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Operating Segments and Related Information
 9 Months Ended
Sep. 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.

Note 17.        Operating Segments and Related Information - (Continued)
Operating Segments - (Continued)
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 September 30,
 
Nine Months Ended September 30,
 
2020
 
2019
 
2020
 
2019
Revenue—External Customers:
 
 
 
 
 
 
 
Industrial Technologies
$
281,119

 
$
257,900

 
$
857,732

 
$
813,775

Defense Technologies
185,295

 
213,348

 
541,620

 
584,207

 
$
466,414

 
$
471,248

 
$
1,399,352

 
$
1,397,982

Revenue—Intersegments:
 
 
 
 
 
 
 
Industrial Technologies
$
3,639

 
$
3,759

 
$
10,269

 
$
12,221

Defense Technologies
2,289

 
959

 
5,562

 
3,906

Eliminations
(5,928
)
 
(4,718
)
 
(15,831
)
 
(16,127
)
 
$
—

 
$
—

 
$
—

 
$
—

Segment operating income:
 
 
 
 
 
 
 
Industrial Technologies
$
87,743

 
$
63,713

 
$
259,145

 
$
204,365

Defense Technologies
38,811

 
53,809

 
113,120

 
146,485

 
$
126,554

 
$
117,522

 
$
372,265

 
$
350,850

A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2020
 
2019
 
2020
 
2019
Consolidated segment operating income
$
126,554

 
$
117,522

 
$
372,265

 
$
350,850

Unallocated corporate expenses
(27,812
)
 
(25,491
)
 
(93,082
)
 
(83,416
)
Amortization of purchased intangible assets
(11,872
)
 
(15,477
)
 
(35,522
)
 
(42,451
)
Restructuring expenses
(293
)
 
(2,166
)
 
(28,779
)
 
(5,776
)
Consolidated earnings from operations
86,577

 
74,388

 
214,882

 
219,207

Loss on debt extinguishment
(9,126
)
 
—

 
(9,126
)
 
—

Interest and non-operating income (expense)
2,470

 
(7,262
)
 
(20,743
)
 
(19,201
)
Consolidated earnings before income taxes
$
79,921

 
$
67,126

 
$
185,013

 
$
200,006

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):

Note 17.        Operating Segments and Related Information - (Continued)
Operating Segments - (Continued)
 
September 30,
 
December 31,
 
2020
 
2019
Operating segment assets:
 
 
 
 Net accounts receivable, inventories and demonstration assets:
 
 
 
Industrial Technologies
$
420,319

 
$
405,166

Defense Technologies
395,752

 
332,639

 
$
816,071

 
$
737,805

Goodwill:
 
 
 
Industrial Technologies
640,165

 
635,899

Defense Technologies
710,482

 
728,697

 
$
1,350,647

 
$
1,364,596

Total operating segment assets
$
2,166,718

 
$
2,102,401

 
 
 
 
Assets not allocated:
 
 
 
 Cash and cash equivalents
$
319,995

 
$
284,592

 Prepaid expenses and other current assets
92,620

 
86,337

 Property and equipment, net
255,457

 
255,905

 Deferred income taxes
37,902

 
39,983

 Intangible assets, net
211,206

 
247,514

 Other assets
129,014

 
120,809

Total assets
$
3,212,912

 
$
3,137,541


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 September 30, 2020
 
Nine Months Ended September 30, 2020
 
Industrial Technologies
 
Defense Technologies
 
Total
 
Industrial Technologies
 
Defense Technologies
 
Total
United States
$
127,594

 
$
134,518

 
$
262,112

 
$
362,232

 
$
362,165

 
$
724,397

Europe
73,031

 
24,312

 
$
97,343

 
216,197

 
69,733

 
$
285,930

Asia
53,991

 
11,214

 
$
65,205

 
188,329

 
39,292

 
$
227,621

Middle East/Africa
9,072

 
10,135

 
$
19,207

 
41,887

 
60,357

 
$
102,244

Canada/Latin America
17,431

 
5,116

 
$
22,547

 
49,087

 
10,073

 
$
59,160

 
$
281,119

 
$
185,295

 
$
466,414

 
$
857,732

 
$
541,620

 
$
1,399,352

 
Three Months Ended September 30, 2019
 
Nine Months Ended September 30, 2019
 
Industrial Technologies
 
Defense Technologies
 
Total
 
Industrial Technologies
 
Defense Technologies
 
Total
United States
$
123,495

 
$
146,421

 
$
269,916

 
$
391,574

 
$
389,940

 
$
781,514

Europe
61,695

 
24,537

 
86,232

 
209,998

 
76,133

 
286,131

Asia
50,736

 
16,080

 
66,816

 
145,750

 
51,014

 
196,764

Middle East/Africa
7,395

 
24,571

 
31,966

 
23,046

 
60,793

 
83,839

Canada/Latin America
14,579

 
1,739

 
16,318

 
43,407

 
6,327

 
49,734

 
$
257,900

 
$
213,348

 
$
471,248

 
$
813,775

 
$
584,207

 
$
1,397,982


Note 17.        Operating Segments and Related Information - (Continued)
Revenue and Long-Lived Assets by Geographic Area - (Continued)
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):
 
September 30,
 
December 31,
 
2020
 
2019
United States
$
1,125,851

 
$
1,137,375

Europe
415,105

 
435,024

Other foreign
405,368

 
416,425

 
$
1,946,324

 
$
1,988,824

Major Customers
Revenue derived from major customers is as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2020
 
2019
 
2020
 
2019
United States government
$
155,437

 
$
165,682

 
$
417,632

 
$
459,336