Business Segments

12 Months Ended

Dec. 31, 2012

Business Segments

Note O: Business Segments

The Corporation currently conducts its aggregates and vertically-integrated operations through three reportable business segments: Mideast Group, Southeast Group and West Group. The Corporation also has a Specialty Products segment that produces magnesia-based chemicals products and dolomitic lime. These segments are consistent with the Corporation’s management reporting structure as of December 31, 2012. The accounting policies used for segment reporting are the same as those described in Note A.

The Corporation’s evaluation of performance and allocation of resources are based primarily on earnings from operations. Earnings from operations are net sales less cost of sales, selling, general and administrative expenses, and business development costs; include other operating income and expenses; and exclude interest expense, other nonoperating income and expenses, net, and income taxes. Corporate earnings from operations primarily include depreciation on capitalized interest, expenses for corporate administrative functions, unallocated corporate expenses and other nonrecurring and/or non-operational adjustments excluded from the Corporation’s evaluation of business segment performance and resource allocation. All debt and related interest expense is held at Corporate.

Assets employed by segment include assets directly identified with those operations. Corporate assets consist primarily of cash and cash equivalents, property, plant and equipment for corporate operations and other assets not directly identifiable with a reportable business segment.

The following tables display selected financial data for the Corporation’s reportable business segments.

Selected Financial Data by Business Segment

    years ended December 31

    (add 000)

Total revenues	2012			2011			2010
Mideast Group	$	445,097		$	430,638		$	420,618
Southeast Group		304,524			306,436			336,351
West Group		1,067,333			757,548			702,657
Total Aggregates Business		1,816,954			1,494,622			1,459,626
Specialty Products		220,713			219,123			193,180
Total	$	2,037,667		$	1,713,745		$	1,652,806
Net sales
Mideast Group	$	406,651		$	395,470		$	390,581
Southeast Group		282,161			283,287			303,174
West Group		947,694			640,551			605,537
Total Aggregates Business		1,636,506			1,319,308			1,299,292
Specialty Products		202,217			200,575			176,346
Total	$	1,838,723		$	1,519,883		$	1,475,638
Gross profit (loss)
Mideast Group	$	108,876		$	104,204		$	109,865
Southeast Group		10,755			21,009			46,062
West Group		134,503			104,749			108,333
Total Aggregates Business		254,134			229,962			264,260
Specialty Products		77,223			75,405			61,685
Corporate		(5,441	)		(3,395	)		(4,294	)
Total	$	325,916		$	301,972		$	321,651
Selling, general and administrative expenses
Mideast Group	$	36,928		$	37,762		$	36,914
Southeast Group		22,832			26,873			27,709
West Group		56,664			43,879			42,861
Total Aggregates Business		116,424			108,514			107,484
Specialty Products		9,295			9,197			11,046
Corporate		12,679			6,427			11,892
Total	$	138,398		$	124,138		$	130,422
Earnings (Loss) from operations
Mideast Group	$	75,028		$	69,723		$	75,261
Southeast Group		(13,470	)		(5,884	)		17,924
West Group		81,975			63,592			75,330
Total Aggregates Business		143,533			127,431			168,515
Specialty Products		68,542			66,305			50,578
Corporate		(57,122	)		(32,757	)		(20,786	)
Total	$	154,953		$	160,979		$	198,307
Assets employed
Mideast Group	$	724,945		$	753,005		$	758,735
Southeast Group		652,567			663,321			836,695
West Group		1,413,838			1,389,746			1,102,798
Total Aggregates Business		2,791,350			2,806,072			2,698,228
Specialty Products		157,673			120,305			102,103
Corporate		211,903			221,445			274,412
Total	$	3,160,926		$	3,147,822		$	3,074,743
Depreciation, depletion and amortization
Mideast Group	$	44,189		$	46,668		$	50,524
Southeast Group		39,007			51,090			56,622
West Group		78,271			59,419			56,705
Total Aggregates Business		161,467			157,177			163,851
Specialty Products		7,838			7,075			8,385
Corporate		7,906			9,155			9,301
Total	$	177,211		$	173,407		$	181,537

years ended December 31     (add 000)     Total property additions	2012		2011		2010
Mideast Group	$	32,179	$	39,504	$	50,869
Southeast Group		29,541		29,531		54,138
West Group		47,233		243,195		58,819
Total Aggregates Business		108,953		312,230		163,826
Specialty Products		38,873		21,983		6,431
Corporate		3,887		6,340		1,823
Total	$	151,713	$	340,553	$	172,080
Property additions through acquisitions
Mideast Group	$	--	$	--	$	12,912
Southeast Group		--		--		20,902
West Group		--		40,229		--
Total Aggregates Business		--		40,229		33,814
Specialty Products		--		--		--
Corporate		--		--		--
Total	$	--	$	40,229	$	33,814

In 2012, the West Group acquired $690,000 of capital assets through noncash transactions. Property additions for the West Group in 2011 included $144,961,000 of capital assets acquired through an asset exchange with Lafarge North America Inc. Property additions for the Mideast Group in 2010 included $1,900,000 of land acquired through noncash transactions. Property additions for the Southeast Group in 2010 included $450,000 of land acquired through noncash transactions.

The Aggregates business includes the aggregates product line and the vertically-integrated operations, which includes asphalt, ready mixed concrete and road paving product lines. All vertically-integrated operations reside in the West Group. Product lines for the Specialty Products segment consist of magnesia-based chemicals, dolomitic lime and other. Total revenues, net sales and gross profit by product line are as follows:

    years ended December 31

    (add 000)

Total revenues	2012		2011		2010
Aggregates	$	1,470,953	$	1,372,243	$	1,365,729
Asphalt		93,288		63,942		51,055
Ready Mixed Concrete		116,328		33,075		25,067
Road Paving		136,385		25,362		17,775
Total Aggregates Business		1,816,954		1,494,622		1,459,626
Magnesia-Based Chemicals		158,752		158,255		132,891
Dolomitic Lime		60,280		59,496		58,630
Other		1,681		1,372		1,659
Total Specialty Products		220,713		219,123		193,180
Total	$	2,037,667	$	1,713,745	$	1,652,806
Net sales
Aggregates	$	1,303,975	$	1,213,635	$	1,218,569
Asphalt		79,816		47,315		37,917
Ready Mixed Concrete		116,320		32,990		25,031
Road Paving		136,395		25,368		17,775
Total Aggregates Business		1,636,506		1,319,308		1,299,292
Magnesia-Based Chemicals		142,922		142,620		120,475
Dolomitic Lime		57,614		56,582		54,212
Other		1,681		1,373		1,659
Total Specialty Products		202,217		200,575		176,346
Total	$	1,838,723	$	1,519,883	$	1,475,638

    years ended December 31

    (add 000)

Gross profit (loss)	2012			2011			2010
Aggregates	$	240,614		$	223,275		$	254,290
Asphalt		12,099			5,836			8,988
Ready Mixed Concrete		(1,159	)		(250	)		(508	)
Road Paving		2,580			1,101			1,490
Total Aggregates Business		254,134			229,962			264,260
Magnesia-Based Chemicals		54,508			50,726			39,821
Dolomitic Lime		22,316			24,548			24,041
Other		399			131			(2,177	)
Total Specialty Products		77,223			75,405			61,685
Corporate		(5,441	)		(3,395	)		(4,294	)
Total	$	325,916		$	301,972		$	321,651

Domestic and foreign total revenues are as follows:

  years ended December 31

(add 000)	2012		2011		2010
Domestic	$	1,996,142	$	1,671,999	$	1,618,715
Foreign		41,525		41,746		34,091
Total	$	2,037,667	$	1,713,745	$	1,652,806