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Segment Disclosure
12 Months Ended
May 31, 2013
Segment Disclosure  
Segment Disclosure

19. Segment Disclosure

 

The Company’s three operating segments are:

 

·                  Services. This segment provides asset protection solutions primarily in North America with the largest concentration in the United States and a rapidly expanding Canadian services business, consisting primarily of non-destructive testing and inspection services that are used to evaluate the structural integrity and reliability of critical energy, industrial and public infrastructure.

 

·                  Products and Systems. This segment designs, manufactures, sells, installs and services the Company’s asset protection products and systems, including equipment and instrumentation, predominantly in the United States.

 

·                  International. This segment offers services, products and systems similar to those of the Company’s other segments to global markets, principally in Europe, the Middle East, Africa, Asia and South America, but not to customers in China and South Korea, which are served by the Products and Systems segment. South America consists primarily of the Company’s Brazil operation.

 

Costs incurred for general corporate services, including accounting, audit, legal, and certain offer costs, that are provided to the segments are reported within Corporate and eliminations. Sales to the International segment from the Products and Systems segment and subsequent sales by the International segment of the same items are recorded and reflected in the operating performance of both segments. Additionally, engineering charges and royalty fees charged to the Services and International segments by the Products and Systems segment are reflected in the operating performance of each segment. All such intersegment transactions are eliminated in the Company’s consolidated financial reporting.

 

The accounting policies of the reportable segments are the same as those described in Note 2 — Summary of Significant Accounting Policies. Segment income from operations is determined based on internal performance measures used by the Chief Executive Officer, who is the chief operating decision maker, to assess the performance of each business in a given period and to make decisions as to resource allocations. In connection with that assessment, the Chief Executive Officer may exclude matters such as charges for share-based compensation and certain other acquisition-related charges and balances, technology and product development costs, certain gains and losses from dispositions, and litigation settlements or other charges. Certain general and administrative costs such as human resources, information technology and training are allocated to the segments. Segment income from operations also excludes interest and other financial charges and income taxes. Corporate and other assets are comprised principally of cash, deposits, property, plant and equipment, domestic deferred taxes, deferred charges and other assets. Corporate loss from operations consists of depreciation on the corporate office facilities and equipment, administrative charges related to corporate personnel and other charges that cannot be readily identified for allocation to a particular segment.

 

Selected financial information by segment for the periods shown was as follows:

 

 

 

For the year ended May 31,

 

 

 

2013

 

2012

 

2011

 

Revenues

 

 

 

 

 

 

 

Services

 

$

380,851

 

$

349,793

 

$

283,139

 

International

 

126,840

 

59,466

 

36,798

 

Products and Systems

 

33,301

 

40,083

 

26,105

 

Corporate and eliminations

 

(11,710

)

(12,467

)

(7,453

)

 

 

$

529,282

 

$

436,875

 

$

338,589

 

 

Revenues by operating segment include intercompany transactions, which are eliminated in Corporate and eliminations. The Services segment had sales to other operating segments of $4.9 million, $2.8 million and $1.4 million for fiscal 2013, 2012 and 2011, respectively. The International segment had sales to other operating segments of $0.6 million, $0.9 million and $0.3 million for fiscal 2013, 2012 and 2011, respectively. The Products and Systems segment had sales to other operating segments of $6.0 million, $9.1 million and $4.4 million for fiscal 2013, 2012 and 2011, respectively.

 

 

 

For the year ended May 31,

 

 

 

2013

 

2012

 

2011

 

Gross profit

 

 

 

 

 

 

 

Services

 

$

98,907

 

$

94,413

 

$

77,883

 

International

 

32,319

 

19,106

 

12,922

 

Products and Systems

 

16,947

 

18,578

 

13,239

 

Corporate and eliminations

 

198

 

(2,407

)

(641

)

 

 

$

148,371

 

$

129,690

 

$

103,403

 

 

 

 

For the year ended May 31,

 

 

 

2013

 

2012

 

2011

 

Income (loss) from operations

 

 

 

 

 

 

 

Services

 

$

40,325

 

$

39,932

 

$

31,856

 

International

 

(8,246

)

3,262

 

3,539

 

Products and Systems

 

7,286

 

8,271

 

5,123

 

Corporate and eliminations

 

(11,811

)

(15,367

)

(10,907

)

 

 

$

27,554

 

$

36,098

 

$

29,611

 

 

Income (loss) from operations by operating segment includes intercompany transactions, which are eliminated in Corporate and eliminations.

 

 

 

For the year ended May 31,

 

 

 

2013

 

2012

 

2011

 

Depreciation and amortization

 

 

 

 

 

 

 

Services

 

$

18,296

 

$

17,763

 

$

15,979

 

International

 

6,200

 

2,342

 

1,396

 

Products and Systems

 

2,229

 

1,831

 

1,083

 

Corporate and eliminations

 

(78

)

88

 

134

 

 

 

$

26,647

 

$

22,024

 

$

18,592

 

 

 

 

May 31,

 

 

 

2013

 

2012

 

Intangible assets, net

 

 

 

 

 

Services

 

$

14,527

 

$

17,180

 

International

 

27,520

 

6,390

 

Products and Systems

 

9,600

 

10,095

 

Corporate and eliminations

 

781

 

804

 

 

 

$

52,428

 

$

34,469

 

 

 

 

May 31,

 

 

 

2013

 

2012

 

Total assets

 

 

 

 

 

Services

 

$

200,326

 

$

204,209

 

International

 

138,108

 

82,579

 

Products and Systems

 

37,948

 

43,914

 

Corporate and eliminations

 

278

 

(886

)

 

 

$

376,660

 

$

329,816

 

 

Revenue and long-lived assets by geographic area was as follows:

 

 

 

For the year ended May 31,

 

 

 

2013

 

2012

 

2011

 

Revenue

 

 

 

 

 

 

 

United States

 

$

347,423

 

$

336,081

 

$

277,585

 

Other Americas

 

55,379

 

40,337

 

25,338

 

Europe

 

106,416

 

42,820

 

25,192

 

Asia-Pacific

 

20,064

 

17,637

 

10,474

 

 

 

$

529,282

 

$

436,875

 

$

338,589

 

 

 

 

May 31,

 

 

 

Long-lived assets 

 

2013

 

2012

 

 

 

United States

 

$

122,727

 

$

130,813

 

 

 

Other Americas

 

28,148

 

37,109

 

 

 

Europe

 

85,171

 

26,766

 

 

 

Asia-Pacific

 

71

 

127

 

 

 

 

 

$

236,117

 

$

194,815