Segment Information

6 Months Ended

Jun. 30, 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 quarters and six months ended June 30, 2020 and 2019 were as follows:

	(Unaudited)
	Composite			Engineered			Corporate &
(In millions)	Materials			Products			Other (a)			Total
Second Quarter 2020
Net sales to external customers	$	306.2		$	72.5		$	—		$	378.7
Intersegment sales		15.4			0.4			(15.8	)		—
Total sales	$	321.6		$	72.9		$	(15.8	)	$	378.7
Other operating expense		8.5			2.4			2.2			13.1
Operating income (loss)		20.1			(0.5	)		(13.2	)		6.4
Depreciation and amortization		30.8			4.0			0.1			34.9
Stock-based compensation		(0.3	)		(0.1	)		(1.3	)		(1.7	)
Accrual basis additions to capital expenditures		10.5			1.0			—			11.5

Second Quarter 2019
Net sales to external customers	$	484.0		$	125.0		$	—		$	609.0
Intersegment sales		21.5			—			(21.5	)		—
Total sales	$	505.5		$	125.0		$	(21.5	)	$	609.0
Operating income (loss)		111.8			16.3			(13.0	)		115.1
Depreciation and amortization		30.1			3.8			0.1			34.0
Stock-based compensation		1.1			0.4			0.9			2.4
Accrual basis additions to capital expenditures		49.0			1.1			—			50.1

Six Months Ended June 30, 2020
Net sales to external customers	$	744.7		$	175.0		$	—		$	919.7
Intersegment sales		40.2			0.9			(41.1	)		—
Total sales	$	784.9		$	175.9		$	(41.1	)	$	919.7
Other operating expense		9.1			2.7			16.0			27.8
Operating income (loss)		111.6			6.0			(45.5	)		72.1
Depreciation and amortization		62.6			7.7			0.1			70.4
Stock-based compensation		4.4			1.1			7.2			12.7
Accrual basis additions to capital expenditures		30.7			2.7			—			33.4

Six Months Ended June 30, 2019
Net sales to external customers	$	971.7		$	247.2		$	—		$	1,218.9
Intersegment sales		40.7			0.1			(40.8	)		—
Total sales	$	1,012.4		$	247.3		$	(40.8	)	$	1,218.9
Operating income (loss)		224.3			31.1			(37.5	)		217.9
Depreciation and amortization		65.0			7.6			0.1			72.7
Stock-based compensation		5.2			1.2			7.1			13.5
Accrual basis additions to capital expenditures		105.8			1.8			—			107.6

(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		(0.9	)		(2.5	)		(3.4	)
Currency translation adjustments		(1.4	)	—				(1.4	)
Balance at June 30, 2020	$	93.9		$	181.7		$	275.6

At June 30, 2020, the balance of goodwill and intangible assets was $188.9 million and $86.7 million, respectively. During the first half of 2020 the Company determined that the economic uncertainty caused by the 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.