SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2019

Our two reportable segments consist of ready-mixed concrete and aggregate products, as described below.

Our ready-mixed concrete segment produces and sells ready-mixed concrete. This segment serves the following markets: Texas, Northern California, New York City, New Jersey, Philadelphia, Washington, D.C., Oklahoma and the U.S. Virgin Islands. Our aggregate products segment includes crushed stone, sand and gravel products and serves the markets in which our ready-mixed concrete segment operates as well as the West Coast and Hawaii. Other products not associated with a reportable segment include our aggregates distribution operations, building materials stores, hauling operations, lime slurry (until we divested it on September 5, 2018), ARIDUS^® Rapid Drying Concrete technology, brokered product sales and a recycled aggregates operation.

Our customers are generally involved in the construction industry, which is a cyclical business and is subject to general and more localized economic conditions. In addition, our business is impacted by seasonal variations in weather conditions, which vary by regional market. Accordingly, demand for our products and services during the winter months is typically lower than in other months of the year because of inclement weather. Also, sustained periods of inclement weather and other adverse weather conditions could cause the delay of construction projects during other times of the year.

Our chief operating decision maker evaluates segment performance and allocates resources based on Adjusted EBITDA. We define Adjusted EBITDA as our income from continuing operations, excluding the impact of income tax expense (benefit), depreciation, depletion and amortization, net interest expense and certain other non-cash, non-recurring and/or unusual, non-operating items including, but not limited to: non-cash stock compensation expense, non-cash change in value of contingent consideration, impairment of assets, acquisition-related costs, officer transition expenses, an eminent domain matter, and hurricane-related gains/losses, net. Acquisition-related costs include fees and expenses for accountants, lawyers and other professionals incurred during the negotiation and closing of strategic acquisitions and certain acquired entities' management severance costs. Acquisition-related costs do not include fees or expenses associated with post-closing integration of strategic acquisitions. Many of the impacts excluded to derive Adjusted EBITDA are similar to those excluded in calculating our compliance with our debt covenants.

We consider Adjusted EBITDA to be an indicator of the operational strength and performance of our business. We have included Adjusted EBITDA because it is a key financial measure used by our management to (1) internally measure our operating performance and (2) assess our ability to service our debt, incur additional debt, and meet our capital expenditure requirements.

Adjusted EBITDA should not be construed as an alternative to, or a better indicator of, operating income or loss, is not based on U.S. GAAP, and is not a measure of our cash flows or ability to fund our cash needs. Our measurements of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies, and may not be comparable to similarly titled measures used in the agreements governing our debt.

We generally account for inter-segment sales at market prices. Corporate includes executive, administrative, financial, legal, human resources, business development and risk management activities that are not allocated to reportable segments and are excluded from segment Adjusted EBITDA. Eliminations include transactions to account for intercompany activity.

The following tables set forth certain financial information relating to our continuing operations by reportable segment ($ in millions):



	2019			2018			2017
Revenue:
Ready-mixed concrete
Sales to external customers	$	1,278.6		$	1,306.5		$	1,213.0
Aggregate products
Sales to external customers	141.7			136.5			49.8
Intersegment sales	53.5			46.1			40.9
Total aggregate products	195.2			182.6			90.7
Total reportable segment revenue	1,473.8			1,489.1			1,303.7
Other products and eliminations	4.9			17.3			32.3
Total revenue	$	1,478.7		$	1,506.4		$	1,336.0

Reportable Segment Adjusted EBITDA:
Ready-mixed concrete	$	157.7		$	179.2		$	185.8
Aggregate products	53.8			41.6			27.2
Total reportable segment Adjusted EBITDA	$	211.5		$	220.8		$	213.0

Reconciliation of Total Reportable Segment Adjusted EBITDA to Income From Continuing Operations:
Total reportable segment Adjusted EBITDA	$	211.5		$	220.8		$	213.0
Other products and eliminations income from operations	3.3			21.7			10.8
Corporate overhead	(59.5		)	(54.9		)	(56.3		)
Depreciation, depletion and amortization for reportable segments	(86.1		)	(85.8		)	(63.1		)
Interest expense, net	(46.1		)	(46.4		)	(42.1		)
Eminent domain matter	5.3			(0.7		)	—
Hurricane-related gains (losses) for reportable segments, net	2.1			0.8			(3.0		)
Change in value of contingent consideration for reportable segments	(2.8		)	—			(7.9		)
Loss on mixer truck fire	(0.7		)	—			—
Litigation settlement costs	(0.3		)	(2.1		)	—
Acquisition-related costs, net	1.0			(1.4		)	—
Impairment of goodwill and other assets	—			(1.3		)	(6.2		)
Quarry dredge costs for specific event for reportable segments	—			(1.1		)	(3.4		)
Purchase accounting adjustments for inventory	—			(0.8		)	(1.3		)
Corporate derivative loss	—			—			(0.8		)
Corporate, other products and eliminations other loss (income), net	0.9			(0.7		)	(1.1		)
Income from continuing operations before income taxes	28.6			48.1			38.6
Income tax expense	12.3			16.8			12.4
Income from continuing operations	$	16.3		$	31.3		$	26.2



	2019		2018		2017
Capital Expenditures:
Ready-mixed concrete	$	18.0	$	24.0	$	21.7
Aggregate products	23.6		13.8		18.9
Other products and corporate	1.1		2.1		2.1
Total capital expenditures	$	42.7	$	39.9	$	42.7



	2019		2018		2017
Revenue by Product:
Ready-mixed concrete	$	1,278.6	$	1,306.5	$	1,213.0
Aggregate products	141.7		136.5		49.8
Aggregates distribution	22.5		22.7		30.6
Building materials	28.9		26.2		24.4
Lime	—		7.4		9.9
Hauling	4.3		4.8		5.6
Other	2.7		2.3		2.7
Total revenue	$	1,478.7	$	1,506.4	$	1,336.0



	December 31,
	2019		2018		2017
Identifiable Property, Plant and Equipment Assets:
Ready-mixed concrete	$	286.4	$	295.5	$	266.6
Aggregate products	359.6		355.0		342.1
Other products and corporate	27.5		29.7		27.6
Total identifiable assets	$	673.5	$	680.2	$	636.3