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Operating Segments and Related Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Operating Business Units and Related Information Operating Segments and Related Information
Operating Segments
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. In the first quarter of 2020, the Company completed a business reorganization as part of its "Project Be Ready" restructuring plan which resulted in identification of two reportable segments (Industrial Technologies and Defense Technologies). The Company commenced operating and reporting under the new organization structure effective January 1, 2020. See Note 19, “Restructuring” for further information on Project Be Ready.
Industrial Technologies Segment. The Industrial Technologies 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, manufactures, and services offerings that image, measure, and analyze thermal energy, gases, and other environmental elements for industrial, commercial, and scientific applications, imaging payloads for Unmanned Aerial Systems ("UAS"), and machine vision cameras. Additionally, the segment develops, manufactures, and services fixed-mounted visible and thermal imaging cameras and related analytics software for perimeter security, critical infrastructure, recreational and commercial maritime, and traffic monitoring and control. Offerings include thermal imaging cameras, analytics software, gas detection cameras, firefighting cameras, process automation cameras, environmental test and measurement devices, security cameras, marine electronics, and traffic cameras.
Defense Technologies Segment. The Defense Technologies 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. 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 segment also produces advanced multi-mission unmanned air and ground based systems serving US Department of Defense and Federal government agencies, public safety, and governmental customers in international markets.
The following tables present revenue, segment operating income, and segment assets for the two segments. Segment operating income as reviewed by the CODM is revenue less cost of goods sold and operating expenses, excluding general corporate expenses, separation, transaction, and integration costs, amortization of acquired intangible assets, restructuring expenses and asset impairment charges, and discrete legal and compliance matters. 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.
Segment operating income information is as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Revenue—External Customers:
 
 
 
 
 
 
 
Industrial Technologies
$
300,198

 
$
284,489

 
$
576,613

 
$
555,875

Defense Technologies
181,817

 
197,509

 
356,325

 
370,859

 
$
482,015

 
$
481,998

 
$
932,938

 
$
926,734

Revenue—Intersegments:
 
 
 
 
 
 
 
Industrial Technologies
$
3,927

 
$
3,876

 
$
6,629

 
$
8,462

Defense Technologies
1,438

 
1,436

 
3,273

 
2,947

Eliminations
(5,365
)
 
(5,312
)
 
(9,902
)
 
(11,409
)
 
$
—

 
$
—

 
$
—

 
$
—

Segment operating income:
 
 
 
 
 
 
 
Industrial Technologies
$
107,137

 
$
71,633

 
$
171,402

 
$
140,652

Defense Technologies
41,155

 
45,786

 
74,309

 
92,676

 
$
148,292

 
$
117,419

 
$
245,711

 
$
233,328


Note 17.        Operating Segments and Related Information - (Continued)
Operating Segments - (Continued)
A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Consolidated segment operating income
$
148,292

 
$
117,419

 
$
245,711

 
$
233,328

Unallocated corporate expenses
(29,026
)
 
(29,635
)
 
(65,270
)
 
(57,925
)
Amortization of purchased intangible assets
(11,754
)
 
(21,046
)
 
(23,650
)
 
(26,974
)
Restructuring expenses
(7,702
)
 
(3,001
)
 
(28,486
)
 
(3,610
)
Consolidated earnings from operations
99,810

 
63,737

 
128,305

 
144,819

Interest and non-operating expenses, net
(17,916
)
 
(5,614
)
 
(23,213
)
 
(11,939
)
Consolidated earnings before income taxes
$
81,894

 
$
58,123

 
$
105,092

 
$
132,880

Unallocated corporate expenses include general corporate expenses, separation, transaction, and integration costs, amortization of acquired intangible assets, restructuring expenses and asset impairment charges, and discrete legal and compliance matters.
A reconciliation of the Company's consolidated segment operating assets to consolidated total assets is as follows (in thousands):
 
June 30,
 
December 31,
 
2020
 
2019
Operating segment assets:
 
 
 
 Net accounts receivable, inventories and demonstration assets:
 
 
 
Industrial Technologies
$
402,454

 
$
405,166

Defense Technologies
366,786

 
332,639

 
$
769,240

 
$
737,805

Goodwill:
 
 
 
Industrial Technologies
633,421

 
635,899

Defense Technologies
707,568

 
728,697

 
$
1,340,989

 
$
1,364,596

Total operating segment assets
$
2,110,229

 
$
2,102,401

 
 
 
 
Assets not allocated:
 
 
 
 Cash and cash equivalents
$
332,958

 
$
284,592

 Prepaid expenses and other current assets
84,078

 
86,337

 Property and equipment, net
255,770

 
255,905

 Deferred income taxes
41,393

 
39,983

 Intangible assets, net
222,123

 
247,514

 Other assets
110,746

 
120,809

Total assets
$
3,157,297

 
$
3,137,541



Note 17.        Operating Segments and Related Information - (Continued)
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):
 
Three Months Ended June 30, 2020
 
Six Months Ended June 30, 2020
 
Industrial Technologies
 
Defense Technologies
 
Total
 
Industrial Technologies
 
Defense Technologies
 
Total
United States
$
131,301

 
$
111,700

 
$
243,001

 
$
234,638

 
$
227,647

 
$
462,285

Europe
77,831

 
25,945

 
$
103,776

 
143,166

 
45,421

 
$
188,587

Asia
60,951

 
16,214

 
$
77,165

 
134,338

 
28,078

 
$
162,416

Middle East/Africa
14,788

 
25,094

 
$
39,882

 
32,815

 
50,222

 
$
83,037

Canada/Latin America
15,327

 
2,864

 
$
18,191

 
31,656

 
4,957

 
$
36,613

 
$
300,198

 
$
181,817

 
$
482,015

 
$
576,613

 
$
356,325

 
$
932,938

 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
 
Industrial Technologies
 
Defense Technologies
 
Total
 
Industrial Technologies
 
Defense Technologies
 
Total
United States
$
134,656

 
$
134,216

 
$
268,872

 
$
268,079

 
$
243,519

 
$
511,598

Europe
74,439

 
25,000

 
99,439

 
148,303

 
51,596

 
199,899

Asia
53,622

 
17,548

 
71,170

 
95,014

 
34,934

 
129,948

Middle East/Africa
5,786

 
18,815

 
24,601

 
15,651

 
36,222

 
51,873

Canada/Latin America
15,986

 
1,930

 
17,916

 
28,828

 
4,588

 
33,416

 
$
284,489

 
$
197,509

 
$
481,998

 
$
555,875

 
$
370,859

 
$
926,734

Long-lived assets consist 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):
 
June 30,
 
December 31,
 
2020
 
2019
United States
$
1,104,883

 
$
1,137,375

Europe
416,394

 
435,024

Other foreign
408,351

 
416,425

 
$
1,929,628

 
$
1,988,824

Major Customers
Revenue derived from major customers is as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
United States government
$
130,047

 
$
156,161

 
$
262,196

 
$
293,654