XML 31 R22.htm IDEA: XBRL DOCUMENT
v3.23.3

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2023
Segment Reporting [Abstract] |
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 that do not have communications capability embedded for use with our broader Itron systems, i.e., hardware-based products not part of a complete end-to-end solution. 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, such as Smart Spec meters; and the implementation and installation of non-communicating devices. Networked Solutions – This segment primarily includes a combination of communicating devices (e.g., smart meters, modules, endpoints, and sensors), network infrastructure, and associated 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), distributed energy resource management (DERMs), smart grid and distribution automation, smart street lighting, and an ever-growing set of smart city applications such as traffic management, smart parking, air quality monitoring, electric vehicle charging, customer engagement, digital signage, acoustic (e.g., gunshot) detection, and leak detection and mitigation for both gas and water systems. Our IIoT platform allows all these utility and smart city applications to be run and managed on a single, multi-purpose network. Outcomes – This segment primarily includes our value-added, enhanced software and services in which we manage, organize, analyze, and interpret raw, anonymized and aggregated data to improve decision making, maximize operational profitability, drive 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, operations management, 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 capitalize on the power of networks and devices, empower their workforce, maximize their operations, and enhance the customer experience. The revenues from these offerings are primarily recurring in nature and would include any direct management of Device Solutions, Networked Solutions, and other products on behalf of our end customers. Revenues, gross profit, and operating income (loss) associated with our operating segments were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
In thousands | 2023 |  | 2022 |  | 2023 |  | 2022
Product revenues |  |  |  |  |  |  |
Device Solutions | $ | 110,138 |  |  | $ | 92,893 |  |  | $ | 340,098 |  |  | $ | 334,212 |
Networked Solutions | 352,771 |  |  | 240,498 |  |  | 964,909 |  |  | 731,358 |
Outcomes | 17,446 |  |  | 14,400 |  |  | 56,475 |  |  | 41,929 |
Total Company | $ | 480,355 |  |  | $ | 347,791 |  |  | $ | 1,361,482 |  |  | $ | 1,107,499 |
Service revenues |  |  |  |  |  |  |
Device Solutions | $ | 631 |  |  | $ | 1,110 |  |  | $ | 2,085 |  |  | $ | 4,166 |
Networked Solutions | 32,200 |  |  | 29,374 |  |  | 94,460 |  |  | 86,796 |
Outcomes | 47,586 |  |  | 42,585 |  |  | 138,433 |  |  | 129,612 |
Total Company | $ | 80,417 |  |  | $ | 73,069 |  |  | $ | 234,978 |  |  | $ | 220,574 |
Total revenues |  |  |  |  |  |  |
Device Solutions | $ | 110,769 |  |  | $ | 94,003 |  |  | $ | 342,183 |  |  | $ | 338,378 |
Networked Solutions | 384,971 |  |  | 269,872 |  |  | 1,059,369 |  |  | 818,154 |
Outcomes | 65,032 |  |  | 56,985 |  |  | 194,908 |  |  | 171,541 |
Total Company | $ | 560,772 |  |  | $ | 420,860 |  |  | $ | 1,596,460 |  |  | $ | 1,328,073 |
Gross profit |  |  |  |  |  |  |
Device Solutions | $ | 26,919 |  |  | $ | 14,805 |  |  | $ | 75,351 |  |  | $ | 50,489 |
Networked Solutions | 135,203 |  |  | 81,895 |  |  | 362,852 |  |  | 263,155 |
Outcomes | 25,081 |  |  | 23,362 |  |  | 79,315 |  |  | 67,747 |
Total Company | $ | 187,203 |  |  | $ | 120,062 |  |  | $ | 517,518 |  |  | $ | 381,391 |
Operating income (loss) |  |  |  |  |  |  |
Device Solutions | $ | 17,675 |  |  | $ | 7,066 |  |  | $ | 45,837 |  |  | $ | 24,103 |
Networked Solutions | 102,503 |  |  | 54,640 |  |  | 266,052 |  |  | 177,929 |
Outcomes | 10,280 |  |  | 11,339 |  |  | 35,867 |  |  | 28,789 |
Corporate unallocated | (75,568) |  |  | (66,157) |  |  | (268,159) |  |  | (250,641) |
Total Company | 54,890 |  |  | 6,888 |  |  | 79,597 |  |  | (19,820) |
Total other income (expense) | 843 |  |  | (1,943) |  |  | (1,673) |  |  | (6,704) |
Income (loss) before income taxes | $ | 55,733 |  |  | $ | 4,945 |  |  | $ | 77,924 |  |  | $ | (26,524) |
For the three and nine months ended September 30, 2023 and 2022, no single customer represented more than 10% of total company revenue. Revenues by region were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
In thousands | 2023 |  | 2022 |  | 2023 |  | 2022
United States and Canada | $ | 452,583 |  |  | $ | 317,960 |  |  | $ | 1,256,042 |  |  | $ | 947,684 |
Europe, Middle East, and Africa | 81,394 |  |  | 80,735 |  |  | 265,814 |  |  | 306,962 |
Asia Pacific | 26,795 |  |  | 22,165 |  |  | 74,604 |  |  | 73,427 |
Total Company | $ | 560,772 |  |  | $ | 420,860 |  |  | $ | 1,596,460 |  |  | $ | 1,328,073 |
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:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
In thousands | 2023 |  | 2022 |  | 2023 |  | 2022
Device Solutions | $ | 2,976 |  |  | $ | 3,566 |  |  | $ | 9,467 |  |  | $ | 11,049 |
Networked Solutions | 4,074 |  |  | 4,401 |  |  | 12,273 |  |  | 13,126 |
Outcomes | 1,270 |  |  | 2,057 |  |  | 3,748 |  |  | 4,184 |
Corporate unallocated | 5,325 |  |  | 7,337 |  |  | 16,525 |  |  | 22,253 |
Total Company | $ | 13,645 |  |  | $ | 17,361 |  |  | $ | 42,013 |  |  | $ | 50,612 |

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration