Segments

ASC 280, Segment Reporting (“ASC 280”) defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance.

As of December 31, 2016, the Company's operating segments consisted of the Mid-Atlantic, Southeast, Texas, Intermountain, Western and Mountain West divisions. Beginning January 1, 2017, the Company will have five operating segments after the Company realigned certain of its markets, which resulted in the consolidation of the Mountain West division into the Intermountain division. Due to the similar economic characteristics, nature of products, distribution methods and customers, both before and after the January 2017 market realignment, the Company has aggregated our operating segments into one reportable segment, "Geographic divisions."

In addition to our reportable segment, the Company's consolidated results include "Other reconciling items." Other reconciling items is comprised of our corporate activities.

The following tables present Net sales, Adjusted EBITDA and certain other measures for the reportable segment and total Company operations for the periods indicated. Adjusted EBITDA is used as a performance metric by the CODM in determining how to allocate resources and assess performance.



	Year Ended December 31, 2016								December 31, 2016
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA		Total Assets
Geographic divisions	3,093,743		741,965		66,592		244,616		1,345,475
Other reconciling items	—		—		2,088		(50,726	)	49,539
	$	3,093,743	$	741,965	$	68,680			$	1,395,014



	Year Ended December 31, 2015								December 31, 2015
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA		Total Assets
Geographic divisions	1,576,746		361,410		23,726		122,914		1,305,545
Other reconciling items	—		—		863		(36,872	)	65,594
	$	1,576,746	$	361,410	$	24,589			$	1,371,139



	Year Ended December 31, 2014								December 31, 2014
(in thousands)	Net Sales		Gross Profit		Depreciation & Amortization		Adjusted EBITDA		Total Assets
Geographic divisions	1,311,498		295,074		14,906		98,933		487,027
Other reconciling items	—		—		551		(21,664	)	94,826
	$	1,311,498	$	295,074	$	15,457			$	581,853

Reconciliation to consolidated financial statements:



	Year Ended December 31,
(in thousands)	2016		2015			2014
Income (loss) before income taxes	$	45,146	$	(14,520	)	$	28,455
Interest expense	30,131		27,552			27,090
Depreciation and amortization	68,680		24,589			15,457
Impairment of assets	11,928		—			134
Merger and integration costs	15,340		22,993			—
Inventory step-up charges	2,884		10,285			—
Non-cash stock compensation expense	7,252		2,749			3,410
Loss on debt extinguishment	12,529		—			—
Headquarters relocation (a)	—		3,865			2,054
Insurance reserve adjustments and casualty fire loss	—		3,026			669
Loss portfolio transfer	—		2,826			—
Acquisition costs and other items	—		2,677			—
Adjusted EBITDA of other reconciling items	50,726		36,872			21,664
Adjusted EBITDA of geographic divisions reportable segment	$	244,616	$	122,914		$	98,933

(a) Represents expenses incurred to relocate BMHC's headquarters to Atlanta, Georgia, including employee retention, severance, recruiting, relocation and professional fees.

The Company does not earn revenues or have long-lived assets located in foreign countries. In accordance with the enterprise-wide disclosure requirements of the accounting standard, the Company's net sales from external customers by main product lines are as follows for the years ended December 31, 2016, 2015 and 2014:



(in thousands)	2016		2015		2014
Structural components	$	471,619	$	249,371	$	205,036
Lumber & lumber sheet goods	921,304		459,446		428,084
Millwork, doors & windows	898,769		442,675		328,063
Other building products & services	802,051		425,254		350,315
Total net sales	$	3,093,743	$	1,576,746	$	1,311,498