SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Prior to the first quarter of 2014, the Corporation reported its results of operations through three segments: Flow Control, Controls, and Surface Technologies. Beginning in the first quarter of 2014, the Corporation realigned its reportable segments with its end markets to strengthen its ability to service customers and recognize certain organizational efficiencies. As result of this realignment the Corporation has three new reportable segments: Commercial/Industrial, Defense, and Energy. The Corporation's former Surface Technologies segment is consolidated within the new Commercial/Industrial segment. The commercial businesses which were in the former Controls segment form part of the new Commercial/Industrial segment. The Corporation's defense businesses, which were primarily in the Corporation’s former Controls segment and to a lesser extent in the former Flow Control segment, are now consolidated within the new Defense segment. The Corporation's Oil and Gas and Nuclear divisions, which were in the former Flow Control segment, form the new Energy segment.

The Corporation's measure of segment profit or loss is operating income. Interest expense and income taxes are not reported on an operating segment basis because they are not considered in the segments’ performance evaluation by the Corporation’s chief operating decision-maker, its Chief Executive Officer.

Net sales and operating income by reportable segment was as follows:

	(In thousands)
	Three Months Ended
	March 31,
	2014			2013
Net sales
Commercial/Industrial	$	266,925		$	220,966
Defense	202,523			211,745
Energy	173,844			167,742
Less: Intersegment revenues	(1,880		)	(7,766		)
Total consolidated	$	641,412		$	592,687
Operating income (expense)
Commercial/Industrial	$	32,960		$	20,651
Defense	21,174			16,877
Energy	12,552			10,796
Corporate and eliminations (1)	(7,585		)	(10,298		)
Total consolidated	$	59,101		$	38,026

⁽¹⁾ Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses.

Adjustments to reconcile operating income to earnings before income taxes:

	(In thousands)
	Three Months Ended
	March 31,
	2014			2013
Total operating income	$	59,101		$	38,026
Interest expense	(9,054		)	(8,659		)
Other income, net	65			474
Earnings before income taxes	$	50,112		$	29,841

	(In thousands)
	March 31, 2014		December 31, 2013
Identifiable assets
Commercial/Industrial	$	1,360,283	$	1,310,521
Defense	1,220,473		1,292,462
Energy	813,985		798,028
Corporate and Other	63,894		57,263
Total consolidated	$	3,458,635	$	3,458,274