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Segment Information | 12 Months Ended
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Dec. 31, 2017
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®, Westech TM 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 resurfacing equipment and snow-removal equipment. In addition, as discussed in Note 2 – Acquisitions, on June 2, 2017, the Company completed the acquisition of TBEI. TBEI is a leading U.S. manufacturer of dump truck bodies and trailers serving maintenance and infrastructure end-markets. Products are sold to both municipal and industrial customers under the Ox Bodies®, Crysteel®, J-Craft®, Duraclass®, Rugby® and Travis® brand names, either through a dealer network or direct sales to service customers generally depending on the type and geographic location of the customer. The Company expects that the acquisition will enable it to strengthen the Environmental Solutions Group’s market position as a specialty vehicle manufacturer in maintenance and infrastructure end-markets, leveraging its expertise in building chassis-based vehicles. As discussed in Note 2 – Acquisitions, the assets and liabilities of TBEI have been consolidated into the Consolidated Balance Sheet as of December 31, 2017, while the post-acquisition results of operations have been included in the Consolidated Statements of Operations, within the Environmental Solutions Group, subsequent to the June 2, 2017 closing date. We are in the process of determining the impact, if any, that the TBEI acquisition may have on our reportable segments. 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 Signal TM, 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 and amortization 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 $224.4 million in 2017, $197.7 million in 2016 and $191.2 million in 2015, of which sales exported from the U.S. aggregated $58.0 million, $88.0 million and $146.2 million, respectively. 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) | 2017 |  | 2016 |  | 2015
Net sales: |  |  |  |  |
Environmental Solutions | $ | 692.6 |  |  | $ | 490.7 |  |  | $ | 534.1 |
Safety and Security Systems | 205.9 |  |  | 217.2 |  |  | 233.9 |
Total net sales | $ | 898.5 |  |  | $ | 707.9 |  |  | $ | 768.0 |
Operating income: |  |  |  |  |
Environmental Solutions | $ | 72.4 |  |  | $ | 54.1 |  |  | $ | 96.9 |
Safety and Security Systems | 27.0 |  |  | 27.0 |  |  | 32.3 |
Corporate and eliminations (a) | (32.3 | ) |  | (23.4 | ) |  | (26.0 | )
Total operating income | 67.1 |  |  | 57.7 |  |  | 103.2 |
Interest expense | 7.3 |  |  | 1.9 |  |  | 2.3 |
Debt settlement charges | — |  |  | 0.3 |  |  | — |
Other (income) expense, net | (1.2 | ) |  | (1.3 | ) |  | 1.0 |
Income before income taxes | $ | 61.0 |  |  | $ | 56.8 |  |  | $ | 99.9 |
(a) | Corporate operating expenses in the year ended December 31, 2017 include pension settlement charges of $6.1 million, as disclosed in Note 9 – Pensions.
(in millions) | 2017 |  | 2016 |  | 2015
Depreciation and amortization: |  |  |  |  |
Environmental Solutions | $ | 25.7 |  |  | $ | 14.5 |  |  | $ | 7.3 |
Safety and Security Systems | 4.1 |  |  | 4.4 |  |  | 4.8 |
Corporate | 0.2 |  |  | 0.2 |  |  | 0.2 |
Total depreciation and amortization | $ | 30.0 |  |  | $ | 19.1 |  |  | $ | 12.3 |
(in millions) | 2017 |  | 2016 |  | 2015
Total assets: |  |  |  |  |
Environmental Solutions | $ | 746.4 |  |  | $ | 393.3 |  |  | $ | 250.6 |
Safety and Security Systems | 211.8 |  |  | 200.1 |  |  | 209.6 |
Corporate and eliminations | 33.6 |  |  | 48.7 |  |  | 99.2 |
Total assets of continuing operations | 991.8 |  |  | 642.1 |  |  | 559.4 |
Total assets of discontinued operations | 0.5 |  |  | 1.1 |  |  | 107.1 |
Total assets | $ | 992.3 |  |  | $ | 643.2 |  |  | $ | 666.5 |
(in millions) | 2017 |  | 2016 |  | 2015
Capital expenditures: |  |  |  |  |
Environmental Solutions | $ | 5.2 |  |  | $ | 3.7 |  |  | $ | 4.5 |
Safety and Security Systems | 2.2 |  |  | 1.8 |  |  | 3.9 |
Corporate | 0.6 |  |  | 0.6 |  |  | 1.2 |
Total capital expenditures | $ | 8.0 |  |  | $ | 6.1 |  |  | $ | 9.6 |
The following table summarizes net sales by geographic region based on the location of the end customer:
(in millions) | 2017 |  | 2016 |  | 2015
Net sales: |  |  |  |  |
U.S. | $ | 674.1 |  |  | $ | 510.2 |  |  | $ | 576.8 |
Canada | 142.6 |  |  | 111.5 |  |  | 75.9 |
Europe/Other | 81.8 |  |  | 86.2 |  |  | 115.3 |
Total net sales | $ | 898.5 |  |  | $ | 707.9 |  |  | $ | 768.0 |
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) | 2017 |  | 2016 |  | 2015
Long-lived assets (excluding deferred tax and intangible assets): |  |  |  |  |
U.S. | $ | 97.0 |  |  | $ | 78.7 |  |  | $ | 53.3 |
Canada | 52.3 |  |  | 46.1 |  |  | — |
Europe | 3.1 |  |  | 2.5 |  |  | 2.6 |
Other | 0.3 |  |  | 0.3 |  |  | 0.3 |
Total long-lived assets | $ | 152.7 |  |  | $ | 127.6 |  |  | $ | 56.2 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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