SEGMENT REPORTING

Segment information is presented in accordance with ASC 280, Segment Reporting, which establishes standards for reporting information about operating segments. It also establishes standards for related disclosures about products and geographic areas. The Company's primary reportable segment is wallboard, which represented approximately 97.6% and 97.3% of the Company's revenues for the three and nine months ended September 30, 2018, respectively, compared to 96.8% of the Company's revenues for both the three and nine months ended September 30, 2017, respectively. This segment produces wallboard for the commercial and residential construction sectors. The Company also manufactures finishing products, which complement the Company's full range of wallboard products.

Revenues from the major products sold to external customers include gypsum wallboard and finishing products.

The Company's two geographic areas consist of the United States and Canada for which it reports net sales, fixed assets and total assets.

The Company evaluates operating performance based on profit or loss from operations before certain adjustments as shown below. Revenues are attributed to geographic areas based on the location of the customer generating the revenue. The Company did not provide asset information by segment as its Chief Operating Decision Maker does not use such information for purposes of allocating resources and assessing segment performance.



Table 17.1: Segment Reporting
	For the Three Months Ended						For the Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
	(in thousands)
Net Sales:
Wallboard	$	128,101		$	112,796		$	376,739		$	346,466
Other	3,133			3,730			10,565			11,305
Total net sales	$	131,234		$	116,526		$	387,304		$	357,771
Operating Income:
Wallboard	$	27,551		$	19,992		$	79,702		$	63,402
Other	(580		)	(285		)	(1,409		)	(388		)
Total operating income	$	26,971		$	19,707		$	78,293		$	63,014
Adjustments:
Interest expense	$	(2,549	)	$	(2,988	)	$	(7,963	)	$	(8,966	)
Losses from equity investment	(393		)	(204		)	(1,148		)	(29		)
Other (expense)/income, net	(29		)	146			(256		)	(633		)
Income before provision for income taxes	$	24,000		$	16,661		$	68,926		$	53,386
Depreciation and Amortization:
Wallboard	$	11,299		$	11,793		$	32,016		$	34,992
Other	281			264			950			825
Total depreciation and amortization	$	11,580		$	12,057		$	32,966		$	35,817



Table 17.2: Details of Net Sales By Geographic Region
	For the Three Months Ended				For the Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
	(in thousands)
United States	$	125,430	$	110,430	$	367,917	$	334,481
Canada	5,804		6,096		19,387		23,290
Net sales	$	131,234	$	116,526	$	387,304	$	357,771



Table 17.3: Details of Assets By Geographic Region
	Fixed Assets				Total Assets
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
	(in thousands)
United States	$	287,255	$	290,324	$	654,965	$	622,836
Canada	3,415		3,679		17,939		19,098
Total	$	290,670	$	294,003	$	672,904	$	641,934