13.	Segment Information:

The Company follows the accounting guidance that requires the utilization of a “management approach” to define and report the financial results of operating segments. The management approach defines operating segments along the lines used by the Company’s chief operating decision maker (CODM) to assess performance and make operating and resource allocation decisions. Our CODM evaluates performance and allocates resources based primarily on operating income (loss). Our operating segments are based primarily on internal management reporting.

The Company operates in

three

reportable segments; carbon flat products, specialty metals flat products, and tubular and pipe products. The flat products segments’ assets and resources are shared by the carbon and specialty metals segments and both segments’ products are stored in the shared facilities and, in some locations, processed on shared equipment. As such, total assets and capital expenditures are reported in the aggregate for the flat products segments. Due to the shared assets and resources, certain of the flat products segment expenses are allocated between the carbon flat products segment and the specialty metals flat products segment based upon an established allocation methodology. Through its carbon flat products segment, the Company sells and distributes large volumes of processed carbon and coated flat-rolled sheet, coil and plate products. Through its specialty metals flat products segment, the Company sells and distributes processed aluminum and stainless flat-rolled sheet and coil products, flat bar products and fabricated parts. Through its acquisition of Berlin Metals on

April 2, 2018,

the specialty metals flat products segment expanded its product offerings to include prime tin mill products. Through its tubular and pipe products segment, the Company distributes metal tubing, pipe, bar, valve and fittings and fabricates pressure parts supplied to various industrial markets.

Corporate expenses are reported as a separate line item for segment reporting purposes. Corporate expenses include the unallocated expenses related to managing the entire Company (i.e., all

three

segments), including compensation for certain personnel, expenses related to being a publicly traded entity such as board of directors’ expenses, audit expenses, and various other professional fees.

The following table provides financial information by segment and reconciles the Company’s operating income by segment to the consolidated income before income taxes for the

three

and

nine

months ended

September 30, 2018

and

2017.

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
(in thousands)	2018			2017			2018			2017
Net sales
Carbon flat products	$	282,810		$	215,843		$	802,995		$	669,817
Specialty metals flat products		92,153			57,554			255,037			173,789
Tubular and pipe products		82,013			58,045			227,459			178,924
Total net sales	$	456,976		$	331,442		$	1,285,491		$	1,022,530

Depreciation and amortization
Carbon flat products	$	2,524		$	2,493		$	7,665		$	8,287
Specialty metals flat products		341			185			880			609
Tubular and pipe products		1,311			1,403			4,237			4,211
Corporate		24			25			75			76
Total depreciation and amortization	$	4,200		$	4,106		$	12,857		$	13,183

Operating income
Carbon flat products	$	14,493		$	3,698		$	40,901		$	18,312
Specialty metals flat products		4,954			2,074			13,493			8,918
Tubular and pipe products		3,102			1,608			11,917			6,439
Corporate expenses		(3,935	)		(2,094	)		(11,033	)		(7,699	)
Total operating income	$	18,614		$	5,286		$	55,278		$	25,970
Other income (loss), net		17			(22	)		(122	)		(76	)
Income before interest and income taxes		18,631			5,264			55,156			25,894
Interest and other expense on debt		2,923			1,966			7,579			5,380
Income before income taxes	$	15,708		$	3,298		$	47,577		$	20,514

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
(in thousands)	2018		2017		2018		2017
Capital expenditures
Flat products segments	$	4,980	$	1,110	$	15,289	$	4,292
Tubular and pipe products		1,505		891		4,598		2,178
Corporate		106		-		479		-
Total capital expenditures	$	6,591	$	2,001	$	20,366	$	6,470

	As of
	September 30,		December 31,
(in thousands)	2018		2017
Total assets
Flat products segments	$	579,602	$	409,116
Tubular and pipe products		209,007		194,787
Corporate		658		255
Total assets	$	789,267	$	604,158

There were

material revenue transactions between the carbon flat products, specialty metals products, and tubular and pipe products segments.

The Company sells certain products internationally, primarily in Canada and Mexico. International sales are immaterial to the consolidated financial results and to the individual segments’ results.