SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2019

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						Six Months Ended
	June 30,						June 30,
(In thousands)	2019			2018			2019			2018
Net sales
Commercial/Industrial	$	318,572		$	312,605		$	612,322		$	609,358
Defense	145,571			148,085			267,068			268,968
Power	176,582			162,049			340,729			294,207
Less: Intersegment revenues	(1,729		)	(2,441		)	(2,809		)	(4,713		)
Total consolidated	$	638,996		$	620,298		$	1,217,310		$	1,167,820

Operating income (expense)
Commercial/Industrial	$	56,236		$	51,736		$	95,682		$	90,961
Defense	29,661			38,641			47,314			58,369
Power	30,069			19,201			54,288			34,543
Corporate and eliminations ⁽¹⁾	(10,281		)	(7,502		)	(19,554		)	(17,299		)
Total consolidated	$	105,685		$	102,076		$	177,730		$	166,574

⁽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				Six Months Ended
	June 30,				June 30,
(In thousands)	2019		2018		2019		2018
Total operating income	$	105,685	$	102,076	$	177,730	$	166,574
Interest expense	7,960		9,566		15,232		17,770
Other income, net	5,871		3,971		11,349		8,654
Earnings before income taxes	$	103,596	$	96,481	$	173,847	$	157,458



(In thousands)	June 30, 2019		December 31, 2018
Identifiable assets
Commercial/Industrial	$	1,467,700	$	1,398,601
Defense	1,068,806		961,298
Power	771,379		720,073
Corporate and Other	118,755		175,413
Total consolidated	$	3,426,640	$	3,255,385