Business Segments

12 Months Ended

May 31, 2013

Segment Reporting [Abstract]

Business Segments

Business Segments

We have three business segments: cement, aggregates and consumer products. Our business segments are managed separately along product lines. Through the cement segment we produce and sell gray portland cement as our principal product, as well as specialty cements. Through the aggregates segment we produce and sell stone, sand and gravel as our principal products. Previously, the aggregates segment included our expanded shale and clay lightweight aggregates which has been classified as discontinued operations in the current period and all prior periods. Therefore, amounts for these operations are not included in the information presented below. Through the consumer products segment we produce and sell ready-mix concrete as our principal product. We account for intersegment sales at market prices. Segment operating profit consists of net sales less operating costs and expenses. Corporate includes those administrative, financial, legal, human resources, environmental and real estate activities which are not allocated to operations and are excluded from segment operating profit. Identifiable assets by segment are those assets that are used in each segment’s operation. Corporate assets consist primarily of cash and cash equivalents, real estate and other financial assets not identified with a business segment.

The following is a summary of operating results and certain other financial data for our business segments.

In thousands	2013			2012			2011
Net sales
Cement
Sales to external customers	$	336,614		$	268,886		$	240,449
Intersegment sales	44,890			46,407			46,845
Aggregates
Sales to external customers	128,901			96,212			97,955
Intersegment sales	26,705			21,145			20,399
Consumer products
Sales to external customers	231,566			229,007			233,502
Intersegment sales	162			2,721			2,646
Eliminations	(71,757		)	(70,273		)	(69,890		)
Total net sales	$	697,081		$	594,105		$	571,906
Segment operating profit (loss)
Cement	$	44,062		$	20,488		$	(10,249	)
Aggregates	14,443			25,370			16,096
Consumer products	(10,132		)	25,035			(11,151		)
Total segment operating profit (loss)	48,373			70,893			(5,304		)
Corporate	(39,826		)	(35,771		)	(30,843		)
Interest	(32,807		)	(34,835		)	(47,583		)
Loss on debt retirements	—			—			(29,619		)
Income (loss) from continuing operations before income taxes	$	(24,260	)	$	287		$	(113,349	)
Identifiable assets
Cement	$	1,174,879		$	1,135,336		$	1,082,524
Aggregates	168,255			219,074			201,917
Consumer products	182,839			90,717			106,643
Corporate	109,852			131,801			159,927
Total assets	$	1,635,825		$	1,576,928		$	1,551,011
Depreciation, depletion and amortization
Cement	$	35,219		$	35,078		$	36,576
Aggregates	13,053			14,231			17,099
Consumer products	9,353			8,981			7,625
Corporate	988			1,148			1,133
Total depreciation, depletion and amortization	$	58,613		$	59,438		$	62,433

Capital expenditures
Cement	$	77,793	$	78,618	$	30,413
Aggregates	4,298		20,979		5,078
Consumer products	8,820		4,569		8,229
Corporate	1,607		1,817		917
Total capital expenditures	$	92,518	$	105,983	$	44,637
Net sales by product
Cement	$	301,106	$	232,007	$	209,586
Stone, sand and gravel	83,333		64,393		68,645
Ready-mix concrete	231,195		182,418		180,733
Other products	10,758		50,409		56,272
Delivery fees	70,689		64,878		56,670
Total net sales	$	697,081	$	594,105	$	571,906

All sales were made in the United States during the periods presented with no single customer representing more than ten percent of sales.

Cement segment operating profit includes a gain from the sales of emission credits associated with our Crestmore cement plant in Riverside, California of $2.5 million in 2012.

Consumer products operating profit includes a gain of $1.6 million in 2012 from the exchange of certain ready-mix operations in Houston, Texas for ready-mix and aggregates operations that serve the Austin, Texas metropolitan market.

Operating profit includes $2.0 million in restructuring charges in 2012, including $1.1 million associated with our cement operations, $0.4 million associated with our aggregate operations, $0.5 million associated with our ready-mix concrete operations. An additional $1.2 million in restructuring charges in 2012 is associated with our corporate activities.

Capital expenditures incurred in connection with the expansion of our Hunter, Texas cement plant was $75.3 million in 2013, $72.9 million in 2012 and $25.4 million in 2011, of which $38.5 million in 2013, $32.3 million in 2012 and $11.0 million in 2011 was capitalized interest paid.

Capital expenditures for normal replacement and upgrades of existing equipment and acquisitions to sustain existing operations were $25.4 million in 2013, $33.4 million in 2012 and $20.3 million in 2011, of which $18.0 million was incurred to acquire aggregate reserves in 2012.

All of our identifiable assets are located in the United States.