SEGMENT INFORMATION

3 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION

(M) SEGMENT INFORMATION

Operating segments are defined as components of an enterprise engaged 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 to build, expand, and repair roads and buildings; and all repair and remodel activities. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. We distribute our products across many United States markets, 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 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 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 June 30,
	2024			2023
	(dollars in thousands)
Revenue
Cement	$	339,162		$	329,032
Concrete and Aggregates		64,815			70,453
Gypsum Wallboard		217,826			219,097
Recycled Paperboard		54,240			45,328
		676,043			663,910
Less: Intersegment Revenue		(38,044	)		(35,266	)
Less: Joint Venture Revenue		(29,310	)		(27,123	)
	$	608,689		$	601,521

	For the Three Months Ended June 30,
	2024		2023
	(dollars in thousands)
Intersegment Revenue
Cement	$	10,280	$	10,137
Concrete and Aggregates		3,777		3,038
Recycled Paperboard		23,987		22,091
	$	38,044	$	35,266
Cement Sales Volume (M tons)
Wholly Owned		1,767		1,848
Joint Venture		180		165
		1,947		2,013

	For the Three Months Ended June 30,
	2024			2023
	(dollars in thousands)
Operating Earnings
Cement	$	89,125		$	74,061
Concrete and Aggregates		2,980			7,034
Gypsum Wallboard		93,976			90,857
Recycled Paperboard		8,503			7,202
Sub-Total		194,584			179,154
Corporate General and Administrative Expense		(15,649	)		(11,679	)
Other Non-Operating Income (Loss)		2,683			213
Earnings Before Interest and Income Taxes		181,618			167,688
Interest Expense, net		(10,684	)		(12,239	)
Earnings Before Income Taxes	$	170,934		$	155,449
Cement Operating Earnings
Wholly Owned	$	81,409		$	70,902
Joint Venture		7,716			3,159
	$	89,125		$	74,061
Capital Expenditures
Cement	$	18,794		$	18,368
Concrete and Aggregates		6,589			3,220
Gypsum Wallboard		3,280			11,028
Recycled Paperboard		3,561			3,268
Corporate and Other		904			115
	$	33,128		$	35,999
Depreciation, Depletion, and Amortization
Cement	$	22,917		$	21,679
Concrete and Aggregates		4,530			5,031
Gypsum Wallboard		6,473			5,461
Recycled Paperboard		3,690			3,719
Corporate and Other		740			792
	$	38,350		$	36,682

	June 30,		March 31,
	2024		2024
	(dollars in thousands)
Identifiable Assets
Cement	$	2,121,374	$	2,042,499
Concrete and Aggregates		242,607		225,485
Gypsum Wallboard		429,773		432,122
Recycled Paperboard		167,405		170,832
Other, net		81,708		76,081
	$	3,042,867	$	2,947,019

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,
	2024		2024
	(dollars in thousands)
Cement	$	227,639	$	227,639
Concrete and Aggregates		40,774		40,774
Gypsum Wallboard		116,618		116,618
Recycled Paperboard		7,538		7,538
	$	392,569	$	392,569

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,
	2024		2023
	(dollars in thousands)
Revenue	$	58,620	$	54,246
Gross Margin	$	16,424	$	8,538
Earnings Before Income Taxes	$	15,548	$	6,364

	June 30,		March 31,
	2024		2024
	(dollars in thousands)
Current Assets	$	123,487	$	111,164
Noncurrent Assets	$	172,875	$	158,618
Current Liabilities	$	49,102	$	27,994