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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information 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 are expected to 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 sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, high-performance waterblasting equipment, road-marking and line-removal equipment, dump truck bodies, trailers, metal extraction support equipment, and multi-purpose maintenance vehicles. The Group manufactures vehicles and equipment in the U.S. and Canada that are sold under the Elgin®, Vactor®, Guzzler®, TRUVAC®, WestechTM, Jetstream®, Blasters, Mark Rite Lines, Trackless, Ox Bodies®, Crysteel®, J-Craft®, Duraclass®, Rugby®, Travis®, OSW, NTE, WTB, Ground Force, TowHaul®, Bucks®, and Switch-N-Go® brand names. Product offerings also include certain products manufactured by other companies, such as refuse and recycling collection vehicles. 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 Environmental Solutions Group also engages in the sale of parts, service and repair, equipment rentals, and training as part of a comprehensive 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.
In addition, as discussed in Note 2 – Acquisitions, the Company completed the acquisitions of substantially all of the assets and operations of Standard during the year ended December 31, 2024. The assets and liabilities of Standard have been consolidated into the Consolidated Balance Sheet as of December 31, 2024, while the post-acquisition results of operations of Standard have been included in the Consolidated Statements of Operations subsequent to its closing date, within the Environmental Solutions Group reportable segment.
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 community alerting, emergency vehicles, first responder interoperable communications, and industrial communications. Specific products include public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems. Products are sold under the Federal SignalTM, Federal Signal VAMA®, and Victor® brand names. The Safety and Security Systems Group operates manufacturing facilities in the U.S., Spain, the U.K., and South Africa.
Our chief operating decision maker (“CODM”) is our President and CEO. The CODM evaluates segment performance using each segments’ operating income. Annually, the CODM uses segment operating income during the budgeting process to allocate resources, including capital and personnel, for the upcoming fiscal year to each segment. Monthly, the CODM compares actual segment operating income results to forecasts and refines, as necessary, resource allocations for the remainder of the year. The CODM also uses segment operating income as a factor in determining the compensation of certain employees.
Segment operating income includes all revenues, costs, and expenses directly related to the segment and does not include corporate expenses or interest expenses.
The CODM also regularly reviews net sales by reportable segment. 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 not significant. Additionally, the CODM reviews depreciation and amortization expense, total assets, and capital expenditures by reportable segment. Assets not associated with a reportable segment consist principally of cash and cash equivalents, deferred tax assets, and fixed assets related to Corporate. The accounting policies of each reportable segment are the same as those described in Note 1 – Summary of Significant Accounting Policies.
The following tables summarize the Company’s financial performance by reportable segment and include reconciliations of segment operating income to consolidated income before income taxes:
For the Year Ended December 31, 2024
(in millions of dollars)Environmental Solutions Safety and Security SystemsTotal
Net sales (a)
$1,557.1 $304.4 $1,861.5 
Less: Cost of sales1,152.0 176.5 1,328.5 
Gross profit405.1 127.9 533.0 
Less:
Selling, engineering, general, and administrative expenses127.5 63.5 191.0 
Other segment items (b)
16.4 — 16.4 
Segment operating income261.2 64.4 325.6 
Reconciliation to income before income taxes:
All other (income) loss (c)
44.2 
Interest expense, net12.5 
Other expense, net5.0 
Income before income taxes$263.9 
(a)    Represents net sales from external customers. Intersegment net sales are not significant. Total of segment net sales agrees to Net sales on the Consolidated Statement of Operations.
(b)    Other segment items includes amortization expense and acquisition and integration-related expenses, net, within the Environmental Solutions Group.
(c)    Represents general corporate expenses.
For the Year Ended December 31, 2023
(in millions of dollars)Environmental Solutions Safety and Security SystemsTotal
Net sales (a)
$1,437.9 $284.8 $1,722.7 
Less: Cost of sales1,098.6 173.9 1,272.5 
Gross profit339.3 110.9 450.2 
Less:
Selling, engineering, general, and administrative expenses113.6 56.1 169.7 
Other segment items (b)
16.5 — 16.5 
Segment operating income209.2 54.8 264.0 
Reconciliation to income before income taxes:
All other (income) loss (c)
39.5 
Interest expense, net19.7 
Other expense, net1.8 
Income before income taxes$203.0 
(a)    Represents net sales from external customers. Intersegment net sales are not significant. Total of segment net sales agrees to Net sales on the Consolidated Statement of Operations.
(b)    Other segment items includes amortization expense and acquisition and integration-related expenses, net, within the Environmental Solutions Group.
(c)    Represents general corporate expenses.
For the Year Ended December 31, 2022
(in millions of dollars)Environmental Solutions Safety and Security SystemsTotal
Net sales (a)
$1,190.6 $244.2 $1,434.8 
Less: Cost of sales936.3 153.6 1,089.9 
Gross profit254.3 90.6 344.9 
Less:
Selling, engineering, general, and administrative expenses96.8 49.8 146.6 
Other segment items (b)
13.0 — 13.0 
Segment operating income144.5 40.8 185.3 
Reconciliation to income before income taxes:
All other (income) loss (c)
24.5 
Interest expense, net10.3 
Other income, net(0.4)
Income before income taxes$150.9 
(a)    Represents net sales from external customers. Intersegment net sales are not significant. Total of segment net sales agrees to Net sales on the Consolidated Statement of Operations.
(b)    Other segment items includes amortization expense and acquisition and integration-related expenses, net, within the Environmental Solutions Group.
(c)    Represents general corporate expenses.
The following table summarizes the Company’s total depreciation and amortization by reportable segment and includes a reconciliation of total segment depreciation and amortization to total depreciation and amortization:
For the Years Ended December 31,
(in millions of dollars)202420232022
Depreciation and amortization:
Environmental Solutions (a)
$60.9 $56.0 $50.3 
Safety and Security Systems (a)
3.9 4.2 4.2 
Total segment depreciation and amortization64.8 60.2 54.5 
Corporate0.5 0.2 0.2 
Total depreciation and amortization$65.3 $60.4 $54.7 
(a)    The amounts of depreciation and amortization disclosed by reportable segment are included within cost of sales; selling, engineering, general, and administrative expenses; and other segment items in the tables above.
The following table summarizes the Company’s total assets by reportable segment and includes a reconciliation of total segment assets to total assets:
For the Years Ended December 31,
(in millions of dollars)202420232022
Total assets:
Environmental Solutions$1,424.7 $1,290.9 $1,206.4 
Safety and Security Systems279.5 288.1 279.3 
Total segment assets1,704.2 1,579.0 1,485.7 
Corporate and eliminations61.0 41.5 38.6 
Total assets$1,765.2 $1,620.5 $1,524.3 
The following table summarizes the Company’s total capital expenditures by reportable segment and includes a reconciliation of total segment capital expenditures to total capital expenditures:
For the Years Ended December 31,
(in millions of dollars)202420232022
Capital expenditures
Environmental Solutions$31.6 $23.0 $19.4 
Safety and Security Systems6.1 5.2 32.4 
Total segment capital expenditures37.7 28.2 51.8 
Corporate2.9 2.1 1.2 
Total capital expenditures$40.6 $30.3 $53.0 
Geographic Financial Information:
The following table summarizes net sales by geographic region based on the location of the end-customer:
For the Years Ended December 31,
(in millions of dollars)202420232022
Net sales:
U.S.$1,469.1 $1,337.4 $1,149.8 
Canada257.4 237.8 175.3 
Europe/Other135.0 147.5 109.7 
Total net sales$1,861.5 $1,722.7 $1,434.8 
Net sales exported from the U.S. aggregated to $131.4 million in 2024, $136.0 million in 2023, and $88.8 million in 2022.
The following table summarizes long-lived assets by geographic region based on the location of the Company’s subsidiaries:
For the Years Ended December 31,
(in millions of dollars)202420232022
Long-lived assets (a):
U.S.$318.1 $261.6 $249.4 
Canada97.4 80.7 59.1 
Europe/Other4.4 4.3 4.6 
Total long-lived assets$419.9 $346.6 $313.1 
(a)    Long-lived assets are comprised of properties and equipment, net, rental equipment, net, and operating lease right-of-use assets.
Concentration of Risk:
No single customer accounted for 10% or more of the Company’s net sales in any year within the three-year period ended December 31, 2024.