Business Segments

12 Months Ended

Dec. 31, 2013

Business Segments

Note O: Business Segments

The Aggregates business is comprised of divisions which represent operating segments. Disclosures for certain divisions are consolidated as reportable segments for financial reporting purposes as they meet the aggregation criteria. The Aggregates business contains three reportable segments: Mid-America Group, Southeast Group and West Group. The Corporation also has a Specialty Products segment. 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. Consolidated earnings from operations equal 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 taxes on income. Corporate consolidated earnings from operations primarily include depreciation on capitalized interest, expenses for corporate administrative functions, business development costs, 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	2013			2012			2011
Mid-America Group	$	740,703		$	718,611		$	691,397
Southeast Group		245,340			243,442			242,581
West Group		924,691			849,135			560,515
Total Aggregates Business		1,910,734			1,811,188			1,494,493
Specialty Products		244,817			220,713			219,123
Total	$	2,155,551		$	2,031,901		$	1,713,616
Net sales
Mid-America Group	$	678,502		$	658,930		$	634,554
Southeast Group		226,437			226,232			224,728
West Group		812,638			745,578			459,897
Total Aggregates Business		1,717,577			1,630,740			1,319,179
Specialty Products		225,641			202,217			200,575
Total	$	1,943,218		$	1,832,957		$	1,519,754
Gross profit (loss)
Mid-America Group	$	191,765		$	180,069		$	171,746
Southeast Group		(3,515	)		(6,052	)		1,082
West Group		93,495			81,335			57,164
Total Aggregates Business		281,745			255,352			229,992
Specialty Products		83,703			77,223			75,405
Corporate		(1,491	)		(5,441	)		(3,395	)
Total	$	363,957		$	327,134		$	302,002
Selling, general and administrative expenses
Mid-America Group	$	49,962		$	53,003		$	54,599
Southeast Group		18,081			18,250			22,165
West Group		46,650			45,171			31,750
Total Aggregates Business		114,693			116,424			108,514
Specialty Products		10,165			9,295			9,197
Corporate		25,233			12,679			6,427
Total	$	150,091		$	138,398		$	124,138
Earnings (Loss) from operations
Mid-America Group	$	146,916		$	131,398		$	121,888
Southeast Group		(19,850	)		(25,495	)		(21,210	)
West Group		50,503			38,847			26,783
Total Aggregates Business		177,569			144,750			127,461
Specialty Products		73,507			68,542			66,305
Corporate		(33,088	)		(57,122	)		(32,757	)
Total	$	217,988		$	156,170		$	161,009
Assets employed
Mid-America Group	$	1,139,198		$	1,036,155		$	1,062,209
Southeast Group		611,906			607,705			624,476
West Group		1,133,795			1,147,879			1,119,563
Total Aggregates Business		2,884,899			2,791,739			2,806,248
Specialty Products		154,024			157,673			120,305
Corporate		220,903			211,514			221,269
Total	$	3,259,826		$	3,160,926		$	3,147,822
Depreciation, depletion and amortization
Mid-America Group	$	61,414		$	65,515		$	63,886
Southeast Group		32,556			35,026			51,090
West Group		60,971			60,926			42,201
Total Aggregates Business		154,941			161,467			157,177
Specialty Products		10,564			7,838			7,075
Corporate		8,256			7,906			9,155
Total	$	173,761		$	177,211		$	173,407

years ended December 31     (add 000)     Total property additions	2013		2012		2011
Mid-America Group	$	82,061	$	46,861	$	52,642
Southeast Group		72,907		22,594		29,531
West Group		54,136		39,498		230,057
Total Aggregates Business		209,104		108,953		312,230
Specialty Products		4,700		38,873		21,983
Corporate		6,477		3,887		6,340
Total	$	220,281	$	151,713	$	340,553
Property additions through acquisitions
Mid-America Group	$	244	$	--	$	--
Southeast Group		54,463		--		--
West Group		--		690		185,190
Total Aggregates Business		54,707		690		185,190
Specialty Products		--		--		--
Corporate		--		--		--
Total	$	54,707	$	690	$	185,190

Of the total property additions through acquisitions for the West Group in 2011, $144,961,000 related to capital assets acquired through an asset exchange with Lafarge North America Inc.

In 2013, the Mid-America and West Groups acquired machinery and equipment of $1,191,000 and $9,150,000, respectively, through capital leases.

The Aggregates business includes the aggregates product line and vertically-integrated operations, which include the asphalt, ready mixed concrete and road paving product lines. All vertically-integrated operations reside in the West Group. Total revenues, net sales and gross profit by product line for the Aggregates business, which are reconciled to consolidated amounts, are as follows:

    years ended December 31

    (add 000)

Total revenues	2013		2012		2011
Aggregates	$	1,527,986	$	1,470,953	$	1,372,243
Asphalt		78,863		93,288		63,942
Ready Mixed Concrete		146,085		110,562		32,946
Road Paving		157,800		136,385		25,362
Total Aggregates Business		1,910,734		1,811,188		1,494,493
Specialty Products		244,817		220,713		219,123
Total	$	2,155,551	$	2,031,901	$	1,713,616
Net sales
Aggregates	$	1,347,486	$	1,303,975	$	1,213,635
Asphalt		66,216		79,816		47,315
Ready Mixed Concrete		146,079		110,554		32,861
Road Paving		157,796		136,395		25,368
Total Aggregates Business		1,717,577		1,630,740		1,319,179
Specialty Products		225,641		202,217		200,575
Total	$	1,943,218	$	1,832,957	$	1,519,754

    years ended December 31

    (add 000)

Gross profit (loss)	2013			2012			2011
Aggregates	$	259,054		$	240,614		$	223,275
Asphalt		12,928			12,099			5,836
Ready Mixed Concrete		8,337			59			(220	)
Road Paving		1,426			2,580			1,101
Total Aggregates Business		281,745			255,352			229,992
Total Specialty Products		83,703			77,223			75,405
Corporate		(1,491	)		(5,441	)		(3,395	)
Total	$	363,957		$	327,134		$	302,002

Domestic and foreign total revenues are as follows:

  years ended December 31

(add 000)	2013		2012		2011
Domestic	$	2,113,068	$	1,987,228	$	1,669,896
Foreign		42,483		44,673		43,720
Total	$	2,155,551	$	2,031,901	$	1,713,616