SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Prior to the first quarter of 2015, the Corporation reported its results of operations through three segments: Commercial/Industrial, Defense, and Energy. Beginning in the first quarter of 2015, the Corporation realigned its reportable segments as a result of its previously announced discontinued operations. The Energy segment was renamed Power. The new Power segment includes businesses serving the nuclear naval defense and new build (AP1000) power generation markets, which had previously operated within the Defense segment. The remaining oil and gas businesses that had operated within the Energy segment have joined the Commercial/Industrial segment. As result of this realignment, the Corporation’s new reportable segments are: Commercial/Industrial, Defense, and Power.

The Commercial/Industrial reportable segment is comprised of businesses that provide a diversified offering of highly engineered products and services supporting critical applications across the aerospace, automotive and general industrial markets. The products offered include electronic throttle control devices and transmission shifters, electro-mechanical actuation control components, and pressure relief management systems.

The Defense reportable segment provides embedded computing board level modules, integrated subsystems, turret aiming and stabilization products, and weapons handling systems to defense markets.

The Power segment is comprised of businesses that manufacture and service main coolant pumps, power-dense compact motors, generators, and secondary propulsion systems. We also leveraged proven defense technology and engineering expertise to provide Reactor Coolant Pump (RCP) technology, pump seals, and control rod drive mechanisms for commercial nuclear power plants. Additional products include a wide range of hardware, pumps, pressure vessels, fastening systems, specialized containment doors, airlock hatches, spent fuel management products, and fluid sealing technologies for nuclear power plants and nuclear equipment manufacturers.

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 were as follows:

	Three Months Ended						Six Months Ended
(In thousands)	June 30,						June 30,
	2015			2014			2015			2014
Net sales
Commercial/Industrial	$	305,074		$	315,114		$	604,972		$	617,131
Defense	120,149			118,889			234,501			232,042
Power	121,661			137,320			256,796			267,595
Less: Intersegment revenues	(1,690		)	(2,125		)	(4,876		)	(4,611		)
Total consolidated	$	545,194		$	569,198		$	1,091,393		$	1,112,157
Operating income (expense)
Commercial/Industrial	$	45,253		$	45,750		$	88,542		$	84,246
Defense	24,391			18,002			42,418			33,786
Power	1,454			14,865			20,966			29,140
Corporate and eliminations (1)	(5,656		)	(6,458		)	(13,649		)	(13,979		)
Total consolidated	$	65,442		$	72,159		$	138,277		$	133,193

⁽¹⁾ Corporate and eliminations includes pension expense, environmental remediation and administrative expenses, legal, foreign currency transactional gains and losses, and other expenses.

Operating income by reportable segment and the reconciliation to income from continuing operations before income taxes are as follows:

	Three Months Ended						Six Months Ended
(In thousands)	June 30,						June 30,
	2015			2014			2015			2014
Total operating income	$	65,442		$	72,159		$	138,277		$	133,193
Interest expense	(8,985		)	(8,986		)	(17,981		)	(18,041		)
Other income, net	(37		)	(23		)	444			89
Earnings from continuing operations before income taxes	$	56,420		$	63,150		$	120,740		$	115,241

(In thousands)	June 30, 2015		December 31, 2014
Identifiable assets
Commercial/Industrial	$	1,561,489	$	1,534,882
Defense	806,804		837,891
Power	581,061		588,366
Corporate and Other	148,496		291,025
Assets held for sale	14,761		147,347
Total consolidated	$	3,112,611	$	3,399,511