Business Segments

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

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 Cement and Magnesia Specialties businesses also represent individual operating and reportable segments. 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 include net sales less cost of sales, selling, general and administrative expenses, and acquisition-related expenses, net; 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, acquisition-related expenses, net, and other nonrecurring and/or non-operational income and expenses 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, investments 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	2015		2014		2013
Mid-America Group	$	926,251	$	848,855	$	789,806
Southeast Group		304,472		274,352		245,340
West Group		1,675,021		1,356,283		875,588
Total Aggregates Business		2,905,744		2,479,490		1,910,734
Cement		387,947		221,759		—
Magnesia Specialties		245,879		256,702		244,817
Total	$	3,539,570	$	2,957,951	$	2,155,551

Net sales
Mid-America Group	$	851,854	$	770,568	$	720,007
Southeast Group		285,302		254,986		226,437
West Group		1,535,848		1,207,879		771,133
Total Aggregates Business		2,673,004		2,233,433		1,717,577
Cement		367,604		209,556		—
Magnesia Specialties		227,508		236,106		225,641
Total	$	3,268,116	$	2,679,095	$	1,943,218

Gross profit (loss)
Mid-America Group	$	256,586		$	216,883	$	192,747
Southeast Group		34,197			10,653		(3,515	)
West Group		254,946			155,678		92,513
Total Aggregates Business		545,729			383,214		281,745
Cement		103,473			52,469		—
Magnesia Specialties		78,732			84,594		83,703
Corporate		(6,167	)		2,083		(1,491	)
Total	$	721,767		$	522,360	$	363,957

years ended December 31 (add 000) Selling, general and administrative expenses	2015		2014		2013
Mid-America Group	$	52,606	$	52,217	$	53,683
Southeast Group		18,467		17,788		18,081
West Group		66,639		50,147		42,929
Total Aggregates Business		137,712		120,152		114,693
Cement		26,626		12,741		—
Magnesia Specialties		9,499		9,776		10,165
Corporate		44,397		26,576		25,233
Total	$	218,234	$	169,245	$	150,091

Earnings (Loss) from operations
Mid-America Group	$	206,820		$	172,208		$	144,269
Southeast Group		16,435			(5,293	)		(19,849	)
West Group		205,699			153,182			53,150
Total Aggregates Business		428,954			320,097			177,570
Cement		47,821			40,751			—
Magnesia Specialties		68,886			74,805			73,506
Corporate		(66,245	)		(120,780	)		(33,088	)
Total	$	479,416		$	314,873		$	217,988

Cement intersegment sales, which were to the ready mixed concrete product line in the West Group, were $87,782,000 for the year ended December 31, 2015 and $43,356,000 for the six months ended December 31, 2014.  The Cement business was acquired July 1, 2014.

years ended December 31 (add 000) Assets employed	2015		2014		2013
Mid-America Group	$	1,304,574	$	1,290,833	$	1,242,395
Southeast Group		583,369		604,044		611,906
West Group		2,621,636		2,444,400		1,030,599
Total Aggregates Business		4,509,579		4,339,277		2,884,900
Cement		1,939,796		2,451,799		—
Magnesia Specialties		147,795		150,359		154,024
Corporate		364,562		278,319		146,081
Total	$	6,961,732	$	7,219,754	$	3,185,005

Depreciation, depletion and amortization
Mid-America Group	$	61,693	$	63,294	$	66,381
Southeast Group		31,644		31,955		32,556
West Group		93,947		74,283		56,004
Total Aggregates Business		187,284		169,532		154,941
Cement		53,672		30,620		—
Magnesia Specialties		13,769		10,394		10,564
Corporate		8,862		12,200		8,256
Total	$	263,587	$	222,746	$	173,761

years ended December 31 (add 000) Total property additions	2015		2014		2013
Mid-America Group	$	77,640	$	76,753	$	82,667
Southeast Group		12,155		23,326		72,907
West Group		235,245		753,342		53,530
Total Aggregates Business		325,040		853,421		209,104
Cement		9,599		975,063		—
Magnesia Specialties		8,916		2,588		4,700
Corporate		20,561		15,349		6,477
Total	$	364,116	$	1,846,421	$	220,281

Property additions through acquisitions
Mid-America Group	$	4,385	$	—	$	244
Southeast Group		—		—		54,463
West Group		35,965		632,560		—
Total Aggregates Business		40,350		632,560		54,707
Cement		—		970,300		—
Magnesia Specialties		—		—		—
Corporate		—		—		—
Total	$	40,350	$	1,602,860	$	54,707

Total property additions in the West Group include machinery and equipment of $1,445,000, $7,788,000 and $10,341,000 in 2015, 2014 and 2013 respectively, acquired through capital leases.  In 2015, total property additions in Corporate include a $4,088,000 noncash component related to a property addition.  The Corporation also acquired $3,591,000 of land via noncash transactions and asset exchanges in 2014. Total property additions through acquisitions in the Mid-America Group reflect $4,385,000 of property, plant and equipment acquired via an asset exchange in 2015.

The Aggregates business includes the aggregates product line and aggregates-related downstream product lines, which include the asphalt, ready mixed concrete and road paving product lines. All aggregates-related downstream product lines reside in the West Group. The following tables, which are reconciled to consolidated amounts, provide total revenues, net sales and gross profit by line of business: Aggregates (further divided by product line), Cement and Magnesia Specialties.

years ended December 31 (add 000) Total revenues	2015			2014		2013
Aggregates	$	2,017,761		$	1,805,824	$	1,527,986
Asphalt		72,282			85,822		78,863
Ready Mixed Concrete		657,088			431,229		146,085
Road Paving		158,613			156,615		157,800
Total Aggregates Business		2,905,744			2,479,490		1,910,734
Cement		387,947			221,759		—
Magnesia Specialties		245,879			256,702		244,817
Total	$	3,539,570		$	2,957,951	$	2,155,551
Net sales
Aggregates	$	1,793,660		$	1,570,022	$	1,347,486
Asphalt		64,943			76,278		66,216
Ready Mixed Concrete		655,788			430,519		146,079
Road Paving		158,613			156,614		157,796
Total Aggregates Business		2,673,004			2,233,433		1,717,577
Cement		367,604			209,556		—
Magnesia Specialties		227,508			236,106		225,641
Total	$	3,268,116		$	2,679,095	$	1,943,218
Gross profit (loss)	2015			2014		2013
Aggregates	$	467,053		$	324,093	$	259,054
Asphalt		18,189			13,552		12,928
Ready Mixed Concrete		42,942			39,129		8,337
Road Paving		17,545			6,440		1,426
Total Aggregates Business		545,729			383,214		281,745
Cement		103,473			52,469		—
Magnesia Specialties		78,732			84,594		83,703
Corporate		(6,167	)		2,083		(1,491	)
Total	$	721,767		$	522,360	$	363,957

Domestic and foreign total revenues are as follows:

years ended December 31 (add 000)	2015		2014		2013
Domestic	$	3,493,462	$	2,912,115	$	2,113,068
Foreign		46,108		45,836		42,483
Total	$	3,539,570	$	2,957,951	$	2,155,551