(M) SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities that earn revenues, incur expenses and prepare separate financial information that is evaluated regularly by our chief operating decision maker in order to allocate resources and assess performance.

We operate in five business segments: Cement, Gypsum Wallboard, Recycled Paperboard, Oil and Gas Proppants and Concrete and Aggregates. These operations are conducted in the U.S. and include the mining of limestone and the manufacture, production, distribution and sale of Portland cement and slag (basic construction materials which are the essential binding ingredient in concrete), the grinding the mining of gypsum and the manufacture and sale of gypsum wallboard, the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters, the sale of readymix concrete and the mining and sale of aggregates (crushed stone, sand and gravel) and sand used in hydraulic fracturing (“frac sand”). The products that we manufacture, distribute and sell are basic materials used with broad application as construction products, building materials, and basic materials used for oil and natural gas extraction. Our construction products are used in residential, industrial, commercial and infrastructure construction and include cement, slag, concrete and aggregates. Our building materials are sold into similar markets and include gypsum wallboard. Our basic materials used for oil and natural gas extraction include frac sand and oil well cement.

We operate seven cement plants, one slag grinding facility, seventeen cement distribution terminals, five gypsum wallboard plants, including the plant idled in Bernalillo, N.M., a gypsum wallboard distribution center, a recycled paperboard mill, seventeen readymix concrete batch plant locations, four aggregates processing plant locations, two frac sand processing facilities, including the mine idled in Utica, Illinois, three frac sand drying facilities, including the facility idled in Corpus Christi, Texas, and six frac sand trans-load locations. The principal markets for our cement products are Texas, northern Illinois (including Chicago), the central plains, the Rocky Mountains, northern Nevada, and northern California. Gypsum wallboard and recycled paperboard are distributed throughout the continental U.S, with the exception of the northeast. Concrete and aggregates are sold to local readymix producers and paving contractors in the Austin, Texas area, north of Sacramento, California and the greater Kansas City, Missouri area, while frac sand is currently sold into shale deposit zones across the United States.

We conduct one of our seven cement plant operations, Texas Lehigh Cement Company LP in Buda, Texas, through a Joint Venture. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture’s revenues and operating earnings, which is consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

We account for intersegment sales at market prices. The following table sets forth certain financial information relating to our operations by segment:

	For the Three Months
	Ended June 30,
	2017			2016
	(dollars in thousands)
Revenues -
Cement	$	182,935		$	144,792
Gypsum Wallboard		126,813			113,262
Paperboard		44,413			42,815
Oil and Gas Proppants		18,910			5,096
Concrete and Aggregates		43,919			34,751
Sub-total		416,990			340,716
Less: Intersegment Revenues		(22,699	)		(18,324	)
Net Revenues, including Joint Venture		394,291			322,392
Less: Joint Venture		(28,170	)		(24,888	)
Net Revenues	$	366,121		$	297,504

	For the Three Months
	Ended June 30,
	2017		2016
	(dollars in thousands)
Intersegment Revenues -
Cement	$	4,929	$	3,535
Paperboard		17,357		14,506
Concrete and Aggregates		413		283
	$	22,699	$	18,324
Cement Sales Volume (in thousands of tons) -
Wholly –owned Operations		1,268		1,033
Joint Venture		243		218
		1,511		1,251

	For the Three Months
	Ended June 30,
	2017			2016
	(dollars in thousands)
Operating Earnings -
Cement	$	43,181		$	31,600
Gypsum Wallboard		43,821			39,336
Paperboard		4,938			11,227
Oil and Gas Proppants		(2,026	)		(5,912	)
Concrete and Aggregates		6,021			3,684
Other, net		757			1,075
Sub-total		96,692			81,010
Corporate General and Administrative		(9,679	)		(9,833	)
Earnings Before Interest and Income Taxes		87,013			71,177
Interest Expense, net		(7,483	)		(3,901	)
Earnings Before Income Taxes	$	79,530		$	67,276
Cement Operating Earnings -
Wholly–owned Operations	$	33,305		$	23,620
Joint Venture		9,876			7,980
	$	43,181		$	31,600
Capital Expenditures -
Cement	$	7,718		$	5,245
Gypsum Wallboard		5,642			1,328
Paperboard		764			1,304
Oil and Gas Proppants		579			57
Concrete and Aggregates		1,412			1,044
Other		45			—
	$	16,160		$	8,978
Depreciation, Depletion and Amortization -
Cement	$	12,479		$	8,611
Gypsum Wallboard		4,442			4,762
Paperboard		2,137			2,100
Oil and Gas Proppants		7,606			5,184
Concrete and Aggregates		1,914			1,749
Other, net		369			457
	$	28,947		$	22,863

	As of
	June 30, 2017		March 31, 2017
	(dollars in thousands)
Identifiable Assets -
Cement	$	1,263,484	$	1,234,617
Gypsum Wallboard		377,562		379,414
Paperboard		126,583		124,356
Oil and Gas Proppants		373,964		376,306
Concrete and Aggregates		110,575		110,413
Corporate and Other		27,422		22,018
	$	2,279,590	$	2,247,124

Segment operating earnings, including the proportionately consolidated 50% interest in the revenues and expenses of the Joint Venture, represent revenues, less direct operating expenses, segment depreciation, and segment selling, general and administrative expenses. Corporate assets consist primarily of cash and cash equivalents, general office assets, miscellaneous other assets and unrecognized tax benefits. The segment breakdown of goodwill is as follows:

	As of
	June 30, 2017		March 31, 2017
	(dollars in thousands)
Cement	$	74,214	$	74,214
Gypsum Wallboard		116,618		116,618
Paperboard		7,538		7,538
	$	198,370	$	198,370

Summarized financial information for the Joint Venture that is not consolidated is set out below (this summarized financial information includes the total amount for the Joint Venture and not our 50% interest in those amounts):

	For the Three Months Ended June 30,
	2017		2016
	(dollars in thousands)
Revenues	$	56,340	$	49,776
Gross Margin	$	21,312	$	17,337
Earnings Before Income Taxes	$	19,917	$	16,138

	As of
	June 30, 2017		March 31, 2017
	(dollars in thousands)
Current Assets	$	75,940	$	73,767
Non-Current Assets	$	47,184	$	42,337
Current Liabilities	$	18,944	$	22,293