XML 28 R19.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Restructuring (Notes) | 9 Months Ended
--- | ---
Sep. 30, 2022
Restructuring and Related Activities [Abstract] |
Restructuring | 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 17: Sale of Business), includes activities to drive reductions in certain locations and functional support areas. These projects are to be substantially complete by the end of 2024. 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 September 30, 2022 |  | Costs Recognized in Prior Periods |  | Adjustments Recognized During the Nine Months Ended September 30, 2022 |  | Expected Remaining Costs to be Recognized at September 30, 2022
Employee severance costs | $ | 40,709 |  |  | $ | 49,013 |  |  | $ | (8,304) |  |  | $ | — |
Asset impairments & net loss (gain) on sale or disposal | 8,371 |  |  | 9,246 |  |  | (875) |  |  | — |
Other restructuring costs | 5,468 |  |  | 2,452 |  |  | 516 |  |  | 2,500 |
Total | $ | 54,548 |  |  | $ | 60,711 |  |  | $ | (8,663) |  |  | $ | 2,500 |
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. 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 September 30, 2022 |  | Costs Recognized in Prior Periods |  | Adjustments Recognized During the Nine Months Ended September 30, 2022 |  | Expected Remaining Costs to be Recognized at September 30, 2022
Employee severance costs | $ | 21,534 |  |  | $ | 24,532 |  |  | $ | (2,998) |  |  | $ | — |
Asset impairments & net loss (gain) on sale or disposal | 6,438 |  |  | 6,442 |  |  | (4) |  |  | — |
Other restructuring costs | 7,480 |  |  | 6,170 |  |  | 568 |  |  | 742 |
Total | $ | 35,452 |  |  | $ | 37,144 |  |  | $ | (2,434) |  |  | $ | 742 |
The following table summarizes the activity within the restructuring-related balance sheet accounts for the 2021 Projects and 2020 Projects during the nine months ended September 30, 2022:
In thousands | Accrued Employee Severance |  | Asset Impairments & Net Loss (Gain) on Sale or Disposal |  | Other Accrued Costs |  | Total
Beginning balance, January 1, 2022 | $ | 79,876 |  |  | $ | — |  |  | $ | 5,130 |  |  | $ | 85,006 |
Costs charged to expense | (11,302) |  |  | (879) |  |  | 1,084 |  |  | (11,097) |
Cash payments | (14,937) |  |  | (116) |  |  | (2,599) |  |  | (17,652) |
Cash receipts | — |  |  | 1,783 |  |  | — |  |  | 1,783 |
Net assets disposed and impaired | — |  |  | (788) |  |  | — |  |  | (788) |
Effect of change in exchange rates | (8,441) |  |  | — |  |  | (276) |  |  | (8,717) |
Ending balance, September 30, 2022 | $ | 45,196 |  |  | $ | — |  |  | $ | 3,339 |  |  | $ | 48,535 |
During the nine months ended September 30, 2022, $11.3 million in accrued employee severance has been released due to employee attrition and other employee agreements. 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 $15.3 million and $29.7 million as of September 30, 2022 and December 31, 2021 and are classified within other current liabilities on the Consolidated Balance Sheets. The long-term portions of restructuring liabilities were $33.2 million and $55.3 million as of September 30, 2022 and December 31, 2021. 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.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
Name: | us-gaap_RestructuringImpairmentAndOtherActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration