Segment Information

9 Months Ended

Sep. 30, 2013

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 operating segments for the quarters and nine months ended September 30, 2013 and 2012 is as follows:

	(Unaudited)
(In millions)	Composite Materials (b)			Engineered Products		Corporate & Other (a)			Total
Third Quarter 2013
Net sales to external customers:
Commercial aerospace	$	191.2		$	70.8	$	—		$	262.0
Space and defense	67.6			26.8		—			94.4
Industrial	53.8			2.1		—			55.9
Net sales to external customers	312.6			99.7		—			412.3
Intersegment sales	17.1			0.1		(17.2		)	—
Total sales	329.7			99.8		(17.2		)	412.3
Operating income (a)	68.7			14.9		(14.6		)	69.0
Depreciation and amortization	13.4			1.2		0.1			14.7
Stock-based compensation expense	1.0			0.2		1.5			2.7
Accrual basis additions to capital expenditures	36.8			3.0		—			39.8
Third Quarter 2012
Net sales to external customers:
Commercial aerospace	$	164.3		$	69.8	$	—		$	234.1
Space and defense	68.7			21.9		—			90.6
Industrial	66.9			—		—			66.9
Net sales to external customers	299.9			91.7		—			391.6
Intersegment sales	14.0			0.9		(14.9		)	—
Total sales	313.9			92.6		(14.9		)	391.6
Operating income (a)	57.0			14.9		(11.9		)	60.0
Depreciation and amortization	13.4			1.2		0.1			14.7
Stock-based compensation expense	0.7			0.2		1.7			2.6
Accrual basis additions to capital expenditures	55.6			4.6		—			60.2
Nine Months Ended September 30, 2013
Net sales to external customers
Commercial aerospace	$	593.6		$	207.3	$	—		$	800.9
Space and defense	210.7			76.4		—			287.1
Industrial	157.8			5.6		—			163.4
Net sales to external customers	962.1			289.3		—			1,251.4
Intersegment sales	51.8			1.2		(53.0		)	—
Total sales	1,013.9			290.5		(53.0		)	1,251.4
Operating income (a)	207.8			43.4		(47.3		)	203.9
Depreciation and amortization	39.1			3.5		0.2			42.8
Stock-based compensation expense	4.3			0.9		9.5			14.7
Accrual basis additions to capital expenditures	113.2			8.7		—			121.9
Nine Months Ended September 30, 2012
Net sales to external customers
Commercial aerospace	$	516.2		$	193.7	$	—		$	709.9
Space and defense	199.8			63.8		—			263.6
Industrial	216.8			0.6		—			217.4
Net sales to external customers	932.8			258.1		—			1,190.9
Intersegment sales	44.8			1.2		(46.0		)	—
Total sales	977.6			259.3		(46.0		)	1,190.9
Operating income (a), (b)	203.7			38.4		(47.6		)	194.5
Depreciation and amortization	39.6			3.3		0.1			43.0
Stock-based compensation expense	3.7			0.7		8.7			13.1
Other operating (income) expense (b)	(14.5		)	—		5.0			(9.5		)
Accrual basis additions to capital expenditures	166.2			8.3		0.2			174.7

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

(b) In the nine months ended September 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. In addition, Corporate and other includes a $5.0 million charge for additional environmental reserves primarily for remediation of a manufacturing facility sold in 1986 (see note 10).

Goodwill and Intangible Assets

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

(In millions)	September 30, 2013		December 31, 2012
Composite Materials	$	44.9	$	41.7
Engineered Products	16.0		16.1
Goodwill and intangible assets	$	60.9	$	57.8

No impairments have been recorded against these amounts.