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SEGMENT INFORMATION | 6 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
SEGMENT INFORMATION | (M) SEGMENT INFORMATION Operating segments are defined as components of an enterprise that engage in business activities that earn revenue, 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 are a leading supplier of heavy construction materials, light building materials, and materials used for oil and natural gas extraction in the United States. Our products are commodities that are essential in commercial and residential construction; public construction projects; projects to build, expand, and repair roads and highways; and in oil and natural gas extraction. Our business is organized into three sectors within which there are five reportable business segments. The Heavy Materials sector includes the Cement and Concrete and Aggregates segments. The Light Materials sector includes the Gypsum Wallboard and Recycled Paperboard segments. The Oil and Gas Proppants segment produces frac sand used in oil and gas exploration and extraction. Our operations are conducted in the U.S. and include the mining of limestone for the manufacture, production, distribution, and sale of portland cement (a basic construction material that is the essential binding ingredient in concrete); the grinding and sale of slag; the mining of gypsum for 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). We operate seven cement plants, one slag grinding facility, 18 cement distribution terminals, five gypsum wallboard plants, a gypsum wallboard distribution center, a recycled paperboard mill, 17 readymix concrete batch plants, four aggregates processing plants, two frac sand processing facilities, three frac sand drying facilities, and six frac sand trans-load locations. The principal markets for our cement products are Texas, Illinois, the central plains, Michigan, Iowa, the Rocky Mountains, northern Nevada, southern Ohio, and northern California. We distribute gypsum wallboard and recycled paperboard 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, the region north of Sacramento, California; and the greater Kansas City, Missouri area. Frac sand is currently sold into shale deposits 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 Revenue and Operating Earnings, 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 September 30, |  |  | For the Six Months Ended September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
|  | (dollars in thousands) |
Revenue - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 193,161 |  |  | $ | 191,650 |  |  | $ | 379,949 |  |  | $ | 374,585 |
Concrete and Aggregates |  |  | 39,744 |  |  |  | 43,431 |  |  |  | 80,584 |  |  |  | 87,350 |
Gypsum Wallboard |  |  | 129,609 |  |  |  | 123,068 |  |  |  | 272,024 |  |  |  | 249,881 |
Paperboard |  |  | 41,277 |  |  |  | 45,359 |  |  |  | 86,410 |  |  |  | 89,772 |
Oil and Gas Proppants |  |  | 19,080 |  |  |  | 22,022 |  |  |  | 40,838 |  |  |  | 40,932 |
Other |  |  | 4,386 |  |  |  | — |  |  |  | 10,328 |  |  |  | — |
|  |  | 427,257 |  |  |  | 425,530 |  |  |  | 870,133 |  |  |  | 842,520 |
Less: Intersegment Revenue |  |  | (20,279 | ) |  |  | (23,215 | ) |  |  | (42,135 | ) |  |  | (45,914 | )
Less: Joint Venture Revenue |  |  | (25,479 | ) |  |  | (26,000 | ) |  |  | (52,743 | ) |  |  | (54,170 | )
|  | $ | 381,499 |  |  | $ | 376,315 |  |  | $ | 775,255 |  |  | $ | 742,436 |
|  | For the Three Months Ended September 30, |  |  | For the Six Months Ended September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
|  | (dollars in thousands) |
Intersegment Revenue - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 4,073 |  |  | $ | 4,654 |  |  | $ | 8,251 |  |  | $ | 9,583 |
Concrete and Aggregates |  |  | 501 |  |  |  | 402 |  |  |  | 832 |  |  |  | 815 |
Paperboard |  |  | 15,705 |  |  |  | 18,159 |  |  |  | 33,052 |  |  |  | 35,516 |
|  | $ | 20,279 |  |  | $ | 23,215 |  |  | $ | 42,135 |  |  | $ | 45,914 |
Cement Sales Volume (M tons) - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wholly Owned |  |  | 1,339 |  |  |  | 1,343 |  |  |  | 2,614 |  |  |  | 2,611 |
Joint Venture |  |  | 218 |  |  |  | 227 |  |  |  | 454 |  |  |  | 470 |
|  |  | 1,557 |  |  |  | 1,570 |  |  |  | 3,068 |  |  |  | 3,081 |
|  | For the Three Months Ended September 30, |  |  | For the Six Months Ended September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
|  | (dollars in thousands) |
Operating Earnings - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 57,547 |  |  | $ | 58,752 |  |  | $ | 94,881 |  |  | $ | 101,933 |
Concrete and Aggregates |  |  | 4,100 |  |  |  | 5,619 |  |  |  | 9,584 |  |  |  | 11,640 |
Gypsum Wallboard |  |  | 45,671 |  |  |  | 39,575 |  |  |  | 96,151 |  |  |  | 83,396 |
Paperboard |  |  | 8,609 |  |  |  | 6,517 |  |  |  | 18,603 |  |  |  | 11,455 |
Oil and Gas Proppants |  |  | (7,921 | ) |  |  | (1,754 | ) |  |  | (10,612 | ) |  |  | (3,780 | )
Other |  |  | 98 |  |  |  | — |  |  |  | 382 |  |  |  | — |
Sub-Total |  |  | 108,104 |  |  |  | 108,709 |  |  |  | 208,989 |  |  |  | 204,644 |
Corporate General and Administrative Expense |  |  | (9,922 | ) |  |  | (9,821 | ) |  |  | (17,925 | ) |  |  | (19,500 | )
Litigation Settlements and Losses |  |  | — |  |  |  | — |  |  |  | (1,800 | ) |  |  | — |
Other Non-Operating Income |  |  | 428 |  |  |  | 887 |  |  |  | 999 |  |  |  | 1,644 |
Earnings Before Interest and Income Taxes |  |  | 98,610 |  |  |  | 99,775 |  |  |  | 190,263 |  |  |  | 186,788 |
Interest Expense, net |  |  | (6,817 | ) |  |  | (7,456 | ) |  |  | (13,449 | ) |  |  | (14,939 | )
Earnings Before Income Taxes |  | $ | 91,793 |  |  | $ | 92,319 |  |  | $ | 176,814 |  |  | $ | 171,849 |
Cement Operating Earnings - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wholly Owned |  | $ | 47,374 |  |  | $ | 46,797 |  |  | $ | 75,457 |  |  | $ | 80,102 |
Joint Ventures |  |  | 10,173 |  |  |  | 11,955 |  |  |  | 19,424 |  |  |  | 21,831 |
|  | $ | 57,547 |  |  | $ | 58,752 |  |  | $ | 94,881 |  |  | $ | 101,933 |
Capital Expenditures - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 14,220 |  |  | $ | 13,014 |  |  | $ | 33,833 |  |  | $ | 20,732 |
Concrete and Aggregates |  |  | 459 |  |  |  | 1,118 |  |  |  | 2,523 |  |  |  | 2,530 |
Gypsum Wallboard |  |  | 4,124 |  |  |  | 5,219 |  |  |  | 6,479 |  |  |  | 10,861 |
Paperboard |  |  | 5,345 |  |  |  | 659 |  |  |  | 6,410 |  |  |  | 1,423 |
Oil and Gas Proppants |  |  | 14,827 |  |  |  | 13,781 |  |  |  | 42,463 |  |  |  | 14,360 |
Other, net |  |  | 1,396 |  |  |  | 140 |  |  |  | 1,736 |  |  |  | 185 |
|  | $ | 40,371 |  |  | $ | 33,931 |  |  | $ | 93,444 |  |  | $ | 50,091 |
Depreciation, Depletion and Amortization - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 12,746 |  |  | $ | 12,662 |  |  | $ | 25,667 |  |  | $ | 25,141 |
Concrete and Aggregates |  |  | 2,052 |  |  |  | 1,929 |  |  |  | 4,105 |  |  |  | 3,844 |
Gypsum Wallboard |  |  | 5,201 |  |  |  | 4,473 |  |  |  | 10,031 |  |  |  | 8,915 |
Paperboard |  |  | 2,128 |  |  |  | 2,172 |  |  |  | 4,237 |  |  |  | 4,309 |
Oil and Gas Proppants |  |  | 9,398 |  |  |  | 8,518 |  |  |  | 16,537 |  |  |  | 16,124 |
Corporate and Other |  |  | 801 |  |  |  | 552 |  |  |  | 1,599 |  |  |  | 920 |
|  | $ | 32,326 |  |  | $ | 30,306 |  |  | $ | 62,176 |  |  | $ | 59,253 |
|  | September 30, |  |  | March 31, |
|  | 2018 |  |  | 2018 |
|  | (dollars in thousands) |
Identifiable Assets |  |  |  |  |  |  |  |
Cement |  | $ | 1,274,535 |  |  | $ | 1,247,504 |
Concrete and Aggregates |  |  | 104,166 |  |  |  | 104,851 |
Gypsum Wallboard |  |  | 378,902 |  |  |  | 386,041 |
Paperboard |  |  | 127,026 |  |  |  | 123,819 |
Oil and Gas Proppants |  |  | 428,356 |  |  |  | 401,421 |
Other, net |  |  | 66,527 |  |  |  | 104,367 |
|  | $ | 2,379,512 |  |  | $ | 2,368,003 |
Segment operating earnings, including the proportionately consolidated 50% interest in the revenue and expenses of the Joint Venture, represent Revenue, less direct operating expenses, segment Depreciation, and segment Selling, General and Administrative expenses. We account for intersegment sales at market prices. Corporate assets consist primarily of cash and cash equivalents, general office assets, miscellaneous other assets. The basis used to disclose Identifiable Assets; Capital Expenditures; and Depreciation, Depletion, and Amortization conforms with the equity method, and is similar to how we disclose these accounts in our Unaudited Consolidated Balance Sheets and Unaudited Consolidated Statements of Earnings The segment breakdown of Goodwill is as follows:
|  | September 30, |  |  | March 31, |
|  | 2018 |  |  | 2018 |
|  | (dollars in thousands) |
Cement |  | $ | 74,214 |  |  | $ | 74,214 |
Gypsum Wallboard |  |  | 116,618 |  |  |  | 116,618 |
Paperboard |  |  | 7,538 |  |  |  | 7,538 |
Corporate and Other |  |  | 6,841 |  |  |  | 6,841 |
|  | $ | 205,211 |  |  | $ | 205,211 |
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 September 30, |  |  | For the Six Months Ended September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
|  | (dollars in thousands) |
Revenue |  | $ | 51,859 |  |  | $ | 54,000 |  |  | $ | 107,510 |  |  | $ | 111,818 |
Gross Margin |  | $ | 21,877 |  |  | $ | 24,938 |  |  | $ | 42,018 |  |  | $ | 46,251 |
Earnings Before Income Taxes |  | $ | 20,345 |  |  | $ | 23,910 |  |  | $ | 38,849 |  |  | $ | 43,662 |
|  | September 30, |  |  | March 31, |
|  | 2018 |  |  | 2018 |
|  | (dollars in thousands) |
Current Assets |  | $ | 67,861 |  |  | $ | 71,089 |
Non-Current Assets |  | $ | 67,679 |  |  | $ | 66,856 |
Current Liabilities |  | $ | 18,191 |  |  | $ | 20,671 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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