ANNUAL 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 | |||||||||||
PART I | |||||||||||
Item 1: | Business | ||||||||||
Item 1A: | Risk Factors | ||||||||||
Item 1B: | Unresolved Staff Comments | ||||||||||
Item 2: | Properties | ||||||||||
Item 3: | |||||||||||
Item 4: | |||||||||||
PART II | |||||||||||
Item 5: | |||||||||||
Item 6: | |||||||||||
Item 7: | |||||||||||
Item 7A: | Quantitative and Qualitative Disclosures About Market Risk | ||||||||||
Item 8: | |||||||||||
Item 9: | |||||||||||
Item 9A: | |||||||||||
Item 9B: | |||||||||||
PART III | |||||||||||
Item 10: | |||||||||||
Item 11: | |||||||||||
Item 12: | |||||||||||
Item 13: | |||||||||||
Item 14: | |||||||||||
PART IV | |||||||||||
Item 15: | |||||||||||
Year Ended | Total Bookings | Total Backlog | 12-Month Backlog | |||||||||||||||||
In millions | ||||||||||||||||||||
December 31, 2020 | $ | 2,213 | $ | 3,259 | $ | 1,204 | ||||||||||||||
December 31, 2019 | 2,551 | 3,207 | 1,499 | |||||||||||||||||
December 31, 2018 | 2,515 | 3,173 | 1,349 |
As of December 31, 2020 | ||||||||||||||||||||||||||
Region | Male | Female | Total Number of Employees | Percentage of Total Employees | ||||||||||||||||||||||
North America | 1,933 | 874 | 2,807 | 45 | % | |||||||||||||||||||||
Europe, Middle East and Africa | 1,473 | 777 | 2,250 | 37 | % | |||||||||||||||||||||
Asia Pacific & Other | 901 | 195 | 1,096 | 18 | % | |||||||||||||||||||||
Total (1) | 4,307 | 1,846 | 6,153 |
Name | Age | Position | ||||||||||||
Thomas L. Deitrich | 54 | President and Chief Executive Officer | ||||||||||||
Joan S. Hooper | 63 | Senior Vice President and Chief Financial Officer | ||||||||||||
Michel C. Cadieux | 63 | Senior Vice President, Human Resources | ||||||||||||
Sarah E. Hlavinka | 56 | Senior Vice President, General Counsel and Corporate Secretary | ||||||||||||
Justin K. Patrick | 48 | Senior Vice President, Device Solutions | ||||||||||||
John F. Marcolini | 48 | Senior Vice President, Networked Solutions | ||||||||||||
Donald L. Reeves | 53 | Senior Vice President, Outcomes |
• incur more debt; | • pay dividends, make distributions, and repurchase capital stock; | |||||||
• make certain investments; | • create liens; | |||||||
• enter into transactions with affiliates; | • enter into sale lease-back transactions; and | |||||||
• merge or consolidate; | • transfer or sell assets. |
Region | Location | ||||
North America | Oconee, SC (O) Waseca, MN (L) | ||||
Europe, Middle East, and Africa | Chasseneuil, France (O) Macon, France (O) Massy, France (L) Karlsruhe, Germany (O) Oldenburg, Germany (O) Godollo, Hungary (O) Asti, Italy (O) | ||||
Asia/Pacific | Bekasi, Indonesia (O) |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||||
October 1, 2020 through October 31, 2020 | — | $ | — | — | $ | — | ||||||||||||||||||||
November 1, 2020 through November 30, 2020 | 4,409 | 73.72 | — | — | ||||||||||||||||||||||
December 1, 2020 through December 31, 2020 | 3,222 | 84.20 | — | — | ||||||||||||||||||||||
Total | 7,631 | — |
Year Ended December 31, | |||||||||||||||||
In thousands, except margin and per share data | 2020 | % Change | 2019 | ||||||||||||||
GAAP | |||||||||||||||||
Revenues | |||||||||||||||||
Product revenues | $ | 1,889,173 | (15)% | $ | 2,220,395 | ||||||||||||
Service revenues | 284,177 | 1% | 282,075 | ||||||||||||||
Total revenues | 2,173,350 | (13)% | 2,502,470 | ||||||||||||||
Gross profit | 602,167 | (20)% | 752,319 | ||||||||||||||
Operating expenses | 612,562 | (1)% | 619,636 | ||||||||||||||
Operating income (loss) | (10,395) | NM | 132,683 | ||||||||||||||
Other income (expense) | (46,244) | (22)% | (59,651) | ||||||||||||||
Income tax benefit (provision) | (238) | NM | (20,617) | ||||||||||||||
Net income (loss) attributable to Itron, Inc. | (57,955) | NM | 49,006 | ||||||||||||||
Non-GAAP(1) | |||||||||||||||||
Non-GAAP operating expenses | $ | 470,028 | (10)% | $ | 519,954 | ||||||||||||
Non-GAAP operating income | 132,139 | (43)% | 232,365 | ||||||||||||||
Non-GAAP net income attributable to Itron, Inc. | 75,253 | (43)% | 132,795 | ||||||||||||||
Adjusted EBITDA | 178,399 | (34)% | 270,023 | ||||||||||||||
GAAP Margins and EPS | |||||||||||||||||
Gross margin | |||||||||||||||||
Product gross margin | 25.4 | % | 28.5 | % | |||||||||||||
Service gross margin | 42.8 | % | 42.4 | % | |||||||||||||
Total gross margin | 27.7 | % | 30.1 | % | |||||||||||||
Operating margin | (0.5) | % | 5.3 | % | |||||||||||||
Net income (loss) per common share - Basic | $ | (1.44) | $ | 1.24 | |||||||||||||
Net income (loss) per common share - Diluted | $ | (1.44) | $ | 1.23 | |||||||||||||
Non-GAAP EPS (1) | |||||||||||||||||
Non-GAAP diluted EPS | $ | 1.85 | $ | 3.32 | |||||||||||||
Year Ended December 31, | |||||||||||||||||
Units in thousands | 2020 | 2019 | 2018 | ||||||||||||||
Endpoints Under Management | 74,184 | 64,719 | 47,755 |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | |||||||||||||||||||||||||||
Total Company | |||||||||||||||||||||||||||||
Revenues | $ | 2,173,350 | $ | 2,502,470 | $ | (3,384) | $ | (325,736) | $ | (329,120) | |||||||||||||||||||
Gross profit | 602,167 | 752,319 | (219) | (149,933) | (150,152) | ||||||||||||||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | |||||||||||||||||||||||||||
Total Company | |||||||||||||||||||||||||||||
Sales, general and administrative | $ | 276,920 | $ | 346,872 | $ | 1,466 | $ | (71,418) | $ | (69,952) | |||||||||||||||||||
Research and development | 194,101 | 202,200 | 569 | (8,668) | (8,099) | ||||||||||||||||||||||||
Amortization of intangible assets | 44,711 | 64,286 | 46 | (19,621) | (19,575) | ||||||||||||||||||||||||
Restructuring | 37,013 | 6,278 | (154) | 30,889 | 30,735 | ||||||||||||||||||||||||
Loss on sale of business | 59,817 | — | — | 59,817 | 59,817 | ||||||||||||||||||||||||
Total Operating expenses | $ | 612,562 | $ | 619,636 | $ | 1,927 | $ | (9,001) | $ | (7,074) | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | % Change | 2019 | ||||||||||||||
Interest income | $ | 2,998 | 62% | $ | 1,849 | ||||||||||||
Interest expense | (39,871) | (15)% | (46,822) | ||||||||||||||
Amortization of prepaid debt fees | (4,130) | (27)% | (5,631) | ||||||||||||||
Other income (expense), net | (5,241) | (42)% | (9,047) | ||||||||||||||
Total other income (expense) | $ | (46,244) | (22)% | $ | (59,651) |
Year Ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | % Change | 2019 | ||||||||||||||||||||
Segment revenues | |||||||||||||||||||||||
Device Solutions | $ | 693,995 | (19)% | $ | 858,881 | ||||||||||||||||||
Networked Solutions | 1,249,402 | (12)% | 1,417,254 | ||||||||||||||||||||
Outcomes | 229,953 | 2% | 226,335 | ||||||||||||||||||||
Total revenues | $ | 2,173,350 | (13)% | $ | 2,502,470 | ||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
In thousands | Gross Profit | Gross Margin | Gross Profit | Gross Margin | |||||||||||||||||||
Segment gross profit and margin | |||||||||||||||||||||||
Device Solutions | $ | 86,859 | 12.5% | $ | 152,562 | 17.8% | |||||||||||||||||
Networked Solutions | 432,906 | 34.6% | 518,749 | 36.6% | |||||||||||||||||||
Outcomes | 82,402 | 35.8% | 81,008 | 35.8% | |||||||||||||||||||
Total gross profit and margin | $ | 602,167 | 27.7% | $ | 752,319 | 30.1% | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
In thousands | 2020 | % Change | 2019 | ||||||||||||||||||||
Segment operating expenses | |||||||||||||||||||||||
Device Solutions | $ | 46,090 | (16)% | $ | 54,809 | ||||||||||||||||||
Networked Solutions | 124,807 | 3% | 121,424 | ||||||||||||||||||||
Outcomes | 34,783 | (7)% | 37,205 | ||||||||||||||||||||
Corporate unallocated | 406,882 | —% | 406,198 | ||||||||||||||||||||
Total operating expenses | $ | 612,562 | (1)% | $ | 619,636 | ||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
In thousands | Operating Income (Loss) | Operating Margin | Operating Income (Loss) | Operating Margin | |||||||||||||||||||
Segment operating income (loss) and operating margin | |||||||||||||||||||||||
Device Solutions | $ | 40,769 | 5.9% | $ | 97,753 | 11.4% | |||||||||||||||||
Networked Solutions | 308,099 | 24.7% | 397,325 | 28.0% | |||||||||||||||||||
Outcomes | 47,619 | 20.7% | 43,803 | 19.4% | |||||||||||||||||||
Corporate unallocated | (406,882) | NM | (406,198) | NM | |||||||||||||||||||
Total operating income (loss) and operating margin | $ | (10,395) | (0.5)% | $ | 132,683 | 5.3% |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | |||||||||||||||||||||||||||
Device Solutions Segment | |||||||||||||||||||||||||||||
Revenues | $ | 693,995 | $ | 858,881 | $ | (3,880) | $ | (161,006) | $ | (164,886) | |||||||||||||||||||
Gross profit | 86,859 | 152,562 | (2,040) | (63,663) | (65,703) | ||||||||||||||||||||||||
Operating expenses | 46,090 | 54,809 | 169 | (8,888) | (8,719) | ||||||||||||||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | |||||||||||||||||||||||||||
Networked Solutions Segment | |||||||||||||||||||||||||||||
Revenues | $ | 1,249,402 | $ | 1,417,254 | $ | 455 | $ | (168,307) | $ | (167,852) | |||||||||||||||||||
Gross profit | 432,906 | 518,749 | 1,709 | (87,552) | (85,843) | ||||||||||||||||||||||||
Operating expenses | 124,807 | 121,424 | 69 | 3,314 | 3,383 | ||||||||||||||||||||||||
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
In thousands | 2020 | 2019 | |||||||||||||||||||||||||||
Outcomes Segment | |||||||||||||||||||||||||||||
Revenues | $ | 229,953 | $ | 226,335 | $ | 40 | $ | 3,578 | $ | 3,618 | |||||||||||||||||||
Gross profit | 82,402 | 81,008 | 109 | 1,285 | 1,394 | ||||||||||||||||||||||||
Operating expenses | 34,783 | 37,205 | 18 | (2,440) | (2,422) | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Cash provided by operating activities | $ | 109,514 | $ | 172,840 | $ | 109,755 | |||||||||||
Cash used in investing activities | (41,036) | (48,180) | (862,658) | ||||||||||||||
Cash provided by (used in) financing activities | (11,576) | (97,519) | 395,821 | ||||||||||||||
Effect of exchange rates on cash, cash equivalents, and restricted cash | 127 | 435 | (7,925) | ||||||||||||||
Increase (decrease) in cash, cash equivalents, and restricted cash | $ | 57,029 | $ | 27,576 | $ | (365,007) |
Year Ended December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Cash provided by operating activities | $ | 109,514 | $ | 172,840 | |||||||
Acquisitions of property, plant, and equipment | (46,208) | (60,749) | |||||||||
Free cash flow | $ | 63,306 | $ | 112,091 |
In thousands | Next 12 months | Beyond the next 12 months | ||||||||||||
Warranty obligations | $ | 28,329 | $ | 13,061 | ||||||||||
Estimated pension benefit payments | 3,995 | 119,457 |
Year Ended December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
U.S. federal taxes paid (refunded) | $ | (6,816) | $ | 184 | |||||||
State income taxes paid | 914 | 1,664 | |||||||||
Foreign and local income taxes paid | 8,590 | 10,193 | |||||||||
Total income taxes paid | $ | 2,688 | $ | 12,041 |
TOTAL COMPANY RECONCILIATIONS | Year Ended December 31, | ||||||||||||||||
In thousands, except per share data | 2020 | 2019 | |||||||||||||||
NON-GAAP OPERATING EXPENSES | |||||||||||||||||
GAAP operating expenses | $ | 612,562 | $ | 619,636 | |||||||||||||
Amortization of intangible assets | (44,711) | (64,286) | |||||||||||||||
Restructuring | (37,013) | (6,278) | |||||||||||||||
Loss on sale of business | (59,817) | — | |||||||||||||||
Corporate transition cost | 33 | (2,520) | |||||||||||||||
Acquisition and integration related expense | (1,026) | (26,598) | |||||||||||||||
Non-GAAP operating expenses | $ | 470,028 | $ | 519,954 | |||||||||||||
NON-GAAP OPERATING INCOME | |||||||||||||||||
GAAP operating income (loss) | $ | (10,395) | $ | 132,683 | |||||||||||||
Amortization of intangible assets | 44,711 | 64,286 | |||||||||||||||
Restructuring | 37,013 | 6,278 | |||||||||||||||
Loss on sale of business | 59,817 | — | |||||||||||||||
Corporate transition cost | (33) | 2,520 | |||||||||||||||
Acquisition and integration related expense | 1,026 | 26,598 | |||||||||||||||
Non-GAAP operating income | $ | 132,139 | $ | 232,365 | |||||||||||||
NON-GAAP NET INCOME & DILUTED EPS | |||||||||||||||||
GAAP net income (loss) attributable to Itron, Inc. | $ | (57,955) | $ | 49,006 | |||||||||||||
Amortization of intangible assets | 44,711 | 64,286 | |||||||||||||||
Amortization of debt placement fees | 3,954 | 5,455 | |||||||||||||||
Restructuring | 37,013 | 6,278 | |||||||||||||||
Loss on sale of business | 59,817 | — | |||||||||||||||
Corporate transition cost | (33) | 2,520 | |||||||||||||||
Acquisition and integration related expense | 1,026 | 26,598 | |||||||||||||||
Income tax effect of non-GAAP adjustments (1) | (13,280) | (21,348) | |||||||||||||||
Non-GAAP net income attributable to Itron, Inc. | $ | 75,253 | $ | 132,795 | |||||||||||||
Non-GAAP diluted EPS | $ | 1.85 | $ | 3.32 | |||||||||||||
Weighted average common shares outstanding - Diluted | 40,571 | 39,980 | |||||||||||||||
ADJUSTED EBITDA | |||||||||||||||||
GAAP net income (loss) attributable to Itron, Inc. | $ | (57,955) | $ | 49,006 | |||||||||||||
Interest income | (2,998) | (1,849) | |||||||||||||||
Interest expense | 44,001 | 52,453 | |||||||||||||||
Income tax (benefit) provision | 238 | 20,617 | |||||||||||||||
Depreciation and amortization | 97,290 | 114,400 | |||||||||||||||
Restructuring | 37,013 | 6,278 | |||||||||||||||
Loss on sale of business | 59,817 | — | |||||||||||||||
Corporate transition cost | (33) | 2,520 | |||||||||||||||
Acquisition and integration related expense | 1,026 | 26,598 | |||||||||||||||
Adjusted EBITDA | $ | 178,399 | $ | 270,023 | |||||||||||||
FREE CASH FLOW | |||||||||||||||||
Net cash provided by operating activities | $ | 109,514 | $ | 172,840 | |||||||||||||
Acquisitions of property, plant, and equipment | (46,208) | (60,749) | |||||||||||||||
Free Cash Flow | $ | 63,306 | $ | 112,091 |
In thousands | 2021 | 2022 | 2023 | 2024 | 2025 | Total | Fair Value | |||||||||||||||||||||||||||||||||||||
Variable Rate Debt | ||||||||||||||||||||||||||||||||||||||||||||
Principal: U.S. dollar term loan | $ | 18,359 | $ | 44,063 | $ | 44,063 | $ | 429,609 | $ | — | $ | 536,094 | $ | 520,347 | ||||||||||||||||||||||||||||||
Weighted average interest rate | 1.62 | % | 1.67 | % | 1.84 | % | 2.09 | % | — | % | ||||||||||||||||||||||||||||||||||
Principal: Multicurrency revolving line of credit | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||
Weighted average interest rate | 1.62 | % | 1.67 | % | 1.84 | % | 2.09 | % | — | % | ||||||||||||||||||||||||||||||||||
Interest rate swap | $ | (1,982) | ||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate (pay) Fixed | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||||||||||||||||||||||||||||||||
Weighted average interest rate (receive) Floating LIBOR | 0.12 | % | 0.17 | % | 0.30 | % | ||||||||||||||||||||||||||||||||||||||
Cross currency swap | $ | (526) | ||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate (pay) Fixed - EURIBOR | 1.38 | % | ||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate (receive) Floating - LIBOR | 0.13 | % |
Year Ended December 31, | |||||||||||||||||
In thousands, except per share data | 2020 | 2019 | 2018 | ||||||||||||||
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 benefit (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 |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
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 | December 31, 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, 2018 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting change (ASU 2014-09 and ASU 2016-09) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||
Stock issues and repurchases: | |||||||||||||||||||||||||||||||||||||||||
Options exercised | |||||||||||||||||||||||||||||||||||||||||
Restricted stock awards released | |||||||||||||||||||||||||||||||||||||||||
Issuance of stock-based compensation awards | |||||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||
Registration fee | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
SSNI acquisition adjustments, net | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2018 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||
Stock issues and repurchases: | |||||||||||||||||||||||||||||||||||||||||
Options exercised | |||||||||||||||||||||||||||||||||||||||||
Restricted stock awards released net of repurchased shares for taxes | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Issuance of stock-based compensation awards | |||||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||
Stock repurchased | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||
Stock issues and repurchases: | |||||||||||||||||||||||||||||||||||||||||
Options exercised | |||||||||||||||||||||||||||||||||||||||||
Restricted stock awards released net of repurchased shares for taxes | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Issuance of stock-based compensation awards | |||||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | $ | ( | $ | ( | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Operating activities | |||||||||||||||||
Net income (loss) | $ | ( | $ | $ | ( | ||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization of intangible assets | |||||||||||||||||
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, net of acquisitions: | |||||||||||||||||
Accounts receivable | ( | ||||||||||||||||
Inventories | ( | ( | |||||||||||||||
Other current assets | ( | ( | ( | ||||||||||||||
Other long-term assets | ( | ||||||||||||||||
Accounts payables, 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 proceeds related to the sale of business | |||||||||||||||||
Acquisitions of property, plant, and equipment | ( | ( | ( | ||||||||||||||
Business acquisitions, net of cash equivalents acquired | ( | ||||||||||||||||
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 (decrease) 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 during the period for: | |||||||||||||||||
Income taxes, net | $ | $ | $ | ||||||||||||||
Interest |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Restricted cash included in other current assets | |||||||||||||||||
Long-term restricted cash | |||||||||||||||||
Total cash, cash equivalents, and restricted cash | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands, except per share data | 2020 | 2019 | 2018 | ||||||||||||||
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 | December 31, 2020 | December 31, 2019 | |||||||||
Trade receivables (net of allowance of $ | $ | $ | |||||||||
Unbilled receivables | |||||||||||
Total accounts receivable, net | $ | $ |
Allowance for credit losses account activity | Year Ended December 31, | ||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Beginning balance | $ | $ | $ | ||||||||||||||
Provision for (release of) doubtful accounts, net | ( | ( | |||||||||||||||
Accounts written-off | ( | ( | ( | ||||||||||||||
Effect of change in exchange rates | ( | ( | |||||||||||||||
Ending balance | $ | $ | $ |
Inventories | |||||||||||
In thousands | December 31, 2020 | December 31, 2019 | |||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total inventories | $ | $ |
Property, plant, and equipment, net | |||||||||||
In thousands | December 31, 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 | Year Ended December 31, | ||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Depreciation expense | $ | $ | $ |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
In thousands | Gross Assets | Accumulated (Amortization) Accretion | Net | Gross Assets | 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 | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( |
Year Ended December 31, | |||||||||||
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 | |||||||||||||||||
2021 | $ | $ | ( | $ | |||||||||||||
2022 | ( | ||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
2025 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total intangible assets subject to amortization (accretion) | $ | $ | ( | $ |
Amortization Expense | Year Ended December 31, | ||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Amortization expense | $ | $ | $ |
In thousands | Device Solutions | Networked Solutions | Outcomes | Total Company | |||||||||||||||||||
Goodwill balance at January 1, 2019 | $ | $ | $ | $ | |||||||||||||||||||
Goodwill acquired | ( | ( | ( | ||||||||||||||||||||
Effect of change in exchange rates | ( | ( | ( | ( | |||||||||||||||||||
Goodwill balance at December 31, 2019 | |||||||||||||||||||||||
Goodwill allocated to business sold | ( | ( | |||||||||||||||||||||
Effect of change in exchange rates | |||||||||||||||||||||||
Goodwill balance at December 31, 2020 | $ | $ | $ | $ |
In thousands | December 31, 2020 | December 31, 2019 | |||||||||
Credit facility | |||||||||||
USD denominated term loan | $ | $ | |||||||||
Multicurrency revolving line of credit | |||||||||||
Senior notes | |||||||||||
Total debt | |||||||||||
Less: current portion of debt (1) | |||||||||||
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 | ||||||||
2021 | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
Total minimum payments on debt | $ |
Derivatives Assets | Balance Sheet Location | December 31, 2020 | December 31, 2019 | |||||||||||||||||
Derivatives designated as hedging instruments under Subtopic ASC 815-20 | In thousands | |||||||||||||||||||
Interest rate swap contracts | Other current assets | $ | $ | |||||||||||||||||
Interest rate cap contracts | Other current assets | |||||||||||||||||||
Cross currency swap contracts | Other current assets | |||||||||||||||||||
Cross currency swap contracts | Other long-term assets | |||||||||||||||||||
Derivatives not designated as hedging instruments under Subtopic ASC 815-20 | ||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | |||||||||||||||||||
Total asset derivatives | $ | $ | ||||||||||||||||||
Derivatives 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 | |||||||||||||||||||
Cross currency swap contracts | Other current liabilities | |||||||||||||||||||
Derivatives not designated as hedging instruments under Subtopic ASC 815-20 | ||||||||||||||||||||
Foreign exchange forward contracts | Other current liabilities | |||||||||||||||||||
Total liability derivatives | $ | $ | ||||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Net unrealized loss on hedging instruments at January 1, | $ | ( | $ | ( | $ | ( | |||||||||||
Unrealized gain (loss) on derivative instruments | ( | ||||||||||||||||
Realized (gains) losses reclassified into net income (loss) | ( | ( | |||||||||||||||
Net unrealized loss on hedging instruments at December 31, | $ | ( | $ | ( | $ | ( |
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 | ||||||||||||||||||||
December 31, 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 | ||||||||||||||||||||
December 31, 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 | 2018 | In thousands | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||
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 | ( |
Derivatives Not Designated as Hedging Instrument under ASC 815-20 | Location | Gain (Loss) Recognized on Derivatives in Other Income (Expenses) | ||||||||||||||||||||||||
In thousands | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Foreign exchange forward contracts | Other income (expense), net | $ | ( | $ | ( | $ | ||||||||||||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Change in benefit obligation: | |||||||||||
Benefit obligation at January 1, | $ | $ | |||||||||
Service cost | |||||||||||
Interest cost | |||||||||||
Actuarial (gain) loss | |||||||||||
Benefits paid | ( | ( | |||||||||
Foreign currency exchange rate changes | ( | ||||||||||
Curtailment | ( | ( | |||||||||
Settlement | ( | ( | |||||||||
Other | ( | ( | |||||||||
Benefit obligation at December 31, | $ | $ | |||||||||
Change in plan assets: | |||||||||||
Fair value of plan assets at January 1, | $ | $ | |||||||||
Actual return on plan assets | |||||||||||
Company contributions | |||||||||||
Benefits paid | ( | ( | |||||||||
Foreign currency exchange rate changes | ( | ( | |||||||||
Release for Divestiture | ( | ||||||||||
Fair value of plan assets at December 31, | |||||||||||
Net pension benefit obligation at fair value | $ | $ |
December 31, | |||||||||||
In thousands | 2020 | 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 | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Net actuarial (gain) loss | $ | $ | $ | ( | |||||||||||||
Settlement (gain) loss | ( | ( | ( | ||||||||||||||
Curtailment (gain) loss | ( | ||||||||||||||||
Plan asset (gain) loss | ( | ||||||||||||||||
Amortization of net actuarial loss | ( | ( | ( | ||||||||||||||
Amortization of prior service cost | ( | ( | ( | ||||||||||||||
Other | ( | ||||||||||||||||
Other comprehensive (income) loss | $ | $ | $ | ( |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Service cost | $ | $ | $ | ||||||||||||||
Interest cost | |||||||||||||||||
Expected return on plan assets | ( | ( | ( | ||||||||||||||
Amortization of prior service costs | |||||||||||||||||
Amortization of actuarial net loss | |||||||||||||||||
Settlement | |||||||||||||||||
Curtailment | |||||||||||||||||
Net periodic benefit cost | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Actuarial assumptions used to determine benefit obligations at end of period: | |||||||||||||||||
Discount rate | % | % | % | ||||||||||||||
Expected annual rate of compensation increase | % | % | % | ||||||||||||||
Actuarial assumptions used to determine net periodic benefit cost for the period: | |||||||||||||||||
Discount rate | % | % | % | ||||||||||||||
Expected rate of return on plan assets | % | % | % | ||||||||||||||
Expected annual rate of compensation increase | % | % | % |
In thousands | December 31, | ||||||||||
2020 | 2019 | ||||||||||
Projected benefit obligation | $ | $ | |||||||||
Accumulated benefit obligation | |||||||||||
Fair value of plan assets |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
In thousands | December 31, 2020 | ||||||||||||||||
Cash | $ | $ | $ | ||||||||||||||
Insurance funds | |||||||||||||||||
Other securities | |||||||||||||||||
Total fair value of plan assets | $ | $ | $ | ||||||||||||||
In thousands | December 31, 2019 | ||||||||||||||||
Cash | $ | $ | $ | ||||||||||||||
Insurance funds | |||||||||||||||||
Other securities | |||||||||||||||||
Total fair value of plan assets | $ | $ | $ |
In thousands | Balance at January 1, 2020 | Net Realized and Unrealized Gains | Net Purchases, Issuances, Settlements, and Other | Release for Divestiture | Effect of Foreign Currency | Balance at December 31, 2020 | |||||||||||||||||||||||||||||
Insurance funds | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Other securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ | ( | $ |
In thousands | Balance at January 1, 2019 | Net Realized and Unrealized Gains | Net Purchases, Issuances, Settlements, and Other | Release for Divestiture | Effect of Foreign Currency | Balance at December 31, 2019 | |||||||||||||||||||||||||||||
Insurance funds | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Other securities | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | ( | $ |
Year Ending December 31, | Estimated Annual Benefit Payments | |||||||
In thousands | ||||||||
2021 | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026-2030 |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
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, 2018 | $ | $ | |||||||||||||||||||||||||||
Converted upon acquisition | $ | ||||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||||||||
Expired | ( | ||||||||||||||||||||||||||||
Outstanding, December 31, 2018 | $ | $ | |||||||||||||||||||||||||||
Granted | $ | ||||||||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||||||||
Expired | ( | ||||||||||||||||||||||||||||
Outstanding, December 31, 2019 | $ | $ | |||||||||||||||||||||||||||
Granted | $ | ||||||||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||||||||
Outstanding, December 31, 2020 | $ | $ | |||||||||||||||||||||||||||
Exercisable, December 31, 2020 | $ | $ | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Expected volatility | % | % | % | ||||||||||||||
Risk-free interest rate | % | % | % | ||||||||||||||
Expected term (years) | |||||||||||||||||
Number of Restricted Stock Units | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | |||||||||||||||
In thousands | In thousands | ||||||||||||||||
Outstanding, January 1, 2018 | $ | ||||||||||||||||
Converted upon acquisition | |||||||||||||||||
Granted | |||||||||||||||||
Released (1) | ( | $ | |||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding, December 31, 2018 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Released (1) | ( | $ | |||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding, December 31, 2019 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Released (1) | ( | $ | |||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding, December 31, 2020 | $ | ||||||||||||||||
Vested but not released, December 31, 2020 | $ | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Expected volatility | % | % | % | ||||||||||||||
Risk-free interest rate | % | % | % | ||||||||||||||
Expected term (years) | |||||||||||||||||
Weighted average fair value | $ | $ | $ |
Number of Phantom Stock Units | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | |||||||||||||||
In thousands | In thousands | ||||||||||||||||
Outstanding, January 1, 2018 | $ | 62.53 | |||||||||||||||
Converted upon acquisition | |||||||||||||||||
Granted | |||||||||||||||||
Released | ( | $ | |||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding, December 31, 2018 | $ | 61.80 | |||||||||||||||
Converted upon acquisition | |||||||||||||||||
Granted | |||||||||||||||||
Released | ( | $ | |||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding, December 31, 2019 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Released | ( | $ | |||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding, December 31, 2020 | $ | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Defined contribution plans expense | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Bonus and profit sharing plans expense | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | ( | $ | $ | ( | ||||||||||||
State and local | ( | ||||||||||||||||
Foreign | |||||||||||||||||
Total current | |||||||||||||||||
Deferred: | |||||||||||||||||
Federal | ( | ( | |||||||||||||||
State and local | ( | ( | ( | ||||||||||||||
Foreign | ( | ( | ( | ||||||||||||||
Total deferred | ( | ( | ( | ||||||||||||||
Change in valuation allowance | |||||||||||||||||
Total provision (benefit) for income taxes | $ | $ | $ | ( |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Income (loss) before income taxes | |||||||||||||||||
Domestic | $ | $ | $ | ( | |||||||||||||
Foreign | ( | ( | |||||||||||||||
Total income before income taxes | $ | ( | $ | $ | ( | ||||||||||||
Expected federal income tax provision | $ | ( | $ | $ | ( | ||||||||||||
Latin America Divestiture | |||||||||||||||||
Change in valuation allowance | |||||||||||||||||
Stock-based compensation | ( | ( | ( | ||||||||||||||
Foreign earnings | ( | ( | ( | ||||||||||||||
Tax credits | ( | ( | ( | ||||||||||||||
Uncertain tax positions, including interest and penalties | |||||||||||||||||
Change in tax rates | |||||||||||||||||
State income tax provision (benefit), net of federal effect | ( | ( | |||||||||||||||
U.S. tax provision on foreign earnings | |||||||||||||||||
Local foreign taxes | |||||||||||||||||
Transaction costs | |||||||||||||||||
Other, net | |||||||||||||||||
Total provision (benefit) from income taxes | $ | $ | $ | ( |
December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Deferred tax assets | |||||||||||
Loss carryforwards(1) | $ | $ | |||||||||
Tax credits(2) | |||||||||||
Accrued expenses | |||||||||||
Pension plan benefits expense | |||||||||||
Warranty reserves | |||||||||||
Depreciation and amortization | |||||||||||
Equity compensation | |||||||||||
Inventory valuation | |||||||||||
Deferred revenue | |||||||||||
Leases | |||||||||||
Other deferred tax assets, net | |||||||||||
Total deferred tax assets | |||||||||||
Valuation allowance | ( | ( | |||||||||
Total deferred tax assets, net of valuation allowance | |||||||||||
Deferred tax liabilities | |||||||||||
Depreciation and amortization | ( | ( | |||||||||
Leases | ( | ( | |||||||||
Other deferred tax liabilities, net | ( | ( | |||||||||
Total deferred tax liabilities | ( | ( | |||||||||
Net deferred tax assets | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Balance at beginning of period | $ | $ | $ | ||||||||||||||
Other adjustments | ( | ||||||||||||||||
Additions charged to costs and expenses | |||||||||||||||||
Balance at end of period, noncurrent | $ | $ | $ |
In thousands | Total | ||||
Unrecognized tax benefits at January 1, 2018 | $ | ||||
Gross increase to positions in prior years | |||||
Gross decrease to positions in prior years | ( | ||||
Gross increases to current period tax positions | |||||
Audit settlements | ( | ||||
Decrease related to lapsing of statute of limitations | ( | ||||
Effect of change in exchange rates | ( | ||||
Unrecognized tax benefits at December 31, 2018 | $ | ||||
Gross increase to positions in prior years | |||||
Gross decrease to positions in prior years | ( | ||||
Gross increases to current period tax positions | |||||
Audit settlements | |||||
Decrease related to lapsing of statute of limitations | ( | ||||
Effect of change in exchange rates | ( | ||||
Unrecognized tax benefits at December 31, 2019 | $ | ||||
Gross increase to positions in prior years | |||||
Gross decrease to positions in prior years | ( | ||||
Gross increases to current period tax positions | |||||
Audit settlements | ( | ||||
Decrease related to lapsing of statute of limitations | ( | ||||
Effect of change in exchange rates | |||||
Unrecognized tax benefits at December 31, 2020 | $ |
At December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Net interest and penalties expense (benefit) | $ | $ | $ | ( |
At December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Accrued interest | $ | $ | |||||||||
Accrued penalties |
Tax Jurisdiction | Years Subject to Audit | |||||||
U.S. federal | Subsequent to 2001 | |||||||
France | Subsequent to 2012 | |||||||
Germany | Subsequent to 2013 | |||||||
United Kingdom | Subsequent to 2015 | |||||||
Indonesia | Subsequent to 2014 | |||||||
Italy | Subsequent to 2015 |
At December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
Credit facility | |||||||||||
Multicurrency revolving line of credit | $ | $ | |||||||||
Long-term borrowings | |||||||||||
Standby LOCs issued and outstanding | ( | ( | |||||||||
Net available for additional borrowings under the multicurrency 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 | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Beginning balance | $ | $ | $ | ||||||||||||||
Assumed liabilities from acquisition | |||||||||||||||||
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 | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Total warranty expense | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
Plan costs | $ | $ | $ |
At December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
IBNR accrual | $ | $ |
In thousands | Total Expected Costs at December 31, 2020 | Costs Recognized in Prior Periods | Costs Recognized During the Year Ended December 31, 2020 | Expected Remaining Costs to be Recognized at December 31, 2020 | |||||||||||||||||||
Employee severance costs | $ | $ | $ | $ | |||||||||||||||||||
Asset impairments & net loss on sale or disposal | |||||||||||||||||||||||
Other restructuring costs | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
In thousands | Total Expected Costs at December 31, 2020 | Costs Recognized in Prior Periods | Costs Recognized During the Year Ended December 31, 2020 | Expected Remaining Costs to be Recognized at December 31, 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, December 31, 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, 2018 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||
OCI before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from AOCI | ( | ( | |||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||
Balances at December 31, 2018 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||
OCI before reclassifications | ( | ||||||||||||||||||||||||||||
Amounts reclassified from AOCI | ( | ( | ( | ||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||||||||
Balances at December 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
OCI before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
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 into 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 (provision) 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 | $ | $ | ( | $ | ( |
December 31, 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 | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
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 | $ | ( | $ | $ | ( |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
United States and Canada | $ | $ | $ | ||||||||||||||
Europe, Middle East, and Africa | |||||||||||||||||
Asia Pacific and Latin America (1) | |||||||||||||||||
Total Company | $ | $ | $ |
At December 31, | |||||||||||
In thousands | 2020 | 2019 | |||||||||
United States | $ | $ | |||||||||
Outside United States | |||||||||||
Total Company | $ | $ |
Year Ended December 31, | |||||||||||||||||
In thousands | 2020 | 2019 | 2018 | ||||||||||||||
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 | ( | ||||
Cumulative catch-up adjustments | ( | ||||
Increases due to amounts collected or due | |||||
Revenues recognized from current period increases | ( | ||||
Other | ( | ||||
Ending balance, December 31, 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 | $ | ( |
In thousands | Year Ended December 31, | ||||||||||
2020 | 2019 | ||||||||||
Operating lease cost | $ | $ | |||||||||
Variable lease cost | |||||||||||
Total operating lease cost | $ | $ |
In thousands | Year Ended December 31, | ||||||||||
2020 | 2019 | ||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | |||||||||
Right-of-use assets obtained in exchange for operating lease liabilities |
In thousands | December 31, 2020 | December 31, 2019 | |||||||||
Operating lease right-of-use assets, net | $ | $ | |||||||||
Operating lease liabilities | |||||||||||
Total operating lease liability | $ | $ | |||||||||
Weighted average remaining lease term - Operating leases | |||||||||||
Weighted average discount rate - Operating leases | % | % |
In thousands | December 31, 2020 | ||||
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total lease payments | |||||
Less: imputed interest | ( | ||||
Total operating lease liability | $ |
In thousands | Year Ended December 31, | ||||
2018 | |||||
Rental expense | $ |
Exhibit Number | Description of Exhibits | |||||||
2.1 | ||||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 | ||||||||
10.1* | ||||||||
10.2* | ||||||||
10.3* | ||||||||
10.4* | ||||||||
10.5* | ||||||||
10.6* |
Exhibit Number | Description of Exhibits | |||||||
10.7* | ||||||||
10.8* | ||||||||
10.9* | ||||||||
10.10* | ||||||||
10.11* | ||||||||
10.12* | ||||||||
10.13* | ||||||||
10.14* | ||||||||
10.15* | ||||||||
10.16* | ||||||||
10.17* | ||||||||
10.18* | ||||||||
10.19* | ||||||||
10.20* | ||||||||
10.21* | ||||||||
Exhibit Number | Description of Exhibits | |||||||
10.22 | ||||||||
10.23 | ||||||||
10.24 | ||||||||
10.25* | ||||||||
10.26* | ||||||||
10.27* | ||||||||
10.28* | ||||||||
10.29* | ||||||||
10.30* | ||||||||
10.31* | ||||||||
10.32* | ||||||||
10.33* | ||||||||
10.34* | ||||||||
10.35* | ||||||||
10.36* | ||||||||
Exhibit Number | Description of Exhibits | |||||||
21.1 | ||||||||
23.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101 | The following financial information from Itron, Inc.'s Annual Report on Form 10-K for the year ended December 31, 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) | |||||||
* | Management contract or compensatory plan or arrangement. |
ITRON, INC. | ||||||||
By: | /s/ JOAN S. HOOPER | |||||||
Joan S. Hooper | ||||||||
Senior Vice President and Chief Financial Officer |
Signatures | Title | |||||||
/s/ THOMAS L. DEITRICH | ||||||||
Thomas L. Deitrich | President and Chief Executive Officer (Principal Executive Officer), Director | |||||||
/s/ JOAN S. HOOPER | ||||||||
Joan S. Hooper | Senior Vice President and Chief Financial Officer | |||||||
/s/ THOMAS S. GLANVILLE | ||||||||
Thomas S. Glanville | Director | |||||||
/s/ FRANK M. JAEHNERT | ||||||||
Frank M. Jaehnert | Director | |||||||
/s/ JEROME J. LANDE | ||||||||
Jerome J. Lande | Director | |||||||
/s/ TIMOTHY M. LEYDEN | ||||||||
Timothy M. Leyden | Director | |||||||
/s/ DANIEL S. PELINO | ||||||||
Daniel S. Pelino | Director | |||||||
/s/ GARY E. PRUITT | ||||||||
Gary E. Pruitt | Director | |||||||
/s/ DIANA D. TREMBLAY | ||||||||
Diana D. Tremblay | Director | |||||||
/s/ LYNDA L. ZIEGLER | ||||||||
Lynda L. Ziegler | Chair of the Board |
Participant: | Participant Name | ||||
Grant Date: | Grant Date | ||||
Number of Restricted Stock Units: | Number of Awards Granted | ||||
Vesting Schedule: | The Award will vest with respect to one-third of the Restricted Stock Units on the first, second and third anniversary of the Grant Date (each, a “Vest Date”). |
Participant Name | |||||
I accept this award subject to the terms and conditions stated herein. | |||||
Electronic Signature |
CONSOLIDATED SUBSIDIARIES OF THE REGISTRANT AT DECEMBER 31, 2020 | |||||
Itron, Inc. Domestic Subsidiaries | State of Incorporation | ||||
Itron International, Inc. | Delaware | ||||
Itron Networked Solutions, Inc. | Delaware | ||||
SSN Holdings, LLC | Delaware | ||||
Royal Cautivo Insurance, Inc. | Utah | ||||
Itron, Inc. International Subsidiaries | Jurisdiction of Incorporation or Organization | ||||
Itron Australasia Pty Limited | Australia | ||||
Itron Austria GmbH | Austria | ||||
Itron Belgium SA | Belgium | ||||
Itron China Gas Holding Co. Ltd. | British Virgin Islands | ||||
Itron Canada, Inc. | Canada | ||||
Itron Metering Solutions (Suzhou) Co., Ltd. | China | ||||
Itron Metering Systems (Suzhou) Co., Ltd. | China | ||||
Comverge International, Ltd. | Cyprus | ||||
Itron Czech Republic s.r.o. | Czech Republic | ||||
Itron Denmark ApS | Denmark | ||||
Asais S.A.S | France | ||||
Asais Conseil S.A.S. | France | ||||
Itron France S.A.S. | France | ||||
Itron Holding France S.A.S. | France | ||||
Itron Holding Germany GmbH | Germany | ||||
Itron GmbH | Germany | ||||
Itron Zähler & Systemtechnik GmbH | Germany | ||||
Itron Unterstutzungskasse GmbH | Germany | ||||
Allmess GmbH | Germany | ||||
Itron Unterstutzungseinrichtung GmbH | Germany | ||||
SEWA GmbH | Germany | ||||
Ganz Meter Company Ltd. | Hungary | ||||
Itron Labs Kft | Hungary | ||||
Itron India Private Limited | India | ||||
Itron Metering Solutions India Private Limited | India | ||||
PT Mecoindo (J.V.) | Indonesia | ||||
Itron Management Services Ireland, Limited | Ireland | ||||
Temetra Limited | Ireland | ||||
Itron Italia SpA | Italy | ||||
Itron Japan Co., Ltd. | Japan | ||||
Itron Metering Solutions Luxembourg SARL | Luxembourg | ||||
Itron Global SARL | Luxembourg | ||||
Metertek Sdn Bhd (J.V. 100% indirectly owned) | Malaysia | ||||
Itron Servicios, S.A. de C.V. | Mexico | ||||
Itron Nederland B.V. | Netherlands | ||||
Itron Polska SP ZOO | Poland | ||||
Itron Portugal, Unipessoal, LDA. | Portugal | ||||
Itron Imobiliaria, Unipessoal, LDA. | Portugal |
Itron, Inc. International Subsidiaries | Jurisdiction of Incorporation or Organization | ||||
Itron Sistemas de Medição Lda. | Portugal | ||||
Itron Middle East LLC | Qatar | ||||
Itron Measurement and Systems (Proprietary) Limited | Republic of South Africa | ||||
Itron LLC | Russia | ||||
Arabian Metering Company | Saudi Arabia | ||||
Itron Metering Systems Singapore Pte Ltd. | Singapore | ||||
Itron Spain SLU | Spain | ||||
Itron Sweden AB | Sweden | ||||
Itron Ukraine | Ukraine | ||||
Itron Ukrgas Meters Company (J.V. Majority) | Ukraine | ||||
Itron Metering Solutions UK Ltd. | United Kingdom | ||||
Itron Development UK Ltd. | United Kingdom | ||||
Itron Metering Solutions (Thailand) Co. Ltd. | Thailand | ||||
Itron New Zealand Limited | New Zealand | ||||
Silver Spring Networks Hong Kong Limited | Hong Kong | ||||
Silver Spring Networks India LLP | India | ||||
Silver Spring Networks Malaysia Sdn. Bhd. | Malaysia | ||||
Itron Wireless Trading, LLC | Dubai | ||||
Silver Spring Networks (UK) Limited | United Kingdom | ||||
Silver Spring Networks International Limited | Cayman Islands |
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 | ||
Thomas L. Deitrich President and Chief Executive Officer | ||
February 24, 2021 | ||
/s/ JOAN S. HOOPER | ||
Joan S. Hooper Senior Vice President and Chief Financial Officer | ||
February 24, 2021 |
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Consolidated Statements of Operations - USD ($) shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Total revenues | $ 2,173,350,000 | $ 2,502,470,000 | $ 2,376,117,000 |
Total cost of revenues | 1,571,183,000 | 1,750,151,000 | 1,645,798,000 |
Gross profit | 602,167,000 | 752,319,000 | 730,319,000 |
Operating expenses | |||
Sales, general and administrative | 276,920,000 | 346,872,000 | 423,210,000 |
Research and development | 194,101,000 | 202,200,000 | 207,905,000 |
Amortization of intangible assets | 44,711,000 | 64,286,000 | 71,713,000 |
Restructuring | 37,013,000 | 6,278,000 | 77,183,000 |
Gain (Loss) on Disposition of Other Assets | 59,817,000 | 0 | 0 |
Total operating expenses | 612,562,000 | 619,636,000 | 780,011,000 |
Operating income (loss) | (10,395,000) | 132,683,000 | (49,692,000) |
Other income (expense) | |||
Interest income | 2,998,000 | 1,849,000 | 2,153,000 |
Interest expense | (44,001,000) | (52,453,000) | (58,203,000) |
Other income (expense), net | (5,241,000) | (9,047,000) | (3,409,000) |
Total other income (expense) | (46,244,000) | (59,651,000) | (59,459,000) |
Total income before income taxes | (56,639,000) | 73,032,000 | (109,151,000) |
Income tax benefit (provision) | (238,000) | (20,617,000) | 12,570,000 |
Net income (loss) | (56,877,000) | 52,415,000 | (96,581,000) |
Net income attributable to noncontrolling interests | 1,078,000 | 3,409,000 | 2,669,000 |
Net income (loss) attributable to Itron, Inc. | $ (57,955,000) | $ 49,006,000 | $ (99,250,000) |
Earnings (loss) per common share - Basic (in dollars per share) | $ (1.44) | $ 1.24 | $ (2.53) |
Earnings (loss) per common share - Diluted (in dollars per share) | $ (1.44) | $ 1.23 | $ (2.53) |
Weighted average common shares outstanding - Basic (in shares) | 40,253 | 39,556 | 39,244 |
Weighted average common shares outstanding - Diluted (in shares) | 40,253 | 39,980 | 39,244 |
Product [Member] | |||
Total revenues | $ 1,889,173,000 | $ 2,220,395,000 | $ 2,095,458,000 |
Total cost of revenues | 1,408,615,000 | 1,587,710,000 | 1,476,498,000 |
Service [Member] | |||
Total revenues | 284,177,000 | 282,075,000 | 280,659,000 |
Total cost of revenues | $ 162,568,000 | $ 162,441,000 | $ 169,300,000 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (56,877) | $ 52,415 | $ (96,581) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 21,082 | (2,953) | (28,841) |
Foreign currency translation adjustment reclassified to net income on sale of business | 52,074 | 2,443 | 0 |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | (898) | (1,924) | 235 |
Pension benefit obligation adjustment | 6,112 | 5,933 | (2,779) |
Total other comprehensive income (loss), net of tax | 66,146 | (8,367) | (25,827) |
Total comprehensive income (loss), net of tax | 9,269 | 44,048 | (122,408) |
Comprehensive income attributable to noncontrolling interests, net of tax | 1,078 | 3,409 | 2,669 |
Comprehensive income (loss) attributable to Itron, Inc. | $ 8,191 | $ 40,639 | $ (125,077) |
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 40,444,000 | 39,941,000 |
Common stock, shares outstanding (in shares) | 40,444,000 | 39,941,000 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 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 |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Significant Accounting Policies | Summary of Significant Accounting Policies We were incorporated in the state of Washington in 1977 and are a technology company, offering end-to-end solutions to enhance productivity and efficiency, primarily focused on utilities and municipalities around the globe. We operate under the Itron brand worldwide and manage and report under three operating segments: Device Solutions, Networked Solutions, and Outcomes. Financial Statement Preparation The consolidated financial statements presented in this Annual Report include the Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income (Loss), Consolidated Statements of Equity, and Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019, and 2018 and the Consolidated Balance Sheets as of December 31, 2020 and 2019 of Itron, Inc. and its subsidiaries, prepared in accordance with U.S. generally accepted accounting principles (GAAP). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of significant estimates include revenue recognition, warranty, restructuring, income taxes, business combinations, goodwill and intangible assets, defined benefit pension plans, contingencies, and stock-based compensation. Due to various factors affecting future costs and operations, actual results could differ materially from these estimates. 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. While certain of our European factories were closed during portions of the first half of 2020 due to government actions and local conditions, all were open by May and throughout the remainder of the year. Any further closures that may be imposed on us could impact our results for 2021. Incremental costs we have incurred related to COVID-19, such as personal protective equipment, increased cleaning and sanitizing of our facilities, and other such items, have not been material to date. At this time, we have not identified any significant decrease in long-term customer demand for our products and services. Certain of our customers’ projects and deployments have shifted into 2021 and beyond. Basis of Consolidation We consolidate all entities in which we have a greater than 50% ownership interest or in which we exercise control over the operations. We use the equity method of accounting for entities in which we have a 20% to 50% investment and exercise significant influence. Entities in which we have less than a 20% investment and where we do not exercise significant influence are accounted for under the fair value method. Intercompany transactions and balances are eliminated upon consolidation. Noncontrolling Interests In several of our consolidated international subsidiaries, we have joint venture partners, who are minority shareholders. Although these entities are not wholly owned by Itron, we consolidate them because we have a greater than 50% ownership interest or because we exercise control over the operations. The noncontrolling interest balance is adjusted each period to reflect the allocation of net income (loss) and other comprehensive income (loss) attributable to the noncontrolling interests, as shown in our Consolidated Statements of Operations and our Consolidated Statements of Comprehensive Income (Loss), as well as contributions from and distributions to the owners. The noncontrolling interest balance in our Consolidated Balance Sheets represents the proportional share of the equity of the joint venture entities, which is attributable to the minority shareholders. Cash and Cash Equivalents We consider all highly liquid instruments with remaining maturities of three months or less at the date of acquisition to be cash equivalents. Restricted Cash and Cash Equivalents Cash and cash equivalents that are contractually restricted from operating use are classified as restricted cash and cash equivalents. 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 credit losses 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. Inventories Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method. Cost includes raw materials and labor, plus applied direct and indirect overhead costs. Net realizable value is the estimated selling price in the normal course of business, minus the cost of completion, disposal and transportation. Derivative Instruments All derivative instruments, whether designated in hedging relationships or not, are recognized on the Consolidated Balance Sheets at fair value as either assets or liabilities. The fair values of our derivative instruments are determined using the fair value measurements of significant other observable inputs (Level 2), as defined by GAAP. The fair value of our derivative instruments may switch between an asset and a liability depending on market circumstances at the end of the period. We include the effect of our counterparty credit risk based on current published credit default swap rates when the net fair value of our derivative instruments is in a net asset position and the effect of our own nonperformance risk when the net fair value of our derivative instruments is in a net liability position. For any derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. For any derivative designated as a cash flow hedge, changes in the fair value of the derivative are recognized as a component of other comprehensive income (loss) (OCI) and are recognized in earnings when the hedged item affects earnings. For a hedge of a net investment, any unrealized gain or loss from the foreign currency revaluation of the hedging instrument is reported in OCI as a net unrealized gain or loss on derivative instruments. Upon termination of a net investment hedge, the net derivative gain/loss will remain in accumulated other comprehensive income (loss) (AOCI) until such time when earnings are impacted by a sale or liquidation of the associated operations. We classify cash flows from our derivative programs as cash flows from operating activities in the Consolidated Statements of Cash Flows. Derivatives are not used for trading or speculative purposes. Our derivatives are with credit-worthy multinational commercial banks, with which we have master netting agreements; however, our derivative positions are not recognized on a net basis in the Consolidated Balance Sheets. There are no credit-risk related contingent features within our derivative instruments. Refer to Note 7: Derivative Financial Instruments and Note 14: Shareholders' Equity for further disclosures of our derivative instruments and their impact on OCI. Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 30 years for buildings and improvements and three years to 10 years for machinery and equipment, computers and software, and furniture. Leasehold improvements are capitalized and depreciated over the term of the applicable lease, including renewable periods if reasonably certain, or over the useful lives, whichever is shorter. Construction in process represents capital expenditures incurred for assets not yet placed in service. Costs related to internally developed software and software purchased for internal uses are capitalized and are amortized over the estimated useful lives of the assets. Repair and maintenance costs are recognized as incurred. We have no major planned maintenance activities. We review long-lived assets for impairment whenever events or circumstances indicate the carrying amount of an asset group may not be recoverable. Assets held for sale are classified within other current assets in the Consolidated Balance Sheets, are reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. Gains and losses from asset disposals and impairment losses are classified within the Consolidated Statements of Operations according to the use of the asset, except those gains and losses recognized in conjunction with our restructuring activities, which are classified within restructuring expense. Prepaid Debt Fees Prepaid debt fees for term debt represent the capitalized direct costs incurred related to the issuance of debt and are recognized as a deduction from the carrying amount of the corresponding debt liability. We have elected to present prepaid debt fees for revolving debt within other long-term assets in the Consolidated Balance Sheets. These costs are amortized to interest expense over the terms of the respective borrowings, including contingent maturity or call features, using the effective interest method or the straight-line method when associated with a revolving credit facility. When debt is repaid early, the related portion of unamortized prepaid debt fees is written off and included in interest expense. Business Combinations On the date of acquisition, the assets acquired, liabilities assumed, and any noncontrolling interests in the acquiree are recognized at their fair values. The acquiree's results of operations are also included as of the date of acquisition in our consolidated results. Intangible assets that arise from contractual/legal rights, or are capable of being separated, as well as in-process research and development (IPR&D), are measured and recognized at fair value, and amortized over the estimated useful life. IPR&D is not amortized until such time as the associated development projects are completed or terminated. If a development project is completed, the IPR&D is reclassified as a core technology intangible asset and amortized over its estimated useful life. If the development project is terminated, the recognized value of the associated IPR&D is immediately recognized. If practicable, assets acquired and liabilities assumed arising from contingencies are measured and recognized at fair value. If not practicable, such assets and liabilities are measured and recognized when it is probable that a gain or loss has occurred and the amount can be reasonably estimated. The residual balance of the purchase price, after fair value allocations to all identified assets and liabilities, represents goodwill. Acquisition-related costs are recognized as incurred. Integration costs associated with an acquisition are generally recognized in periods subsequent to the acquisition date, and changes in deferred tax asset valuation allowances and acquired income tax uncertainties, including penalties and interest, after the measurement period are recognized as a component of the provision for income taxes. Our acquisitions may include contingent consideration, which requires us to recognize the fair value of the estimated liability at the time of the acquisition. Subsequent changes in the estimate of the amount to be paid under the contingent consideration arrangement are recognized in the Consolidated Statements of Operations. We estimate the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on information available at that time utilizing either a cost or income approach. The determination of the fair value is judgmental in nature and involves the use of significant estimates and assumptions. Contingent consideration is recognized at fair value as of the date of the acquisition with adjustments occurring after the purchase price allocation period, which could be up to one year, recognized in earnings. Changes to valuation allowances on acquired deferred tax assets that occur after the acquisition date are recognized in the provision for, or benefit from, income taxes. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially between the preliminary allocation and end of the purchase price allocation period. Any changes in these estimates may have a material effect on our consolidated operating results or financial position. Leases We determine if an arrangement is a lease at inception. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: (1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment), and (2) the customer has the right to control the use of the identified asset. Operating leases are included in operating lease right-of-use (ROU) assets, other current liabilities, and operating lease liabilities on our Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, other long-term assets, other current liabilities, and other long-term obligations on our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We use the rate implicit in the lease agreement when readily determinable. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is the estimated rate of interest we expect to pay on a collateralized basis over a similar term, based on the information available at the lease commencement date. The Operating lease ROU asset also includes any lease payments made and is reduced by lease incentives received and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements that include lease and nonlease components. When nonlease components are fixed, we have elected the practical expedient to account for lease and nonlease components as a single lease component, except for leases embedded in service contracts. All leases with a lease term that is greater than one month are subject to recognition and measurement on the balance sheet, except where we have leases in service contracts with contract manufacturers. For leases with contract manufacturers, we have elected to utilize the short-term lease exemption. Lease expense for variable lease payments, where the timing or amount of the payment is not fixed, are recognized when the obligation is incurred. Variable lease payments generally arise in our net lease arrangements where executory and other lease-related costs are billed to Itron when incurred by the lessor. Goodwill and Intangible Assets Goodwill and intangible assets may result from our business acquisitions. Intangible assets may also result from the purchase of assets and intellectual property in a transaction that does not qualify as a business combination. We use estimates, including estimates of useful lives of intangible assets, the amount and timing of related future cash flows, and fair values of the related operations, in determining the value assigned to goodwill and intangible assets. Our finite-lived intangible assets are amortized over their estimated useful lives based on estimated discounted cash flows, generally three years to ten years for core-developed technology and customer contracts and relationships. Finite-lived intangible assets are tested for impairment at the asset group level when events or changes in circumstances indicate the carrying value may not be recoverable. Indefinite-lived intangible assets are tested for impairment annually, when events or changes in circumstances indicate the asset may be impaired, or when their useful lives are determined to be no longer indefinite. Goodwill is assigned to our reporting units based on the expected benefit from the synergies arising from each business combination, determined by using certain financial metrics, including the forecasted discounted cash flows associated with each reporting unit. Each reporting unit corresponds with its respective operating segment. We test goodwill for impairment each year as of October 1, or more frequently should a significant impairment indicator occur. As part of the impairment test, we may elect to perform an assessment of qualitative factors. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit, including goodwill, is less than its carrying amount, or if we elect to bypass the qualitative assessment, we would then proceed with the quantitative impairment test. The impairment test involves comparing the fair values of the reporting units to their carrying amounts. If the carrying amount of a reporting unit exceeds its fair value, we first evaluate the long-lived assets within the reporting unit for impairment and then recognize goodwill impairment loss in an amount equal to any excess. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. We forecast discounted future cash flows at the reporting unit level using risk-adjusted discount rates and estimated future revenues and operating costs, which take into consideration factors such as existing backlog, expected future orders, supplier contracts, and expectations of competitive and economic environments. We also identify similar publicly traded companies and develop a correlation, referred to as a multiple, to apply to the operating results of the reporting units. These combined fair values are then reconciled to the aggregate market value of our common stock on the date of valuation, while considering a reasonable control premium. Contingencies A loss contingency is recognized if it is probable that an asset has been impaired or a liability has been incurred, and the amount of the loss can be reasonably estimated. We evaluate, among other factors, the degree of probability of an unfavorable outcome and our ability to make a reasonable estimate of the amount of the ultimate loss. Loss contingencies that we determine to be reasonably possible, but not probable, are disclosed but not recognized. Legal costs to defend against contingent liabilities are recognized as incurred. Bonus and Profit Sharing We have various employee bonus and profit sharing plans, which provide award amounts for the achievement of financial and nonfinancial targets. If management determines it is probable that the targets will be achieved, and the amounts can be reasonably estimated, a compensation accrual is recognized based on the proportional achievement of the financial and nonfinancial targets. Warranty We offer standard warranties on our hardware products and large application software products. We accrue the estimated cost of new product warranties based on historical and projected product performance trends and costs during the warranty period. Testing of new products in the development stage helps identify and correct potential warranty issues prior to manufacturing. Quality control efforts during manufacturing reduce our exposure to warranty claims. When testing or quality control efforts fail to detect a fault in one of our products, we may experience an increase in warranty claims. We track warranty claims to identify potential warranty trends. If an unusual trend is noted, an additional warranty accrual would be recognized if a failure event is probable and the cost can be reasonably estimated. When new products are introduced, our process relies on historical averages of similar products until sufficient data is available. As actual experience on new products becomes available, it is used to modify the historical averages to ensure the expected warranty costs are within a range of likely outcomes. Management regularly evaluates the sufficiency of the warranty provisions and makes adjustments when necessary. The long-term warranty balance includes estimated warranty claims beyond one year. Warranty expense is classified within cost of revenues. Restructuring We recognize a liability for costs associated with an exit or disposal activity under a restructuring project in the period in which the liability is incurred. Employee termination benefits considered postemployment benefits are accrued when the obligation is probable and estimable, such as benefits stipulated by human resource policies and practices or statutory requirements. One-time termination benefits are recognized at the date the employee is notified. If the employee must provide future service greater than 60 days, such benefits are recognized ratably over the future service period. For contract termination costs, we recognize a liability upon the termination of a contract in accordance with the contract terms or the cessation of the use of the rights conveyed by the contract, whichever occurs later. Asset impairments associated with a restructuring project are determined at the asset group level. An impairment may be recognized for assets that are to be abandoned, are to be sold for less than net book value, or are held for sale in which the estimated proceeds less costs to sell are less than the net book value. We may also recognize impairment on an asset group, which is held and used, when the carrying value is not recoverable and exceeds the asset group's fair value. If an asset group is considered a business, a portion of our goodwill balance is allocated to it based on relative fair value. If the sale of an asset group under a restructuring project results in proceeds that exceed the net book value of the asset group, the resulting gain is recognized within restructuring expense in the Consolidated Statements of Operations. Defined Benefit Pension Plans We sponsor both funded and unfunded defined benefit pension plans for certain international employees. We recognize a liability for the projected benefit obligation in excess of plan assets. We recognize an asset when plan assets exceed the projected benefit obligation. We also recognize the funded status of our defined benefit pension plans on our Consolidated Balance Sheets and recognize as a component of OCI, net of tax, the actuarial gains or losses and prior service costs or credits, if any, which arise during the period but that are not recognized as components of net periodic benefit cost. If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the employees' average future service period. Share Repurchase Plans From time to time, we may repurchase shares of Itron common stock under programs authorized by our Board of Directors. Share repurchases are made in the open market or in privately negotiated transactions and in accordance with applicable securities laws. Under applicable Washington State law, shares repurchased are retired and not displayed separately as treasury stock on the financial statements; the value of the repurchased shares is deducted from common stock. Product Revenues and Service Revenues Product revenues include sales from standard and smart meters, systems or software, and any associated implementation and installation revenue. Service revenues include sales from post-sale maintenance support, consulting, outsourcing, and managed services. Revenue Recognition On January 1, 2018, we adopted Revenue from Contracts with Customers (ASC 606) using the modified retrospective method. The majority of our revenues consist primarily of hardware sales, but may also include the license of software, software implementation services, cloud services and Software-as-a-Service (SaaS), project management services, installation services, consulting services, post-sale maintenance support, and extended or customer-specific warranties. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. In determining whether the definition of a contract has been met, we consider whether the arrangement creates enforceable rights and obligations, which involves evaluation of contractual terms that would allow for the customer to terminate the agreement. If the customer has the unilateral right to terminate the agreement without providing further consideration to us, the agreement would not be considered to meet the definition of a contract. Many of our revenue arrangements involve multiple performance obligations as our hardware and services are often sold together. Separate contracts entered into with the same customer (or related parties of the customer) at or near the same time are accounted for as a single contract when one or more of the following criteria are met: •The contracts are negotiated as a package with a single commercial objective; •The amount of consideration to be paid in one contract depends on the price or performance of the other contract; or •The goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a single performance obligation. Once the contract has been defined, we evaluate whether the promises in the contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment, and the decision to separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recognized in a given period. Some of our contracts contain a significant service of integrating, customizing or modifying goods or services in the contract, in which case the goods or services would be combined into a single performance obligation. It is common that we may promise to provide multiple distinct goods or services, in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services. For goods or services where we have observable standalone sales, the observable standalone sales are used to determine the standalone selling price. For the majority of our goods and services, we do not have observable standalone sales. As a result, we estimate the standalone selling price using either the adjusted market assessment approach or the expected cost plus a margin approach. Approaches used to estimate the standalone selling price for a given good or service will maximize the use of observable inputs and considers several factors, including our pricing practices, costs to provide a good or service, the type of good or service, and availability of other transactional data, among others. We determine the estimated standalone selling prices of goods or services used in our allocation of arrangement consideration on an annual basis or more frequently if there is a significant change in our business or if we experience significant variances in our transaction prices. Many of our contracts with customers include variable consideration, which can include liquidated damage provisions, rebates and volume and early payment discounts. Some of our contracts with customers contain clauses for liquidated damages related to the timing of delivery or milestone accomplishments, which could become material in an event of failure to meet the contractual deadlines. At the inception of the arrangement and on an ongoing basis, we evaluate the probability and magnitude of having to pay liquidated damages. We estimate variable consideration using the expected value method, taking into consideration contract terms, historical customer behavior, and historical sales. In the case of liquidated damages, we also take into consideration progress towards meeting contractual milestones, including whether milestones have not been achieved, specified rates, if applicable, stated in the contract, and history of paying liquidated damages to the customer or similar customers. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. In the normal course of business, we do not accept product returns unless the item is defective as manufactured. We establish provisions for estimated returns and warranties. In addition, we do not typically provide customers with the right to a refund. Hardware revenue is recognized at a point in time. Transfer of control is typically at the time of shipment, receipt by the customer, or, if applicable, upon receipt of customer acceptance provisions. We will recognize revenue prior to receipt of customer acceptance for hardware in cases where the customer acceptance provision is determined to be a formality. Transfer of control would not occur until receipt of customer acceptance in hardware arrangements where such provisions are subjective or where we do not have history of meeting the acceptance criteria. Perpetual software licenses are considered to be a right to use intellectual property and are recognized at a point in time. Transfer of control is considered to be at the point at which it is available to the customer to download and use or upon receipt of customer acceptance. In certain contracts, software licenses may be sold with implementation services that include a significant service of integrating, customizing or modifying the software. In these instances, the software license is combined into single performance obligation with the implementation services and recognized over time as the implementation services are performed. Hardware and software licenses (when not combined with professional services) are typically billed when shipped and revenue recognized at a point-in-time. As a result, the timing of revenue recognition and invoicing does not have a significant impact on contract assets and liabilities. Professional services, which include implementation, project management, installation, and consulting services are recognized over time. We measure progress towards satisfying these performance obligations using input methods, most commonly based on the costs incurred in relation to the total expected costs to provide the service. We expect this method to best depict our performance in transferring control of services promised to the customer or represents a reasonable proxy for measuring progress. The estimate of expected costs to provide services requires judgment. Cost estimates take into consideration our historical experience and the specific scope requested by the customer and are updated quarterly. We may also offer professional services on a stand-ready basis over a specified period of time, in which case revenue would be recognized ratably over the term. Invoicing of these services is commensurate with performance and occurs on a monthly basis. As such, these services do not have a significant impact on contract assets and contract liabilities. Cloud services and SaaS arrangements where customers have access to certain of our software within a cloud-based IT environment that we manage, host, and support are offered to customers on a subscription basis. Revenue for the cloud services and SaaS offerings are generally recognized over time, ratably over the contact term commencing with the date the services are made available to the customer. Services, including professional services, cloud services, and SaaS arrangements, are commonly billed on a monthly basis in arrears and typically result in an unbilled receivable, which is not considered a contract asset as our right to consideration is unconditional. Certain of our revenue arrangements include an extended or customer-specific warranty provision that covers all or a portion of a customer's replacement or repair costs beyond the standard warranty period. Whether or not the extended warranty is separately priced in the arrangement, such warranties are considered to be a separate good or service, and a portion of the transaction price is allocated to this extended warranty performance obligation. This revenue is recognized ratably over the extended warranty coverage period. Hardware and software post-sale maintenance support fees are recognized over time, ratably over the life of the related service contract. Support fees are typically billed on an annual basis, resulting in a contract liability. Shipping and handling costs and incidental expenses billed to customers are recognized as revenue, with the associated cost charged to cost of revenues. We recognize sales, use, and value added taxes billed to our customers on a net basis. Payment terms with customers can vary by customer; however, amounts billed are typically payable within 30 to 90 days, depending on the destination country. We do not typically offer financing as part of our contracts with customers. We incur certain incremental costs to obtain contracts with customers, primarily in the form of sales commissions. Where the amortization period is one year or less, we have elected to apply the practical expedient and recognize the related commissions expense as incurred. Otherwise, such incremental costs are capitalized and amortized over the contract period. Capitalized incremental costs are not material. Product and Software Development Costs Product and software development costs primarily include employee compensation and third-party contracting fees. We do not capitalize product development costs, and we do not generally capitalize development expenses for computer software to be sold, leased, or otherwise marketed as the costs incurred are immaterial for the relatively short period of time between technological feasibility and the completion of software development. Stock-Based Compensation We grant various stock-based compensation awards to our officers, employees, and Board of Directors with service, performance, and market vesting conditions, including stock options, restricted stock units, phantom stock units, and unrestricted stock units (awards). We measure and recognize compensation expense for all awards based on estimated fair values. For awards with only a service condition, we expense stock-based compensation using the straight-line method over the requisite service period for the entire award. For awards with service and performance conditions where vesting is probable, we expense the stock-based compensation on a straight-line basis over the requisite service period for each separately vesting portion of the award. For awards with a market condition, we expense the fair value over the requisite service period. We have elected to account for forfeitures of any awards in stock-based compensation expense prospectively as they occur. The fair value of stock options is estimated at the date of grant using the Black-Scholes option-pricing model. Options to purchase our common stock are granted with an exercise price equal to the market close price of the stock on the date the Board of Directors approves the grant. Options generally become exercisable in three equal annual installments beginning one year from the date of grant and expire 10 years from the date of grant. Expected volatility is based on a combination of the historical volatility of our common stock and the implied volatility of our traded options for the related expected term. We believe this combined approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free interest rate is the rate available as of the award date on zero-coupon U.S. government issues with a term equal to the expected term of the award. The expected term is the weighted average expected term of an award based on the period of time between the date the award is granted and the estimated date the award will be fully exercised. Factors considered in estimating the expected term include historical experience of similar awards, contractual terms, vesting schedules, and expectations of future employee behavior. We have not paid dividends in the past and do not plan to pay dividends in the foreseeable future. The fair value of a restricted stock unit is the market close price of our common stock on the date of grant. Restricted stock units vest over a maximum period of three years. After vesting, the restricted stock units are converted into shares of our common stock on a one-for-one basis and issued to employees. Certain restricted stock units are issued under the Long-Term Performance Restricted Stock Unit Award Agreement and include performance and market conditions. The final number of shares issued will be based on the achievement of financial targets and our total shareholder return relative to the Russell 3000 Index during the performance periods. Due to the presence of a market condition, we utilize a Monte Carlo valuation model to determine the fair value of the awards at the grant date. Expected volatility is based on the historical volatility of our common stock for the related expected term. We believe this approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free interest rate is the rate available as of the grant date on zero-coupon U.S. government issues with a term equal to the expected term of the award. The expected term is the remaining term of an award based on the period of time between the grant date and the date the award is expected to vest. We have not paid dividends in the past and do not plan to pay dividends in the foreseeable future. Phantom stock units are a form of share-based award that are indexed to our stock price and are settled in cash upon vesting and accounted for as liability-based awards. Fair value is remeasured at the end of each reporting period based on the market close price of our common stock. Phantom stock units vest over a maximum period of three years. Since phantom stock units are settled in cash, compensation expense recognized over the vesting period will vary based on changes in the fair value of the awards. The fair value of unrestricted stock awards is the market close price of our common stock on the date of grant, and the awards are deemed fully vested. We expense stock-based compensation at the date of grant for unrestricted stock awards. Excess tax benefits and deficiencies resulting from employee share-based payment are recognized as income tax provision or benefit in the Consolidated Statements of Operations, and as an operating activity on the Consolidated Statements of Cash Flows. We also maintain an Employee Stock Purchase Plan (ESPP) for our employees. Under the terms of the ESPP, employees can deduct up to 10% of eligible compensation to purchase our common stock at a 5% discount from the fair market value of the stock at the end of each fiscal quarter, subject to other limitations under the plan. The sale of the stock to the employees occurs at the beginning of the subsequent quarter. The ESPP is not considered compensatory, and no compensation expense is recognized for sales of our common stock to employees.Income Taxes We account for income taxes using the asset and liability method of accounting. Deferred tax assets and liabilities are recognized based upon anticipated future tax consequences, in each of the jurisdictions that we operate, attributable to: (1) the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases; and (2) net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured annually using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The calculation of our tax liabilities involves applying complex tax regulations in different tax jurisdictions to our tax positions. The effect on deferred tax assets and liabilities of a change in tax legislation and/or rates is recognized in the period that includes the enactment date. A valuation allowance is recognized to reduce the carrying amounts of deferred tax assets if it is not more likely than not that such assets will be realized. We do not recognize tax liabilities on undistributed earnings of international subsidiaries that are permanently reinvested. Foreign Exchange Our consolidated financial statements are reported in U.S. dollars. Assets and liabilities of international subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at the exchange rates in effect on the balance sheet date, or the last business day of the period, if applicable. Revenues and expenses for each subsidiary are translated to U.S. dollars using an average rate for the relevant reporting period. Translation adjustments resulting from this process are included, net of tax, in OCI. Gains and losses that arise from exchange rate fluctuations for monetary asset and liability balances that are not denominated in an entity's functional currency are included within other income (expense), net in the Consolidated Statements of Operations. Currency gains and losses of intercompany balances deemed to be long-term in nature or designated as a hedge of the net investment in international subsidiaries are included, net of tax, in OCI. Foreign currency losses, net of hedging, of $2.8 million, $5.5 million, and $3.0 million were included in other expenses, net, for the years ended December 31, 2020, 2019, and 2018, respectively. Fair Value Measurements For assets and liabilities measured at fair value, the GAAP fair value hierarchy prioritizes the inputs used in different valuation methodologies, assigning the highest priority to unadjusted quoted prices for identical assets and liabilities in actively traded markets (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs consist of quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in non-active markets; and model-derived valuations in which significant inputs are corroborated by observable market data either directly or indirectly through correlation or other means. Inputs may include yield curves, volatility, credit risks, and default rates. 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 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. During our evaluation process we have determined that early adopting would not have had a material impact on our 2020 financial statements. We have also determined that the retrospective portions of this amendment are not applicable to our business. We are still evaluating what impact this amendment will have in future periods, but we 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 or thereafter. 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 |
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Earnings Per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share (EPS):
Stock-based Awards For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase our common stock at the average market price during the period. Related proceeds include the amount the employee must pay upon exercise and the future compensation cost associated with the stock award. Approximately 0.7 million, 0.4 million, and 1.1 million stock-based awards were excluded from the calculation of diluted EPS for the years ended December 31, 2020, 2019, and 2018, respectively, because they were anti-dilutive. These stock-based awards could be dilutive in future periods.
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Certain Balance Sheet Components |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain Balance Sheet Components | A summary of accounts receivable from contracts with customers is as follows:
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Intangible Assets and Liabilities |
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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:
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 18: Sale of Business for additional information on the transaction. Estimated future annual amortization (accretion) is as follows:
We have recognized amortization expense within operating expenses in the Consolidated Statements of Operations. These expenses relate to intangible assets acquired and liabilities assumed as part of business combinations.
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Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | The following table reflects changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019:
The accumulated goodwill impairment losses at December 31, 2020 and 2019 were $676.5 million. The goodwill impairment losses were originally recognized in 2011 and 2013. We recognized a $3.0 million reduction in Device Solutions goodwill as part of our loss on sale of business. Refer to Note 18: Sale of Business for additional information on the transaction. We test goodwill for impairment each year as of October 1, or more frequently should a significant impairment indicator occur. As part of the impairment test, we may elect to perform an assessment of qualitative factors. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit, including goodwill, is less than its carrying amount, or if we elect to bypass the qualitative assessment, we would then proceed with the impairment test. The impairment test involves comparing the fair values of the reporting units to their carrying amounts. If the carrying amount of a reporting unit exceeds its fair value, we first evaluate the long-lived assets within the reporting unit for impairment and then recognize a goodwill impairment loss in an amount equal to any excess. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. We forecast discounted future cash flows at the reporting unit level using risk-adjusted discount rates and estimated future revenues and operating costs, which take into consideration factors such as existing backlog, expected future orders, supplier contracts, and expectations of competitive, business and economic environments. We also identify similar publicly traded companies and develop a correlation, referred to as a multiple, to apply to the operating results of the reporting units. These combined fair values are then reconciled to the aggregate market value of our common stock on the date of valuation, while considering a reasonable control premium. Changes in market demand, fluctuations in the markets in which we operate, the volatility and decline in the worldwide equity markets, and a decline in our market capitalization could unfavorably impact the remaining carrying value of our goodwill, which could have a significant effect on our current and future results of operations and financial position. Due to a decline in our updated long-term forecast for the Device Solutions reporting unit, we completed an interim quantitative goodwill impairment test during the third quarter of 2020. After determining the estimated fair value of this reporting unit, we concluded there was no impairment to be recognized.
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | The components of our borrowings were as follows:
(1) During 2019 we made debt prepayments on the term loan in excess of required principal payments, reducing the current portion of debt to zero at December 31, 2019. Credit Facility On October 18, 2019, we amended our credit facility that was initially entered on January 5, 2018 (together with the amendments, 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. Through the third quarter of 2020, amounts not borrowed under the revolver were subject to a commitment fee, which was paid in arrears on the last day of each fiscal quarter, ranging from 0.15% to 0.25% and drawn amounts were subject to a margin ranging from 1.00% to 1.75%. On October 19, 2020, we completed a second amendment to our 2018 credit facility. This amendment adjusts the maximum total net leverage ratio thresholds for the period beginning with the fourth quarter of 2020 through the fourth quarter of 2021 to allow for increased operational flexibility. The maximum leverage ratio is increased to 4.75:1 for the fourth quarter of 2020 and the first quarter of 2021 and 4.5:1 for the second quarter through the fourth quarter of 2021. An additional level of pricing was added to the existing pricing grid and is effective throughout the remaining term of the 2018 credit facility. Beginning with the fourth quarter of 2020, the commitment fee ranges from 0.15% to 0.30% and drawn amounts are subject to a margin ranging from 1.00% to 2.00%. Debt fees of approximately $1.4 million were incurred for the amendment, as well as other legal and advisory fees. Both the term loan and the revolver may 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 December 31, 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 December 31, 2020, the interest rate for both the term loan and the revolver was 1.65%, which includes the LIBOR rate plus a margin of 1.50%. In March 2020, we drew $400 million in U.S. dollars under the revolver within the 2018 credit facility to increase our cash position and preserve future financial flexibility. During the fourth quarter, we repaid the $400 million under the revolver. At December 31, 2020, there were no amounts outstanding under the revolver, and $64.9 million was utilized by outstanding standby letters of credit, resulting in $435.1 million available for additional borrowings or standby letters of credit under the revolver. At December 31, 2020, $235.1 million was available for additional standby letters of credit under the letter of credit sub-facility and no amounts were outstanding under the swingline sub-facility. Senior Notes In December 2017 and January 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 Silver Spring Networks, Inc., 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 Senior Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our subsidiaries that guarantee the 2018 credit facility. 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. 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 Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | As part of our risk management strategy, we use derivative instruments to hedge certain foreign currency and interest rate exposures. Refer to Note 1: Summary of Significant Accounting Policies, Note 14: Shareholders' Equity, and Note 15: Fair Value 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 are as follows:
The changes in 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. Included in the net unrealized gain (loss) on hedging instruments at December 31, 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 forward and interest rate contracts with four counterparties at December 31, 2020 and five counterparties at December 31, 2019. No derivative asset or liability balance with any of our counterparties was individually significant at December 31, 2020 or 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 December 31, 2020, our LIBOR-based debt balance was $536.1 million. In October 2015, we entered into one interest rate swap, which was effective from 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 the term loan. This 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 recognized 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 one 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 the 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 $0.5 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 matured ratably through the year with final maturity in October 2020. Changes in the fair value of the option contracts were recognized as a component of OCI and were recognized in product cost of revenues when the hedged item affected earnings. As of December 31, 2020, there are no more outstanding foreign exchange option contracts. The before-tax effects of our accounting for derivative instruments designated as hedges on AOCI for the year ended December 31, 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 (expense) in our Consolidated Statements of Operations. We enter into monthly foreign exchange forward contracts, which are not designated for hedge accounting, with the intent to reduce earnings volatility associated with currency exposures. As of December 31, 2020, a total of 39 contracts were offsetting our exposures from the euro, Pound sterling, Canadian dollar, Brazilian real, Mexican peso and various other currencies, with notional amounts ranging from $121,000 to $26.4 million. The effect of our derivative instruments not designated as hedges on the Consolidated Statements of Operations for the year ended December 31, were 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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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans | We 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, 2020. The following tables set forth the components of the changes in benefit obligations and fair value of plan assets:
Amounts recognized on the Consolidated Balance Sheets consist of:
Amounts recognized in OCI (pre-tax) are as follows:
If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the employees' average future service period. The estimated net actuarial loss and prior service cost that will be amortized from AOCI into net periodic benefit cost during 2021 is $2.9 million. 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. The significant actuarial weighted average assumptions used in determining the benefit obligations and net periodic benefit cost for our benefit plans are as follows:
We determine a discount rate for our plans based on the estimated duration of each plan's liabilities. For euro denominated defined benefit pension plans, which represent 92% of our projected benefit obligation, we use discount rates with consideration of the duration of each of the plans, using a hypothetical yield curve developed from euro-denominated AA-rated corporate bond issues. These bonds are assigned different weights to adjust their relative influence on the yield curve, and the highest and lowest yielding 10% of bonds are excluded within each maturity group. The discount rates used, depending on the duration of the plans, were between 0.20% and 0.75%. Our expected rate of return on plan assets is derived from a study of actual historic returns achieved and anticipated future long-term performance of plan assets, specific to plan investment asset category. While the study primarily gives consideration to recent insurers' performance and historical returns, the assumption represents a long-term prospective return. The total accumulated benefit obligation for our defined benefit pension plans was $121.7 million and $105.1 million at December 31, 2020 and 2019. The total obligations and fair value of plan assets for plans with projected benefit obligations and accumulated benefit obligations exceeding the fair value of plan assets are as follows:
Our asset investment strategy focuses on maintaining a portfolio using primarily insurance funds, which are accounted for as investments and measured at fair value, in order to achieve our long-term investment objectives on a risk adjusted basis. Our general funding policy for these qualified pension plans is to contribute amounts sufficient to satisfy regulatory funding standards of the respective countries for each plan. The fair values of our plan investments by asset category are as follows:
The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2020 and 2019.
As the plan assets and contributions are not significant to our total company assets, no further disclosures are considered material. Annual benefit payments for the next 10 years, including amounts to be paid from our assets for unfunded plans and reflecting expected future service, as appropriate, are expected to be paid as follows:
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Stock-Based Compensation |
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Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | We grant stock-based compensation awards, including stock options, restricted stock units, phantom stock, and unrestricted stock units, under the Second Amended and Restated 2010 Stock Incentive Plan (Stock Incentive Plan). 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 December 31, 2020, 5,597,418 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 available for grant is reduced by (i) one share for every one share subject to a stock option or share appreciation right granted under the Plan and (ii) 1.7 shares for every one share of common stock that was subject to an award other than an option or share appreciation right. We also periodically award phantom stock units, which are settled in cash upon vesting and accounted for as liability-based awards, with no impact to the shares available for grant. In addition, we maintain the ESPP, for which 178,159 shares of common stock were available for future issuance at December 31, 2020. ESPP activity and stock-based grants other than stock options and restricted stock units were not significant for the years ended December 31, 2020, 2019, and 2018. Stock-Based Compensation Expense Total stock-based compensation expense and the related tax benefit were as follows:
Stock Options A summary of our stock option activity is as follows:
At December 31, 2020, total unrecognized stock-based compensation expense related to nonvested stock options was $2.6 million, which is expected to be recognized over a weighted average period of approximately 1.9 years. The weighted average assumptions used to estimate the fair value of stock options granted and the resulting weighted average fair value are as follows:
Restricted Stock Units The following table summarizes restricted stock unit activity:
(1) Shares released is presented as gross shares and does not reflect shares withheld by us for employee payroll tax obligations. At December 31, 2020, total unrecognized compensation expense on restricted stock units was $25.9 million, which is expected to be recognized over a weighted average period of approximately 1.7 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:
Phantom Stock Units The following table summarizes phantom stock unit activity:
At December 31, 2020, total unrecognized compensation expense on phantom stock units was $5.2 million, which is expected to be recognized over a weighted average period of approximately 1.8 years. As of December 31, 2020 and 2019, we have recognized a phantom stock liability of $2.7 million and $2.3 million within wages and benefits payable in the Consolidated Balance Sheets.
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Defined Contribution Bonus and Profit Sharing Plans |
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Defined Contribution, Bonus, and Profit Sharing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Contribution, Bonus, and Profit Sharing Plans | Defined Contribution Plans In the United States, United Kingdom, and certain other countries, we make contributions to defined contribution plans. For our U.S. employee savings plan, which represents a majority of our contribution expense, we provide a 75% match on the first 6% of the employee salary deferral, subject to statutory limitations. For our international defined contribution plans, we provide various levels of contributions, based on salary, subject to stipulated or statutory limitations. The expense for our defined contribution plans was as follows:
Bonus and Profit Sharing Plans and Awards We have employee bonus and profit sharing plans in which many of our employees participate, as well as an award program, which allows for recognition of individual employees' achievements. The bonus and profit sharing plans provide award amounts for the achievement of performance and financial targets. As the bonuses are being earned during the year, we estimate a compensation accrual each quarter based on the progress towards achieving the goals, the estimated financial forecast for the year, and the probability of achieving results. Bonus and profit sharing plans and award expense was as follows:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | 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. The following table summarizes the provision (benefit) for U.S. federal, state, and foreign taxes on income from continuing operations:
Subsequent to the issuance of our 2019 financial statements, we determined that a deferred tax liability related to the difference between the book and tax bases of a European subsidiary, initially recorded in 2018, should not have been recognized. Instead, we should have established a valuation allowance against the net operating loss deferred tax asset recognized for that subsidiary. As a result, the valuation allowance, the deferred tax liability, and the related disclosures of movements in those amounts, including foreign currency impacts, have been restated from the amounts previously reported in the 2018 and 2019 tax disclosures to reverse the $117 million deferred tax liability originally recorded in 2018 and to record a $117 million valuation allowance. There is no impact on income tax benefit (provision), net income or the balance sheet presentation of this immaterial misstatement. The change in the valuation allowance does not include the impacts of currency translation adjustments, acquisitions, or significant intercompany transactions. Our tax provision (benefit) as a percentage of income before tax was less than 1%, 28%, and 12% for 2020, 2019, and 2018, respectively. Our actual tax rate differed from the 21% U.S. federal statutory tax rate due to various items. A reconciliation of income taxes at the U.S. federal statutory rate of 21% to the consolidated actual tax rate is as follows:
Deferred tax assets and liabilities consist of the following:
(1)For tax return purposes at December 31, 2020, we had U.S. federal loss carryforwards of $125.3 million, which begin to expire in the year 2021. At December 31, 2020, we have net operating loss carryforwards in Luxembourg of $1.4 billion, the majority of which can be carried forward indefinitely, offset by a full valuation allowance. The remaining portion of the loss carryforwards are composed primarily of losses in various other state and foreign jurisdictions. The majority of these losses can be carried forward indefinitely. At December 31, 2020, there was a valuation allowance of $503.9 million primarily associated with foreign loss carryforwards and foreign tax credit carryforwards (discussed below). (2)For tax return purposes at December 31, 2020, we had: (1) U.S. general business credits of $46.9 million, which begin to expire in 2022; (2) U.S. foreign tax credits of $50.8 million, which begin to expire in 2024; and (3) state tax credits of $38.2 million, which begin to expire in 2021. Changes in the valuation allowance for deferred tax assets are summarized as follows:
We recognize valuation allowances to reduce deferred tax assets to the extent we believe it is more likely than not that a portion of such assets will not be realized. In making such determinations, we consider all available favorable and unfavorable evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and our ability to carry back losses to prior years. We are required to make assumptions and judgments about potential outcomes that lie outside management's control. Our most sensitive and critical factors are the projection, source, and character of future taxable income. Although realization is not assured, management believes it is more likely than not that deferred tax assets, net of valuation allowance, will be realized. The amount of deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward periods are reduced or current tax planning strategies are not implemented. We do not provide U.S. deferred taxes on temporary differences related to our foreign investments that are considered permanent in duration. These temporary differences include undistributed foreign earnings of $18.1 million and $13.7 million at December 31, 2020 and 2019, respectively. Foreign taxes have been provided on these undistributed foreign earnings. As a result of recent changes in U.S. tax legislation, any repatriation of these earnings would not result in additional U.S. federal income tax. We are subject to income tax in the United States and numerous foreign jurisdictions. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve positions and changes to reserves that are considered appropriate. A reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:
If certain unrecognized tax benefits are recognized they would create additional deferred tax assets. These assets would require a full valuation allowance in certain locations based upon present circumstances. We classify interest expense and penalties related to unrecognized tax benefits and interest income on tax overpayments as components of income tax expense. The net interest and penalties expense recognized were as follows:
At December 31, 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. We are subject to income tax examination by tax authorities in our major tax jurisdictions as follows:
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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 February 24, 2021, 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:
Warranty expense decreased during the year ended December 31, 2020 compared with the same period in 2019. The lower costs in 2020 are primarily the result of incremental specific reserves recognized in 2019 including $3.9 million for gas interface modules in North America Networked Solutions. Warranty expense decreased during the year ended December 31, 2019 compared with the same period in 2018. This decrease was primarily driven by a warranty reserve of $11.4 million for replacement of certain gas meters in our Device Solutions segment recognized in 2018. Health Benefits We are self-insured for a substantial portion of the cost of our U.S. employee group health insurance. We purchase insurance from a third-party, which provides individual and aggregate stop loss protection for these costs. Each reporting period, we expense the costs of our health insurance plan including paid claims, the change in the estimate of incurred but not reported (IBNR) claims, taxes, and administrative fees (collectively, the plan costs). Plan costs were as follows:
IBNR accrual, which is included in wages and benefits payable, was as follows:
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Restructuring |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | 2020 Projects On September 17, 2020, our Board of Directors approved a restructuring plan (the 2020 Projects), which includes activities that continue our efforts to optimize our global supply chain and manufacturing operations, sales and marketing organizations, and other overhead. These projects are scheduled to be substantially complete by the end of 2022. We estimate pre-tax restructuring charges of $55 million to $65 million, of which approximately $35 million to $45 million will result in cash expenditures, and the remainder relates to non-cash charges. Of the total expected charges, $43.2 million was recognized in 2020. The largest component of expected remaining costs to be recognized is related to a non-cash cumulative translation adjustment charge. Many of the affected employees are represented by unions or works councils, which require consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of charges, total expected charges, cost recognized, and planned savings in certain jurisdictions. The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2020 Projects were as follows:
2018 Projects In February 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 have substantially completed expense recognition on the plan as of the end of 2020. In the second quarter of 2020, we reversed expenses for employee severance costs and asset impairments we will no longer incur as a result of selling our operations 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:
All prior restructuring plans are substantially complete and are not presented below. The following table summarizes the activity within the restructuring related balance sheet accounts for the 2020 Projects and the 2018 Projects during the year ended December 31, 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, costs to exit the facilities once the operations in those facilities have ceased, and other costs associated with the liquidation of any effected legal entities. 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 does not impact the results of our operating segments. The current portion of restructuring liabilities were $31.7 million and $18.9 million as of December 31, 2020 and 2019, respectively. 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 were $40.9 million and $37.2 million as of December 31, 2020 and 2019, respectively. 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 December 31, 2020 or 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 2020. Accumulated 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 December 31, 2020 and 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 the 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, electricity, and water meters for a variety of global markets and adhering to regulations and standards within those markets, as well as our heat and allocation products; communicating meters that are not a part of an Itron end-to-end 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 (e.g., 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 includes products and software for the implementation, installation, and management of communicating devices and data networks. 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, smart street lighting and an ever-growing set of smart city applications such as traffic management, smart parking, air quality monitoring, electric vehicle charging, customer engagement, digital signage, acoustic (e.g., gunshot) detection, and leak detection and mitigation for both gas and water systems. Our IIoT platform allows all of these industry and smart city applications to be run and managed on a single, multi-purpose network. 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; our Distributed Intelligence suite of applications 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 year ended December 31, 2020 includes a $59.8 million loss from the sale of our Latin American business. Refer to Note 18: Sale of Business for additional information on the transaction. For all periods presented, no single customer represents more than 10% of total Company. We currently buy a majority of our integrated circuit board assemblies from two 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, we sold our Latin American operations. We continue to sell into the region through an exclusive distributor. Property, plant, and equipment, net, by geographic area were as follows:
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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Revenues |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 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 December 31, 2020, total contract assets were $49.8 million and total contract liabilities were $148.2 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. The cumulative catch-up adjustments relate to contract modifications, measure-of-progress changes, and changes in the estimate of the transaction price. 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 $1.0 billion for the next twelve months and approximately $1.5 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 16: 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 | 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 pays a royalty on certain products manufactured by Accell using licensed Company intellectual property. In addition, Accell serves as the exclusive distributor for our Device Solutions, Networked Solutions, and Outcomes product and service offerings in Latin America. Based on the sales price and the net assets of the five subsidiaries sold, we recognized a total loss of $59.8 million during the year ended in 2020. The loss 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 along with 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. At the close date of the transaction, we received $2.5 million of the sales price in cash. 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 sale of price consisted of a cash received of $2.5 million, deferred purchase price note of $2.0 million and a working capital note of $21.1 million, both of which were to be paid in 2020, and $9.4 million for minimum royalties and tax credits to be paid in 2021 through 2024. During 2020, we received $4.8 million of payments related to the deferred purchase price note and working capital amount. In January 2021, we agreed to extend the payment terms on the outstanding working capital balance of $18.4 million. Accell agreed to make monthly payments including interest through September 2022. We received the first two of these monthly payments with interest in January and February 2021. The loss on sale of business was calculated as follows:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Leases | Leases We lease certain factories, service and distribution locations, offices, and equipment under operating leases. Our operating leases have initial lease terms ranging from 1 to 9 years, some of which include options to extend or renew the leases for up to 10 years. Certain lease agreements contain provisions for future rent increases. Our leases do not contain material residual value guarantees, and finance leases are not material. The components of operating lease expense are as follows:
Supplemental cash flow information related to operating leases is as follows:
Supplemental balance sheet information related to operating leases is as follows:
Amounts due under operating lease liabilities as of December 31, 2020 are as follows:
Operating lease rental expense for factories, service and distribution locations, office, and equipment prior to adoption of ASC 842 was as follows:
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting, Policy | Financial Statement Preparation The consolidated financial statements presented in this Annual Report include the Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income (Loss), Consolidated Statements of Equity, and Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019, and 2018 and the Consolidated Balance Sheets as of December 31, 2020 and 2019 of Itron, Inc. and its subsidiaries, prepared in accordance with U.S. generally accepted accounting principles (GAAP).
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Use of Estimates, Policy | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of significant estimates include revenue recognition, warranty, restructuring, income taxes, business combinations, goodwill and intangible assets, defined benefit pension plans, contingencies, and stock-based compensation. Due to various factors affecting future costs and operations, actual results could differ materially from these estimates. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties | 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. While certain of our European factories were closed during portions of the first half of 2020 due to government actions and local conditions, all were open by May and throughout the remainder of the year. Any further closures that may be imposed on us could impact our results for 2021. Incremental costs we have incurred related to COVID-19, such as personal protective equipment, increased cleaning and sanitizing of our facilities, and other such items, have not been material to date. At this time, we have not identified any significant decrease in long-term customer demand for our products and services. Certain of our customers’ projects and deployments have shifted into 2021 and beyond.
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Basis of Consolidation, and Noncontrolling Interests | Basis of Consolidation We consolidate all entities in which we have a greater than 50% ownership interest or in which we exercise control over the operations. We use the equity method of accounting for entities in which we have a 20% to 50% investment and exercise significant influence. Entities in which we have less than a 20% investment and where we do not exercise significant influence are accounted for under the fair value method. Intercompany transactions and balances are eliminated upon consolidation. Noncontrolling Interests In several of our consolidated international subsidiaries, we have joint venture partners, who are minority shareholders. Although these entities are not wholly owned by Itron, we consolidate them because we have a greater than 50% ownership interest or because we exercise control over the operations. The noncontrolling interest balance is adjusted each period to reflect the allocation of net income (loss) and other comprehensive income (loss) attributable to the noncontrolling interests, as shown in our Consolidated Statements of Operations and our Consolidated Statements of Comprehensive Income (Loss), as well as contributions from and distributions to the owners. The noncontrolling interest balance in our Consolidated Balance Sheets represents the proportional share of the equity of the joint venture entities, which is attributable to the minority shareholders.
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Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid instruments with remaining maturities of three months or less at the date of acquisition to be cash equivalents.
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Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy | 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:
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Accounts Receivable and Allowance for Doubtful Accounts | 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 credit losses 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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Inventories | Inventories Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method. Cost includes raw materials and labor, plus applied direct and indirect overhead costs. Net realizable value is the estimated selling price in the normal course of business, minus the cost of completion, disposal and transportation.
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Derivative Instruments | Derivative Instruments All derivative instruments, whether designated in hedging relationships or not, are recognized on the Consolidated Balance Sheets at fair value as either assets or liabilities. The fair values of our derivative instruments are determined using the fair value measurements of significant other observable inputs (Level 2), as defined by GAAP. The fair value of our derivative instruments may switch between an asset and a liability depending on market circumstances at the end of the period. We include the effect of our counterparty credit risk based on current published credit default swap rates when the net fair value of our derivative instruments is in a net asset position and the effect of our own nonperformance risk when the net fair value of our derivative instruments is in a net liability position. For any derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. For any derivative designated as a cash flow hedge, changes in the fair value of the derivative are recognized as a component of other comprehensive income (loss) (OCI) and are recognized in earnings when the hedged item affects earnings. For a hedge of a net investment, any unrealized gain or loss from the foreign currency revaluation of the hedging instrument is reported in OCI as a net unrealized gain or loss on derivative instruments. Upon termination of a net investment hedge, the net derivative gain/loss will remain in accumulated other comprehensive income (loss) (AOCI) until such time when earnings are impacted by a sale or liquidation of the associated operations. We classify cash flows from our derivative programs as cash flows from operating activities in the Consolidated Statements of Cash Flows. Derivatives are not used for trading or speculative purposes. Our derivatives are with credit-worthy multinational commercial banks, with which we have master netting agreements; however, our derivative positions are not recognized on a net basis in the Consolidated Balance Sheets. There are no credit-risk related contingent features within our derivative instruments. Refer to Note 7: Derivative Financial Instruments and Note 14: Shareholders' Equity for further disclosures of our derivative instruments and their impact on OCI.
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Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 30 years for buildings and improvements and three years to 10 years for machinery and equipment, computers and software, and furniture. Leasehold improvements are capitalized and depreciated over the term of the applicable lease, including renewable periods if reasonably certain, or over the useful lives, whichever is shorter. Construction in process represents capital expenditures incurred for assets not yet placed in service. Costs related to internally developed software and software purchased for internal uses are capitalized and are amortized over the estimated useful lives of the assets. Repair and maintenance costs are recognized as incurred. We have no major planned maintenance activities. We review long-lived assets for impairment whenever events or circumstances indicate the carrying amount of an asset group may not be recoverable. Assets held for sale are classified within other current assets in the Consolidated Balance Sheets, are reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. Gains and losses from asset disposals and impairment losses are classified within the Consolidated Statements of Operations according to the use of the asset, except those gains and losses recognized in conjunction with our restructuring activities, which are classified within restructuring expense.
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Prepaid Debt Fees | Prepaid Debt Fees Prepaid debt fees for term debt represent the capitalized direct costs incurred related to the issuance of debt and are recognized as a deduction from the carrying amount of the corresponding debt liability. We have elected to present prepaid debt fees for revolving debt within other long-term assets in the Consolidated Balance Sheets. These costs are amortized to interest expense over the terms of the respective borrowings, including contingent maturity or call features, using the effective interest method or the straight-line method when associated with a revolving credit facility. When debt is repaid early, the related portion of unamortized prepaid debt fees is written off and included in interest expense.
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Business Combinations | Business Combinations On the date of acquisition, the assets acquired, liabilities assumed, and any noncontrolling interests in the acquiree are recognized at their fair values. The acquiree's results of operations are also included as of the date of acquisition in our consolidated results. Intangible assets that arise from contractual/legal rights, or are capable of being separated, as well as in-process research and development (IPR&D), are measured and recognized at fair value, and amortized over the estimated useful life. IPR&D is not amortized until such time as the associated development projects are completed or terminated. If a development project is completed, the IPR&D is reclassified as a core technology intangible asset and amortized over its estimated useful life. If the development project is terminated, the recognized value of the associated IPR&D is immediately recognized. If practicable, assets acquired and liabilities assumed arising from contingencies are measured and recognized at fair value. If not practicable, such assets and liabilities are measured and recognized when it is probable that a gain or loss has occurred and the amount can be reasonably estimated. The residual balance of the purchase price, after fair value allocations to all identified assets and liabilities, represents goodwill. Acquisition-related costs are recognized as incurred. Integration costs associated with an acquisition are generally recognized in periods subsequent to the acquisition date, and changes in deferred tax asset valuation allowances and acquired income tax uncertainties, including penalties and interest, after the measurement period are recognized as a component of the provision for income taxes. Our acquisitions may include contingent consideration, which requires us to recognize the fair value of the estimated liability at the time of the acquisition. Subsequent changes in the estimate of the amount to be paid under the contingent consideration arrangement are recognized in the Consolidated Statements of Operations. We estimate the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on information available at that time utilizing either a cost or income approach. The determination of the fair value is judgmental in nature and involves the use of significant estimates and assumptions. Contingent consideration is recognized at fair value as of the date of the acquisition with adjustments occurring after the purchase price allocation period, which could be up to one year, recognized in earnings. Changes to valuation allowances on acquired deferred tax assets that occur after the acquisition date are recognized in the provision for, or benefit from, income taxes. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change materially between the preliminary allocation and end of the purchase price allocation period. Any changes in these estimates may have a material effect on our consolidated operating results or financial position.
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Lessee, Leases | Leases We determine if an arrangement is a lease at inception. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: (1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment), and (2) the customer has the right to control the use of the identified asset. Operating leases are included in operating lease right-of-use (ROU) assets, other current liabilities, and operating lease liabilities on our Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, other long-term assets, other current liabilities, and other long-term obligations on our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We use the rate implicit in the lease agreement when readily determinable. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is the estimated rate of interest we expect to pay on a collateralized basis over a similar term, based on the information available at the lease commencement date. The Operating lease ROU asset also includes any lease payments made and is reduced by lease incentives received and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements that include lease and nonlease components. When nonlease components are fixed, we have elected the practical expedient to account for lease and nonlease components as a single lease component, except for leases embedded in service contracts. All leases with a lease term that is greater than one month are subject to recognition and measurement on the balance sheet, except where we have leases in service contracts with contract manufacturers. For leases with contract manufacturers, we have elected to utilize the short-term lease exemption. Lease expense for variable lease payments, where the timing or amount of the payment is not fixed, are recognized when the obligation is incurred. Variable lease payments generally arise in our net lease arrangements where executory and other lease-related costs are billed to Itron when incurred by the lessor.
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Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets may result from our business acquisitions. Intangible assets may also result from the purchase of assets and intellectual property in a transaction that does not qualify as a business combination. We use estimates, including estimates of useful lives of intangible assets, the amount and timing of related future cash flows, and fair values of the related operations, in determining the value assigned to goodwill and intangible assets. Our finite-lived intangible assets are amortized over their estimated useful lives based on estimated discounted cash flows, generally three years to ten years for core-developed technology and customer contracts and relationships. Finite-lived intangible assets are tested for impairment at the asset group level when events or changes in circumstances indicate the carrying value may not be recoverable. Indefinite-lived intangible assets are tested for impairment annually, when events or changes in circumstances indicate the asset may be impaired, or when their useful lives are determined to be no longer indefinite. Goodwill is assigned to our reporting units based on the expected benefit from the synergies arising from each business combination, determined by using certain financial metrics, including the forecasted discounted cash flows associated with each reporting unit. Each reporting unit corresponds with its respective operating segment. We test goodwill for impairment each year as of October 1, or more frequently should a significant impairment indicator occur. As part of the impairment test, we may elect to perform an assessment of qualitative factors. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit, including goodwill, is less than its carrying amount, or if we elect to bypass the qualitative assessment, we would then proceed with the quantitative impairment test. The impairment test involves comparing the fair values of the reporting units to their carrying amounts. If the carrying amount of a reporting unit exceeds its fair value, we first evaluate the long-lived assets within the reporting unit for impairment and then recognize goodwill impairment loss in an amount equal to any excess. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. We forecast discounted future cash flows at the reporting unit level using risk-adjusted discount rates and estimated future revenues and operating costs, which take into consideration factors such as existing backlog, expected future orders, supplier contracts, and expectations of competitive and economic environments. We also identify similar publicly traded companies and develop a correlation, referred to as a multiple, to apply to the operating results of the reporting units. These combined fair values are then reconciled to the aggregate market value of our common stock on the date of valuation, while considering a reasonable control premium.
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Contingencies | Contingencies A loss contingency is recognized if it is probable that an asset has been impaired or a liability has been incurred, and the amount of the loss can be reasonably estimated. We evaluate, among other factors, the degree of probability of an unfavorable outcome and our ability to make a reasonable estimate of the amount of the ultimate loss. Loss contingencies that we determine to be reasonably possible, but not probable, are disclosed but not recognized. Legal costs to defend against contingent liabilities are recognized as incurred.
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Compensation Related Costs, Policy | Bonus and Profit SharingWe have various employee bonus and profit sharing plans, which provide award amounts for the achievement of financial and nonfinancial targets. If management determines it is probable that the targets will be achieved, and the amounts can be reasonably estimated, a compensation accrual is recognized based on the proportional achievement of the financial and nonfinancial targets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty | Warranty We offer standard warranties on our hardware products and large application software products. We accrue the estimated cost of new product warranties based on historical and projected product performance trends and costs during the warranty period. Testing of new products in the development stage helps identify and correct potential warranty issues prior to manufacturing. Quality control efforts during manufacturing reduce our exposure to warranty claims. When testing or quality control efforts fail to detect a fault in one of our products, we may experience an increase in warranty claims. We track warranty claims to identify potential warranty trends. If an unusual trend is noted, an additional warranty accrual would be recognized if a failure event is probable and the cost can be reasonably estimated. When new products are introduced, our process relies on historical averages of similar products until sufficient data is available. As actual experience on new products becomes available, it is used to modify the historical averages to ensure the expected warranty costs are within a range of likely outcomes. Management regularly evaluates the sufficiency of the warranty provisions and makes adjustments when necessary. The long-term warranty balance includes estimated warranty claims beyond one year. Warranty expense is classified within cost of revenues.
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Costs Associated with Exit or Disposal Activity or Restructuring | Restructuring We recognize a liability for costs associated with an exit or disposal activity under a restructuring project in the period in which the liability is incurred. Employee termination benefits considered postemployment benefits are accrued when the obligation is probable and estimable, such as benefits stipulated by human resource policies and practices or statutory requirements. One-time termination benefits are recognized at the date the employee is notified. If the employee must provide future service greater than 60 days, such benefits are recognized ratably over the future service period. For contract termination costs, we recognize a liability upon the termination of a contract in accordance with the contract terms or the cessation of the use of the rights conveyed by the contract, whichever occurs later. Asset impairments associated with a restructuring project are determined at the asset group level. An impairment may be recognized for assets that are to be abandoned, are to be sold for less than net book value, or are held for sale in which the estimated proceeds less costs to sell are less than the net book value. We may also recognize impairment on an asset group, which is held and used, when the carrying value is not recoverable and exceeds the asset group's fair value. If an asset group is considered a business, a portion of our goodwill balance is allocated to it based on relative fair value. If the sale of an asset group under a restructuring project results in proceeds that exceed the net book value of the asset group, the resulting gain is recognized within restructuring expense in the Consolidated Statements of Operations.
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Defined Benefit Pension Plans | Defined Benefit Pension Plans We sponsor both funded and unfunded defined benefit pension plans for certain international employees. We recognize a liability for the projected benefit obligation in excess of plan assets. We recognize an asset when plan assets exceed the projected benefit obligation. We also recognize the funded status of our defined benefit pension plans on our Consolidated Balance Sheets and recognize as a component of OCI, net of tax, the actuarial gains or losses and prior service costs or credits, if any, which arise during the period but that are not recognized as components of net periodic benefit cost. If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the employees' average future service period.
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Share Repurchase Policy | Share Repurchase Plans From time to time, we may repurchase shares of Itron common stock under programs authorized by our Board of Directors. Share repurchases are made in the open market or in privately negotiated transactions and in accordance with applicable securities laws. Under applicable Washington State law, shares repurchased are retired and not displayed separately as treasury stock on the financial statements; the value of the repurchased shares is deducted from common stock.
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Revenue Recognition | Product Revenues and Service Revenues Product revenues include sales from standard and smart meters, systems or software, and any associated implementation and installation revenue. Service revenues include sales from post-sale maintenance support, consulting, outsourcing, and managed services. Revenue Recognition On January 1, 2018, we adopted Revenue from Contracts with Customers (ASC 606) using the modified retrospective method. The majority of our revenues consist primarily of hardware sales, but may also include the license of software, software implementation services, cloud services and Software-as-a-Service (SaaS), project management services, installation services, consulting services, post-sale maintenance support, and extended or customer-specific warranties. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. In determining whether the definition of a contract has been met, we consider whether the arrangement creates enforceable rights and obligations, which involves evaluation of contractual terms that would allow for the customer to terminate the agreement. If the customer has the unilateral right to terminate the agreement without providing further consideration to us, the agreement would not be considered to meet the definition of a contract. Many of our revenue arrangements involve multiple performance obligations as our hardware and services are often sold together. Separate contracts entered into with the same customer (or related parties of the customer) at or near the same time are accounted for as a single contract when one or more of the following criteria are met: •The contracts are negotiated as a package with a single commercial objective; •The amount of consideration to be paid in one contract depends on the price or performance of the other contract; or •The goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a single performance obligation. Once the contract has been defined, we evaluate whether the promises in the contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment, and the decision to separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recognized in a given period. Some of our contracts contain a significant service of integrating, customizing or modifying goods or services in the contract, in which case the goods or services would be combined into a single performance obligation. It is common that we may promise to provide multiple distinct goods or services, in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services. For goods or services where we have observable standalone sales, the observable standalone sales are used to determine the standalone selling price. For the majority of our goods and services, we do not have observable standalone sales. As a result, we estimate the standalone selling price using either the adjusted market assessment approach or the expected cost plus a margin approach. Approaches used to estimate the standalone selling price for a given good or service will maximize the use of observable inputs and considers several factors, including our pricing practices, costs to provide a good or service, the type of good or service, and availability of other transactional data, among others. We determine the estimated standalone selling prices of goods or services used in our allocation of arrangement consideration on an annual basis or more frequently if there is a significant change in our business or if we experience significant variances in our transaction prices. Many of our contracts with customers include variable consideration, which can include liquidated damage provisions, rebates and volume and early payment discounts. Some of our contracts with customers contain clauses for liquidated damages related to the timing of delivery or milestone accomplishments, which could become material in an event of failure to meet the contractual deadlines. At the inception of the arrangement and on an ongoing basis, we evaluate the probability and magnitude of having to pay liquidated damages. We estimate variable consideration using the expected value method, taking into consideration contract terms, historical customer behavior, and historical sales. In the case of liquidated damages, we also take into consideration progress towards meeting contractual milestones, including whether milestones have not been achieved, specified rates, if applicable, stated in the contract, and history of paying liquidated damages to the customer or similar customers. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. In the normal course of business, we do not accept product returns unless the item is defective as manufactured. We establish provisions for estimated returns and warranties. In addition, we do not typically provide customers with the right to a refund. Hardware revenue is recognized at a point in time. Transfer of control is typically at the time of shipment, receipt by the customer, or, if applicable, upon receipt of customer acceptance provisions. We will recognize revenue prior to receipt of customer acceptance for hardware in cases where the customer acceptance provision is determined to be a formality. Transfer of control would not occur until receipt of customer acceptance in hardware arrangements where such provisions are subjective or where we do not have history of meeting the acceptance criteria. Perpetual software licenses are considered to be a right to use intellectual property and are recognized at a point in time. Transfer of control is considered to be at the point at which it is available to the customer to download and use or upon receipt of customer acceptance. In certain contracts, software licenses may be sold with implementation services that include a significant service of integrating, customizing or modifying the software. In these instances, the software license is combined into single performance obligation with the implementation services and recognized over time as the implementation services are performed. Hardware and software licenses (when not combined with professional services) are typically billed when shipped and revenue recognized at a point-in-time. As a result, the timing of revenue recognition and invoicing does not have a significant impact on contract assets and liabilities. Professional services, which include implementation, project management, installation, and consulting services are recognized over time. We measure progress towards satisfying these performance obligations using input methods, most commonly based on the costs incurred in relation to the total expected costs to provide the service. We expect this method to best depict our performance in transferring control of services promised to the customer or represents a reasonable proxy for measuring progress. The estimate of expected costs to provide services requires judgment. Cost estimates take into consideration our historical experience and the specific scope requested by the customer and are updated quarterly. We may also offer professional services on a stand-ready basis over a specified period of time, in which case revenue would be recognized ratably over the term. Invoicing of these services is commensurate with performance and occurs on a monthly basis. As such, these services do not have a significant impact on contract assets and contract liabilities. Cloud services and SaaS arrangements where customers have access to certain of our software within a cloud-based IT environment that we manage, host, and support are offered to customers on a subscription basis. Revenue for the cloud services and SaaS offerings are generally recognized over time, ratably over the contact term commencing with the date the services are made available to the customer. Services, including professional services, cloud services, and SaaS arrangements, are commonly billed on a monthly basis in arrears and typically result in an unbilled receivable, which is not considered a contract asset as our right to consideration is unconditional. Certain of our revenue arrangements include an extended or customer-specific warranty provision that covers all or a portion of a customer's replacement or repair costs beyond the standard warranty period. Whether or not the extended warranty is separately priced in the arrangement, such warranties are considered to be a separate good or service, and a portion of the transaction price is allocated to this extended warranty performance obligation. This revenue is recognized ratably over the extended warranty coverage period. Hardware and software post-sale maintenance support fees are recognized over time, ratably over the life of the related service contract. Support fees are typically billed on an annual basis, resulting in a contract liability. Shipping and handling costs and incidental expenses billed to customers are recognized as revenue, with the associated cost charged to cost of revenues. We recognize sales, use, and value added taxes billed to our customers on a net basis. Payment terms with customers can vary by customer; however, amounts billed are typically payable within 30 to 90 days, depending on the destination country. We do not typically offer financing as part of our contracts with customers. We incur certain incremental costs to obtain contracts with customers, primarily in the form of sales commissions. Where the amortization period is one year or less, we have elected to apply the practical expedient and recognize the related commissions expense as incurred. Otherwise, such incremental costs are capitalized and amortized over the contract period. Capitalized incremental costs are not material.
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Product and Software Development Costs | Product and Software Development Costs Product and software development costs primarily include employee compensation and third-party contracting fees. We do not capitalize product development costs, and we do not generally capitalize development expenses for computer software to be sold, leased, or otherwise marketed as the costs incurred are immaterial for the relatively short period of time between technological feasibility and the completion of software development.
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Stock-based Compensation | Stock-Based Compensation We grant various stock-based compensation awards to our officers, employees, and Board of Directors with service, performance, and market vesting conditions, including stock options, restricted stock units, phantom stock units, and unrestricted stock units (awards). We measure and recognize compensation expense for all awards based on estimated fair values. For awards with only a service condition, we expense stock-based compensation using the straight-line method over the requisite service period for the entire award. For awards with service and performance conditions where vesting is probable, we expense the stock-based compensation on a straight-line basis over the requisite service period for each separately vesting portion of the award. For awards with a market condition, we expense the fair value over the requisite service period. We have elected to account for forfeitures of any awards in stock-based compensation expense prospectively as they occur. The fair value of stock options is estimated at the date of grant using the Black-Scholes option-pricing model. Options to purchase our common stock are granted with an exercise price equal to the market close price of the stock on the date the Board of Directors approves the grant. Options generally become exercisable in three equal annual installments beginning one year from the date of grant and expire 10 years from the date of grant. Expected volatility is based on a combination of the historical volatility of our common stock and the implied volatility of our traded options for the related expected term. We believe this combined approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free interest rate is the rate available as of the award date on zero-coupon U.S. government issues with a term equal to the expected term of the award. The expected term is the weighted average expected term of an award based on the period of time between the date the award is granted and the estimated date the award will be fully exercised. Factors considered in estimating the expected term include historical experience of similar awards, contractual terms, vesting schedules, and expectations of future employee behavior. We have not paid dividends in the past and do not plan to pay dividends in the foreseeable future. The fair value of a restricted stock unit is the market close price of our common stock on the date of grant. Restricted stock units vest over a maximum period of three years. After vesting, the restricted stock units are converted into shares of our common stock on a one-for-one basis and issued to employees. Certain restricted stock units are issued under the Long-Term Performance Restricted Stock Unit Award Agreement and include performance and market conditions. The final number of shares issued will be based on the achievement of financial targets and our total shareholder return relative to the Russell 3000 Index during the performance periods. Due to the presence of a market condition, we utilize a Monte Carlo valuation model to determine the fair value of the awards at the grant date. Expected volatility is based on the historical volatility of our common stock for the related expected term. We believe this approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free interest rate is the rate available as of the grant date on zero-coupon U.S. government issues with a term equal to the expected term of the award. The expected term is the remaining term of an award based on the period of time between the grant date and the date the award is expected to vest. We have not paid dividends in the past and do not plan to pay dividends in the foreseeable future. Phantom stock units are a form of share-based award that are indexed to our stock price and are settled in cash upon vesting and accounted for as liability-based awards. Fair value is remeasured at the end of each reporting period based on the market close price of our common stock. Phantom stock units vest over a maximum period of three years. Since phantom stock units are settled in cash, compensation expense recognized over the vesting period will vary based on changes in the fair value of the awards. The fair value of unrestricted stock awards is the market close price of our common stock on the date of grant, and the awards are deemed fully vested. We expense stock-based compensation at the date of grant for unrestricted stock awards. Excess tax benefits and deficiencies resulting from employee share-based payment are recognized as income tax provision or benefit in the Consolidated Statements of Operations, and as an operating activity on the Consolidated Statements of Cash Flows. We also maintain an Employee Stock Purchase Plan (ESPP) for our employees. Under the terms of the ESPP, employees can deduct up to 10% of eligible compensation to purchase our common stock at a 5% discount from the fair market value of the stock at the end of each fiscal quarter, subject to other limitations under the plan. The sale of the stock to the employees occurs at the beginning of the subsequent quarter. The ESPP is not considered compensatory, and no compensation expense is recognized for sales of our common stock to employees.
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Income Tax, Policy | Income Taxes We account for income taxes using the asset and liability method of accounting. Deferred tax assets and liabilities are recognized based upon anticipated future tax consequences, in each of the jurisdictions that we operate, attributable to: (1) the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases; and (2) net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured annually using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The calculation of our tax liabilities involves applying complex tax regulations in different tax jurisdictions to our tax positions. The effect on deferred tax assets and liabilities of a change in tax legislation and/or rates is recognized in the period that includes the enactment date. A valuation allowance is recognized to reduce the carrying amounts of deferred tax assets if it is not more likely than not that such assets will be realized. We do not recognize tax liabilities on undistributed earnings of international subsidiaries that are permanently reinvested.
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Foreign Exchange | Foreign Exchange Our consolidated financial statements are reported in U.S. dollars. Assets and liabilities of international subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at the exchange rates in effect on the balance sheet date, or the last business day of the period, if applicable. Revenues and expenses for each subsidiary are translated to U.S. dollars using an average rate for the relevant reporting period. Translation adjustments resulting from this process are included, net of tax, in OCI. Gains and losses that arise from exchange rate fluctuations for monetary asset and liability balances that are not denominated in an entity's functional currency are included within other income (expense), net in the Consolidated Statements of Operations. Currency gains and losses of intercompany balances deemed to be long-term in nature or designated as a hedge of the net investment in international subsidiaries are included, net of tax, in OCI. Foreign currency losses, net of hedging, of $2.8 million, $5.5 million, and $3.0 million were included in other expenses, net, for the years ended December 31, 2020, 2019, and 2018, respectively.
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Fair Value Measurement | Fair Value Measurements For assets and liabilities measured at fair value, the GAAP fair value hierarchy prioritizes the inputs used in different valuation methodologies, assigning the highest priority to unadjusted quoted prices for identical assets and liabilities in actively traded markets (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs consist of quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in non-active markets; and model-derived valuations in which significant inputs are corroborated by observable market data either directly or indirectly through correlation or other means. Inputs may include yield curves, volatility, credit risks, and default rates.
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New Accounting Pronouncements | 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 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. During our evaluation process we have determined that early adopting would not have had a material impact on our 2020 financial statements. We have also determined that the retrospective portions of this amendment are not applicable to our business. We are still evaluating what impact this amendment will have in future periods, but we 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 or thereafter. 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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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restrictions on 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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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net |
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Allowance for Credit Losses on Financing Receivables |
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Inventories |
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Property, Plant, and Equipment |
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Depreciation Expense |
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Schedule of Intangible Assets (Tables) |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | 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 Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future annual amortization (accretion) is as follows:
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Finite-lived Intangible Assets Amortization Expense |
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Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table reflects changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The components of our borrowings were as follows:
(1) During 2019 we made debt prepayments on the term loan in excess of required principal payments, reducing the current portion of debt to zero at December 31, 2019.
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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) |
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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 are as follows:
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Accumulated OCI for Derivative and Nonderivative Instruments Designated as Hedging Instruments, Net of Tax | The changes in 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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Derivative Instruments, Gain (Loss) | The before-tax effects of our accounting for derivative instruments designated as hedges on AOCI for the year ended December 31, 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 for the year ended December 31, were as follows:
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Defined Benefit Pension Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Benefit Obligation and Fair Value of Plan Assets | The following tables set forth the components of the changes in benefit obligations and fair value of plan assets:
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Schedule of Amounts Recognized in the Consolidated Balance Sheets | Amounts recognized on the Consolidated Balance Sheets consist of:
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in OCI (pre-tax) are as follows:
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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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Schedule of Assumptions Used | The significant actuarial weighted average assumptions used in determining the benefit obligations and net periodic benefit cost for our benefit plans are as follows:
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The total obligations and fair value of plan assets for plans with projected benefit obligations and accumulated benefit obligations exceeding the fair value of plan assets are as follows:
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Fair values of the assets held by the postretirement benefits plans by asset category | The fair values of our plan investments by asset category are as follows:
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Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2020 and 2019.
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Schedule of Expected Benefit Payments | Annual benefit payments for the next 10 years, including amounts to be paid from our assets for unfunded plans and reflecting expected future service, as appropriate, are expected to be paid as follows:
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Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense [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:
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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:
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Schedule of Other Share-based Compensation, Activity | The following table summarizes phantom stock unit activity:
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Defined Contribution, Bonus, and Profit Sharing (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Contribution, Bonus, and Profit Sharing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Costs of Retirement Plans | The expense for our defined contribution plans was as follows:
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Schedule of Bonus and Profit Sharing Expenses | Bonus and profit sharing plans and award expense was as follows:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Provision | The following table summarizes the provision (benefit) for U.S. federal, state, and foreign taxes on income from continuing operations:
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Income Tax Rate Reconciliation | A reconciliation of income taxes at the U.S. federal statutory rate of 21% to the consolidated actual tax rate is as follows:
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Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of the following:
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Summary of Valuation Allowance | Changes in the valuation allowance for deferred tax assets are summarized as follows:
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Unrecognized Tax Benefits Related To Uncertain Tax Positions | A reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:
We file income tax returns in various jurisdictions. We are subject to income tax examination by tax authorities in our major tax jurisdictions as follows:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 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:
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Health Benefit Plan Costs and Incurred But Not Reported Accrual Balance | Plan costs were as follows:
IBNR accrual, which is included in wages and benefits payable, was as follows:
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Restructuring (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 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 2020 Projects and the 2018 Projects during the year ended December 31, 2020:
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2018 Projects [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Project [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs |
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2020 Projects [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Project [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs |
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Shareholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the components of AOCI, net of tax, were as follows:
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Income Tax (Provision) Benefit Related To OCI | 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 (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values Of Financial Instruments by Balance Sheet Grouping | The fair values at December 31, 2020 and 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) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | Property, plant, and equipment, net, by geographic area were as follows:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation And Amortization Expense Associated With Segments | 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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Revenues (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [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:
|
Sale of Business (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | The loss on sale of business was calculated as follows:
|
Leases (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 |
Dec. 31, 2019 |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The components of operating lease expense are as follows:
Supplemental cash flow information related to operating leases is as follows:
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Assets And Liabilities, Leases | Supplemental balance sheet information related to operating leases is as follows:
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Lessee, Operating Lease, Liability, Maturity | Amounts due under operating lease liabilities as of December 31, 2020 are as follows:
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Schedule of Rent Expense | Operating lease rental expense for factories, service and distribution locations, office, and equipment prior to adoption of ASC 842 was as follows:
|
Summary of Significant Accounting Policies - Basis of Consolidation Policy Additional Information (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Maximum [Member] | |
Basis of Consolidation [Abstract] | |
Ownership interest to use equity method | 50.00% |
Ownership interest to use cost method | 20.00% |
Minimum [Member] | |
Basis of Consolidation [Abstract] | |
Ownership interest to be held for consolidation | 50.00% |
Ownership interest to use equity method | 20.00% |
Summary of Significant Accounting Policies (Details) - Risk and Uncertainties |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Risks and Uncertainties in Entity's Business | 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. While certain of our European factories were closed during portions of the first half of 2020 due to government actions and local conditions, all were open by May and throughout the remainder of the year. Any further closures that may be imposed on us could impact our results for 2021. Incremental costs we have incurred related to COVID-19, such as personal protective equipment, increased cleaning and sanitizing of our facilities, and other such items, have not been material to date. At this time, we have not identified any significant decrease in long-term customer demand for our products and services. Certain of our customers’ projects and deployments have shifted into 2021 and beyond. |
Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 206,933 | $ 149,904 | $ 120,221 | |
Restricted cash included in other current assets | 0 | 0 | 51 | |
Restricted cash | 0 | 0 | 2,056 | |
Total cash, cash equivalents, and restricted cash | $ 206,933 | $ 149,904 | $ 122,328 | $ 487,335 |
Summary of Significant Accounting Policies - Property, Plant, and Equipment Policy Additional Information (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Minimum [Member] | Machinery and Equipment, Computers and Software, and Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Maximum [Member] | Machinery and Equipment, Computers and Software, and Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Summary of Significant Accounting Policies - Goodwill and Intangibles Assets Policy Additional Information (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 3 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 10 years |
Summary of Significant Accounting Policies - Restructuring (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Remaining service period of terminated employees | 60 days |
Summary of Significant Accounting Policies - Revenue Recognition Policy Additional Information (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Minimum [Member] | |
Deferred Revenue Arrangement [Line Items] | |
Payment terms | 30 days |
Maximum [Member] | |
Deferred Revenue Arrangement [Line Items] | |
Payment terms | 90 days |
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights | Options generally become exercisable in three equal annual installments beginning one year from the date of grant |
Expiration period | 10 years |
Employee Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
ESPP, maximum percentage of employee salary eligible for participation | 10.00% |
Discount from market price, purchase date | 5.00% |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Summary of Significant Accounting Policies - Foreign Exchange Policy Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Accounting Policies [Abstract] | |||
Foreign currency transaction gain (loss), realized | $ 2,800 | $ 5,500 | $ 3,000 |
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Earnings Per Share [Abstract] | |||
Net income (loss) available to common shareholders | $ (57,955) | $ 49,006 | $ (99,250) |
Weighted average common shares outstanding - Basic (in shares) | 40,253 | 39,556 | 39,244 |
Dilutive effect of stock-based awards (in shares) | 0 | 424 | 0 |
Weighted average common shares outstanding - Diluted (in shares) | 40,253 | 39,980 | 39,244 |
Earnings (loss) per common share - Basic (in dollars per share) | $ (1.44) | $ 1.24 | $ (2.53) |
Earnings (loss) per common share - Diluted (in dollars per share) | $ (1.44) | $ 1.23 | $ (2.53) |
Earnings Per Share - Stock-based Awards (Details) - shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Earnings Per Share [Abstract] | |||
Stock-based awards excluded from diluted EPS calculation (antidilutive) (in shares) | 0.7 | 0.4 | 1.1 |
Certain Balance Sheet Components - Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 318,269 | $ 415,887 |
Unbilled receivables | 51,559 | 57,038 |
Total accounts receivable, net | $ 369,828 | $ 472,925 |
Certain Balance Sheet Components - Accounts Receivable Allowance (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 1,312 | $ 3,064 |
Certain Balance Sheet Components - Summary of the Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 3,064 | $ 6,331 | $ 3,957 |
Provision for (release of) doubtful accounts, net | (299) | (1,511) | 3,874 |
Accounts written-off | (1,463) | (1,749) | (1,281) |
Effect of change in exchange rates | 10 | (7) | (219) |
Ending balance | $ 1,312 | $ 3,064 | $ 6,331 |
Certain Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 114,058 | $ 120,861 |
Work in process | 8,094 | 11,105 |
Finished goods | 60,225 | 95,930 |
Total inventories | $ 182,377 | $ 227,896 |
Certain Balance Sheet Components - Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Machinery and equipment | $ 334,050 | $ 323,003 |
Computers and software | 115,776 | 109,924 |
Buildings, furniture, and improvements | 155,676 | 149,471 |
Land | 14,303 | 14,988 |
Construction in progress, including purchased equipment | 31,425 | 54,490 |
Total cost | 651,230 | 651,876 |
Accumulated depreciation | (443,414) | (418,648) |
Property, plant, and equipment, net | $ 207,816 | $ 233,228 |
Certain Balance Sheet Components - Depreciation Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation expense | $ 52,579 | $ 50,114 | $ 50,784 |
Intangible Assets and Liabilities - Summary of Intangible Asset Account Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Beginning balance, Finite-lived intangible assets, gross | $ 979,814 | $ 981,160 | |
Effect of change in exchange rates | 38,363 | (1,346) | |
Ending balance, Finite-lived intangible assets, gross | 1,000,037 | 979,814 | |
FiniteLivedIntangibleAssetsDisposedInSaleOfBusiness | (18,140) | 0 | |
Finite-lived intangible liabilities, gross | (23,900) | (23,900) | $ (23,900) |
Effect of change in exchange rates | 0 | 0 | |
Intangible assets, gross (excluding goodwill) | $ 1,000,037 | $ 979,814 |
Intangible Assets and Liabilities - Amortization Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Amortization of intangible assets | $ 44,711 | $ 64,286 | $ 71,713 |
Intangible Assets and Liabilities - Estimated Future Annual Amortization Expense (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2021 Amortization | $ 38,033 | |
2021 Accretion | (1,962) | |
2021 Amortization, net | 36,071 | |
2022 Amortization | 27,599 | |
2022 Accretion | (459) | |
2022 Amortization, net | 27,140 | |
2023 Amortization | 19,955 | |
2023 Accretion | 0 | |
2023 Amortization, net | 19,955 | |
2024 Amortization | 15,746 | |
2024 Accretion | 0 | |
2024 Amortization, net | 15,746 | |
2025 Amortization | 14,742 | |
2025 Accretion | 0 | |
2025 Amortization, net | 14,742 | |
Beyond 2025 Amortization | 16,880 | |
Beyond 2025 Accretion | 0 | |
Beyond 2025 Amortization, net | 16,880 | |
Total intangible assets subject to amortization (accretion) | 132,955 | $ 185,097 |
Finite-lived intangible liabilities, net | (2,421) | $ (10,450) |
Finite-lived intangible assets (liabilities), net | $ 130,534 |
Intangible Assets and Liabilities - Intangible Assets Narrative (Details) $ in Thousands |
Jun. 25, 2020
USD ($)
|
---|---|
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Disposal Group, Including Discontinued Operation, Intangible Assets | $ 800 |
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $ 1,103,907 | $ 1,116,533 |
Goodwill acquired | (5,978) | |
Effect of change in exchange rates | 31,009 | (6,648) |
Goodwill ending balance | 1,131,916 | $ 1,103,907 |
Goodwill, Written off Related to Sale of Business Unit | $ 3,000 |
Goodwill - Goodwill Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Impaired, Accumulated Impairment Loss | $ 676.5 | $ 676.5 |
Debt - Schedule of Debt (Details) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
Jan. 19, 2018 |
Dec. 22, 2017 |
||
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Notes payable | $ 100,000,000 | $ 300,000,000 | ||||
Total debt | $ 936,094,000 | |||||
Current portion of debt | 18,359,000 | $ 0 | ||||
Long-term debt, net | 902,577,000 | 932,482,000 | ||||
USD Denominated Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loans payable to bank | 536,094,000 | 550,156,000 | ||||
Debt issuance costs, noncurrent, net | 3,469,000 | 3,661,000 | ||||
Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | 0 | 0 | ||||
Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Notes payable | 400,000,000 | 400,000,000 | ||||
Debt issuance costs, noncurrent, net | 11,689,000 | 14,013,000 | ||||
Secured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | 936,094,000 | 950,156,000 | ||||
Current portion of debt | [1] | 18,359,000 | 0 | |||
Long-term debt, net | $ 902,577,000 | $ 932,482,000 | ||||
|
Debt - Schedule of Long-Term Debt Maturities (Details) $ in Thousands |
Dec. 31, 2020
USD ($)
|
---|---|
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2021 | $ 18,359 |
2022 | 44,063 |
2023 | 44,063 |
2024 | 429,609 |
2025 | 0 |
Thereafter | 400,000 |
Total minimum payments on debt | $ 936,094 |
Derivative Financial Instruments - Effect of Net Investment Hedge Nonderivative Financial Instrument on OCI (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | $ (204,672) | ||
Unrealized gain (loss) on derivative instruments | (7,002) | $ 4,061 | $ 2,586 |
Realized (gains) losses reclassified into net income (loss) | 6,104 | (5,985) | (2,351) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | (138,526) | (204,672) | |
Accumulated Net Gain (Loss) from Derivative and Nonderivative Instruments Designated as Hedging Instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | (15,103) | (13,179) | (13,414) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | $ (16,001) | $ (15,103) | $ (13,179) |
Derivative Financial Instruments - Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Assets Presented in the Consolidated Balance Sheets | $ 52 | $ 4,297 |
Derivative Financial Instruments | (52) | (56) |
Cash Collateral Received | 0 | 0 |
Net Amount | $ 0 | $ 4,241 |
Derivative Financial Instruments - Offsetting of Derivative Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Liabilities Presented in the Consolidated Balance Sheets | $ 2,636 | $ 162 |
Derivative Financial Instruments | (52) | (56) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 2,584 | $ 106 |
Derivative Financial Instruments - Derivatives Not Designated as Hedging Relationships (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Other Income (Expense) [Member] | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Gain (Loss) on foreign currency derivative instruments | $ (4,538) | $ (2,425) | $ 3,448 |
Defined Benefit Pension Plans - Change in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1, | $ 114,218 | $ 105,570 | |
Service cost | 4,027 | 3,711 | $ 4,034 |
Interest cost | 1,817 | 2,278 | 2,324 |
Actuarial (gain) loss | 9,323 | 8,798 | |
Benefits paid | 2,820 | 2,970 | |
Foreign currency exchange rate changes | 9,594 | (1,984) | |
Curtailment | (589) | (36) | |
Settlement | (78) | (234) | |
Other | (2,760) | (915) | |
Benefit obligation at December 31, | 132,732 | 114,218 | 105,570 |
Fair value of plan assets at January 1, | 12,665 | 11,890 | |
Actual return on plan assets | 389 | 1,134 | |
Company contributions | 349 | 289 | |
Benefits paid | 298 | 411 | |
Foreign currency exchange rate changes | (177) | (237) | |
Release for Divestiture | (2,722) | 0 | |
Fair value of plan assets at December 31, | 10,206 | 12,665 | $ 11,890 |
Net pension benefit obligation at fair value | $ 122,526 | $ 101,553 |
Defined Benefit Pension Plans - Schedule of Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Retirement Benefits [Abstract] | ||
Plan assets in other long-term assets | $ 0 | $ 44 |
Current portion of pension benefit obligation in wages and benefits payable | 3,069 | 2,885 |
Long-term portion of pension benefit obligation | 119,457 | 98,712 |
Pension benefit obligation, net | $ 122,526 | $ 101,553 |
Defined Benefit Pension Plans - Schedule of Amounts Recognized in Other Comprehensive Income (loss), pre-tax (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Retirement Benefits [Abstract] | |||
Net actuarial (gain) loss | $ 8,734 | $ 8,762 | $ (3,191) |
Settlement (gain) loss | (286) | (250) | (1) |
Curtailment (gain) loss | 0 | 0 | (1) |
Plan asset (gain) loss | 64 | (526) | 724 |
Amortization of net actuarial loss | (2,255) | (1,648) | (1,533) |
Amortization of prior service cost | (68) | (68) | (61) |
Other | 0 | (160) | 124 |
Other comprehensive (income) loss | $ 6,189 | $ 6,110 | $ (3,939) |
Defined Benefit Pension Plans - Schedule of Net Periodic Pension Benefit Costs (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Retirement Benefits [Abstract] | |||
Service cost | $ 4,027 | $ 3,711 | $ 4,034 |
Interest cost | 1,817 | 2,278 | 2,324 |
Expected return on plan assets | (453) | (608) | (670) |
Amortization of prior service costs | 68 | 68 | 61 |
Amortization of actuarial net loss | 2,255 | 1,648 | 1,533 |
Settlement | 286 | 250 | 1 |
Curtailment | 0 | 0 | 1 |
Net periodic benefit cost | $ 8,000 | $ 7,347 | $ 7,284 |
Defined Benefit Pension Plans - Schedule of Significant Actuarial Weighted Average Assumptions Used in Determining the Benefit Obligation and Net Periodic Benefit Cost (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Retirement Benefits [Abstract] | |||
Discount rate | 1.10% | 1.76% | 2.24% |
Expected annual rate of compensation increase | 3.68% | 3.76% | 3.60% |
Discount rate | 1.76% | 2.24% | 2.21% |
Expected rate of return on plan assets | 4.89% | 5.19% | 5.58% |
Expected annual rate of compensation increase | 3.76% | 3.60% | 3.64% |
Defined Benefit Pension Plans - Schedule of Accumulated Benefit Obligation in Excess of the Fair Value of Plan Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 132,732 | $ 110,656 |
Accumulated benefit obligation | 121,747 | 101,611 |
Fair value of plan assets | $ 10,206 | $ 9,059 |
Defined Benefit Pension Plans - Expected Future Annual Benefit Payments (Details) $ in Thousands |
Dec. 31, 2020
USD ($)
|
---|---|
Retirement Benefits [Abstract] | |
2021 | $ 3,995 |
2022 | 3,934 |
2023 | 4,082 |
2024 | 5,309 |
2025 | 5,360 |
2026-2030 | $ 28,493 |
Defined Benefit Pension Plans - Accumulated Benefit Obligation Additional Details (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Retirement Benefits [Abstract] | ||
Defined benefit plan, expected amortization, next fiscal year | $ 2.9 | |
Defined benefit plan, accumulated benefit obligation | $ 121.7 | $ 105.1 |
Defined Benefit Pension Plans - Significant Actuarial Weighted Assumptions (Discount Rate) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 1.10% | 1.76% | 2.24% |
Percentage of Benefit Plans Denominated in Euro [Domain] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of benefit plans denominated in euro | 92 | ||
Shorter duration euro denominated defined benefit plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 0.20% | ||
Longer duration euro denominated defined benefit plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 0.75% |
Stock-Based Compensation - Stock-Based Compensation Expense and Related Tax Benefit (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Stock options | $ 1,944 | $ 1,770 | $ 3,675 |
Restricted stock units | 22,285 | 24,560 | 26,859 |
Unrestricted stock awards | 824 | 630 | 729 |
Phantom stock units | 3,720 | 3,301 | 2,165 |
Total stock-based compensation | 28,773 | 30,261 | 33,428 |
Related tax benefit | $ 5,086 | $ 5,390 | $ 6,019 |
Stock-Based Compensation - Stock Option Black Scholes Option Pricing Model Assumptions (Details) - Share-based Payment Arrangement, Option [Member] |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Expected volatility | 32.30% | 31.70% | 30.50% |
Risk-free interest rate | 1.30% | 1.70% | 2.80% |
Expected term (years) | 5 years 3 months 18 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Stock-Based Compensation - Long-Term Performance Restricted Stock Unit Award Monte Carlo Pricing Model Assumptions (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 83.42 | $ 62.97 | $ 57.48 |
Long Term Performance Restricted Stock Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 44.90% | 31.40% | 28.00% |
Risk-free interest rate | 1.00% | 2.50% | 2.20% |
Expected term (years) | 1 year 9 months 18 days | 1 year 7 months 6 days | 2 years 1 month 6 days |
Granted (in dollars per share) | $ 93.97 | $ 61.25 | $ 78.56 |
Defined Contribution, Bonus, and Profit Sharing Plans - Schedule of Defined Contribution Plans Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Defined Contribution, Bonus, and Profit Sharing [Abstract] | |||
Defined contribution plans expense | $ 18,424 | $ 17,882 | $ 11,593 |
Defined Contribution, Bonus, and Profit Sharing Plans - Schedule of Bonus and Profit Sharing Plans Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Defined Contribution, Bonus, and Profit Sharing [Abstract] | |||
Bonus and profit sharing plans expense | $ 11,455 | $ 48,435 | $ 15,466 |
Defined Contribution, Bonus, and Profit Sharing Plans - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Defined Contribution, Bonus, and Profit Sharing [Abstract] | |
Employer matching contribution, percentage of match | 75.00% |
Employer matching contribution, percentage of employees' gross pay | 6.00% |
Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Current: | |||
Federal | $ (963) | $ 4,859 | $ (7,695) |
State and local | 1,731 | 2,179 | (362) |
Foreign | 12,409 | 13,771 | 14,618 |
Total current | 13,177 | 20,809 | 6,561 |
Deferred: | |||
Federal | (2,852) | 2,334 | (17,463) |
State and local | (3,340) | (1,846) | (4,492) |
Foreign | (60,444) | (1,518) | (139,915) |
Total deferred | (66,636) | (1,030) | (161,870) |
Change in valuation allowance | 53,697 | 838 | 142,739 |
Total provision (benefit) from income taxes | $ 238 | $ 20,617 | $ (12,570) |
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
|||||
---|---|---|---|---|---|---|---|
Deferred tax assets | |||||||
Loss carryforwards | $ 423,013 | [1] | $ 343,614 | ||||
Tax credits | 88,433 | [2] | 98,098 | ||||
Accrued expenses | 47,569 | 46,846 | |||||
Pension plan benefits expense | 21,735 | 17,310 | |||||
Warranty reserves | 11,083 | 12,961 | |||||
Depreciation and amortization | 6,363 | 6,112 | |||||
Equity compensation | 4,701 | 4,685 | |||||
Inventory valuation | 1,799 | 1,069 | |||||
Deferred revenue | 9,705 | 8,951 | |||||
Leases | 10,872 | 13,876 | |||||
Other deferred tax assets, net | 10,817 | 9,777 | |||||
Total deferred tax assets | 636,090 | 563,299 | |||||
Valuation allowance | (503,859) | [1] | (427,030) | ||||
Total deferred tax assets, net of valuation allowance | 132,231 | 136,269 | |||||
Deferred tax liabilities | |||||||
Depreciation and amortization | (39,995) | (54,663) | |||||
Leases | (10,046) | (12,976) | |||||
Other deferred tax liabilities, net | (7,969) | (6,540) | |||||
Total deferred tax liabilities | (58,010) | (74,179) | |||||
Net deferred tax assets | 74,221 | $ 62,090 | |||||
Deferred tax assets, tax credit carryforwards, general business | [2] | 46,900 | |||||
Deferred tax assets, tax credit carryforwards, foreign | [2] | 50,800 | |||||
Deferred tax assets, tax credit carryforwards, other | [2] | 38,200 | |||||
U.S. federal | |||||||
Deferred tax liabilities | |||||||
Loss carryforwards by Jurisdiction | [1] | 125,300 | |||||
LUXEMBOURG | |||||||
Deferred tax liabilities | |||||||
Loss carryforwards by Jurisdiction | [1] | $ 1,400,000 | |||||
|
Income Taxes - Valuation and Qualifying Accounts (Details) - SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 427,030 | $ 437,149 | $ 285,784 |
Other adjustments | 23,132 | (10,957) | 8,626 |
Additions charged to costs and expenses | 53,697 | 838 | 142,739 |
Balance at end of period, noncurrent | $ 503,859 | $ 427,030 | $ 437,149 |
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | $ 121,715 | $ 112,558 | $ 56,702 |
Gross increase to positions in prior years | 633 | 1,067 | 22,943 |
Gross decrease to positions in prior years | (2,140) | (3,296) | (24,949) |
Gross increases to current period tax positions | 14,821 | 13,762 | 63,869 |
Audit settlements | (795) | 0 | (2,977) |
Decrease related to lapsing of statute of limitations | (2,381) | (1,574) | (1,368) |
Effect of change in exchange rates | 4,057 | (802) | (1,662) |
Unrecognized tax benefits, end of period | 135,910 | 121,715 | 112,558 |
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate | 134,473 | 120,410 | 111,224 |
Net interest and penalties expense (benefit) | 400 | 708 | $ (990) |
Accrued interest | 3,432 | 2,849 | |
Accrued penalties | $ 1,645 | $ 1,681 |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Effective Income Tax Rate Reconciliation, Percent | 1.00% | 28.00% | 12.00% |
Deferred tax liabilities, net | $ (58,010) | $ (74,179) | |
Valuation allowance, deferred tax asset, increase (decrease), amount | (53,697) | (838) | $ (142,739) |
Revision of Prior Period, Adjustment | |||
Deferred tax liabilities, net | 117,000 | ||
Valuation allowance, deferred tax asset, increase (decrease), amount | 117,000 | ||
Undistributed Earnings of Foreign Subsidiaries and Foreign Corporate Joint Ventures [Member] | |||
Undistributed earnings of foreign subsidiaries | $ 18,100 | $ 13,700 |
Commitments and Contingencies - Warranty Account Accrual Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Movement in Product Warranty Accrual [Roll Forward] | |||
Beginning balance | $ 53,241 | $ 60,443 | $ 34,862 |
Assumed liabilities from acquisition | 0 | 0 | 12,946 |
New product warranties | 3,616 | 5,202 | 3,772 |
Other adjustments and expirations, net | 7,736 | 15,695 | 22,741 |
Claims activity | (25,582) | (27,916) | (12,753) |
Effect of change in exchange rates | 2,379 | (183) | (1,125) |
Ending balance | 41,390 | 53,241 | 60,443 |
Less: current portion of warranty | 28,329 | 38,509 | 47,205 |
Long-term warranty | 13,061 | 14,732 | 13,238 |
Total warranty expense | $ 11,539 | $ 17,975 | $ 26,513 |
Commitments and Contingencies - Warranty Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Loss Contingencies [Line Items] | |||
Other adjustments and expirations, net | $ 7,736 | $ 15,695 | $ 22,741 |
Device Solutions [Member] | |||
Loss Contingencies [Line Items] | |||
Other adjustments and expirations, net | $ 11,400 | ||
North America [Member] | Networked Solutions Segment [Member] | |||
Loss Contingencies [Line Items] | |||
Other adjustments and expirations, net | $ 3,900 |
Commitments and Contingencies - Health Benefit Plan Costs (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Plan costs | $ 36,672 | $ 33,611 | $ 41,543 |
Commitments and Contingencies - Incurred But Not Reported Health Benefit Cost Accrual (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
IBNR accrual | $ 3,507 | $ 3,171 |
Restructuring - Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Sep. 17, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve, noncurrent | $ 40,900 | $ 37,200 | ||
Restructuring reserve, current | 31,700 | 18,900 | ||
Costs charged to expense | 37,013 | 6,278 | $ 77,183 | |
2020 Projects [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Expected Costs at December 31, 2020 | 59,677 | |||
Costs charged to expense | $ 43,200 | $ 43,232 | $ 0 | |
Minimum [Member] | 2020 Projects [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Expected Costs at December 31, 2020 | 55,000 | |||
Restructuring Reserve, Expected Cash Settlements | 35,000 | |||
Maximum [Member] | 2020 Projects [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Expected Costs at December 31, 2020 | 65,000 | |||
Restructuring Reserve, Expected Cash Settlements | $ 45,000 |
Shareholders' Equity - Preferred Stock Information (Details) - $ / shares |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Stockholders' Equity Note [Abstract] | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Shareholders' Equity - Stock Repurchase Authorization (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2019 |
Mar. 14, 2019 |
|
Equity [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 50,000 | |
Stock Repurchased During Period, Shares | 529,396 | |
Treasury Stock Acquired, Average Cost Per Share | $ 47.22 | |
Stock Repurchased During Period, Value | $ 25,000 |
Segment Information - Revenues By Region (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Revenues from External Customers [Line Items] | |||
Total revenues | $ 2,173,350,000 | $ 2,502,470,000 | $ 2,376,117,000 |
United States and Canada [Member] | |||
Revenues from External Customers [Line Items] | |||
Total revenues | 1,434,577,000 | 1,629,742,000 | 1,442,792,000 |
EMEA [Member] | |||
Revenues from External Customers [Line Items] | |||
Total revenues | 594,264,000 | 663,851,000 | 733,732,000 |
Other Countries [Member] | |||
Revenues from External Customers [Line Items] | |||
Total revenues | $ 144,509,000 | $ 208,877,000 | $ 199,593,000 |
- Property, Plant, and Equipment By Location (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Schedule of Property, Plant, and Equipment by Location | ||
Property, plant, and equipment, net | $ 207,816 | $ 233,228 |
UNITED STATES [Member] | ||
Schedule of Property, Plant, and Equipment by Location | ||
Property, plant, and equipment, net | 100,381 | 99,615 |
Outside United States [Member] | ||
Schedule of Property, Plant, and Equipment by Location | ||
Property, plant, and equipment, net | $ 107,435 | $ 133,613 |
Segment Information - Segment Results Narrative (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020
$ / shares
|
Dec. 31, 2019
$ / shares
|
Dec. 31, 2018
$ / shares
|
|
Segment Reporting Information [Line Items] | |||
Number of operating segments | 3 | ||
Earnings (loss) per common share - Basic (in dollars per share) | $ (1.44) | $ 1.24 | $ (2.53) |
Earnings (loss) per common share - Diluted (in dollars per share) | $ (1.44) | $ 1.23 | $ (2.53) |
Revenue Benchmark [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of total company revenue represented by one customer | 10.00% |
Revenues - Contract with Customer, Asset and Liability Rollforward (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Beginning balance, January 1, 2020 | $ 88,215 |
Revenues recognized from beginning contract liability | (83,530) |
Cumulative catch-up adjustments | (13,372) |
Increases due to amounts collected or due | 309,613 |
Revenues recognized from current period increases | (198,190) |
Other | (4,348) |
Ending balance, December 31, 2020 | $ 98,388 |
Revenues - Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, asset, gross | $ 49.8 | $ 50.7 |
Contract with customer, liability | $ 148.2 | $ 138.9 |
Sale of Business (Details) - Discontinued Operations, Disposed of by Sale $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 25, 2020
USD ($)
numberOfSubsidiaries
|
Sep. 30, 2020
USD ($)
|
|
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 | $ (59,800) | |
Currency translation adjustment loss | 52,074 | |
Goodwill allocated | 3,000 | |
Portion of sales price received on closing | 2,500 | |
Cash included in net assets sold | 6,100 | |
Cash outflow at closing | 3,600 | |
Deferred purchase price note | 2,000 | |
Minimum royalties and tax credits to be paid | 9,400 | |
Working capital | $ 21,100 | |
Payments received from disposal | $ 4,800 |
Sale of Business - Loss on Sale of Business (Details) - Discontinued Operations, Disposed of by Sale $ in Thousands |
Jun. 25, 2020
USD ($)
|
---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Sales price | $ 35,008 |
Net assets sold (including working capital) | (38,636) |
Currency translation adjustment loss | 52,074 |
Goodwill allocated | (3,000) |
Legal fees | 1,115 |
Total loss on sale of business | $ (59,817) |
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Leases [Abstract] | ||
Operating Lease, Cost | $ 22,081 | $ 23,221 |
Variable Lease, Cost | 2,582 | 2,103 |
Lease, Cost, Total | 24,663 | 25,324 |
Operating Lease, Payments | 20,678 | 19,899 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 13,051 | 23,511 |
Operating Lease, Right-of-Use Asset | 76,276 | 79,773 |
Operating Lease, Liability, Current | 16,243 | 17,049 |
Operating Lease, Liability, Noncurrent | 66,823 | 68,919 |
Total operating lease liability | $ 83,066 | $ 85,968 |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 7 months 6 days | 5 years 10 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.50% | 4.90% |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 76,276 | $ 79,773 |
Operating Lease, Liability, Current | 16,243 | 17,049 |
Operating Lease, Liability, Noncurrent | 66,823 | 68,919 |
Total operating lease liability | $ 83,066 | $ 85,968 |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 7 months 6 days | 5 years 10 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.50% | 4.90% |
Leases - Operating Lease Maturities (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
2021 | $ 18,271 | |
2022 | 16,001 | |
2023 | 15,144 | |
2024 | 13,745 | |
2025 | 13,242 | |
Thereafter | 17,484 | |
Total lease payments | 93,887 | |
Less: imputed interest | (10,821) | |
Total operating lease liability | $ 83,066 | $ 85,968 |
Leases - Rental Expense (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Leases [Abstract] | |
Rental expense | $ 24,453 |
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