Stock-Based Compensation Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2012

Stock Based Compensation [Abstract] [Abstract]

Stock-Based Compensation Expense and Related Tax Benefit [Table Text Block]

For the three months ended March 31, stock-based compensation expense and the related tax benefit were as follows:



	Three Months Ended March 31,
	2012		2011
	(in thousands)
Stock options	$	272	$	1,033
Restricted stock units	3,516		3,551
Unrestricted stock awards	205		175
ESPP	205		216
Total stock-based compensation	$	4,198	$	4,975

Related tax benefit	$	1,189	$	1,402

Stock Options, Valuation Assumptions [Table Text Block]

The fair values of stock options granted were estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:



	Three Months Ended March 31,
	2012		2011
Dividend yield	—		—
Expected volatility	42.7	%	46.6	%
Risk-free interest rate	0.9	%	2.0	%
Expected life (years)	5.14		4.85

Employee Stock Options Activity [Table Text Block]

A summary of our stock option activity for the three months ended March 31 is as follows:



	Shares		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value ⁽¹⁾		Weighted Average Grant Date Fair Value
	(in thousands)				(years)	(in thousands)
Outstanding, January 1, 2011	1,102		$	55.21	5.58	$	10,883
Granted	78		56.64					$	23.93
Exercised	(18	)	19.46			$	737
Expired	(1	)	7.00
Outstanding, March 31, 2011	1,161		$	55.89	5.70	$	10,774

Exercisable, March 31, 2011	988		$	53.58	5.18	$	10,774

Expected to vest, March 31, 2011	163		$	69.69	8.63	$	—

Outstanding, January 1, 2012	1,109		$	55.97	4.51	$	2,323
Granted	54		48.23					$	18.64
Exercised	(13	)	21.60			$	280
Expired	(1	)	48.51
Outstanding, March 31, 2012	1,149		$	56.00	4.42	$	4,638

Exercisable, March 31, 2012	1,023		$	56.93	3.81	$	4,400

Expected to vest, March 31, 2012	116		$	48.50	9.39	$	219

⁽¹⁾

The aggregate intrinsic value of outstanding stock options represents amounts that would have been received by the optionees had all in- the-money options been exercised on that date. Specifically, it is the amount by which the market value of Itron’s stock exceeded the exercise price of the outstanding in-the-money options before applicable income taxes, based on our closing stock price on the last business day of the period. The aggregate intrinsic value of stock options exercised during the period is calculated based on our stock price at the date of exercise.

Restricted Stock Units Award Activity [Table Text Block]

The following table summarizes restricted stock unit activity for the three months ended March 31:



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value⁽¹⁾
	(in thousands)				(in thousands)
Outstanding, January 1, 2011	588
Granted⁽²⁾	253		$	56.67
Released	(127	)			$	8,857
Forfeited	(2	)
Outstanding, March 31, 2011	712

Outstanding, January 1, 2012	625
Granted⁽²⁾	374		$	48.23
Released	(168	)			$	10,976
Forfeited	(14	)
Outstanding, March 31, 2012	817

Expected to vest, March 31, 2012	733				$	33,290


⁽¹⁾	The aggregate intrinsic value is the market value of the stock, before applicable income taxes, based on the closing price on the stock release dates or at the end of the period for restricted stock units expected to vest.


⁽²⁾	These restricted stock units do not include the respective 2011 and 2012 awards under the Performance Award Agreement, which are not eligible for vesting as of March 31 of each respective year.

Nonrestricted Stock Awards Activity [Table Text Block]

The following table summarizes unrestricted stock award activity for the three months ended March 31:



	Three Months Ended March 31,
	2012		2011
Shares of unrestricted stock granted	5,453		3,177

Weighted average grant date fair value	$	37.55	$	55.03

Employee Stock Purchase Plan (ESPP) Activity [Table Text Block]

The following table summarizes ESPP activity for the three months ended March 31:



	Three Months Ended March 31,
	2012		2011
Shares of stock sold to employees⁽¹⁾	23,057		17,058

Weighted average fair value per ESPP award⁽²⁾	$	6.81	$	8.47


⁽¹⁾	Stock sold to employees during each fiscal quarter under the ESPP is associated with the offering period ending on the last day of the previous fiscal quarter.


⁽²⁾	Relating to awards associated with the offering period during the three months ended March 31.

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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