Restructuring

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring

2023 Projects

On February 23, 2023, our Board of Directors approved a restructuring plan (the 2023 Projects). The 2023 Projects include activities that continue Itron's efforts to optimize its global supply chain and manufacturing operations, sales and marketing organizations, and other overhead. These projects are expected to be substantially complete by early 2025.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2023 Projects were as follows:

In thousands	Total Expected Costs at December 31, 2024		Costs Recognized in Prior Periods		Adjustments Recognized During the Year Ended December 31, 2024		Expected Remaining Costs to be Recognized at December 31, 2024
Employee severance costs	$	42,078	$	43,347	$	(1,269)	$	—
Asset impairments & net loss (gain) on sale or disposal	1,149		1,130		19		—
Other restructuring costs	7,547		4,051		2,896		600
Total	$	50,774	$	48,528	$	1,646	$	600

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 Gas product lines from our Device Solutions manufacturing and business operations in Europe and North America to Dresser Utility Solutions, includes activities to drive reductions in certain locations and functional support areas. These projects were substantially complete at the end of 2024.

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 December 31, 2024		Costs Recognized in Prior Periods		Adjustments Recognized During the Year Ended December 31, 2024		Expected Remaining Costs to be Recognized at December 31, 2024
Employee severance costs	$	35,816	$	34,821	$	995	$	—
Asset impairments & net loss (gain) on sale or disposal	8,169		8,379		(210)		—
Other restructuring costs	5,277		3,729		248		1,300
Total	$	49,262	$	46,929	$	1,033	$	1,300

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2023 Projects and the 2021 Projects during the year ended December 31, 2024:

In thousands	Accrued Employee Severance		Asset Impairments & Net Loss (Gain) on Sale or Disposal		Other Accrued Costs		Total
Beginning balance, January 1, 2024	$	68,698	$	—	$	3,678	$	72,376
Costs charged to expense	(274)		(191)		3,144		2,679
Cash payments	(27,987)		(13)		(4,041)		(32,041)
Cash receipts	—		150		—		150
Net assets disposed and impaired	—		54		—		54
Effect of change in exchange rates	(2,322)		—		435		(1,887)
Ending balance, December 31, 2024	$	38,115	$	—	$	3,216	$	41,331

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.

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.

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 recognized within the Corporate unallocated segment and does not impact the results of our operating segments.

The current portions of restructuring liabilities were $24.3 million and $21.0 million as of December 31, 2024 and 2023 and are classified within other current liabilities on the Consolidated Balance Sheets. The long-term portions of restructuring liabilities were $17.0 million and $51.4 million as of December 31, 2024 and 2023. 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.