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. During 2018, the Aggregates segment principally served markets in twenty states, Washington D.C., Mexico and the Bahamas with a full line of aggregates, and nine 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 six states: Alabama, Arizona, California, New Mexico, Tennessee and Texas, and includes asphalt construction paving in three states: Alabama, Tennessee and Texas. We entered the Alabama and Tennessee asphalt markets in 2018 and 2017, respectively, through acquisitions (see Note 19).

The Concrete segment produces and sells ready-mixed concrete in five states, Washington D.C. and an immaterial amount in the Bahamas. In 2018, we exited the Georgia ready-mixed concrete market through a divestiture (see Note 19). In 2017, we reentered the California ready-mixed concrete market through an acquisition and exited the Arizona market through a swap (see Note 19).

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 $4,365,309,000 in 2018, $3,872,494,000 in 2017 and $3,579,427,000 in 2016. Nondomestic Aggregates segment revenues were $17,560,000 in 2018, $17,802,000 in 2017 and $13,240,000 in 2016; 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 $278,520,000 in 2018, $211,282,000 in 2017 and $188,652,000 in 2016. Equity method investments of $39,395,000 in 2018, $22,967,000 in 2017 and $22,965,000 in 2016 are included below in the identifiable assets for the Aggregates segment and in investments and long-term receivables on the accompanying Consolidated Balance Sheets.

SEGMENT FINANCIAL DISCLOSURE



in thousands	2018	2017	2016
Total Revenues
Aggregates 1	$ 3,513,649	$ 3,096,094	$ 2,961,835
Asphalt 2	733,182	622,074	512,310
Concrete	401,999	417,745	330,125
Calcium	8,110	7,740	8,860
Segment sales	$ 4,656,940	$ 4,143,653	$ 3,813,130
Aggregates intersegment sales	(274,071)	(253,357)	(220,463)
Total revenues	$ 4,382,869	$ 3,890,296	$ 3,592,667
Gross Profit
Aggregates 3	$ 991,858	$ 854,524	$ 863,811
Asphalt 3	56,480	91,313	96,608
Concrete 3	49,893	45,201	24,992
Calcium	2,714	2,475	3,474
Total	$ 1,100,945	$ 993,513	$ 988,885
Depreciation, Depletion, Accretion and Amortization (DDA&A)
Aggregates	$ 281,641	$ 245,151	$ 236,472
Asphalt	31,290	25,400	16,797
Concrete	12,539	13,822	12,129
Calcium	272	677	774
Other	20,504	20,915	18,768
Total	$ 346,246	$ 305,965	$ 284,940
Capital Expenditures 4
Aggregates	$ 422,175	$ 421,989	$ 297,737
Asphalt	38,154	12,970	29,002
Concrete	12,291	25,176	10,047
Calcium	22	78	534
Corporate	2,587	4,020	7,621
Total	$ 475,229	$ 464,233	$ 344,941
Identifiable Assets 5
Aggregates	$ 8,887,749	$ 8,409,505	$ 7,589,225
Asphalt	527,226	426,575	259,514
Concrete	266,581	271,818	192,673
Calcium	3,942	4,428	4,959
Total identifiable assets	$ 9,685,498	$ 9,112,326	$ 8,046,371
General corporate assets	102,228	245,919	157,085
Cash and cash equivalents and restricted cash	44,404	146,646	268,019
Total assets	$ 9,832,130	$ 9,504,891	$ 8,471,475


1	Includes product sales, as well as freight & delivery costs that we pass along to our customers, and service revenues (see Note 2) related to aggregates.
2	Includes product sales, as well as service revenues (see Note 2) from our asphalt construction paving business.
3	The 2017 and 2016 amounts have been revised as a result of our adoption of ASU 2017-07 as described in Note 1 under the captions New Accounting Standards and Accounting Standards Recently Adopted.
4	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.
5	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.