Operating Segments and Related Information

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Operating Segments and Related Information

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 where the customer need is to see at night or in adverse conditions or to image a scene gathering valuable temperature information. 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.

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

As of January 1, 2011, within the Commercial Systems division, the Company combined its former Thermography and Commercial Vision Systems operating segments into the Thermal Vision and Measurement operating segment.  Also on January 1, 2011, within the Government Systems division, certain ICx business units were combined with the legacy Government Systems operating segment 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 December 31, 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 year ended December 31, 2011 for the Raymarine, Detection and Integrated Systems operating segments are not comparable to the operating results for the prior periods described below.

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 an estimated arms length basis 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.

Operating segment information is as follows (in thousands):

	Year Ended December 31,
	2011			2010(1)			2009
Revenue—External Customers:
Thermal Vision and Measurement	$	660,256		$	574,852		$	491,805
Raymarine	171,489			104,089			—
Surveillance	577,552			671,250			655,282
Detection	79,918			23,554			—
Integrated Systems	54,847			14,692			—
	$	1,544,062		$	1,388,437		$	1,147,087
Revenue—Intersegments:
Thermal Vision and Measurement	$	18,553		$	16,670		$	13,202
Raymarine	7			—			—
Surveillance	32,266			28,284			28,412
Detection	3,394			—			—
Integrated Systems	6,639			—			—
Eliminations	(60,859		)	(44,954		)	(41,614		)
	$	—		$	—		$	—
Earnings (loss) from operations:
Thermal Vision and Measurement	$	194,674		$	163,664		$	122,219
Raymarine	11,855			8,284			—
Surveillance	208,510			256,208			286,361
Detection	(5,568		)	(2,541		)	—
Integrated Systems	1,659			32			—
Other	(97,935		)	(65,336		)	(61,293		)
	$	313,195		$	360,311		$	347,287

_______________

(1)        Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

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

	December 31,
	2011		2010
Segment assets (accounts receivable, net and inventories):
Thermal Vision and Measurement	$	233,888	$	199,311
Raymarine	60,093		58,236
Surveillance	316,616		327,240
Detection	32,447		39,103
Integrated Systems	17,774		13,504
Discontinued Operations	603		5,485
	$	661,421	$	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):

	Year Ended December 31,
	2011		2010(1)		2009
United States	$	803,423	$	734,748	$	672,270
Europe	382,388		318,321		242,498
Other foreign	358,251		335,368		232,319
	$	1,544,062	$	1,388,437	$	1,147,087

_______________

(1)        Amounts have been adjusted for the reclassification of certain discontinued operations to continuing operations.

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,
	2011		2010
United States	$	587,592	$	583,299
Europe	284,171		287,081
Other foreign	9,627		9,423
	$	881,390	$	879,803

Major Customers

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

	Year Ended December 31,
	2011		2010		2009
United States government	$	444,882	$	473,948	$	494,641