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Business Segments
12 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
Business Segments

(G) Business Segments

Operating segments are defined as components of an enterprise that engage in business activities that earn revenues, incur expenses and prepare separate financial information that is evaluated regularly by our chief operating decision maker in order to allocate resources and assess performance.

We operate in four business segments: Cement, Gypsum Wallboard, Recycled Paperboard, and Concrete and Aggregates, with Gypsum Wallboard and Cement being our principal lines of business. These operations are conducted in the U.S. and include the mining of limestone and the manufacture, production, distribution and sale of portland cement (a basic construction material which is the essential binding ingredient in concrete), the mining of gypsum and the manufacture and sale of gypsum wallboard, the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters, the sale of readymix concrete and the mining and sale of aggregates (crushed stone, sand, gravel and frac sand). These products are used primarily in commercial and residential construction, public construction projects and projects to build, expand and repair roads and highways and in oil and natural gas extraction.

As further discussed below, we operate six cement plants, sixteen cement distribution terminals, five gypsum wallboard plants, including the plant temporarily idled in Bernalillo, N.M., a gypsum wallboard distribution center, a recycled paperboard mill, seventeen readymix concrete batch plant locations, four aggregates processing plant locations and a frac sand drying and screening plant. The principal markets for our cement products are Texas, northern Illinois (including Chicago), the central plains, the Rocky Mountains, northern Nevada, and northern California. Gypsum wallboard and recycled paperboard are distributed throughout the continental U.S, with the exception of the northeast. Concrete and aggregates are sold to local readymix producers and paving contractors in the Austin, Texas area, north of Sacramento, California and the greater Kansas City, Missouri area, while frac sand is currently sold in Texas.

 

We conduct one of our six cement plant operations, Texas Lehigh Cement Company LP in Buda, Texas, through a Joint Venture. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture’s revenues and operating earnings, which is consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

We account for intersegment sales at market prices. The following table sets forth certain financial information relating to our operations by segment:

 

     For the Years Ended March 31,  
     2014     2013     2012  
     (dollars in thousands)  

Revenues -

      

Cement

   $ 438,224      $ 304,125      $ 243,978   

Gypsum Wallboard

     387,016        306,529        217,633   

Paperboard

     130,178        121,930        118,794   

Concrete and Aggregates

     116,465        56,287        45,515   
  

 

 

   

 

 

   

 

 

 
     1,071,883        788,871        625,920   

Less: Intersegment Revenues

     (62,094     (49,987     (44,757

Less: Joint Venture Revenues

     (111,393     (96,322     (86,140
  

 

 

   

 

 

   

 

 

 
   $ 898,396      $ 642,562      $ 495,023   
  

 

 

   

 

 

   

 

 

 

 

     For the Years Ended March 31,  
     2014      2013      2012  
     (dollars in thousands)  

Intersegment Revenues -

        

Cement

   $ 8,952       $ 2,850       $ 3,605   

Paperboard

     52,119         46,393         40,485   

Concrete and Aggregates

     1,023         744         667   
  

 

 

    

 

 

    

 

 

 
   $ 62,094       $ 49,987       $ 44,757   
  

 

 

    

 

 

    

 

 

 

Cement Sales Volumes (M tons) -

        

Wholly-Owned

     3,580         2,390         1,857   

Joint Venture

     1,013         913         866   
  

 

 

    

 

 

    

 

 

 
     4,593         3,303         2,723   
  

 

 

    

 

 

    

 

 

 

 

     For the Years Ended March 31,  
     2014     2013     2012  
     (dollars in thousands)  

Operating Earnings -

  

Cement

   $ 89,486      $ 46,228      $ 46,850   

Gypsum Wallboard

     114,852        69,712        6,264   

Paperboard

     23,610        25,200        16,988   

Concrete and Aggregates

     (4,678     (5,388     (1,097

Other, net

     1,368        (1,232     356   
  

 

 

   

 

 

   

 

 

 

Sub-Total

     224,638        134,520        69,361   

Corporate General and Administrative

     (24,552     (23,918     (19,617

Other Corporate Charges

     —          (10,683     (9,117
  

 

 

   

 

 

   

 

 

 

Earnings Before Interest and Income Taxes

     200,086        99,919        40,627   

Loss on Debt Retirement

     —          —          (2,094

Interest Expense, net

     (18,282     (15,823     (16,621
  

 

 

   

 

 

   

 

 

 

Earnings Before Income Taxes

   $ 181,804      $ 84,096      $ 21,912   
  

 

 

   

 

 

   

 

 

 

Cement Operating Earnings -

      

Wholly-Owned

   $ 51,675      $ 13,721      $ 18,322   

Joint Ventures

     37,811        32,507        28,528   
  

 

 

   

 

 

   

 

 

 
   $ 89,486      $ 46,228      $ 46,850   
  

 

 

   

 

 

   

 

 

 

Capital Expenditures -

      

Cement

   $ 12,226      $ 15,583      $ 7,753   

Gypsum Wallboard

     4,825        2,682        3,357   

Paperboard

     3,354        804        919   

Aggregates

     34,719        33,829        13,639   

Concrete

     4,117        103        321   

Other, net

     249        10        110   
  

 

 

   

 

 

   

 

 

 
   $ 59,490      $ 53,011      $ 26,099   
  

 

 

   

 

 

   

 

 

 

Depreciation, Depletion and Amortization -

      

Cement

   $ 31,829      $ 20,658      $ 15,373   

Gypsum Wallboard

     20,981        21,045        20,903   

Paperboard

     8,716        8,824        8,595   

Aggregates

     5,119        3,820        3,365   

Concrete

     1,793        1,392        1,022   

Corporate and Other

     1,583        1,111        866   
  

 

 

   

 

 

   

 

 

 
   $ 70,021      $ 56,850      $ 50,124   
  

 

 

   

 

 

   

 

 

 
     As of March 31,  
     2014     2013     2012  
     (dollars in thousands)  

Identifiable Assets

      

Cement

   $ 762,578      $ 756,158      $ 313,559   

Gypsum Wallboard

     412,566        425,866        434,967   

Paperboard

     125,045        129,226        137,483   

Aggregates

     152,728        108,796        49,009   

Concrete

     26,835        27,187        12,031   

Other, net

     31,777        29,000        38,096   
  

 

 

   

 

 

   

 

 

 
   $ 1,511,529      $ 1,476,233      $ 985,145   
  

 

 

   

 

 

   

 

 

 

Segment operating earnings, including the proportionately consolidated 50% interest in the revenues and expenses of the Joint Venture, represent revenues less direct operating expenses, segment depreciation, and segment selling, general and administrative expenses. We account for intersegment sales at market prices. Corporate assets consist primarily of cash and cash equivalents, general office assets and miscellaneous other assets.

 

The basis used to disclose Identifiable Assets, Capital Expenditures and Depreciation, Depletion conforms with the equity method, and is similar to how we disclose these accounts in our Consolidated Balance Sheets and Consolidated Statements of Earnings.

The segment breakdown of goodwill at March 31, 2014 and 2013 is as follows:

 

     For the Years Ended
March 31,
 
     2014      2013  
     (dollars in thousands)  

Cement

   $ 8,359       $ 8,359   

Gypsum Wallboard

     116,618         116,618   

Paperboard

     7,538         7,538   
  

 

 

    

 

 

 
   $ 132,515       $ 132,515   
  

 

 

    

 

 

 

During fiscal 2012, we provided approximately $12.0 million to our Joint Venture for its capital needs, which has been offset against distributions received from the Joint Venture during fiscal 2012 on the Consolidated Statement of Cash Flows.