SEGMENT INFORMATION

6 Months Ended

Sep. 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 30 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 September 30,						For the Six Months Ended September 30,
	2022			2021			2022			2021
	(dollars in thousands)
Revenue
Cement	$	319,460		$	288,324		$	603,976		$	558,579
Concrete and Aggregates		69,613			52,750			131,231			97,504
Gypsum Wallboard		224,638			172,985			440,965			339,252
Paperboard		53,673			47,798			107,746			91,065
		667,384			561,857			1,283,918			1,086,400
Less: Intersegment Revenue		(37,186	)		(25,237	)		(66,018	)		(51,319	)
Less: Joint Venture Revenue		(25,130	)		(26,926	)		(51,445	)		(49,617	)
	$	605,068		$	509,694		$	1,166,455		$	985,464

	For the Three Months Ended September 30,				For the Six Months Ended September 30,
	2022		2021		2022		2021
	(dollars in thousands)
Intersegment Revenue
Cement	$	12,361	$	5,223	$	18,652	$	13,056
Paperboard		24,825		20,014		47,366		38,263
	$	37,186	$	25,237	$	66,018	$	51,319
Cement Sales Volume (M tons)
Wholly Owned		1,981		1,983		3,786		3,835
Joint Venture		164		215		352		399
		2,145		2,198		4,138		4,234

	For the Three Months Ended September 30,						For the Six Months Ended September 30,
	2022			2021			2022			2021
	(dollars in thousands)						(dollars in thousands)
Operating Earnings
Cement	$	98,779		$	88,750		$	161,127		$	151,297
Concrete and Aggregates		7,276			7,539			13,008			12,883
Gypsum Wallboard		89,761			66,331			173,829			129,584
Paperboard		5,579			981			9,395			4,318
Sub-Total		201,395			163,601			357,359			298,082
Corporate General and Administrative Expense		(13,627	)		(10,667	)		(25,447	)		(20,135	)
Loss on Early Retirement of Senior Notes		—			(8,407	)		—			(8,407	)
Other Non-Operating Income (Loss)		(664	)		(944	)		(1,299	)		2,734
Earnings Before Interest and Income Taxes		187,104			143,583			330,613			272,274
Interest Expense, net		(8,580	)		(12,268	)		(15,910	)		(19,240	)
Earnings Before Income Taxes	$	178,524		$	131,315		$	314,703		$	253,034
Cement Operating Earnings
Wholly Owned	$	91,623		$	80,490		$	148,873		$	135,067
Joint Venture		7,156			8,260			12,254			16,230
	$	98,779		$	88,750		$	161,127		$	151,297
Capital Expenditures
Cement	$	4,893		$	6,976		$	13,879		$	14,943
Concrete and Aggregates		13,688			527			14,340			1,073
Gypsum Wallboard		8,391			6,345			12,470			8,039
Paperboard		1,018			375			1,855			1,492
Corporate and Other		345			619			705			1,230
	$	28,335		$	14,842		$	43,249		$	26,777
Depreciation, Depletion, and Amortization
Cement	$	20,258		$	20,019		$	40,311		$	39,550
Concrete and Aggregates		4,351			2,470			8,552			5,048
Gypsum Wallboard		5,589			5,484			11,152			10,880
Paperboard		3,742			3,663			7,459			7,331
Corporate and Other		705			704			1,400			1,475
	$	34,645		$	32,340		$	68,874		$	64,284

	September 30,		March 31,
	2022		2022
	(dollars in thousands)
Identifiable Assets
Cement	$	1,903,575	$	1,860,649
Concrete and Aggregates		224,578		89,405
Gypsum Wallboard		396,655		397,486
Paperboard		174,261		180,025
Other, net		110,080		52,087
	$	2,809,149	$	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:

	September 30,		March 31,
	2022		2022
	(dollars in thousands)
Cement	$	213,320	$	203,342
Concrete and Aggregates		40,774		1,639
Gypsum Wallboard		116,618		116,618
Paperboard		7,538		7,538
	$	378,250	$	329,137

The increase in Goodwill in the Cement and Concrete and Aggregates segments is related to the Terminal Acquisition and ConAgg Acquisition, respectively. The purchase price allocation for the Terminal Acquisition 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 September 30,				For the Six Months Ended September 30,
	2022		2021		2022		2021
	(dollars in thousands)				(dollars in thousands)
Revenue	$	50,259	$	53,852	$	102,889	$	99,234
Gross Margin	$	15,977	$	17,776	$	28,003	$	34,609
Earnings Before Income Taxes	$	14,312	$	16,519	$	24,508	$	32,459

	September 30,		March 31,
	2022		2022
	(dollars in thousands)
Current Assets	$	84,701	$	69,492
Noncurrent Assets	$	114,764	$	112,926
Current Liabilities	$	23,152	$	18,276