Operating Segments and Related Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Operating Segments and Related Information

Operating Segments and Related Information

Operating Segments

The Company has six reportable operating 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.

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 networkedvideo 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 and visible-spectrum imaging camera cores and components that are utilized by third parties to create thermal, industrial, 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,
	2016			2015			2014
Revenue—External Customers:
Surveillance	$	532,476		$	503,045		$	519,982
Instruments	336,141			347,476			354,124
Security	240,010			226,575			179,090
OEM & Emerging Markets	243,678			186,722			199,096
Maritime	185,726			177,948			192,636
Detection	124,136			115,301			85,726
	$	1,662,167		$	1,557,067		$	1,530,654
Revenue—Intersegments:
Surveillance	$	18,835		$	10,761		$	7,209
Instruments	4,343			9,951			1,793
Security	13,838			12,033			11,017
OEM & Emerging Markets	33,442			33,059			21,856
Maritime	3,450			2,108			2,936
Detection	31			—			95
Eliminations	(73,939		)	(67,912		)	(44,906		)
	$	—		$	—		$	—
Earnings (loss) from operations:
Surveillance	$	144,906		$	145,637		$	127,222
Instruments	96,691			112,353			98,954
Security	10,172			28,140			24,871
OEM & Emerging Markets	59,686			41,065			50,249
Maritime	15,428			13,611			24,494
Detection	33,847			26,904			10,958
Other	(65,012		)	(61,946		)	(77,504		)
	$	295,718		$	305,764		$	259,244

	December 31,
	2016		2015
Segment assets (accounts receivable, net and inventories):
Surveillance	$	283,324	$	286,058
Instruments	114,681		130,135
Security	93,174		105,509
OEM & Emerging Markets	144,862		93,925
Maritime	61,494		73,506
Detection	25,856		30,057
	$	723,391	$	719,190

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

Operating Segments - (Continued)

	December 31,
	2016		2015
Segment goodwill:
Surveillance	$	152,383	$	120,145
Instruments	147,595		149,582
Security	102,983		101,955
OEM & Emerging Markets	252,647		69,973
Maritime	97,860		106,549
Detection	47,938		48,112
	$	801,406	$	596,316

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,
	2016		2015 (as reclassified)		2014
United States	$	903,582	$	830,485	$	783,685
Europe	338,805		338,886		350,118
Asia	195,913		175,616		164,633
Middle East/Africa	130,890		125,848		138,186
Canada/Latin America	92,977		86,232		94,032
	$	1,662,167	$	1,557,067	$	1,530,654

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,
	2016		2015
United States	$	676,007	$	666,759
Europe	673,767		383,501
Other foreign	60,032		13,197
	$	1,409,806	$	1,063,457

Major Customers

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

	Year Ended December 31,
	2016		2015 (as reclassified)		2014
United States government	$	416,341	$	321,420	$	310,431