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Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information 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. Goodwill impairment charges are recognized in Corporate unallocated. 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. These products generally do not have communications capability or may be designed for use with non-Itron systems. 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 and designed to meet market requirements; and the implementation and installation of said hardware products.

Networked Solutions – This segment primarily includes a combination of communicating devices (e.g., smart meters, modules, endpoints, and sensors), network infrastructure, and associated head-end management and 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. The Industrial Internet of Things (IIoT) solutions supported by this segment include automated meter reading (AMR); advanced metering infrastructure (AMI) for electricity, water and gas; distributed energy resource management (DERMs); smart grid and distribution automation; smart street lighting; and leak detection and applications for both gas and water systems. Our IIoT platform allows utility and smart city applications to be run and managed on a flexible multi-purpose network.

Outcomes – This segment primarily includes our value-added, enhanced software and services, artificial intelligence, and machine learning in which we enable grid edge intelligence and manage, organize, analyze, and interpret raw, anonymized data to improve decision making, maximize operational profitability, enhance resource efficiency, improve grid analytics, and deliver results for consumers, utilities, and smart cities. Outcomes supports high-value use cases, such as data management, grid operations, distributed intelligence, AMI operations, gas distribution and safety, water operations management, revenue assurance, DERMs, energy forecasting, consumer engagement, smart payment, and fleet energy resource management. Utilities leverage these outcomes to unlock the capabilities of their networks and devices, improve the productivity of their workforce, increase the reliability of their operations, manage and optimize the proliferation of distributed energy resources (DERs), address grid complexity, and enhance the customer experience. Revenue from these offerings are primarily recurring in nature and would include any direct management of Device Solutions, Networked Solutions, and other third-parties' products on behalf of our end customers.
Revenues, gross profit, and operating income (loss) associated with our operating segments were as follows:
Year Ended December 31,
In thousands202320222021
Product revenues
Device Solutions$452,718 $433,354 $635,103 
Networked Solutions1,331,546 1,002,156 974,531 
Outcomes79,225 64,733 68,561 
Total Company$1,863,489 $1,500,243 $1,678,195 
Service revenues
Device Solutions$3,008 $5,356 $10,001 
Networked Solutions118,745 117,112 118,100 
Outcomes188,391 172,853 175,276 
Total Company$310,144 $295,321 $303,377 
Total revenues
Device Solutions$455,726 $438,710 $645,104 
Networked Solutions1,450,291 1,119,268 1,092,631 
Outcomes267,616 237,586 243,837 
Total Company$2,173,633 $1,795,564 $1,981,572 
Gross profit
Device Solutions$105,917 $61,778 $99,355 
Networked Solutions499,725 361,975 378,633 
Outcomes108,266 98,436 95,181 
Total Company$713,908 $522,189 $573,169 
Operating income (loss)
Device Solutions$65,690 $26,703 $57,217 
Networked Solutions368,921 248,268 254,434 
Outcomes50,346 46,247 50,631 
Corporate unallocated(356,090)(328,657)(441,581)
Total Company128,867 (7,439)(79,299)
Total other income (expense)(1,481)(8,304)(44,511)
Income (loss) before income taxes
$127,386 $(15,743)$(123,810)

Our Corporate unallocated operating loss for the years ended December 31, 2023, 2022, and 2021 include losses from the sale of businesses of $0.7 million, $3.5 million and $64.3 million and restructuring expenses of $44.0 million, $(13.6) million, and $54.6 million. Our Corporate unallocated operating loss for the year ended 2022 also includes goodwill impairment of $38.5 million. Refer to Note 5: Goodwill, Note 13: Restructuring, and Note 18: Sale of Businesses for additional information.

For all periods presented, no single customer represents more than 10% of total company revenue.
Revenues by region were as follows:
Year Ended December 31,
In thousands202320222021
United States and Canada$1,733,680 $1,302,241 $1,273,868 
Europe, Middle East, and Africa340,854 391,556 568,008 
Asia Pacific
99,099 101,767 139,696 
Total Company$2,173,633 $1,795,564 $1,981,572 
Property, plant, and equipment, net, by geographic area were as follows:
December 31,
In thousands20232022
United States$80,035 $85,704 
Outside United States48,771 54,419 
Total Company$128,806 $140,123 

Depreciation expense is allocated to the operating segments based upon each segment's use of the assets. All amortization expense is recognized within Corporate unallocated. Depreciation and amortization of intangible assets expense associated with our operating segments was as follows:
Year Ended December 31,
In thousands202320222021
Device Solutions$12,348 $14,452 $22,884 
Networked Solutions16,314 17,539 16,607 
Outcomes5,433 5,501 4,454 
Corporate unallocated21,668 29,271 40,208 
Total Company$55,763 $66,763 $84,153