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SEGMENT INFORMATION | 9 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
SEGMENT INFORMATION | (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 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, 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, six frac sand trans-load locations and eleven frac sand distribution centers. The principal markets for our cement products are Texas, northern Illinois (including Chicago), the central plains, the Rocky Mountains, northern Nevada, Ohio 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 and distributed into shale deposit zones across the United States. Other segment operations that are not material to our business are included in Other. 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 |  |  | For the Nine Months |
|  | Ended December 31, |  |  | Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
|  | (dollars in thousands) |  |  | (dollars in thousands) |
Revenues - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 161,601 |  |  | $ | 138,047 |  |  | $ | 536,186 |  |  | $ | 449,650 |
Gypsum Wallboard |  |  | 133,348 |  |  |  | 121,504 |  |  |  | 383,229 |  |  |  | 357,689 |
Paperboard |  |  | 48,389 |  |  |  | 41,254 |  |  |  | 138,161 |  |  |  | 128,528 |
Oil and Gas Proppants |  |  | 21,947 |  |  |  | 7,124 |  |  |  | 62,879 |  |  |  | 18,851 |
Concrete and Aggregates |  |  | 38,742 |  |  |  | 40,843 |  |  |  | 126,092 |  |  |  | 114,734 |
Other |  |  | 4,445 |  |  |  | — |  |  |  | 4,445 |  |  |  | — |
Sub-total |  |  | 408,472 |  |  |  | 348,772 |  |  |  | 1,250,992 |  |  |  | 1,069,452 |
Less: Intersegment Revenues |  |  | (23,575 | ) |  |  | (20,468 | ) |  |  | (69,489 | ) |  |  | (59,123 | )
Net Revenues, including Joint Venture |  |  | 384,897 |  |  |  | 328,304 |  |  |  | 1,181,503 |  |  |  | 1,010,329 |
Less: Joint Venture |  |  | (25,526 | ) |  |  | (25,909 | ) |  |  | (79,696 | ) |  |  | (77,772 | )
Net Revenues |  | $ | 359,371 |  |  | $ | 302,395 |  |  | $ | 1,101,807 |  |  | $ | 932,557 |
|  | For the Three Months |  |  | For the Nine Months |
|  | Ended December 31, |  |  | Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
|  | (dollars in thousands) |  |  | (dollars in thousands) |
Intersegment Revenues - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 4,160 |  |  | $ | 4,336 |  |  | $ | 13,743 |  |  | $ | 12,407 |
Paperboard |  |  | 19,127 |  |  |  | 15,887 |  |  |  | 54,643 |  |  |  | 45,845 |
Concrete and Aggregates |  |  | 288 |  |  |  | 245 |  |  |  | 1,103 |  |  |  | 871 |
|  | $ | 23,575 |  |  | $ | 20,468 |  |  | $ | 69,489 |  |  | $ | 59,123 |
Cement Sales Volume (in thousands of tons) - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wholly –owned Operations |  |  | 1,123 |  |  |  | 967 |  |  |  | 3,734 |  |  |  | 3,200 |
Joint Venture |  |  | 216 |  |  |  | 231 |  |  |  | 686 |  |  |  | 691 |
|  |  | 1,339 |  |  |  | 1,198 |  |  |  | 4,420 |  |  |  | 3,891 |
|  | For the Three Months |  |  | For the Nine Months |
|  | Ended December 31, |  |  | Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
|  | (dollars in thousands) |  |  | (dollars in thousands) |
Operating Earnings - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 52,523 |  |  | $ | 45,307 |  |  | $ | 154,456 |  |  | $ | 127,623 |
Gypsum Wallboard |  |  | 39,841 |  |  |  | 41,075 |  |  |  | 123,237 |  |  |  | 122,109 |
Paperboard |  |  | 10,903 |  |  |  | 9,380 |  |  |  | 22,358 |  |  |  | 30,827 |
Oil and Gas Proppants |  |  | (1,007 | ) |  |  | (1,726 | ) |  |  | (4,787 | ) |  |  | (11,728 | )
Concrete and Aggregates |  |  | 3,414 |  |  |  | 4,588 |  |  |  | 15,054 |  |  |  | 13,085 |
Other |  |  | 264 |  |  |  | — |  |  |  | 264 |  |  |  | — |
Sub-total |  |  | 105,938 |  |  |  | 98,624 |  |  |  | 310,582 |  |  |  | 281,916 |
Corporate General and Administrative |  |  | (9,883 | ) |  |  | (9,166 | ) |  |  | (29,383 | ) |  |  | (27,831 | )
Legal Settlement |  |  | (39,098 | ) |  |  | — |  |  |  | (39,098 | ) |  |  | — |
Other Non-Operating Income |  |  | 1,084 |  |  |  | 429 |  |  |  | 2,728 |  |  |  | 2,008 |
Earnings Before Interest and Income Taxes |  |  | 58,041 |  |  |  | 89,887 |  |  |  | 244,829 |  |  |  | 256,093 |
Interest Expense, net |  |  | (6,653 | ) |  |  | (6,198 | ) |  |  | (21,592 | ) |  |  | (15,755 | )
Earnings Before Income Taxes |  | $ | 51,388 |  |  | $ | 83,689 |  |  | $ | 223,237 |  |  | $ | 240,338 |
Cement Operating Earnings - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wholly–owned Operations |  | $ | 41,151 |  |  | $ | 34,063 |  |  | $ | 121,253 |  |  | $ | 96,252 |
Joint Venture |  |  | 11,372 |  |  |  | 11,244 |  |  |  | 33,203 |  |  |  | 31,371 |
|  | $ | 52,523 |  |  | $ | 45,307 |  |  | $ | 154,456 |  |  | $ | 127,623 |
Capital Expenditures - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 11,012 |  |  | $ | 8,558 |  |  | $ | 31,744 |  |  | $ | 18,812 |
Gypsum Wallboard |  |  | 4,616 |  |  |  | 1,756 |  |  |  | 15,477 |  |  |  | 5,181 |
Paperboard |  |  | 1,490 |  |  |  | 634 |  |  |  | 2,913 |  |  |  | 2,338 |
Oil and Gas Proppants |  |  | 13,896 |  |  |  | 1,469 |  |  |  | 28,256 |  |  |  | 1,534 |
Concrete and Aggregates |  |  | 2,446 |  |  |  | 3,045 |  |  |  | 4,976 |  |  |  | 5,595 |
Corporate and Other |  |  | 147 |  |  |  | 350 |  |  |  | 332 |  |  |  | 583 |
|  | $ | 33,607 |  |  | $ | 15,812 |  |  | $ | 83,698 |  |  | $ | 34,043 |
Depreciation, Depletion and Amortization - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 13,117 |  |  | $ | 8,763 |  |  | $ | 38,258 |  |  | $ | 26,158 |
Gypsum Wallboard |  |  | 4,599 |  |  |  | 4,636 |  |  |  | 13,514 |  |  |  | 14,166 |
Paperboard |  |  | 2,204 |  |  |  | 2,105 |  |  |  | 6,513 |  |  |  | 6,311 |
Oil and Gas Proppants |  |  | 5,820 |  |  |  | 4,987 |  |  |  | 21,944 |  |  |  | 14,432 |
Concrete and Aggregates |  |  | 2,007 |  |  |  | 1,805 |  |  |  | 5,851 |  |  |  | 5,474 |
Corporate and Other |  |  | 903 |  |  |  | 349 |  |  |  | 1,823 |  |  |  | 1,353 |
|  | $ | 28,650 |  |  | $ | 22,645 |  |  | $ | 87,903 |  |  | $ | 67,894 |
|  | As of |
|  | December 31, 2017 |  |  | March 31, 2017 |
|  | (dollars in thousands) |
Identifiable Assets - |  |  |  |  |  |  |  |
Cement |  | $ | 1,233,099 |  |  | $ | 1,234,617 |
Gypsum Wallboard |  |  | 376,731 |  |  |  | 379,414 |
Paperboard |  |  | 120,603 |  |  |  | 124,356 |
Oil and Gas Proppants |  |  | 385,719 |  |  |  | 376,306 |
Concrete and Aggregates |  |  | 103,631 |  |  |  | 110,413 |
Corporate and Other |  |  | 88,260 |  |  |  | 22,018 |
|  | $ | 2,308,043 |  |  | $ | 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, unrecognized tax benefits and assets acquired in the Wildcat Acquisition. The segment breakdown of goodwill is as follows:
|  | As of |
|  | December 31, 2017 |  |  | March 31, 2017 |
|  | (dollars in thousands) |
Cement |  | $ | 74,214 |  |  | $ | 74,214 |
Gypsum Wallboard |  |  | 116,618 |  |  |  | 116,618 |
Paperboard |  |  | 7,538 |  |  |  | 7,538 |
Corporate and Other |  |  | 6,841 |  |  |  | — |
|  | $ | 205,211 |  |  | $ | 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 December 31, |  |  | For the Nine Months Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
|  | (dollars in thousands) |  |  | (dollars in thousands) |
Revenues |  | $ | 51,311 |  |  | $ | 53,018 |  |  | $ | 163,128 |  |  | $ | 158,351 |
Gross Margin |  | $ | 23,421 |  |  | $ | 23,887 |  |  | $ | 69,672 |  |  | $ | 66,812 |
Earnings Before Income Taxes |  | $ | 22,745 |  |  | $ | 22,488 |  |  | $ | 66,407 |  |  | $ | 62,742 |
|  | As of |
|  | December 31, 2017 |  |  | March 31, 2017 |
|  | (dollars in thousands) |
Current Assets |  | $ | 67,380 |  |  | $ | 73,767 |
Non-Current Assets |  | $ | 66,836 |  |  | $ | 42,337 |
Current Liabilities |  | $ | 27,501 |  |  | $ | 22,293 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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