SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

17. SEGMENT INFORMATION

Prior to the first quarter of 2015, the Corporation reported its results of operations through three segments: Commercial/Industrial, Defense, and Energy. Beginning in the first quarter of 2015, the Corporation realigned its reportable segments as a result of its previously announced discontinued operations. The Energy segment was renamed Power. The new Power segment includes businesses serving the nuclear naval defense and new build (AP1000) power generation markets, which had previously operated within the Defense segment. The remaining oil and gas businesses that had operated within the Energy segment have joined the Commercial/Industrial segment. As result of this realignment, the Corporation’s new reportable segments are: Commercial/Industrial, Defense, and Power, as described in Item 1. Business.

The Commercial/Industrial reportable segment is comprised of businesses that provide a diversified offering of highly engineered products and services supporting critical applications primarily across the commercial aerospace and general industrial markets. The products offered include electronic throttle control devices and transmission shifters, electro-mechanical actuation control components, valves, and surface technology services such as shot peening, laser peening, coatings, and advanced testing.

The Defense reportable segment is comprised of businesses that primarily provide products to the defense markets and to a lesser extent the commercial aerospace market. The products offered include commercial off-the-shelf (COTS) embedded computing board level modules, integrated subsystems, turret aiming and stabilization products, weapons handling systems, avionics and electronics, flight test equipment, and aircraft data management solutions.

The Power segment is comprised of businesses that primarily provide products to the power generation markets and to a lesser extent the naval defense market. The products offered include main coolant pumps, power-dense compact motors, generators, secondary propulsion systems, pumps, pump seals, control rod drive mechanisms, fastening systems, specialized containment doors, airlock hatches, spent fuel management products, and fluid sealing products.

The Corporation’ s measure of segment profit or loss is operating income. Interest expense and income taxes are not reported on an operating segment basis as they are not considered in the segments’ performance evaluation by the Corporation’s chief operating decision-maker, its Chief Executive Officer.

Net sales and operating income by reportable segment are as follows:

	December 31,
(In thousands)	2015			2014			2013
Net sales
Commercial/Industrial	$	1,189,120		$	1,232,696		$	1,079,826
Defense	479,528			492,094			481,850
Power	545,013			527,034			563,405
Less: Intersegment Revenues	(7,978		)	(8,698		)	(7,000		)
Total Consolidated	$	2,205,683		$	2,243,126		$	2,118,081

(In thousands)	2015			2014			2013
Operating income (expense)
Commercial/Industrial	$	171,525		$	178,684		$	131,305
Defense	98,895			82,552			74,360
Power	74,987			51,449			73,402
Corporate and Eliminations (1)	(34,790		)	(30,312		)	(41,944		)
Total Consolidated	$	310,617		$	282,373		$	237,123

Depreciation and amortization expense
Commercial/Industrial	$	55,799	$	58,276	$	56,841
Defense	15,965		19,530		19,235
Power	23,419		23,060		21,484
Corporate	4,292		4,059		4,655
Total Consolidated	$	99,475	$	104,925	$	102,215

Segment assets
Commercial/Industrial	$	1,500,931	$	1,543,795	$	1,509,011
Defense	808,197		845,193		888,689
Power	642,655		579,736		581,323
Corporate	77,595		283,441		57,691
Assets held for sale	—		147,346		421,560
Total Consolidated	$	3,029,378	$	3,399,511	$	3,458,274

Capital expenditures
Commercial/Industrial	$	21,990	$	37,329	$	48,696
Defense	3,834		5,175		3,443
Power	6,163		16,057		12,144
Corporate	3,525		8,554		7,959
Total Consolidated (2)	$	35,512	$	67,115	$	72,242

⁽¹⁾ Corporate and Eliminations includes pension expense, environmental remediation and administrative expenses, legal, foreign currency transactional gains and losses, and other expenses.

⁽²⁾ Total capital expenditures included $0.2 million, $4.9 million, and $7.0 million of expenditures related to discontinued operations for the years ended 2015, 2014, and 2013, respectively.

Reconciliations

	December 31,
(In thousands)	2015			2014			2013
Earnings before taxes:
Total segment operating income	$	345,407		$	312,685		$	279,067
Corporate and administrative	(34,790		)	(30,312		)	(41,944		)
Interest expense	(36,038		)	(35,794		)	(37,053		)
Other income, net	615			365			980
Total consolidated earnings before tax	$	275,194		$	246,944		$	201,050

	December 31,
(In thousands)	2015		2014		2013
Assets:
Total assets for reportable segments	$	2,951,783	$	2,968,724	$	2,979,023
Assets held for sale	—		147,346		421,560
Non-segment cash	42,164		247,249		13,308
Other assets	35,431		36,192		44,383
Total consolidated assets	$	3,029,378	$	3,399,511	$	3,458,274

Geographic Information

	December 31,
(In thousands)	2015		2014		2013
Revenues
United States of America	$	1,502,363	$	1,521,034	$	1,444,019
United Kingdom	135,673		145,092		134,815
Other foreign countries	567,647		577,000		539,247
Consolidated total	$	2,205,683	$	2,243,126	$	2,118,081

	December 31,
(In thousands)	2015		2014		2013
Long-Lived Assets
United States of America	$	293,612	$	323,937	$	365,691
United Kingdom	36,061		45,625		43,434
Other foreign countries	83,971		89,357		106,593
Consolidated total	$	413,644	$	458,919	$	515,718

Net sales by product line

	December 31,
(In thousands)	2015		2014		2013
Net sales
Flow Control	$	949,657	$	959,907	$	940,910
Motion Control	947,758		953,667		873,519
Surface Technologies	308,268		329,552		303,652
Consolidated total	$	2,205,683	$	2,243,126	$	2,118,081

The Flow Control products include valves, pumps, motors, generators, and instrumentation that manage the flow of liquids and gases, generate power and monitor or provide critical functions. Motion Controls products include turret aiming and stabilization products, embedded computing board level modules, electronic throttle control devices, transmission shifters, and electro-mechanical actuation control components. Surface Technologies include shot peening, laser peening, and coatings services that enhance the durability, extend the life, and prevent premature fatigue and failure on customer-supplied metal components.