VULCAN MATERIALS CO, 10-Q filed on 7/29/2019
Quarterly Report
v3.19.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2019
Jul. 25, 2019
Document and Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2019  
Document Transition Report false  
Document Fiscal Year Focus 2019  
Entity File Number 001-33841  
Document Fiscal Period Focus Q2  
Entity Registrant Name VULCAN MATERIALS COMPANY  
Entity Central Index Key 0001396009  
Current Fiscal Year End Date --12-31  
Entity Tax Identification Number 20-8579133  
Entity Address, Address Line One 1200 Urban Center Drive  
Entity Address, City or Town Birmingham  
Entity Address, Postal Zip Code 35242  
Entity Address, State or Province AL  
Entity Incorporation, State or Country Code NJ  
City Area Code 205  
Local Phone Number 298-3000  
Title of 12(b) Security Common Stock, $1 par value  
Trading Symbol VMC  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   132,286,856
v3.19.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Jun. 30, 2018
Assets      
Cash and cash equivalents $ 26,031 $ 40,037 $ 55,059
Restricted cash 491 4,367 6,056
Accounts and notes receivable      
Accounts and notes receivable, gross 700,175 542,868 640,742
Allowance for doubtful accounts (2,844) (2,090) (2,628)
Accounts and notes receivable, net 697,331 540,778 638,114
Inventories      
Finished products 377,578 372,604 343,948
Raw materials 31,137 27,942 29,684
Products in process 6,332 3,064 1,882
Operating supplies and other 26,376 25,720 28,250
Inventories 441,423 429,330 403,764
Other current assets 89,739 64,633 80,209
Total current assets 1,255,015 1,079,145 1,183,202
Investments and long-term receivables 51,667 44,615 41,989
Property, plant & equipment      
Property, plant & equipment, cost 8,613,500 8,457,619 8,241,164
Allowances for depreciation, depletion & amortization (4,322,818) (4,220,312) (4,134,750)
Property, plant & equipment, net 4,290,682 4,237,307 4,106,414
Operating lease right-of-use assets, net 418,896 0 0
Goodwill 3,167,061 3,165,396 3,163,954
Other intangible assets, net 1,076,986 1,095,378 1,156,898
Other noncurrent assets 220,457 210,289 192,327
Total assets 10,480,764 9,832,130 9,844,784
Liabilities      
Current maturities of long-term debt 24 23 23
Short-term debt 137,000 133,000 360,000
Trade payables and accruals 284,875 216,473 231,913
Other current liabilities 241,689 253,054 219,860
Total current liabilities 663,588 602,550 811,796
Long-term debt 2,781,826 2,779,357 2,776,906
Deferred income taxes, net 601,189 567,283 545,756
Deferred revenue 182,666 186,397 188,826
Operating lease liabilities 396,952 0 0
Other noncurrent liabilities 483,096 493,640 500,870
Total liabilities 5,109,317 4,629,227 4,824,154
Other commitments and contingencies (Note 8)
Equity      
Common stock, $1 par value, Authorized 480,000 shares, Outstanding 132,231, 131,762, and 132,268 shares, respectively 132,231 131,762 132,268
Capital in excess of par value 2,787,002 2,798,486 2,788,486
Retained earnings 2,623,747 2,444,870 2,244,545
Accumulated other comprehensive loss (171,533) (172,215) (144,669)
Total equity 5,371,447 5,202,903 5,020,630
Total liabilities and equity $ 10,480,764 $ 9,832,130 $ 9,844,784
v3.19.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2019
Dec. 31, 2018
Jun. 30, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract]      
Common stock, par value $ 1 $ 1 $ 1
Common stock, shares authorized 480,000,000 480,000,000 480,000,000
Common stock, shares outstanding 132,231,000 131,762,000 132,268,000
v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]        
Total revenues [1] $ 1,327,682 $ 1,200,151 $ 2,324,193 $ 2,054,625
Cost of revenues 957,180 876,967 1,762,016 1,572,106
Gross profit 370,502 323,184 562,177 482,519
Selling, administrative and general expenses 95,689 89,043 185,957 167,383
Gain on sale of property, plant & equipment and businesses 3,451 2,106 10,748 6,270
Other operating expense, net (2,190) (5,994) (6,461) (9,969)
Operating earnings 276,074 230,253 380,507 311,437
Other nonoperating income, net 2,466 3,339 5,595 8,421
Interest expense, net 33,035 33,244 65,969 71,018
Earnings from continuing operations before income taxes 245,505 200,348 320,133 248,840
Income tax expense (benefit) 47,598 40,046 58,291 35,143
Earnings from continuing operations 197,907 160,302 261,842 213,697
Loss on discontinued operations, net of tax (349) (650) (985) (1,066)
Net earnings 197,558 159,652 260,857 212,631
Other comprehensive income, net of tax        
Deferred gain on interest rate derivative 0 0 0 2,496
Amortization of prior interest rate derivative loss 56 52 111 118
Amortization of actuarial loss and prior service cost for benefit plans 336 1,092 571 2,183
Other comprehensive income 392 1,144 682 4,797
Comprehensive income $ 197,950 $ 160,796 $ 261,539 $ 217,428
Basic earnings (loss) per share        
Continuing operations $ 1.50 $ 1.21 $ 1.98 $ 1.61
Discontinued operations (0.01) 0.00 (0.01) (0.01)
Net earnings 1.49 1.21 1.97 1.60
Diluted earnings (loss) per share        
Continuing operations 1.48 1.20 1.97 1.59
Discontinued operations 0.00 (0.01) (0.01) (0.01)
Net earnings $ 1.48 $ 1.19 $ 1.96 $ 1.58
Weighted-average common shares outstanding        
Basic 132,269 132,437 132,157 132,563
Assuming dilution 133,354 134,051 133,199 134,280
Depreciation, depletion, accretion and amortization $ 93,497 $ 85,633 $ 182,677 $ 167,072
Effective tax rate from continuing operations 19.40% 20.00% 18.20% 14.10%
[1]

1

The geographic markets are defined by states/countries as follows:

East market — Arkansas, Delaware, Illinois, Kentucky, Maryland, North Carolina, Pennsylvania, Tennessee, Virginia, and Washington D.C.

Gulf Coast marketAlabama, Florida, Georgia, Louisiana, Mexico, Mississippi, Oklahoma, South Carolina, Texas and the Bahamas

West market — Arizona, California and New Mexico

v3.19.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Operating Activities    
Net earnings $ 260,857 $ 212,631
Adjustments to reconcile net earnings to net cash provided by operating activities    
Depreciation, depletion, accretion and amortization 182,677 167,072
Net gain on sale of property, plant & equipment and businesses (10,748) (6,270)
Contributions to pension plans (4,638) (104,794)
Share-based compensation expense 14,370 14,763
Deferred tax expense (benefit) 34,816 40,549
Cost of debt purchase 0 6,922
Changes in assets and liabilities before initial effects of business acquisitions and dispositions (201,256) (55,415)
Other, net 25,838 302
Net cash provided by operating activities 301,916 275,760
Investing Activities    
Purchases of property, plant & equipment (225,837) (247,166)
Proceeds from sale of property, plant & equipment 11,200 8,523
Proceeds from sale of businesses 1,744 11,256
Payment for businesses acquired, net of acquired cash 1,122 (218,996)
Other, net (4,577) (10,226)
Net cash used for investing activities (216,348) (456,609)
Financing Activities    
Proceeds from short-term debt 360,100 506,200
Payment of short-term debt (356,100) (146,200)
Payment of current maturities and long-term debt (11) (892,044)
Proceeds from issuance of long-term debt 0 850,000
Debt issuance and exchange costs 0 (45,513)
Settlements of interest rate derivatives 0 3,378
Purchases of common stock 0 (74,921)
Dividends paid (81,927) (74,196)
Share-based compensation, shares withheld for taxes (25,512) (31,386)
Net cash (used for) provided by financing activities (103,450) 95,318
Net decrease in cash and cash equivalents and restricted cash (17,882) (85,531)
Cash and cash equivalents and restricted cash at beginning of year 44,404 146,646
Cash and cash equivalents and restricted cash at end of period $ 26,522 $ 61,115
v3.19.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Note 1: summary of significant accounting policies

NATURE OF OPERATIONS

Vulcan Materials Company (the “Company,” “Vulcan,” “we,” “our”), a New Jersey corporation, is the nation's largest supplier of construction aggregates (primarily crushed stone, sand and gravel) and a major producer of asphalt mix and ready-mixed concrete.

We operate primarily in the United States and our principal product — aggregates — is used in virtually all types of public and private construction projects and in the production of asphalt mix and ready-mixed concrete. We serve markets in twenty states, Washington D.C., and the local markets surrounding our operations in Mexico and the Bahamas. Our primary focus is serving metropolitan markets in the United States that are expected to experience the most significant growth in population, households and employment. These three demographic factors are significant drivers of demand for aggregates. While aggregates is our focus and primary business, we produce and sell asphalt mix and/or ready-mixed concrete in our Alabama, mid-Atlantic, Southwestern, Tennessee and Western markets.

BASIS OF PRESENTATION

Our accompanying unaudited condensed consolidated financial statements were prepared in compliance with the instructions to Form 10-Q and Article 10 of Regulation S-X and thus do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements. We prepared the accompanying condensed consolidated financial statements on the same basis as our annual financial statements, except for the adoption of new accounting standards as described in Note 17. Our Condensed Consolidated Balance Sheet as of December 31, 2018 was derived from the audited financial statement, but it does not include all disclosures required by GAAP. In the opinion of our management, the statements reflect all adjustments, including those of a normal recurring nature, necessary to present fairly the results of the reported interim periods. Operating results for the three and six month periods ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. For further information, refer to the consolidated financial statements and footnotes included in our most recent Annual Report on Form 10-K.

Due to the 2005 sale of our Chemicals business as described within this Note under the caption Discontinued Operations, the results of the Chemicals business are presented as discontinued operations in the accompanying Condensed Consolidated Statements of Comprehensive Income.

RESTRICTED CASH

Restricted cash consists of cash proceeds from the sale of property held in escrow for the acquisition of replacement property under like-kind exchange agreements and cash reserved by other contractual agreements (such as asset purchase agreements) for a specified purpose and therefore is not available for use for other purposes. The escrow accounts are administered by an intermediary. Cash restricted pursuant to like-kind exchange agreements remains restricted for a maximum of 180 days from the date of the property sale pending the acquisition of replacement property. Restricted cash is included with cash and cash equivalents in the accompanying Condensed Consolidated Statements of Cash Flows.

LEASES

Beginning in 2019 (see ASU 2016-02, “Leases,” as presented in Note 17), our nonmineral leases are recognized on the balance sheet as right-of-use (ROU) assets and lease liabilities. Mineral leases continue to be exempt from balance sheet recognition.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. ROU assets are adjusted for any prepaid lease payments and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

We elected the following practical expedients: (1) the practical expedient package which permits us to not reassess our prior conclusions about lease identification, lease classification, and initial direct costs; (2) to not separate the lease components from the non-lease components for all leases; (3) to apply a portfolio approach to our railcar and barge leases; (4) to not recognize ROU assets and lease liabilities for all pre-existing land easements not previously accounted for as leases; and (5) to not recognize ROU assets or lease liabilities for our short-term leases, including existing short-term leases of those assets in transition.

For additional information about leases see Note 2.

DISCONTINUED OPERATIONS

In 2005, we sold substantially all the assets of our Chemicals business to Basic Chemicals, a subsidiary of Occidental Chemical Corporation. The financial results of the Chemicals business are classified as discontinued operations in the accompanying Condensed Consolidated Statements of Comprehensive Income for all periods presented. Results from discontinued operations are as follows:

Three Months Ended

Six Months Ended

June 30

June 30

in thousands

2019

2018

2019

2018

Discontinued Operations

Pretax loss

$          (701)

$          (883)

$       (1,339)

$       (1,449)

Income tax benefit

352 

233 

354 

383 

Loss on discontinued operations,

net of tax

$          (349)

$          (650)

$          (985)

$       (1,066)

Our discontinued operations include charges related to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business (including certain matters as discussed in Note 8). There were no revenues from discontinued operations for the periods presented.

EARNINGS PER SHARE (EPS)

Earnings per share are computed by dividing net earnings by the weighted-average common shares outstanding (basic EPS) or weighted-average common shares outstanding assuming dilution (diluted EPS), as set forth below:

Three Months Ended

Six Months Ended

June 30

June 30

in thousands

2019

2018

2019

2018

Weighted-average common shares

outstanding

132,269 

132,437 

132,157 

132,563 

Dilutive effect of

Stock-Only Stock Appreciation Rights

723 

583 

723 

636 

Other stock compensation plans

362 

1,031 

319 

1,081 

Weighted-average common shares

outstanding, assuming dilution

133,354 

134,051 

133,199 

134,280 

All dilutive common stock equivalents are reflected in our earnings per share calculations. In periods of loss, shares that otherwise would have been included in our diluted weighted-average common shares outstanding computation would be excluded.

Antidilutive common stock equivalents are not included in our earnings per share calculations. The number of antidilutive common stock equivalents for which the exercise price exceeds the weighted-average market price is as follows:

Three Months Ended

Six Months Ended

June 30

June 30

in thousands

2019

2018

2019

2018

Antidilutive common stock equivalents

192 

157 

220 

155 

 

 
v3.19.2
LEASES
6 Months Ended
Jun. 30, 2019
LEASES [Abstract]  
LEASES Note 2: Leases

Operating lease-related assets and liabilities (we do not have any material finance leases) reflected on our June 30, 2019 balance sheet and the weighted-average lease term and discount rate are as follows:

June 30

in thousands

Classification on the Balance Sheet

2019

Assets

Operating lease right-of-use assets

$     435,672 

Accumulated amortization

(16,776)

Total lease assets

Operating lease right-of-use assets, net

$     418,896 

Liabilities

Current

Operating

Other current liabilities

$       31,357 

Noncurrent

Operating

Operating lease liabilities

396,952 

Total lease liabilities

$     428,309 

Lease Term and Discount Rate

Weighted-average remaining lease term (years)

Operating leases

10.0 

Weighted-average discount rate

Operating leases

4.4%

Our portfolio of nonmineral leases is composed almost entirely of operating leases for real estate (including office buildings, aggregates sales yards, and concrete and asphalt sites) and equipment (including railcars and rail track, barges, office equipment and plant equipment).

Our building leases have remaining noncancelable periods of 1 - 30 years, and lease terms (including options to extend) of 1 - 30 years. Key factors in determining the certainty of lease renewals include the location of the building, the value of leasehold improvements and the cost to relocate. Rental payments for certain of our building leases are periodically adjusted for inflation and this variable component is recognized as expense when incurred. Many of our building leases contain common area maintenance charges which we include in the calculation of our lease liability (the lease consideration is not allocated between the lease and non-lease components).

Our aggregates sales yard leases have remaining noncancelable periods of 0 - 13 years, and lease terms of 2 - 80 years. The key factor in determining the certainty of lease renewals is the financial impact of extending the lease, including the reserve life of the sourcing aggregates quarry. Certain aggregates sales yard lease agreements include rental payments based on a percentage of sales over contractual levels or the number of shipments received into the sales yard. Variable payments for these sales yards comprise a majority of the overall variable lease cost presented in the table below.

Our concrete and asphalt site leases have remaining noncancelable periods of 0 - 97 years, and lease terms of 1 - 97 years. The key factor in determining the certainty of lease renewals is the financial impact of extending the lease, including the reserve life of the sourcing aggregates quarry. Rental payments are generally fixed for our concrete and asphalt sites.

Our rail (car and track) leases have remaining noncancelable periods of 0 - 7 years, and lease terms of 2 - 76 years. Key factors in determining the certainty of lease renewals include the market rental rate for comparable assets and, in some cases, the cost incurred to restore the asset. Rental payments are fixed for our rail leases. The majority of our rail leases contain substitution rights that allow the supplier to replace damaged equipment. Because these rights are generally limited to either replacing railcars or moving our placement on rail track for purposes of repair or maintenance, we do not consider these substitution rights to be substantive and have recorded a lease liability and ROU asset for all leased rail.

Our barge leases have remaining noncancelable periods of 2 - 3 years, and lease terms of 10 - 16 years. Key factors in determining the certainty of lease renewals include the market rental rate for comparable assets and, in some cases, the cost incurred to restore the asset. Rental payments are fixed. Like our rail leases, our barge leases contain non-substantive substitution rights that are limited to replacing barges in need of repair or maintenance.

Office and plant equipment leases have remaining noncancelable periods of 0 - 4 years, and lease terms of 0 - 4 years. The key factor in determining the certainty of lease renewals is the market rental rate for comparable assets. Rental payments are generally fixed for our equipment leases with terms greater than 1 year. The significant majority of our short-term lease cost presented in the table below is derived from office and plant equipment leases with terms of 1 year or less.

Our lease agreements do not contain material residual value guarantees or material termination options.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. The components of nonmineral operating lease expense are as follows:

Three Months Ended

Six Months Ended

June 30

June 30

in thousands

2019

2019

Lease cost

Operating lease cost

$       14,167 

$       28,294 

Short-term lease cost 1

7,922 

16,623 

Variable lease cost

3,489 

6,557 

Sublease income

(807)

(1,418)

Total lease cost

$       24,771 

$       50,056 

1

We have elected to recognize the cost of leases with an initial term of one month or less within our short-term lease cost.

Total nonmineral operating lease expense for the prior year’s three and six months ended June 30, 2018 was $21,968,000 and $46,320,000, respectively.

Cash paid for operating leases was $25,513,000 for the six months ended June 30, 2019 and was reflected as a reduction to operating cash flows.

Maturity analysis on an undiscounted basis of our nonmineral lease liabilities as of June 30, 2019 is as follows:

Operating

in thousands

Leases

Maturity of Lease Liabilities

2019 (remainder)

$       26,537 

2020

49,740 

2021

45,807 

2022

40,760 

2023

36,203 

Thereafter

606,079 

Total minimum lease payments

$     805,126 

Less: Lease payments representing interest

376,817 

Present value of future minimum lease payments

$     428,309 

Less: Current obligations under leases

31,357 

Long-term lease obligations

$     396,952 

Future minimum operating lease payments under leases with initial or remaining noncancelable lease terms in excess of one year, exclusive of mineral leases, as of December 31, 2018 were payable as follows:

in thousands

Future Minimum Operating Lease Payments

2019

$       47,979 

2020

43,540 

2021

35,732 

2022

27,463 

2023

19,707 

Thereafter

195,104 

Total

$     369,525 

 

 
v3.19.2
INCOME TAXES
6 Months Ended
Jun. 30, 2019
INCOME TAXES [Abstract]  
INCOME TAXES Note 3: Income Taxes

Our estimated annual effective tax rate (EAETR) is based on full-year expectations of pretax earnings, statutory tax rates, permanent differences between book and tax accounting such as percentage depletion, and tax planning alternatives available in the various jurisdictions in which we operate. For interim financial reporting, we calculate our quarterly income tax provision in accordance with the EAETR. Each quarter, we update our EAETR based on our revised full-year expectation of pretax earnings and calculate the income tax provision so that the year-to-date income tax provision reflects the EAETR. Significant judgment is required in determining our EAETR.

In the second quarter of 2019, we recorded income tax expense from continuing operations of $47,598,000 compared to income tax expense from continuing operations of $40,046,000 in the second quarter of 2018. The increase in tax expense was related to an increase in earnings, partially offset by an increase in share-based compensation excess tax benefits quarter-over-quarter.

For the first six months of 2019, we recorded income tax expense from continuing operations of $58,291,000 compared to income tax expense from continuing operations of $35,143,000 for the first six months of 2018. The increase in tax expense was related to an increase in earnings along with a decrease in share-based compensation excess tax benefits as compared to the same period in 2018.

We recognize deferred tax assets and liabilities (which reflect our best assessment of the future taxes we will pay) based on the differences between the book basis and tax basis of assets and liabilities. Deferred tax assets represent items to be used as a tax deduction or credit in future tax returns while deferred tax liabilities represent items that will result in additional tax in future tax returns.

Each quarter we analyze the likelihood that our deferred tax assets will be realized. A valuation allowance is recorded if, based on the weight of all available positive and negative evidence, it is more likely than not (a likelihood of more than 50%) that some portion, or all, of a deferred tax asset will not be realized. At December 31, 2019, we project state net operating loss carryforward deferred tax assets of $67,598,000 ($64,718,000 relates to Alabama), against which we project to have a valuation allowance of $29,678,000 ($29,183,000 relates to Alabama). The Alabama net operating loss carryforward, if not utilized, would expire in years 20232032.

We recognize a tax benefit associated with a tax position when, in our judgment, it is more likely than not that the position will be sustained based upon the technical merits of the position. For a tax position that meets the more likely than not recognition threshold, we measure the income tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized. A liability is established for the unrecognized portion of any tax benefit. Our liability for unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation.

A summary of our deferred tax assets is included in Note 9 “Income Taxes” in our Annual Report on Form 10-K for the year ended December 31, 2018.

 

 
v3.19.2
REVENUES
6 Months Ended
Jun. 30, 2019
REVENUES [Abstract]  
REVENUES Note 4: revenueS

Revenues are measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales and other taxes we collect are excluded from revenues. Costs to obtain and fulfill contracts (primarily asphalt construction paving contracts) are immaterial and are expensed as incurred when the expected amortization period is one year or less.

Total revenues are primarily derived from our product sales of aggregates (crushed stone, sand and gravel, sand and other aggregates), asphalt mix and ready-mixed concrete, and include freight & delivery costs that we pass along to our customers to deliver these products. We also generate service revenues from our asphalt construction paving business and service revenues related to our aggregates business, such as landfill tipping fees. Our total service revenues were $65,257,000 and $56,103,000 for the three months ended June 30, 2019 and 2018, respectively, and $99,772,000 and $74,742,000 for the six months ended June 30, 2019 and 2018, respectively.

Our products typically are sold to private industry and not directly to governmental entities. Although approximately 45% to 55% of our aggregates shipments have historically been used in publicly funded construction, such as highways, airports and government buildings, relatively insignificant sales are made directly to federal, state, county or municipal governments/agencies. Therefore, although reductions in state and federal funding can curtail publicly-funded construction,

our aggregates business is not directly subject to renegotiation of profits or termination of contracts with state or federal governments.

Our segment total revenues by geographic market for the three and six month periods ended June 30, 2019 and 2018 are disaggregated as follows:

Three Months Ended June 30, 2019

in thousands

Aggregates

Asphalt

Concrete

Calcium

Total

Total Revenues by Geographic Market 1

East

$     339,351 

$     46,392 

$     70,871 

$              0 

$      456,614 

Gulf Coast

553,746 

56,727 

14,865 

2,003 

627,341 

West

168,964 

144,044 

18,032 

0 

331,040 

Segment sales

$  1,062,061 

$   247,163 

$   103,768 

$       2,003 

$   1,414,995 

Intersegment sales

(87,313)

0 

0 

0 

(87,313)

Total revenues

$     974,748 

$   247,163 

$   103,768 

$       2,003 

$   1,327,682 

Three Months Ended June 30, 2018

in thousands

Aggregates

Asphalt

Concrete

Calcium

Total

Total Revenues by Geographic Market 1

East

$     313,245 

$     49,339 

$     69,605 

$              0 

$      432,189 

Gulf Coast

493,696 

38,845 

18,354 

2,282 

553,177 

West

149,324 

123,644 

18,764 

0 

291,732 

Segment sales

$     956,265 

$   211,828 

$   106,723 

$       2,282 

$   1,277,098 

Intersegment sales

(76,947)

0 

0 

0 

(76,947)

Total revenues

$     879,318 

$   211,828 

$   106,723 

$       2,282 

$   1,200,151 

Six Months Ended June 30, 2019

in thousands

Aggregates

Asphalt

Concrete

Calcium

Total

Total Revenues by Geographic Market 1

East

$     564,253 

$     64,608 

$   125,587 

$              0 

$      754,448 

Gulf Coast

1,050,381 

93,779 

31,370 

3,954 

1,179,484 

West

282,392 

220,866 

30,448 

0 

533,706 

Segment sales

$  1,897,026 

$   379,253 

$   187,405 

$       3,954 

$   2,467,638 

Intersegment sales

(143,445)

0 

0 

0 

(143,445)

Total revenues

$  1,753,581 

$   379,253 

$   187,405 

$       3,954 

$   2,324,193 

Six Months Ended June 30, 2018

in thousands

Aggregates

Asphalt

Concrete

Calcium

Total

Total Revenues by Geographic Market 1

East

$     496,459