XML 58 R23.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

SEGMENT INFORMATION | 9 Months Ended
--- | ---
Dec. 31, 2019
Segment Reporting [Abstract] |
SEGMENT INFORMATION | (P) 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 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 modern cement plants (one of which is operated through a joint venture located in Buda, Texas), one slag grinding facility, and 19 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, Iowa, Missouri, Nebraska, Nevada, Ohio, Oklahoma, and Texas. We operate 25 readymix concrete batch plants and five aggregates processing plants in markets that are complementary to our cement network. 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 five 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’s Revenue and Operating Earnings, consistent with the way management reports the segments within the Company for making operating decisions and assessing performance. The following table sets forth certain financial information relating to our operations by segment. We do not allocate interest or taxes at the segment level; these costs are disclosed at the consolidated company level.
|  | For the Three Months Ended December 31, |  |  | For the Nine Months Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
|  | (dollars in thousands) |
Revenue - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 183,031 |  |  | $ | 163,732 |  |  | $ | 605,357 |  |  | $ | 543,681 |
Concrete and Aggregates |  |  | 47,147 |  |  |  | 30,841 |  |  |  | 142,895 |  |  |  | 111,425 |
Gypsum Wallboard |  |  | 125,070 |  |  |  | 130,954 |  |  |  | 380,454 |  |  |  | 402,978 |
Paperboard |  |  | 37,813 |  |  |  | 39,638 |  |  |  | 122,360 |  |  |  | 126,048 |
Oil and Gas Proppants |  |  | 7,345 |  |  |  | 14,100 |  |  |  | 36,535 |  |  |  | 65,266 |
|  |  | 400,406 |  |  |  | 379,265 |  |  |  | 1,287,601 |  |  |  | 1,249,398 |
Less: Intersegment Revenue |  |  | (21,775 | ) |  |  | (20,611 | ) |  |  | (66,454 | ) |  |  | (62,746 | )
Less: Joint Venture Revenue |  |  | (28,382 | ) |  |  | (25,369 | ) |  |  | (85,775 | ) |  |  | (78,112 | )
|  | $ | 350,249 |  |  | $ | 333,285 |  |  | $ | 1,135,372 |  |  | $ | 1,108,540 |
|  | For the Three Months Ended December 31, |  |  | For the Nine Months Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
|  | (dollars in thousands) |
Intersegment Revenue - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 6,174 |  |  | $ | 3,518 |  |  | $ | 17,130 |  |  | $ | 11,769 |
Concrete and Aggregates |  |  | 350 |  |  |  | 346 |  |  |  | 1,134 |  |  |  | 1,178 |
Paperboard |  |  | 15,251 |  |  |  | 16,747 |  |  |  | 48,190 |  |  |  | 49,799 |
|  | $ | 21,775 |  |  | $ | 20,611 |  |  | $ | 66,454 |  |  | $ | 62,746 |
Cement Sales Volume (M tons) - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wholly Owned |  |  | 1,199 |  |  |  | 1,126 |  |  |  | 4,046 |  |  |  | 3,740 |
Joint Venture |  |  | 240 |  |  |  | 218 |  |  |  | 721 |  |  |  | 672 |
|  |  | 1,439 |  |  |  | 1,344 |  |  |  | 4,767 |  |  |  | 4,412 |
|  | For the Three Months Ended December 31, |  |  | For the Nine Months Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
|  | (dollars in thousands) |
Operating Earnings (Loss) - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 54,180 |  |  | $ | 47,197 |  |  | $ | 156,827 |  |  | $ | 142,078 |
Concrete and Aggregates |  |  | 3,334 |  |  |  | 1,037 |  |  |  | 15,023 |  |  |  | 10,621 |
Gypsum Wallboard |  |  | 38,484 |  |  |  | 43,543 |  |  |  | 114,872 |  |  |  | 139,694 |
Paperboard |  |  | 9,021 |  |  |  | 7,475 |  |  |  | 29,060 |  |  |  | 26,078 |
Oil and Gas Proppants |  |  | (6,805 | ) |  |  | (9,324 | ) |  |  | (15,944 | ) |  |  | (19,554 | )
Sub-Total |  |  | 98,214 |  |  |  | 89,928 |  |  |  | 299,838 |  |  |  | 298,917 |
Corporate General and Administrative Expense |  |  | (13,794 | ) |  |  | (9,408 | ) |  |  | (48,506 | ) |  |  | (27,333 | )
Impairment Losses |  |  | (224,267 | ) |  |  | — |  |  |  | (224,267 | ) |  |  | — |
Litigation Settlements and Losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,800 | )
Other Non-Operating Income |  |  | 825 |  |  |  | 1,292 |  |  |  | 1,967 |  |  |  | 2,291 |
Earnings (Loss) Before Interest and Income Taxes |  |  | (139,022 | ) |  |  | 81,812 |  |  |  | 29,032 |  |  |  | 272,075 |
Interest Expense, net |  |  | (9,543 | ) |  |  | (7,294 | ) |  |  | (28,526 | ) |  |  | (20,743 | )
Earnings (Loss) Before Income Taxes |  | $ | (148,565 | ) |  | $ | 74,518 |  |  | $ | 506 |  |  | $ | 251,332 |
Cement Operating Earnings - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wholly Owned |  | $ | 43,480 |  |  | $ | 37,690 |  |  | $ | 124,338 |  |  | $ | 113,147 |
Joint Ventures |  |  | 10,700 |  |  |  | 9,507 |  |  |  | 32,489 |  |  |  | 28,931 |
|  | $ | 54,180 |  |  | $ | 47,197 |  |  | $ | 156,827 |  |  | $ | 142,078 |
Capital Expenditures - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 7,379 |  |  | $ | 17,691 |  |  | $ | 26,125 |  |  | $ | 51,524 |
Concrete and Aggregates |  |  | 3,233 |  |  |  | 2,263 |  |  |  | 9,324 |  |  |  | 4,786 |
Gypsum Wallboard |  |  | 273 |  |  |  | 2,054 |  |  |  | 8,647 |  |  |  | 8,533 |
Paperboard |  |  | 12,885 |  |  |  | 1,486 |  |  |  | 42,484 |  |  |  | 7,896 |
Oil and Gas Proppants |  |  | 86 |  |  |  | 5,818 |  |  |  | 151 |  |  |  | 48,684 |
Corporate and Other |  |  | — |  |  |  | 3,690 |  |  |  | — |  |  |  | 5,023 |
|  | $ | 23,856 |  |  | $ | 33,002 |  |  | $ | 86,731 |  |  | $ | 126,446 |
Depreciation, Depletion, and Amortization - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 14,189 |  |  | $ | 13,242 |  |  | $ | 42,275 |  |  | $ | 38,909 |
Concrete and Aggregates |  |  | 3,105 |  |  |  | 2,049 |  |  |  | 8,050 |  |  |  | 6,154 |
Gypsum Wallboard |  |  | 5,050 |  |  |  | 4,978 |  |  |  | 15,149 |  |  |  | 15,009 |
Paperboard |  |  | 2,244 |  |  |  | 2,150 |  |  |  | 6,610 |  |  |  | 6,387 |
Oil and Gas Proppants |  |  | 3,445 |  |  |  | 6,964 |  |  |  | 11,087 |  |  |  | 24,403 |
Corporate and Other |  |  | 578 |  |  |  | 402 |  |  |  | 1,773 |  |  |  | 1,099 |
|  | $ | 28,611 |  |  | $ | 29,785 |  |  | $ | 84,944 |  |  | $ | 91,961 |
|  | December 31, |  |  | March 31, |
|  | 2019 |  |  | 2019 |
|  | (dollars in thousands) |
Identifiable Assets |  |  |  |  |  |  |  |
Cement |  | $ | 1,282,081 |  |  | $ | 1,289,468 |
Concrete and Aggregates |  |  | 139,769 |  |  |  | 95,084 |
Gypsum Wallboard |  |  | 367,833 |  |  |  | 372,206 |
Paperboard |  |  | 169,508 |  |  |  | 138,614 |
Oil and Gas Proppants |  |  | 18,029 |  |  |  | 236,357 |
Corporate and Other, net |  |  | 153,005 |  |  |  | 37,434 |
|  | $ | 2,130,225 |  |  | $ | 2,169,163 |
The Capital Expenditures for the nine months ended December 31, 2019 disclosed above differ from the Capital Expenditures on the Unaudited Consolidated Statement of Cash Flows. The Capital Expenditures disclosed above includes $2.7 million of capital expenditures that were accrued at December 31, 2019 and therefore is not included in the Statement of Cash Flows. See Footnote (D) for more information. 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, Depletion and Amortization, and segment Selling, General and Administrative expenses. We account for intersegment sales at market prices. Corporate and Other, net consists 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 Unaudited Consolidated Balance Sheets and Unaudited Consolidated Statements of Earnings The segment breakdown of Goodwill is as follows:
|  | December 31, |  |  | March 31, |
|  | 2019 |  |  | 2019 |
|  | (dollars in thousands) |
Cement |  | $ | 74,214 |  |  | $ | 74,214 |
Gypsum Wallboard |  |  | 116,618 |  |  |  | 116,618 |
Paperboard |  |  | 7,538 |  |  |  | 7,538 |
Concrete and Aggregates |  |  | 1,639 |  |  |  | — |
|  | $ | 200,009 |  |  | $ | 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, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
|  | (dollars in thousands) |
Revenue |  | $ | 56,767 |  |  | $ | 51,411 |  |  | $ | 172,385 |  |  | $ | 158,922 |
Gross Margin |  | $ | 22,749 |  |  | $ | 20,178 |  |  | $ | 68,806 |  |  | $ | 62,196 |
Earnings Before Income Taxes |  | $ | 21,402 |  |  | $ | 19,013 |  |  | $ | 64,979 |  |  | $ | 57,862 |
|  | December 31, |  |  | March 31, |
|  | 2019 |  |  | 2019 |
|  | (dollars in thousands) |
Current Assets |  | $ | 80,108 |  |  | $ | 71,688 |
Non-Current Assets |  | $ | 88,242 |  |  | $ | 81,007 |
Current Liabilities |  | $ | 19,190 |  |  | $ | 19,309 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration