SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

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				Nine Months Ended
	September 30,				September 30,
(In thousands)	2019		2018		2019		2018
Net sales
Commercial/Industrial	$	304,914	$	295,448	$	917,236	$	904,806
Defense	150,098		138,433		417,166		407,401
Power	160,943		162,176		501,672		456,383
Less: Intersegment revenues	(1,075)		(664)		(3,884)		(5,377)
Total consolidated	$	614,880	$	595,393	$	1,832,190	$	1,763,213
Operating income (expense)
Commercial/Industrial	$	48,086	$	44,786	$	143,768	$	135,747
Defense	38,210		33,615		85,524		91,984
Power	26,362		28,249		80,650		62,792
Corporate and eliminations (1)	(7,089)		(9,603)		(26,643)		(26,902)
Total consolidated	$	105,569	$	97,047	$	283,299	$	263,621

⁽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				Nine Months Ended
	September 30,				September 30,
(In thousands)	2019		2018		2019		2018
Total operating income	$	105,569	$	97,047	$	283,299	$	263,621
Interest expense	7,951		7,949		23,183		25,719
Other income, net	6,355		3,843		17,704		12,497
Earnings before income taxes	$	103,973	$	92,941	$	277,820	$	250,399

(In thousands)	September 30, 2019		December 31, 2018
Identifiable assets
Commercial/Industrial	$	1,462,833	$	1,398,601
Defense	1,080,148		961,298
Power	765,630		720,073
Corporate and Other	173,698		175,413
Total consolidated	$	3,482,309	$	3,255,385