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BUSINESS SEGMENTS | 12 Months Ended
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Mar. 31, 2021
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. 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. Our business is 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 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 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). 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 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 tables below set 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, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (dollars in thousands) |
Revenue - |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 944,556 |  |  | $ | 752,002 |  |  | $ | 656,759 |
Concrete and Aggregates |  |  | 168,829 |  |  |  | 182,775 |  |  |  | 140,173 |
Gypsum Wallboard |  |  | 539,009 |  |  |  | 508,145 |  |  |  | 532,712 |
Paperboard |  |  | 163,507 |  |  |  | 159,963 |  |  |  | 167,656 |
|  |  | 1,815,901 |  |  |  | 1,602,885 |  |  |  | 1,497,300 |
Less: Intersegment Revenue |  |  | (88,068 | ) |  |  | (85,316 | ) |  |  | (82,553 | )
Less: Joint Venture Revenue |  |  | (105,191 | ) |  |  | (113,536 | ) |  |  | (104,493 | )
|  | $ | 1,622,642 |  |  | $ | 1,404,033 |  |  | $ | 1,310,254 |
|  | For the Years Ended March 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (dollars in thousands) |
Intersegment Revenue - |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 20,862 |  |  | $ | 21,499 |  |  | $ | 14,408 |
Concrete and Aggregates |  |  | 106 |  |  |  | 1,502 |  |  |  | 1,422 |
Paperboard |  |  | 67,100 |  |  |  | 62,315 |  |  |  | 66,723 |
|  | $ | 88,068 |  |  | $ | 85,316 |  |  | $ | 82,553 |
Cement Sales Volume (M tons) - |  |  |  |  |  |  |  |  |  |  |  |
Wholly Owned |  |  | 6,576 |  |  |  | 4,975 |  |  |  | 4,441 |
Joint Venture |  |  | 890 |  |  |  | 956 |  |  |  | 899 |
|  |  | 7,466 |  |  |  | 5,931 |  |  |  | 5,340 |
|  | For the Years Ended March 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  |  |  |  | (dollars in thousands) |  |  |
Operating Earnings - |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 233,957 |  |  | $ | 181,330 |  |  | $ | 164,782 |
Concrete and Aggregates |  |  | 19,054 |  |  |  | 17,558 |  |  |  | 12,866 |
Gypsum Wallboard |  |  | 167,336 |  |  |  | 154,614 |  |  |  | 180,831 |
Paperboard |  |  | 25,449 |  |  |  | 34,979 |  |  |  | 35,349 |
Other |  |  | — |  |  |  | (3,230 | ) |  |  | (7,161 | )
Sub-Total |  |  | 445,796 |  |  |  | 385,251 |  |  |  | 386,667 |
Corporate General and Administrative Expense |  |  | (49,511 | ) |  |  | (65,410 | ) |  |  | (37,371 | )
Gain on Sale of Businesses |  |  | 51,973 |  |  |  | — |  |  |  | — |
Impairment Losses |  |  | — |  |  |  | (25,131 | ) |  |  | (37,179 | )
Litigation Settlements and Losses |  |  | — |  |  |  | — |  |  |  | (1,800 | )
Other Non-Operating Income (Loss) |  |  | 20,274 |  |  |  | (594 | ) |  |  | 1,835 |
Earnings Before Interest and Income Taxes |  |  | 468,532 |  |  |  | 294,116 |  |  |  | 312,152 |
Interest Expense, net |  |  | (44,420 | ) |  |  | (38,421 | ) |  |  | (28,374 | )
Earnings Before Income Taxes |  | $ | 424,112 |  |  | $ | 255,695 |  |  | $ | 283,778 |
Cement Operating Earnings - |  |  |  |  |  |  |  |  |  |  |  |
Wholly Owned |  | $ | 196,516 |  |  | $ | 138,745 |  |  | $ | 126,217 |
Joint Venture |  |  | 37,441 |  |  |  | 42,585 |  |  |  | 38,565 |
|  | $ | 233,957 |  |  | $ | 181,330 |  |  | $ | 164,782 |
Capital Expenditures - |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 26,708 |  |  | $ | 44,776 |  |  | $ | 76,504 |
Concrete and Aggregates |  |  | 3,114 |  |  |  | 11,898 |  |  |  | 6,649 |
Gypsum Wallboard |  |  | 12,889 |  |  |  | 12,771 |  |  |  | 10,724 |
Paperboard |  |  | 11,222 |  |  |  | 62,528 |  |  |  | 16,603 |
Corporate and Other |  |  | — |  |  |  | — |  |  |  | 6,107 |
|  | $ | 53,933 |  |  | $ | 131,973 |  |  | $ | 116,587 |
Depreciation, Depletion, and Amortization - |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 77,524 |  |  | $ | 59,081 |  |  | $ | 52,802 |
Concrete and Aggregates |  |  | 10,807 |  |  |  | 11,142 |  |  |  | 8,176 |
Gypsum Wallboard |  |  | 21,646 |  |  |  | 20,320 |  |  |  | 20,020 |
Paperboard |  |  | 13,913 |  |  |  | 8,945 |  |  |  | 8,541 |
Corporate and Other |  |  | 4,976 |  |  |  | 2,720 |  |  |  | 1,668 |
|  | $ | 128,866 |  |  | $ | 102,208 |  |  | $ | 91,207 |
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |
Capital Expenditures |  | $ | — |  |  | $ | 146 |  |  | $ | 52,286 |
Depreciation, Depletion, and Amortization |  | $ | 221 |  |  | $ | 11,310 |  |  | $ | 31,328 |
|  | As of March 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | (dollars in thousands) |
Identifiable Assets |  |  |  |  |  |  |  |  |  |  |  |
Cement |  | $ | 1,898,930 |  |  | $ | 1,980,306 |  |  | $ | 1,289,468 |
Concrete and Aggregates |  |  | 88,410 |  |  |  | 136,041 |  |  |  | 95,084 |
Gypsum Wallboard |  |  | 366,352 |  |  |  | 375,946 |  |  |  | 372,206 |
Paperboard |  |  | 186,156 |  |  |  | 183,288 |  |  |  | 138,614 |
Assets of Discontinued Operations |  |  | — |  |  |  | 13,831 |  |  |  | 222,890 |
Corporate and Other, net |  |  | 298,833 |  |  |  | 271,608 |  |  |  | 50,901 |
|  | $ | 2,838,681 |  |  | $ | 2,961,020 |  |  | $ | 2,169,163 |
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, 2021 and 2020 is as follows:
|  | For the Years Ended March 31, |
|  | 2021 |  |  | 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 |
The reduction in Goodwill in our Cement segment during fiscal 2021 was due to our finalizing the purchase price allocation related to the Kosmos Acquisition during fiscal 2021, which resulted in a lower amount of Goodwill. See Footnote (B) for more information.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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