On February 23, 2023, our Board of Directors approved a restructuring plan (the 2023 Projects). The 2023 Projects include activities that continue Itron's efforts to optimize its global supply chain and manufacturing operations, sales and marketing organizations, and other overhead. These projects were substantially complete as of March 31, 2025.

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


In thousands	Total Expected Costs at June 30, 2025		Costs Recognized in Prior Periods		Adjustments Recognized During the Six Months Ended June 30, 2025		Expected Remaining Costs to be Recognized at June 30, 2025
Employee severance costs	$	40,538	$	42,078	$	(1,540)	$	—
Asset impairments & net loss (gain) on sale or disposal	1,124		1,149		(25)		—
Other restructuring costs	10,406		6,947		2,249		1,210
Total	$	52,068	$	50,174	$	684	$	1,210

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2023 Projects during the six months ended June 30, 2025:


In thousands	Accrued Employee Severance		Asset Impairments & Net Loss (Gain) on Sale or Disposal		Other Accrued Costs		Total
Beginning balance, January 1, 2025	$	38,115	$	—	$	3,216	$	41,331
Costs charged to expense	(1,540)		(25)		2,249		684
Cash payments	(13,011)		—		(1,531)		(14,542)
Cash receipts	—		30		—		30
Net assets disposed and impaired	—		(5)		—		(5)
Effect of change in exchange rates	3,544		—		86		3,630
Ending balance, June 30, 2025	$	27,108	$	—	$	4,020	$	31,128

Asset impairments are determined at the asset group level. Revenues and net operating income from the activities we have exited or will exit under the restructuring projects are not material to our operating segments or consolidated results.

Certain of Itron's employees are represented by unions or works councils, which requires consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of planned savings in certain jurisdictions.

Other restructuring costs include expenses for employee relocation, professional fees associated with employee severance, costs to exit the facilities once the operations in those facilities have ceased, and other costs associated with the liquidation of any affected legal entities. Costs associated with restructuring activities are generally presented in the Consolidated Statements of Operations as restructuring, except for certain costs associated with inventory write-downs, which are classified within cost of revenues, and accelerated depreciation expense, which is recognized according to the use of the asset. Restructuring expense is recognized within the Corporate unallocated segment and does not impact the results of our operating segments.

The current portions of restructuring liabilities were $21.3 million and $24.3 million as of June 30, 2025 and December 31, 2024 and are classified within other current liabilities on the Consolidated Balance Sheets. The long-term portions of restructuring liabilities were $9.8 million and $17.0 million as of June 30, 2025 and December 31, 2024. The long-term portions of restructuring liabilities are classified within other long-term obligations on the Consolidated Balance Sheets and include severance accruals and facility exit costs.