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SEGMENT INFORMATION
 3 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(N) 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.

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 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 June 30,

 

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Revenue

 

 

 

 

 

 

 

 

Cement

 

$

270,255

 

 

$

261,411

 

Concrete and Aggregates

 

 

44,754

 

 

 

44,190

 

Gypsum Wallboard

 

 

166,267

 

 

 

130,150

 

Paperboard

 

 

43,267

 

 

 

36,744

 

 

 

 

524,543

 

 

 

472,495

 

Less: Intersegment Revenue

 

 

(26,082

)

 

 

(20,206

)

Less: Joint Venture Revenue

 

 

(22,691

)

 

 

(25,300

)

 

 

$

475,770

 

 

$

426,989

 

 

 

 

For the Three Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Intersegment Revenue

 

 

 

 

 

 

 

 

Cement

 

$

7,833

 

 

$

6,031

 

Concrete and Aggregates

 

 

—

 

 

 

106

 

Paperboard

 

 

18,249

 

 

 

14,069

 

 

 

$

26,082

 

 

$

20,206

 

Cement Sales Volume (M tons)

 

 

 

 

 

 

 

 

Wholly Owned

 

 

1,852

 

 

 

1,866

 

Joint Venture

 

 

184

 

 

 

219

 

 

 

 

2,036

 

 

 

2,085

 

 

 

 

 

For the Three Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Operating Earnings

 

 

 

 

 

 

 

 

Cement

 

$

62,547

 

 

$

60,455

 

Concrete and Aggregates

 

 

5,344

 

 

 

5,418

 

Gypsum Wallboard

 

 

63,253

 

 

 

41,325

 

Paperboard

 

 

3,337

 

 

 

2,895

 

Sub-Total

 

 

134,481

 

 

 

110,093

 

Corporate General and Administrative Expense

 

 

(9,468

)

 

 

(17,789

)

Gain on Sale of Businesses

 

 

—

 

 

 

51,973

 

Other Non-Operating Income (Loss)

 

 

3,678

 

 

 

(309

)

Earnings Before Interest and Income Taxes

 

 

128,691

 

 

 

143,968

 

Interest Expense, net

 

 

(6,972

)

 

 

(14,041

)

Earnings Before Income Taxes

 

$

121,719

 

 

$

129,927

 

Cement Operating Earnings

 

 

 

 

 

 

 

 

Wholly Owned

 

$

54,577

 

 

$

52,659

 

Joint Ventures

 

 

7,970

 

 

 

7,796

 

 

 

$

62,547

 

 

$

60,455

 

Capital Expenditures

 

 

 

 

 

 

 

 

Cement

 

$

7,967

 

 

$

10,348

 

Concrete and Aggregates

 

 

546

 

 

 

1,261

 

Gypsum Wallboard

 

 

1,694

 

 

 

6,512

 

Paperboard

 

 

1,117

 

 

 

7,870

 

Corporate and Other

 

 

611

 

 

 

—

 

 

 

$

11,935

 

 

$

25,991

 

Depreciation, Depletion, and Amortization

 

 

 

 

 

 

 

 

Cement

 

$

19,531

 

 

$

19,243

 

Concrete and Aggregates

 

 

2,578

 

 

 

2,721

 

Gypsum Wallboard

 

 

5,396

 

 

 

5,200

 

Paperboard

 

 

3,668

 

 

 

3,352

 

Corporate and Other

 

 

771

 

 

 

1,300

 

 

 

$

31,944

 

 

$

31,816

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

Depreciation, Depletion, and Amortization

 

$

—

 

 

$

121

 

 

 

 

 

June 30,

 

 

March 31,

 

 

 

2021

 

 

2021

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

 

 

Cement

 

$

1,902,811

 

 

$

1,898,930

 

Concrete and Aggregates

 

 

91,306

 

 

 

88,410

 

Gypsum Wallboard

 

 

365,084

 

 

 

366,352

 

Paperboard

 

 

185,287

 

 

 

186,156

 

Corporate and Other

 

 

346,342

 

 

 

298,833

 

 

 

$

2,890,830

 

 

$

2,838,681

 

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:

 

 

 

June 30,

 

 

March 31,

 

 

 

2021

 

 

2021

 

 

 

(dollars in thousands)

 

Cement

 

$

203,342

 

 

$

203,342

 

Concrete and Aggregates

 

 

1,639

 

 

 

1,639

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

329,137

 

 

$

329,137

 

 

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 June 30,

 

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Revenue

 

$

45,382

 

 

$

50,600

 

Gross Margin

 

$

16,833

 

 

$

16,765

 

Earnings Before Income Taxes

 

$

16,189

 

 

$

15,727

 

 

 

 

June 30,

 

 

March 31,

 

 

 

2021

 

 

2021

 

 

 

(dollars in thousands)

 

Current Assets

 

$

67,254

 

 

$

66,871

 

Non-Current Assets

 

$

107,390

 

 

$

107,617

 

Current Liabilities

 

$

15,043

 

 

$

16,390