17.

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. The CODM evaluates performance and allocates resources based primarily on operating income (loss). The 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 carbon flat products segment and the specialty metals flat products segments are at times consolidated and referred to as the flat products segments, as certain of 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.

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 years ended

December 31, 2019,

2018

and

2017.

	For the Year Ended December 31,
(in thousands)	2019			2018			2017
Net sales
Carbon flat products	$	926,903		$	1,073,292		$	869,628
Specialty metals flat products		363,634			343,479			227,200
Tubular and pipe products		288,503			298,310			233,868
Total net sales	$	1,579,040		$	1,715,081		$	1,330,696

Depreciation and amortization
Carbon flat products	$	11,624		$	10,621		$	10,906
Specialty metals flat products		1,830			1,251			811
Tubular and pipe products		5,408			5,601			5,659
Corporate		168			135			102
Total depreciation and amortization	$	19,030		$	17,608		$	17,478

Operating income
Carbon flat products	$	(5,023	)	$	44,354		$	17,886
Specialty metals flat products		14,321			15,248			11,240
Tubular and pipe products		18,607			11,520			4,568
Corporate		(11,295	)		(14,070	)		(9,708	)
Total operating income	$	16,610		$	57,052		$	23,986
Other loss, net		(32	)		(307	)		(118	)
Income before interest and income taxes		16,578			56,745			23,868
Interest and other expense on debt		11,289			10,681			7,518
Income before income taxes	$	5,289		$	46,064		$	16,350

	For the Year Ended December 31,
(in thousands)	2019		2018		2017
Capital expenditures
Flat products	$	6,996	$	19,985	$	7,325
Tubular and pipe products		3,169		5,242		2,833
Corporate		-		488		2
Total capital expenditures	$	10,165	$	25,715	$	10,160

Assets
Flat products	$	432,566	$	560,116
Tubular and pipe products		215,841		200,016
Corporate		1,148		608
Total assets	$	649,555	$	760,740

There were

material revenue transactions between the carbon flat products, specialty metals flat products and tubular and pipe products segments for the years ended

December 31, 2019,

2018

and

2017.

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.