SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2017

The Corporation manages and evaluates its operations based on end markets to strengthen its ability to service customers and recognize certain organizational efficiencies. Based on this approach, the Corporation has three reportable segments: Commercial/Industrial, Defense, and Power.

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 were as follows:



	Three Months Ended						Six Months Ended
(In thousands)	June 30,						June 30,
	2017			2016			2017			2016
Net sales
Commercial/Industrial	$	291,856		$	290,428		$	570,912		$	565,633
Defense	127,399			114,877			242,236			220,607
Power	149,970			129,123			280,565			252,869
Less: Intersegment revenues	(1,572		)	(1,662		)	(2,469		)	(2,836		)
Total consolidated	$	567,653		$	532,766		$	1,091,244		$	1,036,273

Operating income (expense)
Commercial/Industrial	$	43,693		$	38,957		$	74,314		$	69,009
Defense	21,187			18,609			32,342			35,454
Power	24,870			16,114			41,410			30,742
Corporate and eliminations ⁽¹⁾	(6,479		)	(5,591		)	(13,568		)	(9,853		)
Total consolidated	$	83,271		$	68,089		$	134,498		$	125,352

⁽¹⁾ Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses.

Adjustments to reconcile operating income to earnings before income taxes are as follows:



	Three Months Ended				Six Months Ended
(In thousands)	June 30,				June 30,
	2017		2016		2017		2016
Total operating income	$	83,271	$	68,089	$	134,498	$	125,352
Interest expense	10,750		10,273		21,127		20,206
Other income, net	190		101		502		335
Earnings before income taxes	$	72,711	$	57,917	$	113,873	$	105,481



(In thousands)	June 30, 2017		December 31, 2016
Identifiable assets
Commercial/Industrial	$	1,420,411	$	1,391,040
Defense	1,013,636		751,859
Power	517,053		516,321
Corporate and Other	170,174		378,561
Total consolidated	$	3,121,274	$	3,037,781