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Business Combinations And Discontinued Operations
9 Months Ended
Sep. 30, 2011
Business Combinations And Discontinued Operations 
Business Combinations and Discontinued Operations
2. Business Combinations and Discontinued Operations

Business Combinations

In May 2011, the Corporation purchased the remaining 1% interest in an existing limited liability company for $10,394,000. The purchase of the remaining interest represents an equity transaction. Accordingly, the assets and liabilities related to the noncontrolling interest continued to be valued at their basis at the transaction date; the noncontrolling interest of $3,439,000 was eliminated; additional paid-in capital was reduced by $3,737,000 for the excess of the cash paid, including transaction costs, over the noncontrolling interest at the acquisition date; and a deferred tax asset of $3,218,000 was recorded. The purchase price and the payment of transaction costs have been classified as a financing activity in the Corporation's consolidated statement of cash flows for the nine months ended September 30, 2011.

In June 2011, the Corporation acquired the construction assets of six aggregates quarries, two ready mixed concrete plants and an asphalt plant, all of which are located in western San Antonio, Texas. The operating results of the acquired locations are reported through the Corporation's West Group in the financial statements starting from the date of acquisition. This transaction provides over 200 million tons of high-quality limestone reserves and complements the Corporation's existing integrated presence in this high-growth market.

On October 12, 2011, the Corporation announced that it signed a definitive agreement with Lafarge North America Inc. ("Lafarge") for the exchange of certain assets. Under the terms of the agreement, the Corporation will receive aggregates quarry sites, ready mixed concrete and asphalt plants, and a road paving business in the metropolitan Denver, Colorado, region. In exchange, Lafarge will receive properties consisting of quarries, an asphalt plant and distribution yards operated by the Corporation along the Mississippi River and a cash payment. The transaction is anticipated to close within 60 days, subject to regulatory approval.

Divestitures and Permanent Closures

Operations that are disposed of or permanently shut down represent discontinued operations, and, therefore, the results of their operations through the dates of disposal and any gain or loss on disposals are included in discontinued operations in the consolidated statements of earnings. All discontinued operations relate to the Aggregates business.

 

Discontinued operations included the following net sales, pretax gain or loss on operations, income tax benefit or expense and overall net earnings:

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
         2011              2010              2011              2010      
     (Dollars in Thousands)  

Net sales

         $ 27                   $ 44                   $ 94                   $ 102         
  

 

 

    

 

 

    

 

 

    

 

 

 

Pretax gain (loss) on operations

         $ 385                   $ (15)                   $ 312                   $ 147         

Income tax expense (benefit)

     138               (37)               121               12         
  

 

 

    

 

 

    

 

 

    

 

 

 

Net earnings

         $ 247                   $ 22                    $ 191                   $ 135