Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company has three operating segments as defined under ASC Topic 280,Segment Reporting. The Company’s reportable segments are consistent with its operating segments. Business units are organized under each segment because they share certain characteristics, such as technology, marketing, production, 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. Products are sold to both municipal and industrial customers under the Elgin^®, Vactor^®, Guzzler^® and Jetstream^TMbrand names. The Group manufactures vehicles and equipment in the U.S.

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^TM and Victor^TM brand names. The Group operates manufacturing facilities in the U.S., Europe and South Africa.

Fire Rescue — Our Fire Rescue Group is a leading manufacturer and supplier of sophisticated, vehicle-mounted, aerial platforms for fire fighting, rescue and industrial applications. End customers include fire departments, industrial fire services, electric utilities and maintenance rental companies for applications such as fire fighting and rescue, transmission line maintenance and installation and maintenance of wind turbines. In addition to equipment sales, the Group sells parts, service and training as part of a complete offering to its customers. The Group manufactures in Finland and sells globally under the Bronto Skylift^® brand name.

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 Condensed 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 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The results for the interim periods are not necessarily indicative of results for a full year.

The following tables summarize the Company’s continuing operations by segment, including Net sales, Operating income (loss), and Total assets:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
(in millions)	2015			2014			2015			2014
Net sales:
Environmental Solutions	$	123.0		$	134.1		$	409.8		$	394.0
Safety and Security Systems	56.7			59.7			171.8			176.0
Fire Rescue	26.1			25.5			76.6			84.1
Total net sales	$	205.8		$	219.3		$	658.2		$	654.1
Operating income (loss):
Environmental Solutions	$	21.5		$	21.5		$	74.6		$	59.8
Safety and Security Systems	9.3			9.4			23.2			21.2
Fire Rescue	0.7			(0.2		)	1.0			(1.3		)
Corporate and eliminations	(5.6		)	(5.8		)	(18.9		)	(18.1		)
Total operating income	25.9			24.9			79.9			61.6
Interest expense	0.5			0.9			1.7			2.8
Other expense, net	0.3			0.3			1.3			0.6
Income before income taxes	$	25.1		$	23.7		$	76.9		$	58.2

(in millions)	As of   September 30, 2015		As of December 31, 2014
Total assets:
Environmental Solutions	$	264.6	$	254.2
Safety and Security Systems	206.9		208.3
Fire Rescue	110.7		124.0
Corporate and eliminations	78.6		68.0
Total assets of continuing operations	660.8		654.5
Total assets of discontinued operations	2.0		4.2
Total assets	$	662.8	$	658.7