Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information

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 business segments for the quarters and six months ended June 30, 2012 and 2011 is as follows:

	(Unaudited)
(In millions)	Composite Materials (b)			Engineered Products		Corporate & Other (a)			Total
Second Quarter 2012
Net sales to external customers:
Commercial aerospace	$	172.4		$	61.1	$	—		$	233.5
Space and defense	67.2			20.9		—			88.1
Industrial	77.1			0.5		—			77.6
Net sales to external customers	316.7			82.5		—			399.2
Intersegment sales	14.9			0.2		(15.1		)	—
Total sales	331.6			82.7		(15.1		)	399.2
Operating income (a)	80.9			11.7		(18.7		)	73.9
Depreciation and amortization	13.3			1.0		—			14.3
Stock-based compensation expense	0.9			0.1		2.0			3.0
Other operating (income) expense	(14.5		)	—		5.0			(9.5		)
Accrual basis additions to capital expenditures	67.0			2.6		0.2			69.8
Second Quarter 2011
Net sales to external customers:
Commercial aerospace	$	150.9		$	56.9	$	—		$	207.8
Space and defense	62.5			19.2		—			81.7
Industrial	63.4			0.8		—			64.2
Net sales to external customers	276.8			76.9		—			353.7
Intersegment sales	13.9			0.2		(14.1		)	—
Total sales	290.7			77.1		(14.1		)	353.7
Operating income (a)	48.5			11.9		(11.0		)	49.4
Depreciation and amortization	12.8			1.0		—			13.8
Stock-based compensation expense	0.9			0.1		1.4			2.4
Accrual basis additions to capital expenditures	28.4			1.5		—			29.9
Six Months Ended June 30, 2012
Net sales to external customers
Commercial aerospace	$	351.9		$	123.9	$	—		$	475.8
Space and defense	131.1			41.9		—			173.0
Industrial	149.9			0.6		—			150.5
Net sales to external customers	632.9			166.4		—			799.3
Intersegment sales	30.8			0.3		(31.1		)	—
Total sales	663.7			166.7		(31.1		)	799.3
Operating income (a)	146.7			23.5		(35.7		)	134.5
Depreciation and amortization	26.2			2.1		—			28.3
Stock-based compensation expense	3.0			0.5		7.0			10.5
Other operating (income) expense	(14.5		)	—		5.0			(9.5		)
Accrual basis additions to capital expenditures	110.6			3.7		0.2			114.5
Six Months Ended June 30, 2011
Net sales to external customers
Commercial aerospace	$	294.1		$	111.3	$	—		$	405.4
Space and defense	122.4			39.0		—			161.4
Industrial	116.6			1.9		—			118.5
Net sales to external customers	533.1			152.2		—			685.3
Intersegment sales	27.8			0.5		(28.3		)	—
Total sales	560.9			152.7		(28.3		)	685.3
Operating income (a)	98.3			24.4		(26.1		)	96.6
Depreciation and amortization	25.7			2.1		0.1			27.9
Stock-based compensation expense	2.5			0.4		5.9			8.8
Other operating (income) expense	(5.7		)	—		—			(5.7		)
Accrual basis additions to capital expenditures	52.7			2.4		—			55.1

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

(b)In the quarter and six months ended June 30, 2012, operating income for Composite Materials includes $9.6 million of insurance proceeds from a 2011 business interruption claim and a $4.9 million gain on the sale of land from a previously closed manufacturing facility. Corporate and other includes a $5.0 million charge during the current quarter for additional environmental reserves primarily for remediation of a manufacturing facility sold in 1986. First six months 2011 operating income for Composite Materials includes a $5.7 million gain resulting from the curtailment of our U.K. pension plan.

Goodwill and Intangible Assets

The carrying amount of gross goodwill and intangible assets by segment is as follows:

(In millions)	June 30, 2012		December 31, 2011
Composite Materials	$	41.4	$	41.4
Engineered Products	16.0		16.0
Goodwill and intangible assets	$	57.4	$	57.4

No impairments have been recorded against these amounts.