Operating Segments and Related Information

6 Months Ended

Jun. 30, 2011

Operating Segments and Related Information

Note 17. Operating Segments and Related Information

Operating Segments

The Company has two business divisions: Commercial Systems and Government Systems.

Commercial Systems Division

The Commercial Systems division is focused on the design, manufacture, and marketing of instrument, sensor, and electronics solutions that facilitate improved situational awareness and environmental analytics for commercial customers. The division is comprised of two operating segments: Thermal Vision and Measurement and Raymarine. The Thermal Vision and Measurement segment provides advanced thermal imaging solutions for emerging commercial and industrial markets that enable people to see at night or through adverse weather conditions and to capture, measure, and analyze temperature data. The Raymarine segment provides electronics for the maritime market and is a leading global provider of fully integrated “stem to stern” networked electronic systems for boats of all sizes.

Government Systems Division

The Government Systems division designs, manufactures, and markets advanced imaging and detection systems for government markets where high performance is required. The division is comprised of three operating segments: Surveillance, Detection, and Integrated Systems. The Surveillance segment provides enhanced imaging and recognition solutions to 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. The Detection segment produces sensor instruments that detect and identify chemical, biological, radiological, nuclear, and explosives (“CBRNE”) threats for military force protection, homeland security, and commercial applications. The Integrated Systems segment develops platform solutions for combating sophisticated security threats and incorporates multiple sensor systems in order to deliver actionable intelligence for wide area surveillance, intrusion detection, and facility security.

As of January 1, 2011, within the Commercial Systems division, the Company merged its former Thermography and Commercial Vision Systems operating segments into the Thermal Vision and Measurement operating segment. In addition, within the Government Systems division, the legacy Government Systems operating segment has been merged with certain business units of ICx to form the Surveillance operating segment. The remaining business units of ICx have been separated into the Detection and Integrated Systems operating segments. Accordingly, the Company has retrospectively reported the June 30, 2010 amounts on a comparable basis.

Raymarine was acquired in May 2010 and ICx was acquired in October 2010 and therefore, the operating results for the Raymarine, Detection and Integrated Systems operating segments are not comparable to the operating results for the prior periods described below.

Operating segment information is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Revenue – External Customers:
Thermal Vision and Measurement	$	164,838	$	136,026	$	308,939	$	264,978
Raymarine		50,190		27,224		100,726		27,224
Surveillance		141,479		167,883		291,336		326,229
Detection		17,221		—		35,092		—
Integrated Systems		16,223		—		27,323		—
	$	389,951	$	331,133	$	763,416	$	618,431

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Revenue – Intersegments:
Thermal Vision and Measurement	$	5,705		$	3,859		$	10,398		$	8,549
Raymarine		4			—			7			—
Surveillance		6,764			7,627			17,021			13,193
Detection		1,478			—			1,478			—
Integrated Systems		689			—			1,084			—
Eliminations		(14,640	)		(11,486	)		(29,988	)		(21,742	)
	$	—		$	—		$	—		$	—
	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Earnings (loss) from operations:
Thermal Vision and Measurement	$	47,214		$	35,904		$	84,422		$	69,884
Raymarine		7,243			3,443			14,653			3,443
Surveillance		46,475			65,845			97,799			128,629
Detection		(3,014	)		—			(6,875	)		—
Integrated Systems		(64	)		—			(98	)		—
Other		(56,171	)		(15,377	)		(71,572	)		(27,798	)
	$	41,683		$	89,815		$	118,329		$	174,158

The loss from operations of Other includes the litigation settlement payment of $39.0 million discussed in Note 15 and certain related legal expenses of $1.8 million.

	June 30, 2011		December 31, 2010
Segment assets (accounts receivable, net and inventories):
Thermal Vision and Measurement	$	202,855	$	198,419
Raymarine		72,989		58,236
Surveillance		329,632		327,240
Detection		33,106		39,270
Integrated Systems		6,753		11,516
Discontinued Operations		5,159		8,198
	$	650,494	$	642,879

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):

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
United States	$	195,561	$	168,923	$	390,986	$	334,432
Europe		99,222		84,387		191,662		148,968
Other international		95,168		77,823		180,768		135,031
	$	389,951	$	331,133	$	763,416	$	618,431

Long-lived assets by significant geographic locations are as follows (in thousands):

	June 30, 2011		December 31, 2010
United States	$	570,219	$	583,299
Europe		307,622		287,081
Other international		9,944		9,423
	$	887,785	$	879,803

Major Customers

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
US Government	$	89,518	$	104,769	$	199,391	$	213,799