Restructuring

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

2021 Projects

On October 29, 2021, our Board of Directors approved a restructuring plan (the 2021 Projects), which in conjunction with the announcement of the sale of certain of our Gas device manufacturing operations (refer to Note 18: Sale of Businesses), includes activities to drive reductions in certain locations and functional support areas. These projects are to be substantially complete by the end of 2024. Itron recognized pre-tax restructuring charges of $60.7 million. Of the total charge, approximately $55 million will result in cash expenditures, and the remainder to non-cash impairment charges. Once the 2021 Projects are substantially completed, Itron estimates $15 million to $20 million in annualized savings. Certain of Itron's employees are represented by

unions or works councils, which requires consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of planned savings in certain jurisdictions.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2021 Projects were as follows:


In thousands	Total Expected Costs at December 31, 2021		Costs Recognized in Prior Periods		Costs Recognized During the Year Ended December 31, 2021		Expected Remaining Costs to be Recognized at December 31, 2021
Employee severance costs	$	49,013	$	—	$	49,013	$	—
Asset impairments & net loss on sale or disposal	9,246		—		9,246		—
Other restructuring costs	5,452		—		2,452		3,000
Total	$	63,711	$	—	$	60,711	$	3,000

2020 Projects

In September 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. Certain of Itron's employees are represented by unions or works councils, which requires consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of planned savings in certain jurisdictions.

During 2021, expected remaining costs to be recognized were reduced by $13.0 million due to the removal of a previously planned non-cash cumulative translation adjustment charge, resulting from our recent reassessment of the legal entity and its related operations.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2020 Projects were as follows:


In thousands	Total Expected Costs at December 31, 2021		Costs Recognized in Prior Periods		Costs Recognized During the Year Ended December 31, 2021		Expected Remaining Costs to be Recognized at December 31, 2021
Employee severance costs	$	24,532	$	36,225	$	(11,693)	$	—
Asset impairments & net loss on sale or disposal	6,442		6,944		(502)		—
Other restructuring costs	9,033		63		6,107		2,863
Total	$	40,007	$	43,232	$	(6,088)	$	2,863

All prior restructuring plans are substantially complete and are not presented below.

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2021 Projects and the 2020 Projects during the year ended December 31, 2021:


In thousands	Accrued Employee Severance		Asset Impairments & Net Loss (Gain) on Sale or Disposal		Other Accrued Costs		Total
Beginning balance, January 1, 2021	$	70,005	$	—	$	2,621	$	72,626
Costs charged to expense	37,320		8,744		8,559		54,623
Cash payments	(23,687)		—		(5,971)		(29,658)
Cash receipts	—		4,495		—		4,495
Net assets disposed and impaired	—		(13,239)		—		(13,239)
Effect of change in exchange rates	(3,762)		—		(79)		(3,841)
Ending balance, December 31, 2021	$	79,876	$	—	$	5,130	$	85,006

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 affected 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 portions of restructuring liabilities were $29.7 million and $31.7 million as of December 31, 2021 and 2020 and are classified within other current liabilities on the Consolidated Balance Sheets. The long-term portions of restructuring liabilities were $55.3 million and $40.9 million as of December 31, 2021 and 2020. The long-term portions of restructuring liabilities are classified within other long-term obligations on the Consolidated Balance Sheet and include severance accruals and facility exit costs.