Segment Information

9 Months Ended

Sep. 30, 2016

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, 2016 and 2015 is as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions	Materials		Products		Other (a)			Total
Third Quarter 2016
Net sales to external customers	$	398.2	$	102.3	$	—		$	500.5
Intersegment sales		16.2		—		(16.2	)		—
Total sales		414.4		102.3		(16.2	)		500.5
Operating income		88.8		12.9		(12.6	)		89.1
Depreciation and amortization		21.7		1.8		—			23.5
Stock-based compensation		0.7		—		0.1			0.8
Accrual basis additions to capital expenditures		84.4		5.9		0.1			90.4
Third Quarter 2015
Net sales to external customers	$	347.4	$	101.4	$	—		$	448.8
Intersegment sales		15.9		—		(15.9	)		—
Total sales		363.3		101.4		(15.9	)		448.8
Operating income		74.1		14.2		(10.3	)		78.0
Depreciation and amortization		17.7		1.5		0.1			19.3
Stock-based compensation		0.7		0.1		—			0.8
Accrual basis additions to capital expenditures		83.1		3.2		—			86.3
Nine Months Ended September 30, 2016
Net sales to external customers	$	1,219.3	$	301.5	$	—		$	1,520.8
Intersegment sales		53.2		—		(53.2	)		—
Total sales		1,272.5		301.5		(53.2	)		1,520.8
Operating income		281.2		36.8		(44.9	)		273.1
Depreciation and amortization		63.5		5.4		0.1			69.0
Stock-based compensation		4.9		0.9		7.8			13.6
Accrual basis additions to capital expenditures		221.6		10.9		0.1			232.6
Nine Months Ended September 30, 2015
Net sales to external customers	$	1,088.3	$	308.0	$	—		$	1,396.3
Intersegment sales		56.2		0.1		(56.3	)		—
Total sales		1,144.5		308.1		(56.3	)		1,396.3
Operating income		254.5		43.3		(46.6	)		251.2
Depreciation and amortization		51.7		4.5		0.3			56.5
Stock-based compensation		5.4		0.8		9.0			15.2
Accrual basis additions to capital expenditures		216.8		11.0		—			227.8
_________________

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

Goodwill and Intangible Assets

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

(In millions)	September 30, 2016		December 31, 2015
Composite Materials	$	57.9	$	42.8
Engineered Products		16.0		16.1
Goodwill and intangible assets	$	73.9	$	58.9

Goodwill and intangible assets increased by $16.0 million in 2016 primarily due to the Formax acquisition (see Note 10). No impairments have been recorded against these amounts.