SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

. SEGMENT INFORMATION

The Corporation’s segments are composed of similar product groupings that serve the same or similar end markets. Based on this approach, the Corporation has three reportable segments: Commercial/Industrial, Defense, and Power, as described below in further detail.

The Commercial/Industrial reportable segment is comprised of businesses that provide a diversified offering of highly engineered products and services supporting critical applications primarily across the commercial aerospace and general industrial markets. The products offered include electronic throttle control devices and transmission shifters, electro-mechanical actuation control components, valves, and surface technology services such as shot peening, laser peening, coatings, and advanced testing.

The Defense reportable segment is comprised of businesses that primarily provide products to the defense markets and to a lesser extent the commercial aerospace market. The products offered include commercial off-the-shelf (COTS) embedded computing board level modules, integrated subsystems, turret aiming and stabilization products, weapons handling systems, avionics and electronics, flight test equipment, and aircraft data management solutions.

The Power segment is comprised of businesses that primarily provide products to the power generation markets and to a lesser extent the naval defense market. The products offered include main coolant pumps, power-dense compact motors, generators, secondary propulsion systems, pumps, pump seals, control rod drive mechanisms, fastening systems, specialized containment doors, airlock hatches, spent fuel management products, and fluid sealing products.

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 as 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 are as follows:

	December 31,
(In thousands)	2016			2015			2014
Net sales
Commercial/Industrial	$	1,120,326		$	1,189,120		$	1,232,696
Defense	469,796			479,528			492,094
Power	524,967			545,013			527,034
Less: Intersegment Revenues	(6,158		)	(7,978		)	(8,698		)
Total Consolidated	$	2,108,931		$	2,205,683		$	2,243,126

(In thousands)	2016			2015			2014
Operating income (expense)
Commercial/Industrial	$	156,550		$	171,525		$	178,684
Defense	98,291			98,895			82,552
Power	76,472			74,987			51,449
Corporate and Eliminations (1)	(23,215		)	(34,790		)	(30,312		)
Total Consolidated	$	308,098		$	310,617		$	282,373

Depreciation and amortization expense
Commercial/Industrial	$	53,970	$	55,799	$	58,276
Defense	14,488		15,965		19,530
Power	23,032		23,419		23,060
Corporate	4,518		4,292		4,059
Total Consolidated	$	96,008	$	99,475	$	104,925

Segment assets
Commercial/Industrial	$	1,391,040	$	1,480,052	$	1,543,795
Defense	751,859		800,613		845,193
Power	516,321		629,612		579,736
Corporate	378,561		79,334		266,377
Assets held for sale	—		—		147,347
Total Consolidated	$	3,037,781	$	2,989,611	$	3,382,448

Capital expenditures
Commercial/Industrial	$	30,145	$	21,990	$	37,329
Defense	5,870		3,834		5,175
Power	6,653		6,163		16,057
Corporate	4,108		3,525		8,554
Total Consolidated (2)	$	46,776	$	35,512	$	67,115

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

⁽²⁾ Total capital expenditures included $0.2 million and $4.9 million of expenditures related to discontinued operations for the years ended 2015 and 2014, respectively.

Reconciliations

	December 31,
(In thousands)	2016			2015			2014
Earnings before taxes:
Total segment operating income	$	331,313		$	345,407		$	312,685
Corporate and administrative	(23,215		)	(34,790		)	(30,312		)
Interest expense	41,248			36,038			35,794
Other income, net	1,111			615			365
Total consolidated earnings before tax	$	267,961		$	275,194		$	246,944

	December 31,
(In thousands)	2016		2015		2014
Assets:
Total assets for reportable segments	$	2,659,220	$	2,910,277	$	2,968,724
Assets held for sale	—		—		147,347
Non-segment cash	357,021		42,164		247,249
Other assets	21,540		37,170		19,128
Total consolidated assets	$	3,037,781	$	2,989,611	$	3,382,448

Geographic Information

	December 31,
(In thousands)	2016		2015		2014
Revenues
United States of America	$	1,472,241	$	1,502,363	$	1,521,034
United Kingdom	114,752		135,673		145,092
Other foreign countries	521,938		567,647		577,000
Consolidated total	$	2,108,931	$	2,205,683	$	2,243,126

	December 31,
(In thousands)	2016		2015		2014
Long-Lived Assets
United States of America	$	272,826	$	293,612	$	323,937
United Kingdom	39,014		36,061		45,625
Other foreign countries	77,063		83,971		89,357
Consolidated total	$	388,903	$	413,644	$	458,919

Net sales by product line

	December 31,
(In thousands)	2016		2015		2014
Net sales
Flow Control	$	883,735	$	949,657	$	959,907
Motion Control	940,162		947,758		953,667
Surface Technologies	285,034		308,268		329,552
Consolidated total	$	2,108,931	$	2,205,683	$	2,243,126

The Flow Control products include valves, pumps, motors, generators, and instrumentation that manage the flow of liquids and gases, generate power and monitor or provide critical functions. Motion Control's products include turret aiming and stabilization products, embedded computing board level modules, electronic throttle control devices, transmission shifters, and electro-mechanical actuation control components. Surface Technologies include shot peening, laser peening, and coatings services that enhance the durability, extend the life, and prevent premature fatigue and failure on customer-supplied metal components.