Segment Information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company has two operating segments, and the Company’s reportable segments are consistent with those 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^® 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 its parts, service and rental offerings can be provided 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.

In addition, as discussed in Note 2 – Acquisitions, on June 2, 2017, the Company completed the acquisition of TBEI. TBEI is a leading U.S. manufacturer of dump truck bodies and trailers serving maintenance and infrastructure end-markets. The Company expects that the acquisition will enable it to strengthen the Environmental Solutions Group’s market position as a specialty vehicle manufacturer in maintenance and infrastructure end-markets, leveraging its expertise in building chassis-based vehicles.

As discussed in Note 2 – Acquisitions, the assets and liabilities of TBEI have been consolidated into the Condensed Consolidated Balance Sheet as of September 30, 2017, while the post-acquisition results of operations have been included in the Condensed Consolidated Statements of Operations, within the Environmental Solutions Group, subsequent to the June 2, 2017 closing date. We are in the process of determining the impact, if any, that the TBEI acquisition may have on our reportable segments.

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 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. 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, 2016. 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)	2017			2016			2017			2016
Net sales:
Environmental Solutions	$	198.5		$	134.3		$	500.6		$	369.1
Safety and Security Systems	50.2			52.4			150.3			162.7
Total net sales	$	248.7		$	186.7		$	650.9		$	531.8
Operating income (loss):
Environmental Solutions	$	21.2		$	12.5		$	52.5		$	43.9
Safety and Security Systems	6.1			6.5			18.1			18.0
Corporate and eliminations	(5.1		)	(5.5		)	(18.4		)	(18.0		)
Total operating income	22.2			13.5			52.2			43.9
Interest expense	2.7			0.6			4.6			1.4
Debt settlement charges	—			—			—			0.3
Other income, net	(0.5		)	(0.3		)	(1.0		)	(1.3		)
Income before income taxes	$	20.0		$	13.2		$	48.6		$	43.5

(in millions)	As of   September 30, 2017		As of December 31, 2016
Total assets:
Environmental Solutions	$	761.6	$	393.3
Safety and Security Systems	206.3		200.1
Corporate and eliminations	28.3		48.7
Total assets of continuing operations	996.2		642.1
Total assets of discontinued operations	1.0		1.1
Total assets	$	997.2	$	643.2