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

nine

months ended

September 30, 2019

and

2018.

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
(in thousands)	2019			2018			2019			2018
Net sales
Carbon flat products	$	215,515		$	282,810		$	749,921		$	802,995
Specialty metals flat products		97,563			92,153			281,718			255,037
Tubular and pipe products		71,152			82,013			227,661			227,459
Total net sales	$	384,230		$	456,976		$	1,259,300		$	1,285,491

Depreciation and amortization
Carbon flat products	$	2,850		$	2,524		$	8,624		$	7,665
Specialty metals flat products		441			341			1,403			880
Tubular and pipe products		1,309			1,311			4,056			4,237
Corporate		42			24			126			75
Total depreciation and amortization	$	4,642		$	4,200		$	14,209		$	12,857

Operating income (loss)
Carbon flat products	$	(2,301	)	$	14,493		$	(603	)	$	40,901
Specialty metals flat products		4,060			4,954			10,272			13,493
Tubular and pipe products		4,462			3,102			14,553			11,917
Corporate expenses		(2,640	)		(3,935	)		(8,627	)		(11,033	)
Total operating income		3,581			18,614			15,595			55,278
Other income (loss), net		12			17			(33	)		(122	)
Income before interest and income taxes		3,593			18,631			15,562			55,156
Interest and other expense on debt		2,569			2,923			8,985			7,579
Income before income taxes	$	1,024		$	15,708		$	6,577		$	47,577

	For the Nine Months Ended
	September 30,
(in thousands)	2019		2018
Capital expenditures
Flat products segments	$	5,461	$	15,289
Tubular and pipe products		2,018		4,598
Corporate		-		479
Total capital expenditures	$	7,479	$	20,366

	As of
	September 30,		December 31,
(in thouands)	2019		2018
Assets
Flat products segments	$	483,828	$	560,116
Tubular and pipe products		213,674		200,016
Corporate		1,241		608
Total assets	$	698,743	$	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.