16.	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. The CODM evaluates performance and allocates resources based primarily on operating income (loss). The 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 carbon flat products segment and the specialty metals flat products segments are at times consolidated and referred to as the flat products segments.

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

three

months ended

March 31, 2019

and

2018.

	For the Three Months Ended
	March 31,
(in thousands)	2019			2018
Net sales
Carbon flat products	$	278,536		$	240,894
Specialty metals flat products		88,097			65,529
Tubular and pipe products		79,286			69,175
Total net sales	$	445,919		$	375,598

Depreciation and amortization
Carbon flat products	$	2,814		$	2,560
Specialty metals flat products		526			204
Tubular and pipe products		1,368			1,456
Corporate		42			26
Total depreciation and amortization	$	4,750		$	4,246

Operating income (loss)
Carbon flat products	$	1,226		$	8,106
Specialty metals flat products		2,244			3,011
Tubular and pipe products		5,615			4,267
Corporate expenses		(3,011	)		(3,039	)
Total operating income	$	6,074		$	12,345
Other income (loss), net		14			(46	)
Income before interest and income taxes		6,088			12,299
Interest and other expense on debt		3,242			1,986
Income before income taxes	$	2,846		$	10,313

	For the Three Months Ended
	March 31,
(in thousands)	2019		2018
Capital expenditures
Flat products segments	$	1,598	$	4,944
Tubular and pipe products		801		2,710
Corporate		-		89
Total capital expenditures	$	2,399	$	7,743

	As of
	March 31,		December 31,
(in thouands)	2019		2018
Assets
Flat products segments	$	584,006	$	560,116
Tubular and pipe products		213,931		200,016
Corporate		1,425		608
Total assets	$	799,362	$	760,740

There were

material revenue transactions between the carbon flat products, specialty metals products, and tubular and pipe products segments.

The Company sells certain products internationally, primarily in Canada and Mexico. International sales are immaterial to the consolidated financial results and to the individual segments’ results.