SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2018

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						Nine Months Ended
	September 30,						September 30,
(In thousands)	2018			2017			2018			2017
Net sales
Commercial/Industrial	$	295,448		$	294,158		$	904,806		$	865,070
Defense	138,433			142,681			407,401			384,917
Power	162,176			132,102			456,383			412,667
Less: Intersegment revenues	(664		)	(1,040		)	(5,377		)	(3,509		)
Total consolidated	$	595,393		$	567,901		$	1,763,213		$	1,659,145

Operating income (expense)
Commercial/Industrial	$	44,786		$	46,702		$	135,747		$	120,874
Defense	33,615			33,575			91,984			65,800
Power	28,249			17,771			62,792			57,191
Corporate and eliminations ⁽¹⁾	(9,603		)	(5,634		)	(26,902		)	(24,027		)
Total consolidated	$	97,047		$	92,414		$	263,621		$	219,838

⁽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 are as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2018		2017		2018		2017
Total operating income	$	97,047	$	92,414	$	263,621	$	219,838
Interest expense	7,949		10,457		25,719		31,584
Other income, net	3,843		4,457		12,497		12,033
Earnings before income taxes	$	92,941	$	86,414	$	250,399	$	200,287



(In thousands)	September 30, 2018		December 31, 2017
Identifiable assets
Commercial/Industrial	$	1,402,217	$	1,444,097
Defense	1,005,091		1,044,776
Power	705,262		482,753
Corporate and Other	163,501		264,695
Total consolidated	$	3,276,071	$	3,236,321