Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company has two operating segments as defined under ASC Topic 280,Segment Reporting (“ASC 280”). 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, 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^TM 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 the Company can expand its parts and service offerings 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-making equipment and snow-removal equipment.

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.

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 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, 2015, in addition to those updates described in Note 1 – Summary of Significant Accounting Policies of this Form 10-Q. The results for the interim periods are not necessarily indicative of results for a full year.

As discussed in Note 2 – Acquisitions, the assets and liabilities of JJE and Westech have been consolidated into the Condensed Consolidated Balance Sheet as of September 30, 2016, while the post-acquisition results of operations have been included in the Condensed Consolidated Statements of Operations subsequent to their respective closing dates. JJE and Westech are included within the Environmental Solutions Group. 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)	2016			2015			2016			2015
Net sales:
Environmental Solutions	$	134.3		$	123.0		$	369.1		$	409.8
Safety and Security Systems	52.4			56.7			162.7			171.8
Total net sales	$	186.7		$	179.7		$	531.8		$	581.6
Operating income (loss):
Environmental Solutions	$	12.5		$	21.5		$	43.9		$	74.6
Safety and Security Systems	6.5			9.3			18.0			23.2
Corporate and eliminations	(5.5		)	(5.6		)	(18.0		)	(18.9		)
Total operating income	13.5			25.2			43.9			78.9
Interest expense	0.6			0.6			1.4			1.8
Debt settlement charges	—			—			0.3			—
Other (income) expense, net	(0.3		)	0.3			(1.3		)	1.5
Income from continuing operations before income taxes	$	13.2		$	24.3		$	43.5		$	75.6

(in millions)	As of   September 30, 2016		As of December 31, 2015
Total assets:
Environmental Solutions	$	391.2	$	250.6
Safety and Security Systems	205.6		209.6
Corporate and eliminations	49.6		99.2
Total assets of continuing operations	646.4		559.4
Total assets of discontinued operations	2.2		107.1
Total assets	$	648.6	$	666.5