Restructuring

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

2023 Projects

On February 23, 2023, our Board of Directors approved a restructuring plan (the 2023 Projects). The 2023 Projects include activities that continue Itron's efforts to optimize its global supply chain and manufacturing operations, sales and marketing organizations, and other overhead. These projects are expected to be substantially complete by early 2025.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2023 Projects were as follows:


In thousands	Total Expected Costs at December 31, 2023		Costs Recognized in Prior Periods		Costs Recognized During the Year Ended December 31, 2023		Expected Remaining Costs to be Recognized at December 31, 2023
Employee severance costs	$	43,347	$	—	$	43,347	$	—
Asset impairments & net loss (gain) on sale or disposal	1,130		—		1,130		—
Other restructuring costs	7,226		—		4,051		3,175
Total	$	51,703	$	—	$	48,528	$	3,175

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 Gas product lines from our Device Solutions manufacturing and business operations in Europe and North America to Dresser (refer to Note 18: Sale of Businesses), includes activities to drive reductions in certain locations and functional support areas. These projects are expected to be substantially complete by the end of 2024.

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, 2023		Costs Recognized in Prior Periods		Adjustments Recognized During the Year Ended December 31, 2023		Expected Remaining Costs to be Recognized at December 31, 2023
Employee severance costs	$	34,821	$	38,359	$	(3,538)	$	—
Asset impairments & net loss (gain) on sale or disposal	8,379		8,599		(220)		—
Other restructuring costs	5,479		3,084		645		1,750
Total	$	48,679	$	50,042	$	(3,113)	$	1,750

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 were substantially complete by the end of 2023.

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, 2023		Costs Recognized in Prior Periods		Adjustments Recognized During the Year Ended December 31, 2023		Expected Remaining Costs to be Recognized at December 31, 2023
Employee severance costs	$	18,524	$	20,382	$	(1,858)	$	—
Asset impairments & net loss (gain) on sale or disposal	5,940		6,465		(525)		—
Other restructuring costs	8,298		7,341		957		—
Total	$	32,762	$	34,188	$	(1,426)	$	—

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2023 Projects, the 2021 Projects, and the 2020 Projects during the year ended December 31, 2023:


In thousands	Accrued Employee Severance		Asset Impairments & Net Loss (Gain) on Sale or Disposal		Other Accrued Costs		Total
Beginning balance, January 1, 2023	$	39,558	$	—	$	2,886	$	42,444
Costs charged to expense	37,951		385		5,653		43,989
Cash payments	(11,618)		(12)		(4,893)		(16,523)
Cash receipts	—		4,211		—		4,211
Net assets disposed and impaired	—		(4,584)		—		(4,584)
Effect of change in exchange rates	2,807		—		32		2,839
Ending balance, December 31, 2023	$	68,698	$	—	$	3,678	$	72,376

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.

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.

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 recognized within the Corporate unallocated segment and does not impact the results of our operating segments.

The current portions of restructuring liabilities were $21.0 million and $14.5 million as of December 31, 2023 and 2022 and are classified within other current liabilities on the Consolidated Balance Sheets. The long-term portions of restructuring liabilities were $51.4 million and $27.9 million as of December 31, 2023 and 2022. The long-term portions of restructuring liabilities are classified within other long-term obligations on the Consolidated Balance Sheets and include severance accruals and facility exit costs.