SEGMENT INFORMATION

3 Months Ended

Jun. 30, 2022

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.

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 30 readymix concrete batch plants and five aggregates processing plants in markets that are complementary to our cement network.

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 June 30,
	2022			2021
	(dollars in thousands)
Revenue
Cement	$	284,516		$	270,255
Concrete and Aggregates		61,618			44,754
Gypsum Wallboard		216,327			166,267
Paperboard		54,073			43,267
		616,534			524,543
Less: Intersegment Revenue		(28,832	)		(26,082	)
Less: Joint Venture Revenue		(26,315	)		(22,691	)
	$	561,387		$	475,770

	For the Three Months Ended June 30,
	2022		2021
	(dollars in thousands)
Intersegment Revenue
Cement	$	6,291	$	7,833
Paperboard		22,541		18,249
	$	28,832	$	26,082
Cement Sales Volume (M tons)
Wholly Owned		1,805		1,852
Joint Venture		188		184
		1,993		2,036

	For the Three Months Ended June 30,
	2022			2021
	(dollars in thousands)
Operating Earnings
Cement	$	62,348		$	62,547
Concrete and Aggregates		5,732			5,344
Gypsum Wallboard		84,068			63,253
Paperboard		3,816			3,337
Sub-Total		155,964			134,481
Corporate General and Administrative Expense		(11,820	)		(9,468	)
Other Non-Operating Income (Loss)		(635	)		3,678
Earnings Before Interest and Income Taxes		143,509			128,691
Interest Expense, net		(7,330	)		(6,972	)
Earnings Before Income Taxes	$	136,179		$	121,719
Cement Operating Earnings -
Wholly Owned	$	57,250		$	54,577
Joint Venture		5,098			7,970
	$	62,348		$	62,547
Capital Expenditures
Cement	$	8,986		$	7,967
Concrete and Aggregates		652			546
Gypsum Wallboard		4,079			1,694
Paperboard		837			1,117
Corporate and Other		360			611
	$	14,914		$	11,935
Depreciation, Depletion, and Amortization
Cement	$	20,053		$	19,531
Concrete and Aggregates		4,201			2,578
Gypsum Wallboard		5,563			5,396
Paperboard		3,717			3,668
Corporate and Other		695			771
	$	34,229		$	31,944

	June 30,		March 31,
	2022		2022
	(dollars in thousands)
Identifiable Assets
Cement	$	1,886,113	$	1,860,649
Concrete and Aggregates		214,042		89,405
Gypsum Wallboard		401,056		397,486
Paperboard		177,082		180,025
Other, net		92,566		52,087
	$	2,770,859	$	2,579,652

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 mainly 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:

	June 30,		March 31,
	2022		2022
	(dollars in thousands)
Cement	$	203,342	$	203,342
Concrete and Aggregates		40,382		1,639
Gypsum Wallboard		116,618		116,618
Paperboard		7,538		7,538
	$	367,880	$	329,137

The increase in Goodwill in the Concrete and Aggregates segment is related to the ConAgg Acquisition. The purchase price allocation is still in progress, and may affect the recorded balance of Goodwill when completed .

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 June 30,
	2022		2021
	(dollars in thousands)
Revenue	$	52,630	$	45,382
Gross Margin	$	12,026	$	16,833
Earnings Before Income Taxes	$	10,272	$	16,189

	June 30,		March 31,
	2022		2022
	(dollars in thousands)
Current Assets	$	77,710	$	69,492
Noncurrent Assets	$	112,611	$	112,926
Current Liabilities	$	21,685	$	18,276