SEGMENT INFORMATION

9 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

(N) SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities that earn revenue, incur expenses, and prepare separate financial information that is evaluated regularly by our chief operating decision maker in order to allocate resources and assess performance. On September 18, 2020, we sold our Oil and Gas Proppants business, which had been reported as an operating segment. The Oil and Gas Proppants business was determined to meet the discontinued operations accounting criteria; therefore, this segment is no longer separately reported in our reportable segment footnote for any of the periods presented. Certain expenses of the Oil and Gas Proppants business that related to assets not included in the sale, namely real property and equipment in south Texas, real property in Illinois, and certain other assets, are included in Other when reconciling segment operating earnings to consolidated operating earnings. See Footnote (C) for more information about the sale of the Oil and Gas Proppants business.

Our business is organized into two sectors within which there are four reportable business segments. The Heavy Materials sector includes the Cement and Concrete and Aggregates segments. The Light Materials sector includes the Gypsum Wallboard and Recycled Paperboard segments.

Our primary products are commodities that are essential in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. We distribute our products throughout most of the United States, except the Northeast, which provides us with regional economic diversification. Our operations are conducted in the U.S. and include the mining of limestone for the manufacture, production, distribution, and sale of portland cement (a basic construction material that is the essential binding ingredient in concrete); the grinding and sale of slag; the mining of gypsum for the manufacture and sale of gypsum wallboard; the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and the mining and sale of aggregates (crushed stone, sand, and gravel).

We operate eight modern cement plants (one of which is operated through a joint venture located in Buda, Texas), one slag grinding facility, and 29 cement distribution terminals. Our cement companies focus on the U.S. heartland and operate as an integrated network selling product primarily in California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, and Texas. We operate 26 readymix concrete batch plants and three aggregates processing plants in markets that are complementary to our cement network. On April 17, 2020, we sold our Concrete and Aggregates companies in northern California. See Footnote (C) for more information about the sale.

We operate five gypsum wallboard plants and a recycled paperboard mill. We distribute gypsum wallboard and recycled paperboard throughout the continental U.S., with the exception of the Northeast.

We account for intersegment sales at market prices. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture Revenue and Operating Earnings, consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

The following table sets forth certain financial information relating to our operations by segment. We do not allocate interest or taxes at the segment level; these costs are disclosed at the consolidated company level.

	For the Three Months Ended December 31,						For the Nine Months Ended December 31,
	2021			2020			2021			2020
	(dollars in thousands)
Revenue
Cement	$	261,155		$	234,092		$	819,734		$	773,565
Concrete and Aggregates		42,384			43,530			139,888			134,020
Gypsum Wallboard		163,584			135,658			502,836			397,018
Paperboard		49,763			39,602			140,828			122,417
		516,886			452,882			1,603,286			1,427,020
Less: Intersegment Revenue		(26,539	)		(21,105	)		(77,858	)		(68,077	)
Less: Joint Venture Revenue		(27,406	)		(27,110	)		(77,023	)		(79,603	)
	$	462,941		$	404,667		$	1,448,405		$	1,279,340

	For the Three Months Ended December 31,				For the Nine Months Ended December 31,
	2021		2020		2021		2020
	(dollars in thousands)
Intersegment Revenue
Cement	$	5,301	$	5,241	$	18,357	$	17,539
Concrete and Aggregates		—		—		—		106
Paperboard		21,238		15,864		59,501		50,432
	$	26,539	$	21,105	$	77,858	$	68,077
Cement Sales Volume (M tons)
Wholly Owned		1,748		1,616		5,583		5,429
Joint Venture		215		226		614		678
		1,963		1,842		6,197		6,107

	For the Three Months Ended December 31,						For the Nine Months Ended December 31,
	2021			2020			2021			2020
	(dollars in thousands)						(dollars in thousands)
Operating Earnings
Cement	$	79,836		$	70,434		$	231,133		$	210,802
Concrete and Aggregates		4,115			5,075			16,998			15,748
Gypsum Wallboard		60,841			40,792			190,425			119,723
Paperboard		2,349			7,161			6,667			20,708
Sub-Total		147,141			123,462			445,223			366,981
Corporate General and Administrative Expense		(12,851	)		(11,327	)		(32,986	)		(40,225	)
Early Retirement of Senior Notes		—			—			(8,407	)		—
Gain on Sale of Businesses		—			—			—			51,973
Other Non-Operating Income (Loss)		3,207			2,297			5,941			1,898
Earnings Before Interest and Income Taxes		137,497			114,432			409,771			380,627
Interest Expense, net		(5,651	)		(9,360	)		(24,891	)		(35,957	)
Earnings from Continuing Operations Before Income Taxes	$	131,846		$	105,072		$	384,880		$	344,670
Cement Operating Earnings -
Wholly Owned	$	71,281		$	60,351		$	206,348		$	182,346
Joint Venture		8,555			10,083			24,785			28,456
	$	79,836		$	70,434		$	231,133		$	210,802
Capital Expenditures
Cement	$	8,256		$	2,510		$	23,199		$	20,767
Concrete and Aggregates		2,386			1,631			3,459			2,933
Gypsum Wallboard		16,222			491			24,261			11,073
Paperboard		594			233			2,086			10,768
Corporate and Other		953			—			2,183			—
	$	28,411		$	4,865		$	55,188		$	45,541
Depreciation, Depletion, and Amortization
Cement	$	19,933		$	19,337		$	59,483		$	57,838
Concrete and Aggregates		2,294			2,691			7,342			8,110
Gypsum Wallboard		5,598			5,340			16,478			16,201
Paperboard		3,685			3,509			11,016			10,205
Corporate and Other		684			1,203			2,159			3,704
	$	32,194		$	32,080		$	96,478		$	96,058
Discontinued Operations
Capital Expenditures	$	—		$	—		$	—		$	—
Depreciation, Depletion, and Amortization	$	—		$	—		$	—		$	221

	December 31,		March 31,
	2021		2021
	(dollars in thousands)
Identifiable Assets
Cement	$	1,861,439	$	1,898,930
Concrete and Aggregates		88,277		88,410
Gypsum Wallboard		387,309		366,352
Paperboard		183,755		186,156
Other, net		39,341		298,833
	$	2,560,121	$	2,838,681

Segment operating earnings, including the proportionately consolidated 50% interest in the revenue and expenses of the Joint Venture, represent Revenue, less direct operating expenses, segment Depreciation, and segment Selling, General, and Administrative expenses. We account for intersegment sales at market prices. Corporate assets consist primarily of cash and cash equivalents, general office assets, and miscellaneous other assets.

The basis used to disclose Identifiable Assets; Capital Expenditures; and Depreciation, Depletion, and Amortization conforms with the equity method, and is similar to how we disclose these accounts in our Unaudited Consolidated Balance Sheets and Unaudited Consolidated Statements of Earnings.

The segment breakdown of Goodwill is as follows:

	December 31,		March 31,
	2021		2021
	(dollars in thousands)
Cement	$	203,342	$	203,342
Concrete and Aggregates		1,639		1,639
Gypsum Wallboard		116,618		116,618
Paperboard		7,538		7,538
	$	329,137	$	329,137

Summarized financial information for the Joint Venture that is not consolidated is set out below. This summarized financial information includes the total amount for the Joint Venture and not our 50% interest in those amounts:

	For the Three Months Ended December 31,				For the Nine Months Ended December 31,
	2021		2020		2021		2020
	(dollars in thousands)				(dollars in thousands)
Revenue	$	54,812	$	54,220	$	154,046	$	159,207
Gross Margin	$	18,662	$	22,045	$	53,271	$	61,814
Earnings Before Income Taxes	$	17,111	$	21,920	$	49,570	$	58,665

	December 31,		March 31,
	2021		2021
	(dollars in thousands)
Current Assets	$	69,481	$	66,871
Noncurrent Assets	$	112,937	$	107,617
Current Liabilities	$	18,277	$	16,390