, 2016, no single customer represented more than 10% of the Gas and Water operating segment revenues or total Company revenues. For the three months ended March 31, 2015, 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,
	2016		2015
	(in thousands)
United States and Canada	$	262,037	$	227,438
Europe, Middle East, and Africa	195,710		176,187
Other(1)	39,843		43,121
Total revenues	$	497,590	$	446,746

⁽¹⁾  The Other region includes our operations in Latin America and Asia Pacific.

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

	Three Months Ended March 31,
	2016		2015
	(in thousands)
Electricity	$	7,262	$	9,149
Gas	4,921		5,341
Water	4,382		4,792
Corporate Unallocated	109		73
Total Company	$	16,674	$	19,355