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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission file number 000-22418
Itron, Inc.
(Exact name of registrant as specified in its charter)
Itron Logo RGB.jpg
Washington 91-1011792
(State of Incorporation) (I.R.S. Employer Identification No.)
2111 N Molter Road, Liberty Lake, Washington 99019
(509) 924-9900
(Address and telephone number of registrant's principal executive offices) 

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, no par valueITRINASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒
As of October 28, 2024, there were outstanding 45,089,570 shares of the registrant's common stock, no par value, which is the only class of common stock of the registrant.

Itron, Inc.
Table of Contents


PART I: FINANCIAL INFORMATION
Item 1:    Financial Statements (Unaudited)
ITRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended September 30,Nine Months Ended September 30,
In thousands, except per share data2024202320242023
Revenues
Product revenues$538,249 $480,355 $1,598,978 $1,361,482 
Service revenues77,213 80,417 228,995 234,978 
Total revenues615,462 560,772 1,827,973 1,596,460 
Cost of revenues
Product cost of revenues362,579 332,035 1,076,033 951,666 
Service cost of revenues43,285 41,534 126,503 127,276 
Total cost of revenues405,864 373,569 1,202,536 1,078,942 
Gross profit209,598 187,203 625,437 517,518 
Operating expenses
Sales, general and administrative79,639 76,576 254,023 231,176 
Research and development51,237 51,644 156,691 154,769 
Amortization of intangible assets4,814 4,663 13,311 14,433 
Restructuring(723)(615)(624)36,868 
Loss on sale of business698 45 656 675 
Total operating expenses135,665 132,313 424,057 437,921 
Operating income73,933 54,890 201,380 79,597 
Other income (expense)
Interest income13,420 2,642 22,394 5,968 
Interest expense(5,605)(2,445)(9,788)(6,479)
Other income (expense), net677 646 695 (1,162)
Total other income (expense)8,492 843 13,301 (1,673)
Income before income taxes82,425 55,733 214,681 77,924 
Income tax provision(3,515)(15,388)(32,124)(24,513)
Net income78,910 40,345 182,557 53,411 
Net income attributable to noncontrolling interests951 173 1,559 874 
Net income attributable to Itron, Inc.$77,959 $40,172 $180,998 $52,537 
Net income per common share - Basic$1.73 $0.88 $3.98 $1.16 
Net income per common share - Diluted$1.70 $0.87 $3.91 $1.15 
Weighted average common shares outstanding - Basic44,982 45,462 45,458 45,393 
Weighted average common shares outstanding - Diluted45,839 45,950 46,239 45,768 
The accompanying notes are an integral part of these consolidated financial statements.
1
ITRON, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
Three Months Ended September 30,Nine Months Ended September 30,
In thousands2024202320242023
Net income
$78,910 $40,345 $182,557 $53,411 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments
19,880 (15,009)3,611 (5,844)
Pension benefit obligation adjustment
(34)(109)(607)(322)
Total other comprehensive income (loss), net of tax19,846 (15,118)3,004 (6,166)
Total comprehensive income (loss), net of tax98,756 25,227 185,561 47,245 
Comprehensive income (loss) attributable to noncontrolling interests, net of tax951 173 1,559 874 
Comprehensive income (loss) attributable to Itron, Inc.$97,805 $25,054 $184,002 $46,371 
The accompanying notes are an integral part of these consolidated financial statements.
2
ITRON, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
In thousandsSeptember 30, 2024December 31, 2023
ASSETS
Current assets
Cash and cash equivalents$982,507 $302,049 
Accounts receivable, net338,769 303,821 
Inventories276,616 283,686 
Other current assets156,642 159,882 
Total current assets1,754,534 1,049,438 
Property, plant, and equipment, net120,449 128,806 
Deferred tax assets, net290,259 247,211 
Other long-term assets40,804 38,836 
Operating lease right-of-use assets, net37,641 41,186 
Intangible assets, net47,969 46,282 
Goodwill1,073,757 1,052,504 
Total assets$3,365,413 $2,604,263 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable$152,510 $199,520 
Other current liabilities61,151 54,407 
Wages and benefits payable118,634 135,803 
Taxes payable14,273 8,636 
Current portion of warranty13,807 14,663 
Unearned revenue161,096 124,207 
Total current liabilities521,471 537,236 
Long-term debt, net1,240,950 454,827 
Long-term warranty7,925 7,501 
Pension benefit obligation64,886 63,887 
Deferred tax liabilities, net622 697 
Operating lease liabilities28,820 32,656 
Other long-term obligations132,052 176,028 
Total liabilities1,996,726 1,272,832 
Equity
Preferred stock, no par value, 10,000 shares authorized, no shares issued or outstanding
— — 
Common stock, no par value, 75,000 shares authorized, 45,016 and 45,512 shares issued and outstanding
1,673,916 1,820,510 
Accumulated other comprehensive loss, net(78,186)(81,190)
Accumulated deficit(247,411)(428,409)
Total Itron, Inc. shareholders' equity1,348,319 1,310,911 
Noncontrolling interests20,368 20,520 
Total equity1,368,687 1,331,431 
Total liabilities and equity$3,365,413 $2,604,263 
The accompanying notes are an integral part of these consolidated financial statements.
3
ITRON, INC.
CONSOLIDATED STATEMENTS OF EQUITY
(UNAUDITED)
Common StockAccumulated Other Comprehensive LossAccumulated DeficitTotal Itron, Inc. Shareholders' EquityNoncontrolling InterestsTotal Equity
In thousandsSharesAmount
Balances at January 1, 202445,512 $1,820,510 $(81,190)$(428,409)$1,310,911 $20,520 $1,331,431 
Net income
51,721 51,721 66 51,787 
Other comprehensive income (loss), net of tax(10,908)(10,908)(10,908)
Net stock issued and repurchased338 1,560 1,560 1,560 
Stock-based compensation expense11,429 11,429 11,429 
Registration fee11 11 11 
Balances at March 31, 202445,8501,833,510 (92,098)(376,688)1,364,724 20,586 1,385,310 
Net income51,318 51,318 542 51,860 
Other comprehensive income (loss), net of tax(5,934)(5,934)(5,934)
Net stock issued and repurchased74 1,408 1,408 1,408 
Stock-based compensation expense10,416 10,416 10,416 
Payments on call spread for convertible offering, net of tax
(82,304)(82,304)(82,304)
Stock repurchased
(972)(100,000)(100,000)(100,000)
Registration fee(65)(65)(65)
Balances at June 30, 202444,952 1,662,965 (98,032)(325,370)1,239,563 21,128 1,260,691 
Net income77,959 77,959 951 78,910 
Other comprehensive income (loss), net of tax19,846 19,846 19,846 
Distributions to noncontrolling interests(1,711)(1,711)
Net stock issued and repurchased64 1,345 1,345 1,345 
Stock-based compensation expense10,222 10,222 10,222 
Excise tax related to shares repurchased
(616)(616)(616)
Balances at September 30, 202445,016 $1,673,916 $(78,186)$(247,411)$1,348,319 $20,368 $1,368,687 

Common StockAccumulated Other Comprehensive LossAccumulated DeficitTotal Itron, Inc. Shareholders' EquityNoncontrolling InterestsTotal Equity
In thousandsSharesAmount
Balances at January 1, 202345,186 $1,788,479 $(94,674)$(525,332)$1,168,473 $23,083 $1,191,556 
Net loss
(11,836)(11,836)(201)(12,037)
Other comprehensive income (loss), net of tax7,119 7,119 7,119 
Distributions to noncontrolling interests(21)(21)
Net stock issued and repurchased219 607 607 607 
Stock-based compensation expense6,919 6,919 6,919 
Balances at March 31, 202345,4051,796,005 (87,555)(537,168)1,171,282 22,861 1,194,143 
Net income24,201 24,201 902 25,103 
Other comprehensive income (loss), net of tax1,833 1,833 1,833 
Net stock issued and repurchased43 1,033 1,033 1,033 
Stock-based compensation expense6,775 6,775 6,775 
Balances at June 30, 202345,448 1,803,813 (85,722)(512,967)1,205,124 23,763 1,228,887 
Net income40,172 40,172 173 40,345 
Other comprehensive income (loss), net of tax(15,118)(15,118)(15,118)
Distributions to noncontrolling interests(3,936)(3,936)
Net stock issued and repurchased26 715 715 715 
Stock-based compensation expense6,837 6,837 6,837 
Balances at September 30, 202345,474 $1,811,365 $(100,840)$(472,795)$1,237,730 $20,000 $1,257,730 
The accompanying notes are an integral part of these consolidated financial statements.
4
ITRON, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended September 30,
In thousands20242023
Operating activities
Net income$182,557 $53,411 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangible assets40,979 42,013 
Non-cash operating lease expense11,481 12,197 
Stock-based compensation32,067 20,531 
Amortization of prepaid debt fees3,669 2,761 
Deferred taxes, net(17,509)1,938 
Loss on sale of business656 675 
Restructuring, non-cash(171)910 
Other adjustments, net(838)(318)
Changes in operating assets and liabilities, net of acquisition and sale of business:
Accounts receivable(31,169)(37,832)
Inventories5,532 (48,280)
Other current assets4,102 (43,240)
Other long-term assets(1,391)3,392 
Accounts payable, other current liabilities, and taxes payable(39,054)220 
Wages and benefits payable(18,010)17,361 
Unearned revenue33,453 38,619 
Warranty(476)(2,177)
Restructuring(19,816)23,966 
Other operating, net(27,736)(9,071)
Net cash provided by operating activities158,326 77,076 
Investing activities
Net proceeds (payments) related to the sale of business405 (772)
Acquisitions of property, plant, and equipment(20,878)(18,304)
Business acquisitions, net of cash and cash equivalents acquired(34,126)— 
Other investing, net212 73 
Net cash used in investing activities(54,387)(19,003)
Financing activities
Proceeds from borrowings805,000 — 
Issuance of common stock4,317 2,366 
Payments on call spread for convertible offering(108,997)— 
Repurchase of common stock(100,000)— 
Prepaid debt fees(21,617)(517)
Other financing, net(2,618)(4,488)
Net cash provided by (used in) financing activities576,085 (2,639)
Effect of foreign exchange rate changes on cash and cash equivalents434 (2,670)
Increase in cash and cash equivalents680,458 52,764 
Cash and cash equivalents at beginning of period302,049 202,007 
Cash and cash equivalents at end of period$982,507 $254,771 
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes, net$59,212 $29,031 
Interest4,062 1,578 
The accompanying notes are an integral part of these consolidated financial statements.
5
ITRON, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2024
(UNAUDITED)
In this Quarterly Report on Form 10-Q, the terms "we", "us", "our", "Itron", and the "Company" refer to Itron, Inc. and its subsidiaries.

Note 1:    Summary of Significant Accounting Policies

Financial Statement Preparation
The consolidated financial statements presented in this Quarterly Report on Form 10-Q are unaudited and reflect entries necessary for the fair presentation of the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2024 and 2023, Consolidated Statements of Equity for the three months ended September 30, 2024 and 2023, June 30, 2024 and 2023, and March 31, 2024 and 2023, the Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023, and the Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023, of Itron, Inc. and its subsidiaries. All entries required for the fair presentation of the financial statements are of a normal recurring nature, except as disclosed. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results expected for the full year or for any other period.

Certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been partially or completely omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) regarding interim results. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2023 filed with the SEC in our Annual Report on Form 10-K on February 26, 2024 (2023 Annual Report). There have been no significant changes in financial statement preparation or significant accounting policies since December 31, 2023.

Restricted Cash and Cash Equivalents
Cash and cash equivalents that are contractually restricted from operating use are classified as restricted cash and cash equivalents. We had $1.8 million pledged for standby letters of credit as of September 30, 2024 and December 31, 2023.

Risks and Uncertainties
Global economic impacts, such as pandemics and various ongoing conflicts around the world, may create disruption in customer demand and global supply chains, resulting in market volatility, which our management continues to monitor. In the aftermath of these types of events, global supply chains, including labor, may struggle to keep pace with rapidly changing demand. Temporary imbalance in supply and demand may create business uncertainties that include costs and availability. Efforts continue with suppliers to improve supply resiliency, including the approval of alternate sources. Additionally, inflation in our raw materials and component costs, freight charges, sanctions, tariffs, and labor costs may increase above historical levels due to, among other things, the continuing impacts of an uncertain economic environment. We may or may not be able to fully recover these increased costs through pricing actions with our customers. Currently, we have not identified any significant decrease in long-term customer demand for our products and services.

While we have limited direct business exposure in areas with current conflict, such as Ukraine and Israel, military actions globally and any resulting sanctions or tariffs could adversely affect the global economy, as well as further disrupt the supply chain. A major disruption in the global economy and supply chain could have a material adverse effect on our business, prospects, financial condition, results of operations, and cash flows. The extent and duration of the military action, sanctions, tariffs, and resulting market and/or supply disruptions are impossible to predict but could be substantial, and our management continues to monitor these events closely.

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Recent Accounting Standards Not Yet Adopted
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures, which amends the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our annual financial reporting in 2024 and interim financial reports for the first quarter of 2025, with early adoption permitted. These amendments are to be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact this standard will have on our consolidated financial statement disclosures for our reportable segment information.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which amends Income Taxes (Topic 740). The FASB issued this update to improve annual basis income tax disclosures related to (1) rate reconciliation, (2) income taxes paid, and (3) other disclosures related to pretax income (or loss) and income tax expense (or benefit) from continuing operations. The effective date for this amendment is January 1, 2025, with early adoption permitted. These amendments are to be applied on a prospective basis; however, retrospective application is permitted. We are currently evaluating the impact this standard will have on our consolidated financial statement disclosures.

Note 2:    Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (EPS):
Three Months Ended September 30,Nine Months Ended September 30,
In thousands, except per share data2024202320242023
Net income available to common shareholders
$77,959 $40,172 $180,998 $52,537 
Weighted average common shares outstanding - Basic44,982 45,462 45,458 45,393 
Dilutive effect of stock-based awards857 488 781 375 
Dilutive effect of convertible notes— — — — 
Weighted average common shares outstanding - Diluted45,839 45,950 46,239 45,768 
Net income per common share - Basic
$1.73 $0.88 $3.98 $1.16 
Net income per common share - Diluted
$1.70 $0.87 $3.91 $1.15 

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 our common stock at the average market price during the period. Related proceeds include the amount the employee must pay upon exercise and the future compensation cost associated with the stock award. Approximately 1,000 and 23,000 stock-based awards were excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2024 because they were anti-dilutive. Approximately 0.2 million and 0.3 million stock-based awards were excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2023 because they were anti-dilutive. These stock-based awards could be dilutive in future periods.

Convertible Notes and Share Hedges

2021 Notes, Warrants and Call Option Transactions
For our convertible notes issued in March 2021 (the 2021 Notes), the dilutive effect is calculated using the if-converted method. We are required, pursuant to the indenture governing the notes, to settle the principal amount in cash and may elect to settle the remaining conversion obligation (stock price in excess of conversion price) in cash, shares, or a combination thereof. Under the if-converted method, we include the number of shares required to satisfy the remaining conversion obligation, assuming all the notes were converted. The average closing prices of our common stock for the quarter ended September 30, 2024 were used as the basis for determining the dilutive effect on EPS. The quarterly average closing prices for our common stock did not exceed the conversion price of $126.00, and therefore all associated shares were anti-dilutive.

In conjunction with the issuance of the 2021 Notes, we sold warrants to purchase 3.7 million shares of Itron common stock. The warrants have a strike price of $180.00 per share. For calculating the dilutive effect of the warrants, we use the treasury stock method. With this method, we assume exercise of the warrants at the beginning of the period, or at time of issuance if later, and the issuance of common stock upon exercise. Proceeds from the exercise of the warrants are assumed to be used to repurchase shares of our stock at the average market price during the period. The incremental shares, representing the number of shares
7
assumed to be exercised with the warrants less the number of shares repurchased, are included in diluted weighted average common shares outstanding. For periods where the warrants strike price of $180.00 per share is greater than the average share price of Itron stock for the period, the warrants would be anti-dilutive. For the three and nine months ended September 30, 2024, the quarterly average closing prices of our common stock did not exceed the warrant strike price and therefore 3.7 million shares were considered anti-dilutive.

In connection with the issuance of the 2021 Notes, we entered into privately negotiated call option contracts on our common stock (the 2021 call option transactions) with certain commercial banks. The 2021 call option transactions cover, subject to anti-dilution adjustments substantially similar to those in the 2021 Notes, approximately 3.7 million shares of our common stock, the same number of shares initially underlying the notes, at a strike price of approximately $126.00, subject to customary adjustments. The 2021 call option transactions will expire upon the maturity of the 2021 Notes, subject to earlier exercise or termination. Exercise of the 2021 call option transactions would reduce the number of shares of our common stock outstanding and therefore would be anti-dilutive.

2024 Notes and Capped Call Transactions
For our convertible notes issued in June 2024 (the 2024 Notes), the dilutive effect is calculated using the if-converted method. We are required, pursuant to the indenture governing our convertible notes, to settle the principal amount of the convertible notes in cash and may elect to settle the remaining conversion obligation (stock price in excess of conversion price) in cash, shares, or a combination thereof. Under the if-converted method, we include the number of shares required to satisfy the remaining conversion obligation, assuming all the convertible notes were converted. The average closing prices of our common stock for the quarter ended September 30, 2024 were used as the basis for determining the dilutive effect on EPS. The quarterly average closing prices for our common stock did not exceed the conversion price of $131.24, and therefore all associated shares were anti-dilutive.

In connection with the issuance of the 2024 Notes, we entered into privately negotiated capped call transactions (the 2024 capped call transactions) on our common stock with certain commercial banks. The 2024 capped call transactions cover, subject to anti-dilution adjustments substantially similar to those in the 2024 Notes, approximately 6.1 million shares of our common stock, the same number of shares initially underlying the convertible notes, at a strike price of approximately $131.2353, subject to customary adjustments. The cap price of the 2024 capped call transactions will initially be $205.86 per share, which represents a premium of 100% over the last reported stock price per share of the Company's common stock on June 17, 2024, and is subject to certain adjustments under the terms of the 2024 capped call transactions. The 2024 capped call transactions will expire upon the maturity of the 2024 Notes, subject to earlier exercise or termination. Exercise of the 2024 capped call transactions would reduce the number of shares of our common stock outstanding and therefore would be anti-dilutive.

8
Note 3:    Certain Balance Sheet Components

A summary of accounts receivable from contracts with customers is as follows:
Accounts receivable, net
In thousandsSeptember 30, 2024December 31, 2023
Trade receivables (net of allowance of $591 and $738)
$307,696 $272,890 
Unbilled receivables31,073 30,931 
Total accounts receivable, net$338,769 $303,821 

Allowance for credit losses account activityThree Months Ended September 30,Nine Months Ended September 30,
In thousands2024202320242023
Beginning balance$603 $4,694 $738 $4,863 
Provision for (release of) doubtful accounts, net(11)76 (89)37 
Accounts written-off, net(28)(60)(71)(304)
Effect of change in exchange rates27 (67)13 47 
Ending balance$591 $4,643 $591 $4,643 

Inventories
In thousandsSeptember 30, 2024December 31, 2023
Raw materials$195,045 $213,303 
Work in process15,182 17,849 
Finished goods66,389 52,534 
Total inventories$276,616 $283,686 

Property, plant, and equipment, net
In thousandsSeptember 30, 2024December 31, 2023
Machinery and equipment$325,716 $318,546 
Computers and software126,043 126,149 
Buildings, furniture, and improvements124,494 126,041 
Land8,452 7,846 
Construction in progress, including purchased equipment19,592 24,316 
Total cost604,297 602,898 
Accumulated depreciation(483,848)(474,092)
Property, plant, and equipment, net$120,449 $128,806 

Depreciation expenseThree Months Ended September 30,Nine Months Ended September 30,
In thousands2024202320242023
Depreciation expense$9,902 $8,982 $27,668 $27,580 

9
Note 4:    Intangible Assets and Liabilities

The gross carrying amount and accumulated amortization (accretion) of our intangible assets and liabilities, other than goodwill, were as follows:
September 30, 2024December 31, 2023
In thousandsGrossAccumulated
(Amortization) Accretion		NetGrossAccumulated
(Amortization) Accretion		Net
Intangible Assets
Core-developed technology$516,107 $(503,763)$12,344 $502,010 $(499,571)$2,439 
Customer contracts and relationships335,283 (301,195)34,088 329,688 (287,653)42,035 
Trademarks and trade names73,930 (72,435)1,495 73,461 (71,740)1,721 
Other12,020 (11,978)42 12,019 (11,932)87 
Total intangible assets
$937,340 $(889,371)$47,969 $917,178 $(870,896)$46,282 
Intangible Liabilities
Customer contracts and relationships$(23,900)$23,900 $— $(23,900)$23,900 $— 

A summary of intangible assets and liabilities activity is as follows:
Nine Months Ended September 30,
In thousands20242023
Intangible assets, gross beginning balance$917,178 $905,134 
Intangible assets acquired (1)
15,000 — 
Effect of change in exchange rates5,162 (2,231)
Intangible assets, gross ending balance$937,340 $902,903 
Intangible liabilities, gross beginning balance$(23,900)$(23,900)
Effect of change in exchange rates— — 
Intangible liabilities, gross ending balance$(23,900)$(23,900)

(1) On March 1, 2024, we completed the acquisition of 100% of the shares Elpis2, Inc. (Elpis Squared), a privately held software and services company. The purchase resulted in the addition of intangible assets of $15.0 million including $12.5 million identified core-developed technology and $2.5 million of customer contracts and relationships. The core-developed technology and customer contract and relationships will be amortized over the weighted-average five-year and three-year useful lives, respectively, using the straight-line method. Refer to Note 5: Goodwill and Note 17: Business Combination for additional information.

Assumed intangible liabilities reflect the present value of the projected cash outflows for a then existing contract for which remaining costs were expected to exceed projected revenues.

Estimated future annual amortization is as follows:
Year Ending December 31,Estimated Annual Amortization
In thousands
2024 (amount remaining at September 30, 2024)$4,566 
202517,775 
202613,726 
20278,273 
20282,681 
Thereafter948 
Total intangible assets subject to amortization$47,969 

10
Note 5:    Goodwill

The following table reflects changes in the carrying amount of goodwill for the nine months ended September 30, 2024:
In thousandsDevice SolutionsNetworked SolutionsOutcomesTotal Company
Goodwill balance at January 1, 2024$— $911,847 $140,657 $1,052,504 
Goodwill acquired (1)
— — 19,661 19,661 
Effect of change in exchange rates— 1,382 210 1,592 
Goodwill balance at September 30, 2024$— $913,229 $160,528 $1,073,757 

(1) On March 1, 2024, we acquired Elpis Squared. The purchase resulted in the recognition of $19.7 million in goodwill allocated to our Outcomes operating segment and reporting unit. Refer to Note 4: Intangible Assets and Liabilities and Note 17: Business Combination for additional information on the transaction.

Note 6:    Debt

The components of our borrowings were as follows:
In thousandsSeptember 30, 2024December 31, 2023
Credit facility
Multicurrency revolving line of credit$— $— 
Convertible notes1,265,000 460,000 
Total debt1,265,000 460,000 
Less: unamortized prepaid debt fees - convertible notes24,050 5,173 
Long-term debt, net $1,240,950 $454,827 

Credit Facility
Our current credit facility, entered on January 5, 2018 (as amended, the 2018 credit facility), originally provided for committed credit facilities in the amount of $1.2 billion U.S. dollars. This facility now consists of a multicurrency revolving line of credit (the revolver) with a principal amount of up to $500 million. The revolver also contains a $300 million standby letter of credit sub-facility and a $50 million swingline sub-facility. The $650 million U.S. dollar term loan (the term loan) included in the original facility was fully repaid in August 2021.

The 2018 credit facility permits us and certain of our foreign subsidiaries to borrow in U.S. dollars, euros, or, with lender approval, other currencies readily convertible into U.S. dollars. All obligations under the 2018 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. This includes 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 first-tier foreign subsidiaries. In addition, the obligations of any foreign subsidiary who is a foreign borrower, as defined by the 2018 credit facility, are guaranteed by the foreign subsidiary and by its direct and indirect foreign parents. The 2018 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 2018 credit facility at September 30, 2024.

Under the 2018 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 net 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 (subject to a floor of 0%), 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 0.50%, or (iii) one-month LIBOR plus 1.00%. The cessation of LIBOR occurred in June 2023. On November 23, 2022, we amended the 2018 credit facility to replace the LIBOR rate with the Term Secured Overnight Financing Rate (SOFR) as the base interest rate. On February 21, 2023, we entered into a sixth amendment to the 2018 credit facility. This amendment modified debt covenant provisions to allow for the addback of non-recurring cash expenses related to restructuring charges incurred during the quarter ended March 31, 2023. On October 13, 2023, we entered into a seventh amendment to extend the maturity date to October 18, 2026. However, that date may be advanced to December 14, 2025 if Itron does not settle or extend a sufficient portion of outstanding convertible notes detailed in the amendment. In addition, the amendment revises the interest cost, as follows:

11
Total Net Leverage RatioInterest CostCommitment Fee
Greater than 4.00
SOFR + 250 bps
40 bps
3.51 to 4.00
SOFR + 225 bps
35 bps
2.51 to 3.50
SOFR + 200 bps
30 bps
Less than or equal to 2.50
SOFR + 175 bps
25 bps

On June 14, 2024, we entered into an eighth amendment of the 2018 credit facility. In contemplation of the issuance of the 2024 convertible notes, this amendment to the Credit Agreement removed the $500 million maximum amount of convertible notes we could offer.

At September 30, 2024, there were no outstanding loan balances under the credit facility, and $46.8 million was utilized by outstanding standby letters of credit, resulting in $453.2 million available for additional borrowings or standby letters of credit within the revolver. At September 30, 2024, $253.2 million was available for additional standby letters of credit under the letter of credit sub-facility, and no amounts were outstanding under the swingline sub-facility.

Convertible Notes

2021 Notes
On March 12, 2021, we closed the sale of $460 million of convertible notes in a private placement to qualified institutional buyers, resulting in net proceeds to us of $448.5 million after deducting initial purchasers' discounts of the offering. The 2021 Notes do not bear regular interest, and the principal amount does not accrete. The 2021 Notes will mature on March 15, 2026, unless earlier repurchased, redeemed, or converted in accordance with their terms. No sinking fund is provided for the 2021 Notes.

The initial conversion rate of the 2021 Notes is 7.9365 shares of our common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $126.00 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events. In addition, upon the occurrence of a make-whole fundamental change (as defined in the indenture governing the 2021 Notes) or upon a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder that elects to convert its convertible notes in connection with such make-whole fundamental change or notice of redemption, as the case may be.

Prior to the close of business on the business day immediately preceding December 15, 2025, the 2021 Notes are convertible at the option of the holders only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business-day period after any five consecutive trading-day period (the measurement period) in which the trading price per $1,000 principal amount of the notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; (3) upon the occurrence of specified corporate events; or (4) upon redemption by us. On or after December 15, 2025, until the close of business on the second scheduled trading day immediately preceding March 15, 2026, holders of the 2021 Notes may convert all or a portion of their notes at any time. Upon conversion, we will pay cash up to the aggregate principal amount to be converted and pay and/or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at our election, in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the notes being converted.

Subsequent to March 20, 2024 and prior to December 15, 2025, we may redeem for cash all or part of the 2021 Notes, at our option, if the last reported sales price of common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related notice of the redemption. The redemption price of each convertible note to be redeemed will be the principal amount of such note, plus accrued and unpaid special interest, if any. Upon the occurrence of a fundamental change (as defined in the indenture governing the convertible notes), subject to a limited exception described in the indenture governing the convertible notes, holders may require us to repurchase all or a portion of their notes for cash at a price equal to plus accrued and unpaid special interest to, but not including, the fundamental change repurchase date (as defined in the indenture governing the convertible notes).

12
The 2021 Notes are senior unsecured obligations and rank equally in right of payment with all of our existing and future unsubordinated debt and senior in right of payment to any future debt that is expressly subordinated in right of payment to the convertible notes. The convertible notes will be effectively subordinated to any of our existing and future secured debt to the extent of the assets securing such indebtedness. The convertible notes will be structurally subordinated to all existing debt and any future debt and any other liabilities of our subsidiaries.

2024 Notes
On June 21, 2024, we closed the sale of $805 million of convertible notes in a private placement to qualified institutional buyers, resulting in net proceeds to us of $784 million after deducting initial purchasers' discounts of the offering. The 2024 Notes accrue interest at a rate of 1.375% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2025. The 2024 Notes mature on July 15, 2030, unless earlier repurchased, redeemed, or converted in accordance with their terms.

The initial conversion rate of the 2024 Notes is 7.6199 shares of our common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $131.24 per share. The conversion rate of the notes is subject to adjustment upon the occurrence of certain specified events. In addition, upon the occurrence of a make-whole fundamental change (as defined in the indenture governing the convertible notes) or upon a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder that elects to convert its notes in connection with such make-whole fundamental change or notice of redemption, as the case may be.

Prior to the close of business on the business day immediately preceding April 15, 2030, the 2024 Notes are convertible at the option of the holders only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2024 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business-day period after any five consecutive trading-day period (the measurement period) in which the trading price per $1,000 principal amount of the notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; (3) upon the occurrence of specified corporate events; or (4) upon redemption by us. On or after April 15, 2030, until the close of business on the second scheduled trading day immediately preceding July 15, 2030, holders of the notes may convert all or a portion of their notes at any time. Upon conversion, we will pay cash up to the aggregate principal amount of the notes to be converted and pay and/or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at our election, in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the notes being converted.

Subsequent to July 20, 2028 and prior to April 15, 2030, we may redeem for cash all or part of the 2024 Notes, at our option, if the last reported sales price of common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related notice of the redemption. However, we may not redeem less than all of the outstanding notes unless at least $100.0 million aggregate principal amount of notes are outstanding and not called for redemption as of the time we send related redemption notices. The redemption price of each note to be redeemed will be the principal amount of such note, plus accrued and unpaid special interest, if any. Upon the occurrence of a fundamental change (as defined in the indenture governing the 2024 Notes), subject to a limited exception described in the indenture governing the notes, holders may require us to repurchase all or a portion of their notes for cash at a price equal to plus accrued and unpaid special interest to, but not including, the fundamental change repurchase date (as defined in the indenture governing the 2024 Notes).

The 2024 Notes are senior unsecured obligations and rank equally in right of payment with all of our existing and future unsubordinated debt and senior in right of payment to any future debt that is expressly subordinated in right of payment to the notes. The notes will be effectively subordinated to any of our existing and future secured debt to the extent of the assets securing such indebtedness. The notes will be structurally subordinated to all existing debt and any future debt and any other liabilities of our subsidiaries.

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Debt Maturities
The amount of required minimum principal payments on our long-term debt in aggregate over the next five years is as follows:
Year Ending December 31,Minimum Payments
In thousands
2024 (amount remaining at September 30, 2024)$— 
2025— 
2026460,000 
2027— 
2028— 
Thereafter805,000 
Total minimum payments on debt$1,265,000 

Note 7:    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 13: Shareholders' Equity and Note 14: Fair Value of Financial Instruments for additional disclosures on our derivative instruments.

Derivatives Not Designated as Hedging Relationships
We are 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 recognized within other income (expense) in our Consolidated Statements of Operations. We enter into monthly foreign exchange forward contracts, which are not designated for hedge accounting, with the intent to reduce earnings volatility associated with currency exposures. As of September 30, 2024, a total of 35 contracts were offsetting our exposures from the euro, pound sterling, Indonesian rupiah, Canadian dollar, Australian dollar, and various other currencies, with notional amounts ranging from $112,600 to $40.6 million.

We will continue to monitor and assess our interest rate and foreign exchange risk and may institute additional derivative instruments to manage such risk in the future.

Note 8:    Defined Benefit Pension Plans

We sponsor both funded and unfunded defined benefit pension plans offering death and disability, retirement, and special termination benefits for certain of our international employees, primarily in Germany, France, India, and Indonesia. The defined benefit obligation is calculated annually by using the projected unit credit method. The measurement date for the pension plans was December 31, 2023.

Amounts recognized on the Consolidated Balance Sheets consist of:
In thousandsSeptember 30, 2024December 31, 2023
Assets
Plan assets in other long-term assets$63 $80 
Liabilities
Current portion of pension benefit obligation in wages and benefits payable$4,378 $3,623 
Long-term portion of pension benefit obligation64,886 63,887 
Pension benefit obligation, net$69,201 $67,430 

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.

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Net periodic pension benefit cost for our plans include the following components:
Three Months Ended September 30,Nine Months Ended September 30,
In thousands2024202320242023
Service cost$621 $605 $1,915 $1,845 
Interest cost687 720 2,044 2,153 
Expected return on plan assets(74)(88)(220)(264)
Amortization of prior service costs34 15 101 45 
Amortization of actuarial net loss(85)(122)(255)(365)
Curtailment— — (585)— 
Net periodic benefit cost$1,183 $1,130 $3,000 $3,414 

The components of net periodic benefit cost, other than the service cost component, are included in total other income (expense) on the Consolidated Statements of Operations.

Note 9:    Stock-Based Compensation

We grant stock-based compensation awards, including restricted stock units, phantom stock, and unrestricted stock units, under the Second Amended and Restated 2010 Stock Incentive Plan (Stock Incentive Plan). Prior to December 31, 2020, stock options were also granted as part of the stock-based compensation awards. In the Stock Incentive Plan, we have 13,991,273 shares of common stock authorized for issuance subject to stock splits, dividends, and other similar events, and at September 30, 2024, 4,590,911 shares were available for grant. We issue new shares of common stock upon the exercise of stock options or when vesting conditions on restricted stock units are fully satisfied. These shares are subject to a fungible share provision such that the authorized share available for grant under the Plan is reduced by (i) one share for every one share subject to a stock option or share appreciation right granted and (ii) 1.7 shares for every one share of common stock that was subject to an award other than an option or share appreciation right.

We also award phantom stock units, which are settled in cash upon vesting and accounted for as liability-based awards, with no impact to the shares available for grant.

In addition, we maintain the Employee Stock Purchase Plan (ESPP), for which 486,098 shares of common stock were available for future issuance at September 30, 2024.

ESPP activity and stock-based grants other than stock options and restricted stock units were not significant for the three and nine months ended September 30, 2024 and 2023.

Stock-Based Compensation Expense
Total stock-based compensation expense and the related tax benefit were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
In thousands2024202320242023
Stock options$— $18 $— $98 
Restricted stock units9,886 6,581 31,059 19,680 
Unrestricted stock awards336 238 1,008 753 
Phantom stock units1,616 1,190 4,378 3,114 
Total stock-based compensation$11,838 $8,027 $36,445 $23,645 
Related tax benefit$2,503 $1,686 $7,853 $5,059 

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Stock Options
A summary of our stock option activity is as follows:
SharesWeighted
Average Exercise
Price per Share		Weighted Average
Remaining
Contractual Life		Aggregate
Intrinsic Value		Weighted
Average Grant
Date Fair Value
In thousandsYearsIn thousands
Outstanding, January 1, 2023381 $60.63 4.8$1,892 
Granted— — $— 
Exercised(6)56.83 88 
Forfeited— — 
Canceled— — 
Outstanding, September 30, 2023375 $60.69 4.1$3,316 
Outstanding, January 1, 2024363 $61.36 4.0$5,886 
Granted— — $— 
Exercised(26)54.19 935 
Forfeited— — 
Canceled— — 
Outstanding, September 30, 2024337 $61.92 3.2$15,111 
Exercisable, September 30, 2024337 $61.92 3.2$15,111 

At September 30, 2024, all stock-based compensation expense related to nonvested stock options has been recognized.

Restricted Stock Units
The following table summarizes restricted stock unit activity:
In thousands, except fair valueNumber of
Restricted Stock Units		Weighted
Average Grant
Date Fair Value		Aggregate
Intrinsic Value
Outstanding, January 1, 2023528 
Granted459 $56.62 
Released (1)
(235)$739 
Forfeited(25)
Outstanding, September 30, 2023727 
Outstanding, January 1, 2024751 $58.89 
Granted415 76.24 
Released (1)
(405)62.51 $33,372 
Forfeited(21)64.45 
Outstanding, September 30, 2024740 67.13 
Vested but not released, September 30, 202417 $1,841 

(1) Shares released is presented as gross shares and does not reflect shares withheld by us for employee payroll tax obligations.

At September 30, 2024, total unrecognized compensation expense on restricted stock units was $51.9 million, which is expected to be recognized over a weighted average period of approximately 1.7 years.

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The weighted average assumptions used to estimate the fair value of performance-based restricted stock units granted with a service and market condition and the resulting weighted average fair value are as follows:
Nine Months Ended September 30,
20242023
Expected volatility45.7 %50.0 %
Risk-free interest rate4.4 %4.6 %
Expected term (years)2.92.2
Weighted average fair value$83.26 $59.52 

Note 10: Income Taxes

We determine the interim tax benefit (provision) by applying an estimate of the annual effective tax rate to the year-to-date pretax book income (loss) and adjusting for discrete items during the reporting period, if any. Tax jurisdictions with losses for which tax benefits cannot be realized, as well as significant unusual or infrequently occurring items that are separately reported, are excluded from the annual effective tax rate.

Our tax rate for the three and nine months ended September 30, 2024 of 4% and 15%, respectively, differed from the federal statutory rate of 21% due to the impact of valuation allowances on deferred tax assets, the forecasted mix of earnings in domestic and international jurisdictions, U.S. taxation of foreign earnings including GILTI (Global Intangible Low-Taxed Income) tax, net of Section 250 deduction (largely driven by research and development capitalization), Subpart F income, a benefit related to stock-based compensation, tax credits, state taxes, and uncertain tax positions. During the quarter, approximately $14 million in discrete tax benefits were recorded related to the favorable resolution of a foreign tax audit.

Our tax rate for the three and nine months ended September 30, 2023 of 28% and 31%, respectively, differed from the federal statutory rate of 21% due to the impact of valuation allowances on deferred tax assets, the forecasted mix of earnings in domestic and international jurisdictions, U.S. taxation of foreign earnings including GILTI (Global Intangible Low-Taxed Income) tax, net of Section 250 deduction (largely driven by research and development capitalization), Subpart F income, an expense related to stock-based compensation, tax credits, and uncertain tax positions.

Beginning January 1, 2022, the Tax Cuts and Jobs Act of 2017 eliminated the option to deduct research and development expenditures currently and requires taxpayers to capitalize and amortize them over five or fifteen years, dependent upon the geography in which the expenditures are incurred. Although Congress has considered legislation that would defer, modify, or repeal the capitalization and amortization requirement, as of quarter end no such deferral has been passed. The income tax provision has been prepared according to currently enacted tax legislation, including the effect of guidance issued in December 2023 that provided clarity regarding research providers and recipients.

In August 2022, the Inflation Reduction Act was signed into law, which made a number of changes to the Internal Revenue Code, including adding a 1% excise tax on stock buybacks by publicly traded corporations and a 15% minimum tax on adjusted financial statement income of certain large companies. We are subject to the new 1% excise tax beginning January 1, 2023, but the amount will vary depending upon various factors. The 15% minimum tax only applies to corporations with average book income in excess of $1 billion, therefore it is not currently applicable.

The Organization for Economic Cooperation and Development (OECD) guidance under the Base Erosion and Profit Shifting (BEPS) initiative aims to minimize perceived tax abuses and modernize global tax policy, including the implementation of a global minimum effective tax rate of 15%. In December 2022, the Council of the European Union adopted OECD Pillar 2 for implementation by European Union member states by December 31, 2023. Legislation is in various stages of adoption, from formal legislative proposals to passage into law, in most countries where Itron has significant operations, and is expected to take effect for calendar year 2024. The OECD continues to release more guidance on these rules and framework and we are evaluating the impact to our financial position. These enactments or amendments could adversely affect our tax rate and ultimately result in a negative impact on our operating results and cash flows. Based upon forecast calculations for calendar year 2024, the Company expects to meet the safe harbors in most jurisdictions, and the remaining top-up tax is forecasted to be immaterial.
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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 amounts recognized were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
In thousands2024202320242023
Net interest and penalties expense$(5,508)$592 $(4,020)$1,398 

Accrued interest and penalties recognized were as follows:
In thousandsSeptember 30, 2024December 31, 2023
Accrued interest$5,884 $9,794 
Accrued penalties369 466 

Unrecognized tax benefits related to uncertain tax positions and the amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate were as follows:
In thousandsSeptember 30, 2024December 31, 2023
Unrecognized tax benefits related to uncertain tax positions$115,220 $130,067 
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate
115,210 129,591 

At September 30, 2024, we are under examination by certain tax authorities. As a result of the favorable resolution of a foreign tax audit, a reduction in uncertain tax positions of approximately $14 million was recorded this quarter. 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 cash flows.

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 recognized 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 various jurisdictions. The material jurisdictions where we are subject to examination include, among others, the United States, France, Germany, India, Italy, Indonesia, and the United Kingdom.

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Note 11:    Commitments and Contingencies

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 our 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 were as follows:
In thousandsSeptember 30, 2024December 31, 2023
Credit facility
Multicurrency revolving line of credit$500,000 $500,000 
Standby LOCs issued and outstanding(46,756)(59,059)
Net available for additional borrowings under the multicurrency revolving line of credit$453,244 $440,941 
Net available for additional standby LOCs under sub-facility$253,244 $240,941 
Unsecured multicurrency revolving lines of credit with various financial institutions
Multicurrency revolving lines of credit$93,562 $84,318