SEGMENT INFORMATION

9 Months Ended

Dec. 31, 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 over 25 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 December 31,						For the Nine Months Ended December 31,
	2023			2022			2023			2022
	(dollars in thousands)
Revenue
Cement	$	308,654		$	256,313		$	998,437		$	860,289
Concrete and Aggregates		61,186			55,176			201,526			186,407
Gypsum Wallboard		200,969			212,016			629,299			652,981
Recycled Paperboard		47,053			47,774			135,397			155,520
		617,862			571,279			1,964,659			1,855,197
Less: Intersegment Revenue		(32,346	)		(32,172	)		(99,356	)		(98,190	)
Less: Joint Venture Revenue		(26,683	)		(27,620	)		(82,713	)		(79,065	)
	$	558,833		$	511,487		$	1,782,590		$	1,677,942

	For the Three Months Ended December 31,				For the Nine Months Ended December 31,
	2023		2022		2023		2022
	(dollars in thousands)
Intersegment Revenue
Cement	$	7,804	$	7,719	$	27,192	$	26,371
Concrete and Aggregates		3,414		—		10,235		—
Recycled Paperboard		21,128		24,453		61,929		71,819
	$	32,346	$	32,172	$	99,356	$	98,190
Cement Sales Volume (M tons)
Wholly Owned		1,663		1,527		5,470		5,313
Joint Venture		161		172		496		524
		1,824		1,699		5,966		5,837

	For the Three Months Ended December 31,						For the Nine Months Ended December 31,
	2023			2022			2023			2022
	(dollars in thousands)						(dollars in thousands)
Operating Earnings
Cement	$	105,566		$	72,315		$	301,056		$	233,442
Concrete and Aggregates		1,760			2,692			13,434			15,700
Gypsum Wallboard		75,063			87,335			251,625			261,164
Recycled Paperboard		7,524			7,805			22,316			17,200
Sub-Total		189,913			170,147			588,431			527,506
Corporate General and Administrative Expense		(14,201	)		(12,497	)		(42,456	)		(37,944	)
Other Non-Operating Income (Loss)		1,019			2,210			2,837			911
Earnings Before Interest and Income Taxes		176,731			159,860			548,812			490,473
Interest Expense, net		(10,128	)		(8,932	)		(32,571	)		(24,842	)
Earnings Before Income Taxes	$	166,603		$	150,928		$	516,241		$	465,631
Cement Operating Earnings
Wholly Owned	$	96,281		$	60,938		$	278,266		$	209,811
Joint Venture		9,285			11,377			22,790			23,631
	$	105,566		$	72,315		$	301,056		$	233,442
Capital Expenditures
Cement	$	11,571		$	7,278		$	38,288		$	21,157
Concrete and Aggregates		1,207			2,128			10,281			16,468
Gypsum Wallboard		7,386			7,307			23,866			19,777
Recycled Paperboard		1,868			463			7,733			2,318
Corporate and Other		403			526			7,680			1,231
	$	22,435		$	17,702		$	87,848		$	60,951
Depreciation, Depletion, and Amortization
Cement	$	22,514		$	20,582		$	66,380		$	60,893
Concrete and Aggregates		4,857			4,402			14,850			12,954
Gypsum Wallboard		5,611			5,387			16,620			16,539
Recycled Paperboard		3,694			3,738			11,121			11,197
Corporate and Other		792			706			2,376			2,106
	$	37,468		$	34,815		$	111,347		$	103,689

	December 31,		March 31,
	2023		2023
	(dollars in thousands)
Identifiable Assets
Cement	$	1,997,649	$	1,905,227
Concrete and Aggregates		229,998		234,767
Gypsum Wallboard		412,092		421,425
Recycled Paperboard		168,120		163,797
Other, net		82,481		55,786
	$	2,890,340	$	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:

	December 31,		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 December 31,				For the Nine Months Ended December 31,
	2023		2022		2023		2022
	(dollars in thousands)				(dollars in thousands)
Revenue	$	53,366	$	55,240	$	165,426	$	158,129
Gross Margin	$	19,465	$	24,716	$	51,512	$	52,718
Earnings Before Income Taxes	$	18,711	$	22,754	$	45,925	$	47,262

	December 31,		March 31,
	2023		2023
	(dollars in thousands)
Current Assets	$	104,158	$	88,562
Noncurrent Assets	$	150,950	$	124,503
Current Liabilities	$	40,621	$	29,434