SEGMENT REPORTING

9 Months Ended

Sep. 30, 2012

SEGMENT REPORTING AND GEOGRAPHIC INFORMATION [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT REPORTING

The Company currently operates in four operating segments:

(1) Energy & Security Sonar Solutions whose activities are focused on the following areas – sonar and acoustic related solutions for energy, defense and commercial markets and includes other real-time and embedded hardware & software development and production. Energy & Security Sonar Solutions activities are provided through the Company’s DSIT Solutions Ltd. subsidiary.

(2) The Company’s GridSense segment provides Smart Grid Distribution Automation products and services through its GridSense subsidiaries.  

(3) The Company’s USSI segment's focus is to develop and produce fiber optic sensing systems for the energy and security markets.  These activities are performed through the Company's USSI subsidiary.

(4) The Company's Power Generation Monitoring segment provides products and services which deliver critical, real-time machine information to customers, while its Smart Service™ software provides remote diagnostics that give users real control over their equipment. These activities are performed through the Company's OmniMetrix subsidiary. As these activities were acquired in February 2012 (see Note 3), there are no comparative results reported for these activities for the three and nine month periods ended September 30, 2011.

Other operations include various operations in DSIT and OmniMetrix that do not meet the quantitative thresholds under applicable accounting principles.

	Energy & Security Sonar Solutions			GridSense			USSI			Power Generation Monitoring			Other			Total
Nine months ended September 30, 2012
Revenues from external customers	$	9,170		$	2,884		$	1,317		$	629		$	1,187		$	15,187
Intersegment revenues	—			—			—			—			—			—
Segment gross profit (loss)	3,281			1,240			(773		)	188			526			4,462
Depreciation and amortization	173			288			238			221			106			1,026
Stock compensation expense	—			—			282			—			—			282
Segment net income (loss) before income taxes	619			(3,556		)	(6,032		)	(503		)	82			(9,390		)
Nine months ended September 30, 2011
Revenues from external customers	$	5,654		$	4,684		$	883		$	—		$	1,032		$	12,253
Intersegment revenues	—			—			—			—			—			—
Segment gross profit (loss)	1,715			2,233			(107		)	—			486			4,327
Depreciation and amortization	162			278			160			—			21			621
Stock compensation expense	—			—			—			—			—			—
Segment net income (loss) before income taxes	(782		)	(787		)	(1,899		)	—			180			(3,288		)
Three months ended September 30, 2012
Revenues from external customers	$	2,988		$	977		$	234		$	328		$	525		$	5,052
Intersegment revenues	—			—			—			—			—			—
Segment gross profit (loss)	984			423			(168		)	139			295			1,673
Depreciation and amortization	57			99			85			89			40			370
Stock compensation expense	—			—			282			—			—			282
Segment net income (loss) before income taxes	38			(1,499		)	(2,230		)	(275		)	147			(3,819		)
Three months ended September 30, 2011
Revenues from external customers	$	1,622		$	2,544		$	635		$	—		$	250		$	5,051
Intersegment revenues	—			—			—			—			—			—
Segment gross profit (loss)	329			1,237			190			—			51			1,807
Depreciation and amortization	64			98			51			—			8			221
Stock compensation expense	—			—			—			—			—			—
Segment net income (loss) before income taxes	(512		)	271			(645		)	—			(55		)	(941		)

Reconciliation of Segment Income (Loss) to Consolidated Net Loss

	Nine months ended September 30,						Three months ended September 30,
	2011			2012			2011			2012
Total net loss before income taxes for reportable segments	$	(3,468	)	$	(9,472	)	$	(886	)	$	(3,966	)
Other operational segment net income (loss) before income taxes	180			82			(55		)	147
Total segment net loss before income taxes	(3,288		)	(9,390		)	(941		)	(3,819		)
Unallocated cost of corporate, DSIT and OmniMetrix headquarters*	(2,535		)	(4,863		)	(845		)	(1,694		)
Gain on sale of HangXing	492			—			—			—
Gain on the sale of discontinued operations, net of income taxes	30,683			—			30,683			—
Income tax benefit, net**	12,072			2,476			12,111			1,487
Non-controlling interests (see Note 5)	484			737			181			276
Loss from discontinued operations, net of the loss attributable to non-controlling interests	(1,408		)	—			(393		)	—
Consolidated net income (loss) attributable to Acorn Energy, Inc. shareholders	$	36,500		$	(11,040	)	$	40,796		$	(3,750	)

* Includes stock compensation expense of $315 and $309 for the nine month periods ending September 30, 2011 and 2012, respectively. Includes stock compensation expense of $50 and $127 for the three month periods ending September 30, 2011 and 2012, respectively.

** In the nine months ended September 30, 2012, includes an income tax benefit of $2,600 recorded with respect to net operating loss carryback of the Company's expected consolidated tax loss in the United States.

In the three months ended September 30, 2012, includes an income tax benefit of $1,500 recorded with respect to net operating loss carryback of the Company's expected consolidated tax loss in the United States.

In the three and nine month periods ended September 30, 2011, relates primarily to the recognition of deferred tax assets of $12,000 following the gain on the sale of CoaLogix.