SEGMENT REPORTING

12 Months Ended

Dec. 31, 2012

SEGMENT REPORTING

NOTE 15: SEGMENT REPORTING

We have four operating segments organized around our principal product lines: aggregates, concrete, asphalt mix and cement.

The Aggregates segment produces and sells aggregates (crushed stone, sand and gravel, sand, and other aggregates) and related products and services (transportation and other). During 2012, the Aggregates segment principally served markets in nineteen states, the District of Columbia, the Bahamas and Mexico with a full line of aggregates, and ten additional states with railroad ballast. Customers use aggregates primarily in the construction and maintenance of highways, streets and other public works and in the construction of housing and commercial, industrial and other nonresidential facilities. Customers are served by truck, rail and water distribution networks from our production facilities and sales yards. Due to the high weight-to-value ratio of aggregates, markets generally are local in nature. Quarries located on waterways and rail lines allow us to serve remote markets where local aggregates reserves may not be available. We sell a relatively small amount of construction aggregates outside the United States. Nondomestic net sales were $14,733,000 in 2012, $16,678,000 in 2011 and $23,380,000 in 2010.

The Concrete segment produces and sells ready-mixed concrete in six states and the District of Columbia. Additionally, we produce and sell, in a limited number of these markets, other concrete products such as block and precast and resell purchased building materials related to the use of ready-mixed concrete and concrete block.

The Asphalt Mix segment produces and sells asphalt mix in three states primarily in our southwestern and western markets.

Aggregates comprise approximately 78% of ready-mixed concrete by weight and 95% of asphalt mix by weight. Our Concrete and Asphalt Mix segments are almost wholly supplied with their aggregates requirements from our Aggregates segment. These intersegment sales are made at local market prices for the particular grade and quality of product utilized in the production of ready-mixed concrete and asphalt mix. Customers for our Concrete and Asphalt Mix segments are generally served locally at our production facilities or by truck. Because ready-mixed concrete and asphalt mix harden rapidly, delivery is time constrained and generally confined to a radius of approximately 20 to 25 miles from the producing facility.

The Cement segment produces and sells Portland and masonry cement in both bulk and bags from our Florida cement plant. Other Cement segment facilities in Florida import and export cement, clinker and slag and either resell, grind, blend, bag or reprocess those materials. This segment also includes a Florida facility that mines, produces and sells calcium products. Our Concrete segment is the largest single customer of our Cement segment.

The vast majority of our activities are domestic. Long-lived assets outside the United States, which consist primarily of property, plant & equipment, were $138,415,000 in 2012, $142,988,000 in 2011 and $150,157,000 in 2010. Equity method investments of $22,965,000 in 2012, $22,876,000 in 2011 and $22,852,000 in 2010 are included below in the identifiable assets for the Aggregates segment.

SEGMENT FINANCIAL DISCLOSURE

in millions	2012			2011			2010
Total Revenues
Aggregates
Segment revenues		$1,729.4			$1,734.0			$1,766.9
Intersegment sales		(148.2	)		(142.6	)		(154.1	)
Net sales		$1,581.2			$1,591.4			$1,612.8
Concrete
Segment revenues		$406.4			$374.7			$383.2
Net sales		$406.4			$374.7			$383.2
Asphalt Mix
Segment revenues		$378.1			$399.0			$369.9
Net sales		$378.1			$399.0			$369.9
Cement
Segment revenues		$84.6			$71.9			$80.2
Intersegment sales		(39.1	)		(30.1	)		(40.2	)
Net sales		$45.5			$41.8			$40.0
Totals
Net sales		$2,411.2			$2,406.9			$2,405.9
Delivery revenues		156.1			157.7			153.0
Total revenues		$2,567.3			$2,564.6			$2,558.9
Gross Profit
Aggregates		$352.1			$306.2			$320.2
Concrete		(38.2	)		(43.4	)		(45.0	)
Asphalt Mix		22.9			25.6			29.3
Cement		(2.8	)		(4.5	)		(3.8	)
Total		$334.0			$283.9			$300.7
Depreciation, Depletion, Accretion and Amortization 1
Aggregates		$240.7			$267.0			$288.6
Concrete		41.3			47.7			50.5
Asphalt Mix		8.7			7.7			8.4
Cement		18.1			17.8			20.1
Other		23.2			21.5			14.5
Total		$332.0			$361.7			$382.1
Capital Expenditures
Aggregates		$77.0			$67.6			$60.6
Concrete		9.2			6.3			3.7
Asphalt Mix		7.2			16.1			4.5
Cement		1.2			3.2			7.3
Corporate		1.2			4.7			3.3
Total		$95.8			$97.9			$79.4
Identifiable Assets 2
Aggregates		$6,717.3			$6,837.0			$6,984.5
Concrete		412.3			461.1			483.2
Asphalt Mix		218.9			234.9			211.5
Cement		398.1			417.8			435.0
Total identifiable assets		7,746.6			7,950.8			8,114.2
General corporate assets		104.5			122.7			177.8
Cash items		275.5			155.8			47.5
Total assets		$8,126.6			$8,229.3			$8,339.5

¹ The allocation of indirect depreciation to our operating segments was changed in 2012 to better align the presentation with how management views information internally. The 2011 and 2010 DDA&A amounts presented above have been revised to conform to the 2012 presentation.

² Certain temporarily idled assets are included within a segment’s Identifiable Assets but the associated DDA&A is shown within Other in the DDA&A section above since the related DDA&A is excluded from segment gross profit.