Condensed Consolidating Financial Information (Tables)

6 Months Ended

Nov. 30, 2013



In thousands	Texas Industries, Inc.		Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Condensed consolidating balance sheet at November 30, 2013 (unaudited)
Cash and cash equivalents	$	78,070	$	4,292	$	—		$	82,362
Receivables – net	—		122,382		—			122,382
Inventories	—		112,557		—			112,557
Deferred income taxes and prepaid expenses	187		21,897		(155		)	21,929
Total current assets	78,257		261,128		(155		)	339,230
Property, plant and equipment – net	—		1,203,654		—			1,203,654
Goodwill	—		40,575		—			40,575
Real estate and investments	2,176		29,406		—			31,582
Deferred income taxes and other charges	210,443		7,888		(200,281		)	18,050
Investment in subsidiaries	1,081,369		—		(1,081,369		)	—
Long-term intercompany receivables	117,090		18,737		(135,827		)	—
Total assets	$	1,489,335	$	1,561,388	$	(1,417,632	)	$	1,633,091
Accounts payable	$	60	$	73,883	$	—		$	73,943
Accrued interest, compensation and other	26,681		45,671		(155		)	72,197
Current portion of long-term debt	—		2,229		—			2,229
Total current liabilities	26,741		121,783		(155		)	148,369
Long-term debt	650,245		6,823		—			657,068
Long-term intercompany payables	18,729		117,098		(135,827		)	—
Deferred income taxes and other credits	51,933		234,315		(200,281		)	85,967
Shareholders’ equity	741,687		1,081,369		(1,081,369		)	741,687
Total liabilities and shareholders’ equity	$	1,489,335	$	1,561,388	$	(1,417,632	)	$	1,633,091



In thousands	Texas Industries, Inc.		Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Condensed consolidating balance sheet at May 31, 2013
Cash and cash equivalents	$	58,791	$	2,505	$	—		$	61,296
Receivables – net	—		126,922		—			126,922
Inventories	—		105,054		—			105,054
Deferred income taxes and prepaid expenses	615		26,834		(155		)	27,294
Total current assets	59,406		261,315		(155		)	320,566
Property, plant and equipment – net	—		1,226,396		—			1,226,396
Goodwill	—		40,575		—			40,575
Real estate and investments	1,080		28,391		—			29,471
Deferred income taxes and other charges	210,838		7,744		(199,765		)	18,817
Investment in subsidiaries	1,061,854		—		(1,061,854		)	—
Long-term intercompany receivables	167,778		18,743		(186,521		)	—
Total assets	$	1,500,956	$	1,583,164	$	(1,448,295	)	$	1,635,825
Accounts payable	$	46	$	69,015	$	—		$	69,061
Accrued interest, compensation and other	26,416		36,075		(155		)	62,336
Current portion of long-term debt	—		1,872		—			1,872
Total current liabilities	26,462		106,962		(155		)	133,269
Long-term debt	650,245		7,690		—			657,935
Long-term intercompany payables	18,743		167,778		(186,521		)	—
Deferred income taxes and other credits	52,042		238,880		(199,765		)	91,157
Shareholders’ equity	753,464		1,061,854		(1,061,854		)	753,464
Total liabilities and shareholders’ equity	$	1,500,956	$	1,583,164	$	(1,448,295	)	$	1,635,825

Condensed Consolidating Statement of Operations



In thousands	Texas Industries, Inc.			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Condensed consolidating statement of operations and comprehensive income for the three months ended November 30, 2013 (unaudited)
Net sales	$	—		$	208,892		$	—		$	208,892
Cost of products sold	—			194,735			—			194,735
Gross profit	—			14,157			—			14,157
Selling, general and administrative	1,993			17,662			—			19,655
Interest	17,301			—			122			17,423
Other income, net	(14		)	(5,392		)	—			(5,406		)
Intercompany other (income) loss	(873		)	995			(122		)	—
Income (loss) from continuing operations before the following items	(18,407		)	892			—			(17,515		)
Income taxes (benefit)	(125		)	250			—			125
Equity in earnings of subsidiaries	642			—			(642		)	—
Net income (loss) from continuing operations	(17,640		)	642			(642		)	(17,640		)
Net loss from discontinued operations, net of tax	—			—			—			—
Net income (loss)	$	(17,640	)	$	642		$	(642	)	$	(17,640	)
Comprehensive income (loss)	$	(17,640	)	$	651		$	(642	)	$	(17,631	)



In thousands	Texas Industries, Inc.			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Condensed consolidating statement of operations and comprehensive income for the three months ended November 30, 2012 (unaudited)
Net sales	$	—		$	167,693		$	—		$	167,693
Cost of products sold	—			155,939			—			155,939
Gross profit	—			11,754			—			11,754
Selling, general and administrative	2,330			14,737			—			17,067
Interest	17,248			—			(9,791		)	7,457
Other income, net	(26		)	(1,898		)	—			(1,924		)
Intercompany other (income) loss	(874		)	(8,917		)	9,791			—
Income (loss) from continuing operations before the following items	(18,678		)	7,832			—			(10,846		)
Income taxes (benefit)	(143		)	(514		)	—			(657		)
Equity in earnings of subsidiaries	7,413			—			(7,413		)	—
Net income (loss) from continuing operations	(11,122		)	8,346			(7,413		)	(10,189		)
Net loss from discontinued operations, net of tax	—			(933		)	—			(933		)
Net income (loss)	$	(11,122	)	$	7,413		$	(7,413	)	$	(11,122	)
Comprehensive income (loss)	$	(11,122	)	$	7,510		$	(7,413	)	$	(11,025	)



In thousands	Texas Industries, Inc.			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Condensed consolidating statement of operations comprehensive income for the six months ended November 30, 2013 (unaudited)
Net sales	$	—		$	441,974		$	—		$	441,974
Cost of products sold	—			397,151			—			397,151
Gross profit	—			44,823			—			44,823
Selling, general and administrative	4,459			33,748			—			38,207
Interest	34,573			—			221			34,794
Other income, net	(58		)	(11,205		)	—			(11,263		)
Intercompany other (income) loss	(1,755		)	1,976			(221		)	—
Income (loss) from continuing operations before the following items	(37,219		)	20,304			—			(16,915		)
Income taxes (benefit)	(515		)	810			—			295
Equity in earnings of subsidiaries	19,494			—			(19,494		)	—
Net income (loss) from continuing operations	$	(17,210	)	$	19,494		$	(19,494	)	$	(17,210	)
Net income (loss) from discontinued operations, net of tax	$	—		$	—		$	—		$	—
Net income (loss)	$	(17,210	)	$	19,494		$	(19,494	)	$	(17,210	)
Comprehensive income (loss)	$	(17,210	)	$	19,514		$	(19,494	)	$	(17,190	)



In thousands	Texas Industries, Inc.			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Condensed consolidating statement of operations comprehensive loss for the six months ended November 30, 2012 (unaudited)
Net sales	$	—		$	342,216		$	—		$	342,216
Cost of products sold	—			315,262			—			315,262
Gross profit	—			26,954			—			26,954
Selling, general and administrative	4,684			29,939			—			34,623
Interest	34,236			—			(19,001		)	15,235
Other income, net	(49		)	(4,476		)	—			(4,525		)
Intercompany other (income) loss	(1,755		)	(17,246		)	19,001			—
Income (loss) from continuing operations before the following items	(37,116		)	18,737			—			(18,379		)
Income taxes (benefit)	(76		)	(720		)	—			(796		)
Equity in earnings of subsidiaries	23,262			—			(23,262		)	—
Net income (loss) from continuing operations	(13,778		)	19,457			(23,262		)	(17,583		)
Net income from discontinued operations, net of tax	—			3,805			—			3,805
Net income (loss)	$	(13,778	)	$	23,262		$	(23,262	)	$	(13,778	)
Comprehensive Income (loss)	$	(13,778	)	$	23,727		$	(23,262	)	$	(13,313	)

Condensed Consolidating Statement of Cash Flows



In thousands	Texas Industries, Inc.			Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Condensed consolidating statement of cash flows for the six months ended November 30, 2013 (unaudited)
Net cash provided (used) by operating activities	$	64,720		$	(31,515	)	$	—	$	33,205
Investing activities
Capital expenditures – expansions	—			(7,125		)	—		(7,125		)
Capital expenditures – other	—			(17,295		)	—		(17,295		)
Proceeds from asset disposals	—			7,682			—		7,682
Proceeds from insurance contracts, net of premiums paid	4,059			—			—		4,059
Net cash provided (used) by investing activities	4,059			(16,738		)	—		(12,679		)
Financing activities
Debt payments	—			(910		)	—		(910		)
Stock option exercises	1,450			—			—		1,450
Net intercompany financing activities	(50,950		)	50,950			—		—
Net cash provided (used) by financing activities	(49,500		)	50,040			—		540
Increase in cash and cash equivalents	19,279			1,787			—		21,066
Cash and cash equivalents at beginning of period	58,791			2,505			—		61,296
Cash and cash equivalents at end of period	$	78,070		$	4,292		$	—	$	82,362



In thousands	Texas Industries, Inc.			Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Condensed consolidating statement of cash flows for the six months ended November 30, 2012 (unaudited)
Net cash provided (used) by operating activities	$	(37,559	)	$	62,537		$	—	$	24,978
Investing activities
Capital expenditures – expansions	—			(36,118		)	—		(36,118		)
Capital expenditures – other	—			(10,845		)	—		(10,845		)
Proceeds from asset disposals	—			3,958			—		3,958
Proceeds from insurance contracts, net of premiums paid	2,366			—			—		2,366
Other – net	—			(88		)	—		(88		)
Net cash provided (used) by investing activities	2,366			(43,093		)	—		(40,727		)
Financing activities
Debt payments	(8		)	(1,577		)	—		(1,585		)
Stock option exercises	1,089			—			—		1,089
Net intercompany financing activities	17,755			(17,755		)	—		—
Net cash provided (used) by financing activities	18,836			(19,332		)	—		(496		)
Increase (decrease) in cash and cash equivalents	(16,357		)	112			—		(16,245		)
Cash and cash equivalents at beginning of period	84,713			3,314			—		88,027
Cash and cash equivalents at end of period	$	68,356		$	3,426		$	—	$	71,782