SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2018

11. SEGMENT INFORMATION

The Corporation manages and evaluates its operations based on end markets to strengthen its ability to service customers and recognize certain organizational efficiencies. Based on this approach, the Corporation has three reportable segments: Commercial/Industrial, Defense, and Power.

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 were as follows:



	Three Months Ended
	March 31,
(In thousands)	2018			2017
Net sales
Commercial/Industrial	$	296,753		$	279,056
Defense	120,883			114,837
Power	132,158			130,595
Less: Intersegment revenues	(2,272		)	(897		)
Total consolidated	$	547,522		$	523,591

Operating income (expense)
Commercial/Industrial	$	39,225		$	30,552
Defense	19,728			11,097
Power	15,342			15,545
Corporate and eliminations ⁽¹⁾	(9,797		)	(9,502		)
Total consolidated	$	64,498		$	47,692

⁽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:



	Three Months Ended
	March 31,
(In thousands)	2018		2017
Total operating income	$	64,498	$	47,692
Interest expense	8,204		10,377
Other income, net	4,683		3,847
Earnings before income taxes	$	60,977	$	41,162



(In thousands)	March 31, 2018		December 31, 2017
Identifiable assets
Commercial/Industrial	$	1,476,555	$	1,444,097
Defense	1,055,115		1,044,776
Power	487,278		482,753
Corporate and Other	160,111		264,695
Total consolidated	$	3,179,059	$	3,236,321