NOTE 15: SEGMENT REPORTING

We have four operating (and reportable) segments organized around our principal product lines: Aggregates, Asphalt, Concrete and Calcium. Management reviews earnings from the product line reporting segments principally at the gross profit level.

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 2017, the Aggregates segment principally served markets in twenty states, Washington D.C. and Mexico with a full line of aggregates, and fourteen 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.

The Asphalt segment produces and sells asphalt mix in five states: Arizona, California, New Mexico, Tennessee and Texas. We entered the Tennessee market in January 2017 through an acquisition (see Note 19).

The Concrete segment produces and sells ready-mixed concrete in six states, Washington D.C. and an immaterial amount in the Bahamas. In March 2017, we reentered the California ready-mixed concrete market through an acquisition and exited the Arizona market through a swap (see Note 19). In January 2015, we swapped our ready-mixed concrete operations in California (see Note 19) for asphalt mix operations, primarily in Arizona.

The Calcium segment consists of a Florida facility that mines, produces and sells calcium products.

Aggregates comprise approximately 95% of asphalt mix by weight and 80% of ready-mixed concrete by weight. Our Asphalt and Concrete segments are primarily 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 used in the production of asphalt mix and ready-mixed concrete. Customers for our Asphalt and Concrete segments are generally served locally at our production facilities or by truck. Because asphalt mix and ready-mixed concrete harden rapidly, delivery is time constrained and generally confined to a radius of approximately 20 to 25 miles from the producing facility.

The vast majority of our activities are domestic. We sell a relatively small amount of construction aggregates outside the United States. Total domestic revenues were $3,872,494,000 in 2017, $3,579,427,000 in 2016 and $3,410,773,000 in 2015. Nondomestic Aggregates segment revenues were $17,802,000 in 2017, $13,240,000 in 2016 and $11,408,000 in 2015; there were no significant nondomestic revenues in our Asphalt, Concrete or Calcium segments. Long-lived assets outside the United States, which consist primarily of property, plant & equipment, were $211,282,000 in 2017, $188,652,000 in 2016 and $160,125,000 in 2015. Equity method investments of $22,967,000 in 2017, $22,965,000 in 2016 and $22,967,000 in 2015 are included below in the identifiable assets for the Aggregates segment.

SEGMENT FINANCIAL DISCLOSURE



in thousands	2017	2016	2015
Total Revenues
Aggregates 1	$ 3,096,094	$ 2,961,835	$ 2,777,758
Asphalt	622,074	512,310	530,692
Concrete	417,745	330,125	299,252
Calcium	7,740	8,860	8,596
Segment sales	$ 4,143,653	$ 3,813,130	$ 3,616,298
Aggregates intersegment sales	(253,357)	(220,463)	(194,117)
Total revenues	$ 3,890,296	$ 3,592,667	$ 3,422,181
Gross Profit
Aggregates	$ 860,021	$ 873,118	$ 755,666
Asphalt	91,948	97,682	78,225
Concrete	46,117	26,543	20,152
Calcium	2,475	3,474	3,490
Total	$ 1,000,561	$ 1,000,817	$ 857,533
Depreciation, Depletion, Accretion and Amortization (DDA&A)
Aggregates	$ 245,151	$ 236,472	$ 228,466
Asphalt	25,400	16,797	16,378
Concrete	13,822	12,129	11,374
Calcium	677	774	679
Other	20,915	18,768	17,926
Total	$ 305,965	$ 284,940	$ 274,823
Capital Expenditures 2
Aggregates	$ 421,989	$ 297,737	$ 269,014
Asphalt	12,970	29,002	8,111
Concrete	25,176	10,047	19,053
Calcium	78	534	0
Corporate	4,020	7,621	7,846
Total	$ 464,233	$ 344,941	$ 304,024
Identifiable Assets 3
Aggregates	$ 8,409,505	$ 7,589,225	$ 7,540,273
Asphalt	426,575	259,514	251,716
Concrete	271,818	192,673	198,193
Calcium	4,428	4,959	5,509
Total identifiable assets	$ 9,112,326	$ 8,046,371	$ 7,995,691
General corporate assets	245,919	157,085	20,731
Cash and cash equivalents and restricted cash	146,646	268,019	285,210
Total assets	$ 9,504,891	$ 8,471,475	$ 8,301,632


1	Includes product sales, as well as freight, delivery and transportation revenues, and other revenues related to aggregates.
2	Capital expenditures include capitalized replacements of and additions to property, plant & equipment, including capitalized leases, renewals and betterments. Capital expenditures exclude property, plant & equipment obtained by business acquisitions.
3	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 as the related DDA&A is excluded from segment gross profit.