Note 10 — 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 six months ended June 30, 2018 and 2017 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
Second Quarter 2018
Net sales to external customers	$	445.8	$	101.7	$	—		$	547.5
Intersegment sales		20.3		—		(20.3	)		—
Total sales	$	466.1	$	101.7	$	(20.3	)	$	547.5
Operating income		93.1		15.9		(12.5	)		96.5
Depreciation and amortization		27.5		2.3		—			29.8
Stock-based compensation		0.9		0.1		1.1			2.1
Accrual basis additions to capital expenditures		43.4		1.3		—			44.7

Second Quarter 2017
Net sales to external customers	$	397.3	$	94.0	$	—		$	491.3
Intersegment sales		15.1		—		(15.1	)		—
Total sales	$	412.4	$	94.0	$	(15.1	)	$	491.3
Operating income		92.1		12.1		(14.5	)		89.7
Depreciation and amortization		23.3		1.8		—			25.1
Stock-based compensation		1.2		0.2		1.0			2.4
Accrual basis additions to capital expenditures		74.5		2.7		—			77.2

Six Months Ended June 30, 2018
Net sales to external customers	$	890.4	$	197.2	$	—		$	1,087.6
Intersegment sales		39.5		—		(39.5	)		—
Total sales	$	929.9	$	197.2	$	(39.5	)	$	1,087.6
Operating income		184.1		25.8		(31.0	)		178.9
Depreciation and amortization		55.0		4.6		—			59.6
Stock-based compensation		4.5		0.8		6.7			12.0
Accrual basis additions to capital expenditures		88.7		1.3		—			90.0

Six Months Ended June 30, 2017
Net sales to external customers	$	784.8	$	185.3	$	—		$	970.1
Intersegment sales		32.2		—		(32.2	)		—
Total sales	$	817.0	$	185.3	$	(32.2	)	$	970.1
Operating income		174.0		25.1		(30.8	)		168.3
Depreciation and amortization		45.8		3.7		—			49.5
Stock-based compensation		4.6		0.9		7.8			13.3
Accrual basis additions to capital expenditures		161.1		9.0		—			170.1

(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:

	June 30,		December 31,
(In millions)	2018		2017
Composite Materials	$	100.7	$	103.7
Engineered Products	44.6			45.0
Goodwill and intangible assets	$	145.3	$	148.7

No impairments have been recorded against these amounts.