VULCAN MATERIALS CO, 10-Q filed on 11/2/2016
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2016
Oct. 28, 2016
Document and Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Sep. 30, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q3 
 
Trading Symbol
VMC 
 
Entity Registrant Name
Vulcan Materials CO 
 
Entity Central Index Key
0001396009 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
132,309,274 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Assets
 
 
 
Cash and cash equivalents
$ 135,365 
$ 284,060 
$ 168,681 
Restricted cash
1,150 
Accounts and notes receivable
 
 
 
Accounts and notes receivable, gross
536,242 
423,600 
558,755 
Less: Allowance for doubtful accounts
(4,260)
(5,576)
(5,770)
Accounts and notes receivable, net
531,982 
418,024 
552,985 
Inventories
 
 
 
Finished products
283,266 
297,925 
275,717 
Raw materials
25,411 
21,765 
21,680 
Products in process
2,753 
1,008 
1,161 
Operating supplies and other
26,612 
26,375 
28,148 
Inventories
338,042 
347,073 
326,706 
Current deferred income taxes
39,301 
Prepaid expenses
71,370 
34,284 
56,017 
Total current assets
1,076,759 
1,084,591 
1,143,690 
Investments and long-term receivables
38,914 
40,558 
40,516 
Property, plant & equipment
 
 
 
Property, plant & equipment, cost
7,105,036 
6,891,287 
6,803,588 
Reserve for depreciation, depletion & amortization
(3,876,743)
(3,734,997)
(3,683,961)
Property, plant & equipment, net
3,228,293 
3,156,290 
3,119,627 
Goodwill
3,094,824 
3,094,824 
3,094,824 
Other intangible assets, net
753,314 
766,579 
766,695 
Other noncurrent assets
165,981 
158,790 
151,514 
Total assets
8,358,085 
8,301,632 
8,316,866 
Liabilities
 
 
 
Current maturities of long-term debt
131 
130 
130 
Trade payables and accruals
163,139 
175,729 
195,536 
Other current liabilities
197,642 
177,620 
216,411 
Total current liabilities
360,912 
353,479 
412,077 
Long-term debt
1,983,639 
1,980,334 
1,979,493 
Noncurrent deferred income taxes
706,715 
681,096 
692,643 
Deferred revenue
201,732 
207,660 
209,651 
Other noncurrent liabilities
601,117 
624,875 
659,725 
Total liabilities
3,854,115 
3,847,444 
3,953,589 
Other commitments and contingencies (Note 8)
   
   
   
Equity
 
 
 
Common stock, $1 par value, Authorized 480,000 shares, Outstanding 132,309, 133,172 and 133,315 shares, respectively
132,309 
133,172 
133,315 
Capital in excess of par value
2,829,806 
2,822,578 
2,812,593 
Retained earnings
1,660,961 
1,618,507 
1,564,215 
Accumulated other comprehensive loss
(119,106)
(120,069)
(146,846)
Total equity
4,503,970 
4,454,188 
4,363,277 
Total liabilities and equity
$ 8,358,085 
$ 8,301,632 
$ 8,316,866 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
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
132,309,000 
133,172,000 
133,315,000 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
Share data in Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
 
 
 
 
Total revenues
$ 1,008,140,000 
$ 1,038,460,000 
$ 2,719,693,000 
$ 2,564,896,000 
Cost of revenues
703,931,000 
747,170,000 
1,958,581,000 
1,961,292,000 
Gross profit
304,209,000 
291,290,000 
761,112,000 
603,604,000 
Selling, administrative and general expenses
76,311,000 
71,390,000 
235,460,000 
207,350,000 
Gain on sale of property, plant & equipment and businesses
2,023,000 
799,000 
2,934,000 
7,423,000 
Business interruption claims recovery
690,000 
11,652,000 
Impairment of long-lived assets
(10,506,000)
(5,190,000)
Restructuring charges
(448,000)
(320,000)
(4,546,000)
Other operating expense, net
(3,535,000)
(8,045,000)
(23,629,000)
(17,201,000)
Operating earnings
227,076,000 
212,206,000 
505,783,000 
376,740,000 
Other nonoperating income (expense), net
990,000 
(2,818,000)
325,000 
(2,277,000)
Interest expense, net
33,126,000 
37,800,000 
100,192,000 
183,931,000 
Earnings from continuing operations before income taxes
194,940,000 
171,588,000 
405,916,000 
190,532,000 
Provision for income taxes
52,062,000 
45,386,000 
116,026,000 
51,177,000 
Earnings from continuing operations
142,878,000 
126,202,000 
289,890,000 
139,355,000 
Loss on discontinued operations, net of tax
(3,113,000)
(2,397,000)
(7,451,000)
(7,066,000)
Net earnings
139,765,000 
123,805,000 
282,439,000 
132,289,000 
Other comprehensive income, net of tax
 
 
 
 
Reclassification adjustment for cash flow hedges
307,000 
282,000 
902,000 
5,607,000 
Amortization of actuarial loss and prior service cost for benefit plans
20,000 
3,883,000 
61,000 
9,261,000 
Other comprehensive income
327,000 
4,165,000 
963,000 
14,868,000 
Comprehensive income
140,092,000 
127,970,000 
283,402,000 
147,157,000 
Basic earnings (loss) per share
 
 
 
 
Continuing operations
$ 1.07 
$ 0.95 
$ 2.17 
$ 1.05 
Discontinued operations
$ (0.02)
$ (0.02)
$ (0.05)
$ (0.06)
Net earnings
$ 1.05 
$ 0.93 
$ 2.12 
$ 0.99 
Diluted earnings (loss) per share
 
 
 
 
Continuing operations
$ 1.06 
$ 0.93 
$ 2.14 
$ 1.03 
Discontinued operations
$ (0.02)
$ (0.02)
$ (0.05)
$ (0.05)
Net earnings
$ 1.04 
$ 0.91 
$ 2.09 
$ 0.98 
Weighted-average common shares outstanding
 
 
 
 
Basic
133,019 
133,474 
133,418 
133,082 
Assuming dilution
135,033 
135,558 
135,192 
134,942 
Cash dividends per share of common stock
$ 0.20 
$ 0.10 
$ 0.60 
$ 0.30 
Depreciation, depletion, accretion and amortization
$ 72,049,000 
$ 69,662,000 
$ 213,362,000 
$ 204,770,000 
Effective tax rate from continuing operations
26.70% 
26.50% 
28.60% 
26.90% 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Operating Activities
 
 
Net earnings
$ 282,439 
$ 132,289 
Adjustments to reconcile net earnings to net cash provided by operating activities
 
 
Depreciation, depletion, accretion and amortization
213,362 
204,770 
Net gain on sale of property, plant & equipment and businesses
(2,934)
(7,423)
Contributions to pension plans
(7,126)
(11,337)
Share-based compensation expense
15,645 
14,020 
Excess tax benefits from share-based compensation
(26,747)
(16,950)
Deferred tax provision (benefit)
25,094 
(7,640)
Cost of debt purchase
67,075 
Changes in assets and liabilities before initial effects of business acquisitions and dispositions
(121,097)
(79,000)
Other, net
(33,188)
(14,467)
Net cash provided by operating activities
345,448 
281,337 
Investing Activities
 
 
Purchases of property, plant & equipment
(287,440)
(214,815)
Proceeds from sale of property, plant & equipment
5,865 
4,464 
Payment for businesses acquired, net of acquired cash
(1,611)
(20,801)
Decrease in restricted cash
1,150 
Other, net
2,488 
(301)
Net cash used for investing activities
(279,548)
(231,453)
Financing Activities
 
 
Proceeds from line of credit
3,000 
291,000 
Payments of line of credit
(3,000)
(206,000)
Payments of current maturities and long-term debt
(14)
(545,056)
Proceeds from issuance of long-term debt
400,000 
Debt and line of credit issuance costs
(7,382)
Purchases of common stock
(161,463)
Dividends paid
(79,865)
(39,878)
Proceeds from exercise of stock options
67,888 
Excess tax benefits from share-based compensation
26,747 
16,950 
Other, net
Net cash used for financing activities
(214,595)
(22,476)
Net increase (decrease) in cash and cash equivalents
(148,695)
27,408 
Cash and cash equivalents at beginning of year
284,060 
141,273 
Cash and cash equivalents at end of period
$ 135,365 
$ 168,681 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 producer of construction aggregates (primarily crushed stone, sand and gravel) and a major producer of asphalt mix and ready-mixed concrete.



We operate primarily in the United States and our principal product — aggregates — is used in virtually all types of public and private construction projects and in the production of asphalt mix and ready-mixed concrete. We serve markets in twenty states, Washington D.C., and the local markets surrounding our operations in Mexico and the Bahamas. Our primary focus is serving states in 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 mid-Atlantic, Georgia, Southwestern and Western markets.



BASIS OF PRESENTATION



Our accompanying unaudited condensed consolidated financial statements were prepared in compliance with the instructions to Form 10-Q and Article 10 of Regulation S-X and thus do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. Our Condensed Consolidated Balance Sheet as of December 31, 2015 was derived from the audited financial statement, but it does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of our management, the statements reflect all adjustments, including those of a normal recurring nature, necessary to present fairly the results of the reported interim periods. Operating results for the three and nine month periods ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and footnotes included in our most recent Annual Report on Form 10-K.



Due to the 2005 sale of our Chemicals business as described in Note 2, the results of the Chemicals business are presented as discontinued operations in the accompanying Condensed Consolidated Statements of Comprehensive Income.



RECLASSIFICATIONS



Certain items previously reported in specific financial statement captions have been reclassified to conform with the 2016 presentation.



RESTRUCTURING CHARGES



In 2014, we announced changes to our executive management team, and a new divisional organization structure that was effective January 1, 2015. During the nine months ended September 30, 2016 and September 30, 2015, we incurred $320,000 and $4,546,000, respectively, of costs related to these initiatives. We do not expect to incur any future charges related to this initiative.



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

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding

133,019 

 

 

133,474 

 

 

133,418 

 

 

133,082 

 

Dilutive effect of

 

 

 

 

 

 

 

 

 

 

 

   Stock-Only Stock Appreciation Rights

961 

 

 

919 

 

 

957 

 

 

1,024 

 

   Other stock compensation plans

1,053 

 

 

1,165 

 

 

817 

 

 

836 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding, assuming dilution

135,033 

 

 

135,558 

 

 

135,192 

 

 

134,942 

 



All dilutive common stock equivalents are reflected in our earnings per share calculations. Antidilutive common stock equivalents are not included 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 are excluded. There were no excluded shares for the periods presented.



The number of antidilutive common stock equivalents for which the exercise price exceeds the weighted-average market price is as follows:







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Antidilutive common stock equivalents

 

 

545 

 

 

234 

 

 

555 

 

 

 

DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS

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. There were no revenues from discontinued operations for the periods presented. Results from discontinued operations are as follows:







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

Pretax loss

$       (5,135)

 

 

$       (3,974)

 

 

$    (12,312)

 

 

$    (11,627)

 

Income tax benefit

2,022 

 

 

1,577 

 

 

4,861 

 

 

4,561 

 

Loss on discontinued operations,

 

 

 

 

 

 

 

 

 

 

 

  net of tax

$       (3,113)

 

 

$       (2,397)

 

 

$       (7,451)

 

 

$       (7,066)

 



The losses from discontinued operations noted above include charges related to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business. These losses resulted primarily from charges associated with the Lower Passaic and Texas Brine matters as further discussed in Note 8.

 

 

INCOME TAXES
INCOME TAXES

Note 3: Income Taxes



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



In the third quarter of 2016, we recorded income tax expense from continuing operations of $52,062,000 compared to $45,386,000 in the third quarter of 2015. The increase in our income tax expense resulted largely from applying the statutory rate to the increase in our pretax earnings.



For the first nine months of 2016, we recorded income tax expense from continuing operations of $116,026,000 compared to $51,177,000 for the first nine months of 2015. The increase in our income tax expense resulted largely from applying the statutory rate to the increase in our pretax earnings.



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. With our adoption of Accounting Standards Update 2015-17, “Balance Sheet Classification of Deferred Taxes” as of December 31, 2015, all deferred tax assets and liabilities are presented as noncurrent. We adopted this standard prospectively and as a result, we did not restate periods prior to adoption.



Each quarter we analyze the likelihood that our deferred tax assets will be realized. Realization of the deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character in either the carryback or carryforward period. 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.



Based on our third quarter 2016 analysis, we believe it is more likely than not that we will realize the benefit of all our deferred tax assets with the exception of certain state net operating loss carryforwards. For December 31, 2016, we project deferred tax assets related to state net operating loss carryforwards of $55,318,000, of which $52,995,000 relates to Alabama. The Alabama net operating loss carryforward, if not utilized, would expire in years 20222029. Prior to 2015, we carried a full valuation allowance against this Alabama deferred tax asset as we did not expect to utilize any portion of it. During 2015, we restructured our legal entities which, among other benefits, resulted in a partial release of the valuation allowance in the amount of $4,655,000 during the third quarter of 2015. Our analyses over the last four quarters have confirmed our third quarter 2015 conclusion but resulted in no further reductions of the valuation allowance. We expect to further reduce, or possibly eliminate, this valuation allowance once we have returned to sustained profitability (as defined in our most recent Annual Report on Form 10-K), which we project could occur in the fourth quarter of 2016.



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



A summary of our deferred tax assets is included in Note 9 “Income Taxes” in our Annual Report on Form 10-K for the year ended December 31, 2015.

 

 

DEFERRED REVENUE
DEFERRED REVENUE

Note 4: deferred revenue



In 2013 and 2012, we sold a percentage interest in future production structured as volumetric production payments (VPPs).



The VPPs:



§

relate to eight quarries in Georgia and South Carolina

§

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

§

are both time and volume limited

§

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



Our consolidated total revenues exclude the sales of aggregates owned by the VPP purchaser.



We received net cash proceeds from the sale of the VPPs of $153,282,000 and $73,644,000 for the 2013 and 2012 transactions, respectively. These proceeds were recorded as deferred revenue on the balance sheet and are amortized to revenue on a unit-of-sales basis over the terms of the VPPs (expected to be approximately 25 years, limited by volume rather than time).



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







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Deferred Revenue

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$     210,200 

 

 

$     217,429 

 

 

$     214,060 

 

 

$     219,968 

 

  Amortization of deferred revenue

(2,068)

 

 

(1,778)

 

 

(5,928)

 

 

(4,317)

 

Balance at end of period

$     208,132 

 

 

$     215,651 

 

 

$     208,132 

 

 

$     215,651 

 



Based on expected sales from the specified quarries, we expect to recognize approximately $6,400,000 of deferred revenue as income during the 12-month period ending September 30, 2017 (reflected in other current liabilities in our 2016 Condensed Consolidated Balance Sheet).

 

 

FAIR VALUE MEASUREMENTS
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



September 30

 

 

December 31

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

Fair Value Recurring

 

 

 

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

 

 

 

  Mutual funds

$        6,601 

 

 

$      11,472 

 

 

$      12,081 

 

  Equities

8,574 

 

 

8,992 

 

 

8,778 

 

Total

$      15,175 

 

 

$      20,464 

 

 

$      20,859 

 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Level 2 Fair Value



September 30

 

 

December 31

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

Fair Value Recurring

 

 

 

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

 

 

 

  Money market mutual fund

$        2,144 

 

 

$        2,124 

 

 

$        1,464 

 

Total

$        2,144 

 

 

$        2,124 

 

 

$        1,464 

 



We have established 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 and equity securities 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 $1,379,000 and $(1,964,000) for the nine months ended September 30, 2016 and 2015, respectively. The portions of the net gains (losses) related to investments still held by the Rabbi Trusts at September 30, 2016 and 2015 were $273,000 and $(2,068,000), respectively.



The year-to-date decrease of $5,269,000 in total Rabbi Trust asset fair values at September 30, 2016 is primarily attributable to the elections by several retired executives to receive their distributions from the nonqualified retirement and deferred compensation plans.



The carrying values of our cash equivalents, restricted cash, accounts and notes receivable, short-term debt, trade payables and accruals, and 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.



Assets subject to fair value measurement on a nonrecurring basis are summarized below:







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Period ending September 30, 2016

 

 

Period ending September 30, 2015

 



 

 

 

Impairment

 

 

 

 

 

Impairment

 

in thousands

Level 2 

 

 

Charges

 

 

Level 2

 

 

Charges

 

Fair Value Nonrecurring

 

 

 

 

 

 

 

 

 

 

 

Property, plant & equipment, net

$              0 

 

 

$       1,359 

 

 

$              0 

 

 

$       2,176 

 

Other intangible assets, net

 

 

8,180 

 

 

 

 

2,858 

 

Other assets

 

 

967 

 

 

 

 

156 

 

Total

$              0 

 

 

$     10,506 

 

 

$              0 

 

 

$       5,190 

 



We recorded $10,506,000 and $5,190,000 of losses on impairment of long-lived assets for the nine months ended September 30, 2016 and 2015, respectively, reducing the carrying value of these Aggregates segment assets to their estimated fair values of $0 and $0. Fair value was estimated using a market approach (observed transactions involving comparable assets in similar locations).

 

 

DERIVATIVE INSTRUMENTS
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 expenses. We do not utilize 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. The interest rate swap agreements described below were designated as either cash flow hedges or fair value hedges. The changes in fair value of our 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. The changes in fair value of our interest rate swap fair value hedges are recorded as interest expense consistent with the change in the fair value of the hedged items attributable to the risk being hedged.



CASH FLOW HEDGES



During 2007, we entered into fifteen forward starting interest rate locks on $1,500,000,000 of future debt issuances in order to hedge the risk of higher interest rates. Upon the 2007 and 2008 issuances of the related fixed-rate debt, underlying interest rates were lower than the rate locks and we terminated and settled these forward starting locks for cash payments of $89,777,000. This amount was booked to AOCI and is being 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

 

 

Nine Months Ended

 



Location on

 

September 30

 

 

September 30

 

in thousands

Statement

 

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Cash Flow Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss reclassified from AOCI

Interest

 

 

 

 

 

 

 

 

 

 

 

 

  (effective portion)

expense

 

$          (507)

 

 

$          (467)

 

 

$       (1,490)

 

 

$       (9,282)

 



The loss reclassified from AOCI for the nine months ended September 30, 2015 includes the acceleration of a proportional amount of the deferred loss in the amount of $7,208,000, referable to the debt purchases as described in Note 7.



For the 12-month period ending September 30, 2017, we estimate that $2,135,000 of the pretax loss in AOCI will be reclassified to earnings.



FAIR VALUE HEDGES

In June 2011, we issued $500,000,000 of 6.50% fixed-rate notes due in 2016 to refinance near term floating-rate debt. Concurrently, we entered into interest rate swap agreements in the stated amount of $500,000,000 to reestablish the pre-refinancing mix of fixed-rate and floating-rate debt. Under these agreements, we paid 6-month London Interbank Offered Rate (LIBOR) plus a spread of 4.05% and received a fixed interest rate of 6.50%. Additionally, in June 2011, we entered into interest rate swap agreements on our $150,000,000 of 10.125% fixed-rate notes due in 2015. Under these agreements, we paid 6-month LIBOR plus a spread of 8.03% and received a fixed interest rate of 10.125%. In August 2011, we terminated and settled these interest rate swap agreements for $25,382,000 of cash proceeds. The $23,387,000 gain component of the settlement (cash proceeds less $1,995,000 of accrued interest) was added to the carrying value of the related debt and was amortized as a reduction to interest expense over the terms of the related debt using the effective interest method.



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







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Nine Months Ended

 



 

 

September 30

 

 

September 30

 

in thousands

 

 

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Deferred Gain on Settlement

 

 

 

 

 

 

 

 

 

 

 

 

Amortized to earnings as a reduction

 

 

 

 

 

 

 

 

 

 

 

 

  to interest expense

 

$              0 

 

 

$          282 

 

 

$              0 

 

 

$       2,795 

 



The deferred gain was fully amortized in December 2015, concurrent with the retirement of the 10.125% notes due 2015. The amortized deferred gain for the nine months ended September 30, 2015 includes the acceleration of a proportional amount of the deferred gain in the amount of $1,642,000 referable to the debt purchases as described in Note 7.

 

 

DEBT
DEBT

Note 7: Debt



Debt is detailed as follows:









 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Effective

 

September 30

 

 

December 31

 

 

September 30

 

in thousands

Interest Rates

 

2016 

 

 

2015 

 

 

2015 

 

Short-term Debt

 

 

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

n/a

 

$                  0 

 

 

$                0 

 

 

$                0 

 

Total short-term debt

 

 

$                  0 

 

 

$                0 

 

 

$                0 

 

Long-term Debt

 

 

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

1.25% 

 

$       235,000 

 

 

$     235,000 

 

 

$       85,000 

 

10.125% notes due 2015 

n/a

 

 

 

 

 

150,000 

 

7.00% notes due 2018

7.87% 

 

272,512 

 

 

272,512 

 

 

272,512 

 

10.375% notes due 2018

10.63% 

 

250,000 

 

 

250,000 

 

 

250,000 

 

7.50% notes due 2021

7.75% 

 

600,000 

 

 

600,000 

 

 

600,000 

 

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 

 

7.15% notes due 2037

8.05% 

 

240,188 

 

 

240,188 

 

 

240,188 

 

Other notes 3

6.24% 

 

484 

 

 

498 

 

 

503 

 

Total long-term debt - face value

 

 

$    2,004,184 

 

 

$  2,004,198 

 

 

$  2,004,203 

 

Unamortized discounts and debt issuance costs

 

 

(20,414)

 

 

(23,734)

 

 

(24,821)

 

Unamortized deferred interest rate swap gain 4

 

 

 

 

 

 

241 

 

Total long-term debt - book value

 

 

$    1,983,770 

 

 

$  1,980,464 

 

 

$  1,979,623 

 

Less current maturities

 

 

131 

 

 

130 

 

 

130 

 

Total long-term debt - reported value

 

 

$    1,983,639 

 

 

$  1,980,334 

 

 

$  1,979,493 

 

Estimated fair value of long-term debt

 

 

$    2,305,065 

 

 

$  2,204,816 

 

 

$  2,191,361 

 







 

Borrowings on the bank line of credit are classified as short-term debt if we intend to repay within twelve months and as long-term debt otherwise.

The effective interest rate is the spread over LIBOR as of the most recent balance sheet date.

Non-publicly traded debt.

The unamortized deferred gain was realized upon the August 2011 settlement of interest rate swaps as described in Note 6.



Our total long-term debt - book value is presented in the table above net of unamortized discounts from par, unamortized deferred debt issuance costs and unamortized deferred interest rate swap settlement gain. Discounts and debt issuance costs are amortized using the effective interest method over the terms of the respective notes resulting in $3,320,000 of net interest expense for these items for the nine months ended September 30, 2016.



The estimated fair value of our debt presented in the table above was determined by: (1) averaging several asking price quotes for the publicly traded notes and (2) assuming par value for the remainder of the debt. The fair value estimates for the publicly traded notes were based on Level 2 information (as defined in Note 5) as of their respective balance sheet dates.





LINE OF CREDIT



In June 2015, we cancelled our secured $500,000,000 line of credit and entered into an unsecured $750,000,000 line of credit (incurring $2,589,000 of transaction fees).



The line of credit agreement expires in June 2020 and contains affirmative, negative and financial covenants customary for an unsecured 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, and (2) a minimum ratio of EBITDA to net cash interest expense of 3.0:1. As of September 30, 2016, we were in compliance with the line of credit covenants.



Borrowings on our line of credit are classified as short-term debt if we intend to repay within twelve months and as long-term debt 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 2.00%, or SunTrust Bank’s base rate (generally, its prime rate) plus a credit margin ranging from 0.00% to 1.00%. The credit margin for both LIBOR and base rate borrowings is determined by either our ratio of debt to EBITDA or our credit ratings, based on the metric that produces the lower credit spread. 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 0.35% determined by either our ratio of debt to EBITDA or our credit ratings, based on the metric that produces the lower fee. As of September 30, 2016, 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 September 30, 2016, our available borrowing capacity was $475,160,000. Utilization of the borrowing capacity was as follows:



§

$235,000,000 was borrowed

§

$39,840,000 was used to provide support for outstanding standby letters of credit





TERM DEBT



All of our term debt is unsecured. All such debt, other than the $484,000 of other notes, is governed by two essentially identical indentures that contain customary investment-grade type covenants. The primary covenant in both indentures limits the amount of secured debt we may incur without ratably securing such debt. As of September 30, 2016, we were in compliance with all of the term debt covenants.



In December 2015, we repaid our $150,000,000 10.125% notes due 2015 via borrowing on our line of credit. In August 2015, we repaid our $14,000,000 industrial revenue bond due 2022 via borrowing on our line of credit. These repayments did not incur any prepayment penalties.



In March 2015, we issued $400,000,000 of 4.50% senior notes due 2025. Proceeds (net of underwriter fees and other transaction costs) of $395,207,000 were partially used to fund the March 30, 2015 purchase, via tender offer, of $127,303,000 principal amount (32%) of the 7.00% notes due 2018. The March 2015 debt purchase cost $145,899,000, including an $18,140,000 premium above the principal amount of the notes and transaction costs of $456,000. The premium primarily reflects the trading price of the notes relative to par prior to the tender offer commencement. Additionally, we recognized $3,138,000 of net noncash expense associated with the acceleration of a proportional amount of unamortized discounts, deferred debt issuance costs, and deferred interest rate derivative settlement gains and losses. The combined first quarter 2015 charge of $21,734,000 was a component of interest expense for the nine months ended September 30, 2015.



The remaining net proceeds from the March 2015 debt issuance, together with cash on hand and borrowings under our line of credit, funded: (1) the April 2015 redemption of $218,633,000 principal amount (100%) of the 6.40% notes due 2017, (2) the April 2015 redemption of $125,001,000 principal amount (100%) of the 6.50% notes due 2016 and (3) the April 2015 purchase, via the tender offer commenced in March 2015 of $185,000 principal amount (less than 1%) of the 7.00% notes due 2018. The April 2015 debt purchases cost $385,024,000, including a $41,153,000 premium above the principal amount of the notes and transaction costs of $52,000. The premium primarily reflects the make-whole value of the 2016 notes and the 2017 notes. Additionally, we recognized $4,136,000 of net noncash expense associated with the acceleration of unamortized discounts, deferred debt issuance costs, and deferred interest rate derivative settlement gains and losses. The combined second quarter 2015 charge of $45,341,000 was a component of interest expense for the nine months ended September 30, 2015.





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 cancelled 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 September 30, 2016 are summarized by purpose in the table below:







 

 



 

 

in thousands

 

 

Standby Letters of Credit

 

 

Risk management insurance

$       34,111 

 

Reclamation/restoration requirements

5,729 

 

Total

$       39,840 

 

 

 

COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES

Note 8: Commitments and Contingencies



As summarized by purpose directly above in Note 7, our standby letters of credit totaled $39,840,000 as of September 30, 2016.



As described in Note 9, our asset retirement obligations totaled $214,686,000 as of September 30, 2016.



LITIGATION AND ENVIRONMENTAL MATTERS



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, other material legal proceedings are more specifically described below.



§

Lower Passaic River Study Area (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) 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). However, before the draft RI/FS was issued in final form, 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.



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. Vulcan 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. Vulcan did not manufacture any of these risk drivers and has 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. Vulcan does not agree that a bank-to-bank remedy is warranted, and Vulcan is 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 — During the operation of its former Chemicals Division, Vulcan was the lessee to a salt lease from 1976 – 2005 in an underground salt dome formation in Assumption Parish, Louisiana. The Texas Brine Company (Texas Brine) operated this salt mine for the account of Vulcan. Vulcan sold its Chemicals Division in 2005 and assigned the lease to the purchaser, and Vulcan has had no association with the leased premises or Texas Brine since that time. In August 2012, a sinkhole developed near the salt dome and numerous lawsuits were filed in state court in Assumption Parish, Louisiana. Other lawsuits, including class action litigation, were also filed in August 2012 in federal court in the Eastern District of Louisiana in New Orleans.



There are numerous defendants 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. Vulcan has since been added as a direct and third-party defendant by other parties, including a direct claim by the state of Louisiana. The damages alleged in the litigation range from individual plaintiffs’ claims for property damage, to the state of Louisiana’s claim for response costs, to claims for physical damages to oil pipelines, to business interruption claims. In addition to the plaintiffs’ claims, Vulcan has also been sued for contractual indemnity and comparative fault by both Texas Brine and Occidental.  The total amount of damages claimed is in excess of $500 million. It is alleged that the sinkhole was caused, in whole or in part, by Vulcan’s negligent actions or failure to act. It is also alleged that Vulcan breached the salt lease, as well as an operating agreement and a drilling agreement with Texas Brine; that Vulcan is strictly liable for certain property damages in its capacity as a former assignee of the salt lease; and that Vulcan violated certain covenants and conditions in the agreement under which it sold its Chemicals Division in 2005. Vulcan has made claims for contractual indemnity, comparative fault, and breach of contract against Texas Brine, as well as claims for contractual indemnity and comparative fault against Occidental. Discovery is ongoing and the first trial date in any of these cases has been set for March 2017. At this time, we cannot reasonably estimate a range of liability pertaining to this matter.



§

HEWITT LANDFILL MATTER (SUPERFUND SITE) — In September 2015, the Los Angeles Regional Water Quality Control Board (RWQCB) issued a Cleanup and Abatement Order (CAO) 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. The CAO follows a 2014 Investigative Order from the RWQCB that sought data and a technical evaluation regarding the Hewitt Landfill, and a subsequent amendment to the Investigative Order requiring Vulcan to provide groundwater monitoring results to the RWQCB and to create and implement a work plan for further investigation of the Hewitt Landfill. In April 2016, Vulcan submitted an interim remedial action plan (IRAP) to the RWQCB, proposing a pilot test of a pump and treat system; testing and implementation of a leachate recovery system; and storm water capture and conveyance improvements. Until this pilot testing and additional investigative work is complete, we are unable to estimate the cost of remedial action.



Vulcan is 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.  In July 2016, the EPA sent a letter to Vulcan requesting that we enter into an AOC for remedial design work at the NHOU including, but not limited to, the design of two or more groundwater extraction wells to be located south of the Hewitt Landfill. In September 2016, Vulcan sent a letter to the EPA agreeing to negotiate an AOC and develop a remedial design. The estimated costs to develop the remedial design were immaterial and accrued in the third quarter, and we expect negotiation of the AOC to begin in the fourth quarter of 2016.



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.

 

 

ASSET RETIREMENT OBLIGATIONS
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 something 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. Essentially all these AROs relate to our underlying land parcels, including both owned properties and mineral leases. For the three and nine month periods ended September 30, we recognized ARO operating costs related to accretion of the liabilities and depreciation of the assets as follows:







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

ARO Operating Costs

 

 

 

 

 

 

 

 

 

 

 

Accretion

$        2,692 

 

 

$        2,766 

 

 

$        8,163 

 

 

$        8,553 

 

Depreciation

1,469 

 

 

1,681 

 

 

4,783 

 

 

4,683 

 

Total

$        4,161 

 

 

$        4,447 

 

 

$      12,946 

 

 

$      13,236 

 



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

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Asset Retirement Obligations

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$     217,043 

 

 

$     234,919 

 

 

$     226,594 

 

 

$     226,565 

 

   Liabilities incurred

 

 

 

 

505 

 

 

6,159 

 

   Liabilities settled

(3,937)

 

 

(5,318)

 

 

(14,256)

 

 

(13,318)

 

   Accretion expense

2,692 

 

 

2,766 

 

 

8,163 

 

 

8,553 

 

   Revisions, net

(1,112)

 

 

2,313 

 

 

(6,320)

 

 

6,721 

 

Balance at end of period

$     214,686 

 

 

$     234,680 

 

 

$     214,686 

 

 

$     234,680 

 



The liabilities incurred for 2015 noted above relate to the acquisitions in Arizona and New Mexico as described in Note 16. The net revisions relate to revised cost estimates and spending patterns for several quarries located primarily in California.

 

 

BENEFIT PLANS
BENEFIT PLANS

Note 10: Benefit Plans



We sponsor three qualified, noncontributory defined benefit pension plans. These plans cover substantially all employees hired prior to 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.



Effective July 2007, we amended our defined benefit pension plans to no longer accept new participants. In December 2013, we amended our defined benefit pension plans so that future service accruals for salaried pension participants ceased effective December 31, 2013. This change included a special transition provision which allowed covered compensation through December 31, 2015 to be considered in the participants’ benefit calculations.



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





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

PENSION BENEFITS

Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$        1,335 

 

 

$        1,213 

 

 

$        4,007 

 

 

$        3,638 

 

Interest cost

9,127 

 

 

11,004 

 

 

27,379 

 

 

33,077 

 

Expected return on plan assets

(12,891)

 

 

(13,683)

 

 

(38,672)

 

 

(41,051)

 

Settlement charge

 

 

2,031 

 

 

 

 

2,031 

 

Amortization of prior service cost (credit)

(11)

 

 

12 

 

 

(32)

 

 

36 

 

Amortization of actuarial loss

1,540 

 

 

5,383 

 

 

4,622 

 

 

16,292 

 

Net periodic pension benefit cost (credit)

$          (900)

 

 

$        5,960 

 

 

$       (2,696)

 

 

$      14,023 

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic pension benefit cost

$        1,529 

 

 

$        7,426 

 

 

$        4,590 

 

 

$      18,359 

 



The 2015 settlement charge noted above relates to a lump sum payment to a former employee from the nonqualified plan. This charge is reflected within both cost of revenues, and selling, administrative and general expenses in our accompanying Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015.



The contributions to pension plans for the nine months ended September 30, 2016 and 2015, as reflected on the Condensed Consolidated Statements of Cash Flows, pertain to benefit payments under the nonqualified plans. We do not expect to be required to make contributions to the qualified plans through 2017.



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 of 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 terminate 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 postretirement benefit cost:







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

OTHER POSTRETIREMENT BENEFITS

Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$           281 

 

 

$           473 

 

 

$           842 

 

 

$        1,420 

 

Interest cost

302 

 

 

621 

 

 

907 

 

 

1,864 

 

Amortization of prior service credit

(1,059)

 

 

(1,058)

 

 

(3,177)

 

 

(3,174)

 

Amortization of actuarial (gain) loss

(438)

 

 

 

 

(1,313)

 

 

28 

 

Net periodic postretirement benefit cost (credit)

$          (914)

 

 

$             45 

 

 

$       (2,741)

 

 

$           138 

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic postretirement benefit credit

$       (1,497)

 

 

$       (1,049)

 

 

$       (4,490)

 

 

$       (3,146)

 

 

 

OTHER COMPREHENSIVE INCOME
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:







 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

September 30

 

 

December 31

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

AOCI

 

 

 

 

 

 

 

 

Cash flow hedges

$       (13,592)

 

 

$       (14,494)

 

 

$       (14,715)

 

Pension and postretirement plans

(105,514)

 

 

(105,575)

 

 

(132,131)

 

Total

$     (119,106)

 

 

$     (120,069)

 

 

$     (146,846)

 



Changes in AOCI, net of tax, for the nine months ended September 30, 2016 are as follows:







 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

Pension and 

 

 

 

 



Cash Flow

 

 

Postretirement

 

 

 

 

in thousands

Hedges

 

 

Benefit Plans

 

 

Total

 

AOCI

 

 

 

 

 

 

 

 

Balance as of December 31, 2015

$       (14,494)

 

 

$     (105,575)

 

 

$     (120,069)

 

Amounts reclassified from AOCI

902 

 

 

61 

 

 

963 

 

Net current period OCI changes

902 

 

 

61 

 

 

963 

 

Balance as of September 30, 2016

$       (13,592)

 

 

$     (105,514)

 

 

$     (119,106)

 



Amounts reclassified from AOCI to earnings, are as follows:







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Nine Months Ended

 



 

 

September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Reclassification Adjustment for Cash Flow

 

 

 

 

 

 

 

 

 

 

 

  Hedge Losses

 

 

 

 

 

 

 

 

 

 

 

Interest expense

$            507 

 

 

$            467 

 

 

$         1,490 

 

 

$         9,282 

 

Benefit from income taxes

(200)

 

 

(185)

 

 

(588)

 

 

(3,675)

 

Total 1

$            307 

 

 

$            282 

 

 

$            902 

 

 

$         5,607 

 

Amortization of Pension and Postretirement

 

 

 

 

 

 

 

 

 

 

 

  Plan Actuarial Loss and Prior Service Cost

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

$              27 

 

 

$         5,242 

 

 

$              82 

 

 

$       12,417 

 

Selling, administrative and general expenses

 

 

1,136 

 

 

18 

 

 

2,796 

 

Benefit from income taxes

(13)

 

 

(2,495)

 

 

(39)

 

 

(5,952)

 

Total 2

$              20 

 

 

$         3,883 

 

 

$              61 

 

 

$         9,261 

 

Total reclassifications from AOCI to earnings

$            327 

 

 

$         4,165 

 

 

$            963 

 

 

$       14,868 

 





 

1

Total for nine months ended September 30, 2015 includes the acceleration of a proportional amount of deferred losses on interest rate derivatives (see Note 6) referable to debt purchases (see Note 7).     

2

Totals for the three and nine months ended September 30, 2015 include a one-time settlement loss resulting from a lump sum payment to a former employee (see Note 10).     





 

 

 

EQUITY
EQUITY

Note 12: Equity



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



Changes in total equity are summarized below:







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

 

Nine Months Ended

 



 

 

 

September 30

 

in thousands

 

 

 

2016 

 

 

2015 

 

Total Equity

 

 

 

 

 

 

 

 

Balance at beginning of year

 

 

$    4,454,188 

 

 

$  4,176,699 

 

Net earnings

 

 

282,439 

 

 

132,289 

 

Common stock issued

 

 

 

 

 

 

 

   Share-based compensation, net of shares withheld for taxes

 

 

(34,684)

 

 

48,329 

 

Purchase and retirement of common stock

 

 

(161,463)

 

 

 

Share-based compensation expense

 

 

15,645 

 

 

14,020 

 

Excess tax benefits from share-based compensation

 

 

26,747 

 

 

16,950 

 

Cash dividends on common stock ($0.60/$0.30 per share)

 

 

(79,865)

 

 

(39,878)

 

Other comprehensive income

 

 

963 

 

 

14,868 

 

Other

 

 

 

 

 

Balance at end of period

 

 

$    4,503,970 

 

 

$  4,363,277 

 



There were no shares held in treasury as of September 30,  2016, December 31, 2015 and September 30, 2015. Stock purchases were as follows:



§

nine months ended September 30, 2016 – purchased and retired 1,426,659 shares for a cost of $161,463,000

§

twelve months ended December 31, 2015 – purchased and retired 228,000 shares for a cost of $21,475,000

§

nine months ended September 30, 2015 – no shares were purchased



As of September 30, 2016, 1,756,757 shares may be purchased under the current purchase authorization of our Board of Directors.

 

 

SEGMENT REPORTING
SEGMENT REPORTING



Note 13: Segment Reporting



We have four operating (and reportable) segments organized around our principal product lines: Aggregates, Asphalt Mix, Concrete and Calcium. The vast majority of our activities are domestic. We sell a relatively small amount of construction aggregates outside the United States. Intersegment sales are made at local market prices for the particular grade and quality of product utilized 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

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Total Revenues

 

 

 

 

 

 

 

 

 

 

 

Aggregates 1

$     821,809 

 

 

$     830,783 

 

 

$  2,248,174 

 

 

$  2,067,671 

 

Asphalt Mix

157,406 

 

 

178,865 

 

 

388,560 

 

 

410,934 

 

Concrete

91,147 

 

 

88,013 

 

 

242,790 

 

 

226,400 

 

Calcium

2,373 

 

 

2,202 

 

 

6,732 

 

 

6,453 

 

  Segment sales

$  1,072,735 

 

 

$  1,099,863 

 

 

$  2,886,256 

 

 

$  2,711,458 

 

Aggregates intersegment sales

(64,595)

 

 

(61,403)

 

 

(166,563)

 

 

(146,562)

 

Total revenues

$  1,008,140 

 

 

$  1,038,460 

 

 

$  2,719,693 

 

 

$  2,564,896 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

Aggregates

$     261,762 

 

 

$     250,866 

 

 

$     664,154 

 

 

$     525,816 

 

Asphalt Mix

32,889 

 

 

30,020 

 

 

76,028 

 

 

59,973 

 

Concrete

8,711 

 

 

9,578 

 

 

18,334 

 

 

15,280 

 

Calcium

847 

 

 

826 

 

 

2,596 

 

 

2,535 

 

Total

$     304,209 

 

 

$     291,290 

 

 

$     761,112 

 

 

$     603,604 

 

Depreciation, Depletion, Accretion

 

 

 

 

 

 

 

 

 

 

 

  and Amortization (DDA&A)

 

 

 

 

 

 

 

 

 

 

 

Aggregates

$       60,204 

 

 

$       57,732 

 

 

$     177,129 

 

 

$     170,251 

 

Asphalt Mix

4,100 

 

 

4,124 

 

 

12,468 

 

 

12,131 

 

Concrete

3,072 

 

 

2,955 

 

 

9,141 

 

 

8,457 

 

Calcium

198 

 

 

170 

 

 

577 

 

 

496 

 

Other

4,475 

 

 

4,681 

 

 

14,047 

 

 

13,435 

 

Total

$       72,049 

 

 

$       69,662 

 

 

$     213,362 

 

 

$     204,770 

 

Identifiable Assets 2

 

 

 

 

 

 

 

 

 

 

 

Aggregates

 

 

 

 

 

 

$  7,671,222 

 

 

$  7,533,172 

 

Asphalt Mix

 

 

 

 

 

 

243,909 

 

 

315,003 

 

Concrete

 

 

 

 

 

 

188,169 

 

 

188,331 

 

Calcium

 

 

 

 

 

 

5,392 

 

 

5,615 

 

Total identifiable assets

 

 

 

 

 

 

$  8,108,692 

 

 

$  8,042,121 

 

General corporate assets

 

 

 

 

 

 

114,028 

 

 

106,064 

 

Cash and cash equivalents

 

 

 

 

 

 

135,365 

 

 

168,681 

 

Total

 

 

 

 

 

 

$  8,358,085 

 

 

$  8,316,866 

 







 

Includes crushed stone, sand and gravel, sand, other aggregates, as well as freight, delivery and transportation revenues, and other revenues related to services.

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.

 

 

SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

Note 14: Supplemental Cash Flow Information



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







 

 

 

 

 



 

 

 

 

 



Nine Months Ended

 



September 30

 

in thousands

2016 

 

 

2015 

 

Cash Payments

 

 

 

 

 

Interest (exclusive of amount capitalized)

$       69,865 

 

 

$     136,123 

 

Income taxes

92,397 

 

 

46,271 

 

Noncash Investing and Financing Activities

 

 

 

 

 

Accrued liabilities for purchases of property, plant & equipment

$       10,493 

 

 

$       11,941 

 

Amounts referable to business acquisitions

 

 

 

 

 

  Liabilities assumed

 

 

2,645 

 

  Fair value of noncash assets and liabilities exchanged

 

 

20,000 

 

 

 

GOODWILL
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 nine month periods ended September 30, 2016 and 2015.



We have four reportable segments organized around our principal product lines: Aggregates, Asphalt Mix, Concrete and Calcium. Changes in the carrying amount of goodwill by reportable segment from December 31, 2015 to September 30, 2016 are summarized below:



GOODWILL





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Aggregates

 

 

Asphalt Mix

 

 

Concrete

 

 

Calcium

 

 

Total

 

Goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as of December 31, 2015

$  3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$    3,094,824 

 

Goodwill of acquired businesses

 

 

 

 

 

 

 

 

 

Goodwill of divested businesses

 

 

 

 

 

 

 

 

 

Total as of September 30, 2016

$  3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$    3,094,824 

 



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.

 

 

ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES

Note 16: Acquisitions and Divestitures



ACQUISITIONS



Through the nine months ended September 30, 2016, we purchased the following for $1,611,000 of cash consideration:

§

assets of a trucking business to complement our aggregates logistics and distribution activities



For the full year 2015, we purchased the following for total consideration of $47,198,000  ($27,198,000 cash and $20,000,000 exchanges of real property and businesses (twelve California ready-mixed concrete operations)):



§

one aggregates facility in Tennessee

§

three aggregates facilities and seven ready-mixed concrete operations in Arizona and New Mexico

§

thirteen asphalt mix operations, primarily in Arizona





On September 30, 2016, we funded a $19,500,000 acquisition that closed on Saturday, October 1, 2016. This payment is reflected in prepaid assets in our Condensed Consolidated Balance Sheet as of September 30, 2016.



DIVESTITURES AND PENDING DIVESTITURES



As noted above, in 2015 (first quarter), we exchanged twelve ready-mixed concrete operations in California (representing all of our California concrete operations) for thirteen asphalt mix plants (primarily in Arizona) resulting in a pretax gain of $5,886,000.



No assets met the criteria for held for sale at September 30, 2016, December 31, 2015 or September 30, 2015.



 

 

NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS

Note 17: New Accounting Standards



ACCOUNTING STANDARDS RECENTLY ADOPTED



NET ASSET VALUE PER SHARE INVESTMENTS  During the first quarter of 2016, we adopted Accounting Standards Update (ASU) 2015-07, “Disclosures for Investment in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent).” This ASU removed the requirement to categorize investments within the fair value hierarchy when their fair value is measured using the net asset value per share practical expedient. This ASU also removed the requirement to make certain disclosures for investments that are eligible to be measured at fair value using the net asset value per share expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The impact of this standard is limited to our annual pension plan fair value disclosures.



ACCOUNTING STANDARDS PENDING ADOPTION



CASH FLOW CLASSIFICATION  In August 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which amends guidance on the classification of certain cash receipts and payments in the statement of cash flows. This ASU adds or clarifies guidance on eight specific cash flow issues. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.



CREDIT LOSSES  In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which amends 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. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within those annual reporting periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2018. While we are still evaluating the impact of ASU 2016-13, we do not expect the adoption of this standard to have a material impact on our consolidated financial statements.



SHARE-BASED PAYMENTS  In March 2016, the FASB issued ASU 2016-09, “Improvement to Employee Share-Based Payment Accounting,” which amends several aspects of the accounting for employee share-based payment transactions. Most significantly, entities will be required to recognize the income tax effects of awards in the income statement when the awards vest or are settled (i.e., the use of APIC pools will be eliminated). Additionally, the guidance requires cash paid for shares withheld (to satisfy the employer’s statutory income tax withholding obligation) to be presented as a financing activity in the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim reporting periods within those annual reporting periods. Early adoption is permitted. While we are still quantifying the impact of ASU 2016-09, we expect that the elimination of APIC pools will significantly impact our provision for income taxes. Likewise, we expect the requirement to classify cash paid for shares withheld as a financing activity will significantly impact our operating and financing cash flows.



LEASE ACCOUNTING  In February 2016, the FASB issued ASU 2016-02, “Leases,” which amends existing accounting standards for lease accounting and adds additional disclosures about leasing arrangements. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement and presentation of cash flow in the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual reporting periods. Early adoption is permitted and modified retrospective application is required. We are currently evaluating the impact that the adoption of this standard will have on our consolidated financial statements and related disclosures.



CLASSIFICATION AND MEASUREMENT OF FINANCIAL INSTRUMENTS  In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of current guidance on the recognition, measurement and disclosure of financial instruments. Among other changes, this ASU requires most equity investments be measured at fair value. Additionally, the ASU eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value for instruments not recognized at fair value in our financial statements. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.



INVENTORY MEASUREMENT  In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which changes the measurement principle for inventory from the lower of cost or market principle to the lower of cost and net realizable value principle. The guidance applies to inventories that are measured using the first-in, first-out (FIFO) or average cost method, but does not apply to inventories that are measured using the last-in, first-out (LIFO) or retail inventory method. We use the LIFO method for approximately 67% of our inventory (based on the December 31, 2015 balances); therefore, this ASU will not apply to the majority of our inventory. This ASU is effective prospectively for annual reporting periods beginning after December 15, 2016, and interim reporting periods within those annual reporting periods. We will adopt this standard as of and for the interim period ending March 31, 2017. While we are still evaluating the impact of ASU 2015-11, we do not expect the adoption of this standard to have a material impact on our consolidated financial statements.



GOING CONCERN  In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern,” which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern (meet its obligations as they become due) within one year after the date that the financial statements are issued. If conditions or events raise substantial doubt about the entity’s ability to continue as a going concern, certain disclosures are required. This ASU is effective for annual reporting periods ending after December 15, 2016, and interim reporting periods thereafter. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.



REVENUE RECOGNITION  In May 2014, the FASB issued ASU  2014-09, “Revenue From Contracts With Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This ASU provides a more robust framework for addressing revenue issues and expands required revenue recognition disclosures. In March 2016, the FASB issued ASU 2016-08, “Revenue From Contracts With Customers: Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net),” which amends the principal versus agent guidance in ASU 2014-09. The amendments in ASU 2016-08 provide guidance on recording revenue on a gross basis versus a net basis based on the determination of whether an entity is a principal or an agent when another party is involved in providing goods or services to a customer. These ASUs are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Further, in applying these ASUs an entity is permitted to use either the full retrospective or cumulative effect transition approach. We are currently evaluating the impact of adoption of this standard on our consolidated financial statements and determining our transition method.

 

 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

NATURE OF OPERATIONS



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



We operate primarily in the United States and our principal product — aggregates — is used in virtually all types of public and private construction projects and in the production of asphalt mix and ready-mixed concrete. We serve markets in twenty states, Washington D.C., and the local markets surrounding our operations in Mexico and the Bahamas. Our primary focus is serving states in 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 mid-Atlantic, Georgia, Southwestern and Western markets.

BASIS OF PRESENTATION



Our accompanying unaudited condensed consolidated financial statements were prepared in compliance with the instructions to Form 10-Q and Article 10 of Regulation S-X and thus do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. Our Condensed Consolidated Balance Sheet as of December 31, 2015 was derived from the audited financial statement, but it does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of our management, the statements reflect all adjustments, including those of a normal recurring nature, necessary to present fairly the results of the reported interim periods. Operating results for the three and nine month periods ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and footnotes included in our most recent Annual Report on Form 10-K.



Due to the 2005 sale of our Chemicals business as described in Note 2, the results of the Chemicals business are presented as discontinued operations in the accompanying Condensed Consolidated Statements of Comprehensive Income.

RECLASSIFICATIONS



Certain items previously reported in specific financial statement captions have been reclassified to conform with the 2016 presentation.

RESTRUCTURING CHARGES



In 2014, we announced changes to our executive management team, and a new divisional organization structure that was effective January 1, 2015. During the nine months ended September 30, 2016 and September 30, 2015, we incurred $320,000 and $4,546,000, respectively, of costs related to these initiatives. We do not expect to incur any future charges related to this initiative.



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

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding

133,019 

 

 

133,474 

 

 

133,418 

 

 

133,082 

 

Dilutive effect of

 

 

 

 

 

 

 

 

 

 

 

   Stock-Only Stock Appreciation Rights

961 

 

 

919 

 

 

957 

 

 

1,024 

 

   Other stock compensation plans

1,053 

 

 

1,165 

 

 

817 

 

 

836 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding, assuming dilution

135,033 

 

 

135,558 

 

 

135,192 

 

 

134,942 

 



All dilutive common stock equivalents are reflected in our earnings per share calculations. Antidilutive common stock equivalents are not included 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 are excluded. There were no excluded shares for the periods presented.



The number of antidilutive common stock equivalents for which the exercise price exceeds the weighted-average market price is as follows:







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Antidilutive common stock equivalents

 

 

545 

 

 

234 

 

 

555 

 



SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding

133,019 

 

 

133,474 

 

 

133,418 

 

 

133,082 

 

Dilutive effect of

 

 

 

 

 

 

 

 

 

 

 

   Stock-Only Stock Appreciation Rights

961 

 

 

919 

 

 

957 

 

 

1,024 

 

   Other stock compensation plans

1,053 

 

 

1,165 

 

 

817 

 

 

836 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding, assuming dilution

135,033 

 

 

135,558 

 

 

135,192 

 

 

134,942 

 





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Antidilutive common stock equivalents

 

 

545 

 

 

234 

 

 

555 

 



DISCONTINUED OPERATIONS (Tables)
Results from Discontinued Operations



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

Pretax loss

$       (5,135)

 

 

$       (3,974)

 

 

$    (12,312)

 

 

$    (11,627)

 

Income tax benefit

2,022 

 

 

1,577 

 

 

4,861 

 

 

4,561 

 

Loss on discontinued operations,

 

 

 

 

 

 

 

 

 

 

 

  net of tax

$       (3,113)

 

 

$       (2,397)

 

 

$       (7,451)

 

 

$       (7,066)

 



DEFERRED REVENUE (Tables)
Reconciliation of Deferred Revenue Balances



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Deferred Revenue

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$     210,200 

 

 

$     217,429 

 

 

$     214,060 

 

 

$     219,968 

 

  Amortization of deferred revenue

(2,068)

 

 

(1,778)

 

 

(5,928)

 

 

(4,317)

 

Balance at end of period

$     208,132 

 

 

$     215,651 

 

 

$     208,132 

 

 

$     215,651 

 



FAIR VALUE MEASUREMENTS (Tables)







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Level 1 Fair Value



September 30

 

 

December 31

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

Fair Value Recurring

 

 

 

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

 

 

 

  Mutual funds

$        6,601 

 

 

$      11,472 

 

 

$      12,081 

 

  Equities

8,574 

 

 

8,992 

 

 

8,778 

 

Total

$      15,175 

 

 

$      20,464 

 

 

$      20,859 

 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Level 2 Fair Value



September 30

 

 

December 31

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

Fair Value Recurring

 

 

 

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

 

 

 

  Money market mutual fund

$        2,144 

 

 

$        2,124 

 

 

$        1,464 

 

Total

$        2,144 

 

 

$        2,124 

 

 

$        1,464 

 





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Period ending September 30, 2016

 

 

Period ending September 30, 2015

 



 

 

 

Impairment

 

 

 

 

 

Impairment

 

in thousands

Level 2 

 

 

Charges

 

 

Level 2

 

 

Charges

 

Fair Value Nonrecurring

 

 

 

 

 

 

 

 

 

 

 

Property, plant & equipment, net

$              0 

 

 

$       1,359 

 

 

$              0 

 

 

$       2,176 

 

Other intangible assets, net

 

 

8,180 

 

 

 

 

2,858 

 

Other assets

 

 

967 

 

 

 

 

156 

 

Total

$              0 

 

 

$     10,506 

 

 

$              0 

 

 

$       5,190 

 



DERIVATIVE INSTRUMENTS (Tables)



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Nine Months Ended

 



Location on

 

September 30

 

 

September 30

 

in thousands

Statement

 

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Cash Flow Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss reclassified from AOCI

Interest

 

 

 

 

 

 

 

 

 

 

 

 

  (effective portion)

expense

 

$          (507)

 

 

$          (467)

 

 

$       (1,490)

 

 

$       (9,282)

 





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Nine Months Ended

 



 

 

September 30

 

 

September 30

 

in thousands

 

 

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Deferred Gain on Settlement

 

 

 

 

 

 

 

 

 

 

 

 

Amortized to earnings as a reduction

 

 

 

 

 

 

 

 

 

 

 

 

  to interest expense

 

$              0 

 

 

$          282 

 

 

$              0 

 

 

$       2,795 

 



DEBT (Tables)



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Effective

 

September 30

 

 

December 31

 

 

September 30

 

in thousands

Interest Rates

 

2016 

 

 

2015 

 

 

2015 

 

Short-term Debt

 

 

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

n/a

 

$                  0 

 

 

$                0 

 

 

$                0 

 

Total short-term debt

 

 

$                  0 

 

 

$                0 

 

 

$                0 

 

Long-term Debt

 

 

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

1.25% 

 

$       235,000 

 

 

$     235,000 

 

 

$       85,000 

 

10.125% notes due 2015 

n/a

 

 

 

 

 

150,000 

 

7.00% notes due 2018

7.87% 

 

272,512 

 

 

272,512 

 

 

272,512 

 

10.375% notes due 2018

10.63% 

 

250,000 

 

 

250,000 

 

 

250,000 

 

7.50% notes due 2021

7.75% 

 

600,000 

 

 

600,000 

 

 

600,000 

 

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 

 

7.15% notes due 2037

8.05% 

 

240,188 

 

 

240,188 

 

 

240,188 

 

Other notes 3

6.24% 

 

484 

 

 

498 

 

 

503 

 

Total long-term debt - face value

 

 

$    2,004,184 

 

 

$  2,004,198 

 

 

$  2,004,203 

 

Unamortized discounts and debt issuance costs

 

 

(20,414)

 

 

(23,734)

 

 

(24,821)

 

Unamortized deferred interest rate swap gain 4

 

 

 

 

 

 

241 

 

Total long-term debt - book value

 

 

$    1,983,770 

 

 

$  1,980,464 

 

 

$  1,979,623 

 

Less current maturities

 

 

131 

 

 

130 

 

 

130 

 

Total long-term debt - reported value

 

 

$    1,983,639 

 

 

$  1,980,334 

 

 

$  1,979,493 

 

Estimated fair value of long-term debt

 

 

$    2,305,065 

 

 

$  2,204,816 

 

 

$  2,191,361 

 







 

Borrowings on the bank line of credit are classified as short-term debt if we intend to repay within twelve months and as long-term debt otherwise.

The effective interest rate is the spread over LIBOR as of the most recent balance sheet date.

Non-publicly traded debt.

The unamortized deferred gain was realized upon the August 2011 settlement of interest rate swaps as described in Note 6.





 

 



 

 

in thousands

 

 

Standby Letters of Credit

 

 

Risk management insurance

$       34,111 

 

Reclamation/restoration requirements

5,729 

 

Total

$       39,840 

 



ASSET RETIREMENT OBLIGATIONS (Tables)



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

ARO Operating Costs

 

 

 

 

 

 

 

 

 

 

 

Accretion

$        2,692 

 

 

$        2,766 

 

 

$        8,163 

 

 

$        8,553 

 

Depreciation

1,469 

 

 

1,681 

 

 

4,783 

 

 

4,683 

 

Total

$        4,161 

 

 

$        4,447 

 

 

$      12,946 

 

 

$      13,236 

 





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Asset Retirement Obligations

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$     217,043 

 

 

$     234,919 

 

 

$     226,594 

 

 

$     226,565 

 

   Liabilities incurred

 

 

 

 

505 

 

 

6,159 

 

   Liabilities settled

(3,937)

 

 

(5,318)

 

 

(14,256)

 

 

(13,318)

 

   Accretion expense

2,692 

 

 

2,766 

 

 

8,163 

 

 

8,553 

 

   Revisions, net

(1,112)

 

 

2,313 

 

 

(6,320)

 

 

6,721 

 

Balance at end of period

$     214,686 

 

 

$     234,680 

 

 

$     214,686 

 

 

$     234,680 

 



BENEFIT PLANS (Tables)



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

PENSION BENEFITS

Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$        1,335 

 

 

$        1,213 

 

 

$        4,007 

 

 

$        3,638 

 

Interest cost

9,127 

 

 

11,004 

 

 

27,379 

 

 

33,077 

 

Expected return on plan assets

(12,891)

 

 

(13,683)

 

 

(38,672)

 

 

(41,051)

 

Settlement charge

 

 

2,031 

 

 

 

 

2,031 

 

Amortization of prior service cost (credit)

(11)

 

 

12 

 

 

(32)

 

 

36 

 

Amortization of actuarial loss

1,540 

 

 

5,383 

 

 

4,622 

 

 

16,292 

 

Net periodic pension benefit cost (credit)

$          (900)

 

 

$        5,960 

 

 

$       (2,696)

 

 

$      14,023 

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic pension benefit cost

$        1,529 

 

 

$        7,426 

 

 

$        4,590 

 

 

$      18,359 

 





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

OTHER POSTRETIREMENT BENEFITS

Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$           281 

 

 

$           473 

 

 

$           842 

 

 

$        1,420 

 

Interest cost

302 

 

 

621 

 

 

907 

 

 

1,864 

 

Amortization of prior service credit

(1,059)

 

 

(1,058)

 

 

(3,177)

 

 

(3,174)

 

Amortization of actuarial (gain) loss

(438)

 

 

 

 

(1,313)

 

 

28 

 

Net periodic postretirement benefit cost (credit)

$          (914)

 

 

$             45 

 

 

$       (2,741)

 

 

$           138 

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic postretirement benefit credit

$       (1,497)

 

 

$       (1,049)

 

 

$       (4,490)

 

 

$       (3,146)

 



OTHER COMPREHENSIVE INCOME (Tables)



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

September 30

 

 

December 31

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

AOCI

 

 

 

 

 

 

 

 

Cash flow hedges

$       (13,592)

 

 

$       (14,494)

 

 

$       (14,715)

 

Pension and postretirement plans

(105,514)

 

 

(105,575)

 

 

(132,131)

 

Total

$     (119,106)

 

 

$     (120,069)

 

 

$     (146,846)

 





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

Pension and 

 

 

 

 



Cash Flow

 

 

Postretirement

 

 

 

 

in thousands

Hedges

 

 

Benefit Plans

 

 

Total

 

AOCI

 

 

 

 

 

 

 

 

Balance as of December 31, 2015

$       (14,494)

 

 

$     (105,575)

 

 

$     (120,069)

 

Amounts reclassified from AOCI

902 

 

 

61 

 

 

963 

 

Net current period OCI changes

902 

 

 

61 

 

 

963 

 

Balance as of September 30, 2016

$       (13,592)

 

 

$     (105,514)

 

 

$     (119,106)

 





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Nine Months Ended

 



 

 

September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Reclassification Adjustment for Cash Flow

 

 

 

 

 

 

 

 

 

 

 

  Hedge Losses

 

 

 

 

 

 

 

 

 

 

 

Interest expense

$            507 

 

 

$            467 

 

 

$         1,490 

 

 

$         9,282 

 

Benefit from income taxes

(200)

 

 

(185)

 

 

(588)

 

 

(3,675)

 

Total 1

$            307 

 

 

$            282 

 

 

$            902 

 

 

$         5,607 

 

Amortization of Pension and Postretirement

 

 

 

 

 

 

 

 

 

 

 

  Plan Actuarial Loss and Prior Service Cost

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

$              27 

 

 

$         5,242 

 

 

$              82 

 

 

$       12,417 

 

Selling, administrative and general expenses

 

 

1,136 

 

 

18 

 

 

2,796 

 

Benefit from income taxes

(13)

 

 

(2,495)

 

 

(39)

 

 

(5,952)

 

Total 2

$              20 

 

 

$         3,883 

 

 

$              61 

 

 

$         9,261 

 

Total reclassifications from AOCI to earnings

$            327 

 

 

$         4,165 

 

 

$            963 

 

 

$       14,868 

 





 

1

Total for nine months ended September 30, 2015 includes the acceleration of a proportional amount of deferred losses on interest rate derivatives (see Note 6) referable to debt purchases (see Note 7).     

2

Totals for the three and nine months ended September 30, 2015 include a one-time settlement loss resulting from a lump sum payment to a former employee (see Note 10).     





 



EQUITY (Tables)
Changes in Total Equity



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

 

Nine Months Ended

 



 

 

 

September 30

 

in thousands

 

 

 

2016 

 

 

2015 

 

Total Equity

 

 

 

 

 

 

 

 

Balance at beginning of year

 

 

$    4,454,188 

 

 

$  4,176,699 

 

Net earnings

 

 

282,439 

 

 

132,289 

 

Common stock issued

 

 

 

 

 

 

 

   Share-based compensation, net of shares withheld for taxes

 

 

(34,684)

 

 

48,329 

 

Purchase and retirement of common stock

 

 

(161,463)

 

 

 

Share-based compensation expense

 

 

15,645 

 

 

14,020 

 

Excess tax benefits from share-based compensation

 

 

26,747 

 

 

16,950 

 

Cash dividends on common stock ($0.60/$0.30 per share)

 

 

(79,865)

 

 

(39,878)

 

Other comprehensive income

 

 

963 

 

 

14,868 

 

Other

 

 

 

 

 

Balance at end of period

 

 

$    4,503,970 

 

 

$  4,363,277 

 



SEGMENT REPORTING (Tables)
Segment Financial Disclosure



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Nine Months Ended

 



September 30

 

 

September 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Total Revenues

 

 

 

 

 

 

 

 

 

 

 

Aggregates 1

$     821,809 

 

 

$     830,783 

 

 

$  2,248,174 

 

 

$  2,067,671 

 

Asphalt Mix

157,406 

 

 

178,865 

 

 

388,560 

 

 

410,934 

 

Concrete

91,147 

 

 

88,013 

 

 

242,790 

 

 

226,400 

 

Calcium

2,373 

 

 

2,202 

 

 

6,732 

 

 

6,453 

 

  Segment sales

$  1,072,735 

 

 

$  1,099,863 

 

 

$  2,886,256 

 

 

$  2,711,458 

 

Aggregates intersegment sales

(64,595)

 

 

(61,403)

 

 

(166,563)

 

 

(146,562)

 

Total revenues

$  1,008,140 

 

 

$  1,038,460 

 

 

$  2,719,693 

 

 

$  2,564,896 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

Aggregates

$     261,762 

 

 

$     250,866 

 

 

$     664,154 

 

 

$     525,816 

 

Asphalt Mix

32,889 

 

 

30,020 

 

 

76,028 

 

 

59,973 

 

Concrete

8,711 

 

 

9,578 

 

 

18,334 

 

 

15,280 

 

Calcium

847 

 

 

826 

 

 

2,596 

 

 

2,535 

 

Total

$     304,209 

 

 

$     291,290 

 

 

$     761,112 

 

 

$     603,604 

 

Depreciation, Depletion, Accretion

 

 

 

 

 

 

 

 

 

 

 

  and Amortization (DDA&A)

 

 

 

 

 

 

 

 

 

 

 

Aggregates

$       60,204 

 

 

$       57,732 

 

 

$     177,129 

 

 

$     170,251 

 

Asphalt Mix

4,100 

 

 

4,124 

 

 

12,468 

 

 

12,131 

 

Concrete

3,072 

 

 

2,955 

 

 

9,141 

 

 

8,457 

 

Calcium

198 

 

 

170 

 

 

577 

 

 

496 

 

Other

4,475 

 

 

4,681 

 

 

14,047 

 

 

13,435 

 

Total

$       72,049 

 

 

$       69,662 

 

 

$     213,362 

 

 

$     204,770 

 

Identifiable Assets 2

 

 

 

 

 

 

 

 

 

 

 

Aggregates

 

 

 

 

 

 

$  7,671,222 

 

 

$  7,533,172 

 

Asphalt Mix

 

 

 

 

 

 

243,909 

 

 

315,003 

 

Concrete

 

 

 

 

 

 

188,169 

 

 

188,331 

 

Calcium

 

 

 

 

 

 

5,392 

 

 

5,615 

 

Total identifiable assets

 

 

 

 

 

 

$  8,108,692 

 

 

$  8,042,121 

 

General corporate assets

 

 

 

 

 

 

114,028 

 

 

106,064 

 

Cash and cash equivalents

 

 

 

 

 

 

135,365 

 

 

168,681 

 

Total

 

 

 

 

 

 

$  8,358,085 

 

 

$  8,316,866 

 







 

Includes crushed stone, sand and gravel, sand, other aggregates, as well as freight, delivery and transportation revenues, and other revenues related to services.

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.



SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
Supplemental Information Referable to Condensed Consolidated Statements of Cash Flows



 

 

 

 

 



 

 

 

 

 



Nine Months Ended

 



September 30

 

in thousands

2016 

 

 

2015 

 

Cash Payments

 

 

 

 

 

Interest (exclusive of amount capitalized)

$       69,865 

 

 

$     136,123 

 

Income taxes

92,397 

 

 

46,271 

 

Noncash Investing and Financing Activities

 

 

 

 

 

Accrued liabilities for purchases of property, plant & equipment

$       10,493 

 

 

$       11,941 

 

Amounts referable to business acquisitions

 

 

 

 

 

  Liabilities assumed

 

 

2,645 

 

  Fair value of noncash assets and liabilities exchanged

 

 

20,000 

 



GOODWILL (Tables)
Changes in Carrying Amount of Goodwill by Reportable Segment



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Aggregates

 

 

Asphalt Mix

 

 

Concrete

 

 

Calcium

 

 

Total

 

Goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as of December 31, 2015

$  3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$    3,094,824 

 

Goodwill of acquired businesses

 

 

 

 

 

 

 

 

 

Goodwill of divested businesses

 

 

 

 

 

 

 

 

 

Total as of September 30, 2016

$  3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$    3,094,824 

 



SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2016
state
Sep. 30, 2015
Sep. 30, 2016
factor
state
Sep. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
 
State of incorporation
 
 
New Jersey 
 
Number of states
20 
 
20 
 
Number of demographic factors
 
 
 
Restructuring charges
$ 0 
$ 448,000 
$ 320,000 
$ 4,546,000 
Antidilutive weighted-average common stock equivalents
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Weighted-Average Common Shares Outstanding Assuming Dilution) (Details)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
 
Weighted-average common shares outstanding
133,019 
133,474 
133,418 
133,082 
Stock-Only Stock Appreciation Rights
961 
919 
957 
1,024 
Other stock compensation plans
1,053 
1,165 
817 
836 
Weighted-average common shares outstanding, assuming dilution
135,033 
135,558 
135,192 
134,942 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Antidilutive Common Stock Equivalents) (Details)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
 
Antidilutive common stock equivalents
545 
234 
555 
DISCONTINUED OPERATIONS (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
DISCONTINUED OPERATIONS [Abstract]
 
 
 
 
Pretax loss
$ (5,135)
$ (3,974)
$ (12,312)
$ (11,627)
Income tax benefit
2,022 
1,577 
4,861 
4,561 
Loss on discontinued operations, net of tax
(3,113)
(2,397)
(7,451)
(7,066)
Revenues from discontinued operations
$ 0 
$ 0 
$ 0 
$ 0 
INCOME TAXES (Details) (USD $)
3 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2016
Forecast [Member]
Sep. 30, 2016
Alabama [Member]
State [Member]
Earliest Tax Year [Member]
Sep. 30, 2016
Alabama [Member]
State [Member]
Latest Tax Year [Member]
Dec. 31, 2016
Alabama [Member]
Forecast [Member]
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
Provision for income taxes
$ 52,062,000 
$ 45,386,000 
$ 116,026,000 
$ 51,177,000 
 
 
 
 
State net operating loss carryforwards
 
 
 
 
55,318,000 
 
 
52,995,000 
Net operating loss carryforwards expiration date
 
 
 
 
 
Dec. 31, 2022 
Dec. 31, 2029 
 
Decrease in valuation allowance
 
$ (4,655,000)
 
 
 
 
 
 
DEFERRED REVENUE (Narrative) (Details) (USD $)
9 Months Ended 12 Months Ended
Sep. 30, 2016
item
Dec. 31, 2013
Dec. 31, 2012
Sep. 30, 2017
Forecast [Member]
Number of quarries
 
 
 
Proceeds from sale of production
 
$ 153,282,000 
$ 73,644,000 
 
Term of the VPPs
25 years 
 
 
 
Estimated deferred revenue to be recognized in the next 12 months
 
 
 
$ 6,400,000 
DEFERRED REVENUE (Reconciliation of Deferred Revenue Balances) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
DEFERRED REVENUE [Abstract]
 
 
 
 
Balance at beginning of period
$ 210,200 
$ 217,429 
$ 214,060 
$ 219,968 
Amortization of deferred revenue
(2,068)
(1,778)
(5,928)
(4,317)
Balance at end of period
$ 208,132 
$ 215,651 
$ 208,132 
$ 215,651 
FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
item
Sep. 30, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
 
Number of Rabbit Trusts established
 
 
 
Net gains (losses) of the Rabbi Trust investments
 
 
$ 1,379,000 
$ (1,964,000)
Unrealized net gains (losses) of the Rabbi Trust investments
 
 
273,000 
(2,068,000)
Rabbi Trust asset value, decrease
 
 
(5,269,000)
 
Losses on impairment of long-lived assets
10,506,000 
5,190,000 
Nonrecurring [Member] |
Level 2 [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
 
Assets subject to fair value measurement on a nonrecurring basis
$ 0 
$ 0 
$ 0 
$ 0 
FAIR VALUE MEASUREMENTS (Fair Value Measurement on Recurring Basis) (Details) (Recurring [Member], USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets fair value, recurring
$ 15,175 
$ 20,464 
$ 20,859 
Level 1 [Member] |
Mutual Funds [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets fair value, recurring
6,601 
11,472 
12,081 
Level 1 [Member] |
Equities [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets fair value, recurring
8,574 
8,992 
8,778 
Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets fair value, recurring
2,144 
2,124 
1,464 
Level 2 [Member] |
Money Market Mutual Fund [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets fair value, recurring
$ 2,144 
$ 2,124 
$ 1,464 
FAIR VALUE MEASUREMENTS (Fair Value Measurement on Nonrecurring Basis) (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
 
Property, plant & equipment, net, Impairment Charges
 
 
$ 1,359,000 
$ 2,176,000 
Other intangible assets, net, Impairment Charges
 
 
8,180,000 
2,858,000 
Other assets, Impairment Charges
 
 
967,000 
156,000 
Totals, Impairment Charges
10,506,000 
5,190,000 
Nonrecurring [Member] |
Level 2 [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
 
Property, plant & equipment, net
Other intangible assets, net
Other assets
Totals
$ 0 
$ 0 
$ 0 
$ 0 
DERIVATIVE INSTRUMENTS (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
10.125% notes due 2015 [Member]
Dec. 31, 2015
10.125% notes due 2015 [Member]
Sep. 30, 2015
10.125% notes due 2015 [Member]
Sep. 30, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedges [Member]
Interest Rate Swap [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedges [Member]
Interest Rate Swap [Member]
Sep. 30, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedges [Member]
Interest Rate Swap [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedges [Member]
Interest Rate Swap [Member]
Dec. 31, 2007
Designated as Hedging Instrument [Member]
Cash Flow Hedges [Member]
Interest Rate Swap [Member]
agreement
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedges [Member]
Interest Rate Swap [Member]
Debt [Member]
Aug. 31, 2011
Designated as Hedging Instrument [Member]
Fair Value Hedges [Member]
Interest Rate Swap [Member]
Sep. 30, 2015
Designated as Hedging Instrument [Member]
Fair Value Hedges [Member]
Interest Rate Swap [Member]
Jun. 30, 2011
Fixed-Rate Notes
6.50% notes due 2016 [Member]
Jun. 30, 2011
Fixed-Rate Notes
10.125% notes due 2015 [Member]
Jun. 30, 2011
Fixed-Rate Notes
Designated as Hedging Instrument [Member]
Fair Value Hedges [Member]
Interest Rate Swap [Member]
6.50% notes due 2016 [Member]
Jun. 30, 2011
Fixed-Rate Notes
Designated as Hedging Instrument [Member]
Fair Value Hedges [Member]
Interest Rate Swap [Member]
10.125% notes due 2015 [Member]
Jun. 30, 2011
LIBOR [Member]
Fixed-Rate Notes
Designated as Hedging Instrument [Member]
Fair Value Hedges [Member]
Interest Rate Swap [Member]
6.50% notes due 2016 [Member]
Jun. 30, 2011
LIBOR [Member]
Fixed-Rate Notes
Designated as Hedging Instrument [Member]
Fair Value Hedges [Member]
Interest Rate Swap [Member]
10.125% notes due 2015 [Member]
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of forward starting interest rate swap agreements
 
 
 
 
 
 
 
 
 
 
 
15 
 
 
 
 
 
 
 
 
 
Notional amount of interest rate swap agreements
 
 
 
 
 
 
 
 
 
 
 
$ 1,500,000,000 
 
 
 
 
 
$ 500,000,000 
$ 150,000,000 
 
 
Cash payments for interest rate swap agreements
 
 
 
 
 
 
 
 
 
 
 
89,777,000 
 
 
 
 
 
 
 
 
 
Cash proceeds from interest rate swap agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
25,382,000 
 
 
 
 
 
 
 
Loss reclassified from AOCI
 
 
 
 
 
 
 
507,000 
467,000 
1,490,000 
9,282,000 
 
7,208,000 
 
 
 
 
 
 
 
 
Estimated amount of pretax loss in AOCI reclassified to earnings for the next 12-month period
 
 
 
 
 
 
 
2,135,000 
 
2,135,000 
 
 
 
 
 
 
 
 
 
 
 
Fixed-rate notes issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
500,000,000 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.50% 
10.125% 
 
 
 
 
Interest rate spread above London Interbank Offered Rate (LIBOR)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.05% 
8.03% 
Fixed interest rate under swap agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.50% 
10.125% 
 
 
Gain component of the settlement
 
 
 
 
1
1
241,000 1
 
 
 
 
 
 
23,387,000 
 
 
 
 
 
 
 
Accrued interest
 
 
 
 
 
 
 
 
 
 
 
 
 
1,995,000 
 
 
 
 
 
 
 
Amortized deferred gain
$ 0 
$ 282,000 
$ 0 
$ 2,795,000 
 
 
 
 
 
 
 
 
 
 
$ 1,642,000 
 
 
 
 
 
 
DERIVATIVE INSTRUMENTS (Effects of Changes in Fair Values of Derivatives Designated as Cash Flow Hedges) (Details) (Interest Rate Swap [Member], Cash Flow Hedges [Member], Designated as Hedging Instrument [Member], USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
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)
$ (507,000)
$ (467,000)
$ (1,490,000)
$ (9,282,000)
DERIVATIVE INSTRUMENTS (Deferred Gain Amortization) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
DERIVATIVE INSTRUMENTS [Abstract]
 
 
 
 
Amortized to earnings as a reduction to interest expense
$ 0 
$ 282 
$ 0 
$ 2,795 
DEBT (Narrative) (Details) (USD $)
9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Jun. 30, 2015
Bank Line of Credit [Member]
Sep. 30, 2016
Bank Line of Credit [Member]
Sep. 30, 2016
Bank Line of Credit [Member]
LIBOR [Member]
Sep. 30, 2016
Bank Line of Credit [Member]
Base Rate [Member]
Sep. 30, 2016
Standby Letters of Credit [Member]
Sep. 30, 2016
Standby Letters of Credit [Member]
LIBOR [Member]
Sep. 30, 2016
Minimum [Member]
Bank Line of Credit [Member]
Sep. 30, 2016
Minimum [Member]
Bank Line of Credit [Member]
LIBOR [Member]
Sep. 30, 2016
Minimum [Member]
Bank Line of Credit [Member]
Base Rate [Member]
Sep. 30, 2016
Maximum [Member]
Bank Line of Credit [Member]
Sep. 30, 2016
Maximum [Member]
Bank Line of Credit [Member]
LIBOR [Member]
Sep. 30, 2016
Maximum [Member]
Bank Line of Credit [Member]
Base Rate [Member]
Sep. 30, 2016
Other Notes [Member]
Dec. 31, 2015
Other Notes [Member]
Sep. 30, 2015
Other Notes [Member]
Apr. 30, 2015
Notes [Member]
Jun. 30, 2015
Notes [Member]
Dec. 31, 2015
Notes [Member]
10.125% notes due 2015 [Member]
Sep. 30, 2016
Notes [Member]
10.125% notes due 2015 [Member]
Sep. 30, 2015
Notes [Member]
10.125% notes due 2015 [Member]
Mar. 31, 2015
Notes [Member]
4.50% notes due 2025 [Member]
Sep. 30, 2016
Notes [Member]
4.50% notes due 2025 [Member]
Dec. 31, 2015
Notes [Member]
4.50% notes due 2025 [Member]
Sep. 30, 2015
Notes [Member]
4.50% notes due 2025 [Member]
Apr. 30, 2015
Notes [Member]
7.00% notes due 2018 [Member]
Mar. 31, 2015
Notes [Member]
7.00% notes due 2018 [Member]
Mar. 31, 2015
Notes [Member]
7.00% notes due 2018 [Member]
Sep. 30, 2016
Notes [Member]
7.00% notes due 2018 [Member]
Dec. 31, 2015
Notes [Member]
7.00% notes due 2018 [Member]
Sep. 30, 2015
Notes [Member]
7.00% notes due 2018 [Member]
Apr. 30, 2015
Notes [Member]
6.40% notes due 2017 [Member]
Sep. 30, 2016
Notes [Member]
6.40% notes due 2017 [Member]
Apr. 30, 2015
Notes [Member]
6.50% notes due 2016 [Member]
Sep. 30, 2016
Notes [Member]
6.50% notes due 2016 [Member]
Aug. 31, 2015
Industrial Revenue Bonds [Member]
Sep. 30, 2016
Industrial Revenue Bonds [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
$ 3,320,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
500,000,000 
750,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date
 
 
 
 
Jun. 01, 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to EBITDA ratio
 
 
 
 
3.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA to net cash interest expense ratio
 
 
 
 
3.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Applicable margin on borrowing rate
 
 
 
 
 
1.25% 
0.25% 
 
0.175% 
 
1.00% 
0.00% 
 
2.00% 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitment fee
 
 
 
 
0.15% 
 
 
 
 
0.10% 
 
 
0.35% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available borrowing capacity
 
 
 
 
475,160,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings
 
 
 
 
235,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding standby letters of credit
 
 
 
 
 
 
 
39,840,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross long-term debt
2,004,184,000 
2,004,203,000 
2,004,198,000 
 
 
 
 
 
 
 
 
 
 
 
 
484,000 1
498,000 1
503,000 1
 
 
150,000,000 
 
400,000,000 
400,000,000 
400,000,000 
 
 
 
272,512,000 
272,512,000 
272,512,000 
 
 
 
 
 
 
Repayments of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
385,024,000 
 
150,000,000 
 
 
 
 
 
 
 
145,899,000 
 
 
 
 
 
 
 
 
14,000,000 
 
Face value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.125% 
 
4.50% 
4.50% 
 
 
7.00% 
7.00% 
7.00% 
7.00% 
 
 
6.40% 
 
6.50% 
 
 
 
Maturity year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015 
 
 
2025 
 
 
 
 
 
2018 
 
 
 
2017 
 
2016 
 
2022 
Net proceeds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
395,207,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
185,000 
127,303,000 
127,303,000 
 
 
 
218,633,000 
 
125,001,000 
 
 
 
Principal percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
32.00% 
 
 
 
 
100.00% 
 
100.00% 
 
 
 
Transaction fees
7,382,000 
 
2,589,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other cost (benefit) related to debt purchase
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,136,000 
 
 
 
 
 
 
 
 
 
3,138,000 
 
 
 
 
 
 
 
 
 
 
Premium for repayments of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
41,153,000 
 
 
 
 
 
 
 
 
 
18,140,000 
 
 
 
 
 
 
 
 
 
 
Transaction costs for repayments of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
52,000 
 
 
 
 
 
 
 
 
 
456,000 
 
 
 
 
 
 
 
 
 
 
Cost of debt purchase
$ 0 
$ 67,075,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 45,341,000 
 
 
 
 
 
 
 
 
 
$ 21,734,000 
 
 
 
 
 
 
 
 
 
Period of standby letters of credit
 
 
 
 
 
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEBT (Debt) (Details) (USD $)
9 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Apr. 30, 2015
Mar. 31, 2015
Debt Instrument [Line Items]
 
 
 
 
 
Total short-term debt
$ 0 
$ 0 
$ 0 
 
 
Total long-term debt - face value
2,004,184,000 
2,004,198,000 
2,004,203,000 
 
 
Unamortized discounts and debt issuance costs
(20,414,000)
(23,734,000)
(24,821,000)
 
 
Total long-term debt - book value
1,983,770,000 
1,980,464,000 
1,979,623,000 
 
 
Less current maturities
131,000 
130,000 
130,000 
 
 
Total long-term debt - reported value
1,983,639,000 
1,980,334,000 
1,979,493,000 
 
 
Estimated fair value of long-term debt
2,305,065,000 
2,204,816,000 
2,191,361,000 
 
 
10.125% notes due 2015 [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Unamortized deferred interest rate swap gain
1
1
241,000 1
 
 
Bank Line of Credit [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Total short-term debt
2 3 4
2 3 4
2 3 4
 
 
Bank Line of Credit [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Total long-term debt - face value
235,000,000 2 3 4
235,000,000 2 3 4
85,000,000 2 3 4
 
 
Maturity date
Jun. 01, 2020 
 
 
 
 
Effective interest rate
1.25% 2 3 4
 
 
 
 
Notes [Member] |
10.125% notes due 2015 [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Total long-term debt - face value
150,000,000 
 
 
Interest rate
10.125% 
 
 
 
 
Maturity year
2015 
 
 
 
 
Notes [Member] |
7.00% notes due 2018 [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Total long-term debt - face value
272,512,000 
272,512,000 
272,512,000 
 
 
Interest rate
7.00% 
 
 
7.00% 
7.00% 
Maturity year
2018 
 
 
 
 
Effective interest rate
7.87% 
 
 
 
 
Notes [Member] |
10.375% notes due 2018 [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Total long-term debt - face value
250,000,000 
250,000,000 
250,000,000 
 
 
Interest rate
10.375% 
 
 
 
 
Maturity year
2018 
 
 
 
 
Effective interest rate
10.63% 
 
 
 
 
Notes [Member] |
7.50% notes due 2021 [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Total long-term debt - face value
600,000,000 
600,000,000 
600,000,000 
 
 
Interest rate
7.50% 
 
 
 
 
Maturity year
2021 
 
 
 
 
Effective interest rate
7.75% 
 
 
 
 
Notes [Member] |
8.85% notes due 2021 [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Total long-term debt - face value
6,000,000 
6,000,000 
6,000,000 
 
 
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
400,000,000 
400,000,000 
400,000,000 
 
 
Interest rate
4.50% 
 
 
 
4.50% 
Maturity year
2025 
 
 
 
 
Effective interest rate
4.65% 
 
 
 
 
Notes [Member] |
7.15% notes due 2037 [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Total long-term debt - face value
240,188,000 
240,188,000 
240,188,000 
 
 
Interest rate
7.15% 
 
 
 
 
Maturity year
2037 
 
 
 
 
Effective interest rate
8.05% 
 
 
 
 
Other Notes [Member]
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
Total long-term debt - face value
$ 484,000 4
$ 498,000 4
$ 503,000 4
 
 
Effective interest rate
6.24% 4
 
 
 
 
DEBT (Standby Letters of Credit) (Details) (USD $)
Sep. 30, 2016
Jun. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Dec. 31, 2014
Line of Credit Facility [Line Items]
 
 
 
 
 
 
Reclamation/restoration requirements
$ 214,686,000 
$ 217,043,000 
$ 226,594,000 
$ 234,680,000 
$ 234,919,000 
$ 226,565,000 
Standby Letters of Credit [Member]
 
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
 
Risk management insurance
34,111,000 
 
 
 
 
 
Reclamation/restoration requirements
5,729,000 
 
 
 
 
 
Total
$ 39,840,000 
 
 
 
 
 
COMMITMENTS AND CONTINGENCIES (Details) (USD $)
1 Months Ended 1 Months Ended 9 Months Ended
Jul. 31, 2016
item
Sep. 30, 2016
Jun. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Dec. 31, 2014
Mar. 31, 2016
Cooperating Parties Group [Member]
mi
May 31, 2007
Cooperating Parties Group [Member]
mi
entity
Sep. 30, 2016
Texas Brine and Occidental Chemical Co [Member]
Sep. 30, 2016
Maximum [Member]
EPA [Member]
Sep. 30, 2016
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding standby letters of credit
 
 
 
 
 
 
 
 
 
 
 
$ 39,840,000 
Asset retirement obligations
 
214,686,000 
217,043,000 
226,594,000 
234,680,000 
234,919,000 
226,565,000 
 
 
 
 
 
Number of other companies to perform a Remedial Investigation/ Feasibility Study related to the Lower Passaic River Clean-Up lawsuit
 
 
 
 
 
 
 
 
70 
 
 
 
Number of miles of the River used in the Remedial Investigation/Feasibility Study
 
 
 
 
 
 
 
 
17 
 
 
 
Number of miles for bank-to-bank dredging remedy
 
 
 
 
 
 
 
 
 
 
 
Estimated implementation costs
 
 
 
 
 
 
 
 
 
 
1,380,000,000 
 
Total amount of damages claimed
 
 
 
 
 
 
 
 
 
500,000,000 
 
 
Number of groundwater extraction wells
 
 
 
 
 
 
 
 
 
 
 
Liability for claims and litigation
 
$ 0 
 
 
 
 
 
 
 
 
 
 
ASSET RETIREMENT OBLIGATIONS (Asset Retirement Obligations Operating Costs) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
ASSET RETIREMENT OBLIGATIONS [Abstract]
 
 
 
 
Accretion
$ 2,692 
$ 2,766 
$ 8,163 
$ 8,553 
Depreciation
1,469 
1,681 
4,783 
4,683 
Total
$ 4,161 
$ 4,447 
$ 12,946 
$ 13,236 
ASSET RETIREMENT OBLIGATIONS (Reconciliations of Asset Retirement Obligations) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
ASSET RETIREMENT OBLIGATIONS [Abstract]
 
 
 
 
Balance at beginning of period
$ 217,043 
$ 234,919 
$ 226,594 
$ 226,565 
Liabilities incurred
505 
6,159 
Liabilities settled
(3,937)
(5,318)
(14,256)
(13,318)
Accretion expense
2,692 
2,766 
8,163 
8,553 
Revisions, net
(1,112)
2,313 
(6,320)
6,721 
Balance at end of period
$ 214,686 
$ 234,680 
$ 214,686 
$ 234,680 
BENEFIT PLANS (Narrative) (Details)
9 Months Ended
Sep. 30, 2016
entity
BENEFIT PLANS [Abstract]
 
Number of funded, noncontributory defined benefit pension plans
Number of unfunded, nonqualified pension plans
Normal retirement age
65 years 
BENEFIT PLANS (Components of Net Periodic Benefit Cost) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Pension Benefits [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
$ 1,335 
$ 1,213 
$ 4,007 
$ 3,638 
Interest cost
9,127 
11,004 
27,379 
33,077 
Expected return on plan assets
(12,891)
(13,683)
(38,672)
(41,051)
Settlement charge
2,031 
2,031 
Amortization of prior service cost (credit)
(11)
12 
(32)
36 
Amortization of actuarial (gain) loss
1,540 
5,383 
4,622 
16,292 
Net periodic benefit cost (credit)
(900)
5,960 
(2,696)
14,023 
Pretax reclassification from AOCI included in net periodic pension/postretirement benefit cost (credit)
1,529 
7,426 
4,590 
18,359 
Other Postretirement Benefits [Member]
 
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
Service cost
281 
473 
842 
1,420 
Interest cost
302 
621 
907 
1,864 
Amortization of prior service cost (credit)
(1,059)
(1,058)
(3,177)
(3,174)
Amortization of actuarial (gain) loss
(438)
(1,313)
28 
Net periodic benefit cost (credit)
(914)
45 
(2,741)
138 
Pretax reclassification from AOCI included in net periodic pension/postretirement benefit cost (credit)
$ (1,497)
$ (1,049)
$ (4,490)
$ (3,146)
OTHER COMPREHENSIVE INCOME (Accumulated Other Comprehensive Income, Net of Tax) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
OTHER COMPREHENSIVE INCOME [Abstract]
 
 
 
Cash flow hedges
$ (13,592)
$ (14,494)
$ (14,715)
Pension and postretirement plans
(105,514)
(105,575)
(132,131)
Total
$ (119,106)
$ (120,069)
$ (146,846)
OTHER COMPREHENSIVE INCOME (Changes in Accumulated Other Comprehensive Income, Net of Tax) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
AOCI, Beginning balance
 
 
$ (120,069)
 
Amounts reclassified from AOCI
 
 
963 
 
Other comprehensive income
327 
4,165 
963 
14,868 
AOCI, Ending balance
(119,106)
(146,846)
(119,106)
(146,846)
Reclassification Adjustment for Cash Flow Hedge Losses [Member]
 
 
 
 
AOCI, Beginning balance
 
 
(14,494)
 
Amounts reclassified from AOCI
 
 
902 
 
Other comprehensive income
 
 
902 
 
AOCI, Ending balance
(13,592)
 
(13,592)
 
Amortization of Pension and Postretirement Plan Actuarial Loss and Prior Service Cost [Member]
 
 
 
 
AOCI, Beginning balance
 
 
(105,575)
 
Amounts reclassified from AOCI
 
 
61 
 
Other comprehensive income
 
 
61 
 
AOCI, Ending balance
$ (105,514)
 
$ (105,514)
 
OTHER COMPREHENSIVE INCOME (Amounts Reclassified from Accumulated Other Comprehensive Income to Earnings) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Interest expense
$ (33,126)
$ (37,800)
$ (100,192)
$ (183,931)
Cost of revenues
703,931 
747,170 
1,958,581 
1,961,292 
Selling, administrative and general expenses
76,311 
71,390 
235,460 
207,350 
Benefit from income taxes
52,062 
45,386 
116,026 
51,177 
Net earnings
139,765 
123,805 
282,439 
132,289 
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Net earnings
327 
4,165 
963 
14,868 
Reclassification Adjustment for Cash Flow Hedge Losses [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Interest expense
507 
467 
1,490 
9,282 
Benefit from income taxes
(200)
(185)
(588)
(3,675)
Net earnings
307 1
282 1
902 1
5,607 1
Amortization of Pension and Postretirement Plan Actuarial Loss and Prior Service Cost [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Cost of revenues
27 
5,242 
82 
12,417 
Selling, administrative and general expenses
1,136 
18 
2,796 
Benefit from income taxes
(13)
(2,495)
(39)
(5,952)
Net earnings
$ 20 2
$ 3,883 2
$ 61 2
$ 9,261 2
EQUITY (Narrative) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
EQUITY [Abstract]
 
 
 
Common stock, par value
$ 1 
$ 1 
$ 1 
Preferred stock issued
 
 
Number of shares held in treasury
Shares purchased and retired
1,426,659 
228,000 
Cost of shares purchased and retired
$ 161,463 
$ 0 
$ 21,475 
Cash payment for stock repurchase
$ 161,463 
$ 0 
 
Shares remaining under the current authorization repurchase program
1,756,757 
 
 
EQUITY (Changes in Total Equity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
EQUITY [Abstract]
 
 
 
 
 
Balance at beginning of year
 
 
$ 4,454,188 
$ 4,176,699 
$ 4,176,699 
Net earnings
139,765 
123,805 
282,439 
132,289 
 
Share-based compensation, net of shares withheld for taxes
 
 
(34,684)
48,329 
 
Purchase and retirement of common stock
 
 
(161,463)
(21,475)
Share-based compensation expense
 
 
15,645 
14,020 
 
Excess tax benefits from share-based compensation
 
 
26,747 
16,950 
 
Cash dividends on common stock ($0.60/$0.30 per share)
 
 
(79,865)
(39,878)
 
Other comprehensive income
327 
4,165 
963 
14,868 
 
Other
 
 
 
Balance at end of year
$ 4,503,970 
$ 4,363,277 
$ 4,503,970 
$ 4,363,277 
$ 4,454,188 
Cash dividend on common stock, per share
 
 
$ 0.60 
$ 0.30 
 
SEGMENT REPORTING (Narrative) (Details)
9 Months Ended
Sep. 30, 2016
segment
SEGMENT REPORTING [Abstract]
 
Number of operating segments
Number of reportable segments
SEGMENT REPORTING (Segment Financial Disclosure) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Total revenues
$ 1,008,140 
$ 1,038,460 
$ 2,719,693 
$ 2,564,896 
 
 
Gross profit
304,209 
291,290 
761,112 
603,604 
 
 
Depreciation, depletion, accretion and amortization
72,049 
69,662 
213,362 
204,770 
 
 
Cash and cash equivalents
135,365 
168,681 
135,365 
168,681 
284,060 
141,273 
Total assets
8,358,085 
8,316,866 
8,358,085 
8,316,866 
8,301,632 
 
Segment sales [Member]
 
 
 
 
 
 
Total revenues
1,072,735 
1,099,863 
2,886,256 
2,711,458 
 
 
Total assets
8,108,692 1
8,042,121 1
8,108,692 1
8,042,121 1
 
 
Aggregates [Member] |
Segment sales [Member]
 
 
 
 
 
 
Total revenues
821,809 2
830,783 2
2,248,174 2
2,067,671 2
 
 
Gross profit
261,762 
250,866 
664,154 
525,816 
 
 
Depreciation, depletion, accretion and amortization
60,204 
57,732 
177,129 
170,251 
 
 
Total assets
7,671,222 1
7,533,172 1
7,671,222 1
7,533,172 1
 
 
Aggregates [Member] |
Intersegment sales [Member]
 
 
 
 
 
 
Total revenues
(64,595)
(61,403)
(166,563)
(146,562)
 
 
Asphalt Mix [Member] |
Segment sales [Member]
 
 
 
 
 
 
Total revenues
157,406 
178,865 
388,560 
410,934 
 
 
Gross profit
32,889 
30,020 
76,028 
59,973 
 
 
Depreciation, depletion, accretion and amortization
4,100 
4,124 
12,468 
12,131 
 
 
Total assets
243,909 1
315,003 1
243,909 1
315,003 1
 
 
Concrete [Member] |
Segment sales [Member]
 
 
 
 
 
 
Total revenues
91,147 
88,013 
242,790 
226,400 
 
 
Gross profit
8,711 
9,578 
18,334 
15,280 
 
 
Depreciation, depletion, accretion and amortization
3,072 
2,955 
9,141 
8,457 
 
 
Total assets
188,169 1
188,331 1
188,169 1
188,331 1
 
 
Calcium [Member] |
Segment sales [Member]
 
 
 
 
 
 
Total revenues
2,373 
2,202 
6,732 
6,453 
 
 
Gross profit
847 
826 
2,596 
2,535 
 
 
Depreciation, depletion, accretion and amortization
198 
170 
577 
496 
 
 
Total assets
5,392 1
5,615 1
5,392 1
5,615 1
 
 
Other [Member]
 
 
 
 
 
 
Depreciation, depletion, accretion and amortization
4,475 
4,681 
14,047 
13,435 
 
 
Corporate [Member]
 
 
 
 
 
 
Total assets
$ 114,028 
$ 106,064 
$ 114,028 
$ 106,064 
 
 
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]
 
 
Interest (exclusive of amount capitalized)
$ 69,865 
$ 136,123 
Income taxes
92,397 
46,271 
Accrued liabilities for purchases of property, plant & equipment
10,493 
11,941 
Liabilities assumed
2,645 
Fair value of noncash assets and liabilities exchanged
$ 0 
$ 20,000 
GOODWILL (Narrative) (Details) (USD $)
9 Months Ended
Sep. 30, 2016
segment
Sep. 30, 2015
GOODWILL [Abstract]
 
 
Goodwill impairment charges
$ 0 
$ 0 
Number of reportable segments
 
GOODWILL (Changes in Carrying Amount of Goodwill by Reportable Segment) (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Goodwill, Beginning balance
$ 3,094,824 
$ 3,094,824 
Goodwill of acquired businesses
 
Goodwill of divested businesses
 
Goodwill, Ending balance
3,094,824 
3,094,824 
Aggregates [Member]
 
 
Goodwill, Beginning balance
3,003,191 
 
Goodwill of acquired businesses
 
Goodwill of divested businesses
 
Goodwill, Ending balance
3,003,191 
 
Asphalt Mix [Member]
 
 
Goodwill, Beginning balance
91,633 
 
Goodwill of acquired businesses
 
Goodwill of divested businesses
 
Goodwill, Ending balance
91,633 
 
Concrete [Member]
 
 
Goodwill, Beginning balance
 
Goodwill of acquired businesses
 
Goodwill of divested businesses
 
Goodwill, Ending balance
 
Calcium [Member]
 
 
Goodwill, Beginning balance
 
Goodwill of acquired businesses
 
Goodwill of divested businesses
 
Goodwill, Ending balance
$ 0 
 
ACQUISITIONS AND DIVESTITURES (Details) (USD $)
9 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Sep. 30, 2016
Acquisition Closed On October 1, 2016 [Member]
Dec. 31, 2015
Aggregates [Member]
Tennessee [Member]
property
Dec. 31, 2015
Aggregates [Member]
Arizona and New Mexico [Member]
property
Dec. 31, 2015
Concrete [Member]
Arizona and New Mexico [Member]
property
Mar. 31, 2015
Concrete [Member]
California [Member]
property
Dec. 31, 2015
Asphalt Mix [Member]
Arizona [Member]
property
Sep. 30, 2016
Trucking Business Assets [Member]
Significant Acquisitions and Disposals [Line Items]
 
 
 
 
 
 
 
 
 
 
Cash consideration
$ 1,611,000 
$ 20,801,000 
$ 27,198,000 
 
 
 
 
 
 
$ 1,611,000 
Total consideration
 
 
47,198,000 
 
 
 
 
 
 
 
Exchanges of real property and businesses
 
 
20,000,000 
 
 
 
 
 
 
 
Number of facilities acquired
 
 
 
 
 
13 
 
Number of facilities divested
 
 
 
 
 
 
 
12 
 
 
Prepaid expenses
71,370,000 
56,017,000 
34,284,000 
19,500,000 
 
 
 
 
 
 
Gain on sale of properties and businesses
 
 
 
 
 
 
 
5,886,000 
 
 
Assets held for sale
$ 0 
$ 0 
$ 0 
 
 
 
 
 
 
 
NEW ACCOUNTING STANDARDS (Details) (ASU 2015-11 [Member])
Dec. 31, 2015
ASU 2015-11 [Member]
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
LIFO method used for percentage of inventory
67.00%