Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

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 nine months ended September 30, 2020 and 2019 were as follows:

	(Unaudited)
	Composite			Engineered			Corporate &
(In millions)	Materials			Products			Other (a)			Total
Third Quarter 2020
Net sales to external customers	$	215.7		$	71.2		$	—		$	286.9
Intersegment sales		7.8			0.7			(8.5	)		—
Total sales	$	223.5		$	71.9		$	(8.5	)	$	286.9
Other operating expense		16.4			—			(0.6	)		15.8
Operating income (loss)		(36.6	)		(2.7	)		1.7			(37.6	)
Depreciation and amortization		31.7			3.9			—			35.6
Stock-based compensation		1.5			0.5			(1.7	)		0.3
Accrual basis additions to capital expenditures		4.7			1.3			—			6.0
Third Quarter 2019
Net sales to external customers	$	448.0		$	124.5		$	—		$	572.5
Intersegment sales		23.3			—			(23.3	)		—
Total sales	$	471.3		$	124.5		$	(23.3	)	$	572.5
Operating income (loss)		100.1			20.3			(10.5	)		109.9
Depreciation and amortization		30.7			3.7			—			34.4
Stock-based compensation		1.2			0.2			1.0			2.4
Accrual basis additions to capital expenditures		51.0			2.3			—			53.3
Nine Months Ended September 30, 2020
Net sales to external customers	$	960.4		$	246.2		$	—		$	1,206.6
Intersegment sales		48.0			1.6			(49.6	)		—
Total sales	$	1,008.4		$	247.8		$	(49.6	)	$	1,206.6
Other operating expense		25.5			2.7			15.4			43.6
Operating income (loss)		75.0			3.3			(43.8	)		34.5
Depreciation and amortization		94.3			11.6			0.1			106.0
Stock-based compensation		5.9			1.6			5.5			13.0
Accrual basis additions to capital expenditures		35.4			4.0			—			39.4
Nine Months Ended September 30, 2019
Net sales to external customers	$	1,419.7		$	371.7		$	—		$	1,791.4
Intersegment sales		64.0			0.1			(64.1	)		—
Total sales	$	1,483.7		$	371.8		$	(64.1	)	$	1,791.4
Operating income (loss)		324.4			51.4			(48.0	)		327.8
Depreciation and amortization		95.7			11.3			0.1			107.1
Stock-based compensation		6.4			1.4			8.1			15.9
Accrual basis additions to capital expenditures		156.8			4.1			—			160.9

(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		(1.2	)		(3.7	)		(4.9	)
Currency translation adjustments		1.1		—				1.1
Balance at September 30, 2020	$	96.1		$	180.5		$	276.6

At September 30, 2020, the balance of goodwill and intangible assets was $190.9 million and $85.7 million, respectively. During the first quarter of 2020 the Company determined that the economic uncertainty caused by the COVID-19 pandemic was a trigger for an impairment review of goodwill with no other triggers for impairment identified. As a result of management’s review, we determined that it was not more likely than not that there was impairment.