VULCAN MATERIALS CO, 10-K filed on 2/25/2016
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2015
Feb. 11, 2016
Jun. 30, 2015
Document and Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2015 
 
 
Document Fiscal Year Focus
2015 
 
 
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
 
133,181,057 
 
Entity Public Float
 
 
$ 9,464,531,960 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
Share data in Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
 
 
 
Total revenues
$ 3,422,181,000 
$ 2,994,169,000 
$ 2,770,709,000 
Cost of revenues
2,564,648,000 
2,406,587,000 
2,343,829,000 
Gross profit
857,533,000 
587,582,000 
426,880,000 
Selling, administrative and general expenses
286,844,000 
272,288,000 
259,427,000 
Gain on sale of property, plant & equipment and businesses
9,927,000 
244,222,000 
39,250,000 
Restructuring charges
(4,988,000)
(1,308,000)
(1,509,000)
Other operating expense, net
(25,850,000)
(20,070,000)
(14,790,000)
Operating earnings
549,778,000 
538,138,000 
190,404,000 
Other nonoperating income (expense), net
(1,678,000)
3,107,000 
7,538,000 
Interest income
345,000 
960,000 
943,000 
Interest expense
220,588,000 
243,367,000 
202,588,000 
Earnings (loss) from continuing operations before income taxes
327,857,000 
298,838,000 
(3,703,000)
Provision for (benefit from) income taxes
 
 
 
Current
89,340,000 
74,039,000 
9,673,000 
Deferred
5,603,000 
17,653,000 
(34,132,000)
Total provision for (benefit from) income taxes
94,943,000 
91,692,000 
(24,459,000)
Earnings from continuing operations
232,914,000 
207,146,000 
20,756,000 
Earnings (loss) on discontinued operations, net of income taxes (Note 2)
(11,737,000)
(2,223,000)
3,626,000 
Net earnings
221,177,000 
204,923,000 
24,382,000 
Other comprehensive income (loss), net of tax
 
 
 
Reclassification adjustment for cash flow hedges
5,828,000 
4,856,000 
2,992,000 
Adjustment for funded status of benefit plans
23,832,000 
(69,051,000)
111,883,000 
Amortization of actuarial loss and prior service cost for benefit plans
11,985,000 
2,112,000 
11,011,000 
Other comprehensive income (loss)
41,645,000 
(62,083,000)
125,886,000 
Comprehensive income
$ 262,822,000 
$ 142,840,000 
$ 150,268,000 
Basic earnings (loss) per share
 
 
 
Continuing operations
$ 1.75 
$ 1.58 
$ 0.16 
Discontinued operations
$ (0.09)
$ (0.02)
$ 0.03 
Net earnings
$ 1.66 
$ 1.56 
$ 0.19 
Diluted earnings (loss) per share
 
 
 
Continuing operations
$ 1.72 
$ 1.56 
$ 0.16 
Discontinued operations
$ (0.08)
$ (0.02)
$ 0.03 
Net earnings
$ 1.64 
$ 1.54 
$ 0.19 
Weighted-average common shares outstanding
 
 
 
Basic
133,210 
131,461 
130,272 
Assuming dilution
135,093 
132,991 
131,467 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Assets
 
 
Cash and cash equivalents
$ 284,060 
$ 141,273 
Restricted cash
1,150 
Accounts and notes receivable
 
 
Customers, less allowance for doubtful accounts 2015 — $5,576; 2014 — $5,105
397,287 
354,935 
Other
20,737 
18,907 
Inventories
347,073 
321,804 
Current deferred income taxes
1
39,726 1
Prepaid expenses
34,284 
28,640 
Assets held for sale
15,184 
Total current assets
1,084,591 
920,469 
Investments and long-term receivables
40,558 
41,650 
Property, plant & equipment, net
3,156,290 
3,071,630 
Goodwill
3,094,824 
3,094,824 
Other intangible assets, net
766,579 
758,243 
Other noncurrent assets
158,790 
154,281 
Total assets
8,301,632 
8,041,097 
Liabilities
 
 
Current maturities of long-term debt
130 
150,137 
Trade payables and accruals
175,729 
145,148 
Accrued salaries, wages and management incentives
91,440 
84,722 
Accrued interest
9,752 
8,212 
Other accrued liabilities
76,428 
63,139 
Liabilities of assets held for sale
520 
Total current liabilities
353,479 
451,878 
Long-term debt
1,980,334 
1,834,642 
Noncurrent deferred income taxes
681,096 
691,137 
Deferred management incentive and other compensation
15,980 
22,421 
Pension benefits
233,661 
252,531 
Other postretirement benefits
42,318 
76,372 
Asset retirement obligations
226,594 
226,565 
Deferred revenue
207,660 
213,968 
Other noncurrent liabilities
106,322 
94,884 
Total liabilities
3,847,444 
3,864,398 
Other commitments and contingencies (Note 12)
   
   
Equity
 
 
Common stock, $1 par value — Authorized 480,000 shares, Outstanding 133,172 and 131,907 shares, respectively
133,172 
131,907 
Capital in excess of par value
2,822,578 
2,734,661 
Retained earnings
1,618,507 
1,471,845 
Accumulated other comprehensive loss
(120,069)
(161,714)
Total equity
4,454,188 
4,176,699 
Total liabilities and equity
$ 8,301,632 
$ 8,041,097 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS [Abstract]
 
 
Customers, allowance for doubtful accounts
$ 5,576 
$ 5,105 
Common stock, par value
$ 1 
$ 1 
Common stock, shares authorized
480,000,000 
480,000,000 
Common stock, shares outstanding
133,172,000 
131,907,000 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Operating Activities
 
 
 
Net earnings
$ 221,177,000 
$ 204,923,000 
$ 24,382,000 
Adjustments to reconcile net earnings to net cash provided by operating activities
 
 
 
Depreciation, depletion, accretion and amortization
274,823,000 
279,497,000 
307,108,000 
Net gain on sale of property, plant & equipment and businesses
(9,927,000)
(244,222,000)
(50,978,000)
Proceeds from sale of future production, net of transaction costs (Note 19)
153,095,000 
Contributions to pension plans
(14,047,000)
(5,488,000)
(4,855,000)
Share-based compensation
18,248,000 
23,884,000 
22,093,000 
Excess tax benefits from share-based compensation
(18,376,000)
(3,464,000)
(161,000)
Deferred tax provision (benefit)
3,069,000 
18,378,000 
(35,063,000)
Cost of debt purchase
67,075,000 
72,949,000 
(Increase) decrease in assets before initial effects of business acquisitions and dispositions
 
 
 
Accounts and notes receivable
(42,164,000)
(25,118,000)
(42,260,000)
Inventories
(20,925,000)
(5,595,000)
(7,700,000)
Prepaid expenses
(5,288,000)
(6,256,000)
(765,000)
Other assets
34,863,000 
(13,930,000)
12,374,000 
Increase (decrease) in liabilities before initial effects of business acquisitions and dispositions
 
 
 
Accrued interest and income taxes
26,605,000 
(3,840,000)
(10,937,000)
Trade payables and other accruals
26,491,000 
4,229,000 
15,485,000 
Other noncurrent liabilities
(42,702,000)
(42,810,000)
(26,602,000)
Other, net
(15,544,000)
7,199,000 
1,283,000 
Net cash provided by operating activities
503,378,000 
260,336,000 
356,499,000 
Investing Activities
 
 
 
Purchases of property, plant & equipment
(289,262,000)
(224,852,000)
(275,380,000)
Proceeds from sale of property, plant & equipment
8,218,000 
26,028,000 
17,576,000 
Proceeds from sale of businesses, net of transaction costs
721,359,000 
51,604,000 
Payment for businesses acquired, net of acquired cash
(27,198,000)
(284,237,000)
(89,951,000)
Increase in restricted cash
(1,150,000)
Other, net
(350,000)
33,000 
(39,000)
Net cash provided by (used for) investing activities
(309,742,000)
238,331,000 
(296,190,000)
Financing Activities
 
 
 
Proceeds from line of credit
441,000,000 
93,000,000 
156,000,000 
Payments of line of credit
(206,000,000)
(93,000,000)
(156,000,000)
Payments of current maturities and long-term debt
(695,060,000)
(579,829,000)
(150,602,000)
Proceeds from issuance of long-term debt
400,000,000 
Debt and line of credit issuance costs
(7,382,000)
Purchases of common stock
(21,475,000)
Proceeds from issuance of common stock
30,620,000 
3,821,000 
Dividends paid
(53,214,000)
(28,884,000)
(5,191,000)
Proceeds from exercise of stock options
72,971,000 
23,502,000 
9,762,000 
Excess tax benefits from share-based compensation
18,376,000 
3,464,000 
161,000 
Other, net
(65,000)
(5,000)
Net cash used for financing activities
(50,849,000)
(551,132,000)
(142,049,000)
Net increase (decrease) in cash and cash equivalents
142,787,000 
(52,465,000)
(81,740,000)
Cash and cash equivalents at beginning of year
141,273,000 
193,738,000 
275,478,000 
Cash and cash equivalents at end of year
$ 284,060,000 
$ 141,273,000 
$ 193,738,000 
CONSOLIDATED STATEMENTS OF EQUITY (USD $)
In Thousands, except Share data, unless otherwise specified
Common Stock [Member]
Capital In Excess Of Par Value [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Beginning balance at Dec. 31, 2012
$ 129,721 
$ 2,580,209 
$ 1,276,649 
$ (225,517)
$ 3,761,062 
Beginning balance, shares at Dec. 31, 2012
129,721,000 
 
 
 
 
Net earnings
24,382 
24,382 
Common stock issued
 
 
 
 
 
401(k) Trustee (Note 13), shares
71,000 
 
 
 
71,208 
401(k) Trustee (Note 13)
71 
3,750 
3,821 
Share-based compensation plans, shares
408,000 
 
 
 
 
Share-based compensation plans
408 
5,485 
5,893 
Share-based compensation expense
22,093 
22,093 
Excess tax benefits from share-based compensation
161 
161 
Cash dividends on common stock
(5,191)
(5,191)
Other comprehensive income (loss)
125,886 
125,886 
Other
(6)
(1)
Ending balance at Dec. 31, 2013
130,200 
2,611,703 
1,295,834 
(99,631)
3,938,106 
Ending balance, shares at Dec. 31, 2013
130,200,000 
 
 
 
 
Net earnings
204,923 
204,923 
Common stock issued
 
 
 
 
 
Acquisitions, shares
715,000 
 
 
 
715,004 
Acquisitions
715 
44,470 
45,185 
401(k) Trustee (Note 13), shares
485,000 
 
 
 
485,306 
401(k) Trustee (Note 13)
485 
30,135 
30,620 
Share-based compensation plans, shares
507,000 
 
 
 
 
Share-based compensation plans
507 
20,982 
21,489 
Share-based compensation expense
23,884 
23,884 
Excess tax benefits from share-based compensation
3,464 
3,464 
Cash dividends on common stock
(28,884)
(28,884)
Other comprehensive income (loss)
(62,083)
(62,083)
Other
23 
(28)
(5)
Ending balance at Dec. 31, 2014
131,907 
2,734,661 
1,471,845 
(161,714)
4,176,699 
Ending balance, shares at Dec. 31, 2014
131,907,000 
 
 
 
 
Net earnings
221,177 
221,177 
Common stock issued
 
 
 
 
 
Share-based compensation plans, shares
1,493,000 
 
 
 
 
Share-based compensation plans
1,493 
51,240 
52,733 
Purchase and retirement of common stock, shares
(228,000)
 
 
 
 
Purchase and retirement of common stock
(228)
(21,251)
(21,479)
Share-based compensation expense
18,248 
18,248 
Excess tax benefits from share-based compensation
18,376 
18,376 
Cash dividends on common stock
(53,214)
(53,214)
Other comprehensive income (loss)
41,645 
41,645 
Other
53 
(50)
Ending balance at Dec. 31, 2015
$ 133,172 
$ 2,822,578 
$ 1,618,507 
$ (120,069)
$ 4,454,188 
Ending balance, shares at Dec. 31, 2015
133,172,000 
 
 
 
 
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
CONSOLIDATED STATEMENTS OF EQUITY [Abstract]
 
 
 
Cash dividends on common stock, per share
$ 0.40 
$ 0.22 
$ 0.04 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 producer of construction aggregates (primarily crushed stone, sand and gravel) and a major producer of asphalt mix and ready-mixed concrete.

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

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

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of Vulcan Materials Company and all our majority or
wholly-owned subsidiary companies. 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, reclamation costs, 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 total cost of acquisitions is allocated to the underlying identifiable assets acquired and liabilities assumed based on their respective fair values. Determining the fair values of assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions.

RESTRUCTURING CHARGES

Costs associated with restructuring our operations include severance and related charges to eliminate a specified number of employee positions, costs to relocate employees, contract cancellation costs and charges to vacate facilities and consolidate operations. Relocation, contract cancellation costs and charges to vacate facilities are recognized in the period the liability is incurred. Severance charges for employees, who are required to render service beyond a minimum retention period, generally more than 60 days, are recognized ratably over the retention period; otherwise, the full severance charge is recognized on the date a detailed restructuring plan has been authorized by management and communicated to employees.

In 2014, we announced changes to our executive management team, and a new divisional organization structure that was effective January 1, 2015. During 2015 and 2014, we incurred $4,988,000 and $1,308,000, respectively, of costs related to these initiatives. We do not expect to incur any future material charges related to these initiatives.

During 2013, we incurred $1,509,000 of severance costs related to the implementation of a 2012 profit enhancement plan.

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.

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 30 days of being invoiced. 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. Receivables are aged and appropriate allowances for doubtful accounts and bad debt expense are recorded. Bad debt expense for the years ended December 31 was as follows: 2015$1,450,000,  2014$2,031,000 and 2013$602,000. Write-offs of accounts receivables for the years ended December 31 were as follows: 2015$1,483,000,  2014$2,561,000 and 2013$1,946,000.

INVENTORIES

Inventories and supplies are stated at the lower of cost or market. 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 regarding 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 $7,003,000 and $8,753,000 are reflected in net property, plant & equipment as of December 31, 2015 and 2014, respectively. We capitalized software costs for the years ended December 31 as follows: 2015 — $1,482,000, 2014 — $921,000 and 2013 — $1,695,000. For additional information regarding 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 25 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-production 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-production 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

2015 

 

 

2014 

 

 

2013 

 

Depreciation, Depletion, Accretion and Amortization

 

 

 

 

 

 

 

 

Depreciation

$      228,866 

 

 

$     239,611 

 

 

$     271,180 

 

Depletion

18,177 

 

 

16,741 

 

 

13,028 

 

Accretion

11,474 

 

 

11,601 

 

 

10,685 

 

Amortization of leaseholds

688 

 

 

578 

 

 

483 

 

Amortization of intangibles

15,618 

 

 

10,966 

 

 

11,732 

 

Total

$      274,823 

 

 

$     279,497 

 

 

$     307,108 

 

 

DERIVATIVE INSTRUMENTS

We periodically use derivative instruments to manage our mix of fixed-rate and floating-rate debt and to manage our exposure to currency exchange risk or price fluctuations on commodity energy sources consistent with our risk management policies. We do not use derivative financial instruments for speculative or trading purposes. Additional disclosures regarding 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

in thousands

2015 

 

 

2014 

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

  Mutual funds

$       11,472 

 

 

$     15,532 

 

  Equities

8,992 

 

 

11,248 

 

Total

$       20,464 

 

 

$     26,780 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2

in thousands

2015 

 

 

2014 

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

  Common/collective trust funds

$        2,124 

 

 

$       1,415 

 

Total

$        2,124 

 

 

$       1,415 

 

 

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

Net gains (losses) of the Rabbi Trust investments were $(1,517,000),  $1,169,000 and $4,398,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The portions of the net gains (losses) related to investments still held by the Rabbi Trusts at December 31, 2015, 2014 and 2013 were $(1,769,000),  $(1,049,000) and $4,234,000, 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.

There were no assets or liabilities subject to fair value measurement on a nonrecurring basis in 2013. Assets that were subject to fair value measurement on a nonrecurring basis in 2015 and 2014 are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ending December 31, 2015

 

Year ending December 31, 2014

 

 

 

 

 

 

Impairment

 

 

 

 

 

Impairment

 

in thousands

Level 2

 

 

Charges

 

 

Level 2

 

 

Charges

 

Fair Value Nonrecurring

 

 

 

 

 

 

 

 

 

 

 

Property, plant & equipment

$              0 

 

 

$       2,176 

 

 

$       2,172 

 

 

$       3,095 

 

Other intangible assets, net

 

 

2,858 

 

 

 

 

 

Other assets

 

 

156 

 

 

 

 

 

Totals

$              0 

 

 

$       5,190 

 

 

$       2,172 

 

 

$       3,095 

 

 

We recorded $5,190,000 and $3,095,000 of losses on impairment of long-lived assets (reported within other operating expenses, net in our accompanying Consolidated Statements of Comprehensive Income) in 2015 and 2014, respectively, reducing the carrying value of these assets to their estimated fair values of $0 and $2,172,000. Fair value was estimated using a market approach (observed transactions involving comparable assets in similar locations).

GOODWILL AND 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, 2015, goodwill totaled $3,094,824,000, the same as at December 31, 2014. Goodwill represents 37% of total assets at December 31, 2015 compared to 38% as of December 31, 2014.

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 Mix, Concrete and Calcium. Within these four operating segments, we have identified 18 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 two-step quantitative test. We elected to perform the quantitative impairment test for all years presented.

The first step of the quantitative impairment test identifies potential impairment by comparing the fair value of a reporting unit to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is not considered impaired and the second step of the impairment test is not required. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of impairment loss, if any.

The second step of the quantitative impairment test compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined by hypothetically allocating the fair value of the reporting unit to its identifiable assets and liabilities in a manner consistent with a business combination, with any excess fair value representing implied goodwill. If the carrying value of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess.

The results of the first step of the annual impairment tests performed as of November 1, 2015, 2014 and 2013 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, 2015, 2014 or 2013.

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 regarding 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, 2015, net property, plant & equipment represents 38% of total assets, while net other intangible assets represents 9% of total assets. During 2015, we recorded a $5,190,000 loss on impairment of long-lived assets related to exiting a lease for an aggregates site. During 2014, we recorded a $3,095,000 loss on impairment of long-lived assets related primarily to assets retained in the divestiture of our cement and concrete businesses in the Florida area (see Note 19). We recorded no asset impairments during 2013.

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

TOTAL REVENUES AND REVENUE RECOGNITION

Total revenues include sales of product to customers, net of any discounts and taxes, and freight and delivery revenues billed to customers. Freight and delivery generally represents pass-through transportation we incur (including our administrative costs) and pay to third-party carriers to deliver our products to customers. The cost related to freight and delivery is included in cost of revenues.

Revenue is recognized at the time the selling price is fixed, the product's title is transferred to the buyer and collectibility of the sales proceeds is reasonably assured (typically occurs when finished products are shipped to the customer).

SALES TAXES

Sales taxes collected from customers are recorded as liabilities (within other accrued liabilities) until remitted to taxing authorities and therefore, are not reflected in the Consolidated Statements of Comprehensive Income.

DEFERRED REVENUE

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

The VPPs:

§

relate to eight quarries in Georgia and South Carolina

§

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

§

are both time and volume limited

§

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Deferred Revenue

 

 

 

 

 

 

 

 

Balance at beginning of year

$      219,968 

 

 

$     224,743 

 

 

$       73,583 

 

 Cash received and revenue deferred

 

 

187 

 

 

153,156 

 

 Amortization of deferred revenue

(5,908)

 

 

(4,962)

 

 

(1,996)

 

Balance at end of year

$      214,060 

 

 

$     219,968 

 

 

$     224,743 

 

 

Based on expected sales from the specified quarries, we expect to recognize approximately $6,400,000 of deferred revenue as income in 2016 (reflected in other accrued liabilities in our 2015 Consolidated Balance Sheet).

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 $50,409,000 in 2015, $44,896,000 in 2014 and $41,716,000 in 2013.

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-production method. Pre-production stripping costs included in other noncurrent assets were $61,369,000 as of December 31, 2015 and $44,035,000 as of December 31, 2014. This year-over-year increase resulted primarily from the removal of overburden at a greenfield site in California.

SHARE-BASED COMPENSATION

We account for share-based compensation awards using fair-value-based measurement methods. These result 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.

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 classified as financing cash flows. The $18,376,000,  $3,464,000, and $161,000 in excess tax benefits classified as financing cash inflows for the years ended December 31, 2015, 2014 and 2013, respectively, in the accompanying Consolidated Statements of Cash Flows relate to the exercise of stock options and issuance of shares under long-term incentive plans.

A summary of the estimated future compensation cost (unrecognized compensation expense) as of December 31, 2015 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

$          4,882 

 

 

1.6 

 

Performance and restricted shares

22,271 

 

 

2.5 

 

Total/weighted-average

$        27,153 

 

 

2.3 

 

 

 

 

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

2015 

 

 

2014 

 

 

2013 

 

Employee Share-based Compensation Awards

 

 

 

 

 

 

 

 

Pretax compensation expense

$        16,362 

 

 

$       22,217 

 

 

$       20,187 

 

Income tax benefits

6,347 

 

 

8,571 

 

 

7,833 

 

 

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

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 $226,594,000 as of December 31, 2015 and $226,565,000 as of December 31, 2014. For additional information regarding reclamation obligations (referred to in our financial statements as asset retirement obligations) see Note 17.

PENSION AND OTHER POSTRETIREMENT BENEFITS

Accounting for pension and postretirement benefits requires that we make significant assumptions regarding the valuation of benefit obligations and the performance of plan assets. The primary assumptions are as follows:

§

Discount Rate — The discount rate is used in calculating the present value of projected benefit payments

§

Expected Return on Plan Assets — The expected future return on plan assets reduces the recorded net benefit costs

§

Rate of Compensation Increase — Annual pay increases after 2015 will not increase our pension plan obligations as a result of a 2013 plan amendment

§

Rate of Increase in the Per Capita Cost of Covered Healthcare Benefits — Increases in the per capita cost after 2015 will not increase our postretirement medical benefits obligation as a result of a 2012 plan amendment to cap medical coverage cost at the 2015 level

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 regarding pension and other postretirement benefits see Note 10.

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 completion of the remedial feasibility study.

When we can estimate a range of probable loss, we accrue the most likely amount. In the event that no amount in the range of probable loss is considered most likely, the minimum loss in the range is accrued. As of December 31, 2015, 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 $3,154,000. 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 regarding 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

2015 

 

 

2014 

 

Self-insurance Program

 

 

 

 

 

Self-insured liabilities (undiscounted)

$        44,618 

 

 

$       43,731 

 

Insured liabilities (undiscounted)

16,787 

 

 

17,758 

 

Discount rate

1.44% 

 

 

1.29% 

 

Amounts Recognized in Consolidated

 

 

 

 

 

 Balance Sheets

 

 

 

 

 

Investments and long-term receivables

$        15,810 

 

 

$       16,884 

 

Other accrued liabilities

(14,198)

 

 

(13,131)

 

Other noncurrent liabilities

(44,102)

 

 

(45,569)

 

Net liabilities (discounted)

$       (42,490)

 

 

$     (41,816)

 

 

Estimated payments (undiscounted) under our self-insurance program for the five years subsequent to December 31, 2015 are as follows:

 

 

 

 

 

 

 

in thousands

 

 

Estimated Payments under Self-insurance Program

 

 

2016

$        19,001 

 

2017

10,900 

 

2018

7,743 

 

2019

5,063 

 

2020

3,609 

 

 

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.

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 financial statement’s carrying amounts of assets and liabilities and the amounts used for income tax purposes. 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.

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.

The years open to tax examinations vary by jurisdiction. 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, actuarial gains or losses and prior service costs related to pension and postretirement benefit plans.

For additional information regarding 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

2015 

 

 

2014 

 

 

2013 

 

Weighted-average common shares outstanding

133,210 

 

 

131,461 

 

 

130,272 

 

Dilutive effect of

 

 

 

 

 

 

 

 

  Stock options/SOSARs

1,027 

 

 

656 

 

 

461 

 

  Other stock compensation plans

856 

 

 

874 

 

 

734 

 

Weighted-average common shares outstanding,

 

 

 

 

 

 

 

 

 assuming dilution

135,093 

 

 

132,991 

 

 

131,467 

 

 

All dilutive common stock equivalents are reflected in our earnings per share calculations. Antidilutive common stock equivalents are not included in our earnings per share calculations.

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

2015 

 

 

2014 

 

 

2013 

 

Antidilutive common stock equivalents

544 

 

 

2,352 

 

 

2,895 

 

 

RECLASSIFICATIONS

Certain items previously reported in specific financial statement captions have been reclassified to conform with the 2015 presentation. During 2015, we early adopted Accounting Standards Update (ASU) 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” resulting in adjustments to our prior financial statements as noted in the caption (Debt Issuance Costs) below.

NEW ACCOUNTING STANDARDS

ACCOUNTING STANDARDS RECENTLY ADOPTED

DEFERRED TAXES  As of December 31, 2015, we early adopted ASU 2015-17, “Balance Sheet Classification of Deferred Taxes” on a prospective basis (i.e., prior balance sheets were not adjusted). Under ASU 2015-17, all deferred tax assets and liabilities are presented as noncurrent in our balance sheet. Under prior guidance, deferred tax assets and liabilities were separately presented as current and noncurrent in our balance sheet. See Note 9 for additional detail. 

DEBT ISSUANCE COSTS  As of and for the interim period ended June 30, 2015, we early adopted ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” Under ASU 2015-03, debt issuance costs related to a note are presented in the balance sheet as a deduction from the related debt liability rather than as a prepaid expense (the amortization of such costs continues to be reported as interest expense). However, this ASU did not address the balance sheet presentation of debt issuance costs  incurred before a debt liability is recognized or associated with revolving debt arrangements, such as our line of credit. Accordingly, we elected an accounting policy to present all debt issuance costs as a deduction from the total debt liability. This ASU and related election are retrospectively applied to the beginning of the earliest period presented in the financial statements. As a result of the retrospective application of this change in accounting principle, we adjusted our Condensed Consolidated Balance Sheet for the prior period presented. Debt issuance costs of $20,805,000 previously reported as other noncurrent assets on the Condensed Consolidated Balance Sheet as of December 31, 2014 were reclassified as a deduction from the principal amount of the total debt liability.

SHARE-BASED AWARDS  As of and for the interim period ended March 31, 2015, we adopted ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period.” This ASU clarified the proper method of accounting for share-based awards when the terms of an award provide that a performance target could be achieved after the requisite service period. Under ASU 2014-12, a performance target that affects vesting and could be achieved after completion of the service period should be treated as a performance condition and, as a result, should not be included in the estimation of the grant-date fair value. Rather, an entity should recognize compensation cost for the award when it becomes probable that the performance target will be achieved. Historically, we accounted for share-based awards with these types of performance targets consistent with the clarification in ASU 2014-12. Our adoption of this standard had no material impact on our financial position, results of operations or liquidity.

DISCONTINUED OPERATIONS REPORTING  As of and for the interim period ended March 31, 2015, we adopted ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changed the definition of and expanded the disclosure requirements for discontinued operations. Under the new definition, discontinued operations reporting is limited to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The expanded disclosures for discontinued operations are meant to provide users of financial statements with more information about the assets, liabilities, revenues, and expenses of discontinued operations. Additionally, this ASU requires an entity to disclose the pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. Our adoption of this standard had no material impact on our financial position, results of operations or liquidity.

ACCOUNTING STANDARDS PENDING ADOPTION

CLASSIFICATION AND MEASUREMENT OF FINANCIAL INSTRUMENTS  In January 2016 the Financial Accounting Standards Board (FASB) issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of current guidance on the recognition, measurement and disclosure of financial instruments. Among other changes, this ASU requires most equity investments be measured at fair value. Additionally, the ASU eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value for instruments not recognized at fair value in our financial statements. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We will adopt this standard as of and for the interim period ending March 31, 2018. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

MEASUREMENT-PERIOD ADJUSTMENTS  In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which requires an acquirer to recognize measurement-period adjustments to provisional amounts in the reporting period in which the adjustments are determined. Previously, measurement-period adjustments were retrospectively applied. As an alternative to restating the prior periods for the measurement-period adjustments, the ASU requires acquirers to present separately on the face of the earnings statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date. This ASU is to be applied prospectively to adjustments to provisional amounts that occur after December 15, 2015. Early adoption is permitted. We will adopt this standard as of and for the interim period ending March 31, 2016. While we are still evaluating the impact of ASU 2015-16, we do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

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

NET ASSET VALUE PER SHARE INVESTMENTS  In May 2015, the FASB issued ASU 2015-07, “Disclosures for Investment in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which removes the requirement to categorize investments within the fair value hierarchy when their fair value is measured using the net asset value per share practical expedient. This ASU also removes the requirement to make certain disclosures for investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures would be limited to investments for which the entity has elected to measure the fair value using that practical expedient. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods within those annual reporting periods. This ASU is to be applied retrospectively to all periods presented. Early adoption is permitted. We will adopt this standard as of and for the interim period ending March 31, 2016. While we are still evaluating the impact of ASU 2015-07, it will not impact our consolidated financial statements as it only affects disclosure. Thus, it will impact the notes to our consolidated financial statements, specifically, our pension plan fair value disclosures.

CONSOLIDATION  In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis,” which amends existing consolidation guidance for reporting entities that are required to evaluate whether they should consolidate certain legal entities. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We will adopt this standard as of and for the interim period ending March 31, 2016. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

GOING CONCERN  In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern,” which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern (meet its obligations as they become due) within one year after the date that the financial statements are issued. If conditions or events raise substantial doubt about the entity’s ability to continue as a going concern, certain disclosures are required. This ASU is effective for annual reporting periods ending after December 15, 2016, and interim reporting periods thereafter. Early adoption is permitted. We will adopt this standard as of and for the annual period ending December 31, 2016. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

REVENUE RECOGNITION  In May 2014, the FASB issued ASU 2014-09, “Revenue From Contracts With Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This ASU provides a more robust framework for addressing revenue issues and expands required revenue recognition disclosures. This ASU (as later amended) is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently evaluating the impact of adoption of this ASU on our consolidated financial statements.

 

 

DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS

NOTE 2: DISCONTINUED OPERATIONS

In 2005, we sold substantially all the assets of our Chemicals business to Basic Chemicals, a subsidiary of Occidental Chemical Corporation. In addition to the initial cash proceeds, Basic Chemicals was required to make payments under two earn-out agreements. During 2013, we received the final payment under the 5CP earn-out of $13,031,000. We were liable for a cash transaction bonus payable annually to certain former key Chemicals employees based on the prior year’s earn-out results. Payments for the transaction bonus were $1,303,000 in 2013.

The financial results of the Chemicals business are classified as discontinued operations in the accompanying Consolidated Statements of Comprehensive Income for all periods presented. There were no revenues from discontinued operations for the years presented. Results from discontinued operations are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Discontinued Operations

 

 

 

 

 

 

 

 

Pretax loss

$     (19,326)

 

 

$     (3,683)

 

 

$     (5,744)

 

Gain on disposal, net of transaction bonus

 

 

 

 

11,728 

 

Income tax (provision) benefit

7,589 

 

 

1,460 

 

 

(2,358)

 

Earnings (loss) on discontinued operations,

 

 

 

 

 

 

 

 

 net of income taxes

$     (11,737)

 

 

$     (2,223)

 

 

$       3,626 

 

 

The 2015, 2014 and 2013 pretax losses from discontinued operations of $19,326,000,  $3,683,000 and $5,744,000, respectively, include charges related to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business. The current year’s increased loss resulted primarily from charges associated with the Lower Passaic and Texas Brine matters as further discussed in Note 12.

 

 

INVENTORIES
INVENTORIES

NOTE 3: INVENTORIES

Inventories at December 31 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Inventories

 

 

 

 

 

Finished products  1

$      297,925 

 

 

$     275,172 

 

Raw materials

21,765 

 

 

19,741 

 

Products in process

1,008 

 

 

1,250 

 

Operating supplies and other

26,375 

 

 

25,641 

 

Total

$      347,073 

 

 

$     321,804 

 

 

 

 

1

Includes inventories encumbered by the purchaser's percentage of volumetric production payments (see Note 1, Deferred Revenue), as follows: December 31, 2015 — $4,452 thousand and December 31, 2014 — $4,792 thousand.

 

In addition to the inventory balances presented above, as of December 31, 2015 and December 31, 2014, we have $14,995,000 and $17,449,000, 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 $242,147,000 at December 31, 2015 and $232,371,000 at December 31, 2014. During 2015, 2014 and 2013, 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 2015 results was to decrease cost of revenues by $3,284,000 and increase net earnings by $2,010,000. The effect of the LIFO liquidation on 2014 results was to decrease cost of revenues by $2,686,000 and increase net earnings by $1,650,000. The effect of the LIFO liquidation on 2013 results was to decrease cost of revenues by $1,310,000 and increase net earnings by $802,000.

Estimated current cost exceeded LIFO cost at December 31, 2015 and 2014 by $169,257,000 and $181,633,000, respectively. We use the LIFO method of valuation for most of our inventories as it results in a better matching of costs with revenues. We provide supplemental income disclosures to facilitate comparisons with companies not on LIFO. The supplemental income calculation is derived by tax-effecting the change in the LIFO reserve for the periods presented. If all inventories valued at LIFO cost had been valued under the methods (substantially average cost) used prior to the adoption of the LIFO method, the approximate effect on net earnings would have been a decrease of $(7,614,000) in 2015, an increase of $19,108,000 in 2014 and an increase of $20,812,000 in 2013.

 

 

PROPERTY, PLANT & EQUIPMENT
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

2015 

 

 

2014 

 

Property, Plant & Equipment

 

 

 

 

 

Land and land improvements 1

$    2,305,801 

 

 

$  2,273,874 

 

Buildings

124,950 

 

 

126,833 

 

Machinery and equipment

4,124,808 

 

 

3,952,423 

 

Leaseholds

14,143 

 

 

13,451 

 

Deferred asset retirement costs

166,252 

 

 

163,644 

 

Construction in progress

155,333 

 

 

78,617 

 

Total, gross

$    6,891,287 

 

 

$  6,608,842 

 

Less allowances for depreciation, depletion

 

 

 

 

 

 and amortization

3,734,997 

 

 

3,537,212 

 

Total, net

$    3,156,290 

 

 

$  3,071,630 

 

 

 

 

1

Includes depletable land, as follows: December 31, 2015 — $1,296,211 thousand and December 31, 2014 — $1,287,225 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

2015 

 

 

2014 

 

 

2013 

 

Capitalized interest cost

$          2,930 

 

 

$        2,092 

 

 

$        1,089 

 

Total interest cost incurred before recognition

 

 

 

 

 

 

 

 

 of the capitalized amount

223,518 

 

 

245,459 

 

 

203,677 

 

 

 

 

DERIVATIVE INSTRUMENTS
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 utilize derivative instruments for trading or other speculative purposes.

The accounting for gains and losses that result from changes in the fair value of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationship. The interest rate swap agreements described below were designated as either cash flow hedges or fair value hedges. The changes in fair value of our interest rate swap cash flow hedges are recorded in accumulated other comprehensive income (AOCI) and are reclassified into interest expense in the same period the hedged items affect earnings. The changes in fair value of our interest rate swap fair value hedges are recorded as interest expense consistent with the change in the fair value of the hedged items attributable to the risk being hedged.

CASH FLOW HEDGES

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Location on Statement

 

2015 

 

 

2014 

 

 

2013 

 

Cash Flow Hedges

 

 

 

 

 

 

 

 

 

 

Loss reclassified from AOCI

 

 

 

 

 

 

 

 

 

 

 (effective portion)

Interest expense

 

$       (9,759)

 

 

$       (7,988)

 

 

$       (5,077)

 

 

The loss reclassified from AOCI for the years ended December 31, 2015 and 2014 includes the acceleration of a proportional amount of the deferred loss in the amount of $7,208,000 and $3,762,000, respectively, referable to the debt purchases as described in Note 6.

For the 12-month period ending December 31, 2016, we estimate that $2,008,000 of the pretax loss in AOCI will be reclassified to earnings.

FAIR VALUE HEDGES

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Deferred Gain on Settlement

 

 

 

 

 

 

 

 

Amortized to earnings as a reduction to interest expense

$        3,036 

 

 

$      10,674 

 

 

$        4,334 

 

 

The amortized deferred gain for the years ended December 31, 2015 and 2014 includes the acceleration of a proportional amount of the deferred gain in the amount of $1,642,000 and $8,032,000, respectively, referable to the debt purchases as described in Note 6. The deferred gain was fully amortized in December 2015, concurrent with the retirement of the 10.125% notes due 2015.

 

 

DEBT
DEBT

NOTE 6: DEBT

Debt at December 31 is detailed as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective

 

 

 

 

 

 

 

in thousands

Interest Rates

 

2015 

 

 

2014 

 

 

Short-term Debt

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

n/a

 

$                  0 

 

 

$                  0 

 

 

Total short-term debt

 

 

$                  0 

 

 

$                  0 

 

 

Long-term Debt

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

1.75% 

 

$       235,000 

 

 

$                  0 

 

 

10.125% notes due 2015

n/a

 

 

 

150,000 

 

 

6.50% notes due 2016

n/a

 

 

 

125,001 

 

 

6.40% notes due 2017

n/a

 

 

 

218,633 

 

 

7.00% notes due 2018

7.87% 

 

272,512 

 

 

400,000 

 

 

10.375% notes due 2018

10.63% 

 

250,000 

 

 

250,000 

 

 

7.50% notes due 2021

7.75% 

 

600,000 

 

 

600,000 

 

 

8.85% notes due 2021

8.88% 

 

6,000 

 

 

6,000 

 

 

Industrial revenue bond due 2022

n/a

 

 

 

14,000 

 

 

4.50% notes due 2025

4.65% 

 

400,000 

 

 

 

 

7.15% notes due 2037

8.05% 

 

240,188 

 

 

240,188 

 

 

Other notes 2

6.25% 

 

498 

 

 

637 

 

 

Unamortized discounts and debt issuance costs

n/a

 

(23,734)

 

 

(22,716)

 

 

Unamortized deferred interest rate swap gain 4

n/a

 

 

 

3,036 

 

 

Total long-term debt including current maturities 5

 

 

$    1,980,464 

 

 

$    1,984,779 

 

 

Less current maturities

 

 

130 

 

 

150,137 

 

 

Total long-term debt

 

 

$    1,980,334 

 

 

$    1,834,642 

 

 

Total debt 6

 

 

$    1,980,464 

 

 

$    1,984,779 

 

 

Estimated fair value of long-term debt

 

 

$    2,204,816 

 

 

$    2,092,673 

 

 

 

 

 

 

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 otherwise.

2

Non-publicly traded debt.

3

The effective interest rate is the spread over LIBOR as of the balance sheet dates.

4

The unamortized deferred gain was realized upon the August 2011 settlement of interest rate swaps as discussed in Note 5.

5

The debt balances as of December 31, 2014 have been adjusted to reflect our early adoption of ASU 2015-03 and related election as discussed in Note 1 under the caption New Accounting Standards.

6

Face value of our debt is equal to total debt plus unamortized discounts and debt issuance costs, and unamortized deferred interest rate swap gain, as follows: December 31, 2015$2,004,198 thousand and December 31, 2014$2,004,459 thousand.

 

Our total debt is presented in the table above net of unamortized discounts from par, unamortized deferred debt issuance costs and unamortized deferred interest rate swap settlement gains. Discounts, deferred debt issuance costs and deferred swap settlement gains are amortized using the effective interest method over the terms of the respective notes.

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

LINE OF CREDIT

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

The line of credit agreement expires in June 2020 and contains affirmative, negative and financial covenants customary for an unsecured facility. The primary negative covenant limits our ability to incur secured debt. The financial covenants are: (1) a maximum ratio of debt to EBITDA of 3.5:1 through September 2016 and 3.25:1 thereafter,  and (2) a minimum ratio of EBITDA to net cash interest expense of 3.0:1. As of December 31, 2015, we were in compliance with the line of credit covenants.

Borrowings on our line of credit are classified as short-term debt if we intend to repay within twelve months and as long-term debt if we have the intent and ability to extend repayment beyond twelve months. Borrowings bear interest, at our option, at either LIBOR plus a credit margin ranging from 1.00% to 2.00%, or SunTrust Bank’s base rate (generally, its prime rate) plus a credit margin ranging from 0.00% to 1.00%. The credit margin for both LIBOR and base rate borrowings is determined by either our ratio of debt to EBITDA or our credit ratings, based on the metric that produces the lower credit margin. Standby letters of credit, which are issued under the line of credit and reduce availability, are charged a fee equal to the credit margin for LIBOR borrowings plus 0.175%. We also pay a commitment fee on the daily average unused amount of the line of credit that ranges from 0.10% to 0.35% based on either our ratio of debt to EBITDA or our credit ratings, based on the metric that produces the lower fee. As of December 31, 2015, the credit margin for LIBOR borrowings was 1.75%, the credit margin for base rate borrowings was 0.75%, and the commitment fee for the unused amount was 0.25%.

As of December 31, 2015, our available borrowing capacity was $476,136,000. Utilization of the borrowing capacity was as follows:

§

$235,000,000 was borrowed

§

$38,864,000 was used to provide support for outstanding standby letters of credit

TERM DEBT

All of our term debt is unsecured. All such debt, other than the $498,000 of other notes, is governed by two essentially identical indentures that contain customary investment-grade type covenants. The primary covenant in both indentures limits the amount of secured debt we may incur without ratably securing such debt. As of December 31, 2015, we were in compliance with all of the term debt covenants.

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

In March 2015, we issued $400,000,000 of 4.50% senior notes due 2025. Proceeds (net of underwriter fees and other transaction costs) of $395,207,000 were partially used to fund the March 30, 2015 purchase, via tender offer, of $127,303,000 principal amount (32%) of the 7.00% notes due 2018. The March 2015 debt purchase cost $145,899,000, including an $18,140,000 premium above the principal amount of the notes and transaction costs of $456,000. The premium primarily reflects the trading price of the notes relative to par prior to the tender offer commencement. Additionally, we recognized $3,138,000 of net noncash expense associated with the acceleration of a proportional amount of unamortized discounts, deferred debt issuance costs, and deferred interest rate derivative settlement gains and losses. The combined first quarter charge of $21,734,000 is presented in the accompanying Consolidated Statement of Comprehensive Income as a component of interest expense for the year ended December 31, 2015.

The remaining net proceeds from the March 2015 debt issuance, together with cash on hand and borrowings under our line of credit, funded: (1) the April 2015 redemption of $218,633,000 principal amount (100%) of the 6.40% notes due 2017, (2) the April 2015 redemption of $125,001,000 principal amount (100%) of the 6.50% notes due 2016 and (3) the April 2015 purchase, via the tender offer commenced in March 2015 of $185,000 principal amount (less than 1%) of the 7.00% notes due 2018. The April 2015 debt purchases cost $385,024,000, including a $41,153,000 premium above the principal amount of the notes and transaction costs of $52,000. The premium primarily reflects the make-whole value of the 2016 notes and the 2017 notes. Additionally, we recognized $4,136,000 of net noncash expense associated with the acceleration of unamortized discounts, deferred debt issuance costs, and deferred interest rate derivative settlement gains and losses. The combined second quarter charge of $45,341,000 is presented in the accompanying Consolidated Statement of Comprehensive Income as a component of interest expense for the year ended December 31, 2015.

In March 2014, we purchased $506,366,000 principal amount of debt through a tender offer as follows: $374,999,000 of 6.50% notes due in 2016 and $131,367,000 of 6.40% notes due in 2017. This debt purchase was funded by the sale of our cement and concrete businesses in the Florida area as described in Note 19. The March 2014 debt purchases cost $579,659,000, including a $71,829,000 premium above the principal amount of the notes and transaction costs of $1,464,000. The premium primarily reflects the trading price of the notes relative to par prior to the tender offer commencement. Additionally, we recognized a net noncash benefit of $344,000 associated with the acceleration of a proportional amount of unamortized discounts, deferred debt issuance costs, and deferred interest rate derivative settlement gains and losses. The combined charge of $72,949,000 is presented in the accompanying Consolidated Statement of Comprehensive Income as a component of interest expense for the year ended December 31, 2014.

DEBT PAYMENTS

As described above, during the first and second quarters of 2015, we purchased/redeemed $471,122,000 principal amount of debt using the proceeds from the March 2015 debt issuance, cash on hand and borrowings on our line of credit. Additionally in 2015, we borrowed on our line of credit during August to repay our $14,000,000 industrial revenue bond due 2022 and during December to repay our $150,000,000 10.125% notes due 2015.

There were no material scheduled debt payments during 2014. However, as described above, we purchased $506,366,000 principal amount of debt through a tender offer in the first quarter of 2014.

The total scheduled (principal and interest) debt payments, excluding draws, if any, on the line of credit, for the five years subsequent to December 31, 2015 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Total

 

 

Principal

 

 

Interest

 

Debt Payments (excluding the line of credit)

 

 

 

 

 

 

 

 

2016

$      125,878 

 

 

$           130 

 

 

$    125,748 

 

2017

125,878 

 

 

138 

 

 

125,740 

 

2018

638,728 

 

 

522,534 

 

 

116,194 

 

2019

80,740 

 

 

23 

 

 

80,717 

 

2020

80,740 

 

 

25 

 

 

80,715 

 

STANDBY LETTERS OF CREDIT

We provide, in the normal course of business, certain third-party beneficiaries standby letters of credit to support our obligations to pay or perform according to the requirements of an underlying agreement. Such letters of credit typically have an initial term of one year, typically renew automatically, and can only be modified or cancelled with the approval of the beneficiary. All of our standby letters of credit are issued by banks that participate in our $750,000,000 line of credit, and reduce the borrowing capacity thereunder. Our standby letters of credit as of December 31, 2015 are summarized by purpose in the table below:

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

 

 

Standby Letters of Credit

 

 

Risk management insurance

$       33,111 

 

Reclamation/restoration requirements

5,753 

 

Total

$       38,864 

 

 

 

OPERATING LEASES
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

2015 

 

 

2014 

 

 

2013 

 

Operating Leases

 

 

 

 

 

 

 

 

Minimum rentals

$        49,461 

 

 

$       42,887 

 

 

$       40,151 

 

Contingent rentals (based principally on usage)

60,380 

 

 

56,717 

 

 

44,111 

 

Total

$      109,841 

 

 

$       99,604 

 

 

$       84,262 

 

 

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, 2015 are payable as follows:

 

 

 

 

 

 

 

in thousands

 

 

Future Minimum Operating Lease Payments

 

 

2016

$        30,945 

 

2017

29,712 

 

2018

26,543 

 

2019

22,455 

 

2020

20,508 

 

Thereafter

128,657 

 

Total

$      258,820 

 

 

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.

 

 

ACCRUED ENVIRONMENTAL REMEDIATION COSTS
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

2015 

 

 

2014 

 

Accrued Environmental Remediation Costs

 

 

 

 

 

Continuing operations

$          6,876 

 

 

$        4,919 

 

Retained from former Chemicals business

10,988 

 

 

4,129 

 

Total

$        17,864 

 

 

$        9,048 

 

 

The long-term portion of the accruals noted above is included in other noncurrent liabilities in the accompanying Consolidated Balance Sheets and amounted to $12,569,000 at December 31, 2015 and $6,736,000 at December 31, 2014. The short-term portion of these accruals is included in other accrued 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 environmental costs incurred at the Hewitt Landfill. 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. The increase in these retained liabilities primarily relates to the Lower Passaic River Superfund site. Refer to Note 12 for additional discussion of these contingent environmental matters.

 

 

INCOME TAXES
INCOME TAXES

NOTE 9: INCOME TAXES

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Earnings (Loss) from Continuing

 

 

 

 

 

 

 

 

 Operations before Income Taxes

 

 

 

 

 

 

 

 

Domestic

$      293,547 

 

 

$     264,473 

 

 

$     (34,239)

 

Foreign

34,310 

 

 

34,365 

 

 

30,536 

 

Total

$      327,857 

 

 

$     298,838 

 

 

$        (3,703)

 

 

Provision for (benefit from) income taxes from continuing operations consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Provision for (Benefit from) Income Taxes

 

 

 

 

 

 

 

 

 from Continuing Operations

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

Federal

$        67,521 

 

 

$       47,882 

 

 

$        (3,691)

 

State and local

14,035 

 

 

18,983 

 

 

7,941 

 

Foreign

7,784 

 

 

7,174 

 

 

5,423 

 

Total

$        89,340 

 

 

$       74,039 

 

 

$         9,673 

 

Deferred

 

 

 

 

 

 

 

 

Federal

$        11,192 

 

 

$       13,556 

 

 

$     (20,581)

 

State and local

(4,888)

 

 

4,120 

 

 

(13,542)

 

Foreign

(701)

 

 

(23)

 

 

(9)

 

Total

$          5,603 

 

 

$       17,653 

 

 

$     (34,132)

 

Total provision (benefit)

$        94,943 

 

 

$       91,692 

 

 

$     (24,459)

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

 

2015 

 

 

 

2014 

 

 

 

2013 

 

Income tax provision (benefit) at the

 

 

 

 

 

 

 

 

 

 

 

 federal statutory tax rate of 35%

$    114,750 

35.0% 

 

 

$    104,594 

35.0% 

 

 

$      (1,296)

35.0% 

 

Provision for (Benefit from)

 

 

 

 

 

 

 

 

 

 

 

 Income Tax Differences

 

 

 

 

 

 

 

 

 

 

 

Statutory depletion

(27,702)

-8.4%

 

 

(25,774)

-8.6%

 

 

(20,875) 563.7% 

 

State and local income taxes, net of federal

 

 

 

 

 

 

 

 

 

 

 

 income tax benefit

5,945  1.8% 

 

 

15,017  5.0% 

 

 

(3,641) 98.3% 

 

U.S. production deduction

(5,099)

-1.6%

 

 

0.0% 

 

 

0.0% 

 

Foreign tax credit carryforwards impairment

6,486  2.0% 

 

 

0.0% 

 

 

0.0% 

 

Permanently reinvested foreign earnings

(6,396)

-2.0%

 

 

0.0% 

 

 

0.0% 

 

Other, net

6,959  2.2% 

 

 

(2,145)

-0.7%

 

 

1,353 

-36.5%

 

Total income tax provision (benefit)/

 

 

 

 

 

 

 

 

 

 

 

 Effective tax rate

$      94,943 

29.0% 

 

 

$      91,692 

30.7% 

 

 

$    (24,459)

660.5% 

 

 

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

2015 

 

 

2014 

 

Deferred Tax Assets Related to

 

 

 

 

 

Employee benefits

$        78,999 

 

 

$       97,757 

 

Asset retirement obligations & other reserves

59,507 

 

 

53,670 

 

Deferred compensation

117,298 

 

 

121,900 

 

State net operating losses

61,658 

 

 

59,315 

 

Federal credit carryforwards

34,340 

 

 

40,212 

 

Other

48,856 

 

 

52,241 

 

Total gross deferred tax assets

400,658 

 

 

425,095 

 

Valuation allowance

(59,323)

 

 

(56,867)

 

Total net deferred tax assets

$      341,335 

 

 

$     368,228 

 

Deferred Tax Liabilities Related to

 

 

 

 

 

Property, plant and equipment

$      665,057 

 

 

$     661,697 

 

Goodwill/other intangible assets

324,910 

 

 

329,539 

 

Other

32,464 

 

 

28,403 

 

Total deferred tax liabilities

$   1,022,431 

 

 

$  1,019,639 

 

Net deferred tax liability

$      681,096 

 

 

$     651,411 

 

 

The above amounts are reflected in the accompanying Consolidated Balance Sheets as of December 31 as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Deferred Income Taxes

 

 

 

 

 

Current assets 1

$                0 

 

 

$     (39,726)

 

Noncurrent liabilities

681,096 

 

 

691,137 

 

Net deferred tax liability

$     681,096 

 

 

$     651,411 

 

 

 

 

1

As discussed in Note 1, we early adopted ASU 2015-17 on a prospective basis as of December 31, 2015. Thus, all deferred income taxes as of December 31, 2015 are classified as noncurrent resulting in a $44,464 thousand decrease in current assets with a corresponding decrease in noncurrent liabilities.

 

As noted above, we have state net operating loss carryforward deferred tax assets of $61,658,000 of which $58,921,000 relates to Alabama. The Alabama net operating loss carryforward, if not utilized, would expire in years 2022 – 2029. Prior to 2015, this Alabama deferred tax asset carried a full valuation allowance. During 2015, we restructured our legal entities which resulted in a partial release of the valuation allowance in the amount of $4,655,000.

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.

As of December 31, 2015, income tax receivables of $4,138,000 are included in accounts and notes receivable in the accompanying Consolidated Balance Sheet. These receivables relate to prior year state overpayments that we have requested to be refunded. There were similar receivables of $1,040,000 as of December 31, 2014.

Our liability for unrecognized tax benefits is discussed in our accounting policy for income taxes (see Note 1, caption Income Taxes). Changes in our liability for unrecognized tax benefits for the years ended December 31 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Unrecognized tax benefits as of January 1

$          7,057 

 

 

$       12,155 

 

 

$       13,550 

 

Increases for tax positions related to

 

 

 

 

 

 

 

 

  Prior years

491 

 

 

229 

 

 

28 

 

  Current year

942 

 

 

528 

 

 

845 

 

Decreases for tax positions related to

 

 

 

 

 

 

 

 

  Prior years

 

 

(53)

 

 

(86)

 

Settlements with taxing authorities

 

 

 

 

(136)

 

Expiration of applicable statute of limitations

(43)

 

 

(5,802)

 

 

(2,046)

 

Unrecognized tax benefits as of December 31

$          8,447 

 

 

$         7,057 

 

 

$       12,155 

 

 

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 $138,000 in 2015, $(1,067,000) in 2014 and $(788,000) in 2013. The balance of accrued interest and penalties included in our liability for unrecognized tax benefits as of December 31 was $1,103,000 in 2015, $965,000 in 2014 and $2,032,000 in 2013.

Our liability for unrecognized tax benefits at December 31 in the table above include $7,614,000 in 2015, $6,282,000 in 2014 and $7,910,000 in 2013 that would affect the effective tax rate if recognized.

We are routinely examined by various taxing authorities. We anticipate no single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date.

We file income tax returns in U.S. federal, various state and foreign jurisdictions. Generally, we are not subject to significant changes in income taxes by any taxing jurisdiction for the years prior to 2012.

As of December 31, 2015, we have $75,938,000 of accumulated undistributed earnings from one of our foreign subsidiaries. We consider these earnings to be indefinitely reinvested and, therefore, have not recorded income taxes on these earnings. If we were to distribute these earnings in the form of dividends, the distribution would result in U.S. income taxes of $26,578,000.

 

 

BENEFIT PLANS
BENEFIT PLANS

NOTE 10: BENEFIT PLANS

PENSION PLANS

We sponsor three funded, noncontributory defined benefit pension plans. These plans cover substantially all employees hired prior to July 2007, other than those covered by union-administered plans. Normal retirement age is 65, but the plans contain provisions for earlier retirement. Benefits for the Salaried Plan and the Chemicals Hourly Plan are generally based on salaries or wages and years of service; the Construction Materials Hourly Plan provides benefits equal to a flat dollar amount for each year of service. In addition to these qualified plans, we sponsor three unfunded, nonqualified pension plans. The projected benefit obligation presented in the table below includes $89,652,000 and $101,230,000, respectively, related to these unfunded, nonqualified pension plans for 2015 and 2014.

Effective July 2007, we amended our defined benefit pension plans to no longer accept new participants. In December 2013, we amended our defined benefit pension plans so that future service accruals for salaried pension participants ceased effective December 31, 2013. This change included a special transition provision which will allow covered compensation through December 31, 2015 to be considered in the participants’ benefit calculations. The amendment resulted in a curtailment and remeasurement of the salaried and nonqualified pension plans in May 2013 that reduced our 2013 pension expense by approximately $7,600,000 (net of the one-time curtailment loss) of which $800,000 was related to discontinued operations.

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

2015 

 

 

2014 

 

Change in Benefit Obligation

 

 

 

 

 

Projected benefit obligation at beginning of year

$    1,083,222 

 

 

$     911,700 

 

Service cost

4,851 

 

 

4,157 

 

Interest cost

44,065 

 

 

44,392 

 

Actuarial (gain) loss

(63,725)

 

 

167,041 

 

Benefits paid

(79,960)

 

 

(44,068)

 

Projected benefit obligation at end of year

$       988,453 

 

 

$  1,083,222 

 

Change in Fair Value of Plan Assets

 

 

 

 

 

Fair value of assets at beginning of year

$       816,972 

 

 

$     756,624 

 

Actual return on plan assets

(5,373)

 

 

98,928 

 

Employer contribution

14,047 

 

 

5,488 

 

Benefits paid

(79,960)

 

 

(44,068)

 

Fair value of assets at end of year

$       745,686 

 

 

$     816,972 

 

Funded status

(242,767)

 

 

(266,250)

 

Net amount recognized

$      (242,767)

 

 

$   (266,250)

 

Amounts Recognized in the Consolidated

 

 

 

 

 

 Balance Sheets

 

 

 

 

 

Noncurrent assets

$                  0 

 

 

$                0 

 

Current liabilities

(9,106)

 

 

(13,719)

 

Noncurrent liabilities

(233,661)

 

 

(252,531)

 

Net amount recognized

$      (242,767)

 

 

$   (266,250)

 

Amounts Recognized in Accumulated

 

 

 

 

 

 Other Comprehensive Income

 

 

 

 

 

Net actuarial loss

$       222,580 

 

 

$     249,867 

 

Prior service credit

(404)

 

 

(356)

 

Total amount recognized

$       222,176 

 

 

$     249,511 

 

 

The accumulated benefit obligation (ABO) and the projected benefit obligation (PBO) exceeded plan assets for all of our defined benefit plans at December 31, 2015 and December 31, 2014. The ABO for all of our defined benefit pension plans totaled $987,724,000 (unfunded, nonqualified plans of $89,652,000) at December 31, 2015 and $1,061,816,000 (unfunded, nonqualified plans of $95,154,000) at December 31, 2014.

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

2015 

 

 

2014 

 

 

2013 

 

Components of Net Periodic Pension

 

 

 

 

 

 

 

 

 Benefit Cost

 

 

 

 

 

 

 

 

Service cost

$          4,851 

 

 

$        4,157 

 

 

$      21,904 

 

Interest cost

44,065 

 

 

44,392 

 

 

40,995 

 

Expected return on plan assets

(54,736)

 

 

(50,802)

 

 

(47,425)

 

Settlement charge

2,031 

 

 

 

 

 

Curtailment loss

 

 

 

 

855 

 

Amortization of prior service cost

48 

 

 

188 

 

 

339 

 

Amortization of actuarial loss

21,641 

 

 

11,221 

 

 

20,429 

 

Net periodic pension benefit cost

$        17,900 

 

 

$        9,156 

 

 

$      37,097 

 

Changes in Plan Assets and Benefit

 

 

 

 

 

 

 

 

 Obligations Recognized in Other

 

 

 

 

 

 

 

 

 Comprehensive Income

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

$         (3,615)

 

 

$    118,915 

 

 

$  (163,205)

 

Prior service cost (credit)

 

 

 

 

(583)

 

Reclassification of actuarial loss to net

 

 

 

 

 

 

 

 

 periodic pension benefit cost

(23,672)

 

 

(11,221)

 

 

(20,429)

 

Reclassification of prior service cost to net

 

 

 

 

 

 

 

 

 periodic pension benefit cost

(48)

 

 

(188)

 

 

(1,194)

 

Amount recognized in other comprehensive

 

 

 

 

 

 

 

 

 income

$       (27,335)

 

 

$    107,506 

 

 

$  (185,411)

 

Amount recognized in net periodic pension

 

 

 

 

 

 

 

 

 benefit cost and other comprehensive

 

 

 

 

 

 

 

 

 income

$         (9,435)

 

 

$    116,662 

 

 

$  (148,314)

 

Assumptions

 

 

 

 

 

 

 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

 determine net periodic benefit cost for

 

 

 

 

 

 

 

 

 years ended December 31

 

 

 

 

 

 

 

 

Discount rate

4.14% 

 

 

4.91% 

 

 

4.33% 

 

Expected return on plan assets

7.50% 

 

 

7.50% 

 

 

7.50% 

 

Rate of compensation increase

 

 

 

 

 

 

 

 

 (for salary-related plans)

3.70% 

 

 

3.50% 

 

 

3.50% 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

 determine benefit obligation at

 

 

 

 

 

 

 

 

 December 31

 

 

 

 

 

 

 

 

Discount rate

4.54% 

 

 

4.14% 

 

 

4.91% 

 

Rate of compensation increase

 

 

 

 

 

 

 

 

 (for salary-related plans)

3.50% 

 

 

3.70% 

 

 

3.50% 

 

 

The settlement charge noted above relates to a lump sum payment to a former employee from the nonqualified plan. This charge is reflected within both cost of revenues and selling, administrative and general expenses in our accompanying Consolidated Statement of Comprehensive Income for the year ended December 31, 2015.

The estimated net actuarial loss and prior service credit that will be amortized from accumulated other comprehensive income into net periodic pension benefit cost (credit) during 2016 are $6,067,000 and $(43,000),  respectively.

Assumptions regarding our expected return on plan assets are based primarily on judgments made by us and the Finance Committee of our Board. These judgments take into account the expectations of our pension plan consultants and actuaries and our investment advisors. We base our expected return on long-term investment expectations. The expected return on plan assets used to determine 2015 pension benefit cost was 7.50%.

We establish our pension investment policy by evaluating asset/liability studies periodically performed by our consultants. These studies estimate trade-offs between expected returns on our investments and the variability in anticipated cash contributions to fund our pension liabilities. Our policy balances the variability in potential pension fund contributions to expected returns on our investments.

Our current strategy for implementing this policy is to invest in publicly traded equities and in publicly traded debt and private, nonliquid opportunities, such as venture capital, commodities, buyout funds and mezzanine debt. The target allocation ranges for plan assets are as follows: equity securities — 50% to 77%; debt securities — 15% to 27%; specialty investments — 0% to 20%; commodities — 0% to 6%; and cash reserves — 0% to 5%. Equity securities include domestic investments and foreign equities in the Europe, Australia and Far East (EAFE) and International Finance Corporation (IFC) Emerging Market Indices. Debt securities primarily include domestic debt instruments, while specialty investments include investments in venture capital, buyout funds, mezzanine debt, private partnerships and an interest in a commodity index fund.

The fair values of our pension plan assets at December 31, 2015 and 2014 by asset category are as follows:

Fair Value Measurements at December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Level 1 1

 

 

Level 2 1

 

 

Level 3 1

 

 

Total

 

Asset Category

 

 

 

 

 

 

 

 

 

 

 

Debt securities

$                0 

 

 

$     154,745 

 

 

$                0 

 

 

$     154,745 

 

Investment funds

 

 

 

 

 

 

 

 

 

 

 

  Commodity funds

 

 

14,490 

 

 

 

 

14,490 

 

  Equity funds

647 

 

 

463,416 

 

 

 

 

464,063 

 

  Short-term funds

 

 

9,516 

 

 

 

 

9,516 

 

Venture capital and partnerships

 

 

 

 

102,872 

 

 

102,872 

 

Total pension plan assets

$            647 

 

 

$     642,167 

 

 

$     102,872 

 

 

$     745,686 

 

 

 

 

1

See Note 1 under the caption Fair Value Measurements for a description of the fair value hierarchy.

Fair Value Measurements at December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Level 1 1

 

 

Level 2 1

 

 

Level 3 1

 

 

Total

 

Asset Category

 

 

 

 

 

 

 

 

 

 

 

Debt securities

$                0 

 

 

$     164,695 

 

 

$                0 

 

 

$     164,695 

 

Investment funds

 

 

 

 

 

 

 

 

 

 

 

  Commodity funds

 

 

19,480 

 

 

 

 

19,480 

 

  Equity funds

457 

 

 

506,912 

 

 

 

 

507,369 

 

  Short-term funds

 

 

15,495 

 

 

 

 

15,495 

 

Venture capital and partnerships

 

 

 

 

109,933 

 

 

109,933 

 

Total pension plan assets

$            457 

 

 

$     706,582 

 

 

$     109,933 

 

 

$     816,972 

 

 

 

 

1

See Note 1 under the caption Fair Value Measurements for a description of the fair value hierarchy.

 

At each measurement date, we estimate the fair value of our pension assets using various valuation techniques. We utilize, to the extent available, quoted market prices in active markets or observable market inputs in estimating the fair value of our pension assets. When quoted market prices or observable market inputs are not available, we utilize valuation techniques that rely on unobservable inputs to estimate the fair value of our pension assets. 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 as of December 31, 2015 and 2014.

The debt securities category consists of bonds issued by U.S. federal, state and local governments, corporate debt securities, fixed income obligations issued by foreign governments, 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.

Investment funds consist of exchange traded and non-exchange traded funds. The commodity funds asset category consists of a single open-end commodity mutual fund. The equity funds asset category consists of index funds for domestic equities and an actively managed fund for international equities. The short-term funds asset category consists of a collective investment trust invested in highly liquid, short-term debt securities. 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 utilized to determine the fair value.

The venture capital and partnerships asset category consists of various limited partnership funds, mezzanine debt funds and leveraged buyout funds. The fair value 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.

A reconciliation of the fair value measurements of our pension plan assets using significant unobservable inputs (Level 3) for the years ended December 31, 2015 and 2014 is presented below:

Fair Value Measurements
Using Significant Unobservable Inputs (Level 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Venture

 

 

 

 

 

Capital and

 

 

in thousands

 

 

Partnerships

 

 

Balance at December 31, 2013

 

 

$     88,482 

 

 

Total gains (losses) for 2014 1

 

 

34,071 

 

 

Purchases, sales and settlements, net

 

 

(12,940)

 

 

Transfers into (out of) Level 3

 

 

320 

 

 

Balance at December 31, 2014

 

 

$   109,933 

 

 

Total gains (losses) for 2015 1

 

 

5,186 

 

 

Purchases, sales and settlements, net

 

 

(12,247)

 

 

Transfers into (out of) Level 3

 

 

 

 

Balance at December 31, 2015

 

 

$   102,872 

 

 

 

 

 

 

1

The total gains (losses) for 2015 and 2014 include $47 thousand and $29,329 thousand, respectively, in unrealized gains related to assets still held as of their respective year ends.

 

Total employer contributions for the pension plans are presented below:

 

 

 

 

 

 

 

 

 

 

 

in thousands

Pension

 

Employer Contributions

 

 

2013

$          4,855 

 

2014

5,488 

 

2015

14,047 

 

2016 (estimated)

9,107 

 

 

During 2015, 2014 and 2013, we made no contributions to our qualified pension plans. We do not anticipate making contributions to our qualified pension plans in 2016. For our nonqualified pension plans, we made benefit payments of $14,047,000,  $5,488,000 and $4,855,000 during 2015, 2014 and 2013, respectively, and expect to make payments of $9,107,000 during 2016.

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

 

 

 

 

 

 

 

 

 

 

 

in thousands

Pension

 

Estimated Future Benefit Payments

 

 

2016

$        51,286 

 

2017

52,434 

 

2018

55,527 

 

2019

56,835 

 

2020

58,161 

 

2021-2025

305,043 

 

 

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, 2015, 2014 and 2013. Total contributions to multiemployer pension plans were $9,800,000 in 2015, $8,503,000 in 2014 and $7,580,000 in 2013.

As of December 31, 2015, a total of 14% of our domestic hourly labor force was covered by collective-bargaining agreements. Of such employees covered by collective-bargaining agreements, 40% were covered by agreements that expire in 2016. We also employed 315 union employees in Mexico who are covered by a collective-bargaining agreement that will expire in 2016. 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, 2015 and 2014. The accrued costs for the supplemental retirement plan were $1,384,000 at December 31, 2015 and $1,421,000 at December 31, 2014.

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 terminate when covered individuals become eligible for Medicare benefits, become eligible for other group insurance coverage or reach age 65, whichever occurs first.

The March 2014 sale of our cement and concrete businesses in the Florida area (see Note 19) significantly reduced total expected future service of our postretirement plans resulting in a reduction in the projected benefit obligation of $2,639,000 and a one-time curtailment gain of $3,832,000. This gain is reflected within gain on sale of property, plant & equipment and businesses in our accompanying Consolidated Statement of Comprehensive Income for the year ended December 31, 2014.

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

2015 

 

 

2014 

 

Change in Benefit Obligation

 

 

 

 

 

Projected benefit obligation at beginning of year

$        85,336 

 

 

$       92,888 

 

Service cost

1,894 

 

 

2,146 

 

Interest cost

2,485 

 

 

3,297 

 

Liability reduction from curtailment

 

 

(2,639)

 

Actuarial gain

(35,195)

 

 

(2,617)

 

Benefits paid

(5,915)

 

 

(7,739)

 

Projected benefit obligation at end of year

$        48,605 

 

 

$       85,336 

 

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

$       (48,605)

 

 

$     (85,336)

 

Net amount recognized

$       (48,605)

 

 

$     (85,336)

 

Amounts Recognized in the Consolidated

 

 

 

 

 

 Balance Sheets

 

 

 

 

 

Current liabilities

$         (6,287)

 

 

$        (8,964)

 

Noncurrent liabilities

(42,318)

 

 

(76,372)

 

Net amount recognized

$       (48,605)

 

 

$     (85,336)

 

Amounts Recognized in Accumulated

 

 

 

 

 

 Other Comprehensive Income

 

 

 

 

 

Net actuarial (gain) loss

$       (24,325)

 

 

$       10,921 

 

Prior service credit

(23,928)

 

 

(28,160)

 

Total amount recognized

$       (48,253)

 

 

$     (17,239)

 

 

 

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

2015 

 

 

2014 

 

 

2013 

 

Components of Net Periodic Postretirement

 

 

 

 

 

 

 

 

 Benefit Cost

 

 

 

 

 

 

 

 

Service cost

$          1,894 

 

 

$        2,146 

 

 

$        2,830 

 

Interest cost

2,485 

 

 

3,297 

 

 

3,260 

 

Curtailment gain

 

 

(3,832)

 

 

 

Amortization of prior service credit

(4,232)

 

 

(4,327)

 

 

(4,863)

 

Amortization of actuarial loss

37 

 

 

227 

 

 

1,372 

 

Net periodic postretirement benefit cost (credit)

$             184 

 

 

$       (2,489)

 

 

$        2,599 

 

Changes in Plan Assets and Benefit

 

 

 

 

 

 

 

 

 Obligations Recognized in Other

 

 

 

 

 

 

 

 

 Comprehensive Income

 

 

 

 

 

 

 

 

Net actuarial (gain) loss

$       (35,209)

 

 

$       (5,256)

 

 

$    (20,444)

 

Reclassification of actuarial loss to net

 

 

 

 

 

 

 

 

 periodic postretirement benefit cost

(37)

 

 

(227)

 

 

(1,372)

 

Reclassification of prior service credit to net

 

 

 

 

 

 

 

 

 periodic postretirement benefit cost

4,232 

 

 

8,159 

 

 

4,863 

 

Amount recognized in other comprehensive

 

 

 

 

 

 

 

 

 income

$       (31,014)

 

 

$        2,676 

 

 

$    (16,953)

 

Amount recognized in net periodic

 

 

 

 

 

 

 

 

 postretirement benefit cost and other

 

 

 

 

 

 

 

 

 comprehensive income

$       (30,830)

 

 

$           187 

 

 

$    (14,354)

 

Assumptions

 

 

 

 

 

 

 

 

Assumed Healthcare Cost Trend Rates

 

 

 

 

 

 

 

 

 at December 31

 

 

 

 

 

 

 

 

Healthcare cost trend rate assumed

 

 

 

 

 

 

 

 

 for next year

n/a

 

 

7.50% 

 

 

7.50% 

 

Rate to which the cost trend rate gradually

 

 

 

 

 

 

 

 

 declines

n/a

 

 

5.00% 

 

 

5.00% 

 

Year that the rate reaches the rate it is

 

 

 

 

 

 

 

 

 assumed to maintain

n/a

 

 

2025 

 

 

2019 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

 determine net periodic benefit cost for

 

 

 

 

 

 

 

 

 years ended December 31

 

 

 

 

 

 

 

 

Discount rate

3.50% 

 

 

4.10% 

 

 

3.30% 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

 determine benefit obligation at

 

 

 

 

 

 

 

 

 December 31

 

 

 

 

 

 

 

 

Discount rate

3.69% 

 

 

3.50% 

 

 

4.10% 

 

 

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 2016 are $(1,828,000) and $(4,236,000), respectively.

Total employer contributions for the postretirement plans are presented below:

 

 

 

 

 

 

 

 

 

 

 

in thousands

Postretirement

 

Employer Contributions

 

 

2013

$          6,258 

 

2014

7,739 

 

2015

5,915 

 

2016 (estimated)

6,287 

 

 

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

 

 

2016

$          6,287 

 

2017

5,856 

 

2018

5,623 

 

2019

5,415 

 

2020

5,152 

 

2021–2025

19,229 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

in thousands

Postretirement

 

Participants Contributions

 

 

2013

$          2,022 

 

2014

1,873 

 

2015

2,031 

 

 

PENSION AND OTHER POSTRETIREMENT BENEFITS ASSUMPTIONS

Each year we review our assumptions about the discount rate, the expected return on plan assets, the rate of compensation increase (for salary-related plans) and the rate of increase in the per capita cost of covered healthcare benefits.

In selecting the discount rate, we consider the yield on high-quality bonds with a duration equal to the duration of plan liabilities. At December 31, 2015, the discount rates for our various plans ranged from 3.53% to 4.68% (December 31, 2014 ranged from 3.50% to 4.30%).  Beginning in 2016, we are changing the method we use to estimate the service and interest cost components of net periodic benefit cost for our defined benefit pension and other postretirement benefit plans. Historically, we estimated the service and interest cost components using a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Beginning in 2016, we elected to utilize a full yield curve approach to estimate the service and interest cost applying the specific spot rates along the yield curve to the relevant projected cash flows.

We are making this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding yield curve spot rates. This change will not affect the measurement of our total benefit obligations as the change in the service cost and interest cost is completely offset in the actuarial (gain) loss reported.

We are accounting for this change as a change in estimate and, accordingly, are accounting for it prospectively starting in 2016. The estimated weighted-average discount rates to measure service cost and interest cost for 2016 are 4.89% and 3.80%, respectively, for our pension plans and 4.05% and 2.81%, respectively, for our other postretirement plans. The weighted-average discount rates that we would have used for service and interest costs under our prior estimation technique were 4.54% for the pension plans and 3.69% for the other postretirement plans. The reductions in benefit cost for 2016 associated with this change are estimated to be $7,200,000 and $530,000 for our pension and other postretirement plans, respectively.

In estimating the expected return on plan assets, we consider past performance and long-term future expectations for the types of investments held by the plan as well as the expected long-term allocation of plan assets to these investments. At December 31, 2015, the expected return on plan assets remains at 7.50%.

Annual pay increases after 2015 will not increase our pension plan obligations as a result of a 2013 plan amendment.

Future increases in the per capital cost of healthcare benefits will not increase our postretirement medical benefits obligation as a result of a 2012 plan amendment to cap medical coverage cost at the 2015 level.

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 $36,085,000 in 2015, $29,215,000 in 2014 and $21,416,000 in 2013.

 

 

INCENTIVE PLANS
INCENTIVE PLANS

NOTE 11: INCENTIVE PLANS

SHARE-BASED COMPENSATION PLANS

Our 2006 Omnibus Long-term Incentive Plan (Plan) authorizes the granting of stock options, 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 11,900,000.

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 fourth 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 $13,159,000 in 2015, $16,863,000 in 2014 and $16,159,000 in 2013.

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, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target

 

 

Weighted-average

 

 

 

 

Number

 

 

Grant-date

 

 

 

 

of Shares

 

 

Fair Value

 

Performance Shares

 

 

 

 

 

Nonvested at January 1, 2015

1,019,416 

 

 

$             53.16 

 

Granted

231,730 

 

 

74.85 

 

Vested

(441,483)

 

 

46.22 

 

Canceled/forfeited

(3,324)

 

 

67.28 

 

Nonvested at December 31, 2015

806,339 

 

 

$             63.13 

 

 

During 2014 and 2013, the weighted-average grant-date fair value of performance shares granted was $63.42 and $53.65, 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

2015 

 

 

2014 

 

 

2013 

 

Aggregate value of distributed

 

 

 

 

 

 

 

 

 performance shares

$       26,258 

 

 

$                0 

 

 

$         9,286 

 

 

In addition to the performance shares granted above, we granted 14,000 restricted shares in February 2015 and 60,000 restricted shares in December 2013 to certain key executives. These shares cliff vest on the fourth anniversary of the grant date and have a grant-date fair value of $74.85 and $54.35, respectively. Expense provisions referable to restricted share awards amounted to $982,000 in 2015, $704,000 in 2014 and $35,000 in 2013.

 

STOCK OPTIONS/SOSARS — Stock options/SOSARs granted have an exercise price equal to the market value of our underlying common stock on the date of grant. The options/SOSARs vest ratably over 4 years 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 stock options/SOSARs is estimated as of the date of grant using the Black-Scholes option pricing model. Compensation cost for stock options/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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015 

 

 

2014 

 

 

2013 

 

 

SOSARs

 

 

 

 

 

 

 

 

 

Fair value

$        25.17 

 

 

$        21.94 

 

 

$        16.96 

 

 

Risk-free interest rate

1.85% 

 

 

2.40% 

 

 

1.40% 

 

 

Dividend yield

1.70% 

 

 

1.64% 

 

 

1.72% 

 

 

Volatility

33.00% 

 

 

33.00% 

 

 

33.00% 

 

 

Expected term

8.00 years

 

 

8.00 years

 

 

8.00 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 stock option/SOSAR activity as of December 31, 2015 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)

 

Stock Options/SOSARs

 

 

 

 

 

 

 

 

 

 

 

Outstanding at January 1, 2015

4,786,305 

 

 

$             59.65 

 

 

 

 

 

 

 

Granted

161,310 

 

 

79.41 

 

 

 

 

 

 

 

Exercised

(1,890,028)

 

 

63.48 

 

 

 

 

 

 

 

Forfeited or expired

(4,838)

 

 

64.48 

 

 

 

 

 

 

 

Outstanding at December 31, 2015

3,052,749 

 

 

$             58.32 

 

 

4.36 

 

 

$         118,401 

 

Vested and expected to vest

3,038,898 

 

 

$             58.27 

 

 

4.35 

 

 

$         118,043 

 

Exercisable at December 31, 2015

2,602,447 

 

 

$             56.65 

 

 

3.70 

 

 

$         106,100 

 

 

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 2015 and the exercise price, multiplied by the number of in-the-money options/SOSARs) that would have been received by the option holders had all options/SOSARs been exercised on December 31, 2015. These values change based on the fair market value of our common stock. The aggregate intrinsic values of options/SOSARs exercised for the years ended December 31 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Aggregate intrinsic value of options/

 

 

 

 

 

 

 

 

 SOSARs exercised

$       43,620 

 

 

$         7,372 

 

 

$         4,563 

 

 

To the extent the tax deductions exceed compensation cost recorded, the tax benefit is reflected as a component of equity in our Consolidated Balance Sheets. The following table presents cash and stock consideration received and tax benefit realized from stock option/SOSAR exercises and compensation cost recorded referable to stock options/SOSARs for the years ended December 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Stock Options/SOSARs

 

 

 

 

 

 

 

 

Cash and stock consideration received

 

 

 

 

 

 

 

 

 from exercises

$       72,884 

 

 

$       23,199 

 

 

$       17,156 

 

Tax benefit from exercises

16,920 

 

 

2,844 

 

 

1,770 

 

Compensation cost

2,221 

 

 

4,650 

 

 

3,936 

 

CASH-BASED COMPENSATION PLANS

We have incentive plans under which cash awards may be made annually to officers and key employees. Expense provisions referable to these plans amounted to $26,325,000 in 2015, $27,442,000 in 2014 and $19,540,000 in 2013.

 

 

COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES

NOTE 12: COMMITMENTS AND CONTINGENCIES

We have commitments in the form of unconditional purchase obligations as of December 31, 2015. These include commitments for the purchase of property, plant & equipment of $146,864,000 and commitments for noncapital purchases of $48,602,000. These commitments are due as follows:

 

 

 

 

 

 

 

 

Unconditional

 

 

Purchase

 

in thousands

Obligations

 

Property, Plant & Equipment

 

 

2016

$        67,560 

 

Thereafter

79,304 

 

Total

$      146,864 

 

Noncapital (primarily transportation and electricity contracts)

 

 

2016

$        14,361 

 

2017–2018

17,564 

 

2019–2020

11,677 

 

Thereafter

5,000 

 

Total

$        48,602 

 

 

Expenditures under noncapital purchase commitments totaled $76,178,000 in 2015, $65,582,000 in 2014 and $83,699,000 in 2013.

We have commitments in the form of minimum royalties under mineral leases as of December 31, 2015 in the amount of $217,380,000, due as follows:

 

 

 

 

 

 

 

 

Mineral

 

in thousands

Leases

 

Minimum Royalties

 

 

2016

$        21,479 

 

2017–2018

37,710 

 

2019–2020

25,380 

 

Thereafter

132,811 

 

Total

$      217,380 

 

 

Expenditures for royalties under mineral leases totaled $58,048,000 in 2015, $49,685,000 in 2014 and $53,768,000 in 2013. 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 1 under the caption Deferred Revenue. 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 $38,864,000 as of December 31, 2015.

As described in Note 9, our liability for unrecognized tax benefits is $8,447,000 as of December 31, 2015.

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 (Superfund Site) — The Lower Passaic River Study Area is part of the Diamond Shamrock Superfund Site in New Jersey. Vulcan and approximately 70 other companies are parties (collectively the “Cooperating Parties Group”) to a May 2007 Administrative Order on Consent (AOC) with the U.S. Environmental Protection Agency (EPA) to perform a Remedial Investigation/Feasibility Study (draft RI/FS) of the lower 17 miles of the Passaic River (River). On April 11, 2014, the EPA issued a proposed Focused Feasibility Study (FFS) 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 approximately $950 million to $1.73 billion. The period for public comment on the proposed FFS is closed and it is anticipated that the EPA will issue its final record of decision in the first half of 2016. The Cooperating Parties Group draft RI/FS estimates the preferred re\medial action presented therein to cost in the range of approximately $475 million to $725 million (including $93 million in operations and maintenance costs for a 30-year period).

The AOC does not obligate us to fund or perform the remedial action contemplated by either the draft RI/FS or the FFS. Vulcan formerly owned a chemicals operation near River Mile 0.1, which was sold in 1974. The Company has found no evidence that its former chemicals operation contributed any of the primary contaminants of concern to the River.

Neither the ultimate remedial approach, nor the parties who will participate in funding the remediation and their respective allocations, have been determined. However, we have estimated the cost to be incurred by us under the remedial approach most likely to be prescribed by the EPA in their final record of decision and recorded an immaterial loss for this matter in 2015.

§

TEXAS BRINE MATTER — During the operation of its former Chemicals Division, Vulcan was the lessee to a salt lease from 1976 – 2005 in an underground salt dome formation in Assumption Parish, Louisiana. The Texas Brine Company (Texas Brine) operated this salt mine for the account of Vulcan. Vulcan sold its Chemicals Division in 2005 and assigned the lease to the purchaser, and Vulcan has had no association with the leased premises or Texas Brine since that time. In August 2012, a sinkhole developed near the salt dome and numerous lawsuits were filed in state court in Assumption Parish, Louisiana. Other lawsuits, including class action litigation, were also filed in August 2012 in federal court in the Eastern District of Louisiana in New Orleans.

There are numerous defendants to the litigation in state and federal court. Vulcan was first brought into the litigation as a third-party defendant in August 2013 by Texas Brine. Vulcan has since been added as a direct and third-party defendant by other parties, including a direct claim by the state of Louisiana. The damages alleged in the litigation range from individual plaintiffs’ claims for property damage, to the state of Louisiana’s claim for response costs, to claims for physical damages to oil pipelines, to business interruption claims. In addition to the plaintiffs’ claims, Vulcan has also been sued for contractual indemnity and comparative fault by both Texas Brine and Occidental Chemical Co. (Occidental). The total amount of damages claimed is in excess of $500 million. It is alleged that the sinkhole was caused, in whole or in part, by Vulcan’s negligent actions or failure to act. It is also alleged that Vulcan breached the salt lease, as well as an operating agreement and a drilling agreement with Texas Brine; and that Vulcan is strictly liable for certain property damages in its capacity as a former assignee of the salt lease; and that Vulcan violated certain covenants and conditions in the agreement under which it sold its Chemicals Division in 2005. Vulcan has made claims for contractual indemnity, comparative fault, and breach of contract against Texas Brine, as well as claims for contractual indemnity and comparative fault against Occidental. Discovery is ongoing and the first trial date in any of these cases has been set for March 2017. At this time, we cannot reasonably estimate a range of liability pertaining to this matter.

§

HEWITT LANDFILL MATTER — On September 8, 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 RWQCB that sought data and a technical evaluation regarding the Hewitt Landfill, and a subsequent amendment to the Investigative Order requiring Vulcan to provide groundwater monitoring results to RWQCB and to create and implement a work plan for further investigation of the Hewitt Landfill. Vulcan is engaged in performing site investigation work to develop an interim-remedial action plan due in the second quarter of 2016 as required by the CAO. At this time, we are unable to estimate the cost of the interim-remedial action plan but have fully accrued the costs of the site investigation work.

Vulcan is also engaged in an ongoing dialogue with the U.S. Environmental Protection Agency, the Los Angeles Department of Water and Power, and other stakeholders regarding the potential contribution of the Hewitt Landfill to groundwater contamination in the San Fernando Valley. 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 sources of contamination. At this time, we cannot reasonably estimate a range of liability pertaining to this matter.

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.

 

 

EQUITY
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 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.

In 2014, we issued 715,004 shares of common stock in connection with a business acquisition as described in Note 19.

Under a program that was discontinued in the fourth quarter of 2014, we occasionally sold shares of common stock to the trustee of our 401(k) retirement plan to satisfy the plan participants' elections to invest in our common stock. Under this arrangement, the stock issuances and resulting cash proceeds for the years ended December 31 were as follows:

§

2014  issued 485,306 shares for cash proceeds of $30,620,000

§

2013  issued 71,208 shares for cash proceeds of $3,821,000

There were no shares held in treasury as of December 31, 2015, 2014 and 2013. During 2015, we purchased and retired 228,000 shares for a cost of $21,475,000;  no shares were purchased in 2014 and 2013. As of December 31, 2015, 3,183,416 shares may be repurchased under the current purchase authorization of our Board of Directors.

 

 

OTHER COMPREHENSIVE INCOME
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

2015 

 

 

2014 

 

 

2013 

 

AOCI

 

 

 

 

 

 

 

 

Cash flow hedges

$       (14,494)

 

 

$     (20,322)

 

 

$     (25,178)

 

Pension and postretirement plans

(105,575)

 

 

(141,392)

 

 

(74,453)

 

Total

$     (120,069)

 

 

$   (161,714)

 

 

$     (99,631)

 

 

Changes in AOCI, net of tax, for the three years ended December 31, 2015 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension and

 

 

 

 

 

Cash Flow

 

 

Postretirement

 

 

 

 

in thousands

Hedges

 

 

Benefit Plans

 

 

Total

 

AOCI

 

 

 

 

 

 

 

 

Balance as of December 31, 2012

$       (28,170)

 

 

$   (197,347)

 

 

$   (225,517)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 before reclassifications

 

 

111,883 

 

 

111,883 

 

Amounts reclassified from AOCI

2,992 

 

 

11,011 

 

 

14,003 

 

Net current year OCI changes

2,992 

 

 

122,894 

 

 

125,886 

 

Balance as of December 31, 2013

$       (25,178)

 

 

$     (74,453)

 

 

$     (99,631)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 before reclassifications

 

 

(69,051)

 

 

(69,051)

 

Amounts reclassified from AOCI

4,856 

 

 

2,112 

 

 

6,968 

 

Net current year OCI changes

4,856 

 

 

(66,939)

 

 

(62,083)

 

Balance as of December 31, 2014

$       (20,322)

 

 

$   (141,392)

 

 

$   (161,714)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 before reclassifications

 

 

23,832 

 

 

23,832 

 

Amounts reclassified from AOCI

5,828 

 

 

11,985 

 

 

17,813 

 

Net current year OCI changes

5,828 

 

 

35,817 

 

 

41,645 

 

Balance as of December 31, 2015

$       (14,494)

 

 

$   (105,575)

 

 

$   (120,069)

 

 

Amounts reclassified from AOCI to earnings, are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Reclassification Adjustment for Cash Flow

 

 

 

 

 

 

 

 

 Hedge Losses

 

 

 

 

 

 

 

 

Interest expense

$          9,759 

 

 

$        7,988 

 

 

$        5,077 

 

(Benefit from) provision for income taxes

(3,931)

 

 

(3,132)

 

 

(2,085)

 

Total 1

$          5,828 

 

 

$        4,856 

 

 

$        2,992 

 

Amortization of Pension and Postretirement Plan

 

 

 

 

 

 

 

 

 Actuarial Loss and Prior Service Cost

 

 

 

 

 

 

 

 

Cost of revenues

$        15,916 

 

 

$        2,789 

 

 

$      14,516 

 

Selling, administrative and general expenses

3,608 

 

 

688 

 

 

3,616 

 

(Benefit from) provision for income taxes

(7,539)

 

 

(1,365)

 

 

(7,121)

 

Total 2

$        11,985 

 

 

$        2,112 

 

 

$      11,011 

 

Total reclassifications from AOCI to earnings

$        17,813 

 

 

$        6,968 

 

 

$      14,003 

 

 

 

 

1

Totals for 2015 and 2014 include the acceleration of a proportional amount of deferred losses on interest rate derivatives (see Note 5) referable to debt purchases (see Note 6).

2

Total for 2015 includes a one-time settlement loss resulting from a lump sum payment to a former employee (see Note 10). Total for 2014 includes a one-time curtailment gain (see Note 10) resulting from the sale of our cement and concrete businesses in the Florida area (see Note 19).

 

 

SEGMENT REPORTING
SEGMENT REPORTING

NOTE 15: SEGMENT REPORTING

We have four operating (and reportable) segments organized around our principal product lines: Aggregates, Asphalt Mix, Concrete and Calcium.

The Aggregates segment produces and sells aggregates (crushed stone, sand and gravel, sand, and other aggregates) and related products and services (transportation and other). During 2015, the Aggregates segment principally served markets in twenty states, Washington D.C. and Mexico with a full line of aggregates, and six 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. We sell a relatively small amount of construction aggregates outside the United States. Nondomestic revenues were $11,408,000 in 2015, $14,699,000 in 2014 and $12,339,000 in 2013.

The Asphalt Mix segment produces and sells asphalt mix in four states primarily in our southwestern and western markets.

The Concrete segment produces and sells ready-mixed concrete in six states, Washington D.C. and an immaterial amount in the Bahamas. In January 2015, we swapped our ready-mixed concrete operations in California (see Note 19) for asphalt mix operations, primarily in Arizona. In March 2014, we sold our concrete business in the Florida area (see Note 19) which in addition to ready-mixed concrete, included concrete block, precast concrete, as well as building materials purchased for resale.

The Calcium segment consists of a Florida facility that mines, produces and sells calcium products. Prior to the sale of our cement business in March 2014 (see Note 19), we produced and sold Portland and masonry cement in both bulk and bags from our Florida cement plant and imported and exported cement, clinker and slag and either resold, ground, blended, bagged or reprocessed those materials from other Florida facilities.

Aggregates comprise approximately 95% of asphalt mix by weight and 80% of ready-mixed concrete by weight. Our Asphalt Mix 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 utilized in the production of asphalt mix and ready-mixed concrete. Customers for our Asphalt Mix 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. Long-lived assets outside the United States, which consist primarily of property, plant & equipment, were $160,125,000 in 2015, $139,427,000 in 2014 and $140,504,000 in 2013. Equity method investments of $22,967,000 in 2015, $22,924,000 in 2014 and $22,962,000 in 2013 are included below in the identifiable assets for the Aggregates segment.

SEGMENT FINANCIAL DISCLOSURE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Total Revenues

 

 

 

 

 

 

 

 

Aggregates 1

$  2,777,758 

 

 

$  2,346,411 

 

 

$  2,025,026 

 

Asphalt Mix 2

530,692 

 

 

445,538 

 

 

407,657 

 

Concrete 2, 3

299,252 

 

 

375,806 

 

 

471,748 

 

Calcium 4

8,596 

 

 

25,032 

 

 

99,004 

 

 Segment sales

$  3,616,298 

 

 

$  3,192,787 

 

 

$  3,003,435 

 

Aggregates intersegment sales

(194,117)

 

 

(189,393)

 

 

(185,385)

 

Calcium intersegment sales

 

 

(9,225)

 

 

(47,341)

 

Total revenues

$  3,422,181 

 

 

$  2,994,169 

 

 

$  2,770,709 

 

Gross Profit

 

 

 

 

 

 

 

 

Aggregates

$     755,666 

 

 

$     544,070 

 

 

$     413,301 

 

Asphalt Mix 2

78,225 

 

 

38,080 

 

 

32,704 

 

Concrete 2, 3

20,152 

 

 

2,233 

 

 

(24,774)

 

Calcium 4

3,490 

 

 

3,199 

 

 

5,649 

 

Total

$     857,533 

 

 

$     587,582 

 

 

$     426,880 

 

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

 

 

 

 

 

 

 

 

Aggregates

$     228,466 

 

 

$     227,042 

 

 

$     224,808 

 

Asphalt Mix 2

16,378 

 

 

10,719 

 

 

8,697 

 

Concrete 2, 3

11,374 

 

 

19,892 

 

 

32,996 

 

Calcium 4

679 

 

 

1,554 

 

 

18,093 

 

Other

17,926 

 

 

20,290 

 

 

22,514 

 

Total

$     274,823 

 

 

$     279,497 

 

 

$     307,108 

 

Capital Expenditures 5

 

 

 

 

 

 

 

 

Aggregates

$     269,014 

 

 

$     180,026 

 

 

$     253,000 

 

Asphalt Mix 2

8,111 

 

 

20,796 

 

 

17,089 

 

Concrete 2, 3

19,053 

 

 

19,542 

 

 

13,054 

 

Calcium 4

 

 

201 

 

 

198 

 

Corporate

7,846 

 

 

2,532 

 

 

1,277 

 

Total

$     304,024 

 

 

$     223,097 

 

 

$     284,618 

 

Identifiable Assets 6

 

 

 

 

 

 

 

 

Aggregates

$  7,540,273 

 

 

$  7,311,336 

 

 

$  7,006,724 

 

Asphalt Mix 2

251,716 

 

 

264,172 

 

 

195,046 

 

Concrete 2, 3

198,193 

 

 

227,000 

 

 

370,103 

 

Calcium 4

5,509 

 

 

5,818 

 

 

413,296 

 

Total identifiable assets

7,995,691 

 

 

7,808,326 

 

 

7,985,169 

 

General corporate assets

21,881 

 

 

91,498 

 

 

54,207 

 

Cash items

284,060 

 

 

141,273 

 

 

193,738 

 

Total assets

$  8,301,632 

 

 

$  8,041,097 

 

 

$  8,233,114 

 

 

 

 

1

Includes product sales, as well as freight, delivery and transportation revenues, and other revenues related to services.

2

In January 2015, we exchanged our California ready-mixed concrete operations for 13 asphalt mix plants, primarily in Arizona (see Note 19).    

3

In March 2014, we sold our concrete business in the Florida area (see Note 19).

4

Includes cement and calcium products. In March 2014, we sold our cement business (see Note 19).

5

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.

6

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

 

 

SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

NOTE 16: SUPPLEMENTAL CASH FLOW INFORMATION

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Cash Payments

 

 

 

 

 

 

 

 

Interest (exclusive of amount capitalized)

$      208,288 

 

 

$      241,841 

 

 

$     196,794 

 

Income taxes

53,623 

 

 

79,862 

 

 

30,938 

 

Noncash Investing and Financing Activities

 

 

 

 

 

 

 

 

Accrued liabilities for purchases of property,

 

 

 

 

 

 

 

 

 plant & equipment

$        31,883 

 

 

$        17,120 

 

 

$       18,864 

 

Amounts referable to business acquisitions

 

 

 

 

 

 

 

 

 Liabilities assumed

2,645 

 

 

26,622 

 

 

232 

 

 Fair value of noncash assets and liabilities exchanged

20,000 

 

 

2,414 

 

 

 

 Fair value of equity consideration

 

 

45,185 

 

 

 

 

 

 

ASSET RETIREMENT OBLIGATIONS
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. If the ARO is settled for other than the carrying amount of the liability, we recognize a gain or loss on settlement.

We record all AROs for which we have legal obligations for land reclamation at estimated fair value. Essentially all 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

2015 

 

 

2014 

 

 

2013 

 

ARO Operating Costs

 

 

 

 

 

 

 

 

Accretion

$        11,474 

 

 

$        11,601 

 

 

$       10,685 

 

Depreciation

6,515 

 

 

4,462 

 

 

3,527 

 

Total

$        17,989 

 

 

$        16,063 

 

 

$       14,212 

 

 

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

2015 

 

 

2014 

 

Asset Retirement Obligations

 

 

 

 

 

Balance at beginning of year

$      226,565 

 

 

$      228,234 

 

 Liabilities incurred

6,235 

 

 

9,130 

 

 Liabilities settled

(18,048)

 

 

(26,547)

 

 Accretion expense

11,474 

 

 

11,601 

 

 Revisions, net

368 

 

 

4,147 

 

Balance at end of year

$      226,594 

 

 

$      226,565 

 

 

The ARO liabilities incurred during 2015 and 2014 relate primarily to acquisitions (see Note 19). ARO liabilities settled during 2015 and 2014 include $13,117,000 and $18,637,000, 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 and development of 90 acres of previously mined property suitable for commercial and retail development.

 

 

GOODWILL AND INTANGIBLE ASSETS
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 regarding our policies on impairment reviews, see Note 1 under the captions Goodwill and 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, 2015, 2014 and 2013.

We have four reportable segments organized around our principal product lines: Aggregates, Asphalt Mix, Concrete and Calcium. Changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2015, 2014 and 2013 are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Aggregates

 

 

Asphalt Mix

 

 

Concrete

 

 

Calcium

 

 

Total

 

Goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as of December 31, 2012

$   2,995,083 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,086,716 

 

Goodwill of divested businesses 1

(5,195)

 

 

 

 

 

 

 

 

(5,195)

 

Total as of December 31, 2013

$   2,989,888 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,081,521 

 

Goodwill of acquired businesses 1

13,303 

 

 

 

 

 

 

 

 

13,303 

 

Total as of December 31, 2014

$   3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,094,824 

 

Total as of December 31, 2015

$   3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,094,824 

 

 

 

 

1

Refer to Note 19 for additional details.

 

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 2015, 2014 and 2013. 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-production 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. As shown in Note 1 under the caption Fair Value Measurements, we incurred $2,858,000 of impairment charges related to intangible assets in 2015. There were no charges for impairment of intangible assets in the years ended December 31, 2014 and 2013.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Gross Carrying Amount

 

 

 

 

 

Contractual rights in place

$      735,935 

 

 

$     719,100 

 

Noncompetition agreements

2,800 

 

 

2,550 

 

Favorable lease agreements

16,677 

 

 

16,677 

 

Permitting, permitting compliance and zoning rights

99,513 

 

 

93,273 

 

Other 1

4,092 

 

 

4,067 

 

Total gross carrying amount

$      859,017 

 

 

$     835,667 

 

Accumulated Amortization

 

 

 

 

 

Contractual rights in place

$       (65,641)

 

 

$     (54,019)

 

Noncompetition agreements

(506)

 

 

(119)

 

Favorable lease agreements

(4,002)

 

 

(3,489)

 

Permitting, permitting compliance and zoning rights

(20,350)

 

 

(18,270)

 

Other 1

(1,939)

 

 

(1,527)

 

Total accumulated amortization

$       (92,438)

 

 

$     (77,424)

 

Total Intangible Assets Subject to Amortization, net

$      766,579 

 

 

$     758,243 

 

Intangible Assets with Indefinite Lives

 

 

 

Total Intangible Assets, net

$      766,579 

 

 

$     758,243 

 

Amortization Expense for the Year

$        15,618 

 

 

$       10,966 

 

 

 

 

1

Includes customer relationships and tradenames and trademarks.

 

Estimated amortization expense for the five years subsequent to December 31, 2015 is as follows:

 

 

 

 

 

 

 

in thousands

 

 

Estimated Amortization Expense for Five Subsequent Years

 

2016

$        19,946 

 

2017

20,797 

 

2018

21,702 

 

2019

19,746 

 

2020

20,247 

 

 

 

 

ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES

NOTE 19: ACQUISITIONS AND DIVESTITURES

ACQUISITIONS

During 2015, the following assets were acquired for $47,198,000 of consideration (($27,198,000 cash and $20,000,000 exchanges of real property and businesses  (twelve California ready-mixed concrete operations)):

§

one aggregates facility in Tennessee

§

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

§

thirteen asphalt mix plants, primarily in Arizona

 

The 2015 acquisitions listed above are reported in our consolidated financial statements as of their respective acquisition dates. The amounts of total revenues and net earnings for these acquisitions (collectively) are included in our Consolidated Statement of Comprehensive Income for year ended December 31, 2015, as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

Actual Results

 

 

 

 

 

Total revenues

 

 

 

$       67,002 

 

Net earnings

 

 

 

1,938 

 

 

None of the 2015 acquisitions listed above are material to our results of operations or financial position either individually or collectively. The fair value of consideration transferred for these acquisitions and the preliminary amounts of assets acquired and liabilities assumed (based on their estimated fair values at their acquisition dates), are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

Fair Value of Purchase Consideration

 

 

 

 

 

Cash

 

 

 

$       27,198 

 

Exchanges of real property and businesses

 

 

 

20,000 

 

Total fair value of purchase consideration

 

 

 

$       47,198 

 

Identifiable Assets Acquired and Liabilities Assumed

 

 

 

 

 

Accounts and notes receivable, net

 

 

 

$         2,105 

 

Inventories

 

 

 

3,559 

 

Other current assets

 

 

 

358 

 

Property, plant & equipment, net

 

 

 

26,087 

 

Other intangible assets

 

 

 

 

 

 Contractual rights in place

 

 

 

17,484 

 

 Noncompetition agreement

 

 

 

250 

 

Liabilities assumed

 

 

 

(2,645)

 

Net identifiable assets acquired

 

 

 

$       47,198 

 

Goodwill

 

 

 

$                0 

 

 

Estimated fair values of assets acquired and liabilities assumed are preliminary pending appraisals of contractual rights in place and property, plant & equipment.

The contractual rights in place noted above will be amortized against earnings ($7,168,000 - straight-line over 20 years and $10,317,000 - units of production over an estimated 34 years) and deductible for income tax purposes over 15 years.

During 2014, we purchased the following for total consideration of $331,836,000 ($284,237,000 cash, $2,414,000 exchanges of real property and businesses and $45,185,000 of our common stock (715,004 shares)):

§

two portable asphalt plants and an aggregates facility in southern California

§

five aggregates facilities and associated downstream assets in Arizona and New Mexico

§

two aggregates facilities in Delaware, serving northern Virginia and Washington, D.C.

§

four aggregates facilities in the San Francisco Bay Area

§

a rail-connected aggregates operation and two distribution yards that serve the greater Dallas/Fort Worth market

§

a permitted aggregates quarry in Alabama

None of the 2014 acquisitions listed above were material to our results of operations or financial position either individually or collectively. As a result of these 2014 acquisitions, we recognized $128,286,000 of amortizable intangible assets (primarily contractual rights in place). The contractual rights in place will be amortized against earnings using the unit-of-production method over an estimated weighted-average period in excess of 40 years and all but $36,921,000 will be deductible for income tax purposes over 15 years. The $13,303,000 of goodwill recognized (none of which will be deductible for income tax purposes) represents the balance of deferred tax liabilities generated from carrying over the seller’s tax basis in the assets acquired.

DIVESTITURES

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

In 2014, we sold:

§

First quarter — our cement and concrete businesses in the Florida area for net pretax cash proceeds of $721,359,000 resulting in a pretax gain of $227,910,000. We retained all of our Florida aggregates operations, our former Cement segment’s calcium operation in Brooksville, Florida and real estate associated with certain former ready-mixed concrete facilities. Under a separate supply agreement, we continue to provide aggregates to the divested concrete facilities, at market prices, for a period of 20 years. As a result of the continuing cash flows (generated via the supply agreement and the retained operation and assets), the disposition is not reported as discontinued operations

§

First quarter — a previously mined and subsequently reclaimed tract of land in Maryland (Aggregates segment) for net pretax cash proceeds of $10,727,000 resulting in a pretax gain of $168,000

§

First quarter — unimproved land in Tennessee previously containing a sales yard (Aggregates segment) for net pretax cash proceeds of $5,820,000 resulting in a pretax gain of $5,790,000

In 2013, we sold:

§

Third quarter — reclaimed land associated with a former site of a ready-mixed concrete facility in Virginia for net pretax cash proceeds of $11,261,000 resulting in a pretax gain of $9,027,000

§

Third quarter — a percentage of the future production from aggregates reserves at certain owned quarries. The sale was structured as a volumetric production payment (VPP) for which we received gross cash proceeds of $154,000,000 and incurred transaction costs of $905,000. The net proceeds were recorded as deferred revenue and are amortized on a unit-of-sales basis to revenues over the term of the VPP. See Note 1, caption Deferred Revenue, for the key terms of the VPP

§

Second quarter — four aggregates production facilities in Wisconsin for net pretax cash proceeds of $34,743,000 resulting in a pretax gain of $21,183,000. We allocated $4,521,000 of goodwill to these dispositions based on the relative fair values of the businesses disposed of and the portion of the reporting unit retained. Additionally, the dispositions of these facilities will likely result in a partial withdrawal from one of our multiemployer pension plans; therefore, we recognized a $4,000,000 liability related to this plan

§

First quarter — one aggregates production facility in Wisconsin and its related replacement reserve land for net pretax cash proceeds of $5,133,000 resulting in a pretax gain of $2,802,000. We allocated $674,000 of goodwill to this disposition based on the relative fair value of the business disposed of and the portion of the reporting unit retained

PENDING DIVESTITURES

There were no pending divestitures classified as assets held for sale as of December 31, 2015. Conversely, the twelve ready-mixed concrete operations in California (exchanged for thirteen asphalt mix plants as noted above) sold in the first quarter of 2015 are presented in the accompanying Consolidated Balance Sheet as of December 31, 2014 as assets held

for sale. The major classes of assets and liabilities of assets classified as held for sale as of December 31 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Held for Sale

 

 

 

 

 

Current assets

$              0 

 

 

$       1,773 

 

Property, plant & equipment, net

 

 

12,764 

 

Other intangible assets, net

 

 

647 

 

Total assets held for sale

$              0 

 

 

$     15,184 

 

Asset retirement obligations

$              0 

 

 

$          520 

 

Total liabilities of assets held for sale

$              0 

 

 

$          520 

 

 

Effective land management is both a business strategy and a social responsibility. We strive to achieve value through our mining activities as well as incremental value through effective post-mining land management. Our land management strategy includes routinely reclaiming and selling our previously mined land. Additionally, this strategy includes developing conservation banks by preserving land as a suitable habitat for endangered or sensitive species. These conservation banks have received approval from the United States Fish and Wildlife Service to offer mitigation credits for sale to third parties who may be required to compensate for the loss of habitats of endangered or sensitive species.

 

 

UNAUDITED SUPPLEMENTARY DATA
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, 2015 and 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

Three Months Ended

 

in thousands, except per share data

March 31

 

June 30

 

Sept 30

 

Dec 31

 

Total revenues

$  631,293 

 

$  895,143 

 

$ 1,038,460 

 

$   857,285 

 

Gross profit

77,865 

 

234,449 

 

291,290 

 

253,929 

 

Operating earnings

10,759 

 

153,776 

 

212,206 

 

173,037 

 

Earnings (loss) from continuing operations

(36,667)

 

49,819 

 

126,202 

 

93,560 

 

Net earnings (loss)

(39,678)

 

48,162 

 

123,805 

 

88,888 

 

Basic earnings (loss) per share from continuing operations

$       (0.28)

 

$        0.37 

 

$          0.95 

 

$         0.70 

 

Diluted earnings (loss) per share from continuing operations

$       (0.28)

 

$        0.37 

 

$          0.93 

 

$         0.69 

 

Basic net earnings (loss) per share

$       (0.30)

 

$        0.36 

 

$          0.93 

 

$         0.67 

 

Diluted net earnings (loss) per share

$       (0.30)

 

$        0.36 

 

$          0.91 

 

$         0.65 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

Three Months Ended

 

in thousands, except per share data

March 31

 

June 30

 

Sept 30

 

Dec 31

 

Total revenues

$  574,420 

 

$  791,143 

 

$    873,579 

 

$   755,027 

 

Gross profit

34,092 

 

174,788 

 

209,042 

 

169,660 

 

Operating earnings 1

194,669 

 

103,246 

 

140,331 

 

99,892 

 

Earnings from continuing operations 1

54,505 

 

46,511 

 

67,781 

 

38,349 

 

Net earnings 1

53,995 

 

45,967 

 

66,939 

 

38,022 

 

Basic earnings per share from continuing operations

$        0.42 

 

$        0.35 

 

$          0.51 

 

$         0.29 

 

Diluted earnings per share from continuing operations

$        0.41 

 

$        0.35 

 

$          0.51 

 

$         0.29 

 

Basic net earnings per share

$        0.41 

 

$        0.35 

 

$          0.51 

 

$         0.29 

 

Diluted net earnings per share

$        0.41 

 

$        0.35 

 

$          0.50 

 

$         0.28 

 

 

 

 

1

Includes a $227,910 thousand pretax gain on the sale of our cement and concrete businesses in the Florida area as described in Note 19, primarily recorded in the first quarter.

 

 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

NATURE OF OPERATIONS

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

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

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

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of Vulcan Materials Company and all our majority or
wholly-owned subsidiary companies. 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, reclamation costs, 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 total cost of acquisitions is allocated to the underlying identifiable assets acquired and liabilities assumed based on their respective fair values. Determining the fair values of assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions.

RESTRUCTURING CHARGES

Costs associated with restructuring our operations include severance and related charges to eliminate a specified number of employee positions, costs to relocate employees, contract cancellation costs and charges to vacate facilities and consolidate operations. Relocation, contract cancellation costs and charges to vacate facilities are recognized in the period the liability is incurred. Severance charges for employees, who are required to render service beyond a minimum retention period, generally more than 60 days, are recognized ratably over the retention period; otherwise, the full severance charge is recognized on the date a detailed restructuring plan has been authorized by management and communicated to employees.

In 2014, we announced changes to our executive management team, and a new divisional organization structure that was effective January 1, 2015. During 2015 and 2014, we incurred $4,988,000 and $1,308,000, respectively, of costs related to these initiatives. We do not expect to incur any future material charges related to these initiatives.

During 2013, we incurred $1,509,000 of severance costs related to the implementation of a 2012 profit enhancement plan.

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.

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 30 days of being invoiced. 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. Receivables are aged and appropriate allowances for doubtful accounts and bad debt expense are recorded. Bad debt expense for the years ended December 31 was as follows: 2015$1,450,000,  2014$2,031,000 and 2013$602,000. Write-offs of accounts receivables for the years ended December 31 were as follows: 2015$1,483,000,  2014$2,561,000 and 2013$1,946,000.

INVENTORIES

Inventories and supplies are stated at the lower of cost or market. 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 regarding 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 $7,003,000 and $8,753,000 are reflected in net property, plant & equipment as of December 31, 2015 and 2014, respectively. We capitalized software costs for the years ended December 31 as follows: 2015 — $1,482,000, 2014 — $921,000 and 2013 — $1,695,000. For additional information regarding 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 25 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-production 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-production 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

2015 

 

 

2014 

 

 

2013 

 

Depreciation, Depletion, Accretion and Amortization

 

 

 

 

 

 

 

 

Depreciation

$      228,866 

 

 

$     239,611 

 

 

$     271,180 

 

Depletion

18,177 

 

 

16,741 

 

 

13,028 

 

Accretion

11,474 

 

 

11,601 

 

 

10,685 

 

Amortization of leaseholds

688 

 

 

578 

 

 

483 

 

Amortization of intangibles

15,618 

 

 

10,966 

 

 

11,732 

 

Total

$      274,823 

 

 

$     279,497 

 

 

$     307,108 

 

 

DERIVATIVE INSTRUMENTS

We periodically use derivative instruments to manage our mix of fixed-rate and floating-rate debt and to manage our exposure to currency exchange risk or price fluctuations on commodity energy sources consistent with our risk management policies. We do not use derivative financial instruments for speculative or trading purposes. Additional disclosures regarding 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

in thousands

2015 

 

 

2014 

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

  Mutual funds

$       11,472 

 

 

$     15,532 

 

  Equities

8,992 

 

 

11,248 

 

Total

$       20,464 

 

 

$     26,780 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2

in thousands

2015 

 

 

2014 

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

  Common/collective trust funds

$        2,124 

 

 

$       1,415 

 

Total

$        2,124 

 

 

$       1,415 

 

 

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

Net gains (losses) of the Rabbi Trust investments were $(1,517,000),  $1,169,000 and $4,398,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The portions of the net gains (losses) related to investments still held by the Rabbi Trusts at December 31, 2015, 2014 and 2013 were $(1,769,000),  $(1,049,000) and $4,234,000, 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.

There were no assets or liabilities subject to fair value measurement on a nonrecurring basis in 2013. Assets that were subject to fair value measurement on a nonrecurring basis in 2015 and 2014 are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ending December 31, 2015

 

Year ending December 31, 2014

 

 

 

 

 

 

Impairment

 

 

 

 

 

Impairment

 

in thousands

Level 2

 

 

Charges

 

 

Level 2

 

 

Charges

 

Fair Value Nonrecurring

 

 

 

 

 

 

 

 

 

 

 

Property, plant & equipment

$              0 

 

 

$       2,176 

 

 

$       2,172 

 

 

$       3,095 

 

Other intangible assets, net

 

 

2,858 

 

 

 

 

 

Other assets

 

 

156 

 

 

 

 

 

Totals

$              0 

 

 

$       5,190 

 

 

$       2,172 

 

 

$       3,095 

 

 

We recorded $5,190,000 and $3,095,000 of losses on impairment of long-lived assets (reported within other operating expenses, net in our accompanying Consolidated Statements of Comprehensive Income) in 2015 and 2014, respectively, reducing the carrying value of these assets to their estimated fair values of $0 and $2,172,000. Fair value was estimated using a market approach (observed transactions involving comparable assets in similar locations).

GOODWILL AND 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, 2015, goodwill totaled $3,094,824,000, the same as at December 31, 2014. Goodwill represents 37% of total assets at December 31, 2015 compared to 38% as of December 31, 2014.

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 Mix, Concrete and Calcium. Within these four operating segments, we have identified 18 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 two-step quantitative test. We elected to perform the quantitative impairment test for all years presented.

The first step of the quantitative impairment test identifies potential impairment by comparing the fair value of a reporting unit to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is not considered impaired and the second step of the impairment test is not required. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of impairment loss, if any.

The second step of the quantitative impairment test compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined by hypothetically allocating the fair value of the reporting unit to its identifiable assets and liabilities in a manner consistent with a business combination, with any excess fair value representing implied goodwill. If the carrying value of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess.

The results of the first step of the annual impairment tests performed as of November 1, 2015, 2014 and 2013 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, 2015, 2014 or 2013.

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 regarding 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, 2015, net property, plant & equipment represents 38% of total assets, while net other intangible assets represents 9% of total assets. During 2015, we recorded a $5,190,000 loss on impairment of long-lived assets related to exiting a lease for an aggregates site. During 2014, we recorded a $3,095,000 loss on impairment of long-lived assets related primarily to assets retained in the divestiture of our cement and concrete businesses in the Florida area (see Note 19). We recorded no asset impairments during 2013.

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

TOTAL REVENUES AND REVENUE RECOGNITION

Total revenues include sales of product to customers, net of any discounts and taxes, and freight and delivery revenues billed to customers. Freight and delivery generally represents pass-through transportation we incur (including our administrative costs) and pay to third-party carriers to deliver our products to customers. The cost related to freight and delivery is included in cost of revenues.

Revenue is recognized at the time the selling price is fixed, the product's title is transferred to the buyer and collectibility of the sales proceeds is reasonably assured (typically occurs when finished products are shipped to the customer).

SALES TAXES

Sales taxes collected from customers are recorded as liabilities (within other accrued liabilities) until remitted to taxing authorities and therefore, are not reflected in the Consolidated Statements of Comprehensive Income.

DEFERRED REVENUE

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

The VPPs:

§

relate to eight quarries in Georgia and South Carolina

§

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

§

are both time and volume limited

§

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

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

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Deferred Revenue

 

 

 

 

 

 

 

 

Balance at beginning of year

$      219,968 

 

 

$     224,743 

 

 

$       73,583 

 

 Cash received and revenue deferred

 

 

187 

 

 

153,156 

 

 Amortization of deferred revenue

(5,908)

 

 

(4,962)

 

 

(1,996)

 

Balance at end of year

$      214,060 

 

 

$     219,968 

 

 

$     224,743 

 

 

Based on expected sales from the specified quarries, we expect to recognize approximately $6,400,000 of deferred revenue as income in 2016 (reflected in other accrued liabilities in our 2015 Consolidated Balance Sheet).

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 $50,409,000 in 2015, $44,896,000 in 2014 and $41,716,000 in 2013.

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-production method. Pre-production stripping costs included in other noncurrent assets were $61,369,000 as of December 31, 2015 and $44,035,000 as of December 31, 2014. This year-over-year increase resulted primarily from the removal of overburden at a greenfield site in California.

SHARE-BASED COMPENSATION

We account for share-based compensation awards using fair-value-based measurement methods. These result 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.

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 classified as financing cash flows. The $18,376,000,  $3,464,000, and $161,000 in excess tax benefits classified as financing cash inflows for the years ended December 31, 2015, 2014 and 2013, respectively, in the accompanying Consolidated Statements of Cash Flows relate to the exercise of stock options and issuance of shares under long-term incentive plans.

A summary of the estimated future compensation cost (unrecognized compensation expense) as of December 31, 2015 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

$          4,882 

 

 

1.6 

 

Performance and restricted shares

22,271 

 

 

2.5 

 

Total/weighted-average

$        27,153 

 

 

2.3 

 

 

 

 

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

2015 

 

 

2014 

 

 

2013 

 

Employee Share-based Compensation Awards

 

 

 

 

 

 

 

 

Pretax compensation expense

$        16,362 

 

 

$       22,217 

 

 

$       20,187 

 

Income tax benefits

6,347 

 

 

8,571 

 

 

7,833 

 

 

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

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 $226,594,000 as of December 31, 2015 and $226,565,000 as of December 31, 2014. For additional information regarding reclamation obligations (referred to in our financial statements as asset retirement obligations) see Note 17.

PENSION AND OTHER POSTRETIREMENT BENEFITS

Accounting for pension and postretirement benefits requires that we make significant assumptions regarding the valuation of benefit obligations and the performance of plan assets. The primary assumptions are as follows:

§

Discount Rate — The discount rate is used in calculating the present value of projected benefit payments

§

Expected Return on Plan Assets — The expected future return on plan assets reduces the recorded net benefit costs

§

Rate of Compensation Increase — Annual pay increases after 2015 will not increase our pension plan obligations as a result of a 2013 plan amendment

§

Rate of Increase in the Per Capita Cost of Covered Healthcare Benefits — Increases in the per capita cost after 2015 will not increase our postretirement medical benefits obligation as a result of a 2012 plan amendment to cap medical coverage cost at the 2015 level

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 regarding pension and other postretirement benefits see Note 10.

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 completion of the remedial feasibility study.

When we can estimate a range of probable loss, we accrue the most likely amount. In the event that no amount in the range of probable loss is considered most likely, the minimum loss in the range is accrued. As of December 31, 2015, 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 $3,154,000. 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 regarding 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

2015 

 

 

2014 

 

Self-insurance Program

 

 

 

 

 

Self-insured liabilities (undiscounted)

$        44,618 

 

 

$       43,731 

 

Insured liabilities (undiscounted)

16,787 

 

 

17,758 

 

Discount rate

1.44% 

 

 

1.29% 

 

Amounts Recognized in Consolidated

 

 

 

 

 

 Balance Sheets

 

 

 

 

 

Investments and long-term receivables

$        15,810 

 

 

$       16,884 

 

Other accrued liabilities

(14,198)

 

 

(13,131)

 

Other noncurrent liabilities

(44,102)

 

 

(45,569)

 

Net liabilities (discounted)

$       (42,490)

 

 

$     (41,816)

 

 

Estimated payments (undiscounted) under our self-insurance program for the five years subsequent to December 31, 2015 are as follows:

 

 

 

 

 

 

 

in thousands

 

 

Estimated Payments under Self-insurance Program

 

 

2016

$        19,001 

 

2017

10,900 

 

2018

7,743 

 

2019

5,063 

 

2020

3,609 

 

 

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.

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 financial statement’s carrying amounts of assets and liabilities and the amounts used for income tax purposes. 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.

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.

The years open to tax examinations vary by jurisdiction. 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, actuarial gains or losses and prior service costs related to pension and postretirement benefit plans.

For additional information regarding 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

2015 

 

 

2014 

 

 

2013 

 

Weighted-average common shares outstanding

133,210 

 

 

131,461 

 

 

130,272 

 

Dilutive effect of

 

 

 

 

 

 

 

 

  Stock options/SOSARs

1,027 

 

 

656 

 

 

461 

 

  Other stock compensation plans

856 

 

 

874 

 

 

734 

 

Weighted-average common shares outstanding,

 

 

 

 

 

 

 

 

 assuming dilution

135,093 

 

 

132,991 

 

 

131,467 

 

 

All dilutive common stock equivalents are reflected in our earnings per share calculations. Antidilutive common stock equivalents are not included in our earnings per share calculations.

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

2015 

 

 

2014 

 

 

2013 

 

Antidilutive common stock equivalents

544 

 

 

2,352 

 

 

2,895 

 

 

RECLASSIFICATIONS

Certain items previously reported in specific financial statement captions have been reclassified to conform with the 2015 presentation. During 2015, we early adopted Accounting Standards Update (ASU) 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” resulting in adjustments to our prior financial statements as noted in the caption (Debt Issuance Costs) below.

ACCOUNTING STANDARDS RECENTLY ADOPTED

DEFERRED TAXES  As of December 31, 2015, we early adopted ASU 2015-17, “Balance Sheet Classification of Deferred Taxes” on a prospective basis (i.e., prior balance sheets were not adjusted). Under ASU 2015-17, all deferred tax assets and liabilities are presented as noncurrent in our balance sheet. Under prior guidance, deferred tax assets and liabilities were separately presented as current and noncurrent in our balance sheet. See Note 9 for additional detail. 

DEBT ISSUANCE COSTS  As of and for the interim period ended June 30, 2015, we early adopted ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” Under ASU 2015-03, debt issuance costs related to a note are presented in the balance sheet as a deduction from the related debt liability rather than as a prepaid expense (the amortization of such costs continues to be reported as interest expense). However, this ASU did not address the balance sheet presentation of debt issuance costs  incurred before a debt liability is recognized or associated with revolving debt arrangements, such as our line of credit. Accordingly, we elected an accounting policy to present all debt issuance costs as a deduction from the total debt liability. This ASU and related election are retrospectively applied to the beginning of the earliest period presented in the financial statements. As a result of the retrospective application of this change in accounting principle, we adjusted our Condensed Consolidated Balance Sheet for the prior period presented. Debt issuance costs of $20,805,000 previously reported as other noncurrent assets on the Condensed Consolidated Balance Sheet as of December 31, 2014 were reclassified as a deduction from the principal amount of the total debt liability.

SHARE-BASED AWARDS  As of and for the interim period ended March 31, 2015, we adopted ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period.” This ASU clarified the proper method of accounting for share-based awards when the terms of an award provide that a performance target could be achieved after the requisite service period. Under ASU 2014-12, a performance target that affects vesting and could be achieved after completion of the service period should be treated as a performance condition and, as a result, should not be included in the estimation of the grant-date fair value. Rather, an entity should recognize compensation cost for the award when it becomes probable that the performance target will be achieved. Historically, we accounted for share-based awards with these types of performance targets consistent with the clarification in ASU 2014-12. Our adoption of this standard had no material impact on our financial position, results of operations or liquidity.

DISCONTINUED OPERATIONS REPORTING  As of and for the interim period ended March 31, 2015, we adopted ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changed the definition of and expanded the disclosure requirements for discontinued operations. Under the new definition, discontinued operations reporting is limited to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The expanded disclosures for discontinued operations are meant to provide users of financial statements with more information about the assets, liabilities, revenues, and expenses of discontinued operations. Additionally, this ASU requires an entity to disclose the pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. Our adoption of this standard had no material impact on our financial position, results of operations or liquidity.

ACCOUNTING STANDARDS PENDING ADOPTION

CLASSIFICATION AND MEASUREMENT OF FINANCIAL INSTRUMENTS  In January 2016 the Financial Accounting Standards Board (FASB) issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of current guidance on the recognition, measurement and disclosure of financial instruments. Among other changes, this ASU requires most equity investments be measured at fair value. Additionally, the ASU eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value for instruments not recognized at fair value in our financial statements. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We will adopt this standard as of and for the interim period ending March 31, 2018. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

MEASUREMENT-PERIOD ADJUSTMENTS  In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which requires an acquirer to recognize measurement-period adjustments to provisional amounts in the reporting period in which the adjustments are determined. Previously, measurement-period adjustments were retrospectively applied. As an alternative to restating the prior periods for the measurement-period adjustments, the ASU requires acquirers to present separately on the face of the earnings statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date. This ASU is to be applied prospectively to adjustments to provisional amounts that occur after December 15, 2015. Early adoption is permitted. We will adopt this standard as of and for the interim period ending March 31, 2016. While we are still evaluating the impact of ASU 2015-16, we do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

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

NET ASSET VALUE PER SHARE INVESTMENTS  In May 2015, the FASB issued ASU 2015-07, “Disclosures for Investment in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which removes the requirement to categorize investments within the fair value hierarchy when their fair value is measured using the net asset value per share practical expedient. This ASU also removes the requirement to make certain disclosures for investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures would be limited to investments for which the entity has elected to measure the fair value using that practical expedient. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods within those annual reporting periods. This ASU is to be applied retrospectively to all periods presented. Early adoption is permitted. We will adopt this standard as of and for the interim period ending March 31, 2016. While we are still evaluating the impact of ASU 2015-07, it will not impact our consolidated financial statements as it only affects disclosure. Thus, it will impact the notes to our consolidated financial statements, specifically, our pension plan fair value disclosures.

CONSOLIDATION  In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis,” which amends existing consolidation guidance for reporting entities that are required to evaluate whether they should consolidate certain legal entities. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We will adopt this standard as of and for the interim period ending March 31, 2016. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

GOING CONCERN  In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern,” which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern (meet its obligations as they become due) within one year after the date that the financial statements are issued. If conditions or events raise substantial doubt about the entity’s ability to continue as a going concern, certain disclosures are required. This ASU is effective for annual reporting periods ending after December 15, 2016, and interim reporting periods thereafter. Early adoption is permitted. We will adopt this standard as of and for the annual period ending December 31, 2016. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

REVENUE RECOGNITION  In May 2014, the FASB issued ASU 2014-09, “Revenue From Contracts With Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This ASU provides a more robust framework for addressing revenue issues and expands required revenue recognition disclosures. This ASU (as later amended) is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently evaluating the impact of adoption of this ASU on our consolidated financial statements.

 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Depreciation, Depletion, Accretion and Amortization

 

 

 

 

 

 

 

 

Depreciation

$      228,866 

 

 

$     239,611 

 

 

$     271,180 

 

Depletion

18,177 

 

 

16,741 

 

 

13,028 

 

Accretion

11,474 

 

 

11,601 

 

 

10,685 

 

Amortization of leaseholds

688 

 

 

578 

 

 

483 

 

Amortization of intangibles

15,618 

 

 

10,966 

 

 

11,732 

 

Total

$      274,823 

 

 

$     279,497 

 

 

$     307,108 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

in thousands

2015 

 

 

2014 

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

  Mutual funds

$       11,472 

 

 

$     15,532 

 

  Equities

8,992 

 

 

11,248 

 

Total

$       20,464 

 

 

$     26,780 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2

in thousands

2015 

 

 

2014 

 

Fair Value Recurring

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

  Common/collective trust funds

$        2,124 

 

 

$       1,415 

 

Total

$        2,124 

 

 

$       1,415 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ending December 31, 2015

 

Year ending December 31, 2014

 

 

 

 

 

 

Impairment

 

 

 

 

 

Impairment

 

in thousands

Level 2

 

 

Charges

 

 

Level 2

 

 

Charges

 

Fair Value Nonrecurring

 

 

 

 

 

 

 

 

 

 

 

Property, plant & equipment

$              0 

 

 

$       2,176 

 

 

$       2,172 

 

 

$       3,095 

 

Other intangible assets, net

 

 

2,858 

 

 

 

 

 

Other assets

 

 

156 

 

 

 

 

 

Totals

$              0 

 

 

$       5,190 

 

 

$       2,172 

 

 

$       3,095 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Deferred Revenue

 

 

 

 

 

 

 

 

Balance at beginning of year

$      219,968 

 

 

$     224,743 

 

 

$       73,583 

 

 Cash received and revenue deferred

 

 

187 

 

 

153,156 

 

 Amortization of deferred revenue

(5,908)

 

 

(4,962)

 

 

(1,996)

 

Balance at end of year

$      214,060 

 

 

$     219,968 

 

 

$     224,743 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrecognized

 

 

Expected

 

 

 

Compensation

 

 

Weighted-average

 

dollars in thousands

Expense

 

 

Recognition (Years)

 

Share-based Compensation

 

 

 

 

 

SOSARs 1

$          4,882 

 

 

1.6 

 

Performance and restricted shares

22,271 

 

 

2.5 

 

Total/weighted-average

$        27,153 

 

 

2.3 

 

 

 

 

1

Stock-Only Stock Appreciation Rights (SOSARs)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Employee Share-based Compensation Awards

 

 

 

 

 

 

 

 

Pretax compensation expense

$        16,362 

 

 

$       22,217 

 

 

$       20,187 

 

Income tax benefits

6,347 

 

 

8,571 

 

 

7,833 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

2015 

 

 

2014 

 

Self-insurance Program

 

 

 

 

 

Self-insured liabilities (undiscounted)

$        44,618 

 

 

$       43,731 

 

Insured liabilities (undiscounted)

16,787 

 

 

17,758 

 

Discount rate

1.44% 

 

 

1.29% 

 

Amounts Recognized in Consolidated

 

 

 

 

 

 Balance Sheets

 

 

 

 

 

Investments and long-term receivables

$        15,810 

 

 

$       16,884 

 

Other accrued liabilities

(14,198)

 

 

(13,131)

 

Other noncurrent liabilities

(44,102)

 

 

(45,569)

 

Net liabilities (discounted)

$       (42,490)

 

 

$     (41,816)

 

 

 

 

 

 

 

 

in thousands

 

 

Estimated Payments under Self-insurance Program

 

 

2016

$        19,001 

 

2017

10,900 

 

2018

7,743 

 

2019

5,063 

 

2020

3,609 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Weighted-average common shares outstanding

133,210 

 

 

131,461 

 

 

130,272 

 

Dilutive effect of

 

 

 

 

 

 

 

 

  Stock options/SOSARs

1,027 

 

 

656 

 

 

461 

 

  Other stock compensation plans

856 

 

 

874 

 

 

734 

 

Weighted-average common shares outstanding,

 

 

 

 

 

 

 

 

 assuming dilution

135,093 

 

 

132,991 

 

 

131,467 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Antidilutive common stock equivalents

544 

 

 

2,352 

 

 

2,895 

 

 

DISCONTINUED OPERATIONS (Tables)
Results from Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Discontinued Operations

 

 

 

 

 

 

 

 

Pretax loss

$     (19,326)

 

 

$     (3,683)

 

 

$     (5,744)

 

Gain on disposal, net of transaction bonus

 

 

 

 

11,728 

 

Income tax (provision) benefit

7,589 

 

 

1,460 

 

 

(2,358)

 

Earnings (loss) on discontinued operations,

 

 

 

 

 

 

 

 

 net of income taxes

$     (11,737)

 

 

$     (2,223)

 

 

$       3,626 

 

 

INVENTORIES (Tables)
Inventories

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Inventories

 

 

 

 

 

Finished products  1

$      297,925 

 

 

$     275,172 

 

Raw materials

21,765 

 

 

19,741 

 

Products in process

1,008 

 

 

1,250 

 

Operating supplies and other

26,375 

 

 

25,641 

 

Total

$      347,073 

 

 

$     321,804 

 

 

 

 

1

Includes inventories encumbered by the purchaser's percentage of volumetric production payments (see Note 1, Deferred Revenue), as follows: December 31, 2015 — $4,452 thousand and December 31, 2014 — $4,792 thousand.

 

PROPERTY, PLANT & EQUIPMENT (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Property, Plant & Equipment

 

 

 

 

 

Land and land improvements 1

$    2,305,801 

 

 

$  2,273,874 

 

Buildings

124,950 

 

 

126,833 

 

Machinery and equipment

4,124,808 

 

 

3,952,423 

 

Leaseholds

14,143 

 

 

13,451 

 

Deferred asset retirement costs

166,252 

 

 

163,644 

 

Construction in progress

155,333 

 

 

78,617 

 

Total, gross

$    6,891,287 

 

 

$  6,608,842 

 

Less allowances for depreciation, depletion

 

 

 

 

 

 and amortization

3,734,997 

 

 

3,537,212 

 

Total, net

$    3,156,290 

 

 

$  3,071,630 

 

 

 

 

1

Includes depletable land, as follows: December 31, 2015 — $1,296,211 thousand and December 31, 2014 — $1,287,225 thousand.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Capitalized interest cost

$          2,930 

 

 

$        2,092 

 

 

$        1,089 

 

Total interest cost incurred before recognition

 

 

 

 

 

 

 

 

 of the capitalized amount

223,518 

 

 

245,459 

 

 

203,677 

 

 

DERIVATIVE INSTRUMENTS (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Location on Statement

 

2015 

 

 

2014 

 

 

2013 

 

Cash Flow Hedges

 

 

 

 

 

 

 

 

 

 

Loss reclassified from AOCI

 

 

 

 

 

 

 

 

 

 

 (effective portion)

Interest expense

 

$       (9,759)

 

 

$       (7,988)

 

 

$       (5,077)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Deferred Gain on Settlement

 

 

 

 

 

 

 

 

Amortized to earnings as a reduction to interest expense

$        3,036 

 

 

$      10,674 

 

 

$        4,334 

 

 

DEBT (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective

 

 

 

 

 

 

 

in thousands

Interest Rates

 

2015 

 

 

2014 

 

 

Short-term Debt

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

n/a

 

$                  0 

 

 

$                  0 

 

 

Total short-term debt

 

 

$                  0 

 

 

$                  0 

 

 

Long-term Debt

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

1.75% 

 

$       235,000 

 

 

$                  0 

 

 

10.125% notes due 2015

n/a

 

 

 

150,000 

 

 

6.50% notes due 2016

n/a

 

 

 

125,001 

 

 

6.40% notes due 2017

n/a

 

 

 

218,633 

 

 

7.00% notes due 2018

7.87% 

 

272,512 

 

 

400,000 

 

 

10.375% notes due 2018

10.63% 

 

250,000 

 

 

250,000 

 

 

7.50% notes due 2021

7.75% 

 

600,000 

 

 

600,000 

 

 

8.85% notes due 2021

8.88% 

 

6,000 

 

 

6,000 

 

 

Industrial revenue bond due 2022

n/a

 

 

 

14,000 

 

 

4.50% notes due 2025

4.65% 

 

400,000 

 

 

 

 

7.15% notes due 2037

8.05% 

 

240,188 

 

 

240,188 

 

 

Other notes 2

6.25% 

 

498 

 

 

637 

 

 

Unamortized discounts and debt issuance costs

n/a

 

(23,734)

 

 

(22,716)

 

 

Unamortized deferred interest rate swap gain 4

n/a

 

 

 

3,036 

 

 

Total long-term debt including current maturities 5

 

 

$    1,980,464 

 

 

$    1,984,779 

 

 

Less current maturities

 

 

130 

 

 

150,137 

 

 

Total long-term debt

 

 

$    1,980,334 

 

 

$    1,834,642 

 

 

Total debt 6

 

 

$    1,980,464 

 

 

$    1,984,779 

 

 

Estimated fair value of long-term debt

 

 

$    2,204,816 

 

 

$    2,092,673 

 

 

 

 

 

 

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 otherwise.

2

Non-publicly traded debt.

3

The effective interest rate is the spread over LIBOR as of the balance sheet dates.

4

The unamortized deferred gain was realized upon the August 2011 settlement of interest rate swaps as discussed in Note 5.

5

The debt balances as of December 31, 2014 have been adjusted to reflect our early adoption of ASU 2015-03 and related election as discussed in Note 1 under the caption New Accounting Standards.

6

Face value of our debt is equal to total debt plus unamortized discounts and debt issuance costs, and unamortized deferred interest rate swap gain, as follows: December 31, 2015$2,004,198 thousand and December 31, 2014$2,004,459 thousand.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Total

 

 

Principal

 

 

Interest

 

Debt Payments (excluding the line of credit)

 

 

 

 

 

 

 

 

2016

$      125,878 

 

 

$           130 

 

 

$    125,748 

 

2017

125,878 

 

 

138 

 

 

125,740 

 

2018

638,728 

 

 

522,534 

 

 

116,194 

 

2019

80,740 

 

 

23 

 

 

80,717 

 

2020

80,740 

 

 

25 

 

 

80,715 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

 

 

Standby Letters of Credit

 

 

Risk management insurance

$       33,111 

 

Reclamation/restoration requirements

5,753 

 

Total

$       38,864 

 

 

OPERATING LEASES (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Operating Leases

 

 

 

 

 

 

 

 

Minimum rentals

$        49,461 

 

 

$       42,887 

 

 

$       40,151 

 

Contingent rentals (based principally on usage)

60,380 

 

 

56,717 

 

 

44,111 

 

Total

$      109,841 

 

 

$       99,604 

 

 

$       84,262 

 

 

 

 

 

 

 

 

in thousands

 

 

Future Minimum Operating Lease Payments

 

 

2016

$        30,945 

 

2017

29,712 

 

2018

26,543 

 

2019

22,455 

 

2020

20,508 

 

Thereafter

128,657 

 

Total

$      258,820 

 

 

ACCRUED ENVIRONMENTAL REMEDIATION COSTS (Tables)
Accrued Environmental Remediation Costs

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Accrued Environmental Remediation Costs

 

 

 

 

 

Continuing operations

$          6,876 

 

 

$        4,919 

 

Retained from former Chemicals business

10,988 

 

 

4,129 

 

Total

$        17,864 

 

 

$        9,048 

 

 

INCOME TAXES (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Earnings (Loss) from Continuing

 

 

 

 

 

 

 

 

 Operations before Income Taxes

 

 

 

 

 

 

 

 

Domestic

$      293,547 

 

 

$     264,473 

 

 

$     (34,239)

 

Foreign

34,310 

 

 

34,365 

 

 

30,536 

 

Total

$      327,857 

 

 

$     298,838 

 

 

$        (3,703)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Provision for (Benefit from) Income Taxes

 

 

 

 

 

 

 

 

 from Continuing Operations

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

Federal

$        67,521 

 

 

$       47,882 

 

 

$        (3,691)

 

State and local

14,035 

 

 

18,983 

 

 

7,941 

 

Foreign

7,784 

 

 

7,174 

 

 

5,423 

 

Total

$        89,340 

 

 

$       74,039 

 

 

$         9,673 

 

Deferred

 

 

 

 

 

 

 

 

Federal

$        11,192 

 

 

$       13,556 

 

 

$     (20,581)

 

State and local

(4,888)

 

 

4,120 

 

 

(13,542)

 

Foreign

(701)

 

 

(23)

 

 

(9)

 

Total

$          5,603 

 

 

$       17,653 

 

 

$     (34,132)

 

Total provision (benefit)

$        94,943 

 

 

$       91,692 

 

 

$     (24,459)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

 

2015 

 

 

 

2014 

 

 

 

2013 

 

Income tax provision (benefit) at the

 

 

 

 

 

 

 

 

 

 

 

 federal statutory tax rate of 35%

$    114,750 

35.0% 

 

 

$    104,594 

35.0% 

 

 

$      (1,296)

35.0% 

 

Provision for (Benefit from)

 

 

 

 

 

 

 

 

 

 

 

 Income Tax Differences

 

 

 

 

 

 

 

 

 

 

 

Statutory depletion

(27,702)

-8.4%

 

 

(25,774)

-8.6%

 

 

(20,875) 563.7% 

 

State and local income taxes, net of federal

 

 

 

 

 

 

 

 

 

 

 

 income tax benefit

5,945  1.8% 

 

 

15,017  5.0% 

 

 

(3,641) 98.3% 

 

U.S. production deduction

(5,099)

-1.6%

 

 

0.0% 

 

 

0.0% 

 

Foreign tax credit carryforwards impairment

6,486  2.0% 

 

 

0.0% 

 

 

0.0% 

 

Permanently reinvested foreign earnings

(6,396)

-2.0%

 

 

0.0% 

 

 

0.0% 

 

Other, net

6,959  2.2% 

 

 

(2,145)

-0.7%

 

 

1,353 

-36.5%

 

Total income tax provision (benefit)/

 

 

 

 

 

 

 

 

 

 

 

 Effective tax rate

$      94,943 

29.0% 

 

 

$      91,692 

30.7% 

 

 

$    (24,459)

660.5% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Deferred Tax Assets Related to

 

 

 

 

 

Employee benefits

$        78,999 

 

 

$       97,757 

 

Asset retirement obligations & other reserves

59,507 

 

 

53,670 

 

Deferred compensation

117,298 

 

 

121,900 

 

State net operating losses

61,658 

 

 

59,315 

 

Federal credit carryforwards

34,340 

 

 

40,212 

 

Other

48,856 

 

 

52,241 

 

Total gross deferred tax assets

400,658 

 

 

425,095 

 

Valuation allowance

(59,323)

 

 

(56,867)

 

Total net deferred tax assets

$      341,335 

 

 

$     368,228 

 

Deferred Tax Liabilities Related to

 

 

 

 

 

Property, plant and equipment

$      665,057 

 

 

$     661,697 

 

Goodwill/other intangible assets

324,910 

 

 

329,539 

 

Other

32,464 

 

 

28,403 

 

Total deferred tax liabilities

$   1,022,431 

 

 

$  1,019,639 

 

Net deferred tax liability

$      681,096 

 

 

$     651,411 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Deferred Income Taxes

 

 

 

 

 

Current assets 1

$                0 

 

 

$     (39,726)

 

Noncurrent liabilities

681,096 

 

 

691,137 

 

Net deferred tax liability

$     681,096 

 

 

$     651,411 

 

 

 

 

1

As discussed in Note 1, we early adopted ASU 2015-17 on a prospective basis as of December 31, 2015. Thus, all deferred income taxes as of December 31, 2015 are classified as noncurrent resulting in a $44,464 thousand decrease in current assets with a corresponding decrease in noncurrent liabilities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Unrecognized tax benefits as of January 1

$          7,057 

 

 

$       12,155 

 

 

$       13,550 

 

Increases for tax positions related to

 

 

 

 

 

 

 

 

  Prior years

491 

 

 

229 

 

 

28 

 

  Current year

942 

 

 

528 

 

 

845 

 

Decreases for tax positions related to

 

 

 

 

 

 

 

 

  Prior years

 

 

(53)

 

 

(86)

 

Settlements with taxing authorities

 

 

 

 

(136)

 

Expiration of applicable statute of limitations

(43)

 

 

(5,802)

 

 

(2,046)

 

Unrecognized tax benefits as of December 31

$          8,447 

 

 

$         7,057 

 

 

$       12,155 

 

 

BENEFIT PLANS (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Change in Benefit Obligation

 

 

 

 

 

Projected benefit obligation at beginning of year

$    1,083,222 

 

 

$     911,700 

 

Service cost

4,851 

 

 

4,157 

 

Interest cost

44,065 

 

 

44,392 

 

Actuarial (gain) loss

(63,725)

 

 

167,041 

 

Benefits paid

(79,960)

 

 

(44,068)

 

Projected benefit obligation at end of year

$       988,453 

 

 

$  1,083,222 

 

Change in Fair Value of Plan Assets

 

 

 

 

 

Fair value of assets at beginning of year

$       816,972 

 

 

$     756,624 

 

Actual return on plan assets

(5,373)

 

 

98,928 

 

Employer contribution

14,047 

 

 

5,488 

 

Benefits paid

(79,960)

 

 

(44,068)

 

Fair value of assets at end of year

$       745,686 

 

 

$     816,972 

 

Funded status

(242,767)

 

 

(266,250)

 

Net amount recognized

$      (242,767)

 

 

$   (266,250)

 

Amounts Recognized in the Consolidated

 

 

 

 

 

 Balance Sheets

 

 

 

 

 

Noncurrent assets

$                  0 

 

 

$                0 

 

Current liabilities

(9,106)

 

 

(13,719)

 

Noncurrent liabilities

(233,661)

 

 

(252,531)

 

Net amount recognized

$      (242,767)

 

 

$   (266,250)

 

Amounts Recognized in Accumulated

 

 

 

 

 

 Other Comprehensive Income

 

 

 

 

 

Net actuarial loss

$       222,580 

 

 

$     249,867 

 

Prior service credit

(404)

 

 

(356)

 

Total amount recognized

$       222,176 

 

 

$     249,511 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

2015 

 

 

2014 

 

 

2013 

 

Components of Net Periodic Pension

 

 

 

 

 

 

 

 

 Benefit Cost

 

 

 

 

 

 

 

 

Service cost

$          4,851 

 

 

$        4,157 

 

 

$      21,904 

 

Interest cost

44,065 

 

 

44,392 

 

 

40,995 

 

Expected return on plan assets

(54,736)

 

 

(50,802)

 

 

(47,425)

 

Settlement charge

2,031 

 

 

 

 

 

Curtailment loss

 

 

 

 

855 

 

Amortization of prior service cost

48 

 

 

188 

 

 

339 

 

Amortization of actuarial loss

21,641 

 

 

11,221 

 

 

20,429 

 

Net periodic pension benefit cost

$        17,900 

 

 

$        9,156 

 

 

$      37,097 

 

Changes in Plan Assets and Benefit

 

 

 

 

 

 

 

 

 Obligations Recognized in Other

 

 

 

 

 

 

 

 

 Comprehensive Income

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

$         (3,615)

 

 

$    118,915 

 

 

$  (163,205)

 

Prior service cost (credit)

 

 

 

 

(583)

 

Reclassification of actuarial loss to net

 

 

 

 

 

 

 

 

 periodic pension benefit cost

(23,672)

 

 

(11,221)

 

 

(20,429)

 

Reclassification of prior service cost to net

 

 

 

 

 

 

 

 

 periodic pension benefit cost

(48)

 

 

(188)

 

 

(1,194)

 

Amount recognized in other comprehensive

 

 

 

 

 

 

 

 

 income

$       (27,335)

 

 

$    107,506 

 

 

$  (185,411)

 

Amount recognized in net periodic pension

 

 

 

 

 

 

 

 

 benefit cost and other comprehensive

 

 

 

 

 

 

 

 

 income

$         (9,435)

 

 

$    116,662 

 

 

$  (148,314)

 

Assumptions

 

 

 

 

 

 

 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

 determine net periodic benefit cost for

 

 

 

 

 

 

 

 

 years ended December 31

 

 

 

 

 

 

 

 

Discount rate

4.14% 

 

 

4.91% 

 

 

4.33% 

 

Expected return on plan assets

7.50% 

 

 

7.50% 

 

 

7.50% 

 

Rate of compensation increase

 

 

 

 

 

 

 

 

 (for salary-related plans)

3.70% 

 

 

3.50% 

 

 

3.50% 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

 determine benefit obligation at

 

 

 

 

 

 

 

 

 December 31

 

 

 

 

 

 

 

 

Discount rate

4.54% 

 

 

4.14% 

 

 

4.91% 

 

Rate of compensation increase

 

 

 

 

 

 

 

 

 (for salary-related plans)

3.50% 

 

 

3.70% 

 

 

3.50% 

 

 

Fair Value Measurements at December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Level 1 1

 

 

Level 2 1

 

 

Level 3 1

 

 

Total

 

Asset Category

 

 

 

 

 

 

 

 

 

 

 

Debt securities

$                0 

 

 

$     154,745 

 

 

$                0 

 

 

$     154,745 

 

Investment funds

 

 

 

 

 

 

 

 

 

 

 

  Commodity funds

 

 

14,490 

 

 

 

 

14,490 

 

  Equity funds

647 

 

 

463,416 

 

 

 

 

464,063 

 

  Short-term funds

 

 

9,516 

 

 

 

 

9,516 

 

Venture capital and partnerships

 

 

 

 

102,872 

 

 

102,872 

 

Total pension plan assets

$            647 

 

 

$     642,167 

 

 

$     102,872 

 

 

$     745,686 

 

 

 

 

1

See Note 1 under the caption Fair Value Measurements for a description of the fair value hierarchy.

Fair Value Measurements at December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Level 1 1

 

 

Level 2 1

 

 

Level 3 1

 

 

Total

 

Asset Category

 

 

 

 

 

 

 

 

 

 

 

Debt securities

$                0 

 

 

$     164,695 

 

 

$                0 

 

 

$     164,695 

 

Investment funds

 

 

 

 

 

 

 

 

 

 

 

  Commodity funds

 

 

19,480 

 

 

 

 

19,480 

 

  Equity funds

457 

 

 

506,912 

 

 

 

 

507,369 

 

  Short-term funds

 

 

15,495 

 

 

 

 

15,495 

 

Venture capital and partnerships

 

 

 

 

109,933 

 

 

109,933 

 

Total pension plan assets

$            457 

 

 

$     706,582 

 

 

$     109,933 

 

 

$     816,972 

 

 

 

 

1

See Note 1 under the caption Fair Value Measurements for a description of the fair value hierarchy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Venture

 

 

 

 

 

Capital and

 

 

in thousands

 

 

Partnerships

 

 

Balance at December 31, 2013

 

 

$     88,482 

 

 

Total gains (losses) for 2014 1

 

 

34,071 

 

 

Purchases, sales and settlements, net

 

 

(12,940)

 

 

Transfers into (out of) Level 3

 

 

320 

 

 

Balance at December 31, 2014

 

 

$   109,933 

 

 

Total gains (losses) for 2015 1

 

 

5,186 

 

 

Purchases, sales and settlements, net

 

 

(12,247)

 

 

Transfers into (out of) Level 3

 

 

 

 

Balance at December 31, 2015

 

 

$   102,872 

 

 

 

 

 

 

1

The total gains (losses) for 2015 and 2014 include $47 thousand and $29,329 thousand, respectively, in unrealized gains related to assets still held as of their respective year ends.

 

 

 

 

 

 

 

 

 

 

 

in thousands

Pension

 

Employer Contributions

 

 

2013

$          4,855 

 

2014

5,488 

 

2015

14,047 

 

2016 (estimated)

9,107 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Pension

 

Estimated Future Benefit Payments

 

 

2016

$        51,286 

 

2017

52,434 

 

2018

55,527 

 

2019

56,835 

 

2020

58,161 

 

2021-2025

305,043 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Change in Benefit Obligation

 

 

 

 

 

Projected benefit obligation at beginning of year

$        85,336 

 

 

$       92,888 

 

Service cost

1,894 

 

 

2,146 

 

Interest cost

2,485 

 

 

3,297 

 

Liability reduction from curtailment

 

 

(2,639)

 

Actuarial gain

(35,195)

 

 

(2,617)

 

Benefits paid

(5,915)

 

 

(7,739)

 

Projected benefit obligation at end of year

$        48,605 

 

 

$       85,336 

 

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

$       (48,605)

 

 

$     (85,336)

 

Net amount recognized

$       (48,605)

 

 

$     (85,336)

 

Amounts Recognized in the Consolidated

 

 

 

 

 

 Balance Sheets

 

 

 

 

 

Current liabilities

$         (6,287)

 

 

$        (8,964)

 

Noncurrent liabilities

(42,318)

 

 

(76,372)

 

Net amount recognized

$       (48,605)

 

 

$     (85,336)

 

Amounts Recognized in Accumulated

 

 

 

 

 

 Other Comprehensive Income

 

 

 

 

 

Net actuarial (gain) loss

$       (24,325)

 

 

$       10,921 

 

Prior service credit

(23,928)

 

 

(28,160)

 

Total amount recognized

$       (48,253)

 

 

$     (17,239)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

2015 

 

 

2014 

 

 

2013 

 

Components of Net Periodic Postretirement

 

 

 

 

 

 

 

 

 Benefit Cost

 

 

 

 

 

 

 

 

Service cost

$          1,894 

 

 

$        2,146 

 

 

$        2,830 

 

Interest cost

2,485 

 

 

3,297 

 

 

3,260 

 

Curtailment gain

 

 

(3,832)

 

 

 

Amortization of prior service credit

(4,232)

 

 

(4,327)

 

 

(4,863)

 

Amortization of actuarial loss

37 

 

 

227 

 

 

1,372 

 

Net periodic postretirement benefit cost (credit)

$             184 

 

 

$       (2,489)

 

 

$        2,599 

 

Changes in Plan Assets and Benefit

 

 

 

 

 

 

 

 

 Obligations Recognized in Other

 

 

 

 

 

 

 

 

 Comprehensive Income

 

 

 

 

 

 

 

 

Net actuarial (gain) loss

$       (35,209)

 

 

$       (5,256)

 

 

$    (20,444)

 

Reclassification of actuarial loss to net

 

 

 

 

 

 

 

 

 periodic postretirement benefit cost

(37)

 

 

(227)

 

 

(1,372)

 

Reclassification of prior service credit to net

 

 

 

 

 

 

 

 

 periodic postretirement benefit cost

4,232 

 

 

8,159 

 

 

4,863 

 

Amount recognized in other comprehensive

 

 

 

 

 

 

 

 

 income

$       (31,014)

 

 

$        2,676 

 

 

$    (16,953)

 

Amount recognized in net periodic

 

 

 

 

 

 

 

 

 postretirement benefit cost and other

 

 

 

 

 

 

 

 

 comprehensive income

$       (30,830)

 

 

$           187 

 

 

$    (14,354)

 

Assumptions

 

 

 

 

 

 

 

 

Assumed Healthcare Cost Trend Rates

 

 

 

 

 

 

 

 

 at December 31

 

 

 

 

 

 

 

 

Healthcare cost trend rate assumed

 

 

 

 

 

 

 

 

 for next year

n/a

 

 

7.50% 

 

 

7.50% 

 

Rate to which the cost trend rate gradually

 

 

 

 

 

 

 

 

 declines

n/a

 

 

5.00% 

 

 

5.00% 

 

Year that the rate reaches the rate it is

 

 

 

 

 

 

 

 

 assumed to maintain

n/a

 

 

2025 

 

 

2019 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

 determine net periodic benefit cost for

 

 

 

 

 

 

 

 

 years ended December 31

 

 

 

 

 

 

 

 

Discount rate

3.50% 

 

 

4.10% 

 

 

3.30% 

 

Weighted-average assumptions used to

 

 

 

 

 

 

 

 

 determine benefit obligation at

 

 

 

 

 

 

 

 

 December 31

 

 

 

 

 

 

 

 

Discount rate

3.69% 

 

 

3.50% 

 

 

4.10% 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Postretirement

 

Employer Contributions

 

 

2013

$          6,258 

 

2014

7,739 

 

2015

5,915 

 

2016 (estimated)

6,287 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Postretirement

 

Estimated Future Benefit Payments

 

 

2016

$          6,287 

 

2017

5,856 

 

2018

5,623 

 

2019

5,415 

 

2020

5,152 

 

2021–2025

19,229 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Postretirement

 

Participants Contributions

 

 

2013

$          2,022 

 

2014

1,873 

 

2015

2,031 

 

 

INCENTIVE PLANS (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target

 

 

Weighted-average

 

 

 

 

Number

 

 

Grant-date

 

 

 

 

of Shares

 

 

Fair Value

 

Performance Shares

 

 

 

 

 

Nonvested at January 1, 2015

1,019,416 

 

 

$             53.16 

 

Granted

231,730 

 

 

74.85 

 

Vested

(441,483)

 

 

46.22 

 

Canceled/forfeited

(3,324)

 

 

67.28 

 

Nonvested at December 31, 2015

806,339 

 

 

$             63.13 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Aggregate value of distributed

 

 

 

 

 

 

 

 

 performance shares

$       26,258 

 

 

$                0 

 

 

$         9,286 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015 

 

 

2014 

 

 

2013 

 

 

SOSARs

 

 

 

 

 

 

 

 

 

Fair value

$        25.17 

 

 

$        21.94 

 

 

$        16.96 

 

 

Risk-free interest rate

1.85% 

 

 

2.40% 

 

 

1.40% 

 

 

Dividend yield

1.70% 

 

 

1.64% 

 

 

1.72% 

 

 

Volatility

33.00% 

 

 

33.00% 

 

 

33.00% 

 

 

Expected term

8.00 years

 

 

8.00 years

 

 

8.00 years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average

 

 

 

 

 

 

 

 

 

 

 

 

 

Remaining

 

 

Aggregate

 

 

 

 

Number

 

 

Weighted-average

 

 

Contractual

 

 

Intrinsic Value

 

 

 

 

of Shares

 

 

Exercise Price

 

 

Life (Years)

 

 

(in thousands)

 

Stock Options/SOSARs

 

 

 

 

 

 

 

 

 

 

 

Outstanding at January 1, 2015

4,786,305 

 

 

$             59.65 

 

 

 

 

 

 

 

Granted

161,310 

 

 

79.41 

 

 

 

 

 

 

 

Exercised

(1,890,028)

 

 

63.48 

 

 

 

 

 

 

 

Forfeited or expired

(4,838)

 

 

64.48 

 

 

 

 

 

 

 

Outstanding at December 31, 2015

3,052,749 

 

 

$             58.32 

 

 

4.36 

 

 

$         118,401 

 

Vested and expected to vest

3,038,898 

 

 

$             58.27 

 

 

4.35 

 

 

$         118,043 

 

Exercisable at December 31, 2015

2,602,447 

 

 

$             56.65 

 

 

3.70 

 

 

$         106,100 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Aggregate intrinsic value of options/

 

 

 

 

 

 

 

 

 SOSARs exercised

$       43,620 

 

 

$         7,372 

 

 

$         4,563 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Stock Options/SOSARs

 

 

 

 

 

 

 

 

Cash and stock consideration received

 

 

 

 

 

 

 

 

 from exercises

$       72,884 

 

 

$       23,199 

 

 

$       17,156 

 

Tax benefit from exercises

16,920 

 

 

2,844 

 

 

1,770 

 

Compensation cost

2,221 

 

 

4,650 

 

 

3,936 

 

 

COMMITMENTS AND CONTINGENCIES (Tables)

 

 

 

 

 

 

 

Unconditional

 

 

Purchase

 

in thousands

Obligations

 

Property, Plant & Equipment

 

 

2016

$        67,560 

 

Thereafter

79,304 

 

Total

$      146,864 

 

Noncapital (primarily transportation and electricity contracts)

 

 

2016

$        14,361 

 

2017–2018

17,564 

 

2019–2020

11,677 

 

Thereafter

5,000 

 

Total

$        48,602 

 

 

 

 

 

 

 

 

 

Mineral

 

in thousands

Leases

 

Minimum Royalties

 

 

2016

$        21,479 

 

2017–2018

37,710 

 

2019–2020

25,380 

 

Thereafter

132,811 

 

Total

$      217,380 

 

 

OTHER COMPREHENSIVE INCOME (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

AOCI

 

 

 

 

 

 

 

 

Cash flow hedges

$       (14,494)

 

 

$     (20,322)

 

 

$     (25,178)

 

Pension and postretirement plans

(105,575)

 

 

(141,392)

 

 

(74,453)

 

Total

$     (120,069)

 

 

$   (161,714)

 

 

$     (99,631)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension and

 

 

 

 

 

Cash Flow

 

 

Postretirement

 

 

 

 

in thousands

Hedges

 

 

Benefit Plans

 

 

Total

 

AOCI

 

 

 

 

 

 

 

 

Balance as of December 31, 2012

$       (28,170)

 

 

$   (197,347)

 

 

$   (225,517)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 before reclassifications

 

 

111,883 

 

 

111,883 

 

Amounts reclassified from AOCI

2,992 

 

 

11,011 

 

 

14,003 

 

Net current year OCI changes

2,992 

 

 

122,894 

 

 

125,886 

 

Balance as of December 31, 2013

$       (25,178)

 

 

$     (74,453)

 

 

$     (99,631)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 before reclassifications

 

 

(69,051)

 

 

(69,051)

 

Amounts reclassified from AOCI

4,856 

 

 

2,112 

 

 

6,968 

 

Net current year OCI changes

4,856 

 

 

(66,939)

 

 

(62,083)

 

Balance as of December 31, 2014

$       (20,322)

 

 

$   (141,392)

 

 

$   (161,714)

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 before reclassifications

 

 

23,832 

 

 

23,832 

 

Amounts reclassified from AOCI

5,828 

 

 

11,985 

 

 

17,813 

 

Net current year OCI changes

5,828 

 

 

35,817 

 

 

41,645 

 

Balance as of December 31, 2015

$       (14,494)

 

 

$   (105,575)

 

 

$   (120,069)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Reclassification Adjustment for Cash Flow

 

 

 

 

 

 

 

 

 Hedge Losses

 

 

 

 

 

 

 

 

Interest expense

$          9,759 

 

 

$        7,988 

 

 

$        5,077 

 

(Benefit from) provision for income taxes

(3,931)

 

 

(3,132)

 

 

(2,085)

 

Total 1

$          5,828 

 

 

$        4,856 

 

 

$        2,992 

 

Amortization of Pension and Postretirement Plan

 

 

 

 

 

 

 

 

 Actuarial Loss and Prior Service Cost

 

 

 

 

 

 

 

 

Cost of revenues

$        15,916 

 

 

$        2,789 

 

 

$      14,516 

 

Selling, administrative and general expenses

3,608 

 

 

688 

 

 

3,616 

 

(Benefit from) provision for income taxes

(7,539)

 

 

(1,365)

 

 

(7,121)

 

Total 2

$        11,985 

 

 

$        2,112 

 

 

$      11,011 

 

Total reclassifications from AOCI to earnings

$        17,813 

 

 

$        6,968 

 

 

$      14,003 

 

 

 

 

1

Totals for 2015 and 2014 include the acceleration of a proportional amount of deferred losses on interest rate derivatives (see Note 5) referable to debt purchases (see Note 6).

2

Total for 2015 includes a one-time settlement loss resulting from a lump sum payment to a former employee (see Note 10). Total for 2014 includes a one-time curtailment gain (see Note 10) resulting from the sale of our cement and concrete businesses in the Florida area (see Note 19).

 

SEGMENT REPORTING (Tables)
Segment Financial Disclosure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Total Revenues

 

 

 

 

 

 

 

 

Aggregates 1

$  2,777,758 

 

 

$  2,346,411 

 

 

$  2,025,026 

 

Asphalt Mix 2

530,692 

 

 

445,538 

 

 

407,657 

 

Concrete 2, 3

299,252 

 

 

375,806 

 

 

471,748 

 

Calcium 4

8,596 

 

 

25,032 

 

 

99,004 

 

 Segment sales

$  3,616,298 

 

 

$  3,192,787 

 

 

$  3,003,435 

 

Aggregates intersegment sales

(194,117)

 

 

(189,393)

 

 

(185,385)

 

Calcium intersegment sales

 

 

(9,225)

 

 

(47,341)

 

Total revenues

$  3,422,181 

 

 

$  2,994,169 

 

 

$  2,770,709 

 

Gross Profit

 

 

 

 

 

 

 

 

Aggregates

$     755,666 

 

 

$     544,070 

 

 

$     413,301 

 

Asphalt Mix 2

78,225 

 

 

38,080 

 

 

32,704 

 

Concrete 2, 3

20,152 

 

 

2,233 

 

 

(24,774)

 

Calcium 4

3,490 

 

 

3,199 

 

 

5,649 

 

Total

$     857,533 

 

 

$     587,582 

 

 

$     426,880 

 

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

 

 

 

 

 

 

 

 

Aggregates

$     228,466 

 

 

$     227,042 

 

 

$     224,808 

 

Asphalt Mix 2

16,378 

 

 

10,719 

 

 

8,697 

 

Concrete 2, 3

11,374 

 

 

19,892 

 

 

32,996 

 

Calcium 4

679 

 

 

1,554 

 

 

18,093 

 

Other

17,926 

 

 

20,290 

 

 

22,514 

 

Total

$     274,823 

 

 

$     279,497 

 

 

$     307,108 

 

Capital Expenditures 5

 

 

 

 

 

 

 

 

Aggregates

$     269,014 

 

 

$     180,026 

 

 

$     253,000 

 

Asphalt Mix 2

8,111 

 

 

20,796 

 

 

17,089 

 

Concrete 2, 3

19,053 

 

 

19,542 

 

 

13,054 

 

Calcium 4

 

 

201 

 

 

198 

 

Corporate

7,846 

 

 

2,532 

 

 

1,277 

 

Total

$     304,024 

 

 

$     223,097 

 

 

$     284,618 

 

Identifiable Assets 6

 

 

 

 

 

 

 

 

Aggregates

$  7,540,273 

 

 

$  7,311,336 

 

 

$  7,006,724 

 

Asphalt Mix 2

251,716 

 

 

264,172 

 

 

195,046 

 

Concrete 2, 3

198,193 

 

 

227,000 

 

 

370,103 

 

Calcium 4

5,509 

 

 

5,818 

 

 

413,296 

 

Total identifiable assets

7,995,691 

 

 

7,808,326 

 

 

7,985,169 

 

General corporate assets

21,881 

 

 

91,498 

 

 

54,207 

 

Cash items

284,060 

 

 

141,273 

 

 

193,738 

 

Total assets

$  8,301,632 

 

 

$  8,041,097 

 

 

$  8,233,114 

 

 

 

 

1

Includes product sales, as well as freight, delivery and transportation revenues, and other revenues related to services.

2

In January 2015, we exchanged our California ready-mixed concrete operations for 13 asphalt mix plants, primarily in Arizona (see Note 19).    

3

In March 2014, we sold our concrete business in the Florida area (see Note 19).

4

Includes cement and calcium products. In March 2014, we sold our cement business (see Note 19).

5

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.

6

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

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

Cash Payments

 

 

 

 

 

 

 

 

Interest (exclusive of amount capitalized)

$      208,288 

 

 

$      241,841 

 

 

$     196,794 

 

Income taxes

53,623 

 

 

79,862 

 

 

30,938 

 

Noncash Investing and Financing Activities

 

 

 

 

 

 

 

 

Accrued liabilities for purchases of property,

 

 

 

 

 

 

 

 

 plant & equipment

$        31,883 

 

 

$        17,120 

 

 

$       18,864 

 

Amounts referable to business acquisitions

 

 

 

 

 

 

 

 

 Liabilities assumed

2,645 

 

 

26,622 

 

 

232 

 

 Fair value of noncash assets and liabilities exchanged

20,000 

 

 

2,414 

 

 

 

 Fair value of equity consideration

 

 

45,185 

 

 

 

 

ASSET RETIREMENT OBLIGATIONS (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

 

2013 

 

ARO Operating Costs

 

 

 

 

 

 

 

 

Accretion

$        11,474 

 

 

$        11,601 

 

 

$       10,685 

 

Depreciation

6,515 

 

 

4,462 

 

 

3,527 

 

Total

$        17,989 

 

 

$        16,063 

 

 

$       14,212 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Asset Retirement Obligations

 

 

 

 

 

Balance at beginning of year

$      226,565 

 

 

$      228,234 

 

 Liabilities incurred

6,235 

 

 

9,130 

 

 Liabilities settled

(18,048)

 

 

(26,547)

 

 Accretion expense

11,474 

 

 

11,601 

 

 Revisions, net

368 

 

 

4,147 

 

Balance at end of year

$      226,594 

 

 

$      226,565 

 

 

GOODWILL AND INTANGIBLE ASSTES (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Aggregates

 

 

Asphalt Mix

 

 

Concrete

 

 

Calcium

 

 

Total

 

Goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as of December 31, 2012

$   2,995,083 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,086,716 

 

Goodwill of divested businesses 1

(5,195)

 

 

 

 

 

 

 

 

(5,195)

 

Total as of December 31, 2013

$   2,989,888 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,081,521 

 

Goodwill of acquired businesses 1

13,303 

 

 

 

 

 

 

 

 

13,303 

 

Total as of December 31, 2014

$   3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,094,824 

 

Total as of December 31, 2015

$   3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$  3,094,824 

 

 

 

 

1

Refer to Note 19 for additional details.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Gross Carrying Amount

 

 

 

 

 

Contractual rights in place

$      735,935 

 

 

$     719,100 

 

Noncompetition agreements

2,800 

 

 

2,550 

 

Favorable lease agreements

16,677 

 

 

16,677 

 

Permitting, permitting compliance and zoning rights

99,513 

 

 

93,273 

 

Other 1

4,092 

 

 

4,067 

 

Total gross carrying amount

$      859,017 

 

 

$     835,667 

 

Accumulated Amortization

 

 

 

 

 

Contractual rights in place

$       (65,641)

 

 

$     (54,019)

 

Noncompetition agreements

(506)

 

 

(119)

 

Favorable lease agreements

(4,002)

 

 

(3,489)

 

Permitting, permitting compliance and zoning rights

(20,350)

 

 

(18,270)

 

Other 1

(1,939)

 

 

(1,527)

 

Total accumulated amortization

$       (92,438)

 

 

$     (77,424)

 

Total Intangible Assets Subject to Amortization, net

$      766,579 

 

 

$     758,243 

 

Intangible Assets with Indefinite Lives

 

 

 

Total Intangible Assets, net

$      766,579 

 

 

$     758,243 

 

Amortization Expense for the Year

$        15,618 

 

 

$       10,966 

 

 

 

 

1

Includes customer relationships and tradenames and trademarks.

 

 

 

 

 

 

 

in thousands

 

 

Estimated Amortization Expense for Five Subsequent Years

 

2016

$        19,946 

 

2017

20,797 

 

2018

21,702 

 

2019

19,746 

 

2020

20,247 

 

 

ACQUISITIONS AND DIVESTITURES (Tables)

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

Actual Results

 

 

 

 

 

Total revenues

 

 

 

$       67,002 

 

Net earnings

 

 

 

1,938 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

Fair Value of Purchase Consideration

 

 

 

 

 

Cash

 

 

 

$       27,198 

 

Exchanges of real property and businesses

 

 

 

20,000 

 

Total fair value of purchase consideration

 

 

 

$       47,198 

 

Identifiable Assets Acquired and Liabilities Assumed

 

 

 

 

 

Accounts and notes receivable, net

 

 

 

$         2,105 

 

Inventories

 

 

 

3,559 

 

Other current assets

 

 

 

358 

 

Property, plant & equipment, net

 

 

 

26,087 

 

Other intangible assets

 

 

 

 

 

 Contractual rights in place

 

 

 

17,484 

 

 Noncompetition agreement

 

 

 

250 

 

Liabilities assumed

 

 

 

(2,645)

 

Net identifiable assets acquired

 

 

 

$       47,198 

 

Goodwill

 

 

 

$                0 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

2015 

 

 

2014 

 

Held for Sale

 

 

 

 

 

Current assets

$              0 

 

 

$       1,773 

 

Property, plant & equipment, net

 

 

12,764 

 

Other intangible assets, net

 

 

647 

 

Total assets held for sale

$              0 

 

 

$     15,184 

 

Asset retirement obligations

$              0 

 

 

$          520 

 

Total liabilities of assets held for sale

$              0 

 

 

$          520 

 

 

UNAUDITED SUPPLEMENTARY DATA (Tables)
Summary of Selected Quarterly Financial Information (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

Three Months Ended

 

in thousands, except per share data

March 31

 

June 30

 

Sept 30

 

Dec 31

 

Total revenues

$  631,293 

 

$  895,143 

 

$ 1,038,460 

 

$   857,285 

 

Gross profit

77,865 

 

234,449 

 

291,290 

 

253,929 

 

Operating earnings

10,759 

 

153,776 

 

212,206 

 

173,037 

 

Earnings (loss) from continuing operations

(36,667)

 

49,819 

 

126,202 

 

93,560 

 

Net earnings (loss)

(39,678)

 

48,162 

 

123,805 

 

88,888 

 

Basic earnings (loss) per share from continuing operations

$       (0.28)

 

$        0.37 

 

$          0.95 

 

$         0.70 

 

Diluted earnings (loss) per share from continuing operations

$       (0.28)

 

$        0.37 

 

$          0.93 

 

$         0.69 

 

Basic net earnings (loss) per share

$       (0.30)

 

$        0.36 

 

$          0.93 

 

$         0.67 

 

Diluted net earnings (loss) per share

$       (0.30)

 

$        0.36 

 

$          0.91 

 

$         0.65 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

Three Months Ended

 

in thousands, except per share data

March 31

 

June 30

 

Sept 30

 

Dec 31

 

Total revenues

$  574,420 

 

$  791,143 

 

$    873,579 

 

$   755,027 

 

Gross profit

34,092 

 

174,788 

 

209,042 

 

169,660 

 

Operating earnings 1

194,669 

 

103,246 

 

140,331 

 

99,892 

 

Earnings from continuing operations 1

54,505 

 

46,511 

 

67,781 

 

38,349 

 

Net earnings 1

53,995 

 

45,967 

 

66,939 

 

38,022 

 

Basic earnings per share from continuing operations

$        0.42 

 

$        0.35 

 

$          0.51 

 

$         0.29 

 

Diluted earnings per share from continuing operations

$        0.41 

 

$        0.35 

 

$          0.51 

 

$         0.29 

 

Basic net earnings per share

$        0.41 

 

$        0.35 

 

$          0.51 

 

$         0.29 

 

Diluted net earnings per share

$        0.41 

 

$        0.35 

 

$          0.50 

 

$         0.28 

 

 

 

 

1

Includes a $227,910 thousand pretax gain on the sale of our cement and concrete businesses in the Florida area as described in Note 19, primarily recorded in the first quarter.

 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
segment
item
state
factor
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2015
Goodwill [Member]
item
Dec. 31, 2015
Minimum [Member]
Machinery and Equipment [Member]
Dec. 31, 2015
Minimum [Member]
Buildings [Member]
Dec. 31, 2015
Minimum [Member]
Land Improvements [Member]
Dec. 31, 2015
Maximum [Member]
Machinery and Equipment [Member]
Dec. 31, 2015
Maximum [Member]
Buildings [Member]
Dec. 31, 2015
Maximum [Member]
Land Improvements [Member]
Dec. 31, 2016
Scenario, Forecast [Member]
Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Number of states
20 
 
 
 
 
 
 
 
 
 
 
 
Number of demographic factors
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
$ 4,988 
$ 1,308 
$ 1,509 
 
 
 
 
 
 
 
 
 
Bad debt expense
1,450 
2,031 
602 
 
 
 
 
 
 
 
 
 
Write-offs of accounts receivables
1,483 
2,561 
1,946 
 
 
 
 
 
 
 
 
 
Capitalized software costs
7,003 
8,753 
 
 
 
 
 
 
 
 
 
 
Capitalized software costs during the year
1,482 
921 
1,695 
 
 
 
 
 
 
 
 
 
Estimated service lives
 
 
 
 
 
3 years 
7 years 
8 years 
25 years 
20 years 
20 years 
 
Number of Rabbi Trusts established
 
 
 
 
 
 
 
 
 
 
 
Net gains of the Rabbi Trust investments
(1,517)
1,169 
4,398 
 
 
 
 
 
 
 
 
 
Unrealized net gains (losses) of the Rabbi Trust investments
(1,769)
(1,049)
4,234 
 
 
 
 
 
 
 
 
 
Losses on impairment of long-lived assets
5,190 
3,095 
 
 
 
 
 
 
 
 
 
Assets subject to fair value measurement on a nonrecurring basis
2,172 
 
 
 
 
 
 
 
 
 
 
Goodwill
3,094,824 
3,094,824 
3,081,521 
3,086,716 
 
 
 
 
 
 
 
 
Percentage of goodwill in total assets
37.00% 
38.00% 
 
 
 
 
 
 
 
 
 
 
Number of operating segments
 
 
 
 
 
 
 
 
 
 
 
Number of reporting units
18 
 
 
 
 
 
 
 
 
 
 
Percentage of net property, plant & equipment in total assets
38.00% 
 
 
 
 
 
 
 
 
 
 
 
Percentage of net other intangible assets in total assets
9.00% 
 
 
 
 
 
 
 
 
 
 
 
Number of Facilities
 
 
 
 
 
 
 
 
 
 
 
Proceeds from sale of future production
 
 
153,282 
73,644 
 
 
 
 
 
 
 
 
Amortization term of proceeds from sale of future production
25 years 
 
 
 
 
 
 
 
 
 
 
 
Estimated deferred revenue to be recognized in the next 12 months
 
 
 
 
 
 
 
 
 
 
 
6,400 
Stripping costs
50,409 
44,896 
41,716 
 
 
 
 
 
 
 
 
 
Capitalized pre-production stripping costs
61,369 
44,035 
 
 
 
 
 
 
 
 
 
 
Excess tax benefits from share-based compensation
18,376 
3,464 
161 
 
 
 
 
 
 
 
 
 
Carrying value of reclamation obligations
226,594 
226,565 
228,234 
 
 
 
 
 
 
 
 
 
Spread between the amount accrued and the maximum environmental loss
3,154 
 
 
 
 
 
 
 
 
 
 
 
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% 
 
 
 
 
 
 
 
 
 
 
 
LIFO method used for percentage of inventory
67.00% 
 
 
 
 
 
 
 
 
 
 
 
Debt Issuance Cost
 
$ 20,805 
 
 
 
 
 
 
 
 
 
 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Depreciation, Depletion, Accretion and Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
Depreciation
$ 228,866 
$ 239,611 
$ 271,180 
Depletion
18,177 
16,741 
13,028 
Accretion
11,474 
11,601 
10,685 
Amortization of leaseholds
688 
578 
483 
Amortization of intangible
15,618 
10,966 
11,732 
Total
$ 274,823 
$ 279,497 
$ 307,108 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Fair Value Measurement on Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets fair value, recurring
$ 20,464 
$ 26,780 
Level 1 [Member] |
Mutual Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets fair value, recurring
11,472 
15,532 
Level 1 [Member] |
Equities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets fair value, recurring
8,992 
11,248 
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets fair value, recurring
2,124 
1,415 
Level 2 [Member] |
Common/Collective Trust Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets fair value, recurring
$ 2,124 
$ 1,415 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Fair Value Measurement on Nonrecurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
Totals
$ 0 
$ 2,172 
 
Property, plant & equipment, Impairment Charges
2,176 
3,095 
 
Other intangible assets, net, Impairment Charges
2,858 
 
Other assets, Impairment Charges
156 
 
Totals, Impairment Charges
5,190 
3,095 
Nonrecurring [Member] |
Level 2 [Member]
 
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
Property, plant & equipment
2,172 
 
Other intangible assets, net
 
Other assets
 
Totals
$ 0 
$ 2,172 
 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Deferred Revenue Balances) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
Balance at beginning of year
$ 219,968 
$ 224,743 
$ 73,583 
Cash received and revenue deferred
187 
153,156 
Amortization of deferred revenue
(5,908)
(4,962)
(1,996)
Balance at end of year
$ 214,060 
$ 219,968 
$ 224,743 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Unrecognized Compensation Expense) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Total/weighted-average
$ 27,153 
Expected Weighted-Average Recognition (Years)
2 years 3 months 18 days 
Employee Stock Options [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
SOSARs
4,882 1
Expected Weighted-Average Recognition (Years)
1 year 7 months 6 days 1
Performance Shares [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Performance and restricted shares
$ 22,271 
Expected Weighted-Average Recognition (Years)
2 years 6 months 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Pretax Compensation Expense) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
Pretax compensation expense
$ 16,362 
$ 22,217 
$ 20,187 
Income tax benefits
$ 6,347 
$ 8,571 
$ 7,833 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Liabilities Under Self-Insurance Program) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
Self-insured liabilities (undiscounted)
$ 44,618 
$ 43,731 
Insured liabilities (undiscounted)
16,787 
17,758 
Discount Rate
1.44% 
1.29% 
Investments and long-term receivables
15,810 
16,884 
Other accrued liabilities
(14,198)
(13,131)
Other noncurrent liabilities
(44,102)
(45,569)
Net liabilities (discounted)
$ (42,490)
$ (41,816)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Payments (Undiscounted) Under Self-Insurance Program) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
2016
$ 19,001 
2017
10,900 
2018
7,743 
2019
5,063 
2020
$ 3,609 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Weighted-Average Common Shares Outstanding) (Details)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
Weighted-average common shares outstanding
133,210 
131,461 
130,272 
Stock options/SOSARs
1,027 
656 
461 
Other stock compensation plans
856 
874 
734 
Weighted-average common shares outstanding, assuming dilution
135,093 
132,991 
131,467 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Antidilutive Common Stock Equivalents) (Details)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
Antidilutive common stock equivalents
544 
2,352 
2,895 
DISCONTINUED OPERATIONS (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2005
agreement
DISCONTINUED OPERATIONS [Abstract]
 
 
 
 
Number of earn-out agreements
 
 
 
Final payment received under the 5CP earn-out
 
 
$ 13,031 
 
Payments for the transaction bonus
 
 
1,303 
 
Pretax losses from discontinued operations
$ 19,326 
$ 3,683 
$ 5,744 
 
DISCONTINUED OPERATIONS (Results from Discontinued Operations) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
DISCONTINUED OPERATIONS [Abstract]
 
 
 
Pretax loss
$ (19,326)
$ (3,683)
$ (5,744)
Gain on disposal, net of transaction bonus
11,728 
Income tax (provision) benefit
7,589 
1,460 
(2,358)
Earnings (loss) on discontinued operations, net of income taxes
$ (11,737)
$ (2,223)
$ 3,626 
INVENTORIES (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
INVENTORIES [Abstract]
 
 
 
Inventory classified as long-term assets (other noncurrent assets)
$ 14,995 
$ 17,449 
 
Inventories valued under the LIFO method
242,147 
232,371 
 
Decrease in cost of revenues due to the effect of the LIFO liquidation
3,284 
2,686 
1,310 
Increase in net earnings due to the effect of the LIFO liquidation
2,010 
1,650 
802 
Excess of estimated current cost over LIFO cost
169,257 
181,633 
 
Approximate effect on net earnings due to the adoption of the LIFO method
$ (7,614)
$ 19,108 
$ 20,812 
INVENTORIES (Inventories) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
INVENTORIES [Abstract]
 
 
Finished products
$ 297,925 1
$ 275,172 1
Raw materials
21,765 
19,741 
Products in process
1,008 
1,250 
Operating supplies and other
26,375 
25,641 
Inventories
347,073 
321,804 
Encumbered inventories
$ 4,452 
$ 4,792 
PROPERTY, PLANT & EQUIPMENT (Property, Plant and Equipment) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Property, plant & equipment, gross
$ 6,891,287 
$ 6,608,842 
Less allowances for depreciation, depletion and amortization
3,734,997 
3,537,212 
Property, plant & equipment, net
3,156,290 
3,071,630 
Land and Land Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant & equipment, gross
2,305,801 1
2,273,874 1
Buildings [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant & equipment, gross
124,950 
126,833 
Machinery and Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant & equipment, gross
4,124,808 
3,952,423 
Leaseholds [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant & equipment, gross
14,143 
13,451 
Deferred Asset Retirement Costs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant & equipment, gross
166,252 
163,644 
Construction in Progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant & equipment, gross
155,333 
78,617 
Depletable Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant & equipment, gross
$ 1,296,211 
$ 1,287,225 
PROPERTY, PLANT & EQUIPMENT (Capitalized Interest Costs and Total Interest Costs Incurred) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
PROPERTY, PLANT & EQUIPMENT [Abstract]
 
 
 
Capitalized interest cost
$ 2,930 
$ 2,092 
$ 1,089 
Total interest cost incurred before recognition of the capitalized amount
$ 223,518 
$ 245,459 
$ 203,677 
DERIVATIVE INSTRUMENTS (Narrative) (Details) (USD $)
1 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Aug. 31, 2011
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2007
agreement
Jun. 30, 2011
Dec. 31, 2015
Reclassification out of Accumulated Other Comprehensive Income [Member]
Dec. 31, 2014
Reclassification out of Accumulated Other Comprehensive Income [Member]
Dec. 31, 2015
6.50% notes due 2016 [Member]
Apr. 30, 2015
6.50% notes due 2016 [Member]
Dec. 31, 2014
6.50% notes due 2016 [Member]
Mar. 31, 2014
6.50% notes due 2016 [Member]
Jun. 30, 2011
6.50% notes due 2016 [Member]
Dec. 31, 2015
10.125% notes due 2015 [Member]
Dec. 31, 2014
10.125% notes due 2015 [Member]
Dec. 31, 2007
Interest Rate Swap Agreements [Member]
Jun. 30, 2011
Interest Rate Swap Agreement One [Member]
Jun. 30, 2011
Interest Rate Swap Agreement Two [Member]
Jun. 30, 2011
Interest Rate Swap Agreement Two [Member]
10.125% notes due 2015 [Member]
Dec. 31, 2015
Debt [Member]
Dec. 31, 2014
Debt [Member]
Dec. 31, 2016
Scenario, Forecast [Member]
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of forward starting interest rate swap agreements
 
 
 
 
15 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional amount of interest rate swap agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,500,000,000 
$ 500,000,000 
$ 150,000,000 
 
 
 
 
Cash (payments for) proceeds from interest rate swap agreements
25,382,000 
 
 
 
(89,777,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss reclassified from AOCI
 
 
 
 
 
 
7,208,000 
3,762,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated amount of pretax loss in AOCI reclassified to earnings for the next 12-month period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,008,000 
Fixed-rate notes issued
 
2,004,198,000 
2,004,459,000 
 
 
500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
 
6.50% 
6.50% 
6.50% 
6.50% 
6.50% 
10.125% 
10.125% 
 
 
 
10.125% 
 
 
 
Interest rate spread above London Interbank Offered Rate (LIBOR)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.05% 
8.03% 
 
 
 
 
Fixed interest rate under swap agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.50% 
10.125% 
 
 
 
 
Gain component of the settlement
23,387,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued interest
1,995,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized deferred gain
 
$ 3,036,000 
$ 10,674,000 
$ 4,334,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,642,000 
$ 8,032,000 
 
DERIVATIVE INSTRUMENTS (Effects of Changes in Fair Values of Derivatives Designated as Cash Flow Hedges) (Details) (Interest Rate Swap [Member], Cash Flow Hedges [Member], Interest Expense [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Interest Rate Swap [Member] |
Cash Flow Hedges [Member] |
Interest Expense [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Loss reclassified from AOCI (effective portion)
$ (9,759)
$ (7,988)
$ (5,077)
DERIVATIVE INSTRUMENTS (Deferred Gain Amortization) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
DERIVATIVE INSTRUMENTS [Abstract]
 
 
 
Amortized to earnings as a reduction to interest expense
$ 3,036 
$ 10,674 
$ 4,334 
DEBT (Narrative) (Details) (USD $)
1 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Apr. 30, 2015
Mar. 31, 2015
Mar. 31, 2014
Jun. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Jun. 30, 2011
Dec. 31, 2015
10.125% notes due 2015 [Member]
Nov. 30, 2015
10.125% notes due 2015 [Member]
Dec. 31, 2014
10.125% notes due 2015 [Member]
Dec. 31, 2015
4.50% notes due 2025 [Member]
Mar. 31, 2015
4.50% notes due 2025 [Member]
Dec. 31, 2014
4.50% notes due 2025 [Member]
Apr. 30, 2015
7.00% notes due 2018 [Member]
Mar. 31, 2015
7.00% notes due 2018 [Member]
Mar. 31, 2015
7.00% notes due 2018 [Member]
Dec. 31, 2015
7.00% notes due 2018 [Member]
Dec. 31, 2014
7.00% notes due 2018 [Member]
Apr. 30, 2015
6.40% notes due 2017 [Member]
Dec. 31, 2015
6.40% notes due 2017 [Member]
Dec. 31, 2014
6.40% notes due 2017 [Member]
Mar. 31, 2014
6.40% notes due 2017 [Member]
Apr. 30, 2015
6.50% notes due 2016 [Member]
Dec. 31, 2015
6.50% notes due 2016 [Member]
Dec. 31, 2014
6.50% notes due 2016 [Member]
Mar. 31, 2014
6.50% notes due 2016 [Member]
Jun. 30, 2011
6.50% notes due 2016 [Member]
Dec. 31, 2015
Bank Line of Credit [Member]
Jun. 30, 2015
Bank Line of Credit [Member]
Oct. 31, 2016
Bank Line of Credit [Member]
Scenario, Forecast [Member]
Dec. 31, 2015
Bank Line of Credit [Member]
LIBOR [Member]
Dec. 31, 2015
Bank Line of Credit [Member]
Base Rate [Member]
Dec. 31, 2015
Standby Letters of Credit [Member]
Dec. 31, 2015
Standby Letters of Credit [Member]
LIBOR [Member]
Dec. 31, 2015
Minimum [Member]
Bank Line of Credit [Member]
Dec. 31, 2015
Minimum [Member]
Bank Line of Credit [Member]
LIBOR [Member]
Dec. 31, 2015
Minimum [Member]
Bank Line of Credit [Member]
Base Rate [Member]
Dec. 31, 2015
Maximum [Member]
Bank Line of Credit [Member]
Dec. 31, 2015
Maximum [Member]
Bank Line of Credit [Member]
LIBOR [Member]
Dec. 31, 2015
Maximum [Member]
Bank Line of Credit [Member]
Base Rate [Member]
Dec. 31, 2015
Other Notes [Member]
Dec. 31, 2014
Other Notes [Member]
Dec. 31, 2015
Industrial Revenue Bonds [Member]
Jul. 31, 2015
Industrial Revenue Bonds [Member]
Dec. 31, 2014
Industrial Revenue Bonds [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 750,000,000 
$ 500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction fees
 
 
 
 
7,382,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,589,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit, expiration date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun. 01, 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to EBITDA ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.5 
 
3.25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA to net cash interest expense ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Applicable margin on borrowing rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.75% 
0.75% 
 
0.175% 
 
1.00% 
0.00% 
 
2.00% 
1.00% 
 
 
 
 
 
Commitment fee
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.25% 
 
 
 
 
 
 
0.10% 
 
 
0.35% 
 
 
 
 
 
 
 
Available borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
476,136,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long term debt
 
 
 
 
1,980,464,000 1
1,984,779,000 1
 
 
150,000,000 
150,000,000 
400,000,000 
 
 
 
 
272,512,000 
400,000,000 
 
218,633,000 
 
 
125,001,000 
 
 
235,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
498,000 2
637,000 2
14,000,000 
14,000,000 
Other liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
38,864,000 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issued, amount
 
 
 
 
2,004,198,000 
2,004,459,000 
 
500,000,000 
 
 
 
 
400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
 
10.125% 
 
10.125% 
4.50% 
4.50% 
 
7.00% 
7.00% 
7.00% 
7.00% 
 
6.40% 
6.40% 
6.40% 
6.40% 
6.50% 
6.50% 
6.50% 
6.50% 
6.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity year
 
 
 
 
 
 
 
 
2015 
 
 
2025 
 
 
 
 
 
2018 
 
 
2017 
 
 
 
2016 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2022 
 
 
Debt issued, net proceeds
 
395,207,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt purchased, amount
 
 
506,366,000 
471,122,000 
 
 
 
 
 
 
 
 
 
 
185,000 
127,303,000 
127,303,000 
 
 
218,633,000 
 
 
131,367,000 
125,001,000 
 
 
374,999,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal amount, percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
32.00% 
 
 
 
100.00% 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total consideration paid for debt
385,024,000 
 
579,659,000 
 
695,060,000 
579,829,000 
150,602,000 
 
 
 
 
 
 
 
 
145,899,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium paid for purchase of debt
41,153,000 
 
71,829,000 
 
 
 
 
 
 
 
 
 
 
 
 
18,140,000 
18,140,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction cost related to termination of debt
52,000 
 
1,464,000 
 
 
 
 
 
 
 
 
 
 
 
 
456,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other cost (benefit) related to debt purchase
4,136,000 
 
(344,000)
 
 
 
 
 
 
 
 
 
 
 
 
3,138,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of debt purchase
 
 
 
$ 45,341,000 
$ 67,075,000 
$ 72,949,000 
$ 0 
 
 
 
 
 
 
 
 
 
$ 21,734,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial term of letters of credit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
DEBT (Summary of Debt) (Details) (USD $)
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
10.125% notes due 2015 [Member]
Nov. 30, 2015
10.125% notes due 2015 [Member]
Dec. 31, 2014
10.125% notes due 2015 [Member]
Dec. 31, 2015
6.50% notes due 2016 [Member]
Dec. 31, 2014
6.50% notes due 2016 [Member]
Dec. 31, 2015
6.40% notes due 2017 [Member]
Dec. 31, 2014
6.40% notes due 2017 [Member]
Dec. 31, 2015
7.00% notes due 2018 [Member]
Dec. 31, 2014
7.00% notes due 2018 [Member]
Dec. 31, 2015
10.375% notes due 2018 [Member]
Dec. 31, 2014
10.375% notes due 2018 [Member]
Dec. 31, 2015
7.50% notes due 2021 [Member]
Dec. 31, 2014
7.50% notes due 2021 [Member]
Dec. 31, 2015
8.85% notes due 2021 [Member]
Dec. 31, 2014
8.85% notes due 2021 [Member]
Dec. 31, 2015
4.50% notes due 2025 [Member]
Dec. 31, 2014
4.50% notes due 2025 [Member]
Dec. 31, 2015
7.15% notes due 2037 [Member]
Dec. 31, 2014
7.15% notes due 2037 [Member]
Dec. 31, 2015
10.125% notes due 2015 and 6.50% notes due 2016 [Member]
Dec. 31, 2014
10.125% notes due 2015 and 6.50% notes due 2016 [Member]
Dec. 31, 2015
Bank Line of Credit [Member]
Dec. 31, 2014
Bank Line of Credit [Member]
Dec. 31, 2015
Bank Line of Credit [Member]
Dec. 31, 2014
Bank Line of Credit [Member]
Dec. 31, 2015
Industrial Revenue Bonds [Member]
Jul. 31, 2015
Industrial Revenue Bonds [Member]
Dec. 31, 2014
Industrial Revenue Bonds [Member]
Dec. 31, 2015
Other Notes [Member]
Dec. 31, 2014
Other Notes [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total short-term debt
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 1 2 3
$ 0 1 2 3
 
 
 
 
 
 
 
Total long-term debt including current maturities
1,980,464,000 4
1,984,779,000 4
150,000,000 
150,000,000 
125,001,000 
218,633,000 
272,512,000 
400,000,000 
250,000,000 
250,000,000 
600,000,000 
600,000,000 
6,000,000 
6,000,000 
400,000,000 
240,188,000 
240,188,000 
 
 
 
 
235,000,000 1 2 3
1 2 3
14,000,000 
14,000,000 
498,000 2
637,000 2
Unamortized discounts and debt issuance costs
(23,734,000)
(22,716,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized deferred interest rate swap gain
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
3,036,000 5
 
 
 
 
 
 
 
 
 
Less current maturities
130,000 
150,137,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
1,980,334,000 
1,834,642,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
1,980,464,000 6
1,984,779,000 6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of long-term debt
$ 2,204,816,000 
$ 2,092,673,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEBT (Summary of Debt Additional Information) (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Jun. 30, 2011
Dec. 31, 2015
10.125% notes due 2015 [Member]
Dec. 31, 2014
10.125% notes due 2015 [Member]
Dec. 31, 2015
6.50% notes due 2016 [Member]
Apr. 30, 2015
6.50% notes due 2016 [Member]
Dec. 31, 2014
6.50% notes due 2016 [Member]
Mar. 31, 2014
6.50% notes due 2016 [Member]
Jun. 30, 2011
6.50% notes due 2016 [Member]
Dec. 31, 2015
6.40% notes due 2017 [Member]
Apr. 30, 2015
6.40% notes due 2017 [Member]
Dec. 31, 2014
6.40% notes due 2017 [Member]
Mar. 31, 2014
6.40% notes due 2017 [Member]
Dec. 31, 2015
7.00% notes due 2018 [Member]
Apr. 30, 2015
7.00% notes due 2018 [Member]
Mar. 31, 2015
7.00% notes due 2018 [Member]
Dec. 31, 2015
10.375% notes due 2018 [Member]
Dec. 31, 2014
10.375% notes due 2018 [Member]
Dec. 31, 2015
7.50% notes due 2021 [Member]
Dec. 31, 2014
7.50% notes due 2021 [Member]
Dec. 31, 2015
8.85% notes due 2021 [Member]
Dec. 31, 2014
8.85% notes due 2021 [Member]
Dec. 31, 2015
4.50% notes due 2025 [Member]
Mar. 31, 2015
4.50% notes due 2025 [Member]
Dec. 31, 2015
7.15% notes due 2037 [Member]
Dec. 31, 2014
7.15% notes due 2037 [Member]
Dec. 31, 2015
Bank Line of Credit [Member]
Dec. 31, 2015
Bank Line of Credit [Member]
Dec. 31, 2015
Industrial Revenue Bonds [Member]
Dec. 31, 2015
Other Notes [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit, expiration date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun. 01, 2020 
Jun. 01, 2020 
 
 
Interest rate
 
 
 
10.125% 
10.125% 
6.50% 
6.50% 
6.50% 
6.50% 
6.50% 
6.40% 
6.40% 
6.40% 
6.40% 
7.00% 
7.00% 
7.00% 
10.375% 
10.375% 
7.50% 
7.50% 
8.85% 
8.85% 
4.50% 
4.50% 
7.15% 
7.15% 
 
 
 
 
Maturity year
 
 
 
2015 
 
2016 
 
 
 
 
2017 
 
 
 
2018 
 
 
2018 
 
2021 
 
2021 
 
2025 
 
2037 
 
 
 
2022 
 
Debt instrument face amount
$ 2,004,198,000 
$ 2,004,459,000 
$ 500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 400,000,000 
 
 
 
 
 
 
Effective interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.87% 
 
 
10.63% 
 
7.75% 
 
8.88% 
 
4.65% 
 
8.05% 
 
 
1.75% 1 2 3
 
6.25% 2
DEBT (Schedule of Principal and Interest Debt Payments) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
DEBT [Abstract]
 
2016, Total
$ 125,878 
2017, Total
125,878 
2018, Total
638,728 
2019, Total
80,740 
2020, Total
80,740 
2016, Principal
130 
2017, Principal
138 
2018, Principal
522,534 
2019, Principal
23 
2020, Principal
25 
2016, Interest
125,748 
2017, Interest
125,740 
2018, Interest
116,194 
2019, Interest
80,717 
2020, Interest
$ 80,715 
DEBT (Summary of Standby Letters Of Credit) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Line of Credit Facility [Line Items]
 
 
 
Risk management insurance
$ 44,618 
$ 43,731 
 
Reclamation/restoration requirements
226,594 
226,565 
228,234 
Standby Letters of Credit [Member]
 
 
 
Line of Credit Facility [Line Items]
 
 
 
Risk management insurance
33,111 
 
 
Reclamation/restoration requirements
5,753 
 
 
Total
$ 38,864 
 
 
OPERATING LEASES (Rental Expense From Continuing Operations Under Nomineral Operating Leases) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
OPERATING LEASES [Abstract]
 
 
 
Minimum rentals
$ 49,461 
$ 42,887 
$ 40,151 
Contingent rentals (based principally on usage)
60,380 
56,717 
44,111 
Total
$ 109,841 
$ 99,604 
$ 84,262 
OPERATING LEASES (Future Minimum Operating Lease Payments) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
OPERATING LEASES [Abstract]
 
2016
$ 30,945 
2017
29,712 
2018
26,543 
2019
22,455 
2020
20,508 
Thereafter
128,657 
Total
$ 258,820 
ACCRUED ENVIRONMENTAL REMEDIATION COSTS (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
ACCRUED ENVIRONMENTAL REMEDIATION COSTS [Abstract]
 
 
Long-term portion of accrued environmental remediation costs
$ 12,569 
$ 6,736 
ACCRUED ENVIRONMENTAL REMEDIATION COSTS (Accrued Environmental Remediation Costs) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Loss Contingencies [Line Items]
 
 
Accrued Environmental Remediation Costs
$ 17,864 
$ 9,048 
Continuing Operations [Member]
 
 
Loss Contingencies [Line Items]
 
 
Accrued Environmental Remediation Costs
6,876 
4,919 
Discontinued Operations [Member]
 
 
Loss Contingencies [Line Items]
 
 
Accrued Environmental Remediation Costs
$ 10,988 
$ 4,129 
INCOME TAXES (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
State net operating loss carryforwards, Deferred Tax Asset
$ 61,658 
$ 59,315 
 
Decrease in valuation allowance
4,655 
 
 
Income tax receivables
4,138 
1,040 
 
Interest and penalties recognized as income tax expense
138 
(1,067)
(788)
Balance of accrued interest and penalties included in lliability for unrecognized income tax benefits
1,103 
965 
2,032 
Unrecognized income tax benefits that would affect the effective tax rate if recognized
7,614 
6,282 
7,910 
Undistributed earnings from foreign subsidiaries
75,938 
 
 
Deferred income tax liability not recognized from undistributed foreign earnings
26,578 
 
 
Alabama [Member]
 
 
 
State net operating loss carryforwards, Deferred Tax Asset
$ 58,921 
 
 
INCOME TAXES (Components Of Earnings (Loss) From Continuing Operations Before Income Taxes) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
INCOME TAXES [Abstract]
 
 
 
Domestic
$ 293,547 
$ 264,473 
$ (34,239)
Foreign
34,310 
34,365 
30,536 
Earnings (loss) from continuing operations before income taxes
$ 327,857 
$ 298,838 
$ (3,703)
INCOME TAXES (Provision (Benefit) For Income Taxes from Continuing Operations) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
INCOME TAXES [Abstract]
 
 
 
Current, Federal
$ 67,521 
$ 47,882 
$ (3,691)
Current, State and local
14,035 
18,983 
7,941 
Current, Foreign
7,784 
7,174 
5,423 
Current, Total
89,340 
74,039 
9,673 
Deferred, Federal
11,192 
13,556 
(20,581)
Deferred, State and local
(4,888)
4,120 
(13,542)
Deferred, Foreign
(701)
(23)
(9)
Deferred, Total
5,603 
17,653 
(34,132)
Total provision for (benefit from) income taxes
$ 94,943 
$ 91,692 
$ (24,459)
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, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
INCOME TAXES [Abstract]
 
 
 
Income tax provision (benefit) at the federal statutory tax rate of 35%
$ 114,750 
$ 104,594 
$ (1,296)
Statutory depletion
(27,702)
(25,774)
(20,875)
State and local income taxes, net of federal income tax benefit
5,945 
15,017 
(3,641)
U.S. production deduction
(5,099)
Foreign tax credit carryforwards impairment
6,486 
Permanently reinvested foreign earnings
(6,396)
Other, net
6,959 
(2,145)
1,353 
Total provision for (benefit from) income taxes
$ 94,943 
$ 91,692 
$ (24,459)
Income tax benefit at the federal statutory tax rate of 35%, Rate
35.00% 
35.00% 
35.00% 
Statutory depletion, Rate
(8.40%)
(8.60%)
563.70% 
State and local income taxes, net of federal income tax benefit, Rate
1.80% 
5.00% 
98.30% 
U.S. production deduction, Rate
(1.60%)
0.00% 
0.00% 
Foreign tax credit carryforwards impairment, Rate
2.00% 
0.00% 
0.00% 
Permanently reinvested foreign earnings, Rate
(2.00%)
0.00% 
0.00% 
Other, net, Rate
2.20% 
(0.70%)
(36.50%)
Total Effective tax rate
29.00% 
30.70% 
660.50% 
INCOME TAXES (Components of Net Deferred Income Tax Liability) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
INCOME TAXES [Abstract]
 
 
Employee benefits
$ 78,999 
$ 97,757 
Asset retirement obligations & other reserves
59,507 
53,670 
Deferred compensation
117,298 
121,900 
State net operating losses
61,658 
59,315 
Federal credit carryforwards
34,340 
40,212 
Other
48,856 
52,241 
Total gross deferred tax assets
400,658 
425,095 
Valuation allowance
(59,323)
(56,867)
Total net deferred tax assets
341,335 
368,228 
Property, plant and equipment
665,057 
661,697 
Goodwill/other intangible assets
324,910 
329,539 
Other
32,464 
28,403 
Total deferred tax liabilities
1,022,431 
1,019,639 
Net deferred tax liability
681,096 
651,411 
Deferred income taxes noncurrent
$ 44,464 
 
INCOME TAXES (Net Deferred Tax Liability) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
INCOME TAXES [Abstract]
 
 
Current assets
$ 0 1
$ (39,726)1
Noncurrent liabilities
681,096 
691,137 
Net deferred tax liability
$ 681,096 
$ 651,411 
INCOME TAXES (Changes in Unrecognized Income Tax Benefits) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
INCOME TAXES [Abstract]
 
 
 
Unrecognized tax benefits as of January 1
$ 7,057 
$ 12,155 
$ 13,550 
Increases for tax positions related to Prior years
491 
229 
28 
Increases for tax positions related to Current year
942 
528 
845 
Decreases for tax positions related to Prior years
(53)
(86)
Settlements with taxing authorities
(136)
Expiration of applicable statute of limitations
(43)
(5,802)
(2,046)
Unrecognized tax benefits as of December 31
$ 8,447 
$ 7,057 
$ 12,155 
BENEFIT PLANS (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2015
item
ShareBasedCompensationPlan
Dec. 31, 2014
item
Dec. 31, 2013
Dec. 31, 2015
Mexico [Member]
employee
Dec. 31, 2015
Equities [Member]
Dec. 31, 2015
Debt Securities [Member]
Dec. 31, 2015
Specialty Investments [Member]
Dec. 31, 2015
Commodities [Member]
Dec. 31, 2015
Cash Reserves [Member]
Dec. 31, 2015
Pension Plans, Defined Benefit [Member]
ShareBasedCompensationPlan
Dec. 31, 2014
Pension Plans, Defined Benefit [Member]
Dec. 31, 2013
Pension Plans, Defined Benefit [Member]
Dec. 31, 2016
Pension Plans, Defined Benefit [Member]
Scenario, Forecast [Member]
Dec. 31, 2013
Pension Plans, Defined Benefit [Member]
Discontinued Operations [Member]
Dec. 31, 2015
Non Qualified Pension Plans [Member]
ShareBasedCompensationPlan
Dec. 31, 2014
Non Qualified Pension Plans [Member]
Dec. 31, 2013
Non Qualified Pension Plans [Member]
Dec. 31, 2016
Non Qualified Pension Plans [Member]
Scenario, Forecast [Member]
Mar. 31, 2014
Other Postretirement Benefit Plans, Defined Benefit [Member]
Dec. 31, 2015
Other Postretirement Benefit Plans, Defined Benefit [Member]
Dec. 31, 2014
Other Postretirement Benefit Plans, Defined Benefit [Member]
Dec. 31, 2013
Other Postretirement Benefit Plans, Defined Benefit [Member]
Dec. 31, 2016
Other Postretirement Benefit Plans, Defined Benefit [Member]
Scenario, Forecast [Member]
Dec. 31, 2015
Minimum [Member]
Dec. 31, 2014
Minimum [Member]
Dec. 31, 2015
Maximum [Member]
Dec. 31, 2014
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of funded, noncontributory defined benefit pension plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of unfunded, nonqualified pension plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number Of Defined Contribution Plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Normal retirement age
 
 
 
 
 
 
 
 
 
65 years 
 
 
 
 
 
 
 
 
 
65 years 
 
 
 
 
 
 
 
Pension expense
 
 
 
 
 
 
 
 
 
 
 
$ (7,600)
 
$ (800)
 
 
 
 
 
 
 
 
 
 
 
 
 
Reduction in the projected benefit obligation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,639 
 
 
 
 
 
 
One-time curtailment gain
 
 
 
 
 
 
 
 
 
(855)
 
 
 
 
 
 
3,832 
3,832 
 
 
 
 
 
Projected benefit obligation
988,453 
1,083,222 
911,700 
 
 
 
 
 
 
 
 
 
 
 
89,652 
101,230 
 
 
 
48,605 
85,336 
92,888 
 
 
 
 
 
Accumulated benefit obligation
 
 
 
 
 
 
 
 
 
987,724 
1,061,816 
 
 
 
89,652 
95,154 
 
 
 
 
 
 
 
 
 
 
 
Estimated net actuarial loss expected to be amortized from accumulated other comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
6,067 
 
 
 
 
 
 
 
 
 
(1,828)
 
 
 
 
Estimated prior service cost that will be amortized from accumulated other comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
(43)
 
 
 
 
 
 
 
 
 
(4,236)
 
 
 
 
Expected return on plan assets
 
 
 
 
 
 
 
 
 
7.50% 
7.50% 
7.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Target allocation ranges for plan assets, minimum
 
 
 
 
50.00% 
15.00% 
0.00% 
0.00% 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Target allocation ranges for plan assets, maximum
 
 
 
 
77.00% 
27.00% 
20.00% 
6.00% 
5.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employer contributions
14,047 
5,488 
4,855 
 
 
 
 
 
 
 
 
14,047 
5,488 
4,855 
 
 
 
 
 
 
 
 
 
 
Contributions to multiemployer pension plans
9,800 
8,503 
7,580 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated employer contribution in 2016
9,107 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,107 
 
6,287 
 
 
 
 
 
 
 
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
14.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of domestic hourly labor force covered by collective bargaining agreements expiring in 2016
40.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of employees
 
 
 
315 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of unfunded supplemental retirement plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued costs for supplemental retirement plan
1,384 
1,421 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
 
 
 
 
 
 
 
4.54% 
4.14% 
4.91% 
 
 
 
 
 
 
 
3.69% 
3.50% 
4.10% 
 
3.53% 
3.50% 
4.68% 
4.30% 
Estimated weighted-average discount rate to measure service cost
 
 
 
 
 
 
 
 
 
 
 
 
4.89% 
 
 
 
 
 
 
 
 
 
4.05% 
 
 
 
 
Estimated weighted-average discount rate to measure interest cost
 
 
 
 
 
 
 
 
 
 
 
 
3.80% 
 
 
 
 
 
 
 
 
 
2.81% 
 
 
 
 
Estimated weighted-average discount rate for service and interest costs
 
 
 
 
 
 
 
 
 
 
 
 
4.54% 
 
 
 
 
 
 
 
 
 
3.69% 
 
 
 
 
Estimated reduction in benefit cost
 
 
 
 
 
 
 
 
 
 
 
 
7,200 
 
 
 
 
 
 
 
 
 
530 
 
 
 
 
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase
 
 
 
 
 
 
 
 
 
3.50% 
3.70% 
3.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare cost trend rate assumed for next year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.50% 
7.50% 
 
 
 
 
 
Rate to which the cost trend rate gradually declines
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.00% 
5.00% 
 
 
 
 
 
Year that the rate reaches the rate it is assumed to maintain
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2025 
2019 
 
 
 
 
 
Expense recognized related to defined contribution plans
$ 36,085 
$ 29,215 
$ 21,416 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BENEFIT PLANS (Reconciliation of Fair Value Measurements of Pension Plan Assets Using Significant Unobservable Inputs ( Level 3)) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
BENEFIT PLANS [Abstract]
 
 
Fair value of assets at beginning of year
$ 109,933 
$ 88,482 
Total gains (losses) for the period
5,186 1
34,071 1
Purchases, sales and settlements, net
(12,247)
(12,940)
Transfers into (out of) of Level 3
320 
Fair value of assets at end of year
102,872 
109,933 
Unrealized gains related to assets still held
$ 47 
$ 29,329 
BENEFIT PLANS (Components of Net Periodic Benefit Cost, Amounts Recognized in Other Comprehensive Income, Weighted-Average Assumptions) (Details) (USD $)
In Thousands, unless otherwise specified
1 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Components of Net Periodic Benefit Cost
 
 
 
 
Service cost
 
$ 4,851 
$ 4,157 
 
Interest cost
 
44,065 
44,392 
 
Pension Plans, Defined Benefit [Member]
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
Service cost
 
4,851 
4,157 
21,904 
Interest cost
 
44,065 
44,392 
40,995 
Expected return on plan assets
 
(54,736)
(50,802)
(47,425)
Settlement charge
 
2,031 
Curtailment gain (loss)
 
855 
Amortization of prior service cost
 
48 
188 
339 
Amortization of actuarial loss
 
21,641 
11,221 
20,429 
Net periodic pension/postretirement benefit cost
 
17,900 
9,156 
37,097 
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
 
 
 
 
Net actuarial loss (gain)
 
(3,615)
118,915 
(163,205)
Prior service cost (credit)
 
(583)
Reclassification of actuarial loss to net periodic postretirement benefit cost
 
(23,672)
(11,221)
(20,429)
Reclassification of prior service cost to net periodic pension benefit cost
 
(48)
(188)
(1,194)
Amount recognized in other comprehensive income
 
(27,335)
107,506 
(185,411)
Amount recognized in net periodic pension benefit cost and other comprehensive income
 
(9,435)
116,662 
(148,314)
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31
 
 
 
 
Discount rate
 
4.14% 
4.91% 
4.33% 
Expected return on plan assets
 
7.50% 
7.50% 
7.50% 
Rate of compensation increase (for salary-related plans)
 
3.70% 
3.50% 
3.50% 
Weighted-average assumptions used to determine benefit obligation at December 31
 
 
 
 
Discount rate
 
4.54% 
4.14% 
4.91% 
Rate of compensation increase (for salary-related plans)
 
3.50% 
3.70% 
3.50% 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
Service cost
 
1,894 
2,146 
2,830 
Interest cost
 
2,485 
3,297 
3,260 
Curtailment gain (loss)
(3,832)
(3,832)
Amortization of prior service cost
 
(4,232)
(4,327)
(4,863)
Amortization of actuarial loss
 
37 
227 
1,372 
Net periodic pension/postretirement benefit cost
 
184 
(2,489)
2,599 
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
 
 
 
 
Net actuarial loss (gain)
 
(35,209)
(5,256)
(20,444)
Reclassification of actuarial loss to net periodic postretirement benefit cost
 
(37)
(227)
(1,372)
Reclassification of prior service cost to net periodic pension benefit cost
 
4,232 
8,159 
4,863 
Amount recognized in other comprehensive income
 
(31,014)
2,676 
(16,953)
Amount recognized in net periodic pension benefit cost and other comprehensive income
 
$ (30,830)
$ 187 
$ (14,354)
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract]
 
 
 
 
Healthcare cost trend rate assumed for next year
 
 
7.50% 
7.50% 
Rate to which the cost trend rate gradually declines
 
 
5.00% 
5.00% 
Year that the rate reaches the rate it is assumed to maintain
 
 
2025 
2019 
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31
 
 
 
 
Discount rate
 
3.50% 
4.10% 
3.30% 
Weighted-average assumptions used to determine benefit obligation at December 31
 
 
 
 
Discount rate
 
3.69% 
3.50% 
4.10% 
BENEFIT PLANS (Fair values of Pension Plan Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
$ 745,686 
$ 816,972 
$ 756,624 
Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
745,686 
816,972 
 
Pension Plans, Defined Benefit [Member] |
Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
154,745 
164,695 
 
Pension Plans, Defined Benefit [Member] |
Commodity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
14,490 
19,480 
 
Pension Plans, Defined Benefit [Member] |
Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
464,063 
507,369 
 
Pension Plans, Defined Benefit [Member] |
Short Term Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
9,516 
15,495 
 
Pension Plans, Defined Benefit [Member] |
Venture Capital And Partnerships [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
102,872 
109,933 
 
Level 1 [Member] |
Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
647 1
457 1
 
Level 1 [Member] |
Pension Plans, Defined Benefit [Member] |
Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
1
1
 
Level 1 [Member] |
Pension Plans, Defined Benefit [Member] |
Commodity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
1
1
 
Level 1 [Member] |
Pension Plans, Defined Benefit [Member] |
Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
647 1
457 1
 
Level 1 [Member] |
Pension Plans, Defined Benefit [Member] |
Short Term Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
1
1
 
Level 1 [Member] |
Pension Plans, Defined Benefit [Member] |
Venture Capital And Partnerships [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
1
1
 
Level 2 [Member] |
Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
642,167 1
706,582 1
 
Level 2 [Member] |
Pension Plans, Defined Benefit [Member] |
Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
154,745 1
164,695 1
 
Level 2 [Member] |
Pension Plans, Defined Benefit [Member] |
Commodity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
14,490 1
19,480 1
 
Level 2 [Member] |
Pension Plans, Defined Benefit [Member] |
Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
463,416 1
506,912 1
 
Level 2 [Member] |
Pension Plans, Defined Benefit [Member] |
Short Term Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
9,516 1
15,495 1
 
Level 2 [Member] |
Pension Plans, Defined Benefit [Member] |
Venture Capital And Partnerships [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
1
1
 
Level 3 [Member] |
Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
102,872 1
109,933 1
 
Level 3 [Member] |
Pension Plans, Defined Benefit [Member] |
Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
1
1
 
Level 3 [Member] |
Pension Plans, Defined Benefit [Member] |
Commodity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
1
1
 
Level 3 [Member] |
Pension Plans, Defined Benefit [Member] |
Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
1
1
 
Level 3 [Member] |
Pension Plans, Defined Benefit [Member] |
Short Term Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
1
1
 
Level 3 [Member] |
Pension Plans, Defined Benefit [Member] |
Venture Capital And Partnerships [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Total pension plan assets
$ 102,872 1
$ 109,933 1
 
BENEFIT PLANS (Employer Contributions for Plan) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Employer contributions
$ 14,047 
$ 5,488 
$ 4,855 
Employer contributions
79,960 
44,068 
 
2016 (estimated)
9,107 
 
 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Employer contributions
5,915 
7,739 
6,258 
2016 (estimated)
$ 6,287 
 
 
BENEFIT PLANS (Benefit Payments Which Reflect Expected Future Service, Expected to be Paid) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Pension Plans, Defined Benefit [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2016
$ 51,286 
2017
52,434 
2018
55,527 
2019
56,835 
2020
58,161 
2021-2025
305,043 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2016
6,287 
2017
5,856 
2018
5,623 
2019
5,415 
2020
5,152 
2021-2025
$ 19,229 
BENEFIT PLANS (Contributions by Participants to Postretirement Benefit Plans) (Details) (Other Postretirement Benefit Plans, Defined Benefit [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Participants Contributions
$ 2,031 
$ 1,873 
$ 2,022 
INCENTIVE PLANS (Narrative) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Performance Shares [Member]
Dec. 31, 2014
Performance Shares [Member]
Dec. 31, 2013
Performance Shares [Member]
Dec. 31, 2015
Employee Stock Options [Member]
Dec. 31, 2015
Restricted Stock [Member]
Dec. 31, 2014
Restricted Stock [Member]
Dec. 31, 2013
Restricted Stock [Member]
Feb. 28, 2015
Restricted Stock [Member]
Executive Officer [Member]
Dec. 31, 2013
Restricted Stock [Member]
Executive Officer [Member]
Dec. 31, 2015
Minimum [Member]
Performance Shares [Member]
Dec. 31, 2015
Minimum [Member]
Employee Stock Options [Member]
Dec. 31, 2015
Maximum [Member]
Dec. 31, 2015
Maximum [Member]
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares that may be issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,900,000 
 
Units paid target range
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
 
 
200.00% 
Pretax compensation expense
$ 16,362 
$ 22,217 
$ 20,187 
$ 13,159 
$ 16,863 
$ 16,159 
 
 
 
 
 
 
 
 
 
 
Shares granted
 
 
 
231,730 
 
 
 
 
 
 
14,000 
60,000 
 
 
 
 
Weighted-average Grant Date Fair Value, Granted
 
 
 
$ 74.85 
$ 63.42 
$ 53.65 
 
 
 
 
$ 74.85 
$ 54.35 
 
 
 
 
Share-based compensation plans vesting period (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
4 years 
 
 
Share-based compensation plans expiration period (in years)
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
Expense provision under cash-based compensation plans
$ 26,325 
$ 27,442 
$ 19,540 
 
 
 
 
$ 982 
$ 704 
$ 35 
 
 
 
 
 
 
INCENTIVE PLANS (Summary Of Activity For Nonvested Performance Share Units) (Details) (Performance Shares [Member], USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Performance Shares [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Target Number of Shares, Beginning Balance
1,019,416 
 
 
Target Number of Shares, Granted
231,730 
 
 
Target Number of Shares, Vested
(441,483)
 
 
Target Number of Shares, Canceled/forfeited
(3,324)
 
 
Target Number of Shares, Ending Balance
806,339 
1,019,416 
 
Weighted-average Grant Date Fair Value, Beginning Balance
$ 53.16 
 
 
Weighted-average Grant Date Fair Value, Granted
$ 74.85 
$ 63.42 
$ 53.65 
Weighted-average Grant Date Fair Value, Vested
$ 46.22 
 
 
Weighted-average Grant Date Fair Value, Canceled/forfeited
$ 67.28 
 
 
Weighted-average Grant Date Fair Value, Ending Balance
$ 63.13 
$ 53.16 
 
INCENTIVE PLANS (Aggregate Value of Performance Shares) (Details) (Performance Shares [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Performance Shares [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Aggregate value of distributed performance shares
$ 26,258 
$ 0 
$ 9,286 
INCENTIVE PLANS (Weighted-Average Fair Value And Weighted-Average Assumptions Used In Estimating Fair Value of Grants) (Details)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
INCENTIVE PLANS [Abstract]
 
 
 
Fair value
$ 25.17 
$ 21.94 
$ 16.96 
Risk-free interest rate
1.85% 
2.40% 
1.40% 
Dividend yield
1.70% 
1.64% 
1.72% 
Volatility
33.00% 
33.00% 
33.00% 
Expected term
8 years 
8 years 
8 years 
INCENTIVE PLANS (Summary of Our Stock Option/SOSAR Activity) (Details) (Employee Stock Options [Member], USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Employee Stock Options [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Number of Shares, Outstanding at January 1, 2015
4,786,305 
Number of Shares, Granted
161,310 
Number of Shares, Exercised
(1,890,028)
Number of Shares, Forfeited or expired
(4,838)
Number of Shares, Outstanding at December 31, 2015
3,052,749 
Number of Shares, Vested and expected to vest
3,038,898 
Number of Shares, Exercisable at December 31, 2015
2,602,447 
Weighted-average Exercise Price, Outstanding at January 1, 2015
$ 59.65 
Weighted-average Exercise Price, Granted
$ 79.41 
Weighted-average Exercise Price, Exercised
$ 63.48 
Weighted-average Exercise Price, Forfeited or expired
$ 64.48 
Weighted-average Exercise Price, Outstanding at December 31, 2015
$ 58.32 
Weighted-average Exercise Price, Vested and expected to vest
$ 58.27 
Weighted-average Exercise Price, Exercisable at December 31, 2015
$ 56.65 
Weighted-average Remaining Contractual Life (Years), Outstanding
4 years 4 months 10 days 
Weighted-average Remaining Contractual Life (Years), Vested and expected to vest
4 years 4 months 6 days 
Weighted-average Remaining Contractual Life (Years), Exercisable at December 31, 2015
3 years 8 months 12 days 
Aggregate Intrinsic Value, Outstanding at December 31, 2015
$ 118,401 
Aggregate Intrinsic Value, Vested and expected to vest
118,043 
Aggregate Intrinsic Value, Exercisable at December 31, 2015
$ 106,100 
INCENTIVE PLANS (Aggregate Intrinsic Values Of Options Exercised) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
INCENTIVE PLANS [Abstract]
 
 
 
Aggregate intrinsic value of options/SOSARs exercised
$ 43,620 
$ 7,372 
$ 4,563 
INCENTIVE PLANS (Cash and Stock Consideration Received and Tax Benefit Realized from Stock Option/Sosar Exercises and Compensation Cost Recorded) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
INCENTIVE PLANS [Abstract]
 
 
 
Cash and stock consideration received from exercises
$ 72,884 
$ 23,199 
$ 17,156 
Tax benefit from exercises
16,920 
2,844 
1,770 
Compensation cost
$ 2,221 
$ 4,650 
$ 3,936 
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $)
1 Months Ended 12 Months Ended
May 31, 2007
entity
mi
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
Expenditures under the noncapital purchase commitments
 
$ 76,178,000 
$ 65,582,000 
$ 83,699,000 
 
Commitments of minimum royalties under mineral leases
 
217,380,000 
 
 
 
Expenditures for mineral royalties under mineral leases
 
58,048,000 
49,685,000 
53,768,000 
 
Unrecognized tax benefits
 
8,447,000 
7,057,000 
12,155,000 
13,550,000 
Number of other companies to perform a Remedial Investigation/ Feasibility Study related to the Lower Passaic River Clean-Up lawsuit
70 
 
 
 
 
Number of miles of the River used in the Remedial Investigation/Feasibility Study
17 
 
 
 
 
Texas Brine and Occidental Chemical Co [Member]
 
 
 
 
 
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
Total amount of damages claimed
 
500,000,000 
 
 
 
Cooperating Parties Group [Member]
 
 
 
 
 
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
Estimated operation and maintenance costs
 
93,000,000 
 
 
 
Estimated operation and maintenance costs, Period
 
30 years 
 
 
 
Minimum [Member] |
EPA [Member]
 
 
 
 
 
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
Estimated implementation costs
 
950,000,000 
 
 
 
Minimum [Member] |
Cooperating Parties Group [Member]
 
 
 
 
 
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
Estimated implementation costs
 
475,000,000 
 
 
 
Maximum [Member] |
EPA [Member]
 
 
 
 
 
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
Estimated implementation costs
 
1,730,000,000 
 
 
 
Maximum [Member] |
Cooperating Parties Group [Member]
 
 
 
 
 
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
Estimated implementation costs
 
725,000,000 
 
 
 
Standby Letters of Credit [Member]
 
 
 
 
 
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
Other Liabilities
 
38,864,000 
 
 
 
Property, Plant and Equipment [Member]
 
 
 
 
 
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
Unconditional purchase obligations
 
146,864,000 
 
 
 
Noncapital [Member]
 
 
 
 
 
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
Unconditional purchase obligations
 
$ 48,602,000 
 
 
 
COMMITMENTS AND CONTINGENCIES (Commitments Due) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Property, Plant and Equipment [Member]
 
Recorded Unconditional Purchase Obligation [Line Items]
 
2016
$ 67,560 
Thereafter
79,304 
Total
146,864 
Noncapital [Member]
 
Recorded Unconditional Purchase Obligation [Line Items]
 
2016
14,361 
2017-2018
17,564 
2019–2020
11,677 
Thereafter
5,000 
Total
$ 48,602 
COMMITMENTS AND CONTINGENCIES (Minimum royalties under mineral leases) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
 
2016
$ 21,479 
2017–2018
37,710 
2019–2020
25,380 
Thereafter
132,811 
Total
$ 217,380 
EQUITY (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
EQUITY [Abstract]
 
 
 
Common stock, par value
$ 1 
$ 1 
 
Common stock issued in connection with business acquisitions
 
715,004 
 
Shares of common stock issued to trustee under 401(k) savings and retirement plan
 
485,306 
71,208 
Net proceeds from issuance of common stock to the trustee under 401(k) savings and retirement plan
 
$ 30,620 
$ 3,821 
Number of shares held in treasury
Number of treasury shares purchased and retired
228,000 
 
 
Cost of treasury shares purchased and retired
$ 21,475 
 
 
Number of treasury shares purchased
 
Shares remaining under the current authorization repurchase program
3,183,416 
 
 
OTHER COMPREHENSIVE INCOME (Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
OTHER COMPREHENSIVE INCOME [Abstract]
 
 
 
 
Cash flow hedges
$ (14,494)
$ (20,322)
$ (25,178)
 
Pension and postretirement plans
(105,575)
(141,392)
(74,453)
 
Total
$ (120,069)
$ (161,714)
$ (99,631)
$ (225,517)
OTHER COMPREHENSIVE INCOME (Changes In AOCI Net Of Tax) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
AOCI, Net of Tax, Beginning Balance
$ (161,714)
$ (99,631)
$ (225,517)
Other comprehensive income (loss) before reclassifications
23,832 
(69,051)
111,883 
Amounts reclassified from AOCI
17,813 
6,968 
14,003 
Other comprehensive income (loss)
41,645 
(62,083)
125,886 
AOCI, Net of Tax, Ending Balance
(120,069)
(161,714)
(99,631)
Reclassification Adjustment for Cash Flow Hedge Losses [Member]
 
 
 
AOCI, Net of Tax, Beginning Balance
(20,322)
(25,178)
(28,170)
Other comprehensive income (loss) before reclassifications
Amounts reclassified from AOCI
5,828 
4,856 
2,992 
Other comprehensive income (loss)
5,828 
4,856 
2,992 
AOCI, Net of Tax, Ending Balance
(14,494)
(20,322)
(25,178)
Amortization of Pension and Postretirement Plan Actuarial Loss and Prior Service Cost [Member]
 
 
 
AOCI, Net of Tax, Beginning Balance
(141,392)
(74,453)
(197,347)
Other comprehensive income (loss) before reclassifications
23,832 
(69,051)
111,883 
Amounts reclassified from AOCI
11,985 
2,112 
11,011 
Other comprehensive income (loss)
35,817 
(66,939)
122,894 
AOCI, Net of Tax, Ending Balance
$ (105,575)
$ (141,392)
$ (74,453)
OTHER COMPREHENSIVE INCOME (Reclassification Of Amounts From Other Comprehensive Income Loss To Earnings) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Selling, administrative and general expenses
 
 
 
 
 
 
 
 
$ 286,844 
$ 272,288 
$ 259,427 
(Benefit from) provision for income taxes
 
 
 
 
 
 
 
 
94,943 
91,692 
(24,459)
Net earnings
88,888 
123,805 
48,162 
(39,678)
38,022 1
66,939 1
45,967 1
53,995 1
221,177 
204,923 
24,382 
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
 
 
 
 
 
 
 
17,813 
6,968 
14,003 
Reclassification Adjustment for Cash Flow Hedge Losses [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
9,759 
7,988 
5,077 
(Benefit from) provision for income taxes
 
 
 
 
 
 
 
 
(3,931)
(3,132)
(2,085)
Net earnings
 
 
 
 
 
 
 
 
5,828 2
4,856 2
2,992 2
Amortization of Pension and Postretirement Plan Actuarial Loss and Prior Service Cost [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of revenues
 
 
 
 
 
 
 
 
15,916 
2,789 
14,516 
Selling, administrative and general expenses
 
 
 
 
 
 
 
 
3,608 
688 
3,616 
(Benefit from) provision for income taxes
 
 
 
 
 
 
 
 
(7,539)
(1,365)
(7,121)
Net earnings
 
 
 
 
 
 
 
 
$ 11,985 3
$ 2,112 3
$ 11,011 3
SEGMENT REPORTING (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Number of operating segments
 
 
Number of reportable segments
 
 
Radius for delivering product, minimum
20 
 
 
Radius for delivering product, maximum
25 
 
 
Equity method investments
$ 22,967 
$ 22,924 
$ 22,962 
Concrete [Member]
 
 
 
Number Of States In Which Segments Serve
 
 
Percentage of product weight attributable to Aggregates
80.00% 
 
 
Asphalt Mix [Member]
 
 
 
Number Of States In Which Segments Serve
 
 
Percentage of product weight attributable to Aggregates
95.00% 
 
 
Aggregates [Member]
 
 
 
Number Of States In Which Segments Serve
20 
 
 
Number Of Additional States Served
 
 
Nondomestic [Member]
 
 
 
Long-lived assets
160,125 
139,427 
140,504 
Nondomestic [Member] |
Aggregates [Member]
 
 
 
Product sales
$ 11,408 
$ 14,699 
$ 12,339 
SEGMENT REPORTING (Segment Financial Disclosure) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2015
Capital expenditures [Member]
Dec. 31, 2014
Capital expenditures [Member]
Dec. 31, 2013
Capital expenditures [Member]
Dec. 31, 2015
Identifiable assets [Member]
Dec. 31, 2014
Identifiable assets [Member]
Dec. 31, 2013
Identifiable assets [Member]
Dec. 31, 2015
Segment sales [Member]
Dec. 31, 2014
Segment sales [Member]
Dec. 31, 2013
Segment sales [Member]
Dec. 31, 2015
Aggregates [Member]
Dec. 31, 2014
Aggregates [Member]
Dec. 31, 2013
Aggregates [Member]
Dec. 31, 2015
Aggregates [Member]
Capital expenditures [Member]
Dec. 31, 2014
Aggregates [Member]
Capital expenditures [Member]
Dec. 31, 2013
Aggregates [Member]
Capital expenditures [Member]
Dec. 31, 2015
Aggregates [Member]
Identifiable assets [Member]
Dec. 31, 2014
Aggregates [Member]
Identifiable assets [Member]
Dec. 31, 2013
Aggregates [Member]
Identifiable assets [Member]
Dec. 31, 2015
Aggregates [Member]
Segment sales [Member]
Dec. 31, 2014
Aggregates [Member]
Segment sales [Member]
Dec. 31, 2013
Aggregates [Member]
Segment sales [Member]
Dec. 31, 2015
Aggregates [Member]
Intersegment sales [Member]
Dec. 31, 2014
Aggregates [Member]
Intersegment sales [Member]
Dec. 31, 2013
Aggregates [Member]
Intersegment sales [Member]
Jan. 31, 2015
Asphalt Mix [Member]
property
Dec. 31, 2015
Asphalt Mix [Member]
Dec. 31, 2014
Asphalt Mix [Member]
Dec. 31, 2013
Asphalt Mix [Member]
Dec. 31, 2015
Asphalt Mix [Member]
Capital expenditures [Member]
Dec. 31, 2014
Asphalt Mix [Member]
Capital expenditures [Member]
Dec. 31, 2013
Asphalt Mix [Member]
Capital expenditures [Member]
Dec. 31, 2015
Asphalt Mix [Member]
Identifiable assets [Member]
Dec. 31, 2014
Asphalt Mix [Member]
Identifiable assets [Member]
Dec. 31, 2013
Asphalt Mix [Member]
Identifiable assets [Member]
Dec. 31, 2015
Asphalt Mix [Member]
Segment sales [Member]
Dec. 31, 2014
Asphalt Mix [Member]
Segment sales [Member]
Dec. 31, 2013
Asphalt Mix [Member]
Segment sales [Member]
Dec. 31, 2015
Concrete [Member]
Dec. 31, 2014
Concrete [Member]
Dec. 31, 2013
Concrete [Member]
Dec. 31, 2015
Concrete [Member]
Capital expenditures [Member]
Dec. 31, 2014
Concrete [Member]
Capital expenditures [Member]
Dec. 31, 2013
Concrete [Member]
Capital expenditures [Member]
Dec. 31, 2015
Concrete [Member]
Identifiable assets [Member]
Dec. 31, 2014
Concrete [Member]
Identifiable assets [Member]
Dec. 31, 2013
Concrete [Member]
Identifiable assets [Member]
Dec. 31, 2015
Concrete [Member]
Segment sales [Member]
Dec. 31, 2014
Concrete [Member]
Segment sales [Member]
Dec. 31, 2013
Concrete [Member]
Segment sales [Member]
Dec. 31, 2015
Calcium [Member]
Dec. 31, 2014
Calcium [Member]
Dec. 31, 2013
Calcium [Member]
Dec. 31, 2015
Calcium [Member]
Capital expenditures [Member]
Dec. 31, 2014
Calcium [Member]
Capital expenditures [Member]
Dec. 31, 2013
Calcium [Member]
Capital expenditures [Member]
Dec. 31, 2015
Calcium [Member]
Identifiable assets [Member]
Dec. 31, 2014
Calcium [Member]
Identifiable assets [Member]
Dec. 31, 2013
Calcium [Member]
Identifiable assets [Member]
Dec. 31, 2015
Calcium [Member]
Segment sales [Member]
Dec. 31, 2014
Calcium [Member]
Segment sales [Member]
Dec. 31, 2013
Calcium [Member]
Segment sales [Member]
Dec. 31, 2015
Calcium [Member]
Intersegment sales [Member]
Dec. 31, 2014
Calcium [Member]
Intersegment sales [Member]
Dec. 31, 2013
Calcium [Member]
Intersegment sales [Member]
Dec. 31, 2015
Other [Member]
Dec. 31, 2014
Other [Member]
Dec. 31, 2013
Other [Member]
Dec. 31, 2015
Corporate [Member]
Dec. 31, 2014
Corporate [Member]
Dec. 31, 2013
Corporate [Member]
Dec. 31, 2015
Corporate [Member]
Capital expenditures [Member]
Dec. 31, 2014
Corporate [Member]
Capital expenditures [Member]
Dec. 31, 2013
Corporate [Member]
Capital expenditures [Member]
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$ 857,285 
$ 1,038,460 
$ 895,143 
$ 631,293 
$ 755,027 
$ 873,579 
$ 791,143 
$ 574,420 
$ 3,422,181 
$ 2,994,169 
$ 2,770,709 
 
 
 
 
 
 
 
$ 3,616,298 
$ 3,192,787 
$ 3,003,435 
 
 
 
 
 
 
 
 
 
$ 2,777,758 1
$ 2,346,411 1
$ 2,025,026 1
$ (194,117)
$ (189,393)
$ (185,385)
 
 
 
 
 
 
 
 
 
 
$ 530,692 2
$ 445,538 2
$ 407,657 2
 
 
 
 
 
 
 
 
 
$ 299,252 2 3
$ 375,806 2 3
$ 471,748 2 3
 
 
 
 
 
 
 
 
 
$ 8,596 4
$ 25,032 4
$ 99,004 4
$ 0 
$ (9,225)
$ (47,341)
 
 
 
 
 
 
 
 
 
Gross profit
253,929 
291,290 
234,449 
77,865 
169,660 
209,042 
174,788 
34,092 
857,533 
587,582 
426,880 
 
 
 
 
 
 
 
 
 
 
755,666 
544,070 
413,301 
 
 
 
 
 
 
 
 
 
 
 
 
 
78,225 2
38,080 2
32,704 2
 
 
 
 
 
 
 
 
 
20,152 2 3
2,233 2 3
(24,774)2 3
 
 
 
 
 
 
 
 
 
3,490 4
3,199 4
5,649 4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, depletion, accretion and amortization
 
 
 
 
 
 
 
 
274,823 
279,497 
307,108 
 
 
 
 
 
 
 
 
 
 
228,466 
227,042 
224,808 
 
 
 
 
 
 
 
 
 
 
 
 
 
16,378 2
10,719 2
8,697 2
 
 
 
 
 
 
 
 
 
11,374 2 3
19,892 2 3
32,996 2 3
 
 
 
 
 
 
 
 
 
679 4
1,554 4
18,093 4
 
 
 
 
 
 
 
 
 
 
 
 
17,926 
20,290 
22,514 
 
 
 
 
 
 
Cash items
284,060 
 
 
 
141,273 
 
 
 
284,060 
141,273 
193,738 
275,478 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$ 8,301,632 
 
 
 
$ 8,041,097 
 
 
 
$ 8,301,632 
$ 8,041,097 
$ 8,233,114 
 
$ 304,024 5
$ 223,097 5
$ 284,618 5
$ 7,995,691 6
$ 7,808,326 6
$ 7,985,169 6
 
 
 
 
 
 
$ 269,014 5
$ 180,026 5
$ 253,000 5
$ 7,540,273 6
$ 7,311,336 6
$ 7,006,724 6
 
 
 
 
 
 
 
 
 
 
$ 8,111 2 5
$ 20,796 2 5
$ 17,089 2 5
$ 251,716 2 6
$ 264,172 2 6
$ 195,046 2 6
 
 
 
 
 
 
$ 19,053 2 3 5
$ 19,542 2 3 5
$ 13,054 2 3 5
$ 198,193 2 3 6
$ 227,000 2 3 6
$ 370,103 2 3 6
 
 
 
 
 
 
$ 0 4 5
$ 201 4 5
$ 198 4 5
$ 5,509 4 6
$ 5,818 4 6
$ 413,296 4 6
 
 
 
 
 
 
 
 
 
$ 21,881 
$ 91,498 
$ 54,207 
$ 7,846 5
$ 2,532 5
$ 1,277 5
Number of asphalt mix plants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL CASH FLOW INFORMATION (Supplemental Information Referable to Consolidated Statements of Cash Flows) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]
 
 
 
Interest (exclusive of amount capitalized)
$ 208,288 
$ 241,841 
$ 196,794 
Income taxes
53,623 
79,862 
30,938 
Accrued liabilities for purchases of property, plant & equipment
31,883 
17,120 
18,864 
Liabilities assumed
2,645 
26,622 
232 
Fair value of noncash assets and liabilities exchanged
20,000 
2,414 
Fair value of equity consideration
$ 0 
$ 45,185 
$ 0 
ASSET RETIREMENT OBLIGATIONS (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Reclamation activities
$ 18,048,000 
$ 26,547,000 
California [Member]
 
 
Reclamation activities
$ 13,117,000 
$ 18,637,000 
Adjacent aggregates sites
 
Property, acres
90 
 
ASSET RETIREMENT OBLIGATIONS (Asset Retirement Obligations Operating Costs) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
ASSET RETIREMENT OBLIGATIONS [Abstract]
 
 
 
Accretion
$ 11,474 
$ 11,601 
$ 10,685 
Depreciation
6,515 
4,462 
3,527 
Total
$ 17,989 
$ 16,063 
$ 14,212 
ASSET RETIREMENT OBLIGATIONS (Reconciliations Of Asset Retirement Obligations) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
ASSET RETIREMENT OBLIGATIONS [Abstract]
 
 
 
Balance at beginning of period
$ 226,565 
$ 228,234 
 
Liabilities incurred
6,235 
9,130 
 
Liabilities settled
(18,048)
(26,547)
 
Accretion expense
11,474 
11,601 
10,685 
Revisions, net
368 
4,147 
 
Balance at end of period
$ 226,594 
$ 226,565 
$ 228,234 
GOODWILL AND INTANGIBLE ASSETS (Changes in Carrying Amount of Goodwill by Reportable Segment) (Details) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Goodwill
 
 
$ 3,094,824,000 
$ 3,094,824,000 
$ 3,081,521,000 
$ 3,086,716,000 
Goodwill of divested businesses
(4,521,000)
(674,000)
 
 
(5,195,000)1
 
Goodwill of acquired businesses
 
 
13,303,000 1
 
 
Aggregates [Member]
 
 
 
 
 
 
Goodwill
 
 
3,003,191,000 
3,003,191,000 
2,989,888,000 
2,995,083,000 
Goodwill of divested businesses
 
 
 
 
(5,195,000)1
 
Goodwill of acquired businesses
 
 
 
13,303,000 1
 
 
Asphalt Mix [Member]
 
 
 
 
 
 
Goodwill
 
 
91,633,000 
91,633,000 
91,633,000 
91,633,000 
Goodwill of divested businesses
 
 
 
 
1
 
Goodwill of acquired businesses
 
 
 
1
 
 
Concrete [Member]
 
 
 
 
 
 
Goodwill
 
 
Goodwill of divested businesses
 
 
 
 
1
 
Goodwill of acquired businesses
 
 
 
1
 
 
Calcium [Member]
 
 
 
 
 
 
Goodwill
 
 
Goodwill of divested businesses
 
 
 
 
1
 
Goodwill of acquired businesses
 
 
 
$ 0 1
 
 
GOODWILL AND INTANGIBLE ASSETS (Gross Carrying Amount and Accumulated Amortization by Major Intangible Asset Class) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross carrying amount
$ 859,017 
$ 835,667 
 
Accumulated amortization
(92,438)
(77,424)
 
Total Intangible Assets Subject to Amortization, net
766,579 
758,243 
 
Intangible Assets with Indefinite Lives
 
Total Intangible Assets, net
766,579 
758,243 
 
Amortization Expense for the Year
15,618 
10,966 
11,732 
Goodwill, Impairment Loss
Impairment of Intangible Assets (Excluding Goodwill)
2,858 
Contractual Rights In Place [Member]
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross carrying amount
735,935 
719,100 
 
Accumulated amortization
(65,641)
(54,019)
 
Noncompetition Agreements [Member]
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross carrying amount
2,800 
2,550 
 
Accumulated amortization
(506)
(119)
 
Favorable Lease Agreements [Member]
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross carrying amount
16,677 
16,677 
 
Accumulated amortization
(4,002)
(3,489)
 
Permitting Permitting Compliance And Zoning Rights [Member]
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross carrying amount
99,513 
93,273 
 
Accumulated amortization
(20,350)
(18,270)
 
Other [Member]
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross carrying amount
4,092 1
4,067 1
 
Accumulated amortization
$ (1,939)1
$ (1,527)1
 
GOODWILL AND INTANGIBLE ASSETS (Estimated Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
GOODWILL AND INTANGIBLE ASSETS [Abstract]
 
2016
$ 19,946 
2017
20,797 
2018
21,702 
2019
19,746 
2020
$ 20,247 
ACQUISITIONS AND DIVESTITURES (Narrative) (Details) (USD $)
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Jun. 30, 2013
Aggregates [Member]
property
Mar. 31, 2013
Aggregates [Member]
property
Dec. 31, 2014
Aggregates [Member]
Dec. 31, 2013
Aggregates [Member]
Dec. 31, 2015
Aggregates [Member]
Arizona and New Mexico [Member]
property
Mar. 31, 2014
Aggregates [Member]
Maryland [Member]
Mar. 31, 2014
Aggregates [Member]
Tennessee [Member]
Dec. 31, 2014
Concrete [Member]
Dec. 31, 2013
Concrete [Member]
Dec. 31, 2015
Concrete [Member]
Arizona and New Mexico [Member]
property
Dec. 31, 2014
Asphalt Mix [Member]
Dec. 31, 2013
Asphalt Mix [Member]
Dec. 31, 2015
Asphalt Mix [Member]
Arizona [Member]
property
Mar. 31, 2014
Cement And Concrete [Member]
Dec. 31, 2014
Cement And Concrete [Member]
Dec. 31, 2015
Contractual Rights In Place [Member]
Dec. 31, 2014
Contractual Rights In Place [Member]
Dec. 31, 2015
Unit Of Production Method [Member]
Aggregates and Concrete [Member]
Arizona and New Mexico [Member]
Dec. 31, 2015
Straight Line Method [Member]
Asphalt Mix [Member]
Arizona [Member]
Mar. 31, 2015
California ready-mixed concrete operations [Member]
California [Member]
Dec. 31, 2015
California ready-mixed concrete operations [Member]
California [Member]
property
Dec. 31, 2014
Asphalt plants and Aggregates facilities [Member]
Asphalt And Aggregates [Member]
California [Member]
property
Dec. 31, 2014
Aggregates sites [Member]
Aggregates [Member]
California [Member]
property
Dec. 31, 2014
Aggregates sites [Member]
Aggregates [Member]
Arizona and New Mexico [Member]
property
Dec. 31, 2014
Aggregates sites [Member]
Aggregates [Member]
Delaware [Member]
property
Dec. 31, 2014
Rail-connected aggregates operation [Member]
Dallas/Fort Worth [Member]
item
Dec. 31, 2014
Permitted aggregates quarry [Member]
Alabama [Member]
item
Dec. 31, 2014
Distribution yards [Member]
Dallas/Fort Worth [Member]
property
Sep. 30, 2013
Volumetric production payment (VPP) [Member]
Significant Acquisitions and Disposals [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from sale of property, plant & equipment
$ 11,261,000 
 
 
$ 8,218,000 
$ 26,028,000 
$ 17,576,000 
 
 
 
 
 
$ 10,727,000 
$ 5,820,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total consideration
 
 
 
47,198,000 
331,836,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payment for acquisition of businesses
 
 
 
27,198,000 
284,237,000 
89,951,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exchanges of real property and businesses
 
 
 
20,000,000 
2,414,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid
 
 
 
27,198,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of facilities divested
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 
 
 
 
 
 
 
 
 
Number of facilities acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13 
 
 
 
 
 
 
 
 
 
 
Number of distribution yard acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortizable intangible assets recognized
 
 
 
 
128,286,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36,921,000 
10,317,000 
7,168,000 
 
 
 
 
 
 
 
 
 
 
Estimated weighted-average amortization period of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40 years 
34 years 
20 years 
 
 
 
 
 
 
 
 
 
 
Intangible assets amortization period, tax purposes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15 years 
15 years 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
 
 
 
13,303,000 1
 
 
 
13,303,000 1
 
 
 
 
1
 
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from sale of businesses, net of transaction costs
 
34,743,000 
5,133,000 
721,359,000 
51,604,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
721,359,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of properties and businesses
9,027,000 
21,183,000 
2,802,000 
9,927,000 
244,222,000 
39,250,000 
 
 
 
 
 
168,000 
5,790,000 
 
 
 
 
 
 
227,910,000 
227,910,000 
 
 
 
 
5,886,000 
 
 
 
 
 
 
 
 
 
Supply agreement period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of property, plant & equipment
 
 
 
289,262,000 
224,852,000 
275,380,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross proceeds from sale of future production
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
154,000,000 
Business Acquisition, Transaction Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
905,000 
Capital gains with deferred income taxes
 
 
 
665,057,000 
661,697,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration transferred, common stock
 
 
 
45,185,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock issued in connection with business acquisitions
 
 
 
 
715,004 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill of dispositions
 
4,521,000 
674,000 
 
 
5,195,000 1
 
 
 
5,195,000 1
 
 
 
 
1
 
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Withdrawl liability
 
$ 4,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ACQUISITIONS AND DIVESTITURES (Comprehensive Income Actual Results) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
ACQUISITIONS AND DIVESTITURES [Abstract]
 
Total revenues
$ 67,002 
Net earnings
$ 1,938 
ACQUISITIONS AND DIVESTITURES (Schedule Of Business Acquisitions) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
ACQUISITIONS AND DIVESTITURES [Abstract]
 
 
Cash
$ 27,198 
 
Exchanges of real property and businesses
20,000 
2,414 
Total fair value of purchase consideration
47,198 
331,836 
Accounts and notes receivable, net
2,105 
 
Inventories
3,559 
 
Other current assets
358 
 
Property, plant & equipment, net
26,087 
 
Contractual rights in place
17,484 
 
Noncompetition agreement
250 
 
Liabilities assumed
(2,645)
 
Net identifiable assets acquired
47,198 
 
Goodwill
$ 0 
$ 13,303 1
ACQUISITIONS AND DIVESTITURES (Classification Of Assets And Liabilities Held For Sale) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
ACQUISITIONS AND DIVESTITURES [Abstract]
 
 
Current assets
$ 0 
$ 1,773 
Property, plant & equipment, net
12,764 
Other intangible assets, net
647 
Total assets held for sale
15,184 
Asset retirement obligations
520 
Total liabilities of assets held for sale
$ 0 
$ 520 
UNAUDITED SUPPLEMENTARY DATA (Details) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Total revenues
$ 857,285,000 
$ 1,038,460,000 
$ 895,143,000 
$ 631,293,000 
$ 755,027,000 
$ 873,579,000 
$ 791,143,000 
$ 574,420,000 
 
 
 
$ 3,422,181,000 
$ 2,994,169,000 
$ 2,770,709,000 
Gross profit
253,929,000 
291,290,000 
234,449,000 
77,865,000 
169,660,000 
209,042,000 
174,788,000 
34,092,000 
 
 
 
857,533,000 
587,582,000 
426,880,000 
Operating earnings
173,037,000 
212,206,000 
153,776,000 
10,759,000 
99,892,000 1
140,331,000 1
103,246,000 1
194,669,000 1
 
 
 
549,778,000 
538,138,000 
190,404,000 
Earnings (loss) from continuing operations
93,560,000 
126,202,000 
49,819,000 
(36,667,000)
38,349,000 1
67,781,000 1
46,511,000 1
54,505,000 1
 
 
 
232,914,000 
207,146,000 
20,756,000 
Net earnings (loss)
88,888,000 
123,805,000 
48,162,000 
(39,678,000)
38,022,000 1
66,939,000 1
45,967,000 1
53,995,000 1
 
 
 
221,177,000 
204,923,000 
24,382,000 
Basic earnings (loss) per share from continuing operations
$ 0.70 
$ 0.95 
$ 0.37 
$ (0.28)
$ 0.29 
$ 0.51 
$ 0.35 
$ 0.42 
 
 
 
$ 1.75 
$ 1.58 
$ 0.16 
Diluted earnings (loss) per share from continuing operations
$ 0.69 
$ 0.93 
$ 0.37 
$ (0.28)
$ 0.29 
$ 0.51 
$ 0.35 
$ 0.41 
 
 
 
$ 1.72 
$ 1.56 
$ 0.16 
Basic net earnings (loss) per share
$ 0.67 
$ 0.93 
$ 0.36 
$ (0.30)
$ 0.29 
$ 0.51 
$ 0.35 
$ 0.41 
 
 
 
$ 1.66 
$ 1.56 
$ 0.19 
Diluted net earnings (loss) per share
$ 0.65 
$ 0.91 
$ 0.36 
$ (0.30)
$ 0.28 
$ 0.50 
$ 0.35 
$ 0.41 
 
 
 
$ 1.64 
$ 1.54 
$ 0.19 
Gain on sale of properties and businesses
 
 
 
 
 
 
 
 
9,027,000 
21,183,000 
2,802,000 
9,927,000 
244,222,000 
39,250,000 
Cement And Concrete [Member]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of properties and businesses
 
 
 
 
 
 
 
$ 227,910,000 
 
 
 
 
$ 227,910,000