10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             

Commission file number 000-22418

ITRON, INC.

(Exact name of registrant as specified in its charter)

Washington	91-1011792
(State of Incorporation)	(I.R.S. Employer Identification Number)

2111 N Molter Road, Liberty Lake, Washington 99019

(509) 924-9900

(Address and telephone number of registrant's principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x		Accelerated filer	¨
Non-accelerated filer	¨	(Do not check if a smaller reporting company)	Smaller reporting company	¨
			Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of April 30, 2018, there were outstanding 39,201,753 shares of the registrant's common stock, no par value, which is the only class of common stock of the registrant.

Itron, Inc.

Table of Contents

	Page
PART I: FINANCIAL INFORMATION
Item 1: Financial Statements (Unaudited)
Consolidated Statements of Operations	1
Consolidated Statements of Comprehensive Income (Loss)	2
Consolidated Balance Sheets	3
Consolidated Statements of Cash Flows	4
Notes to Condensed Consolidated Financial Statements	5
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3: Quantitative and Qualitative Disclosures About Market Risk	51
Item 4: Controls and Procedures	52
PART II: OTHER INFORMATION
Item 1: Legal Proceedings	54
Item 1A: Risk Factors	54
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 5: Other Information	54
Item 6: Exhibits	55
SIGNATURE	56

PART I: FINANCIAL INFORMATION

Item 1:    Financial Statements (Unaudited)

ITRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended March 31,
	2018			2017
	(in thousands, except per share data)
Revenues
Product revenues	$	537,110		$	432,365
Service revenues	70,111			45,227
Total revenues	607,221			477,592
Cost of revenues
Product cost of revenues	382,850			287,093
Service cost of revenues	44,516			32,862
Total cost of revenues	427,366			319,955
Gross profit	179,855			157,637
Operating expenses
Sales and marketing	51,921			41,255
Product development	60,284			40,767
General and administrative	102,493			37,187
Amortization of intangible assets	17,740			4,549
Restructuring	87,865			3,052
Total operating expenses	320,303			126,810
Operating income (loss)	(140,448		)	30,827
Other income (expense)
Interest income	661			269
Interest expense	(15,504		)	(3,199		)
Other income (expense), net	(1,167		)	(2,836		)
Total other income (expense)	(16,010		)	(5,766		)
Income (loss) before income taxes	(156,458		)	25,061
Income tax benefit (provision)	11,188			(9,047		)
Net income (loss)	(145,270		)	16,014
Net income attributable to noncontrolling interests	396			169
Net income (loss) attributable to Itron, Inc.	$	(145,666	)	$	15,845
Earnings (loss) per common share - Basic	$	(3.74	)	$	0.41
Earnings (loss) per common share - Diluted	$	(3.74	)	$	0.40
Weighted average common shares outstanding - Basic	38,945			38,474
Weighted average common shares outstanding - Diluted	38,945			39,215

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

ITRON, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Net income (loss)	$	(145,270	)	$	16,014
Other comprehensive income, net of tax:
Foreign currency translation adjustments	16,300			15,016
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges	1,169			292
Pension benefit obligation adjustment	414			401
Total other comprehensive income, net of tax	17,883			15,709
Total comprehensive income (loss), net of tax	(127,387		)	31,723
Comprehensive income attributable to noncontrolling interests, net of tax	396			169
Comprehensive income (loss) attributable to Itron, Inc.	$	(127,783	)	$	31,554

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

ITRON, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	March 31, 2018			December 31, 2017
	(in thousands)
ASSETS
Current assets
Cash and cash equivalents	$	143,951		$	176,274
Accounts receivable, net	481,389			398,029
Inventories	209,373			193,835
Other current assets	97,925			81,604
Total current assets	932,638			849,742
Property, plant, and equipment, net	234,924			200,768
Deferred tax assets, net	58,917			49,971
Restricted cash	1,466			311,010
Other long-term assets	46,843			43,666
Intangible assets, net	318,984			95,228
Goodwill	1,142,757			555,762
Total assets	$	2,736,529		$	2,106,147
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	275,702		$	262,166
Other current liabilities	90,259			56,736
Wages and benefits payable	119,312			90,505
Taxes payable	22,659			16,100
Current portion of debt	16,250			19,688
Current portion of warranty	26,533			21,150
Unearned revenue	87,293			41,438
Total current liabilities	638,008			507,783
Long-term debt	1,105,538			593,572
Long-term warranty	15,446			13,712
Pension benefit obligation	100,045			95,717
Deferred tax liabilities, net	1,571			1,525
Other long-term obligations	171,318			88,206
Total liabilities	2,031,926			1,300,515
Commitments and contingencies (Note 11)
Equity
Preferred stock, no par value, 10 million shares authorized, no shares issued or outstanding	—			—
Common stock, no par value, 75 million shares authorized, 39,181 and 38,771 shares issued and outstanding	1,310,379			1,294,767
Accumulated other comprehensive loss, net	(152,595		)	(170,478		)
Accumulated deficit	(471,812		)	(337,873		)
Total Itron, Inc. shareholders' equity	685,972			786,416
Noncontrolling interests	18,631			19,216
Total equity	704,603			805,632
Total liabilities and equity	$	2,736,529		$	2,106,147

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

ITRON, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Operating activities
Net income (loss)	$	(145,270	)	$	16,014
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	31,072			14,378
Stock-based compensation	8,095			5,211
Amortization of prepaid debt fees	3,386			266
Deferred taxes, net	(16,508		)	882
Restructuring, non-cash	47			—
Other adjustments, net	(106		)	946
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(7,768		)	13,119
Inventories	(253		)	(11,274		)
Other current assets	(8,849		)	(11,169		)
Other long-term assets	4,509			646
Accounts payable, other current liabilities, and taxes payable	7,826			28,277
Wages and benefits payable	16,438			(1,796		)
Unearned revenue	23,317			14,020
Warranty	663			(2,303		)
Other operating, net	58,953			(3,960		)
Net cash provided by (used in) operating activities	(24,448		)	63,257
Investing activities
Acquisitions of property, plant, and equipment	(17,433		)	(9,122		)
Business acquisitions, net of cash equivalents acquired	(802,488		)	—
Other investing, net	100			(78		)
Net cash used in investing activities	(819,821		)	(9,200		)
Financing activities
Proceeds from borrowings	555,938			—
Payments on debt	(32,395		)	(2,813		)
Issuance of common stock	3,384			405
Prepaid debt fees	(24,042		)	—
Other financing, net	(1,046		)	155
Net cash provided by (used in) financing activities	501,839			(2,253		)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	563			2,559
Increase (decrease) in cash, cash equivalents, and restricted cash	(341,867		)	54,363
Cash, cash equivalents, and restricted cash at beginning of period	487,335			133,565
Cash, cash equivalents, and restricted cash at end of period	$	145,468		$	187,928
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes, net	$	1,498		$	1,224
Interest	6,878			2,422

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

ITRON, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2018

(UNAUDITED)

In this Quarterly Report on Form 10-Q, the terms "we," "us," "our," "Itron," and the "Company" refer to Itron, Inc.

Note 1:    Summary of Significant Accounting Policies

Financial Statement Preparation

The condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q are unaudited and reflect entries necessary for the fair presentation of the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2018 and 2017, the Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017, and the Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017 of Itron, Inc. and its subsidiaries. All entries required for the fair presentation of the financial statements are of a normal recurring nature, except as disclosed. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results expected for the full year or for any other period.

Certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim results. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes included in our 2017 Annual Report on Form 10-K filed with the SEC on February 28, 2018. There have been no significant changes in financial statement preparation or significant accounting policies since December 31, 2017, with the exception of the adoption of Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (Topic 606).

On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition. The cumulative impact of adoption was a net decrease to accumulated deficit of $10.9 million as of January 1, 2018, with the impact primarily related to multiple element arrangements that contain software and software related elements. As we had not established vendor specific objective evidence of fair value for certain of our software and software related elements, we historically combined them as one unit of account and recognized the combined unit of account using the combined services approach. Under Topic 606, 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. For contracts that were modified prior to January 1, 2018, we have reflected the aggregate effect of all modifications prior to the date of initial adoption in order to identify the satisfied and unsatisfied performance obligations, determine the transaction price, and allocate the transaction price to satisfied and unsatisfied performance obligations. The impact to revenues for the three months ended March 31, 2018 was immaterial as a result of applying Topic 606.

Refer to the updated Revenue Recognition accounting policy described below and Note 16 for additional disclosures regarding our revenues from contracts with customers and the adoption of Topic 606.

Reclassifications

Certain reclassifications have been made to prior period consolidated financial statements to conform to classifications used in the current period. These reclassifications had no impact on net income (loss), shareholders' equity or cash flows as previously reported.

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 (December Notes). The proceeds of the December 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. We recognized the balance in escrow as restricted cash in our consolidated financial statements as of December 31, 2017.

5

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:

	Three months ended March 31
	2018		2017
	(in thousands)
Cash and cash equivalents	$	143,951	$	187,928
Current restricted cash included in other current assets	51		—
Long-term restricted cash	1,466		—
Total cash, cash equivalents, and restricted cash	$	145,468	$	187,928

Revenue Recognition

The majority of our revenues consist primarily of hardware sales, but may also include the license of software, software implementation services, cloud services and software as a service ("Saas"), project management services, installation services, consulting services, post-sale maintenance support, and extended or noncustomary warranties. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. In determining whether the definition of a contract has been met, we will consider whether the arrangement creates enforceable rights and obligations, which involves evaluation of agreement terms that would allow for the customer to terminate the agreement. If the customer is able to terminate the agreement without providing further consideration to us, the agreement would not be considered to meet the definition of a contract.

Many of our revenue arrangements involve multiple performance obligations consisting of hardware, meter reading system software, installation, and/or project management services. Separate contracts entered into with the same customer (or related parties of the customer) at or near the same time are accounted for as a single contract where one or more of the following criteria are met:

• The contracts are negotiated as a package with a single commercial objective;

• The amount of consideration to be paid in one contract depends on the price or performance of the other contract; or

• The goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a single performance obligation.

Once the contract has been defined, we evaluate whether the promises in the contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment, and the decision to separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recognized in a given period. For some of our contracts, the customer contracts with us to provide a significant service of integrating, customizing or modifying goods or services in the contract in which case the goods or services would be combined into a single performance obligation. It is common that we may promise to provide multiple distinct goods or services within a contract in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. If applicable, for goods or services where we have observable standalone sales, the observable standalone sales are used to determine the standalone selling price. For the majority of our goods and services, we do not have observable standalone sales. As a result, we estimate the standalone selling price using either the adjusted market assessment approach or the expected cost plus a margin approach. Approaches used to estimate the standalone selling price for a given good or service will maximize the use of observable inputs and considers several factors, including our pricing practices, costs to provide a good or service, the type of good or service, and availability of other transactional data, among others.

We determine the estimated standalone selling prices of goods or services used in our allocation of arrangement consideration on an annual basis or more frequently if there is a significant change in our business or if we experience significant variances in our transaction prices.

Many of our contracts with customers include variable consideration, which can include liquidated damage provisions, rebates and volume and early payment discounts. Some of our contracts with customers contain clauses for liquidated damages related to the timing of 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 the probability and magnitude of having to pay liquidated damages. We estimate variable consideration using the expected value method, taking into consideration contract terms, historical customer behavior and historical sales. In the case of liquidated damages, we also take into consideration progress towards meeting contractual milestones, including whether milestones have not been achieved, specified rates, if applicable, stated

6

in the contract, and history of paying liquidated damages to the customer or similar customers. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.

In the normal course of business, we do not accept product returns unless the item is defective as manufactured. We establish provisions for estimated returns and warranties. In addition, we do not typically provide customers with the right to a refund.

Hardware revenues are recognized at a point in time. Transfer of control is typically at the time of shipment, receipt by the customer, or, if applicable, upon receipt of customer acceptance provisions. We will recognize revenue prior to receipt of customer acceptance for hardware in cases where the customer acceptance provision is determined to be a formality. Transfer of control would not occur until receipt of customer acceptance in hardware arrangements where such provisions are subjective or where we do not have history of meeting the acceptance criteria.

Perpetual software licenses are considered to be a right to use intellectual property and are recognized at a point in time. Transfer of control is considered to be at the point at which it is available to the customer to download and use or upon receipt of customer acceptance. In certain contracts, software licenses may be sold with professional services that include implementation services that include a significant service of integrating, customizing or modifying the software. In these instances, the software license is combined into single performance obligation with the implementation services and recognized over time as the implementation services are performed.

Hardware and software licenses (when not combined with professional services) are typically billed when shipped and revenue recognized at a point-in-time. As a result, the timing of revenue recognition and invoicing does not have a significant impact on contract assets and liabilities.

Professional services, which include implementation, project management, installation, and consulting services are recognized over time. We measure progress towards satisfying these performance obligations using input methods, most commonly based on the costs incurred in relation to the total expected costs to provide the service. We expect this method to best depict our performance in transferring control of services promised to the customer or represents a reasonable proxy for measuring progress. The estimate of expected costs to provide services requires judgment. Cost estimates take into consideration past history and the specific scope requested by the customer and are updated quarterly. We may also offer professional services on a stand-ready basis over a specified period of time, in which case revenue would be recognized ratably over the term. Invoicing of these services is commensurate with performance and occurs on a monthly basis. As such, these services do not have a significant impact on contract assets and contract liabilities.

Cloud services and 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 over time, ratably over the contact term commencing with the date the services are made available to the customer.

Services, including professional services, cloud services and SaaS arrangements, are commonly billed on a monthly basis in arrears and typically result in an unbilled receivable, which is not considered a contract asset as our right to consideration is unconditional.

Certain of our revenue arrangements include an extended or noncustomary warranty provisions 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, such warranties are considered to be a separate good or service, and a portion of the transaction price is allocated to this extended warranty performance obligation. This revenue is recognized, ratably over the extended warranty coverage period.

Hardware and software post-sale maintenance support fees are recognized over time, 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. Support fees are typically billed on an annual basis, resulting in a contract liability.

Payment terms with customers can vary by customer; however, amounts billed are typically payable within 30 to 90 days, depending on the destination country. We do not make a practice of offering financing as part of our contracts with customers.

We incur certain incremental costs to obtain contracts with customers, primarily in the form of sales commissions. Where the amortization period is one year or less, we have elected to apply the practical expedient and recognize the related commissions

7

expense as incurred. Otherwise, such incremental costs are capitalized and amortized over the contract period. Capitalized incremental costs are not material.

New Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 currently believe the most significant impact relates to our real estate leases and the increased financial statement disclosures, but are continuing to evaluate the effect that the updated standard will have on our consolidated results of operations, financial position, cash flows, and related financial statement disclosures.

In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) (ASU 2016-16), which removes the prohibition in Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. Under ASU 2016-16, the selling entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The resulting deferred tax asset or deferred tax liability is measured by computing the difference between the tax basis of the asset in the buyer's jurisdiction and its financial reporting carrying value in the consolidated financial statements and multiplying such difference by the enacted tax rate in the buyer's jurisdiction. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We adopted this standard effective January 1, 2018 using a modified retrospective transition method, recognizing a $0.9 million one-time decrease to accumulated deficit.

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 for the capitalization of the service cost component of net periodic pension cost. For applying the retrospective presentation requirements, we elected to utilize amounts previously disclosed in our defined benefit pension plan footnote for the prior comparative periods as the estimation basis for applying the retrospective presentation. This resulted in a reclassification of an immaterial amount of net periodic pension benefit costs from operating income to other income (expense) in all periods presented on the Consolidated Statements of Operations.

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. This update expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, the amendments in ASU 2017-12 provide new guidance about income statement classification and eliminates the requirement to separately measure and report hedge ineffectiveness. ASU 2017-12 is effective for fiscal years 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.

8

Note 2:    Earnings Per Share

The following table sets forth the computation of basic and diluted earnings (loss) per share (EPS):

	Three Months Ended March 31,
	2018			2017
	(in thousands, except per share data)
Net income (loss) available to common shareholders	$	(145,666	)	$	15,845
Weighted average common shares outstanding - Basic	38,945			38,474
Dilutive effect of stock-based awards	—			741
Weighted average common shares outstanding - Diluted	38,945			39,215
Earnings (loss) per common share - Basic	$	(3.74	)	$	0.41
Earnings (loss) per common share - Diluted	$	(3.74	)	$	0.40

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 the future compensation cost associated with the stock award. Approximately 1.0 million and 0.2 million stock-based awards were excluded from the calculation of diluted EPS for the three months ended March 31, 2018 and 2017 because they were anti-dilutive. As a result of our net loss for the three months ended March 31, 2018, there was no dilutive effect to weighted average common shares outstanding.

Note 3:    Certain Balance Sheet Components

A summary of accounts receivable from contracts with customers is as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Trade receivables (net of allowance of $4,774 and $3,957)	$	448,211	$	369,047
Unbilled receivables	33,178		28,982
Total accounts receivable, net	$	481,389	$	398,029

Allowance for doubtful accounts activity	Three Months Ended March 31,
	2018			2017
	(in thousands)
Beginning balance	$	3,957		$	3,320
Provision for doubtful accounts, net	920			303
Accounts written-off	(258		)	(330		)
Effect of change in exchange rates	155			131
Ending balance	$	4,774		$	3,424

Inventories	March 31, 2018		December 31, 2017
	(in thousands)
Materials	$	132,990	$	126,656
Work in process	8,700		9,863
Finished goods	67,683		57,316
Total inventories	$	209,373	$	193,835

9

Property, plant, and equipment, net	March 31, 2018			December 31, 2017
	(in thousands)
Machinery and equipment	$	332,055		$	310,753
Computers and software	111,227			104,384
Buildings, furniture, and improvements	150,049			135,566
Land	16,638			18,433
Construction in progress, including purchased equipment	41,959			39,946
Total cost	651,928			609,082
Accumulated depreciation	(417,004		)	(408,314		)
Property, plant, and equipment, net	$	234,924		$	200,768

Depreciation expense	Three Months Ended March 31,
	2018		2017
	(in thousands)
Depreciation expense	$	13,332	$	9,829

Note 4:    Intangible Assets and Liabilities

The gross carrying amount and accumulated amortization (accretion) of our intangible assets and liabilities, other than goodwill, were as follows:

	March 31, 2018									December 31, 2017
	Gross			Accumulated (Amortization) Accretion			Net			Gross		Accumulated (Amortization) Accretion			Net
	(in thousands)
Intangible Assets
Core-developed technology	$	531,263		$	(423,634	)	$	107,629		$	429,548	$	(399,969	)	$	29,579
Customer contracts and relationships	400,566			(210,757		)	189,809			258,586		(197,582		)	61,004
Trademarks and trade names	82,337			(68,982		)	13,355			70,056		(66,004		)	4,052
Other	11,664			(11,073		)	591			11,661		(11,068		)	593
Total intangible assets subject to amortization	$	1,025,830		$	(714,446	)	$	311,384		$	769,851	$	(674,623	)	$	95,228
In-process research and development	7,600			—			7,600			—		—			—
Total intangible assets	$	1,033,430		$	(714,446	)	$	318,984		$	769,851	$	(674,623	)	$	95,228
Intangible Liabilities
Customer contracts and relationships	$	(23,900	)	$	1,304		$	(22,596	)	$	—	$	—		$	—

10

A summary of intangible assets and liabilities activity is as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Beginning balance, intangible assets, gross	$	769,851		$	669,896
Intangible assets acquired	240,600			—
Effect of change in exchange rates	22,979			16,168
Ending balance, intangible assets, gross	$	1,033,430		$	686,064
Beginning balance, intangible liabilities, gross	$	—		$	—
Intangible liabilities acquired	(23,900		)	—
Effect of change in exchange rates	—			—
Ending balance, intangible liabilities, gross	$	(23,900	)	$	—

On January 5, 2018, we completed our acquisition of SSNI by purchasing 100% of the voting stock. Intangible assets acquired in 2018 are based on the preliminary purchase price allocation relating to this acquisition. Acquired intangible assets include in-process research and development (IPR&D), which is not amortized until such time as the associated development projects are completed. Of these projects, $6.8 million were completed during the first quarter of 2018 and are included in core-developed technology. The remaining IPR&D is expected to be completed in the next year. Acquired intangible liabilities reflect the present value of the projected cash outflows for an existing contract where remaining costs are expected to exceed projected revenues. Refer to Note 17 for additional information regarding this acquisition.

Estimated future annual amortization (accretion) is as follows:

Year Ending December 31,	Amortization		Accretion			Estimated Annual Amortization, net
	(in thousands)
2018 (amount remaining at March 31, 2018)	$	58,564	$	(3,913	)	$	54,651
2019	72,345		(8,233		)	64,112
2020	52,265		(8,028		)	44,237
2021	36,649		(1,963		)	34,686
2022	26,317		(459		)	25,858
Beyond 2022	65,244		—			65,244
Total intangible assets subject to amortization (accretion)	$	311,384	$	(22,596	)	$	288,788

We have recognized $17.7 million and $4.5 million of net amortization of intangible assets for the three months ended March 31, 2018 and 2017, respectively, within operating expenses in the Consolidated Statement of Operations. These expenses relate to intangible assets and liabilities acquired as part of a business combination.

11

Note 5:    Goodwill

The following table reflects goodwill allocated to each reporting unit:

	Electricity			Gas		Water			Networks		Total Company
	(in thousands)
Goodwill balance at January 1, 2018
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
Goodwill acquired	—			—		—			572,499		572,499
Effect of change in exchange rates	1,031			10,788		2,560			117		14,496
Goodwill balance at March 31, 2018
Goodwill before impairment	514,057			363,491		393,693			572,616		1,843,857
Accumulated impairment losses	(398,785		)	—		(302,315		)	—		(701,100		)
Goodwill, net	$	115,272		$	363,491	$	91,378		$	572,616	$	1,142,757

Note 6:    Debt

The components of our borrowings were as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Credit facility:
USD denominated term loan	$	650,000	$	194,063
Multicurrency revolving line of credit	95,777		125,414
Senior notes	400,000		300,000
Total debt	1,145,777		619,477
Less: current portion of debt	16,250		19,688
Less: unamortized prepaid debt fees - term loan	5,912		629
Less: unamortized prepaid debt fees - senior notes	18,077		5,588
Long-term debt	$	1,105,538	$	593,572

Credit Facility

On January 5, 2018, we entered into a credit agreement providing for committed credit facilities in the amount of $1.2 billion U.S. dollars (the 2018 credit facility) which amended and restated in its entirety our credit agreement dated June 23, 2015 and replaced committed facilities in the amount of $725 million. 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. Both the term loan and the revolver mature on January 5, 2023, and can be repaid without penalty. Amounts repaid on the term loan may not be reborrowed and amounts borrowed under the revolver, during the credit facility term may be repaid and reborrowed until the revolver's maturity, at which time 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.

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 their related assets. This includes 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 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. The 2018 credit facility includes debt

12

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 2018 credit facility at March 31, 2018.

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 (subject to a 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 0.50%, or (iii) one-month LIBOR plus 1.00%. At March 31, 2018, the interest rate for both the term loan and the USD revolver was 3.88%, which includes the LIBOR rate plus a margin of 2.00%. At March 31, 2018, the interest rate for the EUR revolver was 2.00% (the EURIBOR floor rate plus a margin of 2.00%).

Senior Notes

On December 22, 2017 and January 19, 2018, we issued $300 million and $100 million, respectively, of aggregate principal amount of 5.00% senior notes maturing January 15, 2026 (Notes). The proceeds were used to refinance existing indebtedness related to the acquisition of SSNI, pay related fees and expenses, and for general corporate purposes. Interest on the Notes will be payable semi-annually in arrears on January 15 and July 15, commencing on July 15, 2018. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our subsidiaries that guarantee the senior credit facilities.

Prior to maturity we may redeem some or all 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 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 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.

Debt Maturities

The amount of required minimum principal payments on our long-term debt in aggregate over the next five years, are as follows:

Year Ending December 31,	Minimum Payments
	(in thousands)
2018 (amount remaining at March 31, 2018)	$	12,188
2019	28,438
2020	44,777
2021	60,937
2022	65,000
2023	534,437
Total minimum payments on debt	$	745,777

13

Note 7:    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 13 and Note 14 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 were as follows:

		Fair Value
Asset Derivatives	Balance Sheet Location	March 31, 2018		December 31, 2017
Derivatives designated as hedging instruments under ASC 815-20		(in thousands)
Interest rate swap contracts	Other current assets	$	1,303	$	658
Interest rate cap contracts	Other current assets	74		17
Interest rate swap contracts	Other long-term assets	2,226		1,712
Interest rate cap contracts	Other long-term assets	310		179
Derivatives not designated as hedging instruments under ASC 815-20
Foreign exchange forward contracts	Other current assets	44		41
Interest rate cap contracts	Other current assets	111		25
Interest rate cap contracts	Other long-term assets	464		268
Total asset derivatives		$	4,532	$	2,900
Liability Derivatives
Derivatives not designated as hedging instruments under ASC 815-20
Foreign exchange forward contracts	Other current liabilities	$	356	$	289

The changes in accumulated other comprehensive income (loss) (AOCI), net of tax, for our derivative and nonderivative hedging instruments, were as follows:

	2018			2017
	(in thousands)
Net unrealized gain (loss) on hedging instruments at January 1,	$	(13,414	)	$	(14,337	)
Unrealized gain (loss) on hedging instruments	1,183			60
Realized loss (gain) reclassified into net income	(14		)	232
Net unrealized gain (loss) on hedging instruments at March 31,	$	(12,245	)	$	(14,045	)

Reclassification of amounts related to hedging instruments are included in interest expense in the Consolidated Statements of Operations for the periods ended March 31, 2018 and 2017. Included in the net unrealized loss on hedging instruments at March 31, 2018 and 2017 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.

14

A summary of the 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:

Offsetting of Derivative Assets	Gross Amounts of Recognized Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
			Derivative Financial Instruments			Cash Collateral Received		Net Amount
	(in thousands)
March 31, 2018	$	4,532	$	(128	)	$	—	$	4,404
December 31, 2017	$	2,900	$	(90	)	$	—	$	2,810

Offsetting of Derivative Liabilities	Gross Amounts of Recognized Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
			Derivative Financial Instruments			Cash Collateral Pledged		Net Amount
	(in thousands)
March 31, 2018	$	356	$	(128	)	$	—	$	228
December 31, 2017	$	289	$	(90	)	$	—	$	199

Our derivative assets and liabilities subject to netting arrangements consist of foreign exchange forward and interest rate contracts with three counterparties at March 31, 2018 and December 31, 2017. No derivative asset or liability balance with any of our counterparties was individually significant at March 31, 2018 or December 31, 2017. 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 interest rate caps and swaps to reduce the variability of cash flows from increases in the LIBOR based borrowing rates on our floating rate credit facility. These instruments do not protect us from changes to the applicable margin under our credit facility. At March 31, 2018, our LIBOR-based debt balance was $690.0 million.

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 other comprehensive income (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 gains expected to be reclassified into earnings in the next 12 months is $1.3 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. As of December 31, 2016, due to the accelerated revolver payments from surplus cash, we elected to de-designate two of the interest rate cap contracts as cash flow hedges and discontinued 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.

15

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 in ASC 815-20 Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)					Gain (Loss) Reclassified from Accumulated AOCI into Income (Effective Portion)							Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
						Location	Amount						Location	Amount
	2018		2017				2018			2017				2018		2017
	(in thousands)						(in thousands)							(in thousands)
Three Months Ended March 31,
Interest rate swap contracts	$	1,247	$	181		Interest expense	$	88		$	(335	)	Interest expense	$	—	$	—
Interest rate cap contracts	188		(84		)	Interest expense	(70		)	(43		)	Interest expense	—		—

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 March 31, 2018, a total of 57 contracts were offsetting our exposures from the Euro, Saudi Riyal, Indian Rupee, Chinese Yuan, Indonesian Rupiah, and various other currencies, with notional amounts ranging from $93,000 to $47.5 million.

The effect of our derivative instruments not designated as hedges on the Consolidated Statements of Operations was as follows:

Derivatives Not Designated as Hedging Instrument under ASC 815-20	Location	Gain (Loss) Recognized on Derivatives in Other Income (Expense)
		Three Months Ended March 31,
		2018			2017
		(in thousands)
Foreign exchange forward contracts	Other income (expense), net	$	(1,523	)	$	(1,742	)
Interest rate cap contracts	Interest expense	282			(126		)

Note 8:    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.

Amounts recognized on the Consolidated Balance Sheets consist of:

	March 31, 2018		December 31, 2017
	(in thousands)
Assets
Plan assets in other long-term assets	$	1,054	$	991
Liabilities
Current portion of pension benefit obligation in wages and benefits payable	3,291		3,260
Long-term portion of pension benefit obligation	100,045		95,717
Pension benefit obligation, net	$	102,282	$	97,986

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.

16

Net periodic pension benefit costs for our plans include the following components:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Service cost	$	1,049		$	928
Interest cost	609			525
Expected return on plan assets	(181		)	(146		)
Amortization of actuarial net loss	403			391
Amortization of unrecognized prior service costs	17			15
Net periodic benefit cost	$	1,897		$	1,713

The components of net periodic benefit cost, other than the service cost component, are included in total other income (expense) on the Consolidated Statements of Operations.

Note 9:    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 March 31, 2018, 4,215,490 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.

As a part of the acquisition of SSNI, we reserved and authorized 730,457 shares of Itron common stock to be issued for certain Silver Spring Network common stock awards that were converted to Itron common stock awards at acquisition date pursuant to the Agreement and Plan of Merger (SSNI Plan). New stock based compensation awards from the SSNI Plan may only be made to previous and newly hired employees of SSNI. The shares were converted from the Silver Spring Networks, Inc. 2012 Equity Incentive Plan, Non-Plan Inducement Stock Options, Non-Plan Inducement Restricted Stock Units and Non-Plan Inducement Performance Stock Units. There is no fungible share provision. As of March 31, 2018, 142,336 shares were available for grant under the SSNI Plan.

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 Employee Stock Purchase Plan (ESPP), for which approximately 331,993 shares of common stock were available for future issuance at March 31, 2018.

Unrestricted stock and ESPP activity for the three months ended March 31, 2018 and 2017 was not significant.

Stock-Based Compensation Expense

Total stock-based compensation expense and the related tax benefit were as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Stock options	$	831	$	659
Restricted stock units	7,057		4,297
Unrestricted stock awards	207		255
Phantom stock units	690		392
Total stock-based compensation	$	8,785	$	5,603
Related tax benefit	$	1,534	$	1,228

17

Stock Options

A summary of our stock option activity is as follows:

	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, 2017	959		$	45.64	6.6	$	19,125
Granted	121		65.55					$	22.01
Exercised	(5	)	35.29			120
Outstanding, March 31, 2017	1,075		$	47.92	6.7	$	17,236
Outstanding, January 1, 2018	956		$	47.10	6.3	$	21,965
Converted upon acquisition	42		51.86					$	14.86
Granted	101		69.30					$	24.83
Exercised	(62	)	40.31			2,104
Forfeited	(3	)	72.25
Expired	(7	)	95.96
Outstanding, March 31, 2018	1,027		$	49.49	6.5	$	24,051
Exercisable March 31, 2018	716		$	45.96	5.5	$	19,725
Expected to vest, March 31, 2018	308		$	57.74	8.9	$	4,255

At March 31, 2018, total unrecognized stock-based compensation expense related to nonvested stock options was $5.0 million, which is expected to be recognized over a weighted average period of approximately 1.8 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:

	Three Months Ended March 31,
	2018		2017
Expected volatility	30.9	%	32.7	%
Risk-free interest rate	2.8	%	2.0	%
Expected term (years)	6.1		5.5

18

Restricted Stock Units

The following table summarizes restricted stock unit activity:

	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
	(in thousands)				(in thousands)
Outstanding, January 1, 2017	701
Granted	131		$	63.12
Released	(317	)			$	12,066
Forfeited	(3	)
Outstanding, March 31, 2017	512
Outstanding, January 1, 2018	556		$	47.68
Converted upon acquisition	579		69.40
Granted	136		69.30
Released	(352	)	47.18		$	17,231
Forfeited	(28	)	68.44
Outstanding, March 31, 2018	891		63.72
Vested but not released, March 31, 2018	10				$	729
Expected to vest, March 31, 2018	788				$	56,369

At March 31, 2018, total unrecognized compensation expense on restricted stock units was $61.3 million, which is expected to be recognized over a weighted average period of approximately 2.4 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:

	Three Months Ended March 31,
	2018			2017
Expected volatility	28.0		%	28.0		%
Risk-free interest rate	2.2		%	1.0		%
Expected term (years)	2.1			1.7
Weighted average fair value	$	78.56		$	77.78

19

Phantom Stock Units

The following table summarizes phantom stock unit activity:

	Number of Phantom Stock Units		Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding, January 1, 2017	62
Granted	32		$	65.55
Released	(19	)
Forfeited	(2	)
Outstanding, March 31, 2017	73
Expected to vest, March 31, 2017	73
Outstanding, January 1, 2018	63		$	51.88
Converted upon acquisition	21		69.40
Granted	31		69.30
Released	(27	)	50.19
Forfeited	(1	)	69.36
Outstanding, March 31, 2018	87		62.61
Expected to vest, March 31, 2018	85

At March 31, 2018, total unrecognized compensation expense on phantom stock units was $5.7 million which is expected to be recognized over a weighted average period of approximately 2.2 years. As of March 31, 2018 and December 31, 2017, we have recognized a phantom stock liability of $0.6 million and $1.7 million, respectively, within wages and benefits payable in the Consolidated Balance Sheets.

Note 10: Income Taxes

We determine the interim tax benefit (provision) by applying an estimate of the annual effective tax rate to the year-to-date pretax book income (loss) and adjusting for discrete items during the reporting period, if any. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. Additionally, for certain tax jurisdictions where a reliable estimate of annual income tax expense or benefit cannot be made, we applied the actual effective tax rate to quarter-to-date income.

Our tax benefit for the three months ended March 31, 2018 of 7% differed from the federal statutory rate of 21% due primarily to unbenefitted losses experienced in jurisdictions with valuation allowances on deferred tax assets as well as the forecasted mix of earnings in domestic and international jurisdictions, a benefit related to excess stock based compensation, and uncertain tax positions.

Our tax expense for the three months ended March 31, 2017 of 36% differed from the federal statutory rate of 35% due to the forecasted mix of earnings in domestic and international jurisdictions, a benefit related to excess stock based compensation, and losses experienced in jurisdictions with valuation allowances on deferred tax assets.

The tax provision for December 31, 2017 included the provisional determination of the impact to our deferred tax positions of the Tax Cuts and Jobs Act. We will continue to review any additional guidance issued by the U.S. Department of the Treasury, Internal Revenue Service, Financial Accounting Standards Board, or other regulatory bodies and adjust our provisional amount during the measurement period, which should not extend beyond one year from the enactment date of December 22, 2017. For the three months ended March 31, 2018 no changes to these provisional amounts have been recorded.

20

We classify interest expense and penalties related to unrecognized tax liabilities and interest income on tax overpayments as components of income tax expense. The net interest and penalties expense recognized were as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Net interest and penalties expense	$	424	$	206

Accrued interest and penalties recognized were as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Accrued interest	$	3,155	$	2,706
Accrued penalties	2,513		2,426

Unrecognized tax benefits related to uncertain tax positions and the amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate were as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Unrecognized tax benefits related to uncertain tax positions	$	76,120	$	56,702
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate	74,671		55,312

The increase in unrecognized tax benefits at March 31, 2018 related primarily to $16.4 million of unrecognized tax benefits recorded through purchase accounting on January 5, 2018 as a result of the acquisition of SSNI.

At March 31, 2018, we are under examination by certain tax authorities for the 2000 to 2015 tax years. The material jurisdictions where we are subject to examination include, among others, the United States, France, Germany, Italy, Brazil and the United Kingdom. No material changes have occurred to previously disclosed assessments. 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 liquidity.

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.

21

Note 11:    Commitments and Contingencies

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 performance bonds were as follows:

	March 31, 2018			December 31, 2017
	(in thousands)
Credit facilities
Multicurrency revolving line of credit	$	500,000		$	500,000
Long-term borrowings	(95,777		)	(125,414		)
Standby LOCs issued and outstanding	(46,359		)	(31,881		)
Net available for additional borrowings under the multi-currency revolving line of credit	$	357,864		$	342,705
Net available for additional standby LOCs under sub-facility	253,641			218,119
Unsecured multicurrency revolving lines of credit with various financial institutions
Multicurrency revolving lines of credit	$	114,160		$	110,477
Standby LOCs issued and outstanding	(21,471		)	(21,030		)
Short-term borrowings	(1,776		)	(916		)
Net available for additional borrowings and LOCs	$	90,913		$	88,531
Unsecured surety bonds in force	$	52,639		$	51,344

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: 1) the customer promptly notifies us in writing of the claim and 2) 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.

22

Warranty

A summary of the warranty accrual account activity is as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Beginning balance	$	34,862		$	43,302
Assumed liabilities from acquisition	5,742			—
New product warranties	818			2,361
Other adjustments and expirations	4,044			1,682
Claims activity	(4,108		)	(6,351		)
Effect of change in exchange rates	621			542
Ending balance	41,979			41,536
Less: current portion of warranty	26,533			23,500
Long-term warranty	$	15,446		$	18,036

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:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Total warranty expense	$	4,862	$	4,043

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:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Plan costs	$	8,680	$	8,754

The IBNR accrual, which is included in wages and benefits payable, was as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
IBNR accrual	$	2,911	$	2,664

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.

Note 12:    Restructuring

2018 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. Many of the affected employees are represented by unions or works councils, which require consultation, and potential restructuring projects may be subject to

23

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, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects are as follows:

	Total Expected Costs at March 31, 2018		Costs Recognized During the Three Months Ended March 31, 2018		Expected Remaining Costs to be Recognized at March 31, 2018
	(in thousands)
Employee severance costs	$	87,993	$	87,993	$	—
Other restructuring costs	16,500		—		16,500
Total	$	104,493	$	87,993	$	16,500
Segments:
Electricity	$	20,706	$	19,206	$	1,500
Gas	51,929		42,929		9,000
Water	23,712		17,712		6,000
Corporate unallocated	8,146		8,146		—
Total	$	104,493	$	87,993	$	16,500

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 end of 2018.

24

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2016 Projects are as follows:

	Total Expected Costs at March 31, 2018		Costs Recognized in Prior Periods		Costs Recognized During the Three Months Ended March 31, 2018			Expected Remaining Costs to be Recognized at March 31, 2018
	(in thousands)
Employee severance costs	$	38,848	$	39,855	$	(1,007	)	$	—
Asset impairments & net loss on sale or disposal	4,969		4,922		47			—
Other restructuring costs	15,767		9,435		832			5,500
Total	$	59,584	$	54,212	$	(128	)	$	5,500
Segments:
Electricity	$	10,919	$	9,025	$	394		$	1,500
Gas	31,799		29,181		618			2,000
Water	14,763		13,761		(998		)	2,000
Corporate unallocated	2,103		2,245		(142		)	—
Total	$	59,584	$	54,212	$	(128	)	$	5,500

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2018 and 2016 Projects during the three months ended March 31, 2018:

	Accrued Employee Severance			Asset Impairments & Net Loss on Sale or Disposal			Other Accrued Costs			Total
	(in thousands)
Beginning balance, January 1, 2018	$	37,654		$	—		$	2,471		$	40,125
Costs charged to expense	86,986			47			832			87,865
Cash payments	(7,063		)	—			(854		)	(7,917		)
Net assets disposed and impaired	—			(47		)	—			(47		)
Effect of change in exchange rates	1,566			—			2			1,568
Ending balance, March 31, 2018	$	119,143		$	—		$	2,451		$	121,594

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 portion of restructuring liabilities were $60.3 million and $32.5 million as of March 31, 2018 and December 31, 2017. The current portion of restructuring liabilities are classified within other current liabilities on the Consolidated Balance Sheets. The long-term portion of restructuring liabilities balances were $61.2 million and $7.6 million as of March 31, 2018 and December 31, 2017. The long-term portion of restructuring liabilities are classified within other long-term obligations on the Consolidated Balance Sheets, and include facility exit costs and severance accruals.

Note 13:    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 the Board of Directors prior to any payment to holders of common stock. There was no preferred stock issued or outstanding at March 31, 2018 and December 31, 2017.

25

Stock Repurchase Authorization

On February 23, 2017, Itron's 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 before-tax amount, income tax (provision) benefit, and net-of-tax amount related to each component of OCI were as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Before-tax amount
Foreign currency translation adjustment	$	16,293		$	15,066
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	1,436			97
Net hedging (gain) loss reclassified into net income	(19		)	378
Net defined benefit plan loss reclassified to net income	420			406
Total other comprehensive income (loss), before tax	18,130			15,947
Tax (provision) benefit
Foreign currency translation adjustment	7			(50		)
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	(253		)	(37		)
Net hedging (gain) loss reclassified into net income	5			(146		)
Net defined benefit plan loss reclassified to net income	(6		)	(5		)
Total other comprehensive income (loss) tax benefit	(247		)	(238		)
Net-of-tax amount
Foreign currency translation adjustment	16,300			15,016
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	1,183			60
Net hedging (gain) loss reclassified into net income	(14		)	232
Net defined benefit plan loss reclassified to net income	414			401
Total other comprehensive income (loss), net of tax	$	17,883		$	15,709

The changes in the components of AOCI, net of tax, were as follows:

	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, 2017	$	(182,986	)	$	43		$	(14,380	)	$	(32,004	)	$	(229,327	)
OCI before reclassifications	15,016			60			—			—			15,076
Amounts reclassified from AOCI	—			232			—			401			633
Total other comprehensive income (loss)	15,016			292			—			401			15,709
Balances at March 31, 2017	$	(167,970	)	$	335		$	(14,380	)	$	(31,603	)	$	(213,618	)
Balances at January 1, 2018	$	(128,648	)	$	966		$	(14,380	)	$	(28,416	)	$	(170,478	)
OCI before reclassifications	16,300			1,183			—			—			17,483
Amounts reclassified from AOCI	—			(14		)	—			414			400
Total other comprehensive income (loss)	16,300			1,169			—			414			17,883
Balances at March 31, 2018	$	(112,348	)	$	2,135		$	(14,380	)	$	(28,002	)	$	(152,595	)

26

Note 14:    Fair Values of Financial Instruments

The following table presents the fair values of our financial instruments:

	March 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
			(in thousands)
Assets
Cash and cash equivalents	$	143,951	$	143,951	$	176,274	$	176,274
Restricted cash	1,517		1,517		311,061		311,061
Foreign exchange forwards	44		44		41		41
Interest rate swaps	3,529		3,529		2,370		2,370
Interest rate caps	959		959		489		489
Liabilities
Credit facility
USD denominated term loan	$	650,000	$	658,796	$	194,063	$	192,295
Multicurrency revolving line of credit	95,777		97,205		125,414		124,100
Senior notes	400,000		395,000		300,000		301,125
Foreign exchange forwards	356		356		289		289

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 amount approximates fair value (Level 1).

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.

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.

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.

The fair values at March 31, 2018 and December 31, 2017 do not reflect subsequent changes in the economy, interest rates, tax rates, and other variables that may affect the determination of fair value.

Note 15:    Segment Information

We operate under the Itron brand worldwide and manage and report under four operating segments: Electricity, Gas, Water, and Networks. Our Water operating segment includes our global water, and heat and allocation solutions. Networks became a new operating segment with the acquisition of SSNI. 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 and marketing function is managed under each segment. Our product development, service delivery, and manufacturing operations are managed on a worldwide basis to promote a global perspective in our operations and processes and yet still maintain alignment with the segments.

We have three GAAP measures of segment performance: revenue, gross profit (margin), and operating income (margin). Intersegment revenues are minimal. Certain operating expenses are allocated to our Electricity, Gas, and Water operating segments based upon internally established allocation methodologies. We will not allocate operating expenses to our Networks segment until it is fully integrated and managed centrally. 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.

27

In addition, we allocate only certain production assets and intangible assets to our operating segments. We do not manage the performance of the segments on a balance sheet basis.

Segment Products

Electricity	Standard electricity (electromechanical and electronic) meters; smart network and data platform 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 network and data platform 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 network and data platform 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.
Networks	Smart network and data platform solutions for electricity, gas, water and smart cities including advanced metering, distribution automation, demand-side management, and street lights. Solutions include one or several of the following: communications modules, access points, relays and bridges; network operating software, grid management, security and grid analytics managed services and SaaS; installation; implementation; and professional services including consulting and analysis.

28

Revenues, gross profit, and operating income associated with our segments were as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Product revenues
Electricity	$	213,877		$	205,903
Gas	130,243			117,127
Water	125,587			109,335
Networks	67,403			—
Total Company	$	537,110		$	432,365
Service revenues
Electricity	$	38,528		$	32,848
Gas	7,496			7,084
Water	5,607			5,295
Networks	18,480			—
Total Company	$	70,111		$	45,227
Total revenues
Electricity	$	252,405		$	238,751
Gas	137,739			124,211
Water	131,194			114,630
Networks	85,883			—
Total Company	$	607,221		$	477,592
Gross profit
Electricity	$	69,975		$	67,250
Gas	43,471			50,815
Water	37,805			39,572
Networks	28,604			—
Total Company	$	179,855		$	157,637
Operating income (loss)
Electricity	$	(2,768	)	$	17,084
Gas	(28,348		)	21,731
Water	(11,710		)	8,804
Networks	(75,510		)	—
Corporate unallocated	(22,112		)	(16,792		)
Total Company	(140,448		)	30,827
Total other income (expense)	(16,010		)	(5,766		)
Income (loss) before income taxes	$	(156,458	)	$	25,061

For the three months ended March 31, 2018, one customer represented 22% and another customer represented 16%, respectively, of total Electricity segment revenues. For the three months ended March 31, 2018, one customer represented 11% of total Gas segment revenues, and one customer represented 11% of Networks segment revenues. For the three months ended March 31, 2018, no single customer represented more than 10% of the Water segment or total company revenues.

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

29

We currently buy a majority of our integrated circuit boards, an important component in our products, from two suppliers. Management believes that other suppliers could provide similar circuit boards, but a change in suppliers, disputes with our suppliers, or unexpected constraints on the suppliers' production capacity could adversely affect operating results.

Revenues by region were as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
United States and Canada	$	355,932	$	269,096
Europe, Middle East, and Africa	202,074		162,815
Other(1)	49,215		45,681
Total revenues	$	607,221	$	477,592

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

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

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Electricity	$	6,525	$	5,311
Gas	4,202		4,244
Water	4,109		3,959
Networks	15,012		—
Corporate unallocated	1,224		864
Total Company	$	31,072	$	14,378

Note 16: Revenues

A summary of significant net changes in the contract assets and the contract liabilities balances during the period is as follows:

	2018
	Contract liabilities, less contract assets
	(in thousands)
Beginning balance, January 1	$	59,808
Changes due to business combination	38,816
Revenue recognized from beginning contract liability	(24,549		)
Revenue recognized from current period increases	(6,352		)
Increases due to amounts collected or due	56,051
Other	(1,243		)
Ending balance, March 31	$	122,531

On January 1, 2018, total contract assets were $11.3 million and total contract liabilities were $71.1 million. On March 31, 2018, total contract assets were $14.2 million and total contract liabilities were $136.7 million. The contract assets primarily relate to contracts that include a retention clause and allocations related to contracts with multiple performance obligations. The contract liabilities primarily relate to deferred revenue, such as extended warranty and maintenance cost.

Transaction price allocated to the remaining performance obligations

Total transaction price allocated to remaining performance obligations represent committed but undelivered products and services for contracts and purchase orders at period end. Twelve-month remaining performance obligations represent the portion of total transaction price allocated to remaining performance obligations that we estimate will be recognized as revenue over the next 12 months. Total transaction price allocated to remaining performance obligations is not a complete measure of our future revenues as we also receive orders where the customer may have legal termination rights but are not likely to terminate.

30

Total transaction price allocated to remaining performance obligations related to contracts is approximately $1.1 billion for the next twelve months and approximately $740 million for periods longer than 12 months. The total remaining performance obligations is comprised of product and services components. The services component relates primarily to maintenance agreements for which customers pay a full year's maintenance in advance, and services revenue is generally recognized over the service period. Total transaction price allocated to remaining performance obligations also includes our extended warranty contracts, for which revenue is recognized over the warranty period, and hardware, which is recognized as units are delivered. The estimate of when remaining performance obligations will be recognized requires significant judgment.

Cost to obtain a contract and cost to fulfill a contract with a customer

Cost to obtain a contract and costs to fulfill a contract were capitalized and amortized using a systematic rational approached to align with the transfer of control of underlying contracts with customers. While amounts were capitalized, amounts are not material for disclosure.

Disaggregation of revenue

Refer to Note 15 and the Consolidated Statement of Operations for disclosure regarding the disaggregation of revenue into categories which depict how revenue and cash flows are affected by economic factors. Specifically, our operating segments and geographical regions as disclosed and product categories of hardware and services as presented.

Impacts on financial statements

Under the modified retrospective transition method, we are required to provide additional disclosures during 2018 of the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any.

The effects of Topic 606 and Subtopic ASC 340-40 on our Consolidated Balance Sheet as of March 31, 2018 were total deferred revenue would have been higher by approximately $15 million, of which, approximately $6 million would have been classified as short term. The difference in deferred revenue reflects the timing of revenue recognition related to certain of our customer contracts. The net impact of all adjustments would have resulted in an increase to our accumulated deficit of approximately $11 million. The difference in accumulated deficit reflects the cumulative effect of adoption and the net effect thereof on the Consolidated Statement of Operations for the three months ended March 31, 2018. The impact of the adoption was not material to the other line items.

The effect of Topic 606 and Subtopic ASC 340-40 was not material to the Consolidated Statements of Operations and the Consolidated Statement of Cash Flows for the three months ended March 31, 2018.

Note 17:    Business Combinations

Silver Spring Networks, Inc.

On January 5, 2018, we completed the acquisition of SSNI by purchasing 100% of SSNI's outstanding stock. The acquisition was financed through incremental borrowings and cash on hand. Refer to Note 6 for further discussion of our debt.

SSNI provides smart network and data platform solutions for electricity, gas, water and smart cities including advanced metering, distribution automation, demand-side management, and street lights. Solutions include one or several of the following: communications modules, access points, relays and bridges; network operating software, grid management, security and grid analytics managed services and SaaS; installation; implementation; and professional services including consulting and analysis. Itron is managing the SSNI business as our Networks operating segment.

The purchase price of SSNI was $809.2 million, which is net of $97.8 million of acquired cash and cash equivalents. Of the total consideration $802.5 million was paid in cash. The remaining $6.7 million relates to the fair value of pre-acquisition service for replacement awards of unvested SSNI options and restricted stock unit awards with an Itron equivalent award. We made a preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on estimated fair value assessments during the first quarter. We are continuing to collect information to determine the fair values of certain intangible assets, working capital, and deferred income taxes, all of which could affect goodwill. The fair values of these assets and liabilities are provisional until we are able to complete our assessment.

31

The following reflects our preliminary allocation of purchase price as of January 5, 2018:

	Fair Value			Weighted Average Useful Life
	(in thousands)			(in years)
Current Assets	$	86,962
Property, plant, and equipment	27,670
Other long-term assets (1)	(830		)
Identifiable intangible assets
Core-developed technology	81,900			5
Customer contract and relationships	133,500			10
Trademark and trade names	10,800			3
Total identified intangible assets subject to amortization	226,200			8
In-process research and development (IPR&D)	14,400
Total identified intangible assets	240,600
Goodwill	572,499
Current liabilities	(91,857		)
Customer contract and relationships	(23,900		)	5
Long-term liabilities	(1,928		)
Total net assets acquired	$	809,216

⁽¹⁾  Reflects adjustments to deferred tax assets and liabilities, net as a result of the acquisition, and is classified as part of our overall consolidated deferred tax asset. This negative deferred tax asset more than offsets the fair value of other noncurrent assets acquired.

The fair values for the identified trademarks and core-developed technology intangible assets were estimated using the relief from royalty method, which values the assets by estimating the savings achieved by ownership of trademark or technology when compared with the cost of licensing it from an independent owner.

The fair value of customer contracts and relationship 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. The fair value of IPR&D was valued utilizing the replacement cost method, which measures the value of an asset based on the cost to replace the existing asset. IPR&D will be amortized using the straight-line method after the technology is fully developed and is considered a product offering of SSNI. Incremental costs to be incurred for these projects will be recognized as product development expense as incurred within the Consolidated Statements of Operations.

Core-developed technology represents the fair values of SSNI products that have reached technological feasibility and were part of SSNI'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. The core-developed technology, trademarks, and customer contracts and relationships intangible assets valued using the income approach will be amortized using the estimated discounted cash flows assumed in the valuation models.

Goodwill of $572.5 million arising from the acquisition consists largely of the synergies expected from combining the operations of Itron and SSNI, as well as certain intangible assets that do not qualify for separate recognition. All of the goodwill balance was assigned to the Networks reporting unit and segment. We will not be able to deduct any of the goodwill balance for income tax purposes.

During the business combination, we incurred $15.6 million of acquisition related expenses, which include such activities as success fees, certain consulting and advisory costs, and incremental legal and accounting costs. In addition, we recognized $46.8 million of integration costs, which are expenses related to integrating SSNI into Itron, and includes expenses such as accounting and process integration and the related consulting fees, severance, site closure costs, system integration, and travel associated with knowledge transfers as we consolidate redundant positions. All acquisition and integration related expenses are included within general and administrative expenses in the Consolidated Statement of Operations.

32

The following table presents the revenues and net income (loss) from SSNI operations that are included in our Consolidated Statements of Operations:

	January 5, 2018 - March 31, 2018
Revenues	$	85,833
Net loss	(29,753		)

The following supplemental pro forma results are based on the individual historical results of Itron and SSNI, with adjustments to give effect to the combined operations as if the acquisition had been consummated on January 1, 2017.

	Three Months Ended March 31,
	2018			2017
	( in thousands)
Revenues	$	607,221		$	527,855
Net loss	(130,966		)	(27,234		)

The significant nonrecurring adjustments reflected in the proforma schedule above are considered material and include the following:

• Elimination of transaction costs incurred by SSNI 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, 2017

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.

Comverge

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 were considered final as of December 31, 2017.

Goodwill of $59.7 million arising from the acquisition was largely related to synergies expected from combined operations of Itron and Comverge, as well as certain intangible assets that did not qualify for separate recognition. All of the goodwill balance was assigned to the Electricity reporting unit and segment. We did not deduct any of the goodwill balance for income tax purposes.

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.

	Three Months Ended March 31,
	2018			2017
	( in thousands)
Revenues	$	607,221		$	491,762
Net income (loss)	(145,270		)	15,107

33

The significant nonrecurring adjustments reflected in the proforma schedule above are not considered material and include the following:

• 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

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.

34

Item 2:    Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and notes included in this report and with our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (SEC) on February 28, 2018.

Documents we provide to the SEC are available free of charge under the Investors section of our website at www.itron.com as soon as practicable after they are filed with or furnished to the SEC. In addition, these documents are available at the SEC's website (http://www.sec.gov), at the SEC's Headquarters at 100 F Street, NE, Washington, DC 20549, or by calling 1-800-SEC-0330.

Certain Forward-Looking Statements

This document contains forward-looking statements concerning our operations, financial performance, revenues, earnings growth, liquidity, restructuring, and other items. This document reflects our current plans and expectations and is based on information currently available as of the date of this Quarterly Report on Form 10-Q. When we use the words "expect," "intend," "anticipate," "believe," "plan," "project," "estimate," "future," "objective," "may," "will," "will continue," and similar expressions, they are intended to identify forward-looking statements. Forward-looking statements rely on a number of assumptions and estimates. Although we believe that these assumptions and estimates are reasonable, any of these assumptions and estimates could prove to be inaccurate and the forward looking statements based on them could be incorrect and cause our actual results to vary materially from expected results. For a more complete description of these and other risks, refer to Item 1A: "Risk Factors" included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed with the SEC on February 28, 2018 and our other reports on file with the SEC. We do not undertake any obligation to update or revise any forward looking statement in this document.

Overview

We 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 four operating segments: Electricity, Gas, Water, and Networks. Our Water operating segment includes our global water, and heat and allocation solutions. Networks became a new operating segment with the acquisition of SSNI. 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 and marketing function is managed under each segment. Our product development, service delivery, and manufacturing operations are managed on a worldwide basis to promote a global perspective in our operations and processes and yet still maintains alignment with the segments.

We have three 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. Interest income, interest expense, other income (expense), income tax provision, and certain corporate operating expenses are neither allocated to the segments nor included in the measures of segment performance.

The following discussion includes financial information prepared in accordance with accounting principles generally accepted in the United States (GAAP), as well as certain adjusted or non-GAAP financial measures such as constant currency, free cash flow, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, adjusted EBITDA, and non-GAAP diluted earnings per share (EPS). We believe that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating current period performance and in assessing future performance. For these reasons, our internal management reporting also includes non-GAAP measures. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

In our discussions of the operating results below, we sometimes refer to the impact of foreign currency exchange rate fluctuations, which are references to the differences between the foreign currency exchange rates we use to convert operating results from local currencies into U.S. dollars for reporting purposes. We also use the term "constant currency," which represents results adjusted to exclude foreign currency exchange rate impacts. We calculate the constant currency change as the difference between the current period results translated using the current period currency exchange rates and the comparable prior period's results restated using current period currency exchange rates. We believe the reconciliations of changes in constant currency provide useful supplementary information to investors in light of fluctuations in foreign currency exchange rates.

35

Refer to the Non-GAAP Measures section below on pages 48-50 for information about these non-GAAP measures and the detailed reconciliation of items that impacted free cash flow, non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, adjusted EBITDA, and non-GAAP diluted EPS in the presented periods.

Total Company Highlights and Unit Shipments

Highlights and significant developments for the three months ended March 31, 2018

• Revenues were $607.2 million compared with $477.6 million in the same period last year, an increase of $129.6 million, or 27%.

• Gross margin was 29.6% compared with 33.0% in the same period last year.

• Operating expenses increased $193.5 million, or 153%, compared with the same period last year.

• Net loss attributable to Itron, Inc. was $145.7 million, compared with net income of $15.8 million in the same period last year.

• GAAP diluted EPS decreased by $4.14 to a loss of $3.74 as compared with the same period last year.

• Non-GAAP net income attributable to Itron, Inc., was $5.1 million compared with $22.2 million in the same period last year.

• Non-GAAP diluted EPS was $0.13, a decrease of $0.44 compared with the same period last year.

• Adjusted EBITDA decreased $6.0 million compared with the same period last year.

Silver Spring Networks, Inc. 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 $809.2 million. SSNI provided Internet of Important Things^TM connectivity platforms and solutions to utilities and cities. The acquisition continues our focus on expanding management services and software-as-a-service solutions, which allows us to provide more value to our customers by optimizing devices, network technologies, outcomes and analytics. Upon acquisition, SSNI changed its name to Itron Networked Solutions, Inc., and will operate separately as our Networks operating segment.

In order to facilitate funding the acquisition of SSNI, we entered into a $1.2 billion senior secured credit facility (the 2018 credit facility), which amended and restated our existing senior secured credit facility. The 2018 credit facility consists of a $650 million U.S. dollar term loan and a multicurrency revolving line of credit with a principal amount of up to $500 million. We also issued $300 million of 5% senior notes on December 22, 2017 to fund this acquisition. On January 19, 2018, we issued an additional $100 million of 5% senior notes. For additional information regarding our 2018 credit facility and senior notes, refer to Item 1: "Financial Statements (Unaudited), Note 6: Debt."

We are also implementing an integration plan associated with this acquisition. For the three months ended March 31, 2018 we recognized $62.4 million of acquisition and integration related expenses, and we anticipate $30 million to $40 million of additional expenses will be incurred in future periods. We anticipate annualized savings of $50 million at the conclusion of the integration plan, which we expect to substantially complete by the end of 2020. For further discussion of the acquisition, refer to Item 1: "Financial Statements (Unaudited), Note 17: Business Combinations."

2018 Restructuring Projects

On February 22, 2018, our Board of Directors approved a restructuring plan (2018 Projects). The 2018 Projects 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 recorded restructuring expense of $88.0 million related to the 2018 Projects during the three months ended March 31, 2018, and we anticipate an additional $16.5 million to be recognized in future periods. At the conclusion of the 2018 Projects, we anticipate annualized savings of $45 million to $50 million. For further discussion of restructuring activities, refer to Item 1: "Financial Statements (Unaudited), Note 12: Restructuring."

36

The following table summarizes the changes in GAAP and Non-GAAP financial measures:

	Three Months Ended March 31,
	2018			2017			% Change
	(in thousands, except margin and per share data)
GAAP
Revenues
Product revenues	$	537,110		$	432,365		24%
Service revenues	70,111			45,227			55%
Total revenues	607,221			477,592			27%
Gross profit	179,855			157,637			14%
Operating expenses	320,303			126,810			153%
Operating income (loss)	(140,448		)	30,827			N/A
Other income (expense)	(16,010		)	(5,766		)	178%
Income tax benefit (provision)	11,188			(9,047		)	N/A
Net income (loss) attributable to Itron, Inc.	(145,666		)	15,845			N/A
Non-GAAP(1)
Non-GAAP operating expenses	$	152,051		$	118,876		28%
Non-GAAP operating income	27,804			38,761			(28)%
Non-GAAP net income attributable to Itron, Inc.	5,094			22,186			(77)%
Adjusted EBITDA	39,573			45,585			(13)%
GAAP Margins and Earnings Per Share
Gross margin
Product gross margin	28.7		%	33.6		%
Service gross margin	36.5		%	27.3		%
Total gross margin	29.6		%	33.0		%
Operating margin	(23.1		)%	6.5		%
Basic EPS	$	(3.74	)	$	0.41
Diluted EPS	(3.74		)	0.40
Non-GAAP Earnings Per Share(1)
Non-GAAP diluted EPS	$	0.13		$	0.57

⁽¹⁾  These measures exclude certain expenses that we do not believe are indicative of our core operating results. See pages 48-50 for information about these non-GAAP measures and reconciliations to the most comparable GAAP measures.

Meter and Module Summary

We classify meters into two categories:

• 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)

In addition, smart meter communication modules and network interface cards can be sold separately from the meter.

37

Our revenue is driven significantly by sales of meters and communication modules. A summary of our meter and communication module shipments is as follows:

	Three Months Ended March 31,
	2018	2017
	(units in thousands)
Meters (1)
Standard	4,140	4,010
Smart	3,060	2,440
Total meters	7,200	6,450
Stand-alone communication modules and cards (2)
Smart	2,480	1,400

⁽¹⁾ The Networks segment shipped an immaterial number of meters during the three months ended March 31, 2018.

⁽²⁾ The Networks segment shipped approximately 990,000 network interface cards during the three months ended March 31, 2018.

Results of Operations

Revenues and Gross Margin

The actual results and effects of changes in foreign currency exchange rates in revenues and gross profit were as follows:

						Effect of Changes in Foreign Currency Exchange Rates		Constant Currency Change(1)		Total Change
		Three Months Ended March 31,
		2018		2017
		(in thousands)
Total Company
	Revenues	$	607,221	$	477,592	$	25,777	$	103,852	$	129,629
	Gross profit	179,855		157,637		7,650		14,568		22,218

⁽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.

Revenues

Revenues increased$129.6 million, or 27% for the three months ended March 31, 2018, compared with the same periods in 2017. For the three months ended March 31, 2018, revenues increased in the Electricity, Gas, and Water segments by $13.7 million, $13.5 million, and $16.6 million, respectively, compared with the same period in 2017. In addition, our new Networks segment contributed $85.9 million of revenues for the three months ended March 31, 2018. Service revenues increased $24.9 million, or 55%, due to $18.5 million contributed from the Networks segment and $7.4 million from our Itron Distributed Energy Management business (formally Comverge, Inc.) acquired during the second quarter of 2017. Product revenues increased $104.7 million, or 24%, including $67.4 million from the Networks segment, and growth in all other segments. Changes in exchange rates favorably impacted total revenues by $25.8 million.

No customer represented more than 10% of total revenues for the three months ended March 31, 2018 or 2017, respectively. Our 10 largest customers accounted for 32% and 33% of total revenues during the three months ended March 31, 2018 and 2017, respectively.

Gross Margin

Gross margin for the first quarter of 2018 was 29.6%, compared with 33.0% for the same period in 2017. Our gross margin associated with product sales decreased to 28.7% for the three months ended March 31, 2018 compared with 33.6% for the same period in 2017. This decline was the result of the continued transition of our supply chain and temporary manufacturing inefficiencies as part of our global restructuring and strategic sourcing projects. In addition, commodity and component price increases negatively impacted our margins during the quarter. Gross margin associated with our service revenues increased to 36.5% for the three months ended March 31, 2018 as compared with 27.3% for the same period in 2017. The increase resulted from the inclusion of our Networks segment, which has significantly higher margins on service revenues as compared with the Electricity, Gas, and Water segments.

38

Operating Expenses

The actual results and effects of changes in foreign currency exchange rates in operating expenses were as follows:

						Effect of Changes in Foreign Currency Exchange Rates		Constant Currency Change(1)		Total Change
		Three Months Ended March 31,
		2018		2017
		(in thousands)
Total Company
	Sales and marketing	$	51,921	$	41,255	$	2,923	$	7,743	$	10,666
	Product development	60,284		40,767		1,744		17,773		19,517
	General and administrative	102,493		37,187		2,035		63,271		65,306
	Amortization of intangible assets	17,740		4,549		501		12,690		13,191
	Restructuring	87,865		3,052		16		84,797		84,813
	Total Operating expenses	$	320,303	$	126,810	$	7,219	$	186,274	$	193,493

⁽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.

Operating expenses increased $193.5 million for the three months ended March 31, 2018 as compared with the same period in 2017. This was primarily due to increased restructuring expense of $84.8 million following the announcement of the 2018 Projects as well as increased acquisition and integration expense related to SSNI of $62.4 million which are included within general and administrative expenses.

Other Income (Expense)

The following table shows the components of other income (expense):

	Three Months Ended March 31,						% Change
	2018			2017
	(in thousands)
Interest income	$	661		$	269		146%
Interest expense	(12,113		)	(2,933		)	313%
Amortization of prepaid debt fees	(3,391		)	(266		)	1,175%
Other income (expense), net	(1,167		)	(2,836		)	(59)%
Total other income (expense)	$	(16,010	)	$	(5,766	)	178%

Total other income (expense) for the three months ended March 31, 2018 was a net expense of $16.0 million, compared with $5.8 million in the same period in 2017. The increase was related to the increase in interest expense and amortization of prepaid debt fees as a result of the 2018 credit facility and senior secured notes, which was partially offset by the fluctuations in the recognized foreign currency exchange gains and losses due to transactions denominated in a currency other than the reporting entity's functional currency in other income (expense), net.

Income Tax Provision

For the three months ended March 31, 2018, our income tax benefit was $11.2 million compared with income tax expense of $9.0 million for the same period in 2017. Our tax rate for the three months ended March 31, 2018 of 7% differed from the federal statutory rate of 21% due to the forecasted mix of earnings in domestic and international jurisdictions, a benefit related to excess stock based compensation, uncertain tax positions, and losses experienced in jurisdictions with valuation allowances on deferred tax assets. Our tax rate for the three months ended March 31, 2017 of 36% differed from the federal statutory rate of 35% due to the forecasted mix of earnings in domestic and international jurisdictions, a benefit related to excess stock based compensation, and losses experienced in jurisdictions with valuation allowances on deferred tax assets.

The tax provision for December 31, 2017 included the provisional determination of the impact to our deferred tax positions of the Tax Cuts and Jobs Act. We will continue to review any additional guidance issued by the U.S. Department of the Treasury, Internal Revenue Service, Financial Accounting Standards Board, or other regulatory bodies and adjust our provisional amount during the

39

measurement period, which should not extend beyond one year from the enactment date of December 22, 2017. For the three months ended March 31, 2018 no changes to these provisional amounts have been recorded.

Operating Segment Results

For a description of our operating segments, refer to Item 1: "Financial Statements (Unaudited) Note 15: Segment Information."

	Three Months Ended March 31,
	2018			2017		% Change
Segment Revenues	(in thousands)
Electricity	$	252,405		$	238,751	6%
Gas	137,739			124,211		11%
Water	131,194			114,630		14%
Networks	85,883			—		N/A
Total revenues	$	607,221		$	477,592	27%
	Three Months Ended March 31,
	2018					2017
	Gross Profit			Gross Margin		Gross Profit			Gross Margin
Segment Gross Profit and Margin	(in thousands)					(in thousands)
Electricity	$	69,975		27.7%		$	67,250		28.2%
Gas	43,471			31.6%		50,815			40.9%
Water	37,805			28.8%		39,572			34.5%
Networks	28,604			33.3%		—			N/A
Total gross profit and margin	$	179,855		29.6%		$	157,637		33.0%
	Three Months Ended March 31,
	2018			2017		% Change
Segment Operating Expenses	(in thousands)
Electricity	$	72,743		$	50,166	45%
Gas	71,819			29,084		147%
Water	49,515			30,768		61%
Networks	104,114			—		N/A
Corporate unallocated	22,112			16,792		32%
Total operating expenses	$	320,303		$	126,810	153%
	Three Months Ended March 31,
	2018					2017
	Operating Income (Loss)			Operating Margin		Operating Income (Loss)			Operating Margin
Segment Operating Income (Loss) and Operating Margin	(in thousands)					(in thousands)
Electricity	$	(2,768	)	(1.1)%		$	17,084		7.2%
Gas	(28,348		)	(20.6)%		21,731			17.5%
Water	(11,710		)	(8.9)%		8,804			7.7%
Networks	(75,510		)	(87.9)%		—			N/A
Corporate unallocated	(22,112		)	(3.6)%		(16,792		)	(3.5)%
Total Company	$	(140,448	)	(23.1)%		$	30,827		6.5%

40

Electricity

The effects of changes in foreign currency exchange rates and the constant currency changes in certain Electricity segment financial results were as follows:

						Effect of Changes in Foreign Currency Exchange Rates		Constant Currency Change(1)		Total Change
		Three Months Ended March 31,
		2018		2017
		(in thousands)
Electricity Segment
	Revenues	$	252,405	$	238,751	$	8,816	$	4,838	$	13,654
	Gross profit	69,975		67,250		2,381		344		2,725
	Operating expenses	72,743		50,166		1,949		20,628		22,577

⁽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.

Revenues - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

Revenues increased$13.7 million, or 6%, for the three months ended March 31, 2018, compared with the same period in 2017. This increase was primarily driven by increased service revenues from the addition of our Itron Distributed Energy Management (DEM) business and strong product revenue growth in our Europe, Middle East, and Africa (EMEA) region. DEM contributed $12.5 million to total revenues during the three months ended March 31, 2018. These increases were partially offset by a decline in North America product revenues. Changes in foreign currency exchange rates favorably impacted revenues by $8.8 million.

For the three months ended March 31, 2018, one customer represented 22% and another customer represented 16%, of total Electricity operating segment revenues. For the three months ended March 31, 2017, one customer represented 18% of total revenues.

Gross Margin - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

Gross margin was 27.7% for the three months ended March 31, 2018, compared with 28.2% for the same period in 2017. The 50 basis point decrease over the prior year was primarily the result of certain manufacturing inefficiencies, partially offset by improved sales of our smart meters.

Operating Expenses - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

Operating expenses increased $22.6 million, or 45%, for the three months ended March 31, 2018, compared with the same period in 2017. The increase was primarily a result of restructuring expenses associated with the announcement of the 2018 Projects.

Gas

The effects of changes in foreign currency exchange rates and the constant currency changes in certain Gas segment financial results were as follows:

						Effect of Changes in Foreign Currency Exchange Rates		Constant Currency Change(1)			Total Change
		Three Months Ended March 31,
		2018		2017
		(in thousands)
Gas Segment
	Revenues	$	137,739	$	124,211	$	5,706	$	7,822		$	13,528
	Gross profit	43,471		50,815		896		(8,240		)	(7,344		)
	Operating expenses	71,819		29,084		1,194		41,541			42,735

⁽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.

41

Revenues - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

Revenues increased$13.5 million, or 11%, for the three months ended March 31, 2018 compared with the same period in 2017. This was primarily related to strong smart meter sales in our EMEA region. Changes in foreign currency exchange rates favorably impacted revenues by $5.7 million.

For the three months ended March 31, 2018, one customer represented 11% of total Gas operating segment revenues. No single customer represented more than 10% of the Gas operating segment revenues for the three months ended 2017.

Gross Margin - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

Gross margin was 31.6% for the three months ended March 31, 2018, compared with 40.9% for the same period in 2017. The 930 basis point decrease was related to manufacturing inefficiencies caused by our restructuring activities, as well as an unfavorable product mix in 2018.

Operating Expenses - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

Operating expenses increased$42.7 million, or 147%, for the three months ended March 31, 2018, compared with the same period in 2017. This was primarily related to higher restructuring expenses associated with the announcement of the 2018 Projects.

Water

The effects of changes in foreign currency exchange rates and the constant currency changes in certain Water segment financial results were as follows:

						Effect of Changes in Foreign Currency Exchange Rates		Constant Currency Change(1)			Total Change
		Three Months Ended March 31,
		2018		2017
		(in thousands)
Water Segment
	Revenues	$	131,194	$	114,630	$	11,255	$	5,309		$	16,564
	Gross profit	37,805		39,572		4,374		(6,141		)	(1,767		)
	Operating expenses	49,515		30,768		2,433		16,314			18,747

⁽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.

Revenues - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

Revenues increased$16.6 million, or 14%, for the three months ended March 31, 2018, compared with the same period in 2017. This was primarily in EMEA due to changes in foreign currency exchange rates which favorably impacted revenues by $11.3 million.

No single customer represented more than 10% of the Water operating segment revenues for the three months endedMarch 31, 2018 and 2017.

Gross Margin - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

During the first quarter of 2018, gross margin decreased to 28.8%, compared with 34.5% in 2017. The 570 basis point decrease in gross margin was driven primarily by higher commodity prices and manufacturing inefficiencies as a result of our global restructuring and strategic sourcing projects as well as an unfavorable product mix in 2018 as compared with 2017.

Operating Expenses - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

Operating expenses for the three months ended March 31, 2018 increased by $18.7 million, or 61%, compared with 2017. This was primarily related to higher restructuring expenses associated with the announcement of the 2018 Projects.

42

Networks

Networks is a new operating segment with the acquisition of SSNI; therefore no data for comparable periods is available. The changes in certain Networks segment financial results were as follows:

						Total Change
		Three Months Ended March 31,
		2018		2017
		(in thousands)
Networks Segment
	Revenues	$	85,883	$	—	$	85,883
	Gross profit	28,604		—		28,604
	Operating expenses	104,114		—		104,114

Revenues - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

The Networks segment recognized $85.9 million in revenues for the three months ended March 31, 2018. This revenue was primarily related to product revenues in North America, driven by the nearly one million total communication modules sold.

For the three months ended March 31, 2018, one customer represented 11% of total Networks operating segment revenues.

Gross Margin - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

During the first quarter of 2018, gross margin was 33.3%. The gross margin was reduced during the quarter as a result of purchase accounting which requires inventory to be adjusted to its fair value upon acquisition. As compared with the pre-acquisition carrying value of the inventory, this adjustment to fair market value reduced gross margin approximately 500 basis points. We do not expect similar purchase accounting impacts related to gross margin in future periods as all inventory impacted was sold.

Operating Expenses - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

Operating expenses for the three months ended March 31, 2018 were $104.1 million. This was primarily comprised of acquisition and integration related expenses of $62.4 million, net amortization of acquired intangible assets and liabilities of $12.9 million, and product development expenses of $15.7 million.

Corporate unallocated

Corporate Unallocated Expenses - Three months ended March 31, 2018 vs. Three months ended March 31, 2017

Operating expenses not directly associated with an operating segment are classified as "Corporate unallocated." These expenses increased by $5.3 million, or 32%, for the three months ended March 31, 2018 compared with the same period in 2017. The increase was primarily due to higher restructuring expenses, partially offset by lower professional service fees.

Bookings and Backlog of Orders

Bookings for a reported period represent customer contracts and purchase orders received during the period for hardware, software and services that have met certain conditions, such as regulatory and/or contractual approval. Total backlog represents committed but undelivered products and services for contracts and purchase orders at period-end. Twelve-month backlog represents the portion of total backlog that we estimate will be recognized as revenue over the next 12 months. Backlog is not a complete measure of our future revenues as we also receive significant book-and-ship orders as well as frame contracts. Bookings and backlog may fluctuate significantly due to the timing of large project awards. In addition, annual or multi-year contracts are subject to rescheduling and cancellation by customers due to the long-term nature of the contracts. Beginning total backlog, plus bookings, minus revenues, will not equal ending total backlog due to miscellaneous contract adjustments, foreign currency fluctuations, and other factors. Total bookings and backlog include certain contracts with termination for convenience clause, which will not agree to the total transaction price allocated to remaining performance obligations disclosed in Item 1: "Financial Statements (Unaudited), Note 16: Revenues."

43

Quarter Ended	Quarterly Bookings		Ending Total Backlog (1)		Ending 12-Month Backlog (2)
	(in millions)
March 31, 2018	$	557	$	3,139	$	1,363
December 31, 2017	810		1,750		931
September 30, 2017	343		1,488		847
June 30, 2017	416		1,629		860
March 31, 2017	424		1,605		819

⁽¹⁾  Ending total backlog includes $121.1 million and $1.4 billion related to Comverge and SSNI, respectively, as of March 31, 2018.

⁽²⁾  Ending 12-month backlog includes $45.5 million and $336.9 million related to Comverge and SSNI, respectively, as of March 31, 2018.

Information on bookings by our operating segments is as follows:

Quarter Ended	Total Bookings		Electricity		Gas		Water		Networks
	(in millions)
March 31, 2018	$	557	$	217	$	126	$	134	$	80
December 31, 2017	810		477		199		134		—
September 30, 2017	343		136		83		124		—
June 30, 2017	416		210		95		111		—
March 31, 2017	424		174		125		125		—

Financial Condition

Cash Flow Information:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Operating activities	$	(24,448	)	$	63,257
Investing activities	(819,821		)	(9,200		)
Financing activities	501,839			(2,253		)
Effect of exchange rates on cash and cash equivalents	563			2,559
Increase (decrease) in cash, cash equivalents, and restricted cash	$	(341,867	)	$	54,363

Cash, cash equivalents, and restricted cash was $145.5 million at March 31, 2018, compared with $487.3 million at December 31, 2017. The $341.9 million decrease in cash, cash equivalents, and restricted cash was primarily the result of our investing activities related to our acquisition of SSNI, as well a decrease in cash flow provided by operating activities, partially offset by increased net proceeds from borrowings associated with the acquisition of SSNI.

Operating activities

Cash used by operating activities during the three months ended March 31, 2018 was $24.4 million compared with $63.3 million of cash provided by operating activities during the same period in 2017. The decrease was primarily due to a reduction in net income (loss) adjusted for non-cash items and changes in operating asset and liabilities. Uses of cash include a $34.7 million increase in cash used for accounts payable due to the timing of payments, and a $20.9 million reduction in cash provided by accounts receivable due to the timing of collections. These were partially offset by $88.0 million of accrued severance recognized for the 2018 Projects, most of which will be paid in future periods.

Investing activities

Cash used by investing activities during the three months ended March 31, 2018 was $810.6 million higher compared with the same period in 2017. This increased use of cash was primarily related to our acquisition of SSNI.

Financing activities

Net cash provided by financing activities during the three months ended March 31, 2018 was $501.8 million, compared with a net use of cash of $2.3 million for the same period in 2017. The increase in cash provided by financing activities was primarily caused by $555.9 million of proceeds from borrowings utilized for the acquisition of SSNI. This was partially offset by a $29.6 million increased use of cash for debt repayments, and a $24.0 million increased use of cash for debt issuance costs.

44

Effect of exchange rates on cash and cash equivalents

The effect of exchange rates on the cash balances of currencies held in foreign denominations for the three months ended March 31, 2018 was an increase of $0.6 million, compared with an increase of $2.6 million for the same period in 2017.

Free cash flow (Non-GAAP)

To supplement our Consolidated Statements of Cash Flows presented on a GAAP basis, we use the non-GAAP measure of free cash flow to analyze cash flows generated from our operations. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity. We calculate free cash flows, using amounts from our Consolidated Statements of Cash Flows, as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Net cash provided (used) by operating activities	$	(24,448	)	$	63,257
Acquisitions of property, plant, and equipment	(17,433		)	(9,122		)
Free cash flow	$	(41,881	)	$	54,135

Free cash flow decreased primarily as a result of lower cash provided by operating activities. See the cash flow discussion of operating activities above. In addition, acquisition of property, plan, and equipment increased $8.3 million during the three months ended March 31, 2018 primarily due to investments related to our strategic sourcing projects and related manufacturing and supplier transitions.

Off-balance sheet arrangements:

We have no off-balance sheet financing agreements or guarantees as defined by Item 303 of Regulation S-K at March 31, 2018 and December 31, 2017 that we believe are reasonably likely to have a current or future effect on our financial condition, results of operations, or cash flows.

Liquidity and Capital Resources:

Our principal sources of liquidity are cash flows from operations, borrowings, and sales of common stock. Cash flows may fluctuate and are sensitive to many factors including changes in working capital and the timing and magnitude of capital expenditures and payments of debt. Working capital, which represents current assets less current liabilities, was $294.6 million at March 31, 2018, compared with $342.0 million at December 31, 2017.

Borrowings

On January 5, 2018, we entered into a credit agreement providing for committed credit facilities in the amount of $1.2 billion U.S. dollars which amended and restated in its entirety our credit agreement dated June 23, 2015 and replaced committed facilities in the amount of $725 million. 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. Both the term loan and the revolver mature on January 5, 2023, and can be repaid without penalty. Amounts repaid on the term loan may not be reborrowed and amounts borrowed under the revolver during the credit facility term may be repaid and reborrowed until the revolver's maturity, at which time all outstanding loans together with all accrued and unpaid interest must be repaid.

For further description of our borrowing, refer to Item 1: "Financial Statements (Unaudited), Note 6: Debt."

For a description of our letters of credit and performance bonds, and the amounts available for additional borrowings or letters of credit under our lines of credit, including the revolver that is part of our credit facility, refer to Item 1: "Financial Statements (Unaudited), Note 11: Commitments and Contingencies."

45

Silver Spring Networks, Inc. Acquisition

As part of the acquisition of SSNI, we announced an integration plan to obtain approximately $50 million of annualized savings by the end of 2020. We have recognized $62.4 million of the acquisition and integration related expenses during the three months ended March 31, 2018, and expect to recognize an additional $30 million to $40 million of expenses in future periods, 95% of which will be cash expenses. The majority of the additional expenses are expected to be recognized over the next 12 months.

For further details regarding our acquisition and integration activities, refer to Item 1: "Financial Statements (Unaudited), Note 17: Business Combinations."

Restructuring

As of March 31, 2018, $121.6 million was accrued for restructuring projects, of which $60.3 million is expected to be paid over the next 12 months. We also expect to recognize approximately $22 million in future restructuring costs, which will result in cash expenditures.

For further details regarding our restructuring activities, refer to Item 1: "Financial Statements (Unaudited), Note 12: Restructuring."

Stock Repurchases

On February 23, 2017, Itron's Board of Directors authorized us 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 Liquidity Considerations

We have tax credits and net operating loss carryforwards in various jurisdictions that are available to reduce cash taxes. However, utilization of tax credits and net operating losses are limited in certain jurisdictions. Based on current projections, we expect to pay, net of refunds, approximately $4 million in state taxes and $16 million in local and foreign taxes during 2018. We do not expect to pay any U.S. federal taxes. For a discussion of our tax provision and unrecognized tax benefits, see Item 1: "Financial Statements (Unaudited), Note 10: Income Taxes."

At March 31, 2018, we are under examination by certain tax authorities for the 2000 to 2015 tax years. The material jurisdictions where we are subject to examination include, among others, the United States, France, Germany, Italy, Brazil, and the United Kingdom. No material changes have occurred to previously disclosed assessments. 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 liquidity.

We have not provided for U.S. deferred taxes related to the cash in certain foreign subsidiaries because our investment is considered permanent in duration. As of March 31, 2018, there was $58.7 million of cash and short-term investments held by certain foreign subsidiaries in which we are permanently reinvested for tax purposes. If this cash were repatriated to fund U.S. operations, additional tax costs may be required. Tax is one of the many factors that we consider in the management of global cash. Included in the determination of the tax costs in repatriating foreign cash into the United States are the amount of earnings and profits in a particular jurisdiction, withholding taxes that would be imposed, and available foreign tax credits. Accordingly, the amount of taxes that we would need to accrue and pay to repatriate foreign cash could vary significantly.

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, Inc., we consolidate them because we have a greater than 50% ownership interest and/or because we exercise control over the operations. 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. At March 31, 2018, $9.2 million of our consolidated cash balance is held in our joint venture entities. As a result, the minority shareholders of these entities have rights to their proportional share of this cash balance, and there may be limitations on our ability to repatriate cash to the United States from these entities.

General Liquidity Overview

We expect to grow through a combination of internal new product development, licensing technology from and to others, distribution agreements, partnering arrangements, and acquisitions of technology or other companies. We expect these activities to be funded with existing cash, cash flow from operations, borrowings, or the sale of common stock or other securities. We believe existing sources of liquidity will be sufficient to fund our existing operations and obligations for the next 12 months and into the foreseeable future, but offer no assurances. Our liquidity could be affected by the stability of the electricity, gas, and water industries, competitive pressures, our dependence on certain key vendors and components, changes in estimated liabilities for product warranties and/or litigation, future business combinations, capital market fluctuations, international risks, and other factors described under "Risk Factors" within Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was

46

filed with the SEC on February 28, 2018, as well as "Quantitative and Qualitative Disclosures About Market Risk" within Item 3 of Part I included in this Quarterly Report on Form 10-Q.

Contingencies

Refer to Item 1: "Financial Statements (Unaudited), Note 11: Commitments and Contingencies."

Critical Accounting Estimates and Policies

The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements. Changes in these estimates and assumptions are considered reasonably possible and may have a material effect on our consolidated financial statements and thus actual results could differ from the amounts reported and disclosed herein. Our critical accounting policies that require the use of estimates and assumptions were discussed in detail in the 2017 Annual Report on Form 10-K and have not changed materially, with the exception of the adoption of Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers.

Refer to Item 1: "Financial Statements (Unaudited), Note 1: Summary of Significant Accounting Policies" included in this Quarterly Report on Form 10-Q for further disclosures regarding new accounting pronouncements.

47

Non-GAAP Measures

Our consolidated financial statements are prepared in accordance with GAAP, which we supplement with certain non-GAAP financial information. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. These non-GAAP measures exclude the impact of certain expenses that we do not believe are indicative of our core operating results. We use these non-GAAP financial measures for financial and operational decision making and/or as a means for determining executive compensation. These non-GAAP financial measures facilitate management's internal comparisons to our historical performance as well as comparisons to our competitors' operating results. Our executive compensation plans exclude non-cash charges related to amortization of intangibles and certain discrete cash and non-cash charges such as acquisition and integration related expenses, restructuring charges or goodwill impairment charges. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because they provide greater transparency with respect to key metrics used by management in its financial and operational decision making and because they are used by our institutional investors and the analyst community to analyze the health of our business.

Non-GAAP operating expenses and non-GAAP operating income – We define non-GAAP operating expenses as operating expenses excluding certain expenses related to the amortization of intangible assets, restructuring, acquisition and integration, and goodwill impairment. We define non-GAAP operating income as operating income excluding the expenses related to the amortization of intangible assets, restructuring, acquisition and integration, and goodwill impairment. Acquisition and integration related expenses include costs which are incurred to affect and integrate business combinations, such as professional fees, certain employee retention and salaries related to integration, severances, contract terminations, travel costs related to knowledge transfer, system conversion costs, and asset impairment charges. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of expenses that are related to acquisitions and restructuring projects. By excluding these expenses, we believe that it is easier for management and investors to compare our financial results over multiple periods and analyze trends in our operations. For example, in certain periods expenses related to amortization of intangible assets may decrease, which would improve GAAP operating margins, yet the improvement in GAAP operating margins due to this lower expense is not necessarily reflective of an improvement in our core business. There are some limitations related to the use of non-GAAP operating expenses and non-GAAP operating income versus operating expenses and operating income calculated in accordance with GAAP. We compensate for these limitations by providing specific information about the GAAP amounts excluded from non-GAAP operating expense and non-GAAP operating income and evaluating non-GAAP operating expense and non-GAAP operating income together with GAAP operating expense and operating income.

Non-GAAP net income and non-GAAP diluted EPS – We define non-GAAP net income as net income attributable to Itron, Inc. excluding the expenses associated with amortization of intangible assets, restructuring, acquisition and integration, goodwill impairment, amortization of debt placement fees, the transition to the Tax Cuts and Jobs Act, and the tax effect of excluding these expenses. We define non-GAAP diluted EPS as non-GAAP net income divided by the weighted average shares, on a diluted basis, outstanding during each period. We consider these financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income. The same limitations described above regarding our use of non-GAAP operating income apply to our use of non-GAAP net income and non-GAAP diluted EPS. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP measures and evaluating non-GAAP net income and non-GAAP diluted EPS together with GAAP net income attributable to Itron, Inc. and GAAP diluted EPS.

Adjusted EBITDA – We define adjusted EBITDA as net income (a) minus interest income, (b) plus interest expense, depreciation and amortization, restructuring, acquisition and integration related expense, goodwill impairment and (c) excluding income tax provision or benefit. Management uses adjusted EBITDA as a performance measure for executive compensation. A limitation to using adjusted EBITDA is that it does not represent the total increase or decrease in the cash balance for the period and the measure includes some non-cash items and excludes other non-cash items. Additionally, the items that we exclude in our calculation of adjusted EBITDA may differ from the items that our peer companies exclude when they report their results. We compensate for these limitations by providing a reconciliation of this measure to GAAP net income.

Free cash flow – We define free cash flow as net cash provided by operating activities less cash used for acquisitions of property, plant and equipment. We believe free cash flow provides investors with a relevant measure of liquidity and a useful basis for assessing our ability to fund our operations and repay our debt. The same limitations described above regarding our use of adjusted EBITDA apply to our use of free cash flow. We compensate for these limitations by providing specific information regarding the GAAP amounts and reconciling to free cash flow.

48

Constant currency – We refer to the impact of foreign currency exchange rate fluctuations in our discussions of financial results, which references the differences between the foreign currency exchange rates used to translate operating results from local currencies into U.S. dollars for financial reporting purposes. We also use the term "constant currency," which represents financial results adjusted to exclude changes in foreign currency exchange rates as compared with the rates in the comparable prior year period. We calculate the constant currency change as the difference between the current period results and the comparable prior period's results restated using current period foreign currency exchange rates.

Reconciliation of GAAP Measures to Non-GAAP Measures

The tables below reconcile the non-GAAP financial measures of operating expenses, operating income, net income, diluted EPS, adjusted EBITDA, free cash flow, and operating income by segment with the most directly comparable GAAP financial measures.

TOTAL COMPANY RECONCILIATIONS				Three Months Ended March 31,
				2018			2017
				(in thousands, except per share data)
	NON-GAAP OPERATING EXPENSES
		GAAP operating expenses		$	320,303		$	126,810
			Amortization of intangible assets	(17,740		)	(4,549		)
			Restructuring	(87,865		)	(3,052		)
			Acquisition and integration related expense	(62,647		)	(333		)
		Non-GAAP operating expenses		$	152,051		$	118,876
	NON-GAAP OPERATING INCOME
		GAAP operating income (loss)		$	(140,448	)	$	30,827
			Amortization of intangible assets	17,740			4,549
			Restructuring	87,865			3,052
			Acquisition and integration related expense	62,647			333
		Non-GAAP operating income		$	27,804		$	38,761
	NON-GAAP NET INCOME & DILUTED EPS
		GAAP net income (loss) attributable to Itron, Inc.		$	(145,666	)	$	15,845
			Amortization of intangible assets	17,740			4,549
			Amortization of debt placement fees	3,343			241
			Restructuring	87,865			3,052
			Acquisition and integration related expense	62,647			333
			Income tax effect of non-GAAP adjustments(1)	(20,835		)	(1,834		)
		Non-GAAP net income attributable to Itron, Inc.		$	5,094		$	22,186
		Non-GAAP diluted EPS		$	0.13		$	0.57
		Weighted average common shares outstanding - Diluted		39,773			39,215
	ADJUSTED EBITDA
		GAAP net income (loss) attributable to Itron, Inc.		$	(145,666	)	$	15,845
			Interest income	(661		)	(269		)
			Interest expense	15,504			3,199
			Income tax provision (benefit)	(11,188		)	9,047
			Depreciation and amortization	31,072			14,378
			Restructuring	87,865			3,052
			Acquisition and integration related expense	62,647			333
		Adjusted EBITDA		$	39,573		$	45,585
	FREE CASH FLOW
			Net cash provided (used) by operating activities	$	(24,448	)	$	63,257
			Acquisitions of property, plant, and equipment	(17,433		)	(9,122		)
		Free Cash Flow		$	(41,881	)	$	54,135

⁽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.

49

SEGMENT RECONCILIATIONS				Three Months Ended March 31,
				2018			2017
				(in thousands)
	NON-GAAP OPERATING INCOME - ELECTRICITY
		Electricity - GAAP operating income (loss)		$	(2,768	)	$	17,084
			Amortization of intangible assets	2,880			2,362
			Restructuring	19,600			(176		)
			Acquisition and integration related expense	323			—
		Electricity - Non-GAAP operating income		$	20,035		$	19,270
	NON-GAAP OPERATING INCOME - GAS
		Gas - GAAP operating income (loss)		$	(28,348	)	$	21,731
			Amortization of intangible assets	1,124			1,277
			Restructuring	43,547			1,084
		Gas - Non-GAAP operating income		$	16,323		$	24,092
	NON-GAAP OPERATING INCOME - WATER
		Water - GAAP operating income (loss)		$	(11,710	)	$	8,804
			Amortization of intangible assets	835			910
			Restructuring	16,714			1,018
		Water - Non-GAAP operating income		$	5,839		$	10,732
	NON-GAAP OPERATING INCOME - NETWORKS
		Networks - GAAP operating loss		$	(75,510	)	$	—
			Amortization of intangible assets	12,901			—
			Acquisition and integration related expense	62,448			—
		Networks - Non-GAAP operating loss		$	(161	)	$	—
	NON-GAAP OPERATING INCOME - CORPORATE UNALLOCATED
		Corporate unallocated - GAAP operating loss		$	(22,112	)	$	(16,792	)
			Restructuring	8,004			1,126
			Acquisition and integration related expense (recovery)	(124		)	333
		Corporate unallocated - Non-GAAP operating loss		$	(14,232	)	$	(15,333	)

50

Item 3:    Quantitative and Qualitative Disclosures about Market Risk

In the normal course of business, we are exposed to interest rate and foreign currency exchange rate risks that could impact our financial position and results of operations. As part of our risk management strategy, we may use derivative financial instruments to hedge certain foreign currency and interest rate exposures. Our objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, therefore reducing the impact of volatility on earnings or protecting the fair values of assets and liabilities. We use derivative contracts only to manage existing underlying exposures. Accordingly, we do not use derivative contracts for trading or speculative purposes.

Interest Rate Risk

We are exposed to interest rate risk through our variable rate debt instruments. 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. At March 31, 2018, our LIBOR-based debt balance was $690.0 million.

In November 2015, we entered into three interest rate cap contracts with a total notional amount of $100 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.

The table below provides information about our financial instruments that are sensitive to changes in interest rates and the scheduled minimum repayment of principal and the weighted average interest rates at March 31, 2018. Weighted average variable rates in the table are based on implied forward rates in the Reuters U.S. dollar yield curve as of March 31, 2018 and our estimated leverage ratio, which determines our additional interest rate margin at March 31, 2018.

	2018			2019			2020			2021			2022			2023			Total		Fair Value
Variable Rate Debt
Principal: U.S. dollar term loan	$	12,188		$	28,438		$	44,777		$	60,937		$	65,000		$	438,660		$	650,000	$	658,796
Average interest rate	4.06		%	4.49		%	4.66		%	4.64		%	4.69		%	4.74		%
Principal: Multicurrency revolving line of credit	$	—		$	—		$	—		$	—		$	—		$	95,777		$	95,777	$	97,205
Average interest rate	2.86		%	3.04		%	3.18		%	3.38		%	3.57		%	3.67		%
Interest rate swap on LIBOR-based debt
Average interest rate (pay)	1.42		%	1.42		%	1.42		%	—		%	—		%
Average interest rate (receive)	2.06		%	2.49		%	2.66		%	—		%	—		%
Net/Spread	0.64		%	1.07		%	1.24		%	—		%	—		%

Based on a sensitivity analysis as of March 31, 2018, we estimate that, if market interest rates average one percentage point higher in 2018 than in the table above, our financial results in 2018 would not be materially impacted.

We continually monitor and assess our interest rate risk and may institute additional interest rate swaps or other derivative instruments to manage such risk in the future.

Foreign Currency Exchange Rate Risk

We conduct business in a number of countries. As a result, approximately half of our revenues and operating expenses are denominated in foreign currencies, which expose our account balances to movements in foreign currency exchange rates that could have a material effect on our financial results. Our primary foreign currency exposure relates to non-U.S. dollar denominated transactions in our international subsidiary operations, the most significant of which is the euro. Revenues denominated in functional currencies other than the U.S. dollar were 44% of total revenues for the three months ended March 31, 2018 compared with 47% for the same respective period in 2017.

51

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 March 31, 2018, a total of 57 contracts were offsetting our exposures from the Euro, Saudi Riyal, Indian Rupee, Chinese Yuan, Indonesian Rupiah, and various other currencies, with notional amounts ranging from $93,000 to $47.5 million. Based on a sensitivity analysis as of March 31, 2018, we estimate that, if foreign currency exchange rates average ten percentage points higher in 2018 for these financial instruments, our financial results in 2018 would not be materially impacted.

In future periods, we may use additional derivative contracts to protect against foreign currency exchange rate risks.

Item 4:    Controls and Procedures

Evaluation of disclosure controls and procedures

An evaluation was performed under the supervision and with the participation of our Company's management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e)) under the Securities Exchange Act of 1934 as amended. Based on that evaluation, the Company's management, including the Chief Executive Officer and Chief Financial Officer, concluded that as of March 31, 2018, the Company's disclosure controls and procedures were effective to ensure the information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

Changes in internal controls over financial reporting

In the ordinary course of business, we review our system of internal control over financial reporting and make changes to our applications and processes to improve such controls and increase efficiency, while ensuring that we maintain an effective internal control environment. Changes may include such activities as implementing new, more efficient applications and automating manual processes. We are currently upgrading our global enterprise resource software applications at certain of our locations outside of the United States as well as locations acquired through acquisitions. We will continue to upgrade our financial applications in stages, and we believe the related changes to processes and internal controls will allow us to be more efficient and further enhance our internal control over financial reporting.

As described in Item 1: "Financial Statements (Unaudited), Note 1: Summary of Significant Accounting Policies" included in this Quarterly Report on Form 10-Q, we adopted Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers effective January 1, 2018. As a result, we have modified certain internal controls over financial reporting to address risks associated with the required revenue recognition methodology and related disclosure requirements. This includes enhancing our accounting policies and controls to address risks associated with the five-step model for recognizing revenue, including the revision of our contract review and pricing controls. We have also implemented controls associated with the allocation of revenue associated with our complex contracts with multiple performance obligations, and developed a model and review process to assist with the allocation and disclosure requirements. Our system controls were also enhanced to provide more appropriate levels of detail for use in our models and to provide the necessary information utilized in disclosures.

In addition, as disclosed in Item 1: Financial Statements (Unaudited), we acquired Silver Spring Networks Inc (SSNI) in January 2018. Prior to the acquisition, SSNI reported in their Annual Report on Form 10-K for the year ended December 31, 2016 in Part II - Item 9A - Controls and Procedures that it had identified a material weakness in internal control over financial reporting. The material weakness had not been remediated as of September 30, 2017, the date of SSNI's most recently filed Form 10-Q. Specifically, SSNI determined that the design and operation of controls related to revenue recognition were inadequate due to insufficient automated processes to address complex computations in supporting determination of revenue and insufficient qualified personnel to review such schedules. Prior to the closing of the acquisition, SSNI management developed and initiated a plan to remediate these internal control deficiencies, which included the implementation of new and revised key internal controls. As of March 31, 2018, our management has not fully assessed SSNI's internal controls over financial reporting and is currently testing new and revised internal controls for design and operating effectiveness. The Securities and Exchange Commission permits companies to exclude acquisitions from their assessment of internal control over financial reporting during the first year of an acquisition, and our management has elected to exclude SSNI from our assessment, with the exception of intangible assets and goodwill, which

52

will be assessed. SSNI accounted for approximately 5% of total assets as of March 31, 2018 and approximately 14% of total revenues of the Company for the quarter ended March 31, 2018. We have performed additional analysis and procedures to enable management to conclude that we believe the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q present fairly, in all material respects, our financial position, results of operations, comprehensive income (loss) and cash flows for the periods presented in conformity with U.S. GAAP.

Except for these changes, there have been no other changes in our internal control over financial reporting during the three months ended March 31, 2018 that materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

53

PART II: OTHER INFORMATION

Item 1: Legal Proceedings

Refer to Item 1: "Financial Statements (Unaudited), Note 11: Commitments and Contingencies."

Item 1A: Risk Factors

There were no material changes to risk factors during the first quarter of 2018 from those previously disclosed in Item 1A: "Risk Factors" of Part I of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed with the Securities and Exchange Commission on February 28, 2018.

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

(a) Not applicable.

(b) Not applicable.

(c) Issuer Repurchased of Equity Securities

Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 through January 31	—	$	—	—	—
February 1 through February 28	14,148	65.67		—	—
March 1 through March 31	18	65.65		—	—
Total	14,166	$	65.67	—

⁽¹⁾ Shares repurchased represent shares transferred to us by certain employees in our Networks segment who vested in restricted stock units and used shares to pay all, or a portion of, the related taxes.

Item 5: Other Information

(a) No information was required to be disclosed in a report on Form 8-K during the first quarter of 2018 that was not reported.

(b) Not applicable.

54

Item 6: Exhibits

Exhibit Number	Description of Exhibits
4.1	Second Amended and Restated Credit Agreement dated January 5, 2018 among Itron, Inc. and a syndicate of banks led by Wells Fargo Bank, National Association, JPMorgan Chase Bank, N.A., J.P. Morgan Europe Limited, J.P. Morgan Securities PLC, BNP Paribas, and Silicon Valley Bank (Filed as Exhibit 4.1 to Itron, Inc.'s Current Report on Form 8-K, filed on January 11, 2018)
12.1	Computation of Ratio of Earnings to Fixed Charges. (filed with this report)
31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	XBRL Taxonomy Extension Definition Linkbase.
101.LAB	XBRL Taxonomy Extension Label Linkbase.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.

55

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ITRON, INC.
May 14, 2018	By:	/s/ JOAN S. HOOPER
Date		Joan S. Hooper
		Senior Vice President and Chief Financial Officer

56

EX-12.1

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)
	Three Months Ended March 31, 2018			Year Ended December 31,
				2017			2016			2015			2014			2013
	(in thousands, except ratios)
Earnings
Pre-tax income (loss)	$	(156,458	)	$	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	(396		)	(2,951		)	(3,283		)	(2,325		)	(1,370		)	(2,219		)
Less: income (loss) from equity investees	208			(542		)	(393		)	(807		)	(270		)	(954		)
	(156,646		)	131,801			81,286			34,414			(19,224		)	(155,866		)
Fixed charges:(2)
Interest expense, gross(3)	15,504			13,845			13,521			14,669			15,078			14,041
Interest portion of rent expense	2,341			5,096			4,958			5,405			6,832			6,651
a) Fixed charges	17,845			18,941			18,479			20,074			21,910			20,692
b) Earnings for ratio(4)	$	(138,801	)	$	150,742		$	99,765		$	54,488		$	2,686		$	(135,174	)
Ratios:
Earnings to fixed charges (b/a)(5)	N/A			8.0			5.4			2.7			N/A			N/A
Deficit of earnings to fixed charges	$	(156,646	)	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.

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Philip C. Mezey, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q 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

Date: May 14, 2018

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Joan S. Hooper, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q 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

Date: May 14, 2018

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

The certification set forth below is being submitted in connection with the Quarterly Report of Itron, Inc. (the Company) on Form 10-Q for the quarterly period ended March 31, 2018 (the Report) for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.

Philip C. Mezey, the Chief Executive Officer and Joan S. Hooper, the Chief Financial Officer of the Company, each certifies that to the best of his or her knowledge:

(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

May 14, 2018

/s/ JOAN S. HOOPER

Joan S. Hooper

Senior Vice President and Chief Financial Officer

May 14, 2018

XML

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
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-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Trading Symbol	ITRI
Entity Common Stock, Shares Outstanding		39,201,753

XML

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Sales Revenue, Goods, Net	$ 537,110	$ 432,365
Sales Revenue, Services, Net	70,111	45,227
Revenues	607,221	477,592
Cost of Goods Sold	382,850	287,093
Cost of Services	44,516	32,862
Cost of revenues	427,366	319,955
Gross profit	179,855	157,637
Operating expenses
Sales and marketing	51,921	41,255
Product development	60,284	40,767
General and administrative	102,493	37,187
Amortization of intangible assets	17,740	4,549
Restructuring	87,865	3,052
Total operating expenses	320,303	126,810
Operating income (loss)	(140,448)	30,827
Other income (expense)
Interest income	661	269
Interest expense	(15,504)	(3,199)
Other income (expense), net	(1,167)	(2,836)
Total other income (expense)	(16,010)	(5,766)
Income (loss) before income taxes	(156,458)	25,061
Income tax benefit (provision)	11,188	(9,047)
Net income (loss)	(145,270)	16,014
Net income attributable to noncontrolling interests	396	169
Net income (loss) attributable to Itron, Inc.	$ (145,666)	$ 15,845
Earnings (loss) per common share - Basic	$ (3.74)	$ 0.41
Earnings (loss) per common share - Diluted	$ (3.74)	$ 0.40
Weighted average common shares outstanding - Basic	38,945	38,474
Weighted average common shares outstanding - Diluted	38,945	39,215

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (145,270)	$ 16,014
Other comprehensive income, net of tax:
Foreign currency translation adjustments	16,300	15,016
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges	1,169	292
Pension benefit obligation adjustment	414	401
Total other comprehensive income, net of tax	17,883	15,709
Total comprehensive income (loss), net of tax	(127,387)	31,723
Comprehensive income attributable to noncontrolling interests, net of tax	396	169
Comprehensive income (loss) attributable to Itron, Inc.	$ (127,783)	$ 31,554

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets, Current [Abstract]
Cash and cash equivalents	$ 143,951	$ 176,274
Accounts receivable, net	481,389	398,029
Inventories	209,373	193,835
Other current assets	97,925	81,604
Total current assets	932,638	849,742
Property, plant, and equipment, net	234,924	200,768
Deferred tax assets, net	58,917	49,971
Restricted Cash, Noncurrent	1,466	311,010
Other long-term assets	46,843	43,666
Intangible assets, net	318,984	95,228
Goodwill	1,142,757	555,762
Total assets	2,736,529	2,106,147
Liabilities, Current [Abstract]
Accounts payable	275,702	262,166
Other current liabilities	90,259	56,736
Wages and benefits payable	119,312	90,505
Taxes payable	22,659	16,100
Current portion of debt	16,250	19,688
Current portion of warranty	26,533	21,150
Unearned revenue	87,293	41,438
Total current liabilities	638,008	507,783
Long-term debt	1,105,538	593,572
Long-term warranty	15,446	13,712
Pension benefit obligation	100,045	95,717
Deferred tax liabilities, net	1,571	1,525
Other long-term obligations	171,318	88,206
Total liabilities	2,031,926	1,300,515
Commitments and contingencies (Note 11)
Equity
Preferred stock, no par value, 10 million shares authorized, no shares issued or outstanding	0	0
Common stock, no par value, 75 million shares authorized, 39,181 and 38,771 shares issued and outstanding	1,310,379	1,294,767
Accumulated other comprehensive loss, net	(152,595)	(170,478)
Accumulated deficit	(471,812)	(337,873)
Total Itron, Inc. shareholders' equity	685,972	786,416
Noncontrolling interests	18,631	19,216
Total equity	704,603	805,632
Total liabilities and equity	$ 2,736,529	$ 2,106,147

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Common Stock, Shares Authorized	75,000,000	75,000,000
Common Stock, Shares, Issued	39,181,000	38,771,000
Common Stock, Shares, Outstanding	39,181,000	38,771,000
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred Stock, No Par Value
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities
Net income (loss)	$ (145,270)	$ 16,014
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	31,072	14,378
Stock-based compensation	8,095	5,211
Amortization of prepaid debt fees	3,386	266
Deferred taxes, net	(16,508)	882
Restructuring, non-cash	47	0
Other adjustments, net	(106)	946
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(7,768)	13,119
Inventories	(253)	(11,274)
Other current assets	(8,849)	(11,169)
Other long-term assets	4,509	646
Accounts payable, other current liabilities, and taxes payable	7,826	28,277
Wages and benefits payable	16,438	(1,796)
Unearned revenue	23,317	14,020
Warranty	663	(2,303)
Other operating, net	58,953	(3,960)
Net cash provided by (used in) operating activities	(24,448)	63,257
Investing activities
Acquisitions of property, plant, and equipment	(17,433)	(9,122)
Business acquisitions, net of cash equivalents acquired	(802,488)	0
Other investing, net	100	(78)
Net cash used in investing activities	(819,821)	(9,200)
Financing activities
Proceeds from borrowings	555,938	0
Payments on debt	(32,395)	(2,813)
Issuance of common stock	3,384	405
Payments of Debt Issuance Costs	(24,042)	0
Other financing, net	(1,046)	155
Net cash provided by (used in) financing activities	501,839	(2,253)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	563	2,559
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	(341,867)	54,363
Cash, cash equivalents, and restricted cash at end of period	143,951	187,928
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	145,468	187,928
Supplemental disclosure of cash flow information:
Income taxes, net	1,498	1,224
Interest	$ 6,878	$ 2,422

XML

Summary of Significant Accounting Policies (Text Block)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

Financial Statement Preparation

The condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q are unaudited and reflect entries necessary for the fair presentation of the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2018 and 2017, the Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017, and the Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2017 of Itron, Inc. and its subsidiaries. All entries required for the fair presentation of the financial statements are of a normal recurring nature, except as disclosed. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results expected for the full year or for any other period.

Certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) regarding interim results. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes included in our 2017 Annual Report on Form 10-K filed with the SEC on February 28, 2018. There have been no significant changes in financial statement preparation or significant accounting policies since December 31, 2017, with the exception of the adoption of Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (Topic 606).

On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition. The cumulative impact of adoption was a net decrease to accumulated deficit of $10.9 million as of January 1, 2018, with the impact primarily related to multiple element arrangements that contain software and software related elements. As we had not established vendor specific objective evidence of fair value for certain of our software and software related elements, we historically combined them as one unit of account and recognized the combined unit of account using the combined services approach. Under Topic 606, 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. For contracts that were modified prior to January 1, 2018, we have reflected the aggregate effect of all modifications prior to the date of initial adoption in order to identify the satisfied and unsatisfied performance obligations, determine the transaction price, and allocate the transaction price to satisfied and unsatisfied performance obligations. The impact to revenues for the three months ended March 31, 2018 was immaterial as a result of applying Topic 606.

Refer to the updated Revenue Recognition accounting policy described below and Note 16 for additional disclosures regarding our revenues from contracts with customers and the adoption of Topic 606.

Reclassifications

Certain reclassifications have been made to prior period consolidated financial statements to conform to classifications used in the current period. These reclassifications had no impact on net income (loss), shareholders' equity or cash flows as previously reported.

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 (December Notes). The proceeds of the December 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. We recognized the balance in escrow as restricted cash in our consolidated financial statements as of December 31, 2017.

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:

	Three months ended March 31
	2018		2017
	(in thousands)
Cash and cash equivalents	$	143,951	$	187,928
Current restricted cash included in other current assets	51		—
Long-term restricted cash	1,466		—
Total cash, cash equivalents, and restricted cash	$	145,468	$	187,928

Revenue Recognition

The majority of our revenues consist primarily of hardware sales, but may also include the license of software, software implementation services, cloud services and software as a service ("Saas"), project management services, installation services, consulting services, post-sale maintenance support, and extended or noncustomary warranties. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. In determining whether the definition of a contract has been met, we will consider whether the arrangement creates enforceable rights and obligations, which involves evaluation of agreement terms that would allow for the customer to terminate the agreement. If the customer is able to terminate the agreement without providing further consideration to us, the agreement would not be considered to meet the definition of a contract.

Many of our revenue arrangements involve multiple performance obligations consisting of hardware, meter reading system software, installation, and/or project management services. Separate contracts entered into with the same customer (or related parties of the customer) at or near the same time are accounted for as a single contract where one or more of the following criteria are met:

• The contracts are negotiated as a package with a single commercial objective;

• The amount of consideration to be paid in one contract depends on the price or performance of the other contract; or

• The goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a single performance obligation.

Once the contract has been defined, we evaluate whether the promises in the contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment, and the decision to separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recognized in a given period. For some of our contracts, the customer contracts with us to provide a significant service of integrating, customizing or modifying goods or services in the contract in which case the goods or services would be combined into a single performance obligation. It is common that we may promise to provide multiple distinct goods or services within a contract in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. If applicable, for goods or services where we have observable standalone sales, the observable standalone sales are used to determine the standalone selling price. For the majority of our goods and services, we do not have observable standalone sales. As a result, we estimate the standalone selling price using either the adjusted market assessment approach or the expected cost plus a margin approach. Approaches used to estimate the standalone selling price for a given good or service will maximize the use of observable inputs and considers several factors, including our pricing practices, costs to provide a good or service, the type of good or service, and availability of other transactional data, among others.

We determine the estimated standalone selling prices of goods or services used in our allocation of arrangement consideration on an annual basis or more frequently if there is a significant change in our business or if we experience significant variances in our transaction prices.

Many of our contracts with customers include variable consideration, which can include liquidated damage provisions, rebates and volume and early payment discounts. Some of our contracts with customers contain clauses for liquidated damages related to the timing of 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 the probability and magnitude of having to pay liquidated damages. We estimate variable consideration using the expected value method, taking into consideration contract terms, historical customer behavior and historical sales. In the case of liquidated damages, we also take into consideration progress towards meeting contractual milestones, including whether milestones have not been achieved, specified rates, if applicable, stated in the contract, and history of paying liquidated damages to the customer or similar customers. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.

In the normal course of business, we do not accept product returns unless the item is defective as manufactured. We establish provisions for estimated returns and warranties. In addition, we do not typically provide customers with the right to a refund.

Hardware revenues are recognized at a point in time. Transfer of control is typically at the time of shipment, receipt by the customer, or, if applicable, upon receipt of customer acceptance provisions. We will recognize revenue prior to receipt of customer acceptance for hardware in cases where the customer acceptance provision is determined to be a formality. Transfer of control would not occur until receipt of customer acceptance in hardware arrangements where such provisions are subjective or where we do not have history of meeting the acceptance criteria.

Perpetual software licenses are considered to be a right to use intellectual property and are recognized at a point in time. Transfer of control is considered to be at the point at which it is available to the customer to download and use or upon receipt of customer acceptance. In certain contracts, software licenses may be sold with professional services that include implementation services that include a significant service of integrating, customizing or modifying the software. In these instances, the software license is combined into single performance obligation with the implementation services and recognized over time as the implementation services are performed.

Hardware and software licenses (when not combined with professional services) are typically billed when shipped and revenue recognized at a point-in-time. As a result, the timing of revenue recognition and invoicing does not have a significant impact on contract assets and liabilities.

Professional services, which include implementation, project management, installation, and consulting services are recognized over time. We measure progress towards satisfying these performance obligations using input methods, most commonly based on the costs incurred in relation to the total expected costs to provide the service. We expect this method to best depict our performance in transferring control of services promised to the customer or represents a reasonable proxy for measuring progress. The estimate of expected costs to provide services requires judgment. Cost estimates take into consideration past history and the specific scope requested by the customer and are updated quarterly. We may also offer professional services on a stand-ready basis over a specified period of time, in which case revenue would be recognized ratably over the term. Invoicing of these services is commensurate with performance and occurs on a monthly basis. As such, these services do not have a significant impact on contract assets and contract liabilities.

Cloud services and 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 over time, ratably over the contact term commencing with the date the services are made available to the customer.

Services, including professional services, cloud services and SaaS arrangements, are commonly billed on a monthly basis in arrears and typically result in an unbilled receivable, which is not considered a contract asset as our right to consideration is unconditional.

Certain of our revenue arrangements include an extended or noncustomary warranty provisions 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, such warranties are considered to be a separate good or service, and a portion of the transaction price is allocated to this extended warranty performance obligation. This revenue is recognized, ratably over the extended warranty coverage period.

Hardware and software post-sale maintenance support fees are recognized over time, 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. Support fees are typically billed on an annual basis, resulting in a contract liability.

Payment terms with customers can vary by customer; however, amounts billed are typically payable within 30 to 90 days, depending on the destination country. We do not make a practice of offering financing as part of our contracts with customers.

We incur certain incremental costs to obtain contracts with customers, primarily in the form of sales commissions. Where the amortization period is one year or less, we have elected to apply the practical expedient and recognize the related commissions expense as incurred. Otherwise, such incremental costs are capitalized and amortized over the contract period. Capitalized incremental costs are not material.

New Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 currently believe the most significant impact relates to our real estate leases and the increased financial statement disclosures, but are continuing to evaluate the effect that the updated standard will have on our consolidated results of operations, financial position, cash flows, and related financial statement disclosures.

In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) (ASU 2016-16), which removes the prohibition in Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. Under ASU 2016-16, the selling entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The resulting deferred tax asset or deferred tax liability is measured by computing the difference between the tax basis of the asset in the buyer's jurisdiction and its financial reporting carrying value in the consolidated financial statements and multiplying such difference by the enacted tax rate in the buyer's jurisdiction. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We adopted this standard effective January 1, 2018 using a modified retrospective transition method, recognizing a $0.9 million one-time decrease to accumulated deficit.

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 for the capitalization of the service cost component of net periodic pension cost. For applying the retrospective presentation requirements, we elected to utilize amounts previously disclosed in our defined benefit pension plan footnote for the prior comparative periods as the estimation basis for applying the retrospective presentation. This resulted in a reclassification of an immaterial amount of net periodic pension benefit costs from operating income to other income (expense) in all periods presented on the Consolidated Statements of Operations.

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. This update expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, the amendments in ASU 2017-12 provide new guidance about income statement classification and eliminates the requirement to separately measure and report hedge ineffectiveness. ASU 2017-12 is effective for fiscal years 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.

XML

Earnings Per Share (Text Block)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings (loss) per share (EPS):

	Three Months Ended March 31,
	2018			2017
	(in thousands, except per share data)
Net income (loss) available to common shareholders	$	(145,666	)	$	15,845
Weighted average common shares outstanding - Basic	38,945			38,474
Dilutive effect of stock-based awards	—			741
Weighted average common shares outstanding - Diluted	38,945			39,215
Earnings (loss) per common share - Basic	$	(3.74	)	$	0.41
Earnings (loss) per common share - Diluted	$	(3.74	)	$	0.40

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 the future compensation cost associated with the stock award. Approximately 1.0 million and 0.2 million stock-based awards were excluded from the calculation of diluted EPS for the three months ended March 31, 2018 and 2017 because they were anti-dilutive. As a result of our net loss for the three months ended March 31, 2018, there was no dilutive effect to weighted average common shares outstanding.

XML

Certain Balance Sheet Components (Text Block)

3 Months Ended

Mar. 31, 2018

Balance Sheet Related Disclosures [Abstract]

Certain Balance Sheet Components [Text Block]

Certain Balance Sheet Components

A summary of accounts receivable from contracts with customers is as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Trade receivables (net of allowance of $4,774 and $3,957)	$	448,211	$	369,047
Unbilled receivables	33,178		28,982
Total accounts receivable, net	$	481,389	$	398,029

Allowance for doubtful accounts activity	Three Months Ended March 31,
	2018			2017
	(in thousands)
Beginning balance	$	3,957		$	3,320
Provision for doubtful accounts, net	920			303
Accounts written-off	(258		)	(330		)
Effect of change in exchange rates	155			131
Ending balance	$	4,774		$	3,424

Inventories	March 31, 2018		December 31, 2017
	(in thousands)
Materials	$	132,990	$	126,656
Work in process	8,700		9,863
Finished goods	67,683		57,316
Total inventories	$	209,373	$	193,835

Property, plant, and equipment, net	March 31, 2018			December 31, 2017
	(in thousands)
Machinery and equipment	$	332,055		$	310,753
Computers and software	111,227			104,384
Buildings, furniture, and improvements	150,049			135,566
Land	16,638			18,433
Construction in progress, including purchased equipment	41,959			39,946
Total cost	651,928			609,082
Accumulated depreciation	(417,004		)	(408,314		)
Property, plant, and equipment, net	$	234,924		$	200,768

Depreciation expense	Three Months Ended March 31,
	2018		2017
	(in thousands)
Depreciation expense	$	13,332	$	9,829

XML

Intangible Assets (Text Block)

3 Months Ended

Mar. 31, 2018

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets [Text Block]

Intangible Assets and Liabilities

The gross carrying amount and accumulated amortization (accretion) of our intangible assets and liabilities, other than goodwill, were as follows:

	March 31, 2018									December 31, 2017
	Gross			Accumulated (Amortization) Accretion			Net			Gross		Accumulated (Amortization) Accretion			Net
	(in thousands)
Intangible Assets
Core-developed technology	$	531,263		$	(423,634	)	$	107,629		$	429,548	$	(399,969	)	$	29,579
Customer contracts and relationships	400,566			(210,757		)	189,809			258,586		(197,582		)	61,004
Trademarks and trade names	82,337			(68,982		)	13,355			70,056		(66,004		)	4,052
Other	11,664			(11,073		)	591			11,661		(11,068		)	593
Total intangible assets subject to amortization	$	1,025,830		$	(714,446	)	$	311,384		$	769,851	$	(674,623	)	$	95,228
In-process research and development	7,600			—			7,600			—		—			—
Total intangible assets	$	1,033,430		$	(714,446	)	$	318,984		$	769,851	$	(674,623	)	$	95,228
Intangible Liabilities
Customer contracts and relationships	$	(23,900	)	$	1,304		$	(22,596	)	$	—	$	—		$	—

A summary of intangible assets and liabilities activity is as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Beginning balance, intangible assets, gross	$	769,851		$	669,896
Intangible assets acquired	240,600			—
Effect of change in exchange rates	22,979			16,168
Ending balance, intangible assets, gross	$	1,033,430		$	686,064
Beginning balance, intangible liabilities, gross	$	—		$	—
Intangible liabilities acquired	(23,900		)	—
Effect of change in exchange rates	—			—
Ending balance, intangible liabilities, gross	$	(23,900	)	$	—

On January 5, 2018, we completed our acquisition of SSNI by purchasing 100% of the voting stock. Intangible assets acquired in 2018 are based on the preliminary purchase price allocation relating to this acquisition. Acquired intangible assets include in-process research and development (IPR&D), which is not amortized until such time as the associated development projects are completed. Of these projects, $6.8 million were completed during the first quarter of 2018 and are included in core-developed technology. The remaining IPR&D is expected to be completed in the next year. Acquired intangible liabilities reflect the present value of the projected cash outflows for an existing contract where remaining costs are expected to exceed projected revenues. Refer to Note 17 for additional information regarding this acquisition.

Estimated future annual amortization (accretion) is as follows:

Year Ending December 31,	Amortization		Accretion			Estimated Annual Amortization, net
	(in thousands)
2018 (amount remaining at March 31, 2018)	$	58,564	$	(3,913	)	$	54,651
2019	72,345		(8,233		)	64,112
2020	52,265		(8,028		)	44,237
2021	36,649		(1,963		)	34,686
2022	26,317		(459		)	25,858
Beyond 2022	65,244		—			65,244
Total intangible assets subject to amortization (accretion)	$	311,384	$	(22,596	)	$	288,788

We have recognized $17.7 million and $4.5 million of net amortization of intangible assets for the three months ended March 31, 2018 and 2017, respectively, within operating expenses in the Consolidated Statement of Operations. These expenses relate to intangible assets and liabilities acquired as part of a business combination.

XML

Goodwill (Text Block)

3 Months Ended

Mar. 31, 2018

Goodwill Excluding Non Goodwill Intangibles [Abstract]

Goodwill Disclosure [Text Block]

Goodwill

The following table reflects goodwill allocated to each reporting unit:

	Electricity			Gas		Water			Networks		Total Company
	(in thousands)
Goodwill balance at January 1, 2018
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
Goodwill acquired	—			—		—			572,499		572,499
Effect of change in exchange rates	1,031			10,788		2,560			117		14,496
Goodwill balance at March 31, 2018
Goodwill before impairment	514,057			363,491		393,693			572,616		1,843,857
Accumulated impairment losses	(398,785		)	—		(302,315		)	—		(701,100		)
Goodwill, net	$	115,272		$	363,491	$	91,378		$	572,616	$	1,142,757

XML

Debt (Text Block)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Debt [Text Block]

Debt

The components of our borrowings were as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Credit facility:
USD denominated term loan	$	650,000	$	194,063
Multicurrency revolving line of credit	95,777		125,414
Senior notes	400,000		300,000
Total debt	1,145,777		619,477
Less: current portion of debt	16,250		19,688
Less: unamortized prepaid debt fees - term loan	5,912		629
Less: unamortized prepaid debt fees - senior notes	18,077		5,588
Long-term debt	$	1,105,538	$	593,572

Credit Facility

On January 5, 2018, we entered into a credit agreement providing for committed credit facilities in the amount of $1.2 billion U.S. dollars (the 2018 credit facility) which amended and restated in its entirety our credit agreement dated June 23, 2015 and replaced committed facilities in the amount of $725 million. 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. Both the term loan and the revolver mature on January 5, 2023, and can be repaid without penalty. Amounts repaid on the term loan may not be reborrowed and amounts borrowed under the revolver, during the credit facility term may be repaid and reborrowed until the revolver's maturity, at which time 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.

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 their related assets. This includes 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 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. The 2018 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 2018 credit facility at March 31, 2018.

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 (subject to a 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 0.50%, or (iii) one-month LIBOR plus 1.00%. At March 31, 2018, the interest rate for both the term loan and the USD revolver was 3.88%, which includes the LIBOR rate plus a margin of 2.00%. At March 31, 2018, the interest rate for the EUR revolver was 2.00% (the EURIBOR floor rate plus a margin of 2.00%).

Senior Notes

On December 22, 2017 and January 19, 2018, we issued $300 million and $100 million, respectively, of aggregate principal amount of 5.00% senior notes maturing January 15, 2026 (Notes). The proceeds were used to refinance existing indebtedness related to the acquisition of SSNI, pay related fees and expenses, and for general corporate purposes. Interest on the Notes will be payable semi-annually in arrears on January 15 and July 15, commencing on July 15, 2018. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our subsidiaries that guarantee the senior credit facilities.

Prior to maturity we may redeem some or all 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 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 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.

Debt Maturities

The amount of required minimum principal payments on our long-term debt in aggregate over the next five years, are as follows:

Year Ending December 31,	Minimum Payments
	(in thousands)
2018 (amount remaining at March 31, 2018)	$	12,188
2019	28,438
2020	44,777
2021	60,937
2022	65,000
2023	534,437
Total minimum payments on debt	$	745,777

XML

Derivative Financial Instruments (Text Block)

3 Months Ended

Mar. 31, 2018

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 13 and Note 14 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 were as follows:

		Fair Value
Asset Derivatives	Balance Sheet Location	March 31, 2018		December 31, 2017
Derivatives designated as hedging instruments under ASC 815-20		(in thousands)
Interest rate swap contracts	Other current assets	$	1,303	$	658
Interest rate cap contracts	Other current assets	74		17
Interest rate swap contracts	Other long-term assets	2,226		1,712
Interest rate cap contracts	Other long-term assets	310		179
Derivatives not designated as hedging instruments under ASC 815-20
Foreign exchange forward contracts	Other current assets	44		41
Interest rate cap contracts	Other current assets	111		25
Interest rate cap contracts	Other long-term assets	464		268
Total asset derivatives		$	4,532	$	2,900
Liability Derivatives
Derivatives not designated as hedging instruments under ASC 815-20
Foreign exchange forward contracts	Other current liabilities	$	356	$	289

The changes in accumulated other comprehensive income (loss) (AOCI), net of tax, for our derivative and nonderivative hedging instruments, were as follows:

	2018			2017
	(in thousands)
Net unrealized gain (loss) on hedging instruments at January 1,	$	(13,414	)	$	(14,337	)
Unrealized gain (loss) on hedging instruments	1,183			60
Realized loss (gain) reclassified into net income	(14		)	232
Net unrealized gain (loss) on hedging instruments at March 31,	$	(12,245	)	$	(14,045	)

Reclassification of amounts related to hedging instruments are included in interest expense in the Consolidated Statements of Operations for the periods ended March 31, 2018 and 2017. Included in the net unrealized loss on hedging instruments at March 31, 2018 and 2017 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 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:

Offsetting of Derivative Assets	Gross Amounts of Recognized Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
			Derivative Financial Instruments			Cash Collateral Received		Net Amount
	(in thousands)
March 31, 2018	$	4,532	$	(128	)	$	—	$	4,404
December 31, 2017	$	2,900	$	(90	)	$	—	$	2,810

Offsetting of Derivative Liabilities	Gross Amounts of Recognized Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
			Derivative Financial Instruments			Cash Collateral Pledged		Net Amount
	(in thousands)
March 31, 2018	$	356	$	(128	)	$	—	$	228
December 31, 2017	$	289	$	(90	)	$	—	$	199

Our derivative assets and liabilities subject to netting arrangements consist of foreign exchange forward and interest rate contracts with three counterparties at March 31, 2018 and December 31, 2017. No derivative asset or liability balance with any of our counterparties was individually significant at March 31, 2018 or December 31, 2017. 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 interest rate caps and swaps to reduce the variability of cash flows from increases in the LIBOR based borrowing rates on our floating rate credit facility. These instruments do not protect us from changes to the applicable margin under our credit facility. At March 31, 2018, our LIBOR-based debt balance was $690.0 million.

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 other comprehensive income (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 gains expected to be reclassified into earnings in the next 12 months is $1.3 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. As of December 31, 2016, due to the accelerated revolver payments from surplus cash, we elected to de-designate two of the interest rate cap contracts as cash flow hedges and discontinued 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 in ASC 815-20 Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)					Gain (Loss) Reclassified from Accumulated AOCI into Income (Effective Portion)							Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
						Location	Amount						Location	Amount
	2018		2017				2018			2017				2018		2017
	(in thousands)						(in thousands)							(in thousands)
Three Months Ended March 31,
Interest rate swap contracts	$	1,247	$	181		Interest expense	$	88		$	(335	)	Interest expense	$	—	$	—
Interest rate cap contracts	188		(84		)	Interest expense	(70		)	(43		)	Interest expense	—		—

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 March 31, 2018, a total of 57 contracts were offsetting our exposures from the Euro, Saudi Riyal, Indian Rupee, Chinese Yuan, Indonesian Rupiah, and various other currencies, with notional amounts ranging from $93,000 to $47.5 million.

The effect of our derivative instruments not designated as hedges on the Consolidated Statements of Operations was as follows:

Derivatives Not Designated as Hedging Instrument under ASC 815-20	Location	Gain (Loss) Recognized on Derivatives in Other Income (Expense)
		Three Months Ended March 31,
		2018			2017
		(in thousands)
Foreign exchange forward contracts	Other income (expense), net	$	(1,523	)	$	(1,742	)
Interest rate cap contracts	Interest expense	282			(126		)

XML

Defined Benefit Pension Plans (Text Block)

3 Months Ended

Mar. 31, 2018

Retirement Benefits, Description [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.

Amounts recognized on the Consolidated Balance Sheets consist of:

	March 31, 2018		December 31, 2017
	(in thousands)
Assets
Plan assets in other long-term assets	$	1,054	$	991
Liabilities
Current portion of pension benefit obligation in wages and benefits payable	3,291		3,260
Long-term portion of pension benefit obligation	100,045		95,717
Pension benefit obligation, net	$	102,282	$	97,986

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.

Net periodic pension benefit costs for our plans include the following components:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Service cost	$	1,049		$	928
Interest cost	609			525
Expected return on plan assets	(181		)	(146		)
Amortization of actuarial net loss	403			391
Amortization of unrecognized prior service costs	17			15
Net periodic benefit cost	$	1,897		$	1,713

XML

Stock-Based Compensation (Text Block)

3 Months Ended

Mar. 31, 2018

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 March 31, 2018, 4,215,490 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.

As a part of the acquisition of SSNI, we reserved and authorized 730,457 shares of Itron common stock to be issued for certain Silver Spring Network common stock awards that were converted to Itron common stock awards at acquisition date pursuant to the Agreement and Plan of Merger (SSNI Plan). New stock based compensation awards from the SSNI Plan may only be made to previous and newly hired employees of SSNI. The shares were converted from the Silver Spring Networks, Inc. 2012 Equity Incentive Plan, Non-Plan Inducement Stock Options, Non-Plan Inducement Restricted Stock Units and Non-Plan Inducement Performance Stock Units. There is no fungible share provision. As of March 31, 2018, 142,336 shares were available for grant under the SSNI Plan.

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 Employee Stock Purchase Plan (ESPP), for which approximately 331,993 shares of common stock were available for future issuance at March 31, 2018.

Unrestricted stock and ESPP activity for the three months ended March 31, 2018 and 2017 was not significant.

Stock-Based Compensation Expense

Total stock-based compensation expense and the related tax benefit were as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Stock options	$	831	$	659
Restricted stock units	7,057		4,297
Unrestricted stock awards	207		255
Phantom stock units	690		392
Total stock-based compensation	$	8,785	$	5,603
Related tax benefit	$	1,534	$	1,228

Stock Options

A summary of our stock option activity is as follows:

	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, 2017	959		$	45.64	6.6	$	19,125
Granted	121		65.55					$	22.01
Exercised	(5	)	35.29			120
Outstanding, March 31, 2017	1,075		$	47.92	6.7	$	17,236
Outstanding, January 1, 2018	956		$	47.10	6.3	$	21,965
Converted upon acquisition	42		51.86					$	14.86
Granted	101		69.30					$	24.83
Exercised	(62	)	40.31			2,104
Forfeited	(3	)	72.25
Expired	(7	)	95.96
Outstanding, March 31, 2018	1,027		$	49.49	6.5	$	24,051
Exercisable March 31, 2018	716		$	45.96	5.5	$	19,725
Expected to vest, March 31, 2018	308		$	57.74	8.9	$	4,255

At March 31, 2018, total unrecognized stock-based compensation expense related to nonvested stock options was $5.0 million, which is expected to be recognized over a weighted average period of approximately 1.8 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:

	Three Months Ended March 31,
	2018		2017
Expected volatility	30.9	%	32.7	%
Risk-free interest rate	2.8	%	2.0	%
Expected term (years)	6.1		5.5

Restricted Stock Units

The following table summarizes restricted stock unit activity:

	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
	(in thousands)				(in thousands)
Outstanding, January 1, 2017	701
Granted	131		$	63.12
Released	(317	)			$	12,066
Forfeited	(3	)
Outstanding, March 31, 2017	512
Outstanding, January 1, 2018	556		$	47.68
Converted upon acquisition	579		69.40
Granted	136		69.30
Released	(352	)	47.18		$	17,231
Forfeited	(28	)	68.44
Outstanding, March 31, 2018	891		63.72
Vested but not released, March 31, 2018	10				$	729
Expected to vest, March 31, 2018	788				$	56,369

At March 31, 2018, total unrecognized compensation expense on restricted stock units was $61.3 million, which is expected to be recognized over a weighted average period of approximately 2.4 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:

	Three Months Ended March 31,
	2018			2017
Expected volatility	28.0		%	28.0		%
Risk-free interest rate	2.2		%	1.0		%
Expected term (years)	2.1			1.7
Weighted average fair value	$	78.56		$	77.78

Phantom Stock Units

The following table summarizes phantom stock unit activity:

	Number of Phantom Stock Units		Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding, January 1, 2017	62
Granted	32		$	65.55
Released	(19	)
Forfeited	(2	)
Outstanding, March 31, 2017	73
Expected to vest, March 31, 2017	73
Outstanding, January 1, 2018	63		$	51.88
Converted upon acquisition	21		69.40
Granted	31		69.30
Released	(27	)	50.19
Forfeited	(1	)	69.36
Outstanding, March 31, 2018	87		62.61
Expected to vest, March 31, 2018	85

At March 31, 2018, total unrecognized compensation expense on phantom stock units was $5.7 million which is expected to be recognized over a weighted average period of approximately 2.2 years. As of March 31, 2018 and December 31, 2017, we have recognized a phantom stock liability of $0.6 million and $1.7 million, respectively, within wages and benefits payable in the Consolidated Balance Sheets.

XML

Income Taxes (Text Block)

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

Income Taxes

We determine the interim tax benefit (provision) by applying an estimate of the annual effective tax rate to the year-to-date pretax book income (loss) and adjusting for discrete items during the reporting period, if any. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. Additionally, for certain tax jurisdictions where a reliable estimate of annual income tax expense or benefit cannot be made, we applied the actual effective tax rate to quarter-to-date income.

Our tax benefit for the three months ended March 31, 2018 of 7% differed from the federal statutory rate of 21% due primarily to unbenefitted losses experienced in jurisdictions with valuation allowances on deferred tax assets as well as the forecasted mix of earnings in domestic and international jurisdictions, a benefit related to excess stock based compensation, and uncertain tax positions.

Our tax expense for the three months ended March 31, 2017 of 36% differed from the federal statutory rate of 35% due to the forecasted mix of earnings in domestic and international jurisdictions, a benefit related to excess stock based compensation, and losses experienced in jurisdictions with valuation allowances on deferred tax assets.

The tax provision for December 31, 2017 included the provisional determination of the impact to our deferred tax positions of the Tax Cuts and Jobs Act. We will continue to review any additional guidance issued by the U.S. Department of the Treasury, Internal Revenue Service, Financial Accounting Standards Board, or other regulatory bodies and adjust our provisional amount during the measurement period, which should not extend beyond one year from the enactment date of December 22, 2017. For the three months ended March 31, 2018 no changes to these provisional amounts have been recorded.

We classify interest expense and penalties related to unrecognized tax liabilities and interest income on tax overpayments as components of income tax expense. The net interest and penalties expense recognized were as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Net interest and penalties expense	$	424	$	206

Accrued interest and penalties recognized were as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Accrued interest	$	3,155	$	2,706
Accrued penalties	2,513		2,426

Unrecognized tax benefits related to uncertain tax positions and the amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate were as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Unrecognized tax benefits related to uncertain tax positions	$	76,120	$	56,702
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate	74,671		55,312

The increase in unrecognized tax benefits at March 31, 2018 related primarily to $16.4 million of unrecognized tax benefits recorded through purchase accounting on January 5, 2018 as a result of the acquisition of SSNI.

At March 31, 2018, we are under examination by certain tax authorities for the 2000 to 2015 tax years. The material jurisdictions where we are subject to examination include, among others, the United States, France, Germany, Italy, Brazil and the United Kingdom. No material changes have occurred to previously disclosed assessments. 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 liquidity.

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.

XML

Commitments and Contingencies (Text Block)

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies [Text Block]

Commitments and Contingencies

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 performance bonds were as follows:

	March 31, 2018			December 31, 2017
	(in thousands)
Credit facilities
Multicurrency revolving line of credit	$	500,000		$	500,000
Long-term borrowings	(95,777		)	(125,414		)
Standby LOCs issued and outstanding	(46,359		)	(31,881		)
Net available for additional borrowings under the multi-currency revolving line of credit	$	357,864		$	342,705
Net available for additional standby LOCs under sub-facility	253,641			218,119
Unsecured multicurrency revolving lines of credit with various financial institutions
Multicurrency revolving lines of credit	$	114,160		$	110,477
Standby LOCs issued and outstanding	(21,471		)	(21,030		)
Short-term borrowings	(1,776		)	(916		)
Net available for additional borrowings and LOCs	$	90,913		$	88,531
Unsecured surety bonds in force	$	52,639		$	51,344

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: 1) the customer promptly notifies us in writing of the claim and 2) 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:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Beginning balance	$	34,862		$	43,302
Assumed liabilities from acquisition	5,742			—
New product warranties	818			2,361
Other adjustments and expirations	4,044			1,682
Claims activity	(4,108		)	(6,351		)
Effect of change in exchange rates	621			542
Ending balance	41,979			41,536
Less: current portion of warranty	26,533			23,500
Long-term warranty	$	15,446		$	18,036

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:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Total warranty expense	$	4,862	$	4,043

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:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Plan costs	$	8,680	$	8,754

The IBNR accrual, which is included in wages and benefits payable, was as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
IBNR accrual	$	2,911	$	2,664

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.

XML

Restructuring

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring, Impairment, and Other Activities Disclosure [Text Block]

Restructuring

2018 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. 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, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects are as follows:

	Total Expected Costs at March 31, 2018		Costs Recognized During the Three Months Ended March 31, 2018		Expected Remaining Costs to be Recognized at March 31, 2018
	(in thousands)
Employee severance costs	$	87,993	$	87,993	$	—
Other restructuring costs	16,500		—		16,500
Total	$	104,493	$	87,993	$	16,500
Segments:
Electricity	$	20,706	$	19,206	$	1,500
Gas	51,929		42,929		9,000
Water	23,712		17,712		6,000
Corporate unallocated	8,146		8,146		—
Total	$	104,493	$	87,993	$	16,500

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 end of 2018.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2016 Projects are as follows:

	Total Expected Costs at March 31, 2018		Costs Recognized in Prior Periods		Costs Recognized During the Three Months Ended March 31, 2018			Expected Remaining Costs to be Recognized at March 31, 2018
	(in thousands)
Employee severance costs	$	38,848	$	39,855	$	(1,007	)	$	—
Asset impairments & net loss on sale or disposal	4,969		4,922		47			—
Other restructuring costs	15,767		9,435		832			5,500
Total	$	59,584	$	54,212	$	(128	)	$	5,500
Segments:
Electricity	$	10,919	$	9,025	$	394		$	1,500
Gas	31,799		29,181		618			2,000
Water	14,763		13,761		(998		)	2,000
Corporate unallocated	2,103		2,245		(142		)	—
Total	$	59,584	$	54,212	$	(128	)	$	5,500

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2018 and 2016 Projects during the three months ended March 31, 2018:

	Accrued Employee Severance			Asset Impairments & Net Loss on Sale or Disposal			Other Accrued Costs			Total
	(in thousands)
Beginning balance, January 1, 2018	$	37,654		$	—		$	2,471		$	40,125
Costs charged to expense	86,986			47			832			87,865
Cash payments	(7,063		)	—			(854		)	(7,917		)
Net assets disposed and impaired	—			(47		)	—			(47		)
Effect of change in exchange rates	1,566			—			2			1,568
Ending balance, March 31, 2018	$	119,143		$	—		$	2,451		$	121,594

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 portion of restructuring liabilities were $60.3 million and $32.5 million as of March 31, 2018 and December 31, 2017. The current portion of restructuring liabilities are classified within other current liabilities on the Consolidated Balance Sheets. The long-term portion of restructuring liabilities balances were $61.2 million and $7.6 million as of March 31, 2018 and December 31, 2017. The long-term portion of restructuring liabilities are classified within other long-term obligations on the Consolidated Balance Sheets, and include facility exit costs and severance accruals.

XML

Shareholders' Equity (Text Block)

3 Months Ended

Mar. 31, 2018

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 the Board of Directors prior to any payment to holders of common stock. There was no preferred stock issued or outstanding at March 31, 2018 and December 31, 2017.

Stock Repurchase Authorization

On February 23, 2017, Itron's 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 before-tax amount, income tax (provision) benefit, and net-of-tax amount related to each component of OCI were as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Before-tax amount
Foreign currency translation adjustment	$	16,293		$	15,066
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	1,436			97
Net hedging (gain) loss reclassified into net income	(19		)	378
Net defined benefit plan loss reclassified to net income	420			406
Total other comprehensive income (loss), before tax	18,130			15,947
Tax (provision) benefit
Foreign currency translation adjustment	7			(50		)
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	(253		)	(37		)
Net hedging (gain) loss reclassified into net income	5			(146		)
Net defined benefit plan loss reclassified to net income	(6		)	(5		)
Total other comprehensive income (loss) tax benefit	(247		)	(238		)
Net-of-tax amount
Foreign currency translation adjustment	16,300			15,016
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	1,183			60
Net hedging (gain) loss reclassified into net income	(14		)	232
Net defined benefit plan loss reclassified to net income	414			401
Total other comprehensive income (loss), net of tax	$	17,883		$	15,709

The changes in the components of AOCI, net of tax, were as follows:

	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, 2017	$	(182,986	)	$	43		$	(14,380	)	$	(32,004	)	$	(229,327	)
OCI before reclassifications	15,016			60			—			—			15,076
Amounts reclassified from AOCI	—			232			—			401			633
Total other comprehensive income (loss)	15,016			292			—			401			15,709
Balances at March 31, 2017	$	(167,970	)	$	335		$	(14,380	)	$	(31,603	)	$	(213,618	)
Balances at January 1, 2018	$	(128,648	)	$	966		$	(14,380	)	$	(28,416	)	$	(170,478	)
OCI before reclassifications	16,300			1,183			—			—			17,483
Amounts reclassified from AOCI	—			(14		)	—			414			400
Total other comprehensive income (loss)	16,300			1,169			—			414			17,883
Balances at March 31, 2018	$	(112,348	)	$	2,135		$	(14,380	)	$	(28,002	)	$	(152,595	)

XML

Fair Values of Financial Instruments (Text Block)

3 Months Ended

Mar. 31, 2018

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 following table presents the fair values of our financial instruments:

	March 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
			(in thousands)
Assets
Cash and cash equivalents	$	143,951	$	143,951	$	176,274	$	176,274
Restricted cash	1,517		1,517		311,061		311,061
Foreign exchange forwards	44		44		41		41
Interest rate swaps	3,529		3,529		2,370		2,370
Interest rate caps	959		959		489		489
Liabilities
Credit facility
USD denominated term loan	$	650,000	$	658,796	$	194,063	$	192,295
Multicurrency revolving line of credit	95,777		97,205		125,414		124,100
Senior notes	400,000		395,000		300,000		301,125
Foreign exchange forwards	356		356		289		289

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 amount approximates fair value (Level 1).

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.

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.

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.

The fair values at March 31, 2018 and December 31, 2017 do not reflect subsequent changes in the economy, interest rates, tax rates, and other variables that may affect the determination of fair value.

XML

Segment Information (Text Block)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segment Information [Text Block]

Segment Information

We operate under the Itron brand worldwide and manage and report under four operating segments: Electricity, Gas, Water, and Networks. Our Water operating segment includes our global water, and heat and allocation solutions. Networks became a new operating segment with the acquisition of SSNI. 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 and marketing function is managed under each segment. Our product development, service delivery, and manufacturing operations are managed on a worldwide basis to promote a global perspective in our operations and processes and yet still maintain alignment with the segments.

We have three GAAP measures of segment performance: revenue, gross profit (margin), and operating income (margin). Intersegment revenues are minimal. Certain operating expenses are allocated to our Electricity, Gas, and Water operating segments based upon internally established allocation methodologies. We will not allocate operating expenses to our Networks segment until it is fully integrated and managed centrally. 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

Electricity	Standard electricity (electromechanical and electronic) meters; smart network and data platform 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 network and data platform 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 network and data platform 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.
Networks	Smart network and data platform solutions for electricity, gas, water and smart cities including advanced metering, distribution automation, demand-side management, and street lights. Solutions include one or several of the following: communications modules, access points, relays and bridges; network operating software, grid management, security and grid analytics managed services and SaaS; installation; implementation; and professional services including consulting and analysis.

Revenues, gross profit, and operating income associated with our segments were as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Product revenues
Electricity	$	213,877		$	205,903
Gas	130,243			117,127
Water	125,587			109,335
Networks	67,403			—
Total Company	$	537,110		$	432,365
Service revenues
Electricity	$	38,528		$	32,848
Gas	7,496			7,084
Water	5,607			5,295
Networks	18,480			—
Total Company	$	70,111		$	45,227
Total revenues
Electricity	$	252,405		$	238,751
Gas	137,739			124,211
Water	131,194			114,630
Networks	85,883			—
Total Company	$	607,221		$	477,592
Gross profit
Electricity	$	69,975		$	67,250
Gas	43,471			50,815
Water	37,805			39,572
Networks	28,604			—
Total Company	$	179,855		$	157,637
Operating income (loss)
Electricity	$	(2,768	)	$	17,084
Gas	(28,348		)	21,731
Water	(11,710		)	8,804
Networks	(75,510		)	—
Corporate unallocated	(22,112		)	(16,792		)
Total Company	(140,448		)	30,827
Total other income (expense)	(16,010		)	(5,766		)
Income (loss) before income taxes	$	(156,458	)	$	25,061

For the three months ended March 31, 2018, one customer represented 22% and another customer represented 16%, respectively, of total Electricity segment revenues. For the three months ended March 31, 2018, one customer represented 11% of total Gas segment revenues, and one customer represented 11% of Networks segment revenues. For the three months ended March 31, 2018, no single customer represented more than 10% of the Water segment or total company revenues.

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

We currently buy a majority of our integrated circuit boards, an important component in our products, from two suppliers. Management believes that other suppliers could provide similar circuit boards, but a change in suppliers, disputes with our suppliers, or unexpected constraints on the suppliers' production capacity could adversely affect operating results.

Revenues by region were as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
United States and Canada	$	355,932	$	269,096
Europe, Middle East, and Africa	202,074		162,815
Other(1)	49,215		45,681
Total revenues	$	607,221	$	477,592

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

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

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Electricity	$	6,525	$	5,311
Gas	4,202		4,244
Water	4,109		3,959
Networks	15,012		—
Corporate unallocated	1,224		864
Total Company	$	31,072	$	14,378

XML

Revenue Recognition (Notes)

3 Months Ended

Mar. 31, 2018

Revenues [Abstract]

Revenue from Contract with Customer [Text Block]

Note 16: Revenues

A summary of significant net changes in the contract assets and the contract liabilities balances during the period is as follows:

	2018
	Contract liabilities, less contract assets
	(in thousands)
Beginning balance, January 1	$	59,808
Changes due to business combination	38,816
Revenue recognized from beginning contract liability	(24,549		)
Revenue recognized from current period increases	(6,352		)
Increases due to amounts collected or due	56,051
Other	(1,243		)
Ending balance, March 31	$	122,531

On January 1, 2018, total contract assets were $11.3 million and total contract liabilities were $71.1 million. On March 31, 2018, total contract assets were $14.2 million and total contract liabilities were $136.7 million. The contract assets primarily relate to contracts that include a retention clause and allocations related to contracts with multiple performance obligations. The contract liabilities primarily relate to deferred revenue, such as extended warranty and maintenance cost.

Transaction price allocated to the remaining performance obligations

Total transaction price allocated to remaining performance obligations represent committed but undelivered products and services for contracts and purchase orders at period end. Twelve-month remaining performance obligations represent the portion of total transaction price allocated to remaining performance obligations that we estimate will be recognized as revenue over the next 12 months. Total transaction price allocated to remaining performance obligations is not a complete measure of our future revenues as we also receive orders where the customer may have legal termination rights but are not likely to terminate.

Total transaction price allocated to remaining performance obligations related to contracts is approximately $1.1 billion for the next twelve months and approximately $740 million for periods longer than 12 months. The total remaining performance obligations is comprised of product and services components. The services component relates primarily to maintenance agreements for which customers pay a full year's maintenance in advance, and services revenue is generally recognized over the service period. Total transaction price allocated to remaining performance obligations also includes our extended warranty contracts, for which revenue is recognized over the warranty period, and hardware, which is recognized as units are delivered. The estimate of when remaining performance obligations will be recognized requires significant judgment.

Cost to obtain a contract and cost to fulfill a contract with a customer

Cost to obtain a contract and costs to fulfill a contract were capitalized and amortized using a systematic rational approached to align with the transfer of control of underlying contracts with customers. While amounts were capitalized, amounts are not material for disclosure.

Disaggregation of revenue

Refer to Note 15 and the Consolidated Statement of Operations for disclosure regarding the disaggregation of revenue into categories which depict how revenue and cash flows are affected by economic factors. Specifically, our operating segments and geographical regions as disclosed and product categories of hardware and services as presented.

Impacts on financial statements

Under the modified retrospective transition method, we are required to provide additional disclosures during 2018 of the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any.

The effects of Topic 606 and Subtopic ASC 340-40 on our Consolidated Balance Sheet as of March 31, 2018 were total deferred revenue would have been higher by approximately $15 million, of which, approximately $6 million would have been classified as short term. The difference in deferred revenue reflects the timing of revenue recognition related to certain of our customer contracts. The net impact of all adjustments would have resulted in an increase to our accumulated deficit of approximately $11 million. The difference in accumulated deficit reflects the cumulative effect of adoption and the net effect thereof on the Consolidated Statement of Operations for the three months ended March 31, 2018. The impact of the adoption was not material to the other line items.

The effect of Topic 606 and Subtopic ASC 340-40 was not material to the Consolidated Statements of Operations and the Consolidated Statement of Cash Flows for the three months ended March 31, 2018.

XML

Business Combinations (Text Block)

3 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Business Combinations

Silver Spring Networks, Inc.

On January 5, 2018, we completed the acquisition of SSNI by purchasing 100% of SSNI's outstanding stock. The acquisition was financed through incremental borrowings and cash on hand. Refer to Note 6 for further discussion of our debt.

SSNI provides smart network and data platform solutions for electricity, gas, water and smart cities including advanced metering, distribution automation, demand-side management, and street lights. Solutions include one or several of the following: communications modules, access points, relays and bridges; network operating software, grid management, security and grid analytics managed services and SaaS; installation; implementation; and professional services including consulting and analysis. Itron is managing the SSNI business as our Networks operating segment.

The purchase price of SSNI was $809.2 million, which is net of $97.8 million of acquired cash and cash equivalents. Of the total consideration $802.5 million was paid in cash. The remaining $6.7 million relates to the fair value of pre-acquisition service for replacement awards of unvested SSNI options and restricted stock unit awards with an Itron equivalent award. We made a preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on estimated fair value assessments during the first quarter. We are continuing to collect information to determine the fair values of certain intangible assets, working capital, and deferred income taxes, all of which could affect goodwill. The fair values of these assets and liabilities are provisional until we are able to complete our assessment.

The following reflects our preliminary allocation of purchase price as of January 5, 2018:

	Fair Value			Weighted Average Useful Life
	(in thousands)			(in years)
Current Assets	$	86,962
Property, plant, and equipment	27,670
Other long-term assets (1)	(830		)
Identifiable intangible assets
Core-developed technology	81,900			5
Customer contract and relationships	133,500			10
Trademark and trade names	10,800			3
Total identified intangible assets subject to amortization	226,200			8
In-process research and development (IPR&D)	14,400
Total identified intangible assets	240,600
Goodwill	572,499
Current liabilities	(91,857		)
Customer contract and relationships	(23,900		)	5
Long-term liabilities	(1,928		)
Total net assets acquired	$	809,216

⁽¹⁾  Reflects adjustments to deferred tax assets and liabilities, net as a result of the acquisition, and is classified as part of our overall consolidated deferred tax asset. This negative deferred tax asset more than offsets the fair value of other noncurrent assets acquired.

The fair values for the identified trademarks and core-developed technology intangible assets were estimated using the relief from royalty method, which values the assets by estimating the savings achieved by ownership of trademark or technology when compared with the cost of licensing it from an independent owner.

The fair value of customer contracts and relationship 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. The fair value of IPR&D was valued utilizing the replacement cost method, which measures the value of an asset based on the cost to replace the existing asset. IPR&D will be amortized using the straight-line method after the technology is fully developed and is considered a product offering of SSNI. Incremental costs to be incurred for these projects will be recognized as product development expense as incurred within the Consolidated Statements of Operations.

Core-developed technology represents the fair values of SSNI products that have reached technological feasibility and were part of SSNI'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. The core-developed technology, trademarks, and customer contracts and relationships intangible assets valued using the income approach will be amortized using the estimated discounted cash flows assumed in the valuation models.

Goodwill of $572.5 million arising from the acquisition consists largely of the synergies expected from combining the operations of Itron and SSNI, as well as certain intangible assets that do not qualify for separate recognition. All of the goodwill balance was assigned to the Networks reporting unit and segment. We will not be able to deduct any of the goodwill balance for income tax purposes.

During the business combination, we incurred $15.6 million of acquisition related expenses, which include such activities as success fees, certain consulting and advisory costs, and incremental legal and accounting costs. In addition, we recognized $46.8 million of integration costs, which are expenses related to integrating SSNI into Itron, and includes expenses such as accounting and process integration and the related consulting fees, severance, site closure costs, system integration, and travel associated with knowledge transfers as we consolidate redundant positions. All acquisition and integration related expenses are included within general and administrative expenses in the Consolidated Statement of Operations.

The following table presents the revenues and net income (loss) from SSNI operations that are included in our Consolidated Statements of Operations:

	January 5, 2018 - March 31, 2018
Revenues	$	85,833
Net loss	(29,753		)

The following supplemental pro forma results are based on the individual historical results of Itron and SSNI, with adjustments to give effect to the combined operations as if the acquisition had been consummated on January 1, 2017.

	Three Months Ended March 31,
	2018			2017
	( in thousands)
Revenues	$	607,221		$	527,855
Net loss	(130,966		)	(27,234		)

The significant nonrecurring adjustments reflected in the proforma schedule above are considered material and include the following:

• Elimination of transaction costs incurred by SSNI 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, 2017

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.

Comverge

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 were considered final as of December 31, 2017.

Goodwill of $59.7 million arising from the acquisition was largely related to synergies expected from combined operations of Itron and Comverge, as well as certain intangible assets that did not qualify for separate recognition. All of the goodwill balance was assigned to the Electricity reporting unit and segment. We did not deduct any of the goodwill balance for income tax purposes.

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.

	Three Months Ended March 31,
	2018			2017
	( in thousands)
Revenues	$	607,221		$	491,762
Net income (loss)	(145,270		)	15,107

The significant nonrecurring adjustments reflected in the proforma schedule above are not considered material and include the following:

• 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

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.

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The majority of our revenues consist primarily of hardware sales, but may also include the license of software, software implementation services, cloud services and software as a service ("Saas"), project management services, installation services, consulting services, post-sale maintenance support, and extended or noncustomary warranties. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. In determining whether the definition of a contract has been met, we will consider whether the arrangement creates enforceable rights and obligations, which involves evaluation of agreement terms that would allow for the customer to terminate the agreement. If the customer is able to terminate the agreement without providing further consideration to us, the agreement would not be considered to meet the definition of a contract.

Many of our revenue arrangements involve multiple performance obligations consisting of hardware, meter reading system software, installation, and/or project management services. Separate contracts entered into with the same customer (or related parties of the customer) at or near the same time are accounted for as a single contract where one or more of the following criteria are met:

• The contracts are negotiated as a package with a single commercial objective;

• The amount of consideration to be paid in one contract depends on the price or performance of the other contract; or

• The goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a single performance obligation.

Once the contract has been defined, we evaluate whether the promises in the contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment, and the decision to separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recognized in a given period. For some of our contracts, the customer contracts with us to provide a significant service of integrating, customizing or modifying goods or services in the contract in which case the goods or services would be combined into a single performance obligation. It is common that we may promise to provide multiple distinct goods or services within a contract in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. If applicable, for goods or services where we have observable standalone sales, the observable standalone sales are used to determine the standalone selling price. For the majority of our goods and services, we do not have observable standalone sales. As a result, we estimate the standalone selling price using either the adjusted market assessment approach or the expected cost plus a margin approach. Approaches used to estimate the standalone selling price for a given good or service will maximize the use of observable inputs and considers several factors, including our pricing practices, costs to provide a good or service, the type of good or service, and availability of other transactional data, among others.

We determine the estimated standalone selling prices of goods or services used in our allocation of arrangement consideration on an annual basis or more frequently if there is a significant change in our business or if we experience significant variances in our transaction prices.

Many of our contracts with customers include variable consideration, which can include liquidated damage provisions, rebates and volume and early payment discounts. Some of our contracts with customers contain clauses for liquidated damages related to the timing of 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 the probability and magnitude of having to pay liquidated damages. We estimate variable consideration using the expected value method, taking into consideration contract terms, historical customer behavior and historical sales. In the case of liquidated damages, we also take into consideration progress towards meeting contractual milestones, including whether milestones have not been achieved, specified rates, if applicable, stated in the contract, and history of paying liquidated damages to the customer or similar customers. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.

In the normal course of business, we do not accept product returns unless the item is defective as manufactured. We establish provisions for estimated returns and warranties. In addition, we do not typically provide customers with the right to a refund.

Hardware revenues are recognized at a point in time. Transfer of control is typically at the time of shipment, receipt by the customer, or, if applicable, upon receipt of customer acceptance provisions. We will recognize revenue prior to receipt of customer acceptance for hardware in cases where the customer acceptance provision is determined to be a formality. Transfer of control would not occur until receipt of customer acceptance in hardware arrangements where such provisions are subjective or where we do not have history of meeting the acceptance criteria.

Perpetual software licenses are considered to be a right to use intellectual property and are recognized at a point in time. Transfer of control is considered to be at the point at which it is available to the customer to download and use or upon receipt of customer acceptance. In certain contracts, software licenses may be sold with professional services that include implementation services that include a significant service of integrating, customizing or modifying the software. In these instances, the software license is combined into single performance obligation with the implementation services and recognized over time as the implementation services are performed.

Hardware and software licenses (when not combined with professional services) are typically billed when shipped and revenue recognized at a point-in-time. As a result, the timing of revenue recognition and invoicing does not have a significant impact on contract assets and liabilities.

Professional services, which include implementation, project management, installation, and consulting services are recognized over time. We measure progress towards satisfying these performance obligations using input methods, most commonly based on the costs incurred in relation to the total expected costs to provide the service. We expect this method to best depict our performance in transferring control of services promised to the customer or represents a reasonable proxy for measuring progress. The estimate of expected costs to provide services requires judgment. Cost estimates take into consideration past history and the specific scope requested by the customer and are updated quarterly. We may also offer professional services on a stand-ready basis over a specified period of time, in which case revenue would be recognized ratably over the term. Invoicing of these services is commensurate with performance and occurs on a monthly basis. As such, these services do not have a significant impact on contract assets and contract liabilities.

Cloud services and 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 over time, ratably over the contact term commencing with the date the services are made available to the customer.

Services, including professional services, cloud services and SaaS arrangements, are commonly billed on a monthly basis in arrears and typically result in an unbilled receivable, which is not considered a contract asset as our right to consideration is unconditional.

Certain of our revenue arrangements include an extended or noncustomary warranty provisions 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, such warranties are considered to be a separate good or service, and a portion of the transaction price is allocated to this extended warranty performance obligation. This revenue is recognized, ratably over the extended warranty coverage period.

Hardware and software post-sale maintenance support fees are recognized over time, 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. Support fees are typically billed on an annual basis, resulting in a contract liability.

Payment terms with customers can vary by customer; however, amounts billed are typically payable within 30 to 90 days, depending on the destination country. We do not make a practice of offering financing as part of our contracts with customers.

We incur certain incremental costs to obtain contracts with customers, primarily in the form of sales commissions. Where the amortization period is one year or less, we have elected to apply the practical expedient and recognize the related commissions expense as incurred.

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 (December Notes). The proceeds of the December 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. We recognized the balance in escrow as restricted cash in our consolidated financial statements as of December 31, 2017.

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:

	Three months ended March 31
	2018		2017
	(in thousands)
Cash and cash equivalents	$	143,951	$	187,928
Current restricted cash included in other current assets	51		—
Long-term restricted cash	1,466		—
Total cash, cash equivalents, and restricted cash	$	145,468	$	187,928

New Accounting Pronouncements [Text Block]

New Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 currently believe the most significant impact relates to our real estate leases and the increased financial statement disclosures, but are continuing to evaluate the effect that the updated standard will have on our consolidated results of operations, financial position, cash flows, and related financial statement disclosures.

In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) (ASU 2016-16), which removes the prohibition in Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. Under ASU 2016-16, the selling entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The resulting deferred tax asset or deferred tax liability is measured by computing the difference between the tax basis of the asset in the buyer's jurisdiction and its financial reporting carrying value in the consolidated financial statements and multiplying such difference by the enacted tax rate in the buyer's jurisdiction. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We adopted this standard effective January 1, 2018 using a modified retrospective transition method, recognizing a $0.9 million one-time decrease to accumulated deficit.

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 for the capitalization of the service cost component of net periodic pension cost. For applying the retrospective presentation requirements, we elected to utilize amounts previously disclosed in our defined benefit pension plan footnote for the prior comparative periods as the estimation basis for applying the retrospective presentation. This resulted in a reclassification of an immaterial amount of net periodic pension benefit costs from operating income to other income (expense) in all periods presented on the Consolidated Statements of Operations.

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. This update expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, the amendments in ASU 2017-12 provide new guidance about income statement classification and eliminates the requirement to separately measure and report hedge ineffectiveness. ASU 2017-12 is effective for fiscal years 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.

XML

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share [Table Text Block]

The following table sets forth the computation of basic and diluted earnings (loss) per share (EPS):

	Three Months Ended March 31,
	2018			2017
	(in thousands, except per share data)
Net income (loss) available to common shareholders	$	(145,666	)	$	15,845
Weighted average common shares outstanding - Basic	38,945			38,474
Dilutive effect of stock-based awards	—			741
Weighted average common shares outstanding - Diluted	38,945			39,215
Earnings (loss) per common share - Basic	$	(3.74	)	$	0.41
Earnings (loss) per common share - Diluted	$	(3.74	)	$	0.40

XML

Certain Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2018

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net [Table Text Block]

	March 31, 2018		December 31, 2017
	(in thousands)
Trade receivables (net of allowance of $4,774 and $3,957)	$	448,211	$	369,047
Unbilled receivables	33,178		28,982
Total accounts receivable, net	$	481,389	$	398,029

Allowance for Credit Losses on Financing Receivables [Table Text Block]

Allowance for doubtful accounts activity	Three Months Ended March 31,
	2018			2017
	(in thousands)
Beginning balance	$	3,957		$	3,320
Provision for doubtful accounts, net	920			303
Accounts written-off	(258		)	(330		)
Effect of change in exchange rates	155			131
Ending balance	$	4,774		$	3,424

Inventories [Table Text Block]

Inventories	March 31, 2018		December 31, 2017
	(in thousands)
Materials	$	132,990	$	126,656
Work in process	8,700		9,863
Finished goods	67,683		57,316
Total inventories	$	209,373	$	193,835

Property, Plant, and Equipment, Net [Table Text Block]

Property, plant, and equipment, net	March 31, 2018			December 31, 2017
	(in thousands)
Machinery and equipment	$	332,055		$	310,753
Computers and software	111,227			104,384
Buildings, furniture, and improvements	150,049			135,566
Land	16,638			18,433
Construction in progress, including purchased equipment	41,959			39,946
Total cost	651,928			609,082
Accumulated depreciation	(417,004		)	(408,314		)
Property, plant, and equipment, net	$	234,924		$	200,768

Depreciation Expense [Table Text Block]

Depreciation expense	Three Months Ended March 31,
	2018		2017
	(in thousands)
Depreciation expense	$	13,332	$	9,829

XML

Schedule of Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2018

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Schedule of Intangible Assets by Major Class [Table Text Block]

The gross carrying amount and accumulated amortization (accretion) of our intangible assets and liabilities, other than goodwill, were as follows:

	March 31, 2018									December 31, 2017
	Gross			Accumulated (Amortization) Accretion			Net			Gross		Accumulated (Amortization) Accretion			Net
	(in thousands)
Intangible Assets
Core-developed technology	$	531,263		$	(423,634	)	$	107,629		$	429,548	$	(399,969	)	$	29,579
Customer contracts and relationships	400,566			(210,757		)	189,809			258,586		(197,582		)	61,004
Trademarks and trade names	82,337			(68,982		)	13,355			70,056		(66,004		)	4,052
Other	11,664			(11,073		)	591			11,661		(11,068		)	593
Total intangible assets subject to amortization	$	1,025,830		$	(714,446	)	$	311,384		$	769,851	$	(674,623	)	$	95,228
In-process research and development	7,600			—			7,600			—		—			—
Total intangible assets	$	1,033,430		$	(714,446	)	$	318,984		$	769,851	$	(674,623	)	$	95,228
Intangible Liabilities
Customer contracts and relationships	$	(23,900	)	$	1,304		$	(22,596	)	$	—	$	—		$	—

Summary of Intangible Asset Account Activity [Table Text Block]

A summary of intangible assets and liabilities activity is as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Beginning balance, intangible assets, gross	$	769,851		$	669,896
Intangible assets acquired	240,600			—
Effect of change in exchange rates	22,979			16,168
Ending balance, intangible assets, gross	$	1,033,430		$	686,064
Beginning balance, intangible liabilities, gross	$	—		$	—
Intangible liabilities acquired	(23,900		)	—
Effect of change in exchange rates	—			—
Ending balance, intangible liabilities, gross	$	(23,900	)	$	—

Schedule of Intangible Assets, Future Amortization Expense [Table Text Block]

Estimated future annual amortization (accretion) is as follows:

Year Ending December 31,	Amortization		Accretion			Estimated Annual Amortization, net
	(in thousands)
2018 (amount remaining at March 31, 2018)	$	58,564	$	(3,913	)	$	54,651
2019	72,345		(8,233		)	64,112
2020	52,265		(8,028		)	44,237
2021	36,649		(1,963		)	34,686
2022	26,317		(459		)	25,858
Beyond 2022	65,244		—			65,244
Total intangible assets subject to amortization (accretion)	$	311,384	$	(22,596	)	$	288,788

XML

Schedule of Goodwill Allocated to Reporting Segments (Tables)

3 Months Ended

Mar. 31, 2018

Goodwill Excluding Non Goodwill Intangibles [Abstract]

Schedule of Goodwill [Table Text Block]

The following table reflects goodwill allocated to each reporting unit:

	Electricity			Gas		Water			Networks		Total Company
	(in thousands)
Goodwill balance at January 1, 2018
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
Goodwill acquired	—			—		—			572,499		572,499
Effect of change in exchange rates	1,031			10,788		2,560			117		14,496
Goodwill balance at March 31, 2018
Goodwill before impairment	514,057			363,491		393,693			572,616		1,843,857
Accumulated impairment losses	(398,785		)	—		(302,315		)	—		(701,100		)
Goodwill, net	$	115,272		$	363,491	$	91,378		$	572,616	$	1,142,757

XML

Debt (Tables)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

The components of our borrowings were as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Credit facility:
USD denominated term loan	$	650,000	$	194,063
Multicurrency revolving line of credit	95,777		125,414
Senior notes	400,000		300,000
Total debt	1,145,777		619,477
Less: current portion of debt	16,250		19,688
Less: unamortized prepaid debt fees - term loan	5,912		629
Less: unamortized prepaid debt fees - senior notes	18,077		5,588
Long-term debt	$	1,105,538	$	593,572

Schedule of Maturities of Long-term Debt [Table Text Block]

The amount of required minimum principal payments on our long-term debt in aggregate over the next five years, are as follows:

Year Ending December 31,	Minimum Payments
	(in thousands)
2018 (amount remaining at March 31, 2018)	$	12,188
2019	28,438
2020	44,777
2021	60,937
2022	65,000
2023	534,437
Total minimum payments on debt	$	745,777

XML

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instrument Detail [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The fair values of our derivative instruments were as follows:

		Fair Value
Asset Derivatives	Balance Sheet Location	March 31, 2018		December 31, 2017
Derivatives designated as hedging instruments under ASC 815-20		(in thousands)
Interest rate swap contracts	Other current assets	$	1,303	$	658
Interest rate cap contracts	Other current assets	74		17
Interest rate swap contracts	Other long-term assets	2,226		1,712
Interest rate cap contracts	Other long-term assets	310		179
Derivatives not designated as hedging instruments under ASC 815-20
Foreign exchange forward contracts	Other current assets	44		41
Interest rate cap contracts	Other current assets	111		25
Interest rate cap contracts	Other long-term assets	464		268
Total asset derivatives		$	4,532	$	2,900
Liability Derivatives
Derivatives not designated as hedging instruments under ASC 815-20
Foreign exchange forward contracts	Other current liabilities	$	356	$	289

Accumulated OCI for Derivative and Nonderivative Instruments Designated as Hedging Instruments, Net of Tax [Table Text Block]

The changes in accumulated other comprehensive income (loss) (AOCI), net of tax, for our derivative and nonderivative hedging instruments, were as follows:

	2018			2017
	(in thousands)
Net unrealized gain (loss) on hedging instruments at January 1,	$	(13,414	)	$	(14,337	)
Unrealized gain (loss) on hedging instruments	1,183			60
Realized loss (gain) reclassified into net income	(14		)	232
Net unrealized gain (loss) on hedging instruments at March 31,	$	(12,245	)	$	(14,045	)

Offsetting Assets [Table Text Block]

A summary of the 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:

Offsetting of Derivative Assets	Gross Amounts of Recognized Assets Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
			Derivative Financial Instruments			Cash Collateral Received		Net Amount
	(in thousands)
March 31, 2018	$	4,532	$	(128	)	$	—	$	4,404
December 31, 2017	$	2,900	$	(90	)	$	—	$	2,810

Offsetting Liabilities [Table Text Block]

Offsetting of Derivative Liabilities	Gross Amounts of Recognized Liabilities Presented in the Consolidated Balance Sheets		Gross Amounts Not Offset in the Consolidated Balance Sheets
			Derivative Financial Instruments			Cash Collateral Pledged		Net Amount
	(in thousands)
March 31, 2018	$	356	$	(128	)	$	—	$	228
December 31, 2017	$	289	$	(90	)	$	—	$	199

Effect of Cash Flow Derivatives on the Balance Sheet and Income Statement, Before Tax [Table Text Block]

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 in ASC 815-20 Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)					Gain (Loss) Reclassified from Accumulated AOCI into Income (Effective Portion)							Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
						Location	Amount						Location	Amount
	2018		2017				2018			2017				2018		2017
	(in thousands)						(in thousands)							(in thousands)
Three Months Ended March 31,
Interest rate swap contracts	$	1,247	$	181		Interest expense	$	88		$	(335	)	Interest expense	$	—	$	—
Interest rate cap contracts	188		(84		)	Interest expense	(70		)	(43		)	Interest expense	—		—

Foreign Exchange Derivatives Not Designated As Hedging Instruments [Table Text Block]

The effect of our derivative instruments not designated as hedges on the Consolidated Statements of Operations was as follows:

Derivatives Not Designated as Hedging Instrument under ASC 815-20	Location	Gain (Loss) Recognized on Derivatives in Other Income (Expense)
		Three Months Ended March 31,
		2018			2017
		(in thousands)
Foreign exchange forward contracts	Other income (expense), net	$	(1,523	)	$	(1,742	)
Interest rate cap contracts	Interest expense	282			(126		)

XML

Defined Benefit Pension Plans (Tables)

3 Months Ended

Mar. 31, 2018

Defined Benefit Plan [Abstract]

Schedule of Amounts Recognized in the Consolidated Balance Sheets [Table Text Block]

Amounts recognized on the Consolidated Balance Sheets consist of:

	March 31, 2018		December 31, 2017
	(in thousands)
Assets
Plan assets in other long-term assets	$	1,054	$	991
Liabilities
Current portion of pension benefit obligation in wages and benefits payable	3,291		3,260
Long-term portion of pension benefit obligation	100,045		95,717
Pension benefit obligation, net	$	102,282	$	97,986

Schedule of Net Periodic Pension Benefit Costs [Table Text Block]

Net periodic pension benefit costs for our plans include the following components:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Service cost	$	1,049		$	928
Interest cost	609			525
Expected return on plan assets	(181		)	(146		)
Amortization of actuarial net loss	403			391
Amortization of unrecognized prior service costs	17			15
Net periodic benefit cost	$	1,897		$	1,713

The components of net periodic benefit cost, other than the service cost component, are included in total other income (expense) on the Consolidated Statements of Operations.

XML

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

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:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Stock options	$	831	$	659
Restricted stock units	7,057		4,297
Unrestricted stock awards	207		255
Phantom stock units	690		392
Total stock-based compensation	$	8,785	$	5,603
Related tax benefit	$	1,534	$	1,228

Employee Stock Options Activity [Table Text Block]

A summary of our stock option activity is as follows:

	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, 2017	959		$	45.64	6.6	$	19,125
Granted	121		65.55					$	22.01
Exercised	(5	)	35.29			120
Outstanding, March 31, 2017	1,075		$	47.92	6.7	$	17,236
Outstanding, January 1, 2018	956		$	47.10	6.3	$	21,965
Converted upon acquisition	42		51.86					$	14.86
Granted	101		69.30					$	24.83
Exercised	(62	)	40.31			2,104
Forfeited	(3	)	72.25
Expired	(7	)	95.96
Outstanding, March 31, 2018	1,027		$	49.49	6.5	$	24,051
Exercisable March 31, 2018	716		$	45.96	5.5	$	19,725
Expected to vest, March 31, 2018	308		$	57.74	8.9	$	4,255

Stock Options, Valuation Assumptions [Table Text Block]

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

	Three Months Ended March 31,
	2018		2017
Expected volatility	30.9	%	32.7	%
Risk-free interest rate	2.8	%	2.0	%
Expected term (years)	6.1		5.5

Restricted Stock Units Award Activity [Table Text Block]

The following table summarizes restricted stock unit activity:

	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
	(in thousands)				(in thousands)
Outstanding, January 1, 2017	701
Granted	131		$	63.12
Released	(317	)			$	12,066
Forfeited	(3	)
Outstanding, March 31, 2017	512
Outstanding, January 1, 2018	556		$	47.68
Converted upon acquisition	579		69.40
Granted	136		69.30
Released	(352	)	47.18		$	17,231
Forfeited	(28	)	68.44
Outstanding, March 31, 2018	891		63.72
Vested but not released, March 31, 2018	10				$	729
Expected to vest, March 31, 2018	788				$	56,369

Restricted Stock Units, Valuation Assumptions

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:

	Three Months Ended March 31,
	2018			2017
Expected volatility	28.0		%	28.0		%
Risk-free interest rate	2.2		%	1.0		%
Expected term (years)	2.1			1.7
Weighted average fair value	$	78.56		$	77.78

Schedule of Other Share-based Compensation, Activity [Table Text Block]

The following table summarizes phantom stock unit activity:

	Number of Phantom Stock Units		Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding, January 1, 2017	62
Granted	32		$	65.55
Released	(19	)
Forfeited	(2	)
Outstanding, March 31, 2017	73
Expected to vest, March 31, 2017	73
Outstanding, January 1, 2018	63		$	51.88
Converted upon acquisition	21		69.40
Granted	31		69.30
Released	(27	)	50.19
Forfeited	(1	)	69.36
Outstanding, March 31, 2018	87		62.61
Expected to vest, March 31, 2018	85

XML

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2018

Income Tax Uncertainties [Abstract]

Unrecognized Tax Benefits Related To Uncertain Tax Positions [Table Text Block]

The net interest and penalties expense recognized were as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Net interest and penalties expense	$	424	$	206

Accrued interest and penalties recognized were as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Accrued interest	$	3,155	$	2,706
Accrued penalties	2,513		2,426

Unrecognized tax benefits related to uncertain tax positions and the amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate were as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
Unrecognized tax benefits related to uncertain tax positions	$	76,120	$	56,702
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate	74,671		55,312

XML

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Line of Credit Facilities [Table Text Block]

Our available lines of credit, outstanding standby LOCs, and performance bonds were as follows:

	March 31, 2018			December 31, 2017
	(in thousands)
Credit facilities
Multicurrency revolving line of credit	$	500,000		$	500,000
Long-term borrowings	(95,777		)	(125,414		)
Standby LOCs issued and outstanding	(46,359		)	(31,881		)
Net available for additional borrowings under the multi-currency revolving line of credit	$	357,864		$	342,705
Net available for additional standby LOCs under sub-facility	253,641			218,119
Unsecured multicurrency revolving lines of credit with various financial institutions
Multicurrency revolving lines of credit	$	114,160		$	110,477
Standby LOCs issued and outstanding	(21,471		)	(21,030		)
Short-term borrowings	(1,776		)	(916		)
Net available for additional borrowings and LOCs	$	90,913		$	88,531
Unsecured surety bonds in force	$	52,639		$	51,344

Schedule of Warranty Accruals [Table Text Block]

A summary of the warranty accrual account activity is as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Beginning balance	$	34,862		$	43,302
Assumed liabilities from acquisition	5,742			—
New product warranties	818			2,361
Other adjustments and expirations	4,044			1,682
Claims activity	(4,108		)	(6,351		)
Effect of change in exchange rates	621			542
Ending balance	41,979			41,536
Less: current portion of warranty	26,533			23,500
Long-term warranty	$	15,446		$	18,036

Warranty Expense [Table Text Block]

Warranty expense was as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Total warranty expense	$	4,862	$	4,043

Health Benefit Plan Costs and Incurred But Not Reported Accrual Balance [Table Text Block]

Plan costs were as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Plan costs	$	8,680	$	8,754

The IBNR accrual, which is included in wages and benefits payable, was as follows:

	March 31, 2018		December 31, 2017
	(in thousands)
IBNR accrual	$	2,911	$	2,664

XML

Restructuring (Tables)

3 Months Ended

Mar. 31, 2018

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 2018 and 2016 Projects during the three months ended March 31, 2018:

	Accrued Employee Severance			Asset Impairments & Net Loss on Sale or Disposal			Other Accrued Costs			Total
	(in thousands)
Beginning balance, January 1, 2018	$	37,654		$	—		$	2,471		$	40,125
Costs charged to expense	86,986			47			832			87,865
Cash payments	(7,063		)	—			(854		)	(7,917		)
Net assets disposed and impaired	—			(47		)	—			(47		)
Effect of change in exchange rates	1,566			—			2			1,568
Ending balance, March 31, 2018	$	119,143		$	—		$	2,451		$	121,594

2018 Projects [Member]

Restructuring Project [Line Items]

Restructuring and Related Costs [Table Text Block]

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects are as follows:

	Total Expected Costs at March 31, 2018		Costs Recognized During the Three Months Ended March 31, 2018		Expected Remaining Costs to be Recognized at March 31, 2018
	(in thousands)
Employee severance costs	$	87,993	$	87,993	$	—
Other restructuring costs	16,500		—		16,500
Total	$	104,493	$	87,993	$	16,500
Segments:
Electricity	$	20,706	$	19,206	$	1,500
Gas	51,929		42,929		9,000
Water	23,712		17,712		6,000
Corporate unallocated	8,146		8,146		—
Total	$	104,493	$	87,993	$	16,500

2016 Projects [Member]

Restructuring Project [Line Items]

Restructuring and Related Costs [Table Text Block]

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2016 Projects are as follows:

	Total Expected Costs at March 31, 2018		Costs Recognized in Prior Periods		Costs Recognized During the Three Months Ended March 31, 2018			Expected Remaining Costs to be Recognized at March 31, 2018
	(in thousands)
Employee severance costs	$	38,848	$	39,855	$	(1,007	)	$	—
Asset impairments & net loss on sale or disposal	4,969		4,922		47			—
Other restructuring costs	15,767		9,435		832			5,500
Total	$	59,584	$	54,212	$	(128	)	$	5,500
Segments:
Electricity	$	10,919	$	9,025	$	394		$	1,500
Gas	31,799		29,181		618			2,000
Water	14,763		13,761		(998		)	2,000
Corporate unallocated	2,103		2,245		(142		)	—
Total	$	59,584	$	54,212	$	(128	)	$	5,500

XML

Shareholders' Equity Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2018

Stockholders' Equity Note [Abstract]

Total Comprehensive Income (Loss) [Table Text Block]

The before-tax amount, income tax (provision) benefit, and net-of-tax amount related to each component of OCI were as follows:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Before-tax amount
Foreign currency translation adjustment	$	16,293		$	15,066
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	1,436			97
Net hedging (gain) loss reclassified into net income	(19		)	378
Net defined benefit plan loss reclassified to net income	420			406
Total other comprehensive income (loss), before tax	18,130			15,947
Tax (provision) benefit
Foreign currency translation adjustment	7			(50		)
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	(253		)	(37		)
Net hedging (gain) loss reclassified into net income	5			(146		)
Net defined benefit plan loss reclassified to net income	(6		)	(5		)
Total other comprehensive income (loss) tax benefit	(247		)	(238		)
Net-of-tax amount
Foreign currency translation adjustment	16,300			15,016
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	1,183			60
Net hedging (gain) loss reclassified into net income	(14		)	232
Net defined benefit plan loss reclassified to net income	414			401
Total other comprehensive income (loss), net of tax	$	17,883		$	15,709

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The changes in the components of AOCI, net of tax, were as follows:

	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, 2017	$	(182,986	)	$	43		$	(14,380	)	$	(32,004	)	$	(229,327	)
OCI before reclassifications	15,016			60			—			—			15,076
Amounts reclassified from AOCI	—			232			—			401			633
Total other comprehensive income (loss)	15,016			292			—			401			15,709
Balances at March 31, 2017	$	(167,970	)	$	335		$	(14,380	)	$	(31,603	)	$	(213,618	)
Balances at January 1, 2018	$	(128,648	)	$	966		$	(14,380	)	$	(28,416	)	$	(170,478	)
OCI before reclassifications	16,300			1,183			—			—			17,483
Amounts reclassified from AOCI	—			(14		)	—			414			400
Total other comprehensive income (loss)	16,300			1,169			—			414			17,883
Balances at March 31, 2018	$	(112,348	)	$	2,135		$	(14,380	)	$	(28,002	)	$	(152,595	)

XML

Schedule of Fair Values Of Financial Instruments by Balance Sheet Grouping (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Values Of Financial Instruments by Balance Sheet Grouping [Table Text Block]

The following table presents the fair values of our financial instruments:

	March 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
			(in thousands)
Assets
Cash and cash equivalents	$	143,951	$	143,951	$	176,274	$	176,274
Restricted cash	1,517		1,517		311,061		311,061
Foreign exchange forwards	44		44		41		41
Interest rate swaps	3,529		3,529		2,370		2,370
Interest rate caps	959		959		489		489
Liabilities
Credit facility
USD denominated term loan	$	650,000	$	658,796	$	194,063	$	192,295
Multicurrency revolving line of credit	95,777		97,205		125,414		124,100
Senior notes	400,000		395,000		300,000		301,125
Foreign exchange forwards	356		356		289		289

XML

Segment Information (Tables)

3 Months Ended

Mar. 31, 2018

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:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Product revenues
Electricity	$	213,877		$	205,903
Gas	130,243			117,127
Water	125,587			109,335
Networks	67,403			—
Total Company	$	537,110		$	432,365
Service revenues
Electricity	$	38,528		$	32,848
Gas	7,496			7,084
Water	5,607			5,295
Networks	18,480			—
Total Company	$	70,111		$	45,227
Total revenues
Electricity	$	252,405		$	238,751
Gas	137,739			124,211
Water	131,194			114,630
Networks	85,883			—
Total Company	$	607,221		$	477,592
Gross profit
Electricity	$	69,975		$	67,250
Gas	43,471			50,815
Water	37,805			39,572
Networks	28,604			—
Total Company	$	179,855		$	157,637
Operating income (loss)
Electricity	$	(2,768	)	$	17,084
Gas	(28,348		)	21,731
Water	(11,710		)	8,804
Networks	(75,510		)	—
Corporate unallocated	(22,112		)	(16,792		)
Total Company	(140,448		)	30,827
Total other income (expense)	(16,010		)	(5,766		)
Income (loss) before income taxes	$	(156,458	)	$	25,061

Revenues By Region [Table Text Block]

Revenues by region were as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
United States and Canada	$	355,932	$	269,096
Europe, Middle East, and Africa	202,074		162,815
Other(1)	49,215		45,681
Total revenues	$	607,221	$	477,592

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

Depreciation And Amortization Expense Associated With Segments [Table Text Block]

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

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Electricity	$	6,525	$	5,311
Gas	4,202		4,244
Water	4,109		3,959
Networks	15,012		—
Corporate unallocated	1,224		864
Total Company	$	31,072	$	14,378

XML

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2018

Revenues [Abstract]

Contract with Customer, Asset and Liability [Table Text Block]

A summary of significant net changes in the contract assets and the contract liabilities balances during the period is as follows:

	2018
	Contract liabilities, less contract assets
	(in thousands)
Beginning balance, January 1	$	59,808
Changes due to business combination	38,816
Revenue recognized from beginning contract liability	(24,549		)
Revenue recognized from current period increases	(6,352		)
Increases due to amounts collected or due	56,051
Other	(1,243		)
Ending balance, March 31	$	122,531

XML

Business Combinations (Tables)

3 Months Ended

Mar. 31, 2018

Mar. 31, 2018

Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]

Schedule Of Revenues and Earnings Attributable to an Acquired Business [Table Text Block]

The following table presents the revenues and net income (loss) from SSNI operations that are included in our Consolidated Statements of Operations:

	January 5, 2018 - March 31, 2018
Revenues	$	85,833
Net loss	(29,753		)

SIlver Spring Networks, Inc. [Member]

Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]

Business Acquisition, Pro Forma Information [Table Text Block]

The following supplemental pro forma results are based on the individual historical results of Itron and SSNI, with adjustments to give effect to the combined operations as if the acquisition had been consummated on January 1, 2017.

	Three Months Ended March 31,
	2018			2017
	( in thousands)
Revenues	$	607,221		$	527,855
Net loss	(130,966		)	(27,234		)

Comverge [Member]

Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]

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.

	Three Months Ended March 31,
	2018			2017
	( in thousands)
Revenues	$	607,221		$	491,762
Net income (loss)	(145,270		)	15,107

XML

Business Combinations Preliminary Allocation of Purchase Price (Tables)

3 Months Ended

Mar. 31, 2018

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following reflects our preliminary allocation of purchase price as of January 5, 2018:

	Fair Value			Weighted Average Useful Life
	(in thousands)			(in years)
Current Assets	$	86,962
Property, plant, and equipment	27,670
Other long-term assets (1)	(830		)
Identifiable intangible assets
Core-developed technology	81,900			5
Customer contract and relationships	133,500			10
Trademark and trade names	10,800			3
Total identified intangible assets subject to amortization	226,200			8
In-process research and development (IPR&D)	14,400
Total identified intangible assets	240,600
Goodwill	572,499
Current liabilities	(91,857		)
Customer contract and relationships	(23,900		)	5
Long-term liabilities	(1,928		)
Total net assets acquired	$	809,216

⁽¹⁾  Reflects adjustments to deferred tax assets and liabilities, net as a result of the acquisition, and is classified as part of our overall consolidated deferred tax asset. This negative deferred tax asset more than offsets the fair value of other noncurrent assets acquired.

XML

Summary of Significant Accounting Policies Cash, Cash Equivalent, and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 19, 2018	Dec. 31, 2017	Dec. 22, 2017	Mar. 31, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents Items [Line Items]
Senior Notes		$ 100,000		$ 300,000
Cash and cash equivalents	$ 143,951		$ 176,274		$ 187,928
Restricted Cash, Current	51				0
Restricted Cash, Noncurrent	1,466		311,010		0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	145,468		487,335		$ 187,928	$ 133,565
Senior Notes [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Senior Notes	$ 400,000		$ 300,000
Debt Instrument, Interest Rate, Stated Percentage			5.00%

XML

Summary of Significant Accounting Policies New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 19, 2018	Dec. 31, 2017	Dec. 22, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Senior Notes		$ 100,000		$ 300,000
Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 10,900
Accounting Standards Update 2016-16 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			900
Senior Notes [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Senior Notes	$ 400,000		$ 300,000
Debt Instrument, Interest Rate, Stated Percentage			5.00%

XML

Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income (loss) available to common shareholders	$ (145,666)	$ 15,845
Weighted average common shares outstanding - Basic	38,945	38,474
Dilutive effect of stock-based awards	0	741
Weighted average common shares outstanding - Diluted	38,945	39,215
Earnings (loss) per common share - Basic	$ (3.74)	$ 0.41
Earnings (loss) per common share - Diluted	$ (3.74)	$ 0.40

XML

Earnings Per Share Stock-based Awards (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Stock-based awards excluded from diluted EPS calculation (antidilutive)	1.0	0.2

XML

Certain Balance Sheet Components Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts Receivable, Net, Current [Abstract]
Trade receivables (net of allowance of $4,774 and $3,957)	$ 448,211	$ 369,047
Unbilled receivables	33,178	28,982
Total accounts receivable, net	$ 481,389	$ 398,029

XML

Certain Balance Sheet Components Accounts Receivable Allowance for Bad Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Accounts Receivable, Net, Current [Abstract]
Allowance	$ 4,774	$ 3,957	$ 3,424	$ 3,320

XML

Certain Balance Sheet Components Summary of the Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accounts Receivable, Net, Current [Abstract]
Beginning balance	$ 3,957	$ 3,320
Provision for Doubtful Accounts	920	303
Accounts written-off	(258)	(330)
EffectsOfChangeInExchangeRates	155	131
Ending balance	$ 4,774	$ 3,424

XML

Certain Balance Sheet Components Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventory, Net [Abstract]
Materials	$ 132,990	$ 126,656
Work in process	8,700	9,863
Finished goods	67,683	57,316
Total inventories	$ 209,373	$ 193,835

XML

Certain Balance Sheet Components Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment, Net [Abstract]
Machinery and equipment	$ 332,055	$ 310,753
Computers and software	111,227	104,384
Buildings, furniture, and improvements	150,049	135,566
Land	16,638	18,433
Construction in progress, including purchased equipment	41,959	39,946
Total cost	651,928	609,082
Accumulated depreciation	(417,004)	(408,314)
Property, plant, and equipment, net	$ 234,924	$ 200,768

XML

Certain Balance Sheet Components Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Depreciation Expense [Line Items]
Depreciation	$ 13,332	$ 9,829

XML

Intangible Assets Gross Carrying Amount and Accumulated Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Intangible Assets [Line Items]
Gross Assets	$ 1,025,830	$ 769,851		$ 669,896
Accumulated Amortization	(714,446)	(674,623)
Net Assets	311,384	95,228
Intangible Assets, Net (Excluding Goodwill)	318,984	95,228
Intangible Assets, Gross (Excluding Goodwill)	1,033,430		$ 686,064
Finite-lived intangible liabilities, Gross	(23,900)	0	$ 0	$ 0
Finite-Lived Intangible Liabilities, Accumulated Accretion	1,304	0
Finite-Lived Intangible Liabilities, Net	(22,596)	0
Core-developed technology [Member]
Intangible Assets [Line Items]
Gross Assets	531,263	429,548
Accumulated Amortization	(423,634)	(399,969)
Net Assets	107,629	29,579
Customer contracts and relationships [Member]
Intangible Assets [Line Items]
Gross Assets	400,566	258,586
Accumulated Amortization	(210,757)	(197,582)
Net Assets	189,809	61,004
Trademarks and trade names [Member]
Intangible Assets [Line Items]
Gross Assets	82,337	70,056
Accumulated Amortization	(68,982)	(66,004)
Net Assets	13,355	4,052
Other Intangible Assets [Member]
Intangible Assets [Line Items]
Gross Assets	11,664	11,661
Accumulated Amortization	(11,073)	(11,068)
Net Assets	591	593
In Process Research and Development [Member]
Intangible Assets [Line Items]
Gross Assets	7,600	0
Accumulated Amortization	0	0
Net Assets	$ 7,600	$ 0

XML

Summary of Intangible Asset Account Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Total Intangible Assets [Abstract]
Beginning balance, intangible assets, gross	$ 769,851	$ 669,896
Finite-lived Intangible Assets Acquired	240,600	0
Effect of change in exchange rates	22,979	16,168
Intangible Assets, Gross (Excluding Goodwill)	1,033,430	686,064
Finite-lived intangible liabilities, Gross	(23,900)	0	$ 0	$ 0
Finite-Lived Intangible Liabilities Acquired	(23,900)	0
Finite-Lived Intangible Liabilities, Foreign Currency Translation Gain Loss	$ 0	$ 0

XML

Intangible Assets Estimated Future Annual Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Intangible Assets [Abstract]
2018 (amount remaining at March 31, 2018)	$ 58,564
2019	72,345
2020	52,265
2021	36,649
2022	26,317
Beyond 2022	65,244
Total intangible assets subject to amortization (accretion)	311,384	$ 95,228
2018 (amount remaining at March 31, 2018)	(3,913)
2019	(8,233)
2020	(8,028)
2021	(1,963)
2022	(459)
Beyond 2022	0
Finite-Lived Intangible Liabilities, Net	(22,596)	$ 0
2018 (amount remaining at March 31, 2018)	54,651
2019	64,112
2020	44,237
2021	34,686
2022	25,858
Beyond 2022	65,244
Total intangible assets subject to amortization (accretion)	$ 288,788

XML

Intangible Assets Intangible Assets Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 05, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 17,740	$ 4,549
Business Acquisition, Percentage of Voting Interests Acquired			100.00%
In process research and development completed	$ 6,800

XML

Schedule of Goodwill Allocated to Reporting Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2018
Goodwill [Roll Forward]
Goodwill before impairment, at beginning of period	$ 1,232,229
Accumulated impairment losses, at beginning of period	(676,467)
Goodwill, net, at beginning of period	555,762
Goodwill acquired	572,499
Effect of change in exchange rates	14,496
Goodwill before impairment, at end of period	1,843,857
Accumulated impairment losses, at end of period	(701,100)
Goodwill, net, at end of period	555,762	$ 1,142,757
Electricity Operating Segment [Member]
Goodwill [Roll Forward]
Goodwill before impairment, at beginning of period	500,625
Accumulated impairment losses, at beginning of period	(386,384)
Goodwill, net, at beginning of period	114,241
Goodwill acquired	0
Effect of change in exchange rates	1,031
Goodwill before impairment, at end of period	514,057
Accumulated impairment losses, at end of period	(398,785)
Goodwill, net, at end of period	114,241	115,272
Gas Operating Segment [Member]
Goodwill [Roll Forward]
Goodwill before impairment, at beginning of period	352,703
Accumulated impairment losses, at beginning of period	0
Goodwill, net, at beginning of period	352,703
Goodwill acquired	0
Effect of change in exchange rates	10,788
Goodwill before impairment, at end of period	363,491
Accumulated impairment losses, at end of period	0
Goodwill, net, at end of period	352,703	363,491
Water Operating Segment [Member]
Goodwill [Roll Forward]
Goodwill before impairment, at beginning of period	378,901
Accumulated impairment losses, at beginning of period	(290,083)
Goodwill, net, at beginning of period	88,818
Goodwill acquired	0
Effect of change in exchange rates	2,560
Goodwill before impairment, at end of period	393,693
Accumulated impairment losses, at end of period	(302,315)
Goodwill, net, at end of period	88,818	91,378
Networks Operating Segment [Member]
Goodwill [Roll Forward]
Goodwill before impairment, at beginning of period	0
Accumulated impairment losses, at beginning of period	0
Goodwill, net, at beginning of period	0
Goodwill acquired	572,499
Effect of change in exchange rates	117
Goodwill before impairment, at end of period	572,616
Accumulated impairment losses, at end of period	0
Goodwill, net, at end of period	$ 0	$ 572,616

XML

Schedule of Debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Jan. 19, 2018	Dec. 31, 2017	Dec. 22, 2017
Debt Instrument [Line Items]
Senior Notes		$ 100,000		$ 300,000
Total debt	$ 745,777
Current portion of debt	16,250		$ 19,688
Long-term debt	1,105,538		593,572
2018 (amount remaining at March 31, 2018)	12,188
2019	28,438
2020	44,777
2021	60,937
2022	65,000
2023	534,437
Secured Debt [Member]
Debt Instrument [Line Items]
Total debt	1,145,777		619,477
Current portion of debt	16,250		19,688
Long-term debt	1,105,538		593,572
USD Denominated Term Loan [Member]
Debt Instrument [Line Items]
USD denominated term loan	650,000		194,063
Deferred Finance Costs, Noncurrent, Net	5,912		629
Line of Credit [Member]
Debt Instrument [Line Items]
Multicurrency revolving line of credit	95,777		125,414
Senior Notes [Member]
Debt Instrument [Line Items]
Senior Notes	400,000		300,000
Deferred Finance Costs, Noncurrent, Net	$ 18,077		$ 5,588
EURIBOR [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage	2.00%
Debt Instrument, Basis Spread on Variable Rate	2.00%

XML

Credit Facility Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Jan. 05, 2018	Jun. 23, 2015
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 1,200,000	$ 725,000
Line of Credit Facility, Maximum Borrowing Capacity			500,000
Swingline sub-facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			50,000
Line of credit facility, amount outstanding	$ 0
USD Denominated Term Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 650,000
Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit facility, amount outstanding	95,777	$ 125,414
Line of Credit Facility, Remaining Borrowing Capacity	357,864	$ 342,705
Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 300,000
Secured Debt [Member]
Debt Instrument [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 their related assets. This includes 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 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.
Minimum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.18%
Maximum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.35%
London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis	the LIBOR rate
Debt Instrument, Basis Spread on Variable Rate	2.00%	1.25%
Applicable Interest Rate	3.88%
EURIBOR [Member]
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis	EURIBOR rate
Debt Instrument, Basis Spread on Variable Rate		1.25%
Applicable Interest Rate		1.25%
Alternate base rate (1) [Member]
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis	the prime rate
Alternate base rate (2) [Member]
Debt Instrument [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 (3) [Member]
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis	one-month LIBOR
Debt Instrument, Basis Spread on Variable Rate	1.00%
Alternate base rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Description of Variable Rate Basis	Alternate Base Rate

XML

Debt Senior Note Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended		36 Months Ended	37 Months Ended
	Jan. 14, 2023	Jan. 14, 2022	Jan. 15, 2026	Jan. 14, 2021	Mar. 31, 2018	Jan. 19, 2018	Dec. 31, 2017	Dec. 22, 2017
Debt Instrument [Line Items]
Senior Notes						$ 100,000		$ 300,000
Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage							5.00%
Senior Notes					$ 400,000		$ 300,000
Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage		102.50%
Debt Instrument, Redemption, Period Two [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage	101.25%
Debt Instrument, Redemption, Period Three [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage			100.00%
Debt Instrument, Redemption, Period Four [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage				105.00%
Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption, Description				0.35
Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption, Description				0.65

XML

Derivative and Nonderivative Hedging Instrument Fair Value Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Asset Derivatives [Abstract]
Gross Amounts of Recognized Assets Presented in the Consolidated Balance Sheets	$ 4,532	$ 2,900
Liability Derivatives [Abstract]
Total liability derivatives	356	289
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Asset Derivatives [Abstract]
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	44	41
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Liability Derivatives [Abstract]
Foreign exchange forward contracts	356	289
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Asset Derivatives [Abstract]
Interest Rate Derivative Assets, at Fair Value	1,303	658
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member]
Asset Derivatives [Abstract]
Interest Rate Derivative Assets, at Fair Value	2,226	1,712
Interest Rate Cap [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Asset Derivatives [Abstract]
Interest Rate Derivative Assets, at Fair Value	74	17
Interest Rate Cap [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member]
Asset Derivatives [Abstract]
Interest Rate Derivative Assets, at Fair Value	310	179
Interest Rate Cap [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Asset Derivatives [Abstract]
Interest Rate Derivative Assets, at Fair Value	111	25
Interest Rate Cap [Member] | Not Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member]
Asset Derivatives [Abstract]
Interest Rate Derivative Assets, at Fair Value	$ 464	$ 268

XML

Activity of Hedging Instruments in Accumulated OCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period	$ (170,478)
Unrealized gain (loss) on derivative instruments	1,183	$ 60
Realized losses reclassified into net income (loss)	(14)	232
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period	(152,595)
Accumulated Net Gain (Loss) from Derivative and Nonderivative Instruments Designated as Hedging Instruments [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period	(13,414)	(14,337)
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period	$ (12,245)	$ (14,045)

XML

Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Offsetting Derivative Assets [Abstract]
Gross Amounts of Recognized Assets Presented in the Consolidated Balance Sheets	$ 4,532	$ 2,900
Derivative Financial Instruments Not Offset in the Consolidated Balance Sheets	(128)	(90)
Cash Collateral Received Not Offset in the Consolidated Balance Sheets	0	0
Derivative Asset, Fair Value, Amount Offset Against Collateral	$ 4,404	$ 2,810

XML

Offsetting of Derivative Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Offsetting Derivative Liabilities [Abstract]
Gross Amounts of Recognized Liabilities Presented in the Consolidated Balance Sheets	$ 356	$ 289
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	(128)	(90)
Cash Collateral Pledged Not Offset in the Consolidated Balance Sheets	0	0
Derivative Liability, Fair Value, Amount Offset Against Collateral	$ 228	$ 199

XML

Derivative Financial Instruments Narrative (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018 USD ($) contracts	Dec. 31, 2015 USD ($)	Dec. 31, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Total debt	$ 745,777,000
Net unrealized loss on hedging instruments	152,595,000		$ 170,478,000
Secured Debt [Member]
Total debt	1,145,777,000		619,477,000
Accumulated Other Comprehensive Income, Net Unrealized Gain (Loss) on Nonderivative Instruments [Member]
Net unrealized loss on hedging instruments	$ 14,380,000		$ 14,380,000	$ 14,380,000	$ 14,380,000
Number of Counterparties [Member]
Derivative Counterparties	3		3
Interest Rate Swap [Member]
Number of Interest Rate Derivatives Held | contracts	1
Derivative, Notional Amount	$ 214,000,000
Pay fixed interest rate in interest rate swap	1.42%
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	$ 1,300,000
Interest Rate Cap [Member]
Number of Interest Rate Derivatives Held | contracts	3
Derivative, Notional Amount	$ 100,000,000
Derivative, Cap Interest Rate	2.00%
Derivative Purchase Price		$ 1,700,000
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	$ (300,000)
Forward Contracts [Member]
Description of Derivative Activity Volume	57
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Minimum [Member]
Derivative, Notional Amount	$ 93,000
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member]
Derivative, Notional Amount	47,500,000
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member]
Total debt	$ 690,000,000

XML

Effect of Cash Flow Derivatives on the Balance Sheet and Income Statement, Before Tax (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments Designated as Hedging Instruments [Abstract]
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)	$ 1,247	$ 181
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	19	(378)
Interest Expense [Member]
Derivative Instruments Designated as Hedging Instruments [Abstract]
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	88	(335)
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)	0	0
Interest Rate Cap [Member]
Derivative Instruments Designated as Hedging Instruments [Abstract]
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)	188	(84)
Interest Rate Cap [Member] | Interest Expense [Member]
Derivative Instruments Designated as Hedging Instruments [Abstract]
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(70)	(43)
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)	$ 0	$ 0

XML

Derivatives Not Designated as Hedging Relationships (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other Income (Expense) [Member]
Derivative Instruments Not Designated as Hedging Instruments [Abstract]
Foreign exchange forward contracts	$ (1,523)	$ (1,742)
Interest Rate Cap [Member] | Interest Expense [Member]
Derivative Instruments Not Designated as Hedging Instruments [Abstract]
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments	$ 282	$ (126)

XML

Schedule of Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract]
Plan assets in other long-term assets	$ 1,054	$ 991
Current portion of pension benefit obligation in wages and benefits payable	3,291	3,260
Long-term portion of pension benefit obligation	100,045	95,717
Pension benefit obligation, net	$ 102,282	$ 97,986

XML

Schedule of Net Periodic Pension Benefit Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Defined Benefit Plan [Abstract]
Service cost	$ 1,049	$ 928
Interest cost	609	525
Expected return on plan assets	(181)	(146)
Amortization of actuarial net loss	403	391
Amortization of unrecognized prior service costs	17	15
Net periodic benefit cost	$ 1,897	$ 1,713

XML

Stock-Based Compensation Expense and Related Tax Benefit (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options	$ 831	$ 659
Restricted stock units	7,057	4,297
Unrestricted stock awards	207	255
Phantom stock units	690	392
Total stock-based compensation	8,785	5,603
Related tax benefit	$ 1,534	$ 1,228
Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	10,473,956
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	4,215,490

XML

Stock Option Summary (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
[Line Items]
Outstanding, beginning balance, Number	956	959	959
Outstanding, beginning balance, Weighted Average Exercise Price Per Share	$ 47.10	$ 45.64	$ 45.64
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	6 years 6 months	6 years 8 months 12 days	6 years 3 months 18 days	6 years 7 months 6 days
Outstanding, beginning balance, Aggregate Intrinsic Value	$ 21,965	$ 19,125	$ 19,125
Shares converted upon acquisition, number	42
Shares converted upon acquisition, Weighted Average Exercise Price	$ 51.86
Shares converted upon acquisition, Weighted Average Grant Date Fair Value	$ 14.86
Options granted, number	101	121
Granted, Weighted Average Exercise Price Per Share	$ 69.30	$ 65.55
Granted, Weighted Average Grant Date Fair Value	$ 24.83	$ 22.01
Exercised, Number	(62)	(5)
Exercised, Weighted Average Exercise Price Per Share	$ 40.31	$ 35.29
Exercised, Aggregate Intrinsic Value	$ 2,104	$ 120
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares	(3)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value	$ 72.25
Expired, Number	(7)
Expired, Weighted Average Exercise Price Per Share	$ 95.96
Outstanding, ending balance, Number	1,027	1,075	956	959
Outstanding, ending balance, Weighted Average Exercise Price Per Share	$ 49.49	$ 47.92	$ 47.10	$ 45.64
Outstanding, ending balance, Aggregate Intrinsic Value	$ 24,051	$ 17,236	$ 21,965	$ 19,125
Exercisable, Number	716
Exercisable, Weighted Average Exercise Price Per Share	$ 45.96
Exercisable, Weighted Average Remaining Contractual Term	5 years 6 months
Exercisable, Aggregate Intrinsic Value	$ 19,725
Expected to Vest [Member]
[Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	8 years 10 months 24 days
Outstanding, ending balance, Number	308
Outstanding, ending balance, Weighted Average Exercise Price Per Share	$ 57.74
Outstanding, ending balance, Aggregate Intrinsic Value	$ 4,255

XML

Stock Option Black Scholes Option Pricing Model Assumptions (Details) - Employee Stock Option [Member] - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Expected volatility	30.90%	32.70%
Risk-free interest rate	2.80%	2.00%
Expected term (years)	6 years 1 month 6 days	5 years 6 months
Granted, Weighted Average Grant Date Fair Value	$ 24.83	$ 22.01

XML

Stock-Based Compensation Restricted Stock Units Summary (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
[Line Items]
Outstanding, beginning balance, Number	556	701
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 63.72		$ 47.68
Shares converted upon acquisition, number	579
Shares converted upon acquisition, Weighted Average Grant Date Fair Value	$ 69.40
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	136	131
Weighted average fair value	$ 69.30	$ 63.12
Forfeited, Number	(28)	(3)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 68.44
Outstanding, ending balance, Number	891	512
Vested and Released [Member]
[Line Items]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	352	317
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 47.18
Released, Aggregate Intrinsic Value	$ 17,231	$ 12,066
Vested but Not Released [Member]
[Line Items]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	10
Released, Aggregate Intrinsic Value	$ 729
Expected to Vest [Member]
[Line Items]
Outstanding, ending balance, Number	788
Expected to vest, Aggregate Intrinsic Value	$ 56,369
Long Term Performance Restricted Stock Award [Member]
[Line Items]
Risk-free interest rate	2.20%	1.00%
Expected term (years)	2 years 1 month 6 days	1 year 8 months 12 days
Weighted average fair value	$ 78.56	$ 77.78

XML

Stock-Based Compensation Long-Term Performance Restricted Stock Unit Award Monte Carlo Pricing Model Assumptions (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value	$ 69.30	$ 63.12
Long Term Performance Restricted Stock Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	28.00%	28.00%
Risk-free interest rate	2.20%	1.00%
Expected term (years)	2 years 1 month 6 days	1 year 8 months 12 days
Weighted average fair value	$ 78.56	$ 77.78

XML

Stock-Based Compensation Phantom Stock Units Summary (Details) - Phantom Share Units (PSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 5.7
Outstanding, beginning balance, Number	63	62
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 62.61		$ 51.88
Shares converted upon acquisition, number	21
Shares converted upon acquisition, Weighted Average Grant Date Fair Value	$ 69.40
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	31	32
Weighted average fair value	$ 69.30	$ 65.55
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	(27)	(19)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 50.19
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(1)	(2)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 69.36
Outstanding, ending balance, Number	87	73
Expected to Vest [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, ending balance, Number	85	73

XML

Stock-Based Compensation Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($)
Employee Stock Option [Member]
[Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 5.0
Unrecognized compensation expense, Expected weighted average period for recognition (years)	1 year 9 months 18 days
Restricted Stock Units (RSUs) [Member]
[Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 61.3
Unrecognized compensation expense, Expected weighted average period for recognition (years)	2 years 4 months 24 days
Phantom Share Units (PSUs) [Member]
[Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 5.7
Unrecognized compensation expense, Expected weighted average period for recognition (years)	2 years 2 months 12 days
Deferred Compensation Share-based Arrangements, Liability, Current | $	$ 0.6	$ 1.7
Employee Stock Purchase Plan [Member]
[Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	331,993
Stock Incentive Plan [Member]
[Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	10,473,956
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	4,215,490
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
SSNI Plan [Member]
[Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	730,457
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	142,336

XML

Income Tax Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Uncertainties [Abstract]
Net interest and penalties expense	$ 424	$ 206
Accrued interest	3,155		$ 2,706
Accrued penalties	2,513		2,426
Unrecognized tax benefits related to uncertain tax positions	76,120		56,702
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate	$ 74,671		$ 55,312

XML

Income Taxes Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Examination [Line Items]
Effective Income Tax Rate Reconciliation, Percent	7.00%	36.00%
Unrecognized Tax Benefits	$ 76,120		$ 56,702
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	35.00%
Minimum [Member]
Income Tax Examination [Line Items]
Open Tax Year	2000
Maximum [Member]
Income Tax Examination [Line Items]
Open Tax Year	2015
SSNI Plan [Member]
Income Tax Examination [Line Items]
Unrecognized Tax Benefits	$ 16,400

XML

Commitments and Contingencies Available Lines of Credit, Outstanding Standby Letter of Credits, and Bonds (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 05, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Multicurrency revolving line of credit		$ 500,000
Line of Credit Facility, Capacity remaining to support letters of credit	$ 253,641		$ 218,119
Credit Facility [Member]
Line of Credit Facility [Line Items]
Multicurrency revolving line of credit	500,000		500,000
Long-term Line of Credit	95,777		125,414
Letters of Credit Outstanding, Amount	(46,359)		(31,881)
Unsecured Multicurrency Revolving Lines of Credit [Member]
Line of Credit Facility [Line Items]
Multicurrency revolving line of credit	114,160		110,477
Letters of Credit Outstanding, Amount	(21,471)		(21,030)
Short-term borrowings	(1,776)		(916)
Line of Credit Facility, Remaining Borrowing Capacity	90,913		88,531
Surety Bond [Member]
Line of Credit Facility [Line Items]
Unsecured surety bonds in force	52,639		51,344
Line of Credit [Member]
Line of Credit Facility [Line Items]
Long-term Line of Credit	95,777		125,414
Line of Credit Facility, Remaining Borrowing Capacity	$ 357,864		$ 342,705

XML

Commitments and Contingencies Warranty Account Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Beginning balance	$ 34,862	$ 43,302
Assumed liabilities from acquisition	5,742	0
New product warranties	818	2,361
Other changes/adjustments to warranties	4,044	1,682
Claims activity	(4,108)	(6,351)
Effect of change in exchange rates	621	542
Ending balance	41,979	41,536
Less: current portion of warranty	26,533	23,500
Long-term warranty	$ 15,446	$ 18,036

XML

Commitments and Contingencies Warranty Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Total warranty expense	$ 4,862	$ 4,043

XML

Commitments and Contingencies Health Benefit Plan Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
US Employee Group Health Insurance Expense	$ 8,680	$ 8,754

XML

Commitments and Contingencies Incurred But Not Reported Health Benefit Cost Accrual (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
IBNR Accrual	$ 2,911	$ 2,664

XML

Restructuring Restructuring Expected Costs - 2018 Projects (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring	$ 87,865	$ 3,052
2018 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	104,493
Restructuring	87,993
Restructuring and Related Cost, Expected Cost Remaining	16,500
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring	47
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring	832
Other Restructuring [Member] | 2018 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	16,500
Restructuring	0
Restructuring and Related Cost, Expected Cost Remaining	16,500
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring	86,986
Employee Severance [Member] | 2018 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	87,993
Restructuring	87,993
Restructuring and Related Cost, Expected Cost Remaining	0
Corporate, Non-Segment [Member] | 2018 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	8,146
Restructuring	8,146
Restructuring and Related Cost, Expected Cost Remaining	0
Water Operating Segment [Member] | 2018 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	23,712
Restructuring	17,712
Restructuring and Related Cost, Expected Cost Remaining	6,000
Gas Operating Segment [Member] | 2018 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	51,929
Restructuring	42,929
Restructuring and Related Cost, Expected Cost Remaining	9,000
Electricity Operating Segment [Member] | 2018 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	20,706
Restructuring	19,206
Restructuring and Related Cost, Expected Cost Remaining	$ 1,500

XML

Restructuring Expected Costs - 2016 Projects (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring	$ 87,865	$ 3,052
2016 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	59,584
Restructuring and Related Cost, Cost Incurred to Date			$ 54,212
Restructuring	(128)
Remaining Costs to be Recognized at Period End	5,500
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring	86,986
Employee Severance [Member] | 2016 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	38,848
Restructuring and Related Cost, Cost Incurred to Date			39,855
Restructuring	(1,007)
Remaining Costs to be Recognized at Period End	0
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring	47
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	4,969
Restructuring and Related Cost, Cost Incurred to Date			4,922
Restructuring	47
Remaining Costs to be Recognized at Period End	0
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring	832
Other Restructuring [Member] | 2016 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	15,767
Restructuring and Related Cost, Cost Incurred to Date			9,435
Restructuring	832
Remaining Costs to be Recognized at Period End	5,500
Electricity Operating Segment [Member] | 2016 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	10,919
Restructuring and Related Cost, Cost Incurred to Date			9,025
Restructuring	394
Remaining Costs to be Recognized at Period End	1,500
Gas Operating Segment [Member] | 2016 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	31,799
Restructuring and Related Cost, Cost Incurred to Date			29,181
Restructuring	618
Remaining Costs to be Recognized at Period End	2,000
Water Operating Segment [Member] | 2016 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	14,763
Restructuring and Related Cost, Cost Incurred to Date			13,761
Restructuring	(998)
Remaining Costs to be Recognized at Period End	2,000
Corporate, Non-Segment [Member] | 2016 Projects [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	2,103
Restructuring and Related Cost, Cost Incurred to Date			$ 2,245
Restructuring	(142)
Remaining Costs to be Recognized at Period End	$ 0

XML

Restructuring Related Balance Sheet Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring Cost and Reserve [Line Items]
Beginning balance, January 1, 2018	$ 40,125
Costs charged to expense	87,865	$ 3,052
Cash payments	(7,917)
Net assets disposed and impaired	(47)
Effect of change in exchange rates	1,568
Ending balance, March 31, 2018	121,594
Accrued Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance, January 1, 2018	37,654
Costs charged to expense	86,986
Cash payments	(7,063)
Net assets disposed and impaired	0
Effect of change in exchange rates	1,566
Ending balance, March 31, 2018	119,143
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance, January 1, 2018	0
Costs charged to expense	47
Cash payments	0
Net assets disposed and impaired	(47)
Effect of change in exchange rates	0
Ending balance, March 31, 2018	0
Other Accrued Costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance, January 1, 2018	2,471
Costs charged to expense	832
Cash payments	(854)
Net assets disposed and impaired	0
Effect of change in exchange rates	2
Ending balance, March 31, 2018	$ 2,451

XML

Restructuring Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve, Current	$ 60.3	$ 32.5
Restructuring Reserve, Noncurrent	$ 61.2	$ 7.6

XML

Shareholders' Equity Preferred Stock (Details) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Equity [Abstract]
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Preferred Stock, No Par Value

XML

Shareholders' Equity Stock Repurchase Plan (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2018	Feb. 23, 2017
Equity [Abstract]
Stock Repurchase Program, Authorized Amount		$ 50
Stock Repurchased During Period, Shares	0

XML

Shareholders' Equity Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Before-tax amount [Abstract]
Foreign currency translation adjustment	$ 16,293	$ 15,066
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	1,436	97
Net hedging (gain) loss reclassified into net income	(19)	378
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax	420	406
Total other comprehensive income (loss), before tax	18,130	15,947
Tax (provision) benefit [Abstract]
Foreign currency translation adjustment	7	(50)
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	(253)	(37)
Net hedging (gain) loss reclassified into net income	5	(146)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax	(6)	(5)
Total other comprehensive income (loss) tax benefit	(247)	(238)
Net-of-tax amount [Abstract]
Foreign currency translation adjustment	16,300	15,016
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges	1,183	60
Net hedging loss (gain) reclassified into net income	(14)	232
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax	414	401
Total other comprehensive income (loss), net of tax	$ 17,883	$ 15,709

XML

Shareholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period	$ (170,478)
Total other comprehensive income (loss), net of tax	17,883	$ 15,709
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period	(152,595)
Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period	(170,478)	(229,327)
OCI before reclassifications	17,483	15,076
Amounts reclassified from AOCI	400	633
Total other comprehensive income (loss), net of tax	17,883	15,709
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period	(152,595)	(213,618)
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period	(128,648)	(182,986)
OCI before reclassifications	16,300	15,016
Amounts reclassified from AOCI	0	0
Total other comprehensive income (loss), net of tax	16,300	15,016
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period	(112,348)	(167,970)
Accumulated Other Comprehensive Income, Net Unrealized Gain (Loss) on Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period	966	43
OCI before reclassifications	1,183	60
Amounts reclassified from AOCI	(14)	232
Total other comprehensive income (loss), net of tax	1,169	292
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period	2,135	335
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)
OCI before reclassifications	0	0
Amounts reclassified from AOCI	0	0
Total other comprehensive income (loss), net of tax	0	0
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period	(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	(28,416)	(32,004)
OCI before reclassifications	0	0
Amounts reclassified from AOCI	414	401
Total other comprehensive income (loss), net of tax	414	401
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period	$ (28,002)	$ (31,603)

XML

Schedule of Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 19, 2018	Dec. 31, 2017	Dec. 22, 2017	Mar. 31, 2017
Assets
Cash and cash equivalents	$ 143,951		$ 176,274		$ 187,928
Liabilities
Senior Notes		$ 100,000		$ 300,000
USD Denominated Term Loan [Member]
Liabilities
USD denominated term loan	650,000		194,063
Line of Credit [Member]
Liabilities
Multicurrency revolving line of credit	95,777		125,414
Reported Value Measurement [Member]
Assets
Cash and cash equivalents	143,951		176,274
Restricted Cash	1,517		311,061
Foreign exchange forwards	44		41
Liabilities
Senior Notes	400,000		300,000
Foreign exchange forwards	356		289
Reported Value Measurement [Member] | USD Denominated Term Loan [Member]
Liabilities
USD denominated term loan	650,000		194,063
Reported Value Measurement [Member] | Line of Credit [Member]
Liabilities
Multicurrency revolving line of credit	95,777		125,414
Estimate of Fair Value Measurement [Member]
Assets
Cash and cash equivalents	143,951		176,274
Restricted Cash	1,517		311,061
Foreign exchange forwards	44		41
Liabilities
Senior Notes	395,000		301,125
Foreign exchange forwards	356		289
Estimate of Fair Value Measurement [Member] | USD Denominated Term Loan [Member]
Liabilities
Long-term Debt, Fair Value	658,796		192,295
Estimate of Fair Value Measurement [Member] | Line of Credit [Member]
Liabilities
Line of Credit Facility, Fair Value of Amount Outstanding	97,205		124,100
Interest Rate Swap [Member] | Reported Value Measurement [Member]
Assets
Derivative Asset, Noncurrent	3,529		2,370
Interest Rate Swap [Member] | Estimate of Fair Value Measurement [Member]
Assets
Derivative Asset, Noncurrent	3,529		2,370
Interest Rate Cap [Member] | Reported Value Measurement [Member]
Assets
Derivative Asset, Noncurrent	959		489
Interest Rate Cap [Member] | Estimate of Fair Value Measurement [Member]
Assets
Derivative Asset, Noncurrent	$ 959		$ 489

XML

Information By Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Sales Revenue, Goods, Net	$ 537,110	$ 432,365
Sales Revenue, Services, Net	70,111	45,227
Revenues	607,221	477,592
Gross profit	179,855	157,637
Operating Income (Loss)	(140,448)	30,827
Total other income (expense)	(16,010)	(5,766)
Income Before Income Taxes	(156,458)	25,061
Electricity Operating Segment [Member]
Segment Reporting Information [Line Items]
Sales Revenue, Goods, Net	213,877	205,903
Sales Revenue, Services, Net	38,528	32,848
Revenues	252,405	238,751
Gross profit	69,975	67,250
Operating Income (Loss)	(2,768)	17,084
Gas Operating Segment [Member]
Segment Reporting Information [Line Items]
Sales Revenue, Goods, Net	130,243	117,127
Sales Revenue, Services, Net	7,496	7,084
Revenues	137,739	124,211
Gross profit	43,471	50,815
Operating Income (Loss)	(28,348)	21,731
Water Operating Segment [Member]
Segment Reporting Information [Line Items]
Sales Revenue, Goods, Net	125,587	109,335
Sales Revenue, Services, Net	5,607	5,295
Revenues	131,194	114,630
Gross profit	37,805	39,572
Operating Income (Loss)	(11,710)	8,804
Networks Operating Segment [Member]
Segment Reporting Information [Line Items]
Sales Revenue, Goods, Net	67,403	0
Sales Revenue, Services, Net	18,480	0
Revenues	85,883	0
Gross profit	28,604	0
Operating Income (Loss)	(75,510)	0
Corporate Unallocated [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ (22,112)	$ (16,792)

XML

Segment Results Narrative (Details)	3 Months Ended
	Mar. 31, 2018 $ / shares	Mar. 31, 2017 $ / shares
Segment Reporting [Abstract]
Number of Reportable Segments	4	3
Segment Reporting Information [Line Items]
Concentration Risk, Supplier	We currently buy a majority of our integrated circuit boards, an important component in our products, from two suppliers. Management believes that other suppliers could provide similar circuit boards, but a change in suppliers, disputes with our suppliers, or unexpected constraints on the suppliers' production capacity could adversely affect operating results.
Earnings (loss) per common share - Basic	$ (3.74)	$ 0.41
Earnings (loss) per common share - Diluted	$ (3.74)	$ 0.40

XML

Segment Information Major Customers (Details) - Revenue [Member]	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Threshold for Reporting Customer Concentration [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	10.00%	10.00%
Customer A [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	10.00%
Customer A [Member] | Electricity Operating Segment [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	22.00%	18.00%
Customer A [Member] | Gas Operating Segment [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	11.00%
Customer A [Member] | Networks Operating Segment [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	11.00%
Customer B [Member] | Electricity Operating Segment [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	16.00%

XML

Segment Information Revenues By Region (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Revenues from External Customers [Line Items]
Revenue, Net		$ 607,221	$ 477,592
United States and Canada [Member]
Revenues from External Customers [Line Items]
Revenue, Net		355,932	269,096
Europe, Middle East, and Africa [Member]
Revenues from External Customers [Line Items]
Revenue, Net		202,074	162,815
Other [Member]
Revenues from External Customers [Line Items]
Revenue, Net	[1]	$ 49,215	$ 45,681

[1] The Other region includes our operations in Latin America and Asia Pacific.

XML

Depreciation and Amortization, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 31,072	$ 14,378
Electricity Operating Segment [Member]
Property, Plant and Equipment [Line Items]
Depreciation and amortization	6,525	5,311
Gas Operating Segment [Member]
Property, Plant and Equipment [Line Items]
Depreciation and amortization	4,202	4,244
Water Operating Segment [Member]
Property, Plant and Equipment [Line Items]
Depreciation and amortization	4,109	3,959
Networks Operating Segment [Member]
Property, Plant and Equipment [Line Items]
Depreciation and amortization	15,012	0
Corporate Unallocated [Member]
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 1,224	$ 864

XML

Revenue Recognition Revenue Contract Assets and Liabilities Rollforward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Revenue Recognition and Deferred Revenue [Abstract]
Contract with Customer, net	$ 59,808
Contract with Customer, Liability, Increase (Decrease) for Contract Acquired in Business Combination	38,816
Revenue recognized from beginning contract liability	(24,549)
Revenue recognized from amounts added in the current period	(6,352)
Increases due to amounts billed in the current period	56,051
Other adjustments	(1,243)
Contract with Customer, net	$ 122,531

XML

Revenue Recognition Remaing Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation	$ 740.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months

XML

Revenue Recognition Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Revenue Recognition and Deferred Revenue [Abstract]
Contract with Customer, Asset, Gross	$ 14,200	$ 11,300
Contract with Customer, Liability	136,700	71,100
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred Revenue, Current	87,293	41,438
Retained Earnings (Accumulated Deficit)	(471,812)	$ (337,873)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred Revenue	15,000
Deferred Revenue, Current	6,000
Retained Earnings (Accumulated Deficit)	$ 11,000

XML

Business Combinations Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Jan. 05, 2018
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 802,500
Goodwill acquired	572,499
SIlver Spring Networks, Inc. [Member]
Business Acquisition [Line Items]
Cash Acquired from Acquisition	97,800
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned			$ 6,700
Goodwill acquired	572,500
Business Acquisition, Transaction Costs	15,600
Business Combination, Integration Related Costs	$ 46,800
Comverge [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Other		$ 100,000
Cash Acquired from Acquisition		18,200
Goodwill acquired		$ 59,700

XML

Business Combinations Purchase Price Allocation (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Jan. 05, 2018
Business Acquisition [Line Items]
Business Combination, Current Assets				$ 86,962
Business Combination, Property, Plant, and Equipment				27,670
Business Combination, Other Noncurrent Assets	[1]			(830)
Business Combination, Intangibles Assets				226,200
Acquired Intangible Assets, Weighted Average Useful Life		8 years
Business Combination, Intangible Assets, Other than Goodwill				240,600
Goodwill acquired		$ 572,499
Business Combination, Current Liabilities				(91,857)
Finite-Lived Intangible Liabilities Acquired		(23,900)	$ 0
Business Combination, Noncurrent Liabilities				1,928
SIlver Spring Networks, Inc. [Member]
Business Acquisition [Line Items]
Goodwill acquired		572,500
Business Combination, Goodwill, and Liabilities Assumed, Net				809,216
Business Acquisition, Transaction Costs		$ 15,600
Core Developed Technology [Member]
Business Acquisition [Line Items]
Business Combination, Intangibles Assets				81,900
Acquired Intangible Assets, Weighted Average Useful Life		5 years
Customer Contracts And Relationships [Member]
Business Acquisition [Line Items]
Business Combination, Intangibles Assets				133,500
Acquired Intangible Assets, Weighted Average Useful Life		10 years
Finite-Lived Intangible Liabilities Acquired		$ (23,900)
Acquired Finite-lived Intangible Liabilities, Weighted Average Useful Life		5 years
Trademarks and Trade Names [Member]
Business Acquisition [Line Items]
Business Combination, Intangibles Assets				10,800
Acquired Intangible Assets, Weighted Average Useful Life		3 years
In Process Research and Development [Member]
Business Acquisition [Line Items]
Business Combination, Intangibles Assets				$ 14,400

[1] Reflects adjustments to deferred tax assets and liabilities, net as a result of the acquisition, and is classified as part of our overall consolidated deferred tax asset. This negative deferred tax asset more than offsets the fair value of other noncurrent assets acquired.

XML

Business Combinations Revenue and Earnings Attributed to Business Combination (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Mar. 31, 2017
Business Acquisition [Line Items]
Revenue, Net	$ 607,221		$ 477,592
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (145,270)		16,014
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual		$ 85,833
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual		$ (29,753)
Comverge [Member]
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue			491,762
Business Acquisition, Pro Forma Net Income (Loss)			$ 15,107

XML

Business Combinations Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenue, Net	$ 607,221	$ 477,592
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(145,270)	16,014
SIlver Spring Networks, Inc. [Member]
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Business Acquisition, Pro Forma Revenue		527,855
Business Acquisition, Pro Forma Net Income (Loss)	$ (130,966)	(27,234)
Comverge [Member]
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Business Acquisition, Pro Forma Revenue		491,762
Business Acquisition, Pro Forma Net Income (Loss)		$ 15,107