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 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						Nine-Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
	(Dollars in Thousands)
Total revenues:
Mid-America Group	$	308,472		$	297,275		$	788,390		$	762,297
Southeast Group		94,843			83,814			277,474			243,086
West Group		620,512			657,663			1,726,742			1,671,596
Total Building Materials Business		1,023,827			1,038,752			2,792,606			2,676,979
Magnesia Specialties		63,905			65,149			202,510			192,955
Total	$	1,087,732		$	1,103,901		$	2,995,116		$	2,869,934

Net sales:
Mid-America Group	$	287,078		$	275,791		$	734,258		$	708,151
Southeast Group		91,407			80,044			266,556			230,005
West Group		585,126			622,265			1,622,954			1,570,969
Total Building Materials Business		963,611			978,100			2,623,768			2,509,125
Magnesia Specialties		58,526			60,244			186,342			178,615
Total	$	1,022,137		$	1,038,344		$	2,810,110		$	2,687,740

Earnings (Loss) from operations:
Mid-America Group	$	106,235		$	92,170		$	204,939		$	187,656
Southeast Group		17,882			11,938			42,331			30,579
West Group		96,522			134,559			270,246			299,722
Total Building Materials Business		220,639			238,667			517,516			517,957
Magnesia Specialties		17,590			20,432			58,589			60,319
Corporate		(11,265	)		(16,430	)		(59,138	)		(58,735	)
Total	$	226,964		$	242,669		$	516,967		$	519,541

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						Nine-Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
	(Dollars in Thousands)
Total revenues:
Aggregates	$	647,121		$	637,995		$	1,776,292		$	1,715,457
Cement		91,884			97,287			290,513			287,944
Ready Mixed Concrete		240,456			264,050			705,128			666,506
Asphalt and Paving		150,375			151,141			291,844			253,937
Less: Interproduct Revenues		(106,009	)		(111,721	)		(271,171	)		(246,865	)
Total Building Materials Business		1,023,827			1,038,752			2,792,606			2,676,979
Magnesia Specialties		63,905			65,149			202,510			192,955
Total	$	1,087,732		$	1,103,901		$	2,995,116		$	2,869,934

Net sales:
Aggregates	$	591,195		$	581,536		$	1,620,962		$	1,559,688
Cement		88,615			94,744			281,315			279,045
Ready Mixed Concrete		240,216			263,747			704,491			665,546
Asphalt and Paving		149,594			149,794			288,171			251,712
Less: Interproduct Sales		(106,009	)		(111,721	)		(271,171	)		(246,866	)
Total Building Materials Business		963,611			978,100			2,623,768			2,509,125
Magnesia Specialties		58,526			60,244			186,342			178,615
Total	$	1,022,137		$	1,038,344		$	2,810,110		$	2,687,740

Gross profit (loss):
Aggregates	$	187,947		$	173,891		$	440,711		$	420,972
Cement		27,604			36,871			87,962			93,535
Ready Mixed Concrete		23,907			32,787			70,562			75,987
Asphalt and Paving		28,864			30,247			44,433			36,838
Total Building Materials Business		268,322			273,796			643,668			627,332
Magnesia Specialties		19,910			22,845			65,849			67,564
Corporate		3,446			(3,334	)		3,321			(8,908	)
Total	$	291,678		$	293,307		$	712,838		$	685,988