SEGMENT INFORMATION

Segment income (loss) is measured for internal reporting purposes by excluding corporate expenses, impairment charges, interest income, interest expense, and income taxes. Corporate expenses consist primarily of executive employment costs, certain professional fees, and costs associated with the Company’s global headquarters. Financial results for each reportable segment are as follows (in thousands):



	Three Months ended September 30, 2017
	MMS		ATA		Inter-Segment Eliminations			Total
Sales	$	67,994	$	17,142	$	(145	)	$	84,991
Depreciation and amortization	1,438		478					1,916
Segment income	1,546		3,406					4,952
Capital expenditures	657		112					769



	Three Months Ended September 30, 2016
	MMS			ATA		Inter-Segment Eliminations			Total
Sales	$	52,089		$	15,270	$	(148	)	$	67,211
Depreciation and amortization	1,433			498					1,931
Segment income	(984		)	1,847					863
Capital expenditures	433			118					551



	Nine Months Ended September 30, 2017
	MMS		ATA		Inter-Segment Eliminations			Total
Sales	$	178,842	$	49,303	$	(400	)	$	227,745
Depreciation and amortization	4,267		1,481		0			5,748
Segment (loss) income	805		8,437					9,242
Capital expenditures	1,425		312					1,737
Segment assets⁽¹⁾	232,767		46,527					279,294



	Nine Months Ended September 30, 2016
	MMS			ATA		Inter-Segment Eliminations			Total
Sales	$	158,718		$	46,773	$	(273	)	$	205,218
Depreciation and amortization	4,353			1,562					5,915
Segment (loss) income	(1,864		)	5,342					3,478
Capital expenditures	1,119			424					1,543
Segment assets⁽¹⁾	226,618			48,341					274,959

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⁽¹⁾	Segment assets primarily consist of restricted cash, accounts receivable, inventories, prepaid and other assets, property, plant and equipment, and intangible assets. Unallocated assets primarily include, cash and cash equivalents, corporate property, plant and equipment, deferred income taxes, and other non-current assets.

A reconciliation of segment income to consolidated income (loss) before income taxes for the three and nine months ended September 30, 2017 and 2016 are as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Segment income	$	4,952		$	863		$	9,242		$	3,478
Unallocated corporate expense	(1,990		)	(1,503		)	(5,872		)	(5,061		)
Interest expense, net	(98		)	(86		)	(230		)	(235		)
Income (loss) before income taxes	$	2,864		$	(726	)	$	3,140		$	(1,818	)

A reconciliation of segment assets to consolidated total assets follows (in thousands):



	September 30, 2017		December 31, 2016
Total segment assets	$	279,294	$	265,279
Unallocated assets	36,622		32,271
Total assets	$	315,916	$	297,550

Unallocated assets include cash of $32.3 million and $28.3 million at September 30, 2017 and December 31, 2016, respectively.