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Segment Information
 6 Months Ended
Jun. 30, 2013
Segment Information

NOTE 9 – SEGMENT INFORMATION

The Company has three operating segments. Business units are organized under each segment because they share certain characteristics, such as technology, marketing, distribution, and product application that create long-term synergies. The principal activities of the Company’s operating segments are as follows:

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. The Group primarily sells to municipal and government customers, as well as industrial contractors. Products are sold under the Elgin®, Vactor®, Guzzler®, and Jetstream® brand names. The Group primarily manufactures its vehicles and equipment in the U.S.

Safety and Security Systems – The 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 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 operates manufacturing facilities in Finland and sells globally under the Bronto Skylift® brand name.

 

Corporate contains those items that are not included in our three 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 were not material for the three and six months ended June 30, 2013 and 2012. 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 segment operating income, neither corporate nor interest expenses are included. 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 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The results for the interim periods are not necessarily indicative of results for a full year.

The following tables summarize the Company’s net sales, operating income, and total assets by segment:

 

     Three Months Ended
June 30,		     Six Months Ended
June 30,		  
(in millions)    2013     2012     2013     2012  

Net sales:

         

Environmental Solutions

    $ 128.3      $ 112.0      $ 240.0      $ 220.0   

Safety and Security Systems

      56.8        59.1        115.3        115.4   

Fire Rescue

      37.5        33.3        67.1        65.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total net sales

    $ 222.6      $ 204.4      $ 422.4      $ 400.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income:

         

Environmental Solutions

    $ 15.8      $ 12.5      $ 28.5      $ 24.5   

Safety and Security Systems

      3.6        6.3        9.1        10.9   

Fire Rescue

      3.4        1.7        4.1        2.5   

Corporate and eliminations

      (4.6 )      (4.7 )      (11.4 )      (11.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating income

      18.2        15.8        30.3        26.1   

Interest expense

      1.7        5.4        6.2        10.5   

Debt settlement charges

      —          —          8.7        1.6   

Other (income) expense, net

      0.1        0.5        (0.1 )      0.3   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 16.4      $ 9.9      $ 15.5      $ 13.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(in millions)    As of
June 30,
2013		      As of
December 31,
2012		  

Total assets:

      

Environmental Solutions

    $ 238.3       $ 237.5   

Safety and Security Systems

      201.5         209.5   

Fire Rescue

      122.1         122.5   

Corporate and eliminations

      78.8         41.7   
  

 

 

     

 

 

  

Total assets of continuing operations

      640.7         611.2   
  

 

 

     

 

 

  

Total assets of discontinued operations

      9.3         2.0   
  

 

 

     

 

 

  

Total assets

    $ 650.0       $ 613.2