Business Segments

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segments

Note O: Business Segments

The Aggregates business is comprised of divisions which represent operating segments. Disclosures for certain divisions are consolidated as reportable segments for financial reporting purposes as they meet the aggregation criteria. The Aggregates business contains three reportable segments: Mid-America Group, Southeast Group and West Group. The Cement and Magnesia Specialties businesses also represent individual reportable segments. The accounting policies used for segment reporting are the same as those described in Note A.

The Corporation’s evaluation of performance and allocation of resources are based primarily on earnings from operations. Consolidated earnings from operations equal net sales less cost of sales, selling, general and administrative expenses, and business development costs; include other operating income and expenses; and exclude interest expense, other nonoperating income and expenses, net, and taxes on income. Corporate consolidated earnings from operations primarily include depreciation on capitalized interest, expenses for corporate administrative functions, acquisition-related expenses, net, unallocated corporate expenses and other nonrecurring and/or non-operational income and expenses excluded from the Corporation’s evaluation of business segment performance and resource allocation. All debt and related interest expense is held at Corporate.

Assets employed by segment include assets directly identified with those operations. Corporate assets consist primarily of cash and cash equivalents, property, plant and equipment for corporate operations, investments and other assets not directly identifiable with a reportable business segment.

The following tables display selected financial data for the Corporation’s reportable business segments.

Selected Financial Data by Business Segment

years ended December 31 (add 000) Total revenues	2014		2013			2012
Mid-America Group	$	848,855	$	789,806		$	761,704
Southeast Group		274,352		245,340			243,442
West Group		1,356,283		875,588			806,043
Total Aggregates Business		2,479,490		1,910,734			1,811,189
Cement		221,759		—			—
Magnesia Specialties		256,702		244,817			220,712
Total	$	2,957,951	$	2,155,551		$	2,031,901
Net sales
Mid-America Group	$	770,568	$	720,007		$	695,819
Southeast Group		254,986		226,437			226,232
West Group		1,207,879		771,133			708,689
Total Aggregates Business		2,233,433		1,717,577			1,630,740
Cement		209,556		—			—
Magnesia Specialties		236,106		225,641			202,217
Total	$	2,679,095	$	1,943,218		$	1,832,957
Gross profit (loss)
Mid-America Group	$	216,883	$	192,747		$	185,191
Southeast Group		10,653		(3,515	)		(6,051	)
West Group		155,678		92,513			76,212
Total Aggregates Business		383,214		281,745			255,352
Cement		52,469		-			-
Magnesia Specialties		84,594		83,703			77,223
Corporate		2,083		(1,491	)		(5,441	)
Total	$	522,360	$	363,957		$	327,134

years ended December 31 (add 000) Selling, general and administrative expenses	2014			2013			2012
Mid-America Group	$	52,217		$	53,683		$	56,092
Southeast Group		17,788			18,081			18,250
West Group		50,147			42,929			42,082
Total Aggregates Business		120,152			114,693			116,424
Cement		12,741			—			—
Magnesia Specialties		9,776			10,165			9,295
Corporate		26,576			25,233			12,679
Total	$	169,245		$	150,091		$	138,398
Earnings (Loss) from operations
Mid-America Group	$	172,208		$	144,269		$	133,387
Southeast Group		(5,293	)		(19,849	)		(25,495	)
West Group		153,182			53,150			36,858
Total Aggregates Business		320,097			177,570			144,750
Cement		40,751			-			-
Magnesia Specialties		74,805			73,506			68,542
Corporate		(120,780	)		(33,088	)		(57,122	)
Total	$	314,873		$	217,988		$	156,170
Assets employed
Mid-America Group	$	1,290,833		$	1,242,394		$	1,137,480
Southeast Group		604,044			611,906			608,360
West Group		1,844,028			1,030,599			1,047,286
Total Aggregates Business		3,738,905			2,884,899			2,793,126
Cement		3,052,171			—			—
Magnesia Specialties		150,359			154,024			157,673
Corporate		522,957			220,903			210,127
Total	$	7,464,392		$	3,259,826		$	3,160,926
Depreciation, depletion and amortization
Mid-America Group	$	63,294		$	66,381		$	69,915
Southeast Group		31,955			32,556			35,026
West Group		74,283			56,004			56,526
Total Aggregates Business		169,532			154,941			161,467
Cement		30,620			—			—
Magnesia Specialties		10,394			10,564			7,838
Corporate		12,200			8,256			7,906
Total	$	222,746		$	173,761		$	177,211
Total property additions
Mid-America Group	$	76,753		$	82,667		$	57,125
Southeast Group		23,326			72,907			22,594
West Group		753,342			53,530			29,234
Total Aggregates Business		853,421			209,104			108,953
Cement		975,063			—			—
Magnesia Specialties		2,588			4,700			38,873
Corporate		15,349			6,477			3,887
Total	$	1,846,421		$	220,281		$	151,713

years ended December 31 (add 000) Property additions through acquisitions	2014		2013		2012
Mid-America Group	$	—	$	244	$	—
Southeast Group		—		54,463		—
West Group		632,560		—		690
Total Aggregates Business		632,560		54,707		690
Cement		970,300		—		—
Magnesia Specialties		—		—		—
Corporate		—		—		—
Total	$	1,602,860	$	54,707	$	690

All of the property additions through acquisitions in 2014 relate to TXI.  

The Corporation acquired machinery and equipment of $7,788,000 and $10,341,000 in 2014 and 2013, respectively, through capital leases.  The Corporation also acquired $3,591,000 of land via noncash transactions and asset exchanges in 2014.

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

years ended December 31 (add 000) Total revenues	2014		2013			2012
Aggregates	$	1,805,824	$	1,527,986		$	1,470,954
Asphalt		85,822		78,863			93,288
Ready Mixed Concrete		431,229		146,085			110,562
Road Paving		156,615		157,800			136,385
Total Aggregates Business		2,479,490		1,910,734			1,811,189
Cement		221,759		—			—
Magnesia Specialties		256,702		244,817			220,712
Total	$	2,957,951	$	2,155,551		$	2,031,901
Net sales
Aggregates	$	1,570,022	$	1,347,486		$	1,303,975
Asphalt		76,278		66,216			79,816
Ready Mixed Concrete		430,519		146,079			110,554
Road Paving		156,614		157,796			136,395
Total Aggregates Business		2,233,433		1,717,577			1,630,740
Cement		209,556		—			—
Magnesia Specialties		236,106		225,641			202,217
Total	$	2,679,095	$	1,943,218		$	1,832,957
Gross profit (loss)	2014		2013			2012
Aggregates	$	324,093	$	259,054		$	240,614
Asphalt		13,552		12,928			12,099
Ready Mixed Concrete		39,129		8,337			59
Road Paving		6,440		1,426			2,580
Total Aggregates Business		383,214		281,745			255,352
Cement		52,469		—			—
Magnesia Specialties		84,594		83,703			77,223
Corporate		2,083		(1,491	)		(5,441	)
Total	$	522,360	$	363,957		$	327,134

Domestic and foreign total revenues are as follows:

years ended December 31 (add 000)	2014		2013		2012
Domestic	$	2,912,115	$	2,113,068	$	1,987,228
Foreign		45,836		42,483		44,673
Total	$	2,957,951	$	2,155,551	$	2,031,901