XML 37 R22.htm IDEA: XBRL DOCUMENT v3.20.2
SEGMENT INFORMATION
 6 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(O) 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. On September 18, 2020, we sold our Oil and Gas Proppants business, which had been reported as an operating segment. The Oil and Gas Proppants business was determined to meet the discontinued operations accounting criteria; therefore, this segment is no longer separately reported in our reportable segment footnote for any of the periods presented. Certain expenses of the Oil and Gas Proppants business that related to assets not included in the sale, namely real property and equipment in south Texas, real property in Illinois, and certain other assets, are included in Other when reconciling segment operating earnings to consolidated operating earnings. See Footnote (C) for more information about the sale of the Oil and Gas Proppants business.

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.

Our remaining businesses are organized into two sectors within which there are four 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.

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).

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 Colorado, Illinois, Indiana, Iowa, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, and Texas. We operate 20 readymix concrete batch plants and three aggregates processing plants in markets that are complementary to our cement network. On April 17, 2020 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.

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 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 September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

Revenue -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

278,062

 

 

$

227,013

 

 

$

539,473

 

 

$

422,326

 

Concrete and Aggregates

 

 

46,300

 

 

 

55,971

 

 

 

90,490

 

 

 

95,749

 

Gypsum Wallboard

 

 

131,210

 

 

 

128,660

 

 

 

261,360

 

 

 

255,384

 

Paperboard

 

 

46,071

 

 

 

41,847

 

 

 

82,815

 

 

 

84,547

 

 

 

 

501,643

 

 

 

453,491

 

 

 

974,138

 

 

 

858,006

 

Less: Intersegment Revenue

 

 

(26,766

)

 

 

(23,034

)

 

 

(46,972

)

 

 

(44,679

)

Less: Joint Venture Revenue

 

 

(27,193

)

 

 

(29,888

)

 

 

(52,493

)

 

 

(57,393

)

 

 

$

447,684

 

 

$

400,569

 

 

$

874,673

 

 

$

755,934

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

Intersegment Revenue -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

6,267

 

 

$

6,703

 

 

$

12,298

 

 

$

10,956

 

Concrete and Aggregates

 

 

—

 

 

 

407

 

 

 

106

 

 

 

784

 

Paperboard

 

 

20,499

 

 

 

15,924

 

 

 

34,568

 

 

 

32,939

 

 

 

$

26,766

 

 

$

23,034

 

 

$

46,972

 

 

$

44,679

 

Cement Sales Volume (M tons) -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

 

1,947

 

 

 

1,529

 

 

 

3,813

 

 

 

2,847

 

Joint Venture

 

 

233

 

 

 

249

 

 

 

452

 

 

 

481

 

 

 

 

2,180

 

 

 

1,778

 

 

 

4,265

 

 

 

3,328

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

79,913

 

 

$

66,526

 

 

$

140,368

 

 

$

102,647

 

Concrete and Aggregates

 

 

5,255

 

 

 

7,255

 

 

 

10,673

 

 

 

11,689

 

Gypsum Wallboard

 

 

37,606

 

 

 

38,456

 

 

 

78,931

 

 

 

76,388

 

Paperboard

 

 

10,652

 

 

 

10,095

 

 

 

13,547

 

 

 

20,039

 

Other

 

 

—

 

 

 

(955

)

 

 

—

 

 

 

(1,860

)

Sub-Total

 

 

133,426

 

 

 

121,377

 

 

 

243,519

 

 

 

208,903

 

Corporate General and Administrative Expense

 

 

(11,109

)

 

 

(13,458

)

 

 

(28,898

)

 

 

(34,712

)

Gain on Sale of Businesses

 

 

—

 

 

 

—

 

 

 

51,973

 

 

 

—

 

Other Non-Operating Income (Loss)

 

 

(90

)

 

 

585

 

 

 

(399

)

 

 

723

 

Earnings Before Interest and Income Taxes

 

 

122,227

 

 

 

108,504

 

 

 

266,195

 

 

 

174,914

 

Interest Expense, net

 

 

(12,556

)

 

 

(10,137

)

 

 

(26,597

)

 

 

(18,983

)

Earnings from Continuing Operations Before Income Taxes

 

$

109,671

 

 

$

98,367

 

 

$

239,598

 

 

$

155,931

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

$

69,336

 

 

$

54,169

 

 

$

121,995

 

 

$

80,858

 

Joint Venture

 

 

10,577

 

 

 

12,357

 

 

 

18,373

 

 

 

21,789

 

 

 

$

79,913

 

 

$

66,526

 

 

$

140,368

 

 

$

102,647

 

Capital Expenditures -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

7,909

 

 

$

8,209

 

 

$

18,257

 

 

$

18,746

 

Concrete and Aggregates

 

 

41

 

 

 

5,496

 

 

 

1,302

 

 

 

6,091

 

Gypsum Wallboard

 

 

4,070

 

 

 

6,443

 

 

 

10,582

 

 

 

8,374

 

Paperboard

 

 

2,665

 

 

 

17,239

 

 

 

10,535

 

 

 

29,599

 

 

 

$

14,685

 

 

$

37,387

 

 

$

40,676

 

 

$

62,810

 

Depreciation, Depletion, and Amortization -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

19,258

 

 

$

13,868

 

 

$

38,501

 

 

$

28,086

 

Concrete and Aggregates

 

 

2,698

 

 

 

2,754

 

 

 

5,419

 

 

 

4,945

 

Gypsum Wallboard

 

 

5,661

 

 

 

5,147

 

 

 

10,861

 

 

 

10,099

 

Paperboard

 

 

3,344

 

 

 

2,203

 

 

 

6,696

 

 

 

4,366

 

Corporate and Other

 

 

1,201

 

 

 

598

 

 

 

2,501

 

 

 

1,195

 

 

 

$

32,162

 

 

$

24,570

 

 

$

63,978

 

 

$

48,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

—

 

 

$

—

 

 

$

—

 

 

$

65

 

Depreciation, Depletion, and Amortization

 

$

100

 

 

$

3,803

 

 

$

221

 

 

$

7,642

 

 

 

 

 

September 30,

 

 

March 31,

 

 

 

2020

 

 

2020

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

 

 

Cement

 

$

1,952,280

 

 

$

1,980,306

 

Concrete and Aggregates

 

 

96,566

 

 

 

136,041

 

Gypsum Wallboard

 

 

369,966

 

 

 

375,946

 

Paperboard

 

 

193,259

 

 

 

183,288

 

Assets of Discontinued Operations

 

 

—

 

 

 

13,831

 

Other, net

 

 

259,212

 

 

 

271,608

 

 

 

$

2,871,283

 

 

$

2,961,020

 

 

The Capital Expenditures for the six months ended September 30, 2019 disclosed above differs from the capital expenditures on the Unaudited Consolidated Statement of Cash Flows as it includes $2.9 million of capital expenditures that were accrued at September 30, 2019 and therefore not included in the Statement of Cash Flows. See Footnote (B) 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, 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, 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:

 

 

 

September 30,

 

 

March 31,

 

 

 

2020

 

 

2020

 

 

 

(dollars in thousands)

 

Cement

 

$

203,342

 

 

$

205,797

 

Concrete and Aggregates

 

 

1,639

 

 

 

1,639

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

329,137

 

 

$

331,592

 

 

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,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenue

 

$

54,387

 

 

$

59,775

 

 

$

104,987

 

 

$

115,617

 

Gross Margin

 

$

23,004

 

 

$

26,191

 

 

$

39,769

 

 

$

46,056

 

Earnings Before Income Taxes

 

$

21,154

 

 

$

24,713

 

 

$

36,745

 

 

$

43,577

 

 

 

 

September 30,

 

 

March 31,

 

 

 

2020

 

 

2020

 

 

 

(dollars in thousands)

 

Current Assets

 

$

70,185

 

 

$

77,331

 

Non-Current Assets

 

$

101,889

 

 

$

93,093

 

Current Liabilities

 

$

16,917

 

 

$

17,197