9.	Business Segments

The Building Materials business contains three reportable business segments: Mid-America Group, Southeast Group and West Group. The Company also has a Magnesia Specialties segment. The Company’s evaluation of performance and allocation of resources are based primarily on earnings from operations. Consolidated earnings from operations include net sales less cost of sales, selling, general and administrative expenses, acquisition-related expenses, net, other operating income and expenses, net, and exclude interest expense, other nonoperating income and expenses, net, and taxes on income. Corporate consolidated loss from operations primarily includes depreciation on capitalized interest, expenses for corporate administrative functions, acquisition-related expenses, net, and other nonrecurring and/or non-operational income and expenses excluded from the Company’s evaluation of business segment performance and resource allocation. All debt and related interest expense is held at Corporate.

The following table displays selected financial data for continuing operations for the Company’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 represent net sales from one segment to another segment which are eliminated.

9.	Business Segments (continued)

Effective with a management change previously discussed in Note 1, the cement product line is reported in the West Group. Prior-year segment information has been reclassified to conform to the presentation of the Company’s current reportable segments and for the adoption of ASU 2017-07.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
	(Dollars in Thousands)
Total revenues:
Mid-America Group	$	290,899		$	278,676		$	479,918		$	465,023
Southeast Group		92,348			87,600			182,630			159,271
West Group		610,248			547,386			1,106,230			1,013,932
Total Building Materials Business		993,495			913,662			1,768,778			1,638,226
Magnesia Specialties		70,029			63,636			138,605			127,806
Total	$	1,063,524		$	977,298		$	1,907,383		$	1,766,032

Net sales:
Mid-America Group	$	269,844		$	258,988		$	447,181		$	432,360
Southeast Group		88,489			82,676			175,148			149,961
West Group		573,402			514,906			1,037,828			948,704
Total Building Materials Business		931,735			856,570			1,660,157			1,531,025
Magnesia Specialties		64,554			58,866			127,816			118,371
Total	$	996,289		$	915,436		$	1,787,973		$	1,649,396

Earnings (Loss) from operations:
Mid-America Group	$	85,363		$	80,792		$	98,705		$	95,486
Southeast Group		14,334			11,614			24,449			18,642
West Group		112,491			99,357			173,724			165,163
Total Building Materials Business		212,188			191,763			296,878			279,291
Magnesia Specialties		21,118			19,277			40,999			39,887
Corporate		(20,454	)		(20,192	)		(47,875	)		(42,306	)
Total	$	212,852		$	190,848		$	290,002		$	276,872

9.	Business Segments (continued)

The Building Materials business includes the aggregates, cement, ready mixed concrete and asphalt and paving product lines. All cement, ready mixed concrete and asphalt and paving product lines reside in the West Group. The following table, which is reconciled to consolidated amounts, provides net sales and gross profit by business: Building Materials (further divided by product line) and Magnesia Specialties.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
	(Dollars in Thousands)
Net sales:
Aggregates	$	578,388		$	547,293		$	1,029,767		$	978,153
Cement		99,016			87,440			192,700			184,300
Ready Mixed Concrete		241,894			214,947			464,275			401,799
Asphalt and Paving		111,975			88,081			138,577			101,918
Less: Interproduct Sales		(99,538	)		(81,191	)		(165,162	)		(135,145	)
Total Building Materials Business		931,735			856,570			1,660,157			1,531,025
Magnesia Specialties		64,554			58,866			127,816			118,371
Total	$	996,289		$	915,436		$	1,787,973		$	1,649,396

Gross profit (loss):
Aggregates	$	173,487		$	165,044		$	252,765		$	247,080
Cement		29,448			24,048			60,358			56,663
Ready Mixed Concrete		26,863			25,301			46,655			43,200
Asphalt and Paving		20,358			12,867			15,568			6,591
Total Building Materials Business		250,156			227,260			375,346			353,534
Magnesia Specialties		23,624			21,720			45,939			44,718
Corporate		314			(1,549	)		(125	)		(5,571	)
Total	$	274,094		$	247,431		$	421,160		$	392,681