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BUSINESS SEGMENTS
 12 Months Ended
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.