SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2019

12. SEGMENT INFORMATION

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
	March 31,
(In thousands)	2019			2018
Net sales
Commercial/Industrial	$	293,750		$	296,753
Defense	121,497			120,883
Power	164,147			132,158
Less: Intersegment revenues	(1,080		)	(2,272		)
Total consolidated	$	578,314		$	547,522

Operating income (expense)
Commercial/Industrial	$	39,446		$	39,225
Defense	17,653			19,728
Power	24,219			15,342
Corporate and eliminations ⁽¹⁾	(9,273		)	(9,797		)
Total consolidated	$	72,045		$	64,498

⁽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:



	Three Months Ended
	March 31,
(In thousands)	2019		2018
Total operating income	$	72,045	$	64,498
Interest expense	7,272		8,204
Other income, net	5,478		4,683
Earnings before income taxes	$	70,251	$	60,977



(In thousands)	March 31, 2019		December 31, 2018
Identifiable assets
Commercial/Industrial	$	1,455,070	$	1,398,601
Defense	1,036,152		961,298
Power	762,935		720,073
Corporate and Other	74,645		175,413
Total consolidated	$	3,328,802	$	3,255,385