SEGMENT INFORMATION

The Company has two reportable segments. Business units are organized under each reportable 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 reportable 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, high-performance waterblasting equipment, dump truck bodies and trailers. The Group manufactures vehicles and equipment in the U.S. and Canada that are sold under the Elgin^®, Vactor^®, Guzzler^®, Westech^TM, Jetstream^®, Ox Bodies^®, Crysteel^®, J-Craft^®, Duraclass^®, Rugby^® and Travis^®brand names. Product offerings also include certain products manufactured by other companies, such as refuse and recycling collection vehicles, camera systems, ice resurfacing equipment and snow-removal equipment. 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. In addition to vehicle and equipment sales, the Group also engages in the sale of parts, service and repair, equipment rentals and training as part of a complete aftermarket offering to its current and potential customers through its service centers located across North America. Our Environmental Solutions Group includes the aggregated results of two operating segments, including TBEI.

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 reportable segments.

Net sales by reportable 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 reportable segment income, neither corporate nor interest expenses are included. Reportable segment depreciation and amortization expense, identifiable assets and capital expenditures relate to those assets that are utilized by the respective reportable segment. Corporate assets consist principally of cash and cash equivalents, deferred tax assets and fixed assets. The accounting policies of each reportable 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 $241.5 million in 2018, $224.4 million in 2017 and $197.7 million in 2016, of which sales exported from the U.S. aggregated $64.5 million, $58.0 million and $88.0 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)	2018			2017			2016
Net sales:
Environmental Solutions	$	863.5		$	692.6		$	490.7
Safety and Security Systems	226.0			205.9			217.2
Total net sales	$	1,089.5		$	898.5		$	707.9
Operating income:
Environmental Solutions	$	113.0		$	72.4		$	54.5
Safety and Security Systems	34.1			27.0			27.9
Corporate and eliminations	(25.6		)	(25.8		)	(21.6		)
Total operating income	121.5			73.6			60.8
Interest expense	9.3			7.3			1.9
Debt settlement charges	—			—			0.3
Pension settlement charges	—			6.1			—
Other expense (income), net	0.6			(0.8		)	1.8
Income before income taxes	$	111.6		$	61.0		$	56.8



(in millions)	2018		2017		2016
Depreciation and amortization:
Environmental Solutions	$	32.6	$	25.7	$	14.5
Safety and Security Systems	3.7		4.1		4.4
Corporate	0.1		0.2		0.2
Total depreciation and amortization	$	36.4	$	30.0	$	19.1



(in millions)	2018		2017		2016
Total assets:
Environmental Solutions	$	775.2	$	746.4	$	393.3
Safety and Security Systems	211.5		211.8		200.1
Corporate and eliminations	36.7		33.6		48.7
Total assets of continuing operations	1,023.4		991.8		642.1
Total assets of discontinued operations	0.4		0.5		1.1
Total assets	$	1,023.8	$	992.3	$	643.2



(in millions)	2018		2017		2016
Capital expenditures:
Environmental Solutions	$	11.1	$	5.2	$	3.7
Safety and Security Systems	2.0		2.2		1.8
Corporate	1.0		0.6		0.6
Total capital expenditures	$	14.1	$	8.0	$	6.1

The following table summarizes net sales by geographic region based on the location of the end customer:



(in millions)	2018		2017		2016
Net sales:
U.S.	$	848.0	$	674.1	$	510.2
Canada	150.9		142.6		111.5
Europe/Other	90.6		81.8		86.2
Total net sales	$	1,089.5	$	898.5	$	707.9

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)	2018		2017		2016
Long-lived assets (excluding deferred tax and intangible assets):
U.S.	$	110.3	$	97.0	$	78.7
Canada	50.4		52.3		46.1
Europe	3.2		3.1		2.5
Other	0.3		0.3		0.3
Total long-lived assets	$	164.2	$	152.7	$	127.6