Segments

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segments

Note P: Segments

During 2020, the Company made organizational changes to its Building Materials business. As of December 31, 2020, the Building Materials business is comprised of four divisions that represent individual operating segments. These divisions are consolidated into two reportable segments, the East Group and the West Group, for financial reporting purposes as they meet the aggregation criteria. Additional information on reportable segment changes is provided in Note A. Prior-year reportable segment information has been reclassified to conform to the current-year presentation. The Magnesia Specialties business represents an individual operating and reportable segment. The accounting policies used for segment reporting are the same as those described in Note A.

The Chief Operating Decision Maker’s evaluation of performance and allocation of resources are based primarily on earnings from operations. Consolidated earnings from operations include total revenues less cost of revenues; selling, general and administrative expenses; acquisition-related expenses, net; other operating income, net; and excludes interest expense; other nonoperating income and expenses, net; and income tax expense. Corporate loss from operations primarily includes depreciation; expenses for corporate administrative functions; acquisition-related expenses, net; and other nonrecurring income and expenses excluded from the Company’s evaluation of segment performance and resource allocation. All long-term debt and related interest expense are held at Corporate.

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

The following tables display selected financial data for the Company’s reportable segments. Total revenues, as well as the consolidated statements of earnings and comprehensive earnings, reflect the elimination of intersegment revenues.

years ended December 31 (in millions) Total revenues	2020		2019		2018
East Group	$	1,949.1	$	1,949.0	$	1,643.1
West Group		2,538.1		2,518.8		2,313.5
Total Building Materials business		4,487.2		4,467.8		3,956.6
Magnesia Specialties		242.7		271.3		287.7
Total	$	4,729.9	$	4,739.1	$	4,244.3

Gross profit
East Group	$	619.4	$	605.7	$	442.9
West Group		540.4		474.9		417.4
Total Building Materials business		1,159.8		1,080.6		860.3
Magnesia Specialties		85.5		95.4		98.7
Corporate		7.5		3.0		7.6
Total	$	1,252.8	$	1,179.0	$	966.6

Selling, general and administrative expenses
East Group	$	99.2	$	84.7	$	74.5
West Group		135.7		116.3		107.6
Total Building Materials business		234.9		201.0		182.1
Magnesia Specialties		14.1		11.3		10.0
Corporate		56.9		90.4		88.5
Total	$	305.9	$	302.7	$	280.6

Earnings (Loss) from operations
East Group	$	522.1		$	527.3		$	393.1
West Group		471.3			366.9			297.7
Total Building Materials business		993.4			894.2			690.8
Magnesia Specialties		70.7			83.6			88.1
Corporate		(58.7	)		(92.9	)		(88.2	)
Total	$	1,005.4		$	884.9		$	690.7

Earnings from operations for the West Group include nonrecurring gains on sales of investment land and divested assets of $69.9 million in 2020 and an asset and portfolio rationalization charge of $18.8 million in 2018.

December 31 (in millions) Assets employed	2020		2019		2018
East Group	$	4,342.5	$	4,320.6	$	4,086.8
West Group		5,355.5		5,321.9		4,990.8
Total Building Materials business		9,698.0		9,642.5		9,077.6
Magnesia Specialties		167.9		176.2		156.1
Corporate		714.9		312.9		317.7
Total	$	10,580.8	$	10,131.6	$	9,551.4

years ended December 31 (in millions) Depreciation, depletion and amortization	2020		2019		2018
East Group	$	167.9	$	158.0	$	134.8
West Group		196.6		183.3		180.9
Total Building Materials business		364.5		341.3		315.7
Magnesia Specialties		11.5		10.2		10.4
Corporate		17.5		20.0		17.9
Total	$	393.5	$	371.5	$	344.0

Total property additions, including the impact of acquisitions
East Group	$	159.0	$	172.9	$	1,760.2
West Group		197.9		182.7		148.1
Total Building Materials business		356.9		355.6		1,908.3
Magnesia Specialties		13.5		20.0		12.5
Corporate		16.8		12.0		4.8
Total	$	387.2	$	387.6	$	1,925.6

Property additions through acquisitions
East Group	$	—	$	—	$	1,541.8
West Group		20.0		—		1.4
Total Building Materials business		20.0		—		1,543.2
Magnesia Specialties		—		—		—
Corporate		—		—		—
Total	$	20.0	$	—	$	1,543.2