NOTE 14. BUSINESS SEGMENTS

The Company's operating segments earn revenues and incur expenses 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, of the audited consolidated financial statements included in the 2017 Form 10-K for more information about the reporting segments, including the types of products and services from which each reporting segment derives its net sales. During the second quarter of fiscal 2018, the Company substantially completed the exit of the International Marketing and Distribution segment. See Note 2, 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, are included in continuing operations for all periods presented. Such activities are included in the results of Corporate and Other, and are immaterial for the three and nine months ended May 31, 2018. Corporate and Other also contains earnings or losses on assets and liabilities related to the 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 operating profit (loss) from continuing operations to compare and evaluate the financial performance of its segments. Adjusted operating profit (loss) is the sum of the Company's earnings from continuing operations before interest expense, income taxes and discounts on sales of accounts receivable. 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, of the audited consolidated financial statements included in the 2017 Form 10-K.

The following is a summary of certain financial information from continuing operations by reportable segment:



	Three Months Ended May 31, 2018
(in thousands)	Americas Recycling		Americas Mills		Americas Fabrication			International Mill		Corporate and Other			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	292,679	$	332,459	$	375,183		$	201,438	$	2,725		$	—		$	1,204,484
Intersegment sales	71,419		220,604		3,058			299		—			(295,380		)	—
Net sales	364,098		553,063		378,241			201,737		2,725			(295,380		)	1,204,484
Adjusted operating profit (loss) from continuing operations	14,350		70,404		(16,096		)	24,370		(22,678		)	(2,941		)	67,409

	Nine Months Ended May 31, 2018
(in thousands)	Americas Recycling		Americas Mills		Americas Fabrication			International Mill		Corporate and Other			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	832,448	$	841,895	$	1,015,934		$	633,134	$	11,874		$	—		$	3,335,285
Intersegment sales	171,618		550,573		8,059			846		—			(731,096		)	—
Net sales	1,004,066		1,392,468		1,023,993			633,980		11,874			(731,096		)	3,335,285
Adjusted operating profit (loss) from continuing operations	36,580		142,639		(47,995		)	72,297		(65,648		)	(4,413		)	133,460
Total assets as of May 31, 2018*	310,513		1,078,308		684,929			476,946		1,128,360			(467,603		)	3,211,453

	Three Months Ended May 31, 2017
(in thousands)	Americas Recycling		Americas Mills		Americas Fabrication			International Mill		Corporate and Other			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	247,896	$	243,934	$	377,188		$	167,409	$	8,286		$	—		$	1,044,713
Intersegment sales	46,270		183,342		2,788			230		3			(232,633		)	—
Net sales	294,166		427,276		379,976			167,639		8,289			(232,633		)	1,044,713
Adjusted operating profit (loss) from continuing operations	9,247		50,734		1,808			12,971		(20,281		)	772			55,251

	Nine Months Ended May 31, 2017
(in thousands)	Americas Recycling		Americas Mills		Americas Fabrication			International Mill		Corporate and Other			Eliminations			Continuing Operations
Net sales-unaffiliated customers	$	590,760	$	667,872	$	1,013,847		$	436,413	$	51,047		$	—		$	2,759,939
Intersegment sales	103,442		483,162		8,355			621		643			(596,223		)	—
Net sales	694,202		1,151,034		1,022,202			437,034		51,690			(596,223		)	2,759,939
Adjusted operating profit (loss) from continuing operations	11,981		139,002		9,025			32,517		(72,176		)	(22		)	120,327
Total assets as of August 31, 2017*	240,371		933,022		683,609			464,428		687,984			(327,883		)	2,681,531

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* Excludes total assets from discontinued operations of $34.0 million at May 31, 2018 and $293.6 million at August 31, 2017.

Reconciliations of earnings from continuing operations to adjusted operating profit from continuing operations are provided below:



	Three Months Ended May 31,				Nine Months Ended May 31,
(in thousands)	2018		2017		2018		2017
Earnings from continuing operations	$	42,325	$	31,567	$	83,977	$	60,245
Income taxes	13,312		11,006		23,465		21,231
Interest expense	11,511		12,448		25,303		38,212
Discounts on sales of accounts receivable	261		230		715		639
Adjusted operating profit from continuing operations	$	67,409	$	55,251	$	133,460	$	120,327