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, as certain of 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.

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

and

six

months ended

June 30, 2019

and

2018.

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
(in thousands)	2019			2018			2019			2018
Net sales
Carbon flat products	$	255,870		$	279,292		$	534,406		$	520,185
Specialty metals flat products		96,058			97,354			184,155			162,884
Tubular and pipe products		77,223			76,271			156,509			145,446
Total net sales	$	429,151		$	452,917		$	875,070		$	828,515

Depreciation and amortization
Carbon flat products	$	2,960		$	2,580		$	5,774		$	5,140
Specialty metals flat products		436			337			962			540
Tubular and pipe products		1,379			1,469			2,747			2,925
Corporate		42			25			84			51
Total depreciation and amortization	$	4,817		$	4,411		$	9,567		$	8,656

Operating income (loss)
Carbon flat products	$	472		$	18,304		$	1,698		$	26,409
Specialty metals flat products		3,968			5,524			6,212			8,537
Tubular and pipe products		4,476			4,550			10,091			8,816
Corporate expenses		(2,976	)		(4,059	)		(5,987	)		(7,098	)
Total operating income	$	5,940		$	24,319		$	12,014		$	36,664
Other income (loss), net		(59	)		(93	)		(45	)		(139	)
Income before interest and income taxes		5,881			24,226			11,969			36,525
Interest and other expense on debt		3,174			2,670			6,416			4,656
Income before income taxes	$	2,707		$	21,556		$	5,553		$	31,869

	For the Six Months Ended
	June 30,
(in thousands)	2019		2018
Capital expenditures
Flat products segments	$	3,281	$	10,309
Tubular and pipe products		1,140		3,093
Corporate		-		373
Total capital expenditures	$	4,421	$	13,775

	As of
	June 30,		December 31,
(in thouands)	2019		2018
Assets
Flat products segments	$	509,068	$	560,116
Tubular and pipe products		214,004		200,016
Corporate		1,333		608
Total assets	$	724,405	$	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.