BUSINESS SEGMENTS

The Company is a leading manufacturer and distributor of products and services for transportation and energy infrastructure with locations in North America and Europe. The Company is organized and evaluated by product group, which is the basis for identifying reportable segments. Each segment represents a revenue-producing component of the Company for which separate financial information is produced internally that is subject to evaluation by the Company’s chief operating decision maker ("CODM") in deciding how to allocate resources. Each segment is evaluated based upon its segment profit (loss) contribution to the Company’s consolidated results.

The following table illustrates revenues and profits (losses) from operations of the Company by segment for the periods indicated:



	Three Months Ended March 31, 2018				Three Months Ended March 31, 2017
	Net Sales		Segment Profit		Net Sales		Segment Profit (Loss)
Rail Products and Services	$	62,170	$	2,048	$	56,480	$	823
Construction Products	28,900		18		37,322		1,666
Tubular and Energy Services	31,384		1,885		24,900		(680		)
Total	$	122,454	$	3,951	$	118,702	$	1,809

Segment profit (loss) from operations, as shown above, includes allocated corporate operating expenses. The allocation of corporate operating expenses differs from the calculation of segment profit (loss) from operations for prior periods, which reflected a cost of capital for the assets used in each segment at a rate of generally 1% per month. Since December 31, 2017, operating expenses related to corporate headquarter functions that directly support the segment activity are allocated based on segment headcount, revenue contribution, or activity of the business units within the segments, based on the corporate activity type provided to the segment. The expense allocation excludes certain corporate costs that are separately managed from the segments. The prior year period has been updated to reflect the change in segment measurement by allocating corporate operating expenses.

Management believes the current allocation of corporate operating expenses provides a more accurate presentation of how the segments utilize corporate support activities as compared to the cost of capital method previously used. This provides the CODM more meaningful segment profitability reporting to support operating decisions and allocate resources.

The following table provides a reconciliation of reportable segment net profit from operations to the Company’s consolidated total:



	Three Months Ended March 31,
	2018			2017
Profit for reportable segments	$	3,951		$	1,809
Interest expense	(1,958		)	(2,108		)
Interest income	71			56
Other income (expense)	608			(5		)
LIFO (expense) income	(164		)	11
Equity in loss of nonconsolidated investments	(3		)	(200		)
Unallocated corporate expense and other unallocated charges	(4,002		)	(1,554		)
Loss before income taxes	$	(1,497	)	$	(1,991	)

There has been no change in the measurement of segment assets since December 31, 2017. The following table illustrates assets of the Company by segment:



	March 31, 2018		December 31, 2017
Rail Products and Services	$	171,081	$	192,038
Construction Products	81,325		83,154
Tubular and Energy Services	97,755		100,706
Unallocated corporate assets	23,259		20,658
Total	$	373,420	$	396,556