Performance Obligations. Performance obligations are contractual promises to transfer or provide a distinct good or service for a stated price. The Company’s product sales agreements are single-performance obligations that are satisfied at a point in time. Performance obligations within paving service agreements are satisfied over time, primarily ranging from one day to two years. For product and freight revenues, customer payment terms are generally 30 days from invoice date. Customer payments for the paving operations are based on a contractual billing schedule and are due 30 days from invoice date.

Future revenues from unsatisfied performance obligations at March 31, 2023 and 2022 were $241.0 million and $213.9 million, respectively, where the remaining periods to complete these obligations ranged from less than one month to 30 months and one month to 25 months, respectively.

Service Revenues. Service revenues, which include paving services located in California and Colorado, were $26.3 million and $18.3 million for the three months ended March 31, 2023 and 2022, respectively, and are reported in the West Group.

Contract Balances. Costs in excess of billings relate to the conditional right to consideration for completed contractual performance and are contract assets on the consolidated balance sheets. Costs in excess of billings are reclassified to accounts receivable when the right to consideration becomes unconditional. Billings in excess of costs relate to customers invoiced in advance of contractual performance and are contract liabilities on the consolidated balance sheets. The following table presents information about the Company’s contract balances:

Revenues recognized from the beginning balance of contract liabilities for the three months ended March 31, 2023 and 2022 were $5.2 million and $3.5 million, respectively.

Retainage, which primarily relates to the paving services, represents amounts that have been billed to customers but payment withheld until final acceptance of the performance obligation by the customer. Retainage, which is included in Other current assets on the Company’s consolidated balance sheets, was $10.0 million and $13.4 million at March 31, 2023 and December 31, 2022, respectively.

The following table, which is reconciled to consolidated amounts, provides total revenues and gross profit (loss) by line of business: Building Materials (further divided by product line) and Magnesia Specialties. Interproduct revenues represent sales from the aggregates product line to the ready mixed concrete and asphalt and paving product lines and sales from the cement product line to the ready mixed concrete product line. Total revenues and gross profit (loss) reflect continuing operations only.


	Three Months Ended
	March 31,
	2023			2022
	(Dollars in Millions)
Total revenues:
Building Materials business:
Aggregates	$	911.9		$	756.6
Cement		168.6			138.3
Ready mixed concrete		220.0			291.1
Asphalt and paving services		58.0			56.8
Less: interproduct revenues		(87.8	)		(89.0	)
Total Building Materials business		1,270.7			1,153.8
Magnesia Specialties		83.4			77.0
Total	$	1,354.1		$	1,230.8

Gross profit (loss):
Building Materials business:
Aggregates	$	238.1		$	102.8
Cement		47.1			26.9
Ready mixed concrete		11.2			21.9
Asphalt and paving services		(20.5	)		(13.2	)
Total Building Materials business		275.9			138.4
Magnesia Specialties		25.0			25.6
Corporate		1.9			(7.9	)
Total	$	302.8		$	156.1