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Segment And Related Information
 12 Months Ended
Dec. 31, 2012
Segment And Related Information

NOTE 14 — SEGMENT AND RELATED INFORMATION

The Company has three 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 11.

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 use 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 vehicle lightbars and sirens, public warning sirens and public safety software. Products are primarily sold under the Federal SignalTM , Federal Signal VAMATM, Target Tech®, and VictorTM 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. This Group 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.

Corporate contains those items that are not included in our 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 $310.5 million in 2012, $268.2 million in 2011 and $258.5 million in 2010, of which sales exported from the U.S. aggregated $127.9 million, $126.1 million and $112.4 million, respectively.

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):

 

     2012     2011     2010  

Net sales

       

Safety and Security Systems

    $ 240.3      $ 221.4      $ 214.5   

Fire Rescue

      135.1        109.5        108.8   

Environmental Solutions

      427.8        357.8        309.8   
  

 

 

    

 

 

    

 

 

  

Total net sales

    $ 803.2      $ 688.7      $ 633.1   
  

 

 

    

 

 

    

 

 

  

Operating income

       

Safety and Security Systems

    $ 27.9      $ 21.5      $ 23.7   

Fire Rescue

      8.9        6.6        9.4   

Environmental Solutions

      42.0        24.5        17.9   

Corporate expense

      (27.3 )      (19.4 )      (38.6 ) 
  

 

 

    

 

 

    

 

 

  

Total operating income

      51.5        33.2        12.4   

Interest expense

      21.4        16.4        10.2   

Debt settlement charges

      3.5        -           -      

Other expenses

      0.7        0.2        1.2   
  

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 25.9      $ 16.6      $ 1.0   
  

 

 

    

 

 

    

 

 

  

Depreciation and amortization

       

Safety and Security Systems

    $ 4.3      $ 4.4      $ 3.7   

Fire Rescue

      2.6        2.5        2.2   

Environmental Solutions

      5.4        5.2        4.7   

Corporate

      0.9        0.9        0.8   
  

 

 

    

 

 

    

 

 

  

Total depreciation and amortization

    $ 13.2      $ 13.0      $ 11.4   
  

 

 

    

 

 

    

 

 

  

 

     2012      2011  

Identifiable assets

      

Safety and Security Systems

    $ 209.5       $ 200.3   

Fire Rescue

      122.5         117.3   

Environmental Solutions

      237.5         231.7   

Corporate

      41.7         24.1   
  

 

 

     

 

 

  

Total assets of continuing operations

      611.2         573.4   

Assets of discontinued operations

      2.0         133.8   
  

 

 

     

 

 

  

Total identifiable assets

    $ 613.2       $ 706.7   
  

 

 

     

 

 

  

 

     2012      2011      2010  

Capital expenditures

         

Safety and Security Systems

    $ 2.7       $ 3.6       $ 3.0   

Fire Rescue

      3.1         2.9         1.1   

Environmental Solutions

      6.4         6.7         6.5   

Corporate

      0.8         0.3         0.7   
  

 

 

     

 

 

     

 

 

  

Total capital expenditures

    $ 13.0       $ 13.5       $ 11.3   
  

 

 

     

 

 

     

 

 

  

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

 

     2012      2011      2010  

Net sales

         

United States

    $ 492.7       $ 420.5       $ 374.6   

Europe/Other

      259.0         229.0         220.0   

Canada

      51.5         39.2         38.5   
  

 

 

     

 

 

     

 

 

  
   $ 803.2       $ 688.7       $ 633.1   
  

 

 

     

 

 

     

 

 

  

Long-lived assets (excluding intangibles)

         

United States

    $ 54.5       $ 45.4      

Europe

      16.8         16.0      

Other

      0.5         0.6      
  

 

 

     

 

 

     
   $ 71.8       $ 62.0