VULCAN MATERIALS CO, 10-Q filed on 5/6/2020
Quarterly Report
v3.20.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2020
Apr. 21, 2020
Document and Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2020  
Document Transition Report false  
Document Fiscal Year Focus 2020  
Entity File Number 001-33841  
Document Fiscal Period Focus Q1  
Entity Registrant Name VULCAN MATERIALS COMPANY  
Entity Central Index Key 0001396009  
Current Fiscal Year End Date --12-31  
Entity Incorporation, State or Country Code NJ  
Entity Tax Identification Number 20-8579133  
Entity Address, Address Line One 1200 Urban Center Drive  
Entity Address, City or Town Birmingham  
Entity Address, State or Province AL  
Entity Address, Postal Zip Code 35242  
City Area Code 205  
Local Phone Number 298-3000  
Title of 12(b) Security Common Stock, $1 par value  
Trading Symbol VMC  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   132,434,322
v3.20.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Assets      
Cash and cash equivalents $ 120,041 $ 271,589 $ 30,838
Restricted cash 232 2,917 270
Accounts and notes receivable      
Accounts and notes receivable, gross 601,182 573,241 563,084
Allowance for doubtful accounts (3,517) (3,125) (2,554)
Accounts and notes receivable, net 597,665 570,116 560,530
Inventories      
Finished products 403,612 391,666 369,743
Raw materials 33,676 31,318 27,951
Products in process 5,010 5,604 4,976
Operating supplies and other 28,449 29,720 26,727
Inventories 470,747 458,308 429,397
Other current assets 88,095 76,396 62,816
Total current assets 1,276,780 1,379,326 1,083,851
Investments and long-term receivables 57,987 60,709 50,952
Property, plant & equipment      
Property, plant & equipment, cost 8,907,788 8,749,217 8,559,549
Allowances for depreciation, depletion & amortization (4,506,700) (4,433,179) (4,284,211)
Property, plant & equipment, net 4,401,088 4,316,038 4,275,338
Operating lease right-of-use assets, net 420,930 408,189 426,381
Goodwill 3,167,061 3,167,061 3,161,842
Other intangible assets, net 1,083,515 1,091,475 1,085,398
Other noncurrent assets 222,021 225,995 213,090
Total assets 10,629,382 10,648,793 10,296,852
Liabilities      
Current maturities of long-term debt 25 25 24
Short-term debt 0 0 178,500
Trade payables and accruals 243,019 265,159 248,119
Other current liabilities 232,632 270,379 232,964
Total current liabilities 475,676 535,563 659,607
Long-term debt 2,785,566 2,784,315 2,780,589
Deferred income taxes, net 648,405 633,039 568,229
Deferred revenue 178,568 179,880 184,744
Operating lease liabilities 399,489 388,042 403,426
Other noncurrent liabilities 551,352 506,097 483,048
Total liabilities 5,039,056 5,026,936 5,079,643
Other commitments and contingencies (Note 8)
Equity      
Common stock, $1 par value, Authorized 480,000 shares, Outstanding 132,433, 132,371 and 132,069 shares, respectively 132,433 132,371 132,069
Capital in excess of par value 2,782,738 2,791,353 2,789,864
Retained earnings 2,885,084 2,895,871 2,467,201
Accumulated other comprehensive loss (209,929) (197,738) (171,925)
Total equity 5,590,326 5,621,857 5,217,209
Total liabilities and equity $ 10,629,382 $ 10,648,793 $ 10,296,852
v3.20.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
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 132,433,000 132,371,000 132,069,000
v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]    
Total revenues [1] $ 1,049,242 $ 996,511
Cost of revenues 847,519 804,836
Gross profit 201,723 191,675
Selling, administrative and general expenses 86,430 90,268
Gain on sale of property, plant & equipment and businesses 999 7,297
Other operating expense, net (3,991) (4,271)
Operating earnings 112,301 104,433
Other nonoperating income (expense), net (9,336) 3,129
Interest expense, net 30,773 32,934
Earnings from continuing operations before income taxes 72,192 74,628
Income tax expense 12,194 10,693
Earnings from continuing operations 59,998 63,935
Earnings (loss) on discontinued operations, net of tax 260 (636)
Net earnings 60,258 63,299
Other comprehensive income, net of tax    
Deferred loss on interest rate derivative (14,680) 0
Amortization of prior interest rate derivative loss 794 55
Amortization of actuarial loss and prior service cost for benefit plans 1,695 235
Other comprehensive income (loss) (12,191) 290
Comprehensive income $ 48,067 $ 63,589
Basic earnings (loss) per share    
Continuing operations $ 0.45 $ 0.48
Discontinued operations 0.00 0.00
Net earnings 0.45 0.48
Diluted earnings (loss) per share    
Continuing operations 0.45 0.48
Discontinued operations 0.00 0.00
Net earnings $ 0.45 $ 0.48
Weighted-average common shares outstanding    
Basic 132,567 132,043
Assuming dilution 133,259 133,054
Depreciation, depletion, accretion and amortization $ 95,480 $ 89,181
Effective tax rate from continuing operations 16.90% 14.30%
[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 and Texas

West market — Arizona, California and New Mexico

v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Operating Activities    
Net earnings $ 60,258 $ 63,299
Adjustments to reconcile net earnings to net cash provided by operating activities    
Depreciation, depletion, accretion and amortization 95,480 89,181
Noncash operating lease expense 8,851 8,717
Net gain on sale of property, plant & equipment and businesses (999) (7,297)
Contributions to pension plans (2,144) (2,320)
Share-based compensation expense 6,716 5,724
Deferred tax expense (benefit) 19,671 774
Changes in assets and liabilities before initial effects of business acquisitions and dispositions (99,597) (47,733)
Other, net (5,761) 5,819
Net cash provided by operating activities 82,475 116,164
Investing Activities    
Purchases of property, plant & equipment (142,650) (122,019)
Proceeds from sale of property, plant & equipment 2,536 6,512
Proceeds from sale of businesses 0 1,744
Payment for businesses acquired, net of acquired cash 0 1,122
Other, net 9,872 (7,237)
Net cash used for investing activities (130,242) (119,878)
Financing Activities    
Proceeds from short-term debt 0 196,200
Payment of short-term debt 0 (150,700)
Payment of current maturities and long-term debt (6) (6)
Settlements of interest rate derivatives (19,863) 0
Purchases of common stock (26,132) 0
Dividends paid (45,100) (40,939)
Share-based compensation, shares withheld for taxes (15,365) (14,137)
Net cash used for financing activities (106,466) (9,582)
Net decrease in cash and cash equivalents and restricted cash (154,233) (13,296)
Cash and cash equivalents and restricted cash at beginning of year 274,506 44,404
Cash and cash equivalents and restricted cash at end of period $ 120,273 $ 31,108
v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Mar. 31, 2020
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. 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, Arizona, California, Maryland, New Mexico, Tennessee, Texas, Virginia and Washington D.C. 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, 2019 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. For further information, refer to the consolidated financial statements and footnotes included in our most recent Annual Report on Form 10-K. Operating results for the three month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, particularly in light of the uncertainty over the economic and operational impacts of the current novel coronavirus (COVID-19) pandemic.

We are operating as an essential business and while the COVID-19 pandemic has not yet materially impacted our business, operations, or financial results, it may have far-reaching impacts on many aspects of our operations, directly and indirectly, including with respect to its impacts on customer behaviors, business and manufacturing operations, our employees, and the market generally. Our condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates and assumptions affect, among other things, our goodwill and long-lived asset valuations; inventory valuation; assessment of the annual effective tax rate; valuation of deferred income taxes; allowance for doubtful accounts; measurement of cash bonus plans; and pension plan assumptions. Events and changes in circumstances arising after March 31, 2020, including those resulting from the impacts of COVID-19, will be reflected in management’s estimates for future periods.

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

Our nonmineral leases with initial terms in excess of one year are recognized on the balance sheet as right-of-use (ROU) assets and lease liabilities. Mineral leases are 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 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. The non-lease components of our lease agreements are not separated from the lease components.

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

March 31

in thousands

2020

2019

Discontinued Operations

Pretax gain (loss)

$           354 

$          (638)

Income tax (expense) benefit

(94)

2 

Earnings (loss) on discontinued operations,

net of tax

$           260 

$          (636)

Our discontinued operations include charges/credits 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

March 31

in thousands

2020

2019

Weighted-average common shares

outstanding

132,567 

132,043 

Dilutive effect of

Stock-Only Stock Appreciation Rights

345 

742 

Other stock compensation plans

347 

269 

Weighted-average common shares

outstanding, assuming dilution

133,259 

133,054 

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

March 31

in thousands

2020

2019

Antidilutive common stock equivalents

174 

220 

 

RECLASSIFICATIONS

Certain items previously reported in specific financial statement captions have been reclassified to conform to the 2020 presentation.

 
v3.20.1
LEASES
3 Months Ended
Mar. 31, 2020
LEASES [Abstract]  
LEASES Note 2: Leases

Our portfolio of nonmineral leases is composed almost entirely of operating leases (we do not have any material finance 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).

Operating lease ROU assets and liabilities and the weighted-average lease term and discount rate are as follows:

March 31

December 31

March 31

in thousands

Classification on the Balance Sheet

2020

2019

2019

Assets

Operating lease ROU assets

$     461,712 

$     441,656 

$     434,970 

Accumulated amortization

(40,782)

(33,467)

(8,589)

Total lease assets

Operating lease right-of-use assets, net

$     420,930 

$     408,189 

$     426,381 

Liabilities

Current

Operating

Other current liabilities

$       32,045 

$       29,971 

$       31,255 

Noncurrent

Operating

Operating lease liabilities

399,489 

388,042 

403,426 

Total lease liabilities

$     431,534 

$     418,013 

$     434,681 

Lease Term and Discount Rate

Weighted-average remaining lease term (years)

Operating leases

10.1 

9.9 

10.3 

Weighted-average discount rate

Operating leases

4.2%

4.3%

4.4%

Our lease agreements do not contain residual value guarantees, restrictive covenants or early termination options that we deem material.

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

Three Months Ended

March 31

in thousands

2020

2019

Lease Cost

Operating lease cost

$       14,106 

$       14,127 

Short-term lease cost 1

9,385 

8,700 

Variable lease cost

3,132 

3,068 

Sublease income

(734)

(610)

Total lease cost

$       25,889 

$       25,285 

1

Our short-term lease cost includes the cost of leases with an initial term of one month or less.

Cash paid for operating leases was $13,328,000 and $13,333,000 for the three months ended March 31, 2020 and 2019, respectively, and was reflected as reductions to operating cash flows.

Maturity analysis on an undiscounted basis of our operating lease liabilities as of March 31, 2020 is as follows:

Operating

in thousands

Leases

Maturity of Lease Liabilities

2020 (remainder)

$       39,045 

2021

49,240 

2022

44,481 

2023

39,295 

2024

35,634 

Thereafter

593,029 

Total minimum lease payments

$     800,724 

Less: Lease payments representing interest

369,190 

Present value of future minimum lease payments

$     431,534 

Less: Current obligations under leases

32,045 

Long-term lease obligations

$     399,489 

 

 
v3.20.1
INCOME TAXES
3 Months Ended
Mar. 31, 2020
INCOME TAXES [Abstract]  
INCOME TAXES Note 3: Income Taxes

In response to COVID-19, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. The CARES Act provides numerous tax relief provisions and stimulus measures. A temporary favorable change to the prior year and current year limitations on interest deductions and a temporary suspension of certain payment requirements for the employer portion of Social Security taxes are the relief provisions that are expected to provide us the greatest benefit. In the first quarter of 2020 (i.e., the period of enactment), an expected cash tax benefit of $13,301,000 was recorded to account for the favorable change to the prior year limitation on interest deductions.

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 first quarter of 2020, we recorded income tax expense from continuing operations of $12,194,000 compared to income tax expense from continuing operations of $10,693,000 in the first quarter of 2019. The increase in tax expense was primarily related to lower excess tax benefits from share-based compensation quarter over quarter.

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. A summary of our deferred tax assets and liabilities is included in Note 9 “Income Taxes” in our Annual Report on Form 10-K for the year ended December 31, 2019.

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, 2020, we project Alabama state net operating loss (NOL) carryforward deferred tax assets of $63,384,000 against which we project to have a valuation allowance of $29,183,000. At this time, we do not expect any future adjustment to this valuation allowance. The Alabama NOL carryforward, if not utilized, would expire between 2023 and 2032.

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.

 

 
v3.20.1
REVENUES
3 Months Ended
Mar. 31, 2020
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 $39,564,000 and $34,515,000 for the three months ended March 31, 2020 and 2019, 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, the vast majority of 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 month periods ended March 31, 2020 and 2019 are disaggregated as follows:

Three Months Ended March 31, 2020

in thousands

Aggregates

Asphalt

Concrete

Calcium

Total

Total Revenues by Geographic Market 1

East

$     239,869 

$     17,883 

$     62,120 

$              0 

$      319,872 

Gulf Coast

493,297 

33,856 

16,965 

2,026 

546,144 

West

135,060 

88,050 

15,680 

0 

238,790 

Segment sales

$     868,226 

$   139,789 

$     94,765 

$       2,026 

$   1,104,806 

Intersegment sales

(55,564)

0 

0 

0 

(55,564)

Total revenues

$     812,662 

$   139,789 

$     94,765 

$       2,026 

$   1,049,242 

Three Months Ended March 31, 2019

in thousands

Aggregates

Asphalt

Concrete

Calcium

Total

Total Revenues by Geographic Market 1

East

$     224,902 

$     18,216 

$     54,716 

$              0 

$      297,834 

Gulf Coast

496,633 

37,053 

16,505 

1,951 

552,142 

West

113,430 

76,821 

12,416 

0 

202,667 

Segment sales

$     834,965 

$   132,090 

$     83,637 

$       1,951 

$   1,052,643 

Intersegment sales

(56,132)

0 

0 

0 

(56,132)

Total revenues

$     778,833 

$   132,090 

$     83,637 

$       1,951 

$      996,511 

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 and Texas

West market — Arizona, California and New Mexico

PRODUCT REVENUES

Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs at a point in time when our aggregates, asphalt mix and ready-mixed concrete are shipped/delivered and control passes to the customer. Revenue for our products is recorded at the fixed invoice amount and payment is due by the 15th day of the following monthwe do not offer discounts for early payment.

Freight & delivery generally represents pass-through transportation we incur (including our administrative costs) and pay to third-party carriers to deliver our products to customers and are accounted for as a fulfillment activity. Likewise, the costs related to freight & delivery are included in cost of revenues.

Freight & delivery revenues are as follows:

Three Months Ended

March 31

in thousands

2020

2019

Freight & Delivery Revenues

Total revenues

$  1,049,242 

$     996,511 

Freight & delivery revenues 1

(113,961)

(162,605)

Total revenues excluding freight & delivery

$     935,281 

$     833,906 

1

Includes freight & delivery to remote distribution sites.

CONSTRUCTION PAVING SERVICE REVENUES

Revenue from our asphalt construction paving business is recognized over time using the percentage-of-completion method under the cost approach. The percentage of completion is determined by costs incurred to date as a percentage of total costs estimated for the project. Under this approach, recognized contract revenue equals the total estimated contract revenue multiplied by the percentage of completion. Our construction contracts are unit priced, and an account receivable is recorded for amounts invoiced based on actual units produced. Contract assets for estimated earnings in excess of billings, contract assets related to retainage provisions and contract liabilities for billings in excess of costs are immaterial. Variable consideration in our construction paving contracts is immaterial and consists of incentives and penalties based on the quality of work performed. Our construction paving contracts may contain warranty provisions covering defects in equipment, materials, design or workmanship that generally run from nine months to one year after project completion. Due to the nature of our construction paving projects, including contract owner inspections of the work during construction and prior to acceptance, we have not experienced material warranty costs for these short-term warranties.

VOLUMETRIC PRODUCTION PAYMENT DEFERRED REVENUES

In 2013 and 2012, we sold a percentage interest in certain future aggregates production for net cash proceeds of $226,926,000. These transactions, structured as volumetric production payments (VPPs):

relate to eight quarries in Georgia and South Carolina

provide the purchaser solely with a nonoperating percentage interest in the subject quarries’ aggregates production

contain no minimum annual or cumulative guarantees by us for production or sales volume, nor minimum sales price

are both volume and time limited (we expect the transactions will last approximately 25 years, limited by volume rather than time)

We are the exclusive sales agent for, and transmit quarterly to the purchaser the proceeds from the sale of, the purchaser’s share of aggregates production. Our consolidated total revenues exclude the revenue from the sale of the purchaser’s share of aggregates.

The proceeds we received from the sale of the percentage interest were recorded as deferred revenue on the balance sheet. We recognize revenue on a unit-of-sales basis (as we sell the purchaser’s share of production) relative to the volume limitations of the transactions. Given the nature of the risks and potential rewards assumed by the buyer, the transactions do not reflect financing activities.

Reconciliation of the VPP deferred revenue balances (current and noncurrent) is as follows:

Three Months Ended

March 31

in thousands

2020

2019

Deferred Revenue

Balance at beginning of year

$     185,339 

$     192,783 

Revenue recognized from deferred revenue

(1,342)

(1,652)

Balance at end of period

$     183,997 

$     191,131 

Based on expected sales from the specified quarries, we expect to recognize $7,500,000 of VPP deferred revenue as income during the 12-month period ending March 31, 2021 (reflected in other current liabilities in our March 31, 2020 Condensed Consolidated Balance Sheet).

 

 
v3.20.1
FAIR VALUE MEASUREMENTS
3 Months Ended
Mar. 31, 2020
FAIR VALUE MEASUREMENTS [Abstract]  
FAIR VALUE MEASUREMENTS Note 5: Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as described below:

Level 1: Quoted prices in active markets for identical assets or liabilities

Level 2: Inputs that are derived principally from or corroborated by observable market data

Level 3: Inputs that are unobservable and significant to the overall fair value measurement

Our assets subject to fair value measurement on a recurring basis are summarized below:

Level 1 Fair Value

March 31

December 31

March 31

in thousands

2020

2019

2019

Fair Value Recurring

Rabbi Trust

Mutual funds

$       19,001 

$       22,883 

$       20,953 

Total

$       19,001 

$       22,883 

$       20,953 

Level 2 Fair Value

March 31

December 31

March 31

in thousands

2020

2019

2019

Fair Value Recurring

Rabbi Trust

Money market mutual fund

$           520 

$        1,340 

$           490 

Total

$           520 

$        1,340 

$           490 

We have two Rabbi Trusts for the purpose of providing a level of security for the employee nonqualified retirement and deferred compensation plans and for the directors' nonqualified deferred compensation plans. The fair values of these investments are estimated using a market approach. The Level 1 investments include mutual funds for which quoted prices in active markets are available. Level 2 investments are stated at estimated fair value based on the underlying investments in the fund (short-term, highly liquid assets in commercial paper, short-term bonds and certificates of deposit).

Net gains (losses) of the Rabbi Trust investments were $(5,060,000) and $1,863,000 for the three months ended March 31, 2020 and 2019, respectively. The portions of the net gains (losses) related to investments still held by the Rabbi Trusts at March 31, 2020 and 2019 were $(5,060,000) and $1,905,000, respectively.

The carrying values of our cash equivalents, restricted cash, accounts and notes receivable, short-term debt, trade payables and accruals, and all other current liabilities approximate their fair values because of the short-term nature of these instruments. Additional disclosures for derivative instruments and interest-bearing debt are presented in Notes 6 and 7, respectively.

 

 
v3.20.1
DERIVATIVE INSTRUMENTS
3 Months Ended
Mar. 31, 2020
DERIVATIVE INSTRUMENTS [Abstract]  
DERIVATIVE INSTRUMENTS Note 6: Derivative Instruments

During the normal course of operations, we are exposed to market risks including interest rates, foreign currency exchange rates and commodity prices. From time to time, and consistent with our risk management policies, we use derivative instruments to balance the cost and risk of such exposure. We do not use derivative instruments for trading or other speculative purposes. The accounting for gains and losses that result from changes in the fair value of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationship. Changes in the fair value of interest rate swap cash flow hedges are recorded in accumulated other comprehensive income (AOCI) and are reclassified into interest expense in the same period the hedged items affect earnings. We may also enter into contracts that qualify for the normal purchases and normal sale (NPNS) exception. When a contract meets the criteria to qualify as NPNS, we apply such exception. Income recognition and realization related to NPNS contracts generally coincide with the physical delivery of the commodity. For contracts qualifying for the NPNS exception, no recognition of the contract’s fair value in the consolidated financial statements is required until settlement of the contract as long as the transaction remains probable of occurring.

In February 2020, we entered into interest rate locks, designated as cash flow hedges on the related interest payments, totaling $300,000,000 to hedge the risk of higher interest rates prior to an anticipated debt issuance. We terminated and settled the interest rate locks in March 2020 for a cash payment of $19,863,000. While the related debt issuance remains probable of occurring in the near term, the timing is uncertain. As such, at least 1/20th of the hedge is deemed ineffective and $993,000 of the settlement has been recorded to interest expense in the first quarter. The remainder of the settlement was deferred and recorded in accumulated other comprehensive income (AOCI) and is anticipated to be amortized to interest expense over the term of the related debt.

In 2007 and 2018, we entered into interest rate locks of future debt issuances to hedge the risk of higher interest rates. These interest rate locks were designated as cash flow hedges. The gain/loss upon settlement of these interest rate hedges is deferred (recorded in AOCI) and amortized to interest expense over the term of the related debt.

This amortization was reflected in the accompanying Condensed Consolidated Statements of Comprehensive Income as follows:

Three Months Ended

Location on

March 31

in thousands

Statement

2020

2019

Interest Rate Hedges

Loss reclassified from AOCI

Interest

(effective portion)

expense

$       (1,074)

$            (75)

For the 12-month period ending March 31, 2021, we estimate that $2,324,000 of the $24,839,000 net of tax loss in AOCI will be reclassified to interest expense.

 

 
v3.20.1
DEBT
3 Months Ended
Mar. 31, 2020
DEBT [Abstract]  
DEBT Note 7: Debt

Debt is detailed as follows:

Effective

March 31

December 31

March 31

in thousands

Interest Rates

2020

2019

2019

Short-term Debt

Bank line of credit expires 2021 1

$                  0 

$                0 

$     178,500 

Total short-term debt

$                  0 

$                0 

$     178,500 

Long-term Debt

Bank line of credit expires 2021 1

$                  0 

$                0 

$                0 

Floating-rate notes due 2020 2

2.13%

250,000 

250,000 

250,000 

Floating-rate notes due 2021 2

2.51%

500,000 

500,000 

500,000 

8.85% notes due 2021

8.88%

6,000 

6,000 

6,000 

4.50% notes due 2025

4.65%

400,000 

400,000 

400,000 

3.90% notes due 2027

4.00%

400,000 

400,000 

400,000 

7.15% notes due 2037

8.05%

129,239 

129,239 

129,239 

4.50% notes due 2047

4.59%

700,000 

700,000 

700,000 

4.70% notes due 2048

5.42%

460,949 

460,949 

460,949 

Other notes

6.46%

179 

185 

202 

Total long-term debt - face value

$    2,846,367 

$  2,846,373 

$  2,846,390 

Unamortized discounts and debt issuance costs

(60,776)

(62,033)

(65,777)

Total long-term debt - book value

$    2,785,591 

$  2,784,340 

$  2,780,613 

Less current maturities

25 

25 

24 

Total long-term debt - reported value

$    2,785,566 

$  2,784,315 

$  2,780,589 

Estimated fair value of long-term debt

$    2,926,140 

$  3,073,693 

$  2,775,511 

1

Borrowings on the bank line of credit are classified as short-term if we intend to repay within twelve months and as long-term if we have the intent and ability to extend payment beyond twelve months.

2

This debt is classified as long-term since we intend to refinance it and have the ability to do so by borrowing on our $750,000,000 delayed draw term loan that closed April 10, 2020.

Discounts and debt issuance costs are amortized using the effective interest method over the terms of the respective notes resulting in $1,258,000 and $1,239,000 of net interest expense for these items for the three months ended March 31, 2020 and 2019, respectively.

LINE OF CREDIT

Our unsecured $750,000,000 line of credit matures December 2021 and contains affirmative, negative and financial covenants customary for an unsecured investment-grade facility. The primary negative covenant limits our ability to incur secured debt. The financial covenants are: (1) a maximum ratio of debt to EBITDA of 3.5:1 (upon certain acquisitions, the maximum ratio can be 3.75:1 for three quarters), and (2) a minimum ratio of EBITDA to net cash interest expense of 3.0:1. As of March 31, 2020, we were in compliance with the line of credit covenants.

Borrowings on our line of credit are classified as short-term if we intend to repay within twelve months and as long-term if we have the intent and ability to extend repayment beyond twelve months. Borrowings bear interest, at our option, at either LIBOR plus a credit margin ranging from 1.00% to 1.75%, or Truist Bank’s base rate (generally, its prime rate) plus a credit margin ranging from 0.00% to 0.75%. The credit margin for both LIBOR and base rate borrowings is determined by our credit ratings. Standby letters of credit, which are issued under the line of credit and reduce availability, are charged a fee equal to the credit margin for LIBOR borrowings plus 0.175%. We also pay a commitment fee on the daily average unused amount of the line of credit that ranges from 0.10% to 0.25% determined by our credit ratings. As of March 31, 2020, the credit margin for LIBOR borrowings was 1.25%, the credit margin for base rate borrowings was 0.25%, and the commitment fee for the unused amount was 0.15%.

As of March 31, 2020, our available borrowing capacity was $695,871,000. Utilization of the borrowing capacity was as follows:

none was borrowed

$54,129,000 was used to provide support for outstanding standby letters of credit

TERM DEBT

All of our $2,846,367,000 (face value) of term debt is unsecured. $2,846,188,000 of such debt is governed by three essentially identical indentures that contain customary investment-grade type covenants. The primary covenant in all three indentures limits the amount of secured debt we may incur without ratably securing such debt. As of March 31, 2020, we were in compliance with all term debt covenants.

SUBSEQUENT EVENT

Subsequent to quarter-end, we executed a $750,000,000 364-day delayed draw term loan with a subset of the banks that provide our line of credit. This facility provides for up to two draws through October 2020 and all borrowings are due April 2021. Borrowings may be repaid prior to maturity, but once repaid may not be borrowed again.

All terms and conditions of the delayed draw term loan are consistent with those of the line of credit except for the interest rate on borrowings and the commitment fee. Borrowings bear interest, at our option, at either LIBOR plus a credit margin ranging from 1.375% to 2.125%, or Truist Bank’s base rate (generally, its prime rate) plus a credit margin ranging from 0.375% to 1.125%. The credit margin for both LIBOR and base rate borrowings is determined by our credit ratings. The commitment fee, paid on the unused amount of the daily average unused amount of the facility, ranges from 0.125% to 0.25% and is determined by our credit ratings.

STANDBY LETTERS OF CREDIT

We provide, in the normal course of business, certain third-party beneficiaries with standby letters of credit to support our obligations to pay or perform according to the requirements of an underlying agreement. Such letters of credit typically have an initial term of one year, typically renew automatically, and can only be modified or canceled with the approval of the beneficiary. All of our standby letters of credit are issued by banks that participate in our $750,000,000 line of credit, and reduce the borrowing capacity thereunder. Our standby letters of credit as of March 31, 2020 are summarized by purpose in the table below:

in thousands

Standby Letters of Credit

Risk management insurance

$       47,031 

Reclamation/restoration requirements

7,098 

Total

$       54,129 

 

 
v3.20.1
COMMITMENTS AND CONTINGENCIES
3 Months Ended
Mar. 31, 2020
COMMITMENTS AND CONTINGENCIES [Abstract]  
COMMITMENTS AND CONTINGENCIES Note 8: Commitments and Contingencies

Certain of our aggregates reserves are burdened by volumetric production payments (nonoperating interest) as described in Note 4. As the holder of the working interest, we have responsibility to bear the cost of mining and producing the reserves attributable to this nonoperating interest.

As described in Note 2, our present value of future minimum (nonmineral) lease payments totaled $431,534,000 as of March 31, 2020.

As summarized by purpose in Note 7, our standby letters of credit totaled $54,129,000 as of March 31, 2020.

As described in Note 9, our asset retirement obligations totaled $263,445,000 as of March 31, 2020.

Amounts accrued for environmental remediation costs (measured on an undiscounted basis) were as follows:

March 31

December 31

March 31

in thousands

2020

2019

2019

Accrued Environmental Remediation Costs

Continuing operations

$        25,837 

$        30,429 

$        37,590 

Retained from former Chemicals business

10,982 

10,972 

10,814 

Total

$        36,819 

$        41,401 

$        48,404 

LITIGATION AND ENVIRONMENTAL MATTERS

We are subject to occasional governmental proceedings and orders pertaining to occupational safety and health or to protection of the environment, such as proceedings or orders relating to noise abatement, air emissions or water discharges. As part of our continuing program of stewardship in safety, health and environmental matters, we have been able to resolve such proceedings and to comply with such orders without any material adverse effects on our business.

We have received notices from the United States Environmental Protection Agency (EPA) or similar state or local agencies that we are considered a potentially responsible party (PRP) at a limited number of sites under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund) or similar state and local environmental laws. Generally, we share the cost of remediation at these sites with other PRPs or alleged PRPs in accordance with negotiated or prescribed allocations. There is inherent uncertainty in determining the potential cost of remediating a given site and in determining any individual party's share in that cost. As a result, estimates can change substantially as additional information becomes available regarding the nature or extent of site contamination, remediation methods, other PRPs and their probable level of involvement, and actions by or against governmental agencies or private parties.

We have reviewed the nature and extent of our involvement at each Superfund site, as well as potential obligations arising under other federal, state and local environmental laws. While ultimate resolution and financial liability is uncertain at a number of the sites, in our opinion based on information currently available, the ultimate resolution of claims and assessments related to these sites will not have a material effect on our consolidated results of operations, financial position or cash flows, although amounts recorded in a given period could be material to our results of operations or cash flows for that period.

We are a defendant in various lawsuits in the ordinary course of business. It is not possible to determine with precision the outcome, or the amount of liability, if any, under these lawsuits, especially where the cases involve possible jury trials with as yet undetermined jury panels.

In addition to these lawsuits in which we are involved in the ordinary course of business, certain other material legal proceedings are more specifically described below:

Lower Passaic River Study Area (DISCONTINUED OPERATIONS and superfund site) — The Lower Passaic River Study Area is part of the Diamond Shamrock Superfund Site in New Jersey. Vulcan and approximately 70 other companies are parties (collectively the Cooperating Parties Group, CPG) to a May 2007 Administrative Order on Consent (AOC) with the EPA to perform a Remedial Investigation/Feasibility Study (draft RI/FS) of the lower 17 miles of the Passaic River (River). The draft RI/FS was submitted recommending a targeted hot spot remedy; however, the EPA issued a record of decision (ROD) in March 2016 that calls for a bank-to-bank dredging remedy for the lower 8 miles of the River. The EPA estimates that the cost of implementing this proposal is $1.38 billion. In September 2016, the EPA entered into an Administrative Settlement Agreement and Order on Consent with Occidental Chemical Corporation (Occidental) in which Occidental agreed to undertake the remedial design for this bank-to-bank dredging remedy and to reimburse the United States for certain response costs.

In August 2017, the EPA informed certain members of the CPG, including Vulcan, that it planned to use the services of a third-party allocator with the expectation of offering cash-out settlements to some parties in connection with the bank-to-bank remedy. This voluntary allocation process is intended to establish an impartial third-party expert recommendation that may be considered by the government and the participants as the basis of possible settlements. We are a participant in the voluntary allocation process, which is likely to extend beyond 2020.

In July 2018, Vulcan, along with more than one hundred other defendants, was sued by Occidental in United States District Court for the District of New Jersey, Newark Vicinage. Occidental is seeking cost recovery and contribution under CERCLA. It is unknown at this time whether the filing of the Occidental lawsuit will impact the EPA allocation process.

In October 2018, the EPA ordered the CPG to prepare a streamlined feasibility study specifically for the upper 9 miles of the River. This directive is focused on dioxin and covers the remaining portion of the River not included in the EPA’s March 2016 ROD.

Efforts to remediate the River have been underway for many years and have involved hundreds of entities that have had operations on or near the River at some point during the past several decades. We formerly owned a chemicals operation near the mouth of the River, which was sold in 1974. The major risk drivers in the River have been identified as dioxins, PCBs, DDx and mercury. We did not manufacture any of these risk drivers and have no evidence that any of these were discharged into the River by Vulcan.

The AOC does not obligate us to fund or perform the remedial action contemplated by either the draft RI/FS or the ROD. Furthermore, the parties who will participate in funding the remediation and their respective allocations have not been determined. We do not agree that a bank-to-bank remedy is warranted, and we are not obligated to fund any of the remedial action at this time; nevertheless, we previously estimated the cost to be incurred by us as a potential participant in a bank-to-bank dredging remedy and recorded an immaterial loss for this matter in 2015.

TEXAS BRINE MATTER (DISCONTINUED OPERATIONS) — During the operation of its former Chemicals Division, Vulcan secured the right to mine salt out of an underground salt dome formation in Assumption Parish, Louisiana from 1976 - 2005. Throughout that period and for all times thereafter, the Texas Brine Company (Texas Brine) was the operator contracted by Vulcan (and later Occidental) to mine and deliver the salt. We sold our Chemicals Division in 2005 and transferred our rights and interests related to the salt and mining operations to the purchaser, a subsidiary of Occidental, and we have had no association with the leased premises or Texas Brine since that time. In August 2012, a sinkhole developed in the vicinity of the Texas Brine mining operations, and numerous lawsuits were filed in state court in Assumption Parish, Louisiana. Other lawsuits, including class action litigation, were also filed in federal court before the Eastern District of Louisiana in New Orleans.

There are numerous defendants, including Texas Brine and Occidental, to the litigation in state and federal court. Vulcan was first brought into the litigation as a third-party defendant in August 2013 by Texas Brine. We have since been added as a direct and third-party defendant by other parties, including a direct claim by the state of Louisiana. Damage categories encompassed within the litigation include individual plaintiffs’ claims for property damage, a claim by the state of Louisiana for response costs and civil penalties, claims by Texas Brine for response costs and lost profits, claims for physical damages to nearby oil and gas pipelines and storage facilities (pipelines), and business interruption claims.

In addition to the plaintiffs’ claims, we were also sued for contractual indemnity and comparative fault by both Texas Brine and Occidental. It is alleged that the sinkhole was caused, in whole or in part, by our negligent actions or failure to act. It is also alleged that we breached the salt lease with Occidental, as well as an operating agreement and related contracts with Texas Brine; that we are strictly liable for certain property damages in our capacity as a former lessee of the salt lease; and that we violated certain covenants and conditions in the agreement under which we sold our Chemicals Division to Occidental. We likewise made claims for contractual indemnity and on a basis of comparative fault against Texas Brine and Occidental. Vulcan and Occidental have since dismissed all of their claims against one another. Texas Brine has claims that remain pending against Vulcan and against Occidental.

A bench trial (judge only) began in September 2017 and ended in October 2017 in the pipeline cases. The trial was limited in scope to the allocation of comparative fault or liability for causing the sinkhole, with a damages phase of the trial to be held at a later date. In December 2017, the judge issued a ruling on the allocation of fault among the three defendants as follows: Occidental 50%, Texas Brine 35% and Vulcan 15%. This ruling has been appealed by the parties.

We have settled all except two outstanding cases, and our insurers to date have funded these settlements in excess of our self-insured retention amount. The remaining cases involve Texas Brine and the state of Louisiana. Discovery remains ongoing and we cannot reasonably estimate a range of liability pertaining to these open cases at this time.

NEW YORK WATER DISTRICT CASES (DISCONTINUED OPERATIONS) — During the operation of our former Chemicals Division, which was divested to Occidental in 2005, Vulcan manufactured a chlorinated solvent known as 1,1,1-trichloroethane. We are a defendant in 27 cases allegedly involving 1,1,1-trichloroethane. All of the cases are filed in the United States District Court for the Eastern District of New York. According to the various complaints, the plaintiffs are public drinking water providers who serve customers in seven New York counties (Nassau, Orange, Putnam, Sullivan, Ulster, Washington and Westchester). It is alleged that our 1,1,1-trichloroethane was stabilized with 1,4-dioxane and that various water wells of the plaintiffs are contaminated with 1,4-dioxane. The plaintiffs are seeking unspecified compensatory and punitive damages. We will vigorously defend the cases. At this time we cannot determine the likelihood or reasonably estimate a range of loss, if any, pertaining to the cases.

HEWITT LANDFILL MATTER (SUPERFUND SITE) — In September 2015, the Los Angeles Regional Water Quality Control Board (RWQCB) issued a Cleanup and Abatement Order directing Vulcan to assess, monitor, cleanup and abate wastes that have been discharged to soil, soil vapor, and/or groundwater at the former Hewitt Landfill in Los Angeles.

Following a thorough investigation and pilot scale testing, the RWQCB approved a corrective action that includes leachate recovery, storm water capture and conveyance improvements, and a groundwater pump, treat and reinjection system. Certain on-site source control measures have been implemented and the groundwater treatment system is expected to be operating in mid-2020. The currently-anticipated costs of these on-site source control activities have been fully accrued.

We are also engaged in an ongoing dialogue with the EPA, the Los Angeles Department of Water and Power, and other stakeholders regarding the potential contribution of the Hewitt Landfill to groundwater contamination in the North Hollywood Operable Unit (NHOU) of the San Fernando Valley Superfund Site. We are gathering and analyzing data and developing technical information to determine the extent of possible contribution by the Hewitt Landfill to the groundwater contamination in the area. This work is also intended to assist in identification of other PRPs that may have contributed to groundwater contamination in the area.

The EPA and Vulcan entered into an AOC and Statement of Work having an effective date of September 2017 for the design of two extraction wells south of the Hewitt Site to protect the North Hollywood West (NHW) well field located within the NHOU. In November 2017, we submitted a Pre-Design Investigation (PDI) Work Plan to the EPA, which sets forth the activities and schedule for our evaluation of the need for a two-well remedy. These activities were completed between the first and third quarters of 2018, and in December 2018 we submitted a PDI Evaluation Report to the EPA. The PDI Evaluation Report summarizes data collection activities conducted pursuant to the PDI Work Plan and provides model updates and evaluation of remediation alternatives. In May 2019, the EPA provided an initial set of comments on the PDI Evaluation Report but has not yet provided additional, final comments. Until the EPA’s review of the PDI Evaluation Report is complete and an effective remedy can be agreed upon, we cannot identify an appropriate remedial action. Given the various stakeholders involved and the uncertainties relating to issues such as testing, monitoring, and remediation alternatives, we cannot reasonably estimate a loss pertaining to this matter.

NAFTA ARBITRATION — In September 2018, our subsidiary Legacy Vulcan, LLC (Legacy Vulcan), on its own behalf, and on behalf of our Mexican subsidiary Calizas Industriales del Carmen, S.A. de C.V. (Calica), served the United Mexican States (Mexico) a Notice of Intent to Submit a Claim to Arbitration under Chapter 11 of the North American Free Trade Agreement (NAFTA). Our NAFTA claim relates to the treatment of a portion of our quarrying operations in Playa del Carmen (Cancun), Mexico, arising from, among other measures, Mexico’s failure to comply with a legally binding zoning agreement and relates to other unfair, arbitrary and capricious actions by Mexico’s environmental enforcement agency. We assert that these actions are in breach of Mexico’s international obligations under NAFTA and international law.

As required by Article 1118 of NAFTA, we sought to settle this dispute with Mexico through consultations. Notwithstanding our good faith efforts to resolve the dispute amicably, we were unable to do so and filed a Request for Arbitration, which we filed with the International Centre for Settlement of Investment Disputes (ICSID) in December 2018. In January 2019, ICSID registered our Request for Arbitration.

We expect that the NAFTA arbitration will take at least two years to be concluded. At this time, there can be no assurance whether we will be successful in our NAFTA claim, and we cannot quantify the amount we may recover, if any, under this arbitration proceeding if we were successful.

It is not possible to predict with certainty the ultimate outcome of these and other legal proceedings in which we are involved, and a number of factors, including developments in ongoing discovery or adverse rulings, or the verdict of a particular jury, could cause actual losses to differ materially from accrued costs. No liability was recorded for claims and litigation for which a loss was determined to be only reasonably possible or for which a loss could not be reasonably estimated. Legal costs incurred in defense of lawsuits are expensed as incurred. In addition, losses on certain claims and litigation described above may be subject to limitations on a per occurrence basis by excess insurance, as described in our most recent Annual Report on Form 10-K.

 

 
v3.20.1
ASSET RETIREMENT OBLIGATIONS
3 Months Ended
Mar. 31, 2020
ASSET RETIREMENT OBLIGATIONS [Abstract]  
ASSET RETIREMENT OBLIGATIONS Note 9: Asset Retirement Obligations

Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets. Recognition of a liability for an ARO is required in the period in which it is incurred at its estimated fair value. The associated asset retirement costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability is accreted through charges to operating expenses. If the ARO is settled for other than the carrying amount of the liability, we recognize a gain or loss on settlement.

We record all AROs for which we have legal obligations for land reclamation at estimated fair value. These AROs relate to our underlying land parcels, including both owned properties and mineral leases. ARO operating costs related to accretion of the liabilities and depreciation of the assets are as follows:

Three Months Ended

March 31

in thousands

2020

2019

ARO Operating Costs

Accretion

$        2,908 

$        2,733 

Depreciation

1,836 

1,841 

Total

$        4,744 

$        4,574 

ARO operating costs are reported in cost of revenues. AROs are reported within other noncurrent liabilities in our accompanying Condensed Consolidated Balance Sheets.

Reconciliations of the carrying amounts of our AROs are as follows:

Three Months Ended

March 31

in thousands

2020

2019

Asset Retirement Obligations

Balance at beginning of year

$     210,323 

$     225,726 

Liabilities incurred

0 

0 

Liabilities settled

(5,234)

(3,578)

Accretion expense

2,908 

2,733 

Revisions, net

55,448 

305 

Balance at end of period

$     263,445 

$     225,186 

ARO liabilities settled during the first three months of 2020 and 2019 include $722,000 and $1,266,000, respectively, of reclamation activities required under a development agreement and conditional use permits at two adjacent aggregates sites on owned property in Southern California. The reclamation required under the development agreement will result in the restoration of 90 acres of previously mined property to conditions suitable for retail and commercial development.

ARO revisions during the first three months of 2020 primarily include increases in estimated costs at three aggregates locations, including reclamation activities required under a development agreement at an aggregates site on owned property in Southern California. The reclamation required under the development agreement will result in the restoration of previously mined property to conditions suitable for retail and commercial development.

 

 
v3.20.1
BENEFIT PLANS
3 Months Ended
Mar. 31, 2020
BENEFIT PLANS [Abstract]  
BENEFIT PLANS Note 10: Benefit Plans

PENSION PLANS

We sponsor three qualified, noncontributory defined benefit pension plans. These plans cover substantially all employees hired before July 2007, other than those covered by union-administered plans. Normal retirement age is 65, but the plans contain provisions for earlier retirement. Benefits for the Salaried Plan and the Chemicals Hourly Plan are generally based on salaries or wages and years of service; the Construction Materials Hourly Plan provides benefits equal to a flat dollar amount for each year of service. In addition to these qualified plans, we sponsor three unfunded, nonqualified pension plans.

In 2005, benefit accruals for our Chemicals Hourly Plan participants ceased upon the sale of our Chemicals business. Effective July 2007, we amended our defined benefit pension plans to no longer accept new participants with the exception of two unions that continue to add new participants. Future benefit accruals for participants in our salaried defined benefit pension plans ceased on December 31, 2013, while salaried participants’ earnings considered for benefit calculations were frozen on December 31, 2015.

The following table sets forth the components of net periodic pension benefit cost:

PENSION BENEFITS

Three Months Ended

March 31

in thousands

2020

2019

Components of Net Periodic Benefit Cost

Service cost

$        1,331 

$        1,249 

Interest cost

7,531 

9,410 

Expected return on plan assets

(12,485)

(11,938)

Amortization of prior service cost

335 

335 

Amortization of actuarial loss

3,140 

1,358 

Net periodic pension benefit cost (credit)

$          (148)

$           414 

Pretax reclassifications from AOCI included in

net periodic pension benefit cost

$        3,475 

$        1,693 

The contributions to pension plans for the three months ended March 31, 2020 and 2019, as reflected on the Condensed Consolidated Statements of Cash Flows, pertain to benefit payments under nonqualified plans for both periods.

POSTRETIREMENT PLANS

In addition to pension benefits, we provide certain healthcare and life insurance benefits for some retired employees. In 2012, we amended our postretirement healthcare plan to cap our portion of the medical coverage cost at the 2015 level. Substantially all our salaried employees and, where applicable, certain of our hourly employees may become eligible for these benefits if they reach a qualifying age and meet certain service requirements. Generally, Company-provided healthcare benefits end when covered individuals become eligible for Medicare benefits, become eligible for other group insurance coverage or reach age 65, whichever occurs first.

The following table sets forth the components of net periodic other postretirement benefit cost:

OTHER POSTRETIREMENT BENEFITS

Three Months Ended

March 31

in thousands

2020

2019

Components of Net Periodic Benefit Cost

Service cost

$           380 

$           329 

Interest cost

242 

347 

Amortization of prior service credit

(980)

(980)

Amortization of actuarial gain

(201)

(327)

Net periodic postretirement benefit credit

$          (559)

$          (631)

Pretax reclassifications from AOCI included in

net periodic postretirement benefit credit

$       (1,181)

$       (1,307)

DEFINED CONTRIBUTION PLANS

In addition to our pension and postretirement plans, we sponsor two defined contribution plans. Substantially all salaried and nonunion hourly employees are eligible to be covered by one of these plans. Under these plans, we match employees’ eligible contributions at established rates. Expense recognized in connection with these matching obligations totaled $11,057,000 and $13,919,000 for the three months ended March 31, 2020 and 2019, respectively.

 

 
v3.20.1
OTHER COMPREHENSIVE INCOME
3 Months Ended
Mar. 31, 2020
OTHER COMPREHENSIVE INCOME [Abstract]  
OTHER COMPREHENSIVE INCOME Note 11: other Comprehensive Income

Comprehensive income comprises two subsets: net earnings and other comprehensive income (OCI). The components of other comprehensive income are presented in the accompanying Condensed Consolidated Statements of Comprehensive Income, net of applicable taxes.

Amounts in accumulated other comprehensive income (AOCI), net of tax, are as follows:

March 31

December 31

March 31

in thousands

2020

2019

2019

AOCI

Interest rate hedges

$       (24,839)

$       (10,953)

$       (11,125)

Pension and postretirement plans

(185,090)

(186,785)

(160,800)

Total

$     (209,929)

$     (197,738)

$     (171,925)

Changes in AOCI, net of tax, for the three months ended March 31, 2020 are as follows:

Pension and

Interest Rate

Postretirement

in thousands

Hedges

Benefit Plans

Total

AOCI

Balances as of December 31, 2019

$       (10,953)

$     (186,785)

$     (197,738)

Other comprehensive income (loss)

before reclassifications

(14,680)

0 

(14,680)

Amounts reclassified from AOCI

794 

1,695 

2,489 

Net current period OCI changes

(13,886)

1,695 

(12,191)

Balances as of March 31, 2020

$       (24,839)

$     (185,090)

$     (209,929)

Amounts reclassified from AOCI to earnings, are as follows:

Three Months Ended

March 31

in thousands

2020

2019

Amortization of Interest Rate Hedge Losses

Interest expense

$          1,074 

$               75 

Benefit from income taxes

(280)

(20)

Total

$             794 

$               55 

Amortization of Pension and Postretirement

Plan Actuarial Loss and Prior Service Cost

Other nonoperating expense

$          2,294 

$             386 

Benefit from income taxes

(599)

(151)

Total

$          1,695 

$             235 

Total reclassifications from AOCI to earnings

$          2,489 

$             290 

 

 
v3.20.1
EQUITY
3 Months Ended
Mar. 31, 2020
EQUITY [Abstract]  
EQUITY Note 12: Equity

Our capital stock consists solely of common stock, par value $1.00 per share, of which 480,000,000 shares may be issued. Holders of our common stock are entitled to one vote per share. We may also issue 5,000,000 shares of preferred stock, but no shares have been issued. The terms and provisions of such shares will be determined by our Board of Directors upon any issuance in accordance with our Certificate of Incorporation.

There were no shares held in treasury as of March 31, 2020, December 31, 2019 and March 31, 2019.

Our common stock purchases (all of which were open market purchases) and subsequent retirements for the year-to-date periods ended are as follows:

March 31

December 31

March 31

in thousands, except average cost

2020

2019

2019

Shares Purchased and Retired

Number

214 

19 

0 

Total purchase price

$        26,132 

$          2,602 

$                 0 

Average cost per share

$        121.92 

$        139.90 

$            0.00 

As of March 31, 2020, 8,064,851 shares may be purchased under the current authorization of our Board of Directors.

Changes in total equity are summarized below:

Three Months Ended

March 31

in thousands, except per share data

2020

2019

Total Equity

Balance at beginning of year

$    5,621,857 

$    5,202,903 

Net earnings

60,258 

63,299 

Common stock issued

Share-based compensation plans, net of shares

withheld for taxes

(15,082)

(14,068)

Purchase and retirement of common stock

(26,132)

0 

Share-based compensation expense

6,716 

5,724 

Cash dividends on common stock

($0.34/$0.31 per share, respectively)

(45,100)

(40,939)

Other comprehensive income

(12,191)

290 

Balance at end of period

$    5,590,326 

$    5,217,209 

 

 
v3.20.1
SEGMENT REPORTING
3 Months Ended
Mar. 31, 2020
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING Note 13: Segment Reporting

We have four operating (and reportable) segments organized around our principal product lines: Aggregates, Asphalt, Concrete and Calcium. The vast majority of our activities are domestic. We sell a relatively small amount of construction aggregates outside the United States. Our Asphalt and Concrete segments are primarily supplied with their aggregates requirements from our Aggregates segment. These intersegment sales are made at local market prices for the particular grade and quality of product used in the production of asphalt mix and ready-mixed concrete. Management reviews earnings from the product line reporting segments principally at the gross profit level.

segment financial disclosure

Three Months Ended

March 31

in thousands

2020

2019

Total Revenues

Aggregates 1

$        868,226 

$       834,965 

Asphalt 2

139,789 

132,090 

Concrete

94,765 

83,637 

Calcium

2,026 

1,951 

Segment sales

$     1,104,806 

$    1,052,643 

Aggregates intersegment sales

(55,564)

(56,132)

Total revenues

$     1,049,242 

$       996,511 

Gross Profit

Aggregates

$        194,131 

$       185,716 

Asphalt

(2,435)

(3,272)

Concrete

9,213 

8,563 

Calcium

814 

668 

Total

$        201,723 

$       191,675 

Depreciation, Depletion, Accretion

and Amortization (DDA&A)

Aggregates

$          77,136 

$         72,521 

Asphalt

8,734 

8,550 

Concrete

4,082 

2,964 

Calcium

49 

60 

Other

5,479 

5,086 

Total

$          95,480 

$         89,181 

Identifiable Assets 3

Aggregates

$     9,473,128 

$    9,275,593 

Asphalt

563,630 

564,103 

Concrete

322,044 

288,797 

Calcium

3,602 

3,905 

Total identifiable assets

$   10,362,404 

$  10,132,398 

General corporate assets

146,705 

133,346 

Cash and cash equivalents and restricted cash

120,273 

31,108 

Total assets

$   10,629,382 

$  10,296,852 

1

Includes product sales (crushed stone, sand and gravel, sand, and other aggregates), as well as freight & delivery costs that we pass along to our customers, and service revenues (see Note 4) related to aggregates.

2

Includes product sales, as well as service revenues (see Note 4) from our asphalt construction paving business.

3

Certain temporarily idled assets are included within a segment's Identifiable Assets but the associated DDA&A is shown within Other in the DDA&A section above as the related DDA&A is excluded from segment gross profit.

 

 
v3.20.1
SUPPLEMENTAL CASH FLOW INFORMATION
3 Months Ended
Mar. 31, 2020
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]  
SUPPLEMENTAL CASH FLOW INFORMATION Note 14: Supplemental Cash Flow Information

Supplemental information referable to our Condensed Consolidated Statements of Cash Flows is summarized below:

Three Months Ended

March 31

in thousands

2020

2019

Cash Payments (Refunds)

Interest (exclusive of amount capitalized)

$       17,033 

$       19,798 

Income taxes

340 

(364)

Noncash Investing and Financing Activities

Accrued liabilities for purchases of property, plant & equipment

$       25,862 

$       34,360 

Right-of-use assets obtained in exchange for new operating lease liabilities 1

21,522 

435,192 

Amounts referable to business acquisitions

Liabilities assumed

0 

(2,720)

1

The 2019 amount includes the initial right-of-use assets resulting from our adoption of ASU 2016-02, “Leases.”

 

v3.20.1
GOODWILL
3 Months Ended
Mar. 31, 2020
GOODWILL [Abstract]  
GOODWILL Note 15: Goodwill

Goodwill is recognized when the consideration paid for a business exceeds the fair value of the tangible and identifiable intangible assets acquired. Goodwill is allocated to reporting units for purposes of testing goodwill for impairment. There were no charges for goodwill impairment in the three month periods ended March 31, 2020 and 2019. Accumulated goodwill impairment losses amount to $252,664,000 in the Calcium segment.

We have four reportable segments organized around our principal product lines: Aggregates, Asphalt, Concrete and Calcium. There were no changes in the carrying amount of goodwill by reportable segment from December 31, 2019 to March 31, 2020 as shown below:

in thousands

Aggregates

Asphalt

Concrete

Calcium

Total

Goodwill

Totals at December 31, 2019

$    3,075,428 

$     91,633 

$              0 

$              0 

$    3,167,061 

Totals at March 31, 2020

$    3,075,428 

$     91,633 

$              0 

$              0 

$    3,167,061 

We test goodwill for impairment on an annual basis or more frequently if events or circumstances change in a manner that would more likely than not reduce the fair value of a reporting unit below its carrying value. A decrease in the estimated fair value of one or more of our reporting units could result in the recognition of a material, noncash write-down of goodwill.

 

 
v3.20.1
ACQUISITIONS AND DIVESTITURES
3 Months Ended
Mar. 31, 2020
ACQUISITIONS AND DIVESTITURES [Abstract]  
ACQUISITIONS AND DIVESTITURES Note 16: Acquisitions and Divestitures

BUSINESS ACQUISITIONS

2020 BUSINESS ACQUISITIONSWe had no acquisitions through the three months ended March 31, 2020.

2019 BUSINESS ACQUISITIONSFor the full year 2019, we purchased the following operations, none of which were material to our results of operations or financial position either individually or collectively, for total cash consideration of $45,273,000:

Tennessee — aggregates operations

Virginia — ready-mixed concrete operations

The 2019 acquisitions listed above are reported in our consolidated financial statements as of their respective acquisition dates. Purchase price allocations have not been finalized due to pending appraisals for intangible assets and property, plant & equipment.

As a result of the 2019 acquisitions, we recognized $25,443,000 of amortizable intangible assets (contractual rights in place). The contractual rights in place will be amortized against earnings on a straight-line basis over a weighted-average 19.5 years and will be deductible for income tax purposes over 15 years.

DIVESTITURES AND PENDING DIVESTITURES

We had no divestitures through the three months ended March 31, 2020.

In 2019, we sold:

First quarter — two aggregates operations in Georgia and reversed a contingent payable related to the fourth quarter 2017 Department of Justice required divestiture of former Aggregates USA operations, resulting in a pretax gain of $4,064,000

No assets met the criteria for held for sale at March 31, 2020, December 31, 2019 or March 31, 2019.

 

 
v3.20.1
NEW ACCOUNTING STANDARDS
3 Months Ended
Mar. 31, 2020
NEW ACCOUNTING STANDARDS [Abstract]  
NEW ACCOUNTING STANDARDS Note 17: New Accounting Standards

ACCOUNTING STANDARDS RECENTLY ADOPTED

CREDIT LOSSES During the first quarter of 2020, we adopted Accounting Standards Update (ASU) 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU amended prior guidance on the impairment of financial instruments. The new guidance estimates credit losses based on expected losses, modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration. The adoption of this standard did not materially impact our consolidated financial statements.

ACCOUNTING STANDARDS PENDING ADOPTION

In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships that reference LIBOR or another reference rate expected to be discontinued. The ASU is effective immediately for all entities and will apply through December 31, 2022. For additional information, see our LIBOR transition disclosure in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" under "Liquidity and Financial Resources - Debt." We continue to evaluate the effect that discontinuance of LIBOR will have on our contracts.

InCOME tAXES In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes,” which adds new guidance to simplify the accounting for income taxes and changes the accounting for certain income tax transactions. The new standard is effective as of January 1, 2021, and early adoption is permitted. We do not expect this standard to have a material impact on our consolidated financial statements.

defined benefit plans In August 2018, the FASB issued ASU 2018-14, “Changes to the Disclosure Requirements for Defined Benefit Plans,” which adds, removes and clarifies the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and is to be applied retrospectively. The adoption of this standard will have a minor impact on the notes to our consolidated financial statements, specifically, our benefit plans note.

  

 
v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
NATURE OF OPERATIONS 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. 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, Arizona, California, Maryland, New Mexico, Tennessee, Texas, Virginia and Washington D.C. markets.

BASIS OF PRESENTATION 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, 2019 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. For further information, refer to the consolidated financial statements and footnotes included in our most recent Annual Report on Form 10-K. Operating results for the three month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, particularly in light of the uncertainty over the economic and operational impacts of the current novel coronavirus (COVID-19) pandemic.

We are operating as an essential business and while the COVID-19 pandemic has not yet materially impacted our business, operations, or financial results, it may have far-reaching impacts on many aspects of our operations, directly and indirectly, including with respect to its impacts on customer behaviors, business and manufacturing operations, our employees, and the market generally. Our condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates and assumptions affect, among other things, our goodwill and long-lived asset valuations; inventory valuation; assessment of the annual effective tax rate; valuation of deferred income taxes; allowance for doubtful accounts; measurement of cash bonus plans; and pension plan assumptions. Events and changes in circumstances arising after March 31, 2020, including those resulting from the impacts of COVID-19, will be reflected in management’s estimates for future periods.

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

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 LEASES

Our nonmineral leases with initial terms in excess of one year are recognized on the balance sheet as right-of-use (ROU) assets and lease liabilities. Mineral leases are 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 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. The non-lease components of our lease agreements are not separated from the lease components.

For additional information about leases see Note 2.

DISCONTINUED OPERATIONS

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

March 31

in thousands

2020

2019

Discontinued Operations

Pretax gain (loss)

$           354 

$          (638)

Income tax (expense) benefit

(94)

2 

Earnings (loss) on discontinued operations,

net of tax

$           260 

$          (636)

Our discontinued operations include charges/credits 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 (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

March 31

in thousands

2020

2019

Weighted-average common shares

outstanding

132,567 

132,043 

Dilutive effect of

Stock-Only Stock Appreciation Rights

345 

742 

Other stock compensation plans

347 

269 

Weighted-average common shares

outstanding, assuming dilution

133,259 

133,054 

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

March 31

in thousands

2020

2019

Antidilutive common stock equivalents

174 

220 

RECLASSIFICATIONS RECLASSIFICATIONS

Certain items previously reported in specific financial statement captions have been reclassified to conform to the 2020 presentation.

v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
3 Months Ended
Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
Results from Discontinued Operations

Three Months Ended

March 31

in thousands

2020

2019

Discontinued Operations

Pretax gain (loss)

$           354 

$          (638)

Income tax (expense) benefit

(94)

2 

Earnings (loss) on discontinued operations,

net of tax

$           260 

$          (636)

Weighted-Average Common Shares Outstanding Assuming Dilution

Three Months Ended

March 31

in thousands

2020

2019

Weighted-average common shares

outstanding

132,567 

132,043 

Dilutive effect of

Stock-Only Stock Appreciation Rights

345 

742 

Other stock compensation plans

347 

269 

Weighted-average common shares

outstanding, assuming dilution

133,259 

133,054 

Antidilutive Common Stock Equivalents

Three Months Ended

March 31

in thousands

2020

2019

Antidilutive common stock equivalents

174 

220 

v3.20.1
LEASES (Tables)
3 Months Ended
Mar. 31, 2020
LEASES [Abstract]  
Schedule of Lease Assets and Liabilities, Weighted-Average Lease Term and Discount Rate

March 31

December 31

March 31

in thousands

Classification on the Balance Sheet

2020

2019

2019

Assets

Operating lease ROU assets

$     461,712 

$     441,656 

$     434,970 

Accumulated amortization

(40,782)

(33,467)

(8,589)

Total lease assets

Operating lease right-of-use assets, net

$     420,930 

$     408,189 

$     426,381 

Liabilities

Current

Operating

Other current liabilities

$       32,045 

$       29,971 

$       31,255 

Noncurrent

Operating

Operating lease liabilities

399,489 

388,042 

403,426 

Total lease liabilities

$     431,534 

$     418,013 

$     434,681 

Lease Term and Discount Rate

Weighted-average remaining lease term (years)

Operating leases

10.1 

9.9 

10.3 

Weighted-average discount rate

Operating leases

4.2%

4.3%

4.4%

Components of Operating Lease Expense

Three Months Ended

March 31

in thousands

2020

2019

Lease Cost

Operating lease cost

$       14,106 

$       14,127 

Short-term lease cost 1

9,385 

8,700 

Variable lease cost

3,132 

3,068 

Sublease income

(734)

(610)

Total lease cost

$       25,889 

$       25,285 

1

Our short-term lease cost includes the cost of leases with an initial term of one month or less.

Maturity Analysis on an Undiscounted Basis

Operating

in thousands

Leases

Maturity of Lease Liabilities

2020 (remainder)

$       39,045 

2021

49,240 

2022

44,481 

2023

39,295 

2024

35,634 

Thereafter

593,029 

Total minimum lease payments

$     800,724 

Less: Lease payments representing interest

369,190 

Present value of future minimum lease payments

$     431,534 

Less: Current obligations under leases

32,045 

Long-term lease obligations

$     399,489 

v3.20.1
REVENUES (Tables)
3 Months Ended
Mar. 31, 2020
REVENUES [Abstract]  
Revenues by Geographic Market

Three Months Ended March 31, 2020

in thousands

Aggregates

Asphalt

Concrete

Calcium

Total

Total Revenues by Geographic Market 1

East

$     239,869 

$     17,883 

$     62,120 

$              0 

$      319,872 

Gulf Coast

493,297 

33,856 

16,965 

2,026 

546,144 

West

135,060 

88,050 

15,680 

0 

238,790 

Segment sales

$     868,226 

$   139,789 

$     94,765 

$       2,026 

$   1,104,806 

Intersegment sales

(55,564)

0 

0 

0 

(55,564)

Total revenues

$     812,662 

$   139,789 

$     94,765 

$       2,026 

$   1,049,242 

Three Months Ended March 31, 2019

in thousands

Aggregates

Asphalt

Concrete

Calcium

Total

Total Revenues by Geographic Market 1

East

$     224,902 

$     18,216 

$     54,716 

$              0 

$      297,834 

Gulf Coast

496,633 

37,053 

16,505 

1,951 

552,142 

West

113,430 

76,821 

12,416 

0 

202,667 

Segment sales

$     834,965 

$   132,090 

$     83,637 

$       1,951 

$   1,052,643 

Intersegment sales

(56,132)

0 

0 

0 

(56,132)

Total revenues

$     778,833 

$   132,090 

$     83,637 

$       1,951 

$      996,511 

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 and Texas

West market — Arizona, California and New Mexico

Freight & Delivery Revenues

Three Months Ended

March 31

in thousands

2020

2019

Freight & Delivery Revenues

Total revenues

$  1,049,242 

$     996,511 

Freight & delivery revenues 1

(113,961)

(162,605)

Total revenues excluding freight & delivery

$     935,281 

$     833,906 

1

Includes freight & delivery to remote distribution sites.

Reconciliation of Deferred Revenue Balances

Three Months Ended

March 31

in thousands

2020

2019

Deferred Revenue

Balance at beginning of year

$     185,339 

$     192,783 

Revenue recognized from deferred revenue

(1,342)

(1,652)

Balance at end of period

$     183,997 

$     191,131 

v3.20.1
FAIR VALUE MEASUREMENTS (Tables)
3 Months Ended
Mar. 31, 2020
FAIR VALUE MEASUREMENTS [Abstract]  
Fair Value Measurement on Recurring Basis

Level 1 Fair Value

March 31

December 31

March 31

in thousands

2020

2019

2019

Fair Value Recurring

Rabbi Trust

Mutual funds

$       19,001 

$       22,883 

$       20,953 

Total

$       19,001 

$       22,883 

$       20,953 

Level 2 Fair Value

March 31

December 31

March 31

in thousands

2020

2019

2019

Fair Value Recurring

Rabbi Trust

Money market mutual fund

$           520 

$        1,340 

$           490 

Total

$           520 

$        1,340 

$           490 

v3.20.1
DERIVATIVE INSTRUMENTS (Tables)
3 Months Ended
Mar. 31, 2020
DERIVATIVE INSTRUMENTS [Abstract]  
Effects of Changes in Fair Values of Derivatives Designated as Cash Flow Hedges

Three Months Ended

Location on

March 31

in thousands

Statement

2020

2019

Interest Rate Hedges

Loss reclassified from AOCI

Interest

(effective portion)

expense

$       (1,074)

$            (75)

v3.20.1
DEBT (Tables)
3 Months Ended
Mar. 31, 2020
DEBT [Abstract]  
Debt

Effective

March 31

December 31

March 31

in thousands

Interest Rates

2020

2019

2019

Short-term Debt

Bank line of credit expires 2021 1

$                  0 

$                0 

$     178,500 

Total short-term debt

$                  0 

$                0 

$     178,500 

Long-term Debt

Bank line of credit expires 2021 1

$                  0 

$                0 

$                0 

Floating-rate notes due 2020 2

2.13%

250,000 

250,000 

250,000 

Floating-rate notes due 2021 2

2.51%

500,000 

500,000 

500,000 

8.85% notes due 2021

8.88%

6,000 

6,000 

6,000 

4.50% notes due 2025

4.65%

400,000 

400,000 

400,000 

3.90% notes due 2027

4.00%

400,000 

400,000 

400,000 

7.15% notes due 2037

8.05%

129,239 

129,239 

129,239 

4.50% notes due 2047

4.59%

700,000 

700,000 

700,000 

4.70% notes due 2048

5.42%

460,949 

460,949 

460,949 

Other notes

6.46%

179 

185 

202 

Total long-term debt - face value

$    2,846,367 

$  2,846,373 

$  2,846,390 

Unamortized discounts and debt issuance costs

(60,776)

(62,033)

(65,777)

Total long-term debt - book value

$    2,785,591 

$  2,784,340 

$  2,780,613 

Less current maturities

25 

25 

24 

Total long-term debt - reported value

$    2,785,566 

$  2,784,315 

$  2,780,589 

Estimated fair value of long-term debt

$    2,926,140 

$  3,073,693 

$  2,775,511 

1

Borrowings on the bank line of credit are classified as short-term if we intend to repay within twelve months and as long-term if we have the intent and ability to extend payment beyond twelve months.

2

This debt is classified as long-term since we intend to refinance it and have the ability to do so by borrowing on our $750,000,000 delayed draw term loan that closed April 10, 2020.

Standby Letters of Credit

in thousands

Standby Letters of Credit

Risk management insurance

$       47,031 

Reclamation/restoration requirements

7,098 

Total

$       54,129 

v3.20.1
COMMITMENTS AND CONTINGENCIES (Tables)
3 Months Ended
Mar. 31, 2020
COMMITMENTS AND CONTINGENCIES [Abstract]  
Accrued Environmental Remediation Costs

March 31

December 31

March 31

in thousands

2020

2019

2019

Accrued Environmental Remediation Costs

Continuing operations

$        25,837 

$        30,429 

$        37,590 

Retained from former Chemicals business

10,982 

10,972 

10,814 

Total

$        36,819 

$        41,401 

$        48,404 

v3.20.1
ASSET RETIREMENT OBLIGATIONS (Tables)
3 Months Ended
Mar. 31, 2020
ASSET RETIREMENT OBLIGATIONS [Abstract]  
Asset Retirement Obligations Operating Costs

Three Months Ended

March 31

in thousands

2020

2019

ARO Operating Costs

Accretion

$        2,908 

$        2,733 

Depreciation

1,836 

1,841 

Total

$        4,744 

$        4,574 

Reconciliations of Asset Retirement Obligations

Three Months Ended

March 31

in thousands

2020

2019

Asset Retirement Obligations

Balance at beginning of year

$     210,323 

$     225,726 

Liabilities incurred

0 

0 

Liabilities settled

(5,234)

(3,578)

Accretion expense

2,908 

2,733 

Revisions, net

55,448 

305 

Balance at end of period

$     263,445 

$     225,186 

v3.20.1
BENEFIT PLANS (Tables)
3 Months Ended
Mar. 31, 2020
Pension Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Components of Net Periodic Benefit Cost

PENSION BENEFITS

Three Months Ended

March 31

in thousands

2020

2019

Components of Net Periodic Benefit Cost

Service cost

$        1,331 

$        1,249 

Interest cost

7,531 

9,410 

Expected return on plan assets

(12,485)

(11,938)

Amortization of prior service cost

335 

335 

Amortization of actuarial loss

3,140 

1,358 

Net periodic pension benefit cost (credit)

$          (148)

$           414 

Pretax reclassifications from AOCI included in

net periodic pension benefit cost

$        3,475 

$        1,693 

Postretirement Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Components of Net Periodic Benefit Cost

OTHER POSTRETIREMENT BENEFITS

Three Months Ended

March 31

in thousands

2020

2019

Components of Net Periodic Benefit Cost

Service cost

$           380 

$           329 

Interest cost

242 

347 

Amortization of prior service credit

(980)

(980)

Amortization of actuarial gain

(201)

(327)

Net periodic postretirement benefit credit

$          (559)

$          (631)

Pretax reclassifications from AOCI included in

net periodic postretirement benefit credit

$       (1,181)

$       (1,307)

v3.20.1
OTHER COMPREHENSIVE INCOME (Tables)
3 Months Ended
Mar. 31, 2020
OTHER COMPREHENSIVE INCOME [Abstract]  
Accumulated Other Comprehensive Income, Net of Tax

March 31

December 31

March 31

in thousands

2020

2019

2019

AOCI

Interest rate hedges

$       (24,839)

$       (10,953)

$       (11,125)

Pension and postretirement plans

(185,090)

(186,785)

(160,800)

Total

$     (209,929)

$     (197,738)

$     (171,925)

Changes in Accumulated Other Comprehensive Income, Net of Tax

Pension and

Interest Rate

Postretirement

in thousands

Hedges

Benefit Plans

Total

AOCI

Balances as of December 31, 2019

$       (10,953)

$     (186,785)

$     (197,738)

Other comprehensive income (loss)

before reclassifications

(14,680)

0 

(14,680)

Amounts reclassified from AOCI

794 

1,695 

2,489 

Net current period OCI changes

(13,886)

1,695 

(12,191)

Balances as of March 31, 2020

$       (24,839)

$     (185,090)

$     (209,929)

Amounts Reclassified from Accumulated Other Comprehensive Income to Earnings

Three Months Ended

March 31

in thousands

2020

2019

Amortization of Interest Rate Hedge Losses

Interest expense

$          1,074 

$               75 

Benefit from income taxes

(280)

(20)

Total

$             794 

$               55 

Amortization of Pension and Postretirement

Plan Actuarial Loss and Prior Service Cost

Other nonoperating expense

$          2,294 

$             386 

Benefit from income taxes

(599)

(151)

Total

$          1,695 

$             235 

Total reclassifications from AOCI to earnings

$          2,489 

$             290 

 

v3.20.1
EQUITY (Tables)
3 Months Ended
Mar. 31, 2020
EQUITY [Abstract]  
Shares Purchased and Retired

March 31

December 31

March 31

in thousands, except average cost

2020

2019

2019

Shares Purchased and Retired

Number

214 

19 

0 

Total purchase price

$        26,132 

$          2,602 

$                 0 

Average cost per share

$        121.92 

$        139.90 

$            0.00 

Changes in Total Equity

Three Months Ended

March 31

in thousands, except per share data

2020

2019

Total Equity

Balance at beginning of year

$    5,621,857 

$    5,202,903 

Net earnings

60,258 

63,299 

Common stock issued

Share-based compensation plans, net of shares

withheld for taxes

(15,082)

(14,068)

Purchase and retirement of common stock

(26,132)

0 

Share-based compensation expense

6,716 

5,724 

Cash dividends on common stock

($0.34/$0.31 per share, respectively)

(45,100)

(40,939)

Other comprehensive income

(12,191)

290 

Balance at end of period

$    5,590,326 

$    5,217,209 

v3.20.1
SEGMENT REPORTING (Tables)
3 Months Ended
Mar. 31, 2020
SEGMENT REPORTING [Abstract]  
Segment Financial Disclosure

Three Months Ended

March 31

in thousands

2020

2019

Total Revenues

Aggregates 1

$        868,226 

$       834,965 

Asphalt 2

139,789 

132,090 

Concrete

94,765 

83,637 

Calcium

2,026 

1,951 

Segment sales

$     1,104,806 

$    1,052,643 

Aggregates intersegment sales

(55,564)

(56,132)

Total revenues

$     1,049,242 

$       996,511 

Gross Profit

Aggregates

$        194,131 

$       185,716 

Asphalt

(2,435)

(3,272)

Concrete

9,213 

8,563 

Calcium

814 

668 

Total

$        201,723 

$       191,675 

Depreciation, Depletion, Accretion

and Amortization (DDA&A)

Aggregates

$          77,136 

$         72,521 

Asphalt

8,734 

8,550 

Concrete

4,082 

2,964 

Calcium

49 

60 

Other

5,479 

5,086 

Total

$          95,480 

$         89,181 

Identifiable Assets 3

Aggregates

$     9,473,128 

$    9,275,593 

Asphalt

563,630 

564,103 

Concrete

322,044 

288,797 

Calcium

3,602 

3,905 

Total identifiable assets

$   10,362,404 

$  10,132,398 

General corporate assets

146,705 

133,346 

Cash and cash equivalents and restricted cash

120,273 

31,108 

Total assets

$   10,629,382 

$  10,296,852 

1

Includes product sales (crushed stone, sand and gravel, sand, and other aggregates), as well as freight & delivery costs that we pass along to our customers, and service revenues (see Note 4) related to aggregates.

2

Includes product sales, as well as service revenues (see Note 4) from our asphalt construction paving business.

3

Certain temporarily idled assets are included within a segment's Identifiable Assets but the associated DDA&A is shown within Other in the DDA&A section above as the related DDA&A is excluded from segment gross profit.

 

v3.20.1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
3 Months Ended
Mar. 31, 2020
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]  
Supplemental Information Referable to Condensed Consolidated Statements of Cash Flows

Three Months Ended

March 31

in thousands

2020

2019

Cash Payments (Refunds)

Interest (exclusive of amount capitalized)

$       17,033 

$       19,798 

Income taxes

340 

(364)

Noncash Investing and Financing Activities

Accrued liabilities for purchases of property, plant & equipment

$       25,862 

$       34,360 

Right-of-use assets obtained in exchange for new operating lease liabilities 1

21,522 

435,192 

Amounts referable to business acquisitions

Liabilities assumed

0 

(2,720)

1

The 2019 amount includes the initial right-of-use assets resulting from our adoption of ASU 2016-02, “Leases.”

 

v3.20.1
GOODWILL (Tables)
3 Months Ended
Mar. 31, 2020
GOODWILL [Abstract]  
Changes in Carrying Amount of Goodwill by Reportable Segment

in thousands

Aggregates

Asphalt

Concrete

Calcium

Total

Goodwill

Totals at December 31, 2019

$    3,075,428 

$     91,633 

$              0 

$              0 

$    3,167,061 

Totals at March 31, 2020

$    3,075,428 

$     91,633 

$              0 

$              0 

$    3,167,061 

v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2020
USD ($)
state
factor
Mar. 31, 2019
USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]    
State of incorporation NJ  
Number of states | state 20  
Number of demographic factors | factor 3  
Revenues from discontinued operations | $ $ 0 $ 0
v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Results from Discontinued Operations) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]    
Pretax gain (loss) $ 354 $ (638)
Income tax (expense) benefit (94) 2
Earnings (loss) on discontinued operations, net of tax $ 260 $ (636)
v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Weighted-Average Common Shares Outstanding Assuming Dilution) (Details) - shares
shares in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]    
Weighted-average common shares outstanding 132,567 132,043
Dilutive effect of Stock-Only Stock Appreciation Rights 345 742
Dilutive effect of Other stock compensation plans 347 269
Weighted-average common shares outstanding, assuming dilution 133,259 133,054
v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Antidilutive Common Stock Equivalents) (Details) - shares
shares in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]    
Antidilutive common stock equivalents 174 220
v3.20.1
LEASES (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
LEASES [Abstract]    
Cash paid for operating leases $ 13,328 $ 13,333
Finance leases $ 0  
v3.20.1
LEASES (Schedule of Lease Assets and Liabilities, Weighted-Average Lease Term and Discount Rate) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
LEASES [Abstract]      
Operating lease ROU assets $ 461,712 $ 441,656 $ 434,970
Accumulated amortization (40,782) (33,467) (8,589)
Total lease assets 420,930 408,189 426,381
Current obligations under leases 32,045 29,971 31,255
Noncurrent operating liabilities 399,489 388,042 403,426
Total lease liabilities $ 431,534 $ 418,013 $ 434,681
Weighted-average remaining lease term, Operating leases 10 years 1 month 6 days 9 years 10 months 24 days 10 years 3 months 18 days
Weighted-average discount rate, Operating leases 4.20% 4.30% 4.40%
v3.20.1
LEASES (Components of Operating Lease Expense) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
LEASES [Abstract]    
Operating lease cost $ 14,106 $ 14,127
Short-term lease cost [1] 9,385 8,700
Variable lease cost 3,132 3,068
Sublease income (734) (610)
Total lease cost $ 25,889 $ 25,285
[1] Our short-term lease cost includes the cost of leases with an initial term of one month or less.
v3.20.1
LEASES (Maturity Analysis on an Undiscounted Basis) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]      
2020 (remainder) $ 39,045    
2021 49,240    
2022 44,481    
2023 39,295    
2024 35,634    
Thereafter 593,029    
Total minimum lease payments 800,724    
Less: Lease payments representing interest 369,190    
Present value of future minimum lease payments 431,534 $ 418,013 $ 434,681
Less: Current obligations under leases 32,045 29,971 31,255
Long-term lease obligations $ 399,489 $ 388,042 $ 403,426
v3.20.1
INCOME TAXES (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2020
Operating Loss Carryforwards [Line Items]      
Income tax benefit recognition threshold more likely than not 50.00%    
Income tax expense $ 12,194 $ 10,693  
Cash tax benefit $ 13,301    
Alabama [Member] | State [Member] | Earliest Tax Year [Member]      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards expiration year 2023    
Alabama [Member] | State [Member] | Latest Tax Year [Member]      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards expiration year 2032    
Alabama [Member] | Forecast [Member]      
Operating Loss Carryforwards [Line Items]      
State net operating loss carryforwards     $ 63,384
Net operating loss carryforwards, valuation allowance     $ 29,183
v3.20.1
REVENUES (Narrative) (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
item
Mar. 31, 2019
USD ($)
Dec. 31, 2013
USD ($)
Dec. 31, 2012
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Revenue Recognition [Line Items]              
Revenues [1] $ 1,049,242 $ 996,511          
Number of quarries | item 8            
Proceeds from sale of future production     $ 226,926 $ 226,926      
Term of the VPPs 25 years            
Estimated deferred revenue to be recognized in the next 12 months $ 183,997 191,131       $ 185,339 $ 192,783
Service [Member]              
Revenue Recognition [Line Items]              
Revenues $ 39,564 34,515          
Minimum [Member]              
Revenue Recognition [Line Items]              
Coverage of warranty provisions 9 months            
Maximum [Member]              
Revenue Recognition [Line Items]              
Coverage of warranty provisions 1 year            
Maximum [Member] | Construction Paving [Member]              
Revenue Recognition [Line Items]              
Costs for paving contracts expense, expected amortization period 1 year            
Forecast [Member]              
Revenue Recognition [Line Items]              
Estimated deferred revenue to be recognized in the next 12 months         $ 7,500    
Aggregates [Member]              
Revenue Recognition [Line Items]              
Revenues [1] $ 812,662 $ 778,833          
Aggregates [Member] | Minimum [Member]              
Revenue Recognition [Line Items]              
Percent of shipments used for publicly funded construction 45.00%            
Aggregates [Member] | Maximum [Member]              
Revenue Recognition [Line Items]              
Percent of shipments used for publicly funded construction 55.00%            
[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 and Texas

West market — Arizona, California and New Mexico

v3.20.1
REVENUES (Revenues by Geographic Market) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] $ 1,049,242 $ 996,511
Operating Segments [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 1,104,806 1,052,643
Intersegment Sales [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] (55,564) (56,132)
East [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 319,872 297,834
Gulf Coast [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 546,144 552,142
West [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 238,790 202,667
Aggregates [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 812,662 778,833
Aggregates [Member] | Operating Segments [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1],[2] 868,226 834,965
Aggregates [Member] | Intersegment Sales [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] (55,564) (56,132)
Aggregates [Member] | East [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 239,869 224,902
Aggregates [Member] | Gulf Coast [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 493,297 496,633
Aggregates [Member] | West [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 135,060 113,430
Asphalt [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 139,789 132,090
Asphalt [Member] | Operating Segments [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1],[3] 139,789 132,090
Asphalt [Member] | Intersegment Sales [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 0 0
Asphalt [Member] | East [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 17,883 18,216
Asphalt [Member] | Gulf Coast [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 33,856 37,053
Asphalt [Member] | West [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 88,050 76,821
Concrete [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 94,765 83,637
Concrete [Member] | Operating Segments [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 94,765 83,637
Concrete [Member] | Intersegment Sales [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 0 0
Concrete [Member] | East [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 62,120 54,716
Concrete [Member] | Gulf Coast [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 16,965 16,505
Concrete [Member] | West [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 15,680 12,416
Calcium [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 2,026 1,951
Calcium [Member] | Operating Segments [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 2,026 1,951
Calcium [Member] | Intersegment Sales [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 0 0
Calcium [Member] | East [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 0 0
Calcium [Member] | Gulf Coast [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] 2,026 1,951
Calcium [Member] | West [Member]    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total revenues [1] $ 0 $ 0
[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 and Texas

West market — Arizona, California and New Mexico

[2] Includes product sales (crushed stone, sand and gravel, sand, and other aggregates), as well as freight & delivery costs that we pass along to our customers, and service revenues (see Note 4) related to aggregates.
[3] Includes product sales, as well as service revenues (see Note 4) from our asphalt construction paving business.
v3.20.1
REVENUES (Freight & Delivery Revenues) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Disaggregation of Revenue [Line Items]    
Total revenues [1] $ 1,049,242 $ 996,511
Freight & Delivery Revenues [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues [2] (113,961) (162,605)
Total Revenues Excluding Freight & Delivery [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues $ 935,281 $ 833,906
[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 and Texas

West market — Arizona, California and New Mexico

[2] Includes freight & delivery to remote distribution sites
v3.20.1
REVENUES (Reconciliation of Deferred Revenue Balances) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
REVENUES [Abstract]    
Balance at beginning of year $ 185,339 $ 192,783
Revenue recognized from deferred revenue (1,342) (1,652)
Balance at end of period $ 183,997 $ 191,131
v3.20.1
FAIR VALUE MEASUREMENTS (Narrative) (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2020
USD ($)
item
Mar. 31, 2019
USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Number of Rabbi Trusts established | item 2  
Net gains (losses) of the Rabbi Trust investments $ (5,060) $ 1,863
Unrealized net gains (losses) of the Rabbi Trust investments $ (5,060) $ 1,905
v3.20.1
FAIR VALUE MEASUREMENTS (Fair Value Measurement on Recurring Basis) (Details) - Recurring [Member] - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Total $ 19,001 $ 22,883 $ 20,953
Level 1 [Member] | Mutual Funds [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Total 19,001 22,883 20,953
Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Total 520 1,340 490
Level 2 [Member] | Money Market Mutual Fund [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Total $ 520 $ 1,340 $ 490
v3.20.1
DERIVATIVE INSTRUMENTS (Narrative) (Details) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended
Mar. 31, 2020
Mar. 31, 2020
Feb. 29, 2020
Dec. 31, 2019
Mar. 31, 2019
Derivative [Line Items]          
Interest rate hedges $ (24,839) $ (24,839)   $ (10,953) $ (11,125)
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Interest Rate Swap [Member]          
Derivative [Line Items]          
Notional amount of interest rate swap agreements     $ 300,000    
Cash payments for interest rate swap agreements 19,863        
Estimated amount of pretax loss in AOCI reclassified to earnings for the next 12-month period $ (2,324) (2,324)      
Interest rate reclassified to interest expense, ineffective portion   $ 993      
v3.20.1
DERIVATIVE INSTRUMENTS (Effects of Changes in Fair Values of Derivatives Designated as Cash Flow Hedges) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Interest Rate Swap [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]    
Loss reclassified from AOCI (effective portion) $ (1,074) $ (75)
v3.20.1
DEBT (Narrative) (Details)
$ in Thousands
3 Months Ended
Apr. 10, 2020
USD ($)
item
Mar. 31, 2020
USD ($)
item
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Debt Instrument [Line Items]        
Discounts and debt issuance costs   $ 1,258 $ 1,239  
Total long-term debt - face value   2,846,367 2,846,390 $ 2,846,373
Short-term debt   $ 0 178,500 0
Term Loan Due April 2021 [Member] | Subsequent Event [Member]        
Debt Instrument [Line Items]        
Number of draws | item 2      
Maturity year 2021      
Investment-Grade Type Covenants Governed [Member]        
Debt Instrument [Line Items]        
Number of indentures with customary investment-grade type covenants | item   3    
Bank Line of Credit [Member]        
Debt Instrument [Line Items]        
Maximum borrowing capacity   $ 750,000    
Commitment fee   0.15%    
Available borrowing capacity   $ 695,871    
Maturity year   2021    
Borrowings   $ 0    
Bank Line of Credit [Member] | LIBOR [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate   1.25%    
Bank Line of Credit [Member] | Base Rate [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate   0.25%    
Bank Line of Credit [Member] | Maximum, Upon Certain Acquisitions [Member]        
Debt Instrument [Line Items]        
Debt to EBITDA ratio   3.75    
Standby Letters of Credit [Member]        
Debt Instrument [Line Items]        
Outstanding standby letters of credit   $ 54,129    
Period of standby letters of credit   1 year    
Standby Letters of Credit [Member] | LIBOR [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate   0.175%    
Maximum [Member] | Term Loan Due April 2021 [Member] | Subsequent Event [Member]        
Debt Instrument [Line Items]        
Commitment fee 0.25%      
Short-term debt $ 750,000      
Maximum [Member] | Term Loan Due April 2021 [Member] | LIBOR [Member] | Subsequent Event [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate 2.125%      
Maximum [Member] | Term Loan Due April 2021 [Member] | Base Rate [Member] | Subsequent Event [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate 1.125%      
Maximum [Member] | Bank Line of Credit [Member]        
Debt Instrument [Line Items]        
Debt to EBITDA ratio   3.5    
Commitment fee   0.25%    
Maximum [Member] | Bank Line of Credit [Member] | LIBOR [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate   1.75%    
Maximum [Member] | Bank Line of Credit [Member] | Base Rate [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate   0.75%    
Minimum [Member] | Term Loan Due April 2021 [Member] | Subsequent Event [Member]        
Debt Instrument [Line Items]        
Commitment fee 0.125%      
Minimum [Member] | Term Loan Due April 2021 [Member] | LIBOR [Member] | Subsequent Event [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate 1.375%      
Minimum [Member] | Term Loan Due April 2021 [Member] | Base Rate [Member] | Subsequent Event [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate 0.375%      
Minimum [Member] | Bank Line of Credit [Member]        
Debt Instrument [Line Items]        
EBITDA to net cash interest expense ratio   3.0    
Commitment fee   0.10%    
Minimum [Member] | Bank Line of Credit [Member] | LIBOR [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate   1.00%    
Minimum [Member] | Bank Line of Credit [Member] | Base Rate [Member]        
Debt Instrument [Line Items]        
Applicable margin on borrowing rate   0.00%    
Notes [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value   $ 2,846,367    
Notes [Member] | Investment-Grade Type Covenants Governed [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value   2,846,188    
Bank Line of Credit [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value [1]   $ 0 $ 0 $ 0
Maturity year [1]   2021    
[1] Borrowings on the bank line of credit are classified as short-term if we intend to repay within twelve months and as long-term if we have the intent and ability to extend payment beyond twelve months.
v3.20.1
DEBT (Debt) (Details) - USD ($)
$ in Thousands
3 Months Ended
Apr. 10, 2020
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Debt Instrument [Line Items]        
Total short-term debt   $ 0 $ 0 $ 178,500
Total long-term debt - face value   2,846,367 2,846,373 2,846,390
Unamortized discounts and debt issuance costs   (60,776) (62,033) (65,777)
Total long-term debt - book value   2,785,591 2,784,340 2,780,613
Less current maturities   25 25 24
Total long-term debt - reported value   2,785,566 2,784,315 2,780,589
Estimated fair value of long-term debt   2,926,140 3,073,693 2,775,511
Bank Line of Credit [Member]        
Debt Instrument [Line Items]        
Total short-term debt [1]   $ 0 0 178,500
Maturity year [1]   2021    
Bank Line of Credit [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value [1]   $ 0 0 0
Maturity year [1]   2021    
Notes [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value   $ 2,846,367    
Notes [Member] | Floating-Rate Notes Due 2020 [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value [2]   $ 250,000 250,000 250,000
Maturity year [2]   2020    
Effective interest rate [2]   2.13%    
Notes [Member] | Floating-Rate Notes Due 2021 [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value [2]   $ 500,000 500,000 500,000
Maturity year [2]   2021    
Effective interest rate [2]   2.51%    
Notes [Member] | 8.85% notes due 2021 [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value   $ 6,000 6,000 6,000
Interest rate   8.85%    
Maturity year   2021    
Effective interest rate   8.88%    
Notes [Member] | 4.50% notes due 2025 [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value   $ 400,000 400,000 400,000
Interest rate   4.50%    
Maturity year   2025    
Effective interest rate   4.65%    
Notes [Member] | 3.90% notes due 2027 [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value   $ 400,000 400,000 400,000
Interest rate   3.90%    
Maturity year   2027    
Effective interest rate   4.00%    
Notes [Member] | 7.15% notes due 2037 [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value   $ 129,239 129,239 129,239
Interest rate   7.15%    
Maturity year   2037    
Effective interest rate   8.05%    
Notes [Member] | 4.50% notes due 2047 [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value   $ 700,000 700,000 700,000
Interest rate   4.50%    
Maturity year   2047    
Effective interest rate   4.59%    
Notes [Member] | 4.70% notes due 2048 [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value   $ 460,949 460,949 460,949
Interest rate   4.70%    
Maturity year   2048    
Effective interest rate   5.42%    
Other Notes [Member]        
Debt Instrument [Line Items]        
Total long-term debt - face value   $ 179 $ 185 $ 202
Effective interest rate   6.46%    
Subsequent Event [Member] | Term Loan Due April 2021 [Member]        
Debt Instrument [Line Items]        
Maturity year 2021      
Subsequent Event [Member] | Term Loan Due April 2021 [Member] | Maximum [Member]        
Debt Instrument [Line Items]        
Total short-term debt $ 750,000      
[1] Borrowings on the bank line of credit are classified as short-term if we intend to repay within twelve months and as long-term if we have the intent and ability to extend payment beyond twelve months.
[2] This debt is classified as long-term since we intend to refinance it and have the ability to do so by borrowing on our $750,000,000 delayed draw term loan that closed April 10, 2020.
v3.20.1
DEBT (Standby Letters of Credit) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2018
Line of Credit Facility [Line Items]        
Reclamation/restoration requirements $ 263,445 $ 210,323 $ 225,186 $ 225,726
Standby Letters of Credit [Member]        
Line of Credit Facility [Line Items]        
Risk management insurance 47,031      
Reclamation/restoration requirements 7,098      
Total $ 54,129      
v3.20.1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details)
$ in Thousands
1 Months Ended 3 Months Ended
Oct. 31, 2018
mi
Dec. 31, 2017
Sep. 30, 2017
item
Mar. 31, 2016
mi
May 31, 2007
entity
mi
Mar. 31, 2020
USD ($)
item
Dec. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Loss Contingencies [Line Items]                  
Asset retirement obligations           $ 263,445 $ 210,323 $ 225,186 $ 225,726
Number of groundwater extraction wells | item     2            
Contingency loss           0      
Operating lease liabilities           $ 431,534 $ 418,013 $ 434,681  
Parent Company [Member]                  
Loss Contingencies [Line Items]                  
Judge ruled allocation of fault among defendants, percentage   15.00%              
New York Water District Cases [Member]                  
Loss Contingencies [Line Items]                  
Number of cases | item           27      
Cooperating Parties Group [Member]                  
Loss Contingencies [Line Items]                  
Number of other companies to perform a Remedial Investigation/ Feasibility Study related to the Lower Passaic River Clean-Up lawsuit | entity         70        
Number of miles of the River used in the Remedial Investigation/Feasibility Study | mi         17        
Number of miles for bank-to-bank dredging remedy | mi 9     8          
Occidental Chemical Co [Member]                  
Loss Contingencies [Line Items]                  
Judge ruled allocation of fault among defendants, percentage   50.00%              
Texas Brine [Member]                  
Loss Contingencies [Line Items]                  
Judge ruled allocation of fault among defendants, percentage   35.00%              
Number of cases | item           2      
Minimum [Member] | NAFTA Arbitration [Member]                  
Loss Contingencies [Line Items]                  
Arbitration period           2 years      
Maximum [Member] | EPA [Member]                  
Loss Contingencies [Line Items]                  
Estimated implementation costs           $ 1,380,000      
Standby Letters of Credit [Member]                  
Loss Contingencies [Line Items]                  
Outstanding standby letters of credit           $ 54,129      
v3.20.1
COMMITMENTS AND CONTINGENCIES (Accrued Environmental Remediation Costs) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Loss Contingencies [Line Items]      
Accrued Environmental Remediation Costs $ 36,819 $ 41,401 $ 48,404
Continuing Operations [Member]      
Loss Contingencies [Line Items]      
Accrued Environmental Remediation Costs 25,837 30,429 37,590
Retained From Former Chemicals Business [Member]      
Loss Contingencies [Line Items]      
Accrued Environmental Remediation Costs $ 10,982 $ 10,972 $ 10,814
v3.20.1
ASSET RETIREMENT OBLIGATIONS (Narrative) (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2020
USD ($)
a
item
property
Mar. 31, 2019
USD ($)
Asset Retirement Obligations [Line Items]    
Reclamation activities $ 5,234 $ 3,578
California [Member]    
Asset Retirement Obligations [Line Items]    
Reclamation activities $ 722 $ 1,266
Adjacent aggregates sites | property 2  
Property, acres | a 90  
Number of aggregates locations | item 3  
v3.20.1
ASSET RETIREMENT OBLIGATIONS (Asset Retirement Obligations Operating Costs) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
ASSET RETIREMENT OBLIGATIONS [Abstract]    
Accretion $ 2,908 $ 2,733
Depreciation 1,836 1,841
Total $ 4,744 $ 4,574
v3.20.1
ASSET RETIREMENT OBLIGATIONS (Reconciliations of Asset Retirement Obligations) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
ASSET RETIREMENT OBLIGATIONS [Abstract]    
Balance at beginning of year $ 210,323 $ 225,726
Liabilities incurred 0 0
Liabilities settled (5,234) (3,578)
Accretion expense 2,908 2,733
Revisions, net 55,448 305
Balance at end of period $ 263,445 $ 225,186
v3.20.1
BENEFIT PLANS (Narrative) (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2020
USD ($)
entity
Mar. 31, 2019
USD ($)
BENEFIT PLANS [Abstract]    
Number of funded, noncontributory defined benefit pension plans 3  
Number of unfunded, nonqualified pension plans 3  
Number of defined contribution plans 2  
Normal retirement age 65 years  
Expense recognized related to defined contribution plans | $ $ 11,057 $ 13,919
v3.20.1
BENEFIT PLANS (Components of Net Periodic Benefit Cost- Pension Benefits) (Details) - Pension Benefits [Member] - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Components of Net Periodic Benefit Cost    
Service cost $ 1,331 $ 1,249
Interest cost 7,531 9,410
Expected return on plan assets (12,485) (11,938)
Amortization of prior service cost 335 335
Amortization of actuarial loss 3,140 1,358
Net periodic benefit cost (credit) (148) 414
Pretax reclassification from AOCI included in net periodic pension benefit cost $ 3,475 $ 1,693
v3.20.1
BENEFIT PLANS (Components of Net Periodic Benefit Cost- Other Postretirement Benefits) (Details) - Postretirement Benefits [Member] - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Components of Net Periodic Benefit Cost    
Service cost $ 380 $ 329
Interest cost 242 347
Amortization of prior service credit (980) (980)
Amortization of actuarial gain (201) (327)
Net periodic benefit cost (credit) (559) (631)
Pretax reclassifications from AOCI included in net periodic postretirement benefit credit $ (1,181) $ (1,307)
v3.20.1
OTHER COMPREHENSIVE INCOME (Accumulated Other Comprehensive Income, Net of Tax) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
OTHER COMPREHENSIVE INCOME [Abstract]      
Interest rate hedges $ (24,839) $ (10,953) $ (11,125)
Pension and postretirement plans (185,090) (186,785) (160,800)
Total $ (209,929) $ (197,738) $ (171,925)
v3.20.1
OTHER COMPREHENSIVE INCOME (Changes in Accumulated Other Comprehensive Income, Net of Tax) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]    
AOCI, Beginning balance $ (197,738)  
Other comprehensive income (loss) before reclassifications (14,680)  
Amounts reclassified from AOCI 2,489  
Net OCI changes (12,191) $ 290
AOCI, Ending balance (209,929) $ (171,925)
Interest Rate Hedge Losses [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
AOCI, Beginning balance (10,953)  
Other comprehensive income (loss) before reclassifications (14,680)  
Amounts reclassified from AOCI 794  
Net OCI changes (13,886)  
AOCI, Ending balance (24,839)  
Pension and Postretirement Plan Actuarial Loss and Prior Service Cost [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
AOCI, Beginning balance (186,785)  
Other comprehensive income (loss) before reclassifications 0  
Amounts reclassified from AOCI 1,695  
Net OCI changes 1,695  
AOCI, Ending balance $ (185,090)  
v3.20.1
OTHER COMPREHENSIVE INCOME (Amounts Reclassified from Accumulated Other Comprehensive Income to Earnings) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Interest expense $ (30,773) $ (32,934)
Other nonoperating expense (9,336) 3,129
Benefit from income taxes 12,194 10,693
Total 60,258 63,299
Reclassification From AOCI [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Total 2,489 290
Interest Rate Hedge Losses [Member] | Reclassification From AOCI [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Interest expense 1,074 75
Benefit from income taxes (280) (20)
Total 794 55
Pension and Postretirement Plan Actuarial Loss and Prior Service Cost [Member] | Reclassification From AOCI [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Other nonoperating expense 2,294 386
Benefit from income taxes (599) (151)
Total $ 1,695 $ 235
v3.20.1
EQUITY (Narrative) (Details)
3 Months Ended
Mar. 31, 2020
item
$ / shares
shares
Dec. 31, 2019
$ / shares
shares
Mar. 31, 2019
$ / shares
shares
EQUITY [Abstract]      
Common stock, par value | $ / shares $ 1 $ 1 $ 1
Common stock, shares authorized 480,000,000 480,000,000 480,000,000
Number of votes per common stock | item 1    
Preferred stock, shares authorized 5,000,000    
Preferred stock issued 0    
Number of shares held in treasury 0 0 0
Shares remaining under the current authorization repurchase program 8,064,851    
v3.20.1
EQUITY (Shares Purchased and Retired) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
EQUITY [Abstract]      
Shares Purchased and Retired, Number 214 0 19
Shares Purchased and Retired, Total purchase price $ 26,132 $ 0 $ 2,602
Shares Purchased and Retired, Average cost per share $ 121.92 $ 0.00 $ 139.90
v3.20.1
EQUITY (Changes in Total Equity) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
EQUITY [Abstract]    
Balance at beginning of year $ 5,621,857 $ 5,202,903
Net earnings 60,258 63,299
Share-based compensation plans, net of shares withheld for taxes (15,082) (14,068)
Purchase and retirement of common stock (26,132) 0
Share-based compensation expense 6,716 5,724
Cash dividends on common stock ($0.34/$0.31 per share, respectively) (45,100) (40,939)
Other comprehensive income (12,191) 290
Balance at end of period $ 5,590,326 $ 5,217,209
Cash dividend on common stock, per share $ 0.34 $ 0.31
v3.20.1
SEGMENT REPORTING (Narrative) (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2020
USD ($)
segment
Mar. 31, 2019
USD ($)
Number of operating segments | segment 4  
Number of reportable segments | segment 4  
Revenues [1] $ 1,049,242 $ 996,511
Concrete [Member]    
Revenues [1] 94,765 83,637
Aggregates [Member]    
Revenues [1] 812,662 778,833
Asphalt [Member]    
Revenues [1] $ 139,789 $ 132,090
[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 and Texas

West market — Arizona, California and New Mexico

v3.20.1
SEGMENT REPORTING (Segment Financial Disclosure) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]        
Total revenues [1] $ 1,049,242 $ 996,511    
Gross profit 201,723 191,675    
Depreciation, Depletion, Accretion and Amortization (DDA&A) 95,480 89,181    
Cash and cash equivalents and restricted cash 120,273 31,108 $ 274,506 $ 44,404
Total assets 10,629,382 10,296,852 $ 10,648,793  
Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] 1,104,806 1,052,643    
Total assets 10,362,404 10,132,398    
Intersegment Sales [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] (55,564) (56,132)    
Aggregates [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] 812,662 778,833    
Aggregates [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1],[2] 868,226 834,965    
Gross profit 194,131 185,716    
Depreciation, Depletion, Accretion and Amortization (DDA&A) 77,136 72,521    
Total assets [3] 9,473,128 9,275,593    
Aggregates [Member] | Intersegment Sales [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] (55,564) (56,132)    
Asphalt [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] 139,789 132,090    
Asphalt [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1],[4] 139,789 132,090    
Gross profit (2,435) (3,272)    
Depreciation, Depletion, Accretion and Amortization (DDA&A) 8,734 8,550    
Total assets [3] 563,630 564,103    
Asphalt [Member] | Intersegment Sales [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] 0 0    
Concrete [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] 94,765 83,637    
Concrete [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] 94,765 83,637    
Gross profit 9,213 8,563    
Depreciation, Depletion, Accretion and Amortization (DDA&A) 4,082 2,964    
Total assets [3] 322,044 288,797    
Concrete [Member] | Intersegment Sales [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] 0 0    
Calcium [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] 2,026 1,951    
Calcium [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] 2,026 1,951    
Gross profit 814 668    
Depreciation, Depletion, Accretion and Amortization (DDA&A) 49 60    
Total assets [3] 3,602 3,905    
Calcium [Member] | Intersegment Sales [Member]        
Segment Reporting Information [Line Items]        
Total revenues [1] 0 0    
Other Segments [Member]        
Segment Reporting Information [Line Items]        
Depreciation, Depletion, Accretion and Amortization (DDA&A) 5,479 5,086    
Corporate [Member]        
Segment Reporting Information [Line Items]        
Total assets $ 146,705 $ 133,346    
[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 and Texas

West market — Arizona, California and New Mexico

[2] Includes product sales (crushed stone, sand and gravel, sand, and other aggregates), as well as freight & delivery costs that we pass along to our customers, and service revenues (see Note 4) related to aggregates.
[3] Certain temporarily idled assets are included within a segment's Identifiable Assets but the associated DDA&A is shown within Other in the DDA&A section above as the related DDA&A is excluded from segment gross profit.
[4] Includes product sales, as well as service revenues (see Note 4) from our asphalt construction paving business.
v3.20.1
SUPPLEMENTAL CASH FLOW INFORMATION (Supplemental Information Referable to Condensed Consolidated Statements of Cash Flows) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]    
Interest (exclusive of amount capitalized) $ 17,033 $ 19,798
Income taxes 340 (364)
Accrued liabilities for purchases of property, plant & equipment 25,862 34,360
Right-of-use assets obtained in exchange for new operating lease liabilities [1] 21,522 435,192
Amounts referable to business acquisitions Liabilities assumed $ 0 $ (2,720)
[1] The 2019 amount includes the initial right-of-use assets resulting from our adoption of ASU 2016-02, “Leases.”
v3.20.1
GOODWILL (Narrative) (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
segment
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Goodwill [Line Items]      
Goodwill impairment charges $ 0 $ 0  
Number of reportable segments | segment 4    
Goodwill $ 0   $ 0
Calcium [Member]      
Goodwill [Line Items]      
Goodwill, accumulated impairment losses $ 252,664    
v3.20.1
GOODWILL (Changes in Carrying Amount of Goodwill by Reportable Segment) (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Goodwill [Line Items]    
Goodwill, Beginning balance $ 3,167,061 $ 3,161,842
Goodwill, Ending balance 3,167,061 3,167,061
Aggregates [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 3,075,428  
Goodwill, Ending balance 3,075,428 3,075,428
Asphalt [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 91,633  
Goodwill, Ending balance 91,633 91,633
Concrete [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 0  
Goodwill, Ending balance 0 0
Calcium [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 0  
Goodwill, Ending balance $ 0 $ 0
v3.20.1
ACQUISITIONS AND DIVESTITURES (Narrative) (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
item
Mar. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Significant Acquisitions and Disposals [Line Items]      
Amount of assets divested $ 0    
Cash consideration $ 0 $ (1,122)  
Number of facilities divested | item 2    
Gain on sale of property, plant & equipment and businesses $ 999 7,297  
Acquisitions 2019 [Member]      
Significant Acquisitions and Disposals [Line Items]      
Total consideration     $ 45,273
Amortizable intangible assets recognized     $ 25,443
Estimated weighted-average amortization period of intangible assets 19 years 6 months    
Intangible assets amortization period, tax purposes 15 years    
Georgia [Member]      
Significant Acquisitions and Disposals [Line Items]      
Gain on sale of property, plant & equipment and businesses   $ 4,064