Operating Segments and Related Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Operating Segments and Related Information

Operating Segments and Related Information

Operating Segments

The Company has six reporting segments as follows:

Surveillance

The Surveillance segment develops and manufactures enhanced imaging and recognition solutions for a wide variety of military, law enforcement, public safety, and other government customers around the world for the protection of borders, troops, and public welfare. Offerings include airborne, land, maritime, and man-portable multi-spectrum imaging systems, radars, lasers, imaging components, integrated multi-sensor system platforms, and services related to these systems. Effective January 1, 2015, the Personal Vision Systems product line was transferred from the OEM & Emerging Markets segment to the Surveillance segment. This product line includes hand-held and weapon-mounted thermal imaging systems for use by consumers. Accordingly, prior period segment financial information in the tables below has been reclassified for the applicable prior periods for comparative purposes. This reclassification had no impact on consolidated revenue or earnings (loss) from operations.

Instruments

The Instruments segment develops and manufactures devices that image, measure, and assess thermal energy, gases, and other environmental elements for industrial, commercial, and scientific applications. Products include thermal imaging cameras, gas detection cameras, firefighting cameras, process automation cameras, and environmental test and measurement devices.

Security

The Security segment develops and manufactures cameras and video recording systems for use in commercial, critical infrastructure, and home security applications. Products include thermal and visible-spectrum cameras, digital and networked video recorders, and related software and accessories that enable the efficient and effective safeguarding of assets at all hours of the day and through adverse weather conditions.

OEM & Emerging Markets

The OEM & Emerging Markets segment develops and manufactures thermal imaging camera cores and components that are utilized by third parties to create thermal and other types of imaging systems. The segment also develops and manufactures intelligent traffic monitoring and signal control systems as well as thermal imaging solutions for use by consumers in the smartphone and mobile devices markets.

Maritime

The Maritime segment develops and manufactures electronics and imaging instruments for the recreational and commercial maritime market. The segment provides a full suite of networked electronic systems including multi-function helm displays, navigational instruments, autopilots, radars, sonar systems, thermal and visible imaging systems, and communications equipment for boats of all sizes.

Detection

The Detection segment develops and manufactures sensor instruments and integrated platform solutions for the detection, identification, and suppression of chemical, biological, radiological, nuclear, and explosives threats for military force protection, homeland security, and commercial applications.

The accounting policies of each of the segments are the same. The Company’s President and Chief Executive Officer evaluates the performance of each segment based upon its revenue and earnings from operations. On a consolidated basis, these amounts represent revenue and earnings from operations as represented in the Consolidated Statements of Income. Other consists of corporate expenses and certain other operating expenses not allocated to the operating segments for management reporting purposes. Intersegment revenues are recorded at cost and are eliminated in consolidation.

Accounts receivable and inventories for operating segments are regularly reviewed by management and are reported below as segment assets. All remaining assets, liabilities, capital expenditures and depreciation are managed on a Company-wide basis.

Note 17. Operating Segments and Related Information—(Continued)

Operating Segments - (Continued)

Operating segment information is as follows (in thousands):

	Year Ended December 31,
	2015			2014 (as reclassified)			2013 (as reclassified)
Revenue—External Customers:
Surveillance	$	503,045		$	519,982		$	554,567
Instruments	347,476			354,124			337,531
Security	226,575			179,090			141,005
OEM & Emerging Markets	186,722			199,096			183,975
Maritime	177,948			192,636			189,076
Detection	115,301			85,726			90,218
	$	1,557,067		$	1,530,654		$	1,496,372
Revenue—Intersegments:
Surveillance	$	10,761		$	7,209		$	5,928
Instruments	9,951			1,793			7,312
Security	12,033			11,017			—
OEM & Emerging Markets	33,059			21,856			25,063
Maritime	2,108			2,936			—
Detection	—			95			1,730
Eliminations	(67,912		)	(44,906		)	(40,033		)
	$	—		$	—		$	—
Earnings (loss) from operations:
Surveillance	$	145,637		$	127,222		$	135,550
Instruments	112,353			98,954			81,070
Security	28,140			24,871			17,340
OEM & Emerging Markets	41,065			50,249			39,269
Maritime	13,611			24,494			22,287
Detection	26,904			10,958			8,888
Other	(61,945		)	(77,504		)	(63,661		)
	$	305,764		$	259,244		$	240,743

	December 31,
	2015		2014 (as reclassified)
Segment assets (accounts receivable, net and inventories):
Surveillance	$	286,058	$	309,473
Instruments	130,135		119,629
Security	105,509		59,182
OEM & Emerging Markets	93,925		79,053
Maritime	73,506		67,775
Detection	30,057		40,151
	$	719,190	$	675,263

Note 17. Operating Segments and Related Information—(Continued)

Operating Segments - (Continued)

	December 31,
	2015		2014 (as reclassified)
Segment goodwill:
Surveillance	$	120,145	$	121,268
Instruments	149,582		155,527
Security	101,955		45,710
OEM & Emerging Markets	69,973		72,687
Maritime	106,549		109,980
Detection	48,112		48,163
	$	596,316	$	553,335

Revenue and Long-Lived Assets by Geographic Area

Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands):

	Year Ended December 31,
	2015		2014 (as reclassified)		2013 (as reclassified)
United States	$	822,892	$	783,685	$	755,640
Europe	339,544		350,118		370,800
Asia	185,046		164,633		154,111
Middle East/Africa	125,760		138,186		59,917
Canada/Latin America	83,825		94,032		155,904
	$	1,557,067	$	1,530,654	$	1,496,372

Prior year revenue by geographical area in the table above has been reclassified to conform to the presentation provided for the year ended December 31, 2015.

Long-lived assets are comprised of net property and equipment, net identifiable intangible assets, goodwill and other long-term assets. Long-lived assets by significant geographic locations are as follows (in thousands):

	December 31,
	2015		2014
United States	$	666,759	$	623,522
Europe	383,501		319,661
Other foreign	13,197		51,698
	$	1,063,457	$	994,881

Major Customers

Revenue derived from major customers is as follows (in thousands):

	Year Ended December 31,
	2015		2014		2013
United States government	$	309,948	$	310,431	$	354,902