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Segment Information
12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION
The Company has two operating segments, and the Company’s reportable segments are consistent with those operating segments. 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:
Environmental Solutions — Our Environmental Solutions Group is a leading manufacturer and supplier of a full range of street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks and high-performance waterblasting equipment. The Group manufactures vehicles and equipment in the U.S. and Canada that are sold under the Elgin®, Vactor®, Guzzler®, WestechTM and Jetstream® brand names. Products are sold to both municipal and industrial customers either through a dealer network or direct sales to service customers generally depending on the type and geographic location of the customer. The acquisition of JJE extends the Environmental Solutions Group’s existing sales channel and increases the number of service centers through which its parts, service and rental offerings can be provided to current and potential customers. The acquisition also broadens the Environmental Solutions Group’s product offerings to include other products, such as refuse and recycling collection vehicles, camera systems, ice-making equipment and snow-removal equipment.
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 and industrial communications, as well as command and municipal networked security. Specific products include vehicle lightbars and sirens, public warning sirens, general alarm systems, public address systems and public safety software. Products are sold under the Federal SignalTM, Federal Signal VAMA® and Victor® brand names. The Group operates manufacturing facilities in the U.S., Europe and South Africa.
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, deferred tax assets and fixed assets. The accounting policies of each operating segment are the same as those described in Note 1 – Summary of Significant Accounting Policies.
Revenues attributed to customers located outside of the U.S. aggregated $197.7 million in 2016, $191.2 million in 2015 and $198.5 million in 2014, of which sales exported from the U.S. aggregated $88.0 million, $146.2 million and $152.5 million, respectively.
As discussed in Note 2 – Acquisitions, the assets and liabilities of JJE and Westech have been consolidated into the Consolidated Balance Sheet as of December 31, 2016, while the post-acquisition results of operations have been included in the Consolidated Statements of Operations subsequent to their respective closing dates in 2016. JJE and Westech are included within the Environmental Solutions Group.
The following tables summarize the Company’s continuing operations by segment, including net sales, operating income, depreciation and amortization, total assets and capital expenditures: 
(in millions)
2016
 
2015
 
2014
Net sales:
 
 
 
 
 
Environmental Solutions
$
490.7

 
$
534.1

 
$
536.6

Safety and Security Systems
217.2

 
233.9

 
242.5

Total net sales
$
707.9

 
$
768.0

 
$
779.1

Operating income:
 
 
 
 
 
Environmental Solutions
$
54.1

 
$
96.9

 
$
81.9

Safety and Security Systems
27.0

 
32.3

 
32.1

Corporate and eliminations
(23.4
)
 
(26.0
)
 
(25.3
)
Total operating income
57.7

 
103.2

 
88.7

Interest expense
1.9

 
2.3

 
3.6

Debt settlement charges
0.3

 

 

Other (income) expense, net
(1.3
)
 
1.0

 
1.7

Income before income taxes
$
56.8

 
$
99.9

 
$
83.4

(in millions)
2016
 
2015
 
2014
Depreciation and amortization:
 
 
 
 
 
Environmental Solutions
$
14.5

 
$
7.3

 
$
6.8

Safety and Security Systems
4.4

 
4.8

 
4.5

Corporate
0.2

 
0.2

 
0.2

Total depreciation and amortization
$
19.1

 
$
12.3

 
$
11.5

(in millions)
2016
 
2015
 
2014
Total assets:
 
 
 
 
 
Environmental Solutions
$
393.3

 
$
250.6

 
$
254.2

Safety and Security Systems
200.1

 
209.6

 
208.3

Corporate and eliminations
48.7

 
99.2

 
69.0

Total assets of continuing operations
642.1

 
559.4

 
531.5

Total assets of discontinued operations
1.1

 
107.1

 
127.2

Total assets
$
643.2

 
$
666.5

 
$
658.7

(in millions)
2016
 
2015
 
2014
Capital expenditures:
 
 
 
 
 
Environmental Solutions
$
3.7

 
$
4.5

 
$
6.2

Safety and Security Systems
1.8

 
3.9

 
6.3

Corporate
0.6

 
1.2

 
1.2

Total capital expenditures
$
6.1

 
$
9.6

 
$
13.7


The following table summarizes net sales by geographic region based on the location of the end customer:
(in millions)
2016
 
2015
 
2014
Net sales:
 
 
 
 
 
U.S.
$
510.2

 
$
576.8

 
$
580.6

Canada
111.5

 
75.9

 
67.1

Europe/Other
86.2

 
115.3

 
131.4

Total net sales
$
707.9

 
$
768.0

 
$
779.1


The following table summarizes long-lived assets (excluding deferred tax and intangible assets) by geographic region based on the location of the Company’s subsidiaries:
(in millions)
2016
 
2015
 
2014
Long-lived assets (excluding deferred tax and intangible assets):
 
 
 
 
 
U.S.
$
78.7

 
$
53.3

 
$
53.5

Canada
46.1

 

 

Europe
2.5

 
2.6

 
2.5

Other
0.3

 
0.3

 
0.4

Total long-lived assets
$
127.6

 
$
56.2

 
$
56.4