QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | |||||||||||||||||
Emerging growth company |
Page | |||||
Item 1: Financial Statements (Unaudited) | |||||
Item 4: Controls and Procedures | |||||
Item 1: Legal Proceedings | |||||
Item 1A: Risk Factors | |||||
Item 5: Other Information | |||||
Item 6: Exhibits | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands, except per share data | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
Product revenues | $ | $ | $ | $ | |||||||||||||||||||
Service revenues | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Cost of revenues | |||||||||||||||||||||||
Product cost of revenues | |||||||||||||||||||||||
Service cost of revenues | |||||||||||||||||||||||
Total cost of revenues | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Sales, general and administrative | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Amortization of intangible assets | |||||||||||||||||||||||
Restructuring | ( | ( | ( | ||||||||||||||||||||
Loss on sale of business | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income (loss) | ( | ( | |||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense), net | ( | ( | ( | ( | |||||||||||||||||||
Total other income (expense) | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) before income taxes | ( | ( | |||||||||||||||||||||
Income tax provision | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||||||||
Net income attributable to noncontrolling interests | |||||||||||||||||||||||
Net income (loss) attributable to Itron, Inc. | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Net income (loss) per common share - Basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Net income (loss) per common share - Diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Weighted average common shares outstanding - Basic | |||||||||||||||||||||||
Weighted average common shares outstanding - Diluted |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ||||||||||||||||||||||
Foreign currency translation adjustment reclassified to net income on sale of business | |||||||||||||||||||||||
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | ( | ( | ( | ( | |||||||||||||||||||
Pension benefit obligation adjustment | |||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Total comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests, net of tax | |||||||||||||||||||||||
Comprehensive income (loss) attributable to Itron, Inc. | $ | ( | $ | $ | ( | $ |
In thousands | June 30, 2020 | December 31, 2019 | |||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant, and equipment, net | |||||||||||
Deferred tax assets, net | |||||||||||
Other long-term assets | |||||||||||
Operating lease right-of-use assets, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Other current liabilities | |||||||||||
Wages and benefits payable | |||||||||||
Taxes payable | |||||||||||
Current portion of debt | |||||||||||
Current portion of warranty | |||||||||||
Unearned revenue | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Long-term warranty | |||||||||||
Pension benefit obligation | |||||||||||
Deferred tax liabilities, net | |||||||||||
Operating lease liabilities | |||||||||||
Other long-term obligations | |||||||||||
Total liabilities | |||||||||||
Equity | |||||||||||
Preferred stock, no par value, | |||||||||||
Common stock, no par value, | |||||||||||
Accumulated other comprehensive loss, net | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total Itron, Inc. shareholders' equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Common Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Itron, Inc. Shareholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
In thousands | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2020 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net stock issues and repurchases | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2020 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||||||||||||||||||||
Net stock issues and repurchases | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2020 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Itron, Inc. Shareholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
In thousands | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2019 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net stock issues and repurchases | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||
Stock repurchased | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Balances at March 31, 2019 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income (loss) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||||||||||||||||||||
Net stock issues and repurchases | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||
Stock repurchased | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Balances at June 30, 2019 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Operating activities | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Non-cash operating lease expense | |||||||||||
Stock-based compensation | |||||||||||
Amortization of prepaid debt fees | |||||||||||
Deferred taxes, net | |||||||||||
Loss on sale of business | |||||||||||
Restructuring, non-cash | ( | ( | |||||||||
Other adjustments, net | ( | ||||||||||
Changes in operating assets and liabilities | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ( | |||||||||
Other current assets | ( | ( | |||||||||
Other long-term assets | ( | ||||||||||
Accounts payable, other current liabilities, and taxes payable | ( | ( | |||||||||
Wages and benefits payable | ( | ||||||||||
Unearned revenue | |||||||||||
Warranty | ( | ( | |||||||||
Other operating, net | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Investing activities | |||||||||||
Net payments related to the sale of business | ( | ||||||||||
Acquisitions of property, plant, and equipment | ( | ( | |||||||||
Other investing, net | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities | |||||||||||
Proceeds from borrowings | |||||||||||
Payments on debt | ( | ||||||||||
Issuance of common stock | |||||||||||
Repurchase of common stock | ( | ||||||||||
Prepaid debt fees | ( | ( | |||||||||
Other financing, net | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | ( | ||||||||||
Increase in cash, cash equivalents, and restricted cash | |||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid (received) during the period for: | |||||||||||
Income taxes, net | $ | ( | $ | ||||||||
Interest |
In thousands | June 30, 2020 | December 31, 2019 | June 30, 2019 | ||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Current restricted cash included in other current assets | |||||||||||||||||
Long-term restricted cash | |||||||||||||||||
Total cash, cash equivalents, and restricted cash | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands, except per share data | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income (loss) available to common shareholders | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Weighted average common shares outstanding - Basic | |||||||||||||||||||||||
Dilutive effect of stock-based awards | |||||||||||||||||||||||
Weighted average common shares outstanding - Diluted | |||||||||||||||||||||||
Net income (loss) per common share - Basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Net income (loss) per common share - Diluted | $ | ( | $ | $ | ( | $ |
Accounts receivable, net | |||||||||||
In thousands | June 30, 2020 | December 31, 2019 | |||||||||
Trade receivables (net of allowance of $ | $ | $ | |||||||||
Unbilled receivables | |||||||||||
Total accounts receivable, net | $ | $ |
Allowance for doubtful accounts activity | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Provision for (release of) doubtful accounts, net | ( | ( | |||||||||||||||||||||
Accounts written-off | ( | ( | ( | ( | |||||||||||||||||||
Effect of change in exchange rates | ( | ||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
Inventories | |||||||||||
In thousands | June 30, 2020 | December 31, 2019 | |||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total inventories | $ | $ |
Property, plant, and equipment, net | |||||||||||
In thousands | June 30, 2020 | December 31, 2019 | |||||||||
Machinery and equipment | $ | $ | |||||||||
Computers and software | |||||||||||
Buildings, furniture, and improvements | |||||||||||
Land | |||||||||||
Construction in progress, including purchased equipment | |||||||||||
Total cost | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Property, plant, and equipment, net | $ | $ |
Depreciation expense | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Depreciation expense | $ | $ | $ | $ |
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
In thousands | Gross | Accumulated (Amortization) Accretion | Net | Gross | Accumulated (Amortization) Accretion | Net | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||||||||
Core-developed technology | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Customer contracts and relationships | ( | ( | |||||||||||||||||||||||||||||||||
Trademarks and trade names | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Intangible Liabilities | |||||||||||||||||||||||||||||||||||
Customer contracts and relationships | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( |
Six Months Ended June 30, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Intangible Assets, gross beginning balance | $ | $ | |||||||||
Intangibles disposed in sale of business | ( | ||||||||||
Effect of change in exchange rates | ( | ||||||||||
Intangible Assets, gross ending balance | $ | $ | |||||||||
Intangible Liabilities, gross beginning balance | $ | ( | $ | ( | |||||||
Effect of change in exchange rates | |||||||||||
Intangible Liabilities, gross ending balance | $ | ( | $ | ( |
Year Ending December 31, | Amortization | Accretion | Estimated Annual Amortization, net | |||||||||||||||||
In thousands | ||||||||||||||||||||
2020 (amount remaining at June 30, 2020) | $ | $ | ( | $ | ||||||||||||||||
2021 | ( | |||||||||||||||||||
2022 | ( | |||||||||||||||||||
2023 | ||||||||||||||||||||
2024 | ||||||||||||||||||||
Thereafter | ||||||||||||||||||||
Total intangible assets subject to amortization (accretion) | $ | $ | ( | $ |
In thousands | Device Solutions | Networked Solutions | Outcomes | Total Company | |||||||||||||||||||
Goodwill balance at January 1, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Goodwill allocated to business sold | ( | ( | |||||||||||||||||||||
Effect of change in exchange rates | |||||||||||||||||||||||
Goodwill balance at June 30, 2020 | $ | $ | $ | $ |
In thousands | June 30, 2020 | December 31, 2019 | |||||||||
Credit facility | |||||||||||
USD denominated term loan | $ | $ | |||||||||
Multicurrency revolving line of credit | |||||||||||
Senior notes | |||||||||||
Total debt | |||||||||||
Less: current portion of debt | |||||||||||
Less: unamortized prepaid debt fees - term loan | |||||||||||
Less: unamortized prepaid debt fees - senior notes | |||||||||||
Long-term debt, net | $ | $ |
Year Ending December 31, | Minimum Payments | ||||
In thousands | |||||
2020 (amount remaining at June 30, 2020) | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Total minimum payments on debt | $ |
Fair Value | ||||||||||||||
Derivative Assets | Balance Sheet Location | June 30, 2020 | December 31, 2019 | |||||||||||
Derivatives designated as hedging instruments under ASC 815-20 | In thousands | |||||||||||||
Interest rate swap contract | Other current assets | $ | $ | |||||||||||
Interest rate cap contracts | Other current assets | |||||||||||||
Foreign exchange options | Other current assets | |||||||||||||
Cross currency swap contract | Other current assets | |||||||||||||
Cross currency swap contract | Other long-term assets | |||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | ||||||||||||||
Foreign exchange forward contracts | Other current assets | |||||||||||||
Total asset derivatives | $ | $ | ||||||||||||
Derivative Liabilities | ||||||||||||||
Derivatives designated as hedging instruments under ASC 815-20 | ||||||||||||||
Interest rate swap contracts | Other current liabilities | $ | $ | |||||||||||
Interest rate swap contracts | Other long-term obligations | |||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | ||||||||||||||
Foreign exchange forward contracts | Other current liabilities | |||||||||||||
Total liability derivatives | $ | $ |
In thousands | 2020 | 2019 | |||||||||
Net unrealized loss on hedging instruments at January 1, | $ | ( | $ | ( | |||||||
Unrealized gain (loss) on hedging instruments | ( | ||||||||||
Realized (gains) losses reclassified into net income (loss) | ( | ( | |||||||||
Net unrealized loss on hedging instruments at June 30, | $ | ( | $ | ( |
Offsetting of Derivative Assets | Gross Amounts of Recognized Assets Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||
In thousands | Derivative Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||||
June 30, 2020 | $ | $ | ( | $ | $ | ||||||||||||||||||
December 31, 2019 | ( |
Offsetting of Derivative Liabilities | Gross Amounts of Recognized Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||
In thousands | Derivative Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
June 30, 2020 | $ | $ | ( | $ | $ | ||||||||||||||||||
December 31, 2019 | ( |
Derivatives in ASC 815-20 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivative | Gain (Loss) Reclassified from AOCI into Income | |||||||||||||||||||||||||||
Location | Amount | ||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||||||
Interest rate swap contracts | $ | ( | $ | ( | Interest expense | $ | ( | $ | |||||||||||||||||||||
Interest rate cap contracts | Interest expense | ||||||||||||||||||||||||||||
Foreign exchange options | ( | ( | Product cost of revenues | ( | |||||||||||||||||||||||||
Cross currency swap contract | ( | ( | Interest expense | ||||||||||||||||||||||||||
Cross currency swap contract | Other income/(expense), net | ( | ( | ||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||
Interest rate swap contract | $ | ( | $ | ( | Interest expense | $ | ( | $ | |||||||||||||||||||||
Interest rate cap contracts | Interest expense | ||||||||||||||||||||||||||||
Foreign exchange options | ( | Product cost of revenues | ( | ||||||||||||||||||||||||||
Cross currency swap contract | Interest expense | ||||||||||||||||||||||||||||
Cross currency swap contract | Other income/(expense), net | ( |
Derivatives Not Designated as Hedging Instrument under ASC 815-20 | Location | Gain (Loss) Recognized on Derivatives in Other Income (Expense) | |||||||||||||||
In thousands | 2020 | 2019 | |||||||||||||||
Three Months Ended June 30, | |||||||||||||||||
Foreign exchange forward contracts | Other income (expense), net | $ | ( | $ | ( | ||||||||||||
Six Months Ended June 30, | |||||||||||||||||
Foreign exchange forward contracts | Other income (expense), net | $ | $ | ( | |||||||||||||
In thousands | June 30, 2020 | December 31, 2019 | |||||||||
Assets | |||||||||||
Plan assets in other long-term assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current portion of pension benefit obligation in wages and benefits payable | |||||||||||
Long-term portion of pension benefit obligation | |||||||||||
Pension benefit obligation, net | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of prior service costs | |||||||||||||||||||||||
Amortization of actuarial net loss | |||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Stock options | $ | $ | $ | $ | |||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Unrestricted stock awards | |||||||||||||||||||||||
Phantom stock units | |||||||||||||||||||||||
Total stock-based compensation | $ | $ | $ | $ | |||||||||||||||||||
Related tax benefit | $ | $ | $ | $ |
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, 2019 | $ | $ | |||||||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||||||||
Expired | ( | ||||||||||||||||||||||||||||
Outstanding, June 30, 2019 | $ | $ | |||||||||||||||||||||||||||
Outstanding, January 1, 2020 | $ | $ | |||||||||||||||||||||||||||
Granted | $ | ||||||||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||||||||
Outstanding, June 30, 2020 | $ | $ | |||||||||||||||||||||||||||
Exercisable, June 30, 2020 | $ | $ | |||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
2020 | 2019 | ||||||||||
Expected volatility | % | % | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected term (years) | N/A | ||||||||||
In thousands, except fair value | Number of Restricted Stock Units | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||||||
Outstanding, January 1, 2019 | |||||||||||||||||
Granted | $ | ||||||||||||||||
Released (1) | ( | $ | |||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding, June 30, 2019 | |||||||||||||||||
Outstanding, January 1, 2020 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Released (1) | ( | $ | |||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding, June 30, 2020 | |||||||||||||||||
Vested but not released, June 30, 2020 | $ | ||||||||||||||||
Six Months Ended June 30, | |||||||||||
2020 | 2019 | ||||||||||
Expected volatility | % | % | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected term (years) | |||||||||||
Weighted average fair value | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net interest and penalties expense | $ | $ | ( | $ | $ |
In thousands | June 30, 2020 | December 31, 2019 | |||||||||
Accrued interest | $ | $ | |||||||||
Accrued penalties |
In thousands | June 30, 2020 | December 31, 2019 | |||||||||
Unrecognized tax benefits related to uncertain tax positions | $ | $ | |||||||||
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate |
In thousands | June 30, 2020 | December 31, 2019 | |||||||||
Credit facility | |||||||||||
Multicurrency revolving line of credit | $ | $ | |||||||||
Long-term borrowings | ( | ||||||||||
Standby LOCs issued and outstanding | ( | ( | |||||||||
Net available for additional borrowings under the multi-currency revolving line of credit | $ | $ | |||||||||
Net available for additional standby LOCs under sub-facility | $ | $ | |||||||||
Unsecured multicurrency revolving lines of credit with various financial institutions | |||||||||||
Multicurrency revolving lines of credit | $ | $ | |||||||||
Standby LOCs issued and outstanding | ( | ( | |||||||||
Short-term borrowings | ( | ( | |||||||||
Net available for additional borrowings and LOCs | $ | $ | |||||||||
Unsecured surety bonds in force | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
New product warranties | |||||||||||||||||||||||
Other adjustments and expirations, net | |||||||||||||||||||||||
Claims activity | ( | ( | ( | ( | |||||||||||||||||||
Effect of change in exchange rates | ( | ( | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||||
Less: current portion of warranty | |||||||||||||||||||||||
Long-term warranty | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Total warranty expense | $ | $ | $ | $ |
In thousands | Total Expected Costs at June 30, 2020 | Costs Recognized in Prior Periods | Costs Recognized During the Six Months Ended June 30, 2020 | Expected Remaining Costs to be Recognized at June 30, 2020 | |||||||||||||||||||
Employee severance costs | $ | $ | $ | ( | $ | ||||||||||||||||||
Asset impairments & net loss (gain) on sale or disposal | ( | ||||||||||||||||||||||
Other restructuring costs | |||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ||||||||||||||||||
In thousands | Accrued Employee Severance | Asset Impairments & Net Loss (Gain) on Sale or Disposal | Other Accrued Costs | Total | |||||||||||||||||||
Beginning balance, January 1, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Costs charged to expense | ( | ( | ( | ||||||||||||||||||||
Cash (payments) receipts | ( | ( | ( | ||||||||||||||||||||
Net assets disposed and impaired | ( | ( | |||||||||||||||||||||
Effect of change in exchange rates | ( | ||||||||||||||||||||||
Ending balance, June 30, 2020 | $ | $ | $ | $ |
In thousands | 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) | ||||||||||||||||||||||||
Balances at January 1, 2019 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||
OCI before reclassifications | |||||||||||||||||||||||||||||
Amounts reclassified from AOCI | ( | ( | ( | ||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ||||||||||||||||||||||||||||
Balances at June 30, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Balances at January 1, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
OCI before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified from AOCI | ( | ||||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ||||||||||||||||||||||||||||
Balances at June 30, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Before-tax amount | |||||||||||||||||||||||
Foreign currency translation adjustment | $ | $ | $ | ( | $ | ||||||||||||||||||
Foreign currency translation adjustment reclassified to net income on sale of business | |||||||||||||||||||||||
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | ( | ( | |||||||||||||||||||||
Net hedging (gain) loss reclassified to net income | ( | ( | ( | ||||||||||||||||||||
Net unrealized gain (loss) on defined benefit plans | ( | ||||||||||||||||||||||
Net defined benefit plan (gain) loss reclassified to net income | ( | ( | |||||||||||||||||||||
Total other comprehensive income (loss), before tax | $ | $ | $ | $ | |||||||||||||||||||
Tax (provision) benefit | |||||||||||||||||||||||
Foreign currency translation adjustment | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Foreign currency translation adjustment reclassified to net income on sale of business | |||||||||||||||||||||||
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | |||||||||||||||||||||||
Net hedging (gain) loss reclassified to net income | ( | ||||||||||||||||||||||
Net unrealized gain (loss) on defined benefit plans | ( | ( | |||||||||||||||||||||
Net defined benefit plan (gain) loss reclassified to net income | |||||||||||||||||||||||
Total other comprehensive income (loss) tax benefit | $ | $ | $ | $ | |||||||||||||||||||
Net-of-tax amount | |||||||||||||||||||||||
Foreign currency translation adjustment | $ | $ | $ | ( | $ | ||||||||||||||||||
Foreign currency translation adjustment reclassified to net income on sale of business | |||||||||||||||||||||||
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | ( | ( | |||||||||||||||||||||
Net hedging (gain) loss reclassified to net income | ( | ( | ( | ||||||||||||||||||||
Net unrealized gain (loss) on defined benefit plans | ( | ||||||||||||||||||||||
Net defined benefit plan (gain) loss reclassified to net income | ( | ( | |||||||||||||||||||||
Total other comprehensive income (loss), net of tax | $ | $ | $ | $ |
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
In thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
Credit facility | |||||||||||||||||||||||
USD denominated term loan | $ | $ | $ | $ | |||||||||||||||||||
Multicurrency revolving line of credit | |||||||||||||||||||||||
Senior notes | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Product revenues | |||||||||||||||||||||||
Device Solutions | $ | $ | $ | $ | |||||||||||||||||||
Networked Solutions | |||||||||||||||||||||||
Outcomes | |||||||||||||||||||||||
Total Company | $ | $ | $ | $ | |||||||||||||||||||
Service revenues | |||||||||||||||||||||||
Device Solutions | $ | $ | $ | $ | |||||||||||||||||||
Networked Solutions | |||||||||||||||||||||||
Outcomes | |||||||||||||||||||||||
Total Company | $ | $ | $ | $ | |||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Device Solutions | $ | $ | $ | $ | |||||||||||||||||||
Networked Solutions | |||||||||||||||||||||||
Outcomes | |||||||||||||||||||||||
Total Company | $ | $ | $ | $ | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Device Solutions | $ | $ | $ | $ | |||||||||||||||||||
Networked Solutions | |||||||||||||||||||||||
Outcomes | |||||||||||||||||||||||
Total Company | $ | $ | $ | $ | |||||||||||||||||||
Operating income (loss) | |||||||||||||||||||||||
Device Solutions | $ | ( | $ | $ | $ | ||||||||||||||||||
Networked Solutions | |||||||||||||||||||||||
Outcomes | |||||||||||||||||||||||
Corporate unallocated | ( | ( | ( | ( | |||||||||||||||||||
Total Company | ( | ( | |||||||||||||||||||||
Total other income (expense) | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) before income taxes | $ | ( | $ | $ | ( | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
United States and Canada | $ | $ | $ | $ | |||||||||||||||||||
Europe, Middle East, and Africa (EMEA) | |||||||||||||||||||||||
Latin America and Asia Pacific(1) | |||||||||||||||||||||||
Total Company | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Device Solutions | $ | $ | $ | $ | |||||||||||||||||||
Networked Solutions | |||||||||||||||||||||||
Outcomes | |||||||||||||||||||||||
Corporate unallocated | |||||||||||||||||||||||
Total Company | $ | $ | $ | $ |
In thousands | Contract liabilities, less contract assets | ||||
Beginning balance, January 1, 2020 | $ | ||||
Revenues recognized from beginning contract liability | ( | ||||
Increases due to amounts collected or due | |||||
Revenues recognized from current period increases | ( | ||||
Other | ( | ||||
Ending balance, June 30, 2020 | $ | ||||
In thousands | Loss on sale of business | ||||
Sales price | $ | ||||
Net assets sold (including working capital) | ( | ||||
Currency translation adjustment loss | ( | ||||
Goodwill allocated | ( | ||||
Legal fees | ( | ||||
Total loss on sale of business | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
In thousands, except margin and per share data | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||
GAAP | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Product revenues | $ | 438,985 | $ | 566,047 | (22)% | $ | 967,122 | $ | 1,110,897 | (13)% | |||||||||||||||||||||||||
Service revenues | 70,609 | 68,990 | 2% | 140,887 | 138,716 | 2% | |||||||||||||||||||||||||||||
Total revenues | 509,594 | 635,037 | (20)% | 1,108,009 | 1,249,613 | (11)% | |||||||||||||||||||||||||||||
Gross profit | $ | 138,517 | $ | 191,214 | (28)% | $ | 310,083 | $ | 378,477 | (18)% | |||||||||||||||||||||||||
Operating expenses | 183,904 | 147,656 | 25% | 329,100 | 314,096 | 5% | |||||||||||||||||||||||||||||
Operating income (loss) | (45,387) | 43,558 | NM | (19,017) | 64,381 | NM | |||||||||||||||||||||||||||||
Other income (expense) | (12,299) | (15,022) | (18)% | (21,957) | (29,873) | (26)% | |||||||||||||||||||||||||||||
Income tax provision | (4,801) | (8,419) | (43)% | (12,351) | (14,540) | (15)% | |||||||||||||||||||||||||||||
Net income (loss) attributable to Itron, Inc. | (62,802) | 19,446 | NM | (54,118) | 17,539 | NM | |||||||||||||||||||||||||||||
Non-GAAP(1) | |||||||||||||||||||||||||||||||||||
Non-GAAP operating expenses | $ | 118,187 | $ | 128,041 | (8)% | $ | 251,234 | $ | 258,598 | (3)% | |||||||||||||||||||||||||
Non-GAAP operating income | 20,330 | 63,173 | (68)% | 58,849 | 119,879 | (51)% | |||||||||||||||||||||||||||||
Non-GAAP net income attributable to Itron, Inc. | 1,326 | 34,600 | (96)% | 24,295 | 62,490 | (61)% | |||||||||||||||||||||||||||||
Adjusted EBITDA | 31,201 | 72,966 | (57)% | 83,174 | 138,724 | (40)% | |||||||||||||||||||||||||||||
GAAP Margins and Earnings Per Share | |||||||||||||||||||||||||||||||||||
Gross margin | |||||||||||||||||||||||||||||||||||
Product gross margin | 25.0 | % | 29.2 | % | 26.2 | % | 29.1 | % | |||||||||||||||||||||||||||
Service gross margin | 40.8 | % | 38.0 | % | 40.4 | % | 39.4 | % | |||||||||||||||||||||||||||
Total gross margin | 27.2 | % | 30.1 | % | 28.0 | % | 30.3 | % | |||||||||||||||||||||||||||
Operating margin | (8.9) | % | 6.9 | % | (1.7) | % | 5.2 | % | |||||||||||||||||||||||||||
Net income (loss) per common share - Basic | $ | (1.56) | $ | 0.49 | $ | (1.35) | $ | 0.44 | |||||||||||||||||||||||||||
Net income (loss) per common share - Diluted | $ | (1.56) | $ | 0.49 | $ | (1.35) | $ | 0.44 | |||||||||||||||||||||||||||
Non-GAAP Earnings Per Share(1) | |||||||||||||||||||||||||||||||||||
Non-GAAP diluted EPS | $ | 0.03 | $ | 0.87 | $ | 0.60 | $ | 1.57 | |||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
Units in thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Itron Endpoints | |||||||||||||||||||||||
Standard endpoints | 3,130 | 5,570 | 8,520 | 11,040 | |||||||||||||||||||
Networked endpoints | 4,190 | 4,260 | 8,090 | 8,240 | |||||||||||||||||||
Total endpoints | 7,320 | 9,830 | 16,610 | 19,280 |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||||||||||||||||||||
Total Company | ||||||||||||||||||||||||||||||||
Revenues | $ | 509,594 | $ | 635,037 | $ | (10,766) | $ | (114,677) | $ | (125,443) | ||||||||||||||||||||||
Gross profit | 138,517 | 191,214 | (2,623) | (50,074) | (52,697) | |||||||||||||||||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||||||||||||||||||||
Total Company | ||||||||||||||||||||||||||||||||
Revenues | $ | 1,108,009 | $ | 1,249,613 | $ | (19,180) | $ | (122,424) | $ | (141,604) | ||||||||||||||||||||||
Gross profit | 310,083 | 378,477 | (4,489) | (63,905) | (68,394) |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||||||||||||||||||||
Total Company | ||||||||||||||||||||||||||||||||
Sales, general and administrative | $ | 69,538 | $ | 88,259 | $ | (1,048) | $ | (17,673) | $ | (18,721) | ||||||||||||||||||||||
Research and development | 48,994 | 49,449 | (212) | (243) | (455) | |||||||||||||||||||||||||||
Amortization of intangible assets | 11,140 | 16,117 | (87) | (4,890) | (4,977) | |||||||||||||||||||||||||||
Restructuring | (2,683) | (6,169) | (22) | 3,508 | 3,486 | |||||||||||||||||||||||||||
Loss on sale of business | 56,915 | — | — | 56,915 | 56,915 | |||||||||||||||||||||||||||
Total Operating expenses | $ | 183,904 | $ | 147,656 | $ | (1,369) | $ | 37,617 | $ | 36,248 | ||||||||||||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||||||||||||||||||||
Total Company | ||||||||||||||||||||||||||||||||
Sales, general and administrative | $ | 150,036 | $ | 180,974 | $ | (2,277) | $ | (28,661) | $ | (30,938) | ||||||||||||||||||||||
Research and development | 102,775 | 99,939 | (343) | 3,179 | 2,836 | |||||||||||||||||||||||||||
Amortization of intangible assets | 22,305 | 32,090 | (151) | (9,634) | (9,785) | |||||||||||||||||||||||||||
Restructuring | (2,931) | 1,093 | (181) | (3,843) | (4,024) | |||||||||||||||||||||||||||
Loss on sale of business | 56,915 | — | — | 56,915 | 56,915 | |||||||||||||||||||||||||||
Total Operating expenses | $ | 329,100 | $ | 314,096 | $ | (2,952) | $ | 17,956 | $ | 15,004 |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Interest income | $ | 1,258 | $ | 534 | 136% | $ | 1,811 | $ | 862 | 110% | |||||||||||||||||||||||||
Interest expense | (10,678) | (12,294) | (13)% | (20,948) | (24,629) | (15)% | |||||||||||||||||||||||||||||
Amortization of prepaid debt fees | (1,006) | (1,202) | (16)% | (2,013) | (2,402) | (16)% | |||||||||||||||||||||||||||||
Other income (expense), net | (1,873) | (2,060) | (9)% | (807) | (3,704) | (78)% | |||||||||||||||||||||||||||||
Total other income (expense) | $ | (12,299) | $ | (15,022) | (18)% | $ | (21,957) | $ | (29,873) | (26)% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||
Segment Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Device Solutions | $ | 129,165 | $ | 217,723 | (41)% | $ | 331,444 | $ | 439,478 | (25)% | |||||||||||||||||||||||||||||||||||||
Networked Solutions | 324,480 | 355,916 | (9)% | 665,325 | 692,343 | (4)% | |||||||||||||||||||||||||||||||||||||||||
Outcomes | 55,949 | 61,398 | (9)% | 111,240 | 117,792 | (6)% | |||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 509,594 | $ | 635,037 | (20)% | $ | 1,108,009 | $ | 1,249,613 | (11)% | |||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
In thousands | Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | |||||||||||||||||||||||||||||||||||||||
Segment Gross Profit and Margin | |||||||||||||||||||||||||||||||||||||||||||||||
Device Solutions | $ | 11,948 | 9.3% | $ | 41,590 | 19.1% | $ | 44,315 | 13.4% | $ | 81,506 | 18.5% | |||||||||||||||||||||||||||||||||||
Networked Solutions | 108,323 | 33.4% | 126,243 | 35.5% | 230,073 | 34.6% | 253,311 | 36.6% | |||||||||||||||||||||||||||||||||||||||
Outcomes | 18,246 | 32.6% | 23,381 | 38.1% | 35,695 | 32.1% | 43,660 | 37.1% | |||||||||||||||||||||||||||||||||||||||
Total gross profit and margin | $ | 138,517 | 27.2% | $ | 191,214 | 30.1% | $ | 310,083 | 28.0% | $ | 378,477 | 30.3% | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||
Segment Operating Expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Device Solutions | $ | 13,068 | $ | 13,235 | (1)% | $ | 27,237 | $ | 27,694 | (2)% | |||||||||||||||||||||||||||||||||||||
Networked Solutions | 30,941 | 28,208 | 10% | 64,011 | 59,954 | 7% | |||||||||||||||||||||||||||||||||||||||||
Outcomes | 9,020 | 9,014 | —% | 18,271 | 18,883 | (3)% | |||||||||||||||||||||||||||||||||||||||||
Corporate unallocated | 130,875 | 97,199 | 35% | 219,581 | 207,565 | 6% | |||||||||||||||||||||||||||||||||||||||||
Total operating expenses | $ | 183,904 | $ | 147,656 | 25% | $ | 329,100 | $ | 314,096 | 5% | |||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
In thousands | Operating Income (Loss) | Operating Margin | Operating Income (Loss) | Operating Margin | Operating Income (Loss) | Operating Margin | Operating Income (Loss) | Operating Margin | |||||||||||||||||||||||||||||||||||||||
Segment Operating Income (Loss) and Operating Margin | |||||||||||||||||||||||||||||||||||||||||||||||
Device Solutions | $ | (1,120) | (0.9)% | $ | 28,355 | 13.0% | $ | 17,078 | 5.2% | $ | 53,812 | 12.2% | |||||||||||||||||||||||||||||||||||
Networked Solutions | 77,382 | 23.8% | 98,035 | 27.5% | 166,062 | 25.0% | 193,357 | 27.9% | |||||||||||||||||||||||||||||||||||||||
Outcomes | 9,226 | 16.5% | 14,367 | 23.4% | 17,424 | 15.7% | 24,777 | 21.0% | |||||||||||||||||||||||||||||||||||||||
Corporate unallocated | (130,875) | (25.7)% | (97,199) | (15.3)% | (219,581) | (19.8)% | (207,565) | (16.6)% | |||||||||||||||||||||||||||||||||||||||
Total operating income (loss) and operating margin | $ | (45,387) | (8.9)% | $ | 43,558 | 6.9% | $ | (19,017) | (1.7)% | $ | 64,381 | 5.2% |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||||||||||||||||||||
Device Solutions Segment | ||||||||||||||||||||||||||||||||
Revenues | $ | 129,165 | $ | 217,723 | $ | (9,078) | $ | (79,480) | $ | (88,558) | ||||||||||||||||||||||
Gross profit | 11,948 | 41,590 | (1,961) | (27,681) | (29,642) | |||||||||||||||||||||||||||
Operating expenses | 13,068 | 13,235 | (95) | (72) | (167) | |||||||||||||||||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||||||||||||||||||||
Device Solutions Segment | ||||||||||||||||||||||||||||||||
Revenues | $ | 331,444 | $ | 439,478 | $ | (16,711) | $ | (91,323) | $ | (108,034) | ||||||||||||||||||||||
Gross profit | 44,315 | 81,506 | (3,466) | (33,725) | (37,191) | |||||||||||||||||||||||||||
Operating expenses | 27,237 | 27,694 | (206) | (251) | (457) |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||||||||||||||||||||
Networked Solutions Segment | ||||||||||||||||||||||||||||||||
Revenues | $ | 324,480 | $ | 355,916 | $ | (1,102) | $ | (30,334) | $ | (31,436) | ||||||||||||||||||||||
Gross profit | 108,323 | 126,243 | (380) | (17,540) | (17,920) | |||||||||||||||||||||||||||
Operating expenses | 30,941 | 28,208 | (16) | 2,749 | 2,733 | |||||||||||||||||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||||||||||||||||||||
Networked Solutions Segment | ||||||||||||||||||||||||||||||||
Revenues | $ | 665,325 | $ | 692,343 | $ | (1,491) | $ | (25,527) | $ | (27,018) | ||||||||||||||||||||||
Gross profit | 230,073 | 253,311 | (537) | (22,701) | (23,238) | |||||||||||||||||||||||||||
Operating expenses | 64,011 | 59,954 | (38) | 4,095 | 4,057 |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||||||||||||||||||||
Outcomes Segment | ||||||||||||||||||||||||||||||||
Revenues | $ | 55,949 | $ | 61,398 | $ | (587) | $ | (4,862) | $ | (5,449) | ||||||||||||||||||||||
Gross profit | 18,246 | 23,381 | (283) | (4,852) | (5,135) | |||||||||||||||||||||||||||
Operating expenses | 9,020 | 9,014 | (12) | 18 | 6 | |||||||||||||||||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | ||||||||||||||||||||||||||||||
Outcomes Segment | ||||||||||||||||||||||||||||||||
Revenues | $ | 111,240 | $ | 117,792 | $ | (979) | $ | (5,573) | $ | (6,552) | ||||||||||||||||||||||
Gross profit | 35,695 | 43,660 | (486) | (7,479) | (7,965) | |||||||||||||||||||||||||||
Operating expenses | 18,271 | 18,883 | (33) | (579) | (612) |
Quarter Ended | Quarterly Bookings | Ending Total Backlog | Ending 12-Month Backlog | ||||||||||||||
In millions | |||||||||||||||||
June 30, 2020 | $ | 390 | $ | 2,895 | $ | 1,291 | |||||||||||
March 31, 2020 | 418 | 3,020 | 1,319 | ||||||||||||||
December 31, 2019 | 767 | 3,207 | 1,499 | ||||||||||||||
September 30, 2019 | 609 | 3,063 | 1,361 | ||||||||||||||
June 30, 2019 | 702 | 3,090 | 1,403 | ||||||||||||||
Six Months Ended June 30, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Cash provided by operating activities | $ | 25,786 | $ | 78,063 | |||||||
Cash used in investing activities | (29,159) | (16,738) | |||||||||
Cash provided by (used in) financing activities | 401,963 | (46,527) | |||||||||
Effect of exchange rates on cash, cash equivalents, and restricted cash | (3,671) | 727 | |||||||||
Increase in cash, cash equivalents, and restricted cash | $ | 394,919 | $ | 15,525 |
Six Months Ended June 30, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Cash provided by operating activities | $ | 25,786 | $ | 78,063 | |||||||
Acquisitions of property, plant, and equipment | (29,049) | (26,511) | |||||||||
Free cash flow | $ | (3,263) | $ | 51,552 |
TOTAL COMPANY RECONCILIATIONS | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
In thousands, except per share data | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
NON-GAAP OPERATING EXPENSES | ||||||||||||||||||||||||||||||||
GAAP operating expenses | $ | 183,904 | $ | 147,656 | $ | 329,100 | $ | 314,096 | ||||||||||||||||||||||||
Amortization of intangible assets | (11,140) | (16,117) | (22,305) | (32,090) | ||||||||||||||||||||||||||||
Restructuring | 2,683 | 6,169 | 2,931 | (1,093) | ||||||||||||||||||||||||||||
Loss on sale of business | (56,915) | — | (56,915) | — | ||||||||||||||||||||||||||||
Corporate transition cost | (7) | (473) | 33 | (1,556) | ||||||||||||||||||||||||||||
Acquisition and integration related expense | (338) | (9,194) | (1,610) | (20,759) | ||||||||||||||||||||||||||||
Non-GAAP operating expenses | $ | 118,187 | $ | 128,041 | $ | 251,234 | $ | 258,598 | ||||||||||||||||||||||||
NON-GAAP OPERATING INCOME | ||||||||||||||||||||||||||||||||
GAAP operating income (loss) | $ | (45,387) | $ | 43,558 | $ | (19,017) | $ | 64,381 | ||||||||||||||||||||||||
Amortization of intangible assets | 11,140 | 16,117 | 22,305 | 32,090 | ||||||||||||||||||||||||||||
Restructuring | (2,683) | (6,169) | (2,931) | 1,093 | ||||||||||||||||||||||||||||
Loss on sale of business | 56,915 | — | 56,915 | — | ||||||||||||||||||||||||||||
Corporate transition cost | 7 | 473 | (33) | 1,556 | ||||||||||||||||||||||||||||
Acquisition and integration related expense | 338 | 9,194 | 1,610 | 20,759 | ||||||||||||||||||||||||||||
Non-GAAP operating income | $ | 20,330 | $ | 63,173 | $ | 58,849 | $ | 119,879 | ||||||||||||||||||||||||
NON-GAAP NET INCOME & DILUTED EPS | ||||||||||||||||||||||||||||||||
GAAP net income (loss) attributable to Itron, Inc. | $ | (62,802) | $ | 19,446 | $ | (54,118) | $ | 17,539 | ||||||||||||||||||||||||
Amortization of intangible assets | 11,140 | 16,117 | 22,305 | 32,090 | ||||||||||||||||||||||||||||
Amortization of debt placement fees | 963 | 1,159 | 1,926 | 2,315 | ||||||||||||||||||||||||||||
Restructuring | (2,683) | (6,169) | (2,931) | 1,093 | ||||||||||||||||||||||||||||
Loss on sale of business | 56,915 | — | 56,915 | — | ||||||||||||||||||||||||||||
Corporate transition cost | 7 | 473 | (33) | 1,556 | ||||||||||||||||||||||||||||
Acquisition and integration related expense | 338 | 9,194 | 1,610 | 20,759 | ||||||||||||||||||||||||||||
Income tax effect of non-GAAP adjustments | (2,552) | (5,620) | (1,379) | (12,862) | ||||||||||||||||||||||||||||
Non-GAAP net income attributable to Itron, Inc. | $ | 1,326 | $ | 34,600 | $ | 24,295 | $ | 62,490 | ||||||||||||||||||||||||
Non-GAAP diluted EPS | $ | 0.03 | $ | 0.87 | $ | 0.60 | $ | 1.57 | ||||||||||||||||||||||||
Non-GAAP weighted average common shares outstanding - Diluted | 40,488 | 39,686 | 40,481 | 39,875 | ||||||||||||||||||||||||||||
ADJUSTED EBITDA | ||||||||||||||||||||||||||||||||
GAAP net income (loss) attributable to Itron, Inc. | $ | (62,802) | $ | 19,446 | $ | (54,118) | $ | 17,539 | ||||||||||||||||||||||||
Interest income | (1,258) | (534) | (1,811) | (862) | ||||||||||||||||||||||||||||
Interest expense | 11,684 | 13,496 | 22,961 | 27,031 | ||||||||||||||||||||||||||||
Income tax provision | 4,801 | 8,419 | 12,351 | 14,540 | ||||||||||||||||||||||||||||
Depreciation and amortization | 24,199 | 28,641 | 48,230 | 57,068 | ||||||||||||||||||||||||||||
Restructuring | (2,683) | (6,169) | (2,931) | 1,093 | ||||||||||||||||||||||||||||
Loss on sale of business | 56,915 | — | 56,915 | — | ||||||||||||||||||||||||||||
Corporate transition cost | 7 | 473 | (33) | 1,556 | ||||||||||||||||||||||||||||
Acquisition and integration related expense | 338 | 9,194 | 1,610 | 20,759 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 31,201 | $ | 72,966 | $ | 83,174 | $ | 138,724 | ||||||||||||||||||||||||
FREE CASH FLOW | ||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 6,892 | $ | 53,139 | $ | 25,786 | $ | 78,063 | ||||||||||||||||||||||||
Acquisitions of property, plant, and equipment | (16,447) | (15,096) | (29,049) | (26,511) | ||||||||||||||||||||||||||||
Free Cash Flow | $ | (9,555) | $ | 38,043 | $ | (3,263) | $ | 51,552 |
Dollars in thousands | 2020 | 2021 | 2022 | 2023 | 2024 | Total | Fair Value | ||||||||||||||||||||||||||||||||||
Variable Rate Debt | |||||||||||||||||||||||||||||||||||||||||
Principal: U.S. dollar term loan | $ | — | $ | 32,422 | $ | 44,063 | $ | 44,063 | $ | 429,608 | $ | 550,156 | $ | 532,090 | |||||||||||||||||||||||||||
Weighted average interest rate | 1.67 | % | 1.63 | % | 1.62 | % | 1.69 | % | 1.82 | % | |||||||||||||||||||||||||||||||
Principal: Multicurrency revolving line of credit | $ | — | $ | — | $ | — | $ | — | $ | 400,000 | $ | 400,000 | $ | 385,272 | |||||||||||||||||||||||||||
Weighted average interest rate | 1.67 | % | 1.63 | % | 1.62 | % | 1.69 | % | 1.82 | % | |||||||||||||||||||||||||||||||
Interest rate swap | |||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate (pay) Fixed | 0.62 | % | 0.62 | % | 0.62 | % | 0.62 | % | |||||||||||||||||||||||||||||||||
Weighted average interest rate (receive) Floating LIBOR | 0.17 | % | 0.13 | % | 0.12 | % | 0.15 | % | |||||||||||||||||||||||||||||||||
Cross currency swap | |||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate (pay) Fixed - EURIBOR | 1.38 | % | 1.38 | % | |||||||||||||||||||||||||||||||||||||
Weighted average interest rate (receive) Floating - LIBOR | 0.17 | % | 0.17 | % | |||||||||||||||||||||||||||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (2) | 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 | |||||||||||||||||||
In thousands | |||||||||||||||||||||||
April 1, 2020 through April 30, 2020 | — | $ | — | — | $ | — | |||||||||||||||||
May 1, 2020 through May 31, 2020 | 9,045 | 62.63 | — | — | |||||||||||||||||||
June 1, 2020 through June 30, 2020 | — | — | — | — | |||||||||||||||||||
Total | 9,045 | — |
Exhibit Number | Description of Exhibits | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101 | The following financial information from Itron, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income (Loss), (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to the Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
ITRON, INC. | |||||||||||
August 3, 2020 | By: | /s/ JOAN S. HOOPER | |||||||||
Date | Joan S. Hooper | ||||||||||
Senior Vice President and Chief Financial Officer |
ITRON, INC. | |||||||||||
By: | /s/ THOMAS L. DEITRICH | ||||||||||
Thomas L. Deitrich President and Chief Executive Officer |
ITRON, INC. | |||||||||||
By: | /s/ JOAN S. HOOPER | ||||||||||
Joan S. Hooper Senior Vice President and Chief Financial Officer |
/s/ THOMAS L. DEITRICH | August 3, 2020 | |||||||
Thomas L. Deitrich President and Chief Executive Officer | Date | |||||||
/s/ JOAN S. HOOPER | August 3, 2020 | |||||||
Joan S. Hooper Senior Vice President and Chief Financial Officer | Date | |||||||
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Revenues | ||||
Revenues | $ 509,594 | $ 635,037 | $ 1,108,009 | $ 1,249,613 |
Cost of revenues | ||||
Cost of revenues | 371,077 | 443,823 | 797,926 | 871,136 |
Gross profit | 138,517 | 191,214 | 310,083 | 378,477 |
Operating expenses | ||||
Sales, general and administrative | 69,538 | 88,259 | 150,036 | 180,974 |
Research and development | 48,994 | 49,449 | 102,775 | 99,939 |
Amortization of intangible assets | 11,140 | 16,117 | 22,305 | 32,090 |
Restructuring | (2,683) | (6,169) | (2,931) | 1,093 |
Total operating expenses | 183,904 | 147,656 | 329,100 | 314,096 |
Operating income (loss) | (45,387) | 43,558 | (19,017) | 64,381 |
Other income (expense) | ||||
Interest income | 1,258 | 534 | 1,811 | 862 |
Interest expense | (11,684) | (13,496) | (22,961) | (27,031) |
Other income (expense), net | (1,873) | (2,060) | (807) | (3,704) |
Total other income (expense) | (12,299) | (15,022) | (21,957) | (29,873) |
Income (loss) before income taxes | (57,686) | 28,536 | (40,974) | 34,508 |
Income tax provision | (4,801) | (8,419) | (12,351) | (14,540) |
Net income (loss) | (62,487) | 20,117 | (53,325) | 19,968 |
Net income attributable to noncontrolling interests | 315 | 671 | 793 | 2,429 |
Net income (loss) attributable to Itron, Inc. | $ (62,802) | $ 19,446 | $ (54,118) | $ 17,539 |
Earnings (loss) per common share - Basic (in dollars per share) | $ (1.56) | $ 0.49 | $ (1.35) | $ 0.44 |
Earnings (loss) per common share - Diluted (in dollars per share) | $ (1.56) | $ 0.49 | $ (1.35) | $ 0.44 |
Weighted average common shares outstanding - Basic (in shares) | 40,216 | 39,389 | 40,130 | 39,523 |
Weighted average common shares outstanding - Diluted (in shares) | 40,216 | 39,686 | 40,130 | 39,875 |
Gain (Loss) on Disposition of Other Assets | $ 56,915 | $ 0 | $ 56,915 | $ 0 |
Product [Member] | ||||
Revenues | ||||
Revenues | 438,985 | 566,047 | 967,122 | 1,110,897 |
Cost of revenues | ||||
Cost of revenues | 329,293 | 401,033 | 713,974 | 787,135 |
Service [Member] | ||||
Revenues | ||||
Revenues | 70,609 | 68,990 | 140,887 | 138,716 |
Cost of revenues | ||||
Cost of revenues | $ 41,784 | $ 42,790 | $ 83,952 | $ 84,001 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (62,487) | $ 20,117 | $ (53,325) | $ 19,968 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 11,310 | 5,187 | (14,135) | 2,801 |
Foreign currency translation adjustment reclassified to net income on sale of business | 52,088 | 0 | 52,088 | 0 |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | (1,389) | (1,634) | (2,156) | (1,499) |
Pension benefit obligation adjustment | 47 | 183 | 1,048 | 654 |
Total other comprehensive income (loss), net of tax | 62,056 | 3,736 | 36,845 | 1,956 |
Total comprehensive income (loss), net of tax | (431) | 23,853 | (16,480) | 21,924 |
Comprehensive income attributable to noncontrolling interests, net of tax | 315 | 671 | 793 | 2,429 |
Comprehensive income (loss) attributable to Itron, Inc. | $ (746) | $ 23,182 | $ (17,273) | $ 19,495 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 40,234,000 | 39,941,000 |
Common stock, shares outstanding (in shares) | 40,234,000 | 39,941,000 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in share) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Financial Statement Preparation The 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, Consolidated Statements of Comprehensive Income (Loss), and Consolidated Statements of Equity for the three and six months ended June 30, 2020 and 2019, the Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019, and the Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019, 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 and six months ended June 30, 2020 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 partially or completely omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) regarding interim results. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2019 filed with the SEC in our Annual Report on Form 10-K on February 27, 2020 (2019 Annual Report). There have been no significant changes in financial statement preparation or significant accounting policies since December 31, 2019. Risks and Uncertainties The COVID-19 pandemic has had global economic impacts including disrupting global supply chains and creating market volatility. The extent of the recent pandemic and its ongoing impact on our operations is volatile, but is being monitored closely by our management. We expect that certain of our customers’ projects and deployments may shift to later in 2020 and 2021. At this time, we have not identified any significant decrease in long-term customer demand for our products and services. Nonetheless, a prolonged pandemic could adversely impact the efficiency and effectiveness of our organization, further impact our global supply chain network, result in delays or decreases in customer collections, reduce demand for our products and services, and inhibit our sales efforts, any of which could further materially impact our revenues, results of operations, cash flows and financial condition. Restricted Cash and Cash Equivalents Cash and cash equivalents that are contractually restricted from operating use are classified as restricted cash and cash equivalents. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:
Accounts Receivable, net Accounts receivable are recognized for invoices issued to customers in accordance with our contractual arrangements. Interest and late payment fees are minimal. Unbilled receivables are recognized when revenues are recognized upon product shipment or service delivery and invoicing occurs at a later date. We recognize an allowance for doubtful accounts representing our estimate of the expected losses in accounts receivable at the date of the balance sheet based on our historical experience of bad debts, our specific review of outstanding receivables, and our review of current and expected economic conditions. Accounts receivable are written-off against the allowance when we believe an account, or a portion thereof, is no longer collectible. Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Subsequent to 2016-13 the FASB also issued codification improvements and transition relief in ASU 2019-04, ASU 2019-05, ASU 2019-11, ASU 2020-02, and ASU 2020-03, hereafter collectively referred to as Accounting Standards Codification (ASC) 326. ASC 326 replaces the incurred loss impairment methodology in previous GAAP with a methodology based on expected credit losses, which results in losses being recognized earlier. The estimate of expected credit losses uses a broader range of reasonable and supportable information. We adopted ASC 326 on January 1, 2020, and the impacts on our consolidated financial position, results of operations, and cash flows were immaterial. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which amended the disclosure requirements under ASC 820. This update clarifies and unifies the disclosure of Level 3 fair value instruments. We adopted this standard on January 1, 2020, and it did not materially impact our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which amends the disclosure requirements under ASC 715-20. This update clarifies annual disclosures for Defined Benefit Plans. We adopted this standard on January 1, 2020, and it did not materially impact our consolidated financial statements. Recent Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which modifies certain provisions of ASC 740, in an effort to reduce the complexity of accounting for income taxes. ASU 2019-12 is effective for us beginning with our interim financial reports for the first quarter of 2021. We are currently evaluating the effects and do not believe this standard will have a material impact on our consolidated financial position, results of operations, or cash flows. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. ASU 2020-04 applies to contracts that reference LIBOR or another reference rate expected to be terminated because of reference rate reform. An entity may elect certain optional expedients for hedging relationships that exist as of December 31, 2022, and maintain those optional expedients through the end of the hedging relationship. ASU 2020-04 can be adopted as of March 12, 2020. We do not currently have any contracts that have been changed to a new reference rate, but we will continue to evaluate our contracts and the effects of this standard on our consolidated financial position, results of operations, and cash flows prior to adoption.
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Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings (loss) per share (EPS):
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Certain Balance Sheet Components |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain Balance Sheet Components | Certain Balance Sheet Components A summary of accounts receivable from contracts with customers is as follows:
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Intangible Assets and Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Liabilities | Intangible Assets and Liabilities The gross carrying amount and accumulated amortization (accretion) of our intangible assets and liabilities, other than goodwill, were as follows:
A summary of intangible assets and liabilities activity is as follows:
On January 5, 2018, we completed our acquisition of Silver Spring Networks, Inc. (SSNI) and acquired intangible assets including in-process research and development (IPR&D), which were completed during 2019 and are now included within core-developed technology. Assumed intangible liabilities reflect the present value of the projected cash outflows for an existing contract where remaining costs are expected to exceed projected revenues. The disposal of intangible assets was related to the sale of our Latin America business. The net book value of these assets was $0.8 million at the disposal date. Refer to "Note 17: Sale of Business" for additional information on the transaction. Estimated future annual amortization (accretion) is as follows:
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Goodwill |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Excluding Non Goodwill Intangibles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill The following table reflects changes in the carrying amount of goodwill for the six months ended June 30, 2020:
We recognized a $3.0 million reduction in Device Solutions goodwill as part of our loss on sale of business. Refer to "Note 17: Sale of Business" for additional information on the transaction.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The components of our borrowings were as follows:
Credit Facility On October 18, 2019, we amended our credit facility that was initially entered on January 5, 2018 (together with the amendment, the "2018 credit facility"). The 2018 credit facility provides for committed credit facilities in the amount of $1.2 billion U.S. dollars. 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. The October 18, 2019 amendment extended the maturity date to October 18, 2024 and re-amortized the term loan based on the new balance as of the amendment date. The amendment also modified the required interest payments and made it based on total net leverage instead of total leverage. 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 0.15% to 0.25% and drawn amounts are subject to a margin ranging from 1.00% to 1.75%. Both the term loan and the revolver can be repaid without penalty. Amounts repaid on the term loan may not be reborrowed, and amounts borrowed under the revolver 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. 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. 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 June 30, 2020. 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 net 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 June 30, 2020, the interest rate for both the term loan and revolver was 1.68%, which includes the LIBOR rate plus a margin of 1.50%. On March 25, 2020, we drew $400 million in U.S. dollars under the revolving line of credit within the 2018 credit facility to increase our cash position and preserve future financial flexibility. At June 30, 2020, $400 million was outstanding under the revolver, and $45.5 million was utilized by outstanding standby letters of credit, resulting in $54.5 million available for additional borrowings or standby letters of credit. At June 30, 2020, no amounts were outstanding under the swingline sub-facility. Senior Notes On December 22, 2017 and January 19, 2018, we issued $300 million and $100 million of aggregate principal amount of 5.00% senior notes maturing January 15, 2026 (Senior 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 Senior Notes is payable semi-annually in arrears on January 15 and July 15. The $10 million interest payment due on July 15, 2020 was paid as of June 30, 2020. The Senior 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 Senior 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 Senior 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 Senior Notes with the net proceeds of certain equity offerings at 105.00% thereof to the date of redemption; provided that (i) at least 65% of the aggregate principal amount of Senior 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 is as follows:
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | 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: Shareholders' Equity" and "Note 14: Fair Values of Financial Instruments" 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 (and are classified as "Level 2" in the fair value hierarchy). 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:
The changes in accumulated other comprehensive income (loss) (AOCI), net of tax, for our derivative and nonderivative hedging instruments designated as hedging instruments, net of tax, were as follows:
Reclassification of amounts related to hedging instruments are included in interest expense in the Consolidated Statements of Operations for the periods ended June 30, 2020 and 2019. Included in the net unrealized gain (loss) on hedging instruments at June 30, 2020 and 2019 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 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:
Our derivative assets and liabilities subject to netting arrangements consist of foreign exchange forwards and options and interest rate contracts with six counterparties at June 30, 2020 and five counterparties at December 31, 2019. No derivative asset or liability balance with any of our counterparties was individually significant at June 30, 2020 or December 31, 2019. 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, and we have not 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 June 30, 2020, our LIBOR-based debt balance was $950.2 million. In October 2015, we entered into one interest rate swap, which was effective August 31, 2016 and expired on June 23, 2020, to convert $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 amortized to maturity at the same rate as required minimum payments on our term loan. The cash flow hedge was 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 were recorded as a component of other comprehensive income (loss) (OCI) and recognized in earnings when the hedged item affected earnings. The amounts paid or received on the hedge were recognized as adjustment to interest expense. In March 2020, we entered into an interest rate swap, which is effective from June 30, 2020 to June 30, 2023, and converts $240 million of our LIBOR-based debt from a floating LIBOR interest rate to a fixed interest rate of 0.617% (excluding the applicable margin). The notional balance will amortize to maturity at the same rate of originally required amortizations on our term loan. Changes in the fair value of the interest rate swap are recognized as a component of OCI and recognized in earnings when the hedged item affects earnings. The amounts paid or received on the hedge are recognized as adjustment to interest expense along with the earnings effect of the hedged item. The amount of net losses expected to be reclassified into earnings in the next 12 months is $1.0 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 expired 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%. The interest rate cap contracts did not include the effect of the applicable margin. Changes in the fair value of these instruments were recognized as a component of OCI and recognized in earnings when the hedged item affected earnings. The amounts received on the hedge were recognized as an adjustment to interest expense along with the earnings effect of the hedged item. In April 2018, we entered into one cross-currency swap, which converts $56.0 million of floating LIBOR-based U.S. dollar denominated debt into 1.38% fixed rate euro denominated debt. This cross-currency swap matures on April 30, 2021 and mitigates the risk associated with fluctuations in currency rates impacting cash flows related to U.S. dollar denominated debt in a euro functional currency entity. Changes in the fair value of the cross-currency swap are recognized as a component of OCI and are 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 along with the earnings effect of the hedged item. The amount of net gains expected to be reclassified into earnings in the next 12 months is $3.9 million. As a result of our forecasted inventory purchases in a non-functional currency, we are exposed to foreign exchange risk. We hedge portions of these purchases. During February 2020, we entered into foreign exchange option contracts for a total notional amount of $96 million at a cost of $1.2 million. The contracts will mature ratably through the year with final maturity in October 2020. Changes in the fair value of the option contracts are recognized as a component of OCI and are recognized in product cost of revenues when the hedged item affects earnings. The before-tax effects of our accounting for derivative instruments designated as hedges on AOCI were as follows:
Derivatives Not Designated as Hedging Relationships We are also exposed to foreign exchange risk when we enter into non-functional currency transactions, both intercompany and third party. At each period-end, non-functional currency monetary assets and liabilities are revalued with the change recognized within 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 June 30, 2020, a total of 50 contracts were offsetting our exposures from the euro, Canadian dollar, Chinese yuan, Mexican peso, Pound Sterling and various other currencies, with notional amounts ranging from $111,000 to $26.4 million. The effect of our derivative instruments not designated as hedges on the Consolidated Statements of Operations was as follows:
We will continue to monitor and assess our interest rate and foreign exchange risk and may institute additional derivative instruments to manage such risk in the future.
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Defined Benefit Pension Plans |
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans | Defined Benefit Pension PlansWe sponsor both funded and unfunded defined benefit pension plans offering death and disability, retirement, and special termination benefits for certain of our international employees, primarily in Germany, France, Indonesia, India, and Italy. The defined benefit obligation is calculated annually by using the projected unit credit method. The measurement date for the pension plans was December 31, 2019. Amounts recognized on the Consolidated Balance Sheets consist of:
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 cost for our plans include the following components:
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.
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation We grant stock-based compensation awards under the Second Amended and Restated 2010 Stock Incentive Plan (Stock Incentive Plan), including stock options, restricted stock units, phantom stock, and unrestricted stock units. In the Stock Incentive Plan, we have 12,623,538 shares of common stock reserved and authorized for issuance subject to stock splits, dividends, and other similar events and at June 30, 2020, 5,611,617 shares were available for grant. We issue new shares of common stock upon the exercise of stock options or when vesting conditions on restricted stock units are fully satisfied. These shares are subject to a fungible share provision such that the authorized share reserve is reduced by (i) one share for every one share subject to a stock option or share appreciation right granted under the Plan and (ii) 1.7 shares for every one share of common stock that was subject to an award other than an option or share appreciation right. We also periodically award phantom stock units, which are settled in cash upon vesting and accounted for as liability-based awards with no impact to the shares available for grant. In addition, we maintain the Employee Stock Purchase Plan (ESPP), for which 204,451 shares of common stock were available for future issuance at June 30, 2020. All other forms of stock grants, including Unrestricted stock, ESPP, and Phantom stock units were not significant for the three and six months ended June 30, 2020 and 2019. Stock-Based Compensation Expense Total stock-based compensation expense and the related tax benefit were as follows:
Stock Options A summary of our stock option activity is as follows:
At June 30, 2020, total unrecognized stock-based compensation expense related to nonvested stock options was $3.4 million, which is expected to be recognized over a weighted average period of approximately 2.2 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:
There were no employee stock options granted for the three months ended June 30, 2020, and the three and six months ended June 30, 2019. Restricted Stock Units The following table summarizes restricted stock unit activity:
(1) Shares released is presented gross of shares netted for employee payroll tax obligations. At June 30, 2020, total unrecognized compensation expense on restricted stock units was $38.0 million, which is expected to be recognized over a weighted average period of approximately 2.0 years. The weighted average assumptions used to estimate the fair value of performance-based restricted stock units granted with a service and market condition and the resulting weighted average fair value are as follows:
There were no performance-based restricted stock units granted for the three months ended June 30, 2020 and 2019.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | 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. Our tax rate for the three and six months ended June 30, 2020 of (8)% and (30)%, respectively, differed from the federal statutory rate of 21% primarily due to a significant loss recognized in the second quarter for the divestiture of the majority of our Latin American business activities. Refer to "Note 17: Sale of Business" for additional information on the transaction. This loss was recognized for tax as a discrete item and resulted in no tax benefit. Other rate drivers include losses in jurisdictions for which no benefit is recognized because of valuation allowances on deferred tax assets, the forecasted mix of earnings in domestic and international jurisdictions, a benefit related to excess stock-based compensation, and uncertain tax positions. Our tax rate for the three and six months ended June 30, 2019 of 30% and 42%, respectively, differed from the federal statutory rate of 21% primarily due to losses in jurisdictions for which no benefit is recognized because of 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. 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 amounts recognized were as follows:
Accrued interest and penalties recognized were as follows:
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:
At June 30, 2020, we are under examination by certain tax authorities. We believe we have appropriately accrued for the expected outcome of all tax matters and do not currently anticipate that the ultimate resolution of these examinations will have a material adverse effect on our financial condition, future results of operations, or cash flows. Based upon the timing and outcome of examinations, litigation, the impact of legislative, regulatory, and judicial developments, and the impact of these items on the statute of limitations, it is reasonably possible that the related unrecognized tax benefits could change from those recognized within the next twelve months. However, at this time, an estimate of the range of reasonably possible adjustments to the balance of unrecognized tax benefits cannot be made. We file income tax returns in various jurisdictions. The material jurisdictions where we are subject to examination include, among others, the United States, France, Germany, Italy, and the United Kingdom. On March 27, 2020, the U.S. Federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide economic relief from COVID-19. The CARES Act contains significant business tax provisions, which the Company has evaluated and determined will not have a material impact on the Company's financial statements or related disclosures. The CARES Act also provides employer payroll tax credits for wages paid to employees who are unable to work during the COVID-19 outbreak and options to defer payroll tax payments. The Company has elected to defer remittances of payroll and other taxes into the future as provided for under the Act, and may assess in subsequent quarters the impact and availability of payroll tax credits from the U.S. and similar programs provided for by foreign governments, as applicable.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | 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 our future performance, which usually covers the installation phase of a contract and may, on occasion, cover the operations and maintenance phase of outsourcing contracts. Our available lines of credit, outstanding standby LOCs, and bonds were as follows:
In the event any such standby LOC or bond is called, we would be obligated to reimburse the issuer of the standby LOC or bond; however, as of August 3, 2020, we do not believe that any outstanding LOC or bond will be called. We generally provide an indemnification related to the infringement of any patent, copyright, trademark, or other intellectual property right on software or equipment within our sales contracts, which indemnifies the customer from and pays the resulting costs, damages, and attorney's fees awarded against a customer with respect to such a claim provided that (a) the customer promptly notifies us in writing of the claim and (b) we have the sole control of the defense and all related settlement negotiations. We may also provide an indemnification to our customers for third-party claims resulting from damages caused by the negligence or willful misconduct of our employees/agents in connection with the performance of certain contracts. The terms of our indemnifications generally do not limit the maximum potential payments. It is not possible to predict the maximum potential amount of future payments under these or similar agreements. Legal Matters We are subject to various legal proceedings and claims of which the outcomes are subject to significant uncertainty. Our policy is to assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. A determination of the amount of the liability required, if any, for these contingencies is made after an analysis of each known issue. A liability would be recognized and charged to operating expense when we determine that a loss is probable and the amount can be reasonably estimated. Additionally, we disclose contingencies for which a material loss is reasonably possible, but not probable. Warranty A summary of the warranty accrual account activity is as follows:
Total warranty expense is classified within cost of revenues and consists of new product warranties issued, costs related to insurance and supplier recoveries, other changes and adjustments to warranties, and customer claims. Warranty expense was as follows:
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Restructuring Restructuring (Notes) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | 2018 Projects On February 22, 2018, our Board of Directors approved a restructuring plan (the 2018 Projects) to continue our efforts to optimize our global supply chain and manufacturing operations, research and development, and sales and marketing organizations. We expect to substantially complete expense recognition on 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. All prior restructuring plans are substantially complete and are not presented below. During the three months ended June 30, 2020 we reversed expense for employee severance costs and asset impairments we will no longer incur as a result of selling our business in Latin America. The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects were as follows:
The following table summarizes the activity within the restructuring related balance sheet accounts for the 2018 Projects during the six months ended June 30, 2020:
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. Restructuring expense is part of the Corporate unallocated segment and is not part of the operating segments. The current portion of restructuring liabilities was $15.6 million and $18.9 million as of June 30, 2020 and December 31, 2019. The current portion of restructuring liabilities is classified within other current liabilities on the Consolidated Balance Sheets. The long-term portion of restructuring liabilities balances was $29.1 million and $37.2 million as of June 30, 2020 and December 31, 2019. The long-term portion of restructuring liabilities is classified within other long-term obligations on the Consolidated Balance Sheets and includes severance accruals and facility exit costs.
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Shareholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2020 or December 31, 2019. Stock Repurchase Authorization On March 14, 2019, Itron's Board of Directors authorized the Company to repurchase up to $50 million of our common stock over a 12-month period (the 2019 Stock Repurchase Program). Following the announcement of the program and through December 31, 2019, we repurchased 529,396 shares at an average share price of $47.22 (including commissions) for a total of $25 million. The program expired on March 13, 2020 and no additional shares were repurchased during the quarter ended March 31, 2020. Other Comprehensive Income (Loss) The changes in the components of AOCI, net of tax, were as follows:
The before-tax, income tax (provision) benefit, and net-of-tax amounts related to each component of OCI were as follows:
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Fair Values of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments | The fair values at June 30, 2020 and December 31, 2019 do not reflect subsequent changes in the economy, interest rates, tax rates, and other variables that may affect the determination of fair value.
The following methods and assumptions were used in estimating fair values: Cash, cash equivalents, and restricted cash: Due to the liquid nature of these instruments, the carrying amount approximates fair value (Level 1). Credit Facility - term loan and multicurrency revolving line of credit: The term loan and revolver are not traded publicly. The fair values, which are determined based upon a hypothetical market participant, are calculated using a discounted cash flow model with Level 2 inputs, including estimates of incremental borrowing rates for debt with similar terms, maturities, and credit profiles. Refer to "Note 6: Debt" for a further discussion of our debt. Senior Notes: The Senior 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. Derivatives: See "Note 7: Derivative Financial Instruments" for a description of our methods and assumptions in determining the fair value of our derivatives, which were determined using Level 2 inputs. Each derivative asset and liability has a carrying value equal to fair value.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | We operate under the Itron brand worldwide and manage and report under three operating segments: Device Solutions, Networked Solutions, and Outcomes. We have three GAAP measures of segment performance: revenues, gross profit (gross margin), and operating income (operating margin). Intersegment revenues are minimal. Certain operating expenses are allocated to the operating segments based upon internally established allocation methodologies. Corporate operating expenses, interest income, interest expense, other income (expense), and the income tax provision (benefit) are neither allocated to the segments, nor are they included in the measure of segment performance. 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 Device Solutions – This segment primarily includes hardware products used for measurement, control, or sensing that do not have communications capability embedded for use with our broader Itron systems, i.e., hardware-based products not part of a complete "end-to-end" solution. Examples from the Device Solutions portfolio include: standard endpoints that are shipped without Itron communications, such as our standard gas meters, electricity IEC meters, and water meters, in addition to our heat and allocation products; communicating meters that are not a part of an Itron solution such as Smart Spec meters; and the implementation and installation of non-communicating devices, such as gas regulators. Networked Solutions – This segment primarily includes a combination of communicating devices (smart meters, modules, endpoints, and sensors), network infrastructure, and associated application software designed and sold as a complete solution for acquiring and transporting robust application-specific data. Networked Solutions combines the majority of the assets from the recently acquired SSNI organization with our legacy Itron networking products and software and the implementation and installation of communicating devices into one operating segment. Examples from the Networked Solutions portfolio include: communicating measurement, control, or sensing endpoints such as our Itron® and OpenWay® Riva meters, Itron traditional ERT® technology, Intelis smart gas or water meters, 500G gas communication modules, 500W water communication modules; GenX networking products, network modules and interface cards; and specific network control and management software applications. The IIoT solutions supported by this segment include automated meter reading (AMR), advanced metering infrastructure (AMI), smart grid and distribution automation (DA), and smart street lighting and smart city solutions. Outcomes – This segment primarily includes our value-added, enhanced software and services in which we manage, organize, analyze, and interpret data to improve decision making, maximize operational profitability, drive resource efficiency, and deliver results for consumers, utilities, and smart cities. Outcomes places an emphasis on delivering to Itron customers high-value, turn-key, digital experiences by leveraging the footprint of our Device Solutions and Networked Solutions segments. The revenues from these offerings are primarily recurring in nature and would include any direct management of Device Solutions, Networked Solutions, and other products on behalf of our end customers. Examples from the Outcomes portfolio include: our meter data management and analytics offerings; our managed service solutions including network-as-a-service and platform-as-a-service, forecasting software and services; and any consulting-based engagement. Within the Outcomes segment, we also identify new business models, including performance-based contracting, to drive broader portfolio offerings across utilities and cities. Revenues, gross profit, and operating income associated with our operating segments were as follows:
Our corporate unallocated operating loss for the three and six months ended June 30, 2020 includes a $56.9 million loss from the sale of our Latin American business. Refer to "Note 17: Sale of Business" for additional information on the transaction. For the three months ended June 30, 2020 and 2019, one customer represented 13% and 11% of total company revenues. For the six months ended June 30, 2020 and 2019, one customer represented 12% and 11% of total company revenues. We currently buy a majority of our integrated circuit board assemblies from three suppliers. Management believes that other suppliers could provide similar products, 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:
(1) On June 25, 2020, Itron closed on the sale of its Latin American operations. We will continue to sell into the region through an exclusive distributor. Depreciation expense is allocated to the operating segments based upon each segment's use of the assets. All amortization expense is recognized within Corporate unallocated. Depreciation and amortization of intangible assets expense associated with our operating segments was as follows:
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Revenue Recognition |
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Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | A summary of significant net changes in the contract assets and the contract liabilities balances during the period is as follows:
On January 1, 2020, total contract assets were $50.7 million and total contract liabilities were $138.9 million. On June 30, 2020, total contract assets were $49.6 million and total contract liabilities were $166.8 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 represents 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 $1.2 billion for the next twelve months and approximately $1.1 billion for periods longer than 12 months. The total remaining performance obligations consist of product and service components. The service component relates primarily to maintenance agreements for which customers pay a full year's maintenance in advance, and service revenues are 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 approach to align with the transfer of control of underlying contracts with customers. While amounts were capitalized, they are not material. Disaggregation of revenue Refer to "Note 15: Segment Information" and the Consolidated Statements 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 categories for products, which include hardware and software and services, are presented.
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Sale of Business |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Sale of Business | Latin America Divestiture On June 25, 2020, we closed on the sale of five subsidiaries comprising our manufacturing and sales operations in Latin America to buyers led by Instalación Profesional y Tecnologías del Centro S.A. de C.V., a Mexican company doing business as Accell in Brazil (Accell), through the execution of various definitive stock purchase agreements. The sale of these Latin America-based operations is part of our continued strategy to improve profitability and focus on growing our Networked Solutions and Outcomes businesses in Latin America and throughout the world. We retained the intellectual property rights to our products sold in Latin America. As part of the transaction, we entered into an intellectual property license agreement whereby Accell will pay a royalty on certain products manufactured by Accell using licensed Company intellectual property. In addition, Accell will serve as an exclusive distributor for our Device Solutions, Networked Solutions, and Outcomes products and services offerings in Latin America. Based on the sales price and the net assets of the five subsidiaries sold, we recognized an impairment loss of $56.9 million in the second quarter of 2020. The impairment was primarily due to the recognition of $52.1 million in foreign currency translation losses accumulated since the acquisition of these subsidiaries in 2006 and 2007, and allocated goodwill of $3.0 million. Accell assumed all recognized liabilities, as well as all future liabilities, of the subsidiaries. We have provided no indemnification for any future losses that may be incurred. The terms of the agreement allow for adjustments to the working capital amounts used in the calculation of the sales price and net assets written off for a period of 60 days following the close of the transaction. Of the total sales price, $2.5 million was received at closing, and the majority of the remaining portion is due by December 31, 2020. Included in the net assets sold was $6.1 million in cash. This resulted in net outflow of cash at closing of $3.6 million. The loss on sale of business was calculated as follows:
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |
Basis of Presentation | Financial Statement Preparation The 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, Consolidated Statements of Comprehensive Income (Loss), and Consolidated Statements of Equity for the three and six months ended June 30, 2020 and 2019, the Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019, and the Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019, 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 and six months ended June 30, 2020 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 partially or completely omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) regarding interim results. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2019 filed with the SEC in our Annual Report on Form 10-K on February 27, 2020 (2019 Annual Report). There have been no significant changes in financial statement preparation or significant accounting policies since December 31, 2019.
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Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Cash and cash equivalents that are contractually restricted from operating use are classified as restricted cash and cash equivalents.
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Accounts Receivable | Accounts Receivable, net Accounts receivable are recognized for invoices issued to customers in accordance with our contractual arrangements. Interest and late payment fees are minimal. Unbilled receivables are recognized when revenues are recognized upon product shipment or service delivery and invoicing occurs at a later date. We recognize an allowance for doubtful accounts representing our estimate of the expected losses in accounts receivable at the date of the balance sheet based on our historical experience of bad debts, our specific review of outstanding receivables, and our review of current and expected economic conditions. Accounts receivable are written-off against the allowance when we believe an account, or a portion thereof, is no longer collectible.
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New Accounting Pronouncements | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Subsequent to 2016-13 the FASB also issued codification improvements and transition relief in ASU 2019-04, ASU 2019-05, ASU 2019-11, ASU 2020-02, and ASU 2020-03, hereafter collectively referred to as Accounting Standards Codification (ASC) 326. ASC 326 replaces the incurred loss impairment methodology in previous GAAP with a methodology based on expected credit losses, which results in losses being recognized earlier. The estimate of expected credit losses uses a broader range of reasonable and supportable information. We adopted ASC 326 on January 1, 2020, and the impacts on our consolidated financial position, results of operations, and cash flows were immaterial. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which amended the disclosure requirements under ASC 820. This update clarifies and unifies the disclosure of Level 3 fair value instruments. We adopted this standard on January 1, 2020, and it did not materially impact our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which amends the disclosure requirements under ASC 715-20. This update clarifies annual disclosures for Defined Benefit Plans. We adopted this standard on January 1, 2020, and it did not materially impact our consolidated financial statements. Recent Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which modifies certain provisions of ASC 740, in an effort to reduce the complexity of accounting for income taxes. ASU 2019-12 is effective for us beginning with our interim financial reports for the first quarter of 2021. We are currently evaluating the effects and do not believe this standard will have a material impact on our consolidated financial position, results of operations, or cash flows. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. ASU 2020-04 applies to contracts that reference LIBOR or another reference rate expected to be terminated because of reference rate reform. An entity may elect certain optional expedients for hedging relationships that exist as of December 31, 2022, and maintain those optional expedients through the end of the hedging relationship. ASU 2020-04 can be adopted as of March 12, 2020. We do not currently have any contracts that have been changed to a new reference rate, but we will continue to evaluate our contracts and the effects of this standard on our consolidated financial position, results of operations, and cash flows prior to adoption.
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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share (EPS):
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Certain Balance Sheet Components (Tables) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net | A summary of accounts receivable from contracts with customers is as follows:
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Allowance for Credit Losses on Financing Receivables |
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Inventories |
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Property, Plant, and Equipment, Net |
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Depreciation Expense |
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Intangible Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets by Major Class | The gross carrying amount and accumulated amortization (accretion) of our intangible assets and liabilities, other than goodwill, were as follows:
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Summary of Intangible Asset Account Activity | A summary of intangible assets and liabilities activity is as follows:
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Schedule of Intangible Assets, Future Amortization Expense | Estimated future annual amortization (accretion) is as follows:
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Goodwill (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Excluding Non Goodwill Intangibles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table reflects changes in the carrying amount of goodwill for the six months ended June 30, 2020:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The components of our borrowings were as follows:
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Schedule of Maturities of Long-term Debt | The amount of required minimum principal payments on our long-term debt in aggregate over the next five years is as follows:
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Derivative Financial Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of our derivative instruments were as follows:
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Accumulated OCI for Derivative and Nonderivative Instruments Designated as Hedging Instruments, Net of Tax | The changes in accumulated other comprehensive income (loss) (AOCI), net of tax, for our derivative and nonderivative hedging instruments designated as hedging instruments, net of tax, were as follows:
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Offsetting Assets | 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:
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Offsetting Liabilities |
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Effect of Cash Flow Derivatives on the Balance Sheet and Income Statement, Before Tax | The before-tax effects of our accounting for derivative instruments designated as hedges on AOCI were as follows:
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Foreign Exchange Derivatives Not Designated As Hedging Instruments | The effect of our derivative instruments not designated as hedges on the Consolidated Statements of Operations was as follows:
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Defined Benefit Pension Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in the Consolidated Balance Sheets | Amounts recognized on the Consolidated Balance Sheets consist of:
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Schedule of Net Periodic Pension Benefit Costs | Net periodic pension benefit cost for our plans include the following components:
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Stock-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense and Related Tax Benefit | Total stock-based compensation expense and the related tax benefit were as follows:
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Employee Stock Options Activity | A summary of our stock option activity is as follows:
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Stock Options, Valuation Assumptions | The weighted average assumptions used to estimate the fair value of stock options granted and the resulting weighted average fair value are as follows:
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Restricted Stock Units Award Activity | The following table summarizes restricted stock unit activity:
(1) Shares released is presented gross of shares netted for employee payroll tax obligations.
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Restricted Stock Units, Valuation Assumptions | The weighted average assumptions used to estimate the fair value of performance-based restricted stock units granted with a service and market condition and the resulting weighted average fair value are as follows:
|
Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized Tax Benefits Related To Uncertain Tax Positions | The net interest and penalties expense amounts recognized were as follows:
Accrued interest and penalties recognized were as follows:
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:
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Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities | Our available lines of credit, outstanding standby LOCs, and bonds were as follows:
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Schedule of Warranty Accruals | A summary of the warranty accrual account activity is as follows:
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Warranty Expense | Warranty expense was as follows:
|
Restructuring (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Project [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity within the restructuring related balance sheet accounts for the 2018 Projects during the six months ended June 30, 2020:
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2018 Projects [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Project [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects were as follows:
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Shareholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Comprehensive Income (Loss) | The before-tax, income tax (provision) benefit, and net-of-tax amounts related to each component of OCI were as follows:
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Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the components of AOCI, net of tax, were as follows:
|
Fair Values of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values Of Financial Instruments by Balance Sheet Grouping | The fair values at June 30, 2020 and December 31, 2019 do not reflect subsequent changes in the economy, interest rates, tax rates, and other variables that may affect the determination of fair value.
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues Gross Profit And Operating Income By Segment | Revenues, gross profit, and operating income associated with our operating segments were as follows:
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Revenues By Region | Revenues by region were as follows:
(1) On June 25, 2020, Itron closed on the sale of its Latin American operations. We will continue to sell into the region through an exclusive distributor. Depreciation expense is allocated to the operating segments based upon each segment's use of the assets. All amortization expense is recognized within Corporate unallocated.
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Depreciation And Amortization Expense Associated With Segments | Depreciation and amortization of intangible assets expense associated with our operating segments was as follows:
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Revenue Recognition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability | A summary of significant net changes in the contract assets and the contract liabilities balances during the period is as follows:
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Sale of Business (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | The loss on sale of business was calculated as follows:
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Summary of Significant Accounting Policies (Details) |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Risks and uncertainties in entity's business | Risks and UncertaintiesThe COVID-19 pandemic has had global economic impacts including disrupting global supply chains and creating market volatility. The extent of the recent pandemic and its ongoing impact on our operations is volatile, but is being monitored closely by our management. We expect that certain of our customers’ projects and deployments may shift to later in 2020 and 2021. At this time, we have not identified any significant decrease in long-term customer demand for our products and services. Nonetheless, a prolonged pandemic could adversely impact the efficiency and effectiveness of our organization, further impact our global supply chain network, result in delays or decreases in customer collections, reduce demand for our products and services, and inhibit our sales efforts, any of which could further materially impact our revenues, results of operations, cash flows and financial condition. |
Summary of Significant Accounting Policies Cash, Cash Equivalent, and Restricted Cash (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 544,823 | $ 149,904 | $ 135,736 | |
Current restricted cash included in other current assets | 0 | 0 | 51 | |
Long-term restricted cash | 0 | 0 | 2,066 | |
Total cash, cash equivalents, and restricted cash | $ 544,823 | $ 149,904 | $ 137,853 | $ 122,328 |
Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Earnings Per Share [Abstract] | ||||
Net income (loss) available to common shareholders | $ (62,802) | $ 19,446 | $ (54,118) | $ 17,539 |
Weighted average common shares outstanding - Basic (in shares) | 40,216 | 39,389 | 40,130 | 39,523 |
Dilutive effect of stock-based awards (in shares) | 0 | 297 | 0 | 352 |
Weighted average common shares outstanding - Diluted (in shares) | 40,216 | 39,686 | 40,130 | 39,875 |
Earnings (loss) per common share - Basic (in dollars per share) | $ (1.56) | $ 0.49 | $ (1.35) | $ 0.44 |
Earnings (loss) per common share - Diluted (in dollars per share) | $ (1.56) | $ 0.49 | $ (1.35) | $ 0.44 |
Earnings Per Share Stock-based Awards (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Earnings Per Share [Abstract] | ||||
Stock-based awards excluded from diluted EPS calculation (antidilutive) (in shares) | 0.9 | 0.5 | 0.8 | 0.6 |
Certain Balance Sheet Components Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Trade receivables (net of allowance of $2,102 and $3,064) | $ 330,283 | $ 415,887 |
Unbilled receivables | 80,917 | 57,038 |
Total accounts receivable, net | $ 411,200 | $ 472,925 |
Certain Balance Sheet Components Summary of the Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||||
Beginning balance | $ 3,046 | $ 4,046 | $ 3,064 | $ 6,331 |
Provision for (release of) doubtful accounts, net | (171) | 365 | 339 | (1,738) |
Accounts written-off | (796) | (80) | (1,211) | (272) |
Effect of change in exchange rates | 23 | 29 | (90) | 39 |
Ending balance | $ 2,102 | $ 4,360 | $ 2,102 | $ 4,360 |
Certain Balance Sheet Components Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventory, Net [Abstract] | ||
Raw materials | $ 139,035 | $ 120,861 |
Work in process | 10,454 | 11,105 |
Finished goods | 77,075 | 95,930 |
Total inventories | $ 226,564 | $ 227,896 |
Certain Balance Sheet Components Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Property, Plant and Equipment, Net [Abstract] | ||
Machinery and equipment | $ 302,385 | $ 323,003 |
Computers and software | 111,774 | 109,924 |
Buildings, furniture, and improvements | 151,440 | 149,471 |
Land | 13,771 | 14,988 |
Construction in progress, including purchased equipment | 43,125 | 54,490 |
Total cost | 622,495 | 651,876 |
Accumulated depreciation | (406,176) | (418,648) |
Property, plant, and equipment, net | $ 216,319 | $ 233,228 |
Certain Balance Sheet Components Depreciation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 13,059 | $ 12,594 | $ 25,925 | $ 24,978 |
Summary of Intangible Asset Account Activity (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Total Intangible Assets [Abstract] | ||
Intangible Assets, gross beginning balance | $ 979,814 | $ 981,160 |
Intangibles disposed in sale of business | (18,140) | 0 |
Effect of change in exchange rates | (9,449) | 4,349 |
Intangible Assets, gross ending balance | 952,225 | 985,509 |
Intangible Liabilities, gross beginning balance | (23,900) | (23,900) |
Effect of change in exchange rates | 0 | 0 |
Intangible Liabilities, gross ending balance | $ (23,900) | $ (23,900) |
Intangible Assets and Liabilities Estimated Future Annual Amortization Expense (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Intangible Assets [Abstract] | ||
2020 (amount remaining at June 30, 2020) | $ 26,345 | |
2021 | 37,479 | |
2022 | 27,138 | |
2023 | 19,605 | |
2024 | 15,469 | |
Thereafter | 31,089 | |
Total intangible assets subject to amortization (accretion) | 157,125 | |
2020 (amount remaining at June 30, 2020) | (4,013) | |
2021 | (1,963) | |
2022 | (459) | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Intangible liabilities, Net | (6,435) | $ (10,450) |
2020 (amount remaining at June 30, 2020) | 22,332 | |
2021 | 35,516 | |
2022 | 26,679 | |
2023 | 19,605 | |
2024 | 15,469 | |
Thereafter | 31,089 | |
Total intangible assets (liabilities), net | $ 150,690 |
Schedule of Goodwill Allocated to Reporting Segments (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, net, at beginning of period | $ 1,103,907 |
Effect of change in exchange rates | 741 |
Goodwill, Ending Balance | 1,101,648 |
Goodwill allocated to business sold | (3,000) |
Device Solutions [Member] | |
Goodwill [Roll Forward] | |
Goodwill, net, at beginning of period | 54,930 |
Effect of change in exchange rates | 37 |
Goodwill, Ending Balance | 51,967 |
Goodwill allocated to business sold | (3,000) |
Networked Solutions Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill, net, at beginning of period | 908,088 |
Effect of change in exchange rates | 610 |
Goodwill, Ending Balance | 908,698 |
Goodwill allocated to business sold | 0 |
Outcomes Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill, net, at beginning of period | 140,889 |
Effect of change in exchange rates | 94 |
Goodwill, Ending Balance | 140,983 |
Goodwill allocated to business sold | $ 0 |
Schedule of Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Mar. 25, 2020 |
Dec. 31, 2019 |
Jan. 19, 2018 |
Dec. 22, 2017 |
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Senior notes | $ 100,000 | $ 300,000 | |||
Total debt | $ 1,350,156 | ||||
Current portion of debt | 14,063 | $ 0 | |||
Long-term debt, net | 1,320,004 | 932,482 | |||
2020 (amount remaining at June 30, 2020) | 0 | ||||
2021 | 32,422 | ||||
2022 | 44,063 | ||||
2023 | 44,063 | ||||
2024 | 829,608 | ||||
Thereafter | 400,000 | ||||
Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Total debt | 1,350,156 | 950,156 | |||
Current portion of debt | 14,063 | 0 | |||
Long-term debt, net | 1,320,004 | 932,482 | |||
USD Denominated Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
USD denominated term loan | 550,156 | 550,156 | |||
Unamortized prepaid debt fees | 3,232 | 3,661 | |||
Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Multicurrency revolving line of credit | 400,000 | $ 400,000 | 0 | ||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 400,000 | 400,000 | |||
Unamortized prepaid debt fees | $ 12,857 | $ 14,013 |
Activity of Hedging Instruments in Accumulated OCI (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Net unrealized loss on hedging instruments at January 1, | $ (204,672) | |||
Unrealized gain (loss) on derivative instruments | $ (2,196) | $ 787 | (1,914) | $ 998 |
Realized losses reclassified into net income (loss) | 807 | (2,421) | (242) | (2,497) |
Net unrealized loss on hedging instruments at June 30, | (167,827) | (167,827) | ||
Accumulated Net Gain (Loss) from Derivative and Nonderivative Instruments Designated as Hedging Instruments [Member] | ||||
Net unrealized loss on hedging instruments at January 1, | (15,103) | (13,179) | ||
Net unrealized loss on hedging instruments at June 30, | $ (17,259) | $ (14,678) | $ (17,259) | $ (14,678) |
Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total asset derivatives | $ 4,279 | $ 4,297 |
Derivative Financial Instruments Not Offset in the Consolidated Balance Sheets | (204) | (56) |
Cash Collateral Received Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | $ 4,075 | $ 4,241 |
Offsetting of Derivative Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Liability, Fair Value, Gross Liability | $ 2,316 | $ 162 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (204) | (56) |
Cash Collateral Pledged Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 2,112 | $ 106 |
Derivatives Not Designated as Hedging Relationships (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Other Income (Expense) [Member] | ||||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||||
Foreign exchange forward contracts | $ (904) | $ (121) | $ 589 | $ (912) |
Schedule of Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Defined Benefit Plan [Abstract] | ||
Plan assets in other long-term assets | $ 0 | $ 44 |
Current portion of pension benefit obligation in wages and benefits payable | 3,716 | 2,885 |
Long-term portion of pension benefit obligation | 99,184 | 98,712 |
Pension benefit obligation, net | $ 102,900 | $ 101,553 |
Schedule of Net Periodic Pension Benefit Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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Defined Benefit Plan [Abstract] | ||||
Service cost | $ 1,017 | $ 892 | $ 1,993 | $ 1,971 |
Interest cost | 457 | 573 | 930 | 1,155 |
Expected return on plan assets | (134) | (153) | (280) | (309) |
Amortization of prior service costs | 16 | 16 | 32 | 33 |
Amortization of actuarial net loss | 453 | 342 | 908 | 687 |
Net periodic benefit cost | $ 1,809 | $ 1,670 | $ 3,583 | $ 3,537 |
Stock-Based Compensation Expense and Related Tax Benefit (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options | $ 526 | $ 443 | $ 993 | $ 1,024 |
Restricted stock units | 6,367 | 5,977 | 14,176 | 12,444 |
Unrestricted stock awards | 206 | 158 | 412 | 315 |
Total stock-based compensation | 8,159 | 7,103 | 17,074 | 15,226 |
Related tax benefit | 1,420 | 1,275 | 3,187 | 2,718 |
Phantom Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Phantom stock units | $ 1,060 | $ 525 | $ 1,493 | $ 1,443 |
Stock Option Black Scholes Option Pricing Model Assumptions (Details) - Share-based Payment Arrangement, Option [Member] |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Expected volatility | 31.00% | 0.00% |
Risk-free interest rate | 1.40% | 0.00% |
Expected term (years) | 5 years 3 months 18 days |
Stock-Based Compensation Long-Term Performance Restricted Stock Unit Award Monte Carlo Pricing Model Assumptions (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, weighted average grant date fair value (in dollars per share) | $ 85.97 | $ 56.40 |
Long Term Performance Restricted Stock Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 37.60% | 31.30% |
Risk-free interest rate | 1.50% | 2.50% |
Expected term (years) | 1 year 9 months 18 days | 1 year 7 months 6 days |
Granted, weighted average grant date fair value (in dollars per share) | $ 94.28 | $ 60.91 |
Stock-Based Compensation Narrative (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
shares
| |
Share-based Payment Arrangement, Option [Member] | |
[Line Items] | |
Compensation cost not yet recognized | $ | $ 3.4 |
Unrecognized compensation expense, Expected weighted average period for recognition (years) | 2 years 2 months 12 days |
Restricted Stock Units (RSUs) [Member] | |
[Line Items] | |
Compensation cost not yet recognized | $ | $ 38.0 |
Unrecognized compensation expense, Expected weighted average period for recognition (years) | 2 years |
Employee Stock Purchase Plan [Member] | |
[Line Items] | |
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | 204,451 |
Stock Incentive Plan [Member] | |
[Line Items] | |
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 12,623,538 |
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | 5,611,617 |
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 |
Income Tax Contingencies (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Abstract] | |||||
Net interest and penalties expense | $ 312 | $ (42) | $ 620 | $ 259 | |
Accrued interest | 3,203 | 3,203 | $ 2,849 | ||
Accrued penalties | 1,746 | 1,746 | 1,681 | ||
Unrecognized tax benefits related to uncertain tax positions | 122,621 | 122,621 | 121,715 | ||
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate | $ 121,311 | $ 121,311 | $ 120,410 |
Income Taxes Narrative (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Income Tax Examination [Line Items] | ||||
Effective income tax rate reconciliation, percent | (8.00%) | 30.00% | (30.00%) | 42.00% |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 21.00% | ||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 21.00% |
Commitments and Contingencies Available Lines of Credit, Outstanding Standby Letter of Credits, and Bonds (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Mar. 25, 2020 |
Dec. 31, 2019 |
Oct. 18, 2019 |
---|---|---|---|---|
Line of Credit Facility [Line Items] | ||||
Multicurrency revolving line of credit | $ 500,000 | |||
Net available for additional standby LOCs under sub-facility | $ 54,542 | $ 258,928 | ||
Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Multicurrency revolving line of credit | 500,000 | 500,000 | ||
Long-term Line of Credit | (400,000) | 0 | ||
Letters of Credit Outstanding, Amount | (45,458) | (41,072) | ||
Unsecured Multicurrency Revolving Lines of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Multicurrency revolving line of credit | 99,782 | 107,206 | ||
Letters of Credit Outstanding, Amount | (23,440) | (25,100) | ||
Short-term borrowings | (134) | (173) | ||
Line of Credit Facility, Remaining Borrowing Capacity | 76,208 | 81,933 | ||
Surety Bond [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unsecured surety bonds in force | 160,860 | 136,004 | ||
Line of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Long-term Line of Credit | (400,000) | $ (400,000) | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 54,542 | $ 458,928 |
Commitments and Contingencies Warranty Account Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Beginning balance | $ 48,719 | $ 57,532 | $ 53,242 | $ 60,443 |
New product warranties | 1,000 | 538 | 2,070 | 2,257 |
Other changes/adjustments to warranties | 3,100 | 6,070 | 3,793 | 7,931 |
Claims activity | (8,365) | (7,434) | (14,305) | (13,517) |
Effect of change in exchange rates | 303 | 406 | (43) | (2) |
Ending balance | 44,757 | 57,112 | 44,757 | 57,112 |
Less: current portion of warranty | 33,039 | 38,987 | 33,039 | 38,987 |
Long-term warranty | $ 11,718 | $ 18,125 | $ 11,718 | $ 18,125 |
Commitments and Contingencies Warranty Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Total warranty expense | $ 4,130 | $ 6,187 | $ 5,893 | $ 7,966 |
Restructuring Restructuring Expected Costs - 2018 Projects (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | $ (2,683) | $ (6,169) | $ (2,931) | $ 1,093 | |
2018 Projects [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 91,910 | 91,910 | |||
Restructuring and Related Cost, Cost Incurred to Date | $ 87,395 | ||||
Restructuring | (2,931) | ||||
Restructuring and Related Cost, Expected Cost Remaining | 7,446 | 7,446 | |||
Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | (4,300) | ||||
Employee Severance [Member] | 2018 Projects [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 67,833 | 67,833 | |||
Restructuring and Related Cost, Cost Incurred to Date | 72,133 | ||||
Restructuring | (4,300) | ||||
Restructuring and Related Cost, Expected Cost Remaining | 0 | 0 | |||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | (1,146) | ||||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | 2018 Projects [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 2,696 | 2,696 | |||
Restructuring and Related Cost, Cost Incurred to Date | 3,842 | ||||
Restructuring | (1,146) | ||||
Restructuring and Related Cost, Expected Cost Remaining | 0 | 0 | |||
Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | 2,515 | ||||
Other Restructuring [Member] | 2018 Projects [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 21,381 | 21,381 | |||
Restructuring and Related Cost, Cost Incurred to Date | $ 11,420 | ||||
Restructuring | 2,515 | ||||
Restructuring and Related Cost, Expected Cost Remaining | $ 7,446 | $ 7,446 |
Restructuring Related Balance Sheet Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance, January 1, 2020 | $ 56,107 | |||
Costs charged to expense | $ (2,683) | $ (6,169) | (2,931) | $ 1,093 |
Cash (payments) receipts | (7,424) | |||
Net assets disposed and impaired | (1,166) | |||
Effect of change in exchange rates | 95 | |||
Ending balance, June 30, 2020 | 44,681 | 44,681 | ||
Accrued Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance, January 1, 2020 | 53,741 | |||
Costs charged to expense | (4,300) | |||
Cash (payments) receipts | (7,511) | |||
Net assets disposed and impaired | 0 | |||
Effect of change in exchange rates | (96) | |||
Ending balance, June 30, 2020 | 42,026 | 42,026 | ||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance, January 1, 2020 | 0 | |||
Costs charged to expense | (1,146) | |||
Cash (payments) receipts | 2,312 | |||
Net assets disposed and impaired | 1,166 | |||
Effect of change in exchange rates | 0 | |||
Ending balance, June 30, 2020 | 0 | 0 | ||
Other Accrued Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning balance, January 1, 2020 | 2,366 | |||
Costs charged to expense | 2,515 | |||
Cash (payments) receipts | (2,225) | |||
Net assets disposed and impaired | 0 | |||
Effect of change in exchange rates | 1 | |||
Ending balance, June 30, 2020 | $ 2,655 | $ 2,655 |
Restructuring Additional Information (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Restructuring and Related Activities [Abstract] | ||
Restructuring reserve, current | $ 15.6 | $ 18.9 |
Restructuring reserve, noncurrent | $ 29.1 | $ 37.2 |
Shareholders' Equity Preferred Stock (Details) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Equity [Abstract] | ||
Preferred stock, shares authorized (in share) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Shareholders' Equity Other Comprehensive Income (Loss) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Before-tax amount [Abstract] | |||||
Foreign currency translation adjustment | $ 10,685,000 | $ 5,352,000 | $ (15,908,000) | $ 3,098,000 | |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | (2,331,000) | 651,000 | (2,341,000) | 822,000 | |
Net hedging (gain) loss reclassified to net income | 832,000 | (2,610,000) | (291,000) | (2,874,000) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax | (457,000) | (378,000) | 81,000 | 720,000 | |
Net defined benefit plan (gain) loss reclassified to net income | 469,000 | (189,000) | 940,000 | (10,000) | |
Total other comprehensive income (loss), before tax | 61,286,000 | 3,582,000 | 34,569,000 | 1,756,000 | |
Tax (provision) benefit [Abstract] | |||||
Foreign currency translation adjustment | 625,000 | (165,000) | 1,773,000 | (297,000) | |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | 135,000 | 136,000 | 427,000 | 176,000 | |
Net hedging (gain) loss reclassified to net income | (25,000) | 189,000 | 49,000 | 377,000 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, Tax | 6,000 | 42,000 | 2,000 | (57,000) | |
Net defined benefit plan (gain) loss reclassified to net income | 29,000 | 36,000 | 25,000 | 1,000 | |
Total other comprehensive income (loss) tax benefit | (770,000) | (154,000) | (2,276,000) | (200,000) | |
Net-of-tax amount [Abstract] | |||||
Foreign currency translation adjustment | 11,310,000 | 5,187,000 | (14,135,000) | 2,801,000 | |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | (2,196,000) | 787,000 | (1,914,000) | 998,000 | |
Net hedging (gain) loss reclassified to net income | 807,000 | (2,421,000) | (242,000) | (2,497,000) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | (451,000) | (336,000) | 83,000 | 663,000 | |
Net defined benefit plan (gain) loss reclassified to net income | 498,000 | (153,000) | 965,000 | (9,000) | |
Total other comprehensive income (loss), net of tax | 62,056,000 | 3,736,000 | 36,845,000 | 1,956,000 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 62,056,000 | 3,736,000 | 36,845,000 | 1,956,000 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (167,827,000) | (167,827,000) | $ (204,672,000) | ||
OCI before reclassifications | (15,966,000) | 4,462,000 | |||
Foreign currency translation adjustment reclassified to net income on sale of business | 52,088,000 | 0 | 52,088,000 | 0 | |
Foreign currency translation adjustment reclassified to net income on sale of business | 0 | 0 | 0 | 0 | |
Foreign Currency Translation Adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
OCI before reclassifications | (14,135,000) | 2,801,000 | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
OCI before reclassifications | (1,914,000) | 998,000 | |||
Net Unrealized Gain (Loss) on Nonderivative Instruments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (14,400,000) | $ (14,400,000) | (14,400,000) | (14,400,000) | |
OCI before reclassifications | 0 | 0 | |||
Pension Benefit Obligation Adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
OCI before reclassifications | $ 83,000 | $ 663,000 |
Shareholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 795,495 | $ 800,815 | $ 732,031 | $ 734,048 | $ 800,815 | $ 734,048 |
OCI before reclassifications | (15,966) | 4,462 | ||||
Amounts reclassified from AOCI | 52,811 | (2,506) | ||||
Total other comprehensive income (loss), net of tax | 62,056 | (25,211) | 3,736 | (1,780) | 36,845 | 1,956 |
Ending balance | 802,869 | 795,495 | 746,599 | 732,031 | 802,869 | 746,599 |
Parent [Member] | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | 770,740 | 776,538 | 709,405 | 712,663 | 776,538 | 712,663 |
Total other comprehensive income (loss), net of tax | 62,056 | (25,211) | 3,736 | (1,780) | ||
Ending balance | 777,799 | 770,740 | 723,302 | 709,405 | 777,799 | 723,302 |
Foreign Currency Translation Adjustments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | (157,999) | (157,489) | (157,999) | (157,489) | ||
OCI before reclassifications | (14,135) | 2,801 | ||||
Amounts reclassified from AOCI | 52,088 | 0 | ||||
Total other comprehensive income (loss), net of tax | 37,953 | 2,801 | ||||
Ending balance | (120,046) | (154,688) | (120,046) | (154,688) | ||
Net Unrealized Gain (Loss) on Derivative Instruments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | (723) | 1,201 | (723) | 1,201 | ||
OCI before reclassifications | (1,914) | 998 | ||||
Amounts reclassified from AOCI | (242) | (2,497) | ||||
Total other comprehensive income (loss), net of tax | (2,156) | (1,499) | ||||
Ending balance | (2,879) | (298) | (2,879) | (298) | ||
Net Unrealized Gain (Loss) on Nonderivative Instruments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | (14,380) | (14,380) | (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 | ||||
Ending balance | (14,380) | (14,380) | (14,380) | (14,380) | ||
Pension Benefit Obligation Adjustments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | (31,570) | (25,637) | (31,570) | (25,637) | ||
OCI before reclassifications | 83 | 663 | ||||
Amounts reclassified from AOCI | 965 | (9) | ||||
Total other comprehensive income (loss), net of tax | 1,048 | 654 | ||||
Ending balance | (30,522) | (24,983) | (30,522) | (24,983) | ||
Accumulated Other Comprehensive Income (Loss) | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ (204,672) | $ (196,305) | (204,672) | (196,305) | ||
Ending balance | $ (167,827) | $ (194,349) | $ (167,827) | $ (194,349) |
Shareholders' Equity Stock Repurchase Authorization (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2019 |
Mar. 14, 2019 |
|
Stock Repurchase Authorization [Abstract] | ||||
Stock repurchase program, authorized amount | $ 50,000 | |||
Stock repurchased during period (in shares) | 529,396 | |||
Stock repurchased, average cost per share (in dollars per share) | $ 47.22 | |||
Stock repurchased during period, value | $ 17,186 | $ 7,814 | $ 25,000 |
Schedule of Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Mar. 25, 2020 |
Dec. 31, 2019 |
Jan. 19, 2018 |
Dec. 22, 2017 |
---|---|---|---|---|---|
Liabilities | |||||
Senior notes | $ 100,000 | $ 300,000 | |||
USD Denominated Term Loan [Member] | |||||
Liabilities | |||||
USD denominated term loan | $ 550,156 | $ 550,156 | |||
Line of Credit [Member] | |||||
Liabilities | |||||
Multicurrency revolving line of credit | 400,000 | $ 400,000 | 0 | ||
Reported Value Measurement [Member] | |||||
Liabilities | |||||
Senior notes | 387,143 | 385,987 | |||
Reported Value Measurement [Member] | USD Denominated Term Loan [Member] | |||||
Liabilities | |||||
USD denominated term loan | 546,924 | 546,495 | |||
Reported Value Measurement [Member] | Line of Credit [Member] | |||||
Liabilities | |||||
Multicurrency revolving line of credit | 400,000 | 0 | |||
Estimate of Fair Value Measurement [Member] | |||||
Liabilities | |||||
Senior notes | 398,500 | 416,500 | |||
Estimate of Fair Value Measurement [Member] | USD Denominated Term Loan [Member] | |||||
Liabilities | |||||
USD denominated term loan, fair value | 532,090 | 550,135 | |||
Estimate of Fair Value Measurement [Member] | Line of Credit [Member] | |||||
Liabilities | |||||
Multicurrency revolving line of credit, fair value | $ 385,272 | $ 0 |
Segment Information Narrative (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Revenue, Major Customer [Line Items] | ||||
Number of reportable segments | 3 | |||
Concentration risk, supplier | We currently buy a majority of our integrated circuit board assemblies from three suppliers. Management believes that other suppliers could provide similar products, but a change in suppliers, disputes with our suppliers, or unexpected constraints on the suppliers' production capacity could adversely affect operating results. | |||
Sales [Member] | Customer A [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration Risk, Percentage | 13.00% | 11.00% | 12.00% | 11.00% |
Information By Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Segment Reporting Information [Line Items] | ||||
Revenues | $ 509,594 | $ 635,037 | $ 1,108,009 | $ 1,249,613 |
Gross profit | 138,517 | 191,214 | 310,083 | 378,477 |
Operating income (loss) | (45,387) | 43,558 | (19,017) | 64,381 |
Total other income (expense) | (12,299) | (15,022) | (21,957) | (29,873) |
Income (loss) before income taxes | (57,686) | 28,536 | (40,974) | 34,508 |
Device Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 129,165 | 217,723 | 331,444 | 439,478 |
Gross profit | 11,948 | 41,590 | 44,315 | 81,506 |
Operating income (loss) | (1,120) | 28,355 | 17,078 | 53,812 |
Networked Solutions Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 324,480 | 355,916 | 665,325 | 692,343 |
Gross profit | 108,323 | 126,243 | 230,073 | 253,311 |
Operating income (loss) | 77,382 | 98,035 | 166,062 | 193,357 |
Outcomes Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 55,949 | 61,398 | 111,240 | 117,792 |
Gross profit | 18,246 | 23,381 | 35,695 | 43,660 |
Operating income (loss) | 9,226 | 14,367 | 17,424 | 24,777 |
Corporate Unallocated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (130,875) | (97,199) | (219,581) | (207,565) |
Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 438,985 | 566,047 | 967,122 | 1,110,897 |
Product [Member] | Device Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 126,950 | 214,589 | 327,118 | 433,158 |
Product [Member] | Networked Solutions Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 300,351 | 333,422 | 615,788 | 647,772 |
Product [Member] | Outcomes Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 11,684 | 18,036 | 24,216 | 29,967 |
Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 70,609 | 68,990 | 140,887 | 138,716 |
Service [Member] | Device Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,215 | 3,134 | 4,326 | 6,320 |
Service [Member] | Networked Solutions Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 24,129 | 22,494 | 49,537 | 44,571 |
Service [Member] | Outcomes Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 44,265 | $ 43,362 | $ 87,024 | $ 87,825 |
Segment Information Revenues By Region (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Revenues from External Customers [Line Items] | ||||
Revenues | $ 509,594 | $ 635,037 | $ 1,108,009 | $ 1,249,613 |
United States and Canada [Member] | ||||
Revenues from External Customers [Line Items] | ||||
Revenues | 369,862 | 417,909 | 755,187 | 815,475 |
Europe, Middle East, and Africa [Member] | ||||
Revenues from External Customers [Line Items] | ||||
Revenues | 107,799 | 167,314 | 274,783 | 338,556 |
Other [Member] | ||||
Revenues from External Customers [Line Items] | ||||
Revenues | $ 31,933 | $ 49,814 | $ 78,039 | $ 95,582 |
Depreciation and Amortization, by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 24,199 | $ 28,641 | $ 48,230 | $ 57,068 |
Device Solutions [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | 6,062 | 6,346 | 12,497 | 12,782 |
Networked Solutions Segment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | 4,333 | 3,205 | 8,070 | 6,453 |
Outcomes Segment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | 1,412 | 1,285 | 2,805 | 2,587 |
Corporate Unallocated [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 12,392 | $ 17,805 | $ 24,858 | $ 35,246 |
Revenue Recognition Revenue Contract Assets and Liabilities Rollforward (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Revenue Recognition and Deferred Revenue [Abstract] | |
Beginning balance, January 1, 2020 | $ 88,215 |
Revenues recognized from beginning contract liability | (71,859) |
Increases due to amounts collected or due | 181,878 |
Revenues recognized from current period increases | (75,447) |
Other | (5,629) |
Ending balance, June 30, 2020 | $ 117,158 |
Revenue Recognition Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract with customer, asset, gross | $ 49.6 | $ 50.7 |
Contract with customer, liability | $ 166.8 | $ 138.9 |
Revenue Recognition Remaing Performance Obligation (Details) $ in Millions |
Jun. 30, 2020
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,100 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,200 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years |
Sale of Business - Narrative (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 25, 2020
USD ($)
numberOfSubsidiaries
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Currency translation adjustment loss | $ 52,088,000 | $ 0 | $ 52,088,000 | $ 0 | |
Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of subsidiaries sold | numberOfSubsidiaries | 5 | ||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 56,900,000 | ||||
Currency translation adjustment loss | (52,088,000) | ||||
Goodwill allocated | $ 3,000,000 | ||||
Sales price and net assets write off period | 60 days | ||||
Portion of sales price received on closing | $ 2,500,000 | ||||
Cash included in net assets sold | 6,100,000 | ||||
Cash outflow at closing | $ 3,600,000 |
Sale of Business - Loss on Sale of Business (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 25, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Currency translation adjustment loss | $ 52,088,000 | $ 0 | $ 52,088,000 | $ 0 | |
Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sales price | $ 35,008,000 | ||||
Net assets sold (including working capital) | (36,002,000) | ||||
Currency translation adjustment loss | (52,088,000) | ||||
Goodwill allocated | (3,000,000) | ||||
Legal fees | (833,000) | ||||
Total loss on sale of business | $ (56,915,000) |
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