Business Segments

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Business Segments

9. Business Segments

The Aggregates business contains three reportable business segments: Mid-America Group, Southeast Group and West Group. The Corporation also has Cement and Magnesia Specialties segments.  Corporate loss from operations primarily includes depreciation on capitalized interest, expenses for certain 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.

9. Business Segments (continued)

The following tables display selected financial data for continuing operations for the Corporation’s reportable business segments. Total revenues and net sales in the table below, as well as the consolidated statements of earnings and comprehensive earnings, exclude intersegment sales, which are eliminated.  

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
	(Dollars in Thousands)
Total revenues:
Mid-America Group	$	297,275		$	289,735		$	762,297		$	688,217
Southeast Group		83,814			82,949			243,086			229,144
West Group		595,030			531,256			1,472,943			1,263,063
Total Aggregates Business		976,119			903,940			2,478,326			2,180,424
Cement		62,633			116,135			198,653			324,134
Magnesia Specialties		65,149			62,174			192,955			190,456
Total	$	1,103,901		$	1,082,249		$	2,869,934		$	2,695,014
Net sales:
Mid-America Group	$	275,791		$	265,653		$	708,151		$	632,772
Southeast Group		80,044			78,283			230,005			214,536
West Group		562,175			493,505			1,381,215			1,156,075
Total Aggregates Business		918,010			837,441			2,319,371			2,003,383
Cement		60,090			110,519			189,754			307,489
Magnesia Specialties		60,244			57,258			178,615			176,470
Total	$	1,038,344		$	1,005,218		$	2,687,740		$	2,487,342
Earnings (Loss) from operations:
Mid-America Group	$	91,861		$	85,693		$	186,836		$	148,385
Southeast Group		11,870			7,576			30,389			10,845
West Group		110,854			87,525			227,056			151,201
Total Aggregates Business		214,585			180,794			444,281			310,431
Cement		22,959			2,758			70,584			37,455
Magnesia Specialties		20,378			16,996			60,170			53,537
Corporate		(17,567	)		(21,050	)		(63,168	)		(59,371	)
Total	$	240,355		$	179,498		$	511,867		$	342,052

9. Business Segments (continued)

The decline in the Cement business’s total and net sales is primarily attributable to the California cement operations, included in the three and nine months ended September 30, 2015 and divested as of September 30, 2015.  For the three months ended September 30, 2015, total revenues, net sales and loss from operations for the California cement operations were $31,866,000, $30,781,000 and $28,947,000, respectively.  For the nine months ended September 30, 2015, total revenues, net sales and loss from operations for the California cement operations were $101,541,000, $98,048,000 and $36,853,000, respectively.  The California cement operations’ loss from operations for the three and nine months ended September 30, 2015 includes the loss on the divestiture of $28,709,000 and $29,888,000, respectively.

Cement intersegment sales, which are to the aggregates and ready mixed concrete product lines in the West Group, were $34,654,000 and $89,291,000 for the three and nine months ended September 30, 2016, respectively, and $25,349,000 and $64,304,000 for the three and nine months ended September 30, 2015, respectively.  

The Aggregates business includes the aggregates product line and aggregates-related downstream product lines, which include asphalt and road paving products and ready mixed concrete. All aggregates-related downstream product lines reside in the West Group. The following tables, which are reconciled to consolidated amounts, provide net sales and gross profit by line of business: Aggregates (further divided by product line), Cement and Magnesia Specialties.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
	(Dollars in Thousands)
Net sales:
Aggregates	$	542,764		$	529,993		$	1,465,486		$	1,343,821
Asphalt and Paving		111,566			97,840			188,532			172,631
Ready Mixed Concrete		263,680			209,608			665,353			486,931
Total Aggregates Business		918,010			837,441			2,319,371			2,003,383
Cement		60,090			110,519			189,754			307,489
Magnesia Specialties		60,244			57,258			178,615			176,470
Total	$	1,038,344		$	1,005,218		$	2,687,740		$	2,487,342
Gross profit (loss):
Aggregates	$	172,994		$	166,166		$	418,428		$	344,857
Asphalt and Paving		30,400			22,057			37,114			25,173
Ready Mixed Concrete		39,832			23,557			83,210			34,981
Total Aggregates Business		243,226			211,780			538,752			405,011
Cement		29,725			38,244			86,283			87,642
Magnesia Specialties		22,810			19,391			67,472			60,793
Corporate		(3,193	)		(6,910	)		(8,604	)		(16,528	)
Total	$	292,568		$	262,505		$	683,903		$	536,918

For the three months ended September 30, 2015, gross profit for the California cement operations was $3,332,000.  For the nine months ended September 30, 2015, the operations’ gross profit was $2,685,000.