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SEGMENT INFORMATION
 9 Months Ended
Dec. 31, 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 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 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 December 31,

 

 

For the Nine Months Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

Revenue -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

234,092

 

 

$

183,031

 

 

$

773,565

 

 

$

605,357

 

Concrete and Aggregates

 

 

43,530

 

 

 

47,147

 

 

 

134,020

 

 

 

142,896

 

Gypsum Wallboard

 

 

135,658

 

 

 

125,070

 

 

 

397,018

 

 

 

380,454

 

Paperboard

 

 

39,602

 

 

 

37,813

 

 

 

122,417

 

 

 

122,360

 

 

 

 

452,882

 

 

 

393,061

 

 

 

1,427,020

 

 

 

1,251,067

 

Less: Intersegment Revenue

 

 

(21,105

)

 

 

(21,775

)

 

 

(68,077

)

 

 

(66,454

)

Less: Joint Venture Revenue

 

 

(27,110

)

 

 

(28,382

)

 

 

(79,603

)

 

 

(85,775

)

 

 

$

404,667

 

 

$

342,904

 

 

$

1,279,340

 

 

$

1,098,838

 

 

 

 

For the Three Months Ended December 31,

 

 

For the Nine Months Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

Intersegment Revenue -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

5,241

 

 

$

6,174

 

 

$

17,539

 

 

$

17,130

 

Concrete and Aggregates

 

 

—

 

 

 

350

 

 

 

106

 

 

 

1,134

 

Paperboard

 

 

15,864

 

 

 

15,251

 

 

 

50,432

 

 

 

48,190

 

 

 

$

21,105

 

 

$

21,775

 

 

$

68,077

 

 

$

66,454

 

Cement Sales Volume (M tons) -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

 

1,616

 

 

 

1,199

 

 

 

5,429

 

 

 

4,046

 

Joint Venture

 

 

226

 

 

 

240

 

 

 

678

 

 

 

721

 

 

 

 

1,842

 

 

 

1,439

 

 

 

6,107

 

 

 

4,767

 

 

 

 

For the Three Months Ended December 31,

 

 

For the Nine Months Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

70,434

 

 

$

54,180

 

 

$

210,802

 

 

$

156,827

 

Concrete and Aggregates

 

 

5,075

 

 

 

3,334

 

 

 

15,748

 

 

 

15,023

 

Gypsum Wallboard

 

 

40,792

 

 

 

38,484

 

 

 

119,723

 

 

 

114,872

 

Paperboard

 

 

7,161

 

 

 

9,021

 

 

 

20,708

 

 

 

29,060

 

Other

 

 

—

 

 

 

(1,116

)

 

 

—

 

 

 

(2,976

)

Sub-Total

 

 

123,462

 

 

 

103,903

 

 

 

366,981

 

 

 

312,806

 

Corporate General and Administrative Expense

 

 

(11,327

)

 

 

(13,794

)

 

 

(40,225

)

 

 

(48,506

)

Gain on Sale of Businesses

 

 

—

 

 

 

—

 

 

 

51,973

 

 

 

—

 

Impairment Losses

 

 

—

 

 

 

(25,131

)

 

 

—

 

 

 

(25,131

)

Other Non-Operating Income

 

 

2,297

 

 

 

722

 

 

 

1,898

 

 

 

1,445

 

Earnings Before Interest and Income Taxes

 

 

114,432

 

 

 

65,700

 

 

 

380,627

 

 

 

240,614

 

Interest Expense, net

 

 

(9,360

)

 

 

(9,543

)

 

 

(35,957

)

 

 

(28,526

)

Earnings from Continuing Operations Before Income Taxes

 

$

105,072

 

 

$

56,157

 

 

$

344,670

 

 

$

212,088

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

$

60,351

 

 

$

43,480

 

 

$

182,346

 

 

$

124,338

 

Joint Venture

 

 

10,083

 

 

 

10,700

 

 

 

28,456

 

 

 

32,489

 

 

 

$

70,434

 

 

$

54,180

 

 

$

210,802

 

 

$

156,827

 

Capital Expenditures -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

2,510

 

 

$

7,379

 

 

$

20,767

 

 

$

26,125

 

Concrete and Aggregates

 

 

1,631

 

 

 

3,233

 

 

 

2,933

 

 

 

9,324

 

Gypsum Wallboard

 

 

491

 

 

 

273

 

 

 

11,073

 

 

 

8,647

 

Paperboard

 

 

233

 

 

 

12,885

 

 

 

10,768

 

 

 

42,484

 

 

 

$

4,865

 

 

$

23,770

 

 

$

45,541

 

 

$

86,580

 

Depreciation, Depletion, and Amortization -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

19,337

 

 

$

14,189

 

 

$

57,838

 

 

$

42,275

 

Concrete and Aggregates

 

 

2,691

 

 

 

3,105

 

 

 

8,110

 

 

 

8,050

 

Gypsum Wallboard

 

 

5,340

 

 

 

5,050

 

 

 

16,201

 

 

 

15,149

 

Paperboard

 

 

3,509

 

 

 

2,244

 

 

 

10,205

 

 

 

6,610

 

Corporate and Other

 

 

1,203

 

 

 

578

 

 

 

3,704

 

 

 

1,773

 

 

 

$

32,080

 

 

$

25,166

 

 

$

96,058

 

 

$

73,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

—

 

 

$

86

 

 

$

—

 

 

$

151

 

Depreciation, Depletion, and Amortization

 

$

—

 

 

$

3,445

 

 

$

221

 

 

$

11,087

 

 

 

 

 

December 31,

 

 

March 31,

 

 

 

2020

 

 

2020

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

 

 

Cement

 

$

1,907,191

 

 

$

1,980,306

 

Concrete and Aggregates

 

 

99,495

 

 

 

136,041

 

Gypsum Wallboard

 

 

358,530

 

 

 

375,946

 

Paperboard

 

 

190,024

 

 

 

183,288

 

Assets of Discontinued Operations

 

 

—

 

 

 

13,831

 

Other, net

 

 

169,798

 

 

 

271,608

 

 

 

$

2,725,038

 

 

$

2,961,020

 

 

The Capital Expenditures for the nine months ended December 31, 2019 disclosed above differs from the Capital Expenditures on the Unaudited Consolidated Statement of Cash Flows, as it includes $2.7 million of capital expenditures that were accrued at December 31, 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:

 

 

 

December 31,

 

 

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 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,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenue

 

$

54,220

 

 

$

56,767

 

 

$

159,207

 

 

$

172,385

 

Gross Margin

 

$

22,045

 

 

$

22,749

 

 

$

61,814

 

 

$

68,806

 

Earnings Before Income Taxes

 

$

21,920

 

 

$

21,402

 

 

$

58,665

 

 

$

64,979

 

 

 

 

December 31,

 

 

March 31,

 

 

 

2020

 

 

2020

 

 

 

(dollars in thousands)

 

Current Assets

 

$

68,449

 

 

$

77,331

 

Non-Current Assets

 

$

107,211

 

 

$

93,093

 

Current Liabilities

 

$

16,883

 

 

$

17,197