SEGMENT INFORMATION

6 Months Ended

Sep. 30, 2023

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, including portland limestone 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 over 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, Tennessee, 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,
	2023			2022			2023			2022
	(dollars in thousands)
Revenue
Cement	$	360,751		$	319,460		$	689,783		$	603,976
Concrete and Aggregates		69,887			69,613			140,340			131,231
Gypsum Wallboard		209,233			224,638			428,330			440,965
Recycled Paperboard		43,016			53,673			88,344			107,746
		682,887			667,384			1,346,797			1,283,918
Less: Intersegment Revenue		(31,744	)		(37,186	)		(67,010	)		(66,018	)
Less: Joint Venture Revenue		(28,907	)		(25,130	)		(56,030	)		(51,445	)
	$	622,236		$	605,068		$	1,223,757		$	1,166,455

	For the Three Months Ended September 30,				For the Six Months Ended September 30,
	2023		2022		2023		2022
	(dollars in thousands)
Intersegment Revenue
Cement	$	9,251	$	12,361	$	19,388	$	18,652
Concrete and Aggregates		3,783		—		6,821		—
Recycled Paperboard		18,710		24,825		40,801		47,366
	$	31,744	$	37,186	$	67,010	$	66,018
Cement Sales Volume (M tons)
Wholly Owned		1,959		1,981		3,807		3,786
Joint Venture		170		164		335		352
		2,129		2,145		4,142		4,138

	For the Three Months Ended September 30,						For the Six Months Ended September 30,
	2023			2022			2023			2022
	(dollars in thousands)						(dollars in thousands)
Operating Earnings
Cement	$	121,429		$	98,779		$	195,490		$	161,127
Concrete and Aggregates		4,640			7,276			11,674			13,008
Gypsum Wallboard		85,705			89,761			176,562			173,829
Recycled Paperboard		7,590			5,579			14,792			9,395
Sub-Total		219,364			201,395			398,518			357,359
Corporate General and Administrative Expense		(16,576	)		(13,627	)		(28,255	)		(25,447	)
Other Non-Operating Income (Loss)		1,605			(664	)		1,818			(1,299	)
Earnings Before Interest and Income Taxes		204,393			187,104			372,081			330,613
Interest Expense, net		(10,204	)		(8,580	)		(22,443	)		(15,910	)
Earnings Before Income Taxes	$	194,189		$	178,524		$	349,638		$	314,703
Cement Operating Earnings
Wholly Owned	$	111,083		$	91,623		$	181,985		$	148,873
Joint Venture		10,346			7,156			13,505			12,254
	$	121,429		$	98,779		$	195,490		$	161,127
Capital Expenditures
Cement	$	14,487		$	4,893		$	26,757		$	13,879
Concrete and Aggregates		5,854			13,688			9,074			14,340
Gypsum Wallboard		5,452			8,391			16,480			12,470
Recycled Paperboard		2,597			1,018			5,865			1,855
Corporate and Other		1,064			345			7,277			705
	$	29,454		$	28,335		$	65,453		$	43,249
Depreciation, Depletion, and Amortization
Cement	$	22,187		$	20,258		$	43,866		$	40,311
Concrete and Aggregates		4,962			4,351			9,993			8,552
Gypsum Wallboard		5,548			5,589			11,009			11,152
Recycled Paperboard		3,708			3,742			7,427			7,459
Corporate and Other		792			705			1,584			1,400
	$	37,197		$	34,645		$	73,879		$	68,874

	September 30,		March 31,
	2023		2023
	(dollars in thousands)
Identifiable Assets
Cement	$	2,014,557	$	1,905,227
Concrete and Aggregates		238,440		234,767
Gypsum Wallboard		414,747		421,425
Recycled Paperboard		168,659		163,797
Other, net		80,691		55,786
	$	2,917,094	$	2,781,002

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,
	2023		2023
	(dollars in thousands)
Cement	$	227,669	$	215,781
Concrete and Aggregates		40,774		40,774
Gypsum Wallboard		116,618		116,618
Recycled Paperboard		7,538		7,538
	$	392,599	$	380,711

The increase in Goodwill in the Cement segment is related to the Stockton Terminal 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 September 30,				For the Six Months Ended September 30,
	2023		2022		2023		2022
	(dollars in thousands)				(dollars in thousands)
Revenue	$	57,813	$	50,259	$	112,060	$	102,889
Gross Margin	$	23,509	$	15,977	$	32,047	$	28,003
Earnings Before Income Taxes	$	20,690	$	14,312	$	27,009	$	24,508

	September 30,		March 31,
	2023		2023
	(dollars in thousands)
Current Assets	$	102,831	$	88,562
Noncurrent Assets	$	134,254	$	124,503
Current Liabilities	$	31,791	$	29,434