13.	BUSINESS SEGMENTS INFORMATION

The Company operates its business in two distinct operating and reportable segments based on the markets it serves: “Domestic” and “International.” The Chief Operating Decision Maker (“CODM”) evaluates segment reporting based on Net sales and Segment Adjusted EBITDA. The Company calculates Segment Adjusted EBITDA as net income or loss before interest, income taxes, depreciation and amortization, stock-based compensation expense, non-cash charges and certain other expenses. The following table sets forth reportable segment information with respect to the amount of Net sales contributed by each class of similar products for the periods presented:

	Three Months Ended September 30,				Six Months Ended September 30,
	2017		2016		2017		2016
	(In thousands)
Domestic
Pipe	$	253,486	$	222,026	$	479,677	$	445,336
Allied Products		98,398		89,747		191,704		179,200
Total domestic		351,884		311,773		671,381		624,536
International
Pipe		38,204		38,910		67,973		73,282
Allied Products		10,961		10,102		20,054		20,543
Total international		49,165		49,012		88,027		93,825
Total Net sales	$	401,049	$	360,785	$	759,408	$	718,361

The following sets forth certain additional financial information attributable to the reportable segments for the periods presented:

	Domestic		International		Total
	(In thousands)
For the three months ended September 30, 2017
Net sales	$	351,884	$	49,165	$	401,049
Segment Adjusted EBITDA		63,473		3,411		66,884
Interest expense		4,971		84		5,055
Income tax expense		12,185		1,252		13,437
Depreciation and amortization		17,658		2,062		19,720
Equity in net loss of unconsolidated affiliates		437		83		520
Capital expenditures		8,673		413		9,086
For the three months ended September 30, 2016
Net sales	$	311,773	$	49,012	$	360,785
Segment Adjusted EBITDA		57,114		8,487		65,601
Interest expense		4,436		110		4,546
Income tax expense		13,824		1,524		15,348
Depreciation and amortization		15,829		2,181		18,010
Equity in net loss of unconsolidated affiliates		44		771		815
Capital expenditures		10,496		705		11,201

	Domestic		International			Total
	(In thousands)
For the six months ended September 30, 2017
Net sales	$	671,381	$	88,027		$	759,408
Segment Adjusted EBITDA		118,562		8,667			127,229
Interest expense		9,356		178			9,534
Income tax expense		21,700		1,483			23,183
Depreciation and amortization		33,921		4,020			37,941
Equity in net loss (gain) of unconsolidated affiliates		655		(383	)		272
Capital expenditures		25,781		1,254			27,035
For the six months ended September 30, 2016
Net sales	$	624,536	$	93,825		$	718,361
Segment Adjusted EBITDA		121,754		15,655			137,409
Interest expense		9,109		221			9,330
Income tax expense		25,977		3,565			29,542
Depreciation and amortization		31,507		4,529			36,036
Equity in net loss of unconsolidated affiliates		27		884			911
Capital expenditures		21,991		1,805			23,796

The following sets forth certain additional financial information attributable to the reportable segments as of the periods presented:

	September 30, 2017			March 31, 2017
	(In thousands)
Investments in unconsolidated affiliates
Domestic	$	1,772		$	2,427
International		7,399			6,559
Total	$	9,171		$	8,986
Total identifiable assets
Domestic	$	978,999		$	917,006
International		148,076			134,987
Eliminations		(16,966	)		(5,708	)
Total	$	1,110,109		$	1,046,285

The following reconciles segment adjusted EBITDA to net income for the periods presented:

	Three Months Ended September 30,
	2017						2016
	Domestic			International			Domestic			International
	(In thousands)
Reconciliation of Segment Adjusted EBITDA:
Net income	$	16,932		$	1,027		$	21,049		$	3,232
Depreciation and amortization		17,658			2,062			15,829			2,181
Interest expense		4,971			84			4,436			110
Income tax expense		12,185			1,252			13,824			1,524
Segment EBITDA		51,746			4,425			55,138			7,047
Derivative fair value adjustments		(781	)		—			(4,153	)		—
Foreign currency transaction (gains) losses		—			(1,579	)		—			685
Loss on disposal of assets and costs from exit and disposal activities		4,994			127			512			225
Unconsolidated affiliates interest, tax, depreciation and amortization⁽¹⁾		277			438			272			530
Contingent consideration remeasurement		6			—			33			—
Stock-based compensation expense (benefit)		1,810			—			(2,908	)		—
ESOP deferred compensation		2,595			—			2,368			—
Executive retirement benefits		894			—			79			—
Transaction costs⁽²⁾		890			—			—			—
Restatement-related costs⁽³⁾		1,042			—			5,773			—
Segment Adjusted EBITDA⁽⁴⁾	$	63,473		$	3,411		$	57,114		$	8,487

	Six Months Ended September 30,
	2017						2016
	Domestic			International			Domestic			International
	(In thousands)
Reconciliation of Segment Adjusted EBITDA:
Net income	$	32,082		$	4,351		$	36,471		$	7,231
Depreciation and amortization		33,921			4,020			31,507			4,529
Interest expense		9,356			178			9,109			221
Income tax expense		21,700			1,483			25,977			3,565
Segment EBITDA		97,059			10,032			103,064			15,546
Derivative fair value adjustments		(590	)		—			(9,060	)		—
Foreign currency transaction (gains)		—			(2,448	)		—			(1,077	)
Loss on disposal of assets and costs from exit and disposal activities		8,313			231			782			157
Unconsolidated affiliates interest, tax, depreciation and amortization⁽¹⁾		571			852			551			1,029
Contingent consideration remeasurement		32			—			57			—
Stock-based compensation expense		3,500			—			6,112			—
ESOP deferred compensation		5,209			—			5,105			—
Executive retirement benefits		909			—			158			—
Transaction costs⁽²⁾		1,057			—			—			—
Restatement-related costs⁽³⁾		2,502			—			14,985			—
Segment Adjusted EBITDA⁽⁴⁾	$	118,562		$	8,667		$	121,754		$	15,655

(1)	Includes the proportional share of interest, income taxes, depreciation and amortization related to the South American Joint Venture and the Tigre-ADS USA joint venture, which are accounted for under the equity method of accounting.

(2)	Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with our debt refinancing and potential asset acquisitions and dispositions.

(3)

Represents expenses recorded related to legal, accounting and other professional fees incurred in connection with the restatement of prior period financial statements as reflected in the fiscal year 2015 Form 10-K and fiscal year 2016 Form 10-K/A. Fiscal 2018 expenses relate to the ongoing SEC Enforcement Division’s investigation and related shareholder litigation discussed in “Note 9. Commitments and Contingencies.”

(4)	A portion of the reduction in International EBITDA is related to transfer pricing. The reduction is fully offset by an increase in Domestic EBITDA.