Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Entity Information [Line Items] | |||
Entity Registrant Name | ITRON INC /WA/ | ||
Entity Central Index Key | 780571 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Trading Symbol | ITRI | ||
Entity Common Stock, Shares Outstanding | 38,274,317 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1,580,109,944 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | $1,970,697 | $1,948,728 | $2,178,178 |
Cost of revenues | 1,347,572 | 1,334,195 | 1,463,031 |
Gross profit | 623,125 | 614,533 | 715,147 |
Sales and marketing | 185,239 | 180,371 | 197,603 |
Product development | 175,500 | 176,019 | 178,653 |
General and administrative | 163,101 | 142,559 | 138,290 |
Amortization of business acquisition-related intangible assets | 43,619 | 42,019 | 47,810 |
Restructuring expense | 50,857 | 35,497 | 1,665 |
Goodwill impairment | 977 | 173,249 | 0 |
Total operating expenses | 619,293 | 749,714 | 564,021 |
Operating income (loss) | 3,832 | -135,181 | 151,126 |
Interest income | 494 | 1,620 | 952 |
Interest expense | -11,602 | -10,686 | -10,115 |
Other income (expense), net | -7,633 | -4,007 | -5,744 |
Total other income (expense) | -18,741 | -13,073 | -14,907 |
Income (loss) before income taxes | -14,909 | -148,254 | 136,219 |
Income tax (provision) benefit | -6,641 | 3,664 | -25,995 |
Net income (loss) | -21,550 | -144,590 | 110,224 |
Net income attributable to noncontrolling interests | 1,370 | 2,219 | 1,949 |
Net income (loss) attributable to Itron, Inc. | ($22,920) | ($146,809) | $108,275 |
Earnings (loss) per common share - Basic | ($0.58) | ($3.74) | $2.73 |
Earnings (loss) per common share - Diluted | ($0.58) | ($3.74) | $2.71 |
Weighted average common shares outstanding - Basic | 39,184 | 39,281 | 39,625 |
Weighted average common shares outstanding - Diluted | 39,184 | 39,281 | 39,934 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income (loss) | ($21,550) | ($144,590) | $110,224 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | -90,333 | 7,077 | 21,382 |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | -566 | 2 | -1,689 |
Net hedging loss (gain) reclassified into net income (loss) | 1,054 | 431 | 0 |
Pension plan benefit liability adjustment | -24,947 | 5,117 | -16,940 |
Total other comprehensive income (loss), net of tax | -114,792 | 12,627 | 2,753 |
Total comprehensive income (loss), net of tax | -136,342 | -131,963 | 112,977 |
Comprehensive income (loss) attributable to noncontrolling interest, net of tax: | |||
Net income attributable to noncontrolling interests | 1,370 | 2,219 | 1,949 |
Foreign currency translation adjustments | 0 | -35 | -23 |
Amounts attributable to noncontrolling interests | 1,370 | 2,184 | 1,926 |
Comprehensive income (loss) attributable to Itron, Inc. | ($137,712) | ($134,147) | $111,051 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $112,371 | $124,805 |
Accounts receivable, net | 348,389 | 356,709 |
Inventories | 154,504 | 177,467 |
Deferred tax assets current, net | 39,115 | 37,110 |
Other current assets | 104,307 | 103,275 |
Total current assets | 758,686 | 799,366 |
Property, plant, and equipment, net | 207,789 | 246,820 |
Deferred tax assets noncurrent, net | 74,598 | 58,880 |
Other long-term assets | 28,503 | 33,027 |
Intangible assets, net | 139,909 | 195,840 |
Goodwill | 500,820 | 548,578 |
Total assets | 1,710,305 | 1,882,511 |
LIABILITIES AND EQUITY | ||
Accounts payable | 184,132 | 199,769 |
Other current liabilities | 100,945 | 70,768 |
Wages and benefits payable | 95,248 | 89,314 |
Taxes payable | 21,951 | 10,700 |
Current portion of debt | 30,000 | 26,250 |
Current portion of warranty | 21,063 | 21,048 |
Unearned revenue | 43,436 | 37,163 |
Total current liabilities | 496,775 | 455,012 |
Long-term debt | 293,969 | 352,500 |
Long-term warranty | 15,403 | 24,098 |
Pension plan benefit liability | 101,432 | 88,687 |
Deferred tax liabilities noncurrent, net | 3,808 | 7,326 |
Other long-term obligations | 84,437 | 81,917 |
Total liabilities | 995,824 | 1,009,540 |
Commitments and contingencies (Note 12) | ||
Equity | ||
Preferred stock, no par value, 10 million shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, no par value, 75 million shares authorized, 38,591 and 39,149 shares issued and outstanding | 1,270,045 | 1,290,629 |
Accumulated other comprehensive loss, net | -136,514 | -21,722 |
Accumulated deficit | -436,591 | -413,671 |
Total Itron, Inc. shareholders' equity | 696,940 | 855,236 |
Noncontrolling interests | 17,541 | 17,735 |
Total equity | 714,481 | 872,971 |
Total liabilities and equity | $1,710,305 | $1,882,511 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common Stock, Number of Shares, Par Value and Other Disclosures | ||
Common stock, par value | ||
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 38,591,000 | 39,149,000 |
Common stock, shares outstanding | 38,591,000 | 39,149,000 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures | ||
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Total Itron Inc. Shareholders' Equity [Member] | Common Stock [Member] | Common Stock Including Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Accumulated Deficit) [Member] | Noncontrolling Interests [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance (value) at Dec. 31, 2011 | $921,545 | $906,925 | $1,319,222 | ($37,160) | ($375,137) | $14,620 | |
Balance (shares) at Dec. 31, 2011 | 40,032,000 | ||||||
Net income (loss) | 110,224 | 108,275 | 108,275 | 1,949 | |||
Other comprehensive income (loss), net of tax | 2,753 | 2,776 | 2,776 | -23 | |||
Options exercised (shares) | 54,000 | ||||||
Options exercised (value) | 1,188 | 1,188 | 1,188 | ||||
Restricted stock awards released (shares) | 275,000 | ||||||
Restricted stock awards released (value) | 0 | 0 | 0 | ||||
Issuance of stock-based compensation awards (shares) | 17,000 | ||||||
Issuance of stock-based compensation awards (value) | 769 | 769 | 769 | ||||
Employee stock purchase plan (shares) | 101,000 | ||||||
Employee stock purchase plan (value) | 3,593 | 3,593 | 3,593 | ||||
Stock-based compensation expense | 18,743 | 18,743 | 18,743 | ||||
Employee stock plans income tax deficiencies | -1,861 | -1,861 | -1,861 | ||||
Repurchase of common stock (shares) | -1,202,000 | ||||||
Repurchase of common stock (value) | -47,441 | -47,441 | -47,441 | ||||
Balance (value) at Dec. 31, 2012 | 1,009,513 | 992,967 | 1,294,213 | -34,384 | -266,862 | 16,546 | |
Balance (shares) at Dec. 31, 2012 | 39,277,000 | ||||||
Net income (loss) | -144,590 | -146,809 | -146,809 | 2,219 | |||
Other comprehensive income (loss), net of tax | 12,627 | 12,662 | 12,662 | -35 | |||
Options exercised (shares) | 74,000 | ||||||
Options exercised (value) | 1,771 | 1,771 | 1,771 | ||||
Restricted stock awards released (shares) | 331,000 | ||||||
Restricted stock awards released (value) | 0 | 0 | 0 | ||||
Issuance of stock-based compensation awards (shares) | 18,000 | ||||||
Issuance of stock-based compensation awards (value) | 811 | 811 | 811 | ||||
Employee stock purchase plan (shares) | 94,000 | ||||||
Employee stock purchase plan (value) | 3,528 | 3,528 | 3,528 | ||||
Stock-based compensation expense | 18,039 | 18,039 | 18,039 | ||||
Employee stock plans income tax deficiencies | -756 | -756 | -756 | ||||
Repurchase of common stock (shares) | -645,000 | ||||||
Repurchase of common stock (value) | -26,977 | -26,977 | -26,977 | ||||
Balance (value) at Dec. 31, 2013 | 872,971 | 855,236 | 1,290,629 | -21,722 | -413,671 | 17,735 | |
Balance (value) at Dec. 31, 2013 | 17,735 | ||||||
Balance (shares) at Dec. 31, 2013 | 39,149,000 | 39,149,000 | |||||
Net income (loss) | -21,550 | -22,920 | -22,920 | 1,370 | |||
Other comprehensive income (loss), net of tax | -114,792 | -114,792 | -114,792 | 0 | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | -1,564 | -1,564 | |||||
Options exercised (shares) | 65,000 | ||||||
Options exercised (value) | 1,621 | 1,621 | 1,621 | ||||
Restricted stock awards released (shares) | 281,000 | ||||||
Restricted stock awards released (value) | 0 | 0 | 0 | ||||
Issuance of stock-based compensation awards (shares) | 21,000 | ||||||
Issuance of stock-based compensation awards (value) | 936 | 936 | 936 | ||||
Employee stock purchase plan (shares) | 61,000 | ||||||
Employee stock purchase plan (value) | 2,247 | 2,247 | 2,247 | ||||
Stock-based compensation expense | 16,924 | 16,924 | 16,924 | ||||
Employee stock plans income tax deficiencies | -2,647 | -2,647 | -2,647 | ||||
Repurchase of common stock (shares) | -986,000 | ||||||
Repurchase of common stock (value) | -39,665 | -39,665 | -39,665 | ||||
Balance (value) at Dec. 31, 2014 | 714,481 | 696,940 | 1,270,045 | -136,514 | -436,591 | 17,541 | |
Balance (value) at Dec. 31, 2014 | $17,541 | ||||||
Balance (shares) at Dec. 31, 2014 | 38,591,000 | 38,591,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income (loss) | ($21,550) | ($144,590) | $110,224 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 132,973 | 105,421 | 205,090 |
Depreciation and amortization | 98,463 | 98,845 | 109,471 |
Stock-based compensation | 17,860 | 18,850 | 19,512 |
Amortization of prepaid debt fees | 1,612 | 1,657 | 1,597 |
Deferred taxes, net | -31,542 | -26,757 | -6,775 |
Goodwill impairment | -977 | -173,249 | 0 |
Restructuring expense (recovery), non-cash | 5,220 | 1,259 | -4,839 |
Other adjustments, net | 914 | 551 | -189 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | -16,789 | 13,652 | 36,300 |
Inventories | 6,021 | -10,861 | 28,253 |
Other current assets | -9,447 | -4,143 | -20,052 |
Other long-term assets | 1,582 | 1,093 | 10,578 |
Accounts payables, other current liabilities, and taxes payable | 55,924 | -7,702 | -47,367 |
Wages and benefits payable | 10,334 | -1,995 | -8,967 |
Unearned revenue | 9,240 | -3,274 | 12,009 |
Warranty | -6,364 | -7,552 | -25,919 |
Other operating, net | 10,518 | 3,139 | -8,746 |
Investing activities | |||
Acquisitions of property, plant, and equipment | -44,495 | -60,020 | -50,543 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 860 | 79,017 |
Other investing, net | 2,999 | 4,109 | 4,115 |
Net cash used in investing activities | -41,496 | -56,771 | -125,445 |
Financing activities | |||
Proceeds from borrowings | 47,657 | 35,000 | 80,000 |
Payments on debt | -102,438 | -73,750 | -115,002 |
Issuance of common stock | 3,647 | 5,299 | 4,781 |
Repurchase of common stock | -39,665 | -26,977 | -47,441 |
Other financing, net | -1,078 | 2,990 | 134 |
Net cash used in financing activities | -91,877 | -57,438 | -77,528 |
Effect of foreign exchange rate changes on cash and cash equivalents | -12,034 | -2,818 | 1,208 |
Increase (decrease) in cash and cash equivalents | -12,434 | -11,606 | 3,325 |
Cash and cash equivalents at beginning of period | 124,805 | 136,411 | 133,086 |
Cash and cash equivalents at end of period | 112,371 | 124,805 | 136,411 |
Non-cash transactions: | |||
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | 1,155 | 828 | 8,843 |
Supplemental disclosure of cash flow information: | |||
Income taxes, net | 18,222 | 18,659 | 40,799 |
Interest, net of amounts capitalized | $9,912 | $9,026 | $8,536 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies |
We were incorporated in the state of Washington in 1977. We provide a portfolio of solutions to utilities for the electricity, gas, and water markets throughout the world. | |
Financial Statement Preparation | |
The consolidated financial statements presented in this Annual Report include the Consolidated Statements of Operations, Comprehensive Income (Loss), Equity, and Cash Flows for the years ended December 31, 2014, 2013, and 2012 and the Consolidated Balance Sheets as of December 31, 2014 and 2013 of Itron, Inc. and its subsidiaries. | |
Basis of Consolidation | |
We consolidate all entities in which we have a greater than 50% ownership interest or in which we exercise control over the operations. We use the equity method of accounting for entities in which we have a 50% or less investment and exercise significant influence. Entities in which we have less than a 20% investment and where we do not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. | |
Noncontrolling Interests | |
In several of our consolidated international subsidiaries, we have joint venture partners, who are minority shareholders. Although these entities are not wholly-owned by Itron, we consolidate them because we have a greater than 50% ownership interest or because we exercise control over the operations. The noncontrolling interest balance is adjusted each period to reflect the allocation of net income (loss) and other comprehensive income (loss) attributable to the noncontrolling interests, as shown in our Consolidated Statements of Operations and our Consolidated Statements of Comprehensive Income (Loss) as well as contributions from and distributions to the owners. The noncontrolling interest balance in our Consolidated Balance Sheets represents the proportional share of the equity of the joint venture entities, which is attributable to the minority shareholders. | |
Business Acquisitions | |
On May 1, 2012, we completed the acquisition of SmartSynch, Inc. (SmartSynch). SmartSynch was a provider of smart grid solutions that utilize cellular networks for communications. | |
Cash and Cash Equivalents | |
We consider all highly liquid instruments with remaining maturities of three months or less at the date of acquisition to be cash equivalents. | |
Accounts Receivable and Allowance for Doubtful Accounts | |
Accounts receivable are recorded for invoices issued to customers in accordance with our contractual arrangements. Interest and late payment fees are minimal. Unbilled receivables are recorded when revenues are recognized upon product shipment or service delivery and invoicing occurs at a later date. We record an allowance for doubtful accounts representing our estimate of the probable losses in accounts receivable at the date of the balance sheet based on our historical experience of bad debts and our specific review of outstanding receivables. Accounts receivable are written-off against the allowance when we believe an account, or a portion thereof, is no longer collectible. | |
Inventories | |
Inventories are stated at the lower of cost or market using the first-in, first-out method. Cost includes raw materials and labor, plus applied direct and indirect costs. | |
Derivative Instruments | |
All derivative instruments, whether designated in hedging relationships or not, are recorded on the Consolidated Balance Sheets at fair value as either assets or liabilities. The components and fair values of our derivative instruments are determined using the fair value measurements of significant other observable inputs (Level 2), as defined by GAAP. The net fair value of our derivative instruments may switch between a net asset and a net liability depending on market circumstances at the end of the period. We include the effect of our counterparty credit risk based on current published credit default swap rates when the net fair value of our derivative instruments are in a net asset position and the effect of our own nonperformance risk when the net fair value of our derivative instruments are in a net liability position. | |
For any derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. For any derivative designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded as a component of other comprehensive income (loss) (OCI) and are recognized in earnings when the hedged item affects earnings. Ineffective portions of cash flow hedges are recognized in other income (expense) in the Consolidated Statements of Operations. For a hedge of a net investment, the effective portion of any unrealized gain or loss from the foreign currency revaluation of the hedging instrument is reported in OCI as a net unrealized gain or loss on derivative instruments. Upon termination of a net investment hedge, the net derivative gain/loss will remain in accumulated OCI until such time when earnings are impacted by a sale or liquidation of the associated operations. Ineffective portions of fair value changes or the changes in fair value of derivative instruments that do not qualify for hedging activities are recognized in other income (expense) in the Consolidated Statements of Operations. We classify cash flows from our derivative programs as cash flows from operating activities in the Consolidated Statements of Cash Flows. | |
Derivatives are not used for trading or speculative purposes. Our derivatives are with credit worthy multinational commercial banks, with whom we have master netting agreements; however, our derivative positions are not recorded on a net basis in the consolidated balance sheets. There are no credit-risk-related contingent features within our derivative instruments. Refer to Note 7 and Note 14 for further disclosures of our derivative instruments and their impact on OCI. | |
Property, Plant, and Equipment | |
Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 30 years for buildings and improvements and three to ten years for machinery and equipment, computers and software, and furniture. Leasehold improvements are capitalized and depreciated over the term of the applicable lease, including renewable periods if reasonably assured, or over the useful lives, whichever is shorter. Construction in process represents capital expenditures incurred for assets not yet placed in service. Costs related to internally developed software and software purchased for internal uses are capitalized and are amortized over the estimated useful lives of the assets. Repair and maintenance costs are expensed as incurred. We have no major planned maintenance activities. | |
We review long-lived assets for impairment whenever events or circumstances indicate the carrying amount of an asset group may not be recoverable. Assets held for sale are classified within other current assets in the Consolidated Balance Sheets, are reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. Gains and losses from asset disposals and impairment losses are classified within the Consolidated Statement of Operations according to the use of the asset, except those gains and losses recognized in conjunction with our restructuring activities, which are classified within restructuring expense. | |
Prepaid Debt Fees | |
Prepaid debt fees represent the capitalized direct costs incurred related to the issuance of debt and are recorded as noncurrent assets. These costs are amortized to interest expense over the terms of the respective borrowings, including contingent maturity or call features, using the effective interest method, or straight-line method when associated with a revolving credit facility. When debt is repaid early, the related portion of unamortized prepaid debt fees is written-off and included in interest expense. | |
Business Combinations | |
On the date of acquisition, the assets acquired, liabilities assumed, and any noncontrolling interests in the acquiree are recorded at their fair values. The acquiree's results of operations are also included as of the date of acquisition in our consolidated results. Intangible assets that arise from contractual/legal rights, or are capable of being separated, as well as in-process research and development (IPR&D), are measured and recorded at fair value, and amortized over the estimated useful life. IPR&D is not amortized until such time as the associated development projects are completed or terminated. If a development project is completed, the IPR&D is reclassified as a core technology intangible asset and amortized over its estimated useful life. If the development project is terminated, the recorded value of the associated IPR&D is immediately expensed. If practicable, assets acquired and liabilities assumed arising from contingencies are measured and recorded at fair value. If not practicable, such assets and liabilities are measured and recorded when it is probable that a gain or loss has occurred and the amount can be reasonably estimated. The residual balance of the purchase price, after fair value allocations to all identified assets and liabilities, represents goodwill. Acquisition-related costs are expensed as incurred. Restructuring costs associated with an acquisition are generally expensed in periods subsequent to the acquisition date, and changes in deferred tax asset valuation allowances and acquired income tax uncertainties, including penalties and interest, after the measurement period are recognized as a component of the provision for income taxes. Our acquisitions may include contingent consideration, which require us to recognize the fair value of the estimated liability at the time of the acquisition. Subsequent changes in the estimate of the amount to be paid under the contingent consideration arrangement are recognized in the consolidated statements of operations. Cash payments for contingent or deferred consideration are classified within cash flows from investing activities within the consolidated statements of cash flows. | |
Goodwill and Intangible Assets | |
Goodwill and intangible assets may result from our business acquisitions. Intangible assets may also result from the purchase of assets and intellectual property in a transaction that does not qualify as a business combination. We use estimates, including estimates of useful lives of intangible assets, the amount and timing of related future cash flows, and fair values of the related operations, in determining the value assigned to goodwill and intangible assets. Our finite-lived intangible assets are amortized over their estimated useful lives based on estimated discounted cash flows. IPR&D is considered an indefinite-lived intangible asset and is not subject to amortization until the associated projects are completed or terminated. Finite-lived intangible assets are tested for impairment at the asset group level when events or changes in circumstances indicate the carrying value may not be recoverable. Indefinite-lived intangible assets are tested for impairment annually, when events or changes in circumstances indicate the asset may be impaired, or at the time when their useful lives are determined to be no longer indefinite. | |
Goodwill is assigned to our reporting units based on the expected benefit from the synergies arising from each business combination, determined by using certain financial metrics, including the forecasted discounted cash flows associated with each reporting unit. Each reporting unit corresponds with its respective operating segment, effective in the fourth quarter of 2013. | |
We test goodwill for impairment each year as of October 1, or more frequently should a significant impairment indicator occur. As part of the impairment test, we may elect to perform an assessment of qualitative factors. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit, including goodwill, is less than its carrying amount, or if we elect to bypass the qualitative assessment, we would then proceed with the two-step impairment test. The impairment test involves comparing the fair values of the reporting units to their carrying amounts. If the carrying amount of a reporting unit exceeds its fair value, a second step is required to measure the goodwill impairment loss amount. This second step determines the current fair values of all assets and liabilities of the reporting unit and then compares the implied fair value of the reporting unit's goodwill to the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. | |
Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. We forecast discounted future cash flows at the reporting unit level using risk-adjusted discount rates and estimated future revenues and operating costs, which take into consideration factors such as existing backlog, expected future orders, supplier contracts, and expectations of competitive and economic environments. We also identify similar publicly traded companies and develop a correlation, referred to as a multiple, to apply to the operating results of the reporting units. These combined fair values are then reconciled to the aggregate market value of our common stock on the date of valuation, while considering a reasonable control premium. | |
Contingencies | |
A loss contingency is recorded if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. We evaluate, among other factors, the degree of probability of an unfavorable outcome and our ability to make a reasonable estimate of the amount of the ultimate loss. Loss contingencies that we determine to be reasonably possible, but not probable, are disclosed but not recorded. Changes in these factors and related estimates could materially affect our financial position and results of operations. Legal costs to defend against contingent liabilities are expensed as incurred. | |
Bonus and Profit Sharing | |
We have various employee bonus and profit sharing plans, which provide award amounts for the achievement of annual financial and nonfinancial targets. If management determines it is probable that the targets will be achieved, and the amounts can be reasonably estimated, a compensation accrual is recorded based on the proportional achievement of the financial and nonfinancial targets. Although we monitor and accrue expenses quarterly based on our progress toward the achievement of the annual targets, the actual results at the end of the year may result in awards that are significantly greater or less than the estimates made in earlier quarters. | |
Warranty | |
We offer standard warranties on our hardware products and large application software products. We accrue the estimated cost of new product warranties based on historical and projected product performance trends and costs during the warranty period. Testing of new products in the development stage helps identify and correct potential warranty issues prior to manufacturing. Quality control efforts during manufacturing reduce our exposure to warranty claims. When testing or quality control efforts fail to detect a fault in one of our products, we may experience an increase in warranty claims. We track warranty claims to identify potential warranty trends. If an unusual trend is noted, an additional warranty accrual would be recorded if a failure event is probable and the cost can be reasonably estimated. When new products are introduced, our process relies on historical averages of similar products until sufficient data are available. As actual experience on new products becomes available, it is used to modify the historical averages to ensure the expected warranty costs are within a range of likely outcomes. Management regularly evaluates the sufficiency of the warranty provisions and makes adjustments when necessary. The warranty allowances may fluctuate due to changes in estimates for material, labor, and other costs we may incur to repair or replace projected product failures, and we may incur additional warranty and related expenses in the future with respect to new or established products, which could adversely affect our financial position and results of operations. The long-term warranty balance includes estimated warranty claims beyond one year. Warranty expense is classified within cost of revenues. | |
Restructuring | |
We record a liability for costs associated with an exit or disposal activity under a restructuring project at its fair value in the period in which the liability is incurred. Employee termination benefits considered postemployment benefits are accrued when the obligation is probable and estimable, such as benefits stipulated by human resource policies and practices or statutory requirements. One-time termination benefits are expensed at the date the employee is notified. If the employee must provide future service greater than 60 days, such benefits are expensed ratably over the future service period. For contract termination costs, we record a liability upon the termination of a contract in accordance with the contract terms or the cessation of the use of the rights conveyed by the contract, whichever occurs later. | |
Asset impairments associated with a restructuring project are determined at the asset group level. An impairment may be recorded for assets that are to be abandoned, are to be sold for less than net book value, or are held for sale in which the estimated proceeds less costs to sell are less than the net book value. We may also recognize impairment on an asset group, which is held and used, when the carrying value is not recoverable and exceeds the asset group's fair value. If an asset group is considered a business, a portion of our goodwill balance is allocated to it based on relative fair value. If the sale of an asset group under a restructuring project results in proceeds that exceed the net book value of the asset group, the resulting gain is recorded within restructuring expense in the Consolidated Statements of Operations. | |
Defined Benefit Pension Plans | |
We sponsor both funded and unfunded defined benefit pension plans for certain international employees. We recognize a liability for the projected benefit obligation in excess of plan assets or an asset for plan assets in excess of the projected benefit obligation. We also recognize the funded status of our defined benefit pension plans on our Consolidated Balance Sheets and recognize as a component of OCI, net of tax, the actuarial gains or losses and prior service costs or credits, if any, that arise during the period but that are not recognized as components of net periodic benefit cost. If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the employees' average future service period. | |
Share Repurchase Plan | |
From time to time, we may repurchase shares of Itron common stock under programs authorized by our Board of Directors. Share repurchases are made in the open market or in privately negotiated transactions and in accordance with applicable securities laws. Under applicable Washington State law, shares repurchased are retired and not displayed separately as treasury stock on the financial statements; the value of the repurchased shares is deducted from common stock. | |
Revenue Recognition | |
Revenues consist primarily of hardware sales, software license fees, software implementation, project management services, installation, consulting, and post-sale maintenance support. Revenues are recognized when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the sales price is fixed or determinable, and (4) collectability is reasonably assured. | |
The majority of our revenue arrangements involve multiple deliverables, which combine two or more of the following: hardware, meter reading system software, installation, and/or project management services. Revenue arrangements with multiple deliverables are divided into separate units of accounting if the delivered item(s) has value to the customer on a standalone basis and delivery/performance of the undelivered item(s) is probable. The total arrangement consideration is allocated among the separate units of accounting based on their relative fair values and the applicable revenue recognition criteria considered for each unit of accounting. The amount allocable to a delivered item is limited to the amount that we are entitled to collect and that is not contingent upon the delivery/performance of additional items. Revenues for each deliverable are then recognized based on the type of deliverable, such as 1) when the products are shipped, 2) services are delivered, 3) percentage-of-completion when implementation services are essential to other deliverables in the arrangement, 4) upon receipt of customer acceptance, or 5) transfer of title and risk of loss. The majority of our revenue is recognized when products are shipped to or received by a customer or when services are provided. | |
Hardware revenues are recognized at the time of shipment, receipt by the customer, or, if applicable, upon completion of customer acceptance provisions. | |
Generally, network software revenue is recognized when shipped if all other revenue recognition criteria are met and services are not essential to the functionality of the software. If implementation services are essential to the functionality of the network software, software and implementation revenues are recognized using the percentage-of-completion methodology of contract accounting when project costs are reliably estimated. | |
If the data collection system does not use standard internet protocols and network design services are deemed complex and extensive, revenue from network software and services is recognized using the units-of-delivery method of contract accounting, as network design services and network software are essential to the functionality of the related hardware (network). This methodology results in the deferral of costs and revenues as professional services and software implementation commence prior to deployment of hardware. | |
In the unusual instances when we are unable to reliably estimate the cost to complete a contract at its inception, we use the completed contract method of contract accounting. Revenues and costs are recognized upon substantial completion when remaining costs are insignificant and potential risks are minimal. | |
Under contract accounting, if we estimate that the completion of a contract component (unit of accounting) will result in a loss, the loss is recognized in the period in which it is estimated. We reevaluate the estimated loss through the completion of the contract component and adjust the estimated loss for changes in facts and circumstances. | |
We also enter into multiple deliverable software arrangements that do not include hardware. For this type of arrangement, revenue recognition is dependent upon the availability of vendor specific objective evidence (VSOE) of fair value for each of the deliverables. The lack of VSOE, or the existence of extended payment terms or other inherent risks, may affect the timing of revenue recognition for multiple deliverable software arrangements. | |
Certain of our revenue arrangements include an extended or noncustomary warranty provision that covers all or a portion of a customer's replacement or repair costs beyond the standard or customary warranty period. Whether or not the extended warranty is separately priced in the arrangement, a portion of the arrangement's total consideration is allocated to this extended warranty deliverable. This revenue is deferred and recognized over the extended warranty coverage period. Extended or noncustomary warranties do not represent a significant portion of our revenue. | |
We allocate consideration to each deliverable in an arrangement based on its relative selling price. We determine selling price using VSOE, if it exists, otherwise we use third-party evidence (TPE). We define VSOE as a median price of recent standalone transactions that are priced within a narrow range. TPE is determined based on the prices charged by our competitors for a similar deliverable when sold separately. If neither VSOE nor TPE of selling price exists for a unit of accounting, we use estimated selling price (ESP) to determine the price at which we would transact if the product or service were regularly sold by us on a standalone basis. Our determination of ESP involves a weighting of several factors based on the specific facts and circumstances of the arrangement. The factors considered include the cost to produce the deliverable, the anticipated margin on that deliverable, our ongoing pricing strategy and policies, and the characteristics of the varying markets in which the deliverable is sold. | |
We analyze the selling prices used in our allocation of arrangement consideration on an annual basis. Selling prices are analyzed on a more frequent basis if a significant change in our business necessitates a more timely analysis or if we experience significant variances in our selling prices. | |
Unearned revenue is recorded when a customer pays for products or services, but the criteria for revenue recognition have not been met as of the balance sheet date. Unearned revenues of $76.6 million and $69.8 million at December 31, 2014 and 2013 related primarily to professional services and software associated with our smart metering contracts, extended or noncustomary warranty, and prepaid post-contract support. Deferred costs are recorded for products or services for which ownership (typically defined as title and risk of loss) has transferred to the customer, but the criteria for revenue recognition have not been met as of the balance sheet date. Deferred costs were $24.9 million and $23.5 million at December 31, 2014 and 2013 and are recorded within other assets in the Consolidated Balance Sheets. | |
Hardware and software post-sale maintenance support fees are recognized ratably over the life of the related service contract. Shipping and handling costs and incidental expenses billed to customers are recorded as revenue, with the associated cost charged to cost of revenues. We record sales, use, and value added taxes billed to our customers on a net basis. | |
Product and Software Development Costs | |
Product and software development costs primarily include employee compensation and third party contracting fees. We do not capitalize product development costs, and we do not generally capitalize software development expenses as the costs incurred are immaterial for the relatively short period of time between technological feasibility and the completion of software development. | |
Stock-Based Compensation | |
We measure and recognize compensation expense for all stock-based awards made to employees and directors, including stock options, stock sold pursuant to our Employee Stock Purchase Plan (ESPP), and the issuance of restricted stock units and unrestricted stock awards, based on estimated fair values. The fair value of stock options is estimated at the date of grant using the Black-Scholes option-pricing model, which includes assumptions for the dividend yield, expected volatility, risk-free interest rate, and expected term. For ESPP awards, the fair value is the difference between the market close price of our common stock on the date of purchase and the discounted purchase price. For performance-based restricted stock units and unrestricted stock awards with no market conditions, the fair value is the market close price of our common stock on the date of grant. For restricted stock units with market conditions, the fair value is estimated at the date of award using a Monte Carlo simulation model, which includes assumptions for dividend yield and expected volatility for our common stock and the common stock for companies within the Russell 3000 index, as well as the risk-free interest rate and expected term of the awards. We expense stock-based compensation at the date of grant for unrestricted stock awards. For awards with only a service condition, we expense stock-based compensation, adjusted for estimated forfeitures, using the straight-line method over the requisite service period for the entire award. For awards with performance and service conditions, if vesting is probable, we expense the stock-based compensation, adjusted for estimated forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. For awards with a market condition, we expense the fair value over the requisite service period. Excess tax benefits are credited to common stock when the deduction reduces cash taxes payable. When we have tax deductions in excess of the compensation cost, they are classified as financing cash inflows in the Consolidated Statements of Cash Flows. | |
Effective October 1, 2013, we changed the terms of the ESPP to reduce the discount to 5% from the fair market value of the stock at the end of each fiscal quarter. As a result of this change, the ESPP is no longer considered compensatory, and no compensation expense is recognized for sales of our common stock to employees. | |
Income Taxes | |
We account for income taxes using the asset and liability method of accounting. Deferred tax assets and liabilities are recognized based upon anticipated future tax consequences, in each of the jurisdictions that we operate, attributable to: (1) the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases; and (2) net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The calculation of our tax liabilities involves applying complex tax regulations in different tax jurisdictions to our tax positions. The effect on deferred tax assets and liabilities of a change in tax legislation and/or rates is recognized in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is not more likely than not that such assets will be realized. We do not record tax liabilities on undistributed earnings of international subsidiaries that are permanently reinvested. | |
Foreign Exchange | |
Our consolidated financial statements are reported in U.S. dollars. Assets and liabilities of international subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at the exchange rates in effect on the balance sheet date, or the last business day of the period, if applicable. Revenues and expenses for each subsidiary are translated to U.S. dollars using a weighted average rate for the relevant reporting period. Translation adjustments resulting from this process are included, net of tax, in OCI. Gains and losses that arise from exchange rate fluctuations for monetary asset and liability balances that are not denominated in an entity’s functional currency are included within other income (expense), net in the Consolidated Statements of Operations. Currency gains and losses of intercompany balances deemed to be long-term in nature or designated as a hedge of the net investment in international subsidiaries are included, net of tax, in OCI. Foreign currency losses, net of hedging, were $5.1 million in 2014, compared with net foreign currency losses of $3.3 million in 2013 and $3.8 million in 2012. | |
Fair Value Measurements | |
For assets and liabilities measured at fair value, the GAAP fair value hierarchy prioritizes the inputs used in different valuation methodologies, assigning the highest priority to unadjusted quoted prices for identical assets and liabilities in actively traded markets (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs consist of quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in non-active markets; and model-derived valuations in which significant inputs are corroborated by observable market data either directly or indirectly through correlation or other means. Inputs may include yield curves, volatility, credit risks, and default rates. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to various factors affecting future costs and operations, actual results could differ materially from these estimates. | |
New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 is effective for us on January 1, 2017 using either the retrospective or modified-retrospective transition method. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. |
Earnings_Per_Share_and_Capital
Earnings Per Share and Capital Structure (Text Block) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share [Text Block] | Earnings (Loss) Per Share | |||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per share (EPS): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share data) | ||||||||||||
Net income (loss) available to common shareholders | $ | (22,920 | ) | $ | (146,809 | ) | $ | 108,275 | ||||
Weighted average common shares outstanding - Basic | 39,184 | 39,281 | 39,625 | |||||||||
Dilutive effect of stock-based awards | — | — | 309 | |||||||||
Weighted average common shares outstanding - Diluted | 39,184 | 39,281 | 39,934 | |||||||||
Earnings (loss) per common share - Basic | $ | (0.58 | ) | $ | (3.74 | ) | $ | 2.73 | ||||
Earnings (loss) per common share - Diluted | $ | (0.58 | ) | $ | (3.74 | ) | $ | 2.71 | ||||
Stock-based Awards | ||||||||||||
For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase common stock at the average market price during the period. Related proceeds include the amount the employee must pay upon exercise, future compensation cost associated with the stock award, and the amount of excess tax benefits, if any. As a result of our net losses for 2014 and 2013, there was no dilutive effect to the weighted average common shares outstanding for these years. Approximately 1.4 million, 1.4 million, and 1.1 million stock-based awards were excluded from the calculation of diluted EPS for the years ended December 31, 2014, 2013, and 2012, respectively, because they were anti-dilutive. These stock-based awards could be dilutive in future periods. |
Certain_Balance_Sheet_Componen
Certain Balance Sheet Components (Text Block) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Certain Balance Sheet Components [Text Block] | Certain Balance Sheet Components | |||||||||||
Accounts receivable, net | December 31, 2014 | December 31, 2013 | ||||||||||
(in thousands) | ||||||||||||
Trade receivables (net of allowance of $6,195 and $8,368) | $ | 312,302 | $ | 328,240 | ||||||||
Unbilled receivables | 36,087 | 28,469 | ||||||||||
Total accounts receivable, net | $ | 348,389 | $ | 356,709 | ||||||||
At December 31, 2014 and 2013, $4.7 million and $3.2 million were recorded within trade receivables as billed but not yet paid by customers in accordance with contract retainage provisions. At December 31, 2014 and 2013, contract retainage amounts that were unbilled and classified as unbilled receivables were $4.0 million and $4.3 million. These contract retainage amounts within trade receivables and unbilled receivables are expected to be collected within the following 12 months. | ||||||||||||
At December 31, 2014 and 2013, long-term unbilled receivables totaled $4.3 million and $4.7 million. These long-term unbilled receivables are classified within other long-term assets, as collection is not anticipated within the following 12 months. We had no long-term billed contract retainage receivables at December 31, 2014, as we expect to collect all contract retainage receivables within the following 12 months. | ||||||||||||
Allowance for doubtful account activity | Year Ended December 31, | |||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 8,368 | $ | 7,372 | ||||||||
Provision for doubtful accounts, net | 308 | 1,740 | ||||||||||
Accounts written-off | (1,955 | ) | (636 | ) | ||||||||
Effects of change in exchange rates | (526 | ) | (108 | ) | ||||||||
Ending balance | $ | 6,195 | $ | 8,368 | ||||||||
Inventories | December 31, 2014 | December 31, 2013 | ||||||||||
(in thousands) | ||||||||||||
Materials | $ | 90,557 | $ | 102,596 | ||||||||
Work in process | 8,991 | 13,770 | ||||||||||
Finished goods | 54,956 | 61,101 | ||||||||||
Total inventories | $ | 154,504 | $ | 177,467 | ||||||||
Our inventory levels may vary period to period as a result of our factory scheduling and the timing of contract fulfillments, which may include the buildup of finished goods for shipment. | ||||||||||||
Consigned inventory is held at third-party locations; however, we retain title to the inventory until purchased by the third-party. Consigned inventory, consisting of raw materials and finished goods, was $2.5 million and $6.4 million at December 31, 2014 and 2013, respectively. | ||||||||||||
Property, plant, and equipment, net | December 31, 2014 | December 31, 2013 | ||||||||||
(in thousands) | ||||||||||||
Machinery and equipment | $ | 287,448 | $ | 309,525 | ||||||||
Computers and software | 100,212 | 99,654 | ||||||||||
Buildings, furniture, and improvements | 134,461 | 145,926 | ||||||||||
Land | 21,186 | 24,005 | ||||||||||
Construction in progress, including purchased equipment | 21,007 | 14,257 | ||||||||||
Total cost | 564,314 | 593,367 | ||||||||||
Accumulated depreciation | (356,525 | ) | (346,547 | ) | ||||||||
Property, plant, and equipment, net | $ | 207,789 | $ | 246,820 | ||||||||
Depreciation expense | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Depreciation expense | $ | 54,759 | $ | 56,826 | $ | 61,661 | ||||||
Intangible_Assets_Text_Block
Intangible Assets (Text Block) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||||||||||||||||||
Intangible Assets [Text Block] | Intangible Assets | |||||||||||||||||||||||
The gross carrying amount and accumulated amortization of our intangible assets, other than goodwill, are as follows: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross Assets | Accumulated | Net | Gross Assets | Accumulated | Net | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Core-developed technology | $ | 405,434 | $ | (359,500 | ) | $ | 45,934 | $ | 428,890 | $ | (356,017 | ) | $ | 72,873 | ||||||||||
Customer contracts and relationships | 262,930 | (172,755 | ) | 90,175 | 291,185 | (173,952 | ) | 117,233 | ||||||||||||||||
Trademarks and trade names | 68,205 | (64,905 | ) | 3,300 | 73,117 | (67,449 | ) | 5,668 | ||||||||||||||||
Other | 11,579 | (11,079 | ) | 500 | 11,089 | (11,023 | ) | 66 | ||||||||||||||||
Total intangible assets subject to amortization | 748,148 | (608,239 | ) | 139,909 | 804,281 | (608,441 | ) | 195,840 | ||||||||||||||||
A summary of the intangible asset account activity is as follows: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Beginning balance, intangible assets, gross | $ | 804,281 | $ | 802,540 | ||||||||||||||||||||
Intangible assets acquired | 1,453 | (1,500 | ) | |||||||||||||||||||||
Effect of change in exchange rates | (57,586 | ) | 3,241 | |||||||||||||||||||||
Ending balance, intangible assets, gross | $ | 748,148 | $ | 804,281 | ||||||||||||||||||||
Intangible assets acquired during 2014 consist of purchased technology and purchased software licenses to be sold to others. Amortization expense associated with these intangible assets is classified within Cost of revenues in the Consolidated Statements of Operations. | ||||||||||||||||||||||||
For the year ended December 31, 2013, the adjustment of $1.5 million to intangible assets acquired is associated with the correction of an error for a long-term revenue contract from the SmartSynch acquisition, which occurred on May 1, 2012. During the second quarter of 2013, we finalized the purchase price allocation related to this acquisition and recorded certain adjustments that are reflected as Intangible assets acquired in the table above. These adjustments primarily affected the fair value calculation of certain accrued liabilities associated with specific contracts. Among these adjustments was the correction of an error associated with a long-term revenue contract acquired from SmartSynch. In May 2013, we determined that certain manufacturing costs were not reflected in the model used to value this contract at acquisition. Once these costs were properly added to the total cost and profitability estimates, we determined the total contract would result in a loss over the contract term. Previously, we had recognized a customer relationship intangible asset of $1.5 million associated with this contract, with amortization scheduled to begin in 2014 based on the contract's original projected cash flow. Since the contract is in an overall loss position, we determined that the intangible asset had no value. We reduced the value of this intangible asset to zero with a corresponding adjustment to goodwill. | ||||||||||||||||||||||||
Intangible assets of our international subsidiaries are recorded in their respective functional currencies; therefore, the carrying amounts of intangible assets increase or decrease, with a corresponding change in accumulated OCI, due to changes in foreign currency exchange rates. | ||||||||||||||||||||||||
A summary of intangible asset amortization expense is as follows: | ||||||||||||||||||||||||
Amortization expense | Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Amortization expense | $ | 43,704 | $ | 42,019 | $ | 47,810 | ||||||||||||||||||
Estimated future annual amortization expense is as follows: | ||||||||||||||||||||||||
Years ending December 31, | Estimated Annual | |||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2015 | $ | 33,562 | ||||||||||||||||||||||
2016 | 26,522 | |||||||||||||||||||||||
2017 | 19,485 | |||||||||||||||||||||||
2018 | 13,571 | |||||||||||||||||||||||
2019 | 10,501 | |||||||||||||||||||||||
Beyond 2019 | 36,268 | |||||||||||||||||||||||
Total intangible assets subject to amortization | $ | 139,909 | ||||||||||||||||||||||
Goodwill_Text_Block
Goodwill (Text Block) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill Excluding Non Goodwill Intangibles [Abstract] | ||||||||||||||||
Goodwill Disclosure [Text Block] | Goodwill | |||||||||||||||
The following table reflects goodwill allocated to each reporting segment at December 31, 2014 and 2013: | ||||||||||||||||
Electricity | Gas | Water | Total Company | |||||||||||||
(in thousands) | ||||||||||||||||
Goodwill balance at January 1, 2013 | ||||||||||||||||
Goodwill before impairment | $ | 475,711 | $ | 383,743 | $ | 414,394 | $ | 1,273,848 | ||||||||
Accumulated impairment losses | (249,502 | ) | — | (323,330 | ) | (572,832 | ) | |||||||||
Goodwill, net | 226,209 | 383,743 | 91,064 | 701,016 | ||||||||||||
Goodwill impairment | (173,249 | ) | — | — | (173,249 | ) | ||||||||||
Adjustments of previous acquisitions | 3,958 | — | — | 3,958 | ||||||||||||
Effect of change in exchange rates | 3,314 | 11,135 | 2,404 | 16,853 | ||||||||||||
Goodwill balance at December 31, 2013 | ||||||||||||||||
Goodwill before impairment | 493,610 | 394,878 | 429,783 | 1,318,271 | ||||||||||||
Accumulated impairment losses | (433,378 | ) | — | (336,315 | ) | (769,693 | ) | |||||||||
Goodwill, net | 60,232 | 394,878 | 93,468 | 548,578 | ||||||||||||
Goodwill impairment | (977 | ) | — | — | (977 | ) | ||||||||||
Effect of change in exchange rates | (3,568 | ) | (35,393 | ) | (7,820 | ) | (46,781 | ) | ||||||||
Goodwill balance at December 31, 2014 | ||||||||||||||||
Goodwill before impairment | 449,668 | 359,485 | 382,655 | 1,191,808 | ||||||||||||
Accumulated impairment losses | (393,981 | ) | — | (297,007 | ) | (690,988 | ) | |||||||||
Goodwill, net | $ | 55,687 | $ | 359,485 | $ | 85,648 | $ | 500,820 | ||||||||
In both 2014 and 2013, we tested the Gas and Water reporting units, in conjunction with our annual goodwill impairment testing. We used the qualitative assessment methodology, as we determined it was more likely than not that the fair values of these reporting units exceeded their respective carrying values. As a result, we did not need to perform the quantitative impairment test for the Gas and Water reporting units, and no goodwill impairments were recognized. | ||||||||||||||||
In 2014, as a result of the impairment recognized in 2013, we concluded that it was not more likely than not that the fair value of the Electricity reporting unit exceeded its carrying value, and we therefore performed a quantitative analysis of this reporting unit. No goodwill impairment was required to be recognized as the result of this quantitative analysis. | ||||||||||||||||
Refer to Note 1 for a description of our reporting units and the methods used to determine the fair values of our reporting units and to determine the amount of any goodwill impairment. | ||||||||||||||||
During our 2013 annual goodwill impairment test, we determined that the carrying value of the Electricity reporting unit exceeded its fair value, primarily due to delays in global smart grid projects and lower volumes and pricing pressures in certain regions in Europe and Asia/Pacific. The revised forecast for the Electricity business drove a decrease in the fair value of the reporting unit. As a result, we performed the second step of the goodwill impairment test for the Electricity reporting unit, which indicated a goodwill impairment of $173.2 million. This charge was recorded during the fourth quarter of 2013. Upon finalizing our 2013 goodwill analysis late in the year-end reporting process, we determined $977,000 of additional goodwill impairment expense should have been recognized. In accordance with relevant accounting guidance, we evaluated the materiality of the error from a qualitative and quantitative perspective. Based on such evaluation, we concluded that recognizing the incremental goodwill impairment during the three months ended March 31, 2014 would not be material, quantitatively or qualitatively, to our results of operations for the three months ended March 31, 2014 nor to our full year results of operations for 2014 and would not have had a material impact on our results for the year ended December 31, 2013. | ||||||||||||||||
During the second quarter of 2013, we finalized the purchase price allocation related to the SmartSynch acquisition, which was completed on May 1, 2012, and recorded certain adjustments that are reflected in the Adjustments of previous acquisitions line above. These adjustments primarily affected the fair value calculation of certain accrued liabilities associated with specific contracts. Among these adjustments is the correction of an error associated with a long-term revenue contract acquired from SmartSynch. In May 2013, we determined that certain manufacturing costs were not reflected in the model used to value this contract at acquisition. Once these costs were properly added to the total cost and profitability estimates, we determined the total contract would result in a loss of $2.4 million over the contract term. Therefore, we recognized a liability for this expected loss on the contract and made a corresponding adjustment to goodwill. Further, we had previously recognized a customer relationship intangible asset of $1.5 million associated with this contract, with amortization scheduled to begin in 2014 based on the contract's original projected cash flow. Since the contract is in an overall loss position, we determined that the intangible asset had no value. We reduced the value of this intangible asset to zero with a corresponding adjustment to goodwill. | ||||||||||||||||
Goodwill and accumulated impairment losses associated with our international subsidiaries are recorded in their respective functional currencies; therefore, the carrying amounts of these balances increase or decrease, with a corresponding change in accumulated OCI, due to changes in foreign currency exchange rates. |
Debt_Text_Block
Debt (Text Block) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt [Text Block] | Debt | |||||||||||
The components of our borrowings are as follows: | ||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||
(in thousands) | ||||||||||||
Credit Facilities | ||||||||||||
USD denominated term loan | $ | 232,500 | $ | 258,750 | ||||||||
Multicurrency revolving line of credit | 91,469 | 120,000 | ||||||||||
Total debt | 323,969 | 378,750 | ||||||||||
Less: Current portion of debt | 30,000 | 26,250 | ||||||||||
Long-term debt | $ | 293,969 | $ | 352,500 | ||||||||
Credit Facilities | ||||||||||||
In August 2011, we entered into a senior secured credit facility (2011 credit facility). The 2011 credit facility consists of a $300 million U.S. dollar term loan (the term loan) and a multicurrency revolving line of credit (the revolver) with a principal amount of up to $660 million. Both the term loan and the revolver mature on August 8, 2016, and amounts borrowed under the revolver are classified as long-term. Amounts borrowed under the revolver during the credit facility term may be repaid and reborrowed until the revolver's maturity, at which time the revolver will terminate, and all outstanding loans, together with all accrued and unpaid interest, must be repaid. Amounts not borrowed under the revolver are subject to a commitment fee, which is paid in arrears on the last day of each fiscal quarter, ranging from 0.20% to 0.40% per annum depending on our total leverage ratio as of the most recently ended fiscal quarter. Amounts repaid on the term loan may not be reborrowed. The 2011 credit facility permits us and certain of our foreign subsidiaries to borrow in U.S. dollars, euros, British pounds, or, with lender approval, other currencies readily convertible into U.S. dollars. All obligations under the 2011 credit facility are guaranteed by Itron, Inc. and material U.S. domestic subsidiaries and are secured by a pledge of substantially all of the assets of Itron, Inc. and material U.S. domestic subsidiaries, including a pledge of 100% of the capital stock of material U.S. domestic subsidiaries and up to 66% of the voting stock (100% of the non-voting stock) of their first-tier foreign subsidiaries. In addition, the obligations of any foreign subsidiary who is a foreign borrower, as defined by the 2011 credit facility, are guaranteed by the foreign subsidiary and by its direct and indirect foreign parents. The 2011 credit facility includes debt covenants, which contain certain financial thresholds and place certain restrictions on the incurrence of debt, investments, and the issuance of dividends. We were in compliance with the debt covenants under the 2011 credit facility at December 31, 2014. | ||||||||||||
Scheduled principal repayments for the term loan are due quarterly in the amount of $7.5 million through June 2016, and the remainder due at maturity on August 8, 2016. The term loan may be repaid early in whole or in part, subject to certain minimum thresholds, without penalty. | ||||||||||||
Required minimum principal payments on our outstanding credit facilities are as follows: | ||||||||||||
Minimum Payments | ||||||||||||
(in thousands) | ||||||||||||
2015 | $ | 30,000 | ||||||||||
2016 | 293,969 | |||||||||||
2017 | — | |||||||||||
2018 | — | |||||||||||
2019 | — | |||||||||||
Total minimum payments on debt | $ | 323,969 | ||||||||||
Under the 2011 credit facility, we elect applicable market interest rates for both the term loan and any outstanding revolving loans. We also pay an applicable margin, which is based on our total leverage ratio (as defined in the credit agreement). The applicable rates per annum may be based on either: (1) the LIBOR rate or EURIBOR rate, plus an applicable margin, or (2) the Alternate Base Rate, plus an applicable margin. The Alternate Base Rate election is equal to the greatest of three rates: (i) the prime rate, (ii) the Federal Reserve effective rate plus 1/2 of 1%, or (iii) one month LIBOR plus 1%. At December 31, 2014, the interest rate for both the term loan and the USD revolver was 1.42% (the LIBOR rate plus a margin of 1.25%), and the interest rate for the EUR revolver was 1.27% (the EURIBOR rate plus a margin of 1.25%). | ||||||||||||
Total credit facility repayments were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
2011 credit facility term loan | $ | 26,250 | $ | 18,750 | $ | 15,002 | ||||||
2011 credit facility multicurrency revolving line of credit(1) | 76,188 | 55,000 | 100,000 | |||||||||
Total credit facility repayments | $ | 102,438 | $ | 73,750 | $ | 115,002 | ||||||
-1 | We borrowed $47.7 million, $35.0 million and $80.0 million under the multicurrency revolving line of credit during 2014, 2013 and 2012, respectively. | |||||||||||
At December 31, 2014, $91.5 million was outstanding under the 2011 credit facility revolver, and $50.4 million was utilized by outstanding standby letters of credit, resulting in $518.1 million available for additional borrowings. | ||||||||||||
At December 31, 2014 and 2013, unamortized prepaid debt fees were as follows: | ||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||
(in thousands) | ||||||||||||
Unamortized prepaid debt fees | $ | 2,298 | $ | 3,810 | ||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments (Text Block) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments [Text Block] | Derivative Financial Instruments | ||||||||||||||||||||||||||||||||||||||||
As part of our risk management strategy, we use derivative instruments to hedge certain foreign currency and interest rate exposures. Refer to Note 1, Note 14, and Note 15 for additional disclosures on our derivative instruments. | |||||||||||||||||||||||||||||||||||||||||
The fair values of our derivative instruments are determined using the income approach and significant other observable inputs (also known as “Level 2”). We have used observable market inputs based on the type of derivative and the nature of the underlying instrument. The key inputs include interest rate yield curves (swap rates and futures) and foreign exchange spot and forward rates, all of which are available in an active market. We have utilized the mid-market pricing convention for these inputs. We include, as a discount to the derivative asset, the effect of our counterparty credit risk based on current published credit default swap rates when the net fair value of our derivative instruments is in a net asset position. We consider our own nonperformance risk when the net fair value of our derivative instruments is in a net liability position by discounting our derivative liabilities to reflect the potential credit risk to our counterparty through applying a current market indicative credit spread to all cash flows. | |||||||||||||||||||||||||||||||||||||||||
The fair values of our derivative instruments are as follows: | |||||||||||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815-20 | |||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Other long-term assets | $ | 75 | $ | — | ||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | 107 | 41 | ||||||||||||||||||||||||||||||||||||||
Total asset derivatives | $ | 182 | $ | 41 | |||||||||||||||||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815-20 | |||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Other current liabilities | $ | 1,317 | $ | 1,557 | ||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Other long-term obligations | — | 474 | ||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current liabilities | 236 | 145 | ||||||||||||||||||||||||||||||||||||||
Total liability derivatives | $ | 1,553 | $ | 2,176 | |||||||||||||||||||||||||||||||||||||
OCI during the reporting period for our derivative and nonderivative instruments designated as hedging instruments, net of tax, was as follows: | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gain (loss) on hedging instruments at January 1, | $ | (15,636 | ) | $ | (16,069 | ) | |||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on derivative instruments | (566 | ) | 2 | ||||||||||||||||||||||||||||||||||||||
Realized (gains) losses reclassified into net income (loss) | 1,054 | 431 | |||||||||||||||||||||||||||||||||||||||
Net unrealized gain (loss) on hedging instruments at December 31, | $ | (15,148 | ) | $ | (15,636 | ) | |||||||||||||||||||||||||||||||||||
Included in the net unrealized loss on hedging instruments at December 31, 2014 and 2013 is a loss of $14.4 million, net of tax, related to our nonderivative net investment hedge, which terminated in 2011. This loss on our net investment hedge will remain in accumulated OCI until such time when earnings are impacted by a sale or liquidation of the associated foreign operation. | |||||||||||||||||||||||||||||||||||||||||
A summary of the potential effect of netting arrangements on our financial position related to the offsetting of our recognized derivative assets and liabilities under master netting arrangements or similar agreements is as follows: | |||||||||||||||||||||||||||||||||||||||||
Offsetting of Derivative Assets | |||||||||||||||||||||||||||||||||||||||||
Gross Amounts Not | |||||||||||||||||||||||||||||||||||||||||
Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets Presented in | Derivative Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||||||||||||||||||||||
the Consolidated | |||||||||||||||||||||||||||||||||||||||||
Balance Sheets | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | $ | 182 | $ | (182 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||||||
December 31, 2013 | $ | 41 | $ | (40 | ) | $ | — | $ | 1 | ||||||||||||||||||||||||||||||||
Offsetting of Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||
Gross Amounts Not | |||||||||||||||||||||||||||||||||||||||||
Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities Presented in | Derivative Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||||||||||||||||||||
the Consolidated | |||||||||||||||||||||||||||||||||||||||||
Balance Sheets | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | $ | 1,553 | $ | (182 | ) | $ | — | $ | 1,371 | ||||||||||||||||||||||||||||||||
December 31, 2013 | $ | 2,176 | $ | (40 | ) | $ | — | $ | 2,136 | ||||||||||||||||||||||||||||||||
Our derivative assets and liabilities consist of foreign exchange forward and interest rate swap contracts with eight counterparties at December 31, 2014 and seven counterparties at December 31, 2013. No derivative asset or liability balance with any of our counterparties was individually significant at December 31, 2014 or 2013. Our derivative contracts with each of these counterparties exist under agreements that provide for the net settlement of all contracts through a single payment in a single currency in the event of default. We have no pledges of cash collateral against our obligations nor have we received pledges of cash collateral from our counterparties under the associated derivative contracts. | |||||||||||||||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||||||||||||||
As a result of our floating rate debt, we are exposed to variability in our cash flows from changes in the applicable interest rate index. We enter into swaps to achieve a fixed rate of interest on the hedged portion of debt in order to increase our ability to forecast interest expense. The objective of these swaps is to reduce the variability of cash flows from increases in the LIBOR base borrowing rates on our floating rate credit facility. The swaps do not protect us from changes to the applicable margin under our credit facility. | |||||||||||||||||||||||||||||||||||||||||
In May 2012, we entered into six forward starting pay-fixed receive one-month LIBOR interest rate swaps. The interest rate swaps convert $200 million of our LIBOR based debt from a floating LIBOR interest rate to a fixed interest rate of 1.00% (excluding the applicable margin on the debt) and are effective July 31, 2013 to August 8, 2016. The cash flow hedges are expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk through the term of the hedge. Consequently, effective changes in the fair value of the interest rate swaps are recorded as a component of OCI and will be recognized in earnings when the hedged item affects earnings. The amounts paid or received on the hedges will be recognized as adjustments to interest expense. The amount of net losses expected to be reclassified into earnings in the next 12 months is $1.3 million. At December 31, 2014, our LIBOR-based debt balance was $292.5 million. | |||||||||||||||||||||||||||||||||||||||||
We will continue to monitor and assess our interest rate risk and may institute additional interest rate swaps or other derivative instruments to manage such risk in the future. | |||||||||||||||||||||||||||||||||||||||||
The before-tax effect of our cash flow derivative instruments on the Consolidated Balance Sheets and the Consolidated Statements of Operations for the years ended December 31 are as follows: | |||||||||||||||||||||||||||||||||||||||||
Derivatives in ASC 815-20 | Amount of Gain (Loss) Recognized | Gain (Loss) Reclassified from Accumulated | Gain (Loss) Recognized in Income on | ||||||||||||||||||||||||||||||||||||||
Cash Flow | in OCI on Derivative | OCI into Income (Effective Portion) | Derivative (Ineffective Portion) | ||||||||||||||||||||||||||||||||||||||
Hedging Relationships | (Effective Portion) | Location | Amount | Location | Amount | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | $ | (915 | ) | $ | (3 | ) | $ | (2,725 | ) | Interest expense | $ | (1,704 | ) | $ | 697 | $ | — | Interest expense | $ | — | $ | — | $ | — | |||||||||||||||||
Derivatives Not Designated as Hedging Relationships | |||||||||||||||||||||||||||||||||||||||||
We are also exposed to foreign exchange risk when we enter into non-functional currency transactions, both intercompany and third-party. At each period-end, non-functional currency monetary assets and liabilities are revalued with the change recorded to other income and expense. We enter into monthly foreign exchange forward contracts (a total of 517 contracts were entered into during the year ended December 31, 2014), which are not designated for hedge accounting, with the intent to reduce earnings volatility associated with currency exposures. The notional amounts of the contracts ranged from $86,000 to $20.7 million, offsetting our exposures from the euro, British pound, Canadian dollar, Australian dollar, Mexican Peso and various other currencies. | |||||||||||||||||||||||||||||||||||||||||
The effect of our foreign exchange forward derivative instruments on the Consolidated Statements of Operations for the years ended December 31 is as follows: | |||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as | Gain (Loss) Recognized on Derivatives in Other Income (Expense) | ||||||||||||||||||||||||||||||||||||||||
Hedging Instrument under ASC 815-20 | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | (5,248 | ) | $ | (145 | ) | $ | (422 | ) |
Defined_Benefit_Pension_Plans_
Defined Benefit Pension Plans (Text Block) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ||||||||||||||||||||||||
Defined Benefit Pension Plans [Text Block] | Defined Benefit Pension Plans | |||||||||||||||||||||||
We sponsor both funded and unfunded defined benefit pension plans for our international employees, primarily in Germany, France, Italy, Indonesia, Brazil, and Spain, offering death and disability, retirement, and special termination benefits. The defined benefit obligation is calculated annually by using the projected unit credit method. The measurement date for the pension plans was December 31, 2014. | ||||||||||||||||||||||||
Our general funding policy for these qualified pension plans is to contribute amounts sufficient to satisfy regulatory funding standards of the respective countries for each plan. Our contributions for both funded and unfunded plans are paid from cash flows from our operations. We contributed $375,000 and $436,000 to the defined benefit pension plans for the years ended December 31, 2014 and 2013, respectively. The timing of when contributions are made can vary by plan and from year to year. For 2015, assuming that actual plan asset returns are consistent with our expected rate of return, and that interest rates remain constant, we expect to contribute approximately $426,000 to our defined benefit pension plans. | ||||||||||||||||||||||||
The following tables summarize the benefit obligation, plan assets, funded status of the defined benefit plans, amounts recognized in the Consolidated Balance Sheets and amounts recognized in accumulated other comprehensive income (AOCI) at December 31, 2014 and 2013: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at January 1, | $ | 102,662 | $ | 101,766 | ||||||||||||||||||||
Service cost | 3,559 | 4,205 | ||||||||||||||||||||||
Interest cost | 3,476 | 3,355 | ||||||||||||||||||||||
Actuarial (gain) loss | 25,838 | (6,160 | ) | |||||||||||||||||||||
Benefits paid | (5,519 | ) | (5,369 | ) | ||||||||||||||||||||
Foreign currency exchange rate changes | (13,921 | ) | 2,698 | |||||||||||||||||||||
Other | 83 | 2,167 | ||||||||||||||||||||||
Benefit obligation at December 31, | $ | 116,178 | $ | 102,662 | ||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at January 1, | $ | 11,680 | $ | 8,561 | ||||||||||||||||||||
Actual return on plan assets | 494 | 119 | ||||||||||||||||||||||
Company contributions | 375 | 436 | ||||||||||||||||||||||
Benefits paid | (433 | ) | (537 | ) | ||||||||||||||||||||
Foreign currency exchange rate changes | (1,355 | ) | (267 | ) | ||||||||||||||||||||
Other | — | 3,368 | ||||||||||||||||||||||
Fair value of plan assets at December 31, | 10,761 | 11,680 | ||||||||||||||||||||||
Net pension plan benefit liability at fair value | $ | 105,417 | $ | 90,982 | ||||||||||||||||||||
The weighted average discount rate used to measure our benefit obligations, which is based on published bond indexes, decreased by 140 basis points from December 31, 2013 to December 31, 2014, driving a $25.8 million actuarial loss during 2014, which is recognized in OCI. The significant actuarial weighted average assumptions are discussed in greater detail below. | ||||||||||||||||||||||||
Our defined benefit pension plans are denominated in the functional currencies of the respective countries in which the plans are sponsored; therefore, the balances increase or decrease, with a corresponding change in OCI, due to changes in foreign currency exchange rates. Amounts recognized on the Consolidated Balance Sheets consist of: | ||||||||||||||||||||||||
At December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Plan assets in other long-term assets | $ | 567 | $ | 1,426 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Current portion of pension plan liability in wages and benefits payable | 4,552 | 3,721 | ||||||||||||||||||||||
Long-term portion of pension plan liability | 101,432 | 88,687 | ||||||||||||||||||||||
Net pension plan benefit liability | $ | 105,417 | $ | 90,982 | ||||||||||||||||||||
Amounts in accumulated other comprehensive income (pre-tax) that have not yet been recognized as components of net periodic benefit costs consist of: | ||||||||||||||||||||||||
At December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Net actuarial loss | $ | 38,462 | $ | 13,262 | ||||||||||||||||||||
Net prior service cost | 1,203 | 1,133 | ||||||||||||||||||||||
Amount included in accumulated other comprehensive income | $ | 39,665 | $ | 14,395 | ||||||||||||||||||||
Amounts recognized in OCI (pre-tax) are as follows: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Net actuarial (gain) loss | $ | 25,838 | $ | (5,881 | ) | $ | 24,492 | |||||||||||||||||
Settlement/curtailment loss | (55 | ) | (325 | ) | (13 | ) | ||||||||||||||||||
Plan asset (gain) loss | 129 | 516 | 108 | |||||||||||||||||||||
Amortization of net actuarial gain (loss) | (572 | ) | (926 | ) | (161 | ) | ||||||||||||||||||
Amortization of prior service cost | (138 | ) | (70 | ) | (68 | ) | ||||||||||||||||||
Other | 68 | (658 | ) | — | ||||||||||||||||||||
Other comprehensive (income) loss | $ | 25,270 | $ | (7,344 | ) | $ | 24,358 | |||||||||||||||||
If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the employees' average future service period. The estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2015 is $2.2 million. | ||||||||||||||||||||||||
Net periodic pension benefit costs for our plans include the following components: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Service cost | $ | 3,559 | $ | 4,205 | $ | 2,700 | ||||||||||||||||||
Interest cost | 3,476 | 3,355 | 3,625 | |||||||||||||||||||||
Expected return on plan assets | (619 | ) | (635 | ) | (331 | ) | ||||||||||||||||||
Amortization of prior service costs | 138 | 70 | 68 | |||||||||||||||||||||
Amortization of actuarial net (gain) loss | 572 | 926 | 161 | |||||||||||||||||||||
Settlements and other | 55 | (493 | ) | 97 | ||||||||||||||||||||
Net periodic benefit cost | $ | 7,181 | $ | 7,428 | $ | 6,320 | ||||||||||||||||||
The significant actuarial weighted average assumptions used in determining the benefit obligations and net periodic benefit cost for our benefit plans are as follows: | ||||||||||||||||||||||||
At and For The Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Actuarial assumptions used to determine benefit obligations at end of period: | ||||||||||||||||||||||||
Discount rate | 2.36 | % | 3.76 | % | 3.36 | % | ||||||||||||||||||
Expected annual rate of compensation increase | 3.37 | % | 3.33 | % | 3.41 | % | ||||||||||||||||||
Actuarial assumptions used to determine net periodic benefit cost for the period: | ||||||||||||||||||||||||
Discount rate | 3.76 | % | 3.36 | % | 5.51 | % | ||||||||||||||||||
Expected rate of return on plan assets | 5.4 | % | 3.63 | % | 4.08 | % | ||||||||||||||||||
Expected annual rate of compensation increase | 3.33 | % | 3.41 | % | 3.38 | % | ||||||||||||||||||
We determine a discount rate for our plans based on the estimated duration of each plan’s liabilities. For our euro denominated defined benefit pension plans, which represent 94% of our benefit obligation, we use two discount rates, with consideration of the duration of the plans, using a hypothetical yield curve developed from euro-denominated AA-rated corporate bond issues, partially weighted for market value, with minimum amounts outstanding of €500 million for bonds with less than 10 years to maturity and €50 million for bonds with 10 or more years to maturity, and excluding the highest and lowest yielding 10% of bonds within each maturity group. The discount rates used, depending on the duration of the plans, were 1.50% and 2.00%. As a result of the 140 basis point decrease in the weighted average discount rate used to measure our benefit obligations, the actuarial loss, which is recognized in OCI, was $25.8 million in 2014. | ||||||||||||||||||||||||
Our expected rate of return on plan assets is derived from a study of actual historic returns achieved and anticipated future long-term performance of plan assets, specific to plan investment asset category. While the study primarily gives consideration to recent insurers’ performance and historical returns, the assumption represents a long-term prospective return. | ||||||||||||||||||||||||
The total accumulated benefit obligation for our defined benefit pension plans was $104.1 million and $93.3 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
We have one plan in which the fair value of plan assets exceeds the plan's accumulated benefit obligation. | ||||||||||||||||||||||||
The total obligation and fair value of plan assets for plans with accumulated benefit obligations exceeding the fair value of plan assets are as follows: | ||||||||||||||||||||||||
At December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Projected benefit obligation | $ | 114,150 | $ | 99,694 | ||||||||||||||||||||
Accumulated benefit obligation | 102,146 | 90,803 | ||||||||||||||||||||||
Fair value of plan assets | 8,166 | 7,286 | ||||||||||||||||||||||
Our asset investment strategy focuses on maintaining a portfolio using primarily insurance funds, which are accounted for as investments and measured at fair value, in order to achieve our long-term investment objectives on a risk adjusted basis. Our general funding policy for these qualified pension plans is to contribute amounts sufficient to satisfy regulatory funding standards of the respective countries for each plan. | ||||||||||||||||||||||||
The fair values of our plan investments by asset category as of December 31, 2014, and 2013 are as follows: | ||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Unobservable Inputs | ||||||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Cash | $ | 726 | $ | 726 | $ | — | ||||||||||||||||||
Insurance funds | 7,440 | — | 7,440 | |||||||||||||||||||||
Other securities | 2,595 | — | 2,595 | |||||||||||||||||||||
Total fair value of plan assets | $ | 10,761 | $ | 726 | $ | 10,035 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||
Cash | $ | 846 | $ | 846 | $ | — | ||||||||||||||||||
Insurance funds | 8,260 | — | 8,260 | |||||||||||||||||||||
Other securities | $ | 2,574 | $ | — | $ | 2,574 | ||||||||||||||||||
Total fair value of plan assets | $ | 11,680 | $ | 846 | $ | 10,834 | ||||||||||||||||||
As the plan assets are not significant to our total company assets, no further breakdown is provided. | ||||||||||||||||||||||||
The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||
Balance at January 1, 2014 | Net Realized and Unrealized Gains/(Losses) | Net Purchases, Issuances, Settlements, and Other | Net Transfers Into/(Out of) Level 3 | Effect of Foreign Currency | Balance at December 31, 2014 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Insurance funds | $ | 8,260 | $ | 133 | $ | 25 | $ | — | $ | (978 | ) | $ | 7,440 | |||||||||||
Other securities | 2,574 | 320 | (106 | ) | 172 | (365 | ) | 2,595 | ||||||||||||||||
Total | $ | 10,834 | $ | 453 | $ | (81 | ) | $ | 172 | $ | (1,343 | ) | $ | 10,035 | ||||||||||
Balance at January 1, 2013 | Net Realized and Unrealized Gains/(Losses) | Net Purchases, Issuances, Settlements, and Other | Net Transfers Into/(Out of) Level 3 | Effect of Foreign Currency | Balance at December 31, 2013 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Insurance funds | $ | 7,658 | $ | 178 | $ | 105 | $ | — | $ | 319 | $ | 8,260 | ||||||||||||
Other securities | — | (70 | ) | 3,050 | — | (406 | ) | 2,574 | ||||||||||||||||
Total | $ | 7,658 | $ | 108 | $ | 3,155 | $ | — | $ | (87 | ) | $ | 10,834 | |||||||||||
Annual benefit payments, including amounts to be paid from our assets for unfunded plans, and reflecting expected future service, as appropriate, are expected to be paid as follows: | ||||||||||||||||||||||||
Year Ending December 31, | Estimated Annual Benefit Payments | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2015 | $ | 4,603 | ||||||||||||||||||||||
2016 | 3,285 | |||||||||||||||||||||||
2017 | 3,754 | |||||||||||||||||||||||
2018 | 3,960 | |||||||||||||||||||||||
2019 | 4,122 | |||||||||||||||||||||||
2020 - 2024 | 27,180 | |||||||||||||||||||||||
StockBased_Compensation_Text_B
Stock-Based Compensation (Text Block) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||||||||||||
Stock-Based Compensation [Text Block] | Stock-Based Compensation | ||||||||||||||||
We record stock-based compensation expense for awards of stock options, stock sold pursuant to our ESPP, and the issuance of restricted stock units and unrestricted stock awards. We expense stock-based compensation primarily using the straight-line method over the requisite service period. For the years ended December 31, stock-based compensation expense and the related tax benefit were as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Stock options | $ | 2,333 | $ | 2,074 | $ | 1,547 | |||||||||||
Restricted stock units | 14,591 | 15,475 | 16,583 | ||||||||||||||
Unrestricted stock awards | 936 | 811 | 769 | ||||||||||||||
ESPP | — | 490 | 613 | ||||||||||||||
Total stock-based compensation | $ | 17,860 | $ | 18,850 | $ | 19,512 | |||||||||||
Related tax benefit | $ | 4,994 | $ | 5,152 | $ | 5,377 | |||||||||||
We issue new shares of common stock upon the exercise of stock options or when vesting conditions on restricted stock units are fully satisfied. | |||||||||||||||||
Subject to stock splits, dividends, and other similar events, 7,473,956 shares of common stock are reserved and authorized for issuance under our 2010 Stock Incentive Plan (Stock Incentive Plan). Awards consist of stock options, restricted stock units, and unrestricted stock awards. At December 31, 2014, 3,680,607 shares were available for grant under the Stock Incentive Plan. The Stock Incentive Plan shares are subject to a fungible share provision such that, with respect to grants made after December 31, 2009, the authorized share reserve is reduced by (i) one share for every one share subject to a stock option or share appreciation right granted under the Plan and (ii) 1.7 shares for every one share of common stock that was subject to an award other than an option or stock appreciation right. | |||||||||||||||||
Stock Options | |||||||||||||||||
Options to purchase our common stock are granted to certain employees, senior management, and members of our Board of Directors with an exercise price equal to the market close price of the stock on the date the Board of Directors approves the grant. Options generally become exercisable in three equal annual installments beginning one year from the date of grant and generally expire 10 years from the date of grant. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated based on our historical experience and future expectations. | |||||||||||||||||
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: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | — | — | — | ||||||||||||||
Expected volatility | 39.3 | % | 38.1 | % | 42.1 | % | |||||||||||
Risk-free interest rate | 1.7 | % | 1 | % | 0.8 | % | |||||||||||
Expected term (years) | 5.5 | 5.5 | 5.1 | ||||||||||||||
Expected volatility is based on a combination of the historical volatility of our common stock and the implied volatility of our traded options for the related expected term. We believe this combined approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free interest rate is the rate available as of the award date on zero-coupon U.S. government issues with a term equal to the expected life of the award. The expected life is the weighted average expected life of an award based on the period of time between the date the award is granted and the estimated date the award will be fully exercised. Factors considered in estimating the expected life include historical experience of similar awards, contractual terms, vesting schedules, and expectations of future employee behavior. We have not paid dividends in the past and do not plan to pay dividends in the foreseeable future. | |||||||||||||||||
A summary of our stock option activity for the years ended December 31 is as follows: | |||||||||||||||||
Shares | Weighted | Weighted Average | Aggregate | Weighted | |||||||||||||
Average Exercise | Remaining | Intrinsic Value (1) | Average Grant | ||||||||||||||
Price per Share | Contractual Life | Date Fair Value | |||||||||||||||
(in thousands) | (years) | (in thousands) | |||||||||||||||
Outstanding, January 1, 2012 | 1,109 | $ | 55.97 | 4.5 | $ | 2,323 | |||||||||||
Granted | 196 | 43.27 | $ | 16.51 | |||||||||||||
Exercised | (54 | ) | 21.91 | 1,078 | |||||||||||||
Expired | (114 | ) | 69.37 | ||||||||||||||
Outstanding, December 31, 2012 | 1,137 | $ | 54.06 | 4.8 | $ | 3,815 | |||||||||||
Granted | 129 | $ | 42.76 | $ | 15.44 | ||||||||||||
Exercised | (74 | ) | 23.87 | $ | 1,377 | ||||||||||||
Expired | (12 | ) | 49.04 | ||||||||||||||
Outstanding, December 31, 2013 | 1,180 | $ | 54.79 | 4.6 | $ | 1,300 | |||||||||||
Granted | 160 | $ | 35.65 | $ | 13.65 | ||||||||||||
Exercised | (67 | ) | 28.03 | $ | 826 | ||||||||||||
Forfeited | (7 | ) | 44.06 | ||||||||||||||
Expired | (143 | ) | 68.97 | ||||||||||||||
Outstanding, December 31, 2014 | 1,123 | $ | 51.9 | 4.4 | $ | 1,676 | |||||||||||
Exercisable, December 31, 2014 | 819 | $ | 56.65 | 3.2 | $ | 569 | |||||||||||
Expected to vest, December 31, 2014 | 296 | $ | 39.12 | 7.7 | $ | 1,074 | |||||||||||
(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. | ||||||||||||||||
As of December 31, 2014, total unrecognized stock-based compensation expense related to nonvested stock options was approximately $2.8 million, which is expected to be recognized over a weighted average period of approximately 1.6 years. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
Certain employees, senior management, and members of our Board of Directors receive restricted stock units as a component of their total compensation. The fair value of a restricted stock unit is the market close price of our common stock on the date of grant. Restricted stock units generally vest over a three year period. Compensation expense, net of forfeitures, is recognized over the vesting period. | |||||||||||||||||
Subsequent to vesting, the restricted stock units are converted into shares of our common stock on a one-for-one basis and issued to employees. We are entitled to an income tax deduction in an amount equal to the taxable income reported by the employees upon vesting of the restricted stock units. | |||||||||||||||||
Prior to 2013, the performance-based restricted stock units issued under the Long-Term Performance Restricted Stock Unit Award Agreement (Performance Award Agreement) were determined based on the attainment of certain performance goals after the end of the one-year performance period. During the year, if management determined that it was probable that the targets would be achieved, compensation expense, net of forfeitures, was recognized on a straight-line basis over the annual performance and subsequent vesting period for each separately vesting portion of the award. Performance awards typically vested and were released in three equal installments at the end of each year following attainment of the performance goals. For U.S. participants who retire during the vesting period, unvested restricted stock units immediately vest at the date of retirement. For the 2012 performance awards, no awards became eligible for vesting as minimum performance thresholds for the 2012 performance year were not met. | |||||||||||||||||
For 2013, the performance-based restricted stock units to be issued under the Performance Award Agreement are determined based on (1) our achievement of specified non-GAAP EPS targets, as established at the beginning of each year for each of the calendar years contained in the performance periods (2-year and 3-year awards) (the performance condition) and (2) our total shareholder return (TSR) relative to the TSR attained by companies that are included in the Russell 3000 Index during the performance periods (the market condition). Compensation expense, net of forfeitures, is recognized on a straight-line basis, and the units vest upon achievement of the performance condition, provided participants are employed by Itron at the end of the respective performance periods. For U.S. participants who retire during the performance period, a pro-rated number of restricted stock units (based on the number of days of employment during the performance period) immediately vest based on the attainment of the performance goals as assessed after the end of the performance period. | |||||||||||||||||
Depending on the level of achievement of the performance condition, the actual number of shares to be earned ranges between 0% and 160% of the awards originally granted. At the end of the 2-year and 3-year performance periods, if the performance conditions are achieved at or above threshold, the number of shares earned is further adjusted by a TSR multiplier payout percentage, which ranges between 75% and 125%, based on the market condition. Therefore, based on the attainment of the performance and market conditions, the actual number of shares that vest may range from 0% to 200% of the awards originally granted. For the 2-year awards granted under the 2013 performance award, 14,433 restricted stock units became eligible for distribution at December 31, 2014. | |||||||||||||||||
For 2014, the performance-based restricted stock units to be issued are determined based on the same performance and market conditions as the 2013 awards, but the performance period is 3-years. No awards became eligible for distribution since the performance period had not concluded as of December 31, 2014. | |||||||||||||||||
Due to the presence of the TSR multiplier market condition, we utilize a Monte Carlo valuation model to determine the fair value of the awards at the grant date. This pricing model uses multiple simulations to evaluate the probability of our achievement of various stock price levels to determine our expected TSR performance ranking. The weighted-average assumptions used to estimate the fair value of performance-based restricted stock units granted and the resulting weighted average fair-value are as follows: | |||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | ||||||||||||||||
Dividend yield | — | — | |||||||||||||||
Expected volatility | 32.3 | % | 39.1 | % | |||||||||||||
Risk-free interest rate | 0.4 | % | 0.3 | % | |||||||||||||
Expected term (years) | 2 | 2.5 | |||||||||||||||
Weighted-average fair value | $35.15 | $45.03 | |||||||||||||||
Expected volatility is based on the historical volatility of our common stock for the related expected term. We believe this approach is reflective of current and historical market conditions and is an appropriate indicator of expected volatility. The risk-free interest rate is the rate available as of the award date on zero-coupon U.S. government issues with a term equal to the expected term of the award. The expected term is the term of an award based on the period of time between the date of the award and the date the award is expected to vest. The expected term assumption is based upon the plan's performance period as of the date of the award. We have not paid dividends in the past and do not plan to pay dividends in the foreseeable future. | |||||||||||||||||
The following table summarizes restricted stock unit activity for the years ended December 31: | |||||||||||||||||
Number of | Weighted | Aggregate | |||||||||||||||
Restricted Stock Units | Average Grant | Intrinsic Value(1) | |||||||||||||||
Date Fair Value | |||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Outstanding, January 1, 2012 | 625 | ||||||||||||||||
Granted | 464 | $ | 47.21 | ||||||||||||||
Released | (275 | ) | $ | 16,855 | |||||||||||||
Forfeited | (40 | ) | |||||||||||||||
Outstanding, December 31, 2012 | 774 | ||||||||||||||||
Granted | 255 | $ | 42.51 | ||||||||||||||
Released | (331 | ) | $ | 17,983 | |||||||||||||
Forfeited | (40 | ) | |||||||||||||||
Outstanding, December 31, 2013 | 658 | ||||||||||||||||
Granted(2) | 350 | $ | 35.74 | ||||||||||||||
Released | (291 | ) | $ | 14,402 | |||||||||||||
Forfeited | (35 | ) | |||||||||||||||
Outstanding, December 31, 2014 | 682 | ||||||||||||||||
Vested but not released, December 31, 2014 | 19 | $ | 821 | ||||||||||||||
Expected to vest, December 31, 2014 | 571 | $ | 24,130 | ||||||||||||||
(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) | Restricted stock units include 14,433 shares for the 2-year award under the 2013 Performance Award Agreement, which are eligible for distribution at December 31, 2014. | ||||||||||||||||
At December 31, 2014, unrecognized compensation expense on restricted stock units was $14.5 million, which is expected to be recognized over a weighted average period of approximately 1.7 years. | |||||||||||||||||
Unrestricted Stock Awards | |||||||||||||||||
We grant unrestricted stock awards to members of our Board of Directors as part of their compensation. Awards are fully vested and expensed when granted. The fair value of unrestricted stock awards is the market close price of our common stock on the date of grant. | |||||||||||||||||
The following table summarizes unrestricted stock award activity for the years ended December 31: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Shares of unrestricted stock granted | 24 | 18 | 19 | ||||||||||||||
Weighted average grant date fair value per share | $ | 39.06 | $ | 44.12 | $ | 41.43 | |||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Under the terms of the ESPP, employees can deduct up to 10% of their regular cash compensation to purchase our common stock at a discount from the fair market value of the stock at the end of each fiscal quarter, subject to other limitations under the plan. The sale of the stock to the employees occurs at the beginning of the subsequent quarter. Effective October 1, 2013, we changed the terms of the ESPP to reduce the discount from 15% to 5% from the fair market value of the stock at the end of each fiscal quarter. As a result of this change, the ESPP will no longer be considered compensatory, and no compensation expense will be recognized for future sales of our common stock to employees. Prior to October 1, 2013, the plan was considered compensatory. | |||||||||||||||||
The following table summarizes ESPP activity for the years ended December 31: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Shares of stock sold to employees(1) | 61 | 94 | 101 | ||||||||||||||
Weighted average fair value per ESPP award(2) | $ | — | $ | 6.61 | $ | 6.29 | |||||||||||
(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 periods during the years ended December 31. Effective October 1, 2013, the ESPP is no longer compensatory and therefore the 2013 weighted average fair value per award is for the nine months ended September 30, 2013. | |||||||||||||||||
At December 31, 2014, all compensation cost associated with the ESPP had been recognized. There were approximately 445,000 shares of common stock available for future issuance under the ESPP at December 31, 2014. |
Defined_Contribution_Bonus_and
Defined Contribution Bonus and Profit Sharing Plans | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Defined Contribution, Bonus, and Profit Sharing [Abstract] | ||||||||||||
Compensation and Employee Benefit Plans [Text Block] | Defined Contribution, Bonus, and Profit Sharing Plans | |||||||||||
Defined Contribution Plans | ||||||||||||
In the United States, United Kingdom, Brazil, and certain other countries, we make contributions to defined contribution plans. For our U.S. employee savings plan, which represents a majority of our contribution expense, we provide a 50% match on the first 6% of the employee salary deferral, subject to statutory limitations. For our international defined contribution plans, we provide various levels of contributions, based on salary, subject to stipulated or statutory limitations. The expense for our defined contribution plans was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Defined contribution plans expense | $ | 7,097 | $ | 7,392 | $ | 7,551 | ||||||
Bonus and Profit Sharing Plans and Awards | ||||||||||||
We have employee bonus and profit sharing plans in which many of our employees participate, as well as an award program, which allows for recognition of individual employees' achievements. The bonus and profit sharing plans provide award amounts for the achievement of annual performance and financial targets. Actual bonus and profit sharing award amounts are determined at the end of the year if the performance and financial targets are met. As the bonuses are being earned during the year, we estimate a compensation accrual each quarter based on the progress towards achieving the goals, the estimated financial forecast for the year, and the probability of achieving results. Bonus and profit sharing plans and award expense was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Bonus and profit sharing plans and award expense | $ | 37,850 | $ | 15,745 | $ | 25,297 | ||||||
Income_Taxes_Text_Block
Income Taxes (Text Block) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes [Text Block] | Income Taxes | |||||||||||
The following table summarizes the provision (benefit) for U.S. federal, state, and foreign taxes on income from continuing operations: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 17,248 | $ | 145 | $ | 11,935 | ||||||
State and local | 730 | 1,089 | 1,387 | |||||||||
Foreign | 20,205 | 21,860 | 19,448 | |||||||||
Total current | 38,183 | 23,094 | 32,770 | |||||||||
Deferred: | ||||||||||||
Federal | (78,901 | ) | (16,413 | ) | 12,195 | |||||||
State and local | (682 | ) | (2,472 | ) | 468 | |||||||
Foreign | (52,610 | ) | (25,872 | ) | (32,293 | ) | ||||||
Total deferred | (132,193 | ) | (44,757 | ) | (19,630 | ) | ||||||
Change in valuation allowance | 100,651 | 17,999 | 12,855 | |||||||||
Total provision (benefit) for income taxes | $ | 6,641 | $ | (3,664 | ) | $ | 25,995 | |||||
A reconciliation of income taxes at the U.S. federal statutory rate of 35% to the consolidated actual tax rate is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Income (loss) before income taxes | ||||||||||||
Domestic | $ | 92,933 | $ | 19,016 | $ | 167,299 | ||||||
Foreign | (107,842 | ) | (167,270 | ) | (31,080 | ) | ||||||
Total income (loss) before income taxes | $ | (14,909 | ) | $ | (148,254 | ) | $ | 136,219 | ||||
Expected federal income tax provision (benefit) | $ | (5,218 | ) | $ | (51,889 | ) | $ | 47,677 | ||||
Goodwill impairment | 119 | 49,730 | (1,905 | ) | ||||||||
Change in valuation allowance | 100,651 | 17,999 | 12,855 | |||||||||
Stock-based compensation | 1,255 | 1,598 | 1,787 | |||||||||
Foreign earnings (1) | (30,417 | ) | (15,655 | ) | (36,536 | ) | ||||||
Tax credits | (91,148 | ) | (10,352 | ) | (2,174 | ) | ||||||
Uncertain tax positions, including interest and penalties | 974 | 1,360 | (2,740 | ) | ||||||||
Change in tax rates | (20 | ) | 1,442 | 174 | ||||||||
State income tax provision (benefit), net of federal effect | (984 | ) | (2,291 | ) | 1,242 | |||||||
U.S. tax provision on foreign earnings | 31,309 | (245 | ) | 2,370 | ||||||||
Domestic production activities deduction | (2,312 | ) | (146 | ) | (2,612 | ) | ||||||
Local foreign taxes | 2,295 | 3,212 | 3,635 | |||||||||
Other, net | 137 | 1,573 | 2,222 | |||||||||
Total provision (benefit) for income taxes | $ | 6,641 | $ | (3,664 | ) | $ | 25,995 | |||||
-1 | Foreign earnings for all jurisdictions are classified as a single reconciling item to be consistent with the current year presentation. | |||||||||||
Our tax provision as a percentage of loss before tax was 44.5% for 2014. Our actual tax rate differed from the 35% U.S. federal statutory tax rate due to various items. Our tax expense increased due to an increase in valuation allowances related to deferred tax assets for which we do not anticipate future realization. The following items decreased the tax provision: (1) recognition of research and experimentation credits for 2014; (2) earnings of our subsidiaries outside of the U.S. in jurisdictions where our statutory tax rate is lower than in the U.S.; (3) the benefit of certain interest expense deductions; and (4) benefits of certain acquisition related elections for tax purposes. | ||||||||||||
Our tax provisions for 2013 and 2012 reflect the benefits of lower statutory tax rates on foreign earnings as compared with our U.S. federal statutory rate, foreign interest expense deductions and the benefits of certain acquisition related elections for tax purposes. During 2013, no tax benefit was recorded for the nondeductible portion of the goodwill impairment charge. During 2012, we recognized a benefit related to the release of reserve for uncertain tax positions. | ||||||||||||
Deferred tax assets and liabilities consist of the following: | ||||||||||||
At December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets | ||||||||||||
Loss carryforwards(1) | $ | 188,607 | $ | 174,360 | ||||||||
Tax credits(2) | 81,903 | 16,073 | ||||||||||
Accrued expenses | 54,393 | 40,593 | ||||||||||
Pension plan benefits expense | 19,679 | 13,464 | ||||||||||
Warranty reserves | 19,141 | 16,704 | ||||||||||
Depreciation and amortization | 19,111 | 16,770 | ||||||||||
Equity compensation | 10,039 | 9,908 | ||||||||||
Inventory valuation | 4,420 | 2,942 | ||||||||||
Other deferred tax assets, net | 8,968 | 9,858 | ||||||||||
Total deferred tax assets | 406,261 | 300,672 | ||||||||||
Valuation allowance | (256,619 | ) | (161,026 | ) | ||||||||
Total deferred tax assets, net of valuation allowance | 149,642 | 139,646 | ||||||||||
Deferred tax liabilities | ||||||||||||
Depreciation and amortization | (37,061 | ) | (50,606 | ) | ||||||||
Tax effect of accumulated translation | (568 | ) | (1,551 | ) | ||||||||
Other deferred tax liabilities, net | (2,299 | ) | (2,883 | ) | ||||||||
Total deferred tax liabilities | (39,928 | ) | (55,040 | ) | ||||||||
Net deferred tax assets | $ | 109,714 | $ | 84,606 | ||||||||
(1) | For tax return purposes at December 31, 2014, we had U.S. federal loss carryforwards of $19.8 million that expire during the years 2020 and 2021. At December 31, 2014, we have net operating loss carryforwards in Luxembourg of $441.3 million that can be carried forward indefinitely, offset by a full valuation allowance. The remaining portion of the loss carryforwards are composed primarily of losses in various other foreign jurisdictions. The majority of these losses can be carried forward indefinitely. At December 31, 2014, there was a valuation allowance of $256.6 million primarily associated with foreign loss carryforwards and foreign tax credit carryforwards (discussed below). | |||||||||||
(2) | For tax return purposes at December 31, 2014, we had: (1) U.S. general business credits of $18.2 million, which begin to expire in 2022; (2) U.S. alternative minimum tax credits of $2.5 million that can be carried forward indefinitely; and (3) U.S. foreign tax credits of $75.4 million, which begin to expire in 2019. At December 31, 2014, there was a valuation allowance of $58.5 million associated with foreign tax credit carryforward. | |||||||||||
We record valuation allowances to reduce deferred tax assets to the extent we believe it is more likely than not that a portion of such assets will not be realized. In making such determinations, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and our ability to carry back losses to prior years. We are required to make assumptions and judgments about potential outcomes that lie outside management’s control. Our most sensitive and critical factors are the projection, source, and character of future taxable income. Although realization is not assured, management believes it is more likely than not that deferred tax assets, net of valuation allowance, will be realized. The amount of deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward periods are reduced or current tax planning strategies are not implemented. | ||||||||||||
Our deferred tax assets at December 31, 2014 do not include the tax effect on $55.2 million of excess tax benefits from employee stock plan exercises. Common stock will be increased by $20.4 million when such excess tax benefits reduce cash taxes payable. | ||||||||||||
We do not provide U.S. deferred taxes on temporary differences related to our foreign investments that are considered permanent in duration. These temporary differences consist primarily of undistributed foreign earnings of $31.4 million and $22.5 million at December 31, 2014 and 2013, respectively. Foreign taxes have been provided on these undistributed foreign earnings. We have not computed the unrecognized deferred income tax liability on these temporary differences. There are many assumptions that must be considered to calculate the liability, thereby making it impractical to compute at this time. | ||||||||||||
We are subject to income tax in the United States and numerous foreign jurisdictions. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve positions and changes to reserves that are considered appropriate. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | ||||||||||||
Unrecognized tax benefits at January 1, 2012 | $ | 28,482 | ||||||||||
Gross increase to positions in prior years | 299 | |||||||||||
Gross decrease to positions in prior years | (51 | ) | ||||||||||
Gross increases to current period tax positions | 3,347 | |||||||||||
Audit settlements | (27 | ) | ||||||||||
Decrease related to lapsing of statute of limitations | (5,769 | ) | ||||||||||
Effect of change in exchange rates | 152 | |||||||||||
Unrecognized tax benefits at December 31, 2012 | $ | 26,433 | ||||||||||
Gross increase to positions in prior years | 2,154 | |||||||||||
Gross decrease to positions in prior years | (536 | ) | ||||||||||
Gross increases to current period tax positions | 1,670 | |||||||||||
Audit settlements | — | |||||||||||
Decrease related to lapsing of statute of limitations | (817 | ) | ||||||||||
Effect of change in exchange rates | (289 | ) | ||||||||||
Unrecognized tax benefits at December 31, 2013 | $ | 28,615 | ||||||||||
Gross increase to positions in prior years | 2,749 | |||||||||||
Gross decrease to positions in prior years | (1,641 | ) | ||||||||||
Gross increases to current period tax positions | 3,008 | |||||||||||
Audit settlements | — | |||||||||||
Decrease related to lapsing of statute of limitations | (1,715 | ) | ||||||||||
Effect of change in exchange rates | (2,870 | ) | ||||||||||
Unrecognized tax benefits at December 31, 2014 | $ | 28,146 | ||||||||||
At December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate | $ | 26,980 | $ | 27,694 | $ | 25,852 | ||||||
We classify interest expense and penalties related to unrecognized tax benefits and interest income on tax overpayments as components of income tax expense. The net interest and penalties expense (benefit) recognized is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Net interest and penalties expense (benefit) | $ | (76 | ) | $ | (898 | ) | $ | (414 | ) | |||
At December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Accrued interest | $ | 1,755 | $ | 2,078 | ||||||||
Accrued penalties | 2,671 | 3,075 | ||||||||||
At December 31, 2014, we are under examination by certain tax authorities for the 2000 to 2012 tax years. The material jurisdictions where we are subject to examination for the 2000 to 2012 tax years include, among others, the U.S., France, Germany, Italy, Brazil and the United Kingdom. No material changes have occurred to previously disclosed assessments. We believe we have appropriately accrued for the expected outcome of all tax matters and do not currently anticipate that the ultimate resolution of these examinations will have a material adverse effect on our financial condition, future results of operations, or liquidity. | ||||||||||||
Based upon the timing and outcome of examinations, litigation, the impact of legislative, regulatory, and judicial developments, and the impact of these items on the statute of limitations, it is reasonably possible that the related unrecognized tax benefits could change from those recorded within the next twelve months. However, at this time, an estimate of the range of reasonably possible adjustments to the balance of unrecognized tax benefits cannot be made. | ||||||||||||
We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We are subject to income tax examination by tax authorities in our major tax jurisdictions as follows: | ||||||||||||
Tax Jurisdiction | Years Subject to Audit | |||||||||||
U.S. federal | Subsequent to 1999 | |||||||||||
France | Subsequent to 2009 | |||||||||||
Germany | Subsequent to 2007 | |||||||||||
Brazil | Subsequent to 2008 | |||||||||||
United Kingdom | Subsequent to 2011 | |||||||||||
Italy | Subsequent to 2007 |
Commitments_and_Contingencies_
Commitments and Contingencies (Text Block) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Commitments and Contingencies [Text Block] | Commitments and Contingencies | |||||||||||
Commitments | ||||||||||||
Operating lease rental expense for factories, service and distribution locations, offices, and equipment was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Rental expense | $ | 19,178 | $ | 18,662 | $ | 17,877 | ||||||
Future minimum lease payments at December 31, 2014, under noncancelable operating leases with initial or remaining terms in excess of one year are as follows: | ||||||||||||
Minimum Payments | ||||||||||||
(in thousands) | ||||||||||||
2015 | $ | 12,142 | ||||||||||
2016 | 8,564 | |||||||||||
2017 | 7,099 | |||||||||||
2018 | 6,630 | |||||||||||
2019 | 4,580 | |||||||||||
Beyond 2019 | 1,721 | |||||||||||
Future minimum lease payments | $ | 40,736 | ||||||||||
Rent expense is recognized straight-line over the lease term, including renewal periods if reasonably assured. We lease most of our sales and distribution locations and administrative offices. Our leases typically contain renewal options similar to the original terms with lease payments that increase based on the consumer price index. | ||||||||||||
Guarantees and Indemnifications | ||||||||||||
We are often required to obtain standby letters of credit (LOCs) or bonds in support of our obligations for customer contracts. These standby LOCs or bonds typically provide a guarantee to the customer for future performance, which usually covers the installation phase of a contract and may, on occasion, cover the operations and maintenance phase of outsourcing contracts. | ||||||||||||
Our available lines of credit, outstanding standby LOCs, and bonds are as follows: | ||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||
(in thousands) | ||||||||||||
Credit facilities(1) | ||||||||||||
Multicurrency revolving line of credit | $ | 660,000 | $ | 660,000 | ||||||||
Long-term borrowings | (91,469 | ) | (120,000 | ) | ||||||||
Standby LOCs issued and outstanding | (50,399 | ) | (49,491 | ) | ||||||||
Net available for additional borrowings and LOCs | $ | 518,132 | $ | 490,509 | ||||||||
Unsecured multicurrency revolving lines of credit with various financial institutions | ||||||||||||
Multicurrency revolving line of credit | $ | 106,855 | $ | 115,269 | ||||||||
Standby LOCs issued and outstanding | (28,636 | ) | (31,714 | ) | ||||||||
Short-term borrowings(2) | (4,282 | ) | (4,252 | ) | ||||||||
Net available for additional borrowings and LOCs | $ | 73,937 | $ | 79,303 | ||||||||
Unsecured surety bonds in force | $ | 116,306 | $ | 186,446 | ||||||||
-1 | Refer to Note 6 for details regarding our secured credit facilities. | |||||||||||
-2 | Short-term borrowings are included in “Other current liabilities” on the Consolidated Balance Sheets. | |||||||||||
In the event any such standby LOC or bond is called, we would be obligated to reimburse the issuer of the standby LOC or bond; however, we do not believe that any outstanding LOC or bond will be called. | ||||||||||||
We generally provide an indemnification related to the infringement of any patent, copyright, trademark, or other intellectual property right on software or equipment within our sales contracts, which indemnifies the customer from and pays the resulting costs, damages, and attorney’s fees awarded against a customer with respect to such a claim provided that (a) the customer promptly notifies us in writing of the claim and (b) we have the sole control of the defense and all related settlement negotiations. We may also provide an indemnification to our customers for third party claims resulting from damages caused by the negligence or willful misconduct of our employees/agents in connection with the performance of certain contracts. The terms of our indemnifications generally do not limit the maximum potential payments. It is not possible to predict the maximum potential amount of future payments under these or similar agreements. | ||||||||||||
Legal Matters | ||||||||||||
We are subject to various legal proceedings and claims of which the outcomes are subject to significant uncertainty. Our policy is to assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. A determination of the amount of the liability required, if any, for these contingencies is made after an analysis of each known issue. A liability is recorded and charged to operating expense when we determine that a loss is probable and the amount can be reasonably estimated. Additionally, we disclose contingencies for which a material loss is reasonably possible, but not probable. | ||||||||||||
In 2010 and 2011, Transdata Incorporated (Transdata) filed lawsuits against four of our customers, CenterPoint Energy (CenterPoint), TriCounty Electric Cooperative, Inc. (Tri-County), San Diego Gas & Electric Company (San Diego), and Texas-New Mexico Power Company (TNMP), as well as several other utilities, alleging infringement of three patents owned by Transdata related to the use of an antenna in a meter. Pursuant to our contractual obligations with our customers, we agreed, subject to certain exceptions, to indemnify and defend them in these lawsuits. The complaints seek unspecified damages as well as injunctive relief. CenterPoint, Tri-County, San Diego, and TNMP have denied all of the substantive allegations and filed counterclaims seeking a declaratory judgment that the patents are invalid and not infringed. In December 2011, the Judicial Panel on Multi-District Litigation consolidated all of these cases in the Western District of Oklahoma for pretrial proceedings. On April 17, 2011, the Oklahoma court stayed the litigation pending the resolution of re-examination proceedings in the United States Patent and Trademark Office (U.S. PTO). The U.S. PTO has issued re-examination certificates confirming the patentability of the original claims and allowing certain new claims added by Transdata. The parties conducted a claim construction hearing on February 5, 2013 on one claim term -- "electric meter circuitry." After initially adopting the defendants' proposed construction of the term, the Court granted Transdata's motion for reconsideration by order of June 25, 2013 and has adopted Transdata's proposed construction. On October 1, 2013, the Court issued an order construing other claim terms. Fact discovery closed on June 29, 2014. Opening and rebuttal expert reports have been served, and expert depositions have been taken. Both sides have also filed summary judgment motions. In addition, new requests for re-examination have been filed, and all Transdata claims contained in all three patents currently stand as rejected by the U.S. PTO in the re-examinations. Petitions for inter partes review have also been filed, but there has not yet been a decision on those petitions. No trials are scheduled. We do not believe this matter will have a material adverse effect on our business or financial condition, although an unfavorable outcome could have a material adverse effect on our results of operations for the period in which such a loss is recognized. | ||||||||||||
Itron and its subsidiaries are parties to various employment-related proceedings in jurisdictions where it does business. None of the proceedings are individually material to Itron, and we believe that we have made adequate provision such that the ultimate disposition of the proceedings will not materially affect Itron's business or financial condition. | ||||||||||||
In a series of cases, approximately 300 former employees of Itron Sistemas e Technologia Ltda. (Itron Brazil), the majority of whose employment contracts were terminated in 2011, have sued Itron Brazil seeking payment of overtime and salary differential and alleging that the assumption of the employment relationship by Itron Brazil constituted illegal outsourcing under Brazilian law. In 2008, Itron Brazil entered into an agreement to provide installation and maintenance services to one of its customers and, to perform such services, hired over 800 employees of the previous provider of such services. In 2011, Itron Brazil determined to terminate the contract with its customer, which led to the termination of approximately 870 employees. Under applicable statutes of limitation, most additional employee claims must have been brought prior to October 31, 2013. Itron Brazil intends to vigorously defend these cases, but the ultimate outcome of the cases cannot be determined at this time. | ||||||||||||
On October 31, 2013, we received a claim from one of our customers relating to alleged defects in meters sold to this customer since the year 2000. The customer asserts that it should be compensated for product and other related costs. Itron has engaged the customer in discussions to determine the factual basis for the claim. Since the discussions and related analysis are at an early stage, Itron is not yet able to estimate a potential range of loss. Currently, we do not believe that the outcome of this matter will have a material adverse effect on our business or financial condition, although an unfavorable outcome could have a material adverse effect on our results of operations for the period in which such a loss is recognized. | ||||||||||||
On February 2, 2015, we reached a settlement agreement with the counterparty related to the product development contract litigation from the SmartSynch, Inc. acquisition. As a result of the settlement, we recognized litigation cost, net of recovery from an indemnification escrow from SmartSynch shareholders, of $14.7 million, inclusive of attorney’s fees incurred, reflected in our results of operations for the year ended December 31, 2014 within general and administrative expense. | ||||||||||||
Warranty | ||||||||||||
A summary of the warranty accrual account activity is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 45,146 | $ | 53,605 | ||||||||
New product warranties | 6,441 | 5,561 | ||||||||||
Other changes/adjustments to warranties | 3,729 | 10,343 | ||||||||||
Claims activity | (16,568 | ) | (23,593 | ) | ||||||||
Effect of change in exchange rates | (2,282 | ) | (770 | ) | ||||||||
Ending balance | 36,466 | 45,146 | ||||||||||
Less: current portion of warranty | 21,063 | 21,048 | ||||||||||
Long-term warranty | $ | 15,403 | $ | 24,098 | ||||||||
Total warranty expense is classified within cost of revenues and consists of new product warranties issued, costs related to extended warranty contracts, and other changes and adjustments to warranties. Warranty expense for the years ended December 31 is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Total warranty expense | $ | 10,170 | $ | 15,904 | $ | 13,186 | ||||||
Warranty expense decreased $5.7 million during the year ended December 31, 2014 compared with the prior year primarily due to a $4.0 million reduction in special warranty due to a change in estimate as a result of the resolution of a claim with a customer. Warranty expense increased $2.7 million during the year ended December 31, 2013 compared with the prior year primarily as a result of an increased provision due to the identification of battery and firmware issues for a customer. | ||||||||||||
Extended Warranty | ||||||||||||
A summary of changes to unearned revenue for extended warranty contracts is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 33,528 | $ | 31,960 | ||||||||
Unearned revenue for new extended warranties | 3,529 | 4,039 | ||||||||||
Unearned revenue recognized | (2,655 | ) | (2,210 | ) | ||||||||
Effect of change in exchange rates | (264 | ) | (261 | ) | ||||||||
Ending balance | 34,138 | 33,528 | ||||||||||
Less: current portion of unearned revenue for extended warranty | 2,759 | 2,385 | ||||||||||
Long-term unearned revenue for extended warranty within Other long-term obligations | $ | 31,379 | $ | 31,143 | ||||||||
Health Benefits | ||||||||||||
We are self insured for a substantial portion of the cost of our U.S. employee group health insurance. We purchase insurance from a third party, which provides individual and aggregate stop loss protection for these costs. Each reporting period, we expense the costs of our health insurance plan including paid claims, the change in the estimate of incurred but not reported (IBNR) claims, taxes, and administrative fees (collectively, the plan costs). | ||||||||||||
Plan costs are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Plan costs | $ | 23,206 | $ | 22,324 | $ | 26,755 | ||||||
IBNR accrual, which is included in wages and benefits payable, is as follows: | ||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||
(in thousands) | ||||||||||||
IBNR accrual | $ | 1,924 | $ | 2,206 | ||||||||
Our IBNR accrual and expenses may fluctuate due to the number of plan participants, claims activity, and deductible limits. For our employees located outside of the United States, health benefits are provided primarily through governmental social plans, which are funded through employee and employer tax withholdings. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | Restructuring | |||||||||||||||
2014 Projects | ||||||||||||||||
In November 2014, our management approved restructuring projects (2014 Projects) to restructure our Electricity business and related general and administrative activities, along with certain Gas and Water activities, to improve operational efficiencies and reduce expenses. The 2014 Projects include consolidation of certain facilities and reduction of our global workforce. The improved structure will position us to meet our long-term profitability goals by better aligning global operations with markets where we can serve our customers profitably. | ||||||||||||||||
We began implementing these projects in the fourth quarter of 2014, and we expect to substantially complete these projects by the end of 2016. Certain aspects of the projects are subject to a variety of labor and employment laws, rules, and regulations, which could result in a delay in implementing the projects at some locations. | ||||||||||||||||
The total expected restructuring costs, the restructuring costs recognized during the year ended December 31, 2014, and the remaining expected restructuring costs as of December 31, 2014 are as follows: | ||||||||||||||||
Total Expected Costs at | Costs Recognized During the Year Ended December 31, 2014 | Remaining Costs to be Recognized at December 31, 2014 | ||||||||||||||
December 31, 2014 | ||||||||||||||||
(in thousands) | ||||||||||||||||
Employee severance costs | $ | 47,447 | $ | 47,447 | $ | — | ||||||||||
Asset impairments | 7,952 | 7,952 | — | |||||||||||||
Other restructuring costs | 11,254 | 401 | 10,853 | |||||||||||||
Total | $ | 66,653 | $ | 55,800 | $ | 10,853 | ||||||||||
Segments: | ||||||||||||||||
Electricity | $ | 39,730 | $ | 29,660 | $ | 10,070 | ||||||||||
Gas | 12,455 | 12,185 | 270 | |||||||||||||
Water | 1,145 | 1,106 | 39 | |||||||||||||
Corporate unallocated | 13,323 | 12,849 | 474 | |||||||||||||
Total | $ | 66,653 | $ | 55,800 | $ | 10,853 | ||||||||||
2013 Projects | ||||||||||||||||
In September 2013, our management approved projects (the 2013 Projects) to restructure our operations to improve profitability and increase efficiencies. We began implementing these projects in the third quarter of 2013, and we expect to substantially complete project activities by the middle of 2015 and begin recognizing full savings in 2016. While project activities are expected to continue through June 2015, no further costs are expected to be recognized. In connection with the 2013 Projects, we sold a Gas manufacturing facility in China for a gain of $2.7 million during the fourth quarter of 2014, which is included in the Asset impairments line below. | ||||||||||||||||
The total expected restructuring costs, the costs recognized in prior periods, the restructuring costs recognized during the year ended December 31, 2014, and the remaining expected restructuring costs as of December 31, 2014 were as follows: | ||||||||||||||||
Total Expected Costs at | Costs Recognized in Prior Periods | Costs Recognized During the | Remaining Costs to be Recognized at | |||||||||||||
31-Dec-14 | Year Ended | 31-Dec-14 | ||||||||||||||
31-Dec-14 | ||||||||||||||||
(in thousands) | ||||||||||||||||
Employee severance costs | $ | 23,691 | $ | 29,186 | $ | (5,495 | ) | $ | — | |||||||
Asset impairments | (1,500 | ) | 1,232 | (2,732 | ) | — | ||||||||||
Other restructuring costs | 3,965 | 681 | 3,284 | — | ||||||||||||
Total | $ | 26,156 | $ | 31,099 | $ | (4,943 | ) | $ | — | |||||||
Segments: | ||||||||||||||||
Electricity | $ | 15,512 | $ | 24,056 | $ | (8,544 | ) | $ | — | |||||||
Gas | 1,375 | 4,369 | (2,994 | ) | — | |||||||||||
Water | 3,130 | 1,957 | 1,173 | — | ||||||||||||
Corporate unallocated | 6,139 | 717 | 5,422 | — | ||||||||||||
Total | $ | 26,156 | $ | 31,099 | $ | (4,943 | ) | $ | — | |||||||
The following table summarizes the activity within the restructuring related balance sheet accounts, for the 2014 and 2013 Projects, during the year ended December 31, 2014: | ||||||||||||||||
Accrued Employee Severance | Asset Impairments & Net (Gain) Loss on Sale or Disposal | Other Accrued Costs | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Beginning balance, January 1, 2014 | $ | 32,709 | $ | — | $ | 3,632 | $ | 36,341 | ||||||||
Costs incurred and charged to expense | 41,952 | 5,220 | 3,685 | 50,857 | ||||||||||||
Cash payments | (12,732 | ) | — | (3,581 | ) | (16,313 | ) | |||||||||
Non-cash items | — | (5,220 | ) | — | (5,220 | ) | ||||||||||
Effect of change in exchange rates | (2,596 | ) | — | (210 | ) | (2,806 | ) | |||||||||
Ending balance, December 31, 2014 | $ | 59,333 | $ | — | $ | 3,526 | $ | 62,859 | ||||||||
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. 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. | ||||||||||||||||
The current portions of the restructuring related liability balances were $49.1 million and $30.3 million as of December 31, 2014 and 2013, respectively. The current portion of the liability is classified within "Other current liabilities" on the Consolidated Balance Sheets. The long-term portions of the restructuring related liability related balances were $13.8 million and $6.0 million as of December 31, 2014 and 2013, respectively. The long-term portion of the restructuring liability is classified within "Other long-term obligations" on the Consolidated Balance Sheets. | ||||||||||||||||
Asset impairments are determined at the asset group level. Assets held for sale are classified within other current assets and are reported at the lower of the carrying amount or the fair value, less costs to sell, and are no longer depreciated or amortized. | ||||||||||||||||
Asset impairments under the 2014 Projects include: | ||||||||||||||||
• | Impairment of $3.0 million on the land and buildings at one manufacturing site designated as an asset group and classified as held and used; | |||||||||||||||
• | Impairments of $4.6 million for machinery and equipment; and | |||||||||||||||
• | Impairments of $0.4 million for other property, plant, and equipment. | |||||||||||||||
The following table includes long-lived assets held and used that were measured at fair value on a nonrecurring basis as of December 31, 2014 and 2013, and the related recognized losses for the years ended December 31, 2014 and 2013: | ||||||||||||||||
Net Carrying Value | Fair Value Measurement (Level 3) | Total Loss Recognized | ||||||||||||||
(in thousands) | ||||||||||||||||
2014 | ||||||||||||||||
Long-lived assets held and used | $ | 1,930 | $ | 1,930 | $ | 7,952 | ||||||||||
2013 | ||||||||||||||||
Long-lived assets held and used | $ | — | $ | — | $ | — | ||||||||||
The fair values of the asset group included in long-lived assets held and used were determined based primarily on their appraised fair value. |
Shareholders_Equity_Shareholde
Shareholders' Equity Shareholders' Equity (Notes) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | Shareholders’ Equity | |||||||||||||||||||
Preferred Stock | ||||||||||||||||||||
We have authorized the issuance of 10 million shares of preferred stock with no par value. In the event of a liquidation, dissolution, or winding up of the affairs of the corporation, whether voluntary or involuntary, the holders of any outstanding preferred stock will be entitled to be paid a preferential amount per share to be determined by our Board of Directors prior to any payment to holders of common stock. There was no preferred stock issued or outstanding at December 31, 2014, 2013, and 2012. | ||||||||||||||||||||
Stock Repurchase Plan | ||||||||||||||||||||
On March 8, 2013, our Board authorized a 12-month repurchase program of up to $50 million in shares of our common stock. The March 8, 2013 authorization expired on March 7, 2014. From January 1, 2014 through March 7, 2014, we repurchased 75,203 shares of our common stock, totaling $2.9 million. | ||||||||||||||||||||
On February 7, 2014, our Board authorized a 12-month repurchase program of up to $50 million in shares of our common stock, to begin on March 8, 2014, upon the expiration of the previous stock repurchase program. From March 8, 2014 through December 31, 2014, we repurchased 910,990 shares of our common stock, totaling $36.7 million. | ||||||||||||||||||||
Subsequent to December 31, 2014 we repurchased 335,251 shares of our common stock. The average price paid per share was $39.62. These subsequent repurchases fully utilized the remaining $13.3 million authorized under the program. Repurchases are made in the open market or in privately negotiated transactions and in accordance with applicable securities laws. | ||||||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||||||
Other comprehensive income (loss) is reflected as a net increase (decrease) to shareholders’ equity and is not reflected in our results of operations. The changes in the components of accumulated other comprehensive income (loss), net of tax, were as follows: | ||||||||||||||||||||
Foreign Currency Translation Adjustments | Net Unrealized Gain (Loss) on Derivative Instruments | Net Unrealized Gain (Loss) on Nonderivative Instruments | Pension Plan Benefit Liability Adjustments | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balances at January 1, 2012 | $ | (24,718 | ) | $ | — | $ | (14,380 | ) | $ | 1,938 | $ | (37,160 | ) | |||||||
OCI before reclassifications | 21,405 | (1,689 | ) | — | (16,772 | ) | 2,944 | |||||||||||||
Amounts reclassified from AOCI | — | — | — | (168 | ) | (168 | ) | |||||||||||||
Current period other comprehensive income (loss) | 21,405 | (1,689 | ) | — | (16,940 | ) | 2,776 | |||||||||||||
Balances at December 31, 2012 | $ | (3,313 | ) | $ | (1,689 | ) | $ | (14,380 | ) | $ | (15,002 | ) | $ | (34,384 | ) | |||||
OCI before reclassifications | 7,112 | 2 | — | 6,496 | 13,610 | |||||||||||||||
Amounts reclassified from AOCI | — | 431 | — | (1,379 | ) | (948 | ) | |||||||||||||
Current period other comprehensive income (loss) | 7,112 | 433 | — | 5,117 | 12,662 | |||||||||||||||
Balances at December 31, 2013 | $ | 3,799 | $ | (1,256 | ) | $ | (14,380 | ) | $ | (9,885 | ) | $ | (21,722 | ) | ||||||
OCI before reclassifications | (90,333 | ) | (566 | ) | — | (24,192 | ) | (115,091 | ) | |||||||||||
Amounts reclassified from AOCI | — | 1,054 | — | (755 | ) | 299 | ||||||||||||||
Current period other comprehensive income (loss) | (90,333 | ) | 488 | — | (24,947 | ) | (114,792 | ) | ||||||||||||
Balances at December 31, 2014 | $ | (86,534 | ) | $ | (768 | ) | $ | (14,380 | ) | $ | (34,832 | ) | $ | (136,514 | ) | |||||
The before-tax amount, income tax (provision) benefit, and net-of-tax amount related to each component of other comprehensive income (loss) during the reporting periods were as follows: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Before-tax amount | ||||||||||||||||||||
Foreign currency translation adjustment | $ | (90,365 | ) | $ | 8,126 | $ | 28,002 | |||||||||||||
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | (915 | ) | (3 | ) | (2,725 | ) | ||||||||||||||
Net hedging (gain) loss reclassified into net income (loss) | 1,704 | 697 | — | |||||||||||||||||
Pension plan benefits liability adjustment | (25,270 | ) | 7,344 | (24,358 | ) | |||||||||||||||
Total other comprehensive income (loss), before tax | (114,846 | ) | 16,164 | 919 | ||||||||||||||||
Tax (provision) benefit | ||||||||||||||||||||
Foreign currency translation adjustment | 32 | (1,014 | ) | (6,597 | ) | |||||||||||||||
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | 349 | 5 | 1,036 | |||||||||||||||||
Net hedging (gain) loss reclassified into net income (loss) | (650 | ) | (266 | ) | — | |||||||||||||||
Pension plan benefits liability adjustment | 323 | (2,227 | ) | 7,418 | ||||||||||||||||
Total other comprehensive income (loss) tax (provision) benefit | 54 | (3,502 | ) | 1,857 | ||||||||||||||||
Net-of-tax amount | ||||||||||||||||||||
Foreign currency translation adjustment | (90,333 | ) | 7,112 | 21,405 | ||||||||||||||||
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | (566 | ) | 2 | (1,689 | ) | |||||||||||||||
Net hedging (gain) loss reclassified into net income (loss) | 1,054 | 431 | — | |||||||||||||||||
Pension plan benefits liability adjustment | (24,947 | ) | 5,117 | (16,940 | ) | |||||||||||||||
Total other comprehensive income (loss), net of tax | $ | (114,792 | ) | $ | 12,662 | $ | 2,776 | |||||||||||||
Details about the AOCI components reclassified to the Consolidated Statements of Operations during the reporting periods are as follows: | ||||||||||||||||||||
Amount Reclassified from AOCI(1) | ||||||||||||||||||||
Year Ended December 31, | Affected Line Item in the Income Statement | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Amortization of defined benefit pension items | ||||||||||||||||||||
Prior-service costs | $ | (138 | ) | $ | (70 | ) | $ | (68 | ) | (2) | ||||||||||
Actuarial gains (losses) | (572 | ) | (926 | ) | (161 | ) | (2) | |||||||||||||
Loss on settlement | (55 | ) | (325 | ) | (13 | ) | (2) | |||||||||||||
Other | — | (658 | ) | — | (2) | |||||||||||||||
Total, before tax | (765 | ) | (1,979 | ) | (242 | ) | Income before income taxes | |||||||||||||
Tax benefit (provision) | 10 | 600 | 74 | Income tax provision | ||||||||||||||||
Total, net of tax | (755 | ) | (1,379 | ) | (168 | ) | Net income | |||||||||||||
Total reclassifications for the period, net of tax | $ | (755 | ) | $ | (1,379 | ) | $ | (168 | ) | Net income | ||||||||||
-1 | Amounts in parenthesis indicate debits to the Statements of Operations. | |||||||||||||||||||
(2) | These AOCI components are included in the computation of net periodic pension cost. Refer to Note 8 for additional details. | |||||||||||||||||||
Refer to Note 7 for additional details related to derivative activities that resulted in reclassification of AOCI to the Consolidated Statements of Operations. |
Fair_Values_of_Financial_Instr
Fair Values of Financial Instruments (Text Block) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||||||||||||||||
Fair Values of Financial Instruments [Text Block] | Fair Values of Financial Instruments | |||||||||||||||
The fair values at December 31, 2014 and 2013 do not reflect subsequent changes in the economy, interest rates, tax rates, and other variables that may affect the determination of fair value. | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 112,371 | $ | 112,371 | $ | 124,805 | $ | 124,805 | ||||||||
Foreign exchange forwards | 107 | 107 | 41 | 41 | ||||||||||||
Interest rate swaps | 75 | 75 | — | — | ||||||||||||
Liabilities | ||||||||||||||||
Credit facility | ||||||||||||||||
USD denominated term loan | $ | 232,500 | $ | 231,645 | $ | 258,750 | $ | 258,011 | ||||||||
Multicurrency revolving line of credit | 91,469 | 91,124 | 120,000 | 119,609 | ||||||||||||
Interest rate swaps | 1,317 | 1,317 | 2,031 | 2,031 | ||||||||||||
Foreign exchange forwards | 236 | 236 | 145 | 145 | ||||||||||||
The following methods and assumptions were used in estimating fair values: | ||||||||||||||||
Cash and cash equivalents: Due to the liquid nature of these instruments, the carrying value approximates fair value (Level 1). | ||||||||||||||||
Credit Facility - term loan and multicurrency revolving line of credit: The term loan and revolver are not traded publicly. The fair values, which are determined based upon a hypothetical market participant, are calculated using a discounted cash flow model with Level 2 inputs, including estimates of incremental borrowing rates for debt with similar terms, maturities, and credit profiles. Refer to Note 6 for a further discussion of our debt. | ||||||||||||||||
Derivatives: See Note 7 for a description of our methods and assumptions in determining the fair value of our derivatives, which were determined using Level 2 inputs. |
Segment_Information_Text_Block
Segment Information (Text Block) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Information [Text Block] | Segment Information | |||||||||||
We operate under the Itron brand worldwide and manage and report under three operating segments, Electricity, Gas, and Water. Our Water operating segment includes both our global water and heat solutions. This structure allows each segment to develop its own go-to-market strategy, prioritize its marketing and product development requirements, and focus on its strategic investments. Our sales, marketing, and delivery functions are managed under each segment. Our product development and manufacturing operations are managed on a worldwide basis to promote a global perspective in our operations and processes and yet still maintain alignment with the segments. | ||||||||||||
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 are 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 | ||||||||||||
Electricity | Standard electricity (electromechanical and electronic) meters; advanced electricity meters and communication modules; smart electricity meters; smart electricity 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; installation; implementation; and professional services, including consulting, and analysis. | |||||||||||
Gas | Standard gas meters; advanced gas meters and communication modules; smart gas meters; smart 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 installation; implementation; and professional services, including 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; installation; implementation; and professional services, including consulting, and analysis. | |||||||||||
Revenues, gross profit, and operating income associated with our segments were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Revenues | ||||||||||||
Electricity | $ | 794,144 | $ | 836,553 | $ | 1,024,340 | ||||||
Gas | 599,081 | 570,297 | 627,193 | |||||||||
Water | 577,472 | 541,878 | 526,645 | |||||||||
Total Company | $ | 1,970,697 | $ | 1,948,728 | $ | 2,178,178 | ||||||
Gross profit | ||||||||||||
Electricity | $ | 208,476 | $ | 218,913 | $ | 295,005 | ||||||
Gas | 211,815 | 207,915 | 235,391 | |||||||||
Water | 202,834 | 187,705 | 184,751 | |||||||||
Total Company | $ | 623,125 | $ | 614,533 | $ | 715,147 | ||||||
Operating income (loss) | ||||||||||||
Electricity | $ | (72,476 | ) | $ | (235,908 | ) | $ | 24,812 | ||||
Gas | 75,598 | 83,882 | 110,557 | |||||||||
Water | 71,006 | 63,252 | 59,210 | |||||||||
Corporate unallocated | (70,296 | ) | (46,407 | ) | (43,453 | ) | ||||||
Total Company | 3,832 | (135,181 | ) | 151,126 | ||||||||
Total other income (expense) | (18,741 | ) | (13,073 | ) | (14,907 | ) | ||||||
Income (loss) before income taxes | $ | (14,909 | ) | $ | (148,254 | ) | $ | 136,219 | ||||
For the years ended December 31, 2014 and 2013, no single customer represented more than 10% of total Company or the Electricity, Gas or Water operating segment revenues. | ||||||||||||
For the year ended December 31, 2012, no single customer represented more than 10% of total Company or the Gas or Water operating segment revenues, and one customer accounted for 17% of the Electricity operating segment revenues. | ||||||||||||
During 2014, in our Electricity segment, we revised our estimate of the cost to complete an OpenWay project in North America. This resulted in a decrease to gross profit of $15.9 million, which decreased basic and diluted earnings per share by $0.25 for the year ended December 31, 2014. We previously recorded additional costs on this contract in 2013, which decreased gross profit by $16.5 million and decreased basic and diluted earnings per share by $0.26 for the year December 31, 2013. The per share amounts are shown net of tax. | ||||||||||||
Revenues by region were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
United States and Canada | $ | 899,399 | $ | 851,295 | $ | 1,014,739 | ||||||
Europe, Middle East, and Africa (EMEA) | 848,502 | 858,026 | 878,615 | |||||||||
Other | 222,796 | 239,407 | 284,824 | |||||||||
Total revenues | $ | 1,970,697 | $ | 1,948,728 | $ | 2,178,178 | ||||||
Property, plant, and equipment, net, by geographic area were as follows: | ||||||||||||
At December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
United States | $ | 76,130 | $ | 87,954 | ||||||||
Outside United States | 131,659 | 158,866 | ||||||||||
Total property, plant, and equipment, net | $ | 207,789 | $ | 246,820 | ||||||||
Depreciation and amortization expense associated with our segments was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Electricity | $ | 47,886 | $ | 46,535 | $ | 52,113 | ||||||
Gas | 26,031 | 27,266 | 29,968 | |||||||||
Water | 24,259 | 24,797 | 27,324 | |||||||||
Corporate Unallocated | 287 | 247 | 66 | |||||||||
Total Company | $ | 98,463 | $ | 98,845 | $ | 109,471 | ||||||
Quarterly_Results_Unaudited
Quarterly Results (Unaudited) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Results (Unaudited) [Abstract] | ||||||||||||||||||||
Quarterly Financial Information [Text Block] | Quarterly Results (Unaudited) | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total Year | ||||||||||||||||
(in thousands, except per common share and stock price data) | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Statement of operations data: | ||||||||||||||||||||
Revenues | $ | 474,795 | $ | 489,353 | $ | 496,454 | $ | 510,095 | $ | 1,970,697 | ||||||||||
Gross profit | 154,535 | 163,041 | 150,762 | 154,787 | 623,125 | |||||||||||||||
Net income (loss) attributable to Itron, Inc. | (254 | ) | 19,259 | 7,308 | (49,233 | ) | (22,920 | ) | ||||||||||||
Earnings (loss) per common share - Basic | $ | (0.01 | ) | $ | 0.49 | $ | 0.19 | $ | (1.25 | ) | $ | (0.58 | ) | |||||||
Earnings (loss) per common share - Diluted | $ | (0.01 | ) | $ | 0.49 | $ | 0.19 | $ | (1.25 | ) | $ | (0.58 | ) | |||||||
2013 | ||||||||||||||||||||
Statement of operations data: | ||||||||||||||||||||
Revenues | $ | 447,536 | $ | 482,175 | $ | 495,491 | $ | 523,526 | $ | 1,948,728 | ||||||||||
Gross profit | 140,123 | 159,588 | 150,084 | 164,738 | 614,533 | |||||||||||||||
Net income (loss) attributable to Itron, Inc. | 2,570 | 12,399 | (7,348 | ) | (154,430 | ) | (146,809 | ) | ||||||||||||
Earnings (loss) per common share - Basic | $ | 0.07 | $ | 0.31 | $ | (0.19 | ) | $ | (3.93 | ) | $ | (3.74 | ) | |||||||
Earnings (loss) per common share - Diluted | $ | 0.06 | $ | 0.31 | $ | (0.19 | ) | $ | (3.93 | ) | $ | (3.74 | ) | |||||||
During the fourth quarter of 2013, we incurred a goodwill impairment charge of $173.2 million. In addition, we incurred costs of $31.1 million in the third quarter of 2013 related to restructuring projects approved in 2013. Further, in 2014, new restructuring projects were approved to increase efficiency and lower our cost of manufacturing, for which we incurred costs of $55.8 million in the fourth quarter of 2014. |
Subsequent_Events_Subsequent_E
Subsequent Events Subsequent Event [Text Block] | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events |
Stock Repurchases | |
On February 19, 2015, Itron's Board of Directors authorized a new repurchase program of up to $50 million of our common stock over a 12-month period, beginning February 19, 2015. Repurchases are made in the open market or in privately negotiated transactions and in accordance with applicable securities laws. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
Description | Balance at Beginning of Period | Other Adjustments | Additions Charged to Costs and Expenses | Balance at End of Period, Noncurrent | |||||||||||||
(in thousands) | |||||||||||||||||
Year ended December 31, 2014: | |||||||||||||||||
Deferred tax assets valuation allowance | $ | 161,026 | $ | (5,058 | ) | $ | 100,651 | $ | 256,619 | ||||||||
Year ended December 31, 2013: | |||||||||||||||||
Deferred tax assets valuation allowance | $ | 138,910 | $ | 4,117 | $ | 17,999 | $ | 161,026 | |||||||||
Year ended December 31, 2012: | |||||||||||||||||
Deferred tax assets valuation allowance | $ | 124,244 | $ | 1,811 | $ | 12,855 | $ | 138,910 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Consolidation [Policy Text Block] | Basis of Consolidation |
We consolidate all entities in which we have a greater than 50% ownership interest or in which we exercise control over the operations. We use the equity method of accounting for entities in which we have a 50% or less investment and exercise significant influence. Entities in which we have less than a 20% investment and where we do not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. | |
Noncontrolling Interests | |
In several of our consolidated international subsidiaries, we have joint venture partners, who are minority shareholders. Although these entities are not wholly-owned by Itron, we consolidate them because we have a greater than 50% ownership interest or because we exercise control over the operations. The noncontrolling interest balance is adjusted each period to reflect the allocation of net income (loss) and other comprehensive income (loss) attributable to the noncontrolling interests, as shown in our Consolidated Statements of Operations and our Consolidated Statements of Comprehensive Income (Loss) as well as contributions from and distributions to the owners. The noncontrolling interest balance in our Consolidated Balance Sheets represents the proportional share of the equity of the joint venture entities, which is attributable to the minority shareholders. | |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents |
We consider all highly liquid instruments with remaining maturities of three months or less at the date of acquisition to be cash equivalents. | |
Accounts Receivable and Allowance for Doubtful Accounts [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts |
Accounts receivable are recorded for invoices issued to customers in accordance with our contractual arrangements. Interest and late payment fees are minimal. Unbilled receivables are recorded when revenues are recognized upon product shipment or service delivery and invoicing occurs at a later date. We record an allowance for doubtful accounts representing our estimate of the probable losses in accounts receivable at the date of the balance sheet based on our historical experience of bad debts and our specific review of outstanding receivables. Accounts receivable are written-off against the allowance when we believe an account, or a portion thereof, is no longer collectible. | |
Inventories [Policy Text Block] | Inventories |
Inventories are stated at the lower of cost or market using the first-in, first-out method. Cost includes raw materials and labor, plus applied direct and indirect costs. | |
Derivative Instruments [Policy Text Block] | Derivative Instruments |
All derivative instruments, whether designated in hedging relationships or not, are recorded on the Consolidated Balance Sheets at fair value as either assets or liabilities. The components and fair values of our derivative instruments are determined using the fair value measurements of significant other observable inputs (Level 2), as defined by GAAP. The net fair value of our derivative instruments may switch between a net asset and a net liability depending on market circumstances at the end of the period. We include the effect of our counterparty credit risk based on current published credit default swap rates when the net fair value of our derivative instruments are in a net asset position and the effect of our own nonperformance risk when the net fair value of our derivative instruments are in a net liability position. | |
For any derivative designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. For any derivative designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded as a component of other comprehensive income (loss) (OCI) and are recognized in earnings when the hedged item affects earnings. Ineffective portions of cash flow hedges are recognized in other income (expense) in the Consolidated Statements of Operations. For a hedge of a net investment, the effective portion of any unrealized gain or loss from the foreign currency revaluation of the hedging instrument is reported in OCI as a net unrealized gain or loss on derivative instruments. Upon termination of a net investment hedge, the net derivative gain/loss will remain in accumulated OCI until such time when earnings are impacted by a sale or liquidation of the associated operations. Ineffective portions of fair value changes or the changes in fair value of derivative instruments that do not qualify for hedging activities are recognized in other income (expense) in the Consolidated Statements of Operations. We classify cash flows from our derivative programs as cash flows from operating activities in the Consolidated Statements of Cash Flows. | |
Derivatives are not used for trading or speculative purposes. Our derivatives are with credit worthy multinational commercial banks, with whom we have master netting agreements; however, our derivative positions are not recorded on a net basis in the consolidated balance sheets. There are no credit-risk-related contingent features within our derivative instruments. Refer to Note 7 and Note 14 for further disclosures of our derivative instruments and their impact on OCI. | |
Property, Plant, and Equipment [Policy Text Block] | Property, Plant, and Equipment |
Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 30 years for buildings and improvements and three to ten years for machinery and equipment, computers and software, and furniture. Leasehold improvements are capitalized and depreciated over the term of the applicable lease, including renewable periods if reasonably assured, or over the useful lives, whichever is shorter. Construction in process represents capital expenditures incurred for assets not yet placed in service. Costs related to internally developed software and software purchased for internal uses are capitalized and are amortized over the estimated useful lives of the assets. Repair and maintenance costs are expensed as incurred. We have no major planned maintenance activities. | |
We review long-lived assets for impairment whenever events or circumstances indicate the carrying amount of an asset group may not be recoverable. Assets held for sale are classified within other current assets in the Consolidated Balance Sheets, are reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. Gains and losses from asset disposals and impairment losses are classified within the Consolidated Statement of Operations according to the use of the asset, except those gains and losses recognized in conjunction with our restructuring activities, which are classified within restructuring expense. | |
Prepaid Debt Fees [Policy Text Block] | Prepaid Debt Fees |
Prepaid debt fees represent the capitalized direct costs incurred related to the issuance of debt and are recorded as noncurrent assets. These costs are amortized to interest expense over the terms of the respective borrowings, including contingent maturity or call features, using the effective interest method, or straight-line method when associated with a revolving credit facility. When debt is repaid early, the related portion of unamortized prepaid debt fees is written-off and included in interest expense. | |
Business Combinations [Policy Text Block] | Business Combinations |
On the date of acquisition, the assets acquired, liabilities assumed, and any noncontrolling interests in the acquiree are recorded at their fair values. The acquiree's results of operations are also included as of the date of acquisition in our consolidated results. Intangible assets that arise from contractual/legal rights, or are capable of being separated, as well as in-process research and development (IPR&D), are measured and recorded at fair value, and amortized over the estimated useful life. IPR&D is not amortized until such time as the associated development projects are completed or terminated. If a development project is completed, the IPR&D is reclassified as a core technology intangible asset and amortized over its estimated useful life. If the development project is terminated, the recorded value of the associated IPR&D is immediately expensed. If practicable, assets acquired and liabilities assumed arising from contingencies are measured and recorded at fair value. If not practicable, such assets and liabilities are measured and recorded when it is probable that a gain or loss has occurred and the amount can be reasonably estimated. The residual balance of the purchase price, after fair value allocations to all identified assets and liabilities, represents goodwill. Acquisition-related costs are expensed as incurred. Restructuring costs associated with an acquisition are generally expensed in periods subsequent to the acquisition date, and changes in deferred tax asset valuation allowances and acquired income tax uncertainties, including penalties and interest, after the measurement period are recognized as a component of the provision for income taxes. Our acquisitions may include contingent consideration, which require us to recognize the fair value of the estimated liability at the time of the acquisition. Subsequent changes in the estimate of the amount to be paid under the contingent consideration arrangement are recognized in the consolidated statements of operations. Cash payments for contingent or deferred consideration are classified within cash flows from investing activities within the consolidated statements of cash flows. | |
Goodwill and Intangible Assets [Policy Text Block] | Goodwill and Intangible Assets |
Goodwill and intangible assets may result from our business acquisitions. Intangible assets may also result from the purchase of assets and intellectual property in a transaction that does not qualify as a business combination. We use estimates, including estimates of useful lives of intangible assets, the amount and timing of related future cash flows, and fair values of the related operations, in determining the value assigned to goodwill and intangible assets. Our finite-lived intangible assets are amortized over their estimated useful lives based on estimated discounted cash flows. IPR&D is considered an indefinite-lived intangible asset and is not subject to amortization until the associated projects are completed or terminated. Finite-lived intangible assets are tested for impairment at the asset group level when events or changes in circumstances indicate the carrying value may not be recoverable. Indefinite-lived intangible assets are tested for impairment annually, when events or changes in circumstances indicate the asset may be impaired, or at the time when their useful lives are determined to be no longer indefinite. | |
Goodwill is assigned to our reporting units based on the expected benefit from the synergies arising from each business combination, determined by using certain financial metrics, including the forecasted discounted cash flows associated with each reporting unit. Each reporting unit corresponds with its respective operating segment, effective in the fourth quarter of 2013. | |
We test goodwill for impairment each year as of October 1, or more frequently should a significant impairment indicator occur. As part of the impairment test, we may elect to perform an assessment of qualitative factors. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit, including goodwill, is less than its carrying amount, or if we elect to bypass the qualitative assessment, we would then proceed with the two-step impairment test. The impairment test involves comparing the fair values of the reporting units to their carrying amounts. If the carrying amount of a reporting unit exceeds its fair value, a second step is required to measure the goodwill impairment loss amount. This second step determines the current fair values of all assets and liabilities of the reporting unit and then compares the implied fair value of the reporting unit's goodwill to the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. | |
Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. We forecast discounted future cash flows at the reporting unit level using risk-adjusted discount rates and estimated future revenues and operating costs, which take into consideration factors such as existing backlog, expected future orders, supplier contracts, and expectations of competitive and economic environments. We also identify similar publicly traded companies and develop a correlation, referred to as a multiple, to apply to the operating results of the reporting units. These combined fair values are then reconciled to the aggregate market value of our common stock on the date of valuation, while considering a reasonable control premium. | |
Contingencies [Policy Text Block] | Contingencies |
A loss contingency is recorded if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. We evaluate, among other factors, the degree of probability of an unfavorable outcome and our ability to make a reasonable estimate of the amount of the ultimate loss. Loss contingencies that we determine to be reasonably possible, but not probable, are disclosed but not recorded. Changes in these factors and related estimates could materially affect our financial position and results of operations. Legal costs to defend against contingent liabilities are expensed as incurred. | |
Compensation Related Costs, Policy [Policy Text Block] | Bonus and Profit Sharing |
We have various employee bonus and profit sharing plans, which provide award amounts for the achievement of annual financial and nonfinancial targets. If management determines it is probable that the targets will be achieved, and the amounts can be reasonably estimated, a compensation accrual is recorded based on the proportional achievement of the financial and nonfinancial targets. Although we monitor and accrue expenses quarterly based on our progress toward the achievement of the annual targets, the actual results at the end of the year may result in awards that are significantly greater or less than the estimates made in earlier quarters. | |
Warranty [Policy Text Block] | Warranty |
We offer standard warranties on our hardware products and large application software products. We accrue the estimated cost of new product warranties based on historical and projected product performance trends and costs during the warranty period. Testing of new products in the development stage helps identify and correct potential warranty issues prior to manufacturing. Quality control efforts during manufacturing reduce our exposure to warranty claims. When testing or quality control efforts fail to detect a fault in one of our products, we may experience an increase in warranty claims. We track warranty claims to identify potential warranty trends. If an unusual trend is noted, an additional warranty accrual would be recorded if a failure event is probable and the cost can be reasonably estimated. When new products are introduced, our process relies on historical averages of similar products until sufficient data are available. As actual experience on new products becomes available, it is used to modify the historical averages to ensure the expected warranty costs are within a range of likely outcomes. Management regularly evaluates the sufficiency of the warranty provisions and makes adjustments when necessary. The warranty allowances may fluctuate due to changes in estimates for material, labor, and other costs we may incur to repair or replace projected product failures, and we may incur additional warranty and related expenses in the future with respect to new or established products, which could adversely affect our financial position and results of operations. The long-term warranty balance includes estimated warranty claims beyond one year. Warranty expense is classified within cost of revenues. | |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy | Restructuring |
We record a liability for costs associated with an exit or disposal activity under a restructuring project at its fair value in the period in which the liability is incurred. Employee termination benefits considered postemployment benefits are accrued when the obligation is probable and estimable, such as benefits stipulated by human resource policies and practices or statutory requirements. One-time termination benefits are expensed at the date the employee is notified. If the employee must provide future service greater than 60 days, such benefits are expensed ratably over the future service period. For contract termination costs, we record a liability upon the termination of a contract in accordance with the contract terms or the cessation of the use of the rights conveyed by the contract, whichever occurs later. | |
Asset impairments associated with a restructuring project are determined at the asset group level. An impairment may be recorded for assets that are to be abandoned, are to be sold for less than net book value, or are held for sale in which the estimated proceeds less costs to sell are less than the net book value. We may also recognize impairment on an asset group, which is held and used, when the carrying value is not recoverable and exceeds the asset group's fair value. If an asset group is considered a business, a portion of our goodwill balance is allocated to it based on relative fair value. If the sale of an asset group under a restructuring project results in proceeds that exceed the net book value of the asset group, the resulting gain is recorded within restructuring expense in the Consolidated Statements of Operations. | |
Defined Benefit Pension Plans [Policy Text Block] | Defined Benefit Pension Plans |
We sponsor both funded and unfunded defined benefit pension plans for certain international employees. We recognize a liability for the projected benefit obligation in excess of plan assets or an asset for plan assets in excess of the projected benefit obligation. We also recognize the funded status of our defined benefit pension plans on our Consolidated Balance Sheets and recognize as a component of OCI, net of tax, the actuarial gains or losses and prior service costs or credits, if any, that arise during the period but that are not recognized as components of net periodic benefit cost. If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the employees' average future service period. | |
Share Repurchase Policy [Policy Text Block] | Share Repurchase Plan |
From time to time, we may repurchase shares of Itron common stock under programs authorized by our Board of Directors. Share repurchases are made in the open market or in privately negotiated transactions and in accordance with applicable securities laws. Under applicable Washington State law, shares repurchased are retired and not displayed separately as treasury stock on the financial statements; the value of the repurchased shares is deducted from common stock. | |
Revenue Recognition [Policy Text Block] | Revenue Recognition |
Revenues consist primarily of hardware sales, software license fees, software implementation, project management services, installation, consulting, and post-sale maintenance support. Revenues are recognized when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the sales price is fixed or determinable, and (4) collectability is reasonably assured. | |
The majority of our revenue arrangements involve multiple deliverables, which combine two or more of the following: hardware, meter reading system software, installation, and/or project management services. Revenue arrangements with multiple deliverables are divided into separate units of accounting if the delivered item(s) has value to the customer on a standalone basis and delivery/performance of the undelivered item(s) is probable. The total arrangement consideration is allocated among the separate units of accounting based on their relative fair values and the applicable revenue recognition criteria considered for each unit of accounting. The amount allocable to a delivered item is limited to the amount that we are entitled to collect and that is not contingent upon the delivery/performance of additional items. Revenues for each deliverable are then recognized based on the type of deliverable, such as 1) when the products are shipped, 2) services are delivered, 3) percentage-of-completion when implementation services are essential to other deliverables in the arrangement, 4) upon receipt of customer acceptance, or 5) transfer of title and risk of loss. The majority of our revenue is recognized when products are shipped to or received by a customer or when services are provided. | |
Hardware revenues are recognized at the time of shipment, receipt by the customer, or, if applicable, upon completion of customer acceptance provisions. | |
Generally, network software revenue is recognized when shipped if all other revenue recognition criteria are met and services are not essential to the functionality of the software. If implementation services are essential to the functionality of the network software, software and implementation revenues are recognized using the percentage-of-completion methodology of contract accounting when project costs are reliably estimated. | |
If the data collection system does not use standard internet protocols and network design services are deemed complex and extensive, revenue from network software and services is recognized using the units-of-delivery method of contract accounting, as network design services and network software are essential to the functionality of the related hardware (network). This methodology results in the deferral of costs and revenues as professional services and software implementation commence prior to deployment of hardware. | |
In the unusual instances when we are unable to reliably estimate the cost to complete a contract at its inception, we use the completed contract method of contract accounting. Revenues and costs are recognized upon substantial completion when remaining costs are insignificant and potential risks are minimal. | |
Under contract accounting, if we estimate that the completion of a contract component (unit of accounting) will result in a loss, the loss is recognized in the period in which it is estimated. We reevaluate the estimated loss through the completion of the contract component and adjust the estimated loss for changes in facts and circumstances. | |
We also enter into multiple deliverable software arrangements that do not include hardware. For this type of arrangement, revenue recognition is dependent upon the availability of vendor specific objective evidence (VSOE) of fair value for each of the deliverables. The lack of VSOE, or the existence of extended payment terms or other inherent risks, may affect the timing of revenue recognition for multiple deliverable software arrangements. | |
Certain of our revenue arrangements include an extended or noncustomary warranty provision that covers all or a portion of a customer's replacement or repair costs beyond the standard or customary warranty period. Whether or not the extended warranty is separately priced in the arrangement, a portion of the arrangement's total consideration is allocated to this extended warranty deliverable. This revenue is deferred and recognized over the extended warranty coverage period. Extended or noncustomary warranties do not represent a significant portion of our revenue. | |
We allocate consideration to each deliverable in an arrangement based on its relative selling price. We determine selling price using VSOE, if it exists, otherwise we use third-party evidence (TPE). We define VSOE as a median price of recent standalone transactions that are priced within a narrow range. TPE is determined based on the prices charged by our competitors for a similar deliverable when sold separately. If neither VSOE nor TPE of selling price exists for a unit of accounting, we use estimated selling price (ESP) to determine the price at which we would transact if the product or service were regularly sold by us on a standalone basis. Our determination of ESP involves a weighting of several factors based on the specific facts and circumstances of the arrangement. The factors considered include the cost to produce the deliverable, the anticipated margin on that deliverable, our ongoing pricing strategy and policies, and the characteristics of the varying markets in which the deliverable is sold. | |
We analyze the selling prices used in our allocation of arrangement consideration on an annual basis. Selling prices are analyzed on a more frequent basis if a significant change in our business necessitates a more timely analysis or if we experience significant variances in our selling prices. | |
Unearned revenue is recorded when a customer pays for products or services, but the criteria for revenue recognition have not been met as of the balance sheet date. Unearned revenues of $76.6 million and $69.8 million at December 31, 2014 and 2013 related primarily to professional services and software associated with our smart metering contracts, extended or noncustomary warranty, and prepaid post-contract support. Deferred costs are recorded for products or services for which ownership (typically defined as title and risk of loss) has transferred to the customer, but the criteria for revenue recognition have not been met as of the balance sheet date. Deferred costs were $24.9 million and $23.5 million at December 31, 2014 and 2013 and are recorded within other assets in the Consolidated Balance Sheets. | |
Hardware and software post-sale maintenance support fees are recognized ratably over the life of the related service contract. Shipping and handling costs and incidental expenses billed to customers are recorded as revenue, with the associated cost charged to cost of revenues. We record sales, use, and value added taxes billed to our customers on a net basis. | |
Product and Software Development Costs [Policy Text Block] | Product and Software Development Costs |
Product and software development costs primarily include employee compensation and third party contracting fees. We do not capitalize product development costs, and we do not generally capitalize software development expenses as the costs incurred are immaterial for the relatively short period of time between technological feasibility and the completion of software development. | |
Stock-based Compensation [Policy Text Block] | Stock-Based Compensation |
We measure and recognize compensation expense for all stock-based awards made to employees and directors, including stock options, stock sold pursuant to our Employee Stock Purchase Plan (ESPP), and the issuance of restricted stock units and unrestricted stock awards, based on estimated fair values. The fair value of stock options is estimated at the date of grant using the Black-Scholes option-pricing model, which includes assumptions for the dividend yield, expected volatility, risk-free interest rate, and expected term. For ESPP awards, the fair value is the difference between the market close price of our common stock on the date of purchase and the discounted purchase price. For performance-based restricted stock units and unrestricted stock awards with no market conditions, the fair value is the market close price of our common stock on the date of grant. For restricted stock units with market conditions, the fair value is estimated at the date of award using a Monte Carlo simulation model, which includes assumptions for dividend yield and expected volatility for our common stock and the common stock for companies within the Russell 3000 index, as well as the risk-free interest rate and expected term of the awards. We expense stock-based compensation at the date of grant for unrestricted stock awards. For awards with only a service condition, we expense stock-based compensation, adjusted for estimated forfeitures, using the straight-line method over the requisite service period for the entire award. For awards with performance and service conditions, if vesting is probable, we expense the stock-based compensation, adjusted for estimated forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. For awards with a market condition, we expense the fair value over the requisite service period. Excess tax benefits are credited to common stock when the deduction reduces cash taxes payable. When we have tax deductions in excess of the compensation cost, they are classified as financing cash inflows in the Consolidated Statements of Cash Flows. | |
Effective October 1, 2013, we changed the terms of the ESPP to reduce the discount to 5% from the fair market value of the stock at the end of each fiscal quarter. As a result of this change, the ESPP is no longer considered compensatory, and no compensation expense is recognized for sales of our common stock to employees. | |
Income Tax, Policy [Policy Text Block] | Income Taxes |
We account for income taxes using the asset and liability method of accounting. Deferred tax assets and liabilities are recognized based upon anticipated future tax consequences, in each of the jurisdictions that we operate, attributable to: (1) the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases; and (2) net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The calculation of our tax liabilities involves applying complex tax regulations in different tax jurisdictions to our tax positions. The effect on deferred tax assets and liabilities of a change in tax legislation and/or rates is recognized in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is not more likely than not that such assets will be realized. We do not record tax liabilities on undistributed earnings of international subsidiaries that are permanently reinvested. | |
Foreign Exchange [Policy Text Block] | Foreign Exchange |
Our consolidated financial statements are reported in U.S. dollars. Assets and liabilities of international subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at the exchange rates in effect on the balance sheet date, or the last business day of the period, if applicable. Revenues and expenses for each subsidiary are translated to U.S. dollars using a weighted average rate for the relevant reporting period. Translation adjustments resulting from this process are included, net of tax, in OCI. Gains and losses that arise from exchange rate fluctuations for monetary asset and liability balances that are not denominated in an entity’s functional currency are included within other income (expense), net in the Consolidated Statements of Operations. Currency gains and losses of intercompany balances deemed to be long-term in nature or designated as a hedge of the net investment in international subsidiaries are included, net of tax, in OCI. Foreign currency losses, net of hedging, were $5.1 million in 2014, compared with net foreign currency losses of $3.3 million in 2013 and $3.8 million in 2012. | |
Fair Value Measurement [Policy Text Block] | Fair Value Measurements |
For assets and liabilities measured at fair value, the GAAP fair value hierarchy prioritizes the inputs used in different valuation methodologies, assigning the highest priority to unadjusted quoted prices for identical assets and liabilities in actively traded markets (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs consist of quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in non-active markets; and model-derived valuations in which significant inputs are corroborated by observable market data either directly or indirectly through correlation or other means. Inputs may include yield curves, volatility, credit risks, and default rates. | |
Use of Estimates [Policy Text Block] | Use of Estimates |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to various factors affecting future costs and operations, actual results could differ materially from these estimates. | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 is effective for us on January 1, 2017 using either the retrospective or modified-retrospective transition method. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. |
Earnings_Per_Share_and_Capital1
Earnings Per Share and Capital Structure Earnings Per Share and Capital Structure (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Computation of Basic and Diluted Earnings Per Share [Table Text Block] | The following table sets forth the computation of basic and diluted earnings (loss) per share (EPS): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share data) | ||||||||||||
Net income (loss) available to common shareholders | $ | (22,920 | ) | $ | (146,809 | ) | $ | 108,275 | ||||
Weighted average common shares outstanding - Basic | 39,184 | 39,281 | 39,625 | |||||||||
Dilutive effect of stock-based awards | — | — | 309 | |||||||||
Weighted average common shares outstanding - Diluted | 39,184 | 39,281 | 39,934 | |||||||||
Earnings (loss) per common share - Basic | $ | (0.58 | ) | $ | (3.74 | ) | $ | 2.73 | ||||
Earnings (loss) per common share - Diluted | $ | (0.58 | ) | $ | (3.74 | ) | $ | 2.71 | ||||
Certain_Balance_Sheet_Componen1
Certain Balance Sheet Components Certain Balance Sheet Components (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||
Accounts Receivable, Net [Table Text Block] | ||||||||||||
Accounts receivable, net | December 31, 2014 | December 31, 2013 | ||||||||||
(in thousands) | ||||||||||||
Trade receivables (net of allowance of $6,195 and $8,368) | $ | 312,302 | $ | 328,240 | ||||||||
Unbilled receivables | 36,087 | 28,469 | ||||||||||
Total accounts receivable, net | $ | 348,389 | $ | 356,709 | ||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ||||||||||||
Allowance for doubtful account activity | Year Ended December 31, | |||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 8,368 | $ | 7,372 | ||||||||
Provision for doubtful accounts, net | 308 | 1,740 | ||||||||||
Accounts written-off | (1,955 | ) | (636 | ) | ||||||||
Effects of change in exchange rates | (526 | ) | (108 | ) | ||||||||
Ending balance | $ | 6,195 | $ | 8,368 | ||||||||
Inventories [Table Text Block] | ||||||||||||
Inventories | December 31, 2014 | December 31, 2013 | ||||||||||
(in thousands) | ||||||||||||
Materials | $ | 90,557 | $ | 102,596 | ||||||||
Work in process | 8,991 | 13,770 | ||||||||||
Finished goods | 54,956 | 61,101 | ||||||||||
Total inventories | $ | 154,504 | $ | 177,467 | ||||||||
Property, Plant, and Equipment [Table Text Block] | ||||||||||||
Property, plant, and equipment, net | December 31, 2014 | December 31, 2013 | ||||||||||
(in thousands) | ||||||||||||
Machinery and equipment | $ | 287,448 | $ | 309,525 | ||||||||
Computers and software | 100,212 | 99,654 | ||||||||||
Buildings, furniture, and improvements | 134,461 | 145,926 | ||||||||||
Land | 21,186 | 24,005 | ||||||||||
Construction in progress, including purchased equipment | 21,007 | 14,257 | ||||||||||
Total cost | 564,314 | 593,367 | ||||||||||
Accumulated depreciation | (356,525 | ) | (346,547 | ) | ||||||||
Property, plant, and equipment, net | $ | 207,789 | $ | 246,820 | ||||||||
Depreciation Expense [Table Text Block] | ||||||||||||
Depreciation expense | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Depreciation expense | $ | 54,759 | $ | 56,826 | $ | 61,661 | ||||||
Intangible_Assets_Schedule_of_
Intangible Assets Schedule of Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Schedule of Intangible Assets [Abstract] | ||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The gross carrying amount and accumulated amortization of our intangible assets, other than goodwill, are as follows: | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross Assets | Accumulated | Net | Gross Assets | Accumulated | Net | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Core-developed technology | $ | 405,434 | $ | (359,500 | ) | $ | 45,934 | $ | 428,890 | $ | (356,017 | ) | $ | 72,873 | ||||||||||
Customer contracts and relationships | 262,930 | (172,755 | ) | 90,175 | 291,185 | (173,952 | ) | 117,233 | ||||||||||||||||
Trademarks and trade names | 68,205 | (64,905 | ) | 3,300 | 73,117 | (67,449 | ) | 5,668 | ||||||||||||||||
Other | 11,579 | (11,079 | ) | 500 | 11,089 | (11,023 | ) | 66 | ||||||||||||||||
Total intangible assets subject to amortization | 748,148 | (608,239 | ) | 139,909 | 804,281 | (608,441 | ) | 195,840 | ||||||||||||||||
SummaryOfIntangibleAssetAccountActivity [Table Text Block] | A summary of the intangible asset account activity is as follows: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Beginning balance, intangible assets, gross | $ | 804,281 | $ | 802,540 | ||||||||||||||||||||
Intangible assets acquired | 1,453 | (1,500 | ) | |||||||||||||||||||||
Effect of change in exchange rates | (57,586 | ) | 3,241 | |||||||||||||||||||||
Ending balance, intangible assets, gross | $ | 748,148 | $ | 804,281 | ||||||||||||||||||||
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | A summary of intangible asset amortization expense is as follows: | |||||||||||||||||||||||
Amortization expense | Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Amortization expense | $ | 43,704 | $ | 42,019 | $ | 47,810 | ||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated future annual amortization expense is as follows: | |||||||||||||||||||||||
Years ending December 31, | Estimated Annual | |||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2015 | $ | 33,562 | ||||||||||||||||||||||
2016 | 26,522 | |||||||||||||||||||||||
2017 | 19,485 | |||||||||||||||||||||||
2018 | 13,571 | |||||||||||||||||||||||
2019 | 10,501 | |||||||||||||||||||||||
Beyond 2019 | 36,268 | |||||||||||||||||||||||
Total intangible assets subject to amortization | $ | 139,909 | ||||||||||||||||||||||
Goodwill_Schedule_of_Goodwill_
Goodwill Schedule of Goodwill Allocated to Reporting Segments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||
Schedule of Goodwill [Table Text Block] | The following table reflects goodwill allocated to each reporting segment at December 31, 2014 and 2013: | |||||||||||||||
Electricity | Gas | Water | Total Company | |||||||||||||
(in thousands) | ||||||||||||||||
Goodwill balance at January 1, 2013 | ||||||||||||||||
Goodwill before impairment | $ | 475,711 | $ | 383,743 | $ | 414,394 | $ | 1,273,848 | ||||||||
Accumulated impairment losses | (249,502 | ) | — | (323,330 | ) | (572,832 | ) | |||||||||
Goodwill, net | 226,209 | 383,743 | 91,064 | 701,016 | ||||||||||||
Goodwill impairment | (173,249 | ) | — | — | (173,249 | ) | ||||||||||
Adjustments of previous acquisitions | 3,958 | — | — | 3,958 | ||||||||||||
Effect of change in exchange rates | 3,314 | 11,135 | 2,404 | 16,853 | ||||||||||||
Goodwill balance at December 31, 2013 | ||||||||||||||||
Goodwill before impairment | 493,610 | 394,878 | 429,783 | 1,318,271 | ||||||||||||
Accumulated impairment losses | (433,378 | ) | — | (336,315 | ) | (769,693 | ) | |||||||||
Goodwill, net | 60,232 | 394,878 | 93,468 | 548,578 | ||||||||||||
Goodwill impairment | (977 | ) | — | — | (977 | ) | ||||||||||
Effect of change in exchange rates | (3,568 | ) | (35,393 | ) | (7,820 | ) | (46,781 | ) | ||||||||
Goodwill balance at December 31, 2014 | ||||||||||||||||
Goodwill before impairment | 449,668 | 359,485 | 382,655 | 1,191,808 | ||||||||||||
Accumulated impairment losses | (393,981 | ) | — | (297,007 | ) | (690,988 | ) | |||||||||
Goodwill, net | $ | 55,687 | $ | 359,485 | $ | 85,648 | $ | 500,820 | ||||||||
Debt_Debt_Tables
Debt Debt (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of Debt [Table Text Block] | The components of our borrowings are as follows: | |||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||
(in thousands) | ||||||||||||
Credit Facilities | ||||||||||||
USD denominated term loan | $ | 232,500 | $ | 258,750 | ||||||||
Multicurrency revolving line of credit | 91,469 | 120,000 | ||||||||||
Total debt | 323,969 | 378,750 | ||||||||||
Less: Current portion of debt | 30,000 | 26,250 | ||||||||||
Long-term debt | $ | 293,969 | $ | 352,500 | ||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Required minimum principal payments on our outstanding credit facilities are as follows: | |||||||||||
Minimum Payments | ||||||||||||
(in thousands) | ||||||||||||
2015 | $ | 30,000 | ||||||||||
2016 | 293,969 | |||||||||||
2017 | — | |||||||||||
2018 | — | |||||||||||
2019 | — | |||||||||||
Total minimum payments on debt | $ | 323,969 | ||||||||||
Schedule of Long-Term Debt Repayments [Table Text Block] | Total credit facility repayments were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
2011 credit facility term loan | $ | 26,250 | $ | 18,750 | $ | 15,002 | ||||||
2011 credit facility multicurrency revolving line of credit(1) | 76,188 | 55,000 | 100,000 | |||||||||
Total credit facility repayments | $ | 102,438 | $ | 73,750 | $ | 115,002 | ||||||
-1 | We borrowed $47.7 million, $35.0 million and $80.0 million under the multicurrency revolving line of credit during 2014, 2013 and 2012, respectively. | |||||||||||
Prepaid Debt Fees and Accrued Interest Expense [Table Text Block] | At December 31, 2014 and 2013, unamortized prepaid debt fees were as follows: | |||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||
(in thousands) | ||||||||||||
Unamortized prepaid debt fees | $ | 2,298 | $ | 3,810 | ||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair values of our derivative instruments are as follows: | ||||||||||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815-20 | |||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Other long-term assets | $ | 75 | $ | — | ||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | 107 | 41 | ||||||||||||||||||||||||||||||||||||||
Total asset derivatives | $ | 182 | $ | 41 | |||||||||||||||||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815-20 | |||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Other current liabilities | $ | 1,317 | $ | 1,557 | ||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Other long-term obligations | — | 474 | ||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current liabilities | 236 | 145 | ||||||||||||||||||||||||||||||||||||||
Total liability derivatives | $ | 1,553 | $ | 2,176 | |||||||||||||||||||||||||||||||||||||
Accumulated OCI for Derivative and Nonderivative Instruments Designated as Hedging Instruments, Net of Tax [Table Text Block] | OCI during the reporting period for our derivative and nonderivative instruments designated as hedging instruments, net of tax, was as follows: | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Net unrealized gain (loss) on hedging instruments at January 1, | $ | (15,636 | ) | $ | (16,069 | ) | |||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on derivative instruments | (566 | ) | 2 | ||||||||||||||||||||||||||||||||||||||
Realized (gains) losses reclassified into net income (loss) | 1,054 | 431 | |||||||||||||||||||||||||||||||||||||||
Net unrealized gain (loss) on hedging instruments at December 31, | $ | (15,148 | ) | $ | (15,636 | ) | |||||||||||||||||||||||||||||||||||
Offsetting Assets [Table Text Block] | A summary of the potential effect of netting arrangements on our financial position related to the offsetting of our recognized derivative assets and liabilities under master netting arrangements or similar agreements is as follows: | ||||||||||||||||||||||||||||||||||||||||
Offsetting of Derivative Assets | |||||||||||||||||||||||||||||||||||||||||
Gross Amounts Not | |||||||||||||||||||||||||||||||||||||||||
Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets Presented in | Derivative Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||||||||||||||||||||||
the Consolidated | |||||||||||||||||||||||||||||||||||||||||
Balance Sheets | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | $ | 182 | $ | (182 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||||||
December 31, 2013 | $ | 41 | $ | (40 | ) | $ | — | $ | 1 | ||||||||||||||||||||||||||||||||
Offsetting Liabilities [Table Text Block] | |||||||||||||||||||||||||||||||||||||||||
Offsetting of Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||
Gross Amounts Not | |||||||||||||||||||||||||||||||||||||||||
Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities Presented in | Derivative Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||||||||||||||||||||
the Consolidated | |||||||||||||||||||||||||||||||||||||||||
Balance Sheets | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | $ | 1,553 | $ | (182 | ) | $ | — | $ | 1,371 | ||||||||||||||||||||||||||||||||
December 31, 2013 | $ | 2,176 | $ | (40 | ) | $ | — | $ | 2,136 | ||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | The before-tax effect of our cash flow derivative instruments on the Consolidated Balance Sheets and the Consolidated Statements of Operations for the years ended December 31 are as follows: | ||||||||||||||||||||||||||||||||||||||||
Derivatives in ASC 815-20 | Amount of Gain (Loss) Recognized | Gain (Loss) Reclassified from Accumulated | Gain (Loss) Recognized in Income on | ||||||||||||||||||||||||||||||||||||||
Cash Flow | in OCI on Derivative | OCI into Income (Effective Portion) | Derivative (Ineffective Portion) | ||||||||||||||||||||||||||||||||||||||
Hedging Relationships | (Effective Portion) | Location | Amount | Location | Amount | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | $ | (915 | ) | $ | (3 | ) | $ | (2,725 | ) | Interest expense | $ | (1,704 | ) | $ | 697 | $ | — | Interest expense | $ | — | $ | — | $ | — | |||||||||||||||||
Foreign Exchange Derivatives Not Designated As Hedging Instruments [Table Text Block] | The effect of our foreign exchange forward derivative instruments on the Consolidated Statements of Operations for the years ended December 31 is as follows: | ||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as | Gain (Loss) Recognized on Derivatives in Other Income (Expense) | ||||||||||||||||||||||||||||||||||||||||
Hedging Instrument under ASC 815-20 | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | (5,248 | ) | $ | (145 | ) | $ | (422 | ) |
Defined_Benefit_Pension_Plans_1
Defined Benefit Pension Plans Defined Benefit Pension Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of Changes in Benefit Obligation and Fair Value of Plan Assets [Table Text Block] | The following tables summarize the benefit obligation, plan assets, funded status of the defined benefit plans, amounts recognized in the Consolidated Balance Sheets and amounts recognized in accumulated other comprehensive income (AOCI) at December 31, 2014 and 2013: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at January 1, | $ | 102,662 | $ | 101,766 | ||||||||||||||||||||
Service cost | 3,559 | 4,205 | ||||||||||||||||||||||
Interest cost | 3,476 | 3,355 | ||||||||||||||||||||||
Actuarial (gain) loss | 25,838 | (6,160 | ) | |||||||||||||||||||||
Benefits paid | (5,519 | ) | (5,369 | ) | ||||||||||||||||||||
Foreign currency exchange rate changes | (13,921 | ) | 2,698 | |||||||||||||||||||||
Other | 83 | 2,167 | ||||||||||||||||||||||
Benefit obligation at December 31, | $ | 116,178 | $ | 102,662 | ||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at January 1, | $ | 11,680 | $ | 8,561 | ||||||||||||||||||||
Actual return on plan assets | 494 | 119 | ||||||||||||||||||||||
Company contributions | 375 | 436 | ||||||||||||||||||||||
Benefits paid | (433 | ) | (537 | ) | ||||||||||||||||||||
Foreign currency exchange rate changes | (1,355 | ) | (267 | ) | ||||||||||||||||||||
Other | — | 3,368 | ||||||||||||||||||||||
Fair value of plan assets at December 31, | 10,761 | 11,680 | ||||||||||||||||||||||
Net pension plan benefit liability at fair value | $ | 105,417 | $ | 90,982 | ||||||||||||||||||||
Schedule of Amounts Recognized in the Consolidated Balance Sheets [Table Text Block] | Amounts recognized on the Consolidated Balance Sheets consist of: | |||||||||||||||||||||||
At December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Plan assets in other long-term assets | $ | 567 | $ | 1,426 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Current portion of pension plan liability in wages and benefits payable | 4,552 | 3,721 | ||||||||||||||||||||||
Long-term portion of pension plan liability | 101,432 | 88,687 | ||||||||||||||||||||||
Net pension plan benefit liability | $ | 105,417 | $ | 90,982 | ||||||||||||||||||||
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block] | Amounts in accumulated other comprehensive income (pre-tax) that have not yet been recognized as components of net periodic benefit costs consist of: | |||||||||||||||||||||||
At December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Net actuarial loss | $ | 38,462 | $ | 13,262 | ||||||||||||||||||||
Net prior service cost | 1,203 | 1,133 | ||||||||||||||||||||||
Amount included in accumulated other comprehensive income | $ | 39,665 | $ | 14,395 | ||||||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Amounts recognized in OCI (pre-tax) are as follows: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Net actuarial (gain) loss | $ | 25,838 | $ | (5,881 | ) | $ | 24,492 | |||||||||||||||||
Settlement/curtailment loss | (55 | ) | (325 | ) | (13 | ) | ||||||||||||||||||
Plan asset (gain) loss | 129 | 516 | 108 | |||||||||||||||||||||
Amortization of net actuarial gain (loss) | (572 | ) | (926 | ) | (161 | ) | ||||||||||||||||||
Amortization of prior service cost | (138 | ) | (70 | ) | (68 | ) | ||||||||||||||||||
Other | 68 | (658 | ) | — | ||||||||||||||||||||
Other comprehensive (income) loss | $ | 25,270 | $ | (7,344 | ) | $ | 24,358 | |||||||||||||||||
Schedule of Net Periodic Pension Benefit Costs [Table Text Block] | Net periodic pension benefit costs for our plans include the following components: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Service cost | $ | 3,559 | $ | 4,205 | $ | 2,700 | ||||||||||||||||||
Interest cost | 3,476 | 3,355 | 3,625 | |||||||||||||||||||||
Expected return on plan assets | (619 | ) | (635 | ) | (331 | ) | ||||||||||||||||||
Amortization of prior service costs | 138 | 70 | 68 | |||||||||||||||||||||
Amortization of actuarial net (gain) loss | 572 | 926 | 161 | |||||||||||||||||||||
Settlements and other | 55 | (493 | ) | 97 | ||||||||||||||||||||
Net periodic benefit cost | $ | 7,181 | $ | 7,428 | $ | 6,320 | ||||||||||||||||||
Schedule of Assumptions Used [Table Text Block] | The significant actuarial weighted average assumptions used in determining the benefit obligations and net periodic benefit cost for our benefit plans are as follows: | |||||||||||||||||||||||
At and For The Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Actuarial assumptions used to determine benefit obligations at end of period: | ||||||||||||||||||||||||
Discount rate | 2.36 | % | 3.76 | % | 3.36 | % | ||||||||||||||||||
Expected annual rate of compensation increase | 3.37 | % | 3.33 | % | 3.41 | % | ||||||||||||||||||
Actuarial assumptions used to determine net periodic benefit cost for the period: | ||||||||||||||||||||||||
Discount rate | 3.76 | % | 3.36 | % | 5.51 | % | ||||||||||||||||||
Expected rate of return on plan assets | 5.4 | % | 3.63 | % | 4.08 | % | ||||||||||||||||||
Expected annual rate of compensation increase | 3.33 | % | 3.41 | % | 3.38 | % | ||||||||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | The total obligation and fair value of plan assets for plans with accumulated benefit obligations exceeding the fair value of plan assets are as follows: | |||||||||||||||||||||||
At December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Projected benefit obligation | $ | 114,150 | $ | 99,694 | ||||||||||||||||||||
Accumulated benefit obligation | 102,146 | 90,803 | ||||||||||||||||||||||
Fair value of plan assets | 8,166 | 7,286 | ||||||||||||||||||||||
Fair values of the assets held by the postretirement benefits plans by asset category [Table Text Block] | The fair values of our plan investments by asset category as of December 31, 2014, and 2013 are as follows: | |||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets | Significant Unobservable Inputs | ||||||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Cash | $ | 726 | $ | 726 | $ | — | ||||||||||||||||||
Insurance funds | 7,440 | — | 7,440 | |||||||||||||||||||||
Other securities | 2,595 | — | 2,595 | |||||||||||||||||||||
Total fair value of plan assets | $ | 10,761 | $ | 726 | $ | 10,035 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||
Cash | $ | 846 | $ | 846 | $ | — | ||||||||||||||||||
Insurance funds | 8,260 | — | 8,260 | |||||||||||||||||||||
Other securities | $ | 2,574 | $ | — | $ | 2,574 | ||||||||||||||||||
Total fair value of plan assets | $ | 11,680 | $ | 846 | $ | 10,834 | ||||||||||||||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||
Balance at January 1, 2014 | Net Realized and Unrealized Gains/(Losses) | Net Purchases, Issuances, Settlements, and Other | Net Transfers Into/(Out of) Level 3 | Effect of Foreign Currency | Balance at December 31, 2014 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Insurance funds | $ | 8,260 | $ | 133 | $ | 25 | $ | — | $ | (978 | ) | $ | 7,440 | |||||||||||
Other securities | 2,574 | 320 | (106 | ) | 172 | (365 | ) | 2,595 | ||||||||||||||||
Total | $ | 10,834 | $ | 453 | $ | (81 | ) | $ | 172 | $ | (1,343 | ) | $ | 10,035 | ||||||||||
Balance at January 1, 2013 | Net Realized and Unrealized Gains/(Losses) | Net Purchases, Issuances, Settlements, and Other | Net Transfers Into/(Out of) Level 3 | Effect of Foreign Currency | Balance at December 31, 2013 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Insurance funds | $ | 7,658 | $ | 178 | $ | 105 | $ | — | $ | 319 | $ | 8,260 | ||||||||||||
Other securities | — | (70 | ) | 3,050 | — | (406 | ) | 2,574 | ||||||||||||||||
Total | $ | 7,658 | $ | 108 | $ | 3,155 | $ | — | $ | (87 | ) | $ | 10,834 | |||||||||||
Schedule of Expected Benefit Payments [Table Text Block] | Annual benefit payments, including amounts to be paid from our assets for unfunded plans, and reflecting expected future service, as appropriate, are expected to be paid as follows: | |||||||||||||||||||||||
Year Ending December 31, | Estimated Annual Benefit Payments | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2015 | $ | 4,603 | ||||||||||||||||||||||
2016 | 3,285 | |||||||||||||||||||||||
2017 | 3,754 | |||||||||||||||||||||||
2018 | 3,960 | |||||||||||||||||||||||
2019 | 4,122 | |||||||||||||||||||||||
2020 - 2024 | 27,180 | |||||||||||||||||||||||
StockBased_Compensation_StockB
Stock-Based Compensation Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||
Stock-Based Compensation Expense and Related Tax Benefit [Table Text Block] | For the years ended December 31, stock-based compensation expense and the related tax benefit were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Stock options | $ | 2,333 | $ | 2,074 | $ | 1,547 | |||||||||||
Restricted stock units | 14,591 | 15,475 | 16,583 | ||||||||||||||
Unrestricted stock awards | 936 | 811 | 769 | ||||||||||||||
ESPP | — | 490 | 613 | ||||||||||||||
Total stock-based compensation | $ | 17,860 | $ | 18,850 | $ | 19,512 | |||||||||||
Related tax benefit | $ | 4,994 | $ | 5,152 | $ | 5,377 | |||||||||||
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: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | — | — | — | ||||||||||||||
Expected volatility | 39.3 | % | 38.1 | % | 42.1 | % | |||||||||||
Risk-free interest rate | 1.7 | % | 1 | % | 0.8 | % | |||||||||||
Expected term (years) | 5.5 | 5.5 | 5.1 | ||||||||||||||
Employee Stock Options Activity [Table Text Block] | A summary of our stock option activity for the years ended December 31 is as follows: | ||||||||||||||||
Shares | Weighted | Weighted Average | Aggregate | Weighted | |||||||||||||
Average Exercise | Remaining | Intrinsic Value (1) | Average Grant | ||||||||||||||
Price per Share | Contractual Life | Date Fair Value | |||||||||||||||
(in thousands) | (years) | (in thousands) | |||||||||||||||
Outstanding, January 1, 2012 | 1,109 | $ | 55.97 | 4.5 | $ | 2,323 | |||||||||||
Granted | 196 | 43.27 | $ | 16.51 | |||||||||||||
Exercised | (54 | ) | 21.91 | 1,078 | |||||||||||||
Expired | (114 | ) | 69.37 | ||||||||||||||
Outstanding, December 31, 2012 | 1,137 | $ | 54.06 | 4.8 | $ | 3,815 | |||||||||||
Granted | 129 | $ | 42.76 | $ | 15.44 | ||||||||||||
Exercised | (74 | ) | 23.87 | $ | 1,377 | ||||||||||||
Expired | (12 | ) | 49.04 | ||||||||||||||
Outstanding, December 31, 2013 | 1,180 | $ | 54.79 | 4.6 | $ | 1,300 | |||||||||||
Granted | 160 | $ | 35.65 | $ | 13.65 | ||||||||||||
Exercised | (67 | ) | 28.03 | $ | 826 | ||||||||||||
Forfeited | (7 | ) | 44.06 | ||||||||||||||
Expired | (143 | ) | 68.97 | ||||||||||||||
Outstanding, December 31, 2014 | 1,123 | $ | 51.9 | 4.4 | $ | 1,676 | |||||||||||
Exercisable, December 31, 2014 | 819 | $ | 56.65 | 3.2 | $ | 569 | |||||||||||
Expected to vest, December 31, 2014 | 296 | $ | 39.12 | 7.7 | $ | 1,074 | |||||||||||
(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. | ||||||||||||||||
Schedule of Share-based Payment Award, Restricted Stock Units, Valuation Assumptions [Table Text Block] | The weighted-average assumptions used to estimate the fair value of performance-based restricted stock units granted and the resulting weighted average fair-value are as follows: | ||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | ||||||||||||||||
Dividend yield | — | — | |||||||||||||||
Expected volatility | 32.3 | % | 39.1 | % | |||||||||||||
Risk-free interest rate | 0.4 | % | 0.3 | % | |||||||||||||
Expected term (years) | 2 | 2.5 | |||||||||||||||
Weighted-average fair value | $35.15 | $45.03 | |||||||||||||||
Restricted Stock Units Award Activity [Table Text Block] | The following table summarizes restricted stock unit activity for the years ended December 31: | ||||||||||||||||
Number of | Weighted | Aggregate | |||||||||||||||
Restricted Stock Units | Average Grant | Intrinsic Value(1) | |||||||||||||||
Date Fair Value | |||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Outstanding, January 1, 2012 | 625 | ||||||||||||||||
Granted | 464 | $ | 47.21 | ||||||||||||||
Released | (275 | ) | $ | 16,855 | |||||||||||||
Forfeited | (40 | ) | |||||||||||||||
Outstanding, December 31, 2012 | 774 | ||||||||||||||||
Granted | 255 | $ | 42.51 | ||||||||||||||
Released | (331 | ) | $ | 17,983 | |||||||||||||
Forfeited | (40 | ) | |||||||||||||||
Outstanding, December 31, 2013 | 658 | ||||||||||||||||
Granted(2) | 350 | $ | 35.74 | ||||||||||||||
Released | (291 | ) | $ | 14,402 | |||||||||||||
Forfeited | (35 | ) | |||||||||||||||
Outstanding, December 31, 2014 | 682 | ||||||||||||||||
Vested but not released, December 31, 2014 | 19 | $ | 821 | ||||||||||||||
Expected to vest, December 31, 2014 | 571 | $ | 24,130 | ||||||||||||||
(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) | Restricted stock units include 14,433 shares for the 2-year award under the 2013 Performance Award Agreement, which are eligible for distribution at December 31, 2014. | ||||||||||||||||
Unrestricted Stock Awards Activity [Table Text Block] | The following table summarizes unrestricted stock award activity for the years ended December 31: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Shares of unrestricted stock granted | 24 | 18 | 19 | ||||||||||||||
Weighted average grant date fair value per share | $ | 39.06 | $ | 44.12 | $ | 41.43 | |||||||||||
Employee Stock Purchase Plan (ESPP) Activity [Table Text Block] | The following table summarizes ESPP activity for the years ended December 31: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Shares of stock sold to employees(1) | 61 | 94 | 101 | ||||||||||||||
Weighted average fair value per ESPP award(2) | $ | — | $ | 6.61 | $ | 6.29 | |||||||||||
(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 periods during the years ended December 31. Effective October 1, 2013, the ESPP is no longer compensatory and therefore the 2013 weighted average fair value per award is for the nine months ended September 30, 2013. |
Defined_Contribution_Bonus_and1
Defined Contribution Bonus and Profit Sharing Plans Defined Contribution, Bonus, and Profit Sharing (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Defined Contribution, Bonus, and Profit Sharing [Abstract] | ||||||||||||
Schedule of Costs of Retirement Plans [Table Text Block] | The expense for our defined contribution plans was as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Defined contribution plans expense | $ | 7,097 | $ | 7,392 | $ | 7,551 | ||||||
Schedule of Bonus and Profit Sharing Expenses [Table Text Block] | Bonus and profit sharing plans and award expense was as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Bonus and profit sharing plans and award expense | $ | 37,850 | $ | 15,745 | $ | 25,297 | ||||||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Taxes [Abstract] | ||||||||||||
Income Tax Provision [Table Text Block] | The following table summarizes the provision (benefit) for U.S. federal, state, and foreign taxes on income from continuing operations: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 17,248 | $ | 145 | $ | 11,935 | ||||||
State and local | 730 | 1,089 | 1,387 | |||||||||
Foreign | 20,205 | 21,860 | 19,448 | |||||||||
Total current | 38,183 | 23,094 | 32,770 | |||||||||
Deferred: | ||||||||||||
Federal | (78,901 | ) | (16,413 | ) | 12,195 | |||||||
State and local | (682 | ) | (2,472 | ) | 468 | |||||||
Foreign | (52,610 | ) | (25,872 | ) | (32,293 | ) | ||||||
Total deferred | (132,193 | ) | (44,757 | ) | (19,630 | ) | ||||||
Change in valuation allowance | 100,651 | 17,999 | 12,855 | |||||||||
Total provision (benefit) for income taxes | $ | 6,641 | $ | (3,664 | ) | $ | 25,995 | |||||
Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of income taxes at the U.S. federal statutory rate of 35% to the consolidated actual tax rate is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Income (loss) before income taxes | ||||||||||||
Domestic | $ | 92,933 | $ | 19,016 | $ | 167,299 | ||||||
Foreign | (107,842 | ) | (167,270 | ) | (31,080 | ) | ||||||
Total income (loss) before income taxes | $ | (14,909 | ) | $ | (148,254 | ) | $ | 136,219 | ||||
Expected federal income tax provision (benefit) | $ | (5,218 | ) | $ | (51,889 | ) | $ | 47,677 | ||||
Goodwill impairment | 119 | 49,730 | (1,905 | ) | ||||||||
Change in valuation allowance | 100,651 | 17,999 | 12,855 | |||||||||
Stock-based compensation | 1,255 | 1,598 | 1,787 | |||||||||
Foreign earnings (1) | (30,417 | ) | (15,655 | ) | (36,536 | ) | ||||||
Tax credits | (91,148 | ) | (10,352 | ) | (2,174 | ) | ||||||
Uncertain tax positions, including interest and penalties | 974 | 1,360 | (2,740 | ) | ||||||||
Change in tax rates | (20 | ) | 1,442 | 174 | ||||||||
State income tax provision (benefit), net of federal effect | (984 | ) | (2,291 | ) | 1,242 | |||||||
U.S. tax provision on foreign earnings | 31,309 | (245 | ) | 2,370 | ||||||||
Domestic production activities deduction | (2,312 | ) | (146 | ) | (2,612 | ) | ||||||
Local foreign taxes | 2,295 | 3,212 | 3,635 | |||||||||
Other, net | 137 | 1,573 | 2,222 | |||||||||
Total provision (benefit) for income taxes | $ | 6,641 | $ | (3,664 | ) | $ | 25,995 | |||||
-1 | Foreign earnings for all jurisdictions are classified as a single reconciling item to be consistent with the current year presentation. | |||||||||||
Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and liabilities consist of the following: | |||||||||||
At December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets | ||||||||||||
Loss carryforwards(1) | $ | 188,607 | $ | 174,360 | ||||||||
Tax credits(2) | 81,903 | 16,073 | ||||||||||
Accrued expenses | 54,393 | 40,593 | ||||||||||
Pension plan benefits expense | 19,679 | 13,464 | ||||||||||
Warranty reserves | 19,141 | 16,704 | ||||||||||
Depreciation and amortization | 19,111 | 16,770 | ||||||||||
Equity compensation | 10,039 | 9,908 | ||||||||||
Inventory valuation | 4,420 | 2,942 | ||||||||||
Other deferred tax assets, net | 8,968 | 9,858 | ||||||||||
Total deferred tax assets | 406,261 | 300,672 | ||||||||||
Valuation allowance | (256,619 | ) | (161,026 | ) | ||||||||
Total deferred tax assets, net of valuation allowance | 149,642 | 139,646 | ||||||||||
Deferred tax liabilities | ||||||||||||
Depreciation and amortization | (37,061 | ) | (50,606 | ) | ||||||||
Tax effect of accumulated translation | (568 | ) | (1,551 | ) | ||||||||
Other deferred tax liabilities, net | (2,299 | ) | (2,883 | ) | ||||||||
Total deferred tax liabilities | (39,928 | ) | (55,040 | ) | ||||||||
Net deferred tax assets | $ | 109,714 | $ | 84,606 | ||||||||
(1) | For tax return purposes at December 31, 2014, we had U.S. federal loss carryforwards of $19.8 million that expire during the years 2020 and 2021. At December 31, 2014, we have net operating loss carryforwards in Luxembourg of $441.3 million that can be carried forward indefinitely, offset by a full valuation allowance. The remaining portion of the loss carryforwards are composed primarily of losses in various other foreign jurisdictions. The majority of these losses can be carried forward indefinitely. At December 31, 2014, there was a valuation allowance of $256.6 million primarily associated with foreign loss carryforwards and foreign tax credit carryforwards (discussed below). | |||||||||||
(2) | For tax return purposes at December 31, 2014, we had: (1) U.S. general business credits of $18.2 million, which begin to expire in 2022; (2) U.S. alternative minimum tax credits of $2.5 million that can be carried forward indefinitely; and (3) U.S. foreign tax credits of $75.4 million, which begin to expire in 2019. At December 31, 2014, there was a valuation allowance of $58.5 million associated with foreign tax credit carryforward. | |||||||||||
Unrecognized Tax Benefits Related To Uncertain Tax Positions [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||
Unrecognized tax benefits at January 1, 2012 | $ | 28,482 | ||||||||||
Gross increase to positions in prior years | 299 | |||||||||||
Gross decrease to positions in prior years | (51 | ) | ||||||||||
Gross increases to current period tax positions | 3,347 | |||||||||||
Audit settlements | (27 | ) | ||||||||||
Decrease related to lapsing of statute of limitations | (5,769 | ) | ||||||||||
Effect of change in exchange rates | 152 | |||||||||||
Unrecognized tax benefits at December 31, 2012 | $ | 26,433 | ||||||||||
Gross increase to positions in prior years | 2,154 | |||||||||||
Gross decrease to positions in prior years | (536 | ) | ||||||||||
Gross increases to current period tax positions | 1,670 | |||||||||||
Audit settlements | — | |||||||||||
Decrease related to lapsing of statute of limitations | (817 | ) | ||||||||||
Effect of change in exchange rates | (289 | ) | ||||||||||
Unrecognized tax benefits at December 31, 2013 | $ | 28,615 | ||||||||||
Gross increase to positions in prior years | 2,749 | |||||||||||
Gross decrease to positions in prior years | (1,641 | ) | ||||||||||
Gross increases to current period tax positions | 3,008 | |||||||||||
Audit settlements | — | |||||||||||
Decrease related to lapsing of statute of limitations | (1,715 | ) | ||||||||||
Effect of change in exchange rates | (2,870 | ) | ||||||||||
Unrecognized tax benefits at December 31, 2014 | $ | 28,146 | ||||||||||
At December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate | $ | 26,980 | $ | 27,694 | $ | 25,852 | ||||||
We classify interest expense and penalties related to unrecognized tax benefits and interest income on tax overpayments as components of income tax expense. The net interest and penalties expense (benefit) recognized is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Net interest and penalties expense (benefit) | $ | (76 | ) | $ | (898 | ) | $ | (414 | ) | |||
At December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Accrued interest | $ | 1,755 | $ | 2,078 | ||||||||
Accrued penalties | 2,671 | 3,075 | ||||||||||
At December 31, 2014, we are under examination by certain tax authorities for the 2000 to 2012 tax years. The material jurisdictions where we are subject to examination for the 2000 to 2012 tax years include, among others, the U.S., France, Germany, Italy, Brazil and the United Kingdom. No material changes have occurred to previously disclosed assessments. We believe we have appropriately accrued for the expected outcome of all tax matters and do not currently anticipate that the ultimate resolution of these examinations will have a material adverse effect on our financial condition, future results of operations, or liquidity. | ||||||||||||
Based upon the timing and outcome of examinations, litigation, the impact of legislative, regulatory, and judicial developments, and the impact of these items on the statute of limitations, it is reasonably possible that the related unrecognized tax benefits could change from those recorded within the next twelve months. However, at this time, an estimate of the range of reasonably possible adjustments to the balance of unrecognized tax benefits cannot be made. | ||||||||||||
We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. We are subject to income tax examination by tax authorities in our major tax jurisdictions as follows: | ||||||||||||
Tax Jurisdiction | Years Subject to Audit | |||||||||||
U.S. federal | Subsequent to 1999 | |||||||||||
France | Subsequent to 2009 | |||||||||||
Germany | Subsequent to 2007 | |||||||||||
Brazil | Subsequent to 2008 | |||||||||||
United Kingdom | Subsequent to 2011 | |||||||||||
Italy | Subsequent to 2007 |
Commitments_and_Contingencies_1
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Schedule of Rent Expense [Table Text Block] | Operating lease rental expense for factories, service and distribution locations, offices, and equipment was as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Rental expense | $ | 19,178 | $ | 18,662 | $ | 17,877 | ||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments at December 31, 2014, under noncancelable operating leases with initial or remaining terms in excess of one year are as follows: | |||||||||||
Minimum Payments | ||||||||||||
(in thousands) | ||||||||||||
2015 | $ | 12,142 | ||||||||||
2016 | 8,564 | |||||||||||
2017 | 7,099 | |||||||||||
2018 | 6,630 | |||||||||||
2019 | 4,580 | |||||||||||
Beyond 2019 | 1,721 | |||||||||||
Future minimum lease payments | $ | 40,736 | ||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | Our available lines of credit, outstanding standby LOCs, and bonds are as follows: | |||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||
(in thousands) | ||||||||||||
Credit facilities(1) | ||||||||||||
Multicurrency revolving line of credit | $ | 660,000 | $ | 660,000 | ||||||||
Long-term borrowings | (91,469 | ) | (120,000 | ) | ||||||||
Standby LOCs issued and outstanding | (50,399 | ) | (49,491 | ) | ||||||||
Net available for additional borrowings and LOCs | $ | 518,132 | $ | 490,509 | ||||||||
Unsecured multicurrency revolving lines of credit with various financial institutions | ||||||||||||
Multicurrency revolving line of credit | $ | 106,855 | $ | 115,269 | ||||||||
Standby LOCs issued and outstanding | (28,636 | ) | (31,714 | ) | ||||||||
Short-term borrowings(2) | (4,282 | ) | (4,252 | ) | ||||||||
Net available for additional borrowings and LOCs | $ | 73,937 | $ | 79,303 | ||||||||
Unsecured surety bonds in force | $ | 116,306 | $ | 186,446 | ||||||||
-1 | Refer to Note 6 for details regarding our secured credit facilities. | |||||||||||
-2 | Short-term borrowings are included in “Other current liabilities” on the Consolidated Balance Sheets. | |||||||||||
Schedule of Warranty Accruals [Table Text Block] | A summary of the warranty accrual account activity is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 45,146 | $ | 53,605 | ||||||||
New product warranties | 6,441 | 5,561 | ||||||||||
Other changes/adjustments to warranties | 3,729 | 10,343 | ||||||||||
Claims activity | (16,568 | ) | (23,593 | ) | ||||||||
Effect of change in exchange rates | (2,282 | ) | (770 | ) | ||||||||
Ending balance | 36,466 | 45,146 | ||||||||||
Less: current portion of warranty | 21,063 | 21,048 | ||||||||||
Long-term warranty | $ | 15,403 | $ | 24,098 | ||||||||
Warranty Expense [Table Text Block] | Warranty expense for the years ended December 31 is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Total warranty expense | $ | 10,170 | $ | 15,904 | $ | 13,186 | ||||||
Schedule of Changes to Unearned Revenue for Extended Warranty [Table Text Block] | A summary of changes to unearned revenue for extended warranty contracts is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 33,528 | $ | 31,960 | ||||||||
Unearned revenue for new extended warranties | 3,529 | 4,039 | ||||||||||
Unearned revenue recognized | (2,655 | ) | (2,210 | ) | ||||||||
Effect of change in exchange rates | (264 | ) | (261 | ) | ||||||||
Ending balance | 34,138 | 33,528 | ||||||||||
Less: current portion of unearned revenue for extended warranty | 2,759 | 2,385 | ||||||||||
Long-term unearned revenue for extended warranty within Other long-term obligations | $ | 31,379 | $ | 31,143 | ||||||||
Health Benefit Plan Costs and Incurred But Not Reported Accrual Balance [Table Text Block] | Plan costs are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Plan costs | $ | 23,206 | $ | 22,324 | $ | 26,755 | ||||||
IBNR accrual, which is included in wages and benefits payable, is as follows: | ||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||
(in thousands) | ||||||||||||
IBNR accrual | $ | 1,924 | $ | 2,206 | ||||||||
Restructuring_Restructuring_Ta
Restructuring Restructuring (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring Project [Line Items] | ||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the activity within the restructuring related balance sheet accounts, for the 2014 and 2013 Projects, during the year ended December 31, 2014: | |||||||||||||||
Accrued Employee Severance | Asset Impairments & Net (Gain) Loss on Sale or Disposal | Other Accrued Costs | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Beginning balance, January 1, 2014 | $ | 32,709 | $ | — | $ | 3,632 | $ | 36,341 | ||||||||
Costs incurred and charged to expense | 41,952 | 5,220 | 3,685 | 50,857 | ||||||||||||
Cash payments | (12,732 | ) | — | (3,581 | ) | (16,313 | ) | |||||||||
Non-cash items | — | (5,220 | ) | — | (5,220 | ) | ||||||||||
Effect of change in exchange rates | (2,596 | ) | — | (210 | ) | (2,806 | ) | |||||||||
Ending balance, December 31, 2014 | $ | 59,333 | $ | — | $ | 3,526 | $ | 62,859 | ||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table includes long-lived assets held and used that were measured at fair value on a nonrecurring basis as of December 31, 2014 and 2013, and the related recognized losses for the years ended December 31, 2014 and 2013: | |||||||||||||||
Net Carrying Value | Fair Value Measurement (Level 3) | Total Loss Recognized | ||||||||||||||
(in thousands) | ||||||||||||||||
2014 | ||||||||||||||||
Long-lived assets held and used | $ | 1,930 | $ | 1,930 | $ | 7,952 | ||||||||||
2013 | ||||||||||||||||
Long-lived assets held and used | $ | — | $ | — | $ | — | ||||||||||
2014 Project [Member] | ||||||||||||||||
Restructuring Project [Line Items] | ||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The total expected restructuring costs, the restructuring costs recognized during the year ended December 31, 2014, and the remaining expected restructuring costs as of December 31, 2014 are as follows: | |||||||||||||||
Total Expected Costs at | Costs Recognized During the Year Ended December 31, 2014 | Remaining Costs to be Recognized at December 31, 2014 | ||||||||||||||
December 31, 2014 | ||||||||||||||||
(in thousands) | ||||||||||||||||
Employee severance costs | $ | 47,447 | $ | 47,447 | $ | — | ||||||||||
Asset impairments | 7,952 | 7,952 | — | |||||||||||||
Other restructuring costs | 11,254 | 401 | 10,853 | |||||||||||||
Total | $ | 66,653 | $ | 55,800 | $ | 10,853 | ||||||||||
Segments: | ||||||||||||||||
Electricity | $ | 39,730 | $ | 29,660 | $ | 10,070 | ||||||||||
Gas | 12,455 | 12,185 | 270 | |||||||||||||
Water | 1,145 | 1,106 | 39 | |||||||||||||
Corporate unallocated | 13,323 | 12,849 | 474 | |||||||||||||
Total | $ | 66,653 | $ | 55,800 | $ | 10,853 | ||||||||||
2013 Project [Member] | ||||||||||||||||
Restructuring Project [Line Items] | ||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The total expected restructuring costs, the costs recognized in prior periods, the restructuring costs recognized during the year ended December 31, 2014, and the remaining expected restructuring costs as of December 31, 2014 were as follows: | |||||||||||||||
Total Expected Costs at | Costs Recognized in Prior Periods | Costs Recognized During the | Remaining Costs to be Recognized at | |||||||||||||
31-Dec-14 | Year Ended | 31-Dec-14 | ||||||||||||||
31-Dec-14 | ||||||||||||||||
(in thousands) | ||||||||||||||||
Employee severance costs | $ | 23,691 | $ | 29,186 | $ | (5,495 | ) | $ | — | |||||||
Asset impairments | (1,500 | ) | 1,232 | (2,732 | ) | — | ||||||||||
Other restructuring costs | 3,965 | 681 | 3,284 | — | ||||||||||||
Total | $ | 26,156 | $ | 31,099 | $ | (4,943 | ) | $ | — | |||||||
Segments: | ||||||||||||||||
Electricity | $ | 15,512 | $ | 24,056 | $ | (8,544 | ) | $ | — | |||||||
Gas | 1,375 | 4,369 | (2,994 | ) | — | |||||||||||
Water | 3,130 | 1,957 | 1,173 | — | ||||||||||||
Corporate unallocated | 6,139 | 717 | 5,422 | — | ||||||||||||
Total | $ | 26,156 | $ | 31,099 | $ | (4,943 | ) | $ | — | |||||||
Shareholders_Equity_Other_Comp
Shareholders' Equity Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Other Comprehensive Income (Loss) [Abstract] | ||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in the components of accumulated other comprehensive income (loss), net of tax, were as follows: | |||||||||||||||||||
Foreign Currency Translation Adjustments | Net Unrealized Gain (Loss) on Derivative Instruments | Net Unrealized Gain (Loss) on Nonderivative Instruments | Pension Plan Benefit Liability Adjustments | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balances at January 1, 2012 | $ | (24,718 | ) | $ | — | $ | (14,380 | ) | $ | 1,938 | $ | (37,160 | ) | |||||||
OCI before reclassifications | 21,405 | (1,689 | ) | — | (16,772 | ) | 2,944 | |||||||||||||
Amounts reclassified from AOCI | — | — | — | (168 | ) | (168 | ) | |||||||||||||
Current period other comprehensive income (loss) | 21,405 | (1,689 | ) | — | (16,940 | ) | 2,776 | |||||||||||||
Balances at December 31, 2012 | $ | (3,313 | ) | $ | (1,689 | ) | $ | (14,380 | ) | $ | (15,002 | ) | $ | (34,384 | ) | |||||
OCI before reclassifications | 7,112 | 2 | — | 6,496 | 13,610 | |||||||||||||||
Amounts reclassified from AOCI | — | 431 | — | (1,379 | ) | (948 | ) | |||||||||||||
Current period other comprehensive income (loss) | 7,112 | 433 | — | 5,117 | 12,662 | |||||||||||||||
Balances at December 31, 2013 | $ | 3,799 | $ | (1,256 | ) | $ | (14,380 | ) | $ | (9,885 | ) | $ | (21,722 | ) | ||||||
OCI before reclassifications | (90,333 | ) | (566 | ) | — | (24,192 | ) | (115,091 | ) | |||||||||||
Amounts reclassified from AOCI | — | 1,054 | — | (755 | ) | 299 | ||||||||||||||
Current period other comprehensive income (loss) | (90,333 | ) | 488 | — | (24,947 | ) | (114,792 | ) | ||||||||||||
Balances at December 31, 2014 | $ | (86,534 | ) | $ | (768 | ) | $ | (14,380 | ) | $ | (34,832 | ) | $ | (136,514 | ) | |||||
Income Tax (Provision) Benefit Related To OCI [Table Text Block] | The before-tax amount, income tax (provision) benefit, and net-of-tax amount related to each component of other comprehensive income (loss) during the reporting periods were as follows: | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Before-tax amount | ||||||||||||||||||||
Foreign currency translation adjustment | $ | (90,365 | ) | $ | 8,126 | $ | 28,002 | |||||||||||||
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | (915 | ) | (3 | ) | (2,725 | ) | ||||||||||||||
Net hedging (gain) loss reclassified into net income (loss) | 1,704 | 697 | — | |||||||||||||||||
Pension plan benefits liability adjustment | (25,270 | ) | 7,344 | (24,358 | ) | |||||||||||||||
Total other comprehensive income (loss), before tax | (114,846 | ) | 16,164 | 919 | ||||||||||||||||
Tax (provision) benefit | ||||||||||||||||||||
Foreign currency translation adjustment | 32 | (1,014 | ) | (6,597 | ) | |||||||||||||||
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | 349 | 5 | 1,036 | |||||||||||||||||
Net hedging (gain) loss reclassified into net income (loss) | (650 | ) | (266 | ) | — | |||||||||||||||
Pension plan benefits liability adjustment | 323 | (2,227 | ) | 7,418 | ||||||||||||||||
Total other comprehensive income (loss) tax (provision) benefit | 54 | (3,502 | ) | 1,857 | ||||||||||||||||
Net-of-tax amount | ||||||||||||||||||||
Foreign currency translation adjustment | (90,333 | ) | 7,112 | 21,405 | ||||||||||||||||
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | (566 | ) | 2 | (1,689 | ) | |||||||||||||||
Net hedging (gain) loss reclassified into net income (loss) | 1,054 | 431 | — | |||||||||||||||||
Pension plan benefits liability adjustment | (24,947 | ) | 5,117 | (16,940 | ) | |||||||||||||||
Total other comprehensive income (loss), net of tax | $ | (114,792 | ) | $ | 12,662 | $ | 2,776 | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Details about the AOCI components reclassified to the Consolidated Statements of Operations during the reporting periods are as follows: | |||||||||||||||||||
Amount Reclassified from AOCI(1) | ||||||||||||||||||||
Year Ended December 31, | Affected Line Item in the Income Statement | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Amortization of defined benefit pension items | ||||||||||||||||||||
Prior-service costs | $ | (138 | ) | $ | (70 | ) | $ | (68 | ) | (2) | ||||||||||
Actuarial gains (losses) | (572 | ) | (926 | ) | (161 | ) | (2) | |||||||||||||
Loss on settlement | (55 | ) | (325 | ) | (13 | ) | (2) | |||||||||||||
Other | — | (658 | ) | — | (2) | |||||||||||||||
Total, before tax | (765 | ) | (1,979 | ) | (242 | ) | Income before income taxes | |||||||||||||
Tax benefit (provision) | 10 | 600 | 74 | Income tax provision | ||||||||||||||||
Total, net of tax | (755 | ) | (1,379 | ) | (168 | ) | Net income | |||||||||||||
Total reclassifications for the period, net of tax | $ | (755 | ) | $ | (1,379 | ) | $ | (168 | ) | Net income | ||||||||||
-1 | Amounts in parenthesis indicate debits to the Statements of Operations. | |||||||||||||||||||
(2) | These AOCI components are included in the computation of net periodic pension cost. Refer to Note 8 for additional details. | |||||||||||||||||||
Refer to Note 7 for additional details related to derivative activities that resulted in reclassification of AOCI to the Consolidated Statements of Operations. |
Fair_Values_of_Financial_Instr1
Fair Values of Financial Instruments Schedule of Fair Values Of Financial Instruments by Balance Sheet Grouping (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Schedule of Fair Values Of Financial Instruments by Balance Sheet Grouping [Table Text Block] | The fair values at December 31, 2014 and 2013 do not reflect subsequent changes in the economy, interest rates, tax rates, and other variables that may affect the determination of fair value. | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 112,371 | $ | 112,371 | $ | 124,805 | $ | 124,805 | ||||||||
Foreign exchange forwards | 107 | 107 | 41 | 41 | ||||||||||||
Interest rate swaps | 75 | 75 | — | — | ||||||||||||
Liabilities | ||||||||||||||||
Credit facility | ||||||||||||||||
USD denominated term loan | $ | 232,500 | $ | 231,645 | $ | 258,750 | $ | 258,011 | ||||||||
Multicurrency revolving line of credit | 91,469 | 91,124 | 120,000 | 119,609 | ||||||||||||
Interest rate swaps | 1,317 | 1,317 | 2,031 | 2,031 | ||||||||||||
Foreign exchange forwards | 236 | 236 | 145 | 145 | ||||||||||||
Segment_Information_Segment_In
Segment Information Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Revenues Gross Profit And Operating Income By Segment [Table Text Block] | Revenues, gross profit, and operating income associated with our segments were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Revenues | ||||||||||||
Electricity | $ | 794,144 | $ | 836,553 | $ | 1,024,340 | ||||||
Gas | 599,081 | 570,297 | 627,193 | |||||||||
Water | 577,472 | 541,878 | 526,645 | |||||||||
Total Company | $ | 1,970,697 | $ | 1,948,728 | $ | 2,178,178 | ||||||
Gross profit | ||||||||||||
Electricity | $ | 208,476 | $ | 218,913 | $ | 295,005 | ||||||
Gas | 211,815 | 207,915 | 235,391 | |||||||||
Water | 202,834 | 187,705 | 184,751 | |||||||||
Total Company | $ | 623,125 | $ | 614,533 | $ | 715,147 | ||||||
Operating income (loss) | ||||||||||||
Electricity | $ | (72,476 | ) | $ | (235,908 | ) | $ | 24,812 | ||||
Gas | 75,598 | 83,882 | 110,557 | |||||||||
Water | 71,006 | 63,252 | 59,210 | |||||||||
Corporate unallocated | (70,296 | ) | (46,407 | ) | (43,453 | ) | ||||||
Total Company | 3,832 | (135,181 | ) | 151,126 | ||||||||
Total other income (expense) | (18,741 | ) | (13,073 | ) | (14,907 | ) | ||||||
Income (loss) before income taxes | $ | (14,909 | ) | $ | (148,254 | ) | $ | 136,219 | ||||
Revenues By Region [Table Text Block] | Revenues by region were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
United States and Canada | $ | 899,399 | $ | 851,295 | $ | 1,014,739 | ||||||
Europe, Middle East, and Africa (EMEA) | 848,502 | 858,026 | 878,615 | |||||||||
Other | 222,796 | 239,407 | 284,824 | |||||||||
Total revenues | $ | 1,970,697 | $ | 1,948,728 | $ | 2,178,178 | ||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | Property, plant, and equipment, net, by geographic area were as follows: | |||||||||||
At December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
United States | $ | 76,130 | $ | 87,954 | ||||||||
Outside United States | 131,659 | 158,866 | ||||||||||
Total property, plant, and equipment, net | $ | 207,789 | $ | 246,820 | ||||||||
Depreciation And Amortization Expense Associated With Segments [Table Text Block] | Depreciation and amortization expense associated with our segments was as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Electricity | $ | 47,886 | $ | 46,535 | $ | 52,113 | ||||||
Gas | 26,031 | 27,266 | 29,968 | |||||||||
Water | 24,259 | 24,797 | 27,324 | |||||||||
Corporate Unallocated | 287 | 247 | 66 | |||||||||
Total Company | $ | 98,463 | $ | 98,845 | $ | 109,471 | ||||||
Quarterly_Results_Unaudited_Qu
Quarterly Results (Unaudited) Quarterly Results (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Results (Unaudited) [Abstract] | ||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total Year | ||||||||||||||||
(in thousands, except per common share and stock price data) | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Statement of operations data: | ||||||||||||||||||||
Revenues | $ | 474,795 | $ | 489,353 | $ | 496,454 | $ | 510,095 | $ | 1,970,697 | ||||||||||
Gross profit | 154,535 | 163,041 | 150,762 | 154,787 | 623,125 | |||||||||||||||
Net income (loss) attributable to Itron, Inc. | (254 | ) | 19,259 | 7,308 | (49,233 | ) | (22,920 | ) | ||||||||||||
Earnings (loss) per common share - Basic | $ | (0.01 | ) | $ | 0.49 | $ | 0.19 | $ | (1.25 | ) | $ | (0.58 | ) | |||||||
Earnings (loss) per common share - Diluted | $ | (0.01 | ) | $ | 0.49 | $ | 0.19 | $ | (1.25 | ) | $ | (0.58 | ) | |||||||
2013 | ||||||||||||||||||||
Statement of operations data: | ||||||||||||||||||||
Revenues | $ | 447,536 | $ | 482,175 | $ | 495,491 | $ | 523,526 | $ | 1,948,728 | ||||||||||
Gross profit | 140,123 | 159,588 | 150,084 | 164,738 | 614,533 | |||||||||||||||
Net income (loss) attributable to Itron, Inc. | 2,570 | 12,399 | (7,348 | ) | (154,430 | ) | (146,809 | ) | ||||||||||||
Earnings (loss) per common share - Basic | $ | 0.07 | $ | 0.31 | $ | (0.19 | ) | $ | (3.93 | ) | $ | (3.74 | ) | |||||||
Earnings (loss) per common share - Diluted | $ | 0.06 | $ | 0.31 | $ | (0.19 | ) | $ | (3.93 | ) | $ | (3.74 | ) | |||||||
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Summary of Valuation Allowance [Table Text Block] | |||||||||||||||||
Description | Balance at Beginning of Period | Other Adjustments | Additions Charged to Costs and Expenses | Balance at End of Period, Noncurrent | |||||||||||||
(in thousands) | |||||||||||||||||
Year ended December 31, 2014: | |||||||||||||||||
Deferred tax assets valuation allowance | $ | 161,026 | $ | (5,058 | ) | $ | 100,651 | $ | 256,619 | ||||||||
Year ended December 31, 2013: | |||||||||||||||||
Deferred tax assets valuation allowance | $ | 138,910 | $ | 4,117 | $ | 17,999 | $ | 161,026 | |||||||||
Year ended December 31, 2012: | |||||||||||||||||
Deferred tax assets valuation allowance | $ | 124,244 | $ | 1,811 | $ | 12,855 | $ | 138,910 | |||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Basis of Consolidation Policy Additional Information (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Maximum [Member] | |
Basis of Consolidation [Abstract] | |
Ownership Interest To Use Equity Method | 50.00% |
Ownership Interest To Use Cost Method | 20.00% |
Minimum [Member] | |
Basis of Consolidation [Abstract] | |
Ownership Interest to be Held for Consolidation | 50.00% |
Noncontrolling Interests [Abstract] | |
Ownership Interest to be Held for Consolidation | 50.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies Property, Plant, and Equipment Policy Additional Information (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 30 years |
Minimum [Member] | Machinery and Equipment, Computers and Software, and Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 3 years |
Maximum [Member] | Machinery and Equipment, Computers and Software, and Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 10 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Revenue Recognition Policy Additional Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ||
Unearned revenue | $76.60 | $69.80 |
Deferred costs | $24.90 | $23.50 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies Stock-Based Compensation (Details) (Employee Stock [Member]) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 5.00% | 15.00% | 5.00% |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies Summary of Foreign currency losses, net of hedging additional details (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign Currency [Abstract] | |||
Foreign Currency Transaction Gain (Loss), Realized | $5.10 | $3.30 | $3.80 |
Earnings_Per_Share_and_Capital2
Earnings Per Share and Capital Structure Computation of Basic and Diluted Earnings per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income (loss) available to common shareholders | ($49,233) | $7,308 | $19,259 | ($254) | ($154,430) | ($7,348) | $12,399 | $2,570 | ($22,920) | ($146,809) | $108,275 |
Weighted average common shares outstanding - Basic | 39,184 | 39,281 | 39,625 | ||||||||
Dilutive effect of stock-based awards | 0 | 0 | 309 | ||||||||
Weighted average common shares outstanding - Diluted | 39,184 | 39,281 | 39,934 | ||||||||
Earnings (loss) per common share - Basic | ($1.25) | $0.19 | $0.49 | ($0.01) | ($3.93) | ($0.19) | $0.31 | $0.07 | ($0.58) | ($3.74) | $2.73 |
Earnings (loss) per common share - Diluted | ($1.25) | $0.19 | $0.49 | ($0.01) | ($3.93) | ($0.19) | $0.31 | $0.06 | ($0.58) | ($3.74) | $2.71 |
Earnings_Per_Share_and_Capital3
Earnings Per Share and Capital Structure Stock-based Awards (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock-based awards excluded from diluted EPS calculation (antidilutive) | 1.4 | 1.4 | 1.1 |
Certain_Balance_Sheet_Componen2
Certain Balance Sheet Components Accounts Receivable, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, Net (Line Items] | ||
Trade receivables (net of allowance of $6,195 and $8,368) | $312,302 | $328,240 |
Unbilled receivables | 36,087 | 28,469 |
Total accounts receivable, net | $348,389 | $356,709 |
Certain_Balance_Sheet_Componen3
Certain Balance Sheet Components Accounts Receivable, Net (Parenthetical) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accounts Receivable, Net (Line Items] | |||
Allowance | $6,195 | $8,368 | $7,372 |
Certain_Balance_Sheet_Componen4
Certain Balance Sheet Components Accounts Receivable, Net, Additional Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current retainage contract receivables [Member] | ||
Long term Retainage Contract Receivables [Line Items] | ||
Contract Receivable Retainage, Next Rolling Twelve Months | $4,700,000 | $3,200,000 |
Unbilled Contracts Receivable | 4,000,000 | 4,300,000 |
Long Term Retainage Contract Receivables [Member] | ||
Long term Retainage Contract Receivables [Line Items] | ||
Unbilled Receivables, Not Billable, Amount Expected to be Collected after Next Twelve Months | 4,300,000 | 4,700,000 |
Contract Receivable Retainage, Due after Next Rolling Twelve Months | $0 | $0 |
Certain_Balance_Sheet_Componen5
Certain Balance Sheet Components Summary of the Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Allowance for Doubtful Accounts Activity [Line Items] | ||
Beginning balance | $8,368 | $7,372 |
Provision for doubtful accounts, net | 308 | 1,740 |
Accounts written-off | -1,955 | -636 |
Effects of change in exchange rates | -526 | -108 |
Ending balance | $6,195 | $8,368 |
Certain_Balance_Sheet_Componen6
Certain Balance Sheet Components Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Inventory, Raw Materials, Net of Reserves | $90,557 | $102,596 |
Inventory, Work in Process, Net of Reserves | 8,991 | 13,770 |
Inventory, Finished Goods, Net of Reserves | 54,956 | 61,101 |
Total inventories | $154,504 | $177,467 |
Certain_Balance_Sheet_Componen7
Certain Balance Sheet Components Consigned Inventory (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Inventory, Gross [Abstract] | ||
Consigned Inventory | $2.50 | $6.40 |
Certain_Balance_Sheet_Componen8
Certain Balance Sheet Components Property, Plant, and Equipment, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | $287,448 | $309,525 |
Computers and Software, Gross | 100,212 | 99,654 |
Buildings, furniture, and improvements | 134,461 | 145,926 |
Land | 21,186 | 24,005 |
Construction in progress, including purchased equipment | 21,007 | 14,257 |
Total cost | 564,314 | 593,367 |
Accumulated depreciation | -356,525 | -346,547 |
Property, plant, and equipment, net | $207,789 | $246,820 |
Certain_Balance_Sheet_Componen9
Certain Balance Sheet Components Depreciation Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Depreciation expense [Line Items] | |||
Depreciation expense | $54,759 | $56,826 | $61,661 |
Intangible_Assets_Gross_Carryi
Intangible Assets Gross Carrying Amount and Accumulated Amortization (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $748,148 | $804,281 | |
Accumulated Amortization | -608,239 | -608,441 | |
Intangible assets, net | 139,909 | 195,840 | |
Net | 139,909 | 195,840 | |
Intangible Assets, Gross (Excluding Goodwill) | 748,148 | 804,281 | 802,540 |
Core-developed technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 405,434 | 428,890 | |
Accumulated Amortization | -359,500 | -356,017 | |
Net | 45,934 | 72,873 | |
Customer contracts and relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 262,930 | 291,185 | |
Accumulated Amortization | -172,755 | -173,952 | |
Net | 90,175 | 117,233 | |
Trademarks and trade names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 68,205 | 73,117 | |
Accumulated Amortization | -64,905 | -67,449 | |
Net | 3,300 | 5,668 | |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 11,579 | 11,089 | |
Accumulated Amortization | -11,079 | -11,023 | |
Net | $500 | $66 |
Intangible_Assets_Summary_of_I
Intangible Assets Summary of Intangible Asset Account Activity (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Beginning balance, intangible assets, gross | $804,281 | $802,540 |
Intangible assets acquired | 1,453 | -1,500 |
Effect of change in exchange rates | -57,586 | 3,241 |
Ending balance, intangible assets, gross | $748,148 | $804,281 |
Intangible_Assets_Amortization
Intangible Assets Amortization Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $43,704 | $42,019 | $47,810 |
Intangible_Assets_Estimated_Fu
Intangible Assets Estimated Future Annual Amortization Expense (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | $33,562 | |
2016 | 26,522 | |
2017 | 19,485 | |
2018 | 13,571 | |
2019 | 10,501 | |
Beyond 2019 | 36,268 | |
Total intangible assets subject to amortization | $139,909 | $195,840 |
Intangible_Assets_Intangible_A
Intangible Assets Intangible Assets Narrative (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | 1-May-12 |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $1,453 | ($1,500) | |
Finite-Lived Intangible Assets, Gross | 748,148 | 804,281 | |
Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 405,434 | 428,890 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 262,930 | 291,185 | |
Customer Relationship Associated with Error Adjustment - Balance Prior to Correction of Error [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 1,500 | ||
Adjustment of Intangible Customer Relationship Asset Acquired [Member] | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $1,500 |
Goodwill_Schedule_of_Goodwill_1
Goodwill Schedule of Goodwill Allocated to Reporting Segments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill [Line Items] | |||
Goodwill beginning balance | $548,578,000 | $701,016,000 | |
Goodwill, Other Changes | 3,958,000 | ||
Goodwill impairment | -977,000 | -173,249,000 | 0 |
Effect of change in exchange rates | -46,781,000 | 16,853,000 | |
Goodwill before impairment | 1,191,808,000 | 1,318,271,000 | 1,273,848,000 |
Accumulated impairment losses | -690,988,000 | -769,693,000 | -572,832,000 |
Goodwill ending balance | 500,820,000 | 548,578,000 | 701,016,000 |
Electricity Operating Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill beginning balance | 60,232,000 | 226,209,000 | |
Goodwill, Other Changes | 3,958,000 | ||
Goodwill impairment | -977,000 | -173,249,000 | |
Effect of change in exchange rates | -3,568,000 | 3,314,000 | |
Goodwill before impairment | 449,668,000 | 493,610,000 | 475,711,000 |
Accumulated impairment losses | -393,981,000 | -433,378,000 | -249,502,000 |
Goodwill ending balance | 55,687,000 | 60,232,000 | |
Gas Operating Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill beginning balance | 394,878,000 | 383,743,000 | |
Goodwill, Other Changes | 0 | ||
Goodwill impairment | 0 | 0 | |
Effect of change in exchange rates | -35,393,000 | 11,135,000 | |
Goodwill before impairment | 359,485,000 | 394,878,000 | 383,743,000 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill ending balance | 359,485,000 | 394,878,000 | |
Water Operating Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill beginning balance | 93,468,000 | 91,064,000 | |
Goodwill, Other Changes | 0 | ||
Goodwill impairment | 0 | 0 | |
Effect of change in exchange rates | -7,820,000 | 2,404,000 | |
Goodwill before impairment | 382,655,000 | 429,783,000 | 414,394,000 |
Accumulated impairment losses | -297,007,000 | -336,315,000 | -323,330,000 |
Goodwill ending balance | $85,648,000 | $93,468,000 |
Goodwill_Goodwill_Narrative_De
Goodwill Goodwill Narrative (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | 1-May-12 | |
Goodwill [Line Items] | |||||
Goodwill impairment | ($977,000) | ($173,249,000) | $0 | ||
Finite-Lived Intangible Assets, Gross | 748,148,000 | 804,281,000 | |||
Electricity Operating Segment [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | -977,000 | -173,249,000 | |||
Incremental Goodwill Impairment Expense Determined After Close of 2013 Accounting Records [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | -977,000 | ||||
Expected Loss Recognized Resulting from Inclusion of Certain Integration Costs not Originally Reflected in Acquisition Valuation Model [Member] | |||||
Goodwill [Line Items] | |||||
Loss on Contracts | 2,400,000 | ||||
Customer Relationship Associated with Error Adjustment - Balance Prior to Correction of Error [Member] | |||||
Goodwill [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $1,500,000 |
Debt_Schedule_of_Debt_Details
Debt Schedule of Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $323,969 | |
Current portion of debt | 30,000 | 26,250 |
Long-term debt | 293,969 | 352,500 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 323,969 | 378,750 |
Current portion of debt | 30,000 | 26,250 |
Long-term debt | 293,969 | 352,500 |
2011 Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 91,469 | 120,000 |
2011 Senior Secured Credit Facility [Member] | USD Denominated Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Loans Payable to Bank | $232,500 | $258,750 |
Debt_Schedule_of_LongTerm_Debt
Debt Schedule of Long-Term Debt Maturities (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | |
2015 | $30,000 |
2016 | 293,969 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Total minimum payments on debt | $323,969 |
Debt_Schedule_of_LongTerm_Debt1
Debt Schedule of Long-Term Debt Repayments (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Debt Instrument [Line Items] | ||||||
Repayments of Long-term Debt | $102,438,000 | $73,750,000 | $115,002,000 | |||
2011 Senior Secured Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Lines of Credit | 47,700,000 | 35,000,000 | 80,000,000 | |||
Repayments of Long-term Debt | 26,250,000 | 18,750,000 | 15,002,000 | |||
Secured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Long-term Debt | 102,438,000 | 73,750,000 | 115,002,000 | |||
Line of Credit [Member] | 2011 Senior Secured Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Long-term Debt | $76,188,000 | [1] | $55,000,000 | [1] | $100,000,000 | [1] |
[1] | We borrowed $47.7 million, $35.0 million and $80.0 million under the multicurrency revolving line of credit during 2014, 2013 and 2012, respectively. |
Debt_Schedule_of_Unamortized_P
Debt Schedule of Unamortized Prepaid Debt Fees (Details) (Secured Debt [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized prepaid debt fees | $2,298 | $3,810 |
Debt_Credit_Facility_Additiona
Debt Credit Facility Additional Information (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 05, 2011 | |
Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Collateral | All obligations under the 2011 credit facility are guaranteed by Itron, Inc. and material U.S. domestic subsidiaries and are secured by a pledge of substantially all of the assets of Itron, Inc. and material U.S. domestic subsidiaries, including a pledge of 100% of the capital stock of material U.S. domestic subsidiaries and up to 66% ofB the voting stock (100% of the non-voting stock) of their first-tier foreign subsidiaries. In addition, the obligations of any foreign subsidiary who is a foreign borrower, as defined by the 2011 credit facility, are guaranteed by the foreign subsidiary and by its direct and indirect foreign parents. | |||
2011 Senior Secured Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 660,000,000 | |||
Proceeds from Lines of Credit | 47,700,000 | 35,000,000 | 80,000,000 | |
Multicurrency revolving line of credit | 91,469,000 | 120,000,000 | ||
Letters of Credit Outstanding, Amount | 50,400,000 | |||
Line of credit facility, remaining borrowing capacity | 518,100,000 | |||
2011 Senior Secured Credit Facility [Member] | USD Denominated Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 300,000,000 | |||
Scheduled Quarterly Repayments September 2014 through June 2016 [Domain] | USD Denominated Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of Secured Debt | 7,500,000 | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | the LIBOR rate | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
Debt Instrument, Interest Rate at Period End | 1.42% | |||
EURIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | EURIBOR rate | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
Debt Instrument, Interest Rate at Period End | 1.27% | |||
Alternate base rate (1) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | the prime rate | |||
Alternate base rate (2) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | the Federal Reserve effective rate | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Alternate base rate (3) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | one month LIBOR | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Derivative_Financial_Instrumen2
Derivative Financial Instruments Derivative and Nonderivative Hedging Instrument Fair Value Disclosure (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Derivative Assets, at Fair Value | $75 | $0 |
Asset Derivatives [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | 182 | 41 |
Liability Derivatives [Abstract] | ||
Total liability derivatives | 1,553 | 2,176 |
Other Current Assets [Member] | ||
Asset Derivatives [Abstract] | ||
Foreign exchange forward contracts | 107 | 41 |
Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Derivative Assets, at Fair Value | 75 | 0 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Liability Derivatives [Abstract] | ||
Interest rate swap contracts | 1,317 | 1,557 |
Designated as Hedging Instrument [Member] | Other Long Term Obligations [Member] | ||
Liability Derivatives [Abstract] | ||
Interest rate swap contracts | 0 | 474 |
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Liability Derivatives [Abstract] | ||
Foreign exchange forward contracts | $236 | $145 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments Effect of Net Investment Hedge Nonderivative Financial Instrument on OCI (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($136,514) | ($21,722) | |
Net unrealized gain (loss) on derivative instruments, designated as cash flow hedges | -566 | 2 | -1,689 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | -1,054 | -431 | 0 |
Accumulated Net Gain (Loss) from Derivative and Nonderivative Instruments Designated as Hedging Instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($15,148) | ($15,636) | ($16,069) |
Derivative_Financial_Instrumen4
Derivative Financial Instruments Offsetting of Derivative Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $182 | $41 |
Derivative Asset, Fair Value, Gross Liabilities Not Offset | -182 | -40 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | $0 | $1 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments Offsetting of Derivative Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $1,553 | $2,176 |
Derivative Liability, Fair Value, Gross Assets Not Offset | -182 | -40 |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $1,371 | $2,136 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments Effect of Cash Flow Derivatives on the Balance Sheet and Income Statement, Before Tax (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Rate Swap Contracts [Abstract] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | ($915) | ($3) | ($2,725) |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -1,704 | -697 | 0 |
Interest Expense [Member] | |||
Interest Rate Swap Contracts [Abstract] | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -1,704 | 697 | 0 |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | $0 | $0 | $0 |
Derivative_Financial_Instrumen7
Derivative Financial Instruments Derivatives Not Designated as Hedging Relationships (Details) (Other Income (Expense) [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income (Expense) [Member] | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Foreign exchange forward contracts | ($5,248) | ($145) | ($422) |
Derivative_Financial_Instrumen8
Derivative Financial Instruments Derivative Financial Instruments Narrative (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net unrealized loss on hedging instruments | -136,514,000 | ($21,722,000) | ||
Long-term Debt | 323,969,000 | |||
Forward Contracts [Member] | ||||
Number of foreign exchange forward contracts entered into YTD | 517 | |||
Number of Counterparties [Member] | ||||
Number of foreign exchange forward contracts entered into YTD | Our derivative assets and liabilities consist of foreign exchange forward and interest rate swap contracts with eight counterparties at December 31, 2014 and seven counterparties at December 31, 2013. | |||
Interest Rate Swap [Member] | 2011 Credit Facility USD Term Loan Interest Rate Swaps [Member] | ||||
Derivative, Number of Instruments Held | 6 | |||
Pay fixed interest rate in interst rate swap | 1.00% | |||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 1,300,000 | |||
Derivative, Notional Amount | 200,000,000 | |||
Secured Debt [Member] | ||||
Long-term Debt | 323,969,000 | 378,750,000 | ||
Accumulated Other Comprehensive Income, Net Unrealized Gain (Loss) on Nonderivative Instruments [Member] | ||||
Net unrealized loss on hedging instruments | -14,380,000 | -14,380,000 | -14,380,000 | -14,380,000 |
Accumulated Other Comprehensive Income, Net Unrealized Gain (Loss) on Nonderivative Instruments [Member] | Net Investment Hedging [Member] | ||||
Net unrealized loss on hedging instruments | -14,400,000 | -14,400,000 | ||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | ||||
Long-term Debt | 292,500,000 | |||
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Minimum [Member] | ||||
Derivative, Notional Amount | 86,000 | |||
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Maximum [Member] | ||||
Derivative, Notional Amount | 20,700,000 |
Defined_Benefit_Pension_Plans_2
Defined Benefit Pension Plans Change in Benefit Obligation and Plan Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $3,559,000 | $4,205,000 | $2,700,000 |
Interest cost | 3,476,000 | 3,355,000 | 3,625,000 |
Fair value of plan assets at January 1, | 11,680,000 | ||
Fair value of plan assets at December 31, | 10,761,000 | 11,680,000 | |
Ending balance at fair value (net pension plan benefit liability) | 105,417,000 | 90,982,000 | |
Defined Benefit Obligations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at January 1, | 102,662,000 | 101,766,000 | |
Service cost | 3,559,000 | 4,205,000 | |
Interest cost | 3,476,000 | 3,355,000 | |
Actuarial (gain) loss | 25,838,000 | -6,160,000 | |
Benefits paid | -5,519,000 | -5,369,000 | |
Foreign currency exchange rate changes | -13,921,000 | 2,698,000 | |
Other | 83,000 | 2,167,000 | |
Benefit obligation at December 31, | 116,178,000 | 102,662,000 | |
Benefits paid | -5,519,000 | -5,369,000 | |
Fair Value of Plan Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits paid | -433,000 | -537,000 | |
Fair value of plan assets at January 1, | 11,680,000 | 8,561,000 | |
Actual return on plan assets | 494,000 | 119,000 | |
Company contributions | 375,000 | 436,000 | |
Benefits paid | -433,000 | -537,000 | |
Foreign currency exchange rate changes | -1,355,000 | -267,000 | |
Defined Benefit Plan, Other Changes, Plan Assets | 0 | 3,368,000 | |
Fair value of plan assets at December 31, | 10,761,000 | 11,680,000 | |
Ending balance at fair value (net pension plan benefit liability) | $105,417,000 | $90,982,000 |
Defined_Benefit_Pension_Plans_3
Defined Benefit Pension Plans Schedule of Amounts Recognized in the Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Amounts Recognized in the Consolidated Balance Sheets [Line Items] | ||
Plan Assets in Other Long Term Assets | ($567) | ($1,426) |
Current Portion of Pension Plan Liability in Wages and Benefits Payable | 4,552 | 3,721 |
Long-term portion of pension plan liability | 101,432 | 88,687 |
Net Penison Plan Benefit Liability | ($105,417) | ($90,982) |
Defined_Benefit_Pension_Plans_4
Defined Benefit Pension Plans Schedule of Net Periodic Benefit Cost Not yet Recognized (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $38,462 | $13,262 |
Net prior service cost | 1,203 | 1,133 |
Amount included in accumulated other comprehensive income | $39,665 | $14,395 |
Defined_Benefit_Pension_Plans_5
Defined Benefit Pension Plans Schedule of Amounts Recognized in Other Comprehensive Income (loss), pre-tax (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (gain) loss | $25,838 | ($5,881) | $24,492 |
Settlement/ curtailment loss | -55 | -325 | -13 |
Plan asset (gain) loss | 129 | 516 | 108 |
Amortization of net actuarial gain (loss) | -572 | -926 | -161 |
Amortization of prior service cost | -138 | -70 | -68 |
Other | 68 | -658 | 0 |
Other comprehensive (income) loss | $25,270 | ($7,344) | $24,358 |
Defined_Benefit_Pension_Plans_6
Defined Benefit Pension Plans Schedule of Net Periodic Pension Benefit Costs (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $3,559 | $4,205 | $2,700 |
Interest cost | 3,476 | 3,355 | 3,625 |
Expected Return on Plan Assets | -619 | -635 | -331 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 138 | 70 | 68 |
Amortization of actuarial net (gains) loss | 572 | 926 | 161 |
Defined Benefit Plan, Settlement and Other Benefit Costs | 55 | -493 | 97 |
Net Periodic Benefit Cost | $7,181 | $7,428 | $6,320 |
Defined_Benefit_Pension_Plans_7
Defined Benefit Pension Plans Schedule of Significant Actuarial Weighted Average Assumptions Used in Determining the Benefit Obligation and Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.36% | 3.76% | 3.36% |
Expected annual rate of compensation increase | 3.37% | 3.33% | 3.41% |
Discount rate | 3.76% | 3.36% | 5.51% |
Expected rate of return on plan assets | 5.40% | 3.63% | 4.08% |
Expected annual rate of compensation increase | 3.33% | 3.41% | 3.38% |
Defined_Benefit_Pension_Plans_8
Defined Benefit Pension Plans Schedule of Accumulated Benefit Obligation in Excess of the Fair Value of Plan Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $114,150 | $99,694 |
Accumulated benefit obligation | 102,146 | 90,803 |
Fair value of plan assets | $8,166 | $7,286 |
Defined_Benefit_Pension_Plans_9
Defined Benefit Pension Plans Fair Values of Plan Investments by Asset Category (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $10,761 | $11,680 | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 726 | 846 | |
Guaranteed Insurance Benefit Type [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 7,440 | 8,260 | |
Securities (Assets) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 2,595 | 2,574 | |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 726 | 846 | |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 726 | 846 | |
Fair Value, Inputs, Level 1 [Member] | Guaranteed Insurance Benefit Type [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Securities (Assets) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 10,035 | 10,834 | 7,658 |
Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Guaranteed Insurance Benefit Type [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 7,440 | 8,260 | 7,658 |
Fair Value, Inputs, Level 3 [Member] | Securities (Assets) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $2,595 | $2,574 | $0 |
Recovered_Sheet1
Defined Benefit Pension Plans Expected Future Annual Benefit Payments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $4,603 |
2016 | 3,285 |
2017 | 3,754 |
2018 | 3,960 |
2019 | 4,122 |
2020 - 2024 | $27,180 |
Recovered_Sheet2
Defined Benefit Pension Plans Defined Benefit Pension Plan Employer Contributions Additional Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated Future Employer Contributions in Next Fiscal Year | $426,000 | |
Fair Value of Plan Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Contributions by Employer | $375,000 | $436,000 |
Defined Benefit Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Change in Discount Rate | 140 basis point |
Recovered_Sheet3
Defined Benefit Pension Plans Accumulated Benefit Obligation Additional Details (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | $2.20 | |
Defined Benefit Plan, Accumulated Benefit Obligation | $104.10 | $93.30 |
Recovered_Sheet4
Defined Benefit Pension Plans Significant Actuarial Weighted Assumptions (Discount Rate) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.36% | 3.76% | 3.36% |
Percentage of Benefit Plans Denominated in Euro [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of benefit plans denominated in euro | 94% | ||
Euro Denominated Benefit Plans [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate Support, Methodology and Source Data | we use two discount rates, with consideration of the duration of the plans, using a hypothetical yield curve developed from euro-denominated AA-rated corporate bond issues, partially weighted for market value, with minimum amounts outstanding of €500 million for bonds with less than 10 years to maturity and €50 million for bonds with 10 or more years to maturity, and excluding the highest and lowest yielding 10% of bonds within each maturity group. | ||
Shorter duration euro denominated defined benefit plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.50% | ||
Longer duration euro denominated defined benefit plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.00% | ||
Defined Benefit Obligations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Change in Discount Rate | 140 basis point | ||
Actuarial (gain) loss | 25,838 | ($6,160) |
Recovered_Sheet5
Defined Benefit Pension Plans Level 3 Plan Asset Rollforward (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $10,761 | $11,680 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 10,035 | 10,834 | 7,658 |
Defined Benefit Plan, Transfers Between Measurement Levels | 172 | 0 | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | -1,343 | -87 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | -81 | 3,155 | |
Defined Benefit Plan, Actual Return on Plan Assets | 453 | 108 | |
Securities (Assets) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 2,595 | 2,574 | |
Securities (Assets) [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 2,595 | 2,574 | 0 |
Defined Benefit Plan, Transfers Between Measurement Levels | 172 | 0 | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | -365 | -406 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | -106 | 3,050 | |
Defined Benefit Plan, Actual Return on Plan Assets | 320 | -70 | |
Guaranteed Insurance Benefit Type [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 7,440 | 8,260 | |
Guaranteed Insurance Benefit Type [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 7,440 | 8,260 | 7,658 |
Defined Benefit Plan, Transfers Between Measurement Levels | 0 | 0 | |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | -978 | 319 | |
Defined Benefit Plan, Purchases, Sales, and Settlements | 25 | 105 | |
Defined Benefit Plan, Actual Return on Plan Assets | $133 | $178 |
StockBased_Compensation_StockB1
Stock-Based Compensation Stock-Based Compensation Expense and Related Tax Benefit (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options | $2,333 | $2,074 | $1,547 |
Restricted stock units | 14,591 | 15,475 | 16,583 |
Unrestricted stock awards | 936 | 811 | 769 |
ESPP | 0 | 490 | 613 |
Total stock-based compensation | 17,860 | 18,850 | 19,512 |
Related tax benefit | $4,994 | $5,152 | $5,377 |
StockBased_Compensation_Stock_
Stock-Based Compensation Stock Option Black Scholes Option Pricing Model Assumptions (Details) (Employee Stock Option [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 39.30% | 38.10% | 42.10% |
Risk-free interest rate | 1.70% | 1.00% | 0.80% |
Expected term (years) | 5 years 6 months 2 days | 5 years 6 months | 5 years 1 month |
StockBased_Compensation_Stock_1
Stock-Based Compensation Stock Option Summary (Details) (Employee Stock Option [Member], USD $) | 12 Months Ended | |||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Employee Stock Option [Member] | ||||||||
[Line Items] | ||||||||
Outstanding, beginning balance, Number | 1,180 | 1,137 | 1,109 | |||||
Outstanding, beginning balance, Weighted Average Exercise Price Per Share | $54.79 | $54.06 | $55.97 | |||||
Outstanding, beginning balance, Weighted Average Remaining Contractual Term | 4 years 4 months 15 days | 4 years 7 months 22 days | 4 years 9 months 23 days | 4 years 6 months 2 days | ||||
Outstanding, beginning balance, Aggregate Intrinsic Value | $1,300 | [1] | $3,815 | [1] | $2,323 | [1] | ||
Granted, Number | 160 | 129 | 196 | |||||
Granted, Weighted Average Exercise Price Per Share | $35.65 | $42.76 | $43.27 | |||||
Granted, Weighted Average Grant Date Fair Value | $13.65 | $15.44 | $16.51 | |||||
Exercised, Number | -67 | -74 | -54 | |||||
Exercised, Weighted Average Exercise Price Per Share | $28.03 | $23.87 | $21.91 | |||||
Exercised, Aggregate Intrinsic Value | 826 | [1] | 1,377 | [1] | 1,078 | [1] | ||
Forfeited, Number | -7 | |||||||
Forfeited, Weighted Average Exercise Price Per Share | $44.06 | |||||||
Expired, Number | -143 | -12 | -114 | |||||
Expired, Weighted Average Exercise Price Per Share | $68.97 | $49.04 | $69.37 | |||||
Outstanding, ending balance, Number | 1,123 | 1,180 | 1,137 | 1,109 | ||||
Outstanding, ending balance, Weighted Average Exercise Price Per Share | $51.90 | $54.79 | $54.06 | $55.97 | ||||
Outstanding, ending balance, Weighted Average Remaining Contractual Term | 4 years 4 months 15 days | 4 years 7 months 22 days | 4 years 9 months 23 days | 4 years 6 months 2 days | ||||
Outstanding, ending balance, Aggregate Intrinsic Value | 1,676 | [1] | 1,300 | [1] | 3,815 | [1] | 2,323 | [1] |
Exercisable, Number | 819 | |||||||
Exercisable, Weighted Average Exercise Price Per Share | $56.65 | |||||||
Exercisable, Weighted Average Remaining Contractual Term | 3 years 2 months 10 days | |||||||
Exercisable, Aggregate Intrinsic Value | 569 | [1] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Number | 296 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Outstanding Weighted Average Exercise Price | $39.12 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Weighted Average Remaining Contractual Term | 7 years 8 months 15 days | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Aggregate Intrinsic Value | $1,074 | [1] | ||||||
[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 Itronbs 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. |
StockBased_Compensation_LongTe
Stock-Based Compensation Long-Term Performance Restricted Stock Unit Award Monte Carlo Pricing Model Assumptions (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average fair value | $35.74 | [1] | $42.51 | $47.21 |
Long Term Performance Restricted Stock Award [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 0.00% | 0.00% | ||
Expected volatility | 32.30% | 39.10% | ||
Risk-free interest rate | 0.40% | 0.30% | ||
Expected term (years) | 2 years 0 months 10 days | 2 years 6 months 10 days | ||
Weighted-average fair value | $35.15 | $45.03 | ||
[1] | Restricted stock units include 14,433 shares for the 2-year award under the 2013 Performance Award Agreement, which are eligible for distribution at December 31, 2014. |
StockBased_Compensation_Restri
Stock-Based Compensation Restricted Stock Units Summary (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
[Line Items] | ||||||
Outstanding, beginning balance, Number | 658,000 | 774,000 | 625,000 | |||
Granted, Number | 350,000 | [1] | 255,000 | 464,000 | ||
Granted, Weighted Average Grant Date Fair Value | $35.74 | [1] | $42.51 | $47.21 | ||
Forfeited, Number | -35,000 | -40,000 | -40,000 | |||
Outstanding, ending balance, Number | 682,000 | 658,000 | 774,000 | |||
Long Term Performance Restricted Stock Award [Member] | ||||||
[Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 14,433 | |||||
Vested and Released [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
[Line Items] | ||||||
Issued, Number | -291,000 | -331,000 | -275,000 | |||
Released, Aggregate Intrinsic Value | $14,402 | [2] | $17,983 | [2] | $16,855 | [2] |
Vested but Not Released [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
[Line Items] | ||||||
Issued, Number | -19,000 | |||||
Vested but not released, Aggregate Intrinsic Value | 821 | [2] | ||||
Expected to Vest [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
[Line Items] | ||||||
Outstanding, ending balance, Number | 571,000 | |||||
Expected to vest, Aggregate Intrinsic Value | $24,130 | [2] | ||||
[1] | Restricted stock units include 14,433 shares for the 2-year award under the 2013 Performance Award Agreement, which are eligible for distribution at December 31, 2014. | |||||
[2] | 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. |
StockBased_Compensation_Unrest
Stock-Based Compensation Unrestricted Stock Awards Summary (Details) (Unrestricted Stock Award [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Unrestricted Stock Award [Member] | |||
[Line Items] | |||
Shares of unrestricted stock granted | 24 | 18 | 19 |
Weighted average grant date fair value per share | $39.06 | $44.12 | $41.43 |
StockBased_Compensation_Employ
Stock-Based Compensation Employee Stock Purchase Plan (Details) (Employee Stock [Member], USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Employee Stock [Member] | ||||||
[Line Items] | ||||||
Shares of stock sold to employees(1) | 61 | [1] | 94 | [1] | 101 | [1] |
Weighted average fair value per ESPP award(2) | $0 | [2] | $6.61 | [2] | $6.29 | [2] |
[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 periods during the years ended DecemberB 31. Effective October 1, 2013, the ESPP is no longer compensatory and therefore the 2013 weighted average fair value per award is for the nine months ended September 30, 2013. |
StockBased_Compensation_StockB2
Stock-Based Compensation Stock-Based Compensation Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2014 |
Employee Stock Option [Member] | |||
[Line Items] | |||
Award vesting rights | Options generally become exercisable in three equal annual installments beginning one year from the date of grant | ||
Unrecognized compensation expense | 2.8 | 2.8 | |
Unrecognized compensation expense, Expected weighted average period for recognition | 1 year 7 months | ||
Stock Options Expiration Period | 10 years | ||
Restricted Stock Units (RSUs) [Member] | |||
[Line Items] | |||
Unrecognized compensation expense | 14.5 | 14.5 | |
Unrecognized compensation expense, Expected weighted average period for recognition | 1 year 8 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Long Term Performance Restricted Stock Award [Member] | |||
[Line Items] | |||
Restricted Awards Eligible For Vesting | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Condition Vesting Range, Lower Range Limit | 0.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Condition Vesting Range, Upper Range Limit | 160.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Market Condition Multiplier, Lower Range Limit | 75.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Market Condition Multiplier, Upper Range Limit | 125.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Possible Total Percentage of Shares Vested, Lower Range Limit | 0.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Possible Total Percentage of Shares Vested, Upper Range Limit | 200.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 14,433 | ||
Employee Stock [Member] | |||
[Line Items] | |||
Number of shares available for future grant under the Stock Incentive Plan | 445,000 | 445,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 5.00% | 15.00% | 5.00% |
ESPP, maximum percentage of employee salary eligible for participation | 10.00% | 10.00% | |
Stock Incentive Plan [Member] | |||
[Line Items] | |||
Number of shares authorized for issuance under the Stock Incentive Plan | 7,473,956 | 7,473,956 | |
Number of shares available for future grant under the Stock Incentive Plan | 3,680,607 | 3,680,607 | |
Share-based Compensation Arrangement by Share-based Payment Award, Description | The Stock Incentive Plan shares are subject to a fungible share provision such that, with respect to grants made after December 31, 2009, the authorized share reserve is reduced by (i) one share for every one share subject to a stock option or share appreciation right granted under the Plan and (ii) 1.7 shares for every one share of common stock that was subject to an award other than an option or stock appreciation right. |
Defined_Contribution_Bonus_and2
Defined Contribution Bonus and Profit Sharing Plans Schedule of Defined Contribution Plans Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plans expense | $7,097 | $7,392 | $7,551 |
Defined_Contribution_Bonus_and3
Defined Contribution Bonus and Profit Sharing Plans Schedule of Bonus and Profit Sharing Plans Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Bonus and Profit Sharing Plans and Awards Expense | $37,850 | $15,745 | $25,297 |
Defined_Contribution_Bonus_and4
Defined Contribution Bonus and Profit Sharing Plans Defined Contribution, Bonus, and Profit Sharing Narrative (Details) (Employer Match Percentage [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Employer Match Percentage [Member] | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Percentage of employer match into employee savings plan. | 50.00% |
Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% |
Income_Taxes_Schedule_of_Incom
Income Taxes Schedule of Income Tax Provision (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $17,248 | $145 | $11,935 |
State and local | 730 | 1,089 | 1,387 |
Foreign | 20,205 | 21,860 | 19,448 |
Total current | 38,183 | 23,094 | 32,770 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | -78,901 | -16,413 | 12,195 |
State and local | -682 | -2,472 | 468 |
Foreign | -52,610 | -25,872 | -32,293 |
Total deferred | -132,193 | -44,757 | -19,630 |
Change in valuation allowance | 100,651 | 17,999 | 12,855 |
Total provision (benefit) for income taxes | $6,641 | ($3,664) | $25,995 |
Income_Taxes_Schedule_of_Incom1
Income Taxes Schedule of Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income (loss) before income taxes | ||||||
Domestic | $92,933 | $19,016 | $167,299 | |||
Foreign | -107,842 | -167,270 | -31,080 | |||
Income (loss) before income taxes | -14,909 | -148,254 | 136,219 | |||
Expected federal income tax provision (benefit) | -5,218 | -51,889 | 47,677 | |||
Goodwill impairment | 119 | 49,730 | -1,905 | |||
Change in valuation allowance | 100,651 | 17,999 | 12,855 | |||
Stock-based compensation | 1,255 | 1,598 | 1,787 | |||
Foreign earnings (1) | -30,417 | [1] | -15,655 | [1] | -36,536 | [1] |
Tax credits | -91,148 | -10,352 | -2,174 | |||
Uncertain tax positions, including interest and penalties | 974 | 1,360 | -2,740 | |||
Change in tax rates | -20 | 1,442 | 174 | |||
State income tax provision (benefit), net of federal effect | -984 | -2,291 | 1,242 | |||
U.S. tax provision on foreign earnings | 31,309 | -245 | 2,370 | |||
Domestic production activities deduction | -2,312 | -146 | -2,612 | |||
Local foreign taxes | 2,295 | 3,212 | 3,635 | |||
Other, net | 137 | 1,573 | 2,222 | |||
Total provision (benefit) for income taxes | $6,641 | ($3,664) | $25,995 | |||
[1] | (1) Foreign earnings for all jurisdictions are classified as a single reconciling item to be consistent with the current year presentation. |
Income_Taxes_Schedule_of_Defer
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | $75,400,000 | ||
Tax Credit Carryforward, Valuation Allowance | 58,500,000 | ||
Deferred tax assets | |||
Loss carryforwards(1) | 188,607,000 | [1] | 174,360,000 |
Tax Credit Carryforward, Amount | 81,903,000 | [2] | 16,073,000 |
Accrued expenses | 54,393,000 | 40,593,000 | |
Depreciation and amortization | 19,111,000 | 16,770,000 | |
Warranty reserves | 19,141,000 | 16,704,000 | |
Pension plan benefits expense | 19,679,000 | 13,464,000 | |
Equity compensation | 10,039,000 | 9,908,000 | |
Inventory valuation | 4,420,000 | 2,942,000 | |
Other deferred tax assets, net | 8,968,000 | 9,858,000 | |
Total deferred tax assets | 406,261,000 | 300,672,000 | |
Valuation allowance | -256,619,000 | -161,026,000 | |
Total deferred tax assets, net of valuation allowance | 149,642,000 | 139,646,000 | |
Deferred tax liabilities | |||
Depreciation and amortization | 37,061,000 | 50,606,000 | |
Tax effect of accumulated translation | -568,000 | -1,551,000 | |
Other deferred tax liabilities, net | -2,299,000 | -2,883,000 | |
Total deferred tax liabilities | 39,928,000 | 55,040,000 | |
Net deferred tax assets | 109,714,000 | 84,606,000 | |
Deferred Tax Assets, Tax Credit Carryforwards, General Business | 18,200,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 2,500,000 | ||
U.S. federal | |||
Deferred tax assets | |||
Loss carryforwards(1) | 19,800,000 | [1] | |
LUXEMBOURG | |||
Deferred tax assets | |||
Loss carryforwards(1) | $441,300,000 | [1] | |
[1] | For tax return purposes at DecemberB 31, 2014, we had U.S. federal loss carryforwards of $19.8 million that expire during the years 2020 and 2021. At December 31, 2014, we have net operating loss carryforwards in Luxembourg of $441.3 million that can be carried forward indefinitely, offset by a full valuation allowance. The remaining portion of the loss carryforwards are composed primarily of losses in various other foreign jurisdictions. The majority of these losses can be carried forward indefinitely. At DecemberB 31, 2014, there was a valuation allowance of $256.6 million primarily associated with foreign loss carryforwards and foreign tax credit carryforwards (discussed below). | ||
[2] | For tax return purposes at December 31, 2014, we had: (1) U.S. general business credits of $18.2 million, which begin to expire in 2022; (2) U.S. alternative minimum tax credits of $2.5 million that can be carried forward indefinitely; and (3) U.S. foreign tax credits of $75.4 million, which begin to expire in 2019. At December 31, 2014, there was a valuation allowance of $58.5 million associated with foreign tax credit carryforward. |
Income_Taxes_Unrecognized_Tax_
Income Taxes Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $28,615 | $26,433 | $28,482 |
Gross increase to positions in prior years | 2,749 | 2,154 | 299 |
Gross decrease to positions in prior years | -1,641 | -536 | -51 |
Gross increases to current period tax positions | 3,008 | 1,670 | 3,347 |
Audit settlements | 0 | 0 | -27 |
Decrease related to lapsing of statute of limitations | -1,715 | -817 | -5,769 |
Effect of change in exchange rates | -2,870 | -289 | 152 |
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate | 26,980 | 27,694 | 25,852 |
Net interest and penalties expense (benefit) | -76 | -898 | -414 |
Accrued interest | 1,755 | 2,078 | |
Accrued penalties | 2,671 | 3,075 | |
Unrecognized tax benefits | $28,146 | $28,615 | $26,433 |
Income_Taxes_Income_Tax_Examin
Income Taxes Income Tax Examination by Jurisdiction (Details) | 12 Months Ended |
Dec. 31, 2014 | |
U.S. federal | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2000 |
FRANCE | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2010 |
GERMANY | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2008 |
BRAZIL | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2009 |
UNITED KINGDOM | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2012 |
ITALY | |
Income Tax Examination [Line Items] | |
Earliest year subject to examination by major tax jurisdiction | 2008 |
Income_Taxes_Narrative_Details
Income Taxes Narrative (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |
Effective Income Tax Rate Reconciliation, Percent | 44.50% | |
Deferred Tax Assets, Valuation Allowance | $256,619,000 | $161,026,000 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 2,500,000 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 75,400,000 | |
Deferred Tax Assets, Tax Credit Carryforwards, General Business | 18,200,000 | |
Excess tax benefits from employee stock plan exercises | 55,200,000 | |
Tax effect of excess benefits from employee stock plan exercises, which will increase our common stock when it reduces our cash taxes payable, and which is not recognized in our deferred tax assets | 20,400,000 | |
Undistributed Earnings of Foreign Subsidiaries and Foreign Corporate Joint Ventures [Member] | ||
Undistributed Earnings of Foreign Subsidiaries | $31,400,000 | $22,500,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies Rental Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term Purchase Commitment [Line Items] | |||
Rental expense | $19,178 | $18,662 | $17,877 |
Commitments_and_Contingencies_3
Commitments and Contingencies Future Minimum Lease Payment Schedule (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Long-term Purchase Commitment [Line Items] | |
2015 | $12,142 |
2016 | 8,564 |
2017 | 7,099 |
2018 | 6,630 |
2019 | 4,580 |
Beyond 2019 | 1,721 |
Future minimum lease payments | $40,736 |
Commitments_and_Contingencies_4
Commitments and Contingencies Available Lines of Credit, Outstanding Standby Letter of Credits, and Bonds (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Multicurrency revolving line of credit | $660,000 | [1] | $660,000 | [1] |
Long-term borrowings | -91,469 | [1] | -120,000 | [1] |
Standby LOCs issued and outstanding | -50,399 | [1] | -49,491 | [1] |
Net available for additional borrowings and LOCs | 518,132 | [1] | 490,509 | [1] |
Unsecured Multicurrency Revolving Lines of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Multicurrency revolving line of credit | 106,855 | 115,269 | ||
Standby LOCs issued and outstanding | -28,636 | -31,714 | ||
Short-term borrowings(2) | -4,282 | [2] | -4,252 | [2] |
Net available for additional borrowings and LOCs | 73,937 | 79,303 | ||
Surety Bond [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Unsecured surety bonds in force | $116,306 | $186,446 | ||
[1] | Refer to Note 6 for details regarding our secured credit facilities. | |||
[2] | Short-term borrowings are included in bOther current liabilitiesb on the Consolidated Balance Sheets. |
Commitments_and_Contingencies_5
Commitments and Contingencies Warranty Account Activity (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
WarrantiesActivity [Line Items] | ||
Beginning balance | $45,146 | $53,605 |
New product warranties | 6,441 | 5,561 |
Other changes/adjustments to warranties | 3,729 | 10,343 |
Claims activity | -16,568 | -23,593 |
Effect of change in exchange rates | -2,282 | -770 |
Ending balance | 36,466 | 45,146 |
Less: current portion of warranty | 21,063 | 21,048 |
Long-term warranty | $15,403 | $24,098 |
Commitments_and_Contingencies_6
Commitments and Contingencies Warranty Expense (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Warranty charge | $4,000,000 | ||
Warranty Expense | 10,170,000 | 15,904,000 | 13,186,000 |
Product Warranty Expense, Change | $5,700,000 | $2,700,000 |
Commitments_and_Contingencies_7
Commitments and Contingencies Extended Warranty (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Ending balance | $76,600 | $69,800 |
Less: current portion of unearned revenue for extended warranty | 43,436 | 37,163 |
Extended Warranty [Member] | ||
Beginning balance | 33,528 | 31,960 |
Unearned revenue for new extended warranties | 3,529 | 4,039 |
Unearned revenue recognized | -2,655 | -2,210 |
Effect of change in exchange rates | -264 | -261 |
Ending balance | 34,138 | 33,528 |
Less: current portion of unearned revenue for extended warranty | 2,759 | 2,385 |
Long-term unearned revenue for extended warranty within Other long-term obligations | $31,379 | $31,143 |
Commitments_and_Contingencies_8
Commitments and Contingencies Health Benefit Plan Costs (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Plan costs | $23,206 | $22,324 | $26,755 |
Commitments_and_Contingencies_9
Commitments and Contingencies Incurred But Not Reported Health Benefit Cost Accrual (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
IBNR accrual | $1,924 | $2,206 |
Recovered_Sheet6
Commitments and Contingencies Commitments and Contingencies Narrative (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 2011 |
Product Warranty Expense, Change | $5.70 | $2.70 | ||
Warranty charge | 4 | |||
Litigation Settlement, Amount | $14.70 | |||
Itron Sistemas e Technologia Ltda. Employment Cases [Member] | ||||
Loss Contingency, Number of Plaintiffs | 300 | |||
Itron Sistemas e Technologia Ltda. Employment Cases [Member] | Employees of Previous Service Provider Hired Upon Agreement to Provide Installation and Maintenance Services to a Customer [Member] | ||||
Entity Number of Employees | 800 | |||
Itron Sistemas e Technologia Ltda. Employment Cases [Member] | Employees Terminated Upon the Termination of Installation and Maintenance Services Contract with Customer [Member] | ||||
Entity Number of Employees | 870 |
Restructuring_Restructuring_Ex
Restructuring Restructuring Expected Costs, Cost Recognized, and Remaining Costs to be Recognized - 2014 Projects (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $50,857 | $35,497 | $1,665 |
Employee severance costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 41,952 | ||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 5,220 | ||
Other restructuring costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 3,685 | ||
2014 Project [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 66,653 | ||
Restructuring Charges | 55,800 | ||
Restructuring and Related Cost, Expected Cost Remaining | 10,853 | ||
2014 Project [Member] | Electricity Operating Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 39,730 | ||
Restructuring Charges | 29,660 | ||
Restructuring and Related Cost, Expected Cost Remaining | 10,070 | ||
2014 Project [Member] | Gas Operating Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 12,455 | ||
Restructuring Charges | 12,185 | ||
Restructuring and Related Cost, Expected Cost Remaining | 270 | ||
2014 Project [Member] | Water Operating Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 1,145 | ||
Restructuring Charges | 1,106 | ||
Restructuring and Related Cost, Expected Cost Remaining | 39 | ||
2014 Project [Member] | Corporate, Non-Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 13,323 | ||
Restructuring Charges | 12,849 | ||
Restructuring and Related Cost, Expected Cost Remaining | 474 | ||
2014 Project [Member] | Employee severance costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 47,447 | ||
Restructuring Charges | 47,447 | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
2014 Project [Member] | Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 7,952 | ||
Restructuring Charges | 7,952 | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
2014 Project [Member] | Other restructuring costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 11,254 | ||
Restructuring Charges | 401 | ||
Restructuring and Related Cost, Expected Cost Remaining | $10,853 |
Restructuring_Restructuring_Ex1
Restructuring Restructuring Expected Costs, Costs Recognized, and Remaining Costs to be Recognized - 2013 Project (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $50,857 | $35,497 | $1,665 |
Employee severance costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 41,952 | ||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 5,220 | ||
Other restructuring costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 3,685 | ||
2013 Project [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 26,156 | ||
Restructuring and Related Cost, Cost Incurred to Date | 31,099 | ||
Restructuring Charges | -4,943 | 31,100 | |
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
2013 Project [Member] | Employee severance costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 23,691 | ||
Restructuring and Related Cost, Cost Incurred to Date | 29,186 | ||
Restructuring Charges | -5,495 | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
2013 Project [Member] | Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | -1,500 | ||
Restructuring and Related Cost, Cost Incurred to Date | 1,232 | ||
Restructuring Charges | -2,732 | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
2013 Project [Member] | Other restructuring costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 3,965 | ||
Restructuring and Related Cost, Cost Incurred to Date | 681 | ||
Restructuring Charges | 3,284 | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
2013 Project [Member] | Electricity Operating Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 15,512 | ||
Restructuring and Related Cost, Cost Incurred to Date | 24,056 | ||
Restructuring Charges | -8,544 | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
2013 Project [Member] | Gas Operating Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 1,375 | ||
Restructuring and Related Cost, Cost Incurred to Date | 4,369 | ||
Restructuring Charges | -2,994 | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
2013 Project [Member] | Water Operating Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 3,130 | ||
Restructuring and Related Cost, Cost Incurred to Date | 1,957 | ||
Restructuring Charges | 1,173 | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | ||
2013 Project [Member] | Corporate, Non-Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 6,139 | ||
Restructuring and Related Cost, Cost Incurred to Date | 717 | ||
Restructuring Charges | 5,422 | ||
Restructuring and Related Cost, Expected Cost Remaining | $0 |
Restructuring_Restructuring_Re
Restructuring Restructuring Related Balance Sheet Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | $36,341 | ||
Costs incurred and charged to expense | 50,857 | 35,497 | 1,665 |
Cash payments | -16,313 | ||
Non-cash items | 5,220 | ||
Effect of change in exchange rates | -2,806 | ||
Restructuring Reserve - Ending Balance | 62,859 | 36,341 | |
Employee severance costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | 32,709 | ||
Costs incurred and charged to expense | 41,952 | ||
Cash payments | -12,732 | ||
Non-cash items | 0 | ||
Effect of change in exchange rates | -2,596 | ||
Restructuring Reserve - Ending Balance | 59,333 | ||
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | 0 | ||
Costs incurred and charged to expense | 5,220 | ||
Cash payments | 0 | ||
Non-cash items | 5,220 | ||
Effect of change in exchange rates | 0 | ||
Restructuring Reserve - Ending Balance | 0 | ||
Other restructuring costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | 3,632 | ||
Costs incurred and charged to expense | 3,685 | ||
Cash payments | -3,581 | ||
Non-cash items | 0 | ||
Effect of change in exchange rates | -210 | ||
Restructuring Reserve - Ending Balance | $3,526 |
Restructuring_LongLived_Assets
Restructuring Long-Lived Assets Held for sale, at fair value (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Disposal Group, Including Discontinued Operation, Long Lived Assets | $1,930 | $0 |
Impairment of Long-Lived Assets Held-for-use | 7,952 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Long-lived assets held for sale (fair value) | $1,930 | $0 |
Restructuring_Restructuring_Ad
Restructuring Restructuring Additional Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred and charged to expense | $50,857,000 | $35,497,000 | $1,665,000 |
Restructuring Reserve, Current | 49,100,000 | 30,300,000 | |
Restructuring Reserve, Noncurrent | 13,800,000 | 6,000,000 | |
Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred and charged to expense | 5,220,000 | ||
2013 Project [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred and charged to expense | -4,943,000 | 31,100,000 | |
2013 Project [Member] | Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred and charged to expense | -2,732,000 | ||
2014 Project [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred and charged to expense | 55,800,000 | ||
2014 Project [Member] | Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred and charged to expense | 7,952,000 | ||
Land, Buildings and Improvements [Member] | 2014 Project [Member] | Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred and charged to expense | 3,000,000 | ||
Machinery and Equipment [Member] | 2014 Project [Member] | Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred and charged to expense | 4,600,000 | ||
Property, Plant and Equipment, Other Types [Member] | 2014 Project [Member] | Asset Impairment and Net (Gain) Loss on Sale or Disposal [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred and charged to expense | $400,000 |
Shareholders_Equity_Share_Repu
Shareholders' Equity Share Repurchase Plan Information (Details) (USD $) | 2 Months Ended | 10 Months Ended | 2 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Mar. 07, 2014 | Dec. 31, 2014 | Feb. 20, 2015 | Feb. 07, 2014 | Dec. 31, 2013 | Mar. 08, 2013 | Feb. 19, 2015 |
Stock Repurchased and Retired During Period, Shares | 75,203 | 910,990 | |||||
Stock Repurchase Program, Authorized Amount | $50 | $50 | |||||
Stock Repurchased and Retired During Period, Value | 2.9 | 36.7 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 13.3 | ||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||||
Subsequent Event [Member] | |||||||
Stock Repurchased and Retired During Period, Shares | 335,251 | ||||||
Stock Repurchased and Retired During Period, Average Price Per Share | $39.62 | ||||||
Stock Repurchase Program, Authorized Amount | $50 |
Shareholders_Equity_Accumulate
Shareholders' Equity Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | ($21,722) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -114,792 | 12,662 | 2,776 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | -136,514 | -21,722 | |
Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | -21,722 | -34,384 | -37,160 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -115,091 | 13,610 | 2,944 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 299 | -948 | -168 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -114,792 | 12,662 | 2,776 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | -136,514 | -21,722 | -34,384 |
Accumulated Other Comprehensive Income, Net Unrealized Gain (Loss) on Nonderivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | -14,380 | -14,380 | -14,380 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | -14,380 | -14,380 | -14,380 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | -1,256 | -1,689 | 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -566 | 2 | -1,689 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,054 | 431 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 488 | 433 | -1,689 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | -768 | -1,256 | -1,689 |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | 3,799 | -3,313 | -24,718 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -90,333 | 7,112 | 21,405 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -90,333 | 7,112 | 21,405 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | -86,534 | 3,799 | -3,313 |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning of Period | -9,885 | -15,002 | 1,938 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -24,192 | 6,496 | -16,772 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -755 | -1,379 | -168 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -24,947 | 5,117 | -16,940 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, End of Period | ($34,832) | ($9,885) | ($15,002) |
Shareholders_Equity_Schedule_o
Shareholders' Equity Schedule of Other Comprehensive Income (Loss) Tax Effect (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Before-tax amount [Abstract] | |||
Foreign currency translation adjustment | ($90,365) | $8,126 | $28,002 |
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | -915 | -3 | -2,725 |
Net hedging (gain) loss reclassified into net income (loss) | 1,704 | 697 | 0 |
Pension plan benefits liability adjustment | -25,270 | 7,344 | -24,358 |
Total other comprehensive income (loss), before tax | -114,846 | 16,164 | 919 |
Tax (provision) benefit [Abstract] | |||
Foreign currency translation adjustment | 32 | -1,014 | -6,597 |
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | 349 | 5 | 1,036 |
Net hedging (gain) loss reclassified into net income (loss) | -650 | -266 | 0 |
Pension plan benefits liability adjustment | 323 | -2,227 | 7,418 |
Total other comprehensive income (loss) tax (provision) benefit | 54 | -3,502 | 1,857 |
Net-of-tax amount | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | -90,333 | 7,112 | 21,405 |
Net unrealized gain (loss) on derivative instruments designated as cash flow hedges | -566 | 2 | -1,689 |
Net hedging (gain) loss reclassified into net income (loss) | 1,054 | 431 | 0 |
Pension plan benefit liability adjustment | -24,947 | 5,117 | -16,940 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | ($114,792) | $12,662 | $2,776 |
Shareholders_Equity_Accumulate1
Shareholders' Equity Accumulated OCI Reclassified to Statement of Operations (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | ($138) | ($70) | ($68) | |||
Other Amounts Recognized in Other Comprehensive Income, before tax | -68 | 658 | 0 | |||
Income (loss) before income taxes | -14,909 | -148,254 | 136,219 | |||
Income Tax Expense (Benefit) | -6,641 | 3,664 | -25,995 | |||
Net income (loss) | -21,550 | -144,590 | 110,224 | |||
Total reclassifications for the period, net of tax | -21,550 | -144,590 | 110,224 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net income (loss) | -755 | [1] | -1,379 | [1] | -168 | [1] |
Total reclassifications for the period, net of tax | -755 | [1] | -1,379 | [1] | -168 | [1] |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | -138 | [1],[2] | -70 | [1],[2] | -68 | [1],[2] |
Defined Benefit Plan, Amortization of Gains (Losses) | -572 | [1],[2] | -926 | [1],[2] | -161 | [1],[2] |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | -55 | [1],[2] | -325 | [1],[2] | -13 | [1],[2] |
Other Amounts Recognized in Other Comprehensive Income, before tax | 0 | [1],[2] | -658 | [1],[2] | 0 | [1],[2] |
Income (loss) before income taxes | -765 | [1] | -1,979 | [1] | -242 | [1] |
Income Tax Expense (Benefit) | 10 | [1] | 600 | [1] | 74 | [1] |
Net income (loss) | -755 | [1] | -1,379 | [1] | -168 | [1] |
Total reclassifications for the period, net of tax | ($755) | [1] | ($1,379) | [1] | ($168) | [1] |
[1] | Amounts in parenthesis indicate debits to the Statements of Operations. | |||||
[2] | These AOCI components are included in the computation of net periodic pension cost. Refer to Note 8 for additional details. |
Shareholders_Equity_Shareholde1
Shareholders' Equity Shareholders' Equity (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Stockholders' Equity Note [Abstract] | |||
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Preferred Stock, No Par Value |
Fair_Values_of_Financial_Instr2
Fair Values of Financial Instruments Schedule of Fair Values of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $112,371 | $124,805 | $136,411 | $133,086 |
Interest Rate Derivative Assets, at Fair Value | 75 | 0 | ||
Reported Value Measurement [Member] | ||||
Assets | ||||
Foreign exchange forward contracts | 107 | 41 | ||
Cash and cash equivalents | 112,371 | 124,805 | ||
Liabilities | ||||
Interest rate swaps, at fair value | 1,317 | 2,031 | ||
Foreign exchange forwards, liability, at fair value | 236 | 145 | ||
Reported Value Measurement [Member] | Line of Credit [Member] | ||||
Liabilities | ||||
Multicurrency revolving line of credit | 91,469 | 120,000 | ||
Reported Value Measurement [Member] | USD Denominated Term Loan [Member] | ||||
Liabilities | ||||
Term loans | 232,500 | 258,750 | ||
Estimate of Fair Value Measurement [Member] | ||||
Assets | ||||
Foreign exchange forward contracts | 107 | 41 | ||
Cash and cash equivalents, at fair value | 112,371 | 124,805 | ||
Liabilities | ||||
Interest rate swaps, at fair value | 1,317 | 2,031 | ||
Foreign exchange forwards, liability, at fair value | 236 | 145 | ||
Estimate of Fair Value Measurement [Member] | Line of Credit [Member] | ||||
Liabilities | ||||
Multicurrency revolving line of credit, Fair Value of Amount Outstanding | 91,124 | 119,609 | ||
Estimate of Fair Value Measurement [Member] | USD Denominated Term Loan [Member] | ||||
Liabilities | ||||
Term loans, at fair value | $231,645 | $258,011 |
Segment_Information_Informatio
Segment Information Information By Segment (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $510,095 | $496,454 | $489,353 | $474,795 | $523,526 | $495,491 | $482,175 | $447,536 | $1,970,697 | $1,948,728 | $2,178,178 |
Gross profit | 154,787 | 150,762 | 163,041 | 154,535 | 164,738 | 150,084 | 159,588 | 140,123 | 623,125 | 614,533 | 715,147 |
Operating income (loss) | 3,832 | -135,181 | 151,126 | ||||||||
Total other income (expense) | -18,741 | -13,073 | -14,907 | ||||||||
Income (loss) before income taxes | -14,909 | -148,254 | 136,219 | ||||||||
Depreciation and amortization | 98,463 | 98,845 | 109,471 | ||||||||
Electricity Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 794,144 | 836,553 | 1,024,340 | ||||||||
Gross profit | 208,476 | 218,913 | 295,005 | ||||||||
Operating income (loss) | -72,476 | -235,908 | 24,812 | ||||||||
Depreciation and amortization | 47,886 | 46,535 | 52,113 | ||||||||
Gas Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 599,081 | 570,297 | 627,193 | ||||||||
Gross profit | 211,815 | 207,915 | 235,391 | ||||||||
Operating income (loss) | 75,598 | 83,882 | 110,557 | ||||||||
Depreciation and amortization | 26,031 | 27,266 | 29,968 | ||||||||
Water Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 577,472 | 541,878 | 526,645 | ||||||||
Gross profit | 202,834 | 187,705 | 184,751 | ||||||||
Operating income (loss) | 71,006 | 63,252 | 59,210 | ||||||||
Depreciation and amortization | 24,259 | 24,797 | 27,324 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | -70,296 | -46,407 | -43,453 | ||||||||
Depreciation and amortization | $287 | $247 | $66 |
Segment_Information_Revenues_B
Segment Information Revenues By Region (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers [Line Items] | |||||||||||
Total revenues | $510,095 | $496,454 | $489,353 | $474,795 | $523,526 | $495,491 | $482,175 | $447,536 | $1,970,697 | $1,948,728 | $2,178,178 |
United States and Canada [Member] | |||||||||||
Revenues from External Customers [Line Items] | |||||||||||
Total revenues | 899,399 | 851,295 | 1,014,739 | ||||||||
EMEA [Member] | |||||||||||
Revenues from External Customers [Line Items] | |||||||||||
Total revenues | 848,502 | 858,026 | 878,615 | ||||||||
Other Countries [Member] | |||||||||||
Revenues from External Customers [Line Items] | |||||||||||
Total revenues | $222,796 | $239,407 | $284,824 |
Segment_Information_Major_Cust
Segment Information Major Customers (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2012 | |
Revenue, Major Customer [Line Items] | ||
Segment Reporting, Disclosure of Major Customers | For the years ended DecemberB 31, 2014 and 2013, no single customer represented more than 10% of total Company or the Electricity, Gas or Water operating segment revenues. For the year ended DecemberB 31, 2012, no single customer represented more than 10% of total Company or the Gas or Water operating segment revenues | |
Sales [Member] | Threshold for Reporting Customer Concentration [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage of total company revenue represented by one customer | 10.00% | |
Sales [Member] | Customer A [Member] | Electricity Operating Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage of total company revenue represented by one customer | 17.00% |
Segment_Information_Property_P
Segment Information Property, Plant, and Equipment By Location (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant, and equipment, net | $207,789 | $246,820 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant, and equipment, net | 76,130 | 87,954 |
Outside United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant, and equipment, net | $131,659 | $158,866 |
Segment_Information_Segment_re
Segment Information Segment results narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | $154,787 | $150,762 | $163,041 | $154,535 | $164,738 | $150,084 | $159,588 | $140,123 | $623,125 | $614,533 | $715,147 |
Earnings (loss) per common share - Basic | ($1.25) | $0.19 | $0.49 | ($0.01) | ($3.93) | ($0.19) | $0.31 | $0.07 | ($0.58) | ($3.74) | $2.73 |
Earnings (loss) per common share - Diluted | ($1.25) | $0.19 | $0.49 | ($0.01) | ($3.93) | ($0.19) | $0.31 | $0.06 | ($0.58) | ($3.74) | $2.71 |
Electricity Operating Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | 208,476 | 218,913 | 295,005 | ||||||||
OpenWay project in North America [Member] | Electricity Operating Segment [Member] | Contracts Accounted for under Percentage of Completion [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit | $15,900 | $16,500 | |||||||||
Earnings (loss) per common share - Basic | ($0.25) | ($0.26) | |||||||||
Earnings (loss) per common share - Diluted | ($0.25) | ($0.26) |
Quarterly_Results_Unaudited_Qu1
Quarterly Results (Unaudited) Quarterly Results (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Results [Line Items] | |||||||||||
Revenues | $510,095 | $496,454 | $489,353 | $474,795 | $523,526 | $495,491 | $482,175 | $447,536 | $1,970,697 | $1,948,728 | $2,178,178 |
Gross profit | 154,787 | 150,762 | 163,041 | 154,535 | 164,738 | 150,084 | 159,588 | 140,123 | 623,125 | 614,533 | 715,147 |
Net income (loss) attributable to Itron, Inc. | -49,233 | 7,308 | 19,259 | -254 | -154,430 | -7,348 | 12,399 | 2,570 | -22,920 | -146,809 | 108,275 |
Earnings (loss) per common share - Basic | ($1.25) | $0.19 | $0.49 | ($0.01) | ($3.93) | ($0.19) | $0.31 | $0.07 | ($0.58) | ($3.74) | $2.73 |
Earnings (loss) per common share - Diluted | ($1.25) | $0.19 | $0.49 | ($0.01) | ($3.93) | ($0.19) | $0.31 | $0.06 | ($0.58) | ($3.74) | $2.71 |
Goodwill, Impairment Loss | $977 | $173,249 | $0 |
Quarterly_Results_Unaudited_Qu2
Quarterly Results (Unaudited) Quarterly Results Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly Results [Line Items] | |||
Goodwill, Impairment Loss | $977,000 | $173,249,000 | $0 |
Restructuring Charges | 50,857,000 | 35,497,000 | 1,665,000 |
2014 Project [Member] | |||
Quarterly Results [Line Items] | |||
Restructuring Charges | 55,800,000 | ||
2013 Project [Member] | |||
Quarterly Results [Line Items] | |||
Restructuring Charges | ($4,943,000) | $31,100,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Feb. 07, 2014 | Mar. 08, 2013 | Feb. 19, 2015 |
In Millions, unless otherwise specified | |||
Subsequent Event [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $50 | $50 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $50 |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Other Adjustments | $308 | $1,740 | |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of Period | 161,026 | 138,910 | 124,244 |
Other Adjustments | -5,058 | 4,117 | 1,811 |
Additions Charged to Cost and Expense | 100,651 | 17,999 | 12,855 |
Balance at End of Period Noncurrent | $256,619 | $161,026 | $138,910 |