Goodwill

3 Months Ended

Mar. 31, 2012

Goodwill [Abstract]

GOODWILL

NOTE 14: GOODWILL

Goodwill is recognized when the consideration paid for a business combination (acquisition) exceeds the fair value of the tangible and identifiable intangible assets acquired. Goodwill is allocated to reporting units for purposes of testing goodwill for impairment. There were no charges for goodwill impairment in the three month periods ended March 31, 2012 and 2011.

We have four reportable segments organized around our principal product lines: aggregates, concrete, asphalt mix and cement. Changes in the carrying amount of goodwill by reportable segment from December 31, 2011 to March 31, 2012 are summarized below:

GOODWILL in thousands	Aggregates		Concrete		Asphalt Mix		Cement		Total
Gross Carrying Amount
Total as of December 31, 2011		$2,995,083		$0		$91,633		$252,664		$3,339,380
Total as of March 31, 2012		$2,995,083		$0		$91,633		$252,664		$3,339,380
Accumulated Impairment Losses
Total as of December 31, 2011		$0		$0		$0		($252,664)		($252,664)
Total as of March 31, 2012		$0		$0		$0		($252,664)		($252,664)
Goodwill, net of Accumulated Impairment Losses
Total as of December 31, 2011		$2,995,083		$0		$91,633		$0		$3,086,716
Total as of March 31, 2012		$2,995,083		$0		$91,633		$0		$3,086,716

We test goodwill for impairment on an annual basis or more frequently if events or circumstances change in a manner that would more likely than not reduce the fair value of a reporting unit below its carrying value. While we have not identified any events or changes in circumstances that indicate the fair value of any of our reporting units is below its carrying value, the timing of a sustained recovery in the construction industry may have a significant effect on the fair value of our reporting units. A decrease in the estimated fair value of one or more of our reporting units could result in the recognition of a material, noncash write-down of goodwill that would reduce equity and result in an increase in our total debt as a percentage of total capital (42.9% as of March 31, 2012). The indenture governing our notes contains a covenant limiting our total debt as a percentage of total capital to 65%. We believe that it is highly unlikely that any potential write-down in goodwill would result in a violation of this covenant.