x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Washington | 91-1011792 | |
(State of Incorporation) | (I.R.S. Employer Identification Number) |
Title of each class | Name of each exchange on which registered | |
Common stock, no par value | NASDAQ Global Select Market |
Large accelerated filer | x | Accelerated filer | ¨ | ||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | ||
Emerging growth company | ¨ |
Page | |||
PART I | |||
ITEM 1: | |||
ITEM 1A: | |||
ITEM 1B: | |||
ITEM 2: | |||
ITEM 3: | |||
ITEM 4: | |||
PART II | |||
ITEM 5: | |||
ITEM 6: | |||
ITEM 7: | |||
ITEM 7A: | |||
ITEM 8: | |||
ITEM 9: | |||
ITEM 9A: | |||
ITEM 9B: | |||
PART III | |||
ITEM 10: | |||
ITEM 11: | |||
ITEM 12: | |||
ITEM 13: | |||
ITEM 14: | |||
PART IV | |||
ITEM 15: | |||
Year Ended | Total Bookings | Total Backlog (1) | 12-Month Backlog (2) | |||||||||
(in millions) | ||||||||||||
December 31, 2017 | $ | 1,993 | $ | 1,750 | $ | 931 | ||||||
December 31, 2016 | 2,066 | 1,652 | 761 | |||||||||
December 31, 2015 | 1,981 | 1,575 | 836 |
(1) | Backlog includes $116.3 million related to Comverge as of December 31, 2017. |
(2) | 12-month backlog includes $35.1 million related to Comverge as of December 31, 2017. |
Year Ended | Total Bookings | Electricity | Gas | Water | ||||||||||||
(in millions) | ||||||||||||||||
December 31, 2017 | $ | 1,993 | $ | 997 | $ | 502 | $ | 494 | ||||||||
December 31, 2016 | 2,066 | 1,013 | 567 | 486 | ||||||||||||
December 31, 2015 | 1,981 | 958 | 577 | 446 |
Name | Age | Position | ||
Philip C. Mezey | 58 | President and Chief Executive Officer | ||
Joan S. Hooper | 60 | Senior Vice President and Chief Financial Officer | ||
Thomas L. Deitrich | 51 | Executive Vice President and Chief Operating Officer | ||
Michel C. Cadieux | 60 | Senior Vice President, Human Resources | ||
Shannon M. Votava | 57 | Senior Vice President, General Counsel and Corporate Secretary |
• | increasing our vulnerability to general economic and industry conditions; |
• | requiring a substantial portion of our cash flow used in operations to be dedicated to the payment of principal and interest on our indebtedness, therefore reducing our liquidity and our ability to use our cash flow to fund our operations, capital expenditures and future business opportunities; |
• | exposing us to the risk of increased interest rates, and corresponding increased interest expense, as borrowings under the 2018 credit facility would be at variable rates of interest; |
• | limiting our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, acquisitions, and general corporate or other purposes; and |
• | limiting our ability to adjust to changing marketplace conditions and placing us at a competitive disadvantage compared with our competitors who may have less debt. |
• incur more debt; | • pay dividends, make distributions, and repurchase capital stock; | |
• make certain investments; | • create liens; | |
• enter into transactions with affiliates; | • enter into sale lease-back transactions; | |
• merge or consolidate; | • transfer or sell assets. |
• | reduction in the net realizable value of inventory which becomes obsolete or exceeds anticipated demand; |
• | changes in our organization or management reporting structure, which could result in additional reporting units, requiring greater aggregation or disaggregation in our analysis by reporting unit and potentially alternative methods/assumptions of estimating fair values; |
• | underperformance relative to projected future operating results; |
• | changes in the manner or use of the acquired assets or the strategy for our overall business; |
• | unfavorable industry or economic trends; and |
• | decline in our stock price for a sustained period or decline in our market capitalization below net book value. |
Product Line | ||||
Region | Electricity | Gas | Water | Multiple Product Lines |
North America | None | None | None | Waseca, MN - G,W (L) Oconee, SC - E, G (O) |
Europe, Middle East, and Africa | Chasseneuil, France (O) | Argenteuil, France (L) Reims, France (O) Karlsruhe, Germany (O) | Massy, France (L) Macon, France (O) Oldenburg, Germany (O) Asti, Italy (O) | Godollo, Hungary - E, G, W (O) |
Asia/Pacific | None | Wujiang, China (L) | Suzhou, China (L) Dehradun, India (L) | Bekasi, Indonesia - E,W (O) |
Latin America | None | None | Americana, Brazil (O) | None |
ITEM 5: | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
2017 | 2016 | ||||||||||||||
High | Low | High | Low | ||||||||||||
First Quarter | $ | 66.20 | $ | 58.70 | $ | 43.00 | $ | 30.31 | |||||||
Second Quarter | $ | 71.10 | $ | 59.15 | $ | 45.51 | $ | 39.78 | |||||||
Third Quarter | $ | 77.45 | $ | 67.20 | $ | 56.23 | $ | 42.34 | |||||||
Fourth Quarter | $ | 79.40 | $ | 63.90 | $ | 65.75 | $ | 51.90 |
Year Ended December 31, | |||||||||||||||||||
2017(6) | 2016(4) | 2015 | 2014(3) | 2013(2) | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
Consolidated Statements of Operations Data | |||||||||||||||||||
Revenues | $ | 2,018,197 | $ | 2,013,186 | $ | 1,883,533 | $ | 1,947,616 | $ | 1,938,025 | |||||||||
Cost of revenues | 1,343,043 | 1,352,866 | 1,326,848 | 1,333,566 | 1,323,257 | ||||||||||||||
Gross profit | 675,154 | 660,320 | 556,685 | 614,050 | 614,768 | ||||||||||||||
Operating income (loss) | 151,426 | 96,211 | 52,846 | 480 | (139,863 | ) | |||||||||||||
Net income (loss) attributable to Itron, Inc. | 57,298 | 31,770 | 12,678 | (23,670 | ) | (153,153 | ) | ||||||||||||
Earnings (loss) per common share - Basic | $ | 1.48 | $ | 0.83 | $ | 0.33 | $ | (0.60 | ) | $ | (3.90 | ) | |||||||
Earnings (loss) per common share - Diluted | $ | 1.45 | $ | 0.82 | $ | 0.33 | $ | (0.60 | ) | $ | (3.90 | ) | |||||||
Weighted average common shares outstanding - Basic | 38,655 | 38,207 | 38,224 | 39,184 | 39,281 | ||||||||||||||
Weighted average common shares outstanding - Diluted | 39,387 | 38,643 | 38,506 | 39,184 | 39,281 | ||||||||||||||
Consolidated Balance Sheets Data | |||||||||||||||||||
Working capital(1) | $ | 341,959 | $ | 319,420 | $ | 281,166 | $ | 262,393 | $ | 338,476 | |||||||||
Total assets (5) | 2,106,147 | 1,577,811 | 1,680,316 | 1,751,085 | 1,906,025 | ||||||||||||||
Total debt, net (5) | 613,260 | 304,523 | 370,165 | 323,307 | 377,596 | ||||||||||||||
Total Itron, Inc. shareholders' equity | 786,416 | 631,604 | 604,758 | 681,001 | 839,011 | ||||||||||||||
Other Financial Data | |||||||||||||||||||
Cash provided by operating activities | $ | 191,354 | $ | 115,842 | $ | 73,350 | $ | 132,973 | $ | 105,421 | |||||||||
Cash used in investing activities | (148,179 | ) | (47,528 | ) | (48,951 | ) | (41,496 | ) | (56,771 | ) | |||||||||
Cash provided by (used in) financing activities | 301,959 | (63,023 | ) | 7,740 | (91,877 | ) | (57,438 | ) | |||||||||||
Capital expenditures | (49,495 | ) | (43,543 | ) | (43,918 | ) | (44,495 | ) | (60,020 | ) |
(1) | Working capital represents current assets less current liabilities. |
(2) | During 2013, we incurred a goodwill impairment charge of $174.2 million. In addition, we incurred costs of $36.3 million in 2013 related to restructuring projects to increase efficiency. |
(3) | During 2014, we incurred costs of $49.5 million related to restructuring projects to improve operational efficiencies and reduce expenses. |
(4) | During 2016, we incurred costs of $49.1 million related to restructuring projects to restructure various company activities in order to improve operational efficiencies, reduce expenses and improve competiveness. Refer to Item 8: “Financial Statements and Supplementary Data, Note 13: Restructuring” included in this Annual Report on Form 10-K for further disclosures regarding the restructuring charges. |
(5) | Total assets and total debt for all periods presented were adjusted for the adoption of Accounting Standards Update 2015-03, Interest - Imputation of Interest. |
(6) | During 2017, cash used in investing activities included $100 million paid for the acquisition of Comverge by purchasing the stock of its parent, Peak Holding Corp. In addition, cash provided by financing activities included the issuance of $300 million of senior notes as part of the financing of the acquisition of Silver Spring Networks, Inc. |
ITEM 7: | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Revenues were $2.0 billion for the year ended December 31, 2017, an increase of $5.0 million. |
• | Gross margin was 33.5% compared with 32.8% in the same period last year. The increase of 70 basis points was due to improvements in our Electricity and Water segments. |
• | Operating expenses were $40.4 million lower compared with the same period last year, primarily due to decreased restructuring expense. |
• | Net income attributable to Itron, Inc. was $57.3 million compared with $31.8 million in 2016. |
• | Adjusted EBITDA increased $19.2 million, or 9% compared with the same period in 2016. |
• | GAAP diluted EPS improved $0.63 to $1.45 compared with the same period in 2016. |
• | Non-GAAP diluted EPS improved $0.52 to $3.06 compared with the same period last year. |
• | Total backlog was $1.8 billion and twelve-month backlog was $931 million at December 31, 2017. |
Year Ended December 31, | |||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | |||||||||||
(in thousands, except margin and per share data) | |||||||||||||||
GAAP | |||||||||||||||
Revenues | |||||||||||||||
Product revenues | $ | 1,813,925 | (1)% | $ | 1,830,070 | 8% | $ | 1,699,534 | |||||||
Service revenues | 204,272 | 12% | 183,116 | —% | 183,999 | ||||||||||
Total revenues | 2,018,197 | —% | 2,013,186 | 7% | 1,883,533 | ||||||||||
Gross profit | 675,154 | 2% | 660,320 | 19% | 556,685 | ||||||||||
Operating expenses | 523,728 | (7)% | 564,109 | 12% | 503,839 | ||||||||||
Operating income | 151,426 | 57% | 96,211 | 82% | 52,846 | ||||||||||
Other income (expense) | (16,851 | ) | 45% | (11,584 | ) | (26)% | (15,744 | ) | |||||||
Income tax provision | (74,326 | ) | 50% | (49,574 | ) | 124% | (22,099 | ) | |||||||
Net income attributable to Itron, Inc. | 57,298 | 80% | 31,770 | 151% | 12,678 | ||||||||||
Non-GAAP(1) | |||||||||||||||
Non-GAAP operating expenses | $ | 479,386 | (2)% | $ | 490,104 | 1% | $ | 484,967 | |||||||
Non-GAAP operating income | 195,768 | 15% | 170,216 | 137% | 71,718 | ||||||||||
Non-GAAP net income attributable to Itron, Inc. | 120,486 | 23% | 98,284 | 251% | 27,981 | ||||||||||
Adjusted EBITDA | 227,851 | 9% | 208,638 | 91% | 109,497 | ||||||||||
GAAP Margins and Earnings Per Share | |||||||||||||||
Gross margin | |||||||||||||||
Product gross margin | 33.5 | % | 32.3 | % | 28.4 | % | |||||||||
Service gross margin | 32.7 | % | 37.9 | % | 40.1 | % | |||||||||
Total gross margin | 33.5 | % | 32.8 | % | 29.6 | % | |||||||||
Operating margin | 7.5 | % | 4.8 | % | 2.8 | % | |||||||||
Basic EPS | $ | 1.48 | $ | 0.83 | $ | 0.33 | |||||||||
Diluted EPS | $ | 1.45 | $ | 0.82 | $ | 0.33 | |||||||||
Non-GAAP Earnings Per Share(1) | |||||||||||||||
Non-GAAP diluted EPS | $ | 3.06 | $ | 2.54 | $ | 0.73 |
(1) | These measures exclude certain expenses that we do not believe are indicative of our core operating results. See pages 40-42 for information about these non-GAAP measures and reconciliations to the most comparable GAAP measures. |
• | Standard metering – no built-in remote reading communication technology |
• | Smart metering – one-way communication of meter data or two-way communication including remote meter configuration and upgrade (consisting primarily of our OpenWay technology) |
Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
(units in thousands) | ||||||||
Meters | ||||||||
Standard | 15,740 | 15,540 | 17,560 | |||||
Smart | 10,390 | 9,340 | 7,290 | |||||
Total meters | 26,130 | 24,880 | 24,850 | |||||
Stand-alone communication modules | ||||||||
Smart | 6,250 | 5,980 | 5,840 |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change(1) | Total Change | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Total Company | ||||||||||||||||||||
Revenues | $ | 2,018,197 | $ | 2,013,186 | $ | 11,639 | $ | (6,628 | ) | $ | 5,011 | |||||||||
Gross Profit | 675,154 | 660,320 | 923 | 13,911 | 14,834 | |||||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change(1) | Total Change | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Total Company | ||||||||||||||||||||
Revenues | $ | 2,013,186 | $ | 1,883,533 | $ | (34,781 | ) | $ | 164,434 | $ | 129,653 | |||||||||
Gross Profit | 660,320 | 556,685 | (9,381 | ) | 113,016 | 103,635 |
(1) | Constant currency change is a non-GAAP financial measure and represents the total change between periods excluding the effect of changes in foreign currency exchange rates. |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change(1) | Total Change | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Total Company | ||||||||||||||||||||
Sales and marketing | $ | 170,008 | $ | 158,883 | $ | 1,548 | $ | 9,577 | $ | 11,125 | ||||||||||
Product development | 169,977 | 168,209 | (1,531 | ) | 3,299 | 1,768 | ||||||||||||||
General and administrative | 156,540 | 162,815 | 2,831 | (9,106 | ) | (6,275 | ) | |||||||||||||
Amortization of intangible assets | 20,785 | 25,112 | 261 | (4,588 | ) | (4,327 | ) | |||||||||||||
Restructuring | 6,418 | 49,090 | 1,925 | (44,597 | ) | (42,672 | ) | |||||||||||||
Total Operating expenses | $ | 523,728 | $ | 564,109 | $ | 5,034 | $ | (45,415 | ) | $ | (40,381 | ) | ||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change(1) | Total Change | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Total Company | ||||||||||||||||||||
Sales and marketing | $ | 158,883 | $ | 161,380 | $ | (2,883 | ) | $ | 386 | $ | (2,497 | ) | ||||||||
Product development | 168,209 | 162,334 | (1,273 | ) | 7,148 | 5,875 | ||||||||||||||
General and administrative | 162,815 | 155,715 | (2,047 | ) | 9,147 | 7,100 | ||||||||||||||
Amortization of intangible assets | 25,112 | 31,673 | (705 | ) | (5,856 | ) | (6,561 | ) | ||||||||||||
Restructuring | 49,090 | (7,263 | ) | (412 | ) | 56,765 | 56,353 | |||||||||||||
Total Operating expenses | $ | 564,109 | $ | 503,839 | $ | (7,320 | ) | $ | 67,590 | $ | 60,270 |
(1) | Constant currency change is a non-GAAP financial measure and represents the total change between periods excluding the effect of changes in foreign currency exchange rates. |
Year Ended December 31, | |||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | |||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||
Interest income | $ | 2,126 | 146% | $ | 865 | 14% | $ | 761 | |||||||
Interest expense | (10,514 | ) | 7% | (9,872 | ) | (3)% | (10,161 | ) | |||||||
Amortization of prepaid debt fees | (1,067 | ) | (1)% | (1,076 | ) | (49)% | (2,128 | ) | |||||||
Other income (expense), net | (7,396 | ) | 393% | (1,501 | ) | (64)% | (4,216 | ) | |||||||
Total other income (expense) | $ | (16,851 | ) | 45% | $ | (11,584 | ) | (26)% | $ | (15,744 | ) |
Year Ended December 31, | |||||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | |||||||||||||
Segment Revenues | (in thousands) | (in thousands) | (in thousands) | ||||||||||||||
Electricity | $ | 1,022,939 | 9% | $ | 938,374 | 14% | $ | 820,306 | |||||||||
Gas | 533,624 | (6)% | 569,476 | 5% | 543,805 | ||||||||||||
Water | 461,634 | (9)% | 505,336 | (3)% | 519,422 | ||||||||||||
Total revenues | $ | 2,018,197 | —% | $ | 2,013,186 | 7% | $ | 1,883,533 | |||||||||
Year Ended December 31, | |||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||
Segment Gross Profit and Margin | (in thousands) | (in thousands) | (in thousands) | ||||||||||||||
Electricity | $ | 318,953 | 31.2% | $ | 282,677 | 30.1% | $ | 225,446 | 27.5% | ||||||||
Gas | 191,303 | 35.8% | 205,063 | 36.0% | 185,559 | 34.1% | |||||||||||
Water | 164,898 | 35.7% | 172,580 | 34.2% | 145,680 | 28.0% | |||||||||||
Total gross profit and margin | $ | 675,154 | 33.5% | $ | 660,320 | 32.8% | $ | 556,685 | 29.6% | ||||||||
Year Ended December 31, | |||||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | |||||||||||||
Segment Operating Expenses | (in thousands) | (in thousands) | (in thousands) | ||||||||||||||
Electricity | $ | 225,387 | 5% | $ | 214,390 | 10% | $ | 194,342 | |||||||||
Gas | 117,097 | (15)% | 138,250 | 17% | 118,088 | ||||||||||||
Water | 120,404 | (11)% | 135,314 | 8% | 125,816 | ||||||||||||
Corporate unallocated | 60,840 | (20)% | 76,155 | 16% | 65,593 | ||||||||||||
Total operating expenses | $ | 523,728 | (7)% | $ | 564,109 | 12% | $ | 503,839 | |||||||||
Year Ended December 31, | |||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||
Operating Income (Loss) | Operating Margin | Operating Income (Loss) | Operating Margin | Operating Income (Loss) | Operating Margin | ||||||||||||
Segment Operating Income (Loss) and Operating Margin | (in thousands) | (in thousands) | (in thousands) | ||||||||||||||
Electricity | $ | 93,566 | 9.1% | $ | 68,287 | 7.3% | $ | 31,104 | 3.8% | ||||||||
Gas | 74,206 | 13.9% | 66,813 | 11.7% | 67,471 | 12.4% | |||||||||||
Water | 44,494 | 9.6% | 37,266 | 7.4% | 19,864 | 3.8% | |||||||||||
Corporate unallocated | (60,840 | ) | (76,155 | ) | (65,593 | ) | |||||||||||
Total operating income | $ | 151,426 | 7.5% | $ | 96,211 | 4.8% | $ | 52,846 | 2.8% |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change(1) | Total Change | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Electricity Segment | ||||||||||||||||||||
Revenues | $ | 1,022,939 | $ | 938,374 | $ | 4,152 | $ | 80,413 | $ | 84,565 | ||||||||||
Gross Profit | 318,953 | 282,677 | 70 | 36,206 | 36,276 | |||||||||||||||
Operating Expenses | 225,387 | 214,390 | 1,144 | 9,853 | 10,997 | |||||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change(1) | Total Change | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Electricity Segment | ||||||||||||||||||||
Revenues | $ | 938,374 | $ | 820,306 | $ | (17,643 | ) | $ | 135,711 | $ | 118,068 | |||||||||
Gross Profit | 282,677 | 225,446 | (5,606 | ) | 62,837 | 57,231 | ||||||||||||||
Operating Expenses | 214,390 | 194,342 | (3,368 | ) | 23,416 | 20,048 |
(1) | Constant currency change is a non-GAAP financial measure and represents the total change between periods excluding the effect of changes in foreign currency exchange rates. |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change(1) | Total Change | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Gas Segment | ||||||||||||||||||||
Revenues | $ | 533,624 | $ | 569,476 | $ | 3,426 | $ | (39,278 | ) | $ | (35,852 | ) | ||||||||
Gross Profit | 191,303 | 205,063 | 329 | (14,089 | ) | (13,760 | ) | |||||||||||||
Operating Expenses | 117,097 | 138,250 | 1,113 | (22,266 | ) | (21,153 | ) | |||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change(1) | Total Change | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Gas Segment | ||||||||||||||||||||
Revenues | $ | 569,476 | $ | 543,805 | $ | (6,990 | ) | $ | 32,661 | $ | 25,671 | |||||||||
Gross Profit | 205,063 | 185,559 | (982 | ) | 20,486 | 19,504 | ||||||||||||||
Operating Expenses | 138,250 | 118,088 | (1,336 | ) | 21,498 | 20,162 |
(1) | Constant currency change is a non-GAAP financial measure and represents the total change between periods excluding the effect of changes in foreign currency exchange rates. |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change(1) | Total Change | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Water Segment | ||||||||||||||||||||
Revenues | $ | 461,634 | $ | 505,336 | $ | 4,061 | $ | (47,763 | ) | $ | (43,702 | ) | ||||||||
Gross Profit | 164,898 | 172,580 | 524 | (8,206 | ) | (7,682 | ) | |||||||||||||
Operating Expenses | 120,404 | 135,314 | 2,223 | (17,133 | ) | (14,910 | ) | |||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change(1) | Total Change | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Water Segment | ||||||||||||||||||||
Revenues | $ | 505,336 | $ | 519,422 | $ | (10,148 | ) | $ | (3,938 | ) | $ | (14,086 | ) | |||||||
Gross Profit | 172,580 | 145,680 | (2,793 | ) | 29,693 | 26,900 | ||||||||||||||
Operating Expenses | 135,314 | 125,816 | (1,003 | ) | 10,501 | 9,498 |
(1) | Constant currency change is a non-GAAP financial measure and represents the total change between periods excluding the effect of changes in foreign currency exchange rates. |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Operating activities | $ | 191,354 | $ | 115,842 | $ | 73,350 | |||||
Investing activities | (148,179 | ) | (47,528 | ) | (48,951 | ) | |||||
Financing activities | 301,959 | (63,023 | ) | 7,740 | |||||||
Effect of exchange rates on cash, cash equivalents, and restricted cash | 8,636 | (2,744 | ) | (13,492 | ) | ||||||
Increase in cash, cash equivalents, and restricted cash | $ | 353,770 | $ | 2,547 | $ | 18,647 |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
(in thousands) | ||||||||||||
Net cash provided by operating activities | $ | 191,354 | $ | 115,842 | $ | 73,350 | ||||||
Acquisitions of property, plant, and equipment | (49,495 | ) | (43,543 | ) | (43,918 | ) | ||||||
Free cash flow | $ | 141,859 | $ | 72,299 | $ | 29,432 |
Total | Less than 1 year | 1-3 years | 3-5 years | Beyond 5 years | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Credit Facilities(1) | ||||||||||||||||||||
USD denominated term loan | $ | 207,959 | $ | 25,412 | $ | 182,547 | $ | — | $ | — | ||||||||||
Multicurrency revolving line of credit | 132,388 | 2,664 | 129,724 | — | — | |||||||||||||||
Senior notes | 420,958 | 8,458 | 30,000 | 30,000 | 352,500 | |||||||||||||||
Operating lease obligations(2) | 48,602 | 15,353 | 16,830 | 6,620 | 9,799 | |||||||||||||||
Purchase and service commitments(3) | 156,549 | 155,642 | 815 | 92 | — | |||||||||||||||
Other long-term liabilities reflected on the balance sheet under generally accepted accounting principles(4) | 84,597 | — | 41,858 | 12,755 | 29,984 | |||||||||||||||
Total | $ | 1,051,053 | $ | 207,529 | $ | 401,774 | $ | 49,467 | $ | 392,283 |
(1) | Borrowings are disclosed within Item 8: “Financial Statements and Supplementary Data, Note 6: Debt” included in this Annual Report on Form 10-K. |
(2) | Operating lease obligations are disclosed in Item 8: “Financial Statements and Supplementary Data, Note 12: Commitments and Contingencies” included in this Annual Report on Form 10-K and do not include common area maintenance charges, real estate taxes, and insurance charges for which we are obligated. |
(3) | We enter into standard purchase orders in the ordinary course of business that typically obligate us to purchase materials and other items. Purchase orders can include open-ended agreements that provide for estimated quantities over an extended shipment period, typically up to one year at an established unit cost. Our long-term executory purchase agreements that contain termination clauses have been classified as less than one year, as the commitments are the estimated amounts we would be required to pay at December 31, 2017 if the commitments were canceled. |
(4) | Other long-term liabilities consist of warranty obligations, estimated pension benefit payments, and other obligations. Estimated pension benefit payments include amounts from 2019-2027. Long-term unrecognized tax benefits totaling $25.4 million (net of pre-payments), which include accrued interest and penalties, are not included in the above contractual obligations and commitments table as we cannot reliably estimate the period of cash settlement with the respective taxing authorities. Additionally, because the amount and timing of the future cash outflows are uncertain, deferred revenue totaling $35.6 million, which includes deferred revenue related to extended warranty guarantees, is not included in the table. For further information on defined benefit pension plans, income taxes, and warranty obligations and deferred revenue for extended warranties, see Item 8: “Financial Statements and Supplementary Data, Notes 8, 11, and 12,” respectively, included in this Annual Report on Form 10-K. |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
U.S. federal taxes paid | $ | 17,500 | $ | 9,000 | $ | 15,700 | |||||
State income taxes paid | 4,636 | 4,526 | 1,543 | ||||||||
Foreign and local income taxes paid | 6,833 | 10,761 | 11,946 | ||||||||
Total income taxes paid | $ | 28,969 | $ | 24,287 | $ | 29,189 |
(Unaudited; in thousands, except per share data) | ||||||||||||||
TOTAL COMPANY RECONCILIATIONS | Year Ended December 31, | |||||||||||||
2017 | 2016 | 2015 | ||||||||||||
NON-GAAP OPERATING EXPENSES | ||||||||||||||
GAAP operating expenses | $ | 523,728 | $ | 564,109 | $ | 503,839 | ||||||||
Amortization of intangible assets | (20,785 | ) | (25,112 | ) | (31,673 | ) | ||||||||
Restructuring | (6,418 | ) | (49,090 | ) | 7,263 | |||||||||
Acquisition and integration related recovery (expense) | (17,139 | ) | 197 | 5,538 | ||||||||||
Non-GAAP operating expenses | $ | 479,386 | $ | 490,104 | $ | 484,967 | ||||||||
NON-GAAP OPERATING INCOME | ||||||||||||||
GAAP operating income | $ | 151,426 | $ | 96,211 | $ | 52,846 | ||||||||
Amortization of intangible assets | 20,785 | 25,112 | 31,673 | |||||||||||
Restructuring | 6,418 | 49,090 | (7,263 | ) | ||||||||||
Acquisition and integration related (recovery) expense | 17,139 | (197 | ) | (5,538 | ) | |||||||||
Non-GAAP operating income | $ | 195,768 | $ | 170,216 | $ | 71,718 | ||||||||
NON-GAAP NET INCOME & DILUTED EPS | ||||||||||||||
GAAP net income attributable to Itron, Inc. | $ | 57,298 | $ | 31,770 | $ | 12,678 | ||||||||
Amortization of intangible assets | 20,785 | 25,112 | 31,673 | |||||||||||
Amortization of debt placement fees | 966 | 987 | 2,021 | |||||||||||
Restructuring | 6,418 | 49,090 | (7,263 | ) | ||||||||||
Acquisition and integration related (recovery) expense | 17,139 | (197 | ) | (5,538 | ) | |||||||||
Tax Cuts and Jobs Act Adjustment | 30,424 | — | — | |||||||||||
Income tax effect of non-GAAP adjustments(1) | (12,544 | ) | (8,478 | ) | (5,590 | ) | ||||||||
Non-GAAP net income attributable to Itron, Inc. | $ | 120,486 | $ | 98,284 | $ | 27,981 | ||||||||
Non-GAAP diluted EPS | $ | 3.06 | $ | 2.54 | $ | 0.73 | ||||||||
Weighted average common shares outstanding - Diluted | 39,387 | 38,643 | 38,506 | |||||||||||
ADJUSTED EBITDA | ||||||||||||||
GAAP net income attributable to Itron, Inc. | $ | 57,298 | $ | 31,770 | $ | 12,678 | ||||||||
Interest income | (2,126 | ) | (865 | ) | (761 | ) | ||||||||
Interest expense | 11,581 | 10,948 | 12,289 | |||||||||||
Income tax provision | 74,326 | 49,574 | 22,099 | |||||||||||
Depreciation and amortization | 63,215 | 68,318 | 75,993 | |||||||||||
Restructuring | 6,418 | 49,090 | (7,263 | ) | ||||||||||
Acquisition and integration related (recovery) expense | 17,139 | (197 | ) | (5,538 | ) | |||||||||
Adjusted EBITDA | $ | 227,851 | $ | 208,638 | $ | 109,497 | ||||||||
FREE CASH FLOW | ||||||||||||||
Net cash provided by operating activities | $ | 191,354 | $ | 115,842 | $ | 73,350 | ||||||||
Acquisitions of property, plant, and equipment | (49,495 | ) | (43,543 | ) | (43,918 | ) | ||||||||
Free Cash Flow | $ | 141,859 | $ | 72,299 | $ | 29,432 |
(1) | The income tax effect of non-GAAP adjustments is calculated using the statutory tax rates for the relevant jurisdictions if no valuation allowance exists. If a valuation allowance exists, there is no tax impact to the non-GAAP adjustment. |
(Unaudited; in thousands) | ||||||||||||||
SEGMENT RECONCILIATIONS | Year Ended December 31, | |||||||||||||
2017 | 2016 | 2015 | ||||||||||||
NON-GAAP OPERATING INCOME - ELECTRICITY | ||||||||||||||
Electricity - GAAP operating income | $ | 93,566 | $ | 68,287 | $ | 31,104 | ||||||||
Amortization of intangible assets | 11,618 | 13,273 | 17,663 | |||||||||||
Restructuring | 198 | 7,694 | (7,253 | ) | ||||||||||
Acquisition and integration related (recovery) expense | 10,258 | (197 | ) | (5,655 | ) | |||||||||
Electricity - Non-GAAP operating income | $ | 115,640 | $ | 89,057 | $ | 35,859 | ||||||||
NON-GAAP OPERATING INCOME - GAS | ||||||||||||||
Gas - GAAP operating income | $ | 74,206 | $ | 66,813 | $ | 67,471 | ||||||||
Amortization of intangible assets | 5,349 | 6,456 | 7,787 | |||||||||||
Restructuring | 5,213 | 25,744 | (287 | ) | ||||||||||
Gas - Non-GAAP operating income | $ | 84,768 | $ | 99,013 | $ | 74,971 | ||||||||
NON-GAAP OPERATING INCOME - WATER | ||||||||||||||
Water - GAAP operating income | $ | 44,494 | $ | 37,266 | $ | 19,864 | ||||||||
Amortization of intangible assets | 3,818 | 5,383 | 6,223 | |||||||||||
Restructuring | 700 | 13,116 | 778 | |||||||||||
Acquisition and integration related expense | — | — | 104 | |||||||||||
Water - Non-GAAP operating income | $ | 49,012 | $ | 55,765 | $ | 26,969 | ||||||||
NON-GAAP OPERATING INCOME - CORPORATE UNALLOCATED | ||||||||||||||
Corporate unallocated - GAAP operating loss | $ | (60,840 | ) | $ | (76,155 | ) | $ | (65,593 | ) | |||||
Restructuring | 307 | 2,536 | (501 | ) | ||||||||||
Acquisition and integration related expense | 6,881 | — | 13 | |||||||||||
Corporate unallocated - Non-GAAP operating loss | $ | (53,652 | ) | $ | (73,619 | ) | $ | (66,081 | ) |
2018 | 2019 | 2020 | 2021 | 2022 | Total | Fair Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Variable Rate Debt | |||||||||||||||||||||||||||
Principal: U.S. dollar term loan | $ | 19,688 | $ | 22,500 | $ | 151,875 | $ | — | $ | — | $ | 194,063 | $ | 192,295 | |||||||||||||
Average interest rate | 3.02 | % | 3.38 | % | 3.44 | % | — | % | — | % | |||||||||||||||||
Principal: Multicurrency revolving line of credit | $ | — | $ | — | $ | 125,414 | $ | — | $ | — | $ | 125,414 | $ | 124,100 | |||||||||||||
Average interest rate | 2.10 | % | 2.27 | % | 2.35 | % | — | % | — | % | |||||||||||||||||
Interest rate swap on LIBOR based debt | |||||||||||||||||||||||||||
Average interest rate (pay) | 1.42 | % | 1.42 | % | 1.42 | % | — | % | — | % | |||||||||||||||||
Average interest rate (receive) | 1.77 | % | 2.13 | % | 2.19 | % | — | % | — | % | |||||||||||||||||
Net/spread | 0.35 | % | 0.71 | % | 0.77 | % | — | % | — | % |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands, except per share data) | |||||||||||
Revenues | |||||||||||
Product revenues | $ | 1,813,925 | $ | 1,830,070 | $ | 1,699,534 | |||||
Service revenues | 204,272 | 183,116 | 183,999 | ||||||||
Total revenues | 2,018,197 | 2,013,186 | 1,883,533 | ||||||||
Cost of revenues | |||||||||||
Product cost of revenues | 1,205,548 | 1,239,152 | 1,216,709 | ||||||||
Service cost of revenues | 137,495 | 113,714 | 110,139 | ||||||||
Total cost of revenues | 1,343,043 | 1,352,866 | 1,326,848 | ||||||||
Gross profit | 675,154 | 660,320 | 556,685 | ||||||||
Operating expenses | |||||||||||
Sales and marketing | 170,008 | 158,883 | 161,380 | ||||||||
Product development | 169,977 | 168,209 | 162,334 | ||||||||
General and administrative | 156,540 | 162,815 | 155,715 | ||||||||
Amortization of intangible assets | 20,785 | 25,112 | 31,673 | ||||||||
Restructuring | 6,418 | 49,090 | (7,263 | ) | |||||||
Total operating expenses | 523,728 | 564,109 | 503,839 | ||||||||
Operating income | 151,426 | 96,211 | 52,846 | ||||||||
Other income (expense) | |||||||||||
Interest income | 2,126 | 865 | 761 | ||||||||
Interest expense | (11,581 | ) | (10,948 | ) | (12,289 | ) | |||||
Other income (expense), net | (7,396 | ) | (1,501 | ) | (4,216 | ) | |||||
Total other income (expense) | (16,851 | ) | (11,584 | ) | (15,744 | ) | |||||
Income before income taxes | 134,575 | 84,627 | 37,102 | ||||||||
Income tax provision | (74,326 | ) | (49,574 | ) | (22,099 | ) | |||||
Net income | 60,249 | 35,053 | 15,003 | ||||||||
Net income attributable to noncontrolling interests | 2,951 | 3,283 | 2,325 | ||||||||
Net income attributable to Itron, Inc. | $ | 57,298 | $ | 31,770 | $ | 12,678 | |||||
Earnings per common share - Basic | $ | 1.48 | $ | 0.83 | $ | 0.33 | |||||
Earnings per common share - Diluted | $ | 1.45 | $ | 0.82 | $ | 0.33 | |||||
Weighted average common shares outstanding - Basic | 38,655 | 38,207 | 38,224 | ||||||||
Weighted average common shares outstanding - Diluted | 39,387 | 38,643 | 38,506 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Net income | $ | 60,249 | $ | 35,053 | $ | 15,003 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | 54,338 | (24,977 | ) | (72,929 | ) | ||||||
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | 923 | (275 | ) | 1,086 | |||||||
Pension benefit obligation adjustment | 3,588 | (3,468 | ) | 6,296 | |||||||
Total other comprehensive income (loss), net of tax | 58,849 | (28,720 | ) | (65,547 | ) | ||||||
Total comprehensive income (loss), net of tax | 119,098 | 6,333 | (50,544 | ) | |||||||
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: | 2,951 | 3,283 | 2,325 | ||||||||
Comprehensive income (loss) attributable to Itron, Inc. | $ | 116,147 | $ | 3,050 | $ | (52,869 | ) |
December 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 176,274 | $ | 133,565 | |||
Accounts receivable, net | 398,029 | 351,506 | |||||
Inventories | 193,835 | 163,049 | |||||
Other current assets | 81,604 | 84,346 | |||||
Total current assets | 849,742 | 732,466 | |||||
Property, plant, and equipment, net | 200,768 | 176,458 | |||||
Deferred tax assets, net | 49,971 | 94,113 | |||||
Restricted cash | 311,010 | — | |||||
Other long-term assets | 43,666 | 50,129 | |||||
Intangible assets, net | 95,228 | 72,151 | |||||
Goodwill | 555,762 | 452,494 | |||||
Total assets | $ | 2,106,147 | $ | 1,577,811 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable | $ | 262,166 | $ | 172,711 | |||
Other current liabilities | 56,736 | 43,625 | |||||
Wages and benefits payable | 90,505 | 82,346 | |||||
Taxes payable | 16,100 | 10,451 | |||||
Current portion of debt | 19,688 | 14,063 | |||||
Current portion of warranty | 21,150 | 24,874 | |||||
Unearned revenue | 41,438 | 64,976 | |||||
Total current liabilities | 507,783 | 413,046 | |||||
Long-term debt | 593,572 | 290,460 | |||||
Long-term warranty | 13,712 | 18,428 | |||||
Pension benefit obligation | 95,717 | 84,498 | |||||
Deferred tax liabilities, net | 1,525 | 3,073 | |||||
Other long-term obligations | 88,206 | 117,953 | |||||
Total liabilities | 1,300,515 | 927,458 | |||||
Commitments and contingencies (Note 12) | |||||||
Equity | |||||||
Preferred stock, no par value, 10 million shares authorized, no shares issued or outstanding | — | — | |||||
Common stock, no par value, 75 million shares authorized, 38,771 and 38,317 shares issued and outstanding | 1,294,767 | 1,270,467 | |||||
Accumulated other comprehensive loss, net | (170,478 | ) | (229,327 | ) | |||
Accumulated deficit | (337,873 | ) | (409,536 | ) | |||
Total Itron, Inc. shareholders' equity | 786,416 | 631,604 | |||||
Noncontrolling interests | 19,216 | 18,749 | |||||
Total equity | 805,632 | 650,353 | |||||
Total liabilities and equity | $ | 2,106,147 | $ | 1,577,811 |
Common Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Itron, Inc. Shareholders' Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
Balances at January 1, 2015 | 38,591 | $ | 1,270,045 | $ | (135,060 | ) | $ | (453,984 | ) | $ | 681,001 | $ | 17,541 | $ | 698,542 | |||||||||||
Net income | 12,678 | 12,678 | 2,325 | 15,003 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (65,547 | ) | (65,547 | ) | — | (65,547 | ) | |||||||||||||||||||
Distributions to noncontrolling interests | (1,921 | ) | (1,921 | ) | ||||||||||||||||||||||
Stock issues and repurchases: | ||||||||||||||||||||||||||
Options exercised | 24 | 853 | 853 | 853 | ||||||||||||||||||||||
Restricted stock awards released | 296 | — | — | — | ||||||||||||||||||||||
Issuance of stock-based compensation awards | 20 | 706 | 706 | 706 | ||||||||||||||||||||||
Employee stock purchase plan | 54 | 1,819 | 1,819 | 1,819 | ||||||||||||||||||||||
Stock-based compensation expense | 13,384 | 13,384 | 13,384 | |||||||||||||||||||||||
Employee stock plans income tax deficiencies | (1,853 | ) | (1,853 | ) | (1,853 | ) | ||||||||||||||||||||
Repurchase of common stock | (1,079 | ) | (38,283 | ) | (38,283 | ) | (38,283 | ) | ||||||||||||||||||
Balances at December 31, 2015 | 37,906 | $ | 1,246,671 | $ | (200,607 | ) | $ | (441,306 | ) | $ | 604,758 | $ | 17,945 | $ | 622,703 | |||||||||||
Net income | 31,770 | 31,770 | 3,283 | 35,053 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (28,720 | ) | (28,720 | ) | — | (28,720 | ) | |||||||||||||||||||
Distributions to noncontrolling interests | (2,479 | ) | (2,479 | ) | ||||||||||||||||||||||
Stock issues and repurchases: | ||||||||||||||||||||||||||
Options exercised | 58 | 2,144 | 2,144 | 2,144 | ||||||||||||||||||||||
Restricted stock awards released | 312 | — | — | — | ||||||||||||||||||||||
Issuance of stock-based compensation awards | 21 | 955 | 955 | 955 | ||||||||||||||||||||||
Employee stock purchase plan | 20 | 747 | 747 | 747 | ||||||||||||||||||||||
Stock-based compensation expense | 17,080 | 17,080 | 17,080 | |||||||||||||||||||||||
Employee stock plans income tax deficiencies | 2,870 | 2,870 | 2,870 | |||||||||||||||||||||||
Balances at December 31, 2016 | 38,317 | $ | 1,270,467 | $ | (229,327 | ) | $ | (409,536 | ) | $ | 631,604 | $ | 18,749 | $ | 650,353 | |||||||||||
Net income | 57,298 | 57,298 | 2,951 | 60,249 | ||||||||||||||||||||||
Cumulative effect of accounting change | 215 | 14,365 | 14,580 | 14,580 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 58,849 | 58,849 | — | 58,849 | ||||||||||||||||||||||
Distributions to noncontrolling interests | (2,171 | ) | (2,171 | ) | ||||||||||||||||||||||
Stock issues and repurchases: | ||||||||||||||||||||||||||
Options exercised | 41 | 1,631 | 1,631 | 1,631 | ||||||||||||||||||||||
Restricted stock awards released | 372 | — | — | — | ||||||||||||||||||||||
Issuance of stock-based compensation awards | 10 | 974 | 974 | 974 | ||||||||||||||||||||||
Employee stock purchase plan | 31 | 1,978 | 1,978 | 1,978 | ||||||||||||||||||||||
Stock-based compensation expense | 20,433 | 20,433 | 20,433 | |||||||||||||||||||||||
Repurchase of noncontrolling interest | (906 | ) | (906 | ) | (313 | ) | (1,219 | ) | ||||||||||||||||||
Registration fee | (25 | ) | (25 | ) | (25 | ) | ||||||||||||||||||||
Balances at December 31, 2017 | 38,771 | $ | 1,294,767 | $ | (170,478 | ) | $ | (337,873 | ) | $ | 786,416 | $ | 19,216 | $ | 805,632 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Operating activities | |||||||||||
Net income | $ | 60,249 | $ | 35,053 | $ | 15,003 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 63,215 | 68,318 | 75,993 | ||||||||
Stock-based compensation | 21,407 | 18,035 | 14,089 | ||||||||
Amortization of prepaid debt fees | 1,067 | 1,076 | 2,128 | ||||||||
Deferred taxes, net | 50,667 | 13,790 | 1,488 | ||||||||
Restructuring, non-cash | (2,297 | ) | 7,188 | 976 | |||||||
Other adjustments, net | 3,673 | 4,309 | 2,003 | ||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||
Accounts receivable | (17,573 | ) | (27,162 | ) | (9,009 | ) | |||||
Inventories | (16,242 | ) | 22,343 | (52,737 | ) | ||||||
Other current assets | 8,112 | 20,705 | 12,512 | ||||||||
Other long-term assets | 11,230 | (339 | ) | (3,721 | ) | ||||||
Accounts payables, other current liabilities, and taxes payable | 78,463 | (37,312 | ) | (7,060 | ) | ||||||
Wages and benefits payable | 1,926 | 7,808 | (10,866 | ) | |||||||
Unearned revenue | (41,309 | ) | (25,810 | ) | 11,943 | ||||||
Warranty | (10,554 | ) | (10,246 | ) | 20,161 | ||||||
Other operating, net | (20,680 | ) | 18,086 | 447 | |||||||
Net cash provided by operating activities | 191,354 | 115,842 | 73,350 | ||||||||
Investing activities | |||||||||||
Acquisitions of property, plant, and equipment | (49,495 | ) | (43,543 | ) | (43,918 | ) | |||||
Business acquisitions, net of cash equivalents acquired | (99,386 | ) | (951 | ) | (5,754 | ) | |||||
Other investing, net | 702 | (3,034 | ) | 721 | |||||||
Net cash used in investing activities | (148,179 | ) | (47,528 | ) | (48,951 | ) | |||||
Financing activities | |||||||||||
Proceeds from borrowings | 335,000 | 15,877 | 113,467 | ||||||||
Payments on debt | (29,063 | ) | (79,119 | ) | (62,998 | ) | |||||
Issuance of common stock | 3,609 | 2,891 | 2,663 | ||||||||
Repurchase of common stock | — | — | (38,283 | ) | |||||||
Other financing, net | (7,587 | ) | (2,672 | ) | (7,109 | ) | |||||
Net cash provided by (used in) financing activities | 301,959 | (63,023 | ) | 7,740 | |||||||
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 8,636 | (2,744 | ) | (13,492 | ) | ||||||
Increase in cash, cash equivalents, and restricted cash | 353,770 | 2,547 | 18,647 | ||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 133,565 | 131,018 | 112,371 | ||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 487,335 | $ | 133,565 | $ | 131,018 | |||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Income taxes, net | $ | 28,969 | $ | 24,287 | $ | 29,189 | |||||
Interest | 10,106 | 9,921 | 10,198 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Cash and cash equivalents | $ | 176,274 | $ | 133,565 | $ | 131,018 | |||||
Current restricted cash included in other current assets | 51 | — | — | ||||||||
Long-term restricted cash | 311,010 | — | — | ||||||||
Total cash, cash equivalents, and restricted cash: | $ | 487,335 | $ | 133,565 | $ | 131,018 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands, except per share data) | |||||||||||
Net income available to common shareholders | $ | 57,298 | $ | 31,770 | $ | 12,678 | |||||
Weighted average common shares outstanding - Basic | 38,655 | 38,207 | 38,224 | ||||||||
Dilutive effect of stock-based awards | 732 | 436 | 282 | ||||||||
Weighted average common shares outstanding - Diluted | 39,387 | 38,643 | 38,506 | ||||||||
Earnings per common share - Basic | $ | 1.48 | $ | 0.83 | $ | 0.33 | |||||
Earnings per common share - Diluted | $ | 1.45 | $ | 0.82 | $ | 0.33 |
Accounts receivable, net | December 31, 2017 | December 31, 2016 | |||||
(in thousands) | |||||||
Trade receivables (net of allowance of $3,957 and $3,320) | $ | 369,047 | $ | 299,870 | |||
Unbilled receivables | 28,982 | 51,636 | |||||
Total accounts receivable, net | $ | 398,029 | $ | 351,506 |
Allowance for doubtful account activity | Year Ended December 31, | ||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Beginning balance | $ | 3,320 | $ | 5,949 | $ | 6,195 | |||||
Provision for doubtful accounts, net | 1,656 | 60 | 1,025 | ||||||||
Accounts written-off | (1,351 | ) | (2,422 | ) | (549 | ) | |||||
Effects of change in exchange rates | 332 | (267 | ) | (722 | ) | ||||||
Ending balance | $ | 3,957 | $ | 3,320 | $ | 5,949 |
Inventories | December 31, 2017 | December 31, 2016 | |||||
(in thousands) | |||||||
Materials | $ | 126,656 | $ | 103,274 | |||
Work in process | 9,863 | 7,925 | |||||
Finished goods | 57,316 | 51,850 | |||||
Total inventories | $ | 193,835 | $ | 163,049 |
Property, plant, and equipment, net | December 31, 2017 | December 31, 2016 | |||||
(in thousands) | |||||||
Machinery and equipment | $ | 310,753 | $ | 279,746 | |||
Computers and software | 104,384 | 98,125 | |||||
Buildings, furniture, and improvements | 135,566 | 122,680 | |||||
Land | 18,433 | 17,179 | |||||
Construction in progress, including purchased equipment | 39,946 | 29,358 | |||||
Total cost | 609,082 | 547,088 | |||||
Accumulated depreciation | (408,314 | ) | (370,630 | ) | |||
Property, plant, and equipment, net | $ | 200,768 | $ | 176,458 |
Depreciation expense | Year Ended December 31, | ||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Depreciation expense | $ | 42,430 | $ | 43,206 | $ | 44,320 |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross Assets | Accumulated Amortization | Net | Gross Assets | Accumulated Amortization | Net | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Core-developed technology | $ | 429,548 | $ | (399,969 | ) | $ | 29,579 | $ | 372,568 | $ | (354,878 | ) | $ | 17,690 | |||||||||
Customer contracts and relationships | 258,586 | (197,582 | ) | 61,004 | 224,467 | (170,056 | ) | 54,411 | |||||||||||||||
Trademarks and trade names | 70,056 | (66,004 | ) | 4,052 | 61,785 | (61,766 | ) | 19 | |||||||||||||||
Other | 11,661 | (11,068 | ) | 593 | 11,076 | (11,045 | ) | 31 | |||||||||||||||
Total intangible assets | $ | 769,851 | $ | (674,623 | ) | $ | 95,228 | $ | 669,896 | $ | (597,745 | ) | $ | 72,151 |
Year Ended December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Beginning balance, intangible assets, gross | $ | 669,896 | $ | 702,507 | |||
Intangible assets acquired | 36,500 | — | |||||
Effect of change in exchange rates | 63,455 | (32,611 | ) | ||||
Ending balance, intangible assets, gross | $ | 769,851 | $ | 669,896 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Amortization expense | $ | 20,785 | $ | 25,112 | $ | 31,673 |
Year Ending December 31, | Estimated Annual Amortization | |||
(in thousands) | ||||
2018 | $ | 19,380 | ||
2019 | 16,553 | |||
2020 | 14,208 | |||
2021 | 12,162 | |||
2022 | 9,961 | |||
Beyond 2022 | 22,964 | |||
Total intangible assets subject to amortization | $ | 95,228 |
Electricity | Gas | Water | Total Company | ||||||||||||
(in thousands) | |||||||||||||||
Goodwill balance at January 1, 2016 | |||||||||||||||
Goodwill before impairment | $ | 414,910 | $ | 331,436 | $ | 350,314 | $ | 1,096,660 | |||||||
Accumulated impairment losses | (362,177 | ) | — | (266,361 | ) | (628,538 | ) | ||||||||
Goodwill, net | 52,733 | 331,436 | 83,953 | 468,122 | |||||||||||
Effect of change in exchange rates | (1,360 | ) | (11,523 | ) | (2,745 | ) | (15,628 | ) | |||||||
Goodwill balance at December 31, 2016 | |||||||||||||||
Goodwill before impairment | 400,299 | 319,913 | 334,505 | 1,054,717 | |||||||||||
Accumulated impairment losses | (348,926 | ) | — | (253,297 | ) | (602,223 | ) | ||||||||
Goodwill, net | 51,373 | 319,913 | 81,208 | 452,494 | |||||||||||
Goodwill acquired | 59,675 | — | — | 59,675 | |||||||||||
Effect of change in exchange rates | 3,193 | 32,790 | 7,610 | 43,593 | |||||||||||
Goodwill balance at December 31, 2017 | |||||||||||||||
Goodwill before impairment | 500,625 | 352,703 | 378,901 | 1,232,229 | |||||||||||
Accumulated impairment losses | (386,384 | ) | — | (290,083 | ) | (676,467 | ) | ||||||||
Goodwill, net | $ | 114,241 | $ | 352,703 | $ | 88,818 | $ | 555,762 |
December 31, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Credit Facilities | |||||||
USD denominated term loan | $ | 194,063 | $ | 208,125 | |||
Multicurrency revolving line of credit | 125,414 | 97,167 | |||||
Senior notes | 300,000 | — | |||||
Total debt | 619,477 | 305,292 | |||||
Less: current portion of debt | 19,688 | 14,063 | |||||
Less: unamortized prepaid debt fees - term loan | 629 | 769 | |||||
Less: unamortized prepaid debt fees - senior notes | 5,588 | — | |||||
Long-term debt | $ | 593,572 | $ | 290,460 |
Year Ending December 31, | Minimum Payments | |||
(in thousands) | ||||
2018 | $ | 19,688 | ||
2019 | 22,500 | |||
2020 | 277,289 | |||
2021 | — | |||
2022 | — | |||
Total minimum payments on debt | $ | 319,477 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Term loan | $ | 14,063 | $ | 11,250 | $ | 13,125 | |||||
Multicurrency revolving line of credit | 15,000 | 67,869 | 49,873 | ||||||||
Total credit facility repayments | $ | 29,063 | $ | 79,119 | $ | 62,998 |
Fair Value | ||||||||||
Balance Sheet Location | December 31, 2017 | December 31, 2016 | ||||||||
(in thousands) | ||||||||||
Asset Derivatives | ||||||||||
Derivatives designated as hedging instruments under ASC 815-20 | ||||||||||
Interest rate swap contracts | Other current assets | $ | 658 | $ | — | |||||
Interest rate cap contracts | Other current assets | 17 | 3 | |||||||
Interest rate swap contracts | Other long-term assets | 1,712 | 1,830 | |||||||
Interest rate cap contracts | Other long-term assets | 179 | 376 | |||||||
Derivatives not designated as hedging instruments under ASC 815-20 | ||||||||||
Foreign exchange forward contracts | Other current assets | 41 | 169 | |||||||
Interest rate cap contracts | Other current assets | 25 | 4 | |||||||
Interest rate cap contracts | Other long-term assets | 268 | 563 | |||||||
Total asset derivatives | $ | 2,900 | $ | 2,945 | ||||||
Liability Derivatives | ||||||||||
Derivatives designated as hedging instruments under ASC 815-20 | ||||||||||
Interest rate swap contracts | Other current liabilities | $ | — | $ | 934 | |||||
Derivatives not designated as hedging instruments under ASC 815-20 | ||||||||||
Foreign exchange forward contracts | Other current liabilities | 289 | 449 | |||||||
Total liability derivatives | $ | 289 | $ | 1,383 |
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Net unrealized gain (loss) on hedging instruments at January 1, | $ | (14,337 | ) | $ | (14,062 | ) | $ | (15,148 | ) | ||
Unrealized gain (loss) on derivative instruments | 360 | (1,087 | ) | 76 | |||||||
Realized (gains) losses reclassified into net income (loss) | 563 | 812 | 1,010 | ||||||||
Net unrealized gain (loss) on hedging instruments at December 31, | $ | (13,414 | ) | $ | (14,337 | ) | $ | (14,062 | ) |
Offsetting of Derivative Assets | |||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||
Gross Amounts of Recognized Assets Presented in the Consolidated Balance Sheets | Derivative Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||
(in thousands) | |||||||||||||||
December 31, 2017 | $ | 2,900 | $ | (90 | ) | $ | — | $ | 2,810 | ||||||
December 31, 2016 | $ | 2,945 | $ | (1,322 | ) | $ | — | $ | 1,623 |
Offsetting of Derivative Liabilities | |||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||
Gross Amounts of Recognized Liabilities Presented in the Consolidated Balance Sheets | Derivative Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||
(in thousands) | |||||||||||||||
December 31, 2017 | $ | 289 | $ | (90 | ) | $ | — | $ | 199 | ||||||
December 31, 2016 | $ | 1,383 | $ | (1,322 | ) | $ | — | $ | 61 |
Derivatives in ASC 815-20 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | Loss Reclassified from AOCI into Income (Effective Portion) | Loss Recognized in Income on Derivative (Ineffective Portion) | |||||||||||||||||||||||||||||||||||||
Location | Amount | Location | Amount | |||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | $ | 768 | $ | (1,163 | ) | $ | 367 | Interest expense | $ | (706 | ) | $ | (1,296 | ) | $ | (1,639 | ) | Interest expense | $ | — | $ | — | $ | — | ||||||||||||||||
Interest rate cap contracts | $ | (183 | ) | $ | (605 | ) | $ | (244 | ) | Interest expense | $ | (210 | ) | $ | (27 | ) | $ | — | Interest expense | $ | — | $ | (1 | ) | $ | — |
Derivatives Not Designated as Hedging Instrument under ASC 815-20 | Location | Gain (Loss) Recognized in Income on Derivative | ||||||||||||
2017 | 2016 | 2015 | ||||||||||||
(in thousands) | ||||||||||||||
Foreign exchange forward contracts | Other income (expense), net | $ | (6,281 | ) | $ | 537 | $ | (3,145 | ) | |||||
Interest rate cap contracts | Interest expense | $ | (274 | ) | $ | 129 | $ | — |
Year Ended December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Change in benefit obligation: | |||||||
Benefit obligation at January 1, | $ | 97,261 | $ | 98,767 | |||
Service cost | 3,968 | 3,472 | |||||
Interest cost | 2,264 | 2,573 | |||||
Actuarial (gain) loss | (2,351 | ) | 7,733 | ||||
Benefits paid | (3,136 | ) | (9,481 | ) | |||
Foreign currency exchange rate changes | 13,014 | (4,386 | ) | ||||
Curtailment | (858 | ) | 14 | ||||
Settlement | (175 | ) | (1,431 | ) | |||
Other | 833 | — | |||||
Benefit obligation at December 31, | $ | 110,820 | $ | 97,261 | |||
Change in plan assets: | |||||||
Fair value of plan assets at January 1, | $ | 10,215 | $ | 9,662 | |||
Actual return on plan assets | 786 | 604 | |||||
Company contributions | 399 | 348 | |||||
Benefits paid | (383 | ) | (370 | ) | |||
Foreign currency exchange rate changes | 984 | (29 | ) | ||||
Other | 833 | — | |||||
Fair value of plan assets at December 31, | 12,834 | 10,215 | |||||
Net pension benefit obligation at fair value | $ | 97,986 | $ | 87,046 |
At December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Assets | |||||||
Plan assets in other long-term assets | $ | 991 | $ | 654 | |||
Liabilities | |||||||
Current portion of pension benefit obligation in wages and benefits payable | 3,260 | 3,202 | |||||
Long-term portion of pension benefit obligation | 95,717 | 84,498 | |||||
Pension benefit obligation, net | $ | 97,986 | $ | 87,046 |
At December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Net actuarial loss | $ | 25,379 | $ | 26,767 | |||
Net prior service cost | 641 | 619 | |||||
Amount included in AOCI | $ | 26,020 | $ | 27,386 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Net actuarial (gain) loss | $ | (3,209 | ) | $ | 6,316 | $ | (6,894 | ) | |||
Settlement (gain) loss | 2 | (1,343 | ) | (336 | ) | ||||||
Curtailment (gain) loss | 586 | — | — | ||||||||
Plan asset (gain) loss | (192 | ) | (64 | ) | 343 | ||||||
Amortization of net actuarial loss | (2,308 | ) | (1,351 | ) | (1,979 | ) | |||||
Amortization of prior service cost | (62 | ) | (58 | ) | (59 | ) | |||||
Other | — | 4 | (46 | ) | |||||||
Other comprehensive (income) loss | $ | (5,183 | ) | $ | 3,504 | $ | (8,971 | ) |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Service cost | $ | 3,968 | $ | 3,472 | $ | 4,572 | |||||
Interest cost | 2,264 | 2,573 | 2,380 | ||||||||
Expected return on plan assets | (594 | ) | (540 | ) | (502 | ) | |||||
Amortization of prior service costs | 62 | 58 | 59 | ||||||||
Amortization of actuarial net loss | 2,308 | 1,351 | 1,979 | ||||||||
Settlement | (2 | ) | 1,343 | 375 | |||||||
Curtailment | (586 | ) | — | 46 | |||||||
Other | — | (3 | ) | (1 | ) | ||||||
Net periodic pension benefit costs | $ | 7,420 | $ | 8,254 | $ | 8,908 |
At and For The Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Actuarial assumptions used to determine benefit obligations at end of period: | ||||||||
Discount rate | 2.21 | % | 2.18 | % | 2.59 | % | ||
Expected annual rate of compensation increase | 3.64 | % | 3.65 | % | 3.60 | % | ||
Actuarial assumptions used to determine net periodic benefit cost for the period: | ||||||||
Discount rate | 2.18 | % | 2.59 | % | 2.36 | % | ||
Expected rate of return on plan assets | 5.58 | % | 5.29 | % | 5.45 | % | ||
Expected annual rate of compensation increase | 3.65 | % | 3.60 | % | 3.37 | % |
At December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Projected benefit obligation | $ | 106,486 | $ | 94,110 | |||
Accumulated benefit obligation | 97,546 | 84,448 | |||||
Fair value of plan assets | 7,509 | 6,410 |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Unobservable Inputs (Level 3) | |||||||||
(in thousands) | |||||||||||
December 31, 2017 | |||||||||||
Cash | $ | 789 | $ | 789 | $ | — | |||||
Insurance funds | 8,384 | — | 8,384 | ||||||||
Other securities | 3,661 | — | 3,661 | ||||||||
Total fair value of plan assets | $ | 12,834 | $ | 789 | $ | 12,045 | |||||
December 31, 2016 | |||||||||||
Cash | $ | 783 | $ | 783 | $ | — | |||||
Insurance funds | 7,011 | — | 7,011 | ||||||||
Other securities | 2,421 | — | 2,421 | ||||||||
Total fair value of plan assets | $ | 10,215 | $ | 783 | $ | 9,432 |
Balance at January 1, 2017 | Net Realized and Unrealized Gains | Net Purchases, Issuances, Settlements, and Other | Net Transfers Into Level 3 | Effect of Foreign Currency | Balance at December 31, 2017 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Insurance funds | $ | 7,011 | $ | 257 | $ | 102 | $ | — | $ | 1,014 | $ | 8,384 | |||||||||||
Other securities | 2,421 | 523 | (93 | ) | 833 | (23 | ) | 3,661 | |||||||||||||||
Total | $ | 9,432 | $ | 780 | $ | 9 | $ | 833 | $ | 991 | $ | 12,045 |
Balance at January 1, 2016 | Net Realized and Unrealized Gains | Net Purchases, Issuances, Settlements, and Other | Net Transfers Into Level 3 | Effect of Foreign Currency | Balance at December 31, 2016 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Insurance funds | $ | 7,089 | $ | 235 | $ | 54 | $ | — | $ | (367 | ) | $ | 7,011 | ||||||||||
Other securities | 1,778 | 405 | (84 | ) | — | 322 | 2,421 | ||||||||||||||||
Total | $ | 8,867 | $ | 640 | $ | (30 | ) | $ | — | $ | (45 | ) | $ | 9,432 |
Year Ending December 31, | Estimated Annual Benefit Payments | ||||
(in thousands) | |||||
2018 | $ | 3,801 | |||
2019 | 3,124 | ||||
2020 | 3,744 | ||||
2021 | 4,329 | ||||
2022 | 4,511 | ||||
2023-2027 | 28,121 |
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Stock options | $ | 2,695 | $ | 2,357 | $ | 2,648 | |||||
Restricted stock units | 17,738 | 14,723 | 10,735 | ||||||||
Unrestricted stock awards | 974 | 955 | 706 | ||||||||
Phantom stock units | 1,747 | 1,077 | — | ||||||||
Total stock-based compensation | $ | 23,154 | $ | 19,112 | $ | 14,089 | |||||
Related tax benefit | $ | 5,034 | $ | 4,927 | $ | 4,228 |
Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | Weighted Average Grant Date Fair Value | ||||||||||||
(in thousands) | (years) | (in thousands) | ||||||||||||||
Outstanding, January 1, 2015 | 1,123 | $ | 51.90 | 4.4 | $ | 1,676 | ||||||||||
Granted | 291 | 35.25 | $ | 12.09 | ||||||||||||
Exercised | (24 | ) | 36.05 | 26 | ||||||||||||
Forfeited | (17 | ) | 37.47 | |||||||||||||
Expired | (193 | ) | 52.17 | |||||||||||||
Outstanding, December 31, 2015 | 1,180 | $ | 48.31 | 5.7 | $ | 405 | ||||||||||
Granted | 191 | $ | 40.40 | $ | 13.27 | |||||||||||
Exercised | (58 | ) | 37.00 | $ | 742 | |||||||||||
Forfeited | (36 | ) | 35.29 | |||||||||||||
Expired | (318 | ) | 55.13 | |||||||||||||
Outstanding, December 31, 2016 | 959 | $ | 45.64 | 6.6 | $ | 19,125 | ||||||||||
Granted | 135 | $ | 65.94 | $ | 21.99 | |||||||||||
Exercised | (41 | ) | 39.92 | $ | 1,071 | |||||||||||
Forfeited | (35 | ) | 47.38 | |||||||||||||
Expired | (62 | ) | 70.12 | |||||||||||||
Outstanding, December 31, 2017 | 956 | $ | 47.10 | 6.3 | $ | 21,965 | ||||||||||
Exercisable, December 31, 2017 | 640 | $ | 46.08 | 5.3 | $ | 15,934 | ||||||||||
Expected to vest, December 31, 2017 | 316 | $ | 49.17 | 8.4 | $ | 6,031 |
Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Expected volatility | 32.5 | % | 33.5 | % | 34.3 | % | ||
Risk-free interest rate | 2.0 | % | 1.3 | % | 1.7 | % | ||
Expected term (years) | 5.5 | 5.5 | 5.5 |
Number of Restricted Stock Units | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||
(in thousands) | (in thousands) | |||||||||
Outstanding, January 1, 2015 | 682 | |||||||||
Granted | 434 | $ | 35.09 | |||||||
Released | (296 | ) | $ | 12,204 | ||||||
Forfeited | (64 | ) | ||||||||
Outstanding, December 31, 2015 | 756 | |||||||||
Granted | 306 | $ | 41.58 | |||||||
Released | (312 | ) | $ | 11,944 | ||||||
Forfeited | (49 | ) | ||||||||
Outstanding, December 31, 2016 | 701 | $ | 38.04 | |||||||
Granted | 273 | $ | 50.95 | |||||||
Released | (372 | ) | 36.93 | $ | 14,219 | |||||
Forfeited | (46 | ) | 48.56 | |||||||
Outstanding, December 31, 2017 | 556 | $ | 47.68 | |||||||
Vested but not released, December 31, 2017 | 142 | $ | 9,650 | |||||||
Expected to vest, December 31, 2017 | 350 | $ | 23,877 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Expected volatility | 28.0 | % | 30.0 | % | 30.1 | % | |||||
Risk-free interest rate | 1.0 | % | 0.7 | % | 0.7 | % | |||||
Expected term (years) | 1.7 | 1.8 | 2.1 | ||||||||
Weighted average grant date fair value | $ | 77.75 | $ | 44.92 | $ | 33.48 |
Number of Phantom Stock Units | Weighted Average Grant Date Fair Value | |||||
(in thousands) | ||||||
Outstanding, January 1, 2016 | — | |||||
Granted | 63 | $ | 40.11 | |||
Forfeited | (1 | ) | ||||
Outstanding, December 31, 2016 | 62 | |||||
Expected to vest, December 31, 2016 | 57 | |||||
Outstanding, January 1, 2017 | 62 | $ | 40.11 | |||
Granted | 32 | 65.55 | ||||
Released | (20 | ) | 47.02 | |||
Forfeited | (11 | ) | 40.11 | |||
Outstanding, December 31, 2017 | 63 | $ | 47.28 | |||
Expected to vest, December 31, 2017 | 63 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Defined contribution plans expense | $ | 11,709 | $ | 7,941 | $ | 6,579 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Bonus and profit sharing plans and award expense | $ | 40,005 | $ | 43,377 | $ | 14,192 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Current: | |||||||||||
Federal | $ | 7,679 | $ | 20,490 | $ | 5,033 | |||||
State and local | 3,841 | 2,708 | 1,633 | ||||||||
Foreign | 12,139 | 12,586 | 13,945 | ||||||||
Total current | 23,659 | 35,784 | 20,611 | ||||||||
Deferred: | |||||||||||
Federal | 40,340 | 10,805 | 3,951 | ||||||||
State and local | (1,144 | ) | 1,160 | (972 | ) | ||||||
Foreign | 3,480 | (24,815 | ) | (41,893 | ) | ||||||
Total deferred | 42,676 | (12,850 | ) | (38,914 | ) | ||||||
Change in valuation allowance | 7,991 | 26,640 | 40,402 | ||||||||
Total provision for income taxes | $ | 74,326 | $ | 49,574 | $ | 22,099 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Income (loss) before income taxes | |||||||||||
Domestic | $ | 220,342 | $ | 196,750 | $ | 115,526 | |||||
Foreign | (85,767 | ) | (112,123 | ) | (78,424 | ) | |||||
Total income before income taxes | $ | 134,575 | $ | 84,627 | $ | 37,102 | |||||
Expected federal income tax provision | $ | 47,101 | $ | 29,619 | $ | 12,986 | |||||
Change in valuation allowance | 7,991 | 26,640 | 40,402 | ||||||||
Stock-based compensation | (1,225 | ) | 2,762 | 939 | |||||||
Foreign earnings | (22,045 | ) | (12,584 | ) | (33,364 | ) | |||||
Tax credits | (777 | ) | (7,471 | ) | (5,257 | ) | |||||
Uncertain tax positions, including interest and penalties | (7,637 | ) | 3,817 | 4,274 | |||||||
Change in tax rates | 41,125 | 67 | 312 | ||||||||
State income tax provision (benefit), net of federal effect | 4,986 | 2,806 | (14 | ) | |||||||
U.S. tax provision on foreign earnings | 33 | 997 | 203 | ||||||||
Domestic production activities deduction | (2,534 | ) | (2,424 | ) | (1,100 | ) | |||||
Local foreign taxes | 2,324 | 2,914 | 1,450 | ||||||||
Transaction costs | 2,643 | — | — | ||||||||
Other, net | 2,341 | 2,431 | 1,268 | ||||||||
Total provision for income taxes | $ | 74,326 | $ | 49,574 | $ | 22,099 |
At December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Deferred tax assets | |||||||
Loss carryforwards(1) | $ | 218,420 | $ | 194,381 | |||
Tax credits(2) | 58,616 | 53,323 | |||||
Accrued expenses | 23,752 | 36,336 | |||||
Pension plan benefits expense | 18,262 | 16,822 | |||||
Warranty reserves | 11,170 | 21,306 | |||||
Depreciation and amortization | 5,736 | 15,698 | |||||
Equity compensation | 5,352 | 6,924 | |||||
Inventory valuation | 2,554 | 3,086 | |||||
Deferred revenue | 2,431 | 4,896 | |||||
Other deferred tax assets, net | 16,606 | 13,621 | |||||
Total deferred tax assets | 362,899 | 366,393 | |||||
Valuation allowance | (285,784 | ) | (249,560 | ) | |||
Total deferred tax assets, net of valuation allowance | 77,115 | 116,833 | |||||
Deferred tax liabilities | |||||||
Depreciation and amortization | (23,135 | ) | (19,995 | ) | |||
Tax effect of accumulated translation | (303 | ) | (100 | ) | |||
Other deferred tax liabilities, net | (5,231 | ) | (5,698 | ) | |||
Total deferred tax liabilities | (28,669 | ) | (25,793 | ) | |||
Net deferred tax assets | $ | 48,446 | $ | 91,040 |
(1) | For tax return purposes at December 31, 2017, we had U.S. federal loss carryforwards of $30.9 million which begin to expire in the year 2021. At December 31, 2017, we have net operating loss carryforwards in Luxembourg of $592.6 million, majority of which can be carried forward indefinitely, offset by a full valuation allowance. The remaining portion of the loss carryforwards are composed primarily of losses in various other state and foreign jurisdictions. The majority of these losses can be carried forward indefinitely. At December 31, 2017, there was a valuation allowance of $285.8 million primarily associated with foreign loss carryforwards and foreign tax credit carryforwards (discussed below). |
(2) | For tax return purposes at December 31, 2017, we had: (1) U.S. general business credits of $3.7 million, which begin to expire in 2022; (2) U.S. alternative minimum tax credits of $3.3 million that can be carried forward indefinitely; (3) U.S. foreign tax credits of $49.3 million, which begin to expire in 2024; and (4) state tax credits of $10.7 million, which begin to expire in 2018. |
Description | Balance at Beginning of Period | Other Adjustments | Additions Charged to Costs and Expenses | Balance at End of Period, Noncurrent | ||||||||||||
(in thousands) | ||||||||||||||||
Year ended December 31, 2017: | ||||||||||||||||
Deferred tax assets valuation allowance | $ | 249,560 | $ | 28,233 | $ | 7,991 | $ | 285,784 | ||||||||
Year ended December 31, 2016: | ||||||||||||||||
Deferred tax assets valuation allowance | $ | 235,339 | $ | (12,419 | ) | $ | 26,640 | $ | 249,560 | |||||||
Year ended December 31, 2015: | ||||||||||||||||
Deferred tax assets valuation allowance | $ | 257,728 | $ | (62,791 | ) | $ | 40,402 | $ | 235,339 |
Total | |||
(in thousands) | |||
Unrecognized tax benefits at January 1, 2015 | $ | 28,146 | |
Gross increase to positions in prior years | 6,461 | ||
Gross decrease to positions in prior years | (2,512 | ) | |
Gross increases to current period tax positions | 25,741 | ||
Audit settlements | — | ||
Decrease related to lapsing of statute of limitations | (908 | ) | |
Effect of change in exchange rates | (2,048 | ) | |
Unrecognized tax benefits at December 31, 2015 | $ | 54,880 | |
Gross increase to positions in prior years | 1,164 | ||
Gross decrease to positions in prior years | (612 | ) | |
Gross increases to current period tax positions | 5,071 | ||
Audit settlements | (1,116 | ) | |
Decrease related to lapsing of statute of limitations | (860 | ) | |
Effect of change in exchange rates | (901 | ) | |
Unrecognized tax benefits at December 31, 2016 | $ | 57,626 | |
Gross increase to positions in prior years | 3,367 | ||
Gross decrease to positions in prior years | (5,559 | ) | |
Gross increases to current period tax positions | 6,453 | ||
Audit settlements | (5,169 | ) | |
Decrease related to lapsing of statute of limitations | (3,445 | ) | |
Effect of change in exchange rates | 3,429 | ||
Unrecognized tax benefits at December 31, 2017 | $ | 56,702 |
At December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate | $ | 55,312 | $ | 56,411 | $ | 53,602 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Net interest and penalties expense (benefit) | $ | (543 | ) | $ | 193 | $ | 880 |
At December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Accrued interest | $ | 2,706 | $ | 2,473 | |||
Accrued penalties | 2,426 | 2,329 |
Tax Jurisdiction | Years Subject to Audit | |
U.S. federal | Subsequent to 2013 | |
France | Subsequent to 2012 | |
Germany | Subsequent to 2010 | |
Brazil | Subsequent to 2011 | |
United Kingdom | Subsequent to 2012 | |
Italy | Subsequent to 2011 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Rental expense | $ | 14,824 | $ | 14,232 | $ | 15,524 |
Year Ending December 31, | Minimum Payments | |||
(in thousands) | ||||
2018 | $ | 15,353 | ||
2019 | 10,274 | |||
2020 | 6,556 | |||
2021 | 3,732 | |||
2022 | 2,888 | |||
Beyond 2022 | 9,799 | |||
Future minimum lease payments | $ | 48,602 |
At December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Credit facilities(1) | |||||||
Multicurrency revolving line of credit | $ | 500,000 | $ | 500,000 | |||
Long-term borrowings | (125,414 | ) | (97,167 | ) | |||
Standby LOCs issued and outstanding | (31,881 | ) | (46,103 | ) | |||
Net available for additional borrowings under the multi-currency revolving line of credit | $ | 342,705 | $ | 356,730 | |||
Net available for additional standby LOCs under sub-facility | 218,119 | 203,897 | |||||
Unsecured multicurrency revolving lines of credit with various financial institutions | |||||||
Multicurrency revolving line of credit | $ | 110,477 | $ | 91,809 | |||
Standby LOCs issued and outstanding | (21,030 | ) | (21,734 | ) | |||
Short-term borrowings(2) | (916 | ) | (69 | ) | |||
Net available for additional borrowings and LOCs | $ | 88,531 | $ | 70,006 | |||
Unsecured surety bonds in force | $ | 51,344 | $ | 48,221 |
(1) | Refer to Note 6 and Note 19 for details regarding our secured credit facilities, including the refinancing of the 2015 credit facility. |
(2) | Short-term borrowings are included in “Other current liabilities” on the Consolidated Balance Sheets. |
Year Ended December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Beginning balance | $ | 43,302 | $ | 54,512 | |||
New product warranties | 7,849 | 7,987 | |||||
Other adjustments and expirations | (393 | ) | 5,933 | ||||
Claims activity | (18,094 | ) | (24,364 | ) | |||
Effect of change in exchange rates | 2,198 | (766 | ) | ||||
Ending balance | 34,862 | 43,302 | |||||
Less: current portion of warranty | 21,150 | 24,874 | |||||
Long-term warranty | $ | 13,712 | $ | 18,428 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Total warranty expense | $ | (2,054 | ) | $ | 13,920 | $ | 45,984 |
Year Ended December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Beginning balance | $ | 31,549 | $ | 33,654 | |||
Unearned revenue for new extended warranties | 1,186 | 1,437 | |||||
Unearned revenue recognized | (4,247 | ) | (3,594 | ) | |||
Effect of change in exchange rates | 154 | 52 | |||||
Ending balance | 28,642 | 31,549 | |||||
Less: current portion of unearned revenue for extended warranty | 4,220 | 4,226 | |||||
Long-term unearned revenue for extended warranty within other long-term obligations | $ | 24,422 | $ | 27,323 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Plan costs | $ | 30,521 | $ | 27,276 | $ | 25,355 |
At December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
IBNR accrual | $ | 2,664 | $ | 2,441 |
Total Expected Costs at December 31, 2017 | Costs Recognized in Prior Periods | Costs Recognized During the Year Ended December 31, 2017 | Remaining Costs to be Recognized at December 31, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Employee severance costs | $ | 39,855 | $ | 39,686 | $ | 169 | $ | — | |||||||
Asset impairments & net gain on sale or disposal | 4,922 | 7,219 | (2,297 | ) | — | ||||||||||
Other restructuring costs | 15,435 | 889 | 8,546 | 6,000 | |||||||||||
Total | $ | 60,212 | $ | 47,794 | $ | 6,418 | $ | 6,000 | |||||||
Segments: | |||||||||||||||
Electricity | $ | 10,525 | $ | 8,827 | $ | 198 | $ | 1,500 | |||||||
Gas | 31,181 | 23,968 | 5,213 | 2,000 | |||||||||||
Water | 15,761 | 13,061 | 700 | 2,000 | |||||||||||
Corporate unallocated | 2,745 | 1,938 | 307 | 500 | |||||||||||
Total | $ | 60,212 | $ | 47,794 | $ | 6,418 | $ | 6,000 |
Accrued Employee Severance | Asset Impairments & Net Gain on Sale or Disposal | Other Accrued Costs | Total | ||||||||||||
(in thousands) | |||||||||||||||
Beginning balance, January 1, 2017 | $ | 45,368 | $ | — | $ | 2,602 | $ | 47,970 | |||||||
Costs incurred and charged to expense | 169 | (2,297 | ) | 8,546 | 6,418 | ||||||||||
Cash receipts (payments) | (12,423 | ) | 3,704 | (8,683 | ) | (17,402 | ) | ||||||||
Net assets disposed and impaired | — | (1,407 | ) | — | (1,407 | ) | |||||||||
Effect of change in exchange rates | 4,540 | — | 6 | 4,546 | |||||||||||
Ending balance, December 31, 2017 | $ | 37,654 | $ | — | $ | 2,471 | $ | 40,125 |
Foreign Currency Translation Adjustments | Net Unrealized Gain (Loss) on Derivative Instruments | Net Unrealized Gain (Loss) on Nonderivative Instruments | Pension Benefit Obligation Adjustments | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
(in thousands) | |||||||||||||||||||
Balances at January 1, 2015 | $ | (85,080 | ) | $ | (768 | ) | $ | (14,380 | ) | $ | (34,832 | ) | $ | (135,060 | ) | ||||
OCI before reclassifications | (73,891 | ) | 76 | — | 4,570 | (69,245 | ) | ||||||||||||
Amounts reclassified from AOCI | 962 | 1,010 | — | 1,726 | 3,698 | ||||||||||||||
Total other comprehensive income (loss) | (72,929 | ) | 1,086 | — | 6,296 | (65,547 | ) | ||||||||||||
Balances at December 31, 2015 | $ | (158,009 | ) | $ | 318 | $ | (14,380 | ) | $ | (28,536 | ) | $ | (200,607 | ) | |||||
OCI before reclassifications | (23,570 | ) | (1,087 | ) | — | (6,191 | ) | (30,848 | ) | ||||||||||
Amounts reclassified from AOCI | (1,407 | ) | 812 | — | 2,723 | 2,128 | |||||||||||||
Total other comprehensive income (loss) | (24,977 | ) | (275 | ) | — | (3,468 | ) | (28,720 | ) | ||||||||||
Balances at December 31, 2016 | $ | (182,986 | ) | $ | 43 | $ | (14,380 | ) | $ | (32,004 | ) | $ | (229,327 | ) | |||||
OCI before reclassifications | 53,854 | 360 | — | 2,354 | 56,568 | ||||||||||||||
Amounts reclassified from AOCI | 484 | 563 | — | 1,234 | 2,281 | ||||||||||||||
Total other comprehensive income (loss) | 54,338 | 923 | — | 3,588 | 58,849 | ||||||||||||||
Balances at December 31, 2017 | $ | (128,648 | ) | $ | 966 | $ | (14,380 | ) | $ | (28,416 | ) | $ | (170,478 | ) |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Before-tax amount | |||||||||||
Foreign currency translation adjustment | $ | 54,218 | $ | (23,280 | ) | $ | (74,219 | ) | |||
Foreign currency translation adjustment reclassified into net income on disposal | 484 | (1,407 | ) | 962 | |||||||
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | 585 | (1,768 | ) | 123 | |||||||
Net hedging (gain) loss reclassified to net income | 916 | 1,322 | 1,639 | ||||||||
Net unrealized gain (loss) on defined benefit plans | 3,401 | (6,256 | ) | 6,512 | |||||||
Net defined benefit plan loss reclassified to net income | 1,782 | 2,752 | 2,459 | ||||||||
Total other comprehensive income (loss), before tax | 61,386 | (28,637 | ) | (62,524 | ) | ||||||
Tax (provision) benefit | |||||||||||
Foreign currency translation adjustment | (364 | ) | (290 | ) | 328 | ||||||
Foreign currency translation adjustment reclassified into net income on disposal | — | — | — | ||||||||
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | (225 | ) | 681 | (47 | ) | ||||||
Net hedging (gain) loss reclassified into net income | (353 | ) | (510 | ) | (629 | ) | |||||
Net unrealized gain (loss) on defined benefit plans | (1,047 | ) | 65 | (1,942 | ) | ||||||
Net defined benefit plan loss reclassified to net income | (548 | ) | (29 | ) | (733 | ) | |||||
Total other comprehensive income (loss) tax (provision) benefit | (2,537 | ) | (83 | ) | (3,023 | ) | |||||
Net-of-tax amount | |||||||||||
Foreign currency translation adjustment | 53,854 | (23,570 | ) | (73,891 | ) | ||||||
Foreign currency translation adjustment reclassified into net income on disposal | 484 | (1,407 | ) | 962 | |||||||
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | 360 | (1,087 | ) | 76 | |||||||
Net hedging (gain) loss reclassified into net income | 563 | 812 | 1,010 | ||||||||
Net unrealized gain (loss) on defined benefit plans | 2,354 | (6,191 | ) | 4,570 | |||||||
Net defined benefit plan loss reclassified to net income | 1,234 | 2,723 | 1,726 | ||||||||
Total other comprehensive income (loss), net of tax | $ | 58,849 | $ | (28,720 | ) | $ | (65,547 | ) |
December 31, 2017 | December 31, 2016 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 176,274 | $ | 176,274 | $ | 133,565 | $ | 133,565 | |||||||
Restricted cash | 311,061 | 311,061 | — | — | |||||||||||
Foreign exchange forwards | 41 | 41 | 169 | 169 | |||||||||||
Interest rate swaps | 2,370 | 2,370 | 1,830 | 1,830 | |||||||||||
Interest rate caps | 489 | 489 | 946 | 946 | |||||||||||
Liabilities | |||||||||||||||
Credit facility | |||||||||||||||
USD denominated term loan | $ | 194,063 | $ | 192,295 | $ | 208,125 | $ | 205,676 | |||||||
Multicurrency revolving line of credit | 125,414 | 124,100 | 97,167 | 95,906 | |||||||||||
Senior notes | 300,000 | 301,125 | — | — | |||||||||||
Interest rate swaps | — | — | 934 | 934 | |||||||||||
Foreign exchange forwards | 289 | 289 | 449 | 449 |
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. |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Revenues | |||||||||||
Electricity | $ | 1,022,939 | $ | 938,374 | $ | 820,306 | |||||
Gas | 533,624 | 569,476 | 543,805 | ||||||||
Water | 461,634 | 505,336 | 519,422 | ||||||||
Total Company | $ | 2,018,197 | $ | 2,013,186 | $ | 1,883,533 | |||||
Gross profit | |||||||||||
Electricity | $ | 318,953 | $ | 282,677 | $ | 225,446 | |||||
Gas | 191,303 | 205,063 | 185,559 | ||||||||
Water | 164,898 | 172,580 | 145,680 | ||||||||
Total Company | $ | 675,154 | $ | 660,320 | $ | 556,685 | |||||
Operating income | |||||||||||
Electricity | $ | 93,566 | $ | 68,287 | $ | 31,104 | |||||
Gas | 74,206 | 66,813 | 67,471 | ||||||||
Water | 44,494 | 37,266 | 19,864 | ||||||||
Corporate unallocated | (60,840 | ) | (76,155 | ) | (65,593 | ) | |||||
Total Company | 151,426 | 96,211 | 52,846 | ||||||||
Total other income (expense) | (16,851 | ) | (11,584 | ) | (15,744 | ) | |||||
Income before income taxes | $ | 134,575 | $ | 84,627 | $ | 37,102 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
United States and Canada | $ | 1,137,508 | $ | 1,126,787 | $ | 997,293 | |||||
Europe, Middle East, and Africa (EMEA) | 672,942 | 698,106 | 701,301 | ||||||||
Other | 207,747 | 188,293 | 184,939 | ||||||||
Total Company | $ | 2,018,197 | $ | 2,013,186 | $ | 1,883,533 |
At December 31, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
United States | $ | 67,764 | $ | 70,435 | |||
Outside United States | 133,004 | 106,023 | |||||
Total Company | $ | 200,768 | $ | 176,458 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Electricity | $ | 24,703 | $ | 28,468 | $ | 35,896 | |||||
Gas | 18,800 | 20,714 | 20,288 | ||||||||
Water | 16,092 | 18,675 | 19,459 | ||||||||
Corporate unallocated | 3,620 | 461 | 350 | ||||||||
Total Company | $ | 63,215 | $ | 68,318 | $ | 75,993 |
Fair Value | Weighted Average Useful Life | ||||
(in thousands) | (in years) | ||||
Current assets | $ | 15,118 | |||
Property, plant, and equipment | 2,275 | ||||
Other long-term assets | 1,879 | ||||
Identified intangible assets | |||||
Core-developed technology | 19,250 | 8 | |||
Customer contracts and relationships | 12,230 | 10 | |||
Trademarks and trade names | 4,310 | 15 | |||
Total identified intangible assets subject to amortization | 35,790 | ||||
In-process research and development (IPR&D) | 710 | ||||
Total identified intangible assets | 36,500 | ||||
Goodwill | 59,675 | ||||
Current liabilities | (10,787 | ) | |||
Long-term liabilities | (4,645 | ) | |||
Total net assets acquired | $ | 100,015 |
June 1, 2017 - December 31, 2017 | |||
Revenues | $ | 32,436 | |
Net income (loss) | (2,448 | ) |
Year Ended December 31, | |||||||
2017 | 2016 | ||||||
Revenues | $ | 2,040,309 | $ | 2,072,695 | |||
Net income | 64,230 | 24,415 |
• | Elimination of transaction costs incurred by Comverge and Itron prior to the acquisition completion |
• | Reclassification of certain expenses incurred after the acquisition to the appropriate periods assuming the acquisition closed on January 1, 2016 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total Year | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
2017 | |||||||||||||||||||
Statement of operations data (unaudited): | |||||||||||||||||||
Revenues | $ | 477,592 | $ | 503,082 | $ | 486,747 | $ | 550,776 | $ | 2,018,197 | |||||||||
Gross profit | 157,225 | 177,860 | 165,318 | 174,751 | 675,154 | ||||||||||||||
Net income attributable to Itron, Inc. | 15,845 | 14,097 | 25,576 | 1,780 | 57,298 | ||||||||||||||
Earnings per common share - Basic(1) | $ | 0.41 | $ | 0.36 | $ | 0.66 | $ | 0.05 | $ | 1.48 | |||||||||
Earnings per common share - Diluted(1) | $ | 0.40 | $ | 0.36 | $ | 0.65 | $ | 0.05 | $ | 1.45 | |||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total Year | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
2016 | |||||||||||||||||||
Statement of operations data (unaudited): | |||||||||||||||||||
Revenues | $ | 497,590 | $ | 513,024 | $ | 506,859 | $ | 495,713 | $ | 2,013,186 | |||||||||
Gross profit | 163,203 | 169,705 | 170,749 | 156,663 | 660,320 | ||||||||||||||
Net income (loss) attributable to Itron, Inc. | 10,089 | 19,917 | (9,885 | ) | 11,649 | 31,770 | |||||||||||||
Earnings (loss) per common share - Basic(1) | $ | 0.27 | $ | 0.52 | $ | (0.26 | ) | $ | 0.30 | $ | 0.83 | ||||||||
Earnings (loss) per common share - Diluted(1) | $ | 0.26 | $ | 0.52 | $ | (0.26 | ) | $ | 0.30 | $ | 0.82 |
(1) | The sum of the quarterly EPS data presented in the table may not equal the annual results due to rounding and the impact of dilutive securities on the annual versus the quarterly EPS calculations. |
ITEM 9: | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 12: | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Exhibit Number | Description of Exhibits | |
2.1 | ||
3.1 | ||
3.2 | ||
4.1 | ||
4.2 | ||
4.3 | ||
4.4 | ||
10.1* | ||
10.2* | ||
10.3* | ||
10.4* | ||
10.5* | ||
Exhibit Number | Description of Exhibits | |
10.6* | ||
10.7* | ||
10.8* | ||
10.9* | ||
10.10* | ||
10.11* | ||
10.12* | ||
10.13* | ||
10.14* | ||
10.15* | ||
10.16* | ||
10.17* | ||
10.18* | ||
10.19* | ||
10.20* | ||
Exhibit Number | Description of Exhibits | |
10.21* | ||
10.22* | ||
10.23* | ||
10.24* | ||
10.25* | ||
10.26 | ||
10.27 | ||
10.28 | ||
10.29* | ||
10.30* | ||
10.31* | ||
12.1 | ||
21.1 | ||
23.1 | ||
23.2 | ||
31.1 | ||
31.2 | ||
32.1 | ||
Exhibit Number | Description of Exhibits | |
101.INS | XBRL Instance Document. (submitted electronically with this report in accordance with the provisions of Regulation S-T) | |
101.SCH | XBRL Taxonomy Extension Schema. (submitted electronically with this report in accordance with the provisions of Regulation S-T) | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. (submitted electronically with this report in accordance with the provisions of Regulation S-T) | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase. (submitted electronically with this report in accordance with the provisions of Regulation S-T) | |
101.LAB | XBRL Taxonomy Extension Label Linkbase. (submitted electronically with this report in accordance with the provisions of Regulation S-T) | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. (submitted electronically with this report in accordance with the provisions of Regulation S-T) | |
* | Management contract or compensatory plan or arrangement. |
ITRON, INC. | ||
By: | /s/ JOAN S. HOOPER | |
Joan S. Hooper | ||
Senior Vice President and Chief Financial Officer |
Signatures | Title | |
/s/ PHILIP C. MEZEY | ||
Philip C. Mezey | President and Chief Executive Officer (Principal Executive Officer), Director | |
/s/ JOAN S. HOOPER | ||
Joan S. Hooper | Senior Vice President and Chief Financial Officer | |
/s/ KIRBY A. DYESS | ||
Kirby A. Dyess | Director | |
/s/ THOMAS S. GLANVILLE | ||
Thomas S. Glanville | Director | |
/s/ FRANK M. JAEHNERT | ||
Frank M. Jaehnert | Director | |
/s/ JEROME J. LANDE | ||
Jerome J. Lande | Director | |
/s/ TIMOTHY M. LEYDEN | ||
Timothy M. Leyden | Director | |
/s/ PETER MAINZ | ||
Peter Mainz | Director | |
/s/ DANIEL S. PELINO | ||
Daniel S. Pelino | Director | |
/s/ GARY E. PRUITT | ||
Gary E. Pruitt | Director | |
/s/ DIANA D. TREMBLAY | ||
Diana D. Tremblay | Director | |
/s/ LYNDA L. ZIEGLER | ||
Lynda L. Ziegler | Chair of the Board |
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1) | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
(in thousands, except ratios) | |||||||||||||||||||
Earnings | |||||||||||||||||||
Pre-tax income (loss) | $ | 134,575 | $ | 84,627 | $ | 37,102 | $ | (18,265 | ) | $ | (153,400 | ) | |||||||
Add: dividends received from equity investees | 719 | 335 | 444 | 681 | 707 | ||||||||||||||
Less: noncontrolling interest income | (2,951 | ) | (3,283 | ) | (2,325 | ) | (1,370 | ) | (2,219 | ) | |||||||||
Less: income from equity investees | (542 | ) | (393 | ) | (807 | ) | (270 | ) | (954 | ) | |||||||||
131,801 | 81,286 | 34,414 | (19,224 | ) | (155,866 | ) | |||||||||||||
Fixed charges:(2) | |||||||||||||||||||
Interest expense, gross(3) | 11,581 | 10,948 | 12,289 | 11,602 | 10,686 | ||||||||||||||
Interest portion of rent expense | 5,096 | 4,958 | 5,405 | 6,832 | 6,651 | ||||||||||||||
a) Fixed charges | 16,677 | 15,906 | 17,694 | 18,434 | 17,337 | ||||||||||||||
b) Earnings for ratio(4) | $ | 148,478 | $ | 97,192 | $ | 52,108 | $ | (790 | ) | $ | (138,529 | ) | |||||||
Ratios: | |||||||||||||||||||
Earnings to fixed charges (b/a)(5) | 8.9 | 6.1 | 2.9 | N/A | N/A | ||||||||||||||
Deficit of earnings to fixed charges | N/A | N/A | N/A | $ | (19,224 | ) | $ | (155,866 | ) |
(1) | We had no preferred stock outstanding for any period presented and accordingly our ratio of earnings to combined fixed charges and preferred stock dividends is the same as our ratio of earnings to fixed charges for all periods presented. |
(2) | Fixed charges consist of interest on indebtedness and amortization of debt issuance costs plus that portion of lease rental expense representative of the interest factor. |
(3) | Interest expense, gross, includes amortization of prepaid debt fees. |
(4) | Earnings for ratio consists of income (loss) from continuing operations before income taxes, plus dividends received from equity method investments, less income from equity investees, less income attributable to noncontrolling interests. |
(5) | Earnings to fixed charges ratio is not calculated for years with a Deficit of earnings to fixed charges amount as the ratio is less than 1:1. |
CONSOLIDATED SUBSIDIARIES OF THE REGISTRANT AT DECEMBER 31, 2017 | Exhibit 21.1 |
Itron, Inc. Domestic Subsidiaries | State of Incorporation |
Itron International, Inc. | Delaware |
Ivory Merger Sub, Inc. | Delaware |
Itron Brazil I, LLC | Washington |
Itron Brazil II, LLC | Washington |
Itron, Inc. International Subsidiaries | Jurisdiction of Incorporation or Organization |
Itron Argentina S.A. | Argentina |
Itron Australasia Pty Limited | Australia |
Itron Austria GmbH | Austria |
Itron Management Services SA | Belgium |
Contigea SA | Belgium |
Itron Sistemas e Tecnologia Ltda | Brazil |
Itron Soluções para Energia e Àgua Ltda. | Brazil |
Itron China Gas Holding Co. Ltd. | British Virgin Islands |
Itron Canada, Inc. | Canada |
Compañía Chilena de Medición S.A. | Chile |
Itron Metering Solutions (Suzhou) Co., Ltd. | China |
Itron Metering Systems (Suzhou) Co., Ltd. | China |
Comverge International, Ltd. | Cyprus |
Itron Czech Republic s.r.o. | Czech Republic |
Asais | France |
Asais Conseil | France |
Itron France S.A.S. | France |
Itron Holding France S.A.S. | France |
Itron Holding Germany GmbH | Germany |
Itron GmbH | Germany |
Itron Zähler & Systemtechnik GmbH | Germany |
Itron Unterstutzungskasse GmbH | Germany |
Allmess GmbH | Germany |
Itron Unterstutzungseinrichtung GmbH | Germany |
SEWA GmbH | Germany |
Ganz Meter Company Ltd. | Hungary |
Itron Labs Kft | Hungary |
Itron India Private Limited | India |
Itron Metering Solutions India Private Limited | India |
PT Mecoindo (J.V.) | Indonesia |
Itron Management Services Ireland, Limited | Ireland |
Temetra Limited | Ireland |
Itron Italia SpA | Italy |
Comverge Japan K.K. | Japan |
Itron Japan Co., Ltd. | Japan |
Itron Metering Solutions Luxembourg SARL | Luxembourg |
Itron Global SARL | Luxembourg |
Metertek Sdn Bhd (J.V. 100% indirectly owned) | Malaysia |
Itron, Inc. International Subsidiaries | Jurisdiction of Incorporation or Organization |
Itron Servicios, S.A. de C.V. | Mexico |
Itron Distribución S.A. de C.V. | Mexico |
Inal-Industria Nacional de Precisão Limitada (J.V.) | Mozambique |
Itron Nederland B.V. | Netherlands |
Itron Polska SP ZOO | Poland |
Itron Portugal, Unipessoal, LDA. | Portugal |
Itron Imobiliaria, Unipessoal, LDA. | Portugal |
Itron Sistemas de Medição Lda. | Portugal |
Itron Middle East LLC | Qatar |
Comverge South Africia PTY Ltd. | Republic of South Africia |
Comverge Energy Management Services (EMS) PTY Ltd. | Republic of South Africia |
Comverge Energy Management Technologies (EMT) PTY Ltd. | Republic of South Africia |
Itron Measurement and Systems (Proprietary) Limited | Republic of South Africa |
Itron LLC | Russia |
Arabian Metering Company | Saudi Arabia |
Itron Metering Systems Singapore Pte Ltd. | Singapore |
Itron Spain SLU | Spain |
Itron Sweden AB | Sweden |
Itron Ukraine | Ukraine |
Itron Ukrgas Meters Company (J.V. Majority) | Ukraine |
Itron Metering Solutions UK Ltd. | United Kingdom |
Itron Development UK Ltd. | United Kingdom |
(1) | Registration Statement (Form S-8 No. 333-40356) pertaining to the Itron, Inc. 2000 Stock Incentive Compensation Plan, |
(2) | Registration Statement (Form S-8 No. 333-89966) pertaining to the Itron, Inc. 2002 Employee Stock Purchase Plan, |
(3) | Registration Statement (Form S-8 No. 333-97571) pertaining to the Itron, Inc. Amended and Restated 2000 Stock Incentive Plan, |
(4) | Registration Statement (Form S-8 No. 333-110703) pertaining to the Itron, Inc. Incentive Savings Plan, |
(5) | Registration Statement (Form S-8 No. 333-115987) pertaining to the Itron, Inc. Amended and Restated 2000 Stock Incentive Plan, |
(6) | Registration Statement (Form S-8 No. 333-125461) pertaining to the Itron, Inc. Amended and Restated 2000 Stock Incentive Plan, and the Itron, Inc. Amended and Restated 2002 Employee Stock Purchase Plan, |
(7) | Registration Statement (Form S-8 No. 333-134749) pertaining to the Itron, Inc. Amended and Restated 2000 Stock Incentive Plan, |
(8) | Registration Statement (Form S-8 No. 333-143048) pertaining to the Itron, Inc. Amended and Restated 2000 Stock Incentive Plan, |
(9) | Registration Statement (Form S-8 No. 333-166601) pertaining to the Itron, Inc. 2010 Stock Incentive Plan, |
(10) | Registration Statement (Form S-8 No. 333-181685) pertaining to the Itron, Inc. 2012 Employee Stock Purchase Plan, |
(11) | Registration Statement (Form S-8 No. 333-193970) pertaining to the Itron, Inc. 2010 Stock Incentive Plan, and |
(12) | Registration Statement (Form S-8 No. 333-195633) pertaining to the Itron, Inc. Amended and Restated 2010 Stock Incentive Plan. |
(13) | Registration Statement (Form S-8 No. 333-218086) pertaining to the Itron, Inc. Second Amended and Restated 2010 Stock Incentive Plan. |
(14) | Registration Statement (Form S-8 No. 333-222480) pertaining to the Silver Springs Networks, Inc. 2012 Equity Incentive Plan, Non-Plan Inducement Stock Options, Non-Plan Inducement Restricted Stock Units and Non-Plan Inducement Performance Stock Units |
1. | I have reviewed this Annual Report on Form 10-K of Itron, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and |
b) | Any fraud, whether or not material that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
ITRON, INC. | |||
By: | /s/ PHILIP C. MEZEY | ||
Philip C. Mezey President and Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K of Itron, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and |
b) | Any fraud, whether or not material that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
ITRON, INC. | |||
By: | /s/ JOAN S. HOOPER | ||
Joan S. Hooper Senior Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ PHILIP C. MEZEY |
Philip C. Mezey President and Chief Executive Officer |
February 28, 2018 |
/s/ JOAN S. HOOPER |
Joan S. Hooper Senior Vice President and Chief Financial Officer |
February 28, 2018 |
Document and Entity Information Document - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Jan. 31, 2018 |
Jun. 30, 2017 |
|
Entity Information [Line Items] | |||
Entity Registrant Name | ITRON INC /WA/ | ||
Entity Central Index Key | 0000780571 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | ITRI | ||
Entity Common Stock, Shares Outstanding | 38,784,060 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,598,397,322 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Statement [Abstract] | |||
Sales Revenue, Goods, Net | $ 1,813,925 | $ 1,830,070 | $ 1,699,534 |
Sales Revenue, Services, Net | 204,272 | 183,116 | 183,999 |
Total revenues | 2,018,197 | 2,013,186 | 1,883,533 |
Cost of Goods Sold | 1,205,548 | 1,239,152 | 1,216,709 |
Cost of Services | 137,495 | 113,714 | 110,139 |
Total cost of revenues | 1,343,043 | 1,352,866 | 1,326,848 |
Gross profit | 675,154 | 660,320 | 556,685 |
Operating expenses | |||
Sales and marketing | 170,008 | 158,883 | 161,380 |
Product development | 169,977 | 168,209 | 162,334 |
General and administrative | 156,540 | 162,815 | 155,715 |
Amortization of Intangible Assets | 20,785 | 25,112 | 31,673 |
Restructuring | 6,418 | 49,090 | (7,263) |
Total operating expenses | 523,728 | 564,109 | 503,839 |
Operating income | 151,426 | 96,211 | 52,846 |
Other income (expense) | |||
Interest income | 2,126 | 865 | 761 |
Interest expense | (11,581) | (10,948) | (12,289) |
Other income (expense), net | (7,396) | (1,501) | (4,216) |
Total other income (expense) | (16,851) | (11,584) | (15,744) |
Income before income taxes | 134,575 | 84,627 | 37,102 |
Income tax provision | (74,326) | (49,574) | (22,099) |
Net income | 60,249 | 35,053 | 15,003 |
Net income attributable to noncontrolling interests | 3,283 | 2,325 | |
Net income attributable to Itron, Inc. | $ 57,298 | $ 31,770 | $ 12,678 |
Earnings per common share - Basic | $ 1.48 | $ 0.83 | $ 0.33 |
Earnings per common share - Diluted | $ 1.45 | $ 0.82 | $ 0.33 |
Weighted average common shares outstanding - Basic | 38,655 | 38,207 | 38,224 |
Weighted average common shares outstanding - Diluted | 39,387 | 38,643 | 38,506 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 60,249 | $ 35,053 | $ 15,003 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 54,338 | (24,977) | (72,929) |
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | 923 | (275) | 1,086 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | (3,588) | 3,468 | (6,296) |
Total other comprehensive income (loss), net of tax | 58,849 | (28,720) | (65,547) |
Total comprehensive income (loss), net of tax | 119,098 | 6,333 | (50,544) |
Net income attributable to noncontrolling interests | 3,283 | 2,325 | |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: | 3,283 | 2,325 | |
Comprehensive income (loss) attributable to Itron, Inc. | $ 116,147 | $ 3,050 | $ (52,869) |
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Common Stock, Number of Shares, Par Value and Other Disclosures | ||
Common stock, par value | ||
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 38,771 | 38,317 |
Common stock, shares outstanding | 38,771 | 38,317 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures | ||
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Summary of Significant Accounting Policies (Text Block) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies We were incorporated in the state of Washington in 1977, and are a technology company, offering end-to-end solutions to enhance productivity and efficiency, primarily focused on utilities and municipalities around the globe. Our solutions generally include robust industrial grade networks, smart meters, meter data management software, and knowledge application solutions, which bring additional value to the customer. Our professional services help our customers project-manage, install, implement, operate, and maintain their systems. We operate under the Itron brand worldwide and manage and report under three operating segments: Electricity, Gas, and Water. Financial Statement Preparation The consolidated financial statements presented in this Annual Report include the Consolidated Statements of Operations, Comprehensive Income (Loss), Equity, and Cash Flows for the years ended December 31, 2017, 2016, and 2015 and the Consolidated Balance Sheets as of December 31, 2017 and 2016 of Itron, Inc. and its subsidiaries, prepared in accordance with U.S. generally accepted accounting principles (GAAP). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of significant estimates include revenue recognition, warranty, restructuring, income taxes, business combinations, goodwill and intangible assets, defined benefit pension plans, contingencies, and stock-based compensation. Due to various factors affecting future costs and operations, actual results could differ materially from these estimates. Basis of Consolidation We consolidate all entities in which we have a greater than 50% ownership interest or in which we exercise control over the operations. We use the equity method of accounting for entities in which we have a 50% or less investment and exercise significant influence. Entities in which we have less than a 20% investment and where we do not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. Noncontrolling Interests In several of our consolidated international subsidiaries, we have joint venture partners, who are minority shareholders. Although these entities are not wholly-owned by Itron, we consolidate them because we have a greater than 50% ownership interest or because we exercise control over the operations. The noncontrolling interest balance is adjusted each period to reflect the allocation of net income (loss) and other comprehensive income (loss) attributable to the noncontrolling interests, as shown in our Consolidated Statements of Operations and our Consolidated Statements of Comprehensive Income (Loss) as well as contributions from and distributions to the owners. The noncontrolling interest balance in our Consolidated Balance Sheets represents the proportional share of the equity of the joint venture entities which is attributable to the minority shareholders. Cash and Cash Equivalents We consider all highly liquid instruments with remaining maturities of three months or less at the date of acquisition to be cash equivalents. Restricted Cash and Cash Equivalents Cash and cash equivalents that are contractually restricted from operating use are classified as restricted cash and cash equivalents. On December 22, 2017, we issued $300 million aggregate principal amount of 5.00% senior unsecured notes due in 2026 (Notes). The proceeds of the Notes plus payments for prepaid interest and a premium for a special mandatory redemption option were deposited into escrow, where the funds remained until all the escrow release conditions were satisfied, specifically the closing of the acquisition of Silver Spring Networks, Inc. (SSNI) on January 5, 2018. Had the acquisition agreement been terminated, the funds in escrow would have been returned to the investors of the Notes plus accrued and unpaid interest up to the date of release, with any remaining balance from prepaid interest returned to the Company. We have recognized the balance in escrow as restricted cash in our consolidated financial statements. See Note 6 - Debt and Note 19 - Subsequent Events for further details. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:
Accounts Receivable, net Accounts receivable are recognized for invoices issued to customers in accordance with our contractual arrangements. Interest and late payment fees are minimal. Unbilled receivables are recognized when revenues are recognized upon product shipment or service delivery and invoicing occurs at a later date. We recognize an allowance for doubtful accounts representing our estimate of the probable losses in accounts receivable at the date of the balance sheet based on our historical experience of bad debts and our specific review of outstanding receivables. Accounts receivable are written-off against the allowance when we believe an account, or a portion thereof, is no longer collectible. Inventories Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method. Cost includes raw materials and labor, plus applied direct and indirect costs. Net realizable value is the estimated selling price in the normal course of business, minus the cost of completion, disposal and transportation. Derivative Instruments All derivative instruments, whether designated in hedging relationships or not, are recognized on the Consolidated Balance Sheets at fair value as either assets or liabilities. The components and fair values of our derivative instruments are determined using the fair value measurements of significant other observable inputs (Level 2), as defined by GAAP. The fair value of our derivative instruments may switch between an asset and a liability depending on market circumstances at the end of the period. We include the effect of our counterparty credit risk based on current published credit default swap rates when the net fair value of our derivative instruments are in a net asset position and the effect of our own nonperformance risk when the net fair value of our derivative instruments are in a net liability position. For any derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. For any derivative designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recognized as a component of other comprehensive income (loss) (OCI) and are recognized in earnings when the hedged item affects earnings. Ineffective portions of cash flow hedges are recognized in other income (expense) in the Consolidated Statements of Operations. For a hedge of a net investment, the effective portion of any unrealized gain or loss from the foreign currency revaluation of the hedging instrument is reported in OCI as a net unrealized gain or loss on derivative instruments. Upon termination of a net investment hedge, the net derivative gain/loss will remain in accumulated other comprehensive income (loss) (AOCI) until such time when earnings are impacted by a sale or liquidation of the associated operations. Ineffective portions of fair value changes or the changes in fair value of derivative instruments that do not qualify for hedging activities are recognized in other income (expense) in the Consolidated Statements of Operations. We classify cash flows from our derivative programs as cash flows from operating activities in the Consolidated Statements of Cash Flows. Derivatives are not used for trading or speculative purposes. Our derivatives are with credit worthy multinational commercial banks, with whom we have master netting agreements; however, our derivative positions are not recognized on a net basis in the Consolidated Balance Sheets. There are no credit-risk-related contingent features within our derivative instruments. Refer to Note 7 and Note 14 for further disclosures of our derivative instruments and their impact on OCI. Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 30 years for buildings and improvements and three to ten years for machinery and equipment, computers and software, and furniture. Leasehold improvements are capitalized and depreciated over the term of the applicable lease, including renewable periods if reasonably assured, or over the useful lives, whichever is shorter. Construction in process represents capital expenditures incurred for assets not yet placed in service. Costs related to internally developed software and software purchased for internal uses are capitalized and are amortized over the estimated useful lives of the assets. Repair and maintenance costs are recognized as incurred. We have no major planned maintenance activities. We review long-lived assets for impairment whenever events or circumstances indicate the carrying amount of an asset group may not be recoverable. Assets held for sale are classified within other current assets in the Consolidated Balance Sheets, are reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. Gains and losses from asset disposals and impairment losses are classified within the Consolidated Statement of Operations according to the use of the asset, except those gains and losses recognized in conjunction with our restructuring activities, which are classified within restructuring expense. Prepaid Debt Fees Prepaid debt fees for term debt represent the capitalized direct costs incurred related to the issuance of debt and are recognized as a direct deduction from the carrying amount of the corresponding debt liability. We have elected to present prepaid debt fees for revolving debt within other long-term assets in the Consolidated Balance Sheets. These costs are amortized to interest expense over the terms of the respective borrowings, including contingent maturity or call features, using the effective interest method, or straight-line method when associated with a revolving credit facility. When debt is repaid early, the related portion of unamortized prepaid debt fees is written off and included in interest expense. Business Combinations On the date of acquisition, the assets acquired, liabilities assumed, and any noncontrolling interests in the acquiree are recognized at their fair values. The acquiree's results of operations are also included as of the date of acquisition in our consolidated results. Intangible assets that arise from contractual/legal rights, or are capable of being separated, as well as in-process research and development (IPR&D), are measured and recognized at fair value, and amortized over the estimated useful life. IPR&D is not amortized until such time as the associated development projects are completed or terminated. If a development project is completed, the IPR&D is reclassified as a core technology intangible asset and amortized over its estimated useful life. If the development project is terminated, the recognized value of the associated IPR&D is immediately recognized. If practicable, assets acquired and liabilities assumed arising from contingencies are measured and recognized at fair value. If not practicable, such assets and liabilities are measured and recognized when it is probable that a gain or loss has occurred, and the amount can be reasonably estimated. The residual balance of the purchase price, after fair value allocations to all identified assets and liabilities, represents goodwill. Acquisition-related costs are recognized as incurred. Integration costs associated with an acquisition are generally recognized in periods subsequent to the acquisition date, and changes in deferred tax asset valuation allowances and acquired income tax uncertainties, including penalties and interest, after the measurement period are recognized as a component of the provision for income taxes. Our acquisitions may include contingent consideration, which require us to recognize the fair value of the estimated liability at the time of the acquisition. Subsequent changes in the estimate of the amount to be paid under the contingent consideration arrangement are recognized in the Consolidated Statements of Operations. We estimate the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on information available at that time utilizing either a cost or income approach. The determination of the fair value is judgmental in nature and involves the use of significant estimates and assumptions. Contingent consideration is recorded at fair value as of the date of the acquisition with adjustments occurring after the purchase price allocation period, which could be up to one year, recorded in earnings. Changes to valuation allowances on acquired deferred tax assets that occur after the acquisition date are recognized in the provision for, or benefit from, income taxes. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially between the preliminary allocation and end of the purchase price allocation period. Any changes in these estimates may have a material effect on our consolidated operating results or financial position. Goodwill and Intangible Assets Goodwill and intangible assets may result from our business acquisitions. Intangible assets may also result from the purchase of assets and intellectual property in a transaction that does not qualify as a business combination. We use estimates, including estimates of useful lives of intangible assets, the amount and timing of related future cash flows, and fair values of the related operations, in determining the value assigned to goodwill and intangible assets. Our finite-lived intangible assets are amortized over their estimated useful lives based on estimated discounted cash flows, generally three years to ten years for core-developed technology and customer contracts and relationships. Finite-lived intangible assets are tested for impairment at the asset group level when events or changes in circumstances indicate the carrying value may not be recoverable. Indefinite-lived intangible assets are tested for impairment annually, when events or changes in circumstances indicate the asset may be impaired, or at the time when their useful lives are determined to be no longer indefinite. Goodwill is assigned to our reporting units based on the expected benefit from the synergies arising from each business combination, determined by using certain financial metrics, including the forecasted discounted cash flows associated with each reporting unit. Each reporting unit corresponds with its respective operating segment. We test goodwill for impairment each year as of October 1, or more frequently should a significant impairment indicator occur. As part of the impairment test, we may elect to perform an assessment of qualitative factors. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit, including goodwill, is less than its carrying amount, or if we elect to bypass the qualitative assessment, we would then proceed with the impairment test. The impairment test involves comparing the fair values of the reporting units to their carrying amounts. If the carrying amount of the reporting unit's goodwill exceeds the fair value of the reporting unit, an impairment loss is recognized in an amount equal to the excess. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. We forecast discounted future cash flows at the reporting unit level using risk-adjusted discount rates and estimated future revenues and operating costs, which take into consideration factors such as existing backlog, expected future orders, supplier contracts, and expectations of competitive and economic environments. We also identify similar publicly traded companies and develop a correlation, referred to as a multiple, to apply to the operating results of the reporting units. These combined fair values are then reconciled to the aggregate market value of our common stock on the date of valuation, while considering a reasonable control premium. Contingencies A loss contingency is recognized if it is probable that an asset has been impaired, or a liability has been incurred and the amount of the loss can be reasonably estimated. We evaluate, among other factors, the degree of probability of an unfavorable outcome and our ability to make a reasonable estimate of the amount of the ultimate loss. Loss contingencies that we determine to be reasonably possible, but not probable, are disclosed but not recognized. Changes in these factors and related estimates could materially affect our financial position and results of operations. Legal costs to defend against contingent liabilities are recognized as incurred. Bonus and Profit Sharing We have various employee bonus and profit sharing plans, which provide award amounts for the achievement of financial and nonfinancial targets. If management determines it is probable that the targets will be achieved, and the amounts can be reasonably estimated, a compensation accrual is recognized based on the proportional achievement of the financial and nonfinancial targets. Although we monitor and accrue expenses quarterly based on our progress toward the achievement of the targets, the actual results may result in awards that are significantly greater or less than the estimates made in earlier quarters. Warranty We offer standard warranties on our hardware products and large application software products. We accrue the estimated cost of new product warranties based on historical and projected product performance trends and costs during the warranty period. Testing of new products in the development stage helps identify and correct potential warranty issues prior to manufacturing. Quality control efforts during manufacturing reduce our exposure to warranty claims. When testing or quality control efforts fail to detect a fault in one of our products, we may experience an increase in warranty claims. We track warranty claims to identify potential warranty trends. If an unusual trend is noted, an additional warranty accrual would be recognized if a failure event is probable and the cost can be reasonably estimated. When new products are introduced, our process relies on historical averages of similar products until sufficient data is available. As actual experience on new products becomes available, it is used to modify the historical averages to ensure the expected warranty costs are within a range of likely outcomes. Management regularly evaluates the sufficiency of the warranty provisions and makes adjustments when necessary. The warranty allowances may fluctuate due to changes in estimates for material, labor, and other costs we may incur to repair or replace projected product failures, and we may incur additional warranty and related expenses in the future with respect to new or established products, which could adversely affect our financial position and results of operations. The long-term warranty balance includes estimated warranty claims beyond one year. Warranty expense is classified within cost of revenues. Restructuring We recognize a liability for costs associated with an exit or disposal activity under a restructuring project in the period in which the liability is incurred. Employee termination benefits considered postemployment benefits are accrued when the obligation is probable and estimable, such as benefits stipulated by human resource policies and practices or statutory requirements. One-time termination benefits are recognized at the date the employee is notified. If the employee must provide future service greater than 60 days, such benefits are recognized ratably over the future service period. For contract termination costs, we recognize a liability upon the termination of a contract in accordance with the contract terms or the cessation of the use of the rights conveyed by the contract, whichever occurs later. Asset impairments associated with a restructuring project are determined at the asset group level. An impairment may be recognized for assets that are to be abandoned, are to be sold for less than net book value, or are held for sale in which the estimated proceeds less costs to sell are less than the net book value. We may also recognize impairment on an asset group, which is held and used, when the carrying value is not recoverable and exceeds the asset group's fair value. If an asset group is considered a business, a portion of our goodwill balance is allocated to it based on relative fair value. If the sale of an asset group under a restructuring project results in proceeds that exceed the net book value of the asset group, the resulting gain is recognized within restructuring expense in the Consolidated Statements of Operations. Defined Benefit Pension Plans We sponsor both funded and unfunded defined benefit pension plans for certain international employees. We recognize a liability for the projected benefit obligation in excess of plan assets or an asset for plan assets in excess of the projected benefit obligation. We also recognize the funded status of our defined benefit pension plans on our Consolidated Balance Sheets and recognize as a component of OCI, net of tax, the actuarial gains or losses and prior service costs or credits, if any that arise during the period but that are not recognized as components of net periodic benefit cost. If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the employees' average future service period. Share Repurchase Plan From time to time, we may repurchase shares of Itron common stock under programs authorized by our Board of Directors. Share repurchases are made in the open market or in privately negotiated transactions and in accordance with applicable securities laws. Under applicable Washington State law, shares repurchased are retired and not displayed separately as treasury stock on the financial statements; the value of the repurchased shares is deducted from common stock. Product Revenues and Service Revenues Product revenues include sales from standard and smart meters, systems or software, and any associated implementation and installation revenue. Service revenues include sales from post-sale maintenance support, consulting, outsourcing, and managed services. Revenue Recognition Revenues consist primarily of hardware sales, software license fees, software implementation, project management services, installation, consulting, and post-sale maintenance support. Revenues are recognized when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the sales price is fixed or determinable, and (4) collectability is reasonably assured. Many of our revenue arrangements involve multiple deliverables, which combine two or more of the following: hardware, meter reading system software, installation, and/or project management services. Separate contracts entered into with the same customer that meet certain criteria such as those that are entered into at or near the same time are evaluated as one single arrangement for purposes of applying multiple element arrangement revenue recognition. Revenue arrangements with multiple deliverables are divided into separate units of accounting at the inception of the arrangement and as each item in the arrangement is delivered. If the delivered item(s) has value to the customer on a standalone basis and delivery/performance of the undelivered item(s) is probable the total arrangement consideration is allocated among the separate units of accounting based on their relative fair values and the applicable revenue recognition criteria are then considered for each unit of accounting. The amount allocable to a delivered item is limited to the amount that we are entitled to collect and that is not contingent upon the delivery/performance of additional items. Revenues for each deliverable are then recognized based on the type of deliverable, such as 1) when the products are shipped, 2) services are delivered, 3) percentage-of-completion for implementation services, 4) upon receipt of customer acceptance, or 5) transfer of title and risk of loss. The majority of our revenue is recognized when products are shipped to or received by a customer or when services are provided. Hardware revenues are generally recognized at the time of shipment, receipt by the customer, or, if applicable, upon completion of customer acceptance provisions. Under contract accounting where revenue is recognized using percentage of completion, the cost to cost method is used to measure progress to completion. Revenue from OpenWay network software and services are recognized using the units-of-delivery method of contract accounting, as network design services and network software are essential to the functionality of the related hardware (network) for certain contracts. This methodology results in the deferral of costs and revenues as professional services and software implementation commence prior to deployment of hardware. In the unusual instances when we are unable to reliably estimate the cost to complete a contract at its inception, we use the completed contract method of contract accounting. Revenues and costs are recognized upon substantial completion when remaining costs are insignificant and potential risks are minimal. Change orders and contract modifications entered into after inception of the original contract are analyzed to determine if change orders or modifications are extensions of an existing agreement or are accounted for as a separate arrangement for purposes of applying contract accounting. If we estimate that the completion of a contract component (unit of accounting) will result in a loss, the loss is recognized in the period in which the loss becomes evident. We reevaluate the estimated loss through the completion of the contract component and adjust the estimated loss for changes in facts and circumstances. A few of our larger customer arrangements contain clauses for liquidated damages, related to delays in delivery or milestone accomplishments, which could become material in an event of failure to meet the contractual deadlines. At the inception of the arrangement and on an ongoing basis, we evaluate if the liquidated damages represent contingent revenue and, if so, we reduce the amount of consideration allocated to the delivered products and services and recognize it as a reduction in revenue in the period of default. If the arrangement is subject to contract accounting, liquidated damages resulting from failure or expected failure to meet milestones are estimated and are accounted for as a reduction of revenue in the period in which the liquidated damages are deemed probable of occurrence and are reasonably estimable. Our software customers often purchase a combination of software, software-related services, and post contract customer support (PCS). PCS includes telephone support services and updates or upgrades for software as part of a maintenance program. For these types of arrangements, revenue recognition is dependent upon the availability of vendor specific objective evidence (VSOE) of fair value for any undelivered element. We determine VSOE by reference to the range of comparable standalone sales or stated renewals. We review these standalone sales or renewals on at least an annual basis. If VSOE is established for all undelivered elements in the contract, revenue is recognized for delivered elements when all other revenue recognition criteria are met. Arrangements in which VSOE for all undelivered elements is not established, we recognize revenue under the combined services approach where revenue for software and software related elements is deferred until all software products have been delivered, all software related services have commenced, and undelivered services do not include significant production, customization or modification. This will also result in the deferral of costs for software and software implementation services until the undelivered element commence. Revenue would be recognized over the longest period that services would be provided, which is typically the PCS period. Cloud services and software as a service (SaaS) arrangements where customers have access to certain of our software within a cloud-based IT environment that we manage, host and support are offered to customers on a subscription basis. Revenue for the cloud services and SaaS offerings are generally recognized ratably over the contact term commencing with the date the services is made available to customers and all other revenue recognition criteria have been satisfied. For arrangements where cloud services and SaaS is provided on a per meter basis, revenue is recognized based on actual meters read during the period. Certain of our revenue arrangements include an extended or noncustomary warranty provision that covers all or a portion of a customer's replacement or repair costs beyond the standard or customary warranty period. Whether or not the extended warranty is separately priced in the arrangement, a portion of the arrangement's total consideration is allocated to this extended warranty deliverable. This revenue is deferred and recognized over the extended warranty coverage period. Extended or noncustomary warranties do not represent a significant portion of our revenue. We allocate consideration to each deliverable in an arrangement based on its relative selling price. We determine selling price using VSOE, if it exists, otherwise we use third-party evidence (TPE). We define VSOE as a median price of recent standalone transactions that are priced within a narrow range. TPE is determined based on the prices charged by our competitors for a similar deliverable when sold separately. If neither VSOE nor TPE of selling price exists for a unit of accounting, we use estimated selling price (ESP) to determine the price at which we would transact if the product or service were regularly sold by us on a standalone basis. Our determination of ESP involves a weighting of several factors based on the specific facts and circumstances of the arrangement. The factors considered include historical contractual sales, market conditions and entity specific factors, the cost to produce the deliverable, the anticipated margin on that deliverable, our ongoing pricing strategy and policies, and the characteristics of the varying markets in which the deliverable is sold. We analyze the selling prices used in our allocation of arrangement consideration on an annual basis. Selling prices are analyzed on a more frequent basis if a significant change in our business necessitates a more timely analysis or if we experience significant variances in our selling prices. Unearned revenue is recognized when a customer pays for products or services, but the criteria for revenue recognition have not been met as of the balance sheet date. Unearned revenue of $77.0 million and $114.3 million at December 31, 2017 and 2016 related primarily to professional services and software associated with our smart metering contracts, extended or noncustomary warranty, and prepaid post-contract support. Deferred costs are recognized for products or services for which ownership (typically defined as title and risk of loss) has transferred to the customer, but the criteria for revenue recognition have not been met as of the balance sheet date. Deferred costs were $14.4 million and $34.4 million at December 31, 2017 and 2016 and are recognized within other assets in the Consolidated Balance Sheets. Hardware and software post-sale maintenance support fees, such as post contract support or extended warranty are recognized ratably over the life of the related service contract. Shipping and handling costs and incidental expenses billed to customers are recognized as revenue, with the associated cost charged to cost of revenues. We recognize sales, use, and value added taxes billed to our customers on a net basis. Product and Software Development Costs Product and software development costs primarily include employee compensation and third party contracting fees. We do not capitalize product development costs, and we do not generally capitalize development expenses for computer software to be sold, leased, or otherwise marketed as the costs incurred are immaterial for the relatively short period of time between technological feasibility and the completion of software development. Stock-Based Compensation We grant various stock-based compensation awards to our officers, employees and Board of Directors with service, performance, and market vesting conditions, including stock options, restricted stock units, phantom stock units, and unrestricted stock units (awards). We measure and recognize compensation expense for all awards based on estimated fair values. For awards with only a service condition, we expense stock-based compensation using the straight-line method over the requisite service period for the entire award. For awards with service and performance conditions, if vesting is probable, we expense the stock-based compensation on a straight-line basis over the requisite service period for each separately vesting portion of the award. For awards with a market condition, we expense the fair value over the requisite service period. We have elected to account for forfeitures of any awards in stock-based compensation expense prospectively as they occur. The fair value of stock options is estimated at the date of grant using the Black-Scholes option-pricing model. Options to purchase our common stock are granted with an exercise price equal to the market close price of the stock on the date the Board of Directors approves the grant. Options generally become exercisable in three equal annual installments beginning one year from the date of grant and expire 10 years from the date of grant. Expected volatility is based on a combination of the historical volatility of our common stock and the implied volatility of our traded options for the related expected term. We believe this combined approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free interest rate is the rate available as of the award date on zero-coupon U.S. government issues with a term equal to the expected term of the award. The expected term is the weighted average expected term of an award based on the period of time between the date the award is granted and the estimated date the award will be fully exercised. Factors considered in estimating the expected term include historical experience of similar awards, contractual terms, vesting schedules, and expectations of future employee behavior. We have not paid dividends in the past and do not plan to pay dividends in the foreseeable future. The fair value of a restricted stock unit is the market close price of our common stock on the date of grant. Restricted stock units vest over a maximum period of three years. After vesting, the restricted stock units are converted into shares of our common stock on a one-for-one basis and issued to employees. Certain restricted stock units are issued under the Long-Term Performance Restricted Stock Unit Award Agreement and include performance and market conditions. The final number of shares issued will be based on the achievement of financial targets and our total shareholder return relative to the Russell 3000 Index during the performance periods. Due to the presence of a market condition, we utilize a Monte Carlo valuation model to determine the fair value of the awards at the grant date. Expected volatility is based on the historical volatility of our common stock for the related expected term. We believe this approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free interest rate is the rate available as of the award date on zero-coupon U.S. government issues with a term equal to the expected term of the award. The expected term is the term of an award based on the period of time between the date of the award and the date the award is expected to vest. The expected term assumption is based upon the plan's performance period as of the date of the award. We have not paid dividends in the past and do not plan to pay dividends in the foreseeable future. Phantom stock units are a form of share-based award that are indexed to our stock price and are settled in cash upon vesting and accounted for as liability-based awards. Fair value is remeasured at the end of each reporting period based on the market close price of our common stock. Phantom stock units vest over a maximum period of three years. Since phantom stock units are settled in cash, compensation expense recognized over the vesting period will vary based on changes in fair value. The fair value of unrestricted stock awards is the market close price of our common stock on the date of grant, and awards are fully vested. We expense stock-based compensation at the date of grant for unrestricted stock awards. Excess tax benefits and deficiencies resulting from employee share-based payment are recognized as income tax provision or benefit in the Consolidated Statement of Operations, and as an operating activity on the Consolidated Statement of Cash Flows. We also maintain an Employee Stock Purchase Plan (ESPP) for our employees. Under the terms of the ESPP, employees can deduct up to 10% of their regular cash compensation to purchase our common stock at a 5% discount from the fair market value of the stock at the end of each fiscal quarter, subject to other limitations under the plan. The sale of the stock to the employees occurs at the beginning of the subsequent quarter. The ESPP is not considered compensatory, and no compensation expense is recognized for sales of our common stock to employees. Income Taxes We account for income taxes using the asset and liability method of accounting. Deferred tax assets and liabilities are recognized based upon anticipated future tax consequences, in each of the jurisdictions that we operate, attributable to: (1) the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases; and (2) net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured annually using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The calculation of our tax liabilities involves applying complex tax regulations in different tax jurisdictions to our tax positions. The effect on deferred tax assets and liabilities of a change in tax legislation and/or rates is recognized in the period that includes the enactment date. A valuation allowance is recognized to reduce the carrying amounts of deferred tax assets if it is not more likely than not that such assets will be realized. We do not recognize tax liabilities on undistributed earnings of international subsidiaries that are permanently reinvested. Foreign Exchange Our consolidated financial statements are reported in U.S. dollars. Assets and liabilities of international subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at the exchange rates in effect on the balance sheet date, or the last business day of the period, if applicable. Revenues and expenses for each subsidiary are translated to U.S. dollars using a weighted average rate for the relevant reporting period. Translation adjustments resulting from this process are included, net of tax, in OCI. Gains and losses that arise from exchange rate fluctuations for monetary asset and liability balances that are not denominated in an entity’s functional currency are included within other income (expense), net in the Consolidated Statements of Operations. Currency gains and losses of intercompany balances deemed to be long-term in nature or designated as a hedge of the net investment in international subsidiaries are included, net of tax, in OCI. Foreign currency losses, net of hedging, of $5.1 million, $0.3 million, and $3.0 million were included in other expenses, net, for the years ended December 31, 2017, 2016 and 2015, respectively. Fair Value Measurements For assets and liabilities measured at fair value, the GAAP fair value hierarchy prioritizes the inputs used in different valuation methodologies, assigning the highest priority to unadjusted quoted prices for identical assets and liabilities in actively traded markets (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs consist of quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in non-active markets; and model-derived valuations in which significant inputs are corroborated by observable market data either directly or indirectly through correlation or other means. Inputs may include yield curves, volatility, credit risks, and default rates. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date for implementation of ASU 2014-09 by one year and is now effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted but not earlier than the original effective date. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08), which clarifies the implementation guidance of principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing (ASU 2016-10), which clarifies the identification of performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients (ASU 2016-12), to improve guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The effective date and transition requirements in ASU 2016-08, ASU 2016-10, and ASU 2016-12 are the same as the effective date and transition requirements of ASU 2015-14. The revenue guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We adopted this standard effective January 1, 2018 using the cumulative catch-up transition method. While we are finalizing the assessment of the impact of adoption, which includes additional disclosures, we currently anticipate the cumulative effect of adoption to amount to a $5 million to $15 million reduction in accumulated deficit as a result of adjustments to deferred revenue and deferred costs of revenue and the related income tax effects. The impact from adoption primarily relates to multiple element arrangements that contain software and software related elements. As we have not established VSOE of fair value for certain of our software and software related elements, we combined them as one unit of account and recognized the combined unit of account using the combined services approach. Under ASU 2014-09, these software and software related elements are generally determined to be distinct performance obligations. As such we are able to recognize revenue as we satisfy the performance obligations, either at a point in time, or over time. This impact, which may vary materially from the cumulative effect upon adoption, and the increased financial statement disclosures, are the most significant impacts the updated standard will have on our consolidated results of operations, financial position, cash flows, and related financial statement disclosures. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory (ASU 2015-11). The amendments in ASU 2015-11 apply to inventory measured using first-in, first-out (FIFO) or average cost and will require entities to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the normal course of business, minus the cost of completion, disposal and transportation. Replacement cost and net realizable value less a normal profit margin are no longer considered. We adopted this standard on January 1, 2017 and it did not materially impact our consolidated results of operations, financial position, cash flows, or related financial statement disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The standard requires modified retrospective adoption and will be effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact of adoption on our consolidated results of operations, financial position, cash flows, and related financial statement disclosures. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718) (ASU 2016-09), which simplifies several areas within Topic 718. These include income tax consequences, classification of awards as either equity or liabilities, forfeitures, and classification on the statement of cash flows. The amendments in this ASU becomes effective on a modified retrospective basis for accounting for income tax benefits recognized and forfeitures, retrospectively for accounting related to the presentation of employee taxes paid, prospectively for accounting related to recognition of excess tax benefits, and either prospectively or retrospectively for accounting related to presentation of excess employee tax benefits for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We adopted this standard effective January 1, 2017 using a modified retrospective transition method. We recognized a $14.6 million one-time reduction in accumulated deficit and increase in deferred tax assets related to cumulative unrecognized excess tax benefits. All future excess tax benefits and tax deficiencies will be recognized prospectively as income tax provision or benefit in the Consolidated Statement of Operations, and as an operating activity on the Consolidated Statement of Cash Flows. We also recognized a $0.2 million one-time increase in accumulated deficit and common stock related to our policy election to prospectively recognize forfeitures as they occur. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) (ASU 2016-18), which clarifies the presentation requirements of restricted cash within the statement of cash flows. The changes in restricted cash and restricted cash equivalents during the period should be included in the beginning and ending cash and cash equivalents balance reconciliation on the statement of cash flows. When cash, cash equivalents, restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, an entity shall calculate a total cash amount in a narrative or tabular format that agrees to the amount shown on the statement of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If adopted during an interim period, any adjustments are reflected as of the beginning of the fiscal year that includes the interim period. The amendments are applied using a retrospective transition method to each period presented. We adopted this standard effective January 1, 2017 as a result of the private offering of the Notes, for which $310.3 million was deposited into escrow and recognized as restricted cash until the closing of the acquisition of SSNI. Given the size of the increase and length of restriction relative to period end and historical activity, management believes early adopting enhanced the consistency and comparability of financial information included in the consolidated financial statements. The impact of adoption is shown in the reconciliation of cash, cash equivalents, and restricted cash above. The impact of retrospective application of ASU 2016-18 is immaterial, as restricted cash activity for the years ended December 31, 2016 and 2015 was not significant. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business (ASU 2017-01), which narrows the definition of a business and provides a framework that gives entities a basis for making reasonable judgments about whether a transaction involves an asset or a business. ASU 2017-01 states that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. If this initial test is not met, a set cannot be considered a business unless it includes an input and a substantive process that together significantly contribute to the ability to create output. ASU 2017-01 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. We adopted this standard on January 1, 2017, and it did not materially impact our consolidated results of operations, financial position, cash flows, and related financial statement disclosures. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (ASU 2017-04), which simplifies the measurement of goodwill impairment by removing step two of the goodwill impairment test that requires the determination of the fair value of individual assets and liabilities of a reporting unit. ASU 2017-04 requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying value exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. We adopted this standard on January 1, 2017, and it did not materially impact our consolidated results of operations, financial position, cash flows, and related financial statement disclosures. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), which provides additional guidance on the presentation of net benefit costs in the income statement. ASU 2017-07 requires an employer disaggregate the service cost component from the other components of net benefit cost and to disclose other components outside of a subtotal of income from operations. It also allows only the service cost component of net benefit costs to be eligible for capitalization. ASU 2017-07 is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We adopted this standard on January 1, 2018 retrospectively for the presentation of the service cost component of net periodic pension cost in the statement of operations and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost in assets. This will result in a reclassification of an immaterial amount of net periodic pension benefit costs from operating income to interest expense for all years presented on the Consolidated Statements of Operations. |
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Earnings Per Share [Text Block] | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (EPS):
Stock-based Awards For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase common stock at the average market price during the period. Related proceeds include the amount the employee must pay upon exercise and future compensation cost associated with the stock award. Approximately 0.2 million, 0.7 million, and 1.2 million stock-based awards were excluded from the calculation of diluted EPS for the years ended December 31, 2017, 2016, and 2015, respectively, because they were anti-dilutive. These stock-based awards could be dilutive in future periods. |
Certain Balance Sheet Components (Text Block) |
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Certain Balance Sheet Components [Text Block] | Certain Balance Sheet Components
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Intangible Assets (Text Block) |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets [Text Block] | Intangible Assets The gross carrying amount and accumulated amortization of our intangible assets, other than goodwill, are as follows:
A summary of the intangible asset account activity is as follows:
A summary of intangible asset amortization expense is as follows:
Estimated future annual amortization expense is as follows:
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Goodwill (Text Block) |
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Goodwill Excluding Non Goodwill Intangibles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Disclosure [Text Block] | Goodwill The following table reflects goodwill allocated to each reporting segment at December 31, 2017 and 2016:
During our 2017 annual goodwill impairment test, performed as of October 1, 2017, we performed a qualitative assessment and determined it is not more likely than not that the fair value of our reporting units is less than their carrying amounts. |
Debt (Text Block) |
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Debt [Text Block] | Debt The components of our borrowings are as follows:
Credit Facilities On June 23, 2015, we entered into an amended and restated credit agreement providing for committed credit facilities in the amount of $725 million U.S. dollars (the 2015 credit facility). The 2015 credit facility consists of a $225 million U.S. dollar term loan (the term loan) and a multicurrency revolving line of credit (the revolver) with a principal amount of up to $500 million. The revolver also contains a $250 million standby letter of credit sub-facility and a $50 million swingline sub-facility (available for immediate cash needs at a higher interest rate). Both the term loan and the revolver mature on June 23, 2020, and amounts borrowed under the revolver are classified as long-term and, during the credit facility term, may be repaid and reborrowed until the revolver's maturity, at which time the revolver will terminate, and all outstanding loans, together with all accrued and unpaid interest, must be repaid. Amounts not borrowed under the revolver are subject to a commitment fee, which is paid in arrears on the last day of each fiscal quarter, ranging from 0.18% to 0.30% per annum depending on our total leverage ratio as of the most recently ended fiscal quarter. Amounts repaid on the term loan may not be reborrowed. The 2015 credit facility permits us and certain of our foreign subsidiaries to borrow in U.S. dollars, euros, British pounds, or, with lender approval, other currencies readily convertible into U.S. dollars. All obligations under the 2015 credit facility are guaranteed by Itron, Inc. and material U.S. domestic subsidiaries and are secured by a pledge of substantially all of the assets of Itron, Inc. and material U.S. domestic subsidiaries, including a pledge of 100% of the capital stock of material U.S. domestic subsidiaries and up to 66% of the voting stock (100% of the non-voting stock) of their first-tier foreign subsidiaries. In addition, the obligations of any foreign subsidiary who is a foreign borrower, as defined by the 2015 credit facility, are guaranteed by the foreign subsidiary and by its direct and indirect foreign parents. The 2015 credit facility includes debt covenants, which contain certain financial thresholds and place certain restrictions on the incurrence of debt, investments, and the issuance of dividends. We were in compliance with the debt covenants under the 2015 credit facility at December 31, 2017. On June 13, 2016, we entered into an amendment to the 2015 credit facility, which reduced our $300 million standby letter of credit sub-facility to $250 million. Scheduled principal repayments for the term loan are due quarterly in the amount of $4.2 million through June 2018, $5.6 million from September 2018 through March 2020, and the remainder due at maturity on June 23, 2020. The term loan may be repaid early in whole or in part, subject to certain minimum thresholds, without penalty. Required minimum principal payments on our outstanding credit facilities are as follows:
Under the 2015 credit facility, we elect applicable market interest rates for both the term loan and any outstanding revolving loans. We also pay an applicable margin, which is based on our total leverage ratio (as defined in the credit agreement). The applicable rates per annum may be based on either: (1) the LIBOR rate or EURIBOR rate (floor of 0%), plus an applicable margin, or (2) the Alternate Base Rate, plus an applicable margin. The Alternate Base Rate election is equal to the greatest of three rates: (i) the prime rate, (ii) the Federal Reserve effective rate plus 1/2 of 1%, or (iii) one month LIBOR plus 1%. At December 31, 2017 and 2016, the interest rates for both the term loan and the USD revolver was 2.82% and 2.02%, which includes the LIBOR rate plus a margin of 1.25% and 1.25%, respectively. At December 31, 2017 and 2016, the interest rates for the EUR revolver was 1.25% and 1.25%, which includes the EURIBOR floor rate plus a margin of 1.25% and 1.25%, respectively. Total credit facility repayments were as follows:
At December 31, 2017, $125.4 million was outstanding under the 2015 credit facility revolver, and $31.9 million was utilized by outstanding standby letters of credit, resulting in $342.7 million available for additional borrowings or standby letters of credit. At December 31, 2017, $218.1 million was available for additional standby letters of credit under the letter of credit sub-facility and no amounts were outstanding under the swingline sub-facility. Debt Refinancing On January 5, 2018, we entered into a credit agreement (the 2018 credit facility) which amended and restated the 2015 credit facility in its entirety. The 2018 credit facility provides for a $650 million term loan and a $500 million revolving credit facility, including a $300 million letter of credit sub-facility and $50 million swingline loan sub-facility. Both the term loan and the revolver mature on January 5, 2023, and amounts borrowed under the revolver may be repaid and reborrowed until the revolver's maturity, at which time the revolver will terminate, and all outstanding loans, together with all accrued and unpaid interest, must be repaid. For additional details see Note 19: Subsequent Events. Senior Notes On December 22, 2017, we issued $300 million aggregate principal amount of 5.00% senior notes due 2026 (Notes). The December Notes were issued pursuant to an indenture, dated as of December 22, 2017 (Indenture), among Itron, the guarantors from time to time party thereto and U.S. Bank National Association, as trustee. Interest on the Notes will accrue at 5% per annum and will be payable semi-annually in arrears on January 15 and July 15 commencing on July 15, 2018. The Notes will be jointly and severally guaranteed by each of our subsidiaries that guarantees obligations under our senior credit facilities. The Notes were not guaranteed until the release of the escrow, but once released, the Notes were fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our subsidiaries that guarantee the senior credit facilities. The Notes will mature on January 15, 2026. However, prior to January 15, 2021, we may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes, together with accrued and unpaid interest, if any, plus a “make- whole” premium. On or after January 15, 2021, we may redeem some or all of the Notes at any time at declining redemption prices equal to 102.50% beginning on January 15, 2021, 101.25% beginning on January 15, 2022 and 100.00% beginning on January 15, 2023 and thereafter, plus, in each case, accrued and unpaid interest, if any, to the applicable redemption date. In addition, before January 15, 2021, and subject to certain conditions, we may redeem up to 35% of the aggregate principal amount of Notes with the net proceeds of certain equity offerings at 105.00% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of redemption; provided that (i) at least 65% of the aggregate principal amount of Notes remains outstanding after such redemption and (ii) the redemption occurs within 60 days of the closing of any such equity offering. |
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General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments [Text Block] | Derivative Financial Instruments As part of our risk management strategy, we use derivative instruments to hedge certain foreign currency and interest rate exposures. Refer to Note 1, Note 14, and Note 15 for additional disclosures on our derivative instruments. The fair values of our derivative instruments are determined using the income approach and significant other observable inputs (also known as “Level 2”). We have used observable market inputs based on the type of derivative and the nature of the underlying instrument. The key inputs include interest rate yield curves (swap rates and futures) and foreign exchange spot and forward rates, all of which are available in an active market. We have utilized the mid-market pricing convention for these inputs. We include, as a discount to the derivative asset, the effect of our counterparty credit risk based on current published credit default swap rates when the net fair value of our derivative instruments is in a net asset position. We consider our own nonperformance risk when the net fair value of our derivative instruments is in a net liability position by discounting our derivative liabilities to reflect the potential credit risk to our counterparty through applying a current market indicative credit spread to all cash flows. The fair values of our derivative instruments are as follows:
OCI during the reporting period for our derivative and nonderivative instruments designated as hedging instruments, net of tax, was as follows:
Reclassification of amounts related to hedging instruments are included in interest expense in the Consolidated Statements of Operations. Included in the net unrealized loss on hedging instruments at December 31, 2017 and 2016 is a loss of $14.4 million, net of tax, related to our nonderivative net investment hedge, which terminated in 2011. This loss on our net investment hedge will remain in AOCI until such time when earnings are impacted by a sale or liquidation of the associated foreign operation. A summary of the potential effect of netting arrangements on our financial position related to the offsetting of our recognized derivative assets and liabilities under master netting arrangements or similar agreements is as follows:
Our derivative assets and liabilities subject to netting arrangements consist of foreign exchange forward and interest rate contracts with three counterparties at December 31, 2017 and three counterparties at December 31, 2016. No derivative asset or liability balance with any of our counterparties was individually significant at December 31, 2017 or 2016. Our derivative contracts with each of these counterparties exist under agreements that provide for the net settlement of all contracts through a single payment in a single currency in the event of default. We have no pledges of cash collateral against our obligations nor have we received pledges of cash collateral from our counterparties under the associated derivative contracts. Cash Flow Hedges As a result of our floating rate debt, we are exposed to variability in our cash flows from changes in the applicable interest rate index. We enter into swaps to achieve a fixed rate of interest on the hedged portion of debt in order to decrease this variability in our cash flows. The objective of these swaps is to reduce the variability of cash flows from increases in the LIBOR-based borrowing rates on our floating rate credit facility. The swaps do not protect us from changes to the applicable margin under our credit facility. In May 2012, we entered into six interest rate swaps, which were effective July 31, 2013 and expired on August 8, 2016, to convert $200 million of our LIBOR based debt from a floating LIBOR interest rate to a fixed interest rate of 1.00% (excluding the applicable margin on the debt). The cash flow hedges were expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk through the term of the hedge. Consequently, effective changes in the fair value of the interest rate swaps were recognized as a component of OCI and recognized in earnings when the hedged item affected earnings. The amounts paid on the hedges were recognized as adjustments to interest expense. In October 2015, we entered into an interest rate swap, which is effective from August 31, 2016 to June 23, 2020, and converts $214 million of our LIBOR based debt from a floating LIBOR interest rate to a fixed interest rate of 1.42% (excluding the applicable margin on the debt). The notional balance will amortize to maturity at the same rate as required minimum payments on our term loan. The cash flow hedge is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk through the term of the hedge. Consequently, effective changes in the fair value of the interest rate swap is recognized as a component of OCI and will be recognized in earnings when the hedged item affects earnings. The amounts paid or received on the hedge are recognized as an adjustment to interest expense. The amount of net losses expected to be reclassified into earnings in the next 12 months is $0.7 million. At December 31, 2017, our LIBOR-based debt balance was $254.1 million. In November 2015, we entered into three interest rate cap contracts with a total notional amount of $100 million at a cost of $1.7 million. The interest rate cap contracts expire on June 23, 2020 and were entered into in order to limit our interest rate exposure on $100 million of our variable LIBOR based debt up to 2.00%. In the event LIBOR is higher than 2.00%, we will pay interest at the capped rate of 2.00% with respect to the $100 million notional amount of such agreements. The interest rate cap contracts do not include the effect of the applicable margin. As of December 31, 2016, due to the accelerated revolver payments from surplus cash, we have elected to de-designate two of the interest rate cap contracts as cash flow hedges and discontinue the use of cash flow hedge accounting. The amounts recognized in AOCI from de-designated interest rate cap contracts will continue to be reported in AOCI unless it is not probable that the forecasted transactions will occur. As a result of the discontinuance of cash flow hedge accounting, all subsequent changes in fair value of the de-designated derivative instruments are recognized within interest expense instead of OCI. The amount of net losses expected to be reclassified into earnings for all interest rate cap contracts in the next 12 months is $0.3 million. The before-tax effects of our derivative instruments designated as hedges on the Consolidated Balance Sheets and the Consolidated Statements of Operations were as follows:
Derivatives Not Designated as Hedging Relationships We are also exposed to foreign exchange risk when we enter into non-functional currency transactions, both intercompany and third-party. At each period-end, non-functional currency monetary assets and liabilities are revalued with the change recognized to other income and expense. We enter into monthly foreign exchange forward contracts, which are not designated for hedge accounting, with the intent to reduce earnings volatility associated with currency exposures. As of December 31, 2017, a total of 54 contracts were offsetting our exposures from the euro, Canadian dollar, Indonesian Rupiah, Chinese Yuan, Saudi Riyal and various other currencies, with notional amounts ranging from $158,000 to $39.5 million. The effect of our derivative instruments not designated as hedges on the Consolidated Statements of Operations was as follows:
We will continue to monitor and assess our interest rate and foreign exchange risk and may institute additional derivative instruments to manage such risk in the future. |
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans [Text Block] | Defined Benefit Pension Plans We sponsor both funded and unfunded defined benefit pension plans offering death and disability, retirement, and special termination benefits for our international employees, primarily in Germany, France, Italy, Indonesia, Brazil, and Spain. The defined benefit obligation is calculated annually by using the projected unit credit method. The measurement date for the pension plans was December 31, 2017. The following tables set forth the components of the changes in benefit obligations and fair value of plan assets:
Amounts recognized on the Consolidated Balance Sheets consist of:
Amounts in AOCI (pre-tax) that have not yet been recognized as components of net periodic benefit costs consist of:
Amounts recognized in OCI (pre-tax) are as follows:
If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the employees' average future service period. The estimated net actuarial loss and prior service cost that will be amortized from AOCI into net periodic benefit cost during 2018 is $1.6 million. Net periodic pension benefit costs for our plans include the following components:
The significant actuarial weighted average assumptions used in determining the benefit obligations and net periodic benefit cost for our benefit plans are as follows:
We determine a discount rate for our plans based on the estimated duration of each plan’s liabilities. For our euro denominated defined benefit pension plans, which represent 93% of our benefit obligation, we use two discount rates with consideration of the duration of the plans, using a hypothetical yield curve developed from euro-denominated AA-rated corporate bond issues. These bond issues are partially weighted for market value, with minimum amounts outstanding of €500 million for bonds with less than 10 years to maturity and €50 million for bonds with 10 or more years to maturity, and excluding the highest and lowest yielding 10% of bonds within each maturity group. The discount rates used, depending on the duration of the plans, were 1.00% and 1.75%. Our expected rate of return on plan assets is derived from a study of actual historic returns achieved and anticipated future long-term performance of plan assets, specific to plan investment asset category. While the study primarily gives consideration to recent insurers’ performance and historical returns, the assumption represents a long-term prospective return. The total accumulated benefit obligation for our defined benefit pension plans was $101.4 million and $87.2 million at December 31, 2017 and 2016, respectively. The total obligations and fair value of plan assets for plans with projected benefit obligations and accumulated benefit obligations exceeding the fair value of plan assets are as follows:
Our asset investment strategy focuses on maintaining a portfolio using primarily insurance funds, which are accounted for as investments and measured at fair value, in order to achieve our long-term investment objectives on a risk adjusted basis. Our general funding policy for these qualified pension plans is to contribute amounts sufficient to satisfy regulatory funding standards of the respective countries for each plan. The fair values of our plan investments by asset category are as follows:
The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2017 and 2016.
As the plan assets and contributions are not significant to our total company assets, no further disclosures are considered material. Annual benefit payments for the next 10 years, including amounts to be paid from our assets for unfunded plans and reflecting expected future service, as appropriate, are expected to be paid as follows:
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Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation [Text Block] | Stock-Based Compensation We maintain the Second Amended and Restated 2010 Stock Incentive Plan (Stock Incentive Plan), which allows us to grant stock-based compensation awards, including stock options, restricted stock units, phantom stock, and unrestricted stock units. Under the Stock Incentive Plan, we have 10,473,956 shares of common stock reserved and authorized for issuance subject to stock splits, dividends, and other similar events. At December 31, 2017, 4,656,327 shares were available for grant under the Stock Incentive Plan. We issue new shares of common stock upon the exercise of stock options or when vesting conditions on restricted stock units are fully satisfied. These shares are subject to a fungible share provision such that the authorized share reserve is reduced by (i) one share for every one share subject to a stock option or share appreciation right granted under the Plan and (ii) 1.7 shares for every one share of common stock that was subject to an award other than an option or share appreciation right. We also periodically award phantom stock units, which are settled in cash upon vesting and accounted for as liability-based awards with no impact to the shares available for grant. In addition, we maintain the ESPP, for which approximately 340,000 shares of common stock were available for future issuance at December 31, 2017. Unrestricted stock and ESPP activity for the years ended December 31, 2017, 2016, and 2015 was not significant. Stock-Based Compensation Expense Total stock-based compensation expense and the related tax benefit were as follows:
Stock Options A summary of our stock option activity is as follows:
At December 31, 2017, total unrecognized stock-based compensation expense related to nonvested stock options was $2.9 million, which is expected to be recognized over a weighted average period of approximately 1.5 years. The weighted-average assumptions used to estimate the fair value of stock options granted and the resulting weighted average fair value are as follows:
Restricted Stock Units The following table summarizes restricted stock unit activity:
At December 31, 2017, total unrecognized compensation expense on restricted stock units was $21.7 million, which is expected to be recognized over a weighted average period of approximately 1.6 years. 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:
Phantom Stock Units The following table summarizes phantom stock unit activity:
At December 31, 2017, total unrecognized compensation expense on phantom stock units was $2.8 million, which is expected to be recognized over a weighted average period of approximately 1.7 years. As of December 31, 2017 and 2016, we have recognized a phantom stock liability of $1.7 million and $1.0 million, respectively, within wages and benefits payable in the Consolidated Balance Sheets. |
Defined Contribution Bonus and Profit Sharing Plans (Text Block) |
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Compensation and Employee Benefit Plans [Text Block] | Defined Contribution, Bonus, and Profit Sharing Plans Defined Contribution Plans In the United States, United Kingdom, and certain other countries, we make contributions to defined contribution plans. For our U.S. employee savings plan, which represents a majority of our contribution expense, we provide a 75% match on the first 6% of the employee salary deferral, subject to statutory limitations. For our international defined contribution plans, we provide various levels of contributions, based on salary, subject to stipulated or statutory limitations. The expense for our defined contribution plans was as follows:
Bonus and Profit Sharing Plans and Awards We have employee bonus and profit sharing plans in which many of our employees participate, as well as an award program, which allows for recognition of individual employees' achievements. The bonus and profit sharing plans provide award amounts for the achievement of performance and financial targets. As the bonuses are being earned during the year, we estimate a compensation accrual each quarter based on the progress towards achieving the goals, the estimated financial forecast for the year, and the probability of achieving results. Bonus and profit sharing plans and award expense was as follows:
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Income Taxes (Text Block) |
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Income Taxes [Text Block] | Income Taxes On December 22, 2017, H.R.1, commonly referred to as the Tax Cuts and Jobs Act (Tax Act) was enacted into law in the United States. This new tax legislation represents one of the most significant overhauls to the U.S. federal tax code since 1986. The Tax Act lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. It also includes numerous provisions that accelerate tax recovery for fixed assets and impacts business-related exclusions, deductions, and credits. On December 22, 2017, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 118 (SAB 118) which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but is able to determine a reasonable estimate, it must recognize a provisional estimate in the financial statements. Pursuant to SAB 118, we have recognized provisional estimates for the impact of the Tax Act in 2017. This includes a one-time tax charge of $30.4 million to remeasure our deferred tax assets as a result of these legislative changes. We do not anticipate that the one time transition tax on the deemed repatriation of deferred foreign income will be significant, and have provisionally included no charge in 2017 for this tax. We will update our provisional estimate amounts throughout the measurement period as additional guidance is released. On December 30, 2017, France enacted “The Finance Law for 2018” that reduces the French corporate tax rate to 25% by 2022. This lower rate resulted in an approximately $10 million reduction in our deferred tax assets, offset fully by a change in the valuation allowance. The following table summarizes the provision (benefit) for U.S. federal, state, and foreign taxes on income from continuing operations:
The change in the valuation allowance does not include the impacts of currency translation adjustments or significant intercompany transactions. Our tax provision as a percentage of income before tax was 55.2%, 58.6%, and 59.6% for 2017, 2016, and 2015, respectively. Our actual tax rate differed from the 35% U.S. federal statutory tax rate due to various items. A reconciliation of income taxes at the U.S. federal statutory rate of 35% to the consolidated actual tax rate is as follows:
Change in tax rates line above includes the deferred tax impact of material rate changes in the U.S., France, and Luxembourg, among others. Deferred tax assets and liabilities consist of the following:
Changes in the valuation allowance for deferred tax assets are summarized as follows:
We recognize valuation allowances to reduce deferred tax assets to the extent we believe it is more likely than not that a portion of such assets will not be realized. In making such determinations, we consider all available favorable and unfavorable evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and our ability to carry back losses to prior years. We are required to make assumptions and judgments about potential outcomes that lie outside management’s control. Our most sensitive and critical factors are the projection, source, and character of future taxable income. Although realization is not assured, management believes it is more likely than not that deferred tax assets, net of valuation allowance, will be realized. The amount of deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward periods are reduced or current tax planning strategies are not implemented. We do not provide U.S. deferred taxes on temporary differences related to our foreign investments that are considered permanent in duration. These temporary differences consist primarily of undistributed foreign earnings of $5.2 million and $4.9 million at December 31, 2017 and 2016, respectively. Foreign taxes have been provided on these undistributed foreign earnings. We have not computed the unrecognized deferred income tax liability on these temporary differences. There are many assumptions that must be considered to calculate the liability, thereby making it impractical to compute at this time. We are subject to income tax in the United States and numerous foreign jurisdictions. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve positions and changes to reserves that are considered appropriate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
If certain unrecognized tax benefits are recognized they would create additional deferred tax assets. These assets would require a full valuation in certain locations based upon present circumstances. We classify interest expense and penalties related to unrecognized tax benefits and interest income on tax overpayments as components of income tax expense. The net interest and penalties expense recognized is as follows:
At December 31, 2017, we are under examination by certain tax authorities for the 2010 to 2015 tax years. The material jurisdictions where we are subject to examination for the 2010 to 2015 tax years include, among others, the U.S., France, Germany, Italy, Brazil and the United Kingdom. During December 2017 we settled our tax audit with the Internal Revenue Service related to research and development tax credits for the 2011-2013 years. We believe we have appropriately accrued for the expected outcome of all tax matters and do not currently anticipate that the ultimate resolution of these examinations will have a material adverse effect on our financial condition, future results of operations, or cash flows. Based upon the timing and outcome of examinations, litigation, the impact of legislative, regulatory, and judicial developments, and the impact of these items on the statute of limitations, it is reasonably possible that the related unrecognized tax benefits could change from those recognized within the next twelve months. However, at this time, an estimate of the range of reasonably possible adjustments to the balance of unrecognized tax benefits cannot be made. We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We are subject to income tax examination by tax authorities in our major tax jurisdictions as follows:
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Commitments and Contingencies (Text Block) |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Text Block] | Commitments and Contingencies Commitments Operating lease rental expense for factories, service and distribution locations, offices, and equipment was as follows:
Future minimum lease payments at December 31, 2017, under noncancelable operating leases with initial or remaining terms in excess of one year are as follows:
Rent expense is recognized straight-line over the lease term, including renewal periods if reasonably assured. We lease most of our sales and distribution locations and administrative offices. Our leases typically contain renewal options similar to the original terms with lease payments that increase based on an index. Guarantees and Indemnifications We are often required to obtain standby letters of credit (LOCs) or bonds in support of our obligations for customer contracts. These standby LOCs or bonds typically provide a guarantee to the customer for future performance, which usually covers the installation phase of a contract and may, on occasion, cover the operations and maintenance phase of outsourcing contracts. Our available lines of credit, outstanding standby LOCs, and bonds are as follows:
In the event any such standby LOC or bond is called, we would be obligated to reimburse the issuer of the standby LOC or bond; however, we do not believe that any outstanding LOC or bond will be called. We generally provide an indemnification related to the infringement of any patent, copyright, trademark, or other intellectual property right on software or equipment within our sales contracts, which indemnifies the customer from and pays the resulting costs, damages, and attorney’s fees awarded against a customer with respect to such a claim provided that (a) the customer promptly notifies us in writing of the claim and (b) we have the sole control of the defense and all related settlement negotiations. We may also provide an indemnification to our customers for third party claims resulting from damages caused by the negligence or willful misconduct of our employees/agents in connection with the performance of certain contracts. The terms of our indemnifications generally do not limit the maximum potential payments. It is not possible to predict the maximum potential amount of future payments under these or similar agreements. Legal Matters We are subject to various legal proceedings and claims of which the outcomes are subject to significant uncertainty. Our policy is to assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. A determination of the amount of the liability required, if any, for these contingencies is made after an analysis of each known issue. A liability is recognized and charged to operating expense when we determine that a loss is probable and the amount can be reasonably estimated. Additionally, we disclose contingencies for which a material loss is reasonably possible, but not probable. Warranty A summary of the warranty accrual account activity is as follows:
Total warranty expense is classified within cost of revenues and consists of new product warranties issued, costs related to extended warranty contracts, insurance and supplier recoveries, and other changes and adjustments to warranties. Warranty expense was as follows:
Warranty expense during the year ended December 31, 2015 included a $29.4 million special warranty provision. During the second quarter of 2015, we concluded it was necessary to issue a product replacement notification to customers of our Water segment who had purchased certain communication modules manufactured between July 2013 and December 2014. We determined that a component of the modules was failing prematurely. Warranty expense decreased during the year ended December 31, 2017 compared with the same period in 2016 primarily due to an insurance recovery of $8.0 million associated with our 2015 product replacement provision. Extended Warranty A summary of changes to unearned revenue for extended warranty contracts is as follows:
Health Benefits We are self insured for a substantial portion of the cost of our U.S. employee group health insurance. We purchase insurance from a third party, which provides individual and aggregate stop loss protection for these costs. Each reporting period, we expense the costs of our health insurance plan including paid claims, the change in the estimate of incurred but not reported (IBNR) claims, taxes, and administrative fees (collectively, the plan costs). Plan costs were as follows:
IBNR accrual, which is included in wages and benefits payable, was as follows:
Our IBNR accrual and expenses may fluctuate due to the number of plan participants, claims activity, and deductible limits. For our employees located outside of the United States, health benefits are provided primarily through governmental social plans, which are funded through employee and employer tax withholdings. |
Restructuring (Text Block) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | Restructuring 2016 Projects On September 1, 2016, we announced projects (2016 Projects) to restructure various company activities in order to improve operational efficiencies, reduce expenses and improve competiveness. We expect to close or consolidate several facilities and reduce our global workforce as a result of the restructuring. The 2016 Projects began during the three months ended September 30, 2016, and we expect to substantially complete the 2016 Projects by the fourth quarter of 2018. Many of the affected employees are represented by unions or works councils, which require consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of charges, total expected charges, cost recognized, and planned savings in certain jurisdictions. The total expected restructuring costs, costs recognized in prior periods, costs recognized during the year ended December 31, 2017, and the remaining expected costs as of December 31, 2017 related to the 2016 Projects are as follows:
2014 Projects In November 2014, our management approved restructuring projects (2014 Projects) to restructure our Electricity business and related general and administrative activities, along with certain Gas and Water activities, to improve operational efficiencies and reduce expenses. We began implementing these projects in the fourth quarter of 2014, and substantially completed them in the third quarter of 2016. Project activities were completed during the fourth quarter of 2017, and no further costs are expected to be recognized. The 2014 Projects resulted in $48.5 million of restructuring expense, which was recognized from the fourth quarter of 2014 through the third quarter of 2016. The following table summarizes the activity within the restructuring related balance sheet accounts for the 2016 and 2014 Projects during the year ended December 31, 2017:
Asset impairments are determined at the asset group level. Revenues and net operating income from the activities we have exited or will exit under the restructuring projects are not material to our operating segments or consolidated results. Other restructuring costs include expenses for employee relocation, professional fees associated with employee severance, and costs to exit the facilities once the operations in those facilities have ceased. Costs associated with restructuring activities are generally presented in the Consolidated Statements of Operations as restructuring, except for certain costs associated with inventory write-downs, which are classified within cost of revenues, and accelerated depreciation expense, which is recognized according to the use of the asset. The current restructuring liabilities were $32.5 million and $26.2 million as of December 31, 2017 and 2016, respectively. The current restructuring liabilities are classified within other current liabilities on the Consolidated Balance Sheets. The long-term restructuring liabilities balances were $7.6 million and $21.8 million as of December 31, 2017 and 2016, respectively. The long-term restructuring liabilities are classified within other long-term obligations on the Consolidated Balance Sheets, and include facility exit costs and severance accruals. |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | Shareholders’ Equity Preferred Stock We have authorized the issuance of 10 million shares of preferred stock with no par value. In the event of a liquidation, dissolution, or winding up of the affairs of the corporation, whether voluntary or involuntary, the holders of any outstanding preferred stock will be entitled to be paid a preferential amount per share to be determined by our Board of Directors prior to any payment to holders of common stock. There was no preferred stock issued or outstanding at December 31, 2017, 2016, and 2015. Stock Repurchase Plan On February 23, 2017, our Board of Directors authorized the Company to repurchase up to $50 million of our common stock over a 12-month period, beginning February 23, 2017. There were no repurchases of common stock made prior to plan termination on February 23, 2018. Other Comprehensive Income (Loss) The changes in the components of AOCI, net of tax, were as follows:
The before-tax, income tax (provision) benefit, and net-of-tax amounts related to each component of OCI during the reporting periods were as follows:
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Fair Values of Financial Instruments (Text Block) |
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Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments [Text Block] | Fair Values of Financial Instruments The fair values at December 31, 2017 and 2016 do not reflect subsequent changes in the economy, interest rates, tax rates, and other variables that may affect the determination of fair value.
The following methods and assumptions were used in estimating fair values: Cash, cash equivalents, and restricted cash: Due to the liquid nature of these instruments, the carrying value approximates fair value (Level 1). Credit Facility - term loan and multicurrency revolving line of credit: The term loan and revolver are not traded publicly. The fair values, which are determined based upon a hypothetical market participant, are calculated using a discounted cash flow model with Level 2 inputs, including estimates of incremental borrowing rates for debt with similar terms, maturities, and credit profiles. Refer to Note 6 for a further discussion of our debt. Derivatives: See Note 7 for a description of our methods and assumptions in determining the fair value of our derivatives, which were determined using Level 2 inputs. Senior Notes: The Notes are not registered securities nor listed on any securities exchange, but may be actively traded by qualified institutional buyers. The fair value is estimated using Level 1 inputs, as it is based on quoted prices for these instruments in active markets. |
Segment Information (Text Block) |
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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 our global water, and heat and allocation 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: revenues, gross profit (margin), and operating income (margin). 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 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
Revenues, gross profit, and operating income associated with our segments were as follows:
During the year ended December 31, 2015, we concluded it was necessary to issue a product replacement notification to customers of our Water segment who had purchased certain communication modules manufactured between July 2013 and December 2014. We determined that a component of the modules was failing prematurely. This resulted in a decrease to gross profit of $29.4 million for the year ended December 31, 2015. After adjusting for the tax impact, this charge resulted in a decrease to basic and diluted EPS of $0.47 for the year ended December 31, 2015. During the year ended December 31, 2017, we recognized an insurance recovery associated with warranty expenses previously recognized as a result of our 2015 product replacement notification discussed above. As a result, gross profit increased $8.0 million for the year ended December 31, 2017. After adjusting for the tax impact, the recovery resulted in an increase of $0.13 and $0.12 for basic and diluted EPS, respectively, for the year ended December 31, 2017. For the year ended December 31, 2017, one customer represented 19% and two additional customers each represented 11% of the Electricity operating segment revenues. There was no single customer that represented more than 10% of total Company or the Gas or Water operating segment revenues. For the years ended December 31, 2016, two customers represented 12% and 10% of total Electricity operating segment revenues, respectively. There was no customer that represented more than 10% of total Company or the Gas or Water operating segment revenues. For the years ended December 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:
Revenues are allocated to countries and regions based on the location of the selling entity. Property, plant, and equipment, net, by geographic area were as follows:
Depreciation and amortization expense associated with our segments was as follows:
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Business Combinations |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | Business Combinations On June 1, 2017, we completed the acquisition of Comverge by purchasing the stock of its parent, Peak Holding Corp. (Comverge). This was financed through borrowings on our multicurrency revolving line of credit and cash on hand. Comverge is a leading provider of integrated demand response and customer engagement solutions that enable electric utilities to ensure grid reliability, lower energy costs for consumers, meet regulatory demands, and enhance the customer experience. Comverge's technologies are complementary to our Electricity segment's growing software and services offerings, and will help optimize grid performance and reliability. The purchase price of Comverge was $100.0 million in cash, net of $18.2 million of cash and cash equivalents acquired. We allocated the purchase price to the assets acquired and liabilities assumed based on fair value assessments. The fair values of these assets and liabilities are considered final. The following reflects our final allocation of purchase price as of June 1, 2017:
The fair values for the identified core-developed technology, trademarks, and IPR&D intangible assets were estimated using the income approach. Under the income approach, the fair value reflects the present value of the projected cash flows that are expected to be generated. Core-developed technology represents the fair values of Comverge products that have reached technological feasibility and were part of Comverge's product offerings at the date of the acquisition. Customer contracts and relationships represent the fair value of the relationships developed with its customers, including the backlog, and these were valued utilizing the replacement cost method, which measures the value of an asset based on the cost to replace the existing asset. The core-developed technology, trademarks, and IPR&D intangible assets valued using the income approach will be amortized using the estimated discounted cash flows assumed in the valuation models. Customer contracts and relationships will be amortized using the straight-line method. IPR&D assets acquired represented the fair value of Comverge research and development projects that had not yet reached technological feasibility at the time of acquisition. These projects were completed in the fourth quarter of 2017 and were reclassified to core-developed technology. Incremental costs to be incurred for these projects were not significant and were recognized as product development expense as incurred within the Consolidated Statements of Operations. Goodwill of $59.7 million arising from the acquisition consists largely of the synergies expected from combining the operations of Itron and Comverge, as well as certain intangible assets that do not qualify for separate recognition. All of the goodwill balance was assigned to the Electricity reporting unit and segment. We will not be able to deduct any of the goodwill balance for income tax purposes. The following table presents the revenues and net income (loss) from Comverge's operations that are included in our Consolidated Statements of Operations:
The following supplemental pro forma results are based on the individual historical results of Itron and Comverge, with adjustments to give effect to the combined operations as if the acquisition had been consummated on January 1, 2016.
The significant nonrecurring adjustments reflected in the proforma schedule above are not considered material and include the following:
The supplemental pro forma results are intended for information purposes only and do not purport to represent what the combined companies' results of operations would actually have been had the transaction in fact occurred at an earlier date or project the results for any future date or period. |
Quarterly Results (Unaudited) (Text Block) |
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Quarterly Financial Information [Text Block] | Quarterly Results (Unaudited)
During the fourth quarter of 2017, the Tax Act was enacted into law in the United States. We recognized provisional estimates for the impact of the Tax Act of $30.4 million to remeasure our deferred tax assets as a result of these legislative changes. This resulted in a decrease of $0.79 and $0.77 to basic and diluted earnings per share, respectively, for the three months ended December 31, 2017. During the second quarter of 2017, we recognized an insurance recovery in our Water segment associated with warranty costs recognized as a result of our 2015 product replacement notification to customers who had purchased certain communication modules. As a result, gross profit increased $8.0 million for the three months ended June 30, 2017. After adjusting for the tax impact, the recovery resulted in an increase of $0.13 and $0.12 to basic and diluted earnings per share, respectively, for the three months ended June 30, 2017. During the third quarter of 2016, we announced the 2016 Projects to restructure various company activities in order to improve operational efficiencies, reduce expenses and improve competiveness. As a result, we recognized $40.0 million and $7.8 million in restructuring costs during the third and fourth quarters of 2016, respectively, related to the 2016 Projects. |
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Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Business Acquisition On January 5, 2018, we completed our acquisition of SSNI by purchasing all outstanding shares for $16.25 per share, resulting in a total purchase price, net of cash, of approximately $810 million. All other business combination disclosures are not available due to the proximity of the acquisition to the issuance of these financial statements. During 2017, we incurred approximately $7 million of acquisition and integration related expenses associated with the SSNI acquisition. SSNI provided Internet of Important ThingsTM connectivity platforms and solutions to utilities and cities. The acquisition continues our focus on expanding management services and SaaS solutions, which allows us to provide more value to our customers by optimizing devices, network technologies, outcomes and analytics. Debt Refinancing On January 5, 2018, we entered into the 2018 credit facility, which amended and restated the 2015 credit facility. The 2018 credit facility consists of a $650 million U.S. dollar term loan (the term loan) and a multicurrency revolving line of credit (the revolver) with a principal amount of up to $500 million. The revolver also contains a $300 million standby letter of credit sub-facility and a $50 million swingline sub-facility (available for immediate cash needs at a higher interest rate). Both the term loan and the revolver mature on January 5, 2023, and amounts borrowed under the revolver may be repaid and reborrowed until the revolver's maturity, at which time the revolver will terminate, and all outstanding loans, together with all accrued and unpaid interest, must be repaid. Amounts not borrowed under the revolver are subject to a commitment fee, which is paid in arrears on the last day of each fiscal quarter, ranging from 0.18% to 0.35% per annum depending on our total leverage ratio as of the most recently ended fiscal quarter. Amounts repaid on the term loan may not be reborrowed. The 2018 credit facility permits us and certain of our foreign subsidiaries to borrow in U.S. dollars, euros, British pounds, or, with lender approval, other currencies readily convertible into U.S. dollars. All obligations under the 2018 credit facility are guaranteed by Itron, Inc. and material U.S. domestic subsidiaries and are secured by a pledge of substantially all of the assets of Itron, Inc. and material U.S. domestic subsidiaries, including a pledge of 100% of the capital stock of material U.S. domestic subsidiaries and up to 66% of the voting stock (100% of the non-voting stock) of their first-tier foreign subsidiaries. In addition, the obligations of any foreign subsidiary who is a foreign borrower, as defined by the 2018 credit facility, are guaranteed by the foreign subsidiary and by its direct and indirect foreign parents. Scheduled principal repayments for the term loan are due quarterly in the amount of $4.1 million from June 2018 through March 2019, $8.1 million from June 2019 through March 2020, $12.2 million from June 2020 through March 2021, $16.3 million from June 2021 through December 2022, and the remainder due at maturity on January 5, 2023. The term loan may be repaid early in whole or in part, subject to certain minimum thresholds, without penalty. Under the 2018 credit facility, we elect applicable market interest rates for both the term loan and any outstanding revolving loans. We also pay an applicable margin, which is based on our total leverage ratio (as defined in the credit agreement). The applicable rates per annum may be based on either: (1) the LIBOR rate or EURIBOR rate (floor of 0%), plus an applicable margin, or (2) the Alternate Base Rate, plus an applicable margin. The Alternate Base Rate election is equal to the greatest of three rates: (i) the prime rate, (ii) the Federal Reserve effective rate plus 1/2 of 1%, or (iii) one month LIBOR plus 1%. At January 5, 2018, the interest rate for both the term loan and the USD revolver was 3.56% (the LIBOR rate plus a margin of 2.00%), and the interest rate for the EUR revolver was 2.00% (the EURIBOR floor rate plus a margin of 2.00%). Senior Notes On January 19, 2018, we closed an offering of an additional $100 million aggregate principal amount of our 5.00% senior notes which were issued pursuant to the Indenture, as disclosed in Note 6: Debt. 2018 Restructuring Projects On February 22, 2018, our Board of Directors approved a restructuring plan (2018 Projects). The 2018 Projects will include activities that continue our efforts to optimize our global supply chain and manufacturing operations, product development, and sales and marketing organizations. We expect to substantially complete the plan by the end of 2020. We estimate pre-tax restructuring charges of $100 million to $110 million with approximately 20% related to closing or consolidating facilities and non-manufacturing operations and approximately 80% associated with severance and other one-time termination benefits. Of the total estimated charge, approximately 95% will result in cash expenditures. We expect to record the majority of the charges in the first quarter of 2018. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | Financial Statement Preparation The consolidated financial statements presented in this Annual Report include the Consolidated Statements of Operations, Comprehensive Income (Loss), Equity, and Cash Flows for the years ended December 31, 2017, 2016, and 2015 and the Consolidated Balance Sheets as of December 31, 2017 and 2016 of Itron, Inc. and its subsidiaries, prepared in accordance with U.S. generally accepted accounting principles (GAAP). |
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Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of significant estimates include revenue recognition, warranty, restructuring, income taxes, business combinations, goodwill and intangible assets, defined benefit pension plans, contingencies, and stock-based compensation. Due to various factors affecting future costs and operations, actual results could differ materially from these estimates. |
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Basis of Consolidation [Policy Text Block] | Basis of Consolidation We consolidate all entities in which we have a greater than 50% ownership interest or in which we exercise control over the operations. We use the equity method of accounting for entities in which we have a 50% or less investment and exercise significant influence. Entities in which we have less than a 20% investment and where we do not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. |
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Noncontrolling Interest Disclosure [Text Block] | Noncontrolling Interests In several of our consolidated international subsidiaries, we have joint venture partners, who are minority shareholders. Although these entities are not wholly-owned by Itron, we consolidate them because we have a greater than 50% ownership interest or because we exercise control over the operations. The noncontrolling interest balance is adjusted each period to reflect the allocation of net income (loss) and other comprehensive income (loss) attributable to the noncontrolling interests, as shown in our Consolidated Statements of Operations and our Consolidated Statements of Comprehensive Income (Loss) as well as contributions from and distributions to the owners. The noncontrolling interest balance in our Consolidated Balance Sheets represents the proportional share of the equity of the joint venture entities which is attributable to the minority shareholders. |
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Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents We consider all highly liquid instruments with remaining maturities of three months or less at the date of acquisition to be cash equivalents. |
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Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash and Cash Equivalents Cash and cash equivalents that are contractually restricted from operating use are classified as restricted cash and cash equivalents. On December 22, 2017, we issued $300 million aggregate principal amount of 5.00% senior unsecured notes due in 2026 (Notes). The proceeds of the Notes plus payments for prepaid interest and a premium for a special mandatory redemption option were deposited into escrow, where the funds remained until all the escrow release conditions were satisfied, specifically the closing of the acquisition of Silver Spring Networks, Inc. (SSNI) on January 5, 2018. Had the acquisition agreement been terminated, the funds in escrow would have been returned to the investors of the Notes plus accrued and unpaid interest up to the date of release, with any remaining balance from prepaid interest returned to the Company. We have recognized the balance in escrow as restricted cash in our consolidated financial statements. See Note 6 - Debt and Note 19 - Subsequent Events for further details. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:
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Accounts Receivable and Allowance for Doubtful Accounts [Policy Text Block] | Accounts Receivable, net Accounts receivable are recognized for invoices issued to customers in accordance with our contractual arrangements. Interest and late payment fees are minimal. Unbilled receivables are recognized when revenues are recognized upon product shipment or service delivery and invoicing occurs at a later date. We recognize an allowance for doubtful accounts representing our estimate of the probable losses in accounts receivable at the date of the balance sheet based on our historical experience of bad debts and our specific review of outstanding receivables. Accounts receivable are written-off against the allowance when we believe an account, or a portion thereof, is no longer collectible. |
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Inventories [Policy Text Block] | Inventories Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method. Cost includes raw materials and labor, plus applied direct and indirect costs. Net realizable value is the estimated selling price in the normal course of business, minus the cost of completion, disposal and transportation. |
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Derivative Instruments [Policy Text Block] | Derivative Instruments All derivative instruments, whether designated in hedging relationships or not, are recognized on the Consolidated Balance Sheets at fair value as either assets or liabilities. The components and fair values of our derivative instruments are determined using the fair value measurements of significant other observable inputs (Level 2), as defined by GAAP. The fair value of our derivative instruments may switch between an asset and a liability depending on market circumstances at the end of the period. We include the effect of our counterparty credit risk based on current published credit default swap rates when the net fair value of our derivative instruments are in a net asset position and the effect of our own nonperformance risk when the net fair value of our derivative instruments are in a net liability position. For any derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. For any derivative designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recognized as a component of other comprehensive income (loss) (OCI) and are recognized in earnings when the hedged item affects earnings. Ineffective portions of cash flow hedges are recognized in other income (expense) in the Consolidated Statements of Operations. For a hedge of a net investment, the effective portion of any unrealized gain or loss from the foreign currency revaluation of the hedging instrument is reported in OCI as a net unrealized gain or loss on derivative instruments. Upon termination of a net investment hedge, the net derivative gain/loss will remain in accumulated other comprehensive income (loss) (AOCI) until such time when earnings are impacted by a sale or liquidation of the associated operations. Ineffective portions of fair value changes or the changes in fair value of derivative instruments that do not qualify for hedging activities are recognized in other income (expense) in the Consolidated Statements of Operations. We classify cash flows from our derivative programs as cash flows from operating activities in the Consolidated Statements of Cash Flows. Derivatives are not used for trading or speculative purposes. Our derivatives are with credit worthy multinational commercial banks, with whom we have master netting agreements; however, our derivative positions are not recognized on a net basis in the Consolidated Balance Sheets. There are no credit-risk-related contingent features within our derivative instruments. Refer to Note 7 and Note 14 for further disclosures of our derivative instruments and their impact on OCI. |
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Property, Plant, and Equipment [Policy Text Block] | Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 30 years for buildings and improvements and three to ten years for machinery and equipment, computers and software, and furniture. Leasehold improvements are capitalized and depreciated over the term of the applicable lease, including renewable periods if reasonably assured, or over the useful lives, whichever is shorter. Construction in process represents capital expenditures incurred for assets not yet placed in service. Costs related to internally developed software and software purchased for internal uses are capitalized and are amortized over the estimated useful lives of the assets. Repair and maintenance costs are recognized as incurred. We have no major planned maintenance activities. We review long-lived assets for impairment whenever events or circumstances indicate the carrying amount of an asset group may not be recoverable. Assets held for sale are classified within other current assets in the Consolidated Balance Sheets, are reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. Gains and losses from asset disposals and impairment losses are classified within the Consolidated Statement of Operations according to the use of the asset, except those gains and losses recognized in conjunction with our restructuring activities, which are classified within restructuring expense. |
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Prepaid Debt Fees [Policy Text Block] | Prepaid Debt Fees Prepaid debt fees for term debt represent the capitalized direct costs incurred related to the issuance of debt and are recognized as a direct deduction from the carrying amount of the corresponding debt liability. We have elected to present prepaid debt fees for revolving debt within other long-term assets in the Consolidated Balance Sheets. These costs are amortized to interest expense over the terms of the respective borrowings, including contingent maturity or call features, using the effective interest method, or straight-line method when associated with a revolving credit facility. When debt is repaid early, the related portion of unamortized prepaid debt fees is written off and included in interest expense. |
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Business Combinations [Policy Text Block] | Business Combinations On the date of acquisition, the assets acquired, liabilities assumed, and any noncontrolling interests in the acquiree are recognized at their fair values. The acquiree's results of operations are also included as of the date of acquisition in our consolidated results. Intangible assets that arise from contractual/legal rights, or are capable of being separated, as well as in-process research and development (IPR&D), are measured and recognized at fair value, and amortized over the estimated useful life. IPR&D is not amortized until such time as the associated development projects are completed or terminated. If a development project is completed, the IPR&D is reclassified as a core technology intangible asset and amortized over its estimated useful life. If the development project is terminated, the recognized value of the associated IPR&D is immediately recognized. If practicable, assets acquired and liabilities assumed arising from contingencies are measured and recognized at fair value. If not practicable, such assets and liabilities are measured and recognized when it is probable that a gain or loss has occurred, and the amount can be reasonably estimated. The residual balance of the purchase price, after fair value allocations to all identified assets and liabilities, represents goodwill. Acquisition-related costs are recognized as incurred. Integration costs associated with an acquisition are generally recognized in periods subsequent to the acquisition date, and changes in deferred tax asset valuation allowances and acquired income tax uncertainties, including penalties and interest, after the measurement period are recognized as a component of the provision for income taxes. Our acquisitions may include contingent consideration, which require us to recognize the fair value of the estimated liability at the time of the acquisition. Subsequent changes in the estimate of the amount to be paid under the contingent consideration arrangement are recognized in the Consolidated Statements of Operations. We estimate the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on information available at that time utilizing either a cost or income approach. The determination of the fair value is judgmental in nature and involves the use of significant estimates and assumptions. Contingent consideration is recorded at fair value as of the date of the acquisition with adjustments occurring after the purchase price allocation period, which could be up to one year, recorded in earnings. Changes to valuation allowances on acquired deferred tax assets that occur after the acquisition date are recognized in the provision for, or benefit from, income taxes. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially between the preliminary allocation and end of the purchase price allocation period. Any changes in these estimates may have a material effect on our consolidated operating results or financial position. |
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Goodwill and Intangible Assets [Policy Text Block] | Goodwill and Intangible Assets Goodwill and intangible assets may result from our business acquisitions. Intangible assets may also result from the purchase of assets and intellectual property in a transaction that does not qualify as a business combination. We use estimates, including estimates of useful lives of intangible assets, the amount and timing of related future cash flows, and fair values of the related operations, in determining the value assigned to goodwill and intangible assets. Our finite-lived intangible assets are amortized over their estimated useful lives based on estimated discounted cash flows, generally three years to ten years for core-developed technology and customer contracts and relationships. Finite-lived intangible assets are tested for impairment at the asset group level when events or changes in circumstances indicate the carrying value may not be recoverable. Indefinite-lived intangible assets are tested for impairment annually, when events or changes in circumstances indicate the asset may be impaired, or at the time when their useful lives are determined to be no longer indefinite. Goodwill is assigned to our reporting units based on the expected benefit from the synergies arising from each business combination, determined by using certain financial metrics, including the forecasted discounted cash flows associated with each reporting unit. Each reporting unit corresponds with its respective operating segment. We test goodwill for impairment each year as of October 1, or more frequently should a significant impairment indicator occur. As part of the impairment test, we may elect to perform an assessment of qualitative factors. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit, including goodwill, is less than its carrying amount, or if we elect to bypass the qualitative assessment, we would then proceed with the impairment test. The impairment test involves comparing the fair values of the reporting units to their carrying amounts. If the carrying amount of the reporting unit's goodwill exceeds the fair value of the reporting unit, an impairment loss is recognized in an amount equal to the excess. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. We forecast discounted future cash flows at the reporting unit level using risk-adjusted discount rates and estimated future revenues and operating costs, which take into consideration factors such as existing backlog, expected future orders, supplier contracts, and expectations of competitive and economic environments. We also identify similar publicly traded companies and develop a correlation, referred to as a multiple, to apply to the operating results of the reporting units. These combined fair values are then reconciled to the aggregate market value of our common stock on the date of valuation, while considering a reasonable control premium. |
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Contingencies [Policy Text Block] | Contingencies A loss contingency is recognized if it is probable that an asset has been impaired, or a liability has been incurred and the amount of the loss can be reasonably estimated. We evaluate, among other factors, the degree of probability of an unfavorable outcome and our ability to make a reasonable estimate of the amount of the ultimate loss. Loss contingencies that we determine to be reasonably possible, but not probable, are disclosed but not recognized. Changes in these factors and related estimates could materially affect our financial position and results of operations. Legal costs to defend against contingent liabilities are recognized as incurred. |
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Compensation Related Costs, Policy [Policy Text Block] | Bonus and Profit Sharing We have various employee bonus and profit sharing plans, which provide award amounts for the achievement of financial and nonfinancial targets. If management determines it is probable that the targets will be achieved, and the amounts can be reasonably estimated, a compensation accrual is recognized based on the proportional achievement of the financial and nonfinancial targets. Although we monitor and accrue expenses quarterly based on our progress toward the achievement of the targets, the actual results may result in awards that are significantly greater or less than the estimates made in earlier quarters. |
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Warranty [Policy Text Block] | Warranty We offer standard warranties on our hardware products and large application software products. We accrue the estimated cost of new product warranties based on historical and projected product performance trends and costs during the warranty period. Testing of new products in the development stage helps identify and correct potential warranty issues prior to manufacturing. Quality control efforts during manufacturing reduce our exposure to warranty claims. When testing or quality control efforts fail to detect a fault in one of our products, we may experience an increase in warranty claims. We track warranty claims to identify potential warranty trends. If an unusual trend is noted, an additional warranty accrual would be recognized if a failure event is probable and the cost can be reasonably estimated. When new products are introduced, our process relies on historical averages of similar products until sufficient data is available. As actual experience on new products becomes available, it is used to modify the historical averages to ensure the expected warranty costs are within a range of likely outcomes. Management regularly evaluates the sufficiency of the warranty provisions and makes adjustments when necessary. The warranty allowances may fluctuate due to changes in estimates for material, labor, and other costs we may incur to repair or replace projected product failures, and we may incur additional warranty and related expenses in the future with respect to new or established products, which could adversely affect our financial position and results of operations. The long-term warranty balance includes estimated warranty claims beyond one year. Warranty expense is classified within cost of revenues. |
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Costs Associated with Exit or Disposal Activity or Restructuring [Policy Text Block] | Restructuring We recognize a liability for costs associated with an exit or disposal activity under a restructuring project in the period in which the liability is incurred. Employee termination benefits considered postemployment benefits are accrued when the obligation is probable and estimable, such as benefits stipulated by human resource policies and practices or statutory requirements. One-time termination benefits are recognized at the date the employee is notified. If the employee must provide future service greater than 60 days, such benefits are recognized ratably over the future service period. For contract termination costs, we recognize a liability upon the termination of a contract in accordance with the contract terms or the cessation of the use of the rights conveyed by the contract, whichever occurs later. Asset impairments associated with a restructuring project are determined at the asset group level. An impairment may be recognized for assets that are to be abandoned, are to be sold for less than net book value, or are held for sale in which the estimated proceeds less costs to sell are less than the net book value. We may also recognize impairment on an asset group, which is held and used, when the carrying value is not recoverable and exceeds the asset group's fair value. If an asset group is considered a business, a portion of our goodwill balance is allocated to it based on relative fair value. If the sale of an asset group under a restructuring project results in proceeds that exceed the net book value of the asset group, the resulting gain is recognized within restructuring expense in the Consolidated Statements of Operations. |
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Defined Benefit Pension Plans [Policy Text Block] | Defined Benefit Pension Plans We sponsor both funded and unfunded defined benefit pension plans for certain international employees. We recognize a liability for the projected benefit obligation in excess of plan assets or an asset for plan assets in excess of the projected benefit obligation. We also recognize the funded status of our defined benefit pension plans on our Consolidated Balance Sheets and recognize as a component of OCI, net of tax, the actuarial gains or losses and prior service costs or credits, if any that arise during the period but that are not recognized as components of net periodic benefit cost. If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the employees' average future service period. |
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Share Repurchase Policy [Policy Text Block] | Share Repurchase Plan From time to time, we may repurchase shares of Itron common stock under programs authorized by our Board of Directors. Share repurchases are made in the open market or in privately negotiated transactions and in accordance with applicable securities laws. Under applicable Washington State law, shares repurchased are retired and not displayed separately as treasury stock on the financial statements; the value of the repurchased shares is deducted from common stock. |
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Revenue Recognition, Sales of Services [Policy Text Block] | Product Revenues and Service Revenues Product revenues include sales from standard and smart meters, systems or software, and any associated implementation and installation revenue. Service revenues include sales from post-sale maintenance support, consulting, outsourcing, and managed services. |
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Revenue Recognition [Policy Text Block] | Revenue Recognition Revenues consist primarily of hardware sales, software license fees, software implementation, project management services, installation, consulting, and post-sale maintenance support. Revenues are recognized when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the sales price is fixed or determinable, and (4) collectability is reasonably assured. Many of our revenue arrangements involve multiple deliverables, which combine two or more of the following: hardware, meter reading system software, installation, and/or project management services. Separate contracts entered into with the same customer that meet certain criteria such as those that are entered into at or near the same time are evaluated as one single arrangement for purposes of applying multiple element arrangement revenue recognition. Revenue arrangements with multiple deliverables are divided into separate units of accounting at the inception of the arrangement and as each item in the arrangement is delivered. If the delivered item(s) has value to the customer on a standalone basis and delivery/performance of the undelivered item(s) is probable the total arrangement consideration is allocated among the separate units of accounting based on their relative fair values and the applicable revenue recognition criteria are then considered for each unit of accounting. The amount allocable to a delivered item is limited to the amount that we are entitled to collect and that is not contingent upon the delivery/performance of additional items. Revenues for each deliverable are then recognized based on the type of deliverable, such as 1) when the products are shipped, 2) services are delivered, 3) percentage-of-completion for implementation services, 4) upon receipt of customer acceptance, or 5) transfer of title and risk of loss. The majority of our revenue is recognized when products are shipped to or received by a customer or when services are provided. Hardware revenues are generally recognized at the time of shipment, receipt by the customer, or, if applicable, upon completion of customer acceptance provisions. Under contract accounting where revenue is recognized using percentage of completion, the cost to cost method is used to measure progress to completion. Revenue from OpenWay network software and services are recognized using the units-of-delivery method of contract accounting, as network design services and network software are essential to the functionality of the related hardware (network) for certain contracts. This methodology results in the deferral of costs and revenues as professional services and software implementation commence prior to deployment of hardware. In the unusual instances when we are unable to reliably estimate the cost to complete a contract at its inception, we use the completed contract method of contract accounting. Revenues and costs are recognized upon substantial completion when remaining costs are insignificant and potential risks are minimal. Change orders and contract modifications entered into after inception of the original contract are analyzed to determine if change orders or modifications are extensions of an existing agreement or are accounted for as a separate arrangement for purposes of applying contract accounting. If we estimate that the completion of a contract component (unit of accounting) will result in a loss, the loss is recognized in the period in which the loss becomes evident. We reevaluate the estimated loss through the completion of the contract component and adjust the estimated loss for changes in facts and circumstances. A few of our larger customer arrangements contain clauses for liquidated damages, related to delays in delivery or milestone accomplishments, which could become material in an event of failure to meet the contractual deadlines. At the inception of the arrangement and on an ongoing basis, we evaluate if the liquidated damages represent contingent revenue and, if so, we reduce the amount of consideration allocated to the delivered products and services and recognize it as a reduction in revenue in the period of default. If the arrangement is subject to contract accounting, liquidated damages resulting from failure or expected failure to meet milestones are estimated and are accounted for as a reduction of revenue in the period in which the liquidated damages are deemed probable of occurrence and are reasonably estimable. Our software customers often purchase a combination of software, software-related services, and post contract customer support (PCS). PCS includes telephone support services and updates or upgrades for software as part of a maintenance program. For these types of arrangements, revenue recognition is dependent upon the availability of vendor specific objective evidence (VSOE) of fair value for any undelivered element. We determine VSOE by reference to the range of comparable standalone sales or stated renewals. We review these standalone sales or renewals on at least an annual basis. If VSOE is established for all undelivered elements in the contract, revenue is recognized for delivered elements when all other revenue recognition criteria are met. Arrangements in which VSOE for all undelivered elements is not established, we recognize revenue under the combined services approach where revenue for software and software related elements is deferred until all software products have been delivered, all software related services have commenced, and undelivered services do not include significant production, customization or modification. This will also result in the deferral of costs for software and software implementation services until the undelivered element commence. Revenue would be recognized over the longest period that services would be provided, which is typically the PCS period. Cloud services and software as a service (SaaS) arrangements where customers have access to certain of our software within a cloud-based IT environment that we manage, host and support are offered to customers on a subscription basis. Revenue for the cloud services and SaaS offerings are generally recognized ratably over the contact term commencing with the date the services is made available to customers and all other revenue recognition criteria have been satisfied. For arrangements where cloud services and SaaS is provided on a per meter basis, revenue is recognized based on actual meters read during the period. Certain of our revenue arrangements include an extended or noncustomary warranty provision that covers all or a portion of a customer's replacement or repair costs beyond the standard or customary warranty period. Whether or not the extended warranty is separately priced in the arrangement, a portion of the arrangement's total consideration is allocated to this extended warranty deliverable. This revenue is deferred and recognized over the extended warranty coverage period. Extended or noncustomary warranties do not represent a significant portion of our revenue. We allocate consideration to each deliverable in an arrangement based on its relative selling price. We determine selling price using VSOE, if it exists, otherwise we use third-party evidence (TPE). We define VSOE as a median price of recent standalone transactions that are priced within a narrow range. TPE is determined based on the prices charged by our competitors for a similar deliverable when sold separately. If neither VSOE nor TPE of selling price exists for a unit of accounting, we use estimated selling price (ESP) to determine the price at which we would transact if the product or service were regularly sold by us on a standalone basis. Our determination of ESP involves a weighting of several factors based on the specific facts and circumstances of the arrangement. The factors considered include historical contractual sales, market conditions and entity specific factors, the cost to produce the deliverable, the anticipated margin on that deliverable, our ongoing pricing strategy and policies, and the characteristics of the varying markets in which the deliverable is sold. We analyze the selling prices used in our allocation of arrangement consideration on an annual basis. Selling prices are analyzed on a more frequent basis if a significant change in our business necessitates a more timely analysis or if we experience significant variances in our selling prices. Unearned revenue is recognized when a customer pays for products or services, but the criteria for revenue recognition have not been met as of the balance sheet date. Unearned revenue of $77.0 million and $114.3 million at December 31, 2017 and 2016 related primarily to professional services and software associated with our smart metering contracts, extended or noncustomary warranty, and prepaid post-contract support. Deferred costs are recognized for products or services for which ownership (typically defined as title and risk of loss) has transferred to the customer, but the criteria for revenue recognition have not been met as of the balance sheet date. Deferred costs were $14.4 million and $34.4 million at December 31, 2017 and 2016 and are recognized within other assets in the Consolidated Balance Sheets. Hardware and software post-sale maintenance support fees, such as post contract support or extended warranty are recognized ratably over the life of the related service contract. Shipping and handling costs and incidental expenses billed to customers are recognized as revenue, with the associated cost charged to cost of revenues. We recognize sales, use, and value added taxes billed to our customers on a net basis. |
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Product and Software Development Costs [Policy Text Block] | Product and Software Development Costs Product and software development costs primarily include employee compensation and third party contracting fees. We do not capitalize product development costs, and we do not generally capitalize development expenses for computer software to be sold, leased, or otherwise marketed as the costs incurred are immaterial for the relatively short period of time between technological feasibility and the completion of software development. |
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Stock-based Compensation [Policy Text Block] | Stock-Based Compensation We grant various stock-based compensation awards to our officers, employees and Board of Directors with service, performance, and market vesting conditions, including stock options, restricted stock units, phantom stock units, and unrestricted stock units (awards). We measure and recognize compensation expense for all awards based on estimated fair values. For awards with only a service condition, we expense stock-based compensation using the straight-line method over the requisite service period for the entire award. For awards with service and performance conditions, if vesting is probable, we expense the stock-based compensation on a straight-line basis over the requisite service period for each separately vesting portion of the award. For awards with a market condition, we expense the fair value over the requisite service period. We have elected to account for forfeitures of any awards in stock-based compensation expense prospectively as they occur. The fair value of stock options is estimated at the date of grant using the Black-Scholes option-pricing model. Options to purchase our common stock are granted with an exercise price equal to the market close price of the stock on the date the Board of Directors approves the grant. Options generally become exercisable in three equal annual installments beginning one year from the date of grant and expire 10 years from the date of grant. Expected volatility is based on a combination of the historical volatility of our common stock and the implied volatility of our traded options for the related expected term. We believe this combined approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free interest rate is the rate available as of the award date on zero-coupon U.S. government issues with a term equal to the expected term of the award. The expected term is the weighted average expected term of an award based on the period of time between the date the award is granted and the estimated date the award will be fully exercised. Factors considered in estimating the expected term include historical experience of similar awards, contractual terms, vesting schedules, and expectations of future employee behavior. We have not paid dividends in the past and do not plan to pay dividends in the foreseeable future. The fair value of a restricted stock unit is the market close price of our common stock on the date of grant. Restricted stock units vest over a maximum period of three years. After vesting, the restricted stock units are converted into shares of our common stock on a one-for-one basis and issued to employees. Certain restricted stock units are issued under the Long-Term Performance Restricted Stock Unit Award Agreement and include performance and market conditions. The final number of shares issued will be based on the achievement of financial targets and our total shareholder return relative to the Russell 3000 Index during the performance periods. Due to the presence of a market condition, we utilize a Monte Carlo valuation model to determine the fair value of the awards at the grant date. Expected volatility is based on the historical volatility of our common stock for the related expected term. We believe this approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free interest rate is the rate available as of the award date on zero-coupon U.S. government issues with a term equal to the expected term of the award. The expected term is the term of an award based on the period of time between the date of the award and the date the award is expected to vest. The expected term assumption is based upon the plan's performance period as of the date of the award. We have not paid dividends in the past and do not plan to pay dividends in the foreseeable future. Phantom stock units are a form of share-based award that are indexed to our stock price and are settled in cash upon vesting and accounted for as liability-based awards. Fair value is remeasured at the end of each reporting period based on the market close price of our common stock. Phantom stock units vest over a maximum period of three years. Since phantom stock units are settled in cash, compensation expense recognized over the vesting period will vary based on changes in fair value. The fair value of unrestricted stock awards is the market close price of our common stock on the date of grant, and awards are fully vested. We expense stock-based compensation at the date of grant for unrestricted stock awards. Excess tax benefits and deficiencies resulting from employee share-based payment are recognized as income tax provision or benefit in the Consolidated Statement of Operations, and as an operating activity on the Consolidated Statement of Cash Flows. We also maintain an Employee Stock Purchase Plan (ESPP) for our employees. Under the terms of the ESPP, employees can deduct up to 10% of their regular cash compensation to purchase our common stock at a 5% discount from the fair market value of the stock at the end of each fiscal quarter, subject to other limitations under the plan. The sale of the stock to the employees occurs at the beginning of the subsequent quarter. The ESPP is not considered compensatory, and no compensation expense is recognized for sales of our common stock to employees. |
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Income Tax, Policy [Policy Text Block] | Income Taxes We account for income taxes using the asset and liability method of accounting. Deferred tax assets and liabilities are recognized based upon anticipated future tax consequences, in each of the jurisdictions that we operate, attributable to: (1) the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases; and (2) net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured annually using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The calculation of our tax liabilities involves applying complex tax regulations in different tax jurisdictions to our tax positions. The effect on deferred tax assets and liabilities of a change in tax legislation and/or rates is recognized in the period that includes the enactment date. A valuation allowance is recognized to reduce the carrying amounts of deferred tax assets if it is not more likely than not that such assets will be realized. We do not recognize tax liabilities on undistributed earnings of international subsidiaries that are permanently reinvested. |
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Foreign Exchange [Policy Text Block] | Foreign Exchange Our consolidated financial statements are reported in U.S. dollars. Assets and liabilities of international subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at the exchange rates in effect on the balance sheet date, or the last business day of the period, if applicable. Revenues and expenses for each subsidiary are translated to U.S. dollars using a weighted average rate for the relevant reporting period. Translation adjustments resulting from this process are included, net of tax, in OCI. Gains and losses that arise from exchange rate fluctuations for monetary asset and liability balances that are not denominated in an entity’s functional currency are included within other income (expense), net in the Consolidated Statements of Operations. Currency gains and losses of intercompany balances deemed to be long-term in nature or designated as a hedge of the net investment in international subsidiaries are included, net of tax, in OCI. Foreign currency losses, net of hedging, of $5.1 million, $0.3 million, and $3.0 million were included in other expenses, net, for the years ended December 31, 2017, 2016 and 2015, respectively. |
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Fair Value Measurement [Policy Text Block] | Fair Value Measurements For assets and liabilities measured at fair value, the GAAP fair value hierarchy prioritizes the inputs used in different valuation methodologies, assigning the highest priority to unadjusted quoted prices for identical assets and liabilities in actively traded markets (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs consist of quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in non-active markets; and model-derived valuations in which significant inputs are corroborated by observable market data either directly or indirectly through correlation or other means. Inputs may include yield curves, volatility, credit risks, and default rates. |
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New Accounting Pronouncements [Text Block] | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date for implementation of ASU 2014-09 by one year and is now effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted but not earlier than the original effective date. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08), which clarifies the implementation guidance of principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing (ASU 2016-10), which clarifies the identification of performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients (ASU 2016-12), to improve guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The effective date and transition requirements in ASU 2016-08, ASU 2016-10, and ASU 2016-12 are the same as the effective date and transition requirements of ASU 2015-14. The revenue guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We adopted this standard effective January 1, 2018 using the cumulative catch-up transition method. While we are finalizing the assessment of the impact of adoption, which includes additional disclosures, we currently anticipate the cumulative effect of adoption to amount to a $5 million to $15 million reduction in accumulated deficit as a result of adjustments to deferred revenue and deferred costs of revenue and the related income tax effects. The impact from adoption primarily relates to multiple element arrangements that contain software and software related elements. As we have not established VSOE of fair value for certain of our software and software related elements, we combined them as one unit of account and recognized the combined unit of account using the combined services approach. Under ASU 2014-09, these software and software related elements are generally determined to be distinct performance obligations. As such we are able to recognize revenue as we satisfy the performance obligations, either at a point in time, or over time. This impact, which may vary materially from the cumulative effect upon adoption, and the increased financial statement disclosures, are the most significant impacts the updated standard will have on our consolidated results of operations, financial position, cash flows, and related financial statement disclosures. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory (ASU 2015-11). The amendments in ASU 2015-11 apply to inventory measured using first-in, first-out (FIFO) or average cost and will require entities to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the normal course of business, minus the cost of completion, disposal and transportation. Replacement cost and net realizable value less a normal profit margin are no longer considered. We adopted this standard on January 1, 2017 and it did not materially impact our consolidated results of operations, financial position, cash flows, or related financial statement disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The standard requires modified retrospective adoption and will be effective for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact of adoption on our consolidated results of operations, financial position, cash flows, and related financial statement disclosures. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718) (ASU 2016-09), which simplifies several areas within Topic 718. These include income tax consequences, classification of awards as either equity or liabilities, forfeitures, and classification on the statement of cash flows. The amendments in this ASU becomes effective on a modified retrospective basis for accounting for income tax benefits recognized and forfeitures, retrospectively for accounting related to the presentation of employee taxes paid, prospectively for accounting related to recognition of excess tax benefits, and either prospectively or retrospectively for accounting related to presentation of excess employee tax benefits for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We adopted this standard effective January 1, 2017 using a modified retrospective transition method. We recognized a $14.6 million one-time reduction in accumulated deficit and increase in deferred tax assets related to cumulative unrecognized excess tax benefits. All future excess tax benefits and tax deficiencies will be recognized prospectively as income tax provision or benefit in the Consolidated Statement of Operations, and as an operating activity on the Consolidated Statement of Cash Flows. We also recognized a $0.2 million one-time increase in accumulated deficit and common stock related to our policy election to prospectively recognize forfeitures as they occur. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) (ASU 2016-18), which clarifies the presentation requirements of restricted cash within the statement of cash flows. The changes in restricted cash and restricted cash equivalents during the period should be included in the beginning and ending cash and cash equivalents balance reconciliation on the statement of cash flows. When cash, cash equivalents, restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, an entity shall calculate a total cash amount in a narrative or tabular format that agrees to the amount shown on the statement of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If adopted during an interim period, any adjustments are reflected as of the beginning of the fiscal year that includes the interim period. The amendments are applied using a retrospective transition method to each period presented. We adopted this standard effective January 1, 2017 as a result of the private offering of the Notes, for which $310.3 million was deposited into escrow and recognized as restricted cash until the closing of the acquisition of SSNI. Given the size of the increase and length of restriction relative to period end and historical activity, management believes early adopting enhanced the consistency and comparability of financial information included in the consolidated financial statements. The impact of adoption is shown in the reconciliation of cash, cash equivalents, and restricted cash above. The impact of retrospective application of ASU 2016-18 is immaterial, as restricted cash activity for the years ended December 31, 2016 and 2015 was not significant. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business (ASU 2017-01), which narrows the definition of a business and provides a framework that gives entities a basis for making reasonable judgments about whether a transaction involves an asset or a business. ASU 2017-01 states that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. If this initial test is not met, a set cannot be considered a business unless it includes an input and a substantive process that together significantly contribute to the ability to create output. ASU 2017-01 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. We adopted this standard on January 1, 2017, and it did not materially impact our consolidated results of operations, financial position, cash flows, and related financial statement disclosures. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (ASU 2017-04), which simplifies the measurement of goodwill impairment by removing step two of the goodwill impairment test that requires the determination of the fair value of individual assets and liabilities of a reporting unit. ASU 2017-04 requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying value exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. We adopted this standard on January 1, 2017, and it did not materially impact our consolidated results of operations, financial position, cash flows, and related financial statement disclosures. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07), which provides additional guidance on the presentation of net benefit costs in the income statement. ASU 2017-07 requires an employer disaggregate the service cost component from the other components of net benefit cost and to disclose other components outside of a subtotal of income from operations. It also allows only the service cost component of net benefit costs to be eligible for capitalization. ASU 2017-07 is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We adopted this standard on January 1, 2018 retrospectively for the presentation of the service cost component of net periodic pension cost in the statement of operations and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost in assets. This will result in a reclassification of an immaterial amount of net periodic pension benefit costs from operating income to interest expense for all years presented on the Consolidated Statements of Operations. |
Summary of Significant Accounting Policies Cash, Cash Equivalent, and Restricted Cash (Tables) |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restrictions on Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:
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Earnings Per Share Earnings Per Share (Tables) |
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Computation of Basic and Diluted Earnings Per Share [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share (EPS):
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Certain Balance Sheet Components Certain Balance Sheet Components (Tables) |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net [Table Text Block] |
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Allowance for Credit Losses on Financing Receivables [Table Text Block] |
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Inventories [Table Text Block] |
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Property, Plant, and Equipment [Table Text Block] |
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Depreciation Expense [Table Text Block] |
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Intangible Assets Schedule of Intangible Assets (Tables) |
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Schedule of Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The gross carrying amount and accumulated amortization of our intangible assets, other than goodwill, are as follows:
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SummaryOfIntangibleAssetAccountActivity [Table Text Block] | A summary of the intangible asset account activity is as follows:
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Finite-lived Intangible Assets Amortization Expense [Table Text Block] | A summary of intangible asset amortization expense is as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated future annual amortization expense is as follows:
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Goodwill Schedule of Goodwill Allocated to Reporting Segments (Tables) |
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Schedule of Goodwill [Table Text Block] | The following table reflects goodwill allocated to each reporting segment at December 31, 2017 and 2016:
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Debt (Tables) |
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Schedule of Debt [Table Text Block] | The components of our borrowings are as follows:
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Schedule of Maturities of Long-term Debt [Table Text Block] | Required minimum principal payments on our outstanding credit facilities are as follows:
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Schedule of Long-Term Debt Repayments [Table Text Block] | Total credit facility repayments were as follows:
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Derivative Financial Instruments Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair values of our derivative instruments are as follows:
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Accumulated OCI for Derivative and Nonderivative Instruments Designated as Hedging Instruments, Net of Tax [Table Text Block] | OCI during the reporting period for our derivative and nonderivative instruments designated as hedging instruments, net of tax, was as follows:
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Offsetting Assets [Table Text Block] | A summary of the potential effect of netting arrangements on our financial position related to the offsetting of our recognized derivative assets and liabilities under master netting arrangements or similar agreements is as follows:
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Offsetting Liabilities [Table Text Block] |
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Derivative Instruments, Gain (Loss) [Table Text Block] | :
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Foreign Exchange Derivatives Not Designated As Hedging Instruments [Table Text Block] | :
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Defined Benefit Pension Plans Defined Benefit Pension Plans (Tables) |
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Benefit Obligation and Fair Value of Plan Assets [Table Text Block] | The following tables set forth the components of the changes in benefit obligations and fair value of plan assets:
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Schedule of Amounts Recognized in the Consolidated Balance Sheets [Table Text Block] | Amounts recognized on the Consolidated Balance Sheets consist of:
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Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block] | Amounts in AOCI (pre-tax) that have not yet been recognized as components of net periodic benefit costs consist of:
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Amounts recognized in OCI (pre-tax) are as follows:
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Schedule of Net Periodic Pension Benefit Costs [Table Text Block] | Net periodic pension benefit costs for our plans include the following components:
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Schedule of Assumptions Used [Table Text Block] | The significant actuarial weighted average assumptions used in determining the benefit obligations and net periodic benefit cost for our benefit plans are as follows:
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | The total obligations and fair value of plan assets for plans with projected benefit obligations and accumulated benefit obligations exceeding the fair value of plan assets are as follows:
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Fair values of the assets held by the postretirement benefits plans by asset category [Table Text Block] | The fair values of our plan investments by asset category are as follows:
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Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2017 and 2016.
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Schedule of Expected Benefit Payments [Table Text Block] | Annual benefit payments for the next 10 years, including amounts to be paid from our assets for unfunded plans and reflecting expected future service, as appropriate, are expected to be paid as follows:
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Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense and Related Tax Benefit [Table Text Block] | Total stock-based compensation expense and the related tax benefit were as follows:
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Employee Stock Options Activity [Table Text Block] | A summary of our stock option activity is as follows:
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Stock Options, Valuation Assumptions [Table Text Block] | s The weighted-average assumptions used to estimate the fair value of stock options granted and the resulting weighted average fair value are as follows:
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Restricted Stock Units Award Activity [Table Text Block] | The following table summarizes restricted stock unit activity:
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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:
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Schedule of Other Share-based Compensation, Activity [Table Text Block] | The following table summarizes phantom stock unit activity:
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Defined Contribution, Bonus, and Profit Sharing (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Defined Contribution, Bonus, and Profit Sharing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Costs of Retirement Plans [Table Text Block] | The expense for our defined contribution plans was as follows:
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Schedule of Bonus and Profit Sharing Expenses [Table Text Block] | Bonus and profit sharing plans and award expense was as follows:
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Income Taxes (Tables) |
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Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Provision [Table Text Block] | The following table summarizes the provision (benefit) for U.S. federal, state, and foreign taxes on income from continuing operations:
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Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of income taxes at the U.S. federal statutory rate of 35% to the consolidated actual tax rate is as follows:
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Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and liabilities consist of the following:
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Summary of Valuation Allowance [Table Text Block] | Changes in the valuation allowance for deferred tax assets are summarized as follows:
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Unrecognized Tax Benefits Related To Uncertain Tax Positions [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
If certain unrecognized tax benefits are recognized they would create additional deferred tax assets. These assets would require a full valuation in certain locations based upon present circumstances. We classify interest expense and penalties related to unrecognized tax benefits and interest income on tax overpayments as components of income tax expense. The net interest and penalties expense recognized is as follows:
At December 31, 2017, we are under examination by certain tax authorities for the 2010 to 2015 tax years. The material jurisdictions where we are subject to examination for the 2010 to 2015 tax years include, among others, the U.S., France, Germany, Italy, Brazil and the United Kingdom. During December 2017 we settled our tax audit with the Internal Revenue Service related to research and development tax credits for the 2011-2013 years. We believe we have appropriately accrued for the expected outcome of all tax matters and do not currently anticipate that the ultimate resolution of these examinations will have a material adverse effect on our financial condition, future results of operations, or cash flows. Based upon the timing and outcome of examinations, litigation, the impact of legislative, regulatory, and judicial developments, and the impact of these items on the statute of limitations, it is reasonably possible that the related unrecognized tax benefits could change from those recognized within the next twelve months. However, at this time, an estimate of the range of reasonably possible adjustments to the balance of unrecognized tax benefits cannot be made. We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We are subject to income tax examination by tax authorities in our major tax jurisdictions as follows:
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Commitments and Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Rent Expense [Table Text Block] | Operating lease rental expense for factories, service and distribution locations, offices, and equipment was as follows:
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Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments at December 31, 2017, under noncancelable operating leases with initial or remaining terms in excess of one year are as follows:
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Schedule of Line of Credit Facilities [Table Text Block] | Our available lines of credit, outstanding standby LOCs, and bonds are as follows:
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Schedule of Warranty Accruals [Table Text Block] | A summary of the warranty accrual account activity is as follows:
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Warranty Expense [Table Text Block] | Warranty expense was as follows:
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Schedule of Changes to Unearned Revenue for Extended Warranty [Table Text Block] | A summary of changes to unearned revenue for extended warranty contracts is as follows:
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Health Benefit Plan Costs and Incurred But Not Reported Accrual Balance [Table Text Block] | Plan costs were as follows:
IBNR accrual, which is included in wages and benefits payable, was as follows:
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Restructuring (Tables) |
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Restructuring Project [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the activity within the restructuring related balance sheet accounts for the 2016 and 2014 Projects during the year ended December 31, 2017:
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2016 Projects [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Project [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The total expected restructuring costs, costs recognized in prior periods, costs recognized during the year ended December 31, 2017, and the remaining expected costs as of December 31, 2017 related to the 2016 Projects are as follows:
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Shareholders' Equity Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in the components of AOCI, net of tax, were as follows:
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Income Tax (Provision) Benefit Related To OCI [Table Text Block] | The before-tax, income tax (provision) benefit, and net-of-tax amounts related to each component of OCI during the reporting periods were as follows:
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Schedule of Fair Values Of Financial Instruments by Balance Sheet Grouping (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values Of Financial Instruments by Balance Sheet Grouping [Table Text Block] | The fair values at December 31, 2017 and 2016 do not reflect subsequent changes in the economy, interest rates, tax rates, and other variables that may affect the determination of fair value.
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues Gross Profit And Operating Income By Segment [Table Text Block] | Revenues, gross profit, and operating income associated with our segments were as follows:
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Revenues By Region [Table Text Block] | Revenues by region were as follows:
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Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | Property, plant, and equipment, net, by geographic area were as follows:
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Depreciation And Amortization Expense Associated With Segments [Table Text Block] | Depreciation and amortization expense associated with our segments was as follows:
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Business Combinations Business Combinations (Tables) |
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Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following reflects our final allocation of purchase price as of June 1, 2017:
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Schedule Of Revenues and Earnings Attributable to an Acquired Business [Table Text Block] | The following table presents the revenues and net income (loss) from Comverge's operations that are included in our Consolidated Statements of Operations:
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Business Acquisition, Pro Forma Information [Table Text Block] | The following supplemental pro forma results are based on the individual historical results of Itron and Comverge, with adjustments to give effect to the combined operations as if the acquisition had been consummated on January 1, 2016.
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Quarterly Results (Unaudited) Quarterly Results (Tables) |
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Quarterly Results (Unaudited) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] |
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Summary of Significant Accounting Policies Basis of Consolidation Policy Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | |
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Dec. 31, 2017 |
Dec. 31, 2016 |
|
Ownership Interest to be Held for Consolidation [Line Items] | ||
Unearned revenue | $ 77.0 | $ 114.3 |
Maximum [Member] | ||
Basis of Consolidation [Abstract] | ||
Ownership Interest To Use Equity Method | 50.00% | |
Ownership Interest To Use Cost Method | 20.00% | |
Minimum [Member] | ||
Basis of Consolidation [Abstract] | ||
Ownership Interest to be Held for Consolidation | 50.00% | |
Noncontrolling Interests [Abstract] | ||
Ownership Interest to be Held for Consolidation | 50.00% |
Summary of Significant Accounting Policies Property, Plant, and Equipment Policy Additional Information (Details) |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 30 years |
Minimum [Member] | Machinery and Equipment, Computers and Software, and Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 3 years |
Maximum [Member] | Machinery and Equipment, Computers and Software, and Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 10 years |
Summary of Significant Accounting Policies Goodwill and Intangibles Assets Policy Additional Information (Details) |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Summary of Significant Accounting Policies Revenue Recognition Policy Additional Information (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Deferred Revenue Arrangement [Line Items] | ||
Unearned revenue | $ 77.0 | $ 114.3 |
Deferred costs | $ 14.4 | $ 34.4 |
Summary of Significant Accounting Policies Foreign Exchange Policy Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Foreign Currency [Abstract] | |||
Foreign Currency Transaction Gain (Loss), Realized | $ (5.1) | $ (0.3) | $ (3.0) |
Summary of Significant Accounting Policies Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 22, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|---|
Cash and Cash Equivalents [Line Items] | |||||
Senior Notes | $ 300,000 | ||||
Cash and cash equivalents | $ 176,274 | $ 133,565 | $ 131,018 | ||
Restricted Cash, Current | 51 | 0 | 0 | ||
Restricted Cash, Noncurrent | 311,010 | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 487,335 | 133,565 | $ 131,018 | $ 112,371 | |
Senior Notes [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Senior Notes | $ 300,000 | $ 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% |
Earnings Per Share Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Earnings Per Share [Abstract] | |||||||||||
Net income available to common shareholders | $ 1,780 | $ 25,576 | $ 14,097 | $ 15,845 | $ 11,649 | $ (9,885) | $ 19,917 | $ 10,089 | $ 57,298 | $ 31,770 | $ 12,678 |
Weighted average common shares outstanding - Basic | 38,655 | 38,207 | 38,224 | ||||||||
Dilutive effect of stock-based awards | 732 | 436 | 282 | ||||||||
Weighted average common shares outstanding - Diluted | 39,387 | 38,643 | 38,506 | ||||||||
Earnings per common share - Basic | $ 0.05 | $ 0.66 | $ 0.36 | $ 0.41 | $ 0.30 | $ (0.26) | $ 0.52 | $ 0.27 | $ 1.48 | $ 0.83 | $ 0.33 |
Earnings per common share - Diluted | $ 0.05 | $ 0.65 | $ 0.36 | $ 0.40 | $ 0.30 | $ (0.26) | $ 0.52 | $ 0.26 | $ 1.45 | $ 0.82 | $ 0.33 |
Earnings Per Share Stock-based Awards (Details) - shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock-based awards excluded from diluted EPS calculation (antidilutive) | 0.2 | 0.7 | 1.2 |
Certain Balance Sheet Components Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Accounts Receivable, Net (Line Items] | ||
Accounts Receivable, Net, Current | $ 369,047 | $ 299,870 |
Total accounts receivable, net | 398,029 | 351,506 |
Unbilled Receivables, Current | $ 28,982 | $ 51,636 |
Certain Balance Sheet Components Accounts Receivable Allowance (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Accounts Receivable, Net (Line Items] | ||
Allowance | $ 3,957 | $ 3,320 |
Certain Balance Sheet Components Summary of the Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Summary of Allowance for Doubtful Accounts Activity [Line Items] | ||||
Allowance for Doubtful Accounts Receivable | $ 3,957 | $ 3,320 | $ 5,949 | $ 6,195 |
Provision for Doubtful Accounts | 1,656 | 60 | 1,025 | |
Allowance for Doubtful Accounts Receivable, Write-offs | 1,351 | 2,422 | 549 | |
Effects of change in exchange rates | $ 332 | $ (267) | $ (722) |
Certain Balance Sheet Components Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory [Line Items] | ||
Inventory, Raw Materials, Net of Reserves | $ 126,656 | $ 103,274 |
Inventory, Work in Process, Net of Reserves | 9,863 | 7,925 |
Inventory, Finished Goods, Net of Reserves | 57,316 | 51,850 |
Total inventories | $ 193,835 | $ 163,049 |
Certain Balance Sheet Components Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | $ 310,753 | $ 279,746 |
Computers and Software, Gross | 104,384 | 98,125 |
Buildings, furniture, and improvements | 135,566 | 122,680 |
Land | 18,433 | 17,179 |
Construction in progress, including purchased equipment | 39,946 | 29,358 |
Total cost | 609,082 | 547,088 |
Accumulated depreciation | (408,314) | (370,630) |
Property, plant, and equipment, net | $ 200,768 | $ 176,458 |
Certain Balance Sheet Components Depreciation Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Depreciation expense [Line Items] | |||
Depreciation expense | $ 42,430 | $ 43,206 | $ 44,320 |
Intangible Assets Summary of Intangible Asset Account Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Total Intangible Assets [Abstract] | ||
Beginning balance, Finite-Lived Intangible Assets, Gross | $ 669,896 | $ 702,507 |
Intangible assets acquired | 36,500 | 0 |
Effect of change in exchange rates | 63,455 | (32,611) |
Ending balance, Finite-Lived Intangible Assets, Gross | $ 769,851 | $ 669,896 |
Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 20,785 | $ 25,112 | $ 31,673 |
Intangible Assets Estimated Future Annual Amortization Expense (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
2017 | $ 19,380 | |
2018 | 16,553 | |
2019 | 14,208 | |
2020 | 12,162 | |
2021 | 9,961 | |
Beyond 2022 | 22,964 | |
Total intangible assets subject to amortization | $ 95,228 | $ 72,151 |
Debt Schedule of Debt (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 22, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Notes Payable | $ 300,000 | ||
Total debt | $ 319,477 | ||
Current portion of debt | 19,688 | $ 14,063 | |
Long-term debt | 593,572 | 290,460 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Notes Payable | 300,000 | 0 | |
Debt Issuance Costs, Noncurrent, Net | 5,588 | 0 | |
USD Denominated Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Loans Payable to Bank | 194,063 | 208,125 | |
Debt Issuance Costs, Noncurrent, Net | 629 | 769 | |
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | 125,414 | 97,167 | |
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 619,477 | 305,292 | |
Current portion of debt | 19,688 | 14,063 | |
Long-term debt | $ 593,572 | $ 290,460 |
Debt Schedule of Long-Term Debt Maturities (Details) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2018 | $ 19,688 |
2019 | 22,500 |
2020 | 277,289 |
2021 | 0 |
2022 | 0 |
Total minimum payments on debt | $ 319,477 |
Debt Schedule of Long-Term Debt Repayments (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | |||
Repayments of Long-term Debt | $ 29,063 | $ 79,119 | $ 62,998 |
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of Long-term Debt | 15,000 | 67,869 | 49,873 |
USD Denominated Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of Long-term Debt | 14,063 | 11,250 | 13,125 |
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of Long-term Debt | $ 29,063 | $ 79,119 | $ 62,998 |
Debt Senior Note Additional Information (Details) |
12 Months Ended | 36 Months Ended | 37 Months Ended | ||
---|---|---|---|---|---|
Jan. 14, 2023 |
Jan. 14, 2022 |
Dec. 31, 2017 |
Jan. 15, 2026 |
Jan. 14, 2021 |
|
Senior Notes [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt Instrument, Collateral | The Notes will be jointly and severally guaranteed by each of our subsidiaries that guarantees obligations under our senior credit facilities. The Notes were not guaranteed until the release of the escrow, but once released, the Notes were fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our subsidiaries that guarantee the senior credit facilities. | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||
Maximum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt Instrument, Redemption, Description | 0.35 | ||||
Minimum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt Instrument, Redemption, Description | 0.65 | ||||
Debt Instrument, Redemption, Period One [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 102.50% | ||||
Debt Instrument, Redemption, Period Two [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 101.25% | ||||
Debt Instrument, Redemption, Period Three [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Debt Instrument, Redemption, Period Four [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 105.00% |
Derivative Financial Instruments Derivative and Nonderivative Hedging Instrument Fair Value Disclosure (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Asset Derivatives [Abstract] | ||
Derivative Asset | $ 2,900 | $ 2,945 |
Liability Derivatives [Abstract] | ||
Derivative Liability | 289 | 1,383 |
Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 179 | 376 |
Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 1,712 | 1,830 |
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Interest Rate Cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 17 | 3 |
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Derivative Assets, at Fair Value | 658 | 0 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 934 |
Not Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 268 | 563 |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Asset Derivatives [Abstract] | ||
Foreign exchange forward contracts | 41 | 169 |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Interest Rate Cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 25 | 4 |
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Liability Derivatives [Abstract] | ||
Foreign exchange forward contracts | $ 289 | $ 449 |
Derivative Financial Instruments Effect of Net Investment Hedge Nonderivative Financial Instrument on OCI (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | $ (229,327) | ||
Unrealized gain (loss) on derivative instruments | 360 | $ (1,087) | $ 76 |
Realized (gains) losses reclassified into net income (loss) | 563 | 812 | 1,010 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | (170,478) | (229,327) | |
Accumulated Net Gain (Loss) from Derivative and Nonderivative Instruments Designated as Hedging Instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | (14,337) | (14,062) | (15,148) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | $ (13,414) | $ (14,337) | $ (14,062) |
Derivative Financial Instruments Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Offsetting Assets [Line Items] | ||
Derivative Asset | $ 2,900 | $ 2,945 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (90) | (1,322) |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | $ 2,810 | $ 1,623 |
Derivative Financial Instruments Offsetting of Derivative Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Offsetting Liabilities [Line Items] | ||
Derivative Liability | $ 289 | $ 1,383 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (90) | (1,322) |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 199 | $ 61 |
Derivative Financial Instruments Derivative Financial Instruments Narrative (Details) |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Jun. 30, 2012
USD ($)
|
|
Derivative [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (170,478,000) | $ (229,327,000) | |||
Long-term Debt | 319,477,000 | ||||
Secured Debt [Member] | |||||
Derivative [Line Items] | |||||
Long-term Debt | 619,477,000 | 305,292,000 | |||
Accumulated Other Comprehensive Income, Net Unrealized Gain (Loss) on Nonderivative Instruments [Member] | |||||
Derivative [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (14,380,000) | $ (14,380,000) | $ (14,380,000) | $ (14,380,000) | |
Number of Counterparties [Member] | |||||
Derivative [Line Items] | |||||
Description of Derivative Activity Volume | three | three | |||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | |||||
Derivative [Line Items] | |||||
Long-term Debt | $ 254,100,000 | ||||
Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Number of Interest Rate Derivatives Held | 1 | 6 | |||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 700,000 | ||||
Derivative, Notional Amount | $ 214,000,000 | $ 200,000,000 | |||
Derivative, Fixed Interest Rate | 1.42% | 1.00% | |||
Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Number of Interest Rate Derivatives Held | 3 | ||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 300,000 | ||||
Derivative, Cap Interest Rate | 2.00% | 2.00% | |||
Derivative, Notional Amount | $ 100,000,000 | $ 100,000,000 | |||
Derivative Purchase Price | $ 1,700,000 | ||||
Interest Rate Cap [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Number of Instruments Held | 2 | ||||
Forward Contracts [Member] | |||||
Derivative [Line Items] | |||||
Description of Derivative Activity Volume | 54 | ||||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Minimum [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 158,000 | ||||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | $ 39,500,000 |
Derivative Financial Instruments Effect of Cash Flow Derivatives on the Balance Sheet and Income Statement, Before Tax (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Interest Rate Swap Contracts [Abstract] | |||
Loss Reclassified from AOCI into Income (Effective Portion) | $ (916) | $ (1,322) | $ (1,639) |
Interest Rate Swap [Member] | |||
Interest Rate Swap Contracts [Abstract] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 768 | (1,163) | 367 |
Interest Rate Swap [Member] | Interest Expense [Member] | |||
Interest Rate Swap Contracts [Abstract] | |||
Loss Reclassified from AOCI into Income (Effective Portion) | (706) | (1,296) | (1,639) |
Loss Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 |
Interest Rate Cap [Member] | |||
Interest Rate Swap Contracts [Abstract] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | (183) | (605) | (244) |
Interest Rate Cap [Member] | Interest Expense [Member] | |||
Interest Rate Swap Contracts [Abstract] | |||
Loss Reclassified from AOCI into Income (Effective Portion) | (210) | (27) | 0 |
Loss Recognized in Income on Derivative (Ineffective Portion) | $ 0 | $ (1) | $ 0 |
Derivative Financial Instruments Derivatives Not Designated as Hedging Relationships (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Other Income (Expense) [Member] | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (6,281) | $ 537 | $ (3,145) |
Interest Rate Cap [Member] | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | $ (274) | $ 129 | $ 0 |
Defined Benefit Pension Plans Change in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1, | $ 97,261 | $ 98,767 | |
Service cost | 3,968 | 3,472 | $ 4,572 |
Interest cost | 2,264 | 2,573 | 2,380 |
Actuarial (gain) loss | (2,351) | 7,733 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 3,136 | 9,481 | |
Foreign currency exchange rate changes | 13,014 | (4,386) | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (858) | 14 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (175) | (1,431) | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | 833 | 0 | |
Benefit obligation at December 31, | 110,820 | 97,261 | 98,767 |
Fair value of plan assets at January 1, | 10,215 | 9,662 | |
Actual return on plan assets | 786 | 604 | |
Company contributions | 399 | 348 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 383 | 370 | |
Foreign currency exchange rate changes | 984 | (29) | |
Defined Benefit Plan, Plan Assets, Period Increase (Decrease) | 833 | 0 | |
Fair value of plan assets at December 31, | 12,834 | 10,215 | $ 9,662 |
Net pension benefit obligation at fair value | $ 97,986 | $ 87,046 |
Defined Benefit Pension Plans Schedule of Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Plan Assets in Other Long Term Assets | $ 991 | $ 654 |
Current Portion of Pension Plan Liability in Wages and Benefits Payable | 3,260 | 3,202 |
Long-term portion of pension plan liability | 95,717 | 84,498 |
Net Pension Plan Benefit Liability | $ 97,986 | $ 87,046 |
Defined Benefit Pension Plans Schedule of Net Periodic Benefit Cost Not yet Recognized (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Defined Benefit Plan [Abstract] | ||
Net actuarial loss | $ 25,379 | $ 26,767 |
Net prior service cost | 641 | 619 |
Amount included in accumulated other comprehensive income | $ 26,020 | $ 27,386 |
Defined Benefit Pension Plans Schedule of Amounts Recognized in Other Comprehensive Income (loss), pre-tax (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (gain) loss | $ (3,209) | $ 6,316 | $ (6,894) |
Settlement/ curtailment loss | 2 | (1,343) | (336) |
OCI, Defined Benefit Plan, Curtailment | 586 | 0 | 0 |
Plan asset (gain) loss | (192) | (64) | 343 |
Amortization of net actuarial gain (loss) | (2,308) | (1,351) | (1,979) |
Amortization of prior service cost | (62) | (58) | (59) |
Other | 0 | 4 | (46) |
Other comprehensive (income) loss | $ (5,183) | $ 3,504 | $ (8,971) |
Defined Benefit Pension Plans Schedule of Net Periodic Pension Benefit Costs (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plan [Abstract] | |||
Service cost | $ 3,968 | $ 3,472 | $ 4,572 |
Interest cost | 2,264 | 2,573 | 2,380 |
Expected Return on Plan Assets | (594) | (540) | (502) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 62 | 58 | 59 |
Amortization of actuarial net (gains) loss | 2,308 | 1,351 | 1,979 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (2) | 1,343 | 375 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | (586) | 0 | 46 |
Defined Benefit Plan, Other Cost (Credit) | 0 | (3) | (1) |
Net Periodic Benefit Cost | $ 7,420 | $ 8,254 | $ 8,908 |
Defined Benefit Pension Plans Schedule of Significant Actuarial Weighted Average Assumptions Used in Determining the Benefit Obligation and Net Periodic Benefit Cost (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plan [Abstract] | |||
Discount rate | 2.21% | 2.18% | 2.59% |
Expected annual rate of compensation increase | 3.64% | 3.65% | 3.60% |
Discount rate | 2.18% | 2.59% | 2.36% |
Expected rate of return on plan assets | 5.58% | 5.29% | 5.45% |
Expected annual rate of compensation increase | 3.65% | 3.60% | 3.37% |
Defined Benefit Pension Plans Schedule of Accumulated Benefit Obligation in Excess of the Fair Value of Plan Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Defined Benefit Plan [Abstract] | ||
Projected benefit obligation | $ 106,486 | $ 94,110 |
Accumulated benefit obligation | 97,546 | 84,448 |
Fair value of plan assets | $ 7,509 | $ 6,410 |
Defined Benefit Pension Plans Fair Values of Plan Investments by Asset Category (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 12,834 | $ 10,215 | $ 9,662 |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 789 | 783 | |
Guaranteed Insurance Contract, Type of Benefit [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8,384 | 7,011 | |
Securities (Assets) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 3,661 | 2,421 | |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 789 | 783 | |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 789 | 783 | |
Fair Value, Inputs, Level 1 [Member] | Guaranteed Insurance Contract, Type of Benefit [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Securities (Assets) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 12,045 | 9,432 | 8,867 |
Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Guaranteed Insurance Contract, Type of Benefit [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8,384 | 7,011 | 7,089 |
Fair Value, Inputs, Level 3 [Member] | Securities (Assets) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 3,661 | $ 2,421 | $ 1,778 |
Defined Benefit Pension Plans Level 3 Plan Asset Rollforward (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 12,834 | $ 10,215 | $ 9,662 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 786 | 604 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 984 | (29) | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 12,045 | 9,432 | 8,867 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 780 | 640 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchases, Sales, and Settlements | 9 | (30) | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Assets Transferred into (out of) Level 3 | 833 | 0 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 991 | (45) | |
Guaranteed Insurance Contract, Type of Benefit [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8,384 | 7,011 | |
Guaranteed Insurance Contract, Type of Benefit [Domain] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8,384 | 7,011 | 7,089 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 257 | 235 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchases, Sales, and Settlements | 102 | 54 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Assets Transferred into (out of) Level 3 | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 1,014 | (367) | |
Securities (Assets) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 3,661 | 2,421 | |
Securities (Assets) [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 3,661 | 2,421 | $ 1,778 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 523 | 405 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchases, Sales, and Settlements | (93) | (84) | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Assets Transferred into (out of) Level 3 | 833 | 0 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | $ (23) | $ 322 |
Defined Benefit Pension Plans Expected Future Annual Benefit Payments (Details) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Defined Benefit Plan [Abstract] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 3,801 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 3,124 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 3,744 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 4,329 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 4,511 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 28,121 |
Defined Benefit Pension Plans Accumulated Benefit Obligation Additional Details (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Defined Benefit Plan [Abstract] | |||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | $ 1.6 | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 101.4 | $ 87.2 |
Defined Benefit Pension Plans Significant Actuarial Weighted Assumptions (Discount Rate) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial (gain) loss | $ 2,351 | $ (7,733) | |
Discount rate | 2.21% | 2.18% | 2.59% |
Defined Benefit Plan, Assumptions Used in Calculation, Description | we use two discount rates with consideration of the duration of the plans, using a hypothetical yield curve developed from euro-denominated AA-rated corporate bond issues. These bond issues are partially weighted for market value, with minimum amounts outstanding of €500 million for bonds with less than 10 years to maturity and €50 million for bonds with 10 or more years to maturity, and excluding the highest and lowest yielding 10% of bonds within each maturity group. | ||
Percentage of Benefit Plans Denominated in Euro [Domain] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of benefit plans denominated in euro | 93% | ||
Shorter duration euro denominated defined benefit plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 1.00% | ||
Longer duration euro denominated defined benefit plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 1.75% |
Stock-Based Compensation Stock-Based Compensation Expense and Related Tax Benefit (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation [Abstract] | |||
Stock options | $ 2,695 | $ 2,357 | $ 2,648 |
Restricted stock units | 17,738 | 14,723 | 10,735 |
Unrestricted stock awards | 974 | 955 | 706 |
Phantom stock units | 1,747 | 1,077 | 0 |
Total stock-based compensation | 23,154 | 19,112 | 14,089 |
Related tax benefit | $ 5,034 | $ 4,927 | $ 4,228 |
Stock-Based Compensation Stock Option Summary (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
[Line Items] | ||||
Outstanding, beginning balance, Number | 959 | 1,180 | 1,123 | |
Outstanding, beginning balance, Weighted Average Exercise Price Per Share | $ 45.64 | $ 48.31 | $ 51.90 | |
Outstanding, beginning balance, Aggregate Intrinsic Value | $ 19,125 | $ 405 | $ 1,676 | |
Granted, Number | 135 | 191 | 291 | |
Granted, Weighted Average Exercise Price Per Share | $ 65.94 | $ 40.40 | $ 35.25 | |
Granted, Weighted Average Grant Date Fair Value | $ 21.99 | $ 13.27 | $ 12.09 | |
Exercised, Number | (41) | (58) | (24) | |
Exercised, Weighted Average Exercise Price Per Share | $ 39.92 | $ 37.00 | $ 36.05 | |
Exercised, Aggregate Intrinsic Value | $ 1,071 | $ 742 | $ 26 | |
Forfeited, Number | (35) | (36) | (17) | |
Forfeited, Weighted Average Exercise Price Per Share | $ 47.38 | $ 35.29 | $ 37.47 | |
Expired, Number | (62) | (318) | (193) | |
Expired, Weighted Average Exercise Price Per Share | $ 70.12 | $ 55.13 | $ 52.17 | |
Outstanding, ending balance, Number | 956 | 959 | 1,180 | 1,123 |
Outstanding, ending balance, Weighted Average Exercise Price Per Share | $ 47.10 | $ 45.64 | $ 48.31 | $ 51.90 |
Outstanding, ending balance, Weighted Average Remaining Contractual Term | 6 years 3 months 22 days | 6 years 7 months | 5 years 8 months 22 days | 4 years 4 months 22 days |
Outstanding, ending balance, Aggregate Intrinsic Value | $ 21,965 | $ 19,125 | $ 405 | $ 1,676 |
Exercisable, Number | 640 | |||
Exercisable, Weighted Average Exercise Price Per Share | $ 46.08 | |||
Exercisable, Weighted Average Remaining Contractual Term | 5 years 3 months 22 days | |||
Exercisable, Aggregate Intrinsic Value | $ 15,934 | |||
Expected to Vest [Member] | ||||
[Line Items] | ||||
Outstanding, ending balance, Number | 316 | |||
Outstanding, ending balance, Weighted Average Exercise Price Per Share | $ 49.17 | |||
Outstanding, ending balance, Weighted Average Remaining Contractual Term | 8 years 4 months 22 days | |||
Outstanding, ending balance, Aggregate Intrinsic Value | $ 6,031 |
Stock-Based Compensation Stock Option Black Scholes Option Pricing Model Assumptions (Details) - Employee Stock Option [Member] - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Expected volatility | 32.50% | 33.50% | 34.30% |
Risk-free interest rate | 2.00% | 1.30% | 1.70% |
Expected term (years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Granted, Weighted Average Grant Date Fair Value | $ 21.99 | $ 13.27 | $ 12.09 |
Stock-Based Compensation Restricted Stock Units Summary (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
[Line Items] | |||
Outstanding, beginning balance, Number | 701 | 756 | 682 |
Outstanding, Weighted Average Grant Date Fair Value | $ 47.68 | $ 38.04 | |
Granted, Number | 273 | 306 | 434 |
Granted, Weighted-average grant date fair value | $ 50.95 | $ 41.58 | $ 35.09 |
Forfeited, Number | (46) | (49) | (64) |
Forfeitures, Weighted Average Grant Date Fair Value | $ 48.56 | ||
Outstanding, ending balance, Number | 556 | 701 | 756 |
Vested and Released [Member] | |||
[Line Items] | |||
Issued, Number | (372) | (312) | (296) |
Released, Weighted Average Grant Date Fair Value | $ 36.93 | ||
Released, Aggregate Intrinsic Value | $ 14,219 | $ 11,944 | $ 12,204 |
Vested but Not Released [Member] | |||
[Line Items] | |||
Issued, Number | (142) | ||
Released, Aggregate Intrinsic Value | $ 9,650 | ||
Expected to Vest [Member] | |||
[Line Items] | |||
Outstanding, ending balance, Number | 350 | ||
Expected to vest, Aggregate Intrinsic Value | $ 23,877 |
Stock-Based Compensation Long-Term Performance Restricted Stock Unit Award Monte Carlo Pricing Model Assumptions (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, Weighted-average grant date fair value | $ 50.95 | $ 41.58 | $ 35.09 |
Long Term Performance Restricted Stock Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 28.00% | 30.00% | 30.10% |
Expected term (years) | 1.00% | 0.70% | 0.70% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year 8 months 12 days | 1 year 9 months 10 days | 2 years 1 month 10 days |
Granted, Weighted-average grant date fair value | $ 77.75 | $ 44.92 | $ 33.48 |
Stock-Based Compensation Phantom Stock Units Summary (Details) - Phantom Share Units (PSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 47.28 | $ 40.11 |
Outstanding, beginning balance, Number | 62 | 0 |
Granted, Number | 32 | 63 |
Granted, Weighted-average grant date fair value | $ 65.55 | $ 40.11 |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | (20) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 47.02 | |
Forfeited, Number | (11) | (1) |
Outstanding, ending balance, Number | 63 | 62 |
Deferred Compensation Share-based Arrangements, Liability, Current | $ 1.7 | $ 1.0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 40.11 | |
Expected to Vest [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning balance, Number | 57 | |
Outstanding, ending balance, Number | 63 | 57 |
Stock-Based Compensation Stock-Based Compensation Narrative (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017
USD ($)
shares
|
Dec. 31, 2016
USD ($)
shares
|
Dec. 31, 2015
shares
|
|
Employee Stock Option [Member] | |||
[Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 2.9 | ||
Unrecognized compensation expense, Expected weighted average period for recognition | 1 year 6 months | ||
Stock Options Expiration Period | 10 years | ||
Award vesting rights | Options generally become exercisable in three equal annual installments beginning one year from the date of grant | ||
Restricted Stock Units (RSUs) [Member] | |||
[Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 21.7 | ||
Unrecognized compensation expense, Expected weighted average period for recognition | 1 year 7 months 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Granted, Number | 273,000 | 306,000 | 434,000 |
Phantom Share Units (PSUs) [Member] | |||
[Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 2.8 | ||
Unrecognized compensation expense, Expected weighted average period for recognition | 1 year 8 months 12 days | ||
Deferred Compensation Share-based Arrangements, Liability, Current | $ | $ 1.7 | $ 1.0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Granted, Number | 32,000 | 63,000 | |
Employee Stock [Member] | |||
[Line Items] | |||
Number of shares available for future grant under the Stock Incentive Plan | 340,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 5.00% | ||
ESPP, maximum percentage of employee salary eligible for participation | 10.00% | ||
Stock Incentive Plan [Member] | |||
[Line Items] | |||
Number of shares authorized for issuance under the Stock Incentive Plan | 10,473,956 | ||
Number of shares available for future grant under the Stock Incentive Plan | 4,656,327 | ||
Reduction in stock options available for issue | 1 | ||
Authorized share reserve reduction in awards other than stock options or share appreciation rights available for issue, conversion ratio | 1.7 |
Defined Contribution Bonus and Profit Sharing Plans Schedule of Defined Contribution Plans Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plans expense | $ 11,709 | $ 7,941 | $ 6,579 |
Defined Contribution Bonus and Profit Sharing Plans Schedule of Bonus and Profit Sharing Plans Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Bonus and Profit Sharing Plans and Awards Expense | $ 40,005 | $ 43,377 | $ 14,192 |
Defined Contribution Bonus and Profit Sharing Plans Narrative (Details) - Employer Match Percentage [Member] |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Percentage of employer match into employee savings plan. | 75.00% |
Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% |
Income Taxes Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ 7,679 | $ 20,490 | $ 5,033 |
State and local | 3,841 | 2,708 | 1,633 |
Foreign | 12,139 | 12,586 | 13,945 |
Total current | 23,659 | 35,784 | 20,611 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | 40,340 | 10,805 | 3,951 |
State and local | (1,144) | 1,160 | (972) |
Foreign | 3,480 | (24,815) | (41,893) |
Total deferred | 42,676 | (12,850) | (38,914) |
Change in valuation allowance | 7,991 | 26,640 | 40,402 |
Total provision for income taxes | $ 74,326 | $ 49,574 | $ 22,099 |
Income Taxes Schedule of Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income (loss) before income taxes | |||
Domestic | $ 220,342 | $ 196,750 | $ 115,526 |
Foreign | (85,767) | (112,123) | (78,424) |
Income before income taxes | 134,575 | 84,627 | 37,102 |
Expected federal income tax provision (benefit) | 47,101 | 29,619 | 12,986 |
Change in valuation allowance | 7,991 | 26,640 | 40,402 |
Stock-based compensation | (1,225) | 2,762 | 939 |
Foreign earnings | (22,045) | (12,584) | (33,364) |
Tax credits | (777) | (7,471) | (5,257) |
Uncertain tax positions, including interest and penalties | (7,637) | 3,817 | 4,274 |
Change in tax rates | 41,125 | 67 | 312 |
State income tax provision (benefit), net of federal effect | 4,986 | 2,806 | (14) |
U.S. tax provision on foreign earnings | 33 | 997 | 203 |
Domestic production activities deduction | (2,534) | (2,424) | (1,100) |
Local foreign taxes | 2,324 | 2,914 | 1,450 |
Transaction costs | 2,643 | 0 | 0 |
Other, net | 2,341 | 2,431 | 1,268 |
Total provision for income taxes | $ 74,326 | $ 49,574 | $ 22,099 |
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Deferred tax assets | |||||||||||
Loss carryforwards | $ 218,420 | [1] | $ 194,381 | ||||||||
Tax Credit Carryforward, Amount | 58,616 | [2] | 53,323 | ||||||||
Accrued expenses | 23,752 | 36,336 | |||||||||
Pension plan benefits expense | 18,262 | 16,822 | |||||||||
Warranty reserves | 11,170 | 21,306 | |||||||||
Depreciation and amortization | 5,736 | 15,698 | |||||||||
Equity compensation | 5,352 | 6,924 | |||||||||
Inventory valuation | 2,554 | 3,086 | |||||||||
Deferred tax asset, deferred revenue | 2,431 | 4,896 | |||||||||
Other deferred tax assets, net | 16,606 | 13,621 | |||||||||
Total deferred tax assets | 362,899 | 366,393 | |||||||||
Valuation allowance | (285,784) | (249,560) | $ (235,339) | $ (257,728) | |||||||
Total deferred tax assets, net of valuation allowance | 77,115 | $ 10,000 | 116,833 | ||||||||
Deferred tax liabilities | |||||||||||
Depreciation and amortization | (23,135) | (19,995) | |||||||||
Tax effect of accumulated translation | (303) | (100) | |||||||||
Other deferred tax liabilities, net | (5,231) | (5,698) | |||||||||
Total deferred tax liabilities | (28,669) | (25,793) | |||||||||
Net deferred tax assets | 48,446 | $ 91,040 | |||||||||
Deferred Tax Assets, Tax Credit Carryforwards, General Business | 3,700 | ||||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 3,300 | ||||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 49,300 | ||||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Other | 10,700 | ||||||||||
U.S. federal | |||||||||||
Deferred tax liabilities | |||||||||||
Loss carryforwards by Jurisdiction | [1] | 30,900 | |||||||||
LUXEMBOURG | |||||||||||
Deferred tax liabilities | |||||||||||
Loss carryforwards by Jurisdiction | [1] | $ 592,600 | |||||||||
|
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Taxes [Abstract] | |||
Unrecognized tax benefits, beginning of period | $ 57,626 | $ 54,880 | $ 28,146 |
Gross increase to positions in prior years | 3,367 | 1,164 | 6,461 |
Gross decrease to positions in prior years | (5,559) | (612) | (2,512) |
Gross increases to current period tax positions | 6,453 | 5,071 | 25,741 |
Audit settlements | (5,169) | (1,116) | 0 |
Decrease related to lapsing of statute of limitations | (3,445) | (860) | (908) |
Effect of change in exchange rates | 3,429 | (901) | (2,048) |
Unrecognized tax benefits, end of period | 56,702 | 57,626 | 54,880 |
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate | 55,312 | 56,411 | 53,602 |
Net interest and penalties expense (benefit) | (543) | 193 | $ 880 |
Accrued interest | 2,706 | 2,473 | |
Accrued penalties | $ 2,426 | $ 2,329 |
Income Taxes Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | $ 285,784 | $ 249,560 | $ 235,339 | $ 257,728 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (7,991) | (26,640) | (40,402) | |
Other adjustments [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 28,233 | (12,419) | (62,791) | |
Additions Charged to Costs and Expenses [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 7,991 | $ 26,640 | $ 40,402 |
Income Taxes Income Tax Examination by Jurisdiction (Details) |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
U.S. federal | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2013 |
FRANCE | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2012 |
GERMANY | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2010 |
BRAZIL | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2011 |
UNITED KINGDOM | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2012 |
ITALY | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2011 |
Income Taxes Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | 60 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2022 |
Dec. 30, 2017 |
Dec. 31, 2014 |
|
Effective Income Tax Rate Reconciliation, Percent | 55.20% | 58.60% | 59.60% | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |||||
Deferred Tax Assets, Valuation Allowance | $ 285,784 | $ 249,560 | $ 235,339 | $ 257,728 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 3,300 | |||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 49,300 | |||||
Deferred Tax Assets, Tax Credit Carryforwards, General Business | 3,700 | |||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 25.00% | |||||
Deferred Tax Assets, Net of Valuation Allowance | 77,115 | 116,833 | $ 10,000 | |||
Undistributed Earnings of Foreign Subsidiaries and Foreign Corporate Joint Ventures [Member] | ||||||
Undistributed Earnings of Foreign Subsidiaries | $ 5,200 | $ 4,900 | ||||
Tax Cuts and Jobs Act [Domain] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 30,400 |
Commitments and Contingencies Rental Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Long-term Purchase Commitment [Line Items] | |||
Rental expense | $ 14,824 | $ 14,232 | $ 15,524 |
Commitments and Contingencies Future Minimum Lease Payment Schedule (Details) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2018 | $ 15,353 |
2019 | 10,274 |
2020 | 6,556 |
2021 | 3,732 |
2022 | 2,888 |
Beyond 2022 | 9,799 |
Future minimum lease payments | $ 48,602 |
Commitments and Contingencies Available Lines of Credit, Outstanding Standby Letter of Credits, and Bonds (Details) - USD ($) $ in Thousands |
Jan. 05, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Jun. 23, 2015 |
|||||
---|---|---|---|---|---|---|---|---|---|
Line of Credit Facility [Line Items] | |||||||||
Multicurrency revolving line of credit | $ 500,000 | $ 500,000 | |||||||
Credit Facility [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Multicurrency revolving line of credit | [1] | $ 500,000 | $ 500,000 | ||||||
Long-term borrowings | [1] | (125,414) | (97,167) | ||||||
Standby LOCs issued and outstanding | [1] | (31,881) | (46,103) | ||||||
Net available for additional borrowings and LOCs | [1] | 218,119 | 203,897 | ||||||
Unsecured Multicurrency Revolving Lines of Credit [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Multicurrency revolving line of credit | 110,477 | 91,809 | |||||||
Standby LOCs issued and outstanding | (21,030) | (21,734) | |||||||
Short-term borrowings(2) | [2] | (916) | (69) | ||||||
Net available for additional borrowings and LOCs | 88,531 | 70,006 | |||||||
Surety Bond [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Unsecured surety bonds in force | 51,344 | 48,221 | |||||||
Line of Credit [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Long-term borrowings | (125,414) | (97,167) | |||||||
Net available for additional borrowings and LOCs | [1] | $ 342,705 | $ 356,730 | ||||||
|
Commitments and Contingencies Warranty Account Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Beginning balance | $ 43,302 | $ 54,512 | |
New product warranties | 7,849 | 7,987 | |
Other adjustments and expirations | (393) | 5,933 | |
Claims activity | (18,094) | (24,364) | |
Effect of change in exchange rates | 2,198 | (766) | |
Ending balance | 34,862 | 43,302 | $ 54,512 |
Less: current portion of warranty | 21,150 | 24,874 | |
Long-term warranty | 13,712 | 18,428 | |
Warranty Expense | $ (2,054) | $ 13,920 | $ 45,984 |
Commitments and Contingencies Extended Warranty (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Beginning balance | $ 114,300 | |
Ending balance | 77,000 | $ 114,300 |
Less: current portion of unearned revenue for extended warranty | 41,438 | 64,976 |
Extended Warranty [Member] | ||
Beginning balance | 31,549 | 33,654 |
Unearned revenue for new extended warranties | 1,186 | 1,437 |
Unearned revenue recognized | (4,247) | (3,594) |
Effect of change in exchange rates | 154 | 52 |
Ending balance | 28,642 | 31,549 |
Less: current portion of unearned revenue for extended warranty | 4,220 | 4,226 |
Long-term unearned revenue for extended warranty within Other long-term obligations | $ 24,422 | $ 27,323 |
Commitments and Contingencies Health Benefit Plan Costs (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Plan costs | $ 30,521 | $ 27,276 | $ 25,355 |
Commitments and Contingencies Incurred But Not Reported Health Benefit Cost Accrual (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
IBNR accrual | $ 2,664 | $ 2,441 |
Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2015 |
Jan. 05, 2018 |
Dec. 31, 2016 |
Jun. 23, 2015 |
||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | $ 500,000 | ||||||
Warranty charge | $ 29,400 | |||||||
Insurance Recoveries | $ 8,000 | |||||||
Credit Facility [Member] | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | [1] | 218,119 | $ 203,897 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | [1] | $ 500,000 | $ 500,000 | |||||
|
Restructuring Expected Cost, Costs Recognized, and Costs to be Recognized - 2016 Projects (Details) - USD ($) $ in Thousands |
3 Months Ended | 4 Months Ended | 12 Months Ended | 24 Months Ended | |||
---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2016 |
|
Restructuring Cost and Reserve [Line Items] | |||||||
Costs incurred and charged to expense | $ 6,418 | $ 49,090 | $ (7,263) | ||||
2016 Projects [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 60,212 | ||||||
Costs incurred and charged to expense | $ 7,800 | $ 40,000 | $ 47,794 | 6,418 | |||
Restructuring and Related Cost, Expected Cost Remaining | 6,000 | ||||||
2014 Project [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Costs incurred and charged to expense | $ 48,500 | ||||||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||||||
Employee Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Costs incurred and charged to expense | 169 | ||||||
Employee Severance [Member] | 2016 Projects [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 39,855 | ||||||
Costs incurred and charged to expense | 39,686 | 169 | |||||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||||||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Costs incurred and charged to expense | (2,297) | ||||||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | 2016 Projects [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 4,922 | ||||||
Costs incurred and charged to expense | 7,219 | (2,297) | |||||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||||||
Other Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Costs incurred and charged to expense | 8,546 | ||||||
Other Restructuring [Member] | 2016 Projects [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 15,435 | ||||||
Costs incurred and charged to expense | 889 | 8,546 | |||||
Restructuring and Related Cost, Expected Cost Remaining | 6,000 | ||||||
Electricity Operating Segment [Member] | 2016 Projects [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 10,525 | ||||||
Costs incurred and charged to expense | 8,827 | 198 | |||||
Restructuring and Related Cost, Expected Cost Remaining | 1,500 | ||||||
Gas Operating Segment [Member] | 2016 Projects [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 31,181 | ||||||
Costs incurred and charged to expense | 23,968 | 5,213 | |||||
Restructuring and Related Cost, Expected Cost Remaining | 2,000 | ||||||
Water Operating Segment [Member] | 2016 Projects [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 15,761 | ||||||
Costs incurred and charged to expense | 13,061 | 700 | |||||
Restructuring and Related Cost, Expected Cost Remaining | 2,000 | ||||||
Corporate, Non-Segment [Member] | 2016 Projects [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 2,745 | ||||||
Costs incurred and charged to expense | $ 1,938 | 307 | |||||
Restructuring and Related Cost, Expected Cost Remaining | $ 500 |
Restructuring Related Balance Sheet Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | $ 47,970 | ||
Costs incurred and charged to expense | 6,418 | $ 49,090 | $ (7,263) |
Cash receipts (payments) | (17,402) | ||
Net assets disposed and impaired | 1,407 | ||
Effect of change in exchange rates | 4,546 | ||
Restructuring Reserve - Ending Balance | 40,125 | 47,970 | |
Employee severance costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | 45,368 | ||
Costs incurred and charged to expense | 169 | ||
Cash receipts (payments) | (12,423) | ||
Net assets disposed and impaired | 0 | ||
Effect of change in exchange rates | 4,540 | ||
Restructuring Reserve - Ending Balance | 37,654 | 45,368 | |
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | 0 | ||
Costs incurred and charged to expense | (2,297) | ||
Cash receipts (payments) | 3,704 | ||
Net assets disposed and impaired | 1,407 | ||
Effect of change in exchange rates | 0 | ||
Restructuring Reserve - Ending Balance | 0 | 0 | |
Other restructuring costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | 2,602 | ||
Costs incurred and charged to expense | 8,546 | ||
Cash receipts (payments) | (8,683) | ||
Net assets disposed and impaired | 0 | ||
Effect of change in exchange rates | 6 | ||
Restructuring Reserve - Ending Balance | $ 2,471 | $ 2,602 |
Restructuring Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred and charged to expense | $ 6,418 | $ 49,090 | $ (7,263) |
Restructuring Reserve, Current | 32,500 | 26,200 | |
Restructuring Reserve, Noncurrent | $ 7,600 | $ 21,800 |
Shareholders' Equity Preferred Stock Information (Details) - $ / shares shares in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Stockholders' Equity Note [Abstract] | |||
Preferred stock, shares authorized | 10,000 | 10,000 | |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Preferred Stock, No Par Value |
Shareholders' Equity Share Repurchase Plan Information (Details) - USD ($) shares in Thousands, $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Feb. 23, 2017 |
|
Share Repurchase Plan [Abstract] | ||
Stock Repurchased During Period, Shares | 0 | |
Stock Repurchase Program, Authorized Amount | $ 50 |
Shareholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | $ (229,327) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 58,849 | $ (28,720) | $ (65,547) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | (170,478) | (229,327) | |
Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | (229,327) | (200,607) | (135,060) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 56,568 | (30,848) | (69,245) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,281 | 2,128 | 3,698 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 58,849 | (28,720) | (65,547) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | (170,478) | (229,327) | (200,607) |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | (182,986) | (158,009) | (85,080) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 53,854 | (23,570) | (73,891) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 484 | (1,407) | 962 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 54,338 | (24,977) | (72,929) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | (128,648) | (182,986) | (158,009) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | 43 | 318 | (768) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 360 | (1,087) | 76 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 563 | 812 | 1,010 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 923 | (275) | 1,086 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | 966 | 43 | 318 |
Accumulated Other Comprehensive Income, Net Unrealized Gain (Loss) on Nonderivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | (14,380) | (14,380) | (14,380) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | (14,380) | (14,380) | (14,380) |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | (32,004) | (28,536) | (34,832) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 2,354 | (6,191) | 4,570 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,234 | 2,723 | 1,726 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 3,588 | (3,468) | 6,296 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | $ (28,416) | $ (32,004) | $ (28,536) |
Shareholders' Equity Schedule of Other Comprehensive Income (Loss) Tax Effect (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Before-tax amount [Abstract] | |||
Foreign currency translation adjustment | $ 54,218 | $ (23,280) | $ (74,219) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 484 | (1,407) | 962 |
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | 585 | (1,768) | 123 |
Net hedging (gain) loss reclassified into net income (loss) | 916 | 1,322 | 1,639 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax | 3,401 | (6,256) | 6,512 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 1,782 | 2,752 | 2,459 |
Total other comprehensive income (loss), before tax | 61,386 | (28,637) | (62,524) |
Tax (provision) benefit [Abstract] | |||
Foreign currency translation adjustment | (364) | (290) | 328 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 0 | 0 | 0 |
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | (225) | 681 | (47) |
Net hedging (gain) loss reclassified into net income (loss) | (353) | (510) | (629) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, Tax | (1,047) | 65 | (1,942) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | (548) | (29) | (733) |
Total other comprehensive income (loss) tax (provision) benefit | (2,537) | (83) | (3,023) |
Net-of-tax amount | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 53,854 | (23,570) | (73,891) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 484 | (1,407) | 962 |
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | 360 | (1,087) | 76 |
Net hedging (gain) loss reclassified into net income (loss) | 563 | 812 | 1,010 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | 2,354 | (6,191) | 4,570 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 1,234 | 2,723 | 1,726 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ 58,849 | $ (28,720) | $ (65,547) |
Fair Values of Financial Instruments Schedule of Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 22, 2017 |
Jan. 01, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|---|
Assets | |||||
Cash and cash equivalents | $ 176,274 | $ 133,565 | $ 131,018 | ||
Restricted Cash | $ 310,300 | ||||
Liabilities | |||||
Senior Notes | $ 300,000 | ||||
Line of Credit [Member] | |||||
Liabilities | |||||
Multicurrency revolving line of credit | 125,414 | 97,167 | |||
Reported Value Measurement [Member] | |||||
Assets | |||||
Foreign exchange forward contracts | 41 | 169 | |||
Cash and cash equivalents | 176,274 | 133,565 | |||
Restricted Cash | 311,061 | 0 | |||
Liabilities | |||||
Senior Notes | 300,000 | 0 | |||
Interest rate swaps, at fair value | 0 | 934 | |||
Foreign exchange forwards, liability, at fair value | 289 | 449 | |||
Reported Value Measurement [Member] | Line of Credit [Member] | |||||
Liabilities | |||||
Multicurrency revolving line of credit | 125,414 | 97,167 | |||
Reported Value Measurement [Member] | USD Denominated Term Loan [Member] | |||||
Liabilities | |||||
Term loans | 194,063 | 208,125 | |||
Estimate of Fair Value Measurement [Member] | |||||
Assets | |||||
Foreign exchange forward contracts | 41 | 169 | |||
Cash and cash equivalents, at fair value | 176,274 | 133,565 | |||
Restricted Cash | 311,061 | 0 | |||
Liabilities | |||||
Senior Notes | 301,125 | 0 | |||
Interest rate swaps, at fair value | 0 | 934 | |||
Foreign exchange forwards, liability, at fair value | 289 | 449 | |||
Estimate of Fair Value Measurement [Member] | Line of Credit [Member] | |||||
Liabilities | |||||
Multicurrency revolving line of credit, Fair Value of Amount Outstanding | 124,100 | 95,906 | |||
Estimate of Fair Value Measurement [Member] | USD Denominated Term Loan [Member] | |||||
Liabilities | |||||
Term loans, at fair value | 192,295 | 205,676 | |||
Interest Rate Swap [Member] | Reported Value Measurement [Member] | |||||
Assets | |||||
Derivative Asset, Noncurrent | 2,370 | 1,830 | |||
Interest Rate Swap [Member] | Estimate of Fair Value Measurement [Member] | |||||
Assets | |||||
Interest Rate Derivative Assets, at Fair Value | 2,370 | 1,830 | |||
Interest Rate Cap [Member] | Reported Value Measurement [Member] | |||||
Assets | |||||
Derivative Asset, Noncurrent | 489 | 946 | |||
Interest Rate Cap [Member] | Estimate of Fair Value Measurement [Member] | |||||
Assets | |||||
Interest Rate Derivative Assets, at Fair Value | $ 489 | $ 946 |
Segment Information Information By Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 550,776 | $ 486,747 | $ 503,082 | $ 477,592 | $ 495,713 | $ 506,859 | $ 513,024 | $ 497,590 | $ 2,018,197 | $ 2,013,186 | $ 1,883,533 |
Gross Profit | $ 174,751 | $ 165,318 | $ 177,860 | $ 157,225 | $ 156,663 | $ 170,749 | $ 169,705 | $ 163,203 | 675,154 | 660,320 | 556,685 |
Operating Income (Loss) | 151,426 | 96,211 | 52,846 | ||||||||
Income before income taxes | 134,575 | 84,627 | 37,102 | ||||||||
Depreciation and amortization | 63,215 | 68,318 | 75,993 | ||||||||
Total other income (expense) | (16,851) | (11,584) | (15,744) | ||||||||
Electricity Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,022,939 | 938,374 | 820,306 | ||||||||
Gross Profit | 318,953 | 282,677 | 225,446 | ||||||||
Operating Income (Loss) | 93,566 | 68,287 | 31,104 | ||||||||
Depreciation and amortization | 24,703 | 28,468 | 35,896 | ||||||||
Gas Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 533,624 | 569,476 | 543,805 | ||||||||
Gross Profit | 191,303 | 205,063 | 185,559 | ||||||||
Operating Income (Loss) | 74,206 | 66,813 | 67,471 | ||||||||
Depreciation and amortization | 18,800 | 20,714 | 20,288 | ||||||||
Water Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 461,634 | 505,336 | 519,422 | ||||||||
Gross Profit | 164,898 | 172,580 | 145,680 | ||||||||
Operating Income (Loss) | 44,494 | 37,266 | 19,864 | ||||||||
Depreciation and amortization | 16,092 | 18,675 | 19,459 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income (Loss) | (60,840) | (76,155) | (65,593) | ||||||||
Depreciation and amortization | $ 3,620 | $ 461 | $ 350 |
Segment Information Revenues By Region (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Revenues from External Customers [Line Items] | |||||||||||
Total revenues | $ 550,776 | $ 486,747 | $ 503,082 | $ 477,592 | $ 495,713 | $ 506,859 | $ 513,024 | $ 497,590 | $ 2,018,197 | $ 2,013,186 | $ 1,883,533 |
United States and Canada [Member] | |||||||||||
Revenues from External Customers [Line Items] | |||||||||||
Total revenues | 1,137,508 | 1,126,787 | 997,293 | ||||||||
EMEA [Member] | |||||||||||
Revenues from External Customers [Line Items] | |||||||||||
Total revenues | 672,942 | 698,106 | 701,301 | ||||||||
Other Countries [Member] | |||||||||||
Revenues from External Customers [Line Items] | |||||||||||
Total revenues | $ 207,747 | $ 188,293 | $ 184,939 |
Property, Plant, and Equipment By Location (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Property, Plant, and Equipment by Location | ||
Property, plant, and equipment, net | $ 200,768 | $ 176,458 |
UNITED STATES [Member] | ||
Schedule of Property, Plant, and Equipment by Location | ||
Property, plant, and equipment, net | 67,764 | 70,435 |
Outside United States [Member] | ||
Schedule of Property, Plant, and Equipment by Location | ||
Property, plant, and equipment, net | $ 133,004 | $ 106,023 |
Segment Information Segment Results Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||||||||||
Warranty charge | $ 29,400 | ||||||||||
Gross Profit | $ 174,751 | $ 165,318 | $ 177,860 | $ 157,225 | $ 156,663 | $ 170,749 | $ 169,705 | $ 163,203 | $ 675,154 | $ 660,320 | $ 556,685 |
Earnings per common share - Basic | $ 0.05 | $ 0.66 | $ 0.36 | $ 0.41 | $ 0.30 | $ (0.26) | $ 0.52 | $ 0.27 | $ 1.48 | $ 0.83 | $ 0.33 |
Earnings per common share - Diluted | $ 0.05 | $ 0.65 | $ 0.36 | $ 0.40 | $ 0.30 | $ (0.26) | $ 0.52 | $ 0.26 | $ 1.45 | $ 0.82 | $ 0.33 |
Unusual or Infrequent Item, or Both, Insurance Proceeds | $ 8,000 | $ 8,000 | |||||||||
Number of Operating Segments | 3 | 3 | 3 | ||||||||
Electricity Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Profit | $ 318,953 | $ 282,677 | $ 225,446 | ||||||||
Water Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Profit | $ 164,898 | $ 172,580 | 145,680 | ||||||||
Customers purchasing certain communication modules manufactured between July 2013 and December 2014 [Domain] | Water Operating Segment [Member] | Warranty Obligations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Warranty charge | $ 29,400 | ||||||||||
Earnings per common share - Basic | $ (0.47) | ||||||||||
Earnings per common share - Diluted | $ (0.47) | ||||||||||
Sales [Member] | Customer A [Member] | Electricity Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of total company revenue represented by one customer | 19.00% | 12.00% | |||||||||
Sales [Member] | Customer B [Member] | Electricity Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of total company revenue represented by one customer | 11.00% | 10.00% | |||||||||
Sales [Member] | Customer C [Member] | Electricity Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of total company revenue represented by one customer | 11.00% | ||||||||||
Sales [Member] | Threshold for Reporting Customer Concentration [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of total company revenue represented by one customer | 10.00% | 10.00% | 10.00% | ||||||||
Insurance Recovery, net of tax [Member] | Water Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earnings per common share - Basic | $ 0.13 | $ 0.13 | |||||||||
Earnings per common share - Diluted | $ 0.12 | $ 0.12 |
Business Combinations Business Combinations Narrative (Details) - USD ($) $ in Thousands |
7 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
|
Business Acquisition [Line Items] | ||
Business Combination, Consideration Transferred, Other | $ 100,000 | |
Cash Acquired from Acquisition | 18,200 | |
Acquisition related costs | 7,000 | |
Goodwill acquired | $ 59,675 | $ 59,675 |
Business Combinations Business Combinations Purchase Price Allocation (Details) - USD ($) $ in Thousands |
7 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
Jun. 01, 2017 |
|
Schedule of Assets and Liabilities Acquired in a Business Combination [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 15,118 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 2,275 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1,879 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 35,790 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 36,500 | ||
Goodwill acquired | $ 59,675 | $ 59,675 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (10,787) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities [Abstract] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | (4,645) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities [Abstract] | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 100,015 | ||
Core Developed Technology [Member] | |||
Schedule of Assets and Liabilities Acquired in a Business Combination [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 19,250 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | ||
Customer Contracts And Relationships [Member] | |||
Schedule of Assets and Liabilities Acquired in a Business Combination [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 12,230 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||
Trademarks and Trade Names [Member] | |||
Schedule of Assets and Liabilities Acquired in a Business Combination [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 4,310 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
In Process Research and Development [Member] | |||
Schedule of Assets and Liabilities Acquired in a Business Combination [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 710 |
Business Combinations Business Combinations Intangible Assets Acquired (Details) |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Core Developed Technology [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years |
Customer Contracts And Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Business Combinations Revenue and Earnings Attributed to Business Combination (Details) $ in Thousands |
7 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Business Acquisition [Line Items] | |
Revenues | $ 32,436 |
Net income (loss) | $ (2,448) |
Business Combinations Business Combinations Pro Forma Information (Details) - USD ($) $ in Thousands |
7 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Business Acquisition [Line Items] | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 32,436 | ||
Revenues | $ 2,040,309 | $ 2,072,695 | |
Net Income (loss) | $ 64,230 | $ 24,415 | |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ (2,448) |
Quarterly Results (Unaudited) Quarterly Results Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Quarterly Results [Line Items] | ||||||||||||
Revenues | $ 550,776 | $ 486,747 | $ 503,082 | $ 477,592 | $ 495,713 | $ 506,859 | $ 513,024 | $ 497,590 | $ 2,018,197 | $ 2,013,186 | $ 1,883,533 | |
Gross Profit | 174,751 | 165,318 | 177,860 | 157,225 | 156,663 | 170,749 | 169,705 | 163,203 | 675,154 | 660,320 | 556,685 | |
Net Income (Loss) Attributable to Parent | $ 1,780 | $ 25,576 | $ 14,097 | $ 15,845 | $ 11,649 | $ (9,885) | $ 19,917 | $ 10,089 | $ 57,298 | $ 31,770 | $ 12,678 | |
Earnings per common share - Basic | $ 0.05 | $ 0.66 | $ 0.36 | $ 0.41 | $ 0.30 | $ (0.26) | $ 0.52 | $ 0.27 | $ 1.48 | $ 0.83 | $ 0.33 | |
Earnings per common share - Diluted | 0.05 | $ 0.65 | $ 0.36 | $ 0.40 | $ 0.30 | $ (0.26) | $ 0.52 | $ 0.26 | $ 1.45 | $ 0.82 | $ 0.33 | |
Unusual or Infrequent Item, or Both, Insurance Proceeds | $ 8,000 | $ 8,000 | ||||||||||
Restructuring Charges | 6,418 | $ 49,090 | $ (7,263) | |||||||||
Warranty Expense | (2,054) | 13,920 | 45,984 | |||||||||
2016 Projects [Member] | ||||||||||||
Quarterly Results [Line Items] | ||||||||||||
Restructuring Charges | $ 7,800 | $ 40,000 | $ 47,794 | 6,418 | ||||||||
Water Operating Segment [Member] | ||||||||||||
Quarterly Results [Line Items] | ||||||||||||
Revenues | 461,634 | 505,336 | 519,422 | |||||||||
Gross Profit | 164,898 | $ 172,580 | $ 145,680 | |||||||||
Water Operating Segment [Member] | 2016 Projects [Member] | ||||||||||||
Quarterly Results [Line Items] | ||||||||||||
Restructuring Charges | $ 13,061 | 700 | ||||||||||
Tax Cuts and Jobs Act [Domain] | ||||||||||||
Quarterly Results [Line Items] | ||||||||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 30,400 | |||||||||||
Earnings per common share - Basic | 0.79 | |||||||||||
Earnings per common share - Diluted | $ 0.77 | |||||||||||
Insurance Recovery, net of tax [Member] | Water Operating Segment [Member] | ||||||||||||
Quarterly Results [Line Items] | ||||||||||||
Earnings per common share - Basic | $ 0.13 | $ 0.13 | ||||||||||
Earnings per common share - Diluted | $ 0.12 | $ 0.12 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 10 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 05, 2018 |
Jan. 03, 2018 |
Mar. 31, 2018 |
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Feb. 22, 2018 |
Jan. 19, 2018 |
Dec. 22, 2017 |
Feb. 23, 2017 |
Mar. 31, 2016 |
Jun. 23, 2015 |
|
Subsequent Event [Line Items] | ||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | |||||||||||||||
Business Combination, Acquisition Related Costs | $ 7,000 | |||||||||||||||
Debt Instrument, Face Amount | $ 650,000 | $ 725,000 | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | 500,000 | ||||||||||||||
Repayments of Long-term Debt | 29,063 | $ 79,119 | $ 62,998 | |||||||||||||
Senior Notes | $ 300,000 | |||||||||||||||
Restructuring Percent Facility Close | 20.00% | |||||||||||||||
Restructuring Percent Severance Close | 80.00% | |||||||||||||||
Restructuring Percent Cash | 95.00% | |||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Business Acquisition, Name of Acquired Entity | SSNI | |||||||||||||||
Business Acquisition, Share Price | $ 16.25 | |||||||||||||||
Business Combination, Consideration Transferred | $ 810,000 | |||||||||||||||
Debt Instrument, Face Amount | 650,000 | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000 | |||||||||||||||
Senior Notes | $ 100,000 | |||||||||||||||
Standby Letters of Credit [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000 | 250,000 | $ 300,000 | |||||||||||||
Standby Letters of Credit [Member] | Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000 | |||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000 | $ 50,000 | ||||||||||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||||||||||||||
Secured Debt [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Collateral | All obligations under the 2015 credit facility are guaranteed by Itron, Inc. and material U.S. domestic subsidiaries and are secured by a pledge of substantially all of the assets of Itron, Inc. and material U.S. domestic subsidiaries, including a pledge of 100% of the capital stock of material U.S. domestic subsidiaries and up to 66% of the voting stock (100% of the non-voting stock) of their first-tier foreign subsidiaries. In addition, the obligations of any foreign subsidiary who is a foreign borrower, as defined by the 2015 credit facility, are guaranteed by the foreign subsidiary and by its direct and indirect foreign parents. | |||||||||||||||
Repayments of Long-term Debt | $ 29,063 | 79,119 | 62,998 | |||||||||||||
Secured Debt [Member] | Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Collateral | All obligations under the 2018 credit facility are guaranteed by Itron, Inc. and material U.S. domestic subsidiaries and are secured by a pledge of substantially all of the assets of Itron, Inc. and material U.S. domestic subsidiaries, including a pledge of 100% of the capital stock of material U.S. domestic subsidiaries and up to 66% of the voting stock (100% of the non-voting stock) of their first-tier foreign subsidiaries. In addition, the obligations of any foreign subsidiary who is a foreign borrower, as defined by the 2018 credit facility, are guaranteed by the foreign subsidiary and by its direct and indirect foreign parents. | |||||||||||||||
USD Denominated Term Loan [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 225,000 | |||||||||||||||
Repayments of Long-term Debt | $ 14,063 | 11,250 | $ 13,125 | |||||||||||||
USD Denominated Term Loan [Member] | Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Repayments of Long-term Debt | $ 16,300 | $ 12,200 | $ 8,100 | $ 4,100 | ||||||||||||
Senior Notes [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Collateral | The Notes will be jointly and severally guaranteed by each of our subsidiaries that guarantees obligations under our senior credit facilities. The Notes were not guaranteed until the release of the escrow, but once released, the Notes were fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our subsidiaries that guarantee the senior credit facilities. | |||||||||||||||
Senior Notes | $ 300,000 | $ 0 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||||||||||
Minimum [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.18% | |||||||||||||||
Restructuring and Related Cost, Expected Cost | $ 100,000 | |||||||||||||||
Minimum [Member] | Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.18% | |||||||||||||||
Maximum [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | |||||||||||||||
Restructuring and Related Cost, Expected Cost | $ 110,000 | |||||||||||||||
Maximum [Member] | Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | |||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | the LIBOR rate | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | 1.25% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.82% | 2.02% | ||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | 2018 Credit Facility [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | the LIBOR rate | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.56% | |||||||||||||||
EURIBOR [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | EURIBOR rate | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | 1.25% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.25% | 1.25% | ||||||||||||||
EURIBOR [Member] | 2018 Credit Facility [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | EURIBOR | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.00% | |||||||||||||||
Alternate base rate (3) [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | one month LIBOR | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||
Alternate base rate (3) [Member] | 2018 Credit Facility [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | one month LIBOR | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||
Alternate base rate (3) [Member] | Minimum [Member] | 2018 Credit Facility [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||||||||||||||
Alternate base rate (1) [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | the prime rate | |||||||||||||||
Alternate base rate (1) [Member] | 2018 Credit Facility [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | the prime rate | |||||||||||||||
Alternate base rate (2) [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | the Federal Reserve effective rate | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||||||
Alternate base rate (2) [Member] | 2018 Credit Facility [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | the Federal Reserve effective rate |
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