Segment Information

3 Months Ended

Mar. 31, 2020

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 quarter and three months ended March 31, 2020 and 2019 were as follows:

	(Unaudited)
	Composite		Engineered		Corporate &
(In millions)	Materials		Products		Other (a)			Total
First Quarter 2020
Net sales to external customers	$	438.5	$	102.5	$	—		$	541.0
Intersegment sales		24.8	0.5			(25.3	)		—
Total sales	$	463.3	$	103.0	$	(25.3	)	$	541.0
Other operating expense		0.6		0.3		13.8			14.7
Operating income		91.5		6.5		(32.3	)		65.7
Depreciation and amortization		31.8		3.7		—			35.5
Stock-based compensation		4.7		1.2		8.5			14.4
Accrual basis additions to capital expenditures		20.2		1.7		—			21.9

First Quarter 2019
Net sales to external customers	$	487.7	$	122.2	$	—		$	609.9
Intersegment sales		19.2		0.1		(19.3	)		—
Total sales	$	506.9	$	122.3	$	(19.3	)	$	609.9
Operating income		112.5		14.8		(24.5	)		102.8
Depreciation and amortization		34.9		3.8		—			38.7
Stock-based compensation		4.1		0.8		6.2			11.1
Accrual basis additions to capital expenditures		56.8		0.7		—			57.5

(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, 2019	$	96.2		$	184.2		$	280.4
Amortization Expense		(0.5	)		(1.3	)		(1.8	)
Currency translation adjustments		(2.0	)	—				(2.0	)
Balance at March 31, 2020	$	93.7		$	182.9		$	276.6

At March 31, 2020, the balance of goodwill and intangible assets was $188.3 million and $88.3 million, respectively. During the first quarter of 2020 the Company determined that the economic uncertainty caused by the novel strain of coronavirus (“COVID-19”) pandemic was a trigger for an impairment review of goodwill. As a result of management’s review, we determined that it was not more likely than not that there was impairment.