XML 36 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment and Related Information
 12 Months Ended
Dec. 31, 2011
Segment and Related Information [Abstract]  
SEGMENT AND RELATED INFORMATION

NOTE 16 — SEGMENT AND RELATED INFORMATION

The Company has four continuing operating segments as defined under ASC Topic 280, Segment Reporting. Business units are organized under each segment because they share certain characteristics, such as technology, marketing, distribution and product application, which create long-term synergies. The principal activities of the Company’s operating segments are as follows:

Information regarding the Company’s discontinued operations is included in Note 13 — Discontinued Operations.

Safety and Security Systems — Our Safety and Security Systems Group is a leading manufacturer and supplier of comprehensive systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities and industrial sites used to protect people and property. Offerings include systems for campus and community alerting, emergency vehicles, first responder interoperable communications, industrial communications and command and municipal networked security. Specific products include lightbars and sirens, public warning sirens and public safety software. Products are primarily sold under the Federal SignalTM , Federal Signal VAMATM , Target Tech®, and Victor TM brand names. The Group operates manufacturing facilities in North America, Europe, and South Africa.

Fire Rescue — The Fire Rescue Group manufactures articulated and telescopic aerial platforms for rescue and fire fighting and for maintenance purposes. This Group sells to municipal and industrial fire services, civil defense authorities, rental companies, electric utilities and industrial customers. The Group manufactures in Finland and sells globally under the Bronto Skylift® brand name.

Environmental Solutions — The Environmental Solutions Group manufactures a variety of self-propelled street cleaning vehicles, vacuum loader vehicles, municipal catch basin/sewer cleaning vacuum trucks, and waterblasting equipment. Environmental Solutions sells primarily to municipal and government customers and industrial contractors. Products are sold under the Elgin®, Vactor ®, Guzzler® and Jetstream ® brand names. The Group primarily manufactures its vehicles and equipment in the United States.

Federal Signal Technologies — Our Federal Signal Technologies Group is a provider of technologies and solutions to the intelligent transportation systems and public safety markets and other applications. These products and solutions provide end users with the tools needed to automate data collection and analysis, transaction processing and asset tracking. FSTech provides technology platforms and services to customers in the areas of radio frequency identification systems, transaction processing vehicle classification, electronic toll collection, automated license plate recognition, electronic vehicle registration, parking and access control, cashless payment solutions, congestion charging, traffic management, site security solutions and supply chain systems. Products are sold under the PIPS TM, Idris ®, SiritTM and VESystemsTM brand names. The Group operates manufacturing facilities in North America and Europe.

Corporate contains those items that are not included in our other operating segments.

Net sales by operating segment reflect sales of products and services to external customers, as reported in the Company’s consolidated statements of operations. Intersegment sales are insignificant. The Company evaluates performance based on operating income of the respective segment. Operating income includes all revenues, costs and expenses directly related to the segment involved. In determining operating segment income, neither corporate nor interest expenses are included. Operating segment depreciation expense, identifiable assets and capital expenditures relate to those assets that are utilized by the respective operating segment. Corporate assets consist principally of cash and cash equivalents, short-term investments, notes and other receivables and fixed assets. The accounting policies of each operating segment are the same as those described in the summary of significant accounting policies.

Revenues attributed to customers located outside of the U.S. aggregated $296.0 million in 2011, $285.8 million in 2010, and $333.4 million in 2009, of which sales exported from the U.S. aggregated $126.1 million, $112.4 million, and $113.5 million, respectively.

The Company invests in research to support development of new products and the enhancement of existing products and services. The Company believes this investment is important to maintain and/or enhance its leadership position in key markets. Expenditures for research and development by the Company were approximately $19.7 million in 2011, $18.8 million in 2010, and $19.0 million in 2009.

 

A summary of the Company’s continuing operations by segment for each of the three years in the period ended December 31 is as follows ($ in millions):

 

                         
    2011     2010     2009  

Net sales

                        

Safety and Security Systems

   $ 221.4     $ 214.5     $ 225.8  

Fire Rescue

     109.5       108.8       160.0  

Environmental Solutions

     357.8       309.8       299.6  

Federal Signal Technologies

     106.9       93.4       65.0  
   

 

 

    

 

 

    

 

 

  

Total net sales

   $ 795.6     $ 726.5     $ 750.4  
   

 

 

    

 

 

    

 

 

  

Operating income (loss)

                        

Safety and Security Systems

   $ 21.5     $ 23.7     $ 24.1  

Fire Rescue

     6.6       9.4       19.2  

Environmental Solutions

     24.5       17.9       15.1  

Federal Signal Technologies

     (29.5 )      (89.3 )      6.0  

Corporate expense

     (19.8 )      (38.6 )      (28.6 ) 
   

 

 

    

 

 

    

 

 

  

Total operating (loss) income

     3.3       (76.9 )      35.8  

Interest expense

     (16.4 )      (10.3 )      (11.4 ) 

Gain (loss) on investment in joint venture (Environmental Solutions Segment)

     -         0.1       1.2  

Other (expense)

     (0.2 )      (1.3 )      (0.5 ) 
   

 

 

    

 

 

    

 

 

  

Income (loss) before income taxes

   $ (13.3 )    $ (88.4 )    $ 25.1  
   

 

 

    

 

 

    

 

 

  

Depreciation and amortization

                        

Safety and Security Systems

   $ 4.4     $ 3.7     $ 3.1  

Fire Rescue

     2.5       2.2       1.9  

Environmental Solutions

     5.2       4.7       4.5  

Federal Signal Technologies

     9.5       7.8       4.4  

Corporate

     0.9       0.8       0.8  
   

 

 

    

 

 

    

 

 

  

Total depreciation and amortization

   $ 22.5     $ 19.2     $ 14.7  
   

 

 

    

 

 

    

 

 

  

 

                 
    2011     2010  

Identifiable assets

                

Safety and Security Systems

   $ 200.3     $ 246.9  

Fire Rescue

     117.3       123.1  

Environmental Solutions

     231.7       240.6  

Federal Signal Technologies

     134.7       104.8  

Corporate

     19.2       46.0  
   

 

 

    

 

 

  

Total assets of continuing operations

     703.2       761.4  

Assets of discontinued operations

     3.5       3.1  
   

 

 

    

 

 

  

Total identifiable assets

   $ 706.7     $ 764.5  
   

 

 

    

 

 

  

 

                         
    2011     2010     2009  

Capital expenditures

                        

Safety and Security Systems

   $ 3.6     $ 3.0     $ 2.6  

Fire Rescue

     2.9       1.1       2.2  

Environmental Solutions

     6.7       6.5       8.9  

Federal Signal Technologies

     2.2       1.5       0.4  

Corporate

     0.3       0.7       0.3  
   

 

 

    

 

 

    

 

 

  

Total capital expenditures

   $ 15.7     $ 12.8     $ 14.4  
   

 

 

    

 

 

    

 

 

  

 

The segment information provided below is classified based on geographic location of the Company’s subsidiaries ($ in millions):

 

                         
    2011     2010     2009  

Net sales

                        

United States

   $ 499.6     $ 440.7     $ 417.0  

Europe

     255.0       244.7       299.2  

Canada

     41.0       41.1       34.2  
   

 

 

    

 

 

    

 

 

  
    $ 795.6     $ 726.5     $ 750.4  
   

 

 

    

 

 

    

 

 

  

Long-lived assets (including intangibles)

                        

United States

   $ 253.1     $ 231.0          

Europe

     162.3       202.1          

Canada

     11.9       27.1          

Other

     1.6       1.2          
   

 

 

    

 

 

          
    $ 428.9     $ 461.4          
   

 

 

    

 

 

          

Long-lived assets (excluding intangibles)

                        

United States

   $ 47.8     $ 49.8          

Europe

     15.7       16.3          

Other

     0.6       0.5          
   

 

 

    

 

 

          
    $ 64.1     $ 66.6