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Note 15 - Segment Information
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
15.
Segment Information:
 
The Company follows the accounting guidance that requires the utilization of a “management approach” to define and report the financial results of operating segments. The management approach defines operating segments along the lines used by the Company’s chief operating decision maker (CODM) to assess performance and make operating and resource allocation decisions. Our CODM evaluates performance and allocates resources based primarily on operating income (loss). Our operating segments are based primarily on internal management reporting.
 
The Company operates in
three
reportable segments; carbon flat products, specialty metals flat products, and tubular and pipe products. The flat products segments’ assets and resources are shared by the carbon and specialty metals segments and both segments’ products are stored in the shared facilities and, in some locations, processed on shared equipment. As such, total assets and capital expenditures are reported in the aggregate for the flat products segments. Due to the shared assets and resources, certain of the flat products segment expenses are allocated between the carbon flat products segment and the specialty metals flat products segment based upon an established allocation methodology. Through its carbon flat products segment, the Company sells and distributes large volumes of processed carbon and coated flat-rolled sheet, coil and plate products. Through its specialty metals flat products segment, the Company sells and distributes processed aluminum and stainless flat-rolled sheet and coil products, flat bar products and fabricated parts. Through its tubular and pipe products segment, the Company distributes metal tubing, pipe, bar, valve and fittings and fabricates pressure parts supplied to various industrial markets.
 
Corporate expenses are reported as a separate line item for segment reporting purposes. Corporate expenses include the unallocated expenses related to managing the entire Company (i.e., all
three
segments), including compensation for certain personnel, expenses related to being a publicly traded entity such as board of directors expenses, audit expenses, and various other professional fees.
 
The following table provides financial information by segment and reconciles the Company’s operating income by segment to the consolidated income before income taxes for the years ended
December
31,
2016,
2015
and
2014.
The Company assesses the performance of the segments based on operating income.
 
 
 
For the Year Ended
 
 
 
December 31,
 
(in thousands)
 
2016
 
 
2015
 
 
2014
 
Net sales
                        
Carbon flat products
   $
670,983
    $
765,400
    $
985,039
 
Specialty metals flat products
   
189,930
     
192,516
     
206,692
 
Tubular and pipe products
    
194,203
     
217,627
     
244,539
 
Total net sales
   $
1,055,116
    $
1,175,543
    $
1,436,270
 
                         
Depreciation and amortization
                        
Carbon flat products
   $
11,690
    $
12,200
    $
14,250
 
Specialty metals flat products
    
797
     
698
     
805
 
Tubular and pipe products
    
5,896
     
6,036
     
5,624
 
Corporate
    
102
     
102
     
101
 
Total depreciation and amortization
   $
18,485
    $
19,036
    $
20,780
 
                         
Operating income
                        
Carbon flat products
   $
(4,371
 )   $
(7,217
 )   $
6,306
 
Specialty metals flat products
    
9,841
     
(1,074
 )    
6,109
 
Tubular and pipe products
    
7,713
     
12,583
     
10,185
 
Corporate
    
(7,435
 )    
(7,120
 )    
(7,972
 )
Goodwill and intangible asset impairment (a)
    
-
     
(24,951
 )    
(23,836
 )
Total operating income (loss)
   $
5,748
    $
(27,779
 )   $
(9,208
 )
Other loss, net
    
(55
 )    
(125
 )    
(126
 )
Income (loss) before interest and income taxes
    
5,693
     
(27,904
 )    
(9,334
 )
Interest and other expense on debt
    
5,273
     
5,690
     
6,780
 
Income (loss) before income taxes
   $
420
    $
(33,594
 )   $
(16,114
 )
 
(a)
$24,451
of the goodwill and intangible asset impairment in
2015
related to the tubular and pipe products segment,
 
$500
related to the specialty metals flat products segment. The goodwill impairment in
2014
related to the 
tubular and pipe products segment. 
 
(in thousands)
 
2016
 
 
2015
 
 
2014
 
Capital expenditures
                        
Flat products
   $
5,105
    $
4,295
    $
4,540
 
Tubular and pipe products
    
1,719
     
3,022
     
3,273
 
Corporate
   
-
     
-
     
21
 
Total capital expenditures
   $
6,824
    $
7,317
    $
7,834
 
                         
Assets
                        
Flat products
   $
363,626
    $
328,295
     
 
  
Tubular and pipe products
    
192,088
     
183,129
     
 
  
Corporate
    
354
     
456
     
 
  
Total assets
   $
556,068
    $
511,880
     
 
  
 
There were no material revenue transactions between the carbon flat products, specialty metals flat products and tubular and pipe products segments for the years ended
December
31,
2016,
2015
and
2014.
 
The Company sells certain products internationally, primarily in Canada, Mexico and Dominican Republic. International sales have been immaterial to the consolidated financial results and to the individual segment’s results.