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Segment Information
 12 Months Ended
Dec. 31, 2020
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:
Year Ended December 31,
In thousands202020192018
Product revenues
Device Solutions$684,517 $847,580 $916,809 
Networked Solutions1,148,698 1,322,382 1,133,919 
Outcomes55,958 50,433 44,730 
Total Company$1,889,173 $2,220,395 $2,095,458 
Service revenues
Device Solutions$9,478 $11,301 $16,556 
Networked Solutions100,704 94,872 90,225 
Outcomes173,995 175,902 173,878 
Total Company$284,177 $282,075 $280,659 
Total revenues
Device Solutions$693,995 $858,881 $933,365 
Networked Solutions1,249,402 1,417,254 1,224,144 
Outcomes229,953 226,335 218,608 
Total Company$2,173,350 $2,502,470 $2,376,117 
Gross profit
Device Solutions$86,859 $152,562 $187,254 
Networked Solutions432,906 518,749 482,471 
Outcomes82,402 81,008 60,594 
Total Company$602,167 $752,319 $730,319 
Operating income (loss)
Device Solutions$40,769 $97,753 $130,988 
Networked Solutions308,099 397,325 360,779 
Outcomes47,619 43,803 16,634 
Corporate unallocated(406,882)(406,198)(558,093)
Total Company(10,395)132,683 (49,692)
Total other income (expense)(46,244)(59,651)(59,459)
Income (loss) before income taxes$(56,639)$73,032 $(109,151)

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:

Year Ended December 31,
In thousands202020192018
United States and Canada$1,434,577 $1,629,742 $1,442,792 
Europe, Middle East, and Africa594,264 663,851 733,732 
Asia Pacific and Latin America (1)
144,509 208,877 199,593 
Total Company$2,173,350 $2,502,470 $2,376,117 
(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:
At December 31,
In thousands20202019
United States$100,381 $99,615 
Outside United States107,435 133,613 
Total Company$207,816 $233,228 

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:
Year Ended December 31,
In thousands202020192018
Device Solutions$25,058 $25,542 $25,022 
Networked Solutions16,965 13,004 12,671 
Outcomes5,348 5,363 6,572 
Corporate unallocated49,919 70,491 78,232 
Total Company$97,290 $114,400 $122,497