The following tables, which are reconciled to consolidated amounts, provide total revenues and gross profit (loss) by line of business: Building Materials (further divided by product line) and Magnesia Specialties. Interproduct revenues represent sales from the aggregates product line to the ready mixed concrete and asphalt and paving product lines. Effective January 1, 2024, the Company combined the cement and ready mixed concrete product lines. This change was driven by the reduced significance of each of these product lines relative to the Building Materials business and consolidated operating results from recent divestitures. Additionally, there is a significant relationship between these product lines, as the ready mixed concrete product line is a significant customer of the cement product line. Total revenues and gross profit (loss) reflect continuing operations only.


	Three Months Ended
	March 31,
	2024			2023
	(Dollars in Millions)
Total revenues:
Building Materials business:
Aggregates	$	885		$	912
Cement and ready mixed concrete		265			340
Asphalt and paving services		59			58
Less: interproduct revenues		(39	)		(39	)
Total Building Materials business		1,170			1,271
Magnesia Specialties		81			83
Total	$	1,251		$	1,354

Gross profit (loss):
Building Materials business:
Aggregates	$	239		$	238
Cement and ready mixed concrete		31			58
Asphalt and paving services		(22	)		(20	)
Total Building Materials business		248			276
Magnesia Specialties		29			25
Corporate		(5	)		2
Total		272			303

The above information for 2023 has been reclassified to conform to current-year presentation. For the quarter ended March 31, 2023, the cement product line reported total revenues of $169 million, inclusive of $49 million to the ready mixed concrete product line, and gross profit of $47 million. For the quarter ended March 31, 2023, the ready mixed concrete product line reported total revenues of $220 million and gross profit of $11 million. Revenues from sales of cement to the ready mixed concrete product line were previously eliminated in the interproduct revenues line.

Performance Obligations. Performance obligations are contractual promises to transfer or provide a distinct good or service for a stated price. The Company’s product sales agreements are single-performance obligations that are satisfied at a point in time. Performance obligations within paving service agreements are satisfied over time, primarily ranging from one day to two years. Customer payments for the paving operations are based on a contractual billing schedule and are typically paid-when-paid.

Future revenues from unsatisfied performance obligations at March 31, 2024 and 2023 were $246 million and $241 million, respectively, where the remaining periods to complete these obligations ranged from one month to 21 months and one month to 30 months, respectively.

Service Revenues. Service revenues, which include paving services located in California and Colorado, were $26 million for each of the three month periods ended March 31, 2024 and 2023, and are reported in the West Group.

Contract Balances. Costs in excess of billings relate to the conditional right to consideration for completed contractual performance and are contract assets on the consolidated balance sheets. Costs in excess of billings are reclassified to accounts receivable when the right to consideration becomes unconditional. Billings in excess of costs relate to customers invoiced in advance of contractual performance and are contract liabilities on the consolidated balance sheets. The following table presents information about the Company’s contract balances:

Revenues recognized from the beginning balance of contract liabilities for the three months ended March 31, 2024 and 2023 were $4 million and $5 million, respectively.

Retainage, which primarily relates to the paving services, represents amounts that have been billed to customers but payment is withheld until final acceptance of the performance obligation by the customer. Retainage, which is included in Other current assets on the Company’s consolidated balance sheets, was $11 million and $17 million at March 31, 2024 and December 31, 2023, respectively.