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BUSINESS SEGMENTS | 12 Months Ended
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Mar. 31, 2020
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | (I) Business Segments 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 and light building materials in the United States. Our primary products are commodities that are essential in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. We distribute our products across many United States markets, which provides us with regional economic diversification. We also produce sand used in hydraulic fracturing as part of our Oil and Gas Proppants segment. 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 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 which 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 eight modern cement plants (one of which is operated through a joint venture located in Buda, Texas), one slag grinding facility, and 29 cement distribution terminals. Our cement companies focus on the U.S. heartland and operate as an integrated network selling product primarily in California, Colorado, Illinois, Indiana, Iowa, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, and Texas. We operate 26 readymix concrete batch plants and five aggregates processing plants in markets that are complementary to our cement network. On April 17, 2017 we sold our Concrete and Aggregates companies in northern California. See Footnote (C) for more information about the sale. We operate five gypsum wallboard plants and a recycled paperboard mill. We distribute gypsum wallboard and recycled paperboard throughout the continental U.S., with the exception of the Northeast. Our Oil and Gas Proppants business owns two frac sand processing facilities, four frac sand drying facilities, and two frac sand trans-load locations. Frac sand is currently sold into shale deposits across the United States. We account for intersegment sales at market prices. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture Revenue and Operating Earnings, consistent with the way management reports the segments within the Company for making operating decisions and assessing performance. The following tables below sets forth certain financial information relating to our operations by segment. We do not allocate interest or taxes at the segment level, only at the consolidated company level.
|  | For the Years Ended March 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (dollars in thousands) |
Revenue - |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 752,002 |  |  | $ | 656,759 |  |  | $ | 651,750 |
Concrete and Aggregates |  |  | 182,775 |  |  |  | 140,173 |  |  |  | 157,013 |
Gypsum Wallboard |  |  | 508,145 |  |  |  | 532,712 |  |  |  | 491,779 |
Paperboard |  |  | 159,963 |  |  |  | 167,656 |  |  |  | 181,742 |
Oil and Gas Proppants |  |  | 46,781 |  |  |  | 82,987 |  |  |  | 98,244 |
|  |  | 1,649,666 |  |  |  | 1,580,287 |  |  |  | 1,580,528 |
Less: Intersegment Revenue |  |  | (85,316 | ) |  |  | (82,553 | ) |  |  | (88,124 | )
Less: Joint Venture Revenue |  |  | (113,536 | ) |  |  | (104,493 | ) |  |  | (105,884 | )
|  | $ | 1,450,814 |  |  | $ | 1,393,241 |  |  | $ | 1,386,520 |
|  | For the Years Ended March 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (dollars in thousands) |
Intersegment Revenue - |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 21,499 |  |  | $ | 14,408 |  |  | $ | 16,442 |
Concrete and Aggregates |  |  | 1,502 |  |  |  | 1,422 |  |  |  | 1,335 |
Paperboard |  |  | 62,315 |  |  |  | 66,723 |  |  |  | 70,347 |
|  | $ | 85,316 |  |  | $ | 82,553 |  |  | $ | 88,124 |
Cement Sales Volume (M tons) - |  |  |  |  |  |  |  |  |  |  |  |
Wholly Owned |  |  | 4,975 |  |  |  | 4,441 |  |  |  | 4,453 |
Joint Venture |  |  | 956 |  |  |  | 899 |  |  |  | 912 |
|  |  | 5,931 |  |  |  | 5,340 |  |  |  | 5,365 |
|  | For the Years Ended March 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  |  |  |  | (dollars in thousands) |  |  |
Operating Earnings - |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 181,330 |  |  | $ | 164,782 |  |  | $ | 179,151 |
Concrete and Aggregates |  |  | 17,558 |  |  |  | 12,866 |  |  |  | 17,854 |
Gypsum Wallboard |  |  | 154,614 |  |  |  | 180,831 |  |  |  | 158,551 |
Paperboard |  |  | 34,979 |  |  |  | 35,349 |  |  |  | 32,758 |
Oil and Gas Proppants |  |  | (14,634 | ) |  |  | (28,695 | ) |  |  | (6,139 | )
Sub-Total |  |  | 373,847 |  |  |  | 365,133 |  |  |  | 382,175 |
Corporate General and Administrative Expense |  |  | (65,410 | ) |  |  | (37,371 | ) |  |  | (41,205 | )
Impairment Losses |  |  | (224,267 | ) |  |  | (220,265 | ) |  |  | — |
Litigation Settlements and Losses |  |  | — |  |  |  | (1,800 | ) |  |  | (45,098 | )
Other Non-Operating Income |  |  | (25 | ) |  |  | 2,412 |  |  |  | 3,728 |
Earnings Before Interest and Income Taxes |  |  | 84,145 |  |  |  | 108,109 |  |  |  | 299,600 |
Interest Expense, net |  |  | (38,421 | ) |  |  | (28,374 | ) |  |  | (27,638 | )
Earnings Before Income Taxes |  | $ | 45,724 |  |  | $ | 79,735 |  |  | $ | 271,962 |
Cement Operating Earnings - |  |  |  |  |  |  |  |  |  |  |  |
Wholly Owned |  | $ | 138,745 |  |  | $ | 126,217 |  |  | $ | 135,732 |
Joint Ventures |  |  | 42,585 |  |  |  | 38,565 |  |  |  | 43,419 |
|  | $ | 181,330 |  |  | $ | 164,782 |  |  | $ | 179,151 |
Capital Expenditures - |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 44,776 |  |  | $ | 76,504 |  |  | $ | 45,088 |
Concrete and Aggregates |  |  | 11,898 |  |  |  | 6,649 |  |  |  | 4,977 |
Gypsum Wallboard |  |  | 12,771 |  |  |  | 10,724 |  |  |  | 19,382 |
Paperboard |  |  | 62,528 |  |  |  | 16,603 |  |  |  | 5,177 |
Oil and Gas Proppants |  |  | 146 |  |  |  | 52,286 |  |  |  | 56,872 |
Other, net |  |  | — |  |  |  | 6,107 |  |  |  | 461 |
|  | $ | 132,119 |  |  | $ | 168,873 |  |  | $ | 131,957 |
Depreciation, Depletion, and Amortization - |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 59,081 |  |  | $ | 52,802 |  |  | $ | 50,891 |
Concrete and Aggregates |  |  | 11,142 |  |  |  | 8,176 |  |  |  | 7,931 |
Gypsum Wallboard |  |  | 20,320 |  |  |  | 20,020 |  |  |  | 18,179 |
Paperboard |  |  | 8,945 |  |  |  | 8,541 |  |  |  | 8,694 |
Oil and Gas Proppants |  |  | 11,310 |  |  |  | 31,328 |  |  |  | 26,872 |
Corporate and Other |  |  | 2,720 |  |  |  | 1,668 |  |  |  | 1,448 |
|  | $ | 113,518 |  |  | $ | 122,535 |  |  | $ | 114,015 |
|  | As of March 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (dollars in thousands) |
Identifiable Assets |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 1,980,306 |  |  | $ | 1,289,468 |  |  | $ | 1,247,504 |
Concrete and Aggregates |  |  | 136,041 |  |  |  | 95,084 |  |  |  | 104,851 |
Gypsum Wallboard |  |  | 375,946 |  |  |  | 372,206 |  |  |  | 386,041 |
Paperboard |  |  | 183,288 |  |  |  | 138,614 |  |  |  | 123,819 |
Oil and Gas Proppants |  |  | 14,294 |  |  |  | 236,357 |  |  |  | 444,826 |
Other, net |  |  | 271,145 |  |  |  | 37,434 |  |  |  | 60,962 |
|  | $ | 2,961,020 |  |  | $ | 2,169,163 |  |  | $ | 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. Segment Operating Earnings don’t include certain non-recurring losses, such as impairment and legal settlements. We account for intersegment sales at market prices. Corporate assets consist primarily of cash and cash equivalents, general office assets, and 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 Consolidated Balance Sheets and Consolidated Statements of Earnings. The segment breakdown of Goodwill at March 31, 2020 and 2019 is as follows:
|  | For the Years Ended March 31, |
|  | 2020 |  |  | 2019 |
|  | (dollars in thousands) |
Cement |  | $ | 205,797 |  |  | $ | 74,214 |
Concrete and Aggregates |  |  | 1,639 |  |  |  | — |
Gypsum Wallboard |  |  | 116,618 |  |  |  | 116,618 |
Paperboard |  |  | 7,538 |  |  |  | 7,538 |
|  | $ | 331,592 |  |  | $ | 198,370 |

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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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