VULCAN MATERIALS CO, 10-Q filed on 8/3/2016
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2016
Jul. 29, 2016
Document and Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
VMC 
 
Entity Registrant Name
Vulcan Materials CO 
 
Entity Central Index Key
0001396009 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
133,071,629 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Assets
 
 
 
Cash and cash equivalents
$ 91,902 
$ 284,060 
$ 74,736 
Restricted cash
1,150 
Accounts and notes receivable
 
 
 
Accounts and notes receivable, gross
537,127 
423,600 
495,781 
Less: Allowance for doubtful accounts
(4,332)
(5,576)
(5,370)
Accounts and notes receivable, net
532,795 
418,024 
490,411 
Inventories
 
 
 
Finished products
295,405 
297,925 
292,932 
Raw materials
25,366 
21,765 
21,610 
Products in process
2,223 
1,008 
1,461 
Operating supplies and other
24,872 
26,375 
25,825 
Inventories
347,866 
347,073 
341,828 
Current deferred income taxes
39,562 
Prepaid expenses
50,844 
34,284 
75,663 
Total current assets
1,023,407 
1,084,591 
1,022,200 
Investments and long-term receivables
38,924 
40,558 
41,603 
Property, plant & equipment
 
 
 
Property, plant & equipment, cost
7,052,051 
6,891,287 
6,752,916 
Reserve for depreciation, depletion & amortization
(3,834,680)
(3,734,997)
(3,637,392)
Property, plant & equipment, net
3,217,371 
3,156,290 
3,115,524 
Goodwill
3,094,824 
3,094,824 
3,094,824 
Other intangible assets, net
754,341 
766,579 
767,995 
Other noncurrent assets
161,246 
158,790 
153,737 
Total assets
8,290,113 
8,301,632 
8,195,883 
Liabilities
 
 
 
Current maturities of long-term debt
131 
130 
14,124 
Short-term debt (line of credit)
138,500 
Trade payables and accruals
176,476 
175,729 
190,904 
Other current liabilities
156,071 
177,620 
163,112 
Total current liabilities
332,678 
353,479 
506,640 
Long-term debt
1,982,527 
1,980,334 
1,893,737 
Noncurrent deferred income taxes
683,999 
681,096 
686,171 
Deferred revenue
203,800 
207,660 
211,429 
Other noncurrent liabilities
607,778 
624,875 
670,949 
Total liabilities
3,810,782 
3,847,444 
3,968,926 
Other commitments and contingencies (Note 8)
   
   
   
Equity
 
 
 
Common stock, $1 par value, Authorized 480,000 shares, Outstanding 133,027, 133,172 and 132,984 shares, respectively
133,027 
133,172 
132,984 
Capital in excess of par value
2,826,471 
2,822,578 
2,791,232 
Retained earnings
1,639,267 
1,618,507 
1,453,752 
Accumulated other comprehensive loss
(119,434)
(120,069)
(151,011)
Total equity
4,479,331 
4,454,188 
4,226,957 
Total liabilities and equity
$ 8,290,113 
$ 8,301,632 
$ 8,195,883 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract]
 
 
 
Common stock, par value
$ 1 
$ 1 
$ 1 
Common stock, shares authorized
480,000,000 
480,000,000 
480,000,000 
Common stock, shares outstanding
133,027,000 
133,172,000 
132,984,000 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
Share data in Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
 
 
 
 
Total revenues
$ 956,825,000 
$ 895,143,000 
$ 1,711,552,000 
$ 1,526,436,000 
Cost of revenues
664,641,000 
660,694,000 
1,254,649,000 
1,214,122,000 
Gross profit
292,184,000 
234,449,000 
456,903,000 
312,314,000 
Selling, administrative and general expenses
82,681,000 
69,197,000 
159,149,000 
135,960,000 
Gain on sale of property, plant & equipment and businesses
356,000 
249,000 
911,000 
6,624,000 
Business interruption claims recovery
10,962,000 
10,962,000 
Impairment of long-lived assets
(860,000)
(5,190,000)
(10,506,000)
(5,190,000)
Restructuring charges
(1,280,000)
(320,000)
(4,098,000)
Other operating expense, net
(6,175,000)
(5,255,000)
(20,094,000)
(9,156,000)
Operating earnings
213,786,000 
153,776,000 
278,707,000 
164,534,000 
Other nonoperating income (expense), net
29,000 
(439,000)
(666,000)
542,000 
Interest expense, net
(33,333,000)
(83,651,000)
(67,065,000)
(146,132,000)
Earnings from continuing operations before income taxes
180,482,000 
69,686,000 
210,976,000 
18,944,000 
Provision for income taxes
54,200,000 
19,867,000 
63,964,000 
5,791,000 
Earnings from continuing operations
126,282,000 
49,819,000 
147,012,000 
13,153,000 
Loss on discontinued operations, net of tax
(2,532,000)
(1,657,000)
(4,338,000)
(4,669,000)
Net earnings
123,750,000 
48,162,000 
142,674,000 
8,484,000 
Other comprehensive income, net of tax
 
 
 
 
Reclassification adjustment for cash flow hedges
301,000 
3,077,000 
595,000 
5,325,000 
Amortization of actuarial loss and prior service cost for benefit plans
20,000 
2,697,000 
40,000 
5,378,000 
Other comprehensive income
321,000 
5,774,000 
635,000 
10,703,000 
Comprehensive income
124,071,000 
53,936,000 
143,309,000 
19,187,000 
Basic earnings (loss) per share
 
 
 
 
Continuing operations
$ 0.95 
$ 0.37 
$ 1.10 
$ 0.10 
Discontinued operations
$ (0.02)
$ (0.01)
$ (0.03)
$ (0.04)
Net earnings
$ 0.93 
$ 0.36 
$ 1.07 
$ 0.06 
Diluted earnings (loss) per share
 
 
 
 
Continuing operations
$ 0.93 
$ 0.37 
$ 1.09 
$ 0.10 
Discontinued operations
$ (0.02)
$ (0.01)
$ (0.04)
$ (0.04)
Net earnings
$ 0.91 
$ 0.36 
$ 1.05 
$ 0.06 
Weighted-average common shares outstanding
 
 
 
 
Basic
133,419 
133,103 
133,619 
132,882 
Assuming dilution
135,395 
135,234 
135,370 
134,689 
Cash dividends per share of common stock
$ 0.20 
$ 0.10 
$ 0.40 
$ 0.20 
Depreciation, depletion, accretion and amortization
$ 71,908,000 
$ 68,384,000 
$ 141,314,000 
$ 135,108,000 
Effective tax rate from continuing operations
30.00% 
28.50% 
30.30% 
30.60% 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Operating Activities
 
 
Net earnings
$ 142,674,000 
$ 8,484,000 
Adjustments to reconcile net earnings to net cash provided by operating activities
 
 
Depreciation, depletion, accretion and amortization
141,314,000 
135,108,000 
Net gain on sale of property, plant & equipment and businesses
(911,000)
(6,624,000)
Contributions to pension plans
(4,737,000)
(2,822,000)
Share-based compensation
10,832,000 
9,679,000 
Excess tax benefits from share-based compensation
(23,749,000)
(11,457,000)
Deferred tax provision (benefit)
2,592,000 
(11,656,000)
Cost of debt purchase
67,075,000 
Changes in assets and liabilities before initial effects of business acquisitions and dispositions
(135,024,000)
(109,790,000)
Other, net
(30,458,000)
(13,360,000)
Net cash provided by operating activities
102,533,000 
64,637,000 
Investing Activities
 
 
Purchases of property, plant & equipment
(199,764,000)
(148,721,000)
Proceeds from sale of property, plant & equipment
2,427,000 
3,419,000 
Payment for businesses acquired, net of acquired cash
(1,611,000)
(21,387,000)
Decrease in restricted cash
1,150,000 
Other, net
1,862,000 
(334,000)
Net cash used for investing activities
(195,936,000)
(167,023,000)
Financing Activities
 
 
Proceeds from line of credit
3,000,000 
284,000,000 
Payments of line of credit
(3,000,000)
(145,500,000)
Payment of current maturities and long-term debt
(9,000)
(530,945,000)
Proceeds from issuance of long-term debt
400,000,000 
Debt and line of credit issuance costs
(7,382,000)
Purchases of common stock
(69,156,000)
Dividends paid
(53,338,000)
(26,549,000)
Proceeds from exercise of stock options
50,769,000 
Excess tax benefits from share-based compensation
23,749,000 
11,457,000 
Other, net
(1,000)
(1,000)
Net cash provided by (used for) financing activities
(98,755,000)
35,849,000 
Net decrease in cash and cash equivalents
(192,158,000)
(66,537,000)
Cash and cash equivalents at beginning of year
284,060,000 
141,273,000 
Cash and cash equivalents at end of period
$ 91,902,000 
$ 74,736,000 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 1: summary of significant accounting policies



NATURE OF OPERATIONS



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



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



BASIS OF PRESENTATION



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



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



RECLASSIFICATIONS



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



RESTRUCTURING CHARGES



In 2014, we announced changes to our executive management team, and a new divisional organization structure that was effective January 1, 2015. During the six months ended June 30, 2016 and June 30, 2015, we incurred $320,000 and $4,098,000, respectively, of costs related to these initiatives. Future related charges for these initiatives are estimated to be immaterial.



EARNINGS PER SHARE (EPS)



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







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding

133,419 

 

 

133,103 

 

 

133,619 

 

 

132,882 

 

Dilutive effect of

 

 

 

 

 

 

 

 

 

 

 

   Stock options/SOSARs 1

1,007 

 

 

991 

 

 

940 

 

 

996 

 

   Other stock compensation plans

969 

 

 

1,140 

 

 

811 

 

 

811 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding, assuming dilution

135,395 

 

 

135,234 

 

 

135,370 

 

 

134,689 

 





 

Stock-Only Stock Appreciation Rights (SOSARs)



All dilutive common stock equivalents are reflected in our earnings per share calculations. Antidilutive common stock equivalents are not included in our earnings per share calculations. In periods of loss, shares that otherwise would have been included in our diluted weighted-average common shares outstanding computation are excluded. There were no excluded shares for the periods presented.



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







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Antidilutive common stock equivalents

97 

 

 

556 

 

 

327 

 

 

556 

 

 

 

DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS

Note 2: Discontinued Operations



In 2005, we sold substantially all the assets of our Chemicals business to Basic Chemicals, a subsidiary of Occidental Chemical Corporation. The financial results of the Chemicals business are classified as discontinued operations in the accompanying Condensed Consolidated Statements of Comprehensive Income for all periods presented. There were no revenues from discontinued operations for the periods presented. Results from discontinued operations are as follows:







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

Pretax loss

$       (4,197)

 

 

$       (2,671)

 

 

$       (7,177)

 

 

$       (7,653)

 

Income tax benefit

1,665 

 

 

1,014 

 

 

2,839 

 

 

2,984 

 

Loss on discontinued operations,

 

 

 

 

 

 

 

 

 

 

 

  net of tax

$       (2,532)

 

 

$       (1,657)

 

 

$       (4,338)

 

 

$       (4,669)

 



The losses from discontinued operations noted above include charges related to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business.

 

 

INCOME TAXES
INCOME TAXES

Note 3: Income Taxes



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



In the second quarter of 2016, we recorded income tax expense from continuing operations of $54,200,000 compared to $19,867,000 in the second quarter of 2015. The increase in our income tax expense resulted largely from applying the statutory rate to the increase in our pretax earnings.



For the first six months of 2016, we recorded income tax expense from continuing operations of $63,964,000 compared to $5,791,000 for the first six months of 2015. The increase in our income tax expense resulted largely from applying the statutory rate to the increase in our pretax earnings.



We recognize deferred tax assets and liabilities (which reflect our best assessment of the future taxes we will pay) based on the differences between the 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. With our adoption of Accounting Standards Update 2015-17, “Balance Sheet Classification of Deferred Taxes” as of December 31, 2015, all deferred tax assets and liabilities are presented as noncurrent. We adopted this standard prospectively and as a result, we did not restate periods prior to adoption.



Each quarter we analyze the likelihood that our deferred tax assets will be realized. Realization of the deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character in either the carryback or carryforward period. A valuation allowance is recorded if, based on the weight of all available positive and negative evidence, it is more likely than not (a likelihood of more than 50%) that some portion, or all, of a deferred tax asset will not be realized.



Based on our second quarter 2016 analysis, we believe it is more likely than not that we will realize the benefit of all our deferred tax assets with the exception of certain state net operating loss carryforwards. For 2016, we project deferred tax assets related to state net operating loss carryforwards of $60,131,000, of which $57,841,000 relates to Alabama. The Alabama net operating loss carryforward, if not utilized, would expire in years 20222029. Prior to 2015, we carried a full valuation allowance against this Alabama deferred tax asset as we did not expect to utilize any portion of it. During 2015, we restructured our legal entities which, among other benefits, resulted in a partial release of the valuation allowance in the amount of $4,655,000 during the third quarter of 2015. Our analyses over the last three quarters have confirmed our third quarter 2015 conclusion but resulted in no further reductions of the valuation allowance. We expect to further reduce, or possibly eliminate, this valuation allowance once we have returned to sustained profitability (as defined in our most recent Annual Report on Form 10-K), which we project could occur in the fourth quarter of 2016.



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



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

 

 

DEFERRED REVENUE
DEFERRED REVENUE

Note 4: deferred revenue



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



The VPPs:



§

relate to eight quarries in Georgia and South Carolina

§

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

§

are both time and volume limited

§

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



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



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



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







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Deferred Revenue

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$     212,292 

 

 

$     218,987 

 

 

$     214,060 

 

 

$     219,968 

 

  Amortization of deferred revenue

(2,092)

 

 

(1,558)

 

 

(3,860)

 

 

(2,539)

 

Balance at end of period

$     210,200 

 

 

$     217,429 

 

 

$     210,200 

 

 

$     217,429 

 



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

 

 

FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS

Note 5: Fair Value Measurements



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



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

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

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



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







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Level 1 Fair Value



June 30

 

 

December 31

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

Fair Value

 

 

 

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

 

 

 

  Mutual funds

$        6,389 

 

 

$      11,472 

 

 

$      14,488 

 

  Equities

7,702 

 

 

8,992 

 

 

12,274 

 

Total

$      14,091 

 

 

$      20,464 

 

 

$      26,762 

 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Level 2 Fair Value



June 30

 

 

December 31

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

Fair Value

 

 

 

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

 

 

 

  Money market mutual fund

$        2,134 

 

 

$        2,124 

 

 

$        1,355 

 

Total

$        2,134 

 

 

$        2,124 

 

 

$        1,355 

 



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



Net gains of the Rabbi Trust investments were $535,000 and $184,000 for the six months ended June 30, 2016 and 2015, respectively. The portions of the net gains (losses) related to investments still held by the Rabbi Trusts at June 30, 2016 and 2015 were $(571,000) and $22,000, respectively.



The year-to-date decrease of $6,363,000 in total Rabbi Trust asset fair values at June 30, 2016 is primarily attributable to the elections by several retired executives to receive their distributions from the nonqualified retirement and deferred compensation plans.



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



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







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Period ending June 30, 2016

 

 

Period ending June 30, 2015

 



 

 

 

Impairment

 

 

 

 

 

Impairment

 

in thousands

Level 2 

 

 

Charges

 

 

Level 2

 

 

Charges

 

Fair Value Nonrecurring

 

 

 

 

 

 

 

 

 

 

 

Property, plant & equipment, net

$              0 

 

 

$       1,359 

 

 

$              0 

 

 

$       2,176 

 

Other intangible assets, net

 

 

8,180 

 

 

 

 

2,858 

 

Other assets

 

 

967 

 

 

 

 

156 

 

Total

$              0 

 

 

$     10,506 

 

 

$              0 

 

 

$       5,190 

 



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

 

 

DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS

Note 6: Derivative Instruments



During the normal course of operations, we are exposed to market risks including interest rates, foreign currency exchange rates and commodity prices. From time to time, and consistent with our risk management policies, we use derivative instruments to balance the cost and risk of such expenses. We do not utilize derivative instruments for trading or other speculative purposes.



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



CASH FLOW HEDGES



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



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







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Six Months Ended

 



Location on

 

June 30

 

 

June 30

 

in thousands

Statement

 

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Cash Flow Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss reclassified from AOCI

Interest

 

 

 

 

 

 

 

 

 

 

 

 

  (effective portion)

expense

 

$          (497)

 

 

$       (5,094)

 

 

$          (983)

 

 

$       (8,815)

 



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



For the 12-month period ending June 30, 2017, we estimate that $2,092,000 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 was amortized as a reduction to interest expense over the terms of the related debt using the effective interest method.



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







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Six Months Ended

 



 

 

June 30

 

 

June 30

 

in thousands

 

 

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Deferred Gain on Settlement

 

 

 

 

 

 

 

 

 

 

 

 

Amortized to earnings as a reduction

 

 

 

 

 

 

 

 

 

 

 

 

  to interest expense

 

$              0 

 

 

$       2,000 

 

 

$              0 

 

 

$       2,513 

 



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

 

 

DEBT
DEBT

Note 7: Debt



Debt is detailed as follows:









 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Effective

 

June 30

 

 

December 31

 

 

June 30

 

in thousands

Interest Rates

 

2016 

 

 

2015 

 

 

2015 

 

Short-term Debt

 

 

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

n/a

 

$                  0 

 

 

$                0 

 

 

$     138,500 

 

Total short-term debt

 

 

$                  0 

 

 

$                0 

 

 

$     138,500 

 

Long-term Debt

 

 

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

1.25% 

 

$       235,000 

 

 

$     235,000 

 

 

$                0 

 

10.125% notes due 2015 

n/a

 

 

 

 

 

150,000 

 

6.50% notes due 2016

n/a

 

 

 

 

 

 

6.40% notes due 2017

n/a

 

 

 

 

 

 

7.00% notes due 2018

7.87% 

 

272,512 

 

 

272,512 

 

 

272,512 

 

10.375% notes due 2018

10.63% 

 

250,000 

 

 

250,000 

 

 

250,000 

 

7.50% notes due 2021

7.75% 

 

600,000 

 

 

600,000 

 

 

600,000 

 

8.85% notes due 2021 

8.88% 

 

6,000 

 

 

6,000 

 

 

6,000 

 

Industrial revenue bond due 2022

n/a

 

 

 

 

 

14,000 

 

4.50% notes due 2025

4.65% 

 

400,000 

 

 

400,000 

 

 

400,000 

 

7.15% notes due 2037

8.05% 

 

240,188 

 

 

240,188 

 

 

240,188 

 

Other notes 3

6.24% 

 

489 

 

 

498 

 

 

613 

 

Unamortized discounts and debt issuance costs

n/a

 

(21,531)

 

 

(23,734)

 

 

(25,975)

 

Unamortized deferred interest rate swap gain 4

n/a

 

 

 

 

 

523 

 

Total long-term debt including current maturities

 

 

$    1,982,658 

 

 

$  1,980,464 

 

 

$  1,907,861 

 

Less current maturities

 

 

131 

 

 

130 

 

 

14,124 

 

Total long-term debt

 

 

$    1,982,527 

 

 

$  1,980,334 

 

 

$  1,893,737 

 

Total debt 5

 

 

$    1,982,658 

 

 

$  1,980,464 

 

 

$  2,046,361 

 

Estimated fair value of long-term debt

 

 

$    2,272,149 

 

 

$  2,204,816 

 

 

$  2,140,942 

 







 

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

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

Non-publicly traded debt.

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

Face value of our debt is equal to total debt less unamortized discounts and debt issuance costs, and unamortized deferred interest rate swap gain, as follows: June 30, 2016$2,004,189 thousand, December 31, 2015$2,004,198 thousand and June 30, 2015$2,071,813 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 gain. Discounts and debt issuance costs are amortized using the effective interest method over the terms of the respective notes resulting in $2,203,000 of net interest expense for these items for the six months ended June 30, 2016.



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





LINE OF CREDIT



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



The line of credit agreement expires in June 2020 and contains affirmative, negative and financial covenants customary for an unsecured facility. The primary negative covenant limits our ability to incur secured debt. The financial covenants are: (1) a maximum ratio of debt to EBITDA of 3.5:1, and (2) a minimum ratio of EBITDA to net cash interest expense of 3.0:1. As of June 30, 2016, we were in compliance with the line of credit covenants.



Borrowings on our line of credit are classified as short-term debt if we intend to repay within twelve months and as long-term debt if we have the intent and ability to extend repayment beyond twelve months. Borrowings bear interest, at our option, at either LIBOR plus a credit margin ranging from 1.00% to 2.00%, or SunTrust Bank’s base rate (generally, its prime rate) plus a credit margin ranging from 0.00% to 1.00%. The credit margin for both LIBOR and base rate borrowings is determined by either our ratio of debt to EBITDA or our credit ratings, based on the metric that produces the lower credit spread. Standby letters of credit, which are issued under the line of credit and reduce availability, are charged a fee equal to the credit margin for LIBOR borrowings plus 0.175%. We also pay a commitment fee on the daily average unused amount of the line of credit that ranges from 0.10% to 0.35% determined by either our ratio of debt to EBITDA or our credit ratings, based on the metric that produces the lower fee. As of June 30, 2016, the credit margin for LIBOR borrowings was 1.25%, the credit margin for base rate borrowings was 0.25%, and the commitment fee for the unused amount was 0.15%.



As of June 30, 2016, our available borrowing capacity was $475,160,000. Utilization of the borrowing capacity was as follows:



§

$235,000,000 was borrowed

§

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





TERM DEBT



All of our term debt is unsecured. All such debt, other than the $489,000 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 June 30, 2016, we were in compliance with all of the term debt covenants.



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



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



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





STANDBY LETTERS OF CREDIT



We provide, in the normal course of business, certain third-party beneficiaries with standby letters of credit to support our obligations to pay or perform according to the requirements of an underlying agreement. Such letters of credit typically have an initial term of one year, typically renew automatically, and can only be modified or cancelled with the approval of the beneficiary. All of our standby letters of credit are issued by banks that participate in our $750,000,000 line of credit, and reduce the borrowing capacity thereunder. Our standby letters of credit as of June 30, 2016 are summarized by purpose in the table below:







 

 



 

 

in thousands

 

 

Standby Letters of Credit

 

 

Risk management insurance

$       34,111 

 

Reclamation/restoration requirements

5,729 

 

Total

$       39,840 

 

 

 

COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES

Note 8: Commitments and Contingencies



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



LITIGATION AND ENVIRONMENTAL MATTERS



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



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



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



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



§

Lower Passaic River Study Area (Superfund Site) — The Lower Passaic River Study Area is part of the Diamond Shamrock Superfund Site in New Jersey. Vulcan and approximately 70 other companies are parties (collectively the Cooperating Parties Group) to a May 2007 Administrative Order on Consent (AOC) with the 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). However, before the draft RI/FS was issued in final form, the EPA issued a record of decision (ROD) in March 2016 that calls for a bank-to-bank dredging remedy for the lower 8 miles of the River. The EPA estimates that the cost of implementing this proposal is $1.38 billion. The Cooperating Parties Group draft RI/FS estimates the preferred remedial action presented therein to cost in the range of $475 million to $725 million.



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



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



§

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



There are numerous defendants to the litigation in state and federal court. Vulcan was first brought into the litigation as a third-party defendant in August 2013 by Texas Brine. Vulcan has since been added as a direct and third-party defendant by other parties, including a direct claim by the state of Louisiana. The damages alleged in the litigation range from individual plaintiffs’ claims for property damage, to the state of Louisiana’s claim for response costs, to claims for physical damages to oil pipelines, to business interruption claims. In addition to the plaintiffs’ claims, Vulcan has also been sued for contractual indemnity and comparative fault by both Texas Brine and Occidental 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; 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 — In September 2015, the Los Angeles Regional Water Quality Control Board (RWQCB) issued a Cleanup and Abatement Order (CAO) directing Vulcan to assess, monitor, cleanup and abate wastes that have been discharged to soil, soil vapor, and/or groundwater at the former Hewitt Landfill in Los Angeles. The CAO follows a 2014 Investigative Order from the RWQCB that sought data and a technical evaluation regarding the Hewitt Landfill, and a subsequent amendment to the Investigative Order requiring Vulcan to provide groundwater monitoring results to the RWQCB and to create and implement a work plan for further investigation of the Hewitt Landfill. In April 2016, Vulcan submitted an interim remedial action plan (IRAP) to the RWQCB, proposing a pilot test of a pump and treat system;  testing and implementation of a leachate recovery system; and storm water capture and conveyance improvements. Until this pilot testing and additional investigative work is complete, we are unable to estimate the cost of remedial action.



Vulcan is also engaged in an ongoing dialogue with the EPA, the Los Angeles Department of Water and Power, and other stakeholders regarding the potential contribution of the Hewitt Landfill to groundwater contamination in the North Hollywood Operable Unit (NHOU) of the San Fernando Valley Superfund Site. We are gathering and analyzing data and developing technical information to determine the extent of possible contribution by the Hewitt Landfill to the groundwater contamination in the area. This work is also intended to assist in identification of other PRPs that may have contributed to groundwater contamination in the area. In July 2016, the EPA sent a letter to Vulcan requesting that we enter into an AOC for remedial design work at the NHOU including, but not limited to, the design of two groundwater extraction wells south of the Hewitt Landfill. We expect to have further discussions with the EPA regarding their request. 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 our most recent Annual Report on Form 10-K.

 

 

ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS

Note 9: Asset Retirement Obligations



Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets.



Recognition of a liability for an ARO is required in the period in which it is incurred at its estimated fair value. The associated asset retirement costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability is accreted through charges to operating expenses. If the ARO is settled for something other than the carrying amount of the liability, we recognize a gain or loss on settlement.



We record all AROs for which we have legal obligations for land reclamation at estimated fair value. Essentially all these AROs relate to our underlying land parcels, including both owned properties and mineral leases. For the three and six month periods ended June 30, we recognized ARO operating costs related to accretion of the liabilities and depreciation of the assets as follows:







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

ARO Operating Costs

 

 

 

 

 

 

 

 

 

 

 

Accretion

$        2,716 

 

 

$        2,936 

 

 

$        5,472 

 

 

$        5,787 

 

Depreciation

1,621 

 

 

1,568 

 

 

3,314 

 

 

3,001 

 

Total

$        4,337 

 

 

$        4,504 

 

 

$        8,786 

 

 

$        8,788 

 



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



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







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Asset Retirement Obligations

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$     220,581 

 

 

$     238,689 

 

 

$     226,594 

 

 

$     226,565 

 

   Liabilities incurred

505 

 

 

4,339 

 

 

505 

 

 

6,159 

 

   Liabilities settled

(5,450)

 

 

(1,270)

 

 

(10,320)

 

 

(8,000)

 

   Accretion expense

2,716 

 

 

2,936 

 

 

5,472 

 

 

5,787 

 

   Revisions, net

(1,309)

 

 

(9,775)

 

 

(5,208)

 

 

4,408 

 

Balance at end of period

$     217,043 

 

 

$     234,919 

 

 

$     217,043 

 

 

$     234,919 

 



 

 

BENEFIT PLANS
BENEFIT PLANS

Note 10: Benefit 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.



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



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





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

PENSION BENEFITS

Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$        1,336 

 

 

$        1,212 

 

 

$        2,672 

 

 

$        2,425 

 

Interest cost

9,126 

 

 

11,036 

 

 

18,252 

 

 

22,073 

 

Expected return on plan assets

(12,890)

 

 

(13,684)

 

 

(25,781)

 

 

(27,368)

 

Amortization of prior service cost (credit)

(10)

 

 

12 

 

 

(21)

 

 

24 

 

Amortization of actuarial loss

1,541 

 

 

5,455 

 

 

3,082 

 

 

10,909 

 

Net periodic pension benefit cost (credit)

$          (897)

 

 

$        4,031 

 

 

$       (1,796)

 

 

$        8,063 

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic pension benefit cost

$        1,531 

 

 

$        5,467 

 

 

$        3,061 

 

 

$      10,933 

 



We do not expect to be required to make any contributions to the qualified plans through 2017.



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



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







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

OTHER POSTRETIREMENT BENEFITS

Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$           280 

 

 

$           474 

 

 

$           561 

 

 

$           947 

 

Interest cost

303 

 

 

626 

 

 

605 

 

 

1,243 

 

Amortization of prior service credit

(1,059)

 

 

(1,058)

 

 

(2,118)

 

 

(2,116)

 

Amortization of actuarial (gain) loss

(437)

 

 

23 

 

 

(875)

 

 

19 

 

Net periodic postretirement benefit cost (credit)

$          (913)

 

 

$             65 

 

 

$       (1,827)

 

 

$             93 

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic postretirement benefit credit

$       (1,496)

 

 

$       (1,035)

 

 

$       (2,993)

 

 

$       (2,097)

 

 

 

OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME

Note 11: other Comprehensive Income



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



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







 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

June 30

 

 

December 31

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

AOCI

 

 

 

 

 

 

 

 

Cash flow hedges

$       (13,899)

 

 

$       (14,494)

 

 

$       (14,997)

 

Pension and postretirement plans

(105,535)

 

 

(105,575)

 

 

(136,014)

 

Total

$     (119,434)

 

 

$     (120,069)

 

 

$     (151,011)

 



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







 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

Pension and 

 

 

 

 



Cash Flow

 

 

Postretirement

 

 

 

 

in thousands

Hedges

 

 

Benefit Plans

 

 

Total

 

AOCI

 

 

 

 

 

 

 

 

Balance as of December 31, 2015

$       (14,494)

 

 

$     (105,575)

 

 

$     (120,069)

 

Amounts reclassified from AOCI

595 

 

 

40 

 

 

635 

 

Net current period OCI changes

595 

 

 

40 

 

 

635 

 

Balance as of June 30, 2016

$       (13,899)

 

 

$     (105,535)

 

 

$     (119,434)

 



Amounts reclassified from AOCI to earnings, are as follows:







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Six Months Ended

 



 

 

June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Reclassification Adjustment for Cash Flow

 

 

 

 

 

 

 

 

 

 

 

  Hedge Losses

 

 

 

 

 

 

 

 

 

 

 

Interest expense

$            497 

 

 

$         5,094 

 

 

$            983 

 

 

$         8,815 

 

Benefit from income taxes

(196)

 

 

(2,017)

 

 

(388)

 

 

(3,490)

 

Total

$            301 

 

 

$         3,077 

 

 

$            595 

 

 

$         5,325 

 

Amortization of Pension and Postretirement

 

 

 

 

 

 

 

 

 

 

 

  Plan Actuarial Loss and Prior Service Cost

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

$              27 

 

 

$         3,643 

 

 

$              55 

 

 

$         7,175 

 

Selling, administrative and general expenses

 

 

788 

 

 

12 

 

 

1,660 

 

Benefit from income taxes

(13)

 

 

(1,734)

 

 

(27)

 

 

(3,457)

 

Total

$              20 

 

 

$         2,697 

 

 

$              40 

 

 

$         5,378 

 

Total reclassifications from AOCI to earnings

$            321 

 

 

$         5,774 

 

 

$            635 

 

 

$       10,703 

 





 

 

 

EQUITY
EQUITY

Note 12: Equity



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



Changes in total equity are summarized below:







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

 

Six Months Ended

 



 

 

 

June 30

 

in thousands

 

 

 

2016 

 

 

2015 

 

Total Equity

 

 

 

 

 

 

 

 

Balance at beginning of year

 

 

$    4,454,188 

 

 

$  4,176,699 

 

Net earnings

 

 

142,674 

 

 

8,484 

 

Common stock issued

 

 

 

 

 

 

 

   Share-based compensation, net of shares withheld for taxes

 

 

(30,253)

 

 

36,485 

 

Purchase and retirement of common stock

 

 

(69,156)

 

 

 

Share-based compensation expense

 

 

10,832 

 

 

9,679 

 

Excess tax benefits from share-based compensation

 

 

23,749 

 

 

11,457 

 

Cash dividends on common stock ($0.40/$0.20 per share)

 

 

(53,338)

 

 

(26,549)

 

Other comprehensive income

 

 

635 

 

 

10,703 

 

Other

 

 

 

 

(1)

 

Balance at end of period

 

 

$    4,479,331 

 

 

$  4,226,957 

 



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



§

six months ended June 30, 2016 – purchased and retired 636,659 shares for a cost of $69,156,000

§

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

§

six months ended June 30, 2015 – no shares were purchased



As of June 30, 2016, 2,546,757 shares may be purchased under the current purchase authorization of our Board of Directors.

 

 

SEGMENT REPORTING
SEGMENT REPORTING



Note 13: Segment Reporting



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





segment financial disclosure





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Total Revenues

 

 

 

 

 

 

 

 

 

 

 

Aggregates 1

$     791,497 

 

 

$     733,379 

 

 

$  1,426,365 

 

 

$  1,236,888 

 

Asphalt Mix

142,055 

 

 

128,998 

 

 

231,154 

 

 

232,069 

 

Concrete

81,246 

 

 

78,598 

 

 

151,643 

 

 

138,387 

 

Calcium

2,448 

 

 

2,396 

 

 

4,358 

 

 

4,251 

 

  Segment sales

$  1,017,246 

 

 

$     943,371 

 

 

$  1,813,520 

 

 

$  1,611,595 

 

Aggregates intersegment sales

(60,421)

 

 

(48,228)

 

 

(101,968)

 

 

(85,159)

 

Total revenues

$     956,825 

 

 

$     895,143 

 

 

$  1,711,552 

 

 

$  1,526,436 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

Aggregates

$     254,008 

 

 

$     207,285 

 

 

$     402,392 

 

 

$     274,950 

 

Asphalt Mix

30,925 

 

 

21,135 

 

 

43,139 

 

 

29,953 

 

Concrete

6,146 

 

 

4,892 

 

 

9,623 

 

 

5,702 

 

Calcium

1,105 

 

 

1,137 

 

 

1,749 

 

 

1,709 

 

Total

$     292,184 

 

 

$     234,449 

 

 

$     456,903 

 

 

$     312,314 

 

Depreciation, Depletion, Accretion

 

 

 

 

 

 

 

 

 

 

 

  and Amortization (DDA&A)

 

 

 

 

 

 

 

 

 

 

 

Aggregates

$       59,414 

 

 

$       57,003 

 

 

$     116,925 

 

 

$     112,519 

 

Asphalt Mix

4,136 

 

 

4,098 

 

 

8,368 

 

 

8,007 

 

Concrete

3,088 

 

 

2,774 

 

 

6,069 

 

 

5,502 

 

Calcium

196 

 

 

164 

 

 

379 

 

 

326 

 

Other

5,074 

 

 

4,345 

 

 

9,573 

 

 

8,754 

 

Total

$       71,908 

 

 

$       68,384 

 

 

$     141,314 

 

 

$     135,108 

 

Identifiable Assets 2

 

 

 

 

 

 

 

 

 

 

 

Aggregates

 

 

 

 

 

 

$  7,742,618 

 

 

$  7,497,240 

 

Asphalt Mix

 

 

 

 

 

 

237,546 

 

 

319,284 

 

Concrete

 

 

 

 

 

 

189,355 

 

 

185,473 

 

Calcium

 

 

 

 

 

 

5,565 

 

 

5,520 

 

Total identifiable assets

 

 

 

 

 

 

$  8,175,084 

 

 

$  8,007,517 

 

General corporate assets

 

 

 

 

 

 

23,127 

 

 

113,630 

 

Cash and cash equivalents

 

 

 

 

 

 

91,902 

 

 

74,736 

 

Total

 

 

 

 

 

 

$  8,290,113 

 

 

$  8,195,883 

 







 

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

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

 

 

SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

Note 14: Supplemental Cash Flow Information



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







 

 

 

 

 



 

 

 

 

 



Six Months Ended

 



June 30

 

in thousands

2016 

 

 

2015 

 

Cash Payments

 

 

 

 

 

Interest (exclusive of amount capitalized)

$       67,679 

 

 

$     134,215 

 

Income taxes

64,556 

 

 

31,755 

 

Noncash Investing and Financing Activities

 

 

 

 

 

Accrued liabilities for purchases of property, plant & equipment

$       20,850 

 

 

$       13,651 

 

Amounts referable to business acquisitions

 

 

 

 

 

  Liabilities assumed

 

 

2,426 

 

  Fair value of noncash assets and liabilities exchanged

 

 

20,000 

 

 

 

GOODWILL
GOODWILL

Note 15: Goodwill



Goodwill is recognized when the consideration paid for a business exceeds the fair value of the tangible and identifiable intangible assets acquired. Goodwill is allocated to reporting units for purposes of testing goodwill for impairment. There were no charges for goodwill impairment in the six month periods ended June 30, 2016 and 2015.



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



GOODWILL





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Aggregates

 

 

Asphalt Mix

 

 

Concrete

 

 

Calcium

 

 

Total

 

Goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as of December 31, 2015

$  3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$    3,094,824 

 

Goodwill of acquired businesses

 

 

 

 

 

 

 

 

 

Goodwill of divested businesses

 

 

 

 

 

 

 

 

 

Total as of June 30, 2016

$  3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$    3,094,824 

 



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

 

 

ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES



Note 16: Acquisitions and Divestitures



ACQUISITIONS



Through the six months ended June 30, 2016, we purchased the assets of a trucking business to complement our aggregates logistics and distribution activities for $1,611,000 of cash consideration.



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



§

one aggregates facility in Tennessee

§

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

§

thirteen asphalt mix operations, primarily in Arizona





DIVESTITURES AND PENDING DIVESTITURES



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



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



 

 

NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS

Note 17: New Accounting Standards



ACCOUNTING STANDARDS RECENTLY ADOPTED



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



ACCOUNTING STANDARDS PENDING ADOPTION



CREDIT LOSSES  In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which amends guidance on the impairment of financial instruments. The new guidance estimates credit losses based on expected losses, modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within those annual reporting periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2018. We are currently evaluating the impact that the adoption of this standard will have on our consolidated financial statements.



SHARE-BASED PAYMENTS  In March 2016, the FASB issued ASU 2016-09, “Improvement to Employee Share-Based Payment Accounting,” which amends several aspects of the accounting for employee share-based payment transactions. Entities will be required to recognize the income tax effects of awards in the income statement when the awards vest or are settled (i.e., the use of APIC pools will be eliminated). Additionally, the guidance changes the employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact that the adoption of this standard will have on our consolidated financial statements.



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



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



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



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. In March 2016, the FASB issued ASU 2016-08, “Revenue From Contracts With Customers: Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net),” which amends the principal versus agent guidance in ASU 2014-09. The amendments in ASU 2016-08 provide guidance on recording revenue on a gross basis versus a net basis based on the determination of whether an entity is a principal or an agent when another party is involved in providing goods or services to a customer. These ASUs are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Further, in applying these ASUs an entity is permitted to use either the full retrospective or cumulative effect transition approach. We are currently evaluating the impact of adoption of this standard on our consolidated financial statements and determining our transition method.

 

 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

NATURE OF OPERATIONS



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



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

BASIS OF PRESENTATION



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



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

RECLASSIFICATIONS



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

RESTRUCTURING CHARGES



In 2014, we announced changes to our executive management team, and a new divisional organization structure that was effective January 1, 2015. During the six months ended June 30, 2016 and June 30, 2015, we incurred $320,000 and $4,098,000, respectively, of costs related to these initiatives. Future related charges for these initiatives are estimated to be immaterial.



EARNINGS PER SHARE (EPS)



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







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding

133,419 

 

 

133,103 

 

 

133,619 

 

 

132,882 

 

Dilutive effect of

 

 

 

 

 

 

 

 

 

 

 

   Stock options/SOSARs 1

1,007 

 

 

991 

 

 

940 

 

 

996 

 

   Other stock compensation plans

969 

 

 

1,140 

 

 

811 

 

 

811 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding, assuming dilution

135,395 

 

 

135,234 

 

 

135,370 

 

 

134,689 

 





 

Stock-Only Stock Appreciation Rights (SOSARs)



All dilutive common stock equivalents are reflected in our earnings per share calculations. Antidilutive common stock equivalents are not included in our earnings per share calculations. In periods of loss, shares that otherwise would have been included in our diluted weighted-average common shares outstanding computation are excluded. There were no excluded shares for the periods presented.



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







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Antidilutive common stock equivalents

97 

 

 

556 

 

 

327 

 

 

556 

 



SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding

133,419 

 

 

133,103 

 

 

133,619 

 

 

132,882 

 

Dilutive effect of

 

 

 

 

 

 

 

 

 

 

 

   Stock options/SOSARs 1

1,007 

 

 

991 

 

 

940 

 

 

996 

 

   Other stock compensation plans

969 

 

 

1,140 

 

 

811 

 

 

811 

 

Weighted-average common shares

 

 

 

 

 

 

 

 

 

 

 

  outstanding, assuming dilution

135,395 

 

 

135,234 

 

 

135,370 

 

 

134,689 

 





 

Stock-Only Stock Appreciation Rights (SOSARs)





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Antidilutive common stock equivalents

97 

 

 

556 

 

 

327 

 

 

556 

 



DISCONTINUED OPERATIONS (Tables)
Results from Discontinued Operations



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

Pretax loss

$       (4,197)

 

 

$       (2,671)

 

 

$       (7,177)

 

 

$       (7,653)

 

Income tax benefit

1,665 

 

 

1,014 

 

 

2,839 

 

 

2,984 

 

Loss on discontinued operations,

 

 

 

 

 

 

 

 

 

 

 

  net of tax

$       (2,532)

 

 

$       (1,657)

 

 

$       (4,338)

 

 

$       (4,669)

 



DEFERRED REVENUE (Tables)
Reconciliation of Deferred Revenue Balances



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Deferred Revenue

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$     212,292 

 

 

$     218,987 

 

 

$     214,060 

 

 

$     219,968 

 

  Amortization of deferred revenue

(2,092)

 

 

(1,558)

 

 

(3,860)

 

 

(2,539)

 

Balance at end of period

$     210,200 

 

 

$     217,429 

 

 

$     210,200 

 

 

$     217,429 

 



FAIR VALUE MEASUREMENTS (Tables)







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Level 1 Fair Value



June 30

 

 

December 31

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

Fair Value

 

 

 

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

 

 

 

  Mutual funds

$        6,389 

 

 

$      11,472 

 

 

$      14,488 

 

  Equities

7,702 

 

 

8,992 

 

 

12,274 

 

Total

$      14,091 

 

 

$      20,464 

 

 

$      26,762 

 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Level 2 Fair Value



June 30

 

 

December 31

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

Fair Value

 

 

 

 

 

 

 

 

Rabbi Trust

 

 

 

 

 

 

 

 

  Money market mutual fund

$        2,134 

 

 

$        2,124 

 

 

$        1,355 

 

Total

$        2,134 

 

 

$        2,124 

 

 

$        1,355 

 





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Period ending June 30, 2016

 

 

Period ending June 30, 2015

 



 

 

 

Impairment

 

 

 

 

 

Impairment

 

in thousands

Level 2 

 

 

Charges

 

 

Level 2

 

 

Charges

 

Fair Value Nonrecurring

 

 

 

 

 

 

 

 

 

 

 

Property, plant & equipment, net

$              0 

 

 

$       1,359 

 

 

$              0 

 

 

$       2,176 

 

Other intangible assets, net

 

 

8,180 

 

 

 

 

2,858 

 

Other assets

 

 

967 

 

 

 

 

156 

 

Total

$              0 

 

 

$     10,506 

 

 

$              0 

 

 

$       5,190 

 



DERIVATIVE INSTRUMENTS (Tables)



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Six Months Ended

 



Location on

 

June 30

 

 

June 30

 

in thousands

Statement

 

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Cash Flow Hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss reclassified from AOCI

Interest

 

 

 

 

 

 

 

 

 

 

 

 

  (effective portion)

expense

 

$          (497)

 

 

$       (5,094)

 

 

$          (983)

 

 

$       (8,815)

 





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Six Months Ended

 



 

 

June 30

 

 

June 30

 

in thousands

 

 

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Deferred Gain on Settlement

 

 

 

 

 

 

 

 

 

 

 

 

Amortized to earnings as a reduction

 

 

 

 

 

 

 

 

 

 

 

 

  to interest expense

 

$              0 

 

 

$       2,000 

 

 

$              0 

 

 

$       2,513 

 



DEBT (Tables)



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Effective

 

June 30

 

 

December 31

 

 

June 30

 

in thousands

Interest Rates

 

2016 

 

 

2015 

 

 

2015 

 

Short-term Debt

 

 

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

n/a

 

$                  0 

 

 

$                0 

 

 

$     138,500 

 

Total short-term debt

 

 

$                  0 

 

 

$                0 

 

 

$     138,500 

 

Long-term Debt

 

 

 

 

 

 

 

 

 

 

Bank line of credit expires 2020 1, 2, 3

1.25% 

 

$       235,000 

 

 

$     235,000 

 

 

$                0 

 

10.125% notes due 2015 

n/a

 

 

 

 

 

150,000 

 

6.50% notes due 2016

n/a

 

 

 

 

 

 

6.40% notes due 2017

n/a

 

 

 

 

 

 

7.00% notes due 2018

7.87% 

 

272,512 

 

 

272,512 

 

 

272,512 

 

10.375% notes due 2018

10.63% 

 

250,000 

 

 

250,000 

 

 

250,000 

 

7.50% notes due 2021

7.75% 

 

600,000 

 

 

600,000 

 

 

600,000 

 

8.85% notes due 2021 

8.88% 

 

6,000 

 

 

6,000 

 

 

6,000 

 

Industrial revenue bond due 2022

n/a

 

 

 

 

 

14,000 

 

4.50% notes due 2025

4.65% 

 

400,000 

 

 

400,000 

 

 

400,000 

 

7.15% notes due 2037

8.05% 

 

240,188 

 

 

240,188 

 

 

240,188 

 

Other notes 3

6.24% 

 

489 

 

 

498 

 

 

613 

 

Unamortized discounts and debt issuance costs

n/a

 

(21,531)

 

 

(23,734)

 

 

(25,975)

 

Unamortized deferred interest rate swap gain 4

n/a

 

 

 

 

 

523 

 

Total long-term debt including current maturities

 

 

$    1,982,658 

 

 

$  1,980,464 

 

 

$  1,907,861 

 

Less current maturities

 

 

131 

 

 

130 

 

 

14,124 

 

Total long-term debt

 

 

$    1,982,527 

 

 

$  1,980,334 

 

 

$  1,893,737 

 

Total debt 5

 

 

$    1,982,658 

 

 

$  1,980,464 

 

 

$  2,046,361 

 

Estimated fair value of long-term debt

 

 

$    2,272,149 

 

 

$  2,204,816 

 

 

$  2,140,942 

 







 

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

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

Non-publicly traded debt.

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

Face value of our debt is equal to total debt less unamortized discounts and debt issuance costs, and unamortized deferred interest rate swap gain, as follows: June 30, 2016$2,004,189 thousand, December 31, 2015$2,004,198 thousand and June 30, 2015$2,071,813 thousand.





 

 



 

 

in thousands

 

 

Standby Letters of Credit

 

 

Risk management insurance

$       34,111 

 

Reclamation/restoration requirements

5,729 

 

Total

$       39,840 

 



ASSET RETIREMENT OBLIGATIONS (Tables)



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

ARO Operating Costs

 

 

 

 

 

 

 

 

 

 

 

Accretion

$        2,716 

 

 

$        2,936 

 

 

$        5,472 

 

 

$        5,787 

 

Depreciation

1,621 

 

 

1,568 

 

 

3,314 

 

 

3,001 

 

Total

$        4,337 

 

 

$        4,504 

 

 

$        8,786 

 

 

$        8,788 

 





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Asset Retirement Obligations

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$     220,581 

 

 

$     238,689 

 

 

$     226,594 

 

 

$     226,565 

 

   Liabilities incurred

505 

 

 

4,339 

 

 

505 

 

 

6,159 

 

   Liabilities settled

(5,450)

 

 

(1,270)

 

 

(10,320)

 

 

(8,000)

 

   Accretion expense

2,716 

 

 

2,936 

 

 

5,472 

 

 

5,787 

 

   Revisions, net

(1,309)

 

 

(9,775)

 

 

(5,208)

 

 

4,408 

 

Balance at end of period

$     217,043 

 

 

$     234,919 

 

 

$     217,043 

 

 

$     234,919 

 



BENEFIT PLANS (Tables)



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

PENSION BENEFITS

Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$        1,336 

 

 

$        1,212 

 

 

$        2,672 

 

 

$        2,425 

 

Interest cost

9,126 

 

 

11,036 

 

 

18,252 

 

 

22,073 

 

Expected return on plan assets

(12,890)

 

 

(13,684)

 

 

(25,781)

 

 

(27,368)

 

Amortization of prior service cost (credit)

(10)

 

 

12 

 

 

(21)

 

 

24 

 

Amortization of actuarial loss

1,541 

 

 

5,455 

 

 

3,082 

 

 

10,909 

 

Net periodic pension benefit cost (credit)

$          (897)

 

 

$        4,031 

 

 

$       (1,796)

 

 

$        8,063 

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic pension benefit cost

$        1,531 

 

 

$        5,467 

 

 

$        3,061 

 

 

$      10,933 

 





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

OTHER POSTRETIREMENT BENEFITS

Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Service cost

$           280 

 

 

$           474 

 

 

$           561 

 

 

$           947 

 

Interest cost

303 

 

 

626 

 

 

605 

 

 

1,243 

 

Amortization of prior service credit

(1,059)

 

 

(1,058)

 

 

(2,118)

 

 

(2,116)

 

Amortization of actuarial (gain) loss

(437)

 

 

23 

 

 

(875)

 

 

19 

 

Net periodic postretirement benefit cost (credit)

$          (913)

 

 

$             65 

 

 

$       (1,827)

 

 

$             93 

 

Pretax reclassifications from AOCI included in

 

 

 

 

 

 

 

 

 

 

 

  net periodic postretirement benefit credit

$       (1,496)

 

 

$       (1,035)

 

 

$       (2,993)

 

 

$       (2,097)

 



OTHER COMPREHENSIVE INCOME (Tables)



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

June 30

 

 

December 31

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2015 

 

AOCI

 

 

 

 

 

 

 

 

Cash flow hedges

$       (13,899)

 

 

$       (14,494)

 

 

$       (14,997)

 

Pension and postretirement plans

(105,535)

 

 

(105,575)

 

 

(136,014)

 

Total

$     (119,434)

 

 

$     (120,069)

 

 

$     (151,011)

 





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

Pension and 

 

 

 

 



Cash Flow

 

 

Postretirement

 

 

 

 

in thousands

Hedges

 

 

Benefit Plans

 

 

Total

 

AOCI

 

 

 

 

 

 

 

 

Balance as of December 31, 2015

$       (14,494)

 

 

$     (105,575)

 

 

$     (120,069)

 

Amounts reclassified from AOCI

595 

 

 

40 

 

 

635 

 

Net current period OCI changes

595 

 

 

40 

 

 

635 

 

Balance as of June 30, 2016

$       (13,899)

 

 

$     (105,535)

 

 

$     (119,434)

 





 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

 

Six Months Ended

 



 

 

June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Reclassification Adjustment for Cash Flow

 

 

 

 

 

 

 

 

 

 

 

  Hedge Losses

 

 

 

 

 

 

 

 

 

 

 

Interest expense

$            497 

 

 

$         5,094 

 

 

$            983 

 

 

$         8,815 

 

Benefit from income taxes

(196)

 

 

(2,017)

 

 

(388)

 

 

(3,490)

 

Total

$            301 

 

 

$         3,077 

 

 

$            595 

 

 

$         5,325 

 

Amortization of Pension and Postretirement

 

 

 

 

 

 

 

 

 

 

 

  Plan Actuarial Loss and Prior Service Cost

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

$              27 

 

 

$         3,643 

 

 

$              55 

 

 

$         7,175 

 

Selling, administrative and general expenses

 

 

788 

 

 

12 

 

 

1,660 

 

Benefit from income taxes

(13)

 

 

(1,734)

 

 

(27)

 

 

(3,457)

 

Total

$              20 

 

 

$         2,697 

 

 

$              40 

 

 

$         5,378 

 

Total reclassifications from AOCI to earnings

$            321 

 

 

$         5,774 

 

 

$            635 

 

 

$       10,703 

 





 



EQUITY (Tables)
Change In Total Equity



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

 

Six Months Ended

 



 

 

 

June 30

 

in thousands

 

 

 

2016 

 

 

2015 

 

Total Equity

 

 

 

 

 

 

 

 

Balance at beginning of year

 

 

$    4,454,188 

 

 

$  4,176,699 

 

Net earnings

 

 

142,674 

 

 

8,484 

 

Common stock issued

 

 

 

 

 

 

 

   Share-based compensation, net of shares withheld for taxes

 

 

(30,253)

 

 

36,485 

 

Purchase and retirement of common stock

 

 

(69,156)

 

 

 

Share-based compensation expense

 

 

10,832 

 

 

9,679 

 

Excess tax benefits from share-based compensation

 

 

23,749 

 

 

11,457 

 

Cash dividends on common stock ($0.40/$0.20 per share)

 

 

(53,338)

 

 

(26,549)

 

Other comprehensive income

 

 

635 

 

 

10,703 

 

Other

 

 

 

 

(1)

 

Balance at end of period

 

 

$    4,479,331 

 

 

$  4,226,957 

 



SEGMENT REPORTING (Tables)
Segment Financial Disclosure



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

 

Six Months Ended

 



June 30

 

 

June 30

 

in thousands

2016 

 

 

2015 

 

 

2016 

 

 

2015 

 

Total Revenues

 

 

 

 

 

 

 

 

 

 

 

Aggregates 1

$     791,497 

 

 

$     733,379 

 

 

$  1,426,365 

 

 

$  1,236,888 

 

Asphalt Mix

142,055 

 

 

128,998 

 

 

231,154 

 

 

232,069 

 

Concrete

81,246 

 

 

78,598 

 

 

151,643 

 

 

138,387 

 

Calcium

2,448 

 

 

2,396 

 

 

4,358 

 

 

4,251 

 

  Segment sales

$  1,017,246 

 

 

$     943,371 

 

 

$  1,813,520 

 

 

$  1,611,595 

 

Aggregates intersegment sales

(60,421)

 

 

(48,228)

 

 

(101,968)

 

 

(85,159)

 

Total revenues

$     956,825 

 

 

$     895,143 

 

 

$  1,711,552 

 

 

$  1,526,436 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

Aggregates

$     254,008 

 

 

$     207,285 

 

 

$     402,392 

 

 

$     274,950 

 

Asphalt Mix

30,925 

 

 

21,135 

 

 

43,139 

 

 

29,953 

 

Concrete

6,146 

 

 

4,892 

 

 

9,623 

 

 

5,702 

 

Calcium

1,105 

 

 

1,137 

 

 

1,749 

 

 

1,709 

 

Total

$     292,184 

 

 

$     234,449 

 

 

$     456,903 

 

 

$     312,314 

 

Depreciation, Depletion, Accretion

 

 

 

 

 

 

 

 

 

 

 

  and Amortization (DDA&A)

 

 

 

 

 

 

 

 

 

 

 

Aggregates

$       59,414 

 

 

$       57,003 

 

 

$     116,925 

 

 

$     112,519 

 

Asphalt Mix

4,136 

 

 

4,098 

 

 

8,368 

 

 

8,007 

 

Concrete

3,088 

 

 

2,774 

 

 

6,069 

 

 

5,502 

 

Calcium

196 

 

 

164 

 

 

379 

 

 

326 

 

Other

5,074 

 

 

4,345 

 

 

9,573 

 

 

8,754 

 

Total

$       71,908 

 

 

$       68,384 

 

 

$     141,314 

 

 

$     135,108 

 

Identifiable Assets 2

 

 

 

 

 

 

 

 

 

 

 

Aggregates

 

 

 

 

 

 

$  7,742,618 

 

 

$  7,497,240 

 

Asphalt Mix

 

 

 

 

 

 

237,546 

 

 

319,284 

 

Concrete

 

 

 

 

 

 

189,355 

 

 

185,473 

 

Calcium

 

 

 

 

 

 

5,565 

 

 

5,520 

 

Total identifiable assets

 

 

 

 

 

 

$  8,175,084 

 

 

$  8,007,517 

 

General corporate assets

 

 

 

 

 

 

23,127 

 

 

113,630 

 

Cash and cash equivalents

 

 

 

 

 

 

91,902 

 

 

74,736 

 

Total

 

 

 

 

 

 

$  8,290,113 

 

 

$  8,195,883 

 







 

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

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



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



 

 

 

 

 



 

 

 

 

 



Six Months Ended

 



June 30

 

in thousands

2016 

 

 

2015 

 

Cash Payments

 

 

 

 

 

Interest (exclusive of amount capitalized)

$       67,679 

 

 

$     134,215 

 

Income taxes

64,556 

 

 

31,755 

 

Noncash Investing and Financing Activities

 

 

 

 

 

Accrued liabilities for purchases of property, plant & equipment

$       20,850 

 

 

$       13,651 

 

Amounts referable to business acquisitions

 

 

 

 

 

  Liabilities assumed

 

 

2,426 

 

  Fair value of noncash assets and liabilities exchanged

 

 

20,000 

 



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



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands

Aggregates

 

 

Asphalt Mix

 

 

Concrete

 

 

Calcium

 

 

Total

 

Goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total as of December 31, 2015

$  3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$    3,094,824 

 

Goodwill of acquired businesses

 

 

 

 

 

 

 

 

 

Goodwill of divested businesses

 

 

 

 

 

 

 

 

 

Total as of June 30, 2016

$  3,003,191 

 

 

$     91,633 

 

 

$              0 

 

 

$              0 

 

 

$    3,094,824 

 



SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
 
Restructuring charges
$ 0 
$ 1,280,000 
$ 320,000 
$ 4,098,000 
Antidilutive weighted-average common stock equivalents
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Weighted-Average Common Shares Outstanding) (Details)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
 
Weighted-average common shares outstanding
133,419 
133,103 
133,619 
132,882 
Stock options/SOSARs
1,007 1
991 1
940 1
996 1
Other stock compensation plans
969 
1,140 
811 
811 
Weighted-average common shares outstanding, assuming dilution
135,395 
135,234 
135,370 
134,689 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Antidilutive Common Stock Equivalents) (Details)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
 
 
 
 
Antidilutive common stock equivalents
97 
556 
327 
556 
DISCONTINUED OPERATIONS (Results from Discontinued Operations) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
DISCONTINUED OPERATIONS [Abstract]
 
 
 
 
Pretax loss
$ (4,197)
$ (2,671)
$ (7,177)
$ (7,653)
Income tax benefit
1,665 
1,014 
2,839 
2,984 
Loss on discontinued operations, net of tax
$ (2,532)
$ (1,657)
$ (4,338)
$ (4,669)
INCOME TAXES (Narrative) (Details) (USD $)
3 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2016
Sep. 30, 2015
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2016
Scenario, Forecast [Member]
Jun. 30, 2016
Alabama [Member]
Maximum [Member]
Jun. 30, 2016
Alabama [Member]
Minimum [Member]
Dec. 31, 2016
Alabama [Member]
Scenario, Forecast [Member]
Provision for income taxes
$ 54,200,000 
 
$ 19,867,000 
$ 63,964,000 
$ 5,791,000 
 
 
 
 
State net operating loss carryforwards
 
 
 
 
 
60,131,000 
 
 
57,841,000 
Operating Loss Carryforwards, Expiration Date
 
 
 
 
 
 
Dec. 31, 2029 
Dec. 31, 2022 
 
Decrease in valuation allowance
 
$ (4,655,000)
 
 
 
 
 
 
 
DEFERRED REVENUE (Narrative) (Details) (USD $)
6 Months Ended 12 Months Ended
Jun. 30, 2016
item
Dec. 31, 2013
Dec. 31, 2012
Jun. 30, 2017
Scenario, Forecast [Member]
Deferred Revenue Arrangement [Line Items]
 
 
 
 
Number of facilities
 
 
 
Proceeds from sale of production
 
$ 153,282,000 
$ 73,644,000 
 
Term of the VPPs
25 years 
 
 
 
Estimated deferred revenue to be recognized in the next 12 months
 
 
 
$ 6,400,000 
DEFERRED REVENUE (Reconciliation of Deferred Revenue Balances) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
DEFERRED REVENUE [Abstract]
 
 
 
 
Balance at beginning of period
$ 212,292 
$ 218,987 
$ 214,060 
$ 219,968 
Amortization of deferred revenue
(2,092)
(1,558)
(3,860)
(2,539)
Balance at end of period
$ 210,200 
$ 217,429 
$ 210,200 
$ 217,429 
FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2016
item
Jun. 30, 2015
Jun. 30, 2016
item
Jun. 30, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
 
Number of Rabbi Trusts established
 
 
Net gains of the Rabbi Trust investments
 
 
$ 535,000 
$ 184,000 
Unrealized net gains (losses) of the Rabbi Trust investments
 
 
(571,000)
22,000 
Rabbi Trust asset value, decrease
 
 
6,363,000 
 
Loss on impairment of long-lived assets
860,000 
5,190,000 
10,506,000 
5,190,000 
Nonrecurring [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
 
Loss on impairment of long-lived assets
 
 
10,506,000 
5,190,000 
Nonrecurring [Member] |
Level 2 [Member]
 
 
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
 
Assets subject to fair value measurement on a nonrecurring basis
$ 0 
$ 0 
$ 0 
$ 0 
FAIR VALUE MEASUREMENTS (Fair Value Measurement on Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Level 1 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets fair value, recurring
$ 14,091 
$ 20,464 
$ 26,762 
Level 1 [Member] |
Mutual Funds [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets fair value, recurring
6,389 
11,472 
14,488 
Level 1 [Member] |
Equities [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets fair value, recurring
7,702 
8,992 
12,274 
Level 2 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets fair value, recurring
2,134 
2,124 
1,355 
Level 2 [Member] |
Money Market Mutual Fund [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Assets fair value, recurring
$ 2,134 
$ 2,124 
$ 1,355 
FAIR VALUE MEASUREMENTS (Fair Value Measurement on Nonrecurring Basis) (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Fair Value Nonrecurring
 
 
 
 
Totals, Impairment Charges
$ 860,000 
$ 5,190,000 
$ 10,506,000 
$ 5,190,000 
Nonrecurring [Member]
 
 
 
 
Fair Value Nonrecurring
 
 
 
 
Property, plant & equipment net, Impairment Charges
 
 
1,359,000 
2,176,000 
Other intangible assets net, Impairment Charges
 
 
8,180,000 
2,858,000 
Other assets, Impairment Charges
 
 
967,000 
156,000 
Totals, Impairment Charges
 
 
10,506,000 
5,190,000 
Nonrecurring [Member] |
Level 2 [Member]
 
 
 
 
Fair Value Nonrecurring
 
 
 
 
Property, plant & equipment, net
Other intangible assets, net
Other assets
Totals
$ 0 
$ 0 
$ 0 
$ 0 
DERIVATIVE INSTRUMENTS (Narrative) (Details) (USD $)
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended
Aug. 31, 2011
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2007
agreement
Dec. 31, 2015
Jun. 30, 2016
6.50% notes due 2016 [Member]
Apr. 30, 2015
6.50% notes due 2016 [Member]
Jun. 30, 2011
6.50% notes due 2016 [Member]
Jun. 30, 2016
10.125% notes due 2015 [Member]
Jun. 30, 2011
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, 2015
Debt [Member]
Jun. 30, 2017
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 
 
Estimated amount of pretax loss in AOCI reclassified to earnings for the next 12-month period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,092,000 
Fixed-rate notes issued
 
2,004,189,000 
2,071,813,000 
2,004,189,000 
2,071,813,000 
 
2,004,198,000 
 
 
500,000,000 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
6.50% 
6.50% 
6.50% 
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% 
 
 
Amortized deferred gain
 
2,000,000 
2,513,000 
 
 
 
 
 
 
 
 
 
 
1,642,000 
 
Gain component of the settlement
23,387,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued interest
$ 1,995,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 $)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Interest Rate Swap [Member] |
Cash Flow Hedges [Member] |
Interest Expense [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Loss reclassified from AOCI (effective portion)
$ (497,000)
$ (5,094,000)
$ (983,000)
$ (8,815,000)
DERIVATIVE INSTRUMENTS (Deferred Gain Amortization) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
DERIVATIVE INSTRUMENTS [Abstract]
 
 
 
 
Amortized to earnings as a reduction to interest expense
$ 0 
$ 2,000 
$ 0 
$ 2,513 
DEBT (Narrative) (Details) (USD $)
1 Months Ended 3 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 3 Months Ended 6 Months Ended 1 Months Ended 3 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended
Apr. 30, 2015
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Dec. 31, 2015
10.125% notes due 2015 [Member]
Jun. 30, 2016
10.125% notes due 2015 [Member]
Jun. 30, 2015
10.125% notes due 2015 [Member]
Jun. 30, 2011
10.125% notes due 2015 [Member]
Mar. 31, 2015
4.50% notes due 2025 [Member]
Mar. 31, 2015
4.50% notes due 2025 [Member]
Jun. 30, 2016
4.50% notes due 2025 [Member]
Dec. 31, 2015
4.50% notes due 2025 [Member]
Jun. 30, 2015
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]
Jun. 30, 2016
7.00% notes due 2018 [Member]
Dec. 31, 2015
7.00% notes due 2018 [Member]
Jun. 30, 2015
7.00% notes due 2018 [Member]
Apr. 30, 2015
6.40% notes due 2017 [Member]
Jun. 30, 2016
6.40% notes due 2017 [Member]
Dec. 31, 2015
6.40% notes due 2017 [Member]
Jun. 30, 2015
6.40% notes due 2017 [Member]
Apr. 30, 2015
6.50% notes due 2016 [Member]
Jun. 30, 2016
6.50% notes due 2016 [Member]
Dec. 31, 2015
6.50% notes due 2016 [Member]
Jun. 30, 2015
6.50% notes due 2016 [Member]
Jun. 30, 2011
6.50% notes due 2016 [Member]
Jun. 30, 2015
Bank Line of Credit [Member]
Jun. 30, 2016
Bank Line of Credit [Member]
Jun. 30, 2016
Bank Line of Credit [Member]
LIBOR [Member]
Jun. 30, 2016
Bank Line of Credit [Member]
Base Rate [Member]
Jun. 30, 2016
Standby Letters of Credit [Member]
Jun. 30, 2016
Standby Letters of Credit [Member]
LIBOR [Member]
Jun. 30, 2016
Minimum [Member]
Bank Line of Credit [Member]
Jun. 30, 2016
Minimum [Member]
Bank Line of Credit [Member]
LIBOR [Member]
Jun. 30, 2016
Minimum [Member]
Bank Line of Credit [Member]
Base Rate [Member]
Jun. 30, 2016
Maximum [Member]
Bank Line of Credit [Member]
Jun. 30, 2016
Maximum [Member]
Bank Line of Credit [Member]
LIBOR [Member]
Jun. 30, 2016
Maximum [Member]
Bank Line of Credit [Member]
Base Rate [Member]
Jun. 30, 2016
Other Notes [Member]
Dec. 31, 2015
Other Notes [Member]
Jun. 30, 2015
Other Notes [Member]
Aug. 31, 2015
Industrial Revenue Bonds [Member]
Jun. 30, 2016
Industrial Revenue Bonds [Member]
Dec. 31, 2015
Industrial Revenue Bonds [Member]
Jun. 30, 2015
Industrial Revenue Bonds [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
 
 
$ 2,203,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
500,000,000 
750,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction fees
 
 
7,382,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,589,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit, expiration date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun. 01, 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to EBITDA ratio
 
 
3.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA to net cash interest expense ratio
 
 
3.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Applicable margin on borrowing rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
0.25% 
 
0.175% 
 
1.00% 
0.00% 
 
2.00% 
1.00% 
 
 
 
 
 
 
 
Commitment fee
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.15% 
 
 
 
 
0.10% 
 
 
0.35% 
 
 
 
 
 
 
 
 
 
Available borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
475,160,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long term debt
 
1,907,861,000 
1,982,658,000 
1,907,861,000 
1,980,464,000 
150,000,000 
 
 
 
400,000,000 
400,000,000 
400,000,000 
 
 
 
272,512,000 
272,512,000 
272,512,000 
 
 
 
 
235,000,000 
 
 
 
 
 
 
 
 
 
 
489,000 1
498,000 1
613,000 1
 
14,000,000 
Other liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
39,840,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of debt
 
 
 
 
 
150,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14,000,000 
 
 
 
Debt instrument face amount
 
2,071,813,000 
2,004,189,000 
2,071,813,000 
2,004,198,000 
 
 
 
 
400,000,000 
400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
10.125% 
 
10.125% 
4.50% 
4.50% 
4.50% 
 
 
7.00% 
7.00% 
7.00% 
7.00% 
 
 
6.40% 
6.40% 
 
 
6.50% 
6.50% 
 
 
6.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity year
 
 
 
 
 
 
2015 
 
 
 
2025 
2025 
 
 
2018 
 
2018 
2018 
 
 
2017 
2017 
 
 
2016 
2016 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2022 
 
 
Debt issued, net proceeds
 
 
 
 
 
 
 
 
 
395,207,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt purchased, amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
185,000 
127,303,000 
127,303,000 
 
 
 
218,633,000 
 
 
 
125,001,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal amount, percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
32.00% 
 
 
 
 
100.00% 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total consideration paid for debt
385,024,000 
 
9,000 
530,945,000 
 
 
 
 
 
 
 
 
 
 
 
145,899,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium paid for purchase of debt
41,153,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18,140,000 
18,140,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction cost related to termination of debt
52,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
456,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other cost (benefit) related to debt purchase
4,136,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,138,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of debt purchase
 
$ 45,341,000 
$ 0 
$ 67,075,000 
 
 
 
 
 
 
 
 
 
 
 
 
$ 21,734,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period of letters of credit
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEBT (Summary of Debt) (Details) (USD $)
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Debt Instrument [Line Items]
 
 
 
Total short-term debt
$ 0 
$ 0 
$ 138,500,000 
Total long-term debt including current maturities
1,982,658,000 
1,980,464,000 
1,907,861,000 
Unamortized discounts and debt issuance costs
(21,531,000)
(23,734,000)
(25,975,000)
Less current maturities
131,000 
130,000 
14,124,000 
Total long-term debt
1,982,527,000 
1,980,334,000 
1,893,737,000 
Total debt
1,982,658,000 1
1,980,464,000 1
2,046,361,000 1
Estimated fair value of long-term debt
2,272,149,000 
2,204,816,000 
2,140,942,000 
10.125% notes due 2015 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
150,000,000 
6.50% notes due 2016 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
6.40% notes due 2017 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
7.00% notes due 2018 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
272,512,000 
272,512,000 
272,512,000 
10.375% notes due 2018 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
250,000,000 
250,000,000 
250,000,000 
7.50% notes due 2021 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
600,000,000 
600,000,000 
600,000,000 
8.85% notes due 2021 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
6,000,000 
6,000,000 
6,000,000 
4.50% notes due 2025 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
400,000,000 
400,000,000 
400,000,000 
7.15% notes due 2037 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
240,188,000 
240,188,000 
240,188,000 
10.125% notes due 2015 and 6.50% notes due 2016 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Unamortized deferred interest rate swap gain
2
2
523,000 2
Bank Line of Credit [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total short-term debt
3 4 5
3 4 5
138,500,000 3 4 5
Bank Line of Credit [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
235,000,000 3 4 5
235,000,000 3 4 5
3 4 5
Industrial Revenue Bonds [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
14,000,000 
Other Notes [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Total long-term debt including current maturities
$ 489,000 5
$ 498,000 5
$ 613,000 5
DEBT (Summary of Debt Additional Information) (Details) (USD $)
6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Jun. 30, 2016
10.125% notes due 2015 [Member]
Jun. 30, 2011
10.125% notes due 2015 [Member]
Apr. 30, 2015
6.50% notes due 2016 [Member]
Jun. 30, 2016
6.50% notes due 2016 [Member]
Jun. 30, 2011
6.50% notes due 2016 [Member]
Apr. 30, 2015
6.40% notes due 2017 [Member]
Jun. 30, 2016
6.40% notes due 2017 [Member]
Apr. 30, 2015
7.00% notes due 2018 [Member]
Mar. 31, 2015
7.00% notes due 2018 [Member]
Jun. 30, 2016
7.00% notes due 2018 [Member]
Jun. 30, 2016
10.375% notes due 2018 [Member]
Jun. 30, 2016
7.50% notes due 2021 [Member]
Jun. 30, 2016
8.85% notes due 2021 [Member]
Mar. 31, 2015
4.50% notes due 2025 [Member]
Jun. 30, 2016
4.50% notes due 2025 [Member]
Jun. 30, 2016
7.15% notes due 2037 [Member]
Jun. 30, 2016
Bank Line of Credit [Member]
Jun. 30, 2016
Bank Line of Credit [Member]
Jun. 30, 2016
Industrial Revenue Bonds [Member]
Jun. 30, 2016
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% 
6.40% 
6.40% 
7.00% 
7.00% 
7.00% 
10.375% 
7.50% 
8.85% 
4.50% 
4.50% 
7.15% 
 
 
 
 
Maturity year
 
 
 
2015 
 
2016 
2016 
 
2017 
2017 
2018 
2018 
2018 
2018 
2021 
2021 
2025 
2025 
2037 
 
 
2022 
 
Debt instrument face amount
$ 2,004,189,000 
$ 2,004,198,000 
$ 2,071,813,000 
 
 
 
 
$ 500,000,000 
 
 
 
 
 
 
 
 
$ 400,000,000 
 
 
 
 
 
 
Effective interest rate
 
 
 
 
 
 
 
 
 
 
 
 
7.87% 
10.63% 
7.75% 
8.88% 
 
4.65% 
8.05% 
 
1.25% 1 2 3
 
6.24% 3
DEBT (Summary of Standby Letters Of Credit) (Details) (USD $)
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Line of Credit Facility [Line Items]
 
 
 
 
 
 
Reclamation/restoration requirements
$ 217,043,000 
$ 220,581,000 
$ 226,594,000 
$ 234,919,000 
$ 238,689,000 
$ 226,565,000 
Standby Letters of Credit [Member]
 
 
 
 
 
 
Line of Credit Facility [Line Items]
 
 
 
 
 
 
Risk management insurance
34,111,000 
 
 
 
 
 
Reclamation/restoration requirements
5,729,000 
 
 
 
 
 
Total
$ 39,840,000 
 
 
 
 
 
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $)
1 Months Ended 6 Months Ended 1 Months Ended
Mar. 31, 2016
mi
May 31, 2007
mi
entity
Jun. 30, 2016
Texas Brine and Occidental Chemical Co [Member]
Jun. 30, 2016
Minimum [Member]
Cooperating Parties Group [Member]
Jun. 30, 2016
Maximum [Member]
EPA [Member]
Jun. 30, 2016
Maximum [Member]
Cooperating Parties Group [Member]
Jun. 30, 2016
Standby Letters of Credit [Member]
Jul. 31, 2016
Subsequent Event [Member]
item
Commitments And Contingencies Disclosure [Line Items]
 
 
 
 
 
 
 
 
Other Liabilities
 
 
 
 
 
 
$ 39,840,000 
 
Number of other companies to perform a Remedial Investigation/ Feasibility Study related to the Lower Passaic River Clean-Up lawsuit
 
70 
 
 
 
 
 
 
Number of miles of the River used in the Remedial Investigation/Feasibility Study
 
17 
 
 
 
 
 
 
Number of miles for bank-to-bank dredging remedy
 
 
 
 
 
 
 
Estimated implementation costs
 
 
 
475,000,000 
1,380,000,000 
725,000,000 
 
 
Total amount of damages claimed
 
 
$ 500,000,000 
 
 
 
 
 
Number of groundwater extraction wells
 
 
 
 
 
 
 
ASSET RETIREMENT OBLIGATIONS (Asset Retirement Obligations Operating Costs) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
ASSET RETIREMENT OBLIGATIONS [Abstract]
 
 
 
 
Accretion
$ 2,716 
$ 2,936 
$ 5,472 
$ 5,787 
Depreciation
1,621 
1,568 
3,314 
3,001 
Total
$ 4,337 
$ 4,504 
$ 8,786 
$ 8,788 
ASSET RETIREMENT OBLIGATIONS (Reconciliations Of Asset Retirement Obligations) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
ASSET RETIREMENT OBLIGATIONS [Abstract]
 
 
 
 
Balance at beginning of period
$ 220,581 
$ 238,689 
$ 226,594 
$ 226,565 
Liabilities incurred
505 
4,339 
505 
6,159 
Liabilities settled
(5,450)
(1,270)
(10,320)
(8,000)
Accretion expense
2,716 
2,936 
5,472 
5,787 
Revisions, net
(1,309)
(9,775)
(5,208)
4,408 
Balance at end of period
$ 217,043 
$ 234,919 
$ 217,043 
$ 234,919 
BENEFIT PLANS (Narrative) (Details)
6 Months Ended
Jun. 30, 2016
entity
BENEFIT PLANS [Abstract]
 
Number of funded, noncontributory defined benefit pension plans
Number of unfunded, nonqualified pension plans
Normal retirement age
65 years 
BENEFIT PLANS (Components of Net Periodic Benefit Cost) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Pension Plans, Defined Benefit [Member]
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
Service cost
$ 1,336 
$ 1,212 
$ 2,672 
$ 2,425 
Interest cost
9,126 
11,036 
18,252 
22,073 
Expected return on plan assets
(12,890)
(13,684)
(25,781)
(27,368)
Amortization of prior service cost (credit)
(10)
12 
(21)
24 
Amortization of actuarial (gain) loss
1,541 
5,455 
3,082 
10,909 
Net periodic pension/postretirement benefit cost (credit)
(897)
4,031 
(1,796)
8,063 
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
 
 
 
 
Pretax reclassification from AOCI included in net periodic pension/postretirement benefit cost (credit)
1,531 
5,467 
3,061 
10,933 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
Service cost
280 
474 
561 
947 
Interest cost
303 
626 
605 
1,243 
Amortization of prior service cost (credit)
(1,059)
(1,058)
(2,118)
(2,116)
Amortization of actuarial (gain) loss
(437)
23 
(875)
19 
Net periodic pension/postretirement benefit cost (credit)
(913)
65 
(1,827)
93 
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
 
 
 
 
Pretax reclassification from AOCI included in net periodic pension/postretirement benefit cost (credit)
$ (1,496)
$ (1,035)
$ (2,993)
$ (2,097)
OTHER COMPREHENSIVE INCOME (Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
OTHER COMPREHENSIVE INCOME [Abstract]
 
 
 
Cash flow hedges
$ (13,899)
$ (14,494)
$ (14,997)
Pension and postretirement plans
(105,535)
(105,575)
(136,014)
Total
$ (119,434)
$ (120,069)
$ (151,011)
OTHER COMPREHENSIVE INCOME (Changes In Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
AOCI, Net of Tax, Beginning Balance
 
 
$ (120,069)
 
Amounts reclassified from AOCI
 
 
635 
 
Other comprehensive income
321 
5,774 
635 
10,703 
AOCI, Net of Tax, Ending Balance
(119,434)
(151,011)
(119,434)
(151,011)
Reclassification Adjustment for Cash Flow Hedge Losses [Member]
 
 
 
 
AOCI, Net of Tax, Beginning Balance
 
 
(14,494)
 
Amounts reclassified from AOCI
 
 
595 
 
Other comprehensive income
 
 
595 
 
AOCI, Net of Tax, Ending Balance
(13,899)
 
(13,899)
 
Amortization of Pension and Postretirement Plan Actuarial Loss and Prior Service Cost [Member]
 
 
 
 
AOCI, Net of Tax, Beginning Balance
 
 
(105,575)
 
Amounts reclassified from AOCI
 
 
40 
 
Other comprehensive income
 
 
40 
 
AOCI, Net of Tax, Ending Balance
$ (105,535)
 
$ (105,535)
 
OTHER COMPREHENSIVE INCOME (Reclassification Of Amounts From Other Comprehensive Income Loss To Earnings) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Interest expense
$ (33,333)
$ (83,651)
$ (67,065)
$ (146,132)
Selling, administrative and general expenses
82,681 
69,197 
159,149 
135,960 
Benefit from income taxes
54,200 
19,867 
63,964 
5,791 
Net earnings
123,750 
48,162 
142,674 
8,484 
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Net earnings
321 
5,774 
635 
10,703 
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
497 
5,094 
983 
8,815 
Benefit from income taxes
(196)
(2,017)
(388)
(3,490)
Net earnings
301 
3,077 
595 
5,325 
Amortization of Pension and Postretirement Plan Actuarial Loss and Prior Service Cost [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Cost of revenues
27 
3,643 
55 
7,175 
Selling, administrative and general expenses
788 
12 
1,660 
Benefit from income taxes
(13)
(1,734)
(27)
(3,457)
Net earnings
$ 20 
$ 2,697 
$ 40 
$ 5,378 
EQUITY (Narrative) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
EQUITY [Abstract]
 
 
 
Common stock, par value
$ 1 
$ 1 
$ 1 
Preferred stock issued
 
 
Number of shares held in treasury
Shares purchased and retired during the period
636,659 
228,000 
Cost of shares purchased and retired
$ 69,156 
$ 0 
$ 21,475 
Cash payment for stock repurchase
$ 69,156 
$ 0 
 
Shares remaining under the current authorization repurchase program
2,546,757 
 
 
EQUITY (Change In Total Equity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
EQUITY [Abstract]
 
 
 
 
 
Balance at beginning of year
 
 
$ 4,454,188 
$ 4,176,699 
$ 4,176,699 
Net earnings
123,750 
48,162 
142,674 
8,484 
 
Share-based compensation, net of shares withheld for taxes
 
 
(30,253)
36,485 
 
Purchase and retirement of common stock
 
 
(69,156)
(21,475)
Share-based compensation expense
 
 
10,832 
9,679 
 
Excess tax benefits from share-based compensation
 
 
23,749 
11,457 
 
Cash dividends on common stock ($0.40/$0.20 per share)
 
 
(53,338)
(26,549)
 
Other comprehensive income
321 
5,774 
635 
10,703 
 
Other
 
 
(1)
 
Balance at end of period
$ 4,479,331 
$ 4,226,957 
$ 4,479,331 
$ 4,226,957 
$ 4,454,188 
Cash dividend on common stock, per share
 
 
$ 0.40 
$ 0.20 
 
SEGMENT REPORTING (Narrative) (Details)
6 Months Ended
Jun. 30, 2016
segment
SEGMENT REPORTING [Abstract]
 
Number of operating segments
Number of reportable segments
SEGMENT REPORTING (Segment Financial Disclosure) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total revenues
$ 956,825 
$ 895,143 
$ 1,711,552 
$ 1,526,436 
 
 
Gross profit
292,184 
234,449 
456,903 
312,314 
 
 
Depreciation, depletion, accretion and amortization
71,908 
68,384 
141,314 
135,108 
 
 
Cash and cash equivalents
91,902 
74,736 
91,902 
74,736 
284,060 
141,273 
Total assets
8,290,113 
8,195,883 
8,290,113 
8,195,883 
8,301,632 
 
Identifiable assets [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total assets
8,175,084 1
8,007,517 1
8,175,084 1
8,007,517 1
 
 
Segment sales [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total revenues
1,017,246 
943,371 
1,813,520 
1,611,595 
 
 
Aggregates [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Gross profit
254,008 
207,285 
402,392 
274,950 
 
 
Depreciation, depletion, accretion and amortization
59,414 
57,003 
116,925 
112,519 
 
 
Aggregates [Member] |
Identifiable assets [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total assets
7,742,618 1
7,497,240 1
7,742,618 1
7,497,240 1
 
 
Aggregates [Member] |
Segment sales [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total revenues
791,497 2
733,379 2
1,426,365 2
1,236,888 2
 
 
Aggregates [Member] |
Intersegment sales [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total revenues
(60,421)
(48,228)
(101,968)
(85,159)
 
 
Asphalt Mix [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Gross profit
30,925 
21,135 
43,139 
29,953 
 
 
Depreciation, depletion, accretion and amortization
4,136 
4,098 
8,368 
8,007 
 
 
Asphalt Mix [Member] |
Identifiable assets [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total assets
237,546 1
319,284 1
237,546 1
319,284 1
 
 
Asphalt Mix [Member] |
Segment sales [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total revenues
142,055 
128,998 
231,154 
232,069 
 
 
Concrete [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Gross profit
6,146 
4,892 
9,623 
5,702 
 
 
Depreciation, depletion, accretion and amortization
3,088 
2,774 
6,069 
5,502 
 
 
Concrete [Member] |
Identifiable assets [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total assets
189,355 1
185,473 1
189,355 1
185,473 1
 
 
Concrete [Member] |
Segment sales [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total revenues
81,246 
78,598 
151,643 
138,387 
 
 
Calcium [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Gross profit
1,105 
1,137 
1,749 
1,709 
 
 
Depreciation, depletion, accretion and amortization
196 
164 
379 
326 
 
 
Calcium [Member] |
Identifiable assets [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total assets
5,565 1
5,520 1
5,565 1
5,520 1
 
 
Calcium [Member] |
Segment sales [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total revenues
2,448 
2,396 
4,358 
4,251 
 
 
Other [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Depreciation, depletion, accretion and amortization
5,074 
4,345 
9,573 
8,754 
 
 
Corporate [Member]
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Total assets
$ 23,127 
$ 113,630 
$ 23,127 
$ 113,630 
 
 
SUPPLEMENTAL CASH FLOW INFORMATION (Supplemental Information Referable to Consolidated Statements of Cash Flows) (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract]
 
 
Interest (exclusive of amount capitalized)
$ 67,679 
$ 134,215 
Income taxes
64,556 
31,755 
Accrued liabilities for purchases of property, plant & equipment
20,850 
13,651 
Liabilities assumed
2,426 
Fair value of noncash assets and liabilities exchanged
$ 0 
$ 20,000 
GOODWILL (Narrative) (Details) (USD $)
6 Months Ended
Jun. 30, 2016
segment
Jun. 30, 2015
GOODWILL [Abstract]
 
 
Goodwill impairment charges
$ 0 
$ 0 
Number of reportable segments
 
GOODWILL (Changes in Carrying Amount of Goodwill by Reportable Segment) (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Goodwill, Beginning Balance
$ 3,094,824 
$ 3,094,824 
Goodwill of acquired businesses
 
Goodwill of divested businesses
 
Goodwill, Ending Balance
3,094,824 
3,094,824 
Aggregates [Member]
 
 
Goodwill, Beginning Balance
3,003,191 
 
Goodwill of acquired businesses
 
Goodwill of divested businesses
 
Goodwill, Ending Balance
3,003,191 
 
Asphalt Mix [Member]
 
 
Goodwill, Beginning Balance
91,633 
 
Goodwill of acquired businesses
 
Goodwill of divested businesses
 
Goodwill, Ending Balance
91,633 
 
Concrete [Member]
 
 
Goodwill, Beginning Balance
 
Goodwill of acquired businesses
 
Goodwill of divested businesses
 
Goodwill, Ending Balance
 
Calcium [Member]
 
 
Goodwill, Beginning Balance
 
Goodwill of acquired businesses
 
Goodwill of divested businesses
 
Goodwill, Ending Balance
$ 0 
 
ACQUISITIONS AND DIVESTITURES (Narrative) (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Significant Acquisitions and Disposals [Line Items]
 
 
 
 
 
Total consideration
 
 
 
 
$ 47,198,000 
Payment for acquisition of businesses
 
 
1,611,000 
21,387,000 
27,198,000 
Exchanges of real property and businesses
 
 
 
 
20,000,000 
Assets held for sale
Gain on sale of properties and businesses
356,000 
249,000 
911,000 
6,624,000 
 
Purchases of property, plant & equipment
 
 
199,764,000 
148,721,000 
 
Aggregates [Member] |
Arizona and New Mexico [Member]
 
 
 
 
 
Significant Acquisitions and Disposals [Line Items]
 
 
 
 
 
Number of facilities acquired
 
 
 
 
Aggregates [Member] |
Tennessee [Member]
 
 
 
 
 
Significant Acquisitions and Disposals [Line Items]
 
 
 
 
 
Number of facilities acquired
 
 
 
 
Concrete [Member] |
Arizona and New Mexico [Member]
 
 
 
 
 
Significant Acquisitions and Disposals [Line Items]
 
 
 
 
 
Number of facilities acquired
 
 
 
 
Asphalt Mix [Member] |
Arizona [Member]
 
 
 
 
 
Significant Acquisitions and Disposals [Line Items]
 
 
 
 
 
Number of facilities acquired
 
 
 
 
13 
Trucking Business Assets [Member]
 
 
 
 
 
Significant Acquisitions and Disposals [Line Items]
 
 
 
 
 
Payment for acquisition of businesses
 
 
1,611,000 
 
 
California ready-mixed concrete operations [Member] |
California [Member]
 
 
 
 
 
Significant Acquisitions and Disposals [Line Items]
 
 
 
 
 
Number of facilities divested
 
 
 
 
12 
Gain on sale of properties and businesses
 
 
 
 
$ 5,886,000 
NEW ACCOUNTING STANDARDS (Details)
12 Months Ended
Dec. 31, 2015
NEW ACCOUNTING STANDARDS [Abstract]
 
LIFO method used for percentage of inventory
67.00%