NOTE 21. BUSINESS SEGMENTS

The Company's operating segments engage in business activities from which they may earn revenues and incur expenses and for which discrete financial information is available. Operating results for the operating segments are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segments and to assess performance. The Company's chief operating decision maker is identified as the Chief Executive Officer. Operating segments are aggregated for reporting purposes when the operating segments are identified as similar in accordance with the basic principles and aggregation criteria in the accounting standards. The Company's reporting segments are based primarily on product lines and secondarily on geographic area. The reporting segments have different lines of management responsibility as each business requires different marketing strategies and management expertise.

The Company structures its business into the following four reporting segments: Americas Recycling, Americas Mills, Americas Fabrication and International Mill. See Note 1, Nature of Operations, for more information about the reporting segments, including the types of products and services from which each reporting segment derives its net sales.

During fiscal 2018, the Company substantially completed the exit of the International Marketing and Distribution segment. See Note 3, Changes in Business, for further information. Certain components of the International Marketing and Distribution segment which were wound down in prior periods, including the Company's steel trading operations based in the United Kingdom, did not meet the criteria for discontinued operations, and thus, were included in continuing operations for all periods presented. These activities were included in the results of Corporate and Other, and were immaterial for the year ended August 31, 2018. Corporate and Other contains earnings on BRP assets and short-term investments as well as expenses of the Company's corporate headquarters and interest expense related to its long-term debt.

The Company uses adjusted EBITDA from continuing operations to compare and evaluate the financial performance of its segments. Adjusted EBITDA is the sum of the Company's earnings from continuing operations before interest expense, income taxes, depreciation and amortization expense, and impairment expense. Intersegment sales are generally priced at prevailing market prices. Certain corporate administrative expenses are allocated to the segments based upon the nature of the expense. The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies.

The following table summarizes certain financial information from continuing operations by reportable segment:



(in thousands)	Americas Recycling			Americas Mills			Americas Fabrication			International Mill		Corporate and Other			Eliminations			Continuing Operations
2018
Net sales-unaffiliated customers	$	1,117,714		$	1,204,181		$	1,416,572		$	885,919	$	19,337		$	—		$	4,643,723
Intersegment sales	247,715			792,722			11,310			1,119		—			(1,052,866		)	—
Net sales	1,365,429			1,996,903			1,427,882			887,038		19,337			(1,052,866		)	4,643,723
Adjusted EBITDA	68,694			301,805			(39,394		)	131,720		(110,604		)	—			352,221
Interest expense*	3,605			5,317			14,295			2,699		15,041			—			40,957
Capital expenditures**	8,592			121,029			14,386			23,552		3,808			—			171,367
Depreciation and amortization	17,246			61,512			13,537			27,255		11,958			—			131,508
Impairment of assets	180			8			14,157			27		—			—			14,372
Total assets***	291,838			1,115,339			739,151			485,548		1,173,869			(477,441		)	3,328,304
2017
Net sales-unaffiliated customers	$	865,462		$	917,689		$	1,364,826		$	636,402	$	59,690		$	—		$	3,844,069
Intersegment sales	146,038			647,765			11,102			871		1,311			(807,087		)	—
Net sales	1,011,500			1,565,454			1,375,928			637,273		61,001			(807,087		)	3,844,069
Adjusted EBITDA	33,541			224,183			27,259			76,068		(125,229		)	—			235,822
Interest expense*	2,979			(3,394		)	9,899			3,079		31,588			—			44,151
Capital expenditures**	7,148			172,738			15,495			12,603		5,090			—			213,074
Depreciation and amortization	15,501			49,419			13,400			25,830		20,340			—			124,490
Impairment of assets	559			—			—			150		1,021			—			1,730
Total assets***	240,371			933,022			683,609			464,428		981,584			(327,883		)	2,975,131
2016
Net sales-unaffiliated customers	$	594,316		$	839,432		$	1,479,125		$	520,288	$	162,907		$	—		$	3,596,068
Intersegment sales	111,479			659,416			10,330			543		78,224			(859,992		)	—
Net sales	705,795			1,498,848			1,489,455			520,831		241,131			(859,992		)	3,596,068
Adjusted EBITDA	(2,975		)	262,192			90,467			57,553		(102,000		)	—			305,237
Interest expense*	2,210			1,942			8,356			2,705		47,760			—			62,973
Capital expenditures**	4,891			110,375			14,958			27,155		5,681			—			163,060
Depreciation and amortization	17,923			47,924			13,620			25,911		20,881			—			126,259
Impairment of assets	38,900			—			—			208		920			—			40,028
Total assets***	195,532			798,481			659,165			378,248		1,526,642			(427,199		)	3,130,869

________________________

* Includes intercompany interest expense (income) in the segments, which is eliminated within Corporate and Other.

** Excludes immaterial capital expenditures from discontinued operations for the years ended August 31, 2018, 2017 and 2016.

*** Total assets listed in Corporate and Other includes assets from discontinued operations.

The following table presents a reconciliation of earnings from continuing operations to adjusted EBITDA from continuing operations:



	Year Ended August 31,
(in thousands)	2018		2017		2016
Earnings from continuing operations	$	135,237	$	50,175	$	62,001
Interest expense	40,957		44,151		62,973
Income taxes	30,147		15,276		13,976
Depreciation and amortization	131,508		124,490		126,259
Impairment of assets	14,372		1,730		40,028
Adjusted EBITDA from continuing operations	$	352,221	$	235,822	$	305,237

The following tables present the Company's external net sales from continuing operations by major product and geographic area:



	Year Ended August 31,
(in thousands)	2018		2017		2016
Major product information:
Steel products	$	3,114,227	$	2,584,359	$	2,620,452
Nonferrous scrap	630,609		506,220		364,690
Ferrous scrap	550,602		413,441		266,326
Construction materials	249,538		228,910		234,513
Other	98,747		111,139		110,087
Net sales	$	4,643,723	$	3,844,069	$	3,596,068



	Year Ended August 31,
(in thousands)	2018		2017		2016
Geographic area:
United States	$	3,460,018	$	2,984,934	$	2,771,418
Europe	892,452		666,396		657,758
Asia	215,110		161,126		139,368
Other	76,143		31,613		27,524
Net sales	$	4,643,723	$	3,844,069	$	3,596,068

The following table presents long-lived assets, net of accumulated depreciation and amortization, by geographic area:



	August 31,
(in thousands)	2018		2017		2016
United States	$	1,001,102	$	971,881	$	803,015
Europe and other	171,505		187,995		184,404
Total long-lived assets	$	1,172,607	$	1,159,876	$	987,419