Operating Segments and Related Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Operating Segments and Related Information

Operating Segments and Related Information

Operating Segments

In February 2014, the Company announced a realignment of its business which resulted in the elimination of its former divisional structure and the formation of six reporting segments effective as of January 1, 2014. Those operating segments are 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.

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.

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

Operating Segments - (Continued)

OEM and Emerging Markets

The OEM and 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 systems and hand-held and weapon-mounted thermal imaging systems for use by consumers and law enforcement.

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.

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.

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 belowas 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,
	2014			2013 (as reclassified)			2012 (as reclassified)
Revenue—External Customers:
Surveillance	$	492,213		$	531,338		$	560,165
Instruments	354,124			337,531			339,029
OEM & Emerging	226,865			207,204			194,982
Maritime	192,636			189,076			178,294
Security	179,090			141,005			52,013
Detection	85,726			90,218			80,875
	$	1,530,654		$	1,496,372		$	1,405,358
Revenue—Intersegments:
Surveillance	$	7,209		$	5,928		$	16,418
Instruments	1,793			7,312			11,738
OEM & Emerging	21,856			25,063			31,448
Maritime	2,936			—			7
Security	11,017			—			—
Detection	95			1,730			4,233
Eliminations	(44,906		)	(40,033		)	(63,844		)
	$	—		$	—		$	—
Earnings (loss) from operations:
Surveillance	$	113,048		$	122,095		$	170,015
Instruments	98,954			81,070			87,133
OEM & Emerging	64,423			52,724			61,995
Maritime	24,494			22,287			18,467
Security	24,871			17,340			15,133
Detection	10,958			8,888			588
Other	(77,504		)	(63,661		)	(50,001		)
	$	259,244		$	240,743		$	303,330

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

Operating Segments - (Continued)

	December 31,
	2014		2013 (as reclassified)
Segment assets (accounts receivable, net and inventories):
Surveillance	$	305,078	$	282,037
Instruments	119,629		117,336
OEM & Emerging	83,448		88,317
Maritime	67,775		68,915
Security	59,182		45,053
Detection	40,151		29,634
	$	675,263	$	631,292

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,
	2014		2013		2012
United States	$	763,905	$	755,640	$	717,841
Europe	350,924		370,800		337,163
Other foreign	415,825		369,932		350,354
	$	1,530,654	$	1,496,372	$	1,405,358

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,
	2014		2013
United States	$	623,522	$	600,261
Europe	319,661		359,444
Other foreign	51,698		56,040
	$	994,881	$	1,015,745

Major Customers

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

	Year Ended December 31,
	2014		2013		2012
United States government	$	310,431	$	354,902	$	373,540