Segment Information (Text Block)

3 Months Ended

Mar. 31, 2012

Segment Information [Abstract]

Segment Information [Text Block]

Segment Information

As part of the global reorganization we announced in the first quarter of 2011, Itron is now managed and reporting under two operating segments, Energy and Water. A transition to the new organizational structure, including changes to operations and financial and operational management systems, was completed in the first quarter of 2012. Therefore, financial reporting as of and for the three months ended March 31, 2012 is based on the new operating segments, Energy and Water. Prior period segment information has been recast to reflect our new operating segments.

The Energy operating segment includes our global electricity and gas businesses, while the Water operating segment includes our global water and heat businesses.

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,
	2012			2011
	(in thousands)
Revenues
Energy	$	437,747		$	431,816
Water	133,893			131,875
Total Company	$	571,640		$	563,691
Gross profit
Energy	$	134,603		$	137,584
Water	48,502			47,394
Total Company	$	183,105		$	184,978
Operating income (loss)
Energy	$	38,164		$	43,168
Water	15,937			16,854
Corporate unallocated	(14,480		)	(9,933		)
Total Company	39,621			50,089
Total other income (expense)	(4,420		)	(13,396		)
Income before income taxes	$	35,201		$	36,693

One customer represented more than 10% of total Company revenues for the three months ended March 31, 2012, while no customer represented more than 10% of total Company revenues during the same period in 2011. Two customers each accounted for more than 10% of the Energy operating segment revenues for each of the three months periods ended March 31, 2012 and 2011. No single customer represented more than 10% of the Water operating segment revenues for the three months ended March 31, 2012 and 2011.

Revenues by region were as follows:

	Three Months Ended March 31,
	2012		2011
	(in thousands)
United States and Canada	$	284,587	$	274,462
Europe, Middle East, and Africa	220,956		223,703
Other	66,097		65,526
Total revenues	$	571,640	$	563,691

Depreciation and amortization expense associated with our segments was as follows:

	Three Months Ended March 31,
	2012		2011
	(in thousands)
Energy	$	20,656	$	23,555
Water	6,556		7,975
Corporate Unallocated	15		1
Total Company	$	27,227	$	31,531