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SEGMENT REPORTING
12 Months Ended
Dec. 31, 2019
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING 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 these 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 2019, the Aggregates segment principally served markets in twenty states, Washington D.C., Mexico and the Bahamas with a full line of aggregates, and eight 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: California, Maryland, New Mexico, Texas and Virginia, in addition to 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 $4,912,972,000 in 2019, $4,365,309,000 in 2018 and $3,872,494,000 in 2017. Nondomestic Aggregates segment revenues were $16,131,000 in 2019, $17,560,000 in 2018 and $17,802,000 in 2017; 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 $274,439,000 in 2019, $278,520,000 in 2018 and $211,282,000 in 2017. Equity method investments of $50,587,000 in 2019, $39,395,000 in 2018 and $22,967,000 in 2017 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

2019

2018

2017

Total Revenues

Aggregates 1

$      3,990,275 

$    3,513,649 

$    3,096,094 

Asphalt 2

855,821 

733,182 

622,074 

Concrete

395,627 

401,999 

417,745 

Calcium

8,191 

8,110 

7,740 

Segment sales

$      5,249,914 

$    4,656,940 

$    4,143,653 

Aggregates intersegment sales

(320,811)

(274,071)

(253,357)

Total revenues

$      4,929,103 

$    4,382,869 

$    3,890,296 

Gross Profit

Aggregates

$      1,146,649 

$       991,858 

$       854,524 

Asphalt

63,023 

56,480 

91,313 

Concrete

43,151 

49,893 

45,201 

Calcium

3,078 

2,714 

2,475 

Total

$      1,255,901 

$    1,100,945 

$       993,513 

Depreciation, Depletion, Accretion and Amortization (DDA&A)

Aggregates

$         305,046 

$       281,641 

$       245,151 

Asphalt

35,199 

31,290 

25,400 

Concrete

13,620 

12,539 

13,822 

Calcium

232 

272 

677 

Other

20,499 

20,504 

20,915 

Total

$         374,596 

$       346,246 

$       305,965 

Capital Expenditures 3

Aggregates

$         383,406 

$       422,175 

$       421,989 

Asphalt

9,095 

38,154 

12,970 

Concrete

11,641 

12,291 

25,176 

Calcium

31 

22 

78 

Corporate

175 

2,587 

4,020 

Total

$         404,348 

$       475,229 

$       464,233 

Identifiable Assets 4

Aggregates

$      9,334,218 

$    8,887,749 

$    8,409,505 

Asphalt

558,386 

527,226 

426,575 

Concrete

325,102 

266,581 

271,818 

Calcium

3,653 

3,942 

4,428 

Total identifiable assets

$    10,221,359 

$    9,685,498 

$    9,112,326 

General corporate assets

152,928 

102,228 

245,919 

Cash and cash equivalents and restricted cash

274,506 

44,404 

146,646 

Total assets

$    10,648,793 

$    9,832,130 

$    9,504,891 

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

Capital expenditures include capitalized replacements of and additions to property, plant & equipment, including renewals and betterments. Capital expenditures exclude property, plant & equipment obtained by business acquisitions.

4

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.

 

 

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