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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate under the Itron brand worldwide and manage and report under three operating segments: Device Solutions, Networked Solutions, and Outcomes. We define these segments based on the structure in which internally reported financial information is regularly provided to the chief operating decision maker (CODM) to analyze financial performance, make strategic decisions, and allocate resources. The Company's CODM is the chief executive officer.

Segment Products

Device Solutions – This segment primarily includes hardware products used for measurement, control, or sensing that can have communications capability embedded for use with our broader Itron systems, i.e., hardware-based products that may be 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 electricity, gas, 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 may be sold as part of an Itron end-to-end solution and designed to meet market requirements; and the implementation and installation of communicating and non-communicating devices.

Networked Solutions – This segment primarily includes a combination of communicating devices (e.g., smart meters, modules, endpoints, and sensors), network infrastructure, network design services, and associated head-end management and 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) for electricity, water, and gas; distributed energy resource management (DERMs); grid edge devices; distribution automation communications; smart street lighting; smart city sensors and applications; and leak detection and applications for both gas and water systems. Our IIoT platform allows utility and smart city applications to be run and managed on a flexible multi-purpose network.

Outcomes – This segment primarily includes our value-added, enhanced software and services in which we enable grid edge intelligence and manage, organize, analyze, and interpret raw, anonymized data using artificial intelligence, machine learning, statistical modeling, and other analytics. This allows us to help utilities improve decision making, maximize operational profitability, engage consumers, enhance resource efficiency, improve grid resiliency and reliability, and deliver value for utilities and smart cities. Outcomes supports high-value use cases, such as data management, grid operations, distributed intelligence, AMI operations, 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 unlock the capabilities of their networks and devices, improve the productivity of their workforce, increase the reliability of their operations, manage and optimize the proliferation of distributed energy resources (DERs), address grid complexity, and enhance the customer experience. Revenue from these offerings are primarily recurring in nature and would include any direct management of Device Solutions, Networked Solutions, and other third-parties' products on behalf of our end customers.

The CODM assesses the segments' performance primarily by using each segment's revenues and gross profit (gross 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. No asset information for reportable segments is provided to the CODM. We do not manage the performance of the segments on a balance sheet basis.
The CODM assesses revenues and gross profit for each segment predominantly in the annual budget and periodic forecasting process. The CODM considers budget-to-actual and forecast-to-actual variances for these measures when making decisions about the allocation of operating and capital resources to each segment. The CODM primarily uses segment gross profit for evaluating pricing strategy and the performance of each segment.

Information about our reporting segments and Corporate unallocated and the reconciliation to income before income taxes was as follows:

Year Ended December 31, 2024
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product Revenue$473,329 $1,546,278 $111,772 $2,131,379 
Service Revenue3,248 103,797 202,413 309,458 
Total revenue476,577 1,650,075 314,185 2,440,837 
Cost of sales353,113 1,052,295 196,112 1,601,520 
Gross profit123,464 597,780 118,073 839,317 
Sales, general and administrative13,627 27,676 15,826 57,129 
Research and development16,315 113,442 50,517 180,274 
Corporate unallocated expenses
— — — — 337,804 
Total other income (expense)— — — — 20,421 
Income (loss) before income taxes$93,522 $456,662 $51,730 $601,914 $(317,383)$284,531 
Year Ended December 31, 2023
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product Revenue$452,718 $1,331,546 $79,225 $1,863,489 
Service Revenue3,008 118,745 188,391 310,144 
Total revenue455,726 1,450,291 267,616 2,173,633 
Cost of sales349,809 950,566 159,350 1,459,725 
Gross profit105,917 499,725 108,266 713,908 
Sales, general and administrative13,846 26,055 14,428 54,329 
Research and development26,381 104,749 43,492 174,622 
Corporate unallocated expenses
— — — — 356,090 
Total other income (expense)— — — — (1,481)
Income (loss) before income taxes$65,690 $368,921 $50,346 $484,957 $(357,571)$127,386 

Year Ended December 31, 2022
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product Revenue$433,354 $1,002,156 $64,733 $1,500,243 
Service Revenue5,356 117,112 172,853 295,321 
Total revenue438,710 1,119,268 237,586 1,795,564 
Cost of sales376,932 757,293 139,150 1,273,375 
Gross profit61,778 361,975 98,436 522,189 
Sales, general and administrative12,544 21,823 12,772 47,139 
Research and development22,531 91,884 39,417 153,832 
Corporate unallocated expenses
— — — — 328,657 
Total other income (expense)— — — — (8,304)
Income (loss) before income taxes$26,703 $248,268 $46,247 $321,218 $(336,961)$(15,743)
Three Months Ended September 30, 2024
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product Revenue$122,119 $390,201 $25,929 $538,249 
Service Revenue619 26,512 50,082 77,213 
Total revenue122,738 416,713 76,011 615,462 
Cost of sales89,396 267,065 49,403 405,864 
Gross profit33,342 149,648 26,608 209,598 
Sales, general and administrative3,137 6,860 3,874 13,871 
Research and development3,720 27,557 11,548 42,825 
Corporate unallocated expenses
— — — — 78,969 
Total other income (expense)— — — — 8,492 
Income (loss) before income taxes$26,485 $115,231 $11,186 $152,902 $(70,477)$82,425 

Three Months Ended June 30, 2024
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product Revenue$117,929 $387,351 $27,627 $532,907 
Service Revenue621 25,353 50,188 76,162 
Total revenue118,550 412,704 77,815 609,069 
Cost of sales87,319 260,547 50,743 398,609 
Gross profit31,231 152,157 27,072 210,460 
Sales, general and administrative3,328 7,031 3,819 14,178 
Research and development4,178 27,682 12,602 44,462 
Corporate unallocated expenses
— — — — 87,173 
Total other income (expense)— — — — 2,393 
Income (loss) before income taxes$23,725 $117,444 $10,651 $151,820 $(84,780)$67,040 

Three Months Ended March 31, 2024
In thousandsDevice Solutions
Networked Solutions
Outcomes
Segments Subtotal
Corporate UnallocatedConsolidated
Product Revenue$125,908 $381,305 $20,609 $527,822 
Service Revenue844 26,211 48,565 75,620 
Total revenue126,752 407,516 69,174 603,442 
Cost of sales96,688 256,491 44,884 398,063 
Gross profit30,064 151,025 24,290 205,379 
Sales, general and administrative3,781 6,499 4,027 14,307 
Research and development4,580 27,848 11,172 43,600 
Corporate unallocated expenses
— — — — 84,672 
Total other income (expense)— — — — 2,416 
Income (loss) before income taxes$21,703 $116,678 $9,091 $147,472 $(82,256)$65,216 

For the three months ended September 30, 2024, one customer represented 10.7% of total company revenue. This revenue is included in both the Networked Solutions and Outcomes reporting segments. For all other periods presented, no single customer represented more than 10% of total company revenue.
Revenues by region were as follows:
Year Ended December 31,
In thousands202420232022
United States and Canada$2,007,045 $1,733,680 $1,302,241 
Europe, Middle East, and Africa338,997 340,854 391,556 
Asia Pacific
94,795 99,099 101,767 
Total Company$2,440,837 $2,173,633 $1,795,564 
Property, plant, and equipment, net, by geographic area were as follows:
December 31,
In thousands20242023
United States$73,878 $80,035 
Outside United States41,550 48,771 
Total Company$115,428 $128,806 

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:
Year Ended December 31,
In thousands202420232022
Device Solutions$12,145 $12,348 $14,452 
Networked Solutions16,545 16,314 17,539 
Outcomes6,372 5,433 5,501 
Corporate unallocated21,215 21,668 29,271 
Total Company$56,277 $55,763 $66,763