QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | |||||||||||||||||
Emerging growth company |
Page | |||||
Item 1: Financial Statements (Unaudited) | |||||
Item 4: Controls and Procedures | |||||
Item 1: Legal Proceedings | |||||
Item 1A: Risk Factors | |||||
Item 5: Other Information | |||||
Item 6: Exhibits | |||||
Three Months Ended March 31, | |||||||||||
In thousands, except per share data | 2021 | 2020 | |||||||||
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 | |||||||||||
Other income (expense) | |||||||||||
Interest income | |||||||||||
Interest expense | ( | ( | |||||||||
Other income (expense), net | ( | ||||||||||
Total other income (expense) | ( | ( | |||||||||
Income before income taxes | |||||||||||
Income tax provision | ( | ( | |||||||||
Net income | |||||||||||
Net income attributable to noncontrolling interests | |||||||||||
Net income attributable to Itron, Inc. | $ | $ | |||||||||
Net income per common share - Basic | $ | $ | |||||||||
Net income per common share - Diluted | $ | $ | |||||||||
Weighted average common shares outstanding - Basic | |||||||||||
Weighted average common shares outstanding - Diluted |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||
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 | March 31, 2021 | December 31, 2020 | |||||||||
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, 2021 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net stock issued and repurchased | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||
Stock issued related to equity offering | |||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of warrants | |||||||||||||||||||||||||||||||||||||||||
Purchases of convertible note hedge contracts, net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Registration fee | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2021 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Itron, Inc. Shareholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
In thousands | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2020 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net stock issued and repurchased | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2020 | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Non-cash operating lease expense | |||||||||||
Stock-based compensation | |||||||||||
Amortization of prepaid debt fees | |||||||||||
Deferred taxes, net | |||||||||||
Loss on sale of business | |||||||||||
Restructuring, non-cash | ( | ( | |||||||||
Other adjustments, net | ( | ||||||||||
Changes in operating assets and liabilities, net of sale of business: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ||||||||||
Other current assets | ( | ||||||||||
Other long-term assets | ( | ( | |||||||||
Accounts payable, other current liabilities, and taxes payable | ( | ||||||||||
Wages and benefits payable | ( | ||||||||||
Unearned revenue | |||||||||||
Warranty | ( | ( | |||||||||
Other operating, net | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Investing activities | |||||||||||
Net proceeds related to the sale of business | |||||||||||
Acquisitions of property, plant, and equipment | ( | ( | |||||||||
Other investing, net | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities | |||||||||||
Proceeds from borrowings | |||||||||||
Payments on debt | ( | ||||||||||
Issuance of common stock | |||||||||||
Proceeds from common stock offering | |||||||||||
Proceeds from sale of warrants | |||||||||||
Purchases of convertible note hedge contracts | ( | ||||||||||
Repurchase of common stock | ( | ||||||||||
Prepaid debt fees | ( | ( | |||||||||
Other financing, net | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | ( | ( | |||||||||
Increase in cash and cash equivalents | |||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid (received) during the period for: | |||||||||||
Income taxes, net | $ | $ | ( | ||||||||
Interest |
Three Months Ended March 31, | |||||||||||
In thousands, except per share data | 2021 | 2020 | |||||||||
Net income available to common shareholders | $ | $ | |||||||||
Weighted average common shares outstanding - Basic | |||||||||||
Dilutive effect of stock-based awards | |||||||||||
Dilutive effect of convertible notes | |||||||||||
Weighted average common shares outstanding - Diluted | |||||||||||
Net income per common share - Basic | $ | $ | |||||||||
Net income per common share - Diluted | $ | $ |
Accounts receivable, net | |||||||||||
In thousands | March 31, 2021 | December 31, 2020 | |||||||||
Trade receivables (net of allowance of $ | $ | $ | |||||||||
Unbilled receivables | |||||||||||
Total accounts receivable, net | $ | $ |
Allowance for credit losses account activity | Three Months Ended March 31, | ||||||||||
In thousands | 2021 | 2020 | |||||||||
Beginning balance | $ | $ | |||||||||
Provision for (release of) doubtful accounts, net | ( | ||||||||||
Accounts written-off | ( | ( | |||||||||
Effect of change in exchange rates | ( | ( | |||||||||
Ending balance | $ | $ |
Inventories | |||||||||||
In thousands | March 31, 2021 | December 31, 2020 | |||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total inventories | $ | $ |
Property, plant, and equipment, net | |||||||||||
In thousands | March 31, 2021 | December 31, 2020 | |||||||||
Machinery and equipment | $ | $ | |||||||||
Computers and software | |||||||||||
Buildings, furniture, and improvements | |||||||||||
Land | |||||||||||
Construction in progress, including purchased equipment | |||||||||||
Total cost | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Property, plant, and equipment, net | $ | $ |
Depreciation expense | Three Months Ended March 31, | ||||||||||
In thousands | 2021 | 2020 | |||||||||
Depreciation expense | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
In thousands | Gross | Accumulated (Amortization) Accretion | Net | Gross | Accumulated (Amortization) Accretion | Net | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||||||||
Core-developed technology | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Customer contracts and relationships | ( | ( | |||||||||||||||||||||||||||||||||
Trademarks and trade names | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Intangible Liabilities | |||||||||||||||||||||||||||||||||||
Customer contracts and relationships | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Intangible assets, gross beginning balance | $ | $ | |||||||||
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 (amount remaining at March 31, 2021) | $ | $ | ( | $ | ||||||||||||||||
2022 | ( | |||||||||||||||||||
2023 | ||||||||||||||||||||
2024 | ||||||||||||||||||||
2025 | ||||||||||||||||||||
Thereafter | ||||||||||||||||||||
Total intangible assets subject to amortization (accretion) | $ | $ | ( | $ |
In thousands | Device Solutions | Networked Solutions | Outcomes | Total Company | |||||||||||||||||||
Goodwill balance at January 1, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Effect of change in exchange rates | ( | ( | ( | ( | |||||||||||||||||||
Goodwill balance at March 31, 2021 | $ | $ | $ | $ |
In thousands | March 31, 2021 | December 31, 2020 | |||||||||
Credit facility | |||||||||||
USD denominated term loan | $ | $ | |||||||||
Multicurrency revolving line of credit | |||||||||||
Senior notes | |||||||||||
Convertible notes | |||||||||||
Total debt | |||||||||||
Less: current portion of debt | |||||||||||
Less: unamortized prepaid debt fees - term loan | |||||||||||
Less: unamortized prepaid debt fees - senior notes | |||||||||||
Less: unamortized prepaid debt fees - convertible notes | |||||||||||
Long-term debt, net | $ | $ |
Year Ending December 31, | Minimum Payments | ||||
In thousands | |||||
2021 (amount remaining at March 31, 2021) | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total minimum payments on debt | $ |
Fair Value | ||||||||||||||
Derivatives Assets | Balance Sheet Location | March 31, 2021 | December 31, 2020 | |||||||||||
Derivatives designated as hedging instruments under ASC 815-20 | In thousands | |||||||||||||
Foreign exchange options | Other current assets | $ | $ | |||||||||||
Cross currency swap contract | Other current assets | |||||||||||||
Derivatives not designated as hedging instruments under 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 contract | Other current liabilities | |||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | ||||||||||||||
Foreign exchange forward contracts | Other current liabilities | |||||||||||||
Total liability derivatives | $ | $ |
In thousands | 2021 | 2020 | |||||||||
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 March 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 | ||||||||||||||||||||
March 31, 2021 | $ | $ | ( | $ | $ | ||||||||||||||||||
December 31, 2020 | ( |
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 | ||||||||||||||||||||
March 31, 2021 | $ | $ | ( | $ | $ | ||||||||||||||||||
December 31, 2020 | ( |
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 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
Interest rate swap contracts | $ | $ | ( | Interest expense | $ | ( | $ | ||||||||||||||||||||||
Interest rate swap contracts | Other income/(expense), net | ( | |||||||||||||||||||||||||||
Interest rate cap contracts | Interest expense | ||||||||||||||||||||||||||||
Foreign exchange options | ( | Product cost of revenues | |||||||||||||||||||||||||||
Cross currency swap contract | Interest expense | ||||||||||||||||||||||||||||
Cross currency swap contract | Other income/(expense), net | ||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instrument under ASC 815-20 | Location | Gain (Loss) Recognized on Derivatives in Other Income (Expense) | |||||||||||||||
In thousands | 2021 | 2020 | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
Foreign exchange forward contracts | Other income (expense), net | $ | $ | ||||||||||||||
In thousands | March 31, 2021 | December 31, 2020 | |||||||||
Liabilities | |||||||||||
Current portion of pension benefit obligation in wages and benefits payable | $ | $ | |||||||||
Long-term portion of pension benefit obligation | |||||||||||
Pension benefit obligation, net | $ | $ |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Service cost | $ | $ | |||||||||
Interest cost | |||||||||||
Expected return on plan assets | ( | ( | |||||||||
Amortization of prior service costs | |||||||||||
Amortization of actuarial net loss | |||||||||||
Net periodic benefit cost | $ | $ |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
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, 2020 | $ | $ | |||||||||||||||||||||||||||
Granted | $ | ||||||||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||||||||
Forfeited | |||||||||||||||||||||||||||||
Expired | |||||||||||||||||||||||||||||
Outstanding, March 31, 2020 | $ | $ | |||||||||||||||||||||||||||
Outstanding, January 1, 2021 | $ | $ | |||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||||||||
Outstanding, March 31, 2021 | $ | $ | |||||||||||||||||||||||||||
Exercisable, March 31, 2021 | $ | $ | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Expected volatility | % | % | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected term (years) | N/A | ||||||||||
In thousands, except fair value | Number of Restricted Stock Units | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||||||
Outstanding, January 1, 2020 | |||||||||||||||||
Granted | $ | ||||||||||||||||
Released (1) | ( | $ | |||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding, March 31, 2020 | |||||||||||||||||
Outstanding, January 1, 2021 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Released (1) | ( | $ | |||||||||||||||
Forfeited | ( | ||||||||||||||||
Outstanding, March 31, 2021 | |||||||||||||||||
Vested but not released, March 31, 2021 | $ | ||||||||||||||||
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Expected volatility | % | % | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected term (years) | |||||||||||
Weighted average fair value | $ | $ |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Net interest and penalties expense | $ | ( | $ |
In thousands | March 31, 2021 | December 31, 2020 | |||||||||
Accrued interest | $ | $ | |||||||||
Accrued penalties |
In thousands | March 31, 2021 | December 31, 2020 | |||||||||
Unrecognized tax benefits related to uncertain tax positions | $ | $ | |||||||||
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate |
In thousands | March 31, 2021 | December 31, 2020 | |||||||||
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 | $ | $ |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Beginning balance | $ | $ | |||||||||
New product warranties | |||||||||||
Other adjustments and expirations, net | |||||||||||
Claims activity | ( | ( | |||||||||
Effect of change in exchange rates | ( | ( | |||||||||
Ending balance | |||||||||||
Less: current portion of warranty | |||||||||||
Long-term warranty | $ | $ |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Total warranty expense | $ | $ |
In thousands | Total Expected Costs at March 31, 2021 | Costs Recognized in Prior Periods | Costs Recognized During the Three Months Ended March 31, 2021 | Expected Remaining Costs to be Recognized at March 31, 2021 | |||||||||||||||||||
Employee severance costs | $ | $ | $ | ( | $ | ||||||||||||||||||
Asset impairments & net loss (gain) on sale or disposal | ( | ||||||||||||||||||||||
Other restructuring costs | |||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ||||||||||||||||||
In thousands | Total Expected Costs at March 31, 2021 | Costs Recognized in Prior Periods | Costs Recognized During the Three Months Ended March 31, 2021 | Expected Remaining Costs to be Recognized at March 31, 2021 | |||||||||||||||||||
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, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Costs charged to expense | ( | ( | ( | ||||||||||||||||||||
Cash (payments) receipts | ( | ( | ( | ||||||||||||||||||||
Net assets disposed and impaired | ( | ( | |||||||||||||||||||||
Effect of change in exchange rates | ( | ( | ( | ||||||||||||||||||||
Ending balance, March 31, 2021 | $ | $ | $ | $ |
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, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
OCI before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from AOCI | ( | ( | |||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||
Balances at March 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Balances at January 1, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
OCI before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from AOCI | ( | ( | |||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||
Balances at March 31, 2021 | $ | ( | $ | $ | ( | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Before-tax amount | |||||||||||
Foreign currency translation adjustment | $ | ( | $ | ( | |||||||
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 | $ | ( | $ | ||||||||
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 | $ | ( | $ | ( | |||||||
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 | $ | ( | $ | ( |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
In thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
Credit facility | |||||||||||||||||||||||
USD denominated term loan | $ | $ | $ | $ | |||||||||||||||||||
Multicurrency revolving line of credit | |||||||||||||||||||||||
Senior notes | |||||||||||||||||||||||
Convertible notes | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Product revenues | |||||||||||
Device Solutions | $ | $ | |||||||||
Networked Solutions | |||||||||||
Outcomes | |||||||||||
Total Company | $ | $ | |||||||||
Service revenues | |||||||||||
Device Solutions | $ | $ | |||||||||
Networked Solutions | |||||||||||
Outcomes | |||||||||||
Total Company | $ | $ | |||||||||
Total revenues | |||||||||||
Device Solutions | $ | $ | |||||||||
Networked Solutions | |||||||||||
Outcomes | |||||||||||
Total Company | $ | $ | |||||||||
Gross profit | |||||||||||
Device Solutions | $ | $ | |||||||||
Networked Solutions | |||||||||||
Outcomes | |||||||||||
Total Company | $ | $ | |||||||||
Operating income (loss) | |||||||||||
Device Solutions | $ | $ | |||||||||
Networked Solutions | |||||||||||
Outcomes | |||||||||||
Corporate unallocated | ( | ( | |||||||||
Total Company | |||||||||||
Total other income (expense) | ( | ( | |||||||||
Income (loss) before income taxes | $ | $ |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
United States and Canada | $ | $ | |||||||||
Europe, Middle East, and Africa | |||||||||||
Asia Pacific and Latin America(1) | |||||||||||
Total Company | $ | $ |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Device Solutions | $ | $ | |||||||||
Networked Solutions | |||||||||||
Outcomes | |||||||||||
Corporate unallocated | |||||||||||
Total Company | $ | $ |
In thousands | Contract Liabilities, Less Contract Assets | ||||
Beginning balance, January 1, 2021 | $ | ||||
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, March 31, 2021 | $ | ||||
Three Months Ended March 31, | |||||||||||||||||
In thousands, except margin and per share data | 2021 | 2020 | % Change | ||||||||||||||
GAAP | |||||||||||||||||
Revenues | |||||||||||||||||
Product revenues | $ | 442,804 | $ | 528,137 | (16)% | ||||||||||||
Service revenues | 76,770 | 70,278 | 9% | ||||||||||||||
Total revenues | 519,574 | 598,415 | (13)% | ||||||||||||||
Gross profit | $ | 167,044 | $ | 171,566 | (3)% | ||||||||||||
Operating expenses | 136,104 | 145,196 | (6)% | ||||||||||||||
Operating income | 30,940 | 26,370 | 17% | ||||||||||||||
Other income (expense) | (12,699) | (9,658) | 31% | ||||||||||||||
Income tax provision | (4,661) | (7,550) | (38)% | ||||||||||||||
Net income attributable to Itron, Inc. | 12,603 | 8,684 | 45% | ||||||||||||||
Non-GAAP(1) | |||||||||||||||||
Non-GAAP operating expenses | $ | 128,096 | $ | 133,047 | (4)% | ||||||||||||
Non-GAAP operating income | 38,948 | 38,519 | 1% | ||||||||||||||
Non-GAAP net income attributable to Itron, Inc. | 21,947 | 22,969 | (4)% | ||||||||||||||
Adjusted EBITDA | 49,723 | 51,973 | (4)% | ||||||||||||||
GAAP Margins and Earnings Per Share | |||||||||||||||||
Gross margin | |||||||||||||||||
Product gross margin | 30.5 | % | 27.2 | % | |||||||||||||
Service gross margin | 41.6 | % | 40.0 | % | |||||||||||||
Total gross margin | 32.2 | % | 28.7 | % | |||||||||||||
Operating margin | 6.0 | % | 4.4 | % | |||||||||||||
Net income per common share - Basic | $ | 0.30 | $ | 0.22 | |||||||||||||
Net income per common share - Diluted | $ | 0.30 | $ | 0.21 | |||||||||||||
Non-GAAP Earnings Per Share(1) | |||||||||||||||||
Non-GAAP diluted EPS | $ | 0.52 | $ | 0.57 | |||||||||||||
As of March 31, | |||||||||||
Units in thousands | 2021 | 2020 | |||||||||
Endpoints Under Management | 71,388 | 63,741 |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||||||||||||||||||||
Total Company | ||||||||||||||||||||||||||||||||
Revenues | $ | 519,574 | $ | 598,415 | $ | 17,692 | $ | (96,533) | $ | (78,841) | ||||||||||||||||||||||
Gross profit | 167,044 | 171,566 | 3,012 | (7,534) | (4,522) |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||||||||||||||||||||
Total Company | ||||||||||||||||||||||||||||||||
Sales, general and administrative | $ | 75,992 | $ | 80,498 | $ | 2,827 | $ | (7,333) | $ | (4,506) | ||||||||||||||||||||||
Research and development | 51,727 | 53,781 | 949 | (3,003) | (2,054) | |||||||||||||||||||||||||||
Amortization of intangible assets | 8,973 | 11,165 | 150 | (2,342) | (2,192) | |||||||||||||||||||||||||||
Restructuring | (1,980) | (248) | (27) | (1,705) | (1,732) | |||||||||||||||||||||||||||
Loss on sale of business | 1,392 | — | — | 1,392 | 1,392 | |||||||||||||||||||||||||||
Total Operating expenses | $ | 136,104 | $ | 145,196 | $ | 3,899 | $ | (12,991) | $ | (9,092) |
Three Months Ended March 31, | % Change | ||||||||||||||||
In thousands | 2021 | 2020 | |||||||||||||||
Interest income | $ | 542 | $ | 553 | (2)% | ||||||||||||
Interest expense | (7,780) | (10,270) | (24)% | ||||||||||||||
Amortization of prepaid debt fees | (2,695) | (1,007) | 168% | ||||||||||||||
Other income (expense), net | (2,766) | 1,066 | (359)% | ||||||||||||||
Total other income (expense) | $ | (12,699) | $ | (9,658) | 31% |
Three Months Ended March 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | % Change | ||||||||||||||||||||
Segment revenues | |||||||||||||||||||||||
Device Solutions | $ | 172,781 | $ | 202,279 | (15)% | ||||||||||||||||||
Networked Solutions | 288,314 | 340,845 | (15)% | ||||||||||||||||||||
Outcomes | 58,479 | 55,291 | 6% | ||||||||||||||||||||
Total revenues | $ | 519,574 | $ | 598,415 | (13)% | ||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
In thousands | Gross Profit | Gross Margin | Gross Profit | Gross Margin | |||||||||||||||||||
Segment gross profit and margin | |||||||||||||||||||||||
Device Solutions | $ | 32,296 | 18.7% | $ | 32,367 | 16.0% | |||||||||||||||||
Networked Solutions | 112,759 | 39.1% | 121,750 | 35.7% | |||||||||||||||||||
Outcomes | 21,989 | 37.6% | 17,449 | 31.6% | |||||||||||||||||||
Total gross profit and margin | $ | 167,044 | 32.2% | $ | 171,566 | 28.7% | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
In thousands | 2021 | 2020 | % Change | ||||||||||||||||||||
Segment operating expenses | |||||||||||||||||||||||
Device Solutions | $ | 10,595 | $ | 14,169 | (25)% | ||||||||||||||||||
Networked Solutions | 33,468 | 33,070 | 1% | ||||||||||||||||||||
Outcomes | 11,653 | 9,251 | 26% | ||||||||||||||||||||
Corporate unallocated | 80,388 | 88,706 | (9)% | ||||||||||||||||||||
Total operating expenses | $ | 136,104 | $ | 145,196 | (6)% | ||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
In thousands | Operating Income (Loss) | Operating Margin | Operating Income (Loss) | Operating Margin | |||||||||||||||||||
Segment operating income (loss) and operating margin | |||||||||||||||||||||||
Device Solutions | $ | 21,701 | 12.6% | $ | 18,198 | 9.0% | |||||||||||||||||
Networked Solutions | 79,291 | 27.5% | 88,680 | 26.0% | |||||||||||||||||||
Outcomes | 10,336 | 17.7% | 8,198 | 14.8% | |||||||||||||||||||
Corporate unallocated | (80,388) | NM | (88,706) | NM | |||||||||||||||||||
Total operating income (loss) and operating margin | $ | 30,940 | 6.0% | $ | 26,370 | 4.4% |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||||||||||||||||||||
Device Solutions Segment | ||||||||||||||||||||||||||||||||
Revenues | $ | 172,781 | $ | 202,279 | $ | 13,425 | $ | (42,923) | $ | (29,498) | ||||||||||||||||||||||
Gross profit | 32,296 | 32,367 | 1,616 | (1,687) | (71) | |||||||||||||||||||||||||||
Operating expenses | 10,595 | 14,169 | 358 | (3,932) | (3,574) |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||||||||||||||||||||
Networked Solutions Segment | ||||||||||||||||||||||||||||||||
Revenues | $ | 288,314 | $ | 340,845 | $ | 2,963 | $ | (55,494) | $ | (52,531) | ||||||||||||||||||||||
Gross profit | 112,759 | 121,750 | 946 | (9,937) | (8,991) | |||||||||||||||||||||||||||
Operating expenses | 33,468 | 33,070 | 84 | 314 | 398 |
Effect of Changes in Foreign Currency Exchange Rates | Constant Currency Change | Total Change | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
In thousands | 2021 | 2020 | ||||||||||||||||||||||||||||||
Outcomes Segment | ||||||||||||||||||||||||||||||||
Revenues | $ | 58,479 | $ | 55,291 | $ | 1,303 | $ | 1,885 | $ | 3,188 | ||||||||||||||||||||||
Gross profit | 21,989 | 17,449 | 451 | 4,089 | 4,540 | |||||||||||||||||||||||||||
Operating expenses | 11,653 | 9,251 | 28 | 2,374 | 2,402 |
Quarter Ended | Quarterly Bookings | Ending Total Backlog | Ending 12-Month Backlog | ||||||||||||||
In millions | |||||||||||||||||
March 31, 2021 | $ | 688 | $ | 3,421 | $ | 1,293 | |||||||||||
December 31, 2020 | 973 | 3,259 | 1,204 | ||||||||||||||
September 30, 2020 | 432 | 2,795 | 1,107 | ||||||||||||||
June 30, 2020 | 390 | 2,895 | 1,291 | ||||||||||||||
March 31, 2020 | 418 | 3,020 | 1,319 | ||||||||||||||
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Cash provided by operating activities | $ | 49,955 | $ | 18,894 | |||||||
Cash used in investing activities | (5,806) | (9,257) | |||||||||
Cash provided by financing activities | 324,581 | 401,737 | |||||||||
Effect of exchange rates on cash and cash equivalents | (1,071) | (6,758) | |||||||||
Increase in cash and cash equivalents | $ | 367,659 | $ | 404,616 |
Three Months Ended March 31, | |||||||||||
In thousands | 2021 | 2020 | |||||||||
Cash provided by operating activities | $ | 49,955 | $ | 18,894 | |||||||
Acquisitions of property, plant, and equipment | (11,412) | (12,602) | |||||||||
Free cash flow | $ | 38,543 | $ | 6,292 |
TOTAL COMPANY RECONCILIATIONS | Three Months Ended March 31, | |||||||||||||||||||
In thousands, except per share data | 2021 | 2020 | ||||||||||||||||||
NON-GAAP OPERATING EXPENSES | ||||||||||||||||||||
GAAP operating expenses | $ | 136,104 | $ | 145,196 | ||||||||||||||||
Amortization of intangible assets | (8,973) | (11,165) | ||||||||||||||||||
Restructuring | 1,980 | 248 | ||||||||||||||||||
Loss on sale of business | (1,392) | — | ||||||||||||||||||
Corporate transition cost | — | 40 | ||||||||||||||||||
Acquisition and integration related expense | 377 | (1,272) | ||||||||||||||||||
Non-GAAP operating expenses | $ | 128,096 | $ | 133,047 | ||||||||||||||||
NON-GAAP OPERATING INCOME | ||||||||||||||||||||
GAAP operating income | $ | 30,940 | $ | 26,370 | ||||||||||||||||
Amortization of intangible assets | 8,973 | 11,165 | ||||||||||||||||||
Restructuring | (1,980) | (248) | ||||||||||||||||||
Loss on sale of business | 1,392 | — | ||||||||||||||||||
Corporate transition cost | — | (40) | ||||||||||||||||||
Acquisition and integration related expense | (377) | 1,272 | ||||||||||||||||||
Non-GAAP operating income | $ | 38,948 | $ | 38,519 | ||||||||||||||||
NON-GAAP NET INCOME & DILUTED EPS | ||||||||||||||||||||
GAAP net income attributable to Itron, Inc. | $ | 12,603 | $ | 8,684 | ||||||||||||||||
Amortization of intangible assets | 8,973 | 11,165 | ||||||||||||||||||
Amortization of debt placement fees | 2,652 | 963 | ||||||||||||||||||
Debt extinguishment | 1,681 | — | ||||||||||||||||||
Restructuring | (1,980) | (248) | ||||||||||||||||||
Loss on sale of business | 1,392 | — | ||||||||||||||||||
Corporate transition cost | — | (40) | ||||||||||||||||||
Acquisition and integration related expense | (377) | 1,272 | ||||||||||||||||||
Income tax effect of non-GAAP adjustments | (2,997) | 1,173 | ||||||||||||||||||
Non-GAAP net income attributable to Itron, Inc. | $ | 21,947 | $ | 22,969 | ||||||||||||||||
Non-GAAP diluted EPS | $ | 0.52 | $ | 0.57 | ||||||||||||||||
Non-GAAP weighted average common shares outstanding - Diluted | 41,964 | 40,474 | ||||||||||||||||||
ADJUSTED EBITDA | ||||||||||||||||||||
GAAP net income attributable to Itron, Inc. | $ | 12,603 | $ | 8,684 | ||||||||||||||||
Interest income | (542) | (553) | ||||||||||||||||||
Interest expense | 10,475 | 11,277 | ||||||||||||||||||
Income tax provision | 4,661 | 7,550 | ||||||||||||||||||
Debt extinguishment | 1,681 | — | ||||||||||||||||||
Depreciation and amortization | 21,810 | 24,031 | ||||||||||||||||||
Restructuring | (1,980) | (248) | ||||||||||||||||||
Loss on sale of business | 1,392 | — | ||||||||||||||||||
Corporate transition cost | — | (40) | ||||||||||||||||||
Acquisition and integration related expense | (377) | 1,272 | ||||||||||||||||||
Adjusted EBITDA | $ | 49,723 | $ | 51,973 | ||||||||||||||||
FREE CASH FLOW | ||||||||||||||||||||
Net cash provided by operating activities | $ | 49,955 | $ | 18,894 | ||||||||||||||||
Acquisitions of property, plant, and equipment | (11,412) | (12,602) | ||||||||||||||||||
Free Cash Flow | $ | 38,543 | $ | 6,292 |
Dollars in thousands | 2021 | 2022 | 2023 | 2024 | Total | Fair Value | |||||||||||||||||||||||||||||
Variable Rate Debt | |||||||||||||||||||||||||||||||||||
Principal: U.S. dollar term loan | $ | — | $ | — | $ | — | $ | 61,094 | $ | 61,094 | $ | 59,749 | |||||||||||||||||||||||
Weighted average interest rate | 1.88 | % | 1.95 | % | 2.33 | % | 2.80 | % | |||||||||||||||||||||||||||
Principal: Multicurrency revolving line of credit | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Weighted average interest rate | 1.88 | % | 1.95 | % | 2.33 | % | 2.80 | % | |||||||||||||||||||||||||||
Cross currency swap | |||||||||||||||||||||||||||||||||||
Weighted average interest rate (pay) Fixed - EURIBOR | 1.38 | % | |||||||||||||||||||||||||||||||||
Weighted average interest rate (receive) Floating - LIBOR | 0.11 | % | |||||||||||||||||||||||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
In thousands | |||||||||||||||||||||||
January 1, 2021 through January 31, 2021 | — | $ | — | — | $ | — | |||||||||||||||||
February 1, 2021 through February 28, 2021 | 4,308 | 102.18 | — | — | |||||||||||||||||||
March 1, 2021 through March 31, 2021 | 150 | 110.92 | — | — | |||||||||||||||||||
Total | 4,458 | — |
Exhibit Number | Description of Exhibits | |||||||
4.1 | ||||||||
4.2 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101 | The following financial information from Itron, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income (Loss), (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to the Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
ITRON, INC. | |||||||||||
May 3, 2021 | By: | /s/ JOAN S. HOOPER | |||||||||
Date | Joan S. Hooper | ||||||||||
Senior Vice President and Chief Financial Officer |
ITRON, INC. | |||||||||||
By: | /s/ THOMAS L. DEITRICH | ||||||||||
Thomas L. Deitrich President and Chief Executive Officer |
ITRON, INC. | |||||||||||
By: | /s/ JOAN S. HOOPER | ||||||||||
Joan S. Hooper Senior Vice President and Chief Financial Officer |
/s/ THOMAS L. DEITRICH | May 3, 2021 | |||||||
Thomas L. Deitrich President and Chief Executive Officer | Date | |||||||
/s/ JOAN S. HOOPER | May 3, 2021 | |||||||
Joan S. Hooper Senior Vice President and Chief Financial Officer | Date | |||||||
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 13,580 | $ 9,162 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (15,012) | (25,445) |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | 2,528 | (767) |
Pension benefit obligation adjustment | 701 | 1,001 |
Total other comprehensive income (loss), net of tax | (11,783) | (25,211) |
Total comprehensive income (loss), net of tax | 1,797 | (16,049) |
Comprehensive income attributable to noncontrolling interests, net of tax | 977 | 478 |
Comprehensive income (loss) attributable to Itron, Inc. | $ 820 | $ (16,527) |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 45,122,000 | 40,444,000 |
Common stock, shares outstanding (in shares) | 45,122,000 | 40,444,000 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in share) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Equity Statement - USD ($) shares in Thousands, $ in Thousands |
Total |
Common Stock [Member] |
Common Stock Including Additional Paid in Capital [Member] |
AOCI Attributable to Parent [Member] |
Retained Earnings [Member] |
Parent [Member] |
Noncontrolling Interest [Member] |
---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2019 | 39,941 | ||||||
Beginning balance at Dec. 31, 2019 | $ 800,815 | $ 1,357,600 | $ (204,672) | $ (376,390) | $ 776,538 | $ 24,277 | |
Net income | 9,162 | 8,684 | 8,684 | 478 | |||
Other comprehensive income (loss), net of tax | (25,211) | (25,211) | (25,211) | ||||
Net stock issuance and repurchases (in shares) | 235 | ||||||
Net stock issued and repurchased | 2,247 | 2,247 | 2,247 | ||||
Stock-based compensation expense | 8,482 | 8,482 | 8,482 | ||||
Proceeds from sale of warrants | 0 | ||||||
Ending balance at Mar. 31, 2020 | $ 795,495 | 1,368,329 | (229,883) | (367,706) | 770,740 | 24,755 | |
Ending balance (in shares) at Mar. 31, 2020 | 40,176 | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 40,444 | 40,444 | |||||
Beginning balance at Dec. 31, 2020 | $ 840,273 | 1,389,419 | (138,526) | (434,345) | 816,548 | 23,725 | |
Net income | 13,580 | 12,603 | 12,603 | 977 | |||
Other comprehensive income (loss), net of tax | (11,783) | (11,783) | (11,783) | ||||
Net stock issuance and repurchases (in shares) | 206 | ||||||
Net stock issued and repurchased | 2,009 | 2,009 | 2,009 | ||||
Stock-based compensation expense | 6,270 | 6,270 | 6,270 | ||||
Stock issued related to equity offering (in shares) | 389,419 | 389,419 | 389,419 | ||||
Stock issued related to equity offering | 4,472 | ||||||
Proceeds from sale of warrants | 45,349 | 45,349 | 45,349 | ||||
Purchases of convertible note hedge contracts, net of tax | (63,576) | (63,576) | (63,576) | ||||
Registration fee | (373) | (373) | (373) | ||||
Ending balance at Mar. 31, 2021 | $ 1,221,168 | $ 1,768,517 | $ (150,309) | $ (421,742) | $ 1,196,466 | $ 24,702 | |
Ending balance (in shares) at Mar. 31, 2021 | 45,122 | 45,122 |
Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Financial Statement Preparation The consolidated financial statements presented in this Quarterly Report on Form 10-Q are unaudited and reflect entries necessary for the fair presentation of the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2021 and 2020, Consolidated Statements of Equity for the three months ended March 31, 2021 and 2020, the Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020, and the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020, of Itron, Inc. and its subsidiaries. All entries required for the fair presentation of the financial statements are of a normal recurring nature, except as disclosed. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the full year or for any other period. Certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been partially or completely omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) regarding interim results. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2020 filed with the SEC in our Annual Report on Form 10-K on February 24, 2021 (2020 Annual Report). There have been no significant changes in financial statement preparation or significant accounting policies since December 31, 2020. 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. During portions of the first half of 2020 certain of our European factories were closed due to government actions and local conditions, and 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 continued to shift later into 2021 and beyond. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which modifies certain provisions of Accounting Standards Codification (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. The adoption of this standard had no impact to our Q1 consolidated financial position, results of operations, or cash flows and is not expected to have a material impact on full year 2021 financial results. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (ASU 2020-06). This amendment simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. We have chosen to early adopt ASU 2020-06 beginning January 1, 2021, due to the issuance of our convertible debt on March 9, 2021. This amendment will have no retrospective changes but will impact how our newly issued convertible debt is both recognized and disclosed. ASU 2020-06 also amends the diluted earnings per share calculation for convertible instruments by requiring the use of the if-converted method. The treasury stock method is no longer available. Recent Accounting Standards Not Yet Adopted 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. In January 2021, the FASB issued ASU 2021-01, which further updates the scope of Topic 848. 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 [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (EPS):
Stock-based Awards For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase 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 0.1 million and 0.3 million stock-based awards were excluded from the calculation of diluted EPS for the three months ended March 31, 2021 and 2020 because they were anti-dilutive. These stock-based awards could be dilutive in future periods. Convertible Notes and Warrants For our Convertible Notes issued in March 2021, the dilutive effect is calculated using the if-converted method in accordance with ASU 2020-06. We are required, pursuant to the indenture governing our Convertible Notes, to settle the principal amount of the Convertible Notes in cash and may elect to settle the remaining conversion obligation (stock price in excess of conversion price) in cash, shares or a combination thereof. Under the if-converted method, we include the number of shares required to satisfy the conversion obligation, assuming all the Convertible Notes are converted. The average closing price of our common stock for the quarter ended March 31, 2021 is used as the basis for determining the dilutive effect on EPS. The average price of our common stock for the quarter ended March 31, 2021 was less than the conversion price of $126.00, and all associated shares were anti-dilutive. In conjunction with the issuance of the Convertible Notes, we sold warrants to purchase 3.7 million shares of Itron stock. The warrants have a strike price of $180.00 per share. For calculating the dilutive effect of the warrants, we use the treasury stock method. With this method, we assume exercise of the warrants at the beginning of the period, or at time of issuance if later, and issuance of common shares upon exercise. Proceeds from the exercise of the warrants are assumed to be used to repurchase shares of our stock at the average market price during the period. The incremental shares, representing the number of shares assumed to be exercised with the warrants less the number of shares repurchased, are included in diluted shares. For periods where the warrants strike price of $180.00 per share is greater than the average share price of Itron stock for the period, the warrants would be anti-dilutive. For the quarter ended March 31, 2021, the average share price was below the warrant strike price, and therefore 3.7 million shares were considered anti-dilutive. Convertible Note Hedge Transactions In connection with the issuance of the Convertible Notes, we entered into privately negotiated call option contracts on our common stock (the Convertible Note Hedge Transactions) with certain commercial banks (the Counterparties). We paid an aggregate amount of $84.1 million for the Convertible Note Hedge Transactions. The Convertible Note Hedge Transactions cover, subject to anti-dilution adjustments substantially similar to those in the Convertible Notes, approximately 3.7 million shares of our common stock, the same number of shares initially underlying the Convertible Notes, at a strike price of approximately $126.00, subject to customary adjustments. The Convertible Note Hedge Transactions will expire upon the maturity of the Convertible Notes, subject to earlier exercise or termination. Exercise of the Convertible Note Hedge Transactions would reduce the number of shares of our common stock outstanding, and therefore would be anti-dilutive.
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Certain Balance Sheet Components |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain Balance Sheet Components | Certain Balance Sheet Components A summary of accounts receivable from contracts with customers is as follows:
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Intangible Assets and Liabilities |
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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. Estimated future annual amortization (accretion) is as follows:
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Goodwill |
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Goodwill Excluding Non Goodwill Intangibles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill The following table reflects changes in the carrying amount of goodwill for the three months ended March 31, 2021:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The components of our borrowings were as follows:
Credit Facility On October 18, 2019, we amended our credit facility that was initially entered on January 5, 2018 (together with the amendment, the 2018 credit facility). The 2018 credit facility provides for committed credit facilities in the amount of $1.2 billion U.S. dollars. The 2018 credit facility consists of a $650 million U.S. dollar term loan (the term loan) and a multicurrency revolving line of credit (the revolver) with a principal amount of up to $500 million. The revolver also contains a $300 million standby letter of credit sub-facility and a $50 million swingline sub-facility. The October 18, 2019 amendment extended the maturity date to October 18, 2024 and re-amortized the term loan based on the new balance as of the amendment date. The amendment also modified the required interest payments and made it based on total net leverage instead of total leverage. 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 4.50:1 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 can be repaid without penalty. Amounts repaid on the term loan may not be reborrowed, and amounts borrowed under the revolver may be repaid and reborrowed until the revolver's maturity, at which time all outstanding loans together with all accrued and unpaid interest must be repaid. On March 8, 2021, we entered into a third amendment to our 2018 credit facility, which modified provisions to permit cash settlement upon the conversion of the Convertible Notes, the Convertible Senior Note Hedge Transactions and Warrant Transactions and also to adjust certain settlement provisions for convertible indebtedness. See Note 7: Derivative Financial Instruments for further details of the Convertible Note Hedge Transactions and Warrant Transactions. 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 March 31, 2021. 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 March 31, 2021, the interest rate for both the term loan and revolver was 1.86%, which includes the LIBOR rate plus a margin of 1.75%. In March 2020, we drew $400 million in U.S. dollars under the revolving line of credit within the 2018 credit facility to increase our cash position and preserve future financial flexibility, which was fully repaid as of December 31, 2020. At March 31, 2021, there was no amount outstanding under the revolver, and $64.3 million was utilized by outstanding standby letters of credit, resulting in $435.7 million available for additional borrowings or standby letters of credit. At March 31, 2021, $235.7 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 was payable semi-annually in arrears on January 15 and July 15. The Senior Notes were fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of our subsidiaries that guarantee the senior credit facilities. On March 9, 2021, we submitted a Notice of Redemption to the trustee to redeem all outstanding Senior Notes at a redemption price of 102.50%, in accordance with the indenture governing the Senior Notes, totaling $410 million. As of April 8, 2021 the Senior Notes have been fully discharged, and no principal or unpaid interest remains outstanding. The 2.5%, or $10 million, early redemption premium and write off of $11.1 million prepaid debt fees will be recognized in the second quarter of 2021. Convertible Notes On March 12, 2021, we closed the sale of the Convertible Notes in a private placement to qualified institutional buyers, resulting in net proceeds to us of approximately $448.5 million after deducting initial purchasers’ discounts of the offering (the Convertible Notes). The Convertible Notes do not bear regular interest, and the principal amount does not accrete. The Convertible Notes will mature on March 15, 2026, unless earlier repurchased, redeemed, or converted in accordance with their terms. No sinking fund is provided for the Convertible Notes. The initial conversion rate of the Convertible Notes is 7.9365 shares of our common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $126.00 per share. The conversion rate of the Convertible Notes is subject to adjustment upon the occurrence of certain specified events. In addition, upon the occurrence of a make-whole fundamental change (as defined in the indenture governing the Convertible Notes) or upon a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder that elects to convert its Convertible Notes in connection with such make-whole fundamental change or notice of redemption, as the case may be. Prior to the close of business on the business day immediately preceding December 15, 2025, the Convertible Notes are convertible at the option of the holders only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business-day period after any five consecutive trading-day period (the measurement period) in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; (3) upon the occurrence of specified corporate events; or (4) upon redemption by us. On or after December 15, 2025, until the close of business on the second scheduled trading day immediately preceding March 15, 2026, holders of the Convertible Notes may convert all or a portion of their notes at any time. Upon conversion, we will pay cash up to the aggregate principal amount of Convertible Notes to be converted and pay and/or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at our election, in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. On or after March 20, 2024 and prior to December 15, 2025, we may redeem for cash all or part of the Convertible Notes, at our option, if the last reported sales price of common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related notice of the redemption. The redemption price of each Convertible Notes to be redeemed will be the principal amount of such note, plus accrued and unpaid special interest, if any. Upon the occurrence of a fundamental change (as defined in the indenture governing the Convertible Notes), subject to a limited exception described in the indenture governing the Convertible Notes, holders may require us to repurchase all or a portion of their notes for cash at a price equal to plus accrued and unpaid special interest to, but not including, the fundamental change repurchase date (as defined in the indenture governing the Convertible Notes). The Convertible Notes are senior unsecured obligations and rank equally in right of payment with all of our existing and future unsubordinated debt and senior in right of payment to any future debt that is expressly subordinated in right of payment to the Convertible Notes. The Convertible Notes will be effectively subordinated to any of our existing and future secured debt to the extent of the assets securing such indebtedness. The Convertible Notes will be structurally subordinated to all existing debt and any future debt and any other liabilities of our subsidiaries. Debt Maturities The amount of required minimum principal payments on our debt in aggregate over the next five years is as follows:
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments As part of our risk management strategy, we use derivative instruments to hedge certain foreign currency and interest rate exposures. Refer to Note 13: Shareholders' Equity and Note 14: Fair 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 were as follows:
The changes in accumulated other comprehensive income (loss) (AOCI), net of tax, for our derivative and nonderivative hedging instruments designated as hedging instruments, net of tax, were as follows:
Reclassification of amounts related to hedging instruments are included in interest expense in the Consolidated Statements of Operations. Included in the net unrealized gain (loss) on hedging instruments at March 31, 2021 and 2020 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 six counterparties at March 31, 2021 and six counterparties at December 31, 2020. No derivative asset or liability balance with any of our counterparties was individually significant at March 31, 2021 or December 31, 2020. 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 under our Credit Facility, we are exposed to variability in our cash flows from changes in the applicable interest rate index. We enter into interest rate caps and swaps to reduce the variability of cash flows from increases in the LIBOR based borrowing rates on our floating rate credit facility. These instruments do not protect us from changes to the applicable margin under our credit facility. At March 31, 2021, our LIBOR-based debt balance was $61.1 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 was effective from June 30, 2020 to June 30, 2023, and converted $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 amortized to maturity at the same rate of originally required amortizations on our term loan. Changes in the fair value of the interest rate swap were recognized as a component of OCI and recognized in earnings when the hedged item affected earnings. The amounts paid or received on the hedge was recognized as an adjustment to interest expense along with the earnings effect of the hedged item. On March 17, 2021 following the paydown of the term loan within the 2018 credit facility, we terminated the interest rate swap, and paid a fee of $1.7 million to settle it, since the likelihood of LIBOR-based interest payments was no longer probable of occurring. 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 $1.8 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 2021, we entered into foreign exchange option contracts for a total notional amount of $77 million at a cost of $1.1 million. The contracts will mature ratably through the year with final maturity in October 2021. Changes in the fair value of the option contracts are recognized as a component of OCI and will be recognized in product cost of revenues when the hedged item affects earnings. The before-tax effects of our accounting for derivative instruments designated as hedges on AOCI were as follows:
Derivatives Not Designated as Hedging Relationships We are also exposed to foreign exchange risk when we enter into non-functional currency transactions, both intercompany and third party. At each period-end, non-functional currency monetary assets and liabilities are revalued with the change recognized within other income (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 March 31, 2021, a total of 40 contracts were offsetting our exposures from the euro, Pound sterling, Canadian dollar, Chinese Yuan, Australian dollar and various other currencies, with notional amounts ranging from $93,300 to $26.4 million. The effect of our derivative instruments not designated as hedges on the Consolidated Statements of Operations was as follows:
We will continue to monitor and assess our interest rate and foreign exchange risk and may institute additional derivative instruments to manage such risk in the future. Convertible Note Hedge Transactions We paid an aggregate amount of $84.1 million for the Convertible Note Hedge Transactions. The Convertible Note Hedge Transactions cover, subject to anti-dilution adjustments substantially similar to those in the Convertible Notes, approximately 3.7 million shares of our common stock, the same number of shares initially underlying the Convertible Notes, at a strike price of approximately $126.00, subject to customary adjustments. The Convertible Note Hedge Transactions will expire upon the maturity of the Convertible Notes, subject to earlier exercise or termination. The Convertible Note Hedge Transactions are expected generally to reduce the potential dilutive effect of the conversion of the Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of the converted notes, as the case may be, in the event that the market price per share of our common stock, as measured under the terms of the Convertible Note Hedge Transactions, is greater than the strike price of those Convertible Note Hedge Transactions. The Convertible Note Hedge Transactions meet the criteria in ASC 815-40 to be classified within Stockholders' Equity, and therefore the transactions are not revalued after their issuance. We made a tax election to integrate the convertible notes and the call options. We are retaining the identification statements in our books and records, together with a schedule providing the accruals on the synthetic debt instruments. The accounting impact of this tax election makes the call options deductible as original issue discount for tax purposes over the term of the note, and results in a $20.6 million deferred tax asset recognized through equity. Warrant Transactions In addition, concurrently with entering into the Convertible Note Hedge Transactions, we separately entered into privately-negotiated Warrant Transactions (the Warrant Transactions), whereby we sold to the Counterparties warrants to acquire, collectively, subject to anti-dilution adjustments, 3.7 million shares of our common stock at an initial strike price of $180.00 per share, which represents a premium of 100% over the public offering price in the common stock issuance. We received aggregate proceeds of $45.3 million from the Warrant Transactions with the Counterparties, with such proceeds partially offsetting the costs of entering into the Convertible Note Hedge Transactions. The warrants expire in June 2026. If the market value per share of our common stock, as measured under the Warrants Transactions, exceeds the strike price of the warrants, the warrants will have a dilutive effect on our earnings per share, unless we elect, subject to certain conditions, to settle the warrants in cash. The warrants meet the criteria in ASC 815-40 to be classified within Stockholders' Equity, and therefore the warrants are not revalued after issuance.
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Defined Benefit Pension Plans |
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Defined Benefit Pension Plans | 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. Amounts recognized on the Consolidated Balance Sheets consist of:
Our asset investment strategy focuses on maintaining a portfolio using primarily insurance funds, which are accounted for as investments and measured at fair value, in order to achieve our long-term investment objectives on a risk adjusted basis. Our general funding policy for these qualified pension plans is to contribute amounts sufficient to satisfy regulatory funding standards of the respective countries for each plan. Net periodic pension benefit cost for our plans include the following components:
The components of net periodic benefit cost, other than the service cost component, are included in total other income (expense) on the Consolidated Statements of Operations.
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation We grant stock-based compensation awards 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 March 31, 2021, 5,334,496 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 Employee Stock Purchase Plan (ESPP), for which 169,194 shares of common stock were available for future issuance at March 31, 2021. ESPP activity and stock-based grants other than stock options and restricted stock units were not significant for the three months ended March 31, 2021 and 2020. 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 March 31, 2021, total unrecognized stock-based compensation expense related to nonvested stock options was $2.1 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 stock options granted and the resulting weighted average fair value are as follows:
There were no employee stock options granted for the three months ended March 31, 2021. 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 March 31, 2021, total unrecognized compensation expense on restricted stock units was $43.4 million, which is expected to be recognized over a weighted average period of approximately 2.0 years. The weighted average assumptions used to estimate the fair value of performance-based restricted stock units granted with a service and market condition and the resulting weighted average fair value are as follows:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes We determine the interim tax benefit (provision) by applying an estimate of the annual effective tax rate to the year-to-date pretax book income (loss) and adjusting for discrete items during the reporting period, if any. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. Our tax rate for the three months ended March 31, 2021 of 26% differed from the federal statutory rate of 21% primarily due to losses in jurisdictions for which no benefit is recognized because of valuation allowances on deferred tax assets, the forecasted mix of earnings in domestic and international jurisdictions, a benefit related to stock-based compensation, and uncertain tax positions. Our tax rate for the three months ended March 31, 2020 of 45% differed from the federal statutory rate of 21% primarily due to losses in jurisdictions for which no benefit is recognized because of valuation allowances on deferred tax assets as well as the forecasted mix of earnings in domestic and international jurisdictions, a benefit related to stock-based compensation, and uncertain tax positions. We classify interest expense and penalties related to unrecognized tax liabilities and interest income on tax overpayments as components of income tax expense. The net interest and penalties expense amounts recognized were as follows:
Accrued interest and penalties recognized were as follows:
Unrecognized tax benefits related to uncertain tax positions and the amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate were as follows:
At March 31, 2021, we are under examination by certain tax authorities. We believe we have appropriately accrued for the expected outcome of all tax matters and do not currently anticipate that the ultimate resolution of these examinations will have a material adverse effect on our financial condition, future results of operations, or cash flows. Based upon the timing and outcome of examinations, litigation, the impact of legislative, regulatory, and judicial developments, and the impact of these items on the statute of limitations, it is reasonably possible that the related unrecognized tax benefits could change from those recognized within the next twelve months. However, at this time, an estimate of the range of reasonably possible adjustments to the balance of unrecognized tax benefits cannot be made. We file income tax returns in various jurisdictions. The material jurisdictions where we are subject to examination include, among others, the United States, France, Germany, Italy, Indonesia, and the United Kingdom. On March 27, 2020, the U.S. Federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide economic relief from COVID-19. The CARES Act contains significant business tax provisions, which the Company has evaluated and determined will not have a material impact on the Company's financial statements or related disclosures. The CARES Act also provides employer payroll tax credits for wages paid to employees who are unable to work during the COVID-19 outbreak and options to defer payroll tax payments. The Company has elected to defer remittances of payroll and other taxes into the future as provided for under the Act, and may assess in subsequent quarters the impact and availability of payroll tax credits from the U.S. and similar programs provided for by foreign governments, as applicable.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnifications We are often required to obtain standby letters of credit (LOCs) or bonds in support of our obligations for customer contracts. These standby LOCs or bonds typically provide a guarantee to the customer for our future performance, which usually covers the installation phase of a contract and may, on occasion, cover the operations and maintenance phase of outsourcing contracts. Our available lines of credit, outstanding standby LOCs, and bonds were as follows:
In the event any such standby LOC or bond is called, we would be obligated to reimburse the issuer of the standby LOC or bond; however, as of May 3, 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:
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Restructuring (Notes) |
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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. 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. Actions under the 2018 Projects were substantially completed as of the end of 2020. During the first quarter of 2021, we incurred additional legal costs related to a facility closure, partially offset by reduced severance costs. The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects were as follows:
The following table summarizes the activity within the restructuring related balance sheet accounts for the 2020 Projects and 2018 Projects during the three months ended March 31, 2021:
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 $30.2 million and $31.7 million as of March 31, 2021 and December 31, 2020. 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 $30.4 million and $40.9 million as of March 31, 2021 and December 31, 2020. 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 March 31, 2021 or December 31, 2020. Issuance of Common Stock On March 12, 2021, we closed the sale of 4,472,222 shares of our common stock in a public offering, resulting in net proceeds to us of approximately $389.4 million, after deducting underwriters’ discounts of the offering. Convertible Note Hedge Transactions We paid an aggregate amount of $84.1 million for the Convertible Note Hedge Transactions. The Convertible Note Hedge Transactions cover, subject to anti-dilution adjustments substantially similar to those in the Convertible Notes, approximately 3.7 million shares of our common stock, the same number of shares initially underlying the Convertible Notes, at a strike price of approximately $126.00, subject to customary adjustments. The Convertible Note Hedge Transactions will expire upon the maturity of the Convertible Notes, subject to earlier exercise or termination. The Convertible Note Hedge Transactions are expected generally to reduce the potential dilutive effect of the conversion of our Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of the converted notes, as the case may be, in the event the price per share of our common stock, as measured under the terms of the Convertible Note Hedge Transactions, is greater than the strike price of the Convertible Note Hedge Transactions. The Convertible Note Hedge Transactions meet the criteria in ASC 815-40 to be classified within Stockholders' Equity, and therefore the Convertible Note Hedge Transactions are not revalued after their issuance. We made a tax election to integrate the convertible notes and the call options. We are retaining the identification statements in our books and records, together with a schedule providing the accruals on the synthetic debt instruments. The accounting impact of this tax election makes the call options deductible as original issue discount for tax purposes over the term of the note, and results in a $20.6 million deferred tax asset recognized through equity. Warrant Transactions In addition, concurrently with entering into the Convertible Note Hedge Transactions, we separately entered into privately-negotiated Warrant Transactions, whereby we sold to the Counterparties warrants to acquire, collectively, subject to anti-dilution adjustments, 3.7 million shares of our common stock at an initial strike price of $180.00 per share, which represents a premium of 100% over the public offering price in the common stock issuance. We received aggregate proceeds of $45.3 million from the Warrant Transactions with the Counterparties, with such proceeds partially offsetting the costs of entering into the Convertible Note Hedge Transactions. The warrants expire in June 2026. If the market value per share of our common stock, as measured under the Warrant Transactions, exceeds the strike price of the warrants, the warrants will have a dilutive effect on our earnings per share, unless we elect, subject to certain conditions, to settle the warrants in cash. The warrants meet the criteria in ASC 815-40 to be classified within Stockholders' Equity, and therefore the warrants are not revalued after issuance. 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 Values of Financial Instruments | The fair values at March 31, 2021 and December 31, 2020 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 and cash equivalents: 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 and Convertible Notes: The Senior Notes and Convertible 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 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 Industrial Internet of Things (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 (NaaS) and Platform-as-a-Service (PaaS), 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:
For the three months ended March 31, 2021, no customer represented more than 10% of total company revenue. During the three months ended March 31, 2020, one customer represented 11% of total company revenues. 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. Depreciation expense is allocated to the operating segments based upon each segment's use of the assets. All amortization expense is recognized within Corporate unallocated. Depreciation and amortization of intangible assets expense associated with our operating segments was as follows:
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Revenue Recognition |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | A summary of significant net changes in the contract assets and the contract liabilities balances during the period is as follows:
On January 1, 2021, total contract assets were $49.8 million and total contract liabilities were $148.2 million. On March 31, 2021, total contract assets were $35.3 million and total contract liabilities were $167.1 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 $1.1 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 15: Segment Information and the Consolidated Statements of Operations for disclosure regarding the disaggregation of revenue into categories, which depict how revenue and cash flows are affected by economic factors. Specifically, our operating segments and geographical regions as disclosed, and categories for products, which include hardware and software and services, are presented.
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Sale of Business |
3 Months Ended |
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Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Business | Latin America Divestiture On June 25, 2020, we closed on the sale of five subsidiaries comprising our manufacturing and sales operations in Latin America to buyers led by Instalación Profesional y Tecnologías del Centro S.A. de C.V., a Mexican company doing business as Accell in Brazil (Accell), through the execution of various definitive stock purchase agreements. The sale of these Latin America-based operations is part of our continued strategy to improve profitability and focus on growing our Networked Solutions and Outcomes businesses in Latin America and throughout the world. We retained the intellectual property rights to our products sold in Latin America. As part of the transaction, we entered into an intellectual property license agreement whereby Accell 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. The total sales price of $35 million included payment of $21.1 million for working capital, which was to be paid in full by December 31, 2020, as evidenced by a promissory note. 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. During the quarter ended March 31, 2021, we received $3.5 million of payments on the working capital note, including $0.7 million in interest. We recognized additional loss on sale of business for the quarter ended March 31, 2021 of $1.4 million driven primarily by $1.2 million in adjustment to the working capital note, resulting from a change to the currency denominations of the note.
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Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Financial Statement Preparation The consolidated financial statements presented in this Quarterly Report on Form 10-Q are unaudited and reflect entries necessary for the fair presentation of the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2021 and 2020, Consolidated Statements of Equity for the three months ended March 31, 2021 and 2020, the Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020, and the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020, of Itron, Inc. and its subsidiaries. All entries required for the fair presentation of the financial statements are of a normal recurring nature, except as disclosed. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the full year or for any other period. Certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been partially or completely omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) regarding interim results. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2020 filed with the SEC in our Annual Report on Form 10-K on February 24, 2021 (2020 Annual Report). There have been no significant changes in financial statement preparation or significant accounting policies since December 31, 2020.
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New Accounting Pronouncements | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which modifies certain provisions of Accounting Standards Codification (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. The adoption of this standard had no impact to our Q1 consolidated financial position, results of operations, or cash flows and is not expected to have a material impact on full year 2021 financial results. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) - Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (ASU 2020-06). This amendment simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. We have chosen to early adopt ASU 2020-06 beginning January 1, 2021, due to the issuance of our convertible debt on March 9, 2021. This amendment will have no retrospective changes but will impact how our newly issued convertible debt is both recognized and disclosed. ASU 2020-06 also amends the diluted earnings per share calculation for convertible instruments by requiring the use of the if-converted method. The treasury stock method is no longer available. Recent Accounting Standards Not Yet Adopted 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. In January 2021, the FASB issued ASU 2021-01, which further updates the scope of Topic 848. 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 (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (EPS):
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Certain Balance Sheet Components (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net | A summary of accounts receivable from contracts with customers is as follows:
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Allowance for Credit Losses on Financing Receivables |
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Inventories |
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Property, Plant, and Equipment, Net |
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Depreciation Expense |
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Intangible Assets and Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets by Major Class | The gross carrying amount and accumulated amortization (accretion) of our intangible assets and liabilities, other than goodwill, were as follows:
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Summary of Intangible Asset Account Activity | A summary of intangible assets and liabilities activity is as follows:
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Schedule of Intangible Assets, Future Amortization Expense | Estimated future annual amortization (accretion) is as follows:
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Goodwill (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Excluding Non Goodwill Intangibles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table reflects changes in the carrying amount of goodwill for the three months ended March 31, 2021:
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The components of our borrowings were as follows:
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Schedule of Maturities of Long-term Debt | The amount of required minimum principal payments on our debt in aggregate over the next five years is as follows:
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Derivative Financial Instruments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of our derivative instruments were as follows:
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Accumulated OCI for Derivative and Nonderivative Instruments Designated as Hedging Instruments, Net of Tax | The changes in accumulated other comprehensive income (loss) (AOCI), net of tax, for our derivative and nonderivative hedging instruments designated as hedging instruments, net of tax, were as follows:
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Offsetting Assets | A summary of the effect of netting arrangements on our financial position related to the offsetting of our recognized derivative assets and liabilities under master netting arrangements or similar agreements is as follows:
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Offsetting Liabilities |
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Effect of Cash Flow Derivatives on the Balance Sheet and Income Statement, Before Tax | The before-tax effects of our accounting for derivative instruments designated as hedges on AOCI were as follows:
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Foreign Exchange Derivatives Not Designated As Hedging Instruments | The effect of our derivative instruments not designated as hedges on the Consolidated Statements of Operations was as follows:
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Defined Benefit Pension Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in the Consolidated Balance Sheets | Amounts recognized on the Consolidated Balance Sheets consist of:
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Schedule of Net Periodic Pension Benefit Costs | Net periodic pension benefit cost for our plans include the following components:
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Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense and Related Tax Benefit | Total stock-based compensation expense and the related tax benefit were as follows:
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Employee Stock Options Activity | A summary of our stock option activity is as follows:
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Stock Options, Valuation Assumptions | The weighted average assumptions used to estimate the fair value of stock options granted and the resulting weighted average fair value are as follows:
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Restricted Stock Units Award Activity | The following table summarizes restricted stock unit activity:
(1) Shares released is presented as gross shares and does not reflect shares withheld by us for employee payroll tax obligations.
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Restricted Stock Units, Valuation Assumptions | The weighted average assumptions used to estimate the fair value of performance-based restricted stock units granted with a service and market condition and the resulting weighted average fair value are as follows:
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized Tax Benefits Related To Uncertain Tax Positions | The net interest and penalties expense amounts recognized were as follows:
Accrued interest and penalties recognized were as follows:
Unrecognized tax benefits related to uncertain tax positions and the amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate were as follows:
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Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Restructuring (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Project [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The following table summarizes the activity within the restructuring related balance sheet accounts for the 2020 Projects and 2018 Projects during the three months ended March 31, 2021:
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2020 Projects [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Project [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2020 Projects were as follows:
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2018 Projects [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Project [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects were as follows:
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Shareholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Total Comprehensive Income (Loss) | The before-tax, income tax (provision) benefit, and net-of-tax amounts related to each component of OCI were as follows:
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Fair Values of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values Of Financial Instruments by Balance Sheet Grouping | The fair values at March 31, 2021 and December 31, 2020 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) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues Gross Profit And Operating Income By Segment | Revenues, gross profit, and operating income associated with our operating segments were as follows:
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Revenues By Region | Revenues by region were as follows:
(1) On June 25, 2020, we sold our Latin American operations. We continue to sell into the region through an exclusive distributor. Depreciation expense is allocated to the operating segments based upon each segment's use of the assets. All amortization expense is recognized within Corporate unallocated.
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Depreciation And Amortization Expense Associated With Segments | Depreciation and amortization of intangible assets expense associated with our operating segments was as follows:
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Revenue Recognition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability | A summary of significant net changes in the contract assets and the contract liabilities balances during the period is as follows:
|
Summary of Significant Accounting Policies (Details) |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Risks and uncertainties in entity's business | Risks and UncertaintiesThe COVID-19 pandemic has had global economic impacts including disrupting global supply chains and creating market volatility. The extent of the recent pandemic and its ongoing impact on our operations is volatile, but is being monitored closely by our management. During portions of the first half of 2020 certain of our European factories were closed due to government actions and local conditions, and 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 continued to shift later into 2021 and beyond. |
Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 12,603 | $ 8,684 |
Weighted average common shares outstanding - Basic (in shares) | 41,526 | 40,043 |
Dilutive effect of stock-based awards (in shares) | 438 | 431 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 0 | 0 |
Weighted average common shares outstanding - Diluted (in shares) | 41,964 | 40,474 |
Earnings (loss) per common share - Basic (in dollars per share) | $ 0.30 | $ 0.22 |
Earnings (loss) per common share - Diluted (in dollars per share) | $ 0.30 | $ 0.21 |
Earnings Per Share Stock-based Awards (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Earnings Per Share [Abstract] | ||
Stock-based awards excluded from diluted EPS calculation (antidilutive) (in shares) | 0.1 | 0.3 |
Earnings Per Share - Convertible Senior Notes and Warrants (Details) - $ / shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Debt Instrument [Line Items] | ||
Stock-based awards excluded from diluted EPS calculation (antidilutive) (in shares) | 0.1 | 0.3 |
Treasury stock, shares, acquired | 3.7 | |
Class of warrant or right, exercise price of warrants or rights | $ 180.00 | |
Convertible Debt Securities | ||
Debt Instrument [Line Items] | ||
Common stock, conversion price (in dollars per share) | $ 126.00 | |
Stock-based awards excluded from diluted EPS calculation (antidilutive) (in shares) | 3.7 |
Earnings Per Share - Convertible Note Hedge Transactions (Details) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
$ / shares
shares
| |
Debt Instrument [Line Items] | |
Derivative, notional amount | $ | $ 84.1 |
Treasury stock, shares, acquired | shares | 3.7 |
Convertible Debt Securities | |
Debt Instrument [Line Items] | |
Common stock, conversion price (in dollars per share) | $ / shares | $ 126.00 |
Certain Balance Sheet Components Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Trade receivables (net of allowance of $1,136 and $1,312) | $ 319,052 | $ 318,269 |
Unbilled receivables | 46,774 | 51,559 |
Total accounts receivable, net | $ 365,826 | $ 369,828 |
Certain Balance Sheet Components Summary of the Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
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Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Beginning balance | $ 1,312 | $ 3,064 |
Provision for (release of) doubtful accounts, net | (67) | 510 |
Accounts written-off | (79) | (415) |
Effect of change in exchange rates | (30) | (113) |
Ending balance | $ 1,136 | $ 3,046 |
Certain Balance Sheet Components Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory, Net [Abstract] | ||
Raw materials | $ 109,314 | $ 114,058 |
Work in process | 9,287 | 8,094 |
Finished goods | 50,811 | 60,225 |
Total inventories | $ 169,412 | $ 182,377 |
Certain Balance Sheet Components Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Property, Plant and Equipment, Net [Abstract] | ||
Machinery and equipment | $ 333,973 | $ 334,050 |
Computers and software | 116,121 | 115,776 |
Buildings, furniture, and improvements | 153,246 | 155,676 |
Land | 13,900 | 14,303 |
Construction in progress, including purchased equipment | 30,207 | 31,425 |
Total cost | 647,447 | 651,230 |
Accumulated depreciation | (447,797) | (443,414) |
Property, plant, and equipment, net | $ 199,650 | $ 207,816 |
Certain Balance Sheet Components Depreciation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 12,837 | $ 12,866 |
Summary of Intangible Asset Account Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Total Intangible Assets [Abstract] | ||
Intangible assets, gross beginning balance | $ 1,000,037 | $ 979,814 |
Effect of change in exchange rates | (16,404) | (16,075) |
Intangible assets, gross ending balance | 983,633 | 963,739 |
Intangible liabilities, gross beginning balance | 23,900 | 23,900 |
Effect of change in exchange rates | 0 | 0 |
Intangible liabilities, gross ending balance | $ 23,900 | $ 23,900 |
Intangible Assets and Liabilities Estimated Future Annual Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Intangible Assets [Abstract] | ||
2021 (amount remaining at March 31, 2021) | $ 28,447 | |
2022 | 27,516 | |
2023 | 19,898 | |
2024 | 15,700 | |
2025 | 14,706 | |
Thereafter | 16,594 | |
Total intangible assets subject to amortization (accretion) | 122,861 | |
2021 (amount remaining at March 31, 2021) | (1,472) | |
2022 | (459) | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Intangible liabilities, Net | (1,931) | $ (2,421) |
2021 (amount remaining at March 31, 2021) | 26,975 | |
2022 | 27,057 | |
2023 | 19,898 | |
2024 | 15,700 | |
2025 | 14,706 | |
Thereafter | 16,594 | |
Total intangible assets (liabilities), net | $ 120,930 |
Schedule of Goodwill Allocated to Reporting Segments (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, net, at beginning of period | $ 1,131,916 |
Effect of change in exchange rates | (13,594) |
Goodwill, Ending Balance | 1,118,322 |
Device Solutions [Member] | |
Goodwill [Roll Forward] | |
Goodwill, net, at beginning of period | 53,214 |
Effect of change in exchange rates | (551) |
Goodwill, Ending Balance | 52,663 |
Networked Solutions Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill, net, at beginning of period | 933,814 |
Effect of change in exchange rates | (11,288) |
Goodwill, Ending Balance | 922,526 |
Outcomes Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill, net, at beginning of period | 144,888 |
Effect of change in exchange rates | (1,755) |
Goodwill, Ending Balance | $ 143,133 |
Schedule of Debt Components of Borrowing (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Mar. 09, 2021 |
Dec. 31, 2020 |
Jan. 19, 2018 |
Dec. 22, 2017 |
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Senior notes | $ 410,000 | $ 100,000 | $ 300,000 | ||
Convertible Debt | $ 460,000 | $ 0 | |||
Total debt | 921,094 | ||||
Current portion of debt | 400,000 | 18,359 | |||
Long-term debt, net | 496,531 | 902,577 | |||
Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Total debt | 921,094 | 936,094 | |||
Current portion of debt | 400,000 | 18,359 | |||
Long-term debt, net | 496,531 | 902,577 | |||
USD Denominated Term Loan | |||||
Debt Instrument [Line Items] | |||||
USD denominated term loan | 61,094 | 536,094 | |||
Unamortized prepaid debt fees | 1,798 | 3,469 | |||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Multicurrency revolving line of credit | 0 | 0 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 400,000 | 400,000 | |||
Unamortized prepaid debt fees | 11,118 | 11,689 | |||
Convertible Debt Securities | |||||
Debt Instrument [Line Items] | |||||
Unamortized prepaid debt fees | $ 11,647 | $ 0 |
Debt Senior Note Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | 37 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 14, 2022 |
Jan. 14, 2021 |
Apr. 08, 2021 |
Mar. 31, 2021 |
Mar. 09, 2021 |
Dec. 31, 2020 |
Jan. 19, 2018 |
Dec. 22, 2017 |
|
Senior Note Additional Information [Abstract] | ||||||||
Senior notes | $ 410,000 | $ 100,000 | $ 300,000 | |||||
Senior Notes | ||||||||
Senior Note Additional Information [Abstract] | ||||||||
Senior notes | $ 400,000 | $ 400,000 | ||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, interest rate, stated percentage | 5.00% | |||||||
Debt Instrument, Redemption, Period Four [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, redemption price, percentage | 130.00% | |||||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, redemption price, percentage | 98.00% | |||||||
Forecast | ||||||||
Senior Note Additional Information [Abstract] | ||||||||
Senior notes | $ 0 | |||||||
Forecast | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, redemption price, percentage | 102.50% |
Debt Minimum Required Principal Payments (Details) $ in Thousands |
Mar. 31, 2021
USD ($)
|
---|---|
Text Block [Abstract] | |
2021 (amount remaining at March 31, 2021) | $ 400,000 |
2022 | 0 |
2023 | 0 |
2024 | 61,094 |
2025 | 0 |
Thereafter | 460,000 |
Total debt | $ 921,094 |
Activity of Hedging Instruments in Accumulated OCI (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Net unrealized loss on hedging instruments at January 1, | $ (138,526) | |
Unrealized gain (loss) on derivative instruments | 3,409 | $ 282 |
Realized losses reclassified into net income (loss) | (881) | (1,049) |
Net unrealized loss on hedging instruments at March 31, | (150,309) | |
Accumulated Net Gain (Loss) from Derivative and Nonderivative Instruments Designated as Hedging Instruments [Member] | ||
Net unrealized loss on hedging instruments at January 1, | (16,001) | (15,103) |
Net unrealized loss on hedging instruments at March 31, | $ (13,473) | $ (15,870) |
Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total asset derivatives | $ 3,658 | $ 52 |
Derivative Financial Instruments Not Offset in the Consolidated Balance Sheets | (82) | (52) |
Cash Collateral Received Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | $ 3,576 | $ 0 |
Offsetting of Derivative Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Liability, Fair Value, Gross Liability | $ 84 | $ 2,636 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (82) | (52) |
Cash Collateral Pledged Not Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 2 | $ 2,584 |
Derivatives Not Designated as Hedging Relationships (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Other Income (Expense) [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Foreign exchange forward contracts | $ 31 | $ 1,493 |
Schedule of Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Retirement Benefits [Abstract] | ||
Current portion of pension benefit obligation in wages and benefits payable | $ 2,989 | $ 3,069 |
Long-term portion of pension benefit obligation | 115,257 | 119,457 |
Pension benefit obligation, net | $ 118,246 | $ 122,526 |
Schedule of Net Periodic Pension Benefit Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Retirement Benefits [Abstract] | ||
Service cost | $ 1,149 | $ 976 |
Interest cost | 352 | 473 |
Expected return on plan assets | (89) | (146) |
Amortization of prior service costs | 17 | 16 |
Amortization of actuarial net loss | 695 | 455 |
Net periodic benefit cost | $ 2,124 | $ 1,774 |
Stock-Based Compensation Expense and Related Tax Benefit (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options | $ 340 | $ 467 |
Restricted stock units | 5,931 | 7,809 |
Unrestricted stock awards | 227 | 206 |
Total stock-based compensation | 7,615 | 8,915 |
Related tax benefit | 1,363 | 1,767 |
Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Phantom stock units | $ 1,117 | $ 433 |
Stock Option Black Scholes Option Pricing Model Assumptions (Details) - Share-based Payment Arrangement, Option [Member] |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Expected volatility | 0.00% | 31.00% |
Risk-free interest rate | 0.00% | 1.40% |
Expected term (years) | 5 years 3 months 18 days |
Stock-Based Compensation Long-Term Performance Restricted Stock Unit Award Monte Carlo Pricing Model Assumptions (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, weighted average grant date fair value (in dollars per share) | $ 100.28 | $ 87.17 |
Long Term Performance Restricted Stock Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 50.50% | 37.60% |
Risk-free interest rate | 0.20% | 1.50% |
Expected term (years) | 2 years 10 months 24 days | 1 year 9 months 18 days |
Granted, weighted average grant date fair value (in dollars per share) | $ 113.75 | $ 94.28 |
Stock-Based Compensation Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
shares
| |
Share-based Payment Arrangement, Option [Member] | |
[Line Items] | |
Compensation cost not yet recognized | $ | $ 2.1 |
Unrecognized compensation expense, Expected weighted average period for recognition (years) | 1 year 8 months 12 days |
Restricted Stock Units (RSUs) [Member] | |
[Line Items] | |
Compensation cost not yet recognized | $ | $ 43.4 |
Unrecognized compensation expense, Expected weighted average period for recognition (years) | 2 years |
Employee Stock Purchase Plan [Member] | |
[Line Items] | |
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | 169,194 |
Stock Incentive Plan [Member] | |
[Line Items] | |
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 12,623,538 |
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | 5,334,496 |
Reduction in stock options available for issue | 1 |
Authorized share reserve reduction in awards other than stock options or share appreciation rights available for issue, conversion ratio | 1.7 |
Income Tax Contingencies (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Net interest and penalties expense | $ (231) | $ 308 | |
Accrued interest | 3,336 | $ 3,432 | |
Accrued penalties | 1,384 | 1,645 | |
Unrecognized tax benefits related to uncertain tax positions | 133,964 | 135,910 | |
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate | $ 132,836 | $ 134,473 |
Income Taxes Narrative (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Income Tax Examination [Line Items] | ||
Effective income tax rate reconciliation, percent | 26.00% | 45.00% |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 21.00% |
Commitments and Contingencies Available Lines of Credit, Outstanding Standby Letter of Credits, and Bonds (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
Oct. 18, 2019 |
---|---|---|---|
Line of Credit Facility [Line Items] | |||
Multicurrency revolving line of credit | $ 500,000 | ||
Net available for additional standby LOCs under sub-facility | $ 235,693 | $ 235,052 | |
Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Multicurrency revolving line of credit | 500,000 | 500,000 | |
Long-term Line of Credit | 0 | 0 | |
Letters of Credit Outstanding, Amount | (64,307) | (64,948) | |
Line of Credit Facility, Remaining Borrowing Capacity | 235,700 | ||
Unsecured Multicurrency Revolving Lines of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Multicurrency revolving line of credit | 95,687 | 99,201 | |
Letters of Credit Outstanding, Amount | (24,478) | (24,966) | |
Short-term borrowings | 0 | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | 71,209 | 74,235 | |
Surety Bond [Member] | |||
Line of Credit Facility [Line Items] | |||
Unsecured surety bonds in force | 146,532 | 162,912 | |
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Long-term Line of Credit | 0 | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 435,693 | $ 435,052 |
Commitments and Contingencies Warranty Account Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning balance | $ 41,390 | $ 53,241 |
New product warranties | 786 | 1,070 |
Other changes/adjustments to warranties | 2,289 | 694 |
Claims activity | (4,369) | (5,940) |
Effect of change in exchange rates | (762) | (346) |
Ending balance | 39,334 | 48,719 |
Less: current portion of warranty | 22,024 | 36,409 |
Long-term warranty | $ 17,310 | $ 12,310 |
Commitments and Contingencies Warranty Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Total warranty expense | $ 3,075 | $ 1,763 |
Restructuring Additional Information (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve, current | $ 30.2 | $ 31.7 |
Restructuring reserve, noncurrent | $ 30.4 | $ 40.9 |
Restructuring Expected Costs - 2020 Projects (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ (1,980) | $ (248) | |
2020 Projects [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 56,844 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 43,232 | ||
Restructuring | (2,630) | ||
Restructuring and Related Cost, Expected Cost Remaining | 16,242 | ||
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (5,015) | ||
Employee Severance [Member] | 2020 Projects [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 32,907 | ||
Restructuring and Related Cost, Cost Incurred to Date | 36,225 | ||
Restructuring | (3,318) | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (45) | ||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | 2020 Projects [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 6,861 | ||
Restructuring and Related Cost, Cost Incurred to Date | 6,944 | ||
Restructuring | (83) | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 3,080 | ||
Other Restructuring [Member] | 2020 Projects [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 17,076 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 63 | ||
Restructuring | 771 | ||
Restructuring and Related Cost, Expected Cost Remaining | $ 16,242 |
Restructuring Expected Costs - 2018 Projects (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ (1,980) | $ (248) | |
2018 Projects [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 84,126 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 81,176 | ||
Restructuring | 650 | ||
Restructuring and Related Cost, Expected Cost Remaining | 2,300 | ||
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (5,015) | ||
Employee Severance [Member] | 2018 Projects [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 61,476 | ||
Restructuring and Related Cost, Cost Incurred to Date | 63,173 | ||
Restructuring | (1,697) | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | (45) | ||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | 2018 Projects [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 2,824 | ||
Restructuring and Related Cost, Cost Incurred to Date | 2,786 | ||
Restructuring | 38 | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 3,080 | ||
Other Restructuring [Member] | 2018 Projects [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 19,826 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 15,217 | ||
Restructuring | 2,309 | ||
Restructuring and Related Cost, Expected Cost Remaining | $ 2,300 |
Restructuring Related Balance Sheet Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance, January 1, 2021 | $ 72,626 | |
Costs charged to expense | (1,980) | $ (248) |
Cash (payments) receipts | (5,899) | |
Net assets disposed and impaired | (1,823) | |
Effect of change in exchange rates | (2,283) | |
Ending balance, March 31, 2021 | 60,641 | |
Accrued Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance, January 1, 2021 | 70,005 | |
Costs charged to expense | (5,015) | |
Cash (payments) receipts | (6,269) | |
Net assets disposed and impaired | 0 | |
Effect of change in exchange rates | (2,250) | |
Ending balance, March 31, 2021 | 56,471 | |
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance, January 1, 2021 | 0 | |
Costs charged to expense | (45) | |
Cash (payments) receipts | 1,868 | |
Net assets disposed and impaired | (1,823) | |
Effect of change in exchange rates | 0 | |
Ending balance, March 31, 2021 | 0 | |
Other Accrued Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance, January 1, 2021 | 2,621 | |
Costs charged to expense | 3,080 | |
Cash (payments) receipts | (1,498) | |
Net assets disposed and impaired | 0 | |
Effect of change in exchange rates | (33) | |
Ending balance, March 31, 2021 | $ 4,170 |
Shareholders' Equity Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 12, 2021 |
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Preferred stock, shares authorized (in share) | 10,000,000 | 10,000,000 | ||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||
Derivative, notional amount | $ 84.1 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100,000 | 300,000 | ||
Deferred tax assets, derivative instruments | $ 20.6 | |||
Convertible Debt Securities | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,700,000 | |||
Common stock, conversion price (in dollars per share) | $ 126.00 | |||
Over-Allotment Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Sale of stock, number of shares issued in transaction | 4,472,222 | |||
Sale of stock, consideration received on transaction | $ 389.4 |
Shareholders' Equity Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Before-tax amount [Abstract] | |||
Foreign currency translation adjustment | $ (14,925) | $ (26,593) | |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | 3,427 | (10) | |
Net hedging (gain) loss reclassified to net income | (414) | (1,123) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax | 0 | 538 | |
Net defined benefit plan (gain) loss reclassified to net income | 712 | 471 | |
Total other comprehensive income (loss), before tax | (11,200) | (26,717) | |
Tax (provision) benefit [Abstract] | |||
Foreign currency translation adjustment | (87) | 1,148 | |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | (18) | 292 | |
Net hedging (gain) loss reclassified to net income | (467) | 74 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, Tax | 0 | (4) | |
Net defined benefit plan (gain) loss reclassified to net income | (11) | (4) | |
Total other comprehensive income (loss) tax (provision) benefit | (583) | 1,506 | |
Net-of-tax amount [Abstract] | |||
Foreign currency translation adjustment | (15,012) | (25,445) | |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | 3,409 | 282 | |
Net hedging (gain) loss reclassified to net income | (881) | (1,049) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | 0 | 534 | |
Net defined benefit plan (gain) loss reclassified to net income | 701 | 467 | |
Total other comprehensive income (loss), net of tax | (11,783) | (25,211) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (11,783) | (25,211) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (150,309) | $ (138,526) | |
OCI before reclassifications | (11,603) | (24,629) | |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
OCI before reclassifications | (15,012) | (25,445) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
OCI before reclassifications | 3,409 | 282 | |
Net Unrealized Gain (Loss) on Nonderivative Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (14,400) | (14,400) | |
OCI before reclassifications | 0 | 0 | |
Pension Benefit Obligation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
OCI before reclassifications | $ 0 | $ 534 |
Shareholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 840,273 | $ 800,815 |
OCI before reclassifications | (11,603) | (24,629) |
Amounts reclassified from AOCI | (180) | (582) |
Total other comprehensive income (loss), net of tax | (11,783) | (25,211) |
Ending balance | 1,221,168 | 795,495 |
Parent [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 816,548 | 776,538 |
Total other comprehensive income (loss), net of tax | (11,783) | (25,211) |
Ending balance | 1,196,466 | 770,740 |
Foreign Currency Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (84,843) | (157,999) |
OCI before reclassifications | (15,012) | (25,445) |
Amounts reclassified from AOCI | 0 | 0 |
Total other comprehensive income (loss), net of tax | (15,012) | (25,445) |
Ending balance | (99,855) | (183,444) |
Net Unrealized Gain (Loss) on Derivative Instruments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,621) | (723) |
OCI before reclassifications | 3,409 | 282 |
Amounts reclassified from AOCI | (881) | (1,049) |
Total other comprehensive income (loss), net of tax | 2,528 | (767) |
Ending balance | 907 | (1,490) |
Net Unrealized Gain (Loss) on Nonderivative Instruments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (14,380) | (14,380) |
OCI before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 0 |
Ending balance | (14,380) | (14,380) |
Pension Benefit Obligation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (37,682) | (31,570) |
OCI before reclassifications | 0 | 534 |
Amounts reclassified from AOCI | 701 | 467 |
Total other comprehensive income (loss), net of tax | 701 | 1,001 |
Ending balance | (36,981) | (30,569) |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (138,526) | (204,672) |
Ending balance | $ (150,309) | $ (229,883) |
Schedule of Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Mar. 09, 2021 |
Dec. 31, 2020 |
Jan. 19, 2018 |
Dec. 22, 2017 |
---|---|---|---|---|---|
Liabilities | |||||
Senior notes | $ 410,000 | $ 100,000 | $ 300,000 | ||
USD Denominated Term Loan | |||||
Liabilities | |||||
USD denominated term loan | $ 61,094 | $ 536,094 | |||
Line of Credit | |||||
Liabilities | |||||
Multicurrency revolving line of credit | 0 | 0 | |||
Reported Value Measurement [Member] | |||||
Liabilities | |||||
Senior notes | 388,882 | 388,311 | |||
Convertible Notes Payable | 448,353 | 0 | |||
Reported Value Measurement [Member] | USD Denominated Term Loan | |||||
Liabilities | |||||
USD denominated term loan | 59,296 | 532,625 | |||
Reported Value Measurement [Member] | Line of Credit | |||||
Liabilities | |||||
Multicurrency revolving line of credit | 0 | 0 | |||
Estimate of Fair Value Measurement [Member] | |||||
Liabilities | |||||
Senior notes | 410,000 | 410,000 | |||
Convertible Notes Payable | 465,042 | 0 | |||
Estimate of Fair Value Measurement [Member] | USD Denominated Term Loan | |||||
Liabilities | |||||
USD denominated term loan, fair value | 59,749 | 520,347 | |||
Estimate of Fair Value Measurement [Member] | Line of Credit | |||||
Liabilities | |||||
Multicurrency revolving line of credit, fair value | $ 0 | $ 0 |
Segment Information Narrative (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Revenue, Major Customer [Line Items] | ||
Number of reportable segments | 3 | |
Sales [Member] | Customer A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 11.00% |
Segment Reporting, Disclosure of Major Customers | no | one |
Information By Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Segment Reporting Information [Line Items] | ||
Revenues | $ 519,574 | $ 598,415 |
Gross profit | 167,044 | 171,566 |
Operating income (loss) | 30,940 | 26,370 |
Total other income (expense) | (12,699) | (9,658) |
Income (loss) before income taxes | 18,241 | 16,712 |
Device Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 172,781 | 202,279 |
Gross profit | 32,296 | 32,367 |
Operating income (loss) | 21,701 | 18,198 |
Networked Solutions Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 288,314 | 340,845 |
Gross profit | 112,759 | 121,750 |
Operating income (loss) | 79,291 | 88,680 |
Outcomes Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 58,479 | 55,291 |
Gross profit | 21,989 | 17,449 |
Operating income (loss) | 10,336 | 8,198 |
Corporate Unallocated [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | (80,388) | (88,706) |
Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 442,804 | 528,137 |
Product [Member] | Device Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 170,331 | 200,168 |
Product [Member] | Networked Solutions Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 258,703 | 315,437 |
Product [Member] | Outcomes Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 13,770 | 12,532 |
Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 76,770 | 70,278 |
Service [Member] | Device Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,450 | 2,111 |
Service [Member] | Networked Solutions Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 29,611 | 25,408 |
Service [Member] | Outcomes Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 44,709 | $ 42,759 |
Segment Information Revenues By Region (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Revenues from External Customers [Line Items] | ||
Revenues | $ 519,574 | $ 598,415 |
United States and Canada [Member] | ||
Revenues from External Customers [Line Items] | ||
Revenues | 325,536 | 385,325 |
Europe, Middle East, and Africa [Member] | ||
Revenues from External Customers [Line Items] | ||
Revenues | 160,369 | 166,984 |
Other [Member] | ||
Revenues from External Customers [Line Items] | ||
Revenues | $ 33,669 | $ 46,106 |
Depreciation and Amortization, by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 21,810 | $ 24,031 |
Corporate, Non-Segment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | 10,113 | 12,466 |
Device Solutions [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | 6,188 | 6,435 |
Networked Solutions Segment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | 4,275 | 3,737 |
Outcomes Segment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 1,234 | $ 1,393 |
Revenue Recognition Revenue Contract Assets and Liabilities Rollforward (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Revenue Recognition and Deferred Revenue [Abstract] | |
Beginning balance, January 1, 2021 | $ 98,388 |
Revenues recognized from beginning contract liability | (58,754) |
Cumulative catch-up adjustments | 8,668 |
Increases due to amounts collected or due | 91,347 |
Revenues recognized from current period increases | (7,434) |
Other | (447) |
Ending balance, March 31, 2021 | $ 131,768 |
Revenue Recognition Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Revenue Recognition and Deferred Revenue [Abstract] | ||
Contract with customer, asset, gross | $ 35.3 | $ 49.8 |
Contract with customer, liability | $ 167.1 | $ 148.2 |
Revenue Recognition Remaing Performance Obligation (Details) $ in Millions |
Mar. 31, 2021
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,100 |
Sale of Business - Narrative (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 25, 2020
numberOfSubsidiaries
|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued, Interest Received | $ 700 | |||
Gain (Loss) on Disposition of Other Assets | 1,392 | $ 0 | ||
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of subsidiaries sold | numberOfSubsidiaries | 5 | |||
Disposal Group, Including Discontinued Operation, Foreign Currency Translation Gains (Losses) | 1,200 | |||
Payments received from disposal | 3,500 | |||
Disposal Group, Including Discontinued Operation, Working Capital | $ 18,400 | $ 21,100 | ||
Disposal Group, Including Discontinued Operation, Sales Price | $ 35,000 |