Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Note 9 — Segment Information

The financial results for our operating segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our operating segments based on operating income, and generally account for intersegment sales

based on arm’s length prices. Corporate and certain other expenses are not allocated to the operating segments, except to the extent that the expense can be directly attributable to the business segment.

Financial information for our operating segments for the quarters and nine months ended September 30, 2022 and 2021 were as follows:

	(Unaudited)
	Composite		Engineered			Corporate &
(In millions)	Materials		Products			Other (a)			Total
Quarter Ended September 30, 2022
Net sales to external customers	$	293.5	$	71.2		$	—		$	364.7
Intersegment sales		15.4		0.7			(16.1	)		—
Total sales	$	308.9	$	71.9		$	(16.1	)	$	364.7
Other operating expense		0.4		-			—			0.4
Operating income		41.4		6.0			(6.6	)		40.8
Depreciation and amortization		27.5		3.5			—			31.0
Stock-based compensation		1.0		0.3			1.1			2.4
Accrual basis additions to capital expenditures		17.9		2.8			0.1			20.8
Quarter Ended September 30, 2021
Net sales to external customers	$	254.1	$	79.7		$	—		$	333.8
Intersegment sales		15.0		0.4			(15.4	)		—
Total sales	$	269.1	$	80.1		$	(15.4	)	$	333.8
Other operating expense		0.8		-			-			0.8
Operating income (loss)		30.0		6.5			(13.7	)		22.8
Depreciation and amortization		30.1		3.6			—			33.7
Stock-based compensation		0.7		0.1			2.1			2.9
Accrual basis additions to capital expenditures		3.7		2.8			—			6.5
Nine Months Ended September 30, 2022
Net sales to external customers	$	925.4	$	222.9		$	—		$	1,148.3
Intersegment sales		50.4		2.0			(52.4	)		—
Total sales	$	975.8	$	224.9		$	(52.4	)	$	1,148.3
Other operating (income) expense		1.6		0.1			(19.4	)		(17.7	)
Operating income (loss)		131.2		25.7			(22.2	)		134.7
Depreciation and amortization		84.2		10.6			0.1			94.9
Stock-based compensation		4.5		1.3			9.4			15.2
Accrual basis additions to capital expenditures		42.5		6.5			0.1			49.1
Nine Months Ended September 30, 2021
Net sales to external customers	$	732.2	$	232.2		$	—		$	964.4
Intersegment sales		42.8		1.8			(44.6	)		—
Total sales	$	775.0	$	234.0		$	(44.6	)	$	964.4
Other operating (income) expense		16.3		(0.5	)		0.2			16.0
Operating income (loss)		61.9		17.1			(50.2	)		28.8
Depreciation and amortization		91.4		10.9			0.1			102.4
Stock-based compensation		2.1		0.4			13.7			16.2
Accrual basis additions to capital expenditures		10.7		3.6			—			14.3

(a)We do not allocate corporate expenses to the operating segments.

Goodwill and Intangible Assets	Composite			Engineered
(In millions)	Materials			Products			Total
Balance at December 31, 2021	$	93.4		$	174.1		$	267.5
Amortization expense		(0.4	)		(1.3	)		(1.7	)
Currency translation adjustments		(10.2	)		(2.5	)		(12.7	)
Balance at September 30, 2022	$	82.8		$	170.3		$	253.1

At September 30, 2022, the balance of goodwill and intangible assets was $183.4 million and $69.7 million, respectively.