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.


	Year Ended December 31,
(In thousands)	2019		2018		2017
Net sales
Commercial/Industrial	$	1,240,697	$	1,209,943	$	1,163,510
Defense	580,845		559,058		557,954
Power	670,950		649,754		554,048
Less: Intersegment Revenues	(4,531)		(6,920)		(4,486)
Total Consolidated	$	2,487,961	$	2,411,835	$	2,271,026


(In thousands)	2019		2018		2017
Operating income (expense)
Commercial/Industrial	$	196,455	$	182,669	$	168,146
Defense	129,653		128,446		109,338
Power	112,954		98,858		81,119
Corporate and Eliminations ⁽¹⁾	(35,109)		(36,347)		(33,483)
Total Consolidated	$	403,953	$	373,626	$	325,120


Depreciation and amortization expense
Commercial/Industrial	$	48,227	$	50,690	$	53,180
Defense	21,495		20,578		20,702
Power	28,589		27,737		22,019
Corporate	4,101		3,944		4,094
Total Consolidated	$	102,412	$	102,949	$	99,995


Segment assets
Commercial/Industrial	$	1,470,477	$	1,398,601	$	1,444,097
Defense	1,184,116		961,298		1,044,776
Power	804,432		720,073		482,753
Corporate	305,236		175,413		264,695
Total Consolidated	$	3,764,261	$	3,255,385	$	3,236,321


Capital expenditures
Commercial/Industrial	$	34,077	$	30,411	$	29,028
Defense	4,034		5,793		9,276
Power	28,051		11,350		10,039
Corporate	3,590		5,863		4,362
Total Consolidated	$	69,752	$	53,417	$	52,705

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


	Year Ended December 31,
(In thousands)	2019		2018		2017
Earnings before taxes:
Total segment operating income	$	439,062	$	409,973	$	358,603
Corporate and Eliminations	(35,109)		(36,347)		(33,483)
Interest expense	31,347		33,983		41,471
Other income, net	23,856		16,596		15,970
Total consolidated earnings before tax	$	396,462	$	356,239	$	299,619


	As of December 31,
(In thousands)	2019		2018		2017
Assets:
Total assets for reportable segments	$	3,459,025	$	3,079,972	$	2,971,626
Non-segment cash	235,260		138,053		204,664
Other assets	69,976		37,360		60,031
Total consolidated assets	$	3,764,261	$	3,255,385	$	3,236,321


	Year Ended December 31,
(In thousands)	2019		2018		2017
Revenues
United States of America	$	1,710,371	$	1,623,511	$	1,562,180
United Kingdom	120,297		126,439		118,350
Other foreign countries	657,293		661,885		590,496
Consolidated total	$	2,487,961	$	2,411,835	$	2,271,026


	As of December 31,
(In thousands)	2019		2018		2017
Long-Lived Assets - Property, plant, and equipment, net
United States of America	$	271,609	$	258,504	$	264,829
United Kingdom	34,228		34,649		41,100
Other foreign countries	79,756		81,507		84,306
Consolidated total	$	385,593	$	374,660	$	390,235


	Year Ended December 31,
(In thousands)	2019		2018		2017
Net sales
Flow Control	$	1,051,821	$	1,008,262	$	899,705
Motion Control	1,130,593		1,090,703		1,075,218
Surface Technologies	305,547		312,870		296,103
Consolidated total	$	2,487,961	$	2,411,835	$	2,271,026