The Company’s chief operating decision maker ("CODM"), its Chief Executive Officer, evaluates each of its segments’ performance and allocates resources based on revenue and segment operating income. Intersegment revenues are recorded at cost and are eliminated in consolidation. The Company and each of its segments employ consistent accounting policies.

The Industrial business unit 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 devices that image, measure, and assess thermal energy, gases, and other environmental elements for industrial, commercial, and scientific applications, imaging payloads for Unmanned Aerial Systems ("UAS"), machine vision cameras, people counting and tracking, and thermal imaging solutions for use by consumers in the smartphone and mobile devices markets. Products include thermal imaging cameras, gas detection cameras, firefighting cameras, process automation cameras, and environmental test and measurement devices.

The Government and Defense business unit 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. The segment also develops and manufactures sensor instruments and integrated platform solutions for the detection, identification, and suppression of chemical, biological, radiological, nuclear, and explosives ("CBRNE") threats for military force protection, homeland security, and commercial applications. Offerings include airborne, land, maritime, and man-portable multi-spectrum imaging systems, radars, lasers, imaging components, integrated multi-sensor system platforms, CBRNE detectors, nano-class UAS solutions, and services related to these systems.

The Commercial business unit develops and manufactures cameras, video recording systems, and video management systems for use in commercial and critical infrastructure, electronics and imaging instruments for the recreational and commercial maritime market, intelligent traffic monitoring and signal control systems, and hand-held and weapon-mounted thermal imaging systems for use in a variety of applications. Products include thermal and visible-spectrum security cameras, digital and networked video recorders, and related software and accessories, a full suite of networked marine 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, traffic cameras, sensors and associated traffic management software, and thermal scopes and handheld thermal cameras.

The following tables present revenue, operating income, and assets for the three segments. Operating income as reviewed by the CODM is revenue less cost of goods sold and operating expenses, excluding general corporate expenses, amortization of purchased intangible assets, amortization of acquisition-related inventory step-up, loss on sale of a business and restructuring and other charges. Net accounts receivable, inventories and demonstration assets for the 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.



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenue—External Customers:
Industrial	$	188,902		$	188,421		$	368,272		$	359,079
Government and Defense	197,509			161,027			370,859			320,358
Commercial	95,587			103,259			187,603			212,888
	$	481,998		$	452,707		$	926,734		$	892,325
Revenue—Intersegments:
Industrial	$	3,348		$	6,164		$	9,546		$	12,496
Government and Defense	1,436			4,573			2,947			6,101
Commercial	5,784			3,601			10,217			8,081
Eliminations	(10,568		)	(14,338		)	(22,710		)	(26,678		)
	$	—		$	—		$	—		$	—
Segment operating income:
Industrial	$	62,077		$	58,096		$	118,974		$	103,550
Government and Defense	48,970			45,548			97,237			91,730
Commercial	12,980			17,367			25,928			31,839
	$	124,027		$	121,011		$	242,139		$	227,119



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Consolidated segment operating income	$	124,027		$	121,011		$	242,139		$	227,119
Unallocated corporate expenses	(34,672		)	(22,488		)	(65,711		)	(57,435		)
Amortization of purchased intangible assets	(21,045		)	(6,099		)	(26,974		)	(12,086		)
Amortization of acquisition-related inventory step-up	(899		)	—			(899		)	—
Loss on sale of business	—			—			—			(10,178		)
Restructuring and other charges	(3,674		)	(3,758		)	(3,736		)	(3,262		)
Consolidated earnings from operations	63,737			88,666			144,819			144,158
Interest and non-operating expenses, net	(5,614		)	(5,713		)	(11,939		)	(6,590		)
Consolidated earnings before income taxes	$	58,123		$	82,953		$	132,880		$	137,568



	June 30,		December 31,
	2019		2018
Operating segment assets:
Net accounts receivable, inventories and demonstration assets:
Industrial	$	273,938	$	266,457
Government and Defense	361,580		307,041
Commercial	148,742		137,560
	$	784,260	$	711,058
Goodwill:
Industrial	391,079		391,603
Government and Defense	725,436		284,188
Commercial	235,683		228,780
	$	1,352,198	$	904,571
Total operating segment assets	$	2,136,458	$	1,615,629

Assets not allocated:
Cash and cash equivalents	$	268,885	$	512,144
Prepaid expenses and other current assets	77,577		69,445
Property and equipment, net	251,684		247,407
Deferred income taxes	98,330		100,620
Intangible assets, net	273,225		146,845
Other assets	138,527		89,152
Total assets	$	3,244,686	$	2,781,242



	Three Months Ended June 30, 2019								Six Months Ended June 30, 2019
	Industrial		Government and Defense		Commercial		Total		Industrial		Government and Defense		Commercial		Total
United States	$	99,122	$	134,216	$	35,534	$	268,872	$	200,332	$	243,519	$	67,747	$	511,598
Europe	32,855		25,000		41,584		99,439		64,163		51,596		84,140		199,899
Asia	43,459		17,548		10,163		71,170		77,893		34,934		17,121		129,948
Middle East/Africa	2,922		18,815		2,864		24,601		6,691		36,222		8,960		51,873
Canada/Latin America	10,544		1,930		5,442		17,916		19,193		4,588		9,635		33,416
	$	188,902	$	197,509	$	95,587	$	481,998	$	368,272	$	370,859	$	187,603	$	926,734



	Three Months Ended June 30, 2018								Six Months Ended June 30, 2018
	Industrial		Government and Defense		Commercial		Total		Industrial		Government and Defense		Commercial		Total
United States	$	89,259	$	102,798	$	41,478	$	233,535	$	175,555	$	197,931	$	85,493	$	458,979
Europe	32,610		18,701		41,678		92,989		68,153		35,903		86,455		190,511
Asia	49,655		13,696		9,339		72,690		83,711		32,049		18,303		134,063
Middle East/Africa	4,873		24,088		6,448		35,409		8,538		51,270		12,008		71,816
Canada/Latin America	12,024		1,744		4,316		18,084		23,122		3,205		10,629		36,956
	$	188,421	$	161,027	$	103,259	$	452,707	$	359,079	$	320,358	$	212,888	$	892,325