Business Segments

9 Months Ended

Sep. 30, 2014

Business Segments

10. Business Segments

The Aggregates business contains three reportable business segments: Mid-America Group, Southeast Group and West Group. The Corporation also has Cement and Specialty Products segments.

The following tables display selected financial data for continuing operations for the Corporation’s reportable business segments. Corporate loss from operations primarily includes depreciation on capitalized interest, expenses for corporate administrative functions, business development and integration expenses, unallocated corporate expenses and other nonrecurring and/or non-operational adjustments. Intersegment sales represent net sales from one segment to another segment. Total revenues and net sales in the table below, as well as the consolidated statements of earnings and comprehensive earnings, do not include intersegment sales as these sales are eliminated.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(Dollars in Thousands)
Total revenues:
Mid-America Group	$	271,096		$	255,737		$	627,331		$	592,794
Southeast Group		73,217			69,490			208,205			185,676
West Group		479,323			279,477			956,921			649,896
Total Aggregates Business		823,636			604,704			1,792,457			1,428,366
Cement		115,743			—			115,743			—
Specialty Products		64,344			60,616			193,378			182,189
Total	$	1,003,723		$	665,320		$	2,101,578		$	1,610,555
Net sales:
Mid-America Group	$	244,309		$	231,807		$	569,545		$	540,209
Southeast Group		68,042			64,871			194,148			171,456
West Group		437,398			247,985			848,402			572,588
Total Aggregates Business		749,749			544,663			1,612,095			1,284,253
Cement		109,521			—			109,521			—
Specialty Products		58,672			55,794			177,941			167,595
Total	$	917,942		$	600,457		$	1,899,557		$	1,451,848
Earnings (Loss) from operations:
Mid-America Group	$	71,185		$	67,162		$	116,703		$	100,915
Southeast Group		329			(1,386	)		(7,084	)		(14,949	)
West Group		92,115			31,559			125,069			39,829
Total Aggregates Business		163,629			97,335			234,688			125,795
Cement		18,278			—			18,278			—
Specialty Products		17,697			17,267			54,976			53,071
Corporate		(83,648	)		(5,759	)		(111,642	)		(23,709	)
Total	$	115,956		$	108,843		$	196,300		$	155,157

Cement intersegment sales, which are to the ready mixed concrete product line in the West Group, was $22,061,000 for the three and nine months ended September 30, 2014.

	September 30,		December 31,		September 30,
	2014		2013		2013
	(Dollars in Thousands)
Assets employed:
Mid-America Group	$	1,313,472	$	1,242,394	$	1,270,025
Southeast Group		604,261		611,906		628,805
West Group		1,897,626		1,030,599		1,062,186
Total Aggregates Business		3,815,359		2,884,899		2,961,016
Cement		3,038,802		—		—
Specialty Products		150,068		154,024		153,334
Corporate		334,629		220,903		222,755
Total	$	7,338,858	$	3,259,826	$	3,337,105

The Aggregates business includes the aggregates product line and aggregates-related downstream product lines, which include asphalt, ready mixed concrete and road paving product lines. All aggregates-related downstream product lines reside in the West Group. The following tables provide net sales and gross profit by product line for the Aggregates business, which are reconciled to consolidated amounts, as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
	(Dollars in Thousands)
Net sales:
Aggregates	$	478,834		$	411,206	$	1,164,692		$	1,016,238
Asphalt		26,873			23,787		59,998			52,231
Ready Mixed Concrete		183,715			41,765		274,103			103,347
Road Paving		60,327			67,905		113,302			112,437
Total Aggregates Business		749,749			544,663		1,612,095			1,284,253
Cement		109,521			—		109,521			—
Specialty Products		58,672			55,794		177,941			167,595
Total	$	917,942		$	600,457	$	1,899,557		$	1,451,848
Gross profit (loss):
Aggregates	$	119,277		$	108,166	$	229,471		$	189,171
Asphalt		7,356			7,322		10,799			9,770
Ready Mixed Concrete		18,628			3,124		28,554			4,911
Road Paving		6,897			4,286		2,665			(285	)
Total Aggregates Business		152,158			122,898		271,489			203,567
Cement		24,194			—		24,194			—
Specialty Products		20,043			19,919		62,192			60,784
Corporate		(802	)		291		(845	)		(1,426	)
Total	$	195,593		$	143,108	$	357,030		$	262,925