The following tables, which are reconciled to consolidated amounts, provide 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 cement and ready mixed concrete and asphalt and paving product lines. Effective January 1, 2024, the Company combined the cement and ready mixed concrete product lines. This change was driven by the reduced significance of each of these product lines relative to the Building Materials business and consolidated operating results from recent divestitures. Additionally, there is a significant relationship between these product lines, as the ready mixed concrete product line is a significant customer of the cement product line. Revenues and gross profit (loss) reflect continuing operations only.


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
	(Dollars in Millions)
Revenues:
Building Materials business:
Aggregates	$	1,242		$	1,151		$	2,127		$	2,063
Cement and ready mixed concrete		261			413			526			753
Asphalt and paving services		245			241			303			299
Less: interproduct revenues		(65	)		(65	)		(102	)		(104	)
Total Building Materials business		1,683			1,740			2,854			3,011
Magnesia Specialties		81			81			161			164
Total	$	1,764		$	1,821		$	3,015		$	3,175

Gross profit (loss):
Building Materials business:
Aggregates	$	392		$	371		$	632		$	609
Cement and ready mixed concrete		72			129			103			187
Asphalt and paving services		37			36			15			16
Total Building Materials business		501			536			750			812
Magnesia Specialties		27			28			56			53
Corporate		(11	)		(4	)		(16	)		(2	)
Total	$	517		$	560		$	790		$	863

The above information for 2023 has been reclassified to conform to current-year presentation. For the quarter ended June 30, 2023, the cement product line reported revenues of $198 million, inclusive of $56 million to the ready mixed concrete product line, and gross profit of $93 million. For the quarter ended June 30, 2023, the ready mixed concrete product line reported revenues of $271 million and gross profit of $35 million. For the six months ended June 30, 2023, the cement product line reported revenues of $366 million, inclusive of $104 million to the ready mixed concrete product line, and gross profit of $140 million. For the six months ended June 30, 2023, the ready mixed concrete product line reported revenues of $491 million and gross profit of $47 million. Revenues from sales of cement to the ready mixed concrete product line were previously eliminated in the interproduct revenues line.

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. Customer payments for the paving operations are based on a contractual billing schedule and are typically paid-when-paid, meaning the Company is paid once the customer is paid.

Future revenues from unsatisfied performance obligations at June 30, 2024 and 2023 were $377 million and $358 million, respectively, where the remaining periods to complete these obligations ranged from one month to 18 months and one month to 28 months, respectively.

Service Revenues. Service revenues, which include paving services located in California and Colorado, were $117 million and $108 million for the three months ended June 30, 2024 and 2023, respectively, and reported in the West Group. Service revenues for the six months ended June 30, 2024 and 2023 were $143 million and $134 million, respectively.

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 June 30, 2024 and 2023 were $6 million and $5 million, respectively, and $8 million for both the six months ended June 30, 2024 and 2023.

Retainage, which primarily relates to the paving services, represents amounts that have been billed to customers but payment is 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 $12 million and $17 million at June 30, 2024 and December 31, 2023, respectively.