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Segment Information (Text Block)
 3 Months Ended
Mar. 31, 2013
Segment Information [Abstract]  
Segment Information [Text Block]
Segment Information

We operate under the Itron brand worldwide and manage and report under two operating segments, Energy and Water. The Energy operating segment includes our global electricity and gas businesses, while the Water operating segment includes our global water and heat businesses.

On March 27, 2013, we separated the management of our Energy operating segment into Electricity and Gas to allow each business to develop its own go-to-market strategy, prioritize its marketing and product development requirements, and focus on its strategic investments. As a result, our sales, marketing, and delivery function will be managed under three operating segments - Electricity, Gas, and Water. At the same time, product development and operations will be centralized and managed on a global basis. Although certain management positions of the new operating segments have been identified, the transition to the new organizational structure is ongoing, and we are currently assessing the implications to our operational and financial reporting systems.

We have three measures of segment performance: revenue, gross profit (margin), and operating income (margin). Our operating segments have distinct products, and therefore intersegment revenues are minimal. Corporate operating expenses, interest income, interest expense, other income (expense), and income tax provision (benefit) are not allocated to the segments, nor included in the measure of segment profit or loss. 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
Energy
Standard electricity (electromechanical and electronic) and gas meters; advanced electricity and gas meters and communication modules; smart electricity meters; smart electricity and gas communication modules; prepayment systems, including smart key, keypad, and smart card communication technologies; advanced systems including handheld, mobile, and fixed network collection technologies; smart network technologies; meter data management software; knowledge application solutions; and professional services including implementation, installation, consulting, and analysis.


 
 
Water
Standard water and heat meters; advanced and smart water meters and communication modules; advanced systems including handheld, mobile, and fixed network collection technologies; meter data management software; knowledge application solutions; and professional services including implementation, installation, consulting, analysis, and system management.


Revenues, gross profit, and operating income associated with our segments were as follows:
 
 
Three Months Ended March 31,
 
2013
 
2012
 
(in thousands)
Revenues
 
 
 
Energy
$
312,678

 
$
437,747

Water
134,858

 
133,893

Total Company
$
447,536

 
$
571,640

 
 
 
 
Gross profit
 
 
 
Energy
$
95,554

 
$
134,603

Water
44,569

 
48,502

Total Company
$
140,123

 
$
183,105

 
 
 
 
Operating income (loss)
 
 
 
Energy
$
480

 
$
38,164

Water
12,575

 
15,937

Corporate unallocated
(10,708
)
 
(14,480
)
Total Company
2,347

 
39,621

Total other income (expense)
(2,094
)
 
(4,420
)
Income before income taxes
$
253

 
$
35,201



For the three months ended March 31, 2013, no single customer represented more than 10% of the total Company, the Energy operating segment, or the Water operating segment revenues.

For the three months ended March 31, 2012, one customer from the Energy operating segment accounted for 11% of the total Company revenues, and two customers each accounted for more than 10% of the Energy operating segment revenues. No single customer accounted for more than 10% of the Water operating segment revenues.

Revenues by region were as follows:
 
 
Three Months Ended March 31,
 
2013
 
2012
 
(in thousands)
United States and Canada
$
177,206

 
$
284,587

Europe, Middle East, and Africa
211,895

 
220,956

Other
58,435

 
66,097

Total revenues
$
447,536

 
$
571,640



Depreciation and amortization expense associated with our segments was as follows:
 
 
Three Months Ended March 31,
 
2013
 
2012
 
(in thousands)
Energy
$
18,471

 
$
20,656

Water
6,269

 
6,556

Corporate Unallocated
17

 
15

Total Company
$
24,757

 
$
27,227