NOTE N— SEGMENT REPORTING

Our business is organized into two reportable segments, Oil & Gas Proppants and Industrial & Specialty Products, based on end markets. The reportable segments are consistent with how management views the markets that we serve and the financial information reviewed by the chief operating decision maker. We manage our Oil & Gas Proppants and Industrial & Specialty Products businesses as components of an enterprise for which separate information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance.

In the Oil & Gas Proppants segment, we serve the oil and gas recovery market primarily by providing and delivering fracturing sand, or “frac sand,” which is pumped down oil and natural gas wells to prop open rock fissures and increase the flow rate of oil and natural gas from the wells.

The Industrial & Specialty Products segment consists of over 217 products and materials used in a variety of industries, including container glass, fiberglass, specialty glass, flat glass, building products, fillers and extenders, foundry products, chemicals, recreation products and filtration products.

An operating segment’s performance is primarily evaluated based on segment contribution margin, which excludes certain corporate costs not associated with the operations of the segment. These corporate costs are separately stated below and include costs that are related to functional areas such as operations management, corporate purchasing, accounting, treasury, information technology, legal and human resources. We believe that segment contribution margin, as defined above, is an appropriate measure for evaluating the operating performance of our segments. However, this measure should be considered in addition to, not a substitute for, or superior to, net income (loss) or other measures of financial performance prepared in accordance with generally accepted accounting principles. The other accounting policies of each of the two reporting segments are the same as those in Note A - Summary of Significant Accounting Policies of our Financial Statements.

The following table presents sales and segment contribution margin (in thousands) for the reporting segments and other operating results not allocated to the reported segments for the three and six months ended June 30, 2017 and 2016:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Sales:
Oil & Gas Proppants	$	235,018		$	64,926		$	427,976		$	138,791
Industrial & Specialty Products	55,447			52,068			107,286			100,713
Total sales	290,465			116,994			535,262			239,504
Segment contribution margin:
Oil & Gas Proppants	71,222			(5,995		)	110,062			(5,144		)
Industrial & Specialty Products	23,267			21,486			43,484			38,380
Total segment contribution margin	94,489			15,491			153,546			33,236
Operating activities excluded from segment cost of sales	(1,435		)	(1,204		)	(3,170		)	(3,190		)
Selling, general and administrative	(26,012		)	(14,585		)	(48,353		)	(30,088		)
Depreciation, depletion and amortization	(23,626		)	(15,209		)	(45,225		)	(29,765		)
Interest expense	(8,105		)	(6,647		)	(15,751		)	(13,290		)
Other income (expense), net, including interest income	1,258			608			(3,670		)	2,398
Income tax benefit (expense)	(7,110		)	9,774			(5,396		)	17,924
Net income (loss)	$	29,459		$	(11,772	)	$	31,981		$	(22,775	)

Asset information, including capital expenditures and depreciation, depletion, and amortization, by segment is not included in reports used by management in its monitoring of performance and, therefore, is not reported by segment. Goodwill of $246.2 million has been allocated to these segments with $221.6 million assigned to Oil & Gas Proppants and $24.6 million to Industrial & Specialty Products as of June 30, 2017.