SEGMENT INFORMATION | 17. 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: Aerospace & Industrial, Defense Electronics, and Naval & Power, as described below in further detail. The Aerospace & 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, and to a lesser extent, the defense markets. The products offered include electronic throttle control devices, joysticks, power management electronics, traction inverters and transmission shifters, sensors, electro-mechanical actuation control components, and surface technology services such as shot peening, laser peening, and engineered coatings. The Defense Electronics 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, tactical communications solutions for battlefield network management, weapons handling systems, avionics and electronics, flight test equipment, and aircraft data management solutions. The Naval & Power reportable segment is comprised of businesses that primarily provide products to the naval defense and power & process markets, and to a lesser extent, the aerospace defense markets. The products offered include main coolant pumps, power-dense compact motors, generators, secondary propulsion systems, pumps, pump seals, valves, control rod drive mechanisms, fastening systems, specialized containment doors, airlock hatches, spent fuel management products, fluid sealing products, reactor protection systems, and arresting systems. 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 (CODM), its Chief Executive Officer. The CODM uses operating income to assess the performance of each segment by evaluating current period results against budget and prior period results when determining the allocation of operating and capital resources to each segment. Operating results by reportable segment are as follows: Year Ended December 31, (In thousands) 2024 2023 2022 Net sales Aerospace & Industrial $ 933,206 $ 889,744 $ 838,885 Defense Electronics 914,358 818,547 693,709 Naval & Power 1,278,895 1,142,590 1,030,918 Less: Intersegment Revenues (5,270) (5,508) (6,487) Total net sales $ 3,121,189 $ 2,845,373 $ 2,557,025 Cost of sales Aerospace & Industrial $ 600,131 $ 577,038 $ 550,001 Defense Electronics 481,374 432,313 365,372 Naval & Power 868,109 761,202 678,745 Total cost of sales $ 1,949,614 $ 1,770,553 $ 1,594,118 Research and development expenses Aerospace & Industrial $ 26,729 $ 23,211 $ 21,132 Defense Electronics 52,132 50,865 48,587 Naval & Power 11,435 10,793 9,179 Total research and development expenses $ 90,296 $ 84,869 $ 78,898 Selling expenses Aerospace & Industrial $ 25,614 $ 25,897 $ 25,355 Defense Electronics 58,705 54,811 47,202 Naval & Power 58,332 54,847 46,951 Total selling expenses $ 142,651 $ 135,555 $ 119,508 General and administrative expenses Aerospace & Industrial $ 123,907 $ 118,320 $ 105,401 Defense Electronics 95,472 88,783 77,980 Naval & Power 140,696 126,521 113,810 Total general and administrative expenses $ 360,075 $ 333,624 $ 297,191 Other segment items (2) Aerospace & Industrial $ 8,802 $ — $ — Defense Electronics 1,936 — — Naval & Power 660 — 4,651 Total other segment items $ 11,398 $ — $ 4,651 Operating income Aerospace & Industrial $ 148,023 $ 145,278 $ 136,996 Defense Electronics 224,739 191,775 154,568 Naval & Power 199,663 189,227 177,582 Total Segment $ 572,425 $ 526,280 $ 469,146 Corporate and Eliminations (1) (43,828) (41,678) (45,703) Total Consolidated $ 528,597 $ 484,602 $ 423,443 Depreciation and amortization expense Aerospace & Industrial $ 32,217 $ 33,994 $ 34,336 Defense Electronics 31,017 33,347 35,120 Naval & Power 41,499 46,165 39,712 Corporate 2,934 2,666 2,859 Total Consolidated $ 107,667 $ 116,172 $ 112,027 Capital expenditures Aerospace & Industrial $ 19,861 $ 17,067 $ 18,554 Defense Electronics 11,180 5,573 3,504 Naval & Power 25,952 18,112 13,652 Corporate 3,981 3,914 2,507 Total Consolidated $ 60,974 $ 44,666 $ 38,217 (1) Corporate and Eliminations includes pension expense, environmental remediation and administrative expenses, legal, and other expenses. (2) Other segment items includes restructuring expenses associated with the 2024 Restructuring Program as well as the loss on divestiture from the Corporation's sale of its industrial valves business in 2022. As of December 31, (In thousands) 2024 2023 Segment assets Aerospace & Industrial $ 1,090,739 $ 1,077,808 Defense Electronics 1,446,949 1,517,877 Naval & Power 1,927,325 1,496,063 Corporate 520,691 529,221 Total Consolidated $ 4,985,704 $ 4,620,969 Reconciliations Year Ended December 31, (In thousands) 2024 2023 2022 Earnings before taxes: Total reportable segment operating income $ 572,425 $ 526,280 $ 469,146 Corporate and Eliminations (43,828) (41,678) (45,703) Interest expense 44,869 51,393 46,980 Other income, net 38,328 29,861 12,732 Earnings before income taxes $ 522,056 $ 463,070 $ 389,195 As of December 31, (In thousands) 2024 2023 Assets: Total assets for reportable segments $ 4,465,013 $ 4,091,748 Non-segment cash 165,762 228,930 Other assets 354,929 300,291 Total consolidated assets $ 4,985,704 $ 4,620,969 Geographic Information Year Ended December 31, (In thousands) 2024 2023 2022 Revenues United States of America $ 2,287,285 $ 2,060,986 $ 1,879,001 United Kingdom 134,621 115,078 102,965 Other foreign countries 699,283 669,309 575,059 Consolidated total $ 3,121,189 $ 2,845,373 $ 2,557,025 As of December 31, (In thousands) 2024 2023 Long-Lived Assets - Property, plant, and equipment, net United States of America $ 250,781 $ 243,542 United Kingdom 26,244 25,898 Other foreign countries 62,093 63,356 Consolidated total $ 339,118 $ 332,796 |