VULCAN MATERIALS CO, 10-K filed on 2/26/2019
Annual Report
v3.10.0.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2018
Feb. 12, 2019
Jun. 29, 2018
Document and Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2018    
Document Fiscal Year Focus 2018    
Document Fiscal Period Focus FY    
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 Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Well-known Seasoned Issuer Yes    
Entity Common Stock, Shares Outstanding   131,830,868  
Entity Public Float     $ 17,035,024,582
Entity Emerging Growth Company false    
Entity Small Business false    
Entity Shell Company false    
v3.10.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]      
Total revenues [1] $ 4,382,869 $ 3,890,296 $ 3,592,667
Cost of revenues 3,281,924 2,896,783 2,603,782
Gross profit 1,100,945 993,513 988,885
Selling, administrative and general expenses 333,371 324,972 316,769
Gain on sale of property, plant & equipment and businesses 14,944 17,827 15,431
Other operating expense, net (34,805) (47,324) (21,645)
Operating earnings 747,713 639,044 665,902
Other nonoperating income, net 13,000 13,357 14,624
Interest income 554 4,437 807
Interest expense 137,977 295,522 134,076
Earnings from continuing operations before income taxes 623,290 361,316 547,257
Income tax expense (benefit)      
Current 40,516 354 94,254
Deferred 64,933 (232,429) 30,597
Total income tax expense (benefit) 105,449 (232,075) 124,851
Earnings from continuing operations 517,841 593,391 422,406
Earnings (loss) on discontinued operations, net of tax (2,036) 7,794 (2,915)
Net earnings 515,805 601,185 419,491
Other comprehensive income (loss), net of tax      
Deferred gain on interest rate derivative 2,496 0 0
Amortization of prior interest rate derivative loss 226 1,862 1,194
Adjustment for funded status of benefit plans (207) (14,106) (20,583)
Amortization of actuarial loss and prior service cost for benefit plans 4,365 2,154 82
Other comprehensive income (loss) 6,880 (10,090) (19,307)
Comprehensive income $ 522,685 $ 591,095 $ 400,184
Basic earnings (loss) per share      
Continuing operations $ 3.91 $ 4.48 $ 3.17
Discontinued operations (0.01) 0.06 (0.02)
Net earnings 3.90 4.54 3.15
Diluted earnings (loss) per share      
Continuing operations 3.87 4.40 3.11
Discontinued operations (0.02) 0.06 (0.02)
Net earnings $ 3.85 $ 4.46 $ 3.09
Weighted-average common shares outstanding      
Basic 132,393 132,513 133,205
Assuming dilution 133,926 134,878 135,790
[1] The geographic markets are defined by states/countries as follows:East market - Arkansas, Delaware, Illinois, Kentucky, Maryland, North Carolina, Pennsylvania, Tennessee, Virginia, and Washington D.C.Gulf Coast market - Alabama, Florida, Georgia, Louisiana, Mexico, Mississippi, Oklahoma, South Carolina, Texas and the BahamasWest market - Arizona, California and New Mexico
v3.10.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Assets    
Cash and cash equivalents $ 40,037 $ 141,646
Restricted cash 4,367 5,000
Accounts and notes receivable    
Customers, less allowance for doubtful accounts 2018 — $2,090; 2017 — $2,649 512,279 434,089
Other 28,499 154,248
Inventories 429,330 384,338
Other current assets 64,633 60,780
Total current assets 1,079,145 1,180,101
Investments and long-term receivables 44,615 35,115
Property, plant & equipment, net 4,237,307 3,918,931
Goodwill 3,165,396 3,122,321
Other intangible assets, net 1,095,378 1,063,630
Other noncurrent assets 210,289 184,793
Total assets 9,832,130 9,504,891
Liabilities    
Current maturities of long-term debt 23 41,383
Short-term debt 133,000 0
Trade payables and accruals 216,473 197,335
Accrued salaries, wages and management incentives 91,960 87,208
Accrued interest 19,631 11,664
Other current liabilities 141,463 105,282
Total current liabilities 602,550 442,872
Long-term debt 2,779,357 2,813,482
Deferred income taxes, net 567,283 464,081
Deferred management incentive and other compensation 16,604 19,856
Pension benefits 119,587 245,449
Other postretirement benefits 35,274 37,856
Asset retirement obligations 225,726 218,117
Deferred revenue 186,397 191,476
Other noncurrent liabilities 96,449 102,809
Total liabilities 4,629,227 4,535,998
Other commitments and contingencies (Note 12)
Equity    
Common stock, $1 par value, Authorized 480,000 shares, Outstanding 131,762, and 132,324 shares, respectively 131,762 132,324
Capital in excess of par value 2,798,486 2,805,587
Retained earnings 2,444,870 2,180,448
Accumulated other comprehensive loss (172,215) (149,466)
Total equity 5,202,903 4,968,893
Total liabilities and equity $ 9,832,130 $ 9,504,891
v3.10.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS [Abstract]    
Customers, allowance for doubtful accounts $ 2,090 $ 2,649
Common stock, par value $ 1 $ 1
Common stock, shares authorized 480,000,000 480,000,000
Common stock, shares outstanding 131,762,000 132,324,000
v3.10.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Operating Activities      
Net earnings $ 515,805 $ 601,185 $ 419,491
Adjustments to reconcile net earnings to net cash provided by operating activities      
Depreciation, depletion, accretion and amortization 346,246 305,965 284,940
Net gain on sale of property, plant & equipment and businesses (14,944) (17,827) (15,431)
Contributions to pension plans (109,631) (20,023) (9,576)
Share-based compensation expense 25,215 26,635 20,670
Deferred tax expense (benefit) 64,639 (235,697) 33,591
Cost of debt purchase 6,922 140,772 0
(Increase) decrease in assets excluding the initial effects of business acquisitions and dispositions      
Accounts and notes receivable 63,230 (81,561) (72,763)
Inventories (34,976) (14,121) 1,625
Prepaid expenses (2,167) (28,445) 2,558
Other assets (58,489) (23,759) (18,236)
Increase (decrease) in liabilities excluding the initial effects of business acquisitions and dispositions      
Accrued interest and income taxes 12,148 1,303 (7,187)
Trade payables and other accruals 40,181 9,823 30,353
Other noncurrent liabilities (26,901) (32,592) (29,138)
Other, net 5,499 13,020 3,691
Net cash provided by operating activities 832,777 644,678 644,588
Investing Activities      
Purchases of property, plant & equipment (469,088) (459,566) (350,148)
Proceeds from sale of property, plant & equipment 22,210 15,756 23,318
Proceeds from sale of businesses 11,256 287,292 0
Payment for businesses acquired, net of acquired cash (221,419) (1,109,725) (32,537)
Other, net (12,850) (3,248) 2,173
Net cash used for investing activities (669,891) (1,269,491) (357,194)
Financing Activities      
Proceeds from short-term debt 739,900 5,000 3,000
Payment of short-term debt (606,900) (5,000) (3,000)
Payment of current maturities and long-term debt (892,055) (1,463,308) (130)
Proceeds from issuance of long-term debt 850,000 2,200,000 0
Debt issuance and exchange costs (45,513) (15,291) (1,860)
Settlements of interest rate derivatives 3,378 0 0
Purchases of common stock (133,983) (60,303) (161,463)
Dividends paid (148,109) (132,335) (106,333)
Share-based compensation, shares withheld for taxes (31,846) (25,323) (34,799)
Net cash provided by (used for) financing activities (265,128) 503,440 (304,585)
Net decrease in cash and cash equivalents and restricted cash (102,242) (121,373) (17,191)
Cash and cash equivalents and restricted cash at beginning of year 146,646 268,019 285,210
Cash and cash equivalents and restricted cash at end of year $ 44,404 $ 146,646 $ 268,019
v3.10.0.1
CONSOLIDATED STATEMENTS OF EQUITY - USD ($)
shares in Thousands, $ in Thousands
Common Stock [Member]
Capital In Excess Of Par Value [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Beginning balance, shares at Dec. 31, 2015 133,172        
Balance at beginning of period at Dec. 31, 2015 $ 133,172 $ 2,822,578 $ 1,618,507 $ (120,069) $ 4,454,188
Net earnings $ 0 0 419,491 0 419,491
Share-based compensation plans, net of shares withheld for taxes, shares 594        
Share-based compensation plans, net of shares withheld for taxes $ 594 (35,363) 0 0 (34,769)
Purchase and retirement of common stock, shares (1,427)        
Purchase and retirement of common stock $ (1,427) 0 (160,036) 0 (161,463)
Share-based compensation expense 0 20,670 0 0 20,670
Cash dividends on common stock 0 0 (106,333) 0 (106,333)
Other comprehensive income (loss) 0 0 0 (19,307) (19,307)
Other $ 0 110 (111) 0 (1)
Ending balance, shares at Dec. 31, 2016 132,339        
Balance at end of period at Dec. 31, 2016 $ 132,339 2,807,995 1,771,518 (139,376) 4,572,476
Net earnings $ 0 0 601,185 0 601,185
Share-based compensation plans, net of shares withheld for taxes, shares 495        
Share-based compensation plans, net of shares withheld for taxes $ 495 (29,168) 0 0 (28,673)
Purchase and retirement of common stock, shares (510)        
Purchase and retirement of common stock $ (510) 0 (59,793) 0 (60,303)
Share-based compensation expense 0 26,635 0 0 26,635
Cash dividends on common stock 0 0 (132,335) 0 (132,335)
Other comprehensive income (loss) 0 0 0 (10,090) (10,090)
Other $ 0 125 (127) 0 (2)
Ending balance, shares at Dec. 31, 2017 132,324        
Balance at end of period at Dec. 31, 2017 $ 132,324 2,805,587 2,180,448 (149,466) 4,968,893
Released stranded tax effects ASU 2018-02 (Note 9) 0 0 29,629 (29,629) 0
Balances at January 1, 2018, due to reclassification 132,324 2,805,587 2,210,077 (179,095) 4,968,893
Net earnings $ 0 0 515,805 0 515,805
Share-based compensation plans, net of shares withheld for taxes, shares 630        
Share-based compensation plans, net of shares withheld for taxes $ 630 (32,428) 0 0 (31,798)
Purchase and retirement of common stock, shares (1,192)        
Purchase and retirement of common stock $ (1,192) 0 (132,791) 0 (133,983)
Share-based compensation expense 0 25,215 0 0 25,215
Cash dividends on common stock 0 0 (148,109) 0 (148,109)
Other comprehensive income (loss) 0 0 0 6,880 6,880
Other $ 0 112 (112) 0 0
Ending balance, shares at Dec. 31, 2018 131,762        
Balance at end of period at Dec. 31, 2018 $ 131,762 $ 2,798,486 $ 2,444,870 $ (172,215) $ 5,202,903
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS

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

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

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

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 Consolidated Statements of Comprehensive Income for all periods presented. Results from discontinued operations are as follows:



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Discontinued Operations

 

 

 

 

 

 

 

 

Pretax earnings (loss)

$        (2,748)

 

 

$       12,959 

 

 

$        (4,877)

 

Income tax (expense) benefit

712 

 

 

(5,165)

 

 

1,962 

 

Earnings (loss) on discontinued operations,

 

 

 

 

 

 

 

 

  net of tax

$        (2,036)

 

 

$         7,794 

 

 

$        (2,915)

 



Discontinued operations include charges related to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business. The 2017 results also reflect insurance recoveries for past legal expenses associated with the Texas Brine matter (see Note 12). There were no revenues from discontinued operations for the years presented.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of Vulcan Materials Company and all our majority or
wholly-owned subsidiary companies. Partially-owned affiliates are either consolidated or accounted for at cost or as equity investments depending on the level of ownership interest or our ability to exercise control over the affiliates’ operations. All intercompany transactions and accounts have been eliminated in consolidation.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS

The preparation of these financial statements in conformity with accounting principles generally accepted (GAAP) in the United States of America requires us to make estimates and judgments that affect reported amounts of assets, liabilities, revenues and expenses, and the related disclosures of contingent assets and contingent liabilities at the date of the financial statements. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current conditions and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for our judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ materially from these estimates. The most significant estimates included in the preparation of these financial statements are related to goodwill and long-lived asset impairments, business combinations and purchase price allocation, pension and other postretirement benefits, environmental compliance, claims and litigation including self-insurance, and income taxes.

BUSINESS COMBINATIONS

We account for business combinations under the acquisition method of accounting. The purchase price of an acquisition is allocated to the underlying identifiable assets acquired and liabilities assumed based on their respective fair values. The purchase price is determined based on the fair value of consideration transferred to and liabilities assumed from the seller as of the date of acquisition. We allocate the purchase price to the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed as of the date of acquisition. Goodwill is recorded for the excess of the purchase price over the net of the fair value of the identifiable assets acquired and liabilities assumed.

Determining the fair values of assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction, and therefore represents an exit price. A fair value measurement assumes the highest and best use of the asset by market participants.

We may adjust the amounts recognized in an acquisition during a measurement period after the acquisition date. Any such adjustments are the result of subsequently obtaining additional information that existed at the acquisition date regarding the assets acquired or the liabilities assumed. Measurement period adjustments are generally recorded as increases or decreases to goodwill, if any, recognized in the transaction. The cumulative impact of measurement period adjustments on depreciation, amortization and other income statement items are recognized in the period the adjustment is determined.

FOREIGN CURRENCY TRANSACTIONS

The U.S. dollar is the functional currency for all of our operations. For our non-U.S. subsidiaries, local currency inventories and long-term assets such as property, plant & equipment and intangibles are remeasured into U.S. dollars at approximate rates prevailing when acquired; all other assets and liabilities are remeasured at year-end exchange rates. Inventories charged to cost of sales and depreciation are remeasured at historical rates; all other income and expense items are remeasured at average exchange rates prevailing during the year. Gains and losses which result from remeasurement are included in earnings and are not material for the years presented.

CASH EQUIVALENTS

We classify as cash equivalents all highly liquid securities with a maturity of three months or less at the time of purchase. The carrying amount of these securities approximates fair value due to their short-term maturities.

RESTRICTED CASH

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

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable from customers result from our extending credit to trade customers for the purchase of our products. The terms generally provide for payment within 15 days of the month following invoice. On occasion, when necessary to conform to regional industry practices, we sell product under extended payment terms, which may result in either secured or unsecured short-term notes; or, on occasion, notes with durations of less than one year are taken in settlement of existing accounts receivable. Other accounts and notes receivable result from short-term transactions (less than one year) other than the sale of our products, such as interest receivable; insurance claims; freight claims; tax refund claims; bid deposits or rents receivable. As of December 31, 2018, income tax receivables of $922,000 are included in other accounts and notes receivable in the accompanying Consolidated Balance Sheet. There were similar receivables of $106,980,000  ($106,000,000 related to 2017 federal estimated payments which were refunded early 2018) as of December 31, 2017.

Receivables are aged and appropriate allowances for doubtful accounts and bad debt expense are recorded. Bad debt expense (net of recoveries) for the years ended December 31 was as follows: 2018$251,000,  2017$812,000 and 2016$(1,190,000). Write-offs of accounts receivables for the years ended December 31 were as follows: 2018$1,291,000,  2017$1,384,000 and 2016$1,544,000. The bad debt recovery in 2016 relates to the collection of previously reserved receivables primarily attributable to the 2014 sale of our Florida area concrete and cement businesses.

INVENTORIES

Inventories and supplies are stated at the lower of cost or net realizable value. We use the last-in, first-out (LIFO) method of valuation for most of our inventories because it results in a better matching of costs with revenues. Such costs include fuel, parts and supplies, raw materials, direct labor and production overhead. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on our estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. Substantially all operating supplies inventory is carried at average cost. For additional information about our inventories see Note 3.

PROPERTY, PLANT & EQUIPMENT

Property, plant & equipment are carried at cost less accumulated depreciation, depletion and amortization. The cost of properties held under capital leases, if any, is equal to the lower of the net present value of the minimum lease payments or the fair value of the leased property at the inception of the lease.

Capitalized software costs of $4,155,000 and $4,446,000 are reflected in net property, plant & equipment as of December 31, 2018 and 2017, respectively. We capitalized software costs for the years ended December 31 as follows: 2018 — $2,213,000, 2017 — $1,988,000 and 2016 — $152,000.

For additional information about our property, plant & equipment see Note 4.

REPAIR AND MAINTENANCE

Repair and maintenance costs generally are charged to operating expense as incurred. Renewals and betterments that add materially to the utility or useful lives of property, plant & equipment are capitalized and subsequently depreciated. Actual costs for planned major maintenance activities, related primarily to periodic overhauls on our oceangoing vessels, are capitalized and amortized to the next overhaul.

DEPRECIATION, DEPLETION, ACCRETION AND AMORTIZATION

Depreciation is generally computed by the straight-line method at rates based on the estimated service lives of the various classes of assets, which include machinery and equipment (3  to 35 years), buildings (7 to 20 years) and land improvements (8 to 20 years). Capitalized software costs are included in machinery and equipment and are depreciated on a straight-line basis beginning when the software project is substantially complete.

Cost depletion on depletable land is computed by the unit-of-sales method based on estimated recoverable units.

Accretion reflects the period-to-period increase in the carrying amount of the liability for asset retirement obligations. It is computed using the same credit-adjusted, risk-free rate used to initially measure the liability at fair value.

Leaseholds are amortized over varying periods not in excess of applicable lease terms or estimated useful lives.

Amortization of intangible assets subject to amortization is computed based on the estimated life of the intangible assets.
A significant portion of our intangible assets is contractual rights in place associated with zoning, permitting and other rights to access and extract aggregates reserves. Contractual rights in place associated with aggregates reserves are amortized using the unit-of-sales method based on estimated recoverable units. Other intangible assets are amortized principally by the straight-line method.

Depreciation, depletion, accretion and amortization expense for the years ended December 31 is outlined below:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Depreciation, Depletion, Accretion and Amortization

 

 

 

 

 

 

 

 

Depreciation

$      276,814 

 

 

$     250,835 

 

 

$     238,237 

 

Depletion

23,260 

 

 

19,342 

 

 

17,812 

 

Accretion

10,776 

 

 

11,415 

 

 

11,059 

 

Amortization of leaseholds

472 

 

 

608 

 

 

267 

 

Amortization of intangibles

34,924 

 

 

23,765 

 

 

17,565 

 

Total

$      346,246 

 

 

$     305,965 

 

 

$     284,940 

 



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 use derivative instruments for trading or other speculative purposes.

The accounting for gains and losses that result from changes in the fair value of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationship. Changes in the fair value of interest rate swap cash flow hedges are recorded in accumulated other comprehensive income (AOCI) and are reclassified into interest expense in the same period the hedged items affect earnings. Changes in the fair value of 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. Additional disclosures about our derivative instruments are presented in 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 at December 31 subject to fair value measurement on a recurring basis are summarized below:





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Level 1 Fair Value

in thousands

2018

 

 

2017

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

   Mutual funds

$       19,164 

 

 

$     20,348 

 

Total

$       19,164 

 

 

$     20,348 

 





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Level 2 Fair Value

in thousands

2018

 

 

2017

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

   Money market mutual fund

$        1,015 

 

 

$       1,203 

 

Total

$        1,015 

 

 

$       1,203 

 



We have two Rabbi Trusts for the purpose of providing a level of security for the employee nonqualified retirement and deferred compensation plans and for the directors' nonqualified deferred compensation plans. The fair values of these investments are estimated using a market approach. The Level 1 investments include mutual funds 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 Trusts’ investments were $(2,741,000),  $2,441,000 and $2,741,000 for the years ended December 31, 2018, 2017 and 2016, respectively. The portions of the net gains (losses) related to investments still held by the Rabbi Trusts at December 31, 2018, 2017 and 2016 were $(4,386,000),  $(3,618,000) and $1,599,000, respectively.

The carrying values of our cash equivalents, restricted cash, accounts and notes receivable, short-term debt, trade payables and accruals, and all other current liabilities approximate their fair values because of the short-term nature of these instruments. Additional disclosures for derivative instruments and interest-bearing debt are presented in Notes 5 and 6, respectively.

GOODWILL IMPAIRMENT

Goodwill represents the excess of the cost of net assets acquired in business combinations over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. Goodwill impairment exists when the fair value of a reporting unit is less than its carrying amount. As of December 31, 2018, goodwill totaled $3,165,396,000, as compared to $3,122,321,000 at December 31, 2017. Goodwill represents 32% of total assets at December 31, 2018 compared to 33% at December 31, 2017.

Goodwill is tested for impairment annually, as of November 1, or more frequently whenever events or changes in circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill is tested for impairment at the reporting unit level, one level below our operating segments. We have four operating segments organized around our principal product lines: Aggregates, Asphalt, Concrete and Calcium. Within these four operating segments, we have identified 17 reporting units (of which 9 carry goodwill) based primarily on geographic location. We have the option of either assessing qualitative factors to determine whether it is more likely than not that the carrying value of our reporting units exceeds their respective fair value or proceeding directly to a quantitative test. We elected to perform the quantitative impairment test for all years presented.

The quantitative impairment test compares the fair value of a reporting unit to its carrying value, including goodwill. If the fair value exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. However, if the carrying value of a reporting unit exceeds its fair value, we recognize an impairment loss equal to that excess.

The results of the annual impairment tests performed as of November 1, 2018, 2017 and 2016 indicated that the fair values of all reporting units with goodwill substantially exceeded their carrying values. Accordingly, there were no charges for goodwill impairment in the years ended December 31, 2018, 2017 or 2016.

We estimate the fair values of the reporting units using both an income approach (which involves discounting estimated future cash flows) and a market approach (which involves the application of revenue and EBITDA multiples of comparable companies). Determining the fair value of our reporting units involves the use of significant estimates and assumptions and considerable management judgment. We base our fair value estimates on assumptions we believe to be reasonable at the time, but such assumptions are subject to inherent uncertainty and actual results may differ. Changes in key assumptions or management judgment with respect to a reporting unit or its prospects, which may result from a change in market conditions, market trends, interest rates or other factors outside of our control, or underperformance relative to historical or projected operating results, could result in a significantly different estimate of the fair value of our reporting units, which could result in an impairment charge in the future.

For additional information about goodwill see Note 18.

IMPAIRMENT OF LONG-LIVED ASSETS EXCLUDING GOODWILL

We evaluate the carrying value of long-lived assets, including intangible assets subject to amortization, when events and circumstances indicate that the carrying value may not be recoverable. The carrying value of long-lived assets is considered impaired when the estimated undiscounted cash flows from such assets are less than their carrying value. In that event, we recognize a loss equal to the amount by which the carrying value exceeds the fair value. Fair value is determined primarily by using a discounted cash flow methodology that requires considerable judgment and assumptions. Our estimate of net future cash flows is based on historical experience and assumptions of future trends, which may be different from actual results. We periodically review the appropriateness of the estimated useful lives of our long-lived assets.

We test long-lived assets for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, our long-lived asset impairment test is at a significantly lower level than the level at which we test goodwill for impairment. In markets where we do not produce downstream products (e.g., asphalt mix and ready-mixed concrete), the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market. Conversely, in vertically integrated markets, the cash flows of our downstream and upstream businesses are not largely independently identifiable as the selling price of the upstream products (aggregates) determines the profitability of the downstream business.

As of December 31, 2018, net property, plant & equipment represents 43% of total assets, while net other intangible assets represents 11% of total assets. During 2018 and 2017, we recorded no losses on impairment of long-lived assets. During 2016, we recorded a $10,506,000 loss on impairment of long-lived assets resulting from the termination of a nonstrategic aggregates lease and the write off of nonrecoverable project costs related to two Aggregates segment capital projects that we no longer intend to complete.

For additional information about long-lived assets and intangible assets see Notes 4 and 18.

STRIPPING COSTS

In the mining industry, the costs of removing overburden and waste materials to access mineral deposits are referred to as stripping costs.

Stripping costs incurred during the production phase are considered costs of extracted minerals under our inventory costing system, inventoried, and recognized in cost of sales in the same period as the revenue from the sale of the inventory. The production stage is deemed to begin when the activities, including removal of overburden and waste material that may contain incidental saleable material, required to access the saleable product are complete. Stripping costs considered as production costs and included in the costs of inventory produced were $78,911,000 in 2018, $65,944,000 in 2017 and $55,987,000 in 2016.

Conversely, stripping costs incurred during the development stage of a mine (pre-production stripping) are excluded from our inventory cost. Pre-production stripping costs are capitalized and reported within other noncurrent assets in our accompanying Consolidated Balance Sheets. Capitalized pre-production stripping costs are expensed over the productive life of the mine using the unit-of-sales method. Pre-production stripping costs included in other noncurrent assets were $95,800,000 as of December 31, 2018 and $81,241,000 as of December 31, 2017. This year-over-year increase resulted primarily from the removal of overburden at a greenfield site in California.

RECLAMATION COSTS

Reclamation costs resulting from normal use of long-lived assets are recognized over the period the asset is in use when there is a legal obligation to incur these costs upon retirement of the assets. Additionally, reclamation costs resulting from normal use under a mineral lease are recognized over the lease term when there is a legal obligation to incur these costs upon expiration of the lease. The obligation, which cannot be reduced by estimated offsetting cash flows, is recorded at fair value as a liability at the obligating event date and is accreted through charges to operating expenses. This fair value is also capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. If the obligation is settled for other than the carrying amount of the liability, a gain or loss is recognized on settlement.

To determine the fair value of the obligation, we estimate the cost (including a reasonable profit margin) for a third party to perform the legally required reclamation tasks. This cost is then increased for both future estimated inflation and an estimated market risk premium related to the estimated years to settlement. Once calculated, this cost is discounted to fair value using present value techniques with a credit-adjusted, risk-free rate commensurate with the estimated years to settlement.

In estimating the settlement date, we evaluate the current facts and conditions to determine the most likely settlement date. If this evaluation identifies alternative estimated settlement dates, we use a weighted-average settlement date considering the probabilities of each alternative.

We review reclamation obligations at least annually for a revision to the cost or a change in the estimated settlement date. Additionally, reclamation obligations are reviewed in the period that a triggering event occurs that would result in either a revision to the cost or a change in the estimated settlement date. Examples of events that would trigger a change in the cost include a new reclamation law or amendment of an existing mineral lease. Examples of events that would trigger a change in the estimated settlement date include the acquisition of additional reserves or the closure of a facility.

The carrying value of these obligations was $225,726,000 as of December 31, 2018 and $218,117,000 as of December 31, 2017. For additional information about reclamation obligations (referred to in our financial statements as asset retirement obligations) see Note 17.

ENVIRONMENTAL COMPLIANCE

Our environmental compliance costs are undiscounted and include the cost of ongoing monitoring programs, the cost of remediation efforts and other similar costs. We accrue costs for environmental assessment and remediation efforts when we determine that a liability is probable and we can reasonably estimate the cost. At the early stages of a remediation effort, environmental remediation liabilities are not easily quantified due to the uncertainties of various factors. The range of an estimated remediation liability is defined and redefined as events in the remediation effort occur, but generally liabilities are recognized no later than the completion of the remedial feasibility study.

When we can estimate a range of probable loss, we accrue the most likely amount. If no amount in the range of probable loss is considered most likely, the minimum loss in the range is accrued. As of December 31, 2018, the spread between the amount accrued and the maximum loss in the range for all sites for which a range can be reasonably estimated was $3,105,000 —  this amount does not represent our maximum exposure to loss for all environmental remediation obligations as it excludes those sites for which a range of loss cannot be reasonably estimated at this time. Accrual amounts may be based on technical cost estimations or the professional judgment of experienced environmental managers. Our Safety, Health and Environmental Affairs Management Committee routinely reviews cost estimates and key assumptions in response to new information, such as the kinds and quantities of hazardous substances, available technologies and changes to the parties participating in the remediation efforts. However, a number of factors, including adverse agency rulings and encountering unanticipated conditions as remediation efforts progress, may cause actual results to differ materially from accrued costs.

For additional information about environmental compliance costs see Note 8.

CLAIMS AND LITIGATION INCLUDING SELF-INSURANCE

We are involved with claims and litigation, including items covered under our self-insurance program. We are self-insured for losses related to workers' compensation up to $2,000,000 per occurrence and automotive and general/product liability up to $3,000,000 per occurrence. We have excess coverage on a per occurrence basis beyond these retention levels.

Under our self-insurance program, we aggregate certain claims and litigation costs that are reasonably predictable based on our historical loss experience and accrue losses, including future legal defense costs, based on actuarial studies. Certain claims and litigation costs, due to their unique nature, are not included in our actuarial studies. We use both internal and outside legal counsel to assess the probability of loss, and establish an accrual when the claims and litigation represent a probable loss and the cost can be reasonably estimated. For matters not included in our actuarial studies, legal defense costs are accrued when incurred. The following table outlines our self-insurance program at December 31:





 

 

 

 

 



 

 

 

 

 

dollars in thousands

2018

 

 

2017

 

Self-insurance Program

 

 

 

 

 

Self-insured liabilities (undiscounted)

$        68,912 

 

 

$       58,216 

 

Insured liabilities (undiscounted)

4,377 

 

 

7,892 

 

Discount rate

2.93% 

 

 

1.93% 

 

Amounts Recognized in Consolidated

 

 

 

 

 

  Balance Sheets

 

 

 

 

 

Other accounts and notes receivable

$             631 

 

 

$         6,158 

 

Investments and long-term receivables

3,932 

 

 

7,246 

 

Other current liabilities

(18,466)

 

 

(20,036)

 

Other noncurrent liabilities

(48,049)

 

 

(41,792)

 

Net liabilities (discounted)

$       (61,952)

 

 

$     (48,424)

 



Estimated payments (undiscounted and excluding the impact of related receivables) under our self-insurance program for the five years subsequent to December 31, 2018 are as follows:





 

 



 

 

in thousands

 

 

Estimated Payments under Self-insurance Program

 

 

2019

$        20,529 

 

2020

15,232 

 

2021

11,615 

 

2022

6,360 

 

2023

3,665 

 



Significant judgment is used in determining the timing and amount of the accruals for probable losses, and the actual liability could differ materially from the accrued amounts.

SHARE-BASED COMPENSATION

All of our share-based compensation awards are classified as equity awards. We measure share-based compensation awards using fair-value-based measurement methods. This results in the recognition of compensation expense for all share-based compensation awards based on their fair value as of the grant date. Compensation cost is recognized over the requisite service period. Forfeitures are recognized as they occur.

A summary of the estimated future compensation cost (unrecognized compensation expense) as of December 31, 2018 related to share-based awards granted to employees under our long-term incentive plans is presented below:





 

 

 

 

 

 



 

 

 

 

 

 



 

Unrecognized

 

 

Expected

 



 

Compensation

 

 

Weighted-average

 

dollars in thousands

Expense

 

 

Recognition (Years)

 

Share-based Compensation

 

 

 

 

 

SOSARs 1

$          3,376 

 

 

1.4 

 

Performance shares

14,250 

 

 

1.6 

 

Restricted shares

6,098 

 

 

1.7 

 

Total/weighted-average

$        23,724 

 

 

1.6 

 





 

1

Stock-Only Stock Appreciation Rights (SOSARs)



Pretax compensation expense related to our employee share-based compensation awards and related income tax benefits for the years ended December 31 are summarized below:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Employee Share-based Compensation Awards

 

 

 

 

 

 

 

 

Pretax compensation expense

$        23,250 

 

 

$       24,367 

 

 

$       17,823 

 

Income tax benefits

5,940 

 

 

6,226 

 

 

6,925 

 



We receive an income tax deduction for share-based compensation equal to the excess of the market value of our common stock on the date of exercise or issuance over the exercise price. Tax benefits resulting from tax deductions in excess of the compensation cost recognized (excess tax benefits) are reflected as discrete income tax benefits in the period of exercise or issuance. Net excess tax benefits were recorded as reductions to our income tax expense and reflected as operating cash flows, as follows (combined federal and state): 2018$20,137,000; 2017 $22,962,000; and 2016 $24,847,000.

For additional information about share-based compensation, see Note 11 under the caption Share-based Compensation Plans.

PENSION AND OTHER POSTRETIREMENT BENEFITS

Accounting for pension and other postretirement benefits requires that we use assumptions for the valuation of projected benefit obligations (PBO) and the performance of plan assets. Each year, we review our assumptions for discount rates (used for PBO, service cost, and interest cost calculations) and the expected return on plan assets. Due to plan changes made in 2012 and 2013, annual pay increases and the per capita cost of healthcare benefits do not materially impact plan obligations.

§

DISCOUNT RATES — We use a high-quality bond full yield curve approach (specific spot rates for each annual expected cash flow) to establish the discount rates at each measurement date. See Note 10 for the discount rates used for PBO, service cost, and interest cost calculations.

§

EXPECTED RETURN ON PLAN ASSETS — Our expected return on plan assets is: (1) a long-term view based on our current asset allocation, and (2) a judgment informed by consultation with our retirement plans’ consultant and our pension plans’ actuary. For the year ended December 31, 2018, the expected return on plan assets remained at 7.0%.

Accounting standards provide for the delayed recognition of differences between actual results and expected or estimated results. This delayed recognition of actual results allows for a smoothed recognition in earnings of changes in benefit obligations and asset performance. The differences between actual results and expected or estimated results are recognized in full in other comprehensive income. Amounts recognized in other comprehensive income are reclassified to earnings in a systematic manner over the average remaining service period of participants for our active plans or the average remaining lifetime of participants for our inactive plans.

For additional information about pension and other postretirement benefits see Note 10.

INCOME TAXES

We file federal, state and foreign income tax returns and account for the current and deferred tax effects of such returns using the asset and liability method. 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.

Significant judgments and estimates are required in determining our deferred tax assets and liabilities. These estimates are updated throughout the year to consider income tax return filings, our geographic mix of earnings, legislative changes and other relevant items. We are required to account for the effects of changes in income tax rates on deferred tax balances in the period in which the legislation is enacted.

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. A summary of our deferred tax assets is included in Note 9.

U.S. income taxes are not provided on foreign earnings when such earnings are indefinitely reinvested offshore. At least annually, we evaluate our investment strategies for each foreign tax jurisdiction in which we operate to determine whether foreign earnings will be indefinitely reinvested offshore.

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 position. 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.

Generally, we are not subject to significant changes in income taxes by any taxing jurisdiction for the years before 2015. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, we believe our liability for unrecognized tax benefits is appropriate.

We consider a tax position to be resolved at the earlier of the issue being “effectively settled,” settlement of an examination, or the expiration of the statute of limitations. Upon resolution of a tax position, any liability for unrecognized tax benefits will be released.

Our liability for unrecognized tax benefits is generally presented as noncurrent. However, if we anticipate paying cash within one year to settle an uncertain tax position, the liability is presented as current. We classify interest and penalties associated with our liability for unrecognized tax benefits as income tax expense.

Our largest permanent item in computing both our taxable income and effective tax rate is the deduction allowed for statutory depletion. The impact of statutory depletion on the effective tax rate is presented in Note 9. The deduction for statutory depletion does not necessarily change proportionately to changes in pretax earnings.

COMPREHENSIVE INCOME

We report comprehensive income in our Consolidated Statements of Comprehensive Income and Consolidated Statements of Equity. Comprehensive income comprises two subsets: net earnings and other comprehensive income (OCI). OCI includes fair value adjustments to cash flow hedges, as well as actuarial gains or losses and prior service costs related to pension and postretirement benefit plans.

For additional information about comprehensive income see Note 14.

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:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Weighted-average common shares outstanding

132,393 

 

 

132,513 

 

 

133,205 

 

Dilutive effect of

 

 

 

 

 

 

 

 

   SOSARs

963 

 

 

1,295 

 

 

1,339 

 

   Other stock compensation plans

570 

 

 

1,070 

 

 

1,246 

 

Weighted-average common shares outstanding,

 

 

 

 

 

 

 

 

  assuming dilution

133,926 

 

 

134,878 

 

 

135,790 

 



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

Antidilutive common stock equivalents are not included in our earnings per share calculations. The number of antidilutive common stock equivalents for which the exercise price exceeds the weighted-average market price for the years ended December 31 is as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Antidilutive common stock equivalents

162 

 

 

79 

 

 

97 

 

RECLASSIFICATIONS

Certain items previously reported in specific financial statement captions have been reclassified to conform with the 2018 presentation. Refer below to Accounting Standards Recently Adopted (Presentation of Benefit Plan Costs) for the impact of reclassifying certain benefit costs from operating income to nonoperating income in our Statements of Comprehensive Income.

NEW ACCOUNTING STANDARDS

ACCOUNTING STANDARDS RECENTLY ADOPTED

RELEASING STRANDED TAX EFFECTS  During the fourth quarter of 2018, we adopted Accounting Standards Update (ASU) 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” effective as of the beginning of the year. This ASU allowed us to reclassify $29,629,000 of stranded tax effects due to remeasuring certain deferred tax assets as a result of applying the TCJA enacted in December 2017 from accumulated other comprehensive income (AOCI) to retained earnings.

PRESENTATION OF BENEFIT PLAN COSTS  During the first quarter of 2018, we adopted ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” on a retrospective basis as required. This ASU changed the presentation of the net benefit cost in the income statement and limits benefit costs eligible for inventory capitalization to the service cost component (benefit costs capitalized in inventory are immaterial to our financial statements). We continue to present the service cost component of net benefit cost in cost of revenues and selling, administrative and general expense consistent with employee compensation costs. The other components of net benefit cost (credit) are now included in other nonoperating income. These other components were a net credit for all periods presented resulting in a decrease in operating earnings and an increase in other nonoperating income, as follows: 2018 — $16,539,000; 2017 — $8,102,000 and 2016 — $13,715,000.

CLASSIFICATION AND MEASUREMENT OF FINANCIAL INSTRUMENTS During the first quarter of 2018, we adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU 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. The adoption of this standard had no material impact on our consolidated financial statements.

REVENUE RECOGNITION During the first quarter of 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers” (ASC Topic 606). Topic 606 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. Additionally, it provides a more robust framework for addressing revenue issues and expands required revenue recognition disclosures. We adopted this standard using the cumulative effect transition approach; however, because there was no change in the identified performance obligations under Topic 606 compared with the identification of deliverables and separate units of account under previous guidance (Topic 605), the amount and timing of our revenues remain materially unchanged. Our expanded revenue disclosure is presented in Note 2.

ACCOUNTING STANDARDS PENDING ADOPTION

DEFINED BENEFIT PLANS  In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-14, “Changes to the Disclosure Requirements for Defined Benefit Plans,” which adds, removes and clarifies the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and is to be applied retrospectively. Early adoption is permitted. While we are still evaluating the impact of ASU 2018-14 and whether we will early adopt, it will not impact our consolidated financial statements as it only affects disclosure. Thus, the adoption of this standard will have a minor impact on the notes to our consolidated financial statements, specifically, our benefit plans note.

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. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

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 certain exclusions, including mineral 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.

We will adopt this standard in the first quarter of 2019 utilizing the comparatives transition option under ASC 840. Under this transition approach, we will not restate our comparative periods in the period of adoption. We currently expect to recognize operating lease liabilities of approximately $430,000,000, with corresponding right-of-use assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases.

We expect to elect the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification, and initial direct costs. Also, we expect to elect the use of the practical expedient pertaining to land easements. We do not expect to elect the use-of-hindsight practical expedient. The new standard also provides practical expedients for an entity’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for all equipment leases. This means, for those leases that qualify, we will not recognize right-of-use assets or lease liabilities, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. We also currently expect to elect the practical expedient to not separate lease and non-lease components for all of our leases.

 

 

v3.10.0.1
REVENUES
12 Months Ended
Dec. 31, 2018
REVENUES [Abstract]  
REVENUES

NOTE 2: REVENUES

There have been no significant changes to the amount or timing of our revenue recognition as a result of our adoption of ASU 2014-09, “Revenue from Contracts with Customers” (Accounting Standards Codification Topic 606). Revenues are measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales and other taxes we collect are excluded from revenues. Costs to obtain and fulfill contracts (primarily asphalt construction paving contracts) are immaterial and are expensed as incurred when the expected amortization period is one year or less.

Total revenues are primarily derived from our product sales of aggregates (crushed stone, sand and gravel, sand and other aggregates), asphalt mix and ready-mixed concrete, and include freight & delivery costs that we pass along to our customers to deliver these products. We also generate service revenues from our asphalt construction paving business and service revenues related to our aggregates business, such as landfill tipping fees. Our total service revenues were as follows: 2018 — $198,897,000, 2017 — $113,422,000 and 2016 — $42,904,000. The increased service revenues resulted from acquisitions that included asphalt construction paving businesses (2018 – Alabama and Texas, and 2017 – Tennessee, See Note 19).

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

Our segment total revenues by geographic market for the years ended December 31, 2018, 2017 and 2016 are disaggregated as follows:



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the Year Ended December 31, 2018

 

in thousands

Aggregates

 

 

Asphalt

 

 

Concrete

 

 

Calcium

 

 

Total

 

Total Revenues by Geographic Market 1

 

 

 

 

 

 

 

 

 

 

 

 

 

East

$  1,109,489 

 

 

$     156,591 

 

 

$     257,250 

 

 

$                0 

 

 

$    1,523,330 

 

Gulf Coast

1,821,853 

 

 

131,745 

 

 

71,739 

 

 

8,110 

 

 

2,033,447 

 

West

582,307 

 

 

444,846 

 

 

73,010 

 

 

 

 

1,100,163 

 

Segment sales

$  3,513,649 

 

 

$     733,182 

 

 

$     401,999 

 

 

$         8,110 

 

 

$    4,656,940 

 

Intersegment sales

(274,071)

 

 

 

 

 

 

 

 

(274,071)

 

Total revenues

$  3,239,578 

 

 

$     733,182 

 

 

$     401,999 

 

 

$         8,110 

 

 

$    4,382,869 

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the Year Ended December 31, 2017

 

in thousands

Aggregates

 

 

Asphalt

 

 

Concrete

 

 

Calcium

 

 

Total

 

Total Revenues by Geographic Market 1

 

 

 

 

 

 

 

 

 

 

 

 

 

East

$  1,045,682 

 

 

$     112,673 

 

 

$     244,568 

 

 

$                0 

 

 

$    1,402,923 

 

Gulf Coast

1,512,505 

 

 

80,311 

 

 

102,716 

 

 

7,740 

 

 

1,703,272 

 

West

537,907 

 

 

429,090 

 

 

70,461 

 

 

 

 

1,037,458 

 

Segment sales

$  3,096,094 

 

 

$     622,074 

 

 

$     417,745 

 

 

$         7,740 

 

 

$    4,143,653 

 

Intersegment sales

(253,357)

 

 

 

 

 

 

 

 

(253,357)

 

Total revenues

$  2,842,737 

 

 

$     622,074 

 

 

$     417,745 

 

 

$         7,740 

 

 

$    3,890,296 

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the Year Ended December 31, 2016

 

in thousands

Aggregates

 

 

Asphalt

 

 

Concrete

 

 

Calcium

 

 

Total

 

Total Revenues by Geographic Market 1

 

 

 

 

 

 

 

 

 

 

 

 

 

East

$     994,559 

 

 

$                0 

 

 

$     203,734 

 

 

$                0 

 

 

$    1,198,293 

 

Gulf Coast

1,497,762 

 

 

102,035 

 

 

99,253 

 

 

8,860 

 

 

1,707,910 

 

West

469,514 

 

 

410,275 

 

 

27,138 

 

 

 

 

906,927 

 

Segment sales

$  2,961,835 

 

 

$     512,310 

 

 

$     330,125 

 

 

$         8,860 

 

 

$    3,813,130 

 

Intersegment sales

(220,463)

 

 

 

 

 

 

 

 

(220,463)

 

Total revenues

$  2,741,372 

 

 

$     512,310 

 

 

$     330,125 

 

 

$         8,860 

 

 

$    3,592,667 

 





 

1

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



 

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

Gulf Coast market — Alabama, Florida, Georgia, Louisiana, Mexico, Mississippi, Oklahoma, South Carolina, Texas and the Bahamas

West market — Arizona, California and New Mexico



PRODUCT AND SERVICE REVENUES

Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs at a point in time when our aggregates, asphalt mix and ready-mixed concrete are shipped/delivered and control passes to the customer. Revenue for our products and services is recorded at the fixed invoice amount and is due by the 15th day of the following monthwe do not offer discounts for early payment. Freight & delivery generally represents pass-through transportation we incur (including our administrative costs) and pay to third-party carriers to deliver our products to customers and are accounted for as a fulfillment activity. Likewise, the cost related to freight & delivery are included in cost of revenues.

Freight & delivery revenues are as follows:



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Freight & Delivery Revenues

 

 

 

 

 

 

 

 

Total revenues

$  4,382,869 

 

 

$  3,890,296 

 

 

$  3,592,667 

 

   Freight & delivery revenues 1

(641,815)

 

 

(528,916)

 

 

(535,929)

 

Total revenues excluding freight & delivery

$  3,741,054 

 

 

$  3,361,380 

 

 

$  3,056,738 

 





 

1

Includes freight & delivery to remote distribution sites.

CONSTRUCTION PAVING REVENUES

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

VOLUMETRIC PRODUCTION PAYMENT REVENUES

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

§

relate to eight quarries in Georgia and South Carolina

§

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

§

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

§

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

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

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

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



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Deferred Revenue

 

 

 

 

 

 

 

 

Balance at beginning of year

$      199,556 

 

 

$     206,468 

 

 

$     214,060 

 

  Revenue recognized from deferred revenue

(6,773)

 

 

(6,912)

 

 

(7,592)

 

Balance at end of year

$      192,783 

 

 

$     199,556 

 

 

$     206,468 

 



Based on expected sales from the specified quarries, we expect to recognize $7,500,000 of VPP deferred revenue as income in 2019 (reflected in other current liabilities in our December 31, 2018 Consolidated Balance Sheet).

 

 

v3.10.0.1
INVENTORIES
12 Months Ended
Dec. 31, 2018
INVENTORIES [Abstract]  
INVENTORIES

NOTE 3: INVENTORIES

Inventories at December 31 are as follows:





 

 

 

 

 

 

 



 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

Inventories

 

 

 

 

 

Finished products  1

$      372,604 

 

 

$     327,711 

 

Raw materials

27,942 

 

 

27,152 

 

Products in process

3,064 

 

 

1,827 

 

Operating supplies and other

25,720 

 

 

27,648 

 

Total

$      429,330 

 

 

$     384,338 

 





 

1

Includes inventories encumbered by volumetric production payments (see Note 2), as follows: December 31, 2018 — $3,230 thousand and December 31, 2017 — $2,808 thousand.



In addition to the inventory balances presented above, as of December 31, 2018 and December 31, 2017, we have $9,980,000 and $11,810,000, respectively, of inventory classified as long-term assets (other noncurrent assets) as we do not expect to sell the inventory within one year of their respective balance sheet dates. Inventories valued under the LIFO method total $308,257,000 at December 31, 2018 and $252,808,000 at December 31, 2017. During 2018, 2017 and 2016, inventory reductions resulted in liquidations of LIFO inventory layers carried at lower costs prevailing in prior years as compared to current-year costs. The effect of the LIFO liquidation on 2018 results was to increase cost of revenues by $132,000 and decrease net earnings by $99,000. The effect of the LIFO liquidation on 2017 results was to decrease cost of revenues by $2,714,000 and increase net earnings by $1,662,000. The effect of the LIFO liquidation on 2016 results was to decrease cost of revenues by $3,956,000 and increase net earnings by $2,419,000.  

Estimated current cost exceeded LIFO cost at December 31, 2018 and 2017 by $175,844,000 and $168,829,000, respectively. We use the LIFO method of valuation for most of our inventories as it results in a better matching of costs with revenues. In periods of increasing costs, LIFO generally results in higher cost of revenues than under FIFO. In periods of decreasing costs, the results are generally the opposite. We provide supplemental income disclosures to facilitate comparisons with companies not on LIFO. The supplemental income calculation is derived by tax-affecting the change in the LIFO reserve for the periods presented. If all inventories valued at LIFO cost had been valued under first-in, first-out (FIFO) method, the approximate effect on net earnings would have been an increase of $5,223,000 in 2018, an increase of $8,092,000 in 2017 and a decrease of $(8,338,000) in 2016.

 

 

v3.10.0.1
PROPERTY, PLANT & EQUIPMENT
12 Months Ended
Dec. 31, 2018
PROPERTY, PLANT & EQUIPMENT [Abstract]  
PROPERTY, PLANT & EQUIPMENT

NOTE 4: PROPERTY, PLANT & EQUIPMENT

Balances of major classes of assets and allowances for depreciation, depletion and amortization at December 31 are as follows:





 

 

 

 

 

 

 



 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

Property, Plant & Equipment

 

 

 

 

 

Land and land improvements 1

$    2,823,092 

 

 

$  2,742,285 

 

Buildings

139,948 

 

 

135,655 

 

Machinery and equipment

5,106,918 

 

 

4,740,212 

 

Leasehold improvements

18,217 

 

 

17,354 

 

Deferred asset retirement costs

183,324 

 

 

172,631 

 

Construction in progress

186,120 

 

 

161,175 

 

Total, gross

$    8,457,619 

 

 

$  7,969,312 

 

Less allowances for depreciation, depletion

 

 

 

 

 

  and amortization

4,220,312 

 

 

4,050,381 

 

Total, net

$    4,237,307 

 

 

$  3,918,931 

 





 

1

Includes depletable land, as follows: December 31, 2018 — $1,626,899 thousand and December 31, 2017 — $1,606,303 thousand.



Capitalized interest costs with respect to qualifying construction projects and total interest costs incurred before recognition of the capitalized amount for the years ended December 31 are as follows:





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Capitalized interest cost

$          3,674 

 

 

$        5,177 

 

 

$        7,468 

 

Total interest cost incurred before recognition

 

 

 

 

 

 

 

 

  of the capitalized amount

141,651 

 

 

300,699 

 

 

141,544 

 

 

 

 

v3.10.0.1
DERIVATIVE INSTRUMENTS
12 Months Ended
Dec. 31, 2018
DERIVATIVE INSTRUMENTS [Abstract]  
DERIVATIVE INSTRUMENTS

NOTE 5: 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 use derivative instruments for trading or other speculative purposes.

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

This amortization was reflected in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31 as follows:





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Location on Statement

 

2018

 

 

2017

 

 

2016

 

Interest Rate Hedges

 

 

 

 

 

 

 

 

 

 

Loss reclassified from AOCI

 

 

 

 

 

 

 

 

 

 

  (effective portion)

Interest expense

 

$          (306)

 

 

$       (3,070)

 

 

$       (2,008)

 





The 2017 loss reclassified from AOCI includes the acceleration of deferred losses in the amount of $1,405,000 referable to the debt purchase as described in Note 6.

For the 12-month period ending December 31, 2019, we estimate that $308,000 of the $11,180,000 pretax loss in AOCI will be reclassified to interest expense.

 

 

v3.10.0.1
DEBT
12 Months Ended
Dec. 31, 2018
DEBT [Abstract]  
DEBT

NOTE 6: DEBT

Debt at December 31 is detailed as follows:



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



Effective

 

 

 

 

 

 

in thousands

Interest Rates

 

2018

 

 

2017

 

Short-term Debt

 

 

 

 

 

 

 

Bank line of credit expires 2021 1, 2

1.25% 

 

$        133,000 

 

 

$                   0 

 

Total short-term debt

 

 

$        133,000 

 

 

$                   0 

 

Long-term Debt

 

 

 

 

 

 

 

Bank line of credit expires 2021 1

 

 

$                   0 

 

 

$        250,000 

 

Term loan due 2018 3

 

 

 

 

350,000 

 

Floating-rate notes due 2020

3.50% 

 

250,000 

 

 

250,000 

 

Floating-rate notes due 2021

3.71% 

 

500,000 

 

 

 

7.50% notes due 2021

 

 

 

 

35,111 

 

8.85% notes due 2021

8.88% 

 

6,000 

 

 

6,000 

 

Term loan due 2021

 

 

 

 

250,000 

 

4.50% notes due 2025

4.65% 

 

400,000 

 

 

400,000 

 

3.90% notes due 2027

4.00% 

 

400,000 

 

 

400,000 

 

7.15% notes due 2037

8.05% 

 

129,239 

 

 

240,188 

 

4.50% notes due 2047

4.59% 

 

700,000 

 

 

700,000 

 

4.70% notes due 2048

5.42% 

 

460,949 

 

 

 

Other notes

6.46% 

 

208 

 

 

230 

 

Total long-term debt - face value

 

 

$     2,846,396 

 

 

$     2,881,529 

 

Unamortized discounts and debt issuance costs

 

 

(67,016)

 

 

(26,664)

 

Total long-term debt - book value

 

 

$     2,779,380 

 

 

$     2,854,865 

 

Less current maturities

 

 

23 

 

 

41,383 

 

Total long-term debt - reported value

 

 

$     2,779,357 

 

 

$     2,813,482 

 

Estimated fair value of long-term debt

 

 

$     2,695,802 

 

 

$     2,983,419 

 









 

1

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 if we have the intent and ability to extend payment beyond twelve months.

2

The effective interest rate reflects the margin above LIBOR for LIBOR-based borrowings. We also paid upfront fees that are amortized to interest expense and pay fees for unused borrowing capacity and standby letters of credit.

3

This short-term loan was refinanced on a long-term basis in February 2018 as discussed below. Thus, it was classified as long-term debt as of December 31, 2017.



Discounts and debt issuance costs are amortized using the effective interest method over the terms of the respective notes resulting in $5,161,000 and $9,808,000, respectively, of net interest expense for these items for 2018 and 2017.

LINE OF CREDIT

Our unsecured $750,000,000 line of credit matures December 2021 and contains affirmative, negative and financial covenants customary for an unsecured investment-grade facility. The primary negative covenant limits our ability to incur secured debt. The financial covenants are: (1) a maximum ratio of debt to EBITDA of 3.5:1 (upon certain acquisitions, the maximum ratio can be 3.75:1 for three quarters), and (2) a minimum ratio of EBITDA to net cash interest expense of 3.0:1. As of December 31, 2018, 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 1.75%, or SunTrust Bank’s base rate (generally, its prime rate) plus a credit margin ranging from 0.00% to 0.75%. The credit margin for both LIBOR and base rate borrowings is determined by our credit ratings. Standby letters of credit, which are issued under the line of credit and reduce availability, are charged a fee equal to the credit margin for LIBOR borrowings plus 0.175%. We also pay a commitment fee on the daily average unused amount of the line of credit that ranges from 0.10% to 0.25% determined by our credit ratings. As of December 31, 2018, 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 December 31, 2018, our available borrowing capacity was $572,021,000. Utilization of the borrowing capacity was as follows:

§

$133,000,000 was borrowed

§

$44,979,000 was used to provide support for outstanding standby letters of credit

TERM DEBT

All of our $2,846,396,000 (face value) of term debt is unsecured. $2,846,188,000 of such debt is governed by three essentially identical indentures that contain customary investment-grade type covenants. The primary covenant in all three indentures limits the amount of secured debt we may incur without ratably securing such debt. As of December 31, 2018, we were in compliance with all term debt covenants.

In December 2018, we completed an exchange offer in which all of the $460,949,000 of 4.70% senior unregistered notes due 2048 (issued in February 2018 and March 2018 as described below) were exchanged for new registered notes of like principal amount and like denomination as the unregistered notes, with substantially identical terms. We did not receive any proceeds from the issuance of the new notes.

In March 2018, we early retired via exchange offer $110,949,000 of the $240,188,000 7.15% senior notes due 2037 for: (1) a like amount of notes due 2048 (these notes are a further issuance of, and form a single series with, the $350,000,000 of 4.70% senior notes due 2048 issued in February 2018 as described below, and (2) $38,164,000 of cash. The cash payment primarily reflects the trading price of the retired notes relative to par and will be amortized to interest expense over the term of the notes due 2048. We recognized transaction costs of $1,314,000 with this early retirement.

In February 2018, we issued $350,000,000 of 4.70% senior notes due 2048 (these notes now total $460,949,000 including the notes issued in March as described above) and $500,000,000 of floating-rate senior notes due 2021. Total proceeds of $846,029,000 (net of discounts, transaction costs and an interest rate derivative settlement gain), together with cash on hand, were used to retire/repay without penalty or premium: (1) the $350,000,000 term loan due 2018, (2) the $250,000,000 term loan due 2021, and (3) the $250,000,000 bank line of credit borrowings. We recognized noncash expense of $203,000 with the acceleration of unamortized deferred transaction costs.

In January 2018, we early retired via redemption the remaining $35,111,000 of the 7.50% senior notes due 2021 at a cost of $40,719,000 including a premium of $5,608,000. Additionally, we recognized noncash expense of $263,000 with the acceleration of unamortized deferred transaction costs.

As a result of the first quarter 2018 early debt retirements described above, we recognized premiums of $5,608,000, transaction costs of $1,314,000 and noncash expense (acceleration of unamortized deferred transaction costs) of $466,000. The combined charge of $7,388,000 was a component of interest expense for the year ended December 31, 2018.

In December 2017, we early retired via tender offer $564,889,000 of the $600,000,000 7.50% senior notes due 2021 at a cost of $662,613,000 including a premium of $96,167,000 and transaction costs of $1,558,000. Additionally, we recognized noncash expense of $4,228,000 with the acceleration of unamortized deferred transaction costs.

Also in December 2017, we entered into a 6-month $350,000,000 unsecured term loan with one of the banks that provides our line of credit. Proceeds were used for general corporate purposes. This term loan was prepaid, as described above, in February 2018 with the proceeds of the 4.70% senior notes due 2048.

In July 2017, we early retired via redemption: (1) the $272,512,000 7.00% senior notes due 2018 and (2) the $250,000,000 10.375% senior notes due 2018 (neither of which now appear in the table above)at a combined cost of $565,560,000 including a premium of $43,020,000 and transaction costs of $28,000. Additionally, we recognized noncash expense of $3,029,000 with the acceleration of unamortized deferred discounts, transaction costs and interest rate derivative settlement losses. Such redemptions were partially funded with the proceeds of the senior notes issued in June 2017 as described below.

In June 2017, we issued $1,000,000,000 of debt composed of three issuances as follows: (1) $700,000,000 of 4.50% senior notes due 2047, (2) $50,000,000 of 3.90% senior notes due 2027 (these notes are a further issuance of, and form a single series with, the 3.90% notes issued in March 2017), and (3) $250,000,000 of floating-rate senior notes due 2020. Total proceeds of $989,512,000 (net of discounts/premiums and transaction costs) were used to partially finance an acquisition and to early retire the notes due in 2018 as described above.

In June 2017, we drew the full $250,000,000 on the unsecured delayed draw term loan due 2021. These funds were used to repay the $235,000,000 line of credit borrowings and for general corporate purposes. This term loan was repaid, as described above, in February 2018 with proceeds of the floating-rate senior notes due 2021.

In March 2017, we issued $350,000,000 of 3.90% senior notes due 2027. Proceeds of $345,450,000 (net of discounts and transaction costs) were used for general corporate purposes. This series of notes now totals $400,000,000 including the additional $50,000,000 issued in June as described above.

As a result of the 2017 early debt retirements described above, we recognized premiums of $139,187,000, transaction costs of $1,586,000 and noncash expense (acceleration of unamortized deferred transaction costs) of $7,257,000. The combined charge of $148,030,000 was a component of interest expense for the year ended December 31, 2017.

The total scheduled (principal and interest) debt payments, excluding the line of credit, for the five years subsequent to December 31, 2018 are as follows:





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

Total

 

 

Principal

 

 

Interest

 

Scheduled Debt Payments (excluding the line of credit)

 

 

 

 

 

 

 

 

2019

$      121,629 

 

 

$             23 

 

 

$    121,606 

 

2020

366,366 

 

 

250,025 

 

 

116,341 

 

2021

606,312 

 

 

506,026 

 

 

100,286 

 

2022

96,041 

 

 

28 

 

 

96,013 

 

2023

96,041 

 

 

30 

 

 

96,011 

 

STANDBY LETTERS OF CREDIT

We provide, in the normal course of business, certain third-party beneficiaries with standby letters of credit to support our obligations to pay or perform according to the requirements of an underlying agreement. Such letters of credit typically have an initial term of one year, typically renew automatically, and can only be modified or canceled with the approval of the beneficiary. All of our standby letters of credit are issued by banks that participate in our $750,000,000 line of credit, and reduce the borrowing capacity thereunder. Our standby letters of credit as of December 31, 2018 are summarized by purpose in the table below:





 

 

 

 

 



 

 

 

 

 

in thousands

 

 

Standby Letters of Credit

 

 

Risk management insurance

$       38,111 

 

Reclamation/restoration requirements

6,868 

 

Total

$       44,979 

 

 

 

v3.10.0.1
OPERATING LEASES
12 Months Ended
Dec. 31, 2018
OPERATING LEASES [Abstract]  
OPERATING LEASES

NOTE 7: OPERATING LEASES

Rental expense from continuing operations under nonmineral operating leases for the years ended December 31, exclusive of rental payments made under leases of one month or less, is summarized as follows:







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Operating Leases

 

 

 

 

 

 

 

 

Minimum rentals

$        76,443 

 

 

$       59,536 

 

 

$       52,713 

 

Contingent rentals (based principally on usage)

54,572 

 

 

50,822 

 

 

57,278 

 

Total

$      131,015 

 

 

$     110,358 

 

 

$     109,991 

 



Future minimum operating lease payments under all leases with initial or remaining noncancelable lease terms in excess of one year, exclusive of mineral leases (see Note 12), as of December 31, 2018 are payable as follows:





 

 



 

 

in thousands

 

 

Future Minimum Operating Lease Payments

 

 

2019

$        47,979 

 

2020

43,540 

 

2021

35,732 

 

2022

27,463 

 

2023

19,707 

 

Thereafter

195,104 

 

Total

$      369,525 

 



Lease agreements frequently include renewal options and require that we pay for utilities, taxes, insurance and maintenance expense. Options to purchase are also included in some lease agreements.

 

 

v3.10.0.1
ACCRUED ENVIRONMENTAL REMEDIATION COSTS
12 Months Ended
Dec. 31, 2018
ACCRUED ENVIRONMENTAL REMEDIATION COSTS [Abstract]  
ACCRUED ENVIRONMENTAL REMEDIATION COSTS

NOTE 8: ACCRUED ENVIRONMENTAL REMEDIATION COSTS

Our Consolidated Balance Sheets as of December 31 include accrued environmental remediation costs (measured on an undiscounted basis) as follows:





 

 

 

 

 



 

 

 

 

 

in thousands

2018

 

 

2017

 

Accrued Environmental Remediation Costs

 

 

 

 

 

Continuing operations

$        39,745 

 

 

$       21,784 

 

Retained from former Chemicals business

10,685 

 

 

10,704 

 

Total

$        50,430 

 

 

$       32,488 

 



The long-term portion of the accruals noted above is included in other noncurrent liabilities in the accompanying Consolidated Balance Sheets and amounted to $13,597,000 at December 31, 2018 and $12,760,000 at December 31, 2017. The short-term portion of these accruals is included in other current liabilities in the accompanying Consolidated Balance Sheets.

The accrued environmental remediation costs in continuing operations relate primarily to the former Florida Rock, Tarmac, and CalMat facilities acquired in 2007, 2000 and 1999, respectively. The current increase primarily relates to the Hewitt Landfill Matter, a former CalMat facility. The balances noted above for Chemicals relate to retained environmental remediation costs from the 2003 sale of the Performance Chemicals business and the 2005 sale of the Chloralkali business. Refer to Note 12 for additional discussion of contingent environmental matters.

 

 

v3.10.0.1
INCOME TAXES
12 Months Ended
Dec. 31, 2018
INCOME TAXES [Abstract]  
INCOME TAXES

NOTE 9: INCOME TAXES

The Tax Cuts and Jobs Act (TCJA) was enacted in December 2017. The TCJA, among other changes, (1) reduces the U.S. federal corporate income tax rate from 35% to 21%, (2) allows for the immediate 100% deductibility of certain capital investments, (3) eliminates the alternative minimum tax (though allows for the future use of previously generated alternative minimum tax credits), (4) repeals the domestic production deduction, (5) requires a one-time “transition tax” on earnings of certain foreign subsidiaries that were previously tax deferred, (6) limits the deductibility of interest expense, (7) further limits the deductibility of certain executive compensation and (8) taxes global intangible low taxed income.

The SEC’s Staff Accounting Bulletin (SAB) 118 provided a one-year measurement period from the TCJA enactment date for companies to complete their income tax accounting.

During 2017, we recorded provisional estimates for the following two elements. During 2018 we recorded measurement-period adjustments to finalize these elements as follows:

§

DEEMED REPATRIATION TRANSITION TAX — The TCJA subjected companies to a one-time Deemed Repatriation Transition Tax (Transition Tax) on previously untaxed foreign accumulated earnings. We recorded a provisional Transition Tax obligation of $12,301,000 at December 31, 2017. In the fourth quarter of 2018, we completed our accounting for this element, which resulted in an insignificant amount of additional income tax expense.

§

DEDUCTIBILITY OF EXECUTIVE COMPENSATION — The TCJA eliminated the performance-based compensation exception from the limitation on covered employee remuneration. As a result, we believe that a portion of the performance-based remuneration accounted for in our deferred taxes will no longer be deductible. As such, we included a provisional expense of $1,403,000 at December 31, 2017. In the fourth quarter of 2018, we completed our accounting for this element which resulted in an insignificant amount of additional income tax expense.

Our accounting for the following two elements of the TCJA were recognized solely in 2018 as we were unable to make reasonable estimates of the effects during 2017.

§

OUTSIDE BASIS DIFFERENCE IN FOREIGN SUBSIDIARIES — We have previously considered the outside basis difference in our foreign subsidiaries to be indefinitely reinvested (the vast majority of which related to the undistributed earnings of our foreign subsidiaries). For U.S. federal income tax purposes, the Transition Tax (mentioned above) greatly reduced the outside basis difference in our foreign subsidiaries. After passage of the TCJA, if we choose to repatriate any previously taxed or undistributed foreign earnings, we have determined that the deferred tax impacts would be: (1) no U.S. federal income tax, (2) no foreign withholding tax, and (3) an insignificant amount of state income tax. As a result, we have chosen to remove our indefinite reinvestment assertion on the earnings of our foreign subsidiaries. We continue to assert indefinite reinvestment on any outside basis differences in excess of our previously taxed and undistributed foreign subsidiary earnings that may be subject to tax in the future.

§

GLOBAL INTANGIBLE LOW TAXED INCOME — We do not expect to have significant U.S. inclusions in taxable income related to global intangible low taxed income (GILTI). As such, we have made an accounting policy election to treat taxes due on the future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (period cost method) versus factoring such amounts into our measurement of deferred taxes (deferred method).

During the fourth quarter of 2018, we adopted ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” effective as of the beginning of the year. This ASU allowed us to reclassify $29,629,000 of stranded tax effects due to remeasuring certain deferred tax assets as a result of applying the TCJA enacted in December 2017 from accumulated other comprehensive income (AOCI) to retained earnings.

The components of earnings from continuing operations before income taxes are as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Earnings from Continuing Operations

 

 

 

 

 

 

 

 

  before Income Taxes

 

 

 

 

 

 

 

 

Domestic

$      593,446 

 

 

$     346,668 

 

 

$     513,721 

 

Foreign

29,844 

 

 

14,648 

 

 

33,536 

 

Total

$      623,290 

 

 

$     361,316 

 

 

$     547,257 

 



Income tax expense (benefit) from continuing operations consists of the following:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Income Tax Expense (Benefit) from

 

 

 

 

 

 

 

 

  Continuing Operations

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

Federal

$        21,111 

 

 

$       (7,416)

 

 

$      72,506 

 

State and local

15,127 

 

 

4,661 

 

 

14,774 

 

Foreign

4,278 

 

 

3,109 

 

 

6,974 

 

Total

$        40,516 

 

 

$           354 

 

 

$      94,254 

 

Deferred

 

 

 

 

 

 

 

 

Federal

$        59,216 

 

 

$  (202,184)

 

 

$      37,246 

 

State and local

8,369 

 

 

(30,052)

 

 

(6,647)

 

Foreign

(2,652)

 

 

(193)

 

 

(2)

 

Total

$        64,933 

 

 

$  (232,429)

 

 

$      30,597 

 

Total expense (benefit)

$      105,449 

 

 

$  (232,075)

 

 

$    124,851 

 



Income tax expense (benefit) differs from the amount computed by applying the federal statutory income tax rate to earnings from continuing operations before income taxes. The sources and tax effects of the differences are as follows:





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

2018

 

2017

 

2016

Income tax expense at the federal

 

 

 

 

 

 

 

 

 

 

 

  statutory tax rate

$    130,891 

21.0% 

 

 

$    126,461 

35.0% 

 

 

$    191,540 

35.0% 

 

Expense (Benefit) from

 

 

 

 

 

 

 

 

 

 

 

  Income Tax Differences

 

 

 

 

 

 

 

 

 

 

 

Statutory depletion

(21,733)

-3.5%

 

 

(28,995)

-8.0%

 

 

(32,230)

-5.9%

 

State and local income taxes, net of federal

 

 

 

 

 

 

 

 

 

 

 

  income tax benefit

18,562  3.0% 

 

 

8,115  2.2% 

 

 

10,074  1.9% 

 

Share-based compensation

(16,551)

-2.7%

 

 

(20,740)

-5.7%

 

 

(22,443)

-4.1%

 

Uncertain tax positions

(6,402)

-1.0%

 

 

1,062  0.3% 

 

 

1,272  0.2% 

 

Revaluation - deferred tax balances

0.0% 

 

 

(301,567)

-83.5%

 

 

0.0% 

 

AL NOL valuation allowance release

0.0% 

 

 

(28,827)

-8.0%

 

 

(4,791)

-0.9%

 

U.S. production deduction

0.0% 

 

 

2,452  0.7% 

 

 

(8,790)

-1.6%

 

Transition tax

595  0.1% 

 

 

12,301  3.4% 

 

 

0.0% 

 

Foreign tax credit carryforward

0.0% 

 

 

0.0% 

 

 

(6,513)

-1.2%

 

Other, net

87  0.0% 

 

 

(2,337)

-0.6%

 

 

(3,268)

-0.6%

 

Total income tax expense (benefit)/

 

 

 

 

 

 

 

 

 

 

 

  Effective tax rate

$    105,449 

16.9% 

 

 

$  (232,075)

-64.2%

 

 

$    124,851 

22.8% 

 



Deferred taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax liability at December 31 are as follows:





 

 

 

 

 



 

 

 

 

 

in thousands

2018

 

 

2017

 

Deferred Tax Assets Related to

 

 

 

 

 

Employee benefits

$        24,407 

 

 

$       29,547 

 

Incentive compensation

62,829 

 

 

59,010 

 

Asset retirement obligations & other reserves

55,822 

 

 

47,116 

 

State net operating losses

68,436 

 

 

73,083 

 

Federal credit carryforwards

 

 

51,284 

 

Other

31,294 

 

 

37,518 

 

Total gross deferred tax assets

$      242,788 

 

 

$     297,558 

 

Valuation allowance

(29,680)

 

 

(29,723)

 

Total net deferred tax asset

$      213,108 

 

 

$     267,835 

 

Deferred Tax Liabilities Related to

 

 

 

 

 

Property, plant & equipment

$      510,604 

 

 

$     490,459 

 

Goodwill/other intangible assets

233,471 

 

 

216,039 

 

Other

36,316 

 

 

25,418 

 

Total deferred tax liabilities

$      780,391 

 

 

$     731,916 

 

Net deferred tax liability

$      567,283 

 

 

$     464,081 

 



Each quarter we analyze the likelihood that our deferred tax assets will be realized. A valuation allowance is recorded if, based on the weight of all available positive and negative evidence, it is more likely than not (a likelihood of more than 50%) that some portion, or all, of a deferred tax asset will not be realized. At December 31, 2018, we have Alabama state net operating loss (NOL) carryforward deferred tax assets of $65,577,000, against which we have a valuation allowance of $29,183,000. At this time, we do not expect any future adjustment to this valuation allowance. The Alabama NOL carryforward, if not utilized, would expire between 2023 and 2032.

Changes in our liability for unrecognized tax benefits for the years ended December 31 are as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Unrecognized tax benefits as of January 1

$        11,643 

 

 

$       10,828 

 

 

$         8,447 

 

Increases for tax positions related to

 

 

 

 

 

 

 

 

   Prior years

 

 

27 

 

 

1,368 

 

   Current year

698 

 

 

1,039 

 

 

1,040 

 

Decreases for tax positions related to

 

 

 

 

 

 

 

 

   Prior years

(655)

 

 

(204)

 

 

 

Settlements with taxing authorities

 

 

 

 

 

Expiration of applicable statute of limitations

(8,025)

 

 

(47)

 

 

(27)

 

Unrecognized tax benefits as of December 31

$          3,661 

 

 

$       11,643 

 

 

$       10,828 

 



We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. Interest and penalties recognized as income tax expense (benefit) were $(1,477,000) in 2018, $420,000 in 2017 and $266,000 in 2016. The balance of accrued interest and penalties included in our liability for unrecognized tax benefits as of December 31 was $312,000 in 2018, $1,789,000 in 2017 and $1,369,000 in 2016. Our liability for unrecognized tax benefits at December 31 in the table above include $3,481,000 in 2018, $10,673,000 in 2017 and $9,884,000 in 2016 that would affect the effective tax rate if recognized. We anticipate no single tax position generating a significant increase in our liability for unrecognized tax benefits within 12 months of this reporting date.

As of December 31, 2018, income tax receivables of $922,000 are included in other accounts and notes receivable in the accompanying Consolidated Balance Sheet. There were similar receivables of $106,980,000  ($106,000,000 related to 2017 federal estimated payments which were refunded early 2018) as of December 31, 2017.

 

 

v3.10.0.1
BENEFIT PLANS
12 Months Ended
Dec. 31, 2018
BENEFIT PLANS [Abstract]  
BENEFIT PLANS

NOTE 10: BENEFIT PLANS

PENSION PLANS

We sponsor three qualified, noncontributory defined benefit pension plans. These plans cover substantially all employees hired before July 2007, other than those covered by union-administered plans. Normal retirement age is 65, but the plans contain provisions for earlier retirement. Benefits for the Salaried Plan and the Chemicals Hourly Plan are generally based on salaries or wages and years of service; the Construction Materials Hourly Plan provides benefits equal to a flat dollar amount for each year of service. In addition to these qualified plans, we sponsor three unfunded, nonqualified pension plans. The projected benefit obligation presented in the table below includes $71,435,000 and $82,136,000 related to these unfunded, nonqualified pension plans for 2018 and 2017, respectively.

Effective July 2007, we amended our defined benefit pension plans to no longer accept new participants. Future benefit accruals for participants in our salaried defined benefit pension plan ceased on December 31, 2013, while salaried participants’ earnings considered for benefit calculations were frozen on December 31, 2015.

The following table sets forth the combined funded status of the plans and their reconciliation with the related amounts recognized in our consolidated financial statements at December 31:





 

 

 

 

 

 

 



 

 

 

 

 

 

 

in thousands

2018 

 

 

2017 

 

Change in Benefit Obligation

 

 

 

 

 

Projected benefit obligation at beginning of year

$    1,091,223 

 

 

$  1,006,674 

 

Service cost

5,716 

 

 

6,715 

 

Interest cost

35,503 

 

 

36,230 

 

Plan amendment  1

 

 

10,869 

 

Actuarial (gain) loss

(118,827)

 

 

81,969 

 

Benefits paid

(54,679)

 

 

(51,234)

 

Projected benefit obligation at end of year

$       958,936 

 

 

$  1,091,223 

 

Change in Fair Value of Plan Assets

 

 

 

 

 

Fair value of assets at beginning of year

$       840,901 

 

 

$     749,515 

 

Actual return on plan assets

(59,083)

 

 

122,597 

 

Employer contribution

109,631 

 

 

20,023 

 

Benefits paid

(54,679)

 

 

(51,234)

 

Fair value of assets at end of year

$       836,770 

 

 

$     840,901 

 

Funded status

(122,166)

 

 

(250,322)

 

Net amount recognized

$      (122,166)

 

 

$   (250,322)

 

Amounts Recognized in the Consolidated

 

 

 

 

 

  Balance Sheets

 

 

 

 

 

Noncurrent assets

$           6,488 

 

 

$         4,605 

 

Current liabilities

(9,067)

 

 

(9,478)

 

Noncurrent liabilities

(119,587)

 

 

(245,449)

 

Net amount recognized

$      (122,166)

 

 

$   (250,322)

 

Amounts Recognized in Accumulated

 

 

 

 

 

  Other Comprehensive Income

 

 

 

 

 

Net actuarial loss

$       240,199 

 

 

$     250,581 

 

Prior service cost

7,828 

 

 

9,167 

 

Total amount recognized

$       248,027 

 

 

$     259,748 

 





 

1

Effective January 2017, we amended the Construction Materials Hourly Plan to increase the multiplier for years of service.



The accumulated benefit obligation (ABO) and the projected benefit obligation (PBO) exceeded plan assets for all of our defined benefit plans at December 31, 2018 and December 31, 2017, except for one where the plan assets exceeded the ABO by $6,525,000 and $5,346,000, respectively. The ABO for all of our defined benefit pension plans totaled $958,899,000 (unfunded, nonqualified plans of $71,435,000) at December 31, 2018 and $1,090,482,000 (unfunded, nonqualified plans of $82,136,000) at December 31, 2017.

The following table sets forth the components of net periodic benefit cost, amounts recognized in other comprehensive income and weighted-average assumptions of the plans at December 31:





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

dollars in thousands

2018

 

 

2017

 

 

2016

 

Components of Net Periodic Pension

 

 

 

 

 

 

 

 

  Benefit Cost

 

 

 

 

 

 

 

 

Service cost

$          5,716 

 

 

$        6,715 

 

 

$        5,343 

 

Interest cost

35,503 

 

 

36,230 

 

 

36,505 

 

Expected return on plan assets

(59,188)

 

 

(48,506)

 

 

(51,562)

 

Amortization of prior service cost (credit)

1,340 

 

 

1,340 

 

 

(43)

 

Amortization of actuarial loss

9,826 

 

 

7,397 

 

 

6,163 

 

Net periodic pension benefit cost (credit)

$         (6,803)

 

 

$        3,176 

 

 

$       (3,594)

 

Changes in Plan Assets and Benefit

 

 

 

 

 

 

 

 

  Obligations Recognized in Other

 

 

 

 

 

 

 

 

  Comprehensive Income

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

$            (555)

 

 

$        7,879 

 

 

$      33,682 

 

Prior service cost

 

 

10,868 

 

 

 

Reclassification of prior service (cost) credit

(1,340)

 

 

(1,340)

 

 

43 

 

Reclassification of actuarial loss

(9,826)

 

 

(7,397)

 

 

(6,163)

 

Amount recognized in other comprehensive

 

 

 

 

 

 

 

 

  income

$       (11,721)

 

 

$      10,010 

 

 

$      27,562 

 

Amount recognized in net periodic pension

 

 

 

 

 

 

 

 

  benefit cost and other comprehensive

 

 

 

 

 

 

 

 

  income

$       (18,524)

 

 

$      13,186 

 

 

$      23,968 

 

Assumptions

 

 

 

 

 

 

 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

  determine net periodic benefit cost for

 

 

 

 

 

 

 

 

  years ended December 31

 

 

 

 

 

 

 

 

Discount rate — PBO

3.72% 

 

 

4.29% 

 

 

4.55% 

 

Discount rate — service cost

3.90% 

 

 

4.63% 

 

 

4.68% 

 

Discount rate — interest cost

3.35% 

 

 

3.63% 

 

 

3.79% 

 

Expected return on plan assets

7.00% 

 

 

7.00% 

 

 

7.50% 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

  determine benefit obligation at

 

 

 

 

 

 

 

 

  December 31

 

 

 

 

 

 

 

 

Discount rate

4.39% 

 

 

3.72% 

 

 

4.29% 

 



The estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive income into net periodic pension benefit cost (credit) during 2019 are $4,933,000 and $1,339,000, respectively.

Plan assets are invested according to an investment policy that allocates investments in return seeking assets and liability hedging assets based on the plans’ funded ratio (fair value of assets/PBO). Return seeking assets include public and private equity securities, public and private debt securities, and commodities. Liability hedging assets include money market securities, inflation linked debt securities, public corporate debt securities, and government debt securities.

At each measurement date, we estimate the net asset values and fair values of our pension assets using various valuation techniques. For certain investments, we use the net asset value as a practical expedient to estimating fair value. 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. 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

The fair values and net asset values of our pension plan assets at December 31, 2018 and 2017 are in the tables below. The assets in the common/collective trusts and in the private partnerships consist of both return seeking and liability hedging investments. At December 31, 2018, the total pension asset allocation was approximately 70% return seeking and 30% liability hedging, compared to the December 31, 2017 allocation of approximately 80% return seeking and 20% liability hedging. Based on the funded ratio at December 31, 2018, we are in process of shifting the asset allocation to approximately 55% return seeking and 45% liability hedging.

Fair Value Measurements at December 31, 2018





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Asset Category

 

 

 

 

 

 

 

 

 

 

 

Debt funds

$                0 

 

 

$     168,953 

 

 

$                0 

 

 

$     168,953 

 

Commodity funds

 

 

14,697 

 

 

 

 

14,697 

 

Equity funds

246 

 

 

135,656 

 

 

 

 

135,902 

 

Investments in the fair value hierarchy

$            246 

 

 

$     319,306 

 

 

$                0 

 

 

$     319,552 

 

Interest in common/collective trusts (at NAV)

 

 

 

 

 

 

 

 

462,566 

 

Private partnerships (at NAV)

 

 

 

 

 

 

 

 

54,652 

 

Total pension plan assets

 

 

 

 

 

 

 

 

 

$     836,770 

 

Fair Value Measurements at December 31, 2017





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Asset Category

 

 

 

 

 

 

 

 

 

 

 

Debt funds

$                0 

 

 

$     178,512 

 

 

$                0 

 

 

$     178,512 

 

Commodity funds

 

 

17,041 

 

 

 

 

17,041 

 

Equity funds

1,089 

 

 

143,010 

 

 

 

 

144,099 

 

Investments in the fair value hierarchy

$         1,089 

 

 

$     338,563 

 

 

$                0 

 

 

$     339,652 

 

Interest in common/collective trusts (at NAV)

 

 

 

 

 

 

 

 

416,397 

 

Private partnerships (at NAV)

 

 

 

 

 

 

 

 

84,852 

 

Total pension plan assets

 

 

 

 

 

 

 

 

 

$     840,901 

 



The following describes the types of investments included in each asset category listed in the tables above and the valuation techniques we used to determine the fair values or net asset values as of December 31, 2018 and 2017.

The debt funds category consists of U.S. federal, state and local government debt securities, corporate debt securities, foreign government debt securities, and asset-backed securities. The fair values of U.S. government and corporate debt securities are based on current market rates and credit spreads for debt securities with similar maturities. The fair values of debt securities issued by foreign governments are based on prices obtained from broker/dealers and international indices. The fair values of asset-backed securities are priced using prepayment speed and spread inputs that are sourced from the new issue market.

The commodity funds category consists of a single open-end commodity mutual fund. The equity funds category consists of a mutual fund investing in domestic equities. For investment funds publicly traded on a national securities exchange, the fair value is based on quoted market prices. For investment funds not traded on an exchange, the total fair value of the underlying securities is used to determine the net asset value for each unit of the fund held by the pension fund. The estimated fair values of the underlying securities are generally valued based on quoted market prices. For securities without quoted market prices, other observable market inputs are used to determine the fair value.

Common/collective trust fund investments consist of index funds for domestic equities, an actively managed fund for international equities, and a short-term investment fund for highly liquid, short-term debt securities. Investments are valued at the net asset value (NAV) of units of a bank collective trust. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV.

The private partnerships category consists of various venture capital funds, mezzanine debt funds and leveraged buyout funds. The NAV of these investments has been estimated based on methods employed by the general partners, including consideration of, among other things, reference to third-party transactions, valuations of comparable companies operating within the same or similar industry, the current economic and competitive environment, creditworthiness of the corporate issuer, as well as market prices for instruments with similar maturities, terms, conditions and quality ratings. The use of different assumptions, applying different judgment to inherently subjective matters and changes in future market conditions could result in significantly different estimates of fair value of these securities.

Total employer contributions to the pension plans are presented below:





 

 

 

 



 

 

 

 

in thousands

Pension

 

Employer Contributions

 

 

2016

$          9,576 

 

2017

20,023 

 

2018

109,631 

 

2019 (estimated)

9,067 

 



For our qualified pension plans, we made discretionary contributions of $100,000,000 and $10,600,000 during 2018 and 2017, respectively, and made no contributions during 2016. We do not anticipate making contributions to our qualified pension plans in 2019. For our nonqualified pension plans, we contributed $9,631,000,  $9,423,000 and $9,576,000 during 2018, 2017 and 2016, respectively, and expect to contribute $9,067,000 during 2019.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:





 

 

 

 



 

 

 

 

in thousands

Pension

 

Estimated Future Benefit Payments

 

 

2019

$        56,493 

 

2020

57,191 

 

2021

58,317 

 

2022

59,705 

 

2023

60,871 

 

2024-2028

301,996 

 



We contribute to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements for union-represented employees. A multiemployer plan is subject to collective bargaining for employees of two or more unrelated companies. Multiemployer plans are managed by boards of trustees on which management and labor have equal representation. However, in most cases, management is not directly represented. The risks of participating in multiemployer plans differ from single employer plans as follows:

§

assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers

§

if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers

§

if we cease to have an obligation to contribute to one or more of the multiemployer plans to which we contribute, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability

None of the multiemployer pension plans that we participate in are individually significant. Our contributions to individual multiemployer pension funds did not exceed 5% of the fund’s total contributions in the three years ended December 31, 2018, 2017 and 2016. Total contributions to multiemployer pension plans were $10,081,000 in 2018, $9,253,000 in 2017 and $10,435,000 in 2016.

As of December 31, 2018, a total of 8.5% of our domestic hourly labor force was covered by collective-bargaining agreements. Of such employees covered by collective-bargaining agreements, 7.5% were covered by agreements that expire in 2019. We also employed 332 union employees in Mexico who are covered by a collective-bargaining agreement that will expire in 2019. None of our union employees in Mexico participate in multiemployer pension plans.

In addition to the pension plans noted above, we had one unfunded supplemental retirement plan as of December 31, 2018 and 2017. The accrued costs for the supplemental retirement plan were $1,122,000 at December 31, 2018 and $1,252,000 at December 31, 2017.

POSTRETIREMENT PLANS

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

The following table sets forth the combined funded status of the plans and their reconciliation with the related amounts recognized in our consolidated financial statements at December 31:





 

 

 

 

 

 

 



 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

Change in Benefit Obligation

 

 

 

 

 

Projected benefit obligation at beginning of year

$        43,480 

 

 

$       45,546 

 

Service cost

1,357 

 

 

1,167 

 

Interest cost

1,240 

 

 

1,260 

 

Actuarial loss

856 

 

 

378 

 

Benefits paid

(6,099)

 

 

(4,871)

 

Projected benefit obligation at end of year

$        40,834 

 

 

$       43,480 

 

Change in Fair Value of Plan Assets

 

 

 

 

 

Fair value of assets at beginning of year

$                 0 

 

 

$                0 

 

Actual return on plan assets

 

 

 

Fair value of assets at end of year

$                 0 

 

 

$                0 

 

Funded status

$       (40,834)

 

 

$     (43,480)

 

Net amount recognized

$       (40,834)

 

 

$     (43,480)

 

Amounts Recognized in the Consolidated

 

 

 

 

 

  Balance Sheets

 

 

 

 

 

Current liabilities

$         (5,560)

 

 

$        (5,624)

 

Noncurrent liabilities

(35,274)

 

 

(37,856)

 

Net amount recognized

$       (40,834)

 

 

$     (43,480)

 

Amounts Recognized in Accumulated

 

 

 

 

 

  Other Comprehensive Income

 

 

 

 

 

Net actuarial gain

$       (18,624)

 

 

$     (20,757)

 

Prior service credit

(11,494)

 

 

(15,456)

 

Total amount recognized

$       (30,118)

 

 

$     (36,213)

 





The following table sets forth the components of net periodic benefit cost, amounts recognized in other comprehensive income, weighted-average assumptions and assumed trend rates of the plans at December 31:





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

dollars in thousands

2018

 

 

2017

 

 

2016

 

Components of Net Periodic Postretirement

 

 

 

 

 

 

 

 

  Benefit Cost

 

 

 

 

 

 

 

 

Service cost

$          1,358 

 

 

$        1,167 

 

 

$        1,123 

 

Interest cost

1,240 

 

 

1,260 

 

 

1,209 

 

Amortization of prior service credit

(3,962)

 

 

(4,236)

 

 

(4,236)

 

Amortization of actuarial gain

(1,298)

 

 

(1,587)

 

 

(1,751)

 

Net periodic postretirement benefit cost (credit)

$         (2,662)

 

 

$       (3,396)

 

 

$       (3,655)

 

Changes in Plan Assets and Benefit

 

 

 

 

 

 

 

 

  Obligations Recognized in Other

 

 

 

 

 

 

 

 

  Comprehensive Income

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

$             835 

 

 

$           342 

 

 

$          (111)

 

Reclassification of prior service credit

3,962 

 

 

4,236 

 

 

4,236 

 

Reclassification of actuarial gain

1,298 

 

 

1,587 

 

 

1,751 

 

Amount recognized in other comprehensive

 

 

 

 

 

 

 

 

  income

$          6,095 

 

 

$        6,165 

 

 

$        5,876 

 

Amount recognized in net periodic

 

 

 

 

 

 

 

 

  postretirement benefit cost and other

 

 

 

 

 

 

 

 

  comprehensive income

$          3,433 

 

 

$        2,769 

 

 

$        2,221 

 

Assumptions

 

 

 

 

 

 

 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

  determine net periodic benefit cost for

 

 

 

 

 

 

 

 

  years ended December 31

 

 

 

 

 

 

 

 

Discount rate — PBO

3.34% 

 

 

3.59% 

 

 

3.69% 

 

Discount rate — service cost

3.56% 

 

 

3.96% 

 

 

3.77% 

 

Discount rate — interest cost

2.90% 

 

 

2.89% 

 

 

2.81% 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

  determine benefit obligation at

 

 

 

 

 

 

 

 

  December 31

 

 

 

 

 

 

 

 

Discount rate

4.01% 

 

 

3.33% 

 

 

3.58% 

 



The estimated net actuarial gain and prior service credit that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit cost (credit) during 2019 are $(1,344,000) and $(3,919,000), respectively.

Total employer contributions to the postretirement plans are presented below:





 

 

 

 



 

 

 

 

in thousands

Postretirement

 

Employer Contributions

 

 

2016

$          5,280 

 

2017

4,871 

 

2018

6,099 

 

2019 (estimated)

5,561 

 



The employer contributions shown above are equal to the cost of benefits during the year. The plans are not funded and are not subject to any regulatory funding requirements.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:





 

 

 

 



 

 

 

 

in thousands

Postretirement

 

Estimated Future Benefit Payments

 

 

2019

$          5,561 

 

2020

5,381 

 

2021

5,077 

 

2022

4,733 

 

2023

4,523 

 

2024–2028

17,168 

 



Contributions by participants to the postretirement benefit plans for the years ended December 31 are as follows:





 

 

 

 



 

 

 

 

in thousands

Postretirement

 

Participants Contributions

 

 

2016

$          2,085 

 

2017

2,025 

 

2018

1,984 

 



PENSION AND OTHER POSTRETIREMENT BENEFITS ASSUMPTIONS

Each year, we review our assumptions for discount rates (used for PBO, service cost, and interest cost calculations) and the expected return on plan assets. Due to plan changes made in 2012 and 2013, annual pay increases and the per capita cost of healthcare benefits do not materially impact plan obligations.

We use a high-quality bond full yield curve approach (specific spot rates for each annual expected cash flow) to establish the discount rates at each measurement date. At December 31, 2018, the discount rates used were as follows:

§

PBO for various plans – ranged from 3.92% to 4.47% (December 31, 2017 ranged from 3.24% to 3.79%)

§

Service cost – weighted average of 3.90% and 3.56%, respectively, for our pension plans and our other postretirement plans (2017 figures were 4.63% and 3.96%, respectively)

§

Interest cost – weighted average of 3.35% and 2.90%, respectively, for our pension plans and our other postretirement plans (2017 figures were 3.63% and 2.89%, respectively)

Our expected return on plan assets is: (1) a long-term view based on our current asset allocation, and (2) a judgment informed by consultation with our retirement plans’ consultant and our pension plans’ actuary. The expected return on plan assets used to measure plan benefit costs was 7.0% in 2018 and 2017. For 2019, we decreased the expected return on plan assets to 5.75%.

DEFINED CONTRIBUTION PLANS

We sponsor two defined contribution plans. Substantially all salaried and nonunion hourly employees are eligible to be covered by one of these plans. Under these plans, we match employees’ eligible contributions at established rates. Expense recognized in connection with these matching obligations totaled $40,718,000 in 2018, $44,562,000 in 2017 and $45,295,000 in 2016.

 

 

v3.10.0.1
INCENTIVE PLANS
12 Months Ended
Dec. 31, 2018
INCENTIVE PLANS [Abstract]  
INCENTIVE PLANS

NOTE 11: INCENTIVE PLANS

SHARE-BASED COMPENSATION PLANS

Our 2016 Omnibus Long-term Incentive Plan (Plan) authorizes the granting of performance shares, restricted shares, Stock-Only Stock Appreciation Rights (SOSARs) and other types of share-based awards to key salaried employees and nonemployee directors. The maximum number of shares that may be issued under the Plan is 8,000,000.

PERFORMANCE SHARES Each performance share unit is equal to and paid in one share of our common stock, but carries no voting or dividend rights. The number of units ultimately paid for performance share awards may range from 0% to 200% of the number of units awarded on the date of grant. Payment is based upon our Total Shareholder Return (TSR) performance relative to the TSR performance of the S&P 500®. Awards vest on December 31 of the third (2018 and 2017 awards) or fourth (all other outstanding awards) year after date of grant. Vesting is accelerated upon reaching retirement age, death, disability, or change of control, all as defined in the award agreement. Nonvested units are forfeited upon termination for any other reason. Expense provisions referable to performance share awards amounted to $13,656,000 in 2018, $16,272,000 in 2017 and $12,074,000 in 2016.

The fair value of performance shares is estimated as of the date of grant using a Monte Carlo simulation model. The following table summarizes the activity for nonvested performance share units during the year ended December 31, 2018:





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Target

 

 

Weighted-average

 



 

 

Number

 

 

Grant Date

 



 

 

of Shares

 

 

Fair Value

 

Performance Shares

 

 

 

 

 

Nonvested at January 1, 2018

498,979 

 

 

$             89.16 

 

Granted

130,715 

 

 

117.20 

 

Vested

(218,725)

 

 

74.85 

 

Canceled/forfeited

(60,291)

 

 

103.56 

 

Nonvested at December 31, 2018

350,678 

 

 

$           106.06 

 



During 2017 and 2016, the weighted-average grant date fair value of performance shares granted was $117.49 and $87.77, respectively.

The aggregate values for distributed performance share awards are based on the closing price of our common stock as of the distribution date. The aggregate values of distributed performance shares for the years ended December 31 are as follows:





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Aggregate value of distributed

 

 

 

 

 

 

 

 

  performance shares

$       53,721 

 

 

$       52,368 

 

 

$       60,443 

 



RESTRICTED SHARES Each restricted share unit is equal to and paid in one share of our common stock, but carries no voting or dividend rights. Awards vest on the third (2018 and 2017 awards) or fourth (all other outstanding awards) anniversary of the grant date. Vesting is accelerated upon reaching retirement age, death, disability, or change of control, all as defined in the award agreement. Nonvested units are forfeited upon termination for any other reason. Expense provisions referable to restricted share awards amounted to $4,831,000 in 2018, $4,371,000 in 2017 and $3,004,000 in 2016.

The fair value of restricted shares is estimated as of the date of grant based on the stock price adjusted for dividends foregone. The following table summarizes the activity for nonvested restricted share units during the year ended December 31, 2018:



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

 

 

 

Weighted-average

 



 

 

Number

 

 

Grant Date

 



 

 

of Shares

 

 

Fair Value

 

Restricted Stock Units

 

 

 

 

 

Nonvested at January 1, 2018

109,302 

 

 

$             97.43 

 

Granted

52,065 

 

 

117.20 

 

Vested

(11,622)

 

 

100.35 

 

Canceled/forfeited

(4,366)

 

 

110.73 

 

Nonvested at December 31, 2018

145,379 

 

 

$           103.88 

 



During 2017 and 2016, the weighted-average grant date fair value of restricted shares granted was $117.49 and $87.77, respectively.

The aggregate values for distributed restricted share awards are based on the closing price of our common stock as of the distribution date. The aggregate values of distributed restricted shares for the years ended December 31 are as follows:



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Aggregate value of distributed

 

 

 

 

 

 

 

 

  restricted shares

$        1,345 

 

 

$        7,685 

 

 

$               0 

 



STOCK-ONLY STOCK APPRECIATION RIGHTS (SOSARs) — SOSARs granted have an exercise price equal to the market value of our underlying common stock on the date of grant. The SOSARs vest ratably over 3 years (2018 and 2017 awards) or 4 years (all other awards) and expire 10 years subsequent to the grant. Vesting is accelerated upon reaching retirement age, death, disability, or change of control, all as defined in the award agreement. Nonvested awards are forfeited upon termination for any other reason.

The fair value of SOSARs is estimated as of the date of grant using the Black-Scholes option pricing model. Compensation cost for SOSARs is based on this grant date fair value and is recognized for awards that ultimately vest. The following table presents the weighted-average fair value and the weighted-average assumptions used in estimating the fair value of grants during the years ended December 31:



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

2018

 

 

2017

 

 

2016

 

SOSARs

 

 

 

 

 

 

 

 

Fair value

$        43.72 

 

 

$        43.01 

 

 

$        29.20 

 

Risk-free interest rate

2.90% 

 

 

2.36% 

 

 

1.66% 

 

Dividend yield

1.39% 

 

 

1.27% 

 

 

1.39% 

 

Volatility

31.49% 

 

 

31.35% 

 

 

30.42% 

 

Expected term

9.00 years

 

 

9.00 years

 

 

9.00 years

 



The risk-free interest rate is based on the yield at the date of grant of a U.S. Treasury security with a maturity period approximating the SOSARs expected term. The dividend yield assumption is based on our historical dividend payouts adjusted for current expectations of future payouts. The volatility assumption is based on the historical volatility and expectations about future volatility of our common stock over a period equal to the SOSARs expected term. The expected term is based on historical experience and expectations about future exercises and represents the period of time that SOSARs granted are expected to be outstanding.

A summary of our SOSAR activity as of December 31, 2018 and changes during the year are presented below:





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Weighted-average

 

 

 

 



 

 

 

 

 

 

 

 

Remaining

 

 

Aggregate

 



 

 

Number

 

 

Weighted-average

 

 

Contractual

 

 

Intrinsic Value

 



 

 

of Shares

 

 

Exercise Price

 

 

Life (Years)

 

 

(in thousands)

 

SOSARs

 

 

 

 

 

 

 

 

 

 

 

Outstanding at January 1, 2018

2,242,487 

 

 

$             52.95 

 

 

 

 

 

 

 

Granted

82,800 

 

 

121.69 

 

 

 

 

 

 

 

Exercised

(583,539)

 

 

45.71 

 

 

 

 

 

 

 

Forfeited or expired

(165)

 

 

79.41 

 

 

 

 

 

 

 

Outstanding at December 31, 2018

1,741,583 

 

 

$             58.64 

 

 

3.70 

 

 

$           72,276 

 

Exercisable at December 31, 2018

1,518,900 

 

 

$             51.39 

 

 

3.08 

 

 

$           71,284 

 



The aggregate intrinsic values in the table above represent the total pretax intrinsic value (the difference between our stock price on the last trading day of 2018 and the exercise price, multiplied by the number of in-the-money SOSARs) that would have been received by the option holders had all SOSARs been exercised on December 31, 2018. These values change based on the fair market value of our common stock. The aggregate intrinsic values of SOSARs exercised for the years ended December 31 are as follows:





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Aggregate intrinsic value of SOSARs exercised

$       49,248 

 

 

$       13,758 

 

 

$       27,705 

 



The following table presents cash and stock consideration received and tax benefit realized from SOSAR exercises and compensation cost recorded referable to SOSARs for the years ended December 31:





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

SOSARs

 

 

 

 

 

 

 

 

Cash and stock consideration received

 

 

 

 

 

 

 

 

  from exercises

$              0 

 

 

$              0 

 

 

$              0 

 

Tax benefit from exercises

19,083 

 

 

5,331 

 

 

10,767 

 

Compensation cost

4,763 

 

 

3,723 

 

 

2,744 

 



DEFERRED STOCK UNITS — In addition to the share-based compensation plans for employees discussed above, we issue a limited number of deferred stock units to our nonemployee directors annually. These deferred stock units vest immediately upon issuance (except for the 2015 grant which vested over three years) and accumulate dividends over the vesting period. Expense provisions referable to nonemployee director deferred stock units amounted to $1,965,000 in 2018, $2,260,000 in 2017 and $2,848,000 in 2016.

CASH-BASED COMPENSATION PLANS

We have incentive plans under which cash awards may be made annually. Expense provisions under these plans referable to awards to officers and certain employees amounted to $36,969,000 in 2018, $35,280,000 in 2017 and $46,758,000 in 2016. Additionally, expense provision referable to a 2017 one-time bonus for non-incentive eligible employees amounted to $6,716,000.

 

 

v3.10.0.1
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 12: COMMITMENTS AND CONTINGENCIES

We have commitments in the form of unconditional purchase obligations as of December 31, 2018. These include commitments for the purchase of property, plant & equipment of $35,248,000 and commitments for noncapital purchases of $36,722,000. These commitments are due as follows:





 

 



 

 



Unconditional

 



Purchase

 

in thousands

Obligations

 

Property, Plant & Equipment

 

 

2019

$        35,248 

 

Thereafter

 

Total

$        35,248 

 

Noncapital (primarily transportation and electricity contracts)

 

 

2019

$        11,912 

 

2020–2021

9,120 

 

2022–2023

3,690 

 

Thereafter

12,000 

 

Total

$        36,722 

 



Expenditures under noncapital purchase commitments totaled $56,674,000 in 2018, $40,526,000 in 2017 and $60,591,000 in 2016.

We have commitments in the form of minimum royalties under mineral leases as of December 31, 2018 in the amount of $240,575,000, due as follows:





 

 



 

 



Mineral

 

in thousands

Leases

 

Minimum Royalties

 

 

2019

$        23,211 

 

2020–2021

36,630 

 

2022–2023

26,014 

 

Thereafter

154,720 

 

Total

$      240,575 

 



Expenditures for royalties under mineral leases totaled $76,761,000 in 2018, $67,933,000 in 2017 and $62,978,000 in 2016. Refer to Note 7 for future minimum nonmineral operating lease payments.

Certain of our aggregates reserves are burdened by volumetric production payments (nonoperating interest) as described in Note 2. As the holder of the working interest, we have responsibility to bear the cost of mining and producing the reserves attributable to this nonoperating interest.

As summarized by purpose in Note 6, our standby letters of credit totaled $44,979,000 as of December 31, 2018.

As described in Note 9, our liability for unrecognized tax benefits is $3,661,000 as of December 31, 2018.

As described in Note 17, our asset retirement obligations totaled $225,726,000 as of December 31, 2018.

LITIGATION AND ENVIRONMENTAL MATTERS

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

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

We have reviewed the nature and extent of our involvement at each Superfund site, as well as potential obligations arising under other federal, state and local environmental laws. While ultimate resolution and financial liability is uncertain at a number of the sites, in our opinion based on information currently available, the ultimate resolution of claims and assessments related to these sites will not have a material effect on our consolidated results of operations, financial position or cash flows, although amounts recorded in a given period could be material to our results of operations or cash flows for that period. Amounts accrued for environmental matters are presented in Note 8.

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

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

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

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

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

In October 2018, the EPA ordered the CPG to prepare a streamlined feasibility study specifically for the upper nine miles of the River. This directive is focused on dioxin.

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

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

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

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

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

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

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

 NEW YORK WATER DISTRICT CASES (DISCONTINUED OPERATIONS) — During the operation of our former Chemicals Division, which was divested to Occidental in 2005, Vulcan manufactured a chlorinated solvent known as 1,1,1-trichloroethane. We are a defendant in eleven cases allegedly involving 1,1,1-trichloroethane. All of the cases are filed in the United States District Court for the Eastern District of New York. According to the various complaints, the plaintiffs are public drinking water providers who serve customers in Nassau County and Suffolk County, New York. It is alleged that our 1,1,1-trichloroethane was stabilized with 1,4-dioxane and that various water wells of the plaintiffs are contaminated with 1,4-dioxane. The cases, against us and other defendants, have been filed by the following plaintiffs: Albertson Water District, Carle Place Water District, Garden City Park Water District, Jericho Water District, Manhasset-Lakeview Water District, Oyster Bay Water District, Port Washington Water District, Roslyn Water District, Suffolk County Water Authority, Water Authority of Great Neck North, and the West Hempstead Water District (collectively, the Cases). The plaintiffs are seeking unspecified compensatory and punitive damages. We will vigorously defend the Cases. At this time we cannot determine the likelihood or reasonably estimate a range of loss, if any, pertaining to the Cases.

 HEWITT LANDFILL MATTER (SUPERFUND SITE) — In September 2015, the Los Angeles Regional Water Quality Control Board (RWQCB) issued a Cleanup and Abatement Order (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 us 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, we submitted an interim remedial action plan (IRAP) to the RWQCB, proposing an on-site pilot test of a pump and treat system for groundwater; testing and implementation of a leachate recovery system; and storm water capture and conveyance improvements.

Operation of the on-site pilot-scale treatment system began in January 2017 and was completed in April 2017. With completion of the pilot testing and other investigative work, we submitted an amendment to the IRAP (AIRAP) to RWQCB in August 2017 proposing the use of a pump, treat and reinjection system. In December 2017, we submitted an addendum to the AIRAP, incorporating new data acquired since the prior submission. In February 2018, the AIRAP was approved by RWQCB. As a result of this approval, we have begun to implement the on-site source control activities described in the AIRAP, including procurement of vendors to perform the work and additional bench scale testing of the treatment system, which indicated that additional pre and post treatment of the water would be required. Based on the proposals from contractors for construction, operation and maintenance of the facility, we accrued an additional $10,392,000 of other operating expense during the fourth quarter of 2018, bringing the year-to-date and life-to-date total accruals for the on-site system to $19,032,000 and $34,271,000, respectively.

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

The EPA and Vulcan entered into an AOC and Statement of Work having an effective date of September 2017 for the design of two extraction wells south of the Hewitt Site to protect the North Hollywood West (NHW) well field. In November 2017, we submitted a Pre-Design Investigation (PDI) Work Plan to the EPA, which sets forth the activities and schedule for our evaluation of the need for a two-well remedy. These activities were completed between the first and third quarters of 2018, and in December 2018 we submitted a PDI Evaluation Report to the EPA. The PDI Evaluation Report summarizes data collection activities conducted pursuant to the PDI Work Plan, and provides model updates and evaluation of remediation alternatives to protect the NHW and Rinaldi-Toluca well fields from 1,4-dioxane from the Hewitt Site. Vulcan has not yet received comments or feedback from the EPA or the Regional Board on the report. Until the EPA’s review of the PDI Evaluation Report is complete and an effective remedy can be agreed upon, we cannot identify an appropriate remedial action. Given the various stakeholders involved and the uncertainties relating to issues such as testing, monitoring, and remediation alternatives, we cannot reasonably estimate a loss pertaining to this matter.

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

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

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

It is not possible to predict with certainty the ultimate outcome of these and other legal proceedings in which we are involved and a number of factors, including developments in ongoing discovery or adverse rulings, or the verdict of a particular jury, could cause actual losses to differ materially from accrued costs. No liability was recorded for claims and litigation for which a loss was determined to be only reasonably possible or for which a loss could not be reasonably estimated. Legal costs incurred in defense of lawsuits are expensed as incurred. In addition, losses on certain claims and litigation described above may be subject to limitations on a per occurrence basis by excess insurance, as described in Note 1 under the caption Claims and Litigation Including Self-insurance.

v3.10.0.1
EQUITY
12 Months Ended
Dec. 31, 2018
EQUITY [Abstract]  
EQUITY

NOTE 13: 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 5,000,000 shares of 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.

There were no shares held in treasury as of December 31, 2018, 2017 and 2016.

Our common stock purchases (all of which were open market purchases) and subsequent retirements for the years ended December 31 are summarized below:



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands, except average cost

2018

 

 

2017

 

 

2016

 

Shares Purchased and Retired

 

 

 

 

 

 

 

 

Number

1,192 

 

 

510 

 

 

1,427 

 

Total purchase price

$      133,983 

 

 

$       60,303 

 

 

$     161,463 

 

Average price per share

$        112.41 

 

 

$       118.18 

 

 

$       113.18 

 



As of December 31, 2018, 8,297,789 shares may be purchased under the current authorization of our Board of Directors.

Dividends were as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands, except per share data

2018

 

 

2017

 

 

2016

 

Dividends

 

 

 

 

 

 

 

 

Cash dividends

$      148,109 

 

 

$     132,335 

 

 

$     106,333 

 

Cash dividends per share

$            1.12 

 

 

$           1.00 

 

 

$           0.80 

 

 

 

v3.10.0.1
OTHER COMPREHENSIVE INCOME
12 Months Ended
Dec. 31, 2018
OTHER COMPREHENSIVE INCOME [Abstract]  
OTHER COMPREHENSIVE INCOME

NOTE 14: 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 Consolidated Statements of Comprehensive Income and Consolidated Statements of Equity, net of applicable taxes.

Amounts in accumulated other comprehensive income (AOCI), net of tax, at December 31, are as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

AOCI

 

 

 

 

 

 

 

 

Interest rate hedges

$       (11,180)

 

 

$     (11,438)

 

 

$     (13,300)

 

Pension and postretirement plans

(161,035)

 

 

(138,028)

 

 

(126,076)

 

Total

$     (172,215)

 

 

$   (149,466)

 

 

$   (139,376)

 



Changes in AOCI, net of tax, for the three years ended December 31, 2018 are as follows:



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

 

Pension and

 

 

 

 



Interest Rate

 

 

Postretirement

 

 

 

 

in thousands

Hedges

 

 

Benefit Plans

 

 

Total

 

AOCI

 

 

 

 

 

 

 

 

Balances at December 31, 2015

$       (14,494)

 

 

$   (105,575)

 

 

$   (120,069)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

  before reclassifications

 

 

(20,583)

 

 

(20,583)

 

Amounts reclassified from AOCI

1,194 

 

 

82 

 

 

1,276 

 

Net OCI changes

1,194 

 

 

(20,501)

 

 

(19,307)

 

Balances at December 31, 2016

$       (13,300)

 

 

$   (126,076)

 

 

$   (139,376)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

  before reclassifications

 

 

(14,106)

 

 

(14,106)

 

Amounts reclassified from AOCI

1,862 

 

 

2,154 

 

 

4,016 

 

Net OCI changes

1,862 

 

 

(11,952)

 

 

(10,090)

 

Balances at December 31, 2017

$       (11,438)

 

 

$   (138,028)

 

 

$   (149,466)

 

Released stranded tax effects ASU 2018-02 (Note 9)

(2,464)

 

 

(27,165)

 

 

(29,629)

 

Balances at January 1, 2018, due to reclassification

$       (13,902)

 

 

$   (165,193)

 

 

$   (179,095)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

  before reclassifications

2,496 

 

 

(207)

 

 

2,289 

 

Amounts reclassified from AOCI

226 

 

 

4,365 

 

 

4,591 

 

Net OCI changes

2,722 

 

 

4,158 

 

 

6,880 

 

Balances at December 31, 2018

$       (11,180)

 

 

$   (161,035)

 

 

$   (172,215)

 



Amounts reclassified from AOCI to earnings, are as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Amortization of Interest Rate Hedge Losses

 

 

 

 

 

 

 

 

Interest expense

$            306 

 

 

$        3,070 

 

 

$        2,008 

 

Benefit from income taxes

(80)

 

 

(1,208)

 

 

(814)

 

Total

$            226 

 

 

$        1,862 

 

 

$        1,194 

 

Amortization of Pension and Postretirement Plan

 

 

 

 

 

 

 

 

  Actuarial Loss and Prior Service Cost

 

 

 

 

 

 

 

 

Other nonoperating income

$         5,906 

 

 

$        2,915 

 

 

$           134 

 

Benefit from income taxes

(1,541)

 

 

(761)

 

 

(52)

 

Total

$         4,365 

 

 

$        2,154 

 

 

$             82 

 

Total reclassifications from AOCI to earnings

$         4,591 

 

 

$        4,016 

 

 

$        1,276 

 

 

 

v3.10.0.1
SEGMENT REPORTING
12 Months Ended
Dec. 31, 2018
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING

NOTE 15: SEGMENT REPORTING

We have four operating (and reportable) segments organized around our principal product lines: Aggregates, Asphalt, Concrete and Calcium. Management reviews earnings from the product line reporting segments principally at the gross profit level.

The Aggregates segment produces and sells aggregates (crushed stone, sand and gravel, sand, and other aggregates) and related products and services. During 2018, the Aggregates segment principally served markets in twenty states, Washington D.C., Mexico and the Bahamas with a full line of aggregates, and nine additional states with railroad ballast. Customers use aggregates primarily in the construction and maintenance of highways, streets and other public works and in the construction of housing and commercial, industrial and other nonresidential facilities. Customers are served by truck, rail and water distribution networks from our production facilities and sales yards. Due to the high weight-to-value ratio of aggregates, markets generally are local in nature. Quarries located on waterways and rail lines allow us to serve remote markets where local aggregates reserves may not be available.

The Asphalt segment produces and sells asphalt mix in six states: Alabama, Arizona, California, New Mexico, Tennessee and Texas, and includes asphalt construction paving in three states: Alabama, Tennessee and Texas. We entered the Alabama and Tennessee asphalt markets in 2018 and 2017, respectively, through acquisitions (see Note 19).

The Concrete segment produces and sells ready-mixed concrete in five states, Washington D.C. and an immaterial amount in the Bahamas. In 2018, we exited the Georgia ready-mixed concrete market through a divestiture (see Note 19). In 2017, we reentered the California ready-mixed concrete market through an acquisition and exited the Arizona market through a swap (see Note 19).

The Calcium segment consists of a Florida facility that mines, produces and sells calcium products.

Aggregates comprise approximately 95% of asphalt mix by weight and 80% of ready-mixed concrete by weight. Our Asphalt and Concrete segments are primarily supplied with their aggregates requirements from our Aggregates segment. These intersegment sales are made at local market prices for the particular grade and quality of product used in the production of asphalt mix and ready-mixed concrete. Customers for our Asphalt and Concrete segments are generally served locally at our production facilities or by truck. Because asphalt mix and ready-mixed concrete harden rapidly, delivery is time constrained and generally confined to a radius of approximately 20 to 25 miles from the producing facility.

The vast majority of our activities are domestic. We sell a relatively small amount of construction aggregates outside the United States. Total domestic revenues were $4,365,309,000 in 2018, $3,872,494,000 in 2017 and $3,579,427,000 in 2016. Nondomestic Aggregates segment revenues were $17,560,000 in 2018, $17,802,000 in 2017 and $13,240,000 in 2016; there were no significant nondomestic revenues in our Asphalt, Concrete or Calcium segments. Long-lived assets outside the United States, which consist primarily of property, plant & equipment, were $278,520,000 in 2018, $211,282,000 in 2017 and $188,652,000 in 2016. Equity method investments of $39,395,000 in 2018, $22,967,000 in 2017 and $22,965,000 in 2016 are included below in the identifiable assets for the Aggregates segment and in investments and long-term receivables on the accompanying Consolidated Balance Sheets.

SEGMENT FINANCIAL DISCLOSURE





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Total Revenues

 

 

 

 

 

 

 

 

Aggregates 1

$    3,513,649 

 

 

$    3,096,094 

 

 

$    2,961,835 

 

Asphalt 2

733,182 

 

 

622,074 

 

 

512,310 

 

Concrete

401,999 

 

 

417,745 

 

 

330,125 

 

Calcium

8,110 

 

 

7,740 

 

 

8,860 

 

Segment sales

$    4,656,940 

 

 

$    4,143,653 

 

 

$    3,813,130 

 

Aggregates intersegment sales

(274,071)

 

 

(253,357)

 

 

(220,463)

 

Total revenues

$    4,382,869 

 

 

$    3,890,296 

 

 

$    3,592,667 

 

Gross Profit

 

 

 

 

 

 

 

 

Aggregates 3

$       991,858 

 

 

$       854,524 

 

 

$       863,811 

 

Asphalt 3

56,480 

 

 

91,313 

 

 

96,608 

 

Concrete 3

49,893 

 

 

45,201 

 

 

24,992 

 

Calcium

2,714 

 

 

2,475 

 

 

3,474 

 

Total

$    1,100,945 

 

 

$       993,513 

 

 

$       988,885 

 

Depreciation, Depletion, Accretion and Amortization (DDA&A)

 

 

 

 

 

 

 

 

Aggregates

$       281,641 

 

 

$       245,151 

 

 

$       236,472 

 

Asphalt

31,290 

 

 

25,400 

 

 

16,797 

 

Concrete

12,539 

 

 

13,822 

 

 

12,129 

 

Calcium

272 

 

 

677 

 

 

774 

 

Other

20,504 

 

 

20,915 

 

 

18,768 

 

Total

$       346,246 

 

 

$       305,965 

 

 

$       284,940 

 

Capital Expenditures 4

 

 

 

 

 

 

 

 

Aggregates

$       422,175 

 

 

$       421,989 

 

 

$       297,737 

 

Asphalt

38,154 

 

 

12,970 

 

 

29,002 

 

Concrete

12,291 

 

 

25,176 

 

 

10,047 

 

Calcium

22 

 

 

78 

 

 

534 

 

Corporate

2,587 

 

 

4,020 

 

 

7,621 

 

Total

$       475,229 

 

 

$       464,233 

 

 

$       344,941 

 

Identifiable Assets 5

 

 

 

 

 

 

 

 

Aggregates

$    8,887,749 

 

 

$    8,409,505 

 

 

$    7,589,225 

 

Asphalt

527,226 

 

 

426,575 

 

 

259,514 

 

Concrete

266,581 

 

 

271,818 

 

 

192,673 

 

Calcium

3,942 

 

 

4,428 

 

 

4,959 

 

Total identifiable assets

$    9,685,498 

 

 

$    9,112,326 

 

 

$    8,046,371 

 

General corporate assets

102,228 

 

 

245,919 

 

 

157,085 

 

Cash and cash equivalents and restricted cash

44,404 

 

 

146,646 

 

 

268,019 

 

Total assets

$    9,832,130 

 

 

$    9,504,891 

 

 

$    8,471,475 

 





 

1

Includes product sales, as well as freight & delivery costs that we pass along to our customers, and service revenues (see Note 2) related to aggregates.

2

Includes product sales, as well as service revenues (see Note 2) from our asphalt construction paving business.

3

The 2017 and 2016 amounts have been revised as a result of our adoption of ASU 2017-07 as described in Note 1 under the captions New Accounting Standards and Accounting Standards Recently Adopted.

4

Capital expenditures include capitalized replacements of and additions to property, plant & equipment, including capitalized leases, renewals and betterments. Capital expenditures exclude property, plant & equipment obtained by business acquisitions.

5

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



v3.10.0.1
SUPPLEMENTAL CASH FLOW INFORMATION
12 Months Ended
Dec. 31, 2018
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]  
SUPPLEMENTAL CASH FLOW INFORMATION

NOTE 16: SUPPLEMENTAL CASH FLOW INFORMATION

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





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Cash Payments

 

 

 

 

 

 

 

 

Interest (exclusive of amount capitalized)

$      128,217 

 

 

$      285,801 

 

 

$     135,039 

 

Income taxes

(65,968)

 

 

125,135 

 

 

102,849 

 

Noncash Investing and Financing Activities

 

 

 

 

 

 

 

 

Accrued liabilities for purchases of property,

 

 

 

 

 

 

 

 

  plant & equipment

$        37,116 

 

 

$        31,267 

 

 

$       26,676 

 

Amounts referable to business acquisitions

 

 

 

 

 

 

 

 

  Liabilities assumed 1

5,405 

 

 

3,876 

 

 

798 

 

  Consideration payable to seller

4,500 

 

 

9,681 

 

 

 

  Fair value of noncash assets and liabilities exchanged

 

 

9,900 

 

 

 





 

1

The 2018 amount includes adjustments to 2017 acquisitions.

 

 

v3.10.0.1
ASSET RETIREMENT OBLIGATIONS
12 Months Ended
Dec. 31, 2018
ASSET RETIREMENT OBLIGATIONS [Abstract]  
ASSET RETIREMENT OBLIGATIONS

NOTE 17: 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.

We record all AROs for which we have legal obligations for land reclamation at estimated fair value. These AROs relate to our underlying land parcels, including both owned properties and mineral leases. For the years ended December 31, we recognized ARO operating costs related to accretion of the liabilities and depreciation of the assets as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

ARO Operating Costs

 

 

 

 

 

 

 

 

Accretion

$        10,776 

 

 

$        11,415 

 

 

$       11,059 

 

Depreciation

6,034 

 

 

6,302 

 

 

6,353 

 

Total

$        16,810 

 

 

$        17,717 

 

 

$       17,412 

 



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

Reconciliations of the carrying amounts of our AROs for the years ended December 31 are as follows:





 

 

 

 

 



 

 

 

 

 

in thousands

2018

 

 

2017

 

Asset Retirement Obligations

 

 

 

 

 

Balance at beginning of year

$      218,117 

 

 

$      223,872 

 

  Liabilities incurred

20 

 

 

1,920 

 

  Liabilities settled

(13,558)

 

 

(21,477)

 

  Accretion expense

10,776 

 

 

11,415 

 

  Revisions, net

10,371 

 

 

2,387 

 

Balance at end of year

$      225,726 

 

 

$      218,117 

 



ARO liabilities settled during 2018 and 2017 include $6,934,000 and $11,578,000, respectively, of reclamation activities required under a development agreement and conditional use permits at two adjacent aggregates sites on owned property in Southern California. The reclamation required under the development agreement will result in the restoration of 90 acres of previously mined property to conditions suitable for commercial and retail development.

 

 

v3.10.0.1
GOODWILL AND INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2018
GOODWILL AND INTANGIBLE ASSETS [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

NOTE 18: GOODWILL AND INTANGIBLE ASSETS

Acquired identifiable intangible assets are classified into three categories: (1) goodwill, (2) intangible assets with finite lives subject to amortization and (3) intangible assets with indefinite lives. Goodwill and intangible assets with indefinite lives are not amortized; rather, they are reviewed for impairment at least annually. For additional information about our policies on impairment reviews, see Note 1 under the captions Goodwill Impairment, and Impairment of Long-lived Assets excluding Goodwill.

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 years ended December 31, 2018, 2017 and 2016. Accumulated goodwill impairment losses amount to $252,664,000 in the Calcium segment.

We have four reportable segments organized around our principal product lines: Aggregates, Asphalt, Concrete and Calcium. Changes in the carrying amount of goodwill by reportable segment for the three years ended December 31, 2018 are as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Aggregates

 

 

Asphalt

 

 

Concrete

 

 

Calcium

 

 

Total

 

Goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals at December 31, 2016

$   3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,094,824 

 

Goodwill of acquired businesses 1

27,497 

 

 

 

 

 

 

 

 

27,497 

 

Totals at December 31, 2017

$   3,030,688 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,122,321 

 

Goodwill of acquired businesses 1

43,075 

 

 

 

 

 

 

 

 

43,075 

 

Totals at December 31, 2018

$   3,073,763 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,165,396 

 





 

1

See Note 19 for a summary of acquisitions.



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.

INTANGIBLE ASSETS

Intangible assets acquired in business combinations are stated at their fair value determined as of the date of acquisition. Costs incurred to renew or extend the life of existing intangible assets are capitalized. These capitalized renewal/extension costs were immaterial for the years presented. Intangible assets consist of contractual rights in place (primarily permitting and zoning rights), noncompetition agreements, favorable lease agreements, customer relationships and trade names and trademarks. Intangible assets acquired individually or otherwise obtained outside a business combination consist primarily of permitting, permitting compliance and zoning rights and are stated at their historical cost less accumulated amortization.

See Note 19 for the details of the intangible assets acquired in business acquisitions during 2018, 2017 and 2016. Amortization of finite-lived intangible assets is computed based on the estimated life of the intangible assets. Contractual rights in place associated with aggregates reserves are amortized using the unit-of-sales method based on estimated recoverable units. Other intangible assets are amortized principally by the straight-line method. Intangible assets are reviewed for impairment when events or circumstances indicate that the carrying amount may not be recoverable. There were no charges for impairment of intangible assets in 2018 and 2017. During 2016, we incurred $8,180,000 of impairment charges related to intangible Aggregates segment assets.

The gross carrying amount and accumulated amortization by major intangible asset class for the years ended December 31 are summarized below:





 

 

 

 

 

 



 

 

 

 

 

 

in thousands

2018

 

 

2017

 

Gross Carrying Amount

 

 

 

 

 

Contractual rights in place

$    1,107,838 

 

 

$  1,050,816 

 

Noncompetition agreements

7,667 

 

 

7,067 

 

Favorable lease agreements

9,479 

 

 

9,479 

 

Permitting, permitting compliance and zoning rights

126,538 

 

 

119,002 

 

Other 1

4,517 

 

 

4,616 

 

Total gross carrying amount

$    1,256,039 

 

 

$  1,190,980 

 

Accumulated Amortization

 

 

 

 

 

Contractual rights in place

$      (122,100)

 

 

$     (94,534)

 

Noncompetition agreements

(4,212)

 

 

(2,440)

 

Favorable lease agreements

(3,533)

 

 

(3,179)

 

Permitting, permitting compliance and zoning rights

(27,464)

 

 

(24,352)

 

Other 1

(3,352)

 

 

(2,845)

 

Total accumulated amortization

$      (160,661)

 

 

$   (127,350)

 

Total Intangible Assets Subject to Amortization, net

$    1,095,378 

 

 

$  1,063,630 

 

Intangible Assets with Indefinite Lives

 

 

 

Total Intangible Assets, net

$    1,095,378 

 

 

$  1,063,630 

 

Amortization Expense for the Year

$         34,924 

 

 

$       23,765 

 





 

1

Includes customer relationships and tradenames and trademarks.



Estimated amortization expense for the five years subsequent to December 31, 2018 is as follows:





 

 



 

 

in thousands

 

 

Estimated Amortization Expense for Five Subsequent Years

 

2019

$        34,973 

 

2020

33,698 

 

2021

31,695 

 

2022

29,146 

 

2023

28,635 

 

 

 

 

v3.10.0.1
ACQUISITIONS AND DIVESTITURES
12 Months Ended
Dec. 31, 2018
ACQUISITIONS AND DIVESTITURES [Abstract]  
ACQUISITIONS AND DIVESTITURES

NOTE 19: ACQUISITIONS AND DIVESTITURES

BUSINESS ACQUISITIONS

2018 business acquisitionsDuring 2018, we purchased the following operations for total consideration of $219,863,000 ($215,363,000 cash and $4,500,000 payable):

§

Alabama — aggregates, asphalt mix and construction paving operations

§

California — aggregates and asphalt mix operations

§

Texas — aggregates rail yards, asphalt mix and construction paving operations

The 2018 acquisitions listed above are reported in our consolidated financial statements as of their respective acquisition dates. None of these acquisitions are material to our results of operations or financial position either individually or collectively. The fair value of consideration transferred for these business acquisitions and the preliminary amounts assigned (pending appraisals of contractual rights in place and property, plant & equipment) to assets acquired and liabilities assumed, are summarized below:





 

 

 

 

 



 

 

 

 

 

in thousands

2018

 

Fair Value of Purchase Consideration

 

 

 

 

 

Cash

 

 

 

$     215,363 

 

Payable to seller

 

 

 

4,500 

 

Total fair value of purchase consideration

 

 

 

$     219,863 

 

Identifiable Assets Acquired and Liabilities Assumed

 

 

 

 

 

Accounts and notes receivable, net

 

 

 

$       15,402 

 

Inventories

 

 

 

11,874 

 

Other current assets

 

 

 

661 

 

Property, plant & equipment

 

 

 

150,274 

 

Other intangible assets

 

 

 

 

 

  Contractual rights in place

 

 

 

44,163 

 

Deferred income taxes, net

 

 

 

(32,871)

 

Liabilities assumed

 

 

 

(11,965)

 

Net identifiable assets acquired

 

 

 

$     177,538 

 

Goodwill

 

 

 

$       42,325 

 



As a result of the 2018 acquisitions, we recognized $44,163,000 of amortizable intangible assets (contractual rights in place). The contractual rights in place will be amortized against earnings ($43,072,000 - straight-line over a weighted-average 19.9 years and $1,080,000 - units of sales in excess of 30.0 years) and $7,385,000 will be deductible for income tax purposes over 15 years. Of the $42,325,000 of goodwill recognized, $4,468,000 will be deductible for income tax purposes over 15 years, and $32,871,000 represents the balance of deferred tax liabilities generated from carrying over the seller’s tax basis in the assets acquired.

2017 business acquisitionsDuring 2017 (excluding the assets immediately divested in the December 2017 Aggregates USA acquisition for $287,292,000), we purchased the following operations related to material business acquisitions for total consideration of $793,523,000:

§

California — aggregates and ready-mixed concrete operations

§

Florida — aggregates operations

§

Georgia — aggregates operations

§

South Carolina — aggregates operations

§

Tennessee — asphalt mix and construction paving operations

The amounts of total revenues and net earnings for the material business acquisitions noted above are included in our Consolidated Statement of Comprehensive Income for the year ended December 31, 2017, as follows:



 

 

 

 

 



 

 

 

 

 

in thousands

2017

 

Actual Results

 

 

 

 

 

Total revenues

 

 

 

$     162,462 

 

Net earnings

 

 

 

11,830 

 



The unaudited pro forma financial information in the table below summarizes the results of operations for Vulcan and these material business acquisitions as if they were combined as of January 1, 2016. The 2016 financial information does not reflect any cost savings, operating efficiencies or synergies as a result of these combinations. Transactions between Vulcan and these businesses during the periods presented in the pro forma financial information were immaterial and have been eliminated as if the companies were consolidated affiliates during the following periods:



 

 

 

 

 



 

 

 

 

 

in thousands

2017

 

 

2016

 

Supplemental Pro Forma Results

 

 

 

 

 

Total revenues

$  4,015,891 

 

 

$  3,882,257 

 

Net earnings

610,494 

 

 

433,431 

 



The unaudited pro forma results above may not be indicative of the results that would have been obtained had these acquisitions occurred at the beginning of 2016, nor does it intend to be a projection of future results.

The fair value of consideration transferred for these material business acquisitions and the preliminary amounts assigned as of December 31, 2017 (immaterial adjustments were recorded in 2018 including an increase to goodwill of $750,000) to assets acquired and liabilities assumed, are summarized below:



 

 

 

 

 



 

 

 

 

 

in thousands

2017

 

Fair Value of Purchase Consideration

 

 

 

 

 

Cash

 

 

 

$  1,072,978 

 

Payable to seller

 

 

 

7,837 

 

Total fair value of purchase consideration

 

 

 

$  1,080,815 

 

Identifiable Assets Acquired and Liabilities Assumed

 

 

 

 

 

Accounts and notes receivable, net

 

 

 

$       14,955 

 

Inventories

 

 

 

21,679 

 

Other current assets

 

 

 

608 

 

Investments

 

 

 

3,590 

 

Property, plant & equipment

 

 

 

433,606 

 

Other intangible assets

 

 

 

 

 

  Contractual rights in place

 

 

 

295,482 

 

Liabilities assumed

 

 

 

(3,894)

 

Net identifiable assets acquired and retained

 

 

 

$     766,026 

 

Goodwill

 

 

 

$       27,497 

 

Net Assets Divested Immediately Upon Acquisition

 

 

 

$     287,292 

 



Additionally, during 2017 we acquired the following operations related to immaterial business acquisitions for $48,490,000 of consideration ($36,746,000 cash, $1,844,000 payable and $9,900,000 of fair value of assets swapped):

§

Arizona — asphalt mix operations

§

Illinois — aggregates operations

§

New Mexico — aggregates operations

§

Tennessee — aggregates operations

§

Virginia — aggregates and ready-mixed concrete operations

As a collective result of the 2017 acquisitions, we recognized $309,112,000 of amortizable intangible assets (primarily contractual rights in place).The contractual rights in place will be amortized against earnings ($73,879,000 - straight-line over a weighted-average 19.3 years and $235,133,000 - units of sales over an estimated 54.7 years) and deductible for income tax purposes over 15 years. Of the $28,247,000 of goodwill recognized, all will be deductible for income tax purposes over 15 years.

2016 business acquisitionsDuring 2016, the following operations were acquired for $33,287,000 of consideration ($32,537,000 cash and $750,000 payable):

§

Georgia — aggregates distribution and logistical operations

§

New Mexico — asphalt mix operations

§

Texas — aggregates operations

None of the 2016 acquisitions listed above are material to our results of operations or financial position either individually or collectively. As a result of these 2016 acquisitions, we recognized $16,670,000 of amortizable intangible assets ($15,213,000 contractual rights in place and $1,457,000 of noncompetition agreement).The contractual rights in place will be amortized against earnings ($6,798,000 - straight-line over 20 years and $8,415,000 - units of sales over an estimated 20 years) and deductible for income tax purposes over 15 years.

DIVESTITURES AND PENDING DIVESTITURES

In 2018, we sold:

§

First quarter — ready-mixed concrete operations in Georgia resulting in a pretax gain of $2,929,000 (we retained all real property which is leased to the buyer, and obtained a long-term aggregates supply agreement)

In 2017, we sold:

§

Fourth quarter — swapped ready-mixed concrete operations in Arizona (fair value of $9,900,000 and book value of $1,879,000) for asphalt mix operations in Arizona resulting in a pretax gain of $8,021,000

§

Fourth quarter — as required by the Department of Justice, we immediately divested certain assets obtained in the Aggregates USA acquisition resulting in no gain

In 2016, we sold:

§

Fourth quarter — surplus land in California and Virginia for net pretax cash proceeds of $19,185,000 resulting in pretax gains of $11,871,000

§

Fourth quarter — plant relocation reimbursement in Virginia for net pretax cash proceeds of $6,000,000 resulting in a pretax gain of $4,335,000 (this item is presented within other operating expense in the accompanying Consolidated Statement of Comprehensive Income)

No assets met the criteria for held for sale at December 31, 2018, 2017 or 2016.

 

 

v3.10.0.1
UNAUDITED SUPPLEMENTARY DATA
12 Months Ended
Dec. 31, 2018
UNAUDITED SUPPLEMENTARY DATA [Abstract]  
UNAUDITED SUPPLEMENTARY DATA

NOTE 20: UNAUDITED SUPPLEMENTARY DATA

The following is a summary of selected quarterly financial information (unaudited) for each of the years ended December 31, 2018 and 2017:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



2018

 



Three Months Ended

 

in thousands, except per share data

March 31

 

June 30

 

Sept 30

 

Dec 31

 

Total revenues

$     854,474 

 

$  1,200,151 

 

$  1,240,197 

 

$  1,088,047 

 

Gross profit

159,334 

 

323,184 

 

343,142 

 

275,285 

 

Operating earnings

81,195 

 

230,843 

 

249,184 

 

186,491 

 

Earnings from continuing operations

53,395 

 

160,302 

 

179,864 

 

124,280 

 

Net earnings

52,979 

 

159,652 

 

179,151 

 

124,023 

 

Basic earnings per share from continuing operations

$           0.40 

 

$           1.21 

 

$           1.36 

 

$           0.94 

 

Diluted earnings per share from continuing operations

$           0.40 

 

$           1.20 

 

$           1.34 

 

$           0.93 

 

Basic net earnings per share

$           0.40 

 

$           1.21 

 

$           1.35 

 

$           0.94 

 

Diluted net earnings per share

$           0.39 

 

$           1.19 

 

$           1.34 

 

$           0.93 

 







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



2017

 



Three Months Ended

 

in thousands, except per share data

March 31

 

June 30

 

Sept 30

 

Dec 31

 

Total revenues

$     787,328 

 

$  1,030,763 

 

$  1,094,715 

 

$     977,490 

 

Gross profit

158,221 

 

290,017 

 

303,758 

 

241,517 

 

Operating earnings

70,388 

 

191,976 

 

227,478 

 

149,202 

 

Earnings from continuing operations

43,523 

 

111,749 

 

110,150 

 

327,969 

 

Net earnings

44,921 

 

120,139 

 

108,579 

 

327,546 

 

Basic earnings per share from continuing operations

$           0.33 

 

$           0.84 

 

$           0.83 

 

$           2.47 

 

Diluted earnings per share from continuing operations

$           0.32 

 

$           0.83 

 

$           0.82 

 

$           2.43 

 

Basic net earnings per share

$           0.34 

 

$           0.91 

 

$           0.82 

 

$           2.47 

 

Diluted net earnings per share

$           0.33 

 

$           0.89 

 

$           0.81 

 

$           2.43 

 



 

 

v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
NATURE OF OPERATIONS

NATURE OF OPERATIONS

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

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

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

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

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



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Discontinued Operations

 

 

 

 

 

 

 

 

Pretax earnings (loss)

$        (2,748)

 

 

$       12,959 

 

 

$        (4,877)

 

Income tax (expense) benefit

712 

 

 

(5,165)

 

 

1,962 

 

Earnings (loss) on discontinued operations,

 

 

 

 

 

 

 

 

  net of tax

$        (2,036)

 

 

$         7,794 

 

 

$        (2,915)

 



Discontinued operations include charges related to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business. The 2017 results also reflect insurance recoveries for past legal expenses associated with the Texas Brine matter (see Note 12). There were no revenues from discontinued operations for the years presented.

PRINCIPLES OF CONSOLIDATION

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of Vulcan Materials Company and all our majority or
wholly-owned subsidiary companies. Partially-owned affiliates are either consolidated or accounted for at cost or as equity investments depending on the level of ownership interest or our ability to exercise control over the affiliates’ operations. All intercompany transactions and accounts have been eliminated in consolidation.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS

The preparation of these financial statements in conformity with accounting principles generally accepted (GAAP) in the United States of America requires us to make estimates and judgments that affect reported amounts of assets, liabilities, revenues and expenses, and the related disclosures of contingent assets and contingent liabilities at the date of the financial statements. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current conditions and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for our judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ materially from these estimates. The most significant estimates included in the preparation of these financial statements are related to goodwill and long-lived asset impairments, business combinations and purchase price allocation, pension and other postretirement benefits, environmental compliance, claims and litigation including self-insurance, and income taxes.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS

We account for business combinations under the acquisition method of accounting. The purchase price of an acquisition is allocated to the underlying identifiable assets acquired and liabilities assumed based on their respective fair values. The purchase price is determined based on the fair value of consideration transferred to and liabilities assumed from the seller as of the date of acquisition. We allocate the purchase price to the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed as of the date of acquisition. Goodwill is recorded for the excess of the purchase price over the net of the fair value of the identifiable assets acquired and liabilities assumed.

Determining the fair values of assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction, and therefore represents an exit price. A fair value measurement assumes the highest and best use of the asset by market participants.

We may adjust the amounts recognized in an acquisition during a measurement period after the acquisition date. Any such adjustments are the result of subsequently obtaining additional information that existed at the acquisition date regarding the assets acquired or the liabilities assumed. Measurement period adjustments are generally recorded as increases or decreases to goodwill, if any, recognized in the transaction. The cumulative impact of measurement period adjustments on depreciation, amortization and other income statement items are recognized in the period the adjustment is determined.

FOREIGN CURRENCY TRANSACTIONS

FOREIGN CURRENCY TRANSACTIONS

The U.S. dollar is the functional currency for all of our operations. For our non-U.S. subsidiaries, local currency inventories and long-term assets such as property, plant & equipment and intangibles are remeasured into U.S. dollars at approximate rates prevailing when acquired; all other assets and liabilities are remeasured at year-end exchange rates. Inventories charged to cost of sales and depreciation are remeasured at historical rates; all other income and expense items are remeasured at average exchange rates prevailing during the year. Gains and losses which result from remeasurement are included in earnings and are not material for the years presented.

CASH EQUIVALENTS

CASH EQUIVALENTS

We classify as cash equivalents all highly liquid securities with a maturity of three months or less at the time of purchase. The carrying amount of these securities approximates fair value due to their short-term maturities.

RESTRICTED CASH

RESTRICTED CASH

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

ACCOUNTS AND NOTES RECEIVABLE

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable from customers result from our extending credit to trade customers for the purchase of our products. The terms generally provide for payment within 15 days of the month following invoice. On occasion, when necessary to conform to regional industry practices, we sell product under extended payment terms, which may result in either secured or unsecured short-term notes; or, on occasion, notes with durations of less than one year are taken in settlement of existing accounts receivable. Other accounts and notes receivable result from short-term transactions (less than one year) other than the sale of our products, such as interest receivable; insurance claims; freight claims; tax refund claims; bid deposits or rents receivable. As of December 31, 2018, income tax receivables of $922,000 are included in other accounts and notes receivable in the accompanying Consolidated Balance Sheet. There were similar receivables of $106,980,000  ($106,000,000 related to 2017 federal estimated payments which were refunded early 2018) as of December 31, 2017.

Receivables are aged and appropriate allowances for doubtful accounts and bad debt expense are recorded. Bad debt expense (net of recoveries) for the years ended December 31 was as follows: 2018$251,000,  2017$812,000 and 2016$(1,190,000). Write-offs of accounts receivables for the years ended December 31 were as follows: 2018$1,291,000,  2017$1,384,000 and 2016$1,544,000. The bad debt recovery in 2016 relates to the collection of previously reserved receivables primarily attributable to the 2014 sale of our Florida area concrete and cement businesses.

INVENTORIES

INVENTORIES

Inventories and supplies are stated at the lower of cost or net realizable value. We use the last-in, first-out (LIFO) method of valuation for most of our inventories because it results in a better matching of costs with revenues. Such costs include fuel, parts and supplies, raw materials, direct labor and production overhead. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on our estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. Substantially all operating supplies inventory is carried at average cost. For additional information about our inventories see Note 3.

PROPERTY, PLANT & EQUIPMENT

PROPERTY, PLANT & EQUIPMENT

Property, plant & equipment are carried at cost less accumulated depreciation, depletion and amortization. The cost of properties held under capital leases, if any, is equal to the lower of the net present value of the minimum lease payments or the fair value of the leased property at the inception of the lease.

Capitalized software costs of $4,155,000 and $4,446,000 are reflected in net property, plant & equipment as of December 31, 2018 and 2017, respectively. We capitalized software costs for the years ended December 31 as follows: 2018 — $2,213,000, 2017 — $1,988,000 and 2016 — $152,000.

For additional information about our property, plant & equipment see Note 4.

REPAIR AND MAINTENANCE

REPAIR AND MAINTENANCE

Repair and maintenance costs generally are charged to operating expense as incurred. Renewals and betterments that add materially to the utility or useful lives of property, plant & equipment are capitalized and subsequently depreciated. Actual costs for planned major maintenance activities, related primarily to periodic overhauls on our oceangoing vessels, are capitalized and amortized to the next overhaul.

DEPRECIATION, DEPLETION, ACCRETION AND AMORTIZATION

DEPRECIATION, DEPLETION, ACCRETION AND AMORTIZATION

Depreciation is generally computed by the straight-line method at rates based on the estimated service lives of the various classes of assets, which include machinery and equipment (3  to 35 years), buildings (7 to 20 years) and land improvements (8 to 20 years). Capitalized software costs are included in machinery and equipment and are depreciated on a straight-line basis beginning when the software project is substantially complete.

Cost depletion on depletable land is computed by the unit-of-sales method based on estimated recoverable units.

Accretion reflects the period-to-period increase in the carrying amount of the liability for asset retirement obligations. It is computed using the same credit-adjusted, risk-free rate used to initially measure the liability at fair value.

Leaseholds are amortized over varying periods not in excess of applicable lease terms or estimated useful lives.

Amortization of intangible assets subject to amortization is computed based on the estimated life of the intangible assets.
A significant portion of our intangible assets is contractual rights in place associated with zoning, permitting and other rights to access and extract aggregates reserves. Contractual rights in place associated with aggregates reserves are amortized using the unit-of-sales method based on estimated recoverable units. Other intangible assets are amortized principally by the straight-line method.

Depreciation, depletion, accretion and amortization expense for the years ended December 31 is outlined below:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Depreciation, Depletion, Accretion and Amortization

 

 

 

 

 

 

 

 

Depreciation

$      276,814 

 

 

$     250,835 

 

 

$     238,237 

 

Depletion

23,260 

 

 

19,342 

 

 

17,812 

 

Accretion

10,776 

 

 

11,415 

 

 

11,059 

 

Amortization of leaseholds

472 

 

 

608 

 

 

267 

 

Amortization of intangibles

34,924 

 

 

23,765 

 

 

17,565 

 

Total

$      346,246 

 

 

$     305,965 

 

 

$     284,940 

 



DERIVATIVE INSTRUMENTS

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 use derivative instruments for trading or other speculative purposes.

The accounting for gains and losses that result from changes in the fair value of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationship. Changes in the fair value of interest rate swap cash flow hedges are recorded in accumulated other comprehensive income (AOCI) and are reclassified into interest expense in the same period the hedged items affect earnings. Changes in the fair value of 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. Additional disclosures about our derivative instruments are presented in Note 5.

FAIR VALUE MEASUREMENTS

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 at December 31 subject to fair value measurement on a recurring basis are summarized below:





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Level 1 Fair Value

in thousands

2018

 

 

2017

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

   Mutual funds

$       19,164 

 

 

$     20,348 

 

Total

$       19,164 

 

 

$     20,348 

 





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Level 2 Fair Value

in thousands

2018

 

 

2017

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

   Money market mutual fund

$        1,015 

 

 

$       1,203 

 

Total

$        1,015 

 

 

$       1,203 

 



We have two Rabbi Trusts for the purpose of providing a level of security for the employee nonqualified retirement and deferred compensation plans and for the directors' nonqualified deferred compensation plans. The fair values of these investments are estimated using a market approach. The Level 1 investments include mutual funds 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 Trusts’ investments were $(2,741,000),  $2,441,000 and $2,741,000 for the years ended December 31, 2018, 2017 and 2016, respectively. The portions of the net gains (losses) related to investments still held by the Rabbi Trusts at December 31, 2018, 2017 and 2016 were $(4,386,000),  $(3,618,000) and $1,599,000, respectively.

The carrying values of our cash equivalents, restricted cash, accounts and notes receivable, short-term debt, trade payables and accruals, and all other current liabilities approximate their fair values because of the short-term nature of these instruments. Additional disclosures for derivative instruments and interest-bearing debt are presented in Notes 5 and 6, respectively.

GOODWILL IMPAIRMENT

GOODWILL IMPAIRMENT

Goodwill represents the excess of the cost of net assets acquired in business combinations over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. Goodwill impairment exists when the fair value of a reporting unit is less than its carrying amount. As of December 31, 2018, goodwill totaled $3,165,396,000, as compared to $3,122,321,000 at December 31, 2017. Goodwill represents 32% of total assets at December 31, 2018 compared to 33% at December 31, 2017.

Goodwill is tested for impairment annually, as of November 1, or more frequently whenever events or changes in circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill is tested for impairment at the reporting unit level, one level below our operating segments. We have four operating segments organized around our principal product lines: Aggregates, Asphalt, Concrete and Calcium. Within these four operating segments, we have identified 17 reporting units (of which 9 carry goodwill) based primarily on geographic location. We have the option of either assessing qualitative factors to determine whether it is more likely than not that the carrying value of our reporting units exceeds their respective fair value or proceeding directly to a quantitative test. We elected to perform the quantitative impairment test for all years presented.

The quantitative impairment test compares the fair value of a reporting unit to its carrying value, including goodwill. If the fair value exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. However, if the carrying value of a reporting unit exceeds its fair value, we recognize an impairment loss equal to that excess.

The results of the annual impairment tests performed as of November 1, 2018, 2017 and 2016 indicated that the fair values of all reporting units with goodwill substantially exceeded their carrying values. Accordingly, there were no charges for goodwill impairment in the years ended December 31, 2018, 2017 or 2016.

We estimate the fair values of the reporting units using both an income approach (which involves discounting estimated future cash flows) and a market approach (which involves the application of revenue and EBITDA multiples of comparable companies). Determining the fair value of our reporting units involves the use of significant estimates and assumptions and considerable management judgment. We base our fair value estimates on assumptions we believe to be reasonable at the time, but such assumptions are subject to inherent uncertainty and actual results may differ. Changes in key assumptions or management judgment with respect to a reporting unit or its prospects, which may result from a change in market conditions, market trends, interest rates or other factors outside of our control, or underperformance relative to historical or projected operating results, could result in a significantly different estimate of the fair value of our reporting units, which could result in an impairment charge in the future.

For additional information about goodwill see Note 18.

IMPAIRMENT OF LONG-LIVED ASSETS EXCLUDING GOODWILL

IMPAIRMENT OF LONG-LIVED ASSETS EXCLUDING GOODWILL

We evaluate the carrying value of long-lived assets, including intangible assets subject to amortization, when events and circumstances indicate that the carrying value may not be recoverable. The carrying value of long-lived assets is considered impaired when the estimated undiscounted cash flows from such assets are less than their carrying value. In that event, we recognize a loss equal to the amount by which the carrying value exceeds the fair value. Fair value is determined primarily by using a discounted cash flow methodology that requires considerable judgment and assumptions. Our estimate of net future cash flows is based on historical experience and assumptions of future trends, which may be different from actual results. We periodically review the appropriateness of the estimated useful lives of our long-lived assets.

We test long-lived assets for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, our long-lived asset impairment test is at a significantly lower level than the level at which we test goodwill for impairment. In markets where we do not produce downstream products (e.g., asphalt mix and ready-mixed concrete), the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market. Conversely, in vertically integrated markets, the cash flows of our downstream and upstream businesses are not largely independently identifiable as the selling price of the upstream products (aggregates) determines the profitability of the downstream business.

As of December 31, 2018, net property, plant & equipment represents 43% of total assets, while net other intangible assets represents 11% of total assets. During 2018 and 2017, we recorded no losses on impairment of long-lived assets. During 2016, we recorded a $10,506,000 loss on impairment of long-lived assets resulting from the termination of a nonstrategic aggregates lease and the write off of nonrecoverable project costs related to two Aggregates segment capital projects that we no longer intend to complete.

For additional information about long-lived assets and intangible assets see Notes 4 and 18.

STRIPPING COSTS

STRIPPING COSTS

In the mining industry, the costs of removing overburden and waste materials to access mineral deposits are referred to as stripping costs.

Stripping costs incurred during the production phase are considered costs of extracted minerals under our inventory costing system, inventoried, and recognized in cost of sales in the same period as the revenue from the sale of the inventory. The production stage is deemed to begin when the activities, including removal of overburden and waste material that may contain incidental saleable material, required to access the saleable product are complete. Stripping costs considered as production costs and included in the costs of inventory produced were $78,911,000 in 2018, $65,944,000 in 2017 and $55,987,000 in 2016.

Conversely, stripping costs incurred during the development stage of a mine (pre-production stripping) are excluded from our inventory cost. Pre-production stripping costs are capitalized and reported within other noncurrent assets in our accompanying Consolidated Balance Sheets. Capitalized pre-production stripping costs are expensed over the productive life of the mine using the unit-of-sales method. Pre-production stripping costs included in other noncurrent assets were $95,800,000 as of December 31, 2018 and $81,241,000 as of December 31, 2017. This year-over-year increase resulted primarily from the removal of overburden at a greenfield site in California.

RECLAMATION COSTS

RECLAMATION COSTS

Reclamation costs resulting from normal use of long-lived assets are recognized over the period the asset is in use when there is a legal obligation to incur these costs upon retirement of the assets. Additionally, reclamation costs resulting from normal use under a mineral lease are recognized over the lease term when there is a legal obligation to incur these costs upon expiration of the lease. The obligation, which cannot be reduced by estimated offsetting cash flows, is recorded at fair value as a liability at the obligating event date and is accreted through charges to operating expenses. This fair value is also capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. If the obligation is settled for other than the carrying amount of the liability, a gain or loss is recognized on settlement.

To determine the fair value of the obligation, we estimate the cost (including a reasonable profit margin) for a third party to perform the legally required reclamation tasks. This cost is then increased for both future estimated inflation and an estimated market risk premium related to the estimated years to settlement. Once calculated, this cost is discounted to fair value using present value techniques with a credit-adjusted, risk-free rate commensurate with the estimated years to settlement.

In estimating the settlement date, we evaluate the current facts and conditions to determine the most likely settlement date. If this evaluation identifies alternative estimated settlement dates, we use a weighted-average settlement date considering the probabilities of each alternative.

We review reclamation obligations at least annually for a revision to the cost or a change in the estimated settlement date. Additionally, reclamation obligations are reviewed in the period that a triggering event occurs that would result in either a revision to the cost or a change in the estimated settlement date. Examples of events that would trigger a change in the cost include a new reclamation law or amendment of an existing mineral lease. Examples of events that would trigger a change in the estimated settlement date include the acquisition of additional reserves or the closure of a facility.

The carrying value of these obligations was $225,726,000 as of December 31, 2018 and $218,117,000 as of December 31, 2017. For additional information about reclamation obligations (referred to in our financial statements as asset retirement obligations) see Note 17.

ENVIRONMENTAL COMPLIANCE

ENVIRONMENTAL COMPLIANCE

Our environmental compliance costs are undiscounted and include the cost of ongoing monitoring programs, the cost of remediation efforts and other similar costs. We accrue costs for environmental assessment and remediation efforts when we determine that a liability is probable and we can reasonably estimate the cost. At the early stages of a remediation effort, environmental remediation liabilities are not easily quantified due to the uncertainties of various factors. The range of an estimated remediation liability is defined and redefined as events in the remediation effort occur, but generally liabilities are recognized no later than the completion of the remedial feasibility study.

When we can estimate a range of probable loss, we accrue the most likely amount. If no amount in the range of probable loss is considered most likely, the minimum loss in the range is accrued. As of December 31, 2018, the spread between the amount accrued and the maximum loss in the range for all sites for which a range can be reasonably estimated was $3,105,000 —  this amount does not represent our maximum exposure to loss for all environmental remediation obligations as it excludes those sites for which a range of loss cannot be reasonably estimated at this time. Accrual amounts may be based on technical cost estimations or the professional judgment of experienced environmental managers. Our Safety, Health and Environmental Affairs Management Committee routinely reviews cost estimates and key assumptions in response to new information, such as the kinds and quantities of hazardous substances, available technologies and changes to the parties participating in the remediation efforts. However, a number of factors, including adverse agency rulings and encountering unanticipated conditions as remediation efforts progress, may cause actual results to differ materially from accrued costs.

For additional information about environmental compliance costs see Note 8.

CLAIMS AND LITIGATION INCLUDING SELF-INSURANCE

CLAIMS AND LITIGATION INCLUDING SELF-INSURANCE

We are involved with claims and litigation, including items covered under our self-insurance program. We are self-insured for losses related to workers' compensation up to $2,000,000 per occurrence and automotive and general/product liability up to $3,000,000 per occurrence. We have excess coverage on a per occurrence basis beyond these retention levels.

Under our self-insurance program, we aggregate certain claims and litigation costs that are reasonably predictable based on our historical loss experience and accrue losses, including future legal defense costs, based on actuarial studies. Certain claims and litigation costs, due to their unique nature, are not included in our actuarial studies. We use both internal and outside legal counsel to assess the probability of loss, and establish an accrual when the claims and litigation represent a probable loss and the cost can be reasonably estimated. For matters not included in our actuarial studies, legal defense costs are accrued when incurred. The following table outlines our self-insurance program at December 31:





 

 

 

 

 



 

 

 

 

 

dollars in thousands

2018

 

 

2017

 

Self-insurance Program

 

 

 

 

 

Self-insured liabilities (undiscounted)

$        68,912 

 

 

$       58,216 

 

Insured liabilities (undiscounted)

4,377 

 

 

7,892 

 

Discount rate

2.93% 

 

 

1.93% 

 

Amounts Recognized in Consolidated

 

 

 

 

 

  Balance Sheets

 

 

 

 

 

Other accounts and notes receivable

$             631 

 

 

$         6,158 

 

Investments and long-term receivables

3,932 

 

 

7,246 

 

Other current liabilities

(18,466)

 

 

(20,036)

 

Other noncurrent liabilities

(48,049)

 

 

(41,792)

 

Net liabilities (discounted)

$       (61,952)

 

 

$     (48,424)

 



Estimated payments (undiscounted and excluding the impact of related receivables) under our self-insurance program for the five years subsequent to December 31, 2018 are as follows:





 

 



 

 

in thousands

 

 

Estimated Payments under Self-insurance Program

 

 

2019

$        20,529 

 

2020

15,232 

 

2021

11,615 

 

2022

6,360 

 

2023

3,665 

 



Significant judgment is used in determining the timing and amount of the accruals for probable losses, and the actual liability could differ materially from the accrued amounts.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

All of our share-based compensation awards are classified as equity awards. We measure share-based compensation awards using fair-value-based measurement methods. This results in the recognition of compensation expense for all share-based compensation awards based on their fair value as of the grant date. Compensation cost is recognized over the requisite service period. Forfeitures are recognized as they occur.

A summary of the estimated future compensation cost (unrecognized compensation expense) as of December 31, 2018 related to share-based awards granted to employees under our long-term incentive plans is presented below:





 

 

 

 

 

 



 

 

 

 

 

 



 

Unrecognized

 

 

Expected

 



 

Compensation

 

 

Weighted-average

 

dollars in thousands

Expense

 

 

Recognition (Years)

 

Share-based Compensation

 

 

 

 

 

SOSARs 1

$          3,376 

 

 

1.4 

 

Performance shares

14,250 

 

 

1.6 

 

Restricted shares

6,098 

 

 

1.7 

 

Total/weighted-average

$        23,724 

 

 

1.6 

 





 

1

Stock-Only Stock Appreciation Rights (SOSARs)



Pretax compensation expense related to our employee share-based compensation awards and related income tax benefits for the years ended December 31 are summarized below:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Employee Share-based Compensation Awards

 

 

 

 

 

 

 

 

Pretax compensation expense

$        23,250 

 

 

$       24,367 

 

 

$       17,823 

 

Income tax benefits

5,940 

 

 

6,226 

 

 

6,925 

 



We receive an income tax deduction for share-based compensation equal to the excess of the market value of our common stock on the date of exercise or issuance over the exercise price. Tax benefits resulting from tax deductions in excess of the compensation cost recognized (excess tax benefits) are reflected as discrete income tax benefits in the period of exercise or issuance. Net excess tax benefits were recorded as reductions to our income tax expense and reflected as operating cash flows, as follows (combined federal and state): 2018$20,137,000; 2017 $22,962,000; and 2016 $24,847,000.

For additional information about share-based compensation, see Note 11 under the caption Share-based Compensation Plans.

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS

Accounting for pension and other postretirement benefits requires that we use assumptions for the valuation of projected benefit obligations (PBO) and the performance of plan assets. Each year, we review our assumptions for discount rates (used for PBO, service cost, and interest cost calculations) and the expected return on plan assets. Due to plan changes made in 2012 and 2013, annual pay increases and the per capita cost of healthcare benefits do not materially impact plan obligations.

§

DISCOUNT RATES — We use a high-quality bond full yield curve approach (specific spot rates for each annual expected cash flow) to establish the discount rates at each measurement date. See Note 10 for the discount rates used for PBO, service cost, and interest cost calculations.

§

EXPECTED RETURN ON PLAN ASSETS — Our expected return on plan assets is: (1) a long-term view based on our current asset allocation, and (2) a judgment informed by consultation with our retirement plans’ consultant and our pension plans’ actuary. For the year ended December 31, 2018, the expected return on plan assets remained at 7.0%.

Accounting standards provide for the delayed recognition of differences between actual results and expected or estimated results. This delayed recognition of actual results allows for a smoothed recognition in earnings of changes in benefit obligations and asset performance. The differences between actual results and expected or estimated results are recognized in full in other comprehensive income. Amounts recognized in other comprehensive income are reclassified to earnings in a systematic manner over the average remaining service period of participants for our active plans or the average remaining lifetime of participants for our inactive plans.

For additional information about pension and other postretirement benefits see Note 10.

INCOME TAXES

INCOME TAXES

We file federal, state and foreign income tax returns and account for the current and deferred tax effects of such returns using the asset and liability method. 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.

Significant judgments and estimates are required in determining our deferred tax assets and liabilities. These estimates are updated throughout the year to consider income tax return filings, our geographic mix of earnings, legislative changes and other relevant items. We are required to account for the effects of changes in income tax rates on deferred tax balances in the period in which the legislation is enacted.

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. A summary of our deferred tax assets is included in Note 9.

U.S. income taxes are not provided on foreign earnings when such earnings are indefinitely reinvested offshore. At least annually, we evaluate our investment strategies for each foreign tax jurisdiction in which we operate to determine whether foreign earnings will be indefinitely reinvested offshore.

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 position. 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.

Generally, we are not subject to significant changes in income taxes by any taxing jurisdiction for the years before 2015. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, we believe our liability for unrecognized tax benefits is appropriate.

We consider a tax position to be resolved at the earlier of the issue being “effectively settled,” settlement of an examination, or the expiration of the statute of limitations. Upon resolution of a tax position, any liability for unrecognized tax benefits will be released.

Our liability for unrecognized tax benefits is generally presented as noncurrent. However, if we anticipate paying cash within one year to settle an uncertain tax position, the liability is presented as current. We classify interest and penalties associated with our liability for unrecognized tax benefits as income tax expense.

Our largest permanent item in computing both our taxable income and effective tax rate is the deduction allowed for statutory depletion. The impact of statutory depletion on the effective tax rate is presented in Note 9. The deduction for statutory depletion does not necessarily change proportionately to changes in pretax earnings.

COMPREHENSIVE INCOME

COMPREHENSIVE INCOME

We report comprehensive income in our Consolidated Statements of Comprehensive Income and Consolidated Statements of Equity. Comprehensive income comprises two subsets: net earnings and other comprehensive income (OCI). OCI includes fair value adjustments to cash flow hedges, as well as actuarial gains or losses and prior service costs related to pension and postretirement benefit plans.

For additional information about comprehensive income see Note 14.

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

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





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Weighted-average common shares outstanding

132,393 

 

 

132,513 

 

 

133,205 

 

Dilutive effect of

 

 

 

 

 

 

 

 

   SOSARs

963 

 

 

1,295 

 

 

1,339 

 

   Other stock compensation plans

570 

 

 

1,070 

 

 

1,246 

 

Weighted-average common shares outstanding,

 

 

 

 

 

 

 

 

  assuming dilution

133,926 

 

 

134,878 

 

 

135,790 

 



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

Antidilutive common stock equivalents are not included in our earnings per share calculations. The number of antidilutive common stock equivalents for which the exercise price exceeds the weighted-average market price for the years ended December 31 is as follows:





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Antidilutive common stock equivalents

162 

 

 

79 

 

 

97 

 



RECLASSIFICATIONS



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Antidilutive common stock equivalents

162 

 

 

79 

 

 

97 

 

RECLASSIFICATIONS

Certain items previously reported in specific financial statement captions have been reclassified to conform with the 2018 presentation. Refer below to Accounting Standards Recently Adopted (Presentation of Benefit Plan Costs) for the impact of reclassifying certain benefit costs from operating income to nonoperating income in our Statements of Comprehensive Income.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS

ACCOUNTING STANDARDS RECENTLY ADOPTED

RELEASING STRANDED TAX EFFECTS  During the fourth quarter of 2018, we adopted Accounting Standards Update (ASU) 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” effective as of the beginning of the year. This ASU allowed us to reclassify $29,629,000 of stranded tax effects due to remeasuring certain deferred tax assets as a result of applying the TCJA enacted in December 2017 from accumulated other comprehensive income (AOCI) to retained earnings.

PRESENTATION OF BENEFIT PLAN COSTS  During the first quarter of 2018, we adopted ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” on a retrospective basis as required. This ASU changed the presentation of the net benefit cost in the income statement and limits benefit costs eligible for inventory capitalization to the service cost component (benefit costs capitalized in inventory are immaterial to our financial statements). We continue to present the service cost component of net benefit cost in cost of revenues and selling, administrative and general expense consistent with employee compensation costs. The other components of net benefit cost (credit) are now included in other nonoperating income. These other components were a net credit for all periods presented resulting in a decrease in operating earnings and an increase in other nonoperating income, as follows: 2018 — $16,539,000; 2017 — $8,102,000 and 2016 — $13,715,000.

CLASSIFICATION AND MEASUREMENT OF FINANCIAL INSTRUMENTS During the first quarter of 2018, we adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU 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. The adoption of this standard had no material impact on our consolidated financial statements.

REVENUE RECOGNITION During the first quarter of 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers” (ASC Topic 606). Topic 606 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. Additionally, it provides a more robust framework for addressing revenue issues and expands required revenue recognition disclosures. We adopted this standard using the cumulative effect transition approach; however, because there was no change in the identified performance obligations under Topic 606 compared with the identification of deliverables and separate units of account under previous guidance (Topic 605), the amount and timing of our revenues remain materially unchanged. Our expanded revenue disclosure is presented in Note 2.

ACCOUNTING STANDARDS PENDING ADOPTION

DEFINED BENEFIT PLANS  In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-14, “Changes to the Disclosure Requirements for Defined Benefit Plans,” which adds, removes and clarifies the disclosure requirements for employers that sponsor defined benefit pension and other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and is to be applied retrospectively. Early adoption is permitted. While we are still evaluating the impact of ASU 2018-14 and whether we will early adopt, it will not impact our consolidated financial statements as it only affects disclosure. Thus, the adoption of this standard will have a minor impact on the notes to our consolidated financial statements, specifically, our benefit plans note.

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. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

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 certain exclusions, including mineral 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.

We will adopt this standard in the first quarter of 2019 utilizing the comparatives transition option under ASC 840. Under this transition approach, we will not restate our comparative periods in the period of adoption. We currently expect to recognize operating lease liabilities of approximately $430,000,000, with corresponding right-of-use assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases.

We expect to elect the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification, and initial direct costs. Also, we expect to elect the use of the practical expedient pertaining to land easements. We do not expect to elect the use-of-hindsight practical expedient. The new standard also provides practical expedients for an entity’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for all equipment leases. This means, for those leases that qualify, we will not recognize right-of-use assets or lease liabilities, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. We also currently expect to elect the practical expedient to not separate lease and non-lease components for all of our leases.

v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
Results from Discontinued Operations



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Discontinued Operations

 

 

 

 

 

 

 

 

Pretax earnings (loss)

$        (2,748)

 

 

$       12,959 

 

 

$        (4,877)

 

Income tax (expense) benefit

712 

 

 

(5,165)

 

 

1,962 

 

Earnings (loss) on discontinued operations,

 

 

 

 

 

 

 

 

  net of tax

$        (2,036)

 

 

$         7,794 

 

 

$        (2,915)

 



Depreciation, Depletion, Accretion and Amortization Expense



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Depreciation, Depletion, Accretion and Amortization

 

 

 

 

 

 

 

 

Depreciation

$      276,814 

 

 

$     250,835 

 

 

$     238,237 

 

Depletion

23,260 

 

 

19,342 

 

 

17,812 

 

Accretion

10,776 

 

 

11,415 

 

 

11,059 

 

Amortization of leaseholds

472 

 

 

608 

 

 

267 

 

Amortization of intangibles

34,924 

 

 

23,765 

 

 

17,565 

 

Total

$      346,246 

 

 

$     305,965 

 

 

$     284,940 

 



Fair Value Measurement on Recurring Basis



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Level 1 Fair Value

in thousands

2018

 

 

2017

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

   Mutual funds

$       19,164 

 

 

$     20,348 

 

Total

$       19,164 

 

 

$     20,348 

 





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Level 2 Fair Value

in thousands

2018

 

 

2017

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

   Money market mutual fund

$        1,015 

 

 

$       1,203 

 

Total

$        1,015 

 

 

$       1,203 

 



Liabilities Under Self-Insurance Program



 

 

 

 

 



 

 

 

 

 

dollars in thousands

2018

 

 

2017

 

Self-insurance Program

 

 

 

 

 

Self-insured liabilities (undiscounted)

$        68,912 

 

 

$       58,216 

 

Insured liabilities (undiscounted)

4,377 

 

 

7,892 

 

Discount rate

2.93% 

 

 

1.93% 

 

Amounts Recognized in Consolidated

 

 

 

 

 

  Balance Sheets

 

 

 

 

 

Other accounts and notes receivable

$             631 

 

 

$         6,158 

 

Investments and long-term receivables

3,932 

 

 

7,246 

 

Other current liabilities

(18,466)

 

 

(20,036)

 

Other noncurrent liabilities

(48,049)

 

 

(41,792)

 

Net liabilities (discounted)

$       (61,952)

 

 

$     (48,424)

 



Estimated Payments (Undiscounted) Under Self-Insurance Program



 

 



 

 

in thousands

 

 

Estimated Payments under Self-insurance Program

 

 

2019

$        20,529 

 

2020

15,232 

 

2021

11,615 

 

2022

6,360 

 

2023

3,665 

 



Unrecognized Compensation Expense



 

 

 

 

 

 



 

 

 

 

 

 



 

Unrecognized

 

 

Expected

 



 

Compensation

 

 

Weighted-average

 

dollars in thousands

Expense

 

 

Recognition (Years)

 

Share-based Compensation

 

 

 

 

 

SOSARs 1

$          3,376 

 

 

1.4 

 

Performance shares

14,250 

 

 

1.6 

 

Restricted shares

6,098 

 

 

1.7 

 

Total/weighted-average

$        23,724 

 

 

1.6 

 





 

1

Stock-Only Stock Appreciation Rights (SOSARs)



Pretax Compensation Expense



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Employee Share-based Compensation Awards

 

 

 

 

 

 

 

 

Pretax compensation expense

$        23,250 

 

 

$       24,367 

 

 

$       17,823 

 

Income tax benefits

5,940 

 

 

6,226 

 

 

6,925 

 



Weighted-Average Common Shares Outstanding Assuming Dilution



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Weighted-average common shares outstanding

132,393 

 

 

132,513 

 

 

133,205 

 

Dilutive effect of

 

 

 

 

 

 

 

 

   SOSARs

963 

 

 

1,295 

 

 

1,339 

 

   Other stock compensation plans

570 

 

 

1,070 

 

 

1,246 

 

Weighted-average common shares outstanding,

 

 

 

 

 

 

 

 

  assuming dilution

133,926 

 

 

134,878 

 

 

135,790 

 



Antidilutive Common Stock Equivalents



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Antidilutive common stock equivalents

162 

 

 

79 

 

 

97 

 



v3.10.0.1
REVENUES (Tables)
12 Months Ended
Dec. 31, 2018
REVENUES [Abstract]  
Revenues by Geographic Market





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the Year Ended December 31, 2018

 

in thousands

Aggregates

 

 

Asphalt

 

 

Concrete

 

 

Calcium

 

 

Total

 

Total Revenues by Geographic Market 1

 

 

 

 

 

 

 

 

 

 

 

 

 

East

$  1,109,489 

 

 

$     156,591 

 

 

$     257,250 

 

 

$                0 

 

 

$    1,523,330 

 

Gulf Coast

1,821,853 

 

 

131,745 

 

 

71,739 

 

 

8,110 

 

 

2,033,447 

 

West

582,307 

 

 

444,846 

 

 

73,010 

 

 

 

 

1,100,163 

 

Segment sales

$  3,513,649 

 

 

$     733,182 

 

 

$     401,999 

 

 

$         8,110 

 

 

$    4,656,940 

 

Intersegment sales

(274,071)

 

 

 

 

 

 

 

 

(274,071)

 

Total revenues

$  3,239,578 

 

 

$     733,182 

 

 

$     401,999 

 

 

$         8,110 

 

 

$    4,382,869 

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the Year Ended December 31, 2017

 

in thousands

Aggregates

 

 

Asphalt

 

 

Concrete

 

 

Calcium

 

 

Total

 

Total Revenues by Geographic Market 1

 

 

 

 

 

 

 

 

 

 

 

 

 

East

$  1,045,682 

 

 

$     112,673 

 

 

$     244,568 

 

 

$                0 

 

 

$    1,402,923 

 

Gulf Coast

1,512,505 

 

 

80,311 

 

 

102,716 

 

 

7,740 

 

 

1,703,272 

 

West

537,907 

 

 

429,090 

 

 

70,461 

 

 

 

 

1,037,458 

 

Segment sales

$  3,096,094 

 

 

$     622,074 

 

 

$     417,745 

 

 

$         7,740 

 

 

$    4,143,653 

 

Intersegment sales

(253,357)

 

 

 

 

 

 

 

 

(253,357)

 

Total revenues

$  2,842,737 

 

 

$     622,074 

 

 

$     417,745 

 

 

$         7,740 

 

 

$    3,890,296 

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the Year Ended December 31, 2016

 

in thousands

Aggregates

 

 

Asphalt

 

 

Concrete

 

 

Calcium

 

 

Total

 

Total Revenues by Geographic Market 1

 

 

 

 

 

 

 

 

 

 

 

 

 

East

$     994,559 

 

 

$                0 

 

 

$     203,734 

 

 

$                0 

 

 

$    1,198,293 

 

Gulf Coast

1,497,762 

 

 

102,035 

 

 

99,253 

 

 

8,860 

 

 

1,707,910 

 

West

469,514 

 

 

410,275 

 

 

27,138 

 

 

 

 

906,927 

 

Segment sales

$  2,961,835 

 

 

$     512,310 

 

 

$     330,125 

 

 

$         8,860 

 

 

$    3,813,130 

 

Intersegment sales

(220,463)

 

 

 

 

 

 

 

 

(220,463)

 

Total revenues

$  2,741,372 

 

 

$     512,310 

 

 

$     330,125 

 

 

$         8,860 

 

 

$    3,592,667 

 





 

1

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



 

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

Gulf Coast market — Alabama, Florida, Georgia, Louisiana, Mexico, Mississippi, Oklahoma, South Carolina, Texas and the Bahamas

West market — Arizona, California and New Mexico



Freight & Delivery Revenues





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Freight & Delivery Revenues

 

 

 

 

 

 

 

 

Total revenues

$  4,382,869 

 

 

$  3,890,296 

 

 

$  3,592,667 

 

   Freight & delivery revenues 1

(641,815)

 

 

(528,916)

 

 

(535,929)

 

Total revenues excluding freight & delivery

$  3,741,054 

 

 

$  3,361,380 

 

 

$  3,056,738 

 





 

1

Includes freight & delivery to remote distribution sites.



Reconciliation of Deferred Revenue Balances



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Deferred Revenue

 

 

 

 

 

 

 

 

Balance at beginning of year

$      199,556 

 

 

$     206,468 

 

 

$     214,060 

 

  Revenue recognized from deferred revenue

(6,773)

 

 

(6,912)

 

 

(7,592)

 

Balance at end of year

$      192,783 

 

 

$     199,556 

 

 

$     206,468 

 



v3.10.0.1
INVENTORIES (Tables)
12 Months Ended
Dec. 31, 2018
INVENTORIES [Abstract]  
Inventories



 

 

 

 

 

 

 



 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

Inventories

 

 

 

 

 

Finished products  1

$      372,604 

 

 

$     327,711 

 

Raw materials

27,942 

 

 

27,152 

 

Products in process

3,064 

 

 

1,827 

 

Operating supplies and other

25,720 

 

 

27,648 

 

Total

$      429,330 

 

 

$     384,338 

 





 

1

Includes inventories encumbered by volumetric production payments (see Note 2), as follows: December 31, 2018 — $3,230 thousand and December 31, 2017 — $2,808 thousand.



v3.10.0.1
PROPERTY, PLANT & EQUIPMENT (Tables)
12 Months Ended
Dec. 31, 2018
PROPERTY, PLANT & EQUIPMENT [Abstract]  
Property, Plant and Equipment



 

 

 

 

 

 

 



 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

Property, Plant & Equipment

 

 

 

 

 

Land and land improvements 1

$    2,823,092 

 

 

$  2,742,285 

 

Buildings

139,948 

 

 

135,655 

 

Machinery and equipment

5,106,918 

 

 

4,740,212 

 

Leasehold improvements

18,217 

 

 

17,354 

 

Deferred asset retirement costs

183,324 

 

 

172,631 

 

Construction in progress

186,120 

 

 

161,175 

 

Total, gross

$    8,457,619 

 

 

$  7,969,312 

 

Less allowances for depreciation, depletion

 

 

 

 

 

  and amortization

4,220,312 

 

 

4,050,381 

 

Total, net

$    4,237,307 

 

 

$  3,918,931 

 





 

1

Includes depletable land, as follows: December 31, 2018 — $1,626,899 thousand and December 31, 2017 — $1,606,303 thousand.



Capitalized Interest Costs and Total Interest Costs Incurred



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Capitalized interest cost

$          3,674 

 

 

$        5,177 

 

 

$        7,468 

 

Total interest cost incurred before recognition

 

 

 

 

 

 

 

 

  of the capitalized amount

141,651 

 

 

300,699 

 

 

141,544 

 



v3.10.0.1
DERIVATIVE INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2018
DERIVATIVE INSTRUMENTS [Abstract]  
Effects of Changes in Fair Values of Derivatives Designated as Cash Flow Hedges



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Location on Statement

 

2018

 

 

2017

 

 

2016

 

Interest Rate Hedges

 

 

 

 

 

 

 

 

 

 

Loss reclassified from AOCI

 

 

 

 

 

 

 

 

 

 

  (effective portion)

Interest expense

 

$          (306)

 

 

$       (3,070)

 

 

$       (2,008)

 



v3.10.0.1
DEBT (Tables)
12 Months Ended
Dec. 31, 2018
DEBT [Abstract]  
Debt



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



Effective

 

 

 

 

 

 

in thousands

Interest Rates

 

2018

 

 

2017

 

Short-term Debt

 

 

 

 

 

 

 

Bank line of credit expires 2021 1, 2

1.25% 

 

$        133,000 

 

 

$                   0 

 

Total short-term debt

 

 

$        133,000 

 

 

$                   0 

 

Long-term Debt

 

 

 

 

 

 

 

Bank line of credit expires 2021 1

 

 

$                   0 

 

 

$        250,000 

 

Term loan due 2018 3

 

 

 

 

350,000 

 

Floating-rate notes due 2020

3.50% 

 

250,000 

 

 

250,000 

 

Floating-rate notes due 2021

3.71% 

 

500,000 

 

 

 

7.50% notes due 2021

 

 

 

 

35,111 

 

8.85% notes due 2021

8.88% 

 

6,000 

 

 

6,000 

 

Term loan due 2021

 

 

 

 

250,000 

 

4.50% notes due 2025

4.65% 

 

400,000 

 

 

400,000 

 

3.90% notes due 2027

4.00% 

 

400,000 

 

 

400,000 

 

7.15% notes due 2037

8.05% 

 

129,239 

 

 

240,188 

 

4.50% notes due 2047

4.59% 

 

700,000 

 

 

700,000 

 

4.70% notes due 2048

5.42% 

 

460,949 

 

 

 

Other notes

6.46% 

 

208 

 

 

230 

 

Total long-term debt - face value

 

 

$     2,846,396 

 

 

$     2,881,529 

 

Unamortized discounts and debt issuance costs

 

 

(67,016)

 

 

(26,664)

 

Total long-term debt - book value

 

 

$     2,779,380 

 

 

$     2,854,865 

 

Less current maturities

 

 

23 

 

 

41,383 

 

Total long-term debt - reported value

 

 

$     2,779,357 

 

 

$     2,813,482 

 

Estimated fair value of long-term debt

 

 

$     2,695,802 

 

 

$     2,983,419 

 









 

1

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 if we have the intent and ability to extend payment beyond twelve months.

2

The effective interest rate reflects the margin above LIBOR for LIBOR-based borrowings. We also paid upfront fees that are amortized to interest expense and pay fees for unused borrowing capacity and standby letters of credit.

3

This short-term loan was refinanced on a long-term basis in February 2018 as discussed below. Thus, it was classified as long-term debt as of December 31, 2017.



Schedule of Principal and Interest Debt Payments



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

Total

 

 

Principal

 

 

Interest

 

Scheduled Debt Payments (excluding the line of credit)

 

 

 

 

 

 

 

 

2019

$      121,629 

 

 

$             23 

 

 

$    121,606 

 

2020

366,366 

 

 

250,025 

 

 

116,341 

 

2021

606,312 

 

 

506,026 

 

 

100,286 

 

2022

96,041 

 

 

28 

 

 

96,013 

 

2023

96,041 

 

 

30 

 

 

96,011 

 



Standby Letters of Credit



 

 

 

 

 



 

 

 

 

 

in thousands

 

 

Standby Letters of Credit

 

 

Risk management insurance

$       38,111 

 

Reclamation/restoration requirements

6,868 

 

Total

$       44,979 

 



v3.10.0.1
OPERATING LEASES (Tables)
12 Months Ended
Dec. 31, 2018
OPERATING LEASES [Abstract]  
Rental Expense from Continuing Operations Under Nonmineral Operating Leases



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Operating Leases

 

 

 

 

 

 

 

 

Minimum rentals

$        76,443 

 

 

$       59,536 

 

 

$       52,713 

 

Contingent rentals (based principally on usage)

54,572 

 

 

50,822 

 

 

57,278 

 

Total

$      131,015 

 

 

$     110,358 

 

 

$     109,991 

 



Future Minimum Operating Lease Payments



 

 



 

 

in thousands

 

 

Future Minimum Operating Lease Payments

 

 

2019

$        47,979 

 

2020

43,540 

 

2021

35,732 

 

2022

27,463 

 

2023

19,707 

 

Thereafter

195,104 

 

Total

$      369,525 

 



v3.10.0.1
ACCRUED ENVIRONMENTAL REMEDIATION COSTS (Tables)
12 Months Ended
Dec. 31, 2018
ACCRUED ENVIRONMENTAL REMEDIATION COSTS [Abstract]  
Accrued Environmental Remediation Costs



 

 

 

 

 



 

 

 

 

 

in thousands

2018

 

 

2017

 

Accrued Environmental Remediation Costs

 

 

 

 

 

Continuing operations

$        39,745 

 

 

$       21,784 

 

Retained from former Chemicals business

10,685 

 

 

10,704 

 

Total

$        50,430 

 

 

$       32,488 

 



v3.10.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2018
INCOME TAXES [Abstract]  
Components of Earnings From Continuing Operations before Income Taxes



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Earnings from Continuing Operations

 

 

 

 

 

 

 

 

  before Income Taxes

 

 

 

 

 

 

 

 

Domestic

$      593,446 

 

 

$     346,668 

 

 

$     513,721 

 

Foreign

29,844 

 

 

14,648 

 

 

33,536 

 

Total

$      623,290 

 

 

$     361,316 

 

 

$     547,257 

 



Provision (Benefit) For Income Taxes from Continuing Operations



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Income Tax Expense (Benefit) from

 

 

 

 

 

 

 

 

  Continuing Operations

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

Federal

$        21,111 

 

 

$       (7,416)

 

 

$      72,506 

 

State and local

15,127 

 

 

4,661 

 

 

14,774 

 

Foreign

4,278 

 

 

3,109 

 

 

6,974 

 

Total

$        40,516 

 

 

$           354 

 

 

$      94,254 

 

Deferred

 

 

 

 

 

 

 

 

Federal

$        59,216 

 

 

$  (202,184)

 

 

$      37,246 

 

State and local

8,369 

 

 

(30,052)

 

 

(6,647)

 

Foreign

(2,652)

 

 

(193)

 

 

(2)

 

Total

$        64,933 

 

 

$  (232,429)

 

 

$      30,597 

 

Total expense (benefit)

$      105,449 

 

 

$  (232,075)

 

 

$    124,851 

 



Sources and Tax Effects of Differences Between Benefit from Income Taxes and Amount Computed by Applying Federal Statutory Income Tax Rate to Losses from Continuing Operations before Income Taxes







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

2018

 

2017

 

2016

Income tax expense at the federal

 

 

 

 

 

 

 

 

 

 

 

  statutory tax rate

$    130,891 

21.0% 

 

 

$    126,461 

35.0% 

 

 

$    191,540 

35.0% 

 

Expense (Benefit) from

 

 

 

 

 

 

 

 

 

 

 

  Income Tax Differences

 

 

 

 

 

 

 

 

 

 

 

Statutory depletion

(21,733)

-3.5%

 

 

(28,995)

-8.0%

 

 

(32,230)

-5.9%

 

State and local income taxes, net of federal

 

 

 

 

 

 

 

 

 

 

 

  income tax benefit

18,562  3.0% 

 

 

8,115  2.2% 

 

 

10,074  1.9% 

 

Share-based compensation

(16,551)

-2.7%

 

 

(20,740)

-5.7%

 

 

(22,443)

-4.1%

 

Uncertain tax positions

(6,402)

-1.0%

 

 

1,062  0.3% 

 

 

1,272  0.2% 

 

Revaluation - deferred tax balances

0.0% 

 

 

(301,567)

-83.5%

 

 

0.0% 

 

AL NOL valuation allowance release

0.0% 

 

 

(28,827)

-8.0%

 

 

(4,791)

-0.9%

 

U.S. production deduction

0.0% 

 

 

2,452  0.7% 

 

 

(8,790)

-1.6%

 

Transition tax

595  0.1% 

 

 

12,301  3.4% 

 

 

0.0% 

 

Foreign tax credit carryforward

0.0% 

 

 

0.0% 

 

 

(6,513)

-1.2%

 

Other, net

87  0.0% 

 

 

(2,337)

-0.6%

 

 

(3,268)

-0.6%

 

Total income tax expense (benefit)/

 

 

 

 

 

 

 

 

 

 

 

  Effective tax rate

$    105,449 

16.9% 

 

 

$  (232,075)

-64.2%

 

 

$    124,851 

22.8% 

 



Components of Net Deferred Income Tax Liability



 

 

 

 

 



 

 

 

 

 

in thousands

2018

 

 

2017

 

Deferred Tax Assets Related to

 

 

 

 

 

Employee benefits

$        24,407 

 

 

$       29,547 

 

Incentive compensation

62,829 

 

 

59,010 

 

Asset retirement obligations & other reserves

55,822 

 

 

47,116 

 

State net operating losses

68,436 

 

 

73,083 

 

Federal credit carryforwards

 

 

51,284 

 

Other

31,294 

 

 

37,518 

 

Total gross deferred tax assets

$      242,788 

 

 

$     297,558 

 

Valuation allowance

(29,680)

 

 

(29,723)

 

Total net deferred tax asset

$      213,108 

 

 

$     267,835 

 

Deferred Tax Liabilities Related to

 

 

 

 

 

Property, plant & equipment

$      510,604 

 

 

$     490,459 

 

Goodwill/other intangible assets

233,471 

 

 

216,039 

 

Other

36,316 

 

 

25,418 

 

Total deferred tax liabilities

$      780,391 

 

 

$     731,916 

 

Net deferred tax liability

$      567,283 

 

 

$     464,081 

 



Changes in Unrecognized Income Tax Benefits



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Unrecognized tax benefits as of January 1

$        11,643 

 

 

$       10,828 

 

 

$         8,447 

 

Increases for tax positions related to

 

 

 

 

 

 

 

 

   Prior years

 

 

27 

 

 

1,368 

 

   Current year

698 

 

 

1,039 

 

 

1,040 

 

Decreases for tax positions related to

 

 

 

 

 

 

 

 

   Prior years

(655)

 

 

(204)

 

 

 

Settlements with taxing authorities

 

 

 

 

 

Expiration of applicable statute of limitations

(8,025)

 

 

(47)

 

 

(27)

 

Unrecognized tax benefits as of December 31

$          3,661 

 

 

$       11,643 

 

 

$       10,828 

 



v3.10.0.1
BENEFIT PLANS (Tables)
12 Months Ended
Dec. 31, 2018
Pension Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Combined Funded Status of Plans and their Reconciliation with Related Amounts Recognized in Consolidated Financial Statements





 

 

 

 

 

 

 



 

 

 

 

 

 

 

in thousands

2018 

 

 

2017 

 

Change in Benefit Obligation

 

 

 

 

 

Projected benefit obligation at beginning of year

$    1,091,223 

 

 

$  1,006,674 

 

Service cost

5,716 

 

 

6,715 

 

Interest cost

35,503 

 

 

36,230 

 

Plan amendment  1

 

 

10,869 

 

Actuarial (gain) loss

(118,827)

 

 

81,969 

 

Benefits paid

(54,679)

 

 

(51,234)

 

Projected benefit obligation at end of year

$       958,936 

 

 

$  1,091,223 

 

Change in Fair Value of Plan Assets

 

 

 

 

 

Fair value of assets at beginning of year

$       840,901 

 

 

$     749,515 

 

Actual return on plan assets

(59,083)

 

 

122,597 

 

Employer contribution

109,631 

 

 

20,023 

 

Benefits paid

(54,679)

 

 

(51,234)

 

Fair value of assets at end of year

$       836,770 

 

 

$     840,901 

 

Funded status

(122,166)

 

 

(250,322)

 

Net amount recognized

$      (122,166)

 

 

$   (250,322)

 

Amounts Recognized in the Consolidated

 

 

 

 

 

  Balance Sheets

 

 

 

 

 

Noncurrent assets

$           6,488 

 

 

$         4,605 

 

Current liabilities

(9,067)

 

 

(9,478)

 

Noncurrent liabilities

(119,587)

 

 

(245,449)

 

Net amount recognized

$      (122,166)

 

 

$   (250,322)

 

Amounts Recognized in Accumulated

 

 

 

 

 

  Other Comprehensive Income

 

 

 

 

 

Net actuarial loss

$       240,199 

 

 

$     250,581 

 

Prior service cost

7,828 

 

 

9,167 

 

Total amount recognized

$       248,027 

 

 

$     259,748 

 



Components of Net Periodic Benefit Cost Amounts Recognized in Other Comprehensive Income and Weighted Average Assumptions of Plans



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

dollars in thousands

2018

 

 

2017

 

 

2016

 

Components of Net Periodic Pension

 

 

 

 

 

 

 

 

  Benefit Cost

 

 

 

 

 

 

 

 

Service cost

$          5,716 

 

 

$        6,715 

 

 

$        5,343 

 

Interest cost

35,503 

 

 

36,230 

 

 

36,505 

 

Expected return on plan assets

(59,188)

 

 

(48,506)

 

 

(51,562)

 

Amortization of prior service cost (credit)

1,340 

 

 

1,340 

 

 

(43)

 

Amortization of actuarial loss

9,826 

 

 

7,397 

 

 

6,163 

 

Net periodic pension benefit cost (credit)

$         (6,803)

 

 

$        3,176 

 

 

$       (3,594)

 

Changes in Plan Assets and Benefit

 

 

 

 

 

 

 

 

  Obligations Recognized in Other

 

 

 

 

 

 

 

 

  Comprehensive Income

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

$            (555)

 

 

$        7,879 

 

 

$      33,682 

 

Prior service cost

 

 

10,868 

 

 

 

Reclassification of prior service (cost) credit

(1,340)

 

 

(1,340)

 

 

43 

 

Reclassification of actuarial loss

(9,826)

 

 

(7,397)

 

 

(6,163)

 

Amount recognized in other comprehensive

 

 

 

 

 

 

 

 

  income

$       (11,721)

 

 

$      10,010 

 

 

$      27,562 

 

Amount recognized in net periodic pension

 

 

 

 

 

 

 

 

  benefit cost and other comprehensive

 

 

 

 

 

 

 

 

  income

$       (18,524)

 

 

$      13,186 

 

 

$      23,968 

 

Assumptions

 

 

 

 

 

 

 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

  determine net periodic benefit cost for

 

 

 

 

 

 

 

 

  years ended December 31

 

 

 

 

 

 

 

 

Discount rate — PBO

3.72% 

 

 

4.29% 

 

 

4.55% 

 

Discount rate — service cost

3.90% 

 

 

4.63% 

 

 

4.68% 

 

Discount rate — interest cost

3.35% 

 

 

3.63% 

 

 

3.79% 

 

Expected return on plan assets

7.00% 

 

 

7.00% 

 

 

7.50% 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

  determine benefit obligation at

 

 

 

 

 

 

 

 

  December 31

 

 

 

 

 

 

 

 

Discount rate

4.39% 

 

 

3.72% 

 

 

4.29% 

 



Fair values of Pension Plan Assets

Fair Value Measurements at December 31, 2018





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Asset Category

 

 

 

 

 

 

 

 

 

 

 

Debt funds

$                0 

 

 

$     168,953 

 

 

$                0 

 

 

$     168,953 

 

Commodity funds

 

 

14,697 

 

 

 

 

14,697 

 

Equity funds

246 

 

 

135,656 

 

 

 

 

135,902 

 

Investments in the fair value hierarchy

$            246 

 

 

$     319,306 

 

 

$                0 

 

 

$     319,552 

 

Interest in common/collective trusts (at NAV)

 

 

 

 

 

 

 

 

462,566 

 

Private partnerships (at NAV)

 

 

 

 

 

 

 

 

54,652 

 

Total pension plan assets

 

 

 

 

 

 

 

 

 

$     836,770 

 

Fair Value Measurements at December 31, 2017





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Asset Category

 

 

 

 

 

 

 

 

 

 

 

Debt funds

$                0 

 

 

$     178,512 

 

 

$                0 

 

 

$     178,512 

 

Commodity funds

 

 

17,041 

 

 

 

 

17,041 

 

Equity funds

1,089 

 

 

143,010 

 

 

 

 

144,099 

 

Investments in the fair value hierarchy

$         1,089 

 

 

$     338,563 

 

 

$                0 

 

 

$     339,652 

 

Interest in common/collective trusts (at NAV)

 

 

 

 

 

 

 

 

416,397 

 

Private partnerships (at NAV)

 

 

 

 

 

 

 

 

84,852 

 

Total pension plan assets

 

 

 

 

 

 

 

 

 

$     840,901 

 



Employer Contributions for Plan



 

 

 

 



 

 

 

 

in thousands

Pension

 

Employer Contributions

 

 

2016

$          9,576 

 

2017

20,023 

 

2018

109,631 

 

2019 (estimated)

9,067 

 



Benefit Payments Which Reflect Expected Future Service, Expected to be Paid



 

 

 

 



 

 

 

 

in thousands

Pension

 

Estimated Future Benefit Payments

 

 

2019

$        56,493 

 

2020

57,191 

 

2021

58,317 

 

2022

59,705 

 

2023

60,871 

 

2024-2028

301,996 

 



Postretirement Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Combined Funded Status of Plans and their Reconciliation with Related Amounts Recognized in Consolidated Financial Statements



 

 

 

 

 

 

 



 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

Change in Benefit Obligation

 

 

 

 

 

Projected benefit obligation at beginning of year

$        43,480 

 

 

$       45,546 

 

Service cost

1,357 

 

 

1,167 

 

Interest cost

1,240 

 

 

1,260 

 

Actuarial loss

856 

 

 

378 

 

Benefits paid

(6,099)

 

 

(4,871)

 

Projected benefit obligation at end of year

$        40,834 

 

 

$       43,480 

 

Change in Fair Value of Plan Assets

 

 

 

 

 

Fair value of assets at beginning of year

$                 0 

 

 

$                0 

 

Actual return on plan assets

 

 

 

Fair value of assets at end of year

$                 0 

 

 

$                0 

 

Funded status

$       (40,834)

 

 

$     (43,480)

 

Net amount recognized

$       (40,834)

 

 

$     (43,480)

 

Amounts Recognized in the Consolidated

 

 

 

 

 

  Balance Sheets

 

 

 

 

 

Current liabilities

$         (5,560)

 

 

$        (5,624)

 

Noncurrent liabilities

(35,274)

 

 

(37,856)

 

Net amount recognized

$       (40,834)

 

 

$     (43,480)

 

Amounts Recognized in Accumulated

 

 

 

 

 

  Other Comprehensive Income

 

 

 

 

 

Net actuarial gain

$       (18,624)

 

 

$     (20,757)

 

Prior service credit

(11,494)

 

 

(15,456)

 

Total amount recognized

$       (30,118)

 

 

$     (36,213)

 



Components of Net Periodic Benefit Cost Amounts Recognized in Other Comprehensive Income and Weighted Average Assumptions of Plans



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

dollars in thousands

2018

 

 

2017

 

 

2016

 

Components of Net Periodic Postretirement

 

 

 

 

 

 

 

 

  Benefit Cost

 

 

 

 

 

 

 

 

Service cost

$          1,358 

 

 

$        1,167 

 

 

$        1,123 

 

Interest cost

1,240 

 

 

1,260 

 

 

1,209 

 

Amortization of prior service credit

(3,962)

 

 

(4,236)

 

 

(4,236)

 

Amortization of actuarial gain

(1,298)

 

 

(1,587)

 

 

(1,751)

 

Net periodic postretirement benefit cost (credit)

$         (2,662)

 

 

$       (3,396)

 

 

$       (3,655)

 

Changes in Plan Assets and Benefit

 

 

 

 

 

 

 

 

  Obligations Recognized in Other

 

 

 

 

 

 

 

 

  Comprehensive Income

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

$             835 

 

 

$           342 

 

 

$          (111)

 

Reclassification of prior service credit

3,962 

 

 

4,236 

 

 

4,236 

 

Reclassification of actuarial gain

1,298 

 

 

1,587 

 

 

1,751 

 

Amount recognized in other comprehensive

 

 

 

 

 

 

 

 

  income

$          6,095 

 

 

$        6,165 

 

 

$        5,876 

 

Amount recognized in net periodic

 

 

 

 

 

 

 

 

  postretirement benefit cost and other

 

 

 

 

 

 

 

 

  comprehensive income

$          3,433 

 

 

$        2,769 

 

 

$        2,221 

 

Assumptions

 

 

 

 

 

 

 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

  determine net periodic benefit cost for

 

 

 

 

 

 

 

 

  years ended December 31

 

 

 

 

 

 

 

 

Discount rate — PBO

3.34% 

 

 

3.59% 

 

 

3.69% 

 

Discount rate — service cost

3.56% 

 

 

3.96% 

 

 

3.77% 

 

Discount rate — interest cost

2.90% 

 

 

2.89% 

 

 

2.81% 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

  determine benefit obligation at

 

 

 

 

 

 

 

 

  December 31

 

 

 

 

 

 

 

 

Discount rate

4.01% 

 

 

3.33% 

 

 

3.58% 

 



Employer Contributions for Plan



 

 

 

 



 

 

 

 

in thousands

Postretirement

 

Employer Contributions

 

 

2016

$          5,280 

 

2017

4,871 

 

2018

6,099 

 

2019 (estimated)

5,561 

 



Benefit Payments Which Reflect Expected Future Service, Expected to be Paid



 

 

 

 



 

 

 

 

in thousands

Postretirement

 

Estimated Future Benefit Payments

 

 

2019

$          5,561 

 

2020

5,381 

 

2021

5,077 

 

2022

4,733 

 

2023

4,523 

 

2024–2028

17,168 

 



Contributions by Participants to Postretirement Benefit Plans



 

 

 

 



 

 

 

 

in thousands

Postretirement

 

Participants Contributions

 

 

2016

$          2,085 

 

2017

2,025 

 

2018

1,984 

 



v3.10.0.1
INCENTIVE PLANS (Tables)
12 Months Ended
Dec. 31, 2018
Aggregate Values for Distributed Restricted Share Awards



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Aggregate value of distributed

 

 

 

 

 

 

 

 

  restricted shares

$        1,345 

 

 

$        7,685 

 

 

$               0 

 



Weighted-Average Fair Value and Weighted-Average Assumptions Used in Estimating Fair Value of Grants



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

2018

 

 

2017

 

 

2016

 

SOSARs

 

 

 

 

 

 

 

 

Fair value

$        43.72 

 

 

$        43.01 

 

 

$        29.20 

 

Risk-free interest rate

2.90% 

 

 

2.36% 

 

 

1.66% 

 

Dividend yield

1.39% 

 

 

1.27% 

 

 

1.39% 

 

Volatility

31.49% 

 

 

31.35% 

 

 

30.42% 

 

Expected term

9.00 years

 

 

9.00 years

 

 

9.00 years

 



Aggregate Intrinsic Values of Options Exercised



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Aggregate intrinsic value of SOSARs exercised

$       49,248 

 

 

$       13,758 

 

 

$       27,705 

 



Cash and Stock Consideration Received and Tax Benefit Realized from SOSAR Exercises and Compensation Cost Recorded



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

SOSARs

 

 

 

 

 

 

 

 

Cash and stock consideration received

 

 

 

 

 

 

 

 

  from exercises

$              0 

 

 

$              0 

 

 

$              0 

 

Tax benefit from exercises

19,083 

 

 

5,331 

 

 

10,767 

 

Compensation cost

4,763 

 

 

3,723 

 

 

2,744 

 



Performance Shares [Member]  
Summary of Activity For Nonvested Performance Share Units



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Target

 

 

Weighted-average

 



 

 

Number

 

 

Grant Date

 



 

 

of Shares

 

 

Fair Value

 

Performance Shares

 

 

 

 

 

Nonvested at January 1, 2018

498,979 

 

 

$             89.16 

 

Granted

130,715 

 

 

117.20 

 

Vested

(218,725)

 

 

74.85 

 

Canceled/forfeited

(60,291)

 

 

103.56 

 

Nonvested at December 31, 2018

350,678 

 

 

$           106.06 

 



Aggregate Value of Performance Shares



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Aggregate value of distributed

 

 

 

 

 

 

 

 

  performance shares

$       53,721 

 

 

$       52,368 

 

 

$       60,443 

 



Restricted Shares [Member]  
Summary of Restricted Stock Units



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

 

 

 

Weighted-average

 



 

 

Number

 

 

Grant Date

 



 

 

of Shares

 

 

Fair Value

 

Restricted Stock Units

 

 

 

 

 

Nonvested at January 1, 2018

109,302 

 

 

$             97.43 

 

Granted

52,065 

 

 

117.20 

 

Vested

(11,622)

 

 

100.35 

 

Canceled/forfeited

(4,366)

 

 

110.73 

 

Nonvested at December 31, 2018

145,379 

 

 

$           103.88 

 



SOSARs [Member]  
Summary of Our SOSAR Activity



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Weighted-average

 

 

 

 



 

 

 

 

 

 

 

 

Remaining

 

 

Aggregate

 



 

 

Number

 

 

Weighted-average

 

 

Contractual

 

 

Intrinsic Value

 



 

 

of Shares

 

 

Exercise Price

 

 

Life (Years)

 

 

(in thousands)

 

SOSARs

 

 

 

 

 

 

 

 

 

 

 

Outstanding at January 1, 2018

2,242,487 

 

 

$             52.95 

 

 

 

 

 

 

 

Granted

82,800 

 

 

121.69 

 

 

 

 

 

 

 

Exercised

(583,539)

 

 

45.71 

 

 

 

 

 

 

 

Forfeited or expired

(165)

 

 

79.41 

 

 

 

 

 

 

 

Outstanding at December 31, 2018

1,741,583 

 

 

$             58.64 

 

 

3.70 

 

 

$           72,276 

 

Exercisable at December 31, 2018

1,518,900 

 

 

$             51.39 

 

 

3.08 

 

 

$           71,284 

 



v3.10.0.1
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES [Abstract]  
Commitments Due



 

 



 

 



Unconditional

 



Purchase

 

in thousands

Obligations

 

Property, Plant & Equipment

 

 

2019

$        35,248 

 

Thereafter

 

Total

$        35,248 

 

Noncapital (primarily transportation and electricity contracts)

 

 

2019

$        11,912 

 

2020–2021

9,120 

 

2022–2023

3,690 

 

Thereafter

12,000 

 

Total

$        36,722 

 



Minimum Royalties Under Mineral Leases



 

 



 

 



Mineral

 

in thousands

Leases

 

Minimum Royalties

 

 

2019

$        23,211 

 

2020–2021

36,630 

 

2022–2023

26,014 

 

Thereafter

154,720 

 

Total

$      240,575 

 



v3.10.0.1
EQUITY (Tables)
12 Months Ended
Dec. 31, 2018
EQUITY [Abstract]  
Shares Purchased and Retired





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands, except average cost

2018

 

 

2017

 

 

2016

 

Shares Purchased and Retired

 

 

 

 

 

 

 

 

Number

1,192 

 

 

510 

 

 

1,427 

 

Total purchase price

$      133,983 

 

 

$       60,303 

 

 

$     161,463 

 

Average price per share

$        112.41 

 

 

$       118.18 

 

 

$       113.18 

 



Cash Dividends Per Share of Common Stock



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands, except per share data

2018

 

 

2017

 

 

2016

 

Dividends

 

 

 

 

 

 

 

 

Cash dividends

$      148,109 

 

 

$     132,335 

 

 

$     106,333 

 

Cash dividends per share

$            1.12 

 

 

$           1.00 

 

 

$           0.80 

 



v3.10.0.1
OTHER COMPREHENSIVE INCOME (Tables)
12 Months Ended
Dec. 31, 2018
OTHER COMPREHENSIVE INCOME [Abstract]  
Accumulated Other Comprehensive Income, Net of Tax



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

AOCI

 

 

 

 

 

 

 

 

Interest rate hedges

$       (11,180)

 

 

$     (11,438)

 

 

$     (13,300)

 

Pension and postretirement plans

(161,035)

 

 

(138,028)

 

 

(126,076)

 

Total

$     (172,215)

 

 

$   (149,466)

 

 

$   (139,376)

 



Changes in Accumulated Other Comprehensive Income, Net of Tax



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

 

Pension and

 

 

 

 



Interest Rate

 

 

Postretirement

 

 

 

 

in thousands

Hedges

 

 

Benefit Plans

 

 

Total

 

AOCI

 

 

 

 

 

 

 

 

Balances at December 31, 2015

$       (14,494)

 

 

$   (105,575)

 

 

$   (120,069)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

  before reclassifications

 

 

(20,583)

 

 

(20,583)

 

Amounts reclassified from AOCI

1,194 

 

 

82 

 

 

1,276 

 

Net OCI changes

1,194 

 

 

(20,501)

 

 

(19,307)

 

Balances at December 31, 2016

$       (13,300)

 

 

$   (126,076)

 

 

$   (139,376)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

  before reclassifications

 

 

(14,106)

 

 

(14,106)

 

Amounts reclassified from AOCI

1,862 

 

 

2,154 

 

 

4,016 

 

Net OCI changes

1,862 

 

 

(11,952)

 

 

(10,090)

 

Balances at December 31, 2017

$       (11,438)

 

 

$   (138,028)

 

 

$   (149,466)

 

Released stranded tax effects ASU 2018-02 (Note 9)

(2,464)

 

 

(27,165)

 

 

(29,629)

 

Balances at January 1, 2018, due to reclassification

$       (13,902)

 

 

$   (165,193)

 

 

$   (179,095)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

  before reclassifications

2,496 

 

 

(207)

 

 

2,289 

 

Amounts reclassified from AOCI

226 

 

 

4,365 

 

 

4,591 

 

Net OCI changes

2,722 

 

 

4,158 

 

 

6,880 

 

Balances at December 31, 2018

$       (11,180)

 

 

$   (161,035)

 

 

$   (172,215)

 



Amounts Reclassified from Accumulated Other Comprehensive Income to Earnings



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Amortization of Interest Rate Hedge Losses

 

 

 

 

 

 

 

 

Interest expense

$            306 

 

 

$        3,070 

 

 

$        2,008 

 

Benefit from income taxes

(80)

 

 

(1,208)

 

 

(814)

 

Total

$            226 

 

 

$        1,862 

 

 

$        1,194 

 

Amortization of Pension and Postretirement Plan

 

 

 

 

 

 

 

 

  Actuarial Loss and Prior Service Cost

 

 

 

 

 

 

 

 

Other nonoperating income

$         5,906 

 

 

$        2,915 

 

 

$           134 

 

Benefit from income taxes

(1,541)

 

 

(761)

 

 

(52)

 

Total

$         4,365 

 

 

$        2,154 

 

 

$             82 

 

Total reclassifications from AOCI to earnings

$         4,591 

 

 

$        4,016 

 

 

$        1,276 

 

 

v3.10.0.1
SEGMENT REPORTING (Tables)
12 Months Ended
Dec. 31, 2018
SEGMENT REPORTING [Abstract]  
Segment Financial Disclosure



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Total Revenues

 

 

 

 

 

 

 

 

Aggregates 1

$    3,513,649 

 

 

$    3,096,094 

 

 

$    2,961,835 

 

Asphalt 2

733,182 

 

 

622,074 

 

 

512,310 

 

Concrete

401,999 

 

 

417,745 

 

 

330,125 

 

Calcium

8,110 

 

 

7,740 

 

 

8,860 

 

Segment sales

$    4,656,940 

 

 

$    4,143,653 

 

 

$    3,813,130 

 

Aggregates intersegment sales

(274,071)

 

 

(253,357)

 

 

(220,463)

 

Total revenues

$    4,382,869 

 

 

$    3,890,296 

 

 

$    3,592,667 

 

Gross Profit

 

 

 

 

 

 

 

 

Aggregates 3

$       991,858 

 

 

$       854,524 

 

 

$       863,811 

 

Asphalt 3

56,480 

 

 

91,313 

 

 

96,608 

 

Concrete 3

49,893 

 

 

45,201 

 

 

24,992 

 

Calcium

2,714 

 

 

2,475 

 

 

3,474 

 

Total

$    1,100,945 

 

 

$       993,513 

 

 

$       988,885 

 

Depreciation, Depletion, Accretion and Amortization (DDA&A)

 

 

 

 

 

 

 

 

Aggregates

$       281,641 

 

 

$       245,151 

 

 

$       236,472 

 

Asphalt

31,290 

 

 

25,400 

 

 

16,797 

 

Concrete

12,539 

 

 

13,822 

 

 

12,129 

 

Calcium

272 

 

 

677 

 

 

774 

 

Other

20,504 

 

 

20,915 

 

 

18,768 

 

Total

$       346,246 

 

 

$       305,965 

 

 

$       284,940 

 

Capital Expenditures 4

 

 

 

 

 

 

 

 

Aggregates

$       422,175 

 

 

$       421,989 

 

 

$       297,737 

 

Asphalt

38,154 

 

 

12,970 

 

 

29,002 

 

Concrete

12,291 

 

 

25,176 

 

 

10,047 

 

Calcium

22 

 

 

78 

 

 

534 

 

Corporate

2,587 

 

 

4,020 

 

 

7,621 

 

Total

$       475,229 

 

 

$       464,233 

 

 

$       344,941 

 

Identifiable Assets 5

 

 

 

 

 

 

 

 

Aggregates

$    8,887,749 

 

 

$    8,409,505 

 

 

$    7,589,225 

 

Asphalt

527,226 

 

 

426,575 

 

 

259,514 

 

Concrete

266,581 

 

 

271,818 

 

 

192,673 

 

Calcium

3,942 

 

 

4,428 

 

 

4,959 

 

Total identifiable assets

$    9,685,498 

 

 

$    9,112,326 

 

 

$    8,046,371 

 

General corporate assets

102,228 

 

 

245,919 

 

 

157,085 

 

Cash and cash equivalents and restricted cash

44,404 

 

 

146,646 

 

 

268,019 

 

Total assets

$    9,832,130 

 

 

$    9,504,891 

 

 

$    8,471,475 

 





 

1

Includes product sales, as well as freight & delivery costs that we pass along to our customers, and service revenues (see Note 2) related to aggregates.

2

Includes product sales, as well as service revenues (see Note 2) from our asphalt construction paving business.

3

The 2017 and 2016 amounts have been revised as a result of our adoption of ASU 2017-07 as described in Note 1 under the captions New Accounting Standards and Accounting Standards Recently Adopted.

4

Capital expenditures include capitalized replacements of and additions to property, plant & equipment, including capitalized leases, renewals and betterments. Capital expenditures exclude property, plant & equipment obtained by business acquisitions.

5

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



 

v3.10.0.1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
12 Months Ended
Dec. 31, 2018
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]  
Supplemental Information Referable to Condensed Consolidated Statements of Cash Flows





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

Cash Payments

 

 

 

 

 

 

 

 

Interest (exclusive of amount capitalized)

$      128,217 

 

 

$      285,801 

 

 

$     135,039 

 

Income taxes

(65,968)

 

 

125,135 

 

 

102,849 

 

Noncash Investing and Financing Activities

 

 

 

 

 

 

 

 

Accrued liabilities for purchases of property,

 

 

 

 

 

 

 

 

  plant & equipment

$        37,116 

 

 

$        31,267 

 

 

$       26,676 

 

Amounts referable to business acquisitions

 

 

 

 

 

 

 

 

  Liabilities assumed 1

5,405 

 

 

3,876 

 

 

798 

 

  Consideration payable to seller

4,500 

 

 

9,681 

 

 

 

  Fair value of noncash assets and liabilities exchanged

 

 

9,900 

 

 

 





 

1

The 2018 amount includes adjustments to 2017 acquisitions.



v3.10.0.1
ASSET RETIREMENT OBLIGATIONS (Tables)
12 Months Ended
Dec. 31, 2018
ASSET RETIREMENT OBLIGATIONS [Abstract]  
Asset Retirement Obligations Operating Costs



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

in thousands

2018

 

 

2017

 

 

2016

 

ARO Operating Costs

 

 

 

 

 

 

 

 

Accretion

$        10,776 

 

 

$        11,415 

 

 

$       11,059 

 

Depreciation

6,034 

 

 

6,302 

 

 

6,353 

 

Total

$        16,810 

 

 

$        17,717 

 

 

$       17,412 

 



Reconciliations of Asset Retirement Obligations



 

 

 

 

 



 

 

 

 

 

in thousands

2018

 

 

2017

 

Asset Retirement Obligations

 

 

 

 

 

Balance at beginning of year

$      218,117 

 

 

$      223,872 

 

  Liabilities incurred

20 

 

 

1,920 

 

  Liabilities settled

(13,558)

 

 

(21,477)

 

  Accretion expense

10,776 

 

 

11,415 

 

  Revisions, net

10,371 

 

 

2,387 

 

Balance at end of year

$      225,726 

 

 

$      218,117 

 



v3.10.0.1
GOODWILL AND INTANTIBLE ASSETS (Tables)
12 Months Ended
Dec. 31, 2018
GOODWILL AND INTANGIBLE ASSETS [Abstract]  
Changes in Carrying Amount of Goodwill by Reportable Segment







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Aggregates

 

 

Asphalt

 

 

Concrete

 

 

Calcium

 

 

Total

 

Goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals at December 31, 2016

$   3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,094,824 

 

Goodwill of acquired businesses 1

27,497 

 

 

 

 

 

 

 

 

27,497 

 

Totals at December 31, 2017

$   3,030,688 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,122,321 

 

Goodwill of acquired businesses 1

43,075 

 

 

 

 

 

 

 

 

43,075 

 

Totals at December 31, 2018

$   3,073,763 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,165,396 

 





 

1

See Note 19 for a summary of acquisitions.



Gross Carrying Amount and Accumulated Amortization by Major Intangible Asset Class



 

 

 

 

 

 



 

 

 

 

 

 

in thousands

2018

 

 

2017

 

Gross Carrying Amount

 

 

 

 

 

Contractual rights in place

$    1,107,838 

 

 

$  1,050,816 

 

Noncompetition agreements

7,667 

 

 

7,067 

 

Favorable lease agreements

9,479 

 

 

9,479 

 

Permitting, permitting compliance and zoning rights

126,538 

 

 

119,002 

 

Other 1

4,517 

 

 

4,616 

 

Total gross carrying amount

$    1,256,039 

 

 

$  1,190,980 

 

Accumulated Amortization

 

 

 

 

 

Contractual rights in place

$      (122,100)

 

 

$     (94,534)

 

Noncompetition agreements

(4,212)

 

 

(2,440)

 

Favorable lease agreements

(3,533)

 

 

(3,179)

 

Permitting, permitting compliance and zoning rights

(27,464)

 

 

(24,352)

 

Other 1

(3,352)

 

 

(2,845)

 

Total accumulated amortization

$      (160,661)

 

 

$   (127,350)

 

Total Intangible Assets Subject to Amortization, net

$    1,095,378 

 

 

$  1,063,630 

 

Intangible Assets with Indefinite Lives

 

 

 

Total Intangible Assets, net

$    1,095,378 

 

 

$  1,063,630 

 

Amortization Expense for the Year

$         34,924 

 

 

$       23,765 

 





 

1

Includes customer relationships and tradenames and trademarks.



Estimated Amortization Expense



 

 



 

 

in thousands

 

 

Estimated Amortization Expense for Five Subsequent Years

 

2019

$        34,973 

 

2020

33,698 

 

2021

31,695 

 

2022

29,146 

 

2023

28,635 

 



v3.10.0.1
ACQUISITIONS AND DIVESTITURES (Tables)
12 Months Ended
Dec. 31, 2018
Significant Acquisitions And Disposals [Line Items]  
Comprehensive Income Actual Results



 

 

 

 

 



 

 

 

 

 

in thousands

2017

 

Actual Results

 

 

 

 

 

Total revenues

 

 

 

$     162,462 

 

Net earnings

 

 

 

11,830 

 



Supplemental Pro Forma Results



 

 

 

 

 



 

 

 

 

 

in thousands

2017

 

 

2016

 

Supplemental Pro Forma Results

 

 

 

 

 

Total revenues

$  4,015,891 

 

 

$  3,882,257 

 

Net earnings

610,494 

 

 

433,431 

 



Acquisitions 2018 [Member]  
Significant Acquisitions And Disposals [Line Items]  
Schedule of Business Acquisitions



 

 

 

 

 



 

 

 

 

 

in thousands

2018

 

Fair Value of Purchase Consideration

 

 

 

 

 

Cash

 

 

 

$     215,363 

 

Payable to seller

 

 

 

4,500 

 

Total fair value of purchase consideration

 

 

 

$     219,863 

 

Identifiable Assets Acquired and Liabilities Assumed

 

 

 

 

 

Accounts and notes receivable, net

 

 

 

$       15,402 

 

Inventories

 

 

 

11,874 

 

Other current assets

 

 

 

661 

 

Property, plant & equipment

 

 

 

150,274 

 

Other intangible assets

 

 

 

 

 

  Contractual rights in place

 

 

 

44,163 

 

Deferred income taxes, net

 

 

 

(32,871)

 

Liabilities assumed

 

 

 

(11,965)

 

Net identifiable assets acquired

 

 

 

$     177,538 

 

Goodwill

 

 

 

$       42,325 

 



Acquisitions 2017 [Member]  
Significant Acquisitions And Disposals [Line Items]  
Schedule of Business Acquisitions



 

 

 

 

 



 

 

 

 

 

in thousands

2017

 

Fair Value of Purchase Consideration

 

 

 

 

 

Cash

 

 

 

$  1,072,978 

 

Payable to seller

 

 

 

7,837 

 

Total fair value of purchase consideration

 

 

 

$  1,080,815 

 

Identifiable Assets Acquired and Liabilities Assumed

 

 

 

 

 

Accounts and notes receivable, net

 

 

 

$       14,955 

 

Inventories

 

 

 

21,679 

 

Other current assets

 

 

 

608 

 

Investments

 

 

 

3,590 

 

Property, plant & equipment

 

 

 

433,606 

 

Other intangible assets

 

 

 

 

 

  Contractual rights in place

 

 

 

295,482 

 

Liabilities assumed

 

 

 

(3,894)

 

Net identifiable assets acquired and retained

 

 

 

$     766,026 

 

Goodwill

 

 

 

$       27,497 

 

Net Assets Divested Immediately Upon Acquisition

 

 

 

$     287,292 

 



v3.10.0.1
UNAUDITED SUPPLEMENTARY DATA (Tables)
12 Months Ended
Dec. 31, 2018
UNAUDITED SUPPLEMENTARY DATA [Abstract]  
Summary of Selected Quarterly Financial Information (Unaudited)



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



2018

 



Three Months Ended

 

in thousands, except per share data

March 31

 

June 30

 

Sept 30

 

Dec 31

 

Total revenues

$     854,474 

 

$  1,200,151 

 

$  1,240,197 

 

$  1,088,047 

 

Gross profit

159,334 

 

323,184 

 

343,142 

 

275,285 

 

Operating earnings

81,195 

 

230,843 

 

249,184 

 

186,491 

 

Earnings from continuing operations

53,395 

 

160,302 

 

179,864 

 

124,280 

 

Net earnings

52,979 

 

159,652 

 

179,151 

 

124,023 

 

Basic earnings per share from continuing operations

$           0.40 

 

$           1.21 

 

$           1.36 

 

$           0.94 

 

Diluted earnings per share from continuing operations

$           0.40 

 

$           1.20 

 

$           1.34 

 

$           0.93 

 

Basic net earnings per share

$           0.40 

 

$           1.21 

 

$           1.35 

 

$           0.94 

 

Diluted net earnings per share

$           0.39 

 

$           1.19 

 

$           1.34 

 

$           0.93 

 







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



2017

 



Three Months Ended

 

in thousands, except per share data

March 31

 

June 30

 

Sept 30

 

Dec 31

 

Total revenues

$     787,328 

 

$  1,030,763 

 

$  1,094,715 

 

$     977,490 

 

Gross profit

158,221 

 

290,017 

 

303,758 

 

241,517 

 

Operating earnings

70,388 

 

191,976 

 

227,478 

 

149,202 

 

Earnings from continuing operations

43,523 

 

111,749 

 

110,150 

 

327,969 

 

Net earnings

44,921 

 

120,139 

 

108,579 

 

327,546 

 

Basic earnings per share from continuing operations

$           0.33 

 

$           0.84 

 

$           0.83 

 

$           2.47 

 

Diluted earnings per share from continuing operations

$           0.32 

 

$           0.83 

 

$           0.82 

 

$           2.43 

 

Basic net earnings per share

$           0.34 

 

$           0.91 

 

$           0.82 

 

$           2.47 

 

Diluted net earnings per share

$           0.33 

 

$           0.89 

 

$           0.81 

 

$           2.43 

 



v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
USD ($)
state
item
segment
factor
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Mar. 31, 2019
USD ($)
Change in Accounting Estimate [Line Items]          
State of incorporation   New Jersey      
Number of states | state   20      
Number of demographic factors | factor   3      
Revenues from discontinued operations   $ 0 $ 0 $ 0  
Income tax receivables   922 106,980    
Bad debt expense   251 812 (1,190)  
Write-offs of accounts receivables   1,291 1,384 1,544  
Capitalized software costs   4,155 4,446    
Capitalized software costs during the year   $ 2,213 1,988 152  
Number of Rabbi Trust estabished | item   2      
Net gains (losses) of the Rabbi Trust investments   $ (2,741) 2,441 2,741  
Unrealized net gains (losses) of the Rabbi Trust investments   (4,386) (3,618) 1,599  
Loss on impairment of long-lived assets     0 10,506  
Goodwill   $ 3,165,396 $ 3,122,321 3,094,824  
Percentage of goodwill in total assets   32.00% 33.00%    
Percentage of net property, plant & equipment in total assets   43.00%      
Number of operating segments | segment   4      
Number of Reporting Units | item   17      
Percentage of net other intangible assets in total assets   11.00%      
Stripping costs   $ 78,911 $ 65,944 55,987  
Capitalized pre-production stripping costs   95,800 81,241    
Asset Retirement Obligation   225,726 218,117 223,872  
Spread between the amount accrued and the maximum environmental loss   3,105      
Maximum self-insurance coverage per occurrence for losses related to workers' compensation   2,000      
Maximum self-insurance coverage per occurrence for automotive and general/product liability   $ 3,000      
Accounting Standards Codification Topic 740 - Income Taxes recognition threshold for uncertain tax positions   50.00%      
Goodwill impairment charges   $ 0 0 0  
Reclassification of stranded tax effects     $ (29,629)    
Expected return on plan assets   7.00% 7.00%    
Goodwill [Member]          
Change in Accounting Estimate [Line Items]          
Number of Reporting Units | item   9      
Accounting Standards Update 2016-09 [Member]          
Change in Accounting Estimate [Line Items]          
Tax reduction from net excess tax benefits from share based compensation   $ 20,137 $ 22,962 24,847  
ASU 2017-07 [Member]          
Change in Accounting Estimate [Line Items]          
All other components   16,539 8,102 $ 13,715  
Accounting Standards Update 2018-02 [Member]          
Change in Accounting Estimate [Line Items]          
Reclassification of stranded tax effects   $ 29,629      
Minimum [Member] | Machinery and Equipment [Member]          
Change in Accounting Estimate [Line Items]          
Estimated service lives   3 years      
Minimum [Member] | Buildings [Member]          
Change in Accounting Estimate [Line Items]          
Estimated service lives   7 years      
Minimum [Member] | Land Improvements [Member]          
Change in Accounting Estimate [Line Items]          
Estimated service lives   8 years      
Maximum [Member] | Machinery and Equipment [Member]          
Change in Accounting Estimate [Line Items]          
Estimated service lives   35 years      
Maximum [Member] | Buildings [Member]          
Change in Accounting Estimate [Line Items]          
Estimated service lives   20 years      
Maximum [Member] | Land Improvements [Member]          
Change in Accounting Estimate [Line Items]          
Estimated service lives   20 years      
Tax Year 2017 [Member]          
Change in Accounting Estimate [Line Items]          
Income tax receivables     $ 106,000    
Forecast [Member]          
Change in Accounting Estimate [Line Items]          
Expected return on plan assets 5.75%        
Subsequent Event [Member] | ASU 2016-02 [Member]          
Change in Accounting Estimate [Line Items]          
Operating Lease, Liability, Statement of Financial Position [Extensible List]         us-gaap:Liabilities
Operating Lease, Liability         $ 430,000
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Results from Discontinued Operations) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
DISCONTINUED OPERATIONS [Abstract]      
Pretax earnings (loss) $ (2,748) $ 12,959 $ (4,877)
Income tax (expense) benefit 712 (5,165) 1,962
Earnings (loss) on discontinued operations, net of tax $ (2,036) $ 7,794 $ (2,915)
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Depreciation, Depletion, Accretion and Amortization Expense) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]      
Depreciation $ 276,814 $ 250,835 $ 238,237
Depletion 23,260 19,342 17,812
Accretion 10,776 11,415 11,059
Amortization of leaseholds 472 608 267
Amortization of intangible 34,924 23,765 17,565
Total $ 346,246 $ 305,965 $ 284,940
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Fair Value Measurement on Recurring Basis) (Details) - Recurring [Member] - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total $ 19,164 $ 20,348
Level 1 [Member] | Mutual Funds [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 19,164 20,348
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 1,015 1,203
Level 2 [Member] | Money Market Mutual Fund [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total $ 1,015 $ 1,203
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Liabilities Under Self-Insurance Program) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]    
Self-insured liabilities (undiscounted) $ 68,912 $ 58,216
Insured liabilities (undiscounted) $ 4,377 $ 7,892
Discount Rate 2.93% 1.93%
Other accounts and notes receivables $ 631 $ 6,158
Investments and long-term receivables 3,932 7,246
Other current liabilities (18,466) (20,036)
Other noncurrent liabilities (48,049) (41,792)
Net liabilities (discounted) $ (61,952) $ (48,424)
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Payments (Undiscounted) Under Self-Insurance Program) (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
2019 $ 20,529
2020 15,232
2021 11,615
2022 6,360
2023 $ 3,665
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Unrecognized Compensation Expense) (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Compensation Expense, Total/weighted-average $ 23,724
Expected Weighted-average Recognition (Years) 1 year 7 months 6 days
SOSARs [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Compensation Expense, SOSARs $ 3,376 [1]
Expected Weighted-average Recognition (Years) 1 year 4 months 24 days [1]
Performance Shares [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Compensation Expense, shares $ 14,250
Expected Weighted-average Recognition (Years) 1 year 7 months 6 days
Restricted Shares [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Compensation Expense, shares $ 6,098
Expected Weighted-average Recognition (Years) 1 year 8 months 12 days
[1] Stock-Only Stock Appreciation Rights (SOSARs)
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Pretax Compensation Expense) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Income tax benefits $ 5,940 $ 6,226 $ 6,925
Performance Shares, Restricted Stock Units, And Stock Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pretax compensation expense $ 23,250 $ 24,367 $ 17,823
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Weighted-Average Common Shares Outstanding Assuming Dilution) (Details) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]      
Weighted-average common shares outstanding 132,393 132,513 133,205
Dilutive effect of SOSARs 963 1,295 1,339
Dilutive effect of Other stock compensation plans 570 1,070 1,246
Weighted-average common shares outstanding, assuming dilution 133,926 134,878 135,790
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Antidilutive Common Stock Equivalents) (Details) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]      
Antidilutive common stock equivalents 162 79 97
v3.10.0.1
REVENUES (Narrative) (Details)
$ in Thousands
3 Months Ended 12 Months Ended 24 Months Ended
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
item
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2013
USD ($)
Dec. 31, 2019
USD ($)
Revenue Recognition [Line Items]                          
Proceeds from sale of future production                       $ 226,926  
Revenues $ 1,088,047 $ 1,240,197 $ 1,200,151 $ 854,474 $ 977,490 $ 1,094,715 $ 1,030,763 $ 787,328 $ 4,382,869 [1] $ 3,890,296 [1] $ 3,592,667 [1]    
Number of quarries | item                 8        
Term of the VPPs                 25 years        
Service [Member]                          
Revenue Recognition [Line Items]                          
Revenues                 $ 198,897 113,422 42,904    
Minimum [Member]                          
Revenue Recognition [Line Items]                          
Coverage of warranty provisions                 9 months        
Maximum [Member]                          
Revenue Recognition [Line Items]                          
Coverage of warranty provisions                 1 year        
Maximum [Member] | Construction Paving [Member]                          
Revenue Recognition [Line Items]                          
Costs for paving contracts expense, expected amortization period                 1 year        
Forecast [Member]                          
Revenue Recognition [Line Items]                          
Estimated deferred revenue to be recognized in the next 12 months                         $ 7,500
Aggregates [Member]                          
Revenue Recognition [Line Items]                          
Revenues [1]                 $ 3,239,578 $ 2,842,737 $ 2,741,372    
Aggregates [Member] | Minimum [Member]                          
Revenue Recognition [Line Items]                          
Percent of shipments used for publicly funded construction                 45.00%        
Aggregates [Member] | Maximum [Member]                          
Revenue Recognition [Line Items]                          
Percent of shipments used for publicly funded construction                 55.00%        
[1] The geographic markets are defined by states/countries as follows:East market - Arkansas, Delaware, Illinois, Kentucky, Maryland, North Carolina, Pennsylvania, Tennessee, Virginia, and Washington D.C.Gulf Coast market - Alabama, Florida, Georgia, Louisiana, Mexico, Mississippi, Oklahoma, South Carolina, Texas and the BahamasWest market - Arizona, California and New Mexico
v3.10.0.1
REVENUES (Revenues by Geographic Market) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues $ 1,088,047 $ 1,240,197 $ 1,200,151 $ 854,474 $ 977,490 $ 1,094,715 $ 1,030,763 $ 787,328 $ 4,382,869 [1] $ 3,890,296 [1] $ 3,592,667 [1]
Operating Segments [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 4,656,940 4,143,653 3,813,130
Intersegment Sales [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 (274,071) (253,357) (220,463)
East [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 1,523,330 1,402,923 1,198,293
Gulf Coast [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 2,033,447 1,703,272 1,707,910
West [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 1,100,163 1,037,458 906,927
Aggregates [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 3,239,578 2,842,737 2,741,372
Aggregates [Member] | Operating Segments [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1],[2]                 3,513,649 3,096,094 2,961,835
Aggregates [Member] | Intersegment Sales [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 (274,071) (253,357) (220,463)
Aggregates [Member] | East [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 1,109,489 1,045,682 994,559
Aggregates [Member] | Gulf Coast [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 1,821,853 1,512,505 1,497,762
Aggregates [Member] | West [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 582,307 537,907 469,514
Asphalt [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 733,182 622,074 512,310
Asphalt [Member] | Operating Segments [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 733,182 622,074 512,310
Asphalt [Member] | Intersegment Sales [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 0 0 0
Asphalt [Member] | East [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 156,591 112,673 0
Asphalt [Member] | Gulf Coast [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 131,745 80,311 102,035
Asphalt [Member] | West [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 444,846 429,090 410,275
Concrete [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 401,999 417,745 330,125
Concrete [Member] | Operating Segments [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 401,999 417,745 330,125
Concrete [Member] | Intersegment Sales [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 0 0 0
Concrete [Member] | East [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 257,250 244,568 203,734
Concrete [Member] | Gulf Coast [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 71,739 102,716 99,253
Concrete [Member] | West [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 73,010 70,461 27,138
Calcium [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 8,110 7,740 8,860
Calcium [Member] | Operating Segments [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 8,110 7,740 8,860
Calcium [Member] | Intersegment Sales [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 0 0 0
Calcium [Member] | East [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 0 0 0
Calcium [Member] | Gulf Coast [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 8,110 7,740 8,860
Calcium [Member] | West [Member]                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues [1]                 $ 0 $ 0 $ 0
[1] The geographic markets are defined by states/countries as follows:East market - Arkansas, Delaware, Illinois, Kentucky, Maryland, North Carolina, Pennsylvania, Tennessee, Virginia, and Washington D.C.Gulf Coast market - Alabama, Florida, Georgia, Louisiana, Mexico, Mississippi, Oklahoma, South Carolina, Texas and the BahamasWest market - Arizona, California and New Mexico
[2] Includes product sales, as well as freight & delivery costs that we pass along to our customers, and service revenues (see Note 2) related to aggregates.
v3.10.0.1
REVENUES (Freight & Delivery Revenues) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Disaggregation of Revenue [Line Items]                      
Total revenues $ 1,088,047 $ 1,240,197 $ 1,200,151 $ 854,474 $ 977,490 $ 1,094,715 $ 1,030,763 $ 787,328 $ 4,382,869 [1] $ 3,890,296 [1] $ 3,592,667 [1]
Freight & Delivery Revenues [Member]                      
Disaggregation of Revenue [Line Items]                      
Total revenues [2]                 (641,815) (528,916) (535,929)
Total Revenues Excluding Freight & Delivery [Member]                      
Disaggregation of Revenue [Line Items]                      
Total revenues                 $ 3,741,054 $ 3,361,380 $ 3,056,738
[1] The geographic markets are defined by states/countries as follows:East market - Arkansas, Delaware, Illinois, Kentucky, Maryland, North Carolina, Pennsylvania, Tennessee, Virginia, and Washington D.C.Gulf Coast market - Alabama, Florida, Georgia, Louisiana, Mexico, Mississippi, Oklahoma, South Carolina, Texas and the BahamasWest market - Arizona, California and New Mexico
[2] Includes freight & delivery to remote distribution sites.
v3.10.0.1
REVENUES (Reconciliation of Deferred Revenue Balances) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
REVENUES [Abstract]      
Balance at beginning of year $ 199,556 $ 206,468 $ 214,060
Revenue recognized from deferred revenue (6,773) (6,912) (7,592)
Balance at end of year $ 192,783 $ 199,556 $ 206,468
v3.10.0.1
INVENTORIES (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
INVENTORIES [Abstract]      
Inventory classified as long-term assets (other noncurrent assets) $ 9,980 $ 11,810  
Inventories valued under the LIFO method 308,257 252,808  
Decrease in cost of revenues due to the effect of the LIFO liquidation 132 2,714 $ 3,956
Increase in net earnings due to the effect of the LIFO liquidation 99 1,662 2,419
Excess of estimated current cost over LIFO cost 175,844 168,829  
Approximate effect on net earnings due to the adoption of the LIFO method $ 5,223 $ 8,092 $ (8,338)
v3.10.0.1
INVENTORIES (Inventories) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
INVENTORIES [Abstract]    
Finished products [1] $ 372,604 $ 327,711
Raw materials 27,942 27,152
Products in process 3,064 1,827
Operating supplies and other 25,720 27,648
Total 429,330 384,338
Encumbered inventories $ 3,230 $ 2,808
[1] Includes inventories encumbered by volumetric production payments (see Note 2), as follows: December 31, 2018 - $3,230 thousand and December 31, 2017 - $2,808 thousand.
v3.10.0.1
PROPERTY, PLANT & EQUIPMENT (Property, Plant and Equipment) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Line Items]    
Total, gross $ 8,457,619 $ 7,969,312
Less allowances for depreciation, depletion and amortization 4,220,312 4,050,381
Total, net 4,237,307 3,918,931
Land and Land Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Total, gross [1] 2,823,092 2,742,285
Buildings [Member]    
Property, Plant and Equipment [Line Items]    
Total, gross 139,948 135,655
Machinery and Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Total, gross 5,106,918 4,740,212
Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Total, gross 18,217 17,354
Deferred Asset Retirement Costs [Member]    
Property, Plant and Equipment [Line Items]    
Total, gross 183,324 172,631
Construction in Progress [Member]    
Property, Plant and Equipment [Line Items]    
Total, gross 186,120 161,175
Depletable Land [Member]    
Property, Plant and Equipment [Line Items]    
Total, gross $ 1,626,899 $ 1,606,303
[1] Includes depletable land, as follows: December 31, 2018 - $1,626,899 thousand and December 31, 2017 - $1,606,303 thousand.
v3.10.0.1
PROPERTY, PLANT & EQUIPMENT (Capitalized Interest Costs and Total Interest Costs Incurred) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
PROPERTY, PLANT & EQUIPMENT [Abstract]      
Capitalized interest cost $ 3,674 $ 5,177 $ 7,468
Total interest cost incurred before recognition of the capitalized amount $ 141,651 $ 300,699 $ 141,544
v3.10.0.1
DERIVATIVE INSTRUMENTS (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2016
Derivative [Line Items]      
Estimated amount of pretax loss in AOCI reclassified to earnings for the next 12-month period   $ 308  
Interest rate hedges $ (11,438) $ (11,180) $ (13,300)
Debt [Member]      
Derivative [Line Items]      
Loss reclassified from AOCI $ 1,405    
v3.10.0.1
DERIVATIVE INSTRUMENTS (Effects of Changes in Fair Values of Derivatives Designated as Cash Flow Hedges) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
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) $ (306) $ (3,070) $ (2,008)
v3.10.0.1
DEBT (Narrative) (Details) - USD ($)
1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2018
Feb. 28, 2018
Jan. 31, 2018
Dec. 31, 2017
Jul. 31, 2017
Jun. 30, 2017
Mar. 31, 2017
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Sep. 30, 2017
Debt Instrument [Line Items]                        
Discounts and debt issuance costs                 $ 5,161,000 $ 9,808,000    
Total long-term debt - face value       $ 2,881,529,000         2,846,396,000 2,881,529,000    
Long term debt       2,854,865,000         2,779,380,000 2,854,865,000    
Total short-term debt       0         133,000,000 0    
Repayments of long term debt         $ 565,560,000       $ 892,055,000 1,463,308,000 $ 130,000  
Net proceeds   $ 846,029,000                    
Net noncash expense       4,228,000 3,029,000         7,257,000    
Net noncash expense               $ 466,000        
Premium for repayments of debt         43,020,000     5,608,000   139,187,000    
Transaction costs for repayments of debt         $ 28,000     1,314,000   1,586,000    
Combined charge, component of interest expense               $ 7,388,000   148,030,000    
Term Loan Due 2018 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value       350,000,000           350,000,000    
Total short-term debt       350,000,000           350,000,000    
Debt issued, term                 6 months      
3.90% notes due 2027 [Member]                        
Debt Instrument [Line Items]                        
Net proceeds             $ 345,450,000          
7.50% notes due 2021 [Member]                        
Debt Instrument [Line Items]                        
Face value       564,889,000           564,889,000    
Repayments of debt       662,613,000                
Premium for repayments of debt       96,167,000                
Transaction costs for repayments of debt       1,558,000                
Bank Line of Credit [Member]                        
Debt Instrument [Line Items]                        
Maximum borrowing capacity                 $ 750,000,000      
Commitment fee                 0.15%      
Available borrowing capacity                 $ 572,021,000      
Total long-term debt - face value       235,000,000           235,000,000    
Borrowings                 $ 133,000,000      
Bank Line of Credit [Member] | LIBOR [Member]                        
Debt Instrument [Line Items]                        
Applicable margin on borrowing rate                 1.25%      
Bank Line of Credit [Member] | Base Rate [Member]                        
Debt Instrument [Line Items]                        
Applicable margin on borrowing rate                 0.25%      
Bank Line of Credit [Member] | Maximum, Upon Certain Acquisitions [Member]                        
Debt Instrument [Line Items]                        
Debt to EBITDA ratio                 3.75      
Standby Letters of Credit [Member]                        
Debt Instrument [Line Items]                        
Outstanding standby letters of credit                 $ 44,979,000      
Period of standby letters of credit                 1 year      
Standby Letters of Credit [Member] | LIBOR [Member]                        
Debt Instrument [Line Items]                        
Applicable margin on borrowing rate                 0.175%      
Maximum [Member] | Bank Line of Credit [Member]                        
Debt Instrument [Line Items]                        
Debt to EBITDA ratio                 3.5      
Commitment fee                 0.25%      
Maximum [Member] | Bank Line of Credit [Member] | LIBOR [Member]                        
Debt Instrument [Line Items]                        
Applicable margin on borrowing rate                 1.75%      
Maximum [Member] | Bank Line of Credit [Member] | Base Rate [Member]                        
Debt Instrument [Line Items]                        
Applicable margin on borrowing rate                 0.75%      
Minimum [Member] | Bank Line of Credit [Member]                        
Debt Instrument [Line Items]                        
EBITDA to net cash interest expense ratio                 3.0      
Commitment fee                 0.10%      
Minimum [Member] | Bank Line of Credit [Member] | LIBOR [Member]                        
Debt Instrument [Line Items]                        
Applicable margin on borrowing rate                 1.00%      
Minimum [Member] | Bank Line of Credit [Member] | Base Rate [Member]                        
Debt Instrument [Line Items]                        
Applicable margin on borrowing rate                 0.00%      
Notes [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value                 $ 2,846,396,000      
Face value           $ 1,000,000,000            
Net proceeds           989,512,000            
Notes [Member] | 3.90% notes due 2027 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value       400,000,000         $ 400,000,000 400,000,000    
Maturity year                 2027      
Face value           $ 400,000,000            
Interest rate           3.90% 3.90%   3.90%      
Notes [Member] | 3.90% notes due 2027 [Member] | June 2017 Issuance [Member]                        
Debt Instrument [Line Items]                        
Face value           $ 50,000,000            
Notes [Member] | 3.90% notes due 2027 [Member] | March 2017 Issuance [Member]                        
Debt Instrument [Line Items]                        
Face value             $ 350,000,000          
Notes [Member] | Term loan due 2021 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value           250,000,000            
Notes [Member] | Term Loan Due 2021 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value       250,000,000         $ 0 250,000,000    
Maturity year                 2021      
Notes [Member] | Investment-Grade Type Covenants Governed [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value                 $ 2,846,188,000      
Notes [Member] | 4.50% notes due 2047 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value       700,000,000         $ 700,000,000 700,000,000    
Maturity year                 2047      
Face value           $ 700,000,000            
Interest rate           4.50%     4.50%      
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    
Maturity year                 2025      
Interest rate                 4.50%      
Notes [Member] | Floating-Rate Notes Due 2020 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value       250,000,000         $ 250,000,000 250,000,000    
Maturity year                 2020      
Face value           $ 250,000,000            
Notes [Member] | 10.375% notes due 2018 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value           $ 250,000,000            
Interest rate           10.375%            
Notes [Member] | 7.00% notes due 2018 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value           $ 272,512,000            
Interest rate           7.00%            
Notes [Member] | 7.50% notes due 2021 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value       35,111,000         $ 0 35,111,000    
Maturity year                 2021      
Repayments of long term debt     $ 40,719,000                  
Face value     $ 35,111,000                  
Interest rate     7.50%           7.50%      
Net noncash expense     $ 263,000                  
Premium for repayments of debt     $ 5,608,000                  
Notes [Member] | 4.70% notes due 2048 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value       0         $ 460,949,000 0    
Maturity year                 2048      
Face value   $ 350,000,000                    
Interest rate   4.70%             4.70%      
Net noncash expense   $ 203,000                    
Premium for repayments of debt $ 38,164,000                      
Notes [Member] | Floating-Rate Notes Due 2021 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value       0         $ 500,000,000 0   $ 600,000,000
Maturity year                 2021      
Face value   $ 500,000,000                    
Interest rate                       7.50%
Notes [Member] | 7.15% notes due 2037 [Member]                        
Debt Instrument [Line Items]                        
Total long-term debt - face value       240,188,000         $ 129,239,000 240,188,000    
Maturity year                 2037      
Repayments of long term debt 110,949,000                      
Interest rate                 7.15%      
Transaction costs for repayments of debt $ 1,314,000                      
Bank Line of Credit [Member]                        
Debt Instrument [Line Items]                        
Maturity date                 Dec. 31, 2021      
Total long-term debt - face value [1]       $ 250,000,000         $ 0 $ 250,000,000    
[1] 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 if we have the intent and ability to extend payment beyond twelve months.
v3.10.0.1
DEBT (Debt) (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Feb. 28, 2018
Jan. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Debt Instrument [Line Items]              
Total short-term debt $ 133,000,000     $ 0      
Total long-term debt - face value 2,846,396,000     2,881,529,000      
Unamortized discounts and debt issuance costs (67,016,000)     (26,664,000)      
Total long-term debt - book value 2,779,380,000     2,854,865,000      
Less current maturities 23,000     41,383,000      
Total long-term debt - reported value 2,779,357,000     2,813,482,000      
Estimated fair value of long-term debt 2,695,802,000     2,983,419,000      
Bank Line of Credit [Member]              
Debt Instrument [Line Items]              
Total short-term debt [1],[2] $ 133,000,000     0      
Maturity date Dec. 31, 2021            
Effective interest rate [1],[2] 1.25%            
Bank Line of Credit [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value [1] $ 0     250,000,000      
Maturity date Dec. 31, 2021            
Notes [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 2,846,396,000            
Notes [Member] | Term Loan Due 2018 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value [3] $ 0     350,000,000      
Maturity year 2018            
Notes [Member] | Floating-Rate Notes Due 2020 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 250,000,000     250,000,000      
Maturity year 2020            
Effective interest rate 3.50%            
Notes [Member] | Floating-Rate Notes Due 2021 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 500,000,000     0 $ 600,000,000    
Interest rate         7.50%    
Maturity year 2021            
Effective interest rate 3.71%            
Notes [Member] | 7.50% notes due 2021 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 0     35,111,000      
Interest rate 7.50%   7.50%        
Maturity year 2021            
Notes [Member] | 8.85% notes due 2021 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 6,000,000     6,000,000      
Interest rate 8.85%            
Maturity year 2021            
Effective interest rate 8.88%            
Notes [Member] | Term loan due 2021 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value           $ 250,000,000  
Notes [Member] | Term Loan Due 2021 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 0     250,000,000      
Maturity year 2021            
Notes [Member] | 4.50% notes due 2025 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 400,000,000     400,000,000      
Interest rate 4.50%            
Maturity year 2025            
Effective interest rate 4.65%            
Notes [Member] | 3.90% notes due 2027 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 400,000,000     400,000,000      
Interest rate 3.90%         3.90% 3.90%
Maturity year 2027            
Effective interest rate 4.00%            
Notes [Member] | 7.15% notes due 2037 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 129,239,000     240,188,000      
Interest rate 7.15%            
Maturity year 2037            
Effective interest rate 8.05%            
Notes [Member] | 4.50% notes due 2047 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 700,000,000     700,000,000      
Interest rate 4.50%         4.50%  
Maturity year 2047            
Effective interest rate 4.59%            
Notes [Member] | 4.70% notes due 2048 [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 460,949,000     0      
Interest rate 4.70% 4.70%          
Maturity year 2048            
Effective interest rate 5.42%            
Other Notes [Member]              
Debt Instrument [Line Items]              
Total long-term debt - face value $ 208,000     $ 230,000      
Effective interest rate 6.46%            
[1] 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 if we have the intent and ability to extend payment beyond twelve months.
[2] The effective interest rate reflects the margin above LIBOR for LIBOR-based borrowings. We also paid upfront fees that are amortized to interest expense and pay fees for unused borrowing capacity and standby letters of credit.
[3] This short-term loan was refinanced on a long-term basis in February 2018 as discussed below. Thus, it was classified as long-term debt as of December 31, 2017.
v3.10.0.1
DEBT (Schedule of Principal and Interest Debt Payments) (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
DEBT [Abstract]  
2019, Total $ 121,629
2020, Total 366,366
2021, Total 606,312
2022, Total 96,041
2023, Total 96,041
2019, Principal 23
2020, Principal 250,025
2021, Principal 506,026
2022, Principal 28
2023, Principal 30
2019, Interest 121,606
2020, Interest 116,341
2021, Interest 100,286
2022, Interest 96,013
2023, Interest $ 96,011
v3.10.0.1
DEBT (Standby Letters of Credit) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Line of Credit Facility [Line Items]      
Risk management insurance $ 68,912 $ 58,216  
Reclamation/restoration requirements 225,726 $ 218,117 $ 223,872
Standby Letters of Credit [Member]      
Line of Credit Facility [Line Items]      
Risk management insurance 38,111    
Reclamation/restoration requirements 6,868    
Total $ 44,979    
v3.10.0.1
OPERATING LEASES (Rental Expense from Continuing Operations Under Nonmineral Operating Leases) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
OPERATING LEASES [Abstract]      
Minimum rentals $ 76,443 $ 59,536 $ 52,713
Contingent rentals (based principally on usage) 54,572 50,822 57,278
Total $ 131,015 $ 110,358 $ 109,991
v3.10.0.1
OPERATING LEASES (Future Minimum Operating Lease Payments) (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
OPERATING LEASES [Abstract]  
2019 $ 47,979
2020 43,540
2021 35,732
2022 27,463
2023 19,707
Thereafter 195,104
Total $ 369,525
v3.10.0.1
ACCRUED ENVIRONMENTAL REMEDIATION COSTS (Narrative) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
ACCRUED ENVIRONMENTAL REMEDIATION COSTS [Abstract]    
Long-term portion of accrued environmental remediation costs $ 13,597 $ 12,760
v3.10.0.1
ACCRUED ENVIRONMENTAL REMEDIATION COSTS (Accrued Environmental Remediation Costs) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Loss Contingencies [Line Items]    
Accrued Environmental Remediation Costs $ 50,430 $ 32,488
Continuing Operations [Member]    
Loss Contingencies [Line Items]    
Accrued Environmental Remediation Costs 39,745 21,784
Retained From Former Chemicals Business [Member]    
Loss Contingencies [Line Items]    
Accrued Environmental Remediation Costs $ 10,685 $ 10,704
v3.10.0.1
INCOME TAXES (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Operating Loss Carryforwards [Line Items]      
U.S. federal corporate income tax rate 21.00% 35.00% 35.00%
Tax Cuts and Jobs Act of 2017, percent of immediate deductibility of certain capital investments 100.00%    
Tax Cuts and Jobs Act of 2017, incomplete accounting, provisional expense, deferred tax assets, executive compensation   $ 1,403  
State net operating loss carryforwards $ 68,436 73,083  
Income tax receivables 922 106,980  
Interest and penalties recognized as income tax expense (benefit) (1,477) 420 $ 266
Balance of accrued interest and penalties included in lliability for unrecognized income tax benefits 312 1,789 1,369
Unrecognized income tax benefits that would affect the effective tax rate if recognized 3,481 10,673 9,884
Tax Cuts And Jobs Act Of 2017, decrease to net deferred income tax liability 0 301,567 0
Tax Cuts and Jobs Act of 2017, incomplete accounting, provisional transition tax, foreign repatriation 595 12,301 $ 0
Deferred income tax liability not recognized from undistributed U.S. federal income tax 0    
Deferred income tax liability not recognized from undistributed foreign earnings $ 0    
Reclassification of stranded tax effects   (29,629)  
Tax Year 2017 [Member]      
Operating Loss Carryforwards [Line Items]      
Income tax receivables   $ 106,000  
Scenario, Plan [Member]      
Operating Loss Carryforwards [Line Items]      
U.S. federal corporate income tax rate 21.00%    
Alabama [Member]      
Operating Loss Carryforwards [Line Items]      
State net operating loss carryforwards $ 65,577    
Alabama [Member] | State [Member]      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards, valuation allowance $ 29,183    
Alabama [Member] | State [Member] | Earliest Tax Year [Member]      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards expiration date Dec. 31, 2023    
Alabama [Member] | State [Member] | Latest Tax Year [Member]      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards expiration date Dec. 31, 2032    
Accounting Standards Update 2018-02 [Member]      
Operating Loss Carryforwards [Line Items]      
Reclassification of stranded tax effects $ 29,629    
v3.10.0.1
INCOME TAXES (Components of Earnings from Continuing Operations before Income Taxes) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
INCOME TAXES [Abstract]      
Domestic $ 593,446 $ 346,668 $ 513,721
Foreign 29,844 14,648 33,536
Earnings from continuing operations before income taxes $ 623,290 $ 361,316 $ 547,257
v3.10.0.1
INCOME TAXES (Provision (Benefit) for Income Taxes from Continuing Operations) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
INCOME TAXES [Abstract]      
Current, Federal $ 21,111 $ (7,416) $ 72,506
Current, State and local 15,127 4,661 14,774
Current, Foreign 4,278 3,109 6,974
Current, Total 40,516 354 94,254
Deferred, Federal 59,216 (202,184) 37,246
Deferred, State and local 8,369 (30,052) (6,647)
Deferred, Foreign (2,652) (193) (2)
Deferred, Total 64,933 (232,429) 30,597
Total income tax expense (benefit) $ 105,449 $ (232,075) $ 124,851
v3.10.0.1
INCOME TAXES (Sources and Tax Effects of Differences Between Benefit from Income Taxes and Amount Computed by Applying Federal Statutory Income Tax Rate to Losses from Continuing Operations before Income Taxes) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
INCOME TAXES [Abstract]      
Income tax expense at the federal statutory tax rate $ 130,891 $ 126,461 $ 191,540
Statutory depletion (21,733) (28,995) (32,230)
State and local income taxes, net of federal income tax benefit 18,562 8,115 10,074
Share-based compensation (16,551) (20,740) (22,443)
Uncertain tax positions (6,402) 1,062 1,272
Revaluation - deferred tax balances 0 (301,567) 0
AL NOL valuation allowance release 0 (28,827) (4,791)
U.S. production deduction 0 2,452 (8,790)
Transition Tax 595 12,301 0
Foreign tax credit carryforward 0 0 (6,513)
Other, net 87 (2,337) (3,268)
Total income tax expense (benefit) $ 105,449 $ (232,075) $ 124,851
Income tax expense at the federal statutory tax rate 21.00% 35.00% 35.00%
Statutory depletion, Rate (3.50%) (8.00%) (5.90%)
State and local income taxes, net of federal income tax benefit, Rate 3.00% 2.20% 1.90%
Share-based compensation, Rate (2.70%) (5.70%) (4.10%)
Undertain tax positions, Rate 1.00% (0.30%) (0.20%)
Revaluation - deferred tax balances, rate 0.00% (83.50%) 0.00%
Al NOL valuation allowance release, Rate 0.00% (8.00%) (0.90%)
U.S. production deduction, Rate (0.00%) 0.70% (1.60%)
Foreign repatriation, Rate 0.10% 3.40% 0.00%
Foreign tax credit carryforwards, Rate 0.00% 0.00% (1.20%)
Other, net, Rate 0.00% (0.60%) (0.60%)
Effective tax rate 16.90% (64.20%) 22.80%
v3.10.0.1
INCOME TAXES (Components of Net Deferred Income Tax Liability) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
INCOME TAXES [Abstract]    
Employee benefits $ 24,407 $ 29,547
Incentive compensation 62,829 59,010
Asset retirement obligations & other reserves 55,822 47,116
State net operating losses 68,436 73,083
Federal credit carryforwards 0 51,284
Other 31,294 37,518
Total gross deferred tax assets 242,788 297,558
Valuation allowance (29,680) (29,723)
Total net deferred tax asset 213,108 267,835
Property, plant & equipment 510,604 490,459
Goodwill/other intangible assets 233,471 216,039
Other 36,316 25,418
Total deferred tax liabilities 780,391 731,916
Net deferred tax liability $ 567,283 $ 464,081
v3.10.0.1
INCOME TAXES (Changes in Unrecognized Income Tax Benefits) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
INCOME TAXES [Abstract]      
Unrecognized tax benefits as of January 1 $ 11,643 $ 10,828 $ 8,447
Increases for tax positions related to Prior years 0 27 1,368
Increases for tax positions related to Current year 698 1,039 1,040
Decreases for tax positions related to Prior years (655) (204) 0
Settlements with taxing authorities 0 0 0
Expiration of applicable statute of limitations (8,025) (47) (27)
Unrecognized tax benefits as of December 31 $ 3,661 $ 11,643 $ 10,828
v3.10.0.1
BENEFIT PLANS (Narrative) (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
USD ($)
employee
ShareBasedCompensationPlan
item
Dec. 31, 2017
USD ($)
item
Dec. 31, 2016
USD ($)
Defined Benefit Plan Disclosure [Line Items]        
Number of defined contribution plans | ShareBasedCompensationPlan   2    
Expected return on plan assets   7.00% 7.00%  
Contributions to multiemployer pension plans   $ 10,081 $ 9,253 $ 10,435
Percentage of contributions to individual multiemployer pension funds   5.00% 5.00% 5.00%
Percentage of domestic hourly labor force covered by collective bargaining agreements   8.50%    
Percentage of domestic hourly labor force covered by collective bargaining agreements expiring in 2017   7.50%    
Number of unfunded supplemental retirement plans | item   1 1  
Accrued costs for supplemental retirement plan   $ 1,122 $ 1,252  
Amount plan assets of Chemical Plan exceeds accumulated benefit obligation   6,525 5,346  
Expense recognized related to defined contribution plans   $ 40,718 44,562 $ 45,295
Mexico [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Number of employees | employee   332    
Forecast [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Expected return on plan assets 5.75%      
Pension Benefits [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Number of funded, noncontributory defined benefit pension plans | ShareBasedCompensationPlan   3    
Normal retirement age   65 years    
Projected benefit obligation   $ 958,936 1,091,223 $ 1,006,674
Accumulated benefit obligation   958,899 $ 1,090,482  
Estimated net actuarial loss expected to be amortized from accumulated other comprehensive income   4,933    
Estimated prior service cost that will be amortized from accumulated other comprehensive income   $ 1,339    
Expected return on plan assets   7.00% 7.00% 7.50%
Employer contributions   $ 109,631 $ 20,023 $ 9,576
Estimated employer contribution in 2019   $ 9,067    
Discount rate   4.39% 3.72% 4.29%
Estimated weighted-average discount rate to measure service cost   3.90% 4.63%  
Estimated weighted-average discount rate to measure interest cost   3.35% 3.63%  
Pension Benefits [Member] | Qualified Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Discretionary qualified plan contribution   $ 100,000 $ 10,600  
Employer contributions       $ 0
Pension Benefits [Member] | Nonqualified Plan [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Number of unfunded, nonqualified pension plans | ShareBasedCompensationPlan   3    
Projected benefit obligation   $ 71,435 82,136  
Accumulated benefit obligation   71,435 82,136  
Employer contributions   9,631 $ 9,423 9,576
Estimated employer contribution in 2019   $ 9,067    
Pension Benefits [Member] | Return Seeking [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Target allocation ranges for plan assets   70.00% 80.00%  
Change to new asset allocation percent   55.00%    
Pension Benefits [Member] | Liability Hedge [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Target allocation ranges for plan assets   30.00% 20.00%  
Change to new asset allocation percent   45.00%    
Postretirement Benefits [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Normal retirement age   65 years    
Projected benefit obligation   $ 40,834 $ 43,480 $ 45,546
Estimated net actuarial loss expected to be amortized from accumulated other comprehensive income   (1,344)    
Estimated prior service cost that will be amortized from accumulated other comprehensive income   (3,919)    
Estimated employer contribution in 2019   $ 5,561    
Discount rate   4.01% 3.33% 3.58%
Estimated weighted-average discount rate to measure service cost   3.56% 3.96%  
Estimated weighted-average discount rate to measure interest cost   2.90% 2.89%  
Minimum [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Discount rate   3.92% 3.24%  
Maximum [Member]        
Defined Benefit Plan Disclosure [Line Items]        
Discount rate   4.47% 3.79%  
v3.10.0.1
BENEFIT PLANS (Combined Funded Status of Plans and their Reconciliation with Related Amounts Recognized in Consolidated Financial Statements) (Details) - Pension Benefits [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Change in Benefit Obligation      
Projected benefit obligation at beginning of year $ 1,091,223 $ 1,006,674  
Service cost 5,716 6,715 $ 5,343
Interest cost 35,503 36,230 36,505
Plan amendment [1] 0 10,869  
Actuarial (gain) loss (118,827) 81,969  
Benefits paid (54,679) (51,234)  
Projected benefit obligation at end of year 958,936 1,091,223 1,006,674
Change in Fair Value of Plan Assets      
Fair value of assets at beginning of year 840,901 749,515  
Actual return on plan assets (59,083) 122,597  
Employer contributions 109,631 20,023 9,576
Benefits paid (54,679) (51,234)  
Fair value of assets at end of year 836,770 840,901 $ 749,515
Funded status (122,166) (250,322)  
Amounts Recognized in the Consolidated Balance Sheets      
Noncurrent assets 6,488 4,605  
Current liabilities (9,067) (9,478)  
Noncurrent liabilities (119,587) (245,449)  
Net amount recognized (122,166) (250,322)  
Amounts Recognized in Accumulated Other Comprehensive Income      
Net actuarial loss 240,199 250,581  
Prior service cost 7,828 9,167  
Total amount recognized $ 248,027 $ 259,748  
[1] Effective January 2017, we amended the Construction Materials Hourly Plan to increase the multiplier for years of service.
v3.10.0.1
BENEFIT PLANS (Combined Funded Status of Plans and their Reconciliation with Related Amounts Recognized in Consolidated Financial Statements II) (Details) - Postretirement Benefits [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Change in Benefit Obligation      
Projected benefit obligation at beginning of year $ 43,480 $ 45,546  
Service cost 1,357 1,167 $ 1,123
Interest cost 1,240 1,260 1,209
Actuarial loss 856 378  
Benefits paid (6,099) (4,871) (5,280)
Projected benefit obligation at end of year 40,834 43,480 45,546
Change in Fair Value of Plan Assets      
Fair value of assets at beginning of year 0 0  
Actual return on plan assets 0 0  
Fair value of assets at end of year 0 0 $ 0
Funded status (40,834) (43,480)  
Amounts Recognized in the Consolidated Balance Sheets      
Current liabilities (5,560) (5,624)  
Noncurrent liabilities (35,274) (37,856)  
Net amount recognized (40,834) (43,480)  
Amounts Recognized in Accumulated Other Comprehensive Income      
Net actuarial gain (18,624) (20,757)  
Prior service credit (11,494) (15,456)  
Total amount recognized $ (30,118) $ (36,213)  
v3.10.0.1
BENEFIT PLANS (Components of Net Periodic Benefit Cost- Pension Benefits) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31      
Expected return on plan assets 7.00% 7.00%  
Pension Benefits [Member]      
Components of Net Periodic Benefit Cost      
Service cost $ 5,716 $ 6,715 $ 5,343
Interest cost 35,503 36,230 36,505
Expected return on plan assets (59,188) (48,506) (51,562)
Amortization of prior service cost (credit) 1,340 1,340 (43)
Amortization of actuarial loss 9,826 7,397 6,163
Net periodic benefit cost (credit) (6,803) 3,176 (3,594)
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income      
Net actuarial loss (gain) (555) 7,879 33,682
Prior service cost 0 10,868 0
Reclassification of prior service (cost) credit (1,340) (1,340) 43
Reclassification of actuarial loss (9,826) (7,397) (6,163)
Amount recognized in other comprehensive income (11,721) 10,010 27,562
Amount recognized in net periodic pension benefit cost and other comprehensive income $ (18,524) $ 13,186 $ 23,968
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31      
Discount rate — PBO 3.72% 4.29% 4.55%
Discount rate — service cost 3.90% 4.63% 4.68%
Discount rate — interest cost 3.35% 3.63% 3.79%
Expected return on plan assets 7.00% 7.00% 7.50%
Weighted-average assumptions used to determine benefit obligation at December 31      
Discount rate 4.39% 3.72% 4.29%
v3.10.0.1
BENEFIT PLANS (Components of Net Periodic Benefit Cost- Other Postretirement Benefits) (Details) - Postretirement Benefits [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Components of Net Periodic Benefit Cost      
Service cost $ 1,357 $ 1,167 $ 1,123
Service cost 1,358    
Interest cost 1,240 1,260 1,209
Amortization of prior service credit (3,962) (4,236) (4,236)
Amortization of actuarial gain (1,298) (1,587) (1,751)
Net periodic benefit cost (credit) (2,662) (3,396) (3,655)
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income      
Net actuarial loss (gain) 835 342 (111)
Reclassification of prior service credit 3,962 4,236 4,236
Reclassification of actuarial gain 1,298 1,587 1,751
Amount recognized in other comprehensive income 6,095 6,165 5,876
Amount recognized in net periodic pension benefit cost and other comprehensive income $ 3,433 $ 2,769 $ 2,221
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31      
Discount rate — PBO 3.34% 3.59% 3.69%
Discount rate — service cost 3.56% 3.96% 3.77%
Discount rate — interest cost 2.90% 2.89% 2.81%
Weighted-average assumptions used to determine benefit obligation at December 31      
Discount rate 4.01% 3.33% 3.58%
v3.10.0.1
BENEFIT PLANS (Fair Values of Pension Plan Assets) (Details) - Pension Benefits [Member] - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Debt Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets $ 168,953 $ 178,512
Commodity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 14,697 17,041
Equity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 135,902 144,099
Investments In The Fair Value Hierarchy [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 319,552 339,652
Interest In Common/Collective Trusts [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 462,566 416,397
Private Partnerships [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 54,652 84,852
Total [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 836,770 840,901
Level 1 [Member] | Debt Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 0 0
Level 1 [Member] | Commodity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 0 0
Level 1 [Member] | Equity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 246 1,089
Level 1 [Member] | Investments In The Fair Value Hierarchy [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 246 1,089
Level 2 [Member] | Debt Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 168,953 178,512
Level 2 [Member] | Commodity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 14,697 17,041
Level 2 [Member] | Equity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 135,656 143,010
Level 2 [Member] | Investments In The Fair Value Hierarchy [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 319,306 338,563
Level 3 [Member] | Debt Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 0 0
Level 3 [Member] | Commodity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 0 0
Level 3 [Member] | Equity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets 0 0
Level 3 [Member] | Investments In The Fair Value Hierarchy [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total pension plan assets $ 0 $ 0
v3.10.0.1
BENEFIT PLANS (Employer Contributions for Plan) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Postretirement Benefits [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Employer contributions $ 6,099 $ 4,871 $ 5,280
2019 (estimated) 5,561    
Pension Benefits [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Employer contributions 109,631 20,023 $ 9,576
Employer contributions 54,679 $ 51,234  
2019 (estimated) $ 9,067    
v3.10.0.1
BENEFIT PLANS (Benefit Payments Which Reflect Expected Future Service, Expected to be Paid) (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Pension Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2019 $ 56,493
2020 57,191
2021 58,317
2022 59,705
2023 60,871
2024-2028 301,996
Postretirement Benefits [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2019 5,561
2020 5,381
2021 5,077
2022 4,733
2023 4,523
2024-2028 $ 17,168
v3.10.0.1
BENEFIT PLANS (Contributions by Participants to Postretirement Benefit Plans) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Postretirement Benefits [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Participants Contributions $ 1,984 $ 2,025 $ 2,085
v3.10.0.1
INCENTIVE PLANS (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Officers And Key Employees [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expense provision under cash-based compensation plans $ 36,969,000 $ 35,280,000 $ 46,758,000
Non-Incentive Eligible Employees [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expense provision under cash-based compensation plans   6,716,000  
Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pretax compensation expense $ 13,656,000 $ 16,272,000 $ 12,074,000
Weighted-average Grant Date Fair Value, Granted $ 117.20 $ 117.49 $ 87.77
Share-based compensation plans vesting period (in years) 4 years    
Performance Shares [Member] | 2018 And 2017 Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation plans vesting period (in years) 3 years    
SOSARs [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pretax compensation expense $ 4,763,000 $ 3,723,000 $ 2,744,000
Share-based compensation plans vesting period (in years) 4 years    
Share-based compensation plans expiration period (in years) 10 years    
SOSARs [Member] | 2018 And 2017 Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation plans vesting period (in years) 3 years    
Restricted Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pretax compensation expense $ 4,831,000 $ 4,371,000 $ 3,004,000
Weighted-average Grant Date Fair Value, Granted $ 117.20    
Share-based compensation plans vesting period (in years) 4 years    
Restricted Shares [Member] | 2018 And 2017 Awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation plans vesting period (in years) 3 years    
Restricted Shares [Member] | Executive Officer [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average Grant Date Fair Value, Granted   $ 117.49 $ 87.77
Deferred Stock Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pretax compensation expense $ 1,965,000 $ 2,260,000 $ 2,848,000
Deferred Stock Units [Member] | 2015 Grants [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation plans vesting period (in years) 3 years    
Minimum [Member] | Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Units paid target range 0.00%    
Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares that may be issued 8,000,000    
Maximum [Member] | Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Units paid target range 200.00%    
v3.10.0.1
INCENTIVE PLANS (Summary of Activity for Nonvested Performance/Restricted Share Units) (Details) - $ / shares
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Target Number of Shares, Beginning Balance 498,979    
Target Number of Shares, Granted 130,715    
Target Number of Shares, Vested (218,725)    
Target Number of Shares, Canceled/forfeited (60,291)    
Target Number of Shares, Ending Balance 350,678 498,979  
Weighted-average Grant Date Fair Value, Beginning Balance $ 89.16    
Weighted-average Grant Date Fair Value, Granted 117.20 $ 117.49 $ 87.77
Weighted-average Grant Date Fair Value, Vested 74.85    
Weighted-average Grant Date Fair Value, Canceled/forfeited 103.56    
Weighted-average Grant Date Fair Value, Ending Balance $ 106.06 $ 89.16  
Restricted Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Target Number of Shares, Beginning Balance 109,302    
Target Number of Shares, Granted 52,065    
Target Number of Shares, Vested (11,622)    
Target Number of Shares, Canceled/forfeited (4,366)    
Target Number of Shares, Ending Balance 145,379 109,302  
Weighted-average Grant Date Fair Value, Beginning Balance $ 97.43    
Weighted-average Grant Date Fair Value, Granted 117.20    
Weighted-average Grant Date Fair Value, Vested 100.35    
Weighted-average Grant Date Fair Value, Canceled/forfeited 110.73    
Weighted-average Grant Date Fair Value, Ending Balance $ 103.88 $ 97.43  
v3.10.0.1
INCENTIVE PLANS (Aggregate Value of Performance Shares) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate value of distributed awards $ 53,721 $ 52,368 $ 60,443
Restricted Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate value of distributed awards $ 1,345 $ 7,685 $ 0
v3.10.0.1
INCENTIVE PLANS (Weighted-Average Fair Value and Weighted-Average Assumptions Used in Estimating Fair Value of Grants) (Details) - $ / shares
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
INCENTIVE PLANS [Abstract]      
Fair value $ 43.72 $ 43.01 $ 29.20
Risk-free interest rate 2.90% 2.36% 1.66%
Dividend yield 1.39% 1.27% 1.39%
Volatility 31.49% 31.35% 30.42%
Expected term 9 years 9 years 9 years
v3.10.0.1
INCENTIVE PLANS (Summary of Our SOSAR Activity) (Details) - SOSARs [Member]
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of Shares, Outstanding at January 1, 2018 | shares 2,242,487
Number of Shares, Granted | shares 82,800
Number of Shares, Exercised | shares (583,539)
Number of Shares, Forfeited or expired | shares (165)
Number of Shares, Outstanding at December 31, 2018 | shares 1,741,583
Number of Shares, Exercisable at December 31, 2018 | shares 1,518,900
Weighted-average Exercise Price, Outstanding at January 1, 2018 | $ / shares $ 52.95
Weighted-average Exercise Price, Granted | $ / shares 121.69
Weighted-average Exercise Price, Exercised | $ / shares 45.71
Weighted-average Exercise Price, Forfeited or expired | $ / shares 79.41
Weighted-average Exercise Price, Outstanding at December 31, 2018 | $ / shares 58.64
Weighted-average Exercise Price, Exercisable at December 31, 2018 | $ / shares $ 51.39
Weighted-average Remaining Contractual Life (Years), Outstanding 3 years 8 months 12 days
Weighted-average Remaining Contractual Life (Years), Exercisable at December 31, 2018 3 years 29 days
Aggregate Intrinsic Value, Outstanding at December 31, 2018 | $ $ 72,276
Aggregate Intrinsic Value, Exercisable at December 31, 2018 | $ $ 71,284
v3.10.0.1
INCENTIVE PLANS (Aggregate Intrinsic Values of Options Exercised) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
SOSARs [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate intrinsic value of SOSARs exercised $ 49,248 $ 13,758 $ 27,705
v3.10.0.1
INCENTIVE PLANS (Cash and Stock Consideration Received and Tax Benefit Realized from SOSAR Exercises and Compensation Cost Recorded) (Details) - SOSARs [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Cash and stock consideration received from exercises $ 0 $ 0 $ 0
Tax benefit from exercises 19,083 5,331 10,767
Compensation cost $ 4,763 $ 3,723 $ 2,744
v3.10.0.1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details)
$ in Thousands
1 Months Ended 3 Months Ended 12 Months Ended 24 Months Ended
Dec. 31, 2017
USD ($)
May 31, 2007
entity
mi
Dec. 31, 2018
USD ($)
Dec. 31, 2018
USD ($)
item
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2015
USD ($)
Loss Contingencies [Line Items]                
Expenditures under the noncapital purchase commitments       $ 56,674 $ 40,526 $ 60,591    
Commitments of minimum royalties under mineral leases     $ 240,575 240,575     $ 240,575  
Expenditures for mineral royalties under mineral leases       76,761 67,933 62,978    
Asset Retirement Obligation $ 218,117   225,726 225,726 218,117 223,872 225,726  
Unrecognized tax benefits $ 11,643   3,661 3,661 $ 11,643 $ 10,828 3,661 $ 8,447
Number of other companies to perform a Remedial Investigation/ Feasibility Study related to the Lower Passaic River Clean-Up lawsuit | entity   70            
Number of miles of the River used in the Remedial Investigation/Feasibility Study | mi   17            
Increase in accrual of liability for claims and litigation             34,271  
Property, Plant and Equipment [Member]                
Loss Contingencies [Line Items]                
Unconditional purchase obligations     35,248 35,248     35,248  
Recorded unconditional purchase obligation in 2018     35,248 35,248     35,248  
Noncapital [Member]                
Loss Contingencies [Line Items]                
Unconditional purchase obligations     36,722 36,722     36,722  
Recorded unconditional purchase obligation in 2018     11,912 $ 11,912     11,912  
Parent Company [Member]                
Loss Contingencies [Line Items]                
Judge ruled allocation of fault among defendants, percentage 15.00%              
New York Water District Cases [Member]                
Loss Contingencies [Line Items]                
Number of cases | item       11        
NAFTA Arbitration [Member]                
Loss Contingencies [Line Items]                
Contingency loss       $ 0        
Occidental Chemical Co [Member]                
Loss Contingencies [Line Items]                
Judge ruled allocation of fault among defendants, percentage 50.00%              
Texas Brine [Member]                
Loss Contingencies [Line Items]                
Judge ruled allocation of fault among defendants, percentage 35.00%              
Number of cases | item       2        
Minimum [Member] | NAFTA Arbitration [Member]                
Loss Contingencies [Line Items]                
Arbitration period       2 years        
Maximum [Member] | EPA [Member]                
Loss Contingencies [Line Items]                
Estimated implementation costs       $ 1,380,000        
Standby Letters of Credit [Member]                
Loss Contingencies [Line Items]                
Outstanding standby letters of credit     44,979 44,979     $ 44,979  
Hewitt Landfill Matter [Member]                
Loss Contingencies [Line Items]                
Increase in accrual of liability for claims and litigation     $ 10,392 $ 19,032        
v3.10.0.1
COMMITMENTS AND CONTINGENCIES (Commitments Due) (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Property, Plant and Equipment [Member]  
Recorded Unconditional Purchase Obligation [Line Items]  
2019 $ 35,248
Thereafter 0
Total 35,248
Noncapital [Member]  
Recorded Unconditional Purchase Obligation [Line Items]  
2019 11,912
2020-2021 9,120
2022–2023 3,690
Thereafter 12,000
Total $ 36,722
v3.10.0.1
COMMITMENTS AND CONTINGENCIES (Minimum Royalties Under Mineral Leases) (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]  
2019 $ 23,211
2020-2021 36,630
2022-2023 26,014
Thereafter 154,720
Total $ 240,575
v3.10.0.1
EQUITY (Narrative) (Details)
12 Months Ended
Dec. 31, 2018
item
$ / shares
shares
Dec. 31, 2017
$ / shares
shares
Dec. 31, 2016
shares
EQUITY [Abstract]      
Common stock, par value | $ / shares $ 1 $ 1  
Number of votes per common stock | item 1    
Preferred stock, shares authorized 5,000,000    
Preferred stock issued 0    
Treasury Stock Shares 0 0 0
Shares remaining under the current authorization repurchase program 8,297,789    
v3.10.0.1
EQUITY (Shares Purchased and Retired) (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
EQUITY [Abstract]      
Shares Purchased and Retired, Number 1,192 510 1,427
Shares Purchased and Retired, Total purchase price $ 133,983 $ 60,303 $ 161,463
Shares Purchased and Retired, Average price per share $ 112.41 $ 118.18 $ 113.18
v3.10.0.1
EQUITY (Cash Dividends Per Share of Common Stock) (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
EQUITY [Abstract]      
Cash dividends $ 148,109 $ 132,335 $ 106,333
Cash dividends per share $ 1.12 $ 1.00 $ 0.80
v3.10.0.1
OTHER COMPREHENSIVE INCOME (Accumulated Other Comprehensive Income, Net of Tax) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
OTHER COMPREHENSIVE INCOME [Abstract]        
Interest rate hedges $ (11,180) $ (11,438) $ (13,300)  
Pension and postretirement plans (161,035) (138,028) (126,076)  
Total $ (172,215) $ (149,466) $ (139,376) $ (120,069)
v3.10.0.1
OTHER COMPREHENSIVE INCOME (Changes in Accumulated Other Comprehensive Income, Net of Tax) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]      
AOCI, Beginning balance $ (149,466) $ (139,376) $ (120,069)
Other comprehensive income (loss) before reclassifications 2,289 (14,106) (20,583)
Released stranded tax effects ASU 2018-02 (Note 9)   (29,629)  
Amounts reclassified from AOCI 4,591 4,016 1,276
Other comprehensive income (loss) 6,880 (10,090) (19,307)
Balances at January 1, 2018, due to reclassification   (179,095)  
AOCI, Ending balance (172,215) (149,466) (139,376)
Interest Rate Hedge Losses [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
AOCI, Beginning balance (11,438) (13,300) (14,494)
Other comprehensive income (loss) before reclassifications 2,496 0 0
Released stranded tax effects ASU 2018-02 (Note 9)   (2,464)  
Amounts reclassified from AOCI 226 1,862 1,194
Other comprehensive income (loss) 2,722 1,862 1,194
Balances at January 1, 2018, due to reclassification   (13,902)  
AOCI, Ending balance (11,180) (11,438) (13,300)
Pension and Postretirement Plan Actuarial Loss and Prior Service Cost [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
AOCI, Beginning balance (138,028) (126,076) (105,575)
Other comprehensive income (loss) before reclassifications (207) (14,106) (20,583)
Released stranded tax effects ASU 2018-02 (Note 9)   (27,165)  
Amounts reclassified from AOCI 4,365 2,154 82
Other comprehensive income (loss) 4,158 (11,952) (20,501)
Balances at January 1, 2018, due to reclassification   (165,193)  
AOCI, Ending balance $ (161,035) $ (138,028) $ (126,076)
v3.10.0.1
OTHER COMPREHENSIVE INCOME (Amounts Reclassified from Accumulated Other Comprehensive Income to Earnings) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Interest expense                 $ 137,977 $ 295,522 $ 134,076
Other nonoperating income                 13,000 13,357 14,624
Benefit from income taxes                 105,449 (232,075) 124,851
Total $ 124,023 $ 179,151 $ 159,652 $ 52,979 $ 327,546 $ 108,579 $ 120,139 $ 44,921 515,805 601,185 419,491
Reclassification From AOCI [Member]                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Total                 4,591 4,016 1,276
Interest Rate Hedge Losses [Member] | Reclassification From AOCI [Member]                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Interest expense                 306 3,070 2,008
Benefit from income taxes                 (80) (1,208) (814)
Total                 226 1,862 1,194
Pension and Postretirement Plan Actuarial Loss and Prior Service Cost [Member] | Reclassification From AOCI [Member]                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Other nonoperating income                 5,906 2,915 134
Benefit from income taxes                 (1,541) (761) (52)
Total                 $ 4,365 $ 2,154 $ 82
v3.10.0.1
SEGMENT REPORTING (Narrative) (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
state
segment
mi
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Number of operating segments | segment                 4    
Number of reportable segments | segment                 4    
Radius for delivering product, minimum | mi                 20    
Radius for delivering product, maximum | mi                 25    
Revenues $ 1,088,047 $ 1,240,197 $ 1,200,151 $ 854,474 $ 977,490 $ 1,094,715 $ 1,030,763 $ 787,328 $ 4,382,869 [1] $ 3,890,296 [1] $ 3,592,667 [1]
Concrete [Member]                      
Number Of States In Which Segments Serve | state                 5    
Percentage of product weight attributable to Aggregates                 80.00%    
Revenues [1]                 $ 401,999 417,745 330,125
Aggregates [Member]                      
Number Of States In Which Segments Serve | state                 20    
Number Of Additional States Served | state                 9    
Revenues [1]                 $ 3,239,578 2,842,737 2,741,372
Equity method investments 39,395       22,967       $ 39,395 22,967 22,965
Asphalt [Member]                      
Number Of States In Which Segments Serve | state                 6    
Percentage of product weight attributable to Aggregates                 95.00%    
Revenues [1]                 $ 733,182 622,074 512,310
Asphalt [Member] | Asphalt Construction Paving [Member]                      
Number Of States In Which Segments Serve | state                 3    
United States [Member]                      
Revenues                 $ 4,365,309 3,872,494 3,579,427
Nondomestic [Member]                      
Long-lived assets $ 278,520       $ 211,282       278,520 211,282 188,652
Nondomestic [Member] | Aggregates [Member]                      
Revenues                 17,560 17,802 13,240
Nondomestic [Member] | Asphalt, Concrete And Calcium [Member]                      
Revenues                 $ 0 $ 0 $ 0
[1] The geographic markets are defined by states/countries as follows:East market - Arkansas, Delaware, Illinois, Kentucky, Maryland, North Carolina, Pennsylvania, Tennessee, Virginia, and Washington D.C.Gulf Coast market - Alabama, Florida, Georgia, Louisiana, Mexico, Mississippi, Oklahoma, South Carolina, Texas and the BahamasWest market - Arizona, California and New Mexico
v3.10.0.1
SEGMENT REPORTING (Segment Financial Disclosure) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting Information [Line Items]                        
Total revenues $ 1,088,047 $ 1,240,197 $ 1,200,151 $ 854,474 $ 977,490 $ 1,094,715 $ 1,030,763 $ 787,328 $ 4,382,869 [1] $ 3,890,296 [1] $ 3,592,667 [1]  
Gross profit 275,285 $ 343,142 $ 323,184 $ 159,334 241,517 $ 303,758 $ 290,017 $ 158,221 1,100,945 993,513 988,885  
Depreciation, Depletion, Accretion and Amortization (DDA&A)                 346,246 305,965 284,940  
Capital Expenditures [2]                 475,229 464,233 344,941  
Cash and cash equivalents and restricted cash 44,404       146,646       44,404 146,646 268,019 $ 285,210
Total assets 9,832,130       9,504,891       9,832,130 9,504,891 8,471,475  
Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 4,656,940 4,143,653 3,813,130  
Total assets [3] 9,685,498       9,112,326       9,685,498 9,112,326 8,046,371  
Intersegment Sales [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 (274,071) (253,357) (220,463)  
Aggregates [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 3,239,578 2,842,737 2,741,372  
Aggregates [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1],[4]                 3,513,649 3,096,094 2,961,835  
Gross profit [5]                 991,858 854,524 863,811  
Depreciation, Depletion, Accretion and Amortization (DDA&A)                 281,641 245,151 236,472  
Capital Expenditures [2]                 422,175 421,989 297,737  
Total assets [3] 8,887,749       8,409,505       8,887,749 8,409,505 7,589,225  
Aggregates [Member] | Intersegment Sales [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 (274,071) (253,357) (220,463)  
Asphalt [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 733,182 622,074 512,310  
Asphalt [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 733,182 622,074 512,310  
Gross profit [5]                 56,480 91,313 96,608  
Depreciation, Depletion, Accretion and Amortization (DDA&A)                 31,290 25,400 16,797  
Capital Expenditures [2]                 38,154 12,970 29,002  
Total assets [3] 527,226       426,575       527,226 426,575 259,514  
Asphalt [Member] | Intersegment Sales [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 0 0 0  
Concrete [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 401,999 417,745 330,125  
Concrete [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 401,999 417,745 330,125  
Gross profit [5]                 49,893 45,201 24,992  
Depreciation, Depletion, Accretion and Amortization (DDA&A)                 12,539 13,822 12,129  
Capital Expenditures [2]                 12,291 25,176 10,047  
Total assets [3] 266,581       271,818       266,581 271,818 192,673  
Concrete [Member] | Intersegment Sales [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 0 0 0  
Calcium [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 8,110 7,740 8,860  
Calcium [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 8,110 7,740 8,860  
Gross profit                 2,714 2,475 3,474  
Depreciation, Depletion, Accretion and Amortization (DDA&A)                 272 677 774  
Capital Expenditures [2]                 22 78 534  
Total assets [3] 3,942       4,428       3,942 4,428 4,959  
Calcium [Member] | Intersegment Sales [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [1]                 0 0 0  
Other Segments [Member] | Operating Segments [Member]                        
Segment Reporting Information [Line Items]                        
Depreciation, Depletion, Accretion and Amortization (DDA&A)                 20,504 20,915 18,768  
Corporate [Member]                        
Segment Reporting Information [Line Items]                        
Capital Expenditures [2]                 2,587 4,020 7,621  
Total assets $ 102,228       $ 245,919       $ 102,228 $ 245,919 $ 157,085  
[1] The geographic markets are defined by states/countries as follows:East market - Arkansas, Delaware, Illinois, Kentucky, Maryland, North Carolina, Pennsylvania, Tennessee, Virginia, and Washington D.C.Gulf Coast market - Alabama, Florida, Georgia, Louisiana, Mexico, Mississippi, Oklahoma, South Carolina, Texas and the BahamasWest market - Arizona, California and New Mexico
[2] Capital expenditures include capitalized replacements of and additions to property, plant & equipment, including capitalized leases, renewals and betterments. Capital expenditures exclude property, plant & equipment obtained by business acquisitions.
[3] Certain temporarily idled assets are included within a segment's Identifiable Assets but the associated DDA&A is shown within Other in the DDA&A section above as the related DDA&A is excluded from segment gross profit.
[4] Includes product sales, as well as freight & delivery costs that we pass along to our customers, and service revenues (see Note 2) related to aggregates.
[5] The 2017 and 2016 amounts have been revised as a result of our adoption of ASU 2017-07 as described in Note 1 under the captions New Accounting Standards and Accounting Standards Recently Adopted.
v3.10.0.1
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]      
Interest (exclusive of amount capitalized) $ 128,217 $ 285,801 $ 135,039
Income taxes (65,968) 125,135 102,849
Accrued liabilities for purchases of property, plant & equipment 37,116 31,267 26,676
Amounts referable to business acquisitions Liabilities assumed [1] 5,405 3,876 798
Amounts referable to business acquisitions Consideration payable to seller 4,500 9,681 0
Fair value of noncash assets and liabilities exchanged $ 0 $ 9,900 $ 0
[1] The 2018 amount includes adjustments to 2017 acquisitions.
v3.10.0.1
ASSET RETIREMENT OBLIGATIONS (Narrative) (Details)
12 Months Ended
Dec. 31, 2018
USD ($)
a
property
Dec. 31, 2017
USD ($)
Asset Retirement Obligations [Line Items]    
Reclamation activities $ 13,558,000 $ 21,477,000
California [Member]    
Asset Retirement Obligations [Line Items]    
Reclamation activities $ 6,934,000 $ 11,578,000
Adjacent aggregates sites | property 2  
Property, acres | a 90  
v3.10.0.1
ASSET RETIREMENT OBLIGATIONS (Asset Retirement Obligations Operating Costs) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
ASSET RETIREMENT OBLIGATIONS [Abstract]      
Accretion $ 10,776 $ 11,415 $ 11,059
Depreciation 6,034 6,302 6,353
Total $ 16,810 $ 17,717 $ 17,412
v3.10.0.1
ASSET RETIREMENT OBLIGATIONS (Reconciliations of Asset Retirement Obligations) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
ASSET RETIREMENT OBLIGATIONS [Abstract]      
Balance at beginning of year $ 218,117 $ 223,872  
Liabilities incurred 20 1,920  
Liabilities settled (13,558) (21,477)  
Accretion expense 10,776 11,415 $ 11,059
Revisions, net 10,371 2,387  
Balance at end of year $ 225,726 $ 218,117 $ 223,872
v3.10.0.1
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
segment
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Goodwill [Line Items]      
Goodwill impairment charges $ 0 $ 0 $ 0
Number of Reportable Segments | segment 4    
Other intangible assets, net, Impairment Charges $ 0 $ 0  
Calcium [Member]      
Goodwill [Line Items]      
Goodwill, accumulated impairment losses $ 252,664    
Aggregates [Member]      
Goodwill [Line Items]      
Other intangible assets, net, Impairment Charges     $ 8,180
v3.10.0.1
GOODWILL AND INTANGIBLE ASSETS (Changes in Carrying Amount of Goodwill by Reportable Segment) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Goodwill [Line Items]    
Goodwill, Beginning balance $ 3,122,321 $ 3,094,824
Goodwill of acquired businesses [1] 43,075 27,497
Goodwill, Ending balance 3,165,396 3,122,321
Aggregates [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 3,030,688 3,003,191
Goodwill of acquired businesses [1] 43,075 27,497
Goodwill, Ending balance 3,073,763 3,030,688
Asphalt [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 91,633 91,633
Goodwill of acquired businesses [1] 0 0
Goodwill, Ending balance 91,633 91,633
Concrete [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 0 0
Goodwill of acquired businesses [1] 0 0
Goodwill, Ending balance 0 0
Calcium [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 0 0
Goodwill of acquired businesses [1] 0 0
Goodwill, Ending balance $ 0 $ 0
[1] See Note 19 for a summary of acquisitions
v3.10.0.1
GOODWILL AND INTANGIBLE ASSETS (Gross Carrying Amount and Accumulated Amortization by Major Intangible Asset Class) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]      
Gross carrying amount $ 1,256,039 $ 1,190,980  
Accumulated amortization (160,661) (127,350)  
Total Intangible Assets Subject to Amortization, net 1,095,378 1,063,630  
Intangible Assets with Indefinite Lives 0 0  
Total Intangible Assets, net 1,095,378 1,063,630  
Amortization Expense for the Year 34,924 23,765 $ 17,565
Contractual Rights In Place [Member]      
Finite-Lived Intangible Assets [Line Items]      
Gross carrying amount 1,107,838 1,050,816  
Accumulated amortization (122,100) (94,534)  
Noncompetition Agreements [Member]      
Finite-Lived Intangible Assets [Line Items]      
Gross carrying amount 7,667 7,067  
Accumulated amortization (4,212) (2,440)  
Favorable Lease Agreements [Member]      
Finite-Lived Intangible Assets [Line Items]      
Gross carrying amount 9,479 9,479  
Accumulated amortization (3,533) (3,179)  
Permitting, Permitting Compliance And Zoning Rights [Member]      
Finite-Lived Intangible Assets [Line Items]      
Gross carrying amount 126,538 119,002  
Accumulated amortization (27,464) (24,352)  
Other Intangibles [Member]      
Finite-Lived Intangible Assets [Line Items]      
Gross carrying amount [1] 4,517 4,616  
Accumulated amortization [1] $ (3,352) $ (2,845)  
[1] Includes customer relationships and tradenames and trademarks.
v3.10.0.1
GOODWILL AND INTANGIBLE ASSETS (Estimated Amortization Expense) (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
GOODWILL AND INTANGIBLE ASSETS [Abstract]  
2019 $ 34,973
2020 33,698
2021 31,695
2022 29,146
2023 $ 28,635
v3.10.0.1
ACQUISITIONS AND DIVESTITURES (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Significant Acquisitions and Disposals [Line Items]            
Consideration transferred, net of assets divested         $ 793,523  
Total consideration       $ 219,863 1,080,815 $ 33,287
Cash consideration       221,419 1,109,725 32,537
Cash       215,363 1,072,978  
Consideration payable amount       4,500   750
Goodwill [1]       43,075 27,497  
Deferred income taxes, net       32,871    
Gain on sale of property, plant & equipment and businesses       14,944 17,827 15,431
Proceeds from sale of property, plant & equipment       22,210 15,756 23,318
Assets divested, Book Value   $ 0 $ 0 0 0 0
Aggregates USA [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amount of assets divested   287,292     287,292  
Gain on sale of property, plant & equipment and businesses   0        
Virginia Plant Relocation [Member]            
Significant Acquisitions and Disposals [Line Items]            
Gain on sale of property, plant & equipment and businesses     4,335      
Proceeds from sale of property, plant & equipment     6,000      
Acquisitions 2018 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Cash consideration       215,363    
Amortizable intangible assets recognized       $ 44,163    
Intangible assets amortization period, tax purposes       15 years    
Goodwill       $ 42,325    
Intangible assets, deductible for income tax purposes       7,385    
Goodwill, deductible for income tax purposes       4,468    
Deferred income taxes, net       $ 32,871    
Acquisitions 2017 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amortizable intangible assets recognized         309,112  
Intangible assets amortization period, tax purposes       15 years    
Goodwill       $ 28,247 28,247  
Goodwill, deductible for income tax purposes       28,247    
Goodwill increase       $ 750    
Acquisitions 2016 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amortizable intangible assets recognized           16,670
Immaterial Business Acquisitions [Member]            
Significant Acquisitions and Disposals [Line Items]            
Total consideration         48,490  
Cash consideration         36,746  
Consideration payable amount         1,844  
Assets acquired   9,900     9,900  
Arizona [Member]            
Significant Acquisitions and Disposals [Line Items]            
Gain on sale of property, plant & equipment and businesses   8,021        
Assets divested, fair value   9,900     9,900  
Assets divested, Book Value   $ 1,879     1,879  
California And Virginia [Member]            
Significant Acquisitions and Disposals [Line Items]            
Gain on sale of property, plant & equipment and businesses     11,871      
Proceeds from sale of property, plant & equipment     $ 19,185      
Georgia [Member]            
Significant Acquisitions and Disposals [Line Items]            
Gain on sale of property, plant & equipment and businesses $ 2,929          
Contractual Rights In Place [Member] | Acquisitions 2017 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Intangible assets amortization period, tax purposes       15 years    
Contractual Rights In Place [Member] | Acquisitions 2016 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amortizable intangible assets recognized           15,213
Intangible assets amortization period, tax purposes       15 years    
Contractual Rights In Place - Straight-Line Method [Member] | Acquisitions 2018 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amortizable intangible assets recognized       $ 43,072    
Estimated weighted-average amortization period of intangible assets       19 years 10 months 24 days    
Contractual Rights In Place - Straight-Line Method [Member] | Acquisitions 2017 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amortizable intangible assets recognized         73,879  
Estimated weighted-average amortization period of intangible assets       19 years 3 months 18 days    
Contractual Rights In Place - Straight-Line Method [Member] | Acquisitions 2016 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amortizable intangible assets recognized           6,798
Estimated weighted-average amortization period of intangible assets       20 years    
Contractual Rights In Place - Units Of Sales [Member] | Acquisitions 2018 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amortizable intangible assets recognized       $ 1,080    
Estimated weighted-average amortization period of intangible assets       30 years    
Contractual Rights In Place - Units Of Sales [Member] | Acquisitions 2017 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amortizable intangible assets recognized         $ 235,133  
Estimated weighted-average amortization period of intangible assets       54 years 8 months 12 days    
Contractual Rights In Place - Units Of Sales [Member] | Acquisitions 2016 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amortizable intangible assets recognized           8,415
Estimated weighted-average amortization period of intangible assets       20 years    
Noncompetition Agreements [Member] | Acquisitions 2016 [Member]            
Significant Acquisitions and Disposals [Line Items]            
Amortizable intangible assets recognized           $ 1,457
[1] See Note 19 for a summary of acquisitions
v3.10.0.1
ACQUISITIONS AND DIVESTITURES (Schedule of Business Acquisitions) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Significant Acquisitions And Disposals [Line Items]      
Cash $ 215,363 $ 1,072,978  
Payable to seller 4,500 7,837  
Total fair value of purchase consideration 219,863 1,080,815 $ 33,287
Accounts and notes receivable, net 15,402 14,955  
Inventories 11,874 21,679  
Other current assets 661 608  
Investments   3,590  
Property, plant & equipment 150,274 433,606  
Contractual rights in place 44,163 295,482  
Deferred income taxes, net (32,871)    
Liabilities assumed (11,965) (3,894)  
Net identifiable assets acquired 177,538 766,026  
Goodwill [1] 43,075 27,497  
Net Assets Divested Immediately Upon Acquisition   $ 287,292  
Acquisitions 2018 [Member]      
Significant Acquisitions And Disposals [Line Items]      
Deferred income taxes, net (32,871)    
Goodwill $ 42,325    
[1] See Note 19 for a summary of acquisitions
v3.10.0.1
ACQUISITIONS AND DIVESTITURES (Comprehensive Income Actual Results) (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2017
USD ($)
ACQUISITIONS AND DIVESTITURES [Abstract]  
Total revenues $ 162,462
Net earnings $ 11,830
v3.10.0.1
ACQUISITIONS AND DIVESTITURES (Supplemental Pro Forma Results) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
ACQUISITIONS AND DIVESTITURES [Abstract]    
Supplemental Pro Forma Results, Total revenues $ 4,015,891 $ 3,882,257
Supplemental Pro Forma Results, Net earnings $ 610,494 $ 433,431
v3.10.0.1
UNAUDITED SUPPLEMENTARY DATA (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
UNAUDITED SUPPLEMENTARY DATA [Abstract]                      
Total revenues $ 1,088,047 $ 1,240,197 $ 1,200,151 $ 854,474 $ 977,490 $ 1,094,715 $ 1,030,763 $ 787,328 $ 4,382,869 [1] $ 3,890,296 [1] $ 3,592,667 [1]
Gross profit 275,285 343,142 323,184 159,334 241,517 303,758 290,017 158,221 1,100,945 993,513 988,885
Operating earnings 186,491 249,184 230,843 81,195 149,202 227,478 191,976 70,388 747,713 639,044 665,902
Earnings from continuing operations 124,280 179,864 160,302 53,395 327,969 110,150 111,749 43,523 517,841 593,391 422,406
Net earnings $ 124,023 $ 179,151 $ 159,652 $ 52,979 $ 327,546 $ 108,579 $ 120,139 $ 44,921 $ 515,805 $ 601,185 $ 419,491
Basic earnings per share from continuing operations $ 0.94 $ 1.36 $ 1.21 $ 0.40 $ 2.47 $ 0.83 $ 0.84 $ 0.33 $ 3.91 $ 4.48 $ 3.17
Diluted earnings per share from continuing operations 0.93 1.34 1.20 0.40 2.43 0.82 0.83 0.32 3.87 4.40 3.11
Basic net earnings per share 0.94 1.35 1.21 0.40 2.47 0.82 0.91 0.34 3.90 4.54 3.15
Diluted net earnings per share $ 0.93 $ 1.34 $ 1.19 $ 0.39 $ 2.43 $ 0.81 $ 0.89 $ 0.33 $ 3.85 $ 4.46 $ 3.09
[1] The geographic markets are defined by states/countries as follows:East market - Arkansas, Delaware, Illinois, Kentucky, Maryland, North Carolina, Pennsylvania, Tennessee, Virginia, and Washington D.C.Gulf Coast market - Alabama, Florida, Georgia, Louisiana, Mexico, Mississippi, Oklahoma, South Carolina, Texas and the BahamasWest market - Arizona, California and New Mexico