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BUSINESS SEGMENTS
 12 Months Ended
Mar. 31, 2023
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 over 30 cement distribution terminals, including terminals acquired in the Stockton Acquisition. 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 30 readymix concrete batch plants and five aggregates processing plants in markets that are complementary to our cement network.

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 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,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(dollars in thousands)

 

Revenue

 

 

 

 

 

 

 

 

 

Cement

 

$

1,074,070

 

 

$

1,007,094

 

 

$

944,556

 

Concrete and Aggregates

 

 

239,516

 

 

 

177,122

 

 

 

168,829

 

Gypsum Wallboard

 

 

872,471

 

 

 

692,152

 

 

 

539,009

 

Paperboard

 

 

201,280

 

 

 

194,054

 

 

 

163,507

 

 

 

 

2,387,337

 

 

 

2,070,422

 

 

 

1,815,901

 

Less: Intersegment Revenue

 

 

(125,750

)

 

 

(105,001

)

 

 

(88,068

)

Less: Joint Venture Revenue

 

 

(113,518

)

 

 

(103,899

)

 

 

(105,191

)

 

 

$

2,148,069

 

 

$

1,861,522

 

 

$

1,622,642

 

 

 

 

 

For the Years Ended March 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(dollars in thousands)

 

Intersegment Revenue

 

 

 

 

 

 

 

 

 

Cement

 

$

32,915

 

 

$

22,915

 

 

$

20,862

 

Concrete and Aggregates

 

 

—

 

 

 

—

 

 

 

106

 

Paperboard

 

 

92,835

 

 

 

82,086

 

 

 

67,100

 

 

 

$

125,750

 

 

$

105,001

 

 

$

88,068

 

Cement Sales Volume (M tons)

 

 

 

 

 

 

 

 

 

Wholly Owned

 

 

6,399

 

 

 

6,711

 

 

 

6,576

 

Joint Venture

 

 

734

 

 

 

823

 

 

 

890

 

 

 

 

7,133

 

 

 

7,534

 

 

 

7,466

 

 

 

 

 

For the Years Ended March 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

 

 

(dollars in thousands)

 

 

Operating Earnings

 

 

 

 

 

 

 

 

 

Cement

 

$

278,762

 

 

$

259,556

 

 

$

233,957

 

Concrete and Aggregates

 

 

18,259

 

 

 

18,467

 

 

 

19,054

 

Gypsum Wallboard

 

 

352,499

 

 

 

261,476

 

 

 

167,336

 

Paperboard

 

 

25,220

 

 

 

12,603

 

 

 

25,449

 

Sub-Total

 

 

674,740

 

 

 

552,102

 

 

 

445,796

 

Corporate General and Administrative Expense

 

 

(53,630

)

 

 

(46,801

)

 

 

(49,511

)

Loss on Early Retirement of Senior Notes

 

 

—

 

 

 

(8,407

)

 

 

—

 

Gain on Sale of Businesses

 

 

—

 

 

 

—

 

 

 

51,973

 

Other Nonoperating Income (Loss)

 

 

2,654

 

 

 

9,073

 

 

 

20,274

 

Earnings Before Interest and Income Taxes

 

 

623,764

 

 

 

505,967

 

 

 

468,532

 

Interest Expense, net

 

 

(35,171

)

 

 

(30,873

)

 

 

(44,420

)

Earnings Before Income Taxes

 

$

588,593

 

 

$

475,094

 

 

$

424,112

 

Cement Operating Earnings

 

 

 

 

 

 

 

 

 

Wholly Owned

 

$

243,288

 

 

$

227,068

 

 

$

196,516

 

Joint Venture

 

 

35,474

 

 

 

32,488

 

 

 

37,441

 

 

 

$

278,762

 

 

$

259,556

 

 

$

233,957

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

Cement

 

$

39,049

 

 

$

31,535

 

 

$

26,708

 

Concrete and Aggregates

 

 

35,503

 

 

 

5,239

 

 

 

3,114

 

Gypsum Wallboard

 

 

31,063

 

 

 

32,405

 

 

 

12,889

 

Paperboard

 

 

2,898

 

 

 

2,579

 

 

 

11,222

 

Corporate and Other

 

 

1,630

 

 

 

2,363

 

 

 

—

 

 

 

$

110,143

 

 

$

74,121

 

 

$

53,933

 

Depreciation, Depletion, and Amortization

 

 

 

 

 

 

 

 

 

Cement

 

$

81,643

 

 

$

79,560

 

 

$

77,524

 

Concrete and Aggregates

 

 

17,413

 

 

 

9,656

 

 

 

10,807

 

Gypsum Wallboard

 

 

21,744

 

 

 

22,024

 

 

 

21,646

 

Paperboard

 

 

14,942

 

 

 

14,721

 

 

 

13,913

 

Corporate and Other

 

 

2,812

 

 

 

2,850

 

 

 

4,976

 

 

 

$

138,554

 

 

$

128,811

 

 

$

128,866

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

—

 

 

$

—

 

 

$

—

 

Depreciation, Depletion, and Amortization

 

$

—

 

 

$

—

 

 

$

221

 

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(dollars in thousands)

 

Segment Assets

 

 

 

 

 

 

 

 

 

Cement

 

$

1,905,227

 

 

$

1,860,649

 

 

$

1,898,930

 

Concrete and Aggregates

 

 

234,767

 

 

 

89,405

 

 

 

88,410

 

Gypsum Wallboard

 

 

421,425

 

 

 

397,486

 

 

 

366,352

 

Paperboard

 

 

163,797

 

 

 

180,025

 

 

 

186,156

 

Corporate and Other, net

 

 

55,786

 

 

 

52,087

 

 

 

298,833

 

 

 

$

2,781,002

 

 

$

2,579,652

 

 

$

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. Segment Operating Earnings don’t include certain nonrecurring 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, 2023 and 2022 is as follows:

 

 

 

For the Years Ended March 31,

 

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Cement

 

$

215,781

 

 

$

203,342

 

Concrete and Aggregates

 

 

40,774

 

 

 

1,639

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

380,711

 

 

$

329,137

 

Summarized financial information for the Joint Venture that is not consolidated is set out below. The summarized financial information includes the total amount of the Joint Venture and not our 50% interest in those amounts:

 

 

For the Years Ended March 31,

 

 

 

2023

 

 

2022

 

 

 

(dollars in thousands)

 

Revenue

 

$

227,565

 

 

$

209,937

 

Gross Margin

 

$

77,673

 

 

$

69,913

 

Earnings Before Income Taxes

 

$

71,491

 

 

$

65,541

 

 

 

 

March 31,

 

 

 

(dollars in thousands)

 

Current Assets

 

$

88,562

 

 

$

73,462

 

Noncurrent Assets

 

$

124,503

 

 

$

112,439

 

Current Liabilities

 

$

29,434

 

 

$

17,161