Segment Information (Text Block)

3 Months Ended

Mar. 31, 2017

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; smart metering solutions that include one or several of the following: smart electricity meters; smart electricity communication modules; prepayment systems, including smart key, keypad, and smart card communication technologies; smart 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; smart metering solutions that include one or several of the following: smart gas meters; smart gas communication modules; prepayment systems, including smart key, keypad, and smart card communication technologies; smart 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; smart metering solutions that include one or several of the following: smart water meters and communication modules; smart heat meters; smart 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,
	2017			2016
	(in thousands)
Revenues
Electricity	$	238,751		$	217,295
Gas	124,211			139,256
Water	114,630			141,039
Total Company	$	477,592		$	497,590
Gross profit
Electricity	$	67,192		$	64,586
Gas	50,504			48,577
Water	39,529			50,040
Total Company	$	157,225		$	163,203
Operating income (loss)
Electricity	$	16,862		$	10,632
Gas	21,256			16,299
Water	8,735			18,076
Corporate unallocated	(16,811		)	(21,433		)
Total Company	30,042			23,574
Total other income (expense)	(4,981		)	(4,164		)
Income before income taxes	$	25,061		$	19,410

For the three months ended March 31, 2017 and 2016, one customer represented 18% and 13%, respectively, of total Electricity segment revenues. For the three months ended March 31, 2017 and 2016, no single customer represented more than 10% of the Gas or Water operating segment revenues, or total company revenues.

Revenues by region were as follows:

	Three Months Ended March 31,
	2017		2016
	(in thousands)
United States and Canada	$	269,097	$	262,037
Europe, Middle East, and Africa	162,815		195,710
Other(1)	45,680		39,843
Total revenues	$	477,592	$	497,590

⁽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,
	2017		2016
	(in thousands)
Electricity	$	5,311	$	7,262
Gas	4,244		4,921
Water	3,959		4,382
Corporate unallocated	864		109
Total Company	$	14,378	$	16,674