Operating Segments and Related Information

12 Months Ended

Dec. 31, 2013

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)

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 arm's length basis and are eliminated in consolidation.

Accounts receivable and inventories for operating segments are regularly reviewed by management and are reported belowas 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,
	2013			2012			2011
Revenue—External Customers:
Thermal Vision and Measurement	$	727,939		$	628,019		$	660,256
Raymarine	163,200			158,183			171,489
Surveillance	456,490			486,355			577,552
Detection	53,191			63,312			79,918
Integrated Systems	95,552			69,489			54,847
	$	1,496,372		$	1,405,358		$	1,544,062
Revenue—Intersegments:
Thermal Vision and Measurement	$	16,449		$	15,204		$	18,553
Raymarine	5			7			7
Surveillance	25,420			23,013			32,266
Detection	7,763			4,233			3,394
Integrated Systems	1,217			1,537			6,639
Eliminations	(50,854		)	(43,994		)	(60,859		)
	$	—		$	—		$	—
Earnings (loss) from operations:
Thermal Vision and Measurement	$	161,307		$	171,280		$	194,674
Raymarine	14,184			11,173			11,855
Surveillance	126,034			160,219			208,510
Detection	(184		)	1,089			(5,568		)
Integrated Systems	(1,907		)	5,168			1,659
Other	(58,691		)	(45,599		)	(97,935		)
	$	240,743		$	303,330		$	313,195

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

	December 31,
	2013		2012 (as adjusted)
Segment assets (accounts receivable, net and inventories):
Thermal Vision and Measurement	$	261,204	$	265,132
Raymarine	63,628		73,564
Surveillance	262,759		317,944
Detection	21,754		31,861
Integrated Systems	21,947		25,742
	$	631,292	$	714,243

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,
	2013		2012		2011
United States	$	755,640	$	717,841	$	803,423
Europe	370,800		337,163		382,388
Other foreign	369,932		350,354		358,251
	$	1,496,372	$	1,405,358	$	1,544,062

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,
	2013		2012 (as adjusted)
United States	$	600,261	$	584,623
Europe	359,444		353,800
Other foreign	56,040		54,763
	$	1,015,745	$	993,186

Major Customers

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

	Year Ended December 31,
	2013		2012		2011
United States government	$	354,902	$	373,540	$	444,882