VULCAN MATERIALS CO, 10-Q filed on 8/4/2010
Quarterly Report
Document and Entity Information (USD $)
6 Months Ended
Jun. 30, 2010
Jun. 30, 2009
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
Vulcan Materials CO 
 
Entity Central Index Key
0001396009 
 
Document Type
10-Q 
 
Document Period End Date
06/30/2010 
 
Amendment Flag
FALSE 
 
Document Fiscal Year Focus
2010 
 
Document Fiscal Period Focus
Q2 
 
Current Fiscal Year End Date
12/31 
 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Public Float
 
$ 5,362,319,558 
Entity Common Stock, Shares Outstanding
128,269,559 
 
Condensed Consolidated Balance Sheets (Unaudited, except for December 31) (USD $)
In Thousands
Jun. 30, 2010
Dec. 31, 2009
Jun. 30, 2009
Condensed Consolidated Balance Sheets [Abstract]
 
 
 
Assets
 
 
 
Cash and cash equivalents
$ 42,173 
$ 22,265 
$ 43,711 1
Restricted cash
3,746 
1
Medium-term investments
3,910 
4,111 
6,755 1
Accounts and notes receivable
 
 
 
Accounts and notes receivable, gross
398,613 
276,746 
394,938 1
Less: Allowance for doubtful accounts
(9,290)
(8,722)
(9,437)1
Accounts and notes receivable, net
389,323 
268,024 
385,501 1
Inventories
 
 
 
Finished products
246,956 
261,752 
290,451 1
Raw materials
23,114 
21,807 
32,035 1
Products in process
3,784 
3,907 
5,133 1
Operating supplies and other
37,486 
37,567 
35,964 1
Inventories
311,340 
325,033 
363,583 1
Deferred income taxes
59,525 
57,967 
69,080 1
Prepaid expenses
42,422 
50,817 
58,425 1
Assets held for sale
14,864 
15,072 
1
Total current assets
867,303 
743,289 
927,055 1
Investments and long-term receivables
34,078 
33,283 
30,614 1
Property, plant & equipment
 
 
 
Property, plant & equipment, cost
6,632,580 
6,653,261 
6,672,394 1
Reserve for depr., depl. & amort.
(2,915,565)
(2,778,590)
(2,644,146)1
Property, plant & equipment, net
3,717,015 
3,874,671 
4,028,248 1
Goodwill
3,093,979 
3,093,979 
3,093,979 1
Other intangible assets, net
681,059 
682,643 
683,092 1
Other assets
101,610 
105,085 
87,339 1
Total assets
8,495,044 
8,532,950 
8,850,327 1
Liabilities
 
 
 
Current maturities of long-term debt
425,300 
385,381 
60,417 1
Short-term borrowings
320,000 
236,512 
412,300 1
Trade payables and accruals
168,269 
121,324 
145,744 1
Other current liabilities
160,151 
113,109 
130,103 1
Liabilities of assets held for sale
409 
369 
1
Total current liabilities
1,074,129 
856,695 
748,564 1
Long-term debt
2,001,180 
2,116,120 
2,521,190 1
Deferred income taxes
836,702 
887,268 
928,687 1
Other noncurrent liabilities
538,929 
620,845 
617,651 1
Total liabilities
4,450,940 
4,480,928 
4,816,092 1
Other commitments and contingencies (Notes 13 & 19)
 
 
 
Shareholders' equity
 
 
 
Common stock, $1 par value
128,270 
125,912 
124,989 1
Capital in excess of par value
2,477,672 
2,368,228 
2,316,507 1
Retained earnings
1,625,620 
1,752,240 
1,774,113 1
Accumulated other comprehensive loss
(187,458)
(194,358)
(181,374)1
Shareholders' equity
4,044,104 
4,052,022 
4,034,235 1
Total liabilities and shareholders' equity
$ 8,495,044 
$ 8,532,950 
$ 8,850,327 1
Condensed Consolidated Balance Sheets (Unaudited, except for December 31) (Parenthetical) (USD $)
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2009
Jun. 30, 2009
Shareholders' equity
 
 
 
 
Common stock, par value
$ 1 
$ 1 
$ 1 
$ 1 1
Condensed Consolidated Statements of Earnings (Unaudited) (USD $)
In Thousands, except Per Share data
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Condensed Consolidated Statements of Earnings [Abstract]
 
 
 
 
Net sales
$ 692,758 
$ 1,157,293 
$ 681,380 
$ 1,249,275 
Delivery revenues
43,394 
72,122 
40,479 
72,878 
Total revenues
736,152 
1,229,415 
721,859 
1,322,153 
Cost of goods sold
570,423 
1,034,063 
535,546 
1,025,834 
Delivery costs
43,394 
72,122 
40,479 
72,878 
Cost of revenues
613,817 
1,106,185 
576,025 
1,098,712 
Gross profit
122,335 
123,230 
145,834 
223,441 
Selling, administrative and general expenses
83,376 
169,872 
79,353 
159,070 
Gain on sale of property, plant & equipment and businesses, net
1,362 
49,734 
654 
3,157 
Charge for legal settlement
40,000 
40,000 
Other operating income (expense), net
889 
1,347 
(1,451)
(3,170)
Operating earnings (loss)
1,210 
(35,561)
65,684 
64,358 
Other income (expense), net
(1,233)
144 
2,895 
1,820 
Interest income
481 
971 
687 
1,482 
Interest expense
44,204 
87,987 
44,073 
87,992 
Earnings (loss) from continuing operations before income taxes
(43,746)
(122,433)
25,193 
(20,332)
Provision (benefit) for income taxes
(21,231)
(55,444)
9,632 
(3,638)
Earnings (loss) from continuing operations
(22,515)
(66,989)
15,561 
(16,694)
Earnings (loss) on discontinued operations, net of tax (Note 2)
(1,477)
4,250 
6,651 
6,125 
Net earnings (loss)
(23,992)
(62,739)
22,212 
(10,569)
Basic earnings (loss) per share
 
 
 
 
Continuing operations
(0.18)
(0.53)
0.14 
(0.15)
Discontinued operations
(0.01)
0.04 
0.06 
0.06 
Net earnings (loss) per share
(0.19)
(0.49)
0.20 
(0.09)
Diluted earnings (loss) per share
 
 
 
 
Continuing operations
(0.18)
(0.53)
0.14 
(0.15)
Discontinued operations
(0.01)
0.04 
0.06 
0.06 
Net earnings (loss) per share
(0.19)
(0.49)
0.20 
(0.09)
Weighted-average common shares outstanding
 
 
 
 
Basic
128,168 
127,452 
113,477 
112,045 
Assuming dilution
128,168 
127,452 
113,829 
112,045 
Cash dividends declared per share of common stock
0.25 
0.5 
0.49 
0.98 
Depreciation, depletion, accretion and amortization
$ 97,280 
$ 191,476 
$ 99,600 
$ 198,915 
Effective tax rate from continuing operations
48.5% 
45.3% 
38.2% 
17.9% 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands
6 Months Ended
Jun. 30,
2010
2009
Condensed Consolidated Statements of Cash Flows [Abstract]
 
 
Operating Activities
 
 
Net loss
$ (62,739)
$ (10,569)
Adjustments to reconcile net loss to net cash provided by operating activities
 
 
Depreciation, depletion, accretion and amortization
191,476 
198,915 
Net gain on sale of property, plant & equipment and businesses
(58,527)
(3,880)
Contributions to pension plans
(21,075)
(2,242)
Share-based compensation
10,524 
14,010 
Deferred tax provision
(54,755)
5,671 
Changes in assets and liabilities before initial effects of business acquisitions and dispositions
2,585 
(35,850)
Other, net
11,167 
3,347 
Net cash provided by operating activities
18,656 
169,402 
Investing Activities
 
 
Purchases of property, plant & equipment
(42,158)
(60,101)
Proceeds from sale of property, plant & equipment
3,224 
4,051 
Proceeds from sale of businesses, net of transaction costs
50,954 
11,537 
Payment for businesses acquired, net of acquired cash
(36,980)
Increase in restricted cash
(3,746)
Redemption of medium-term investments
22 
30,590 
Other, net
(305)
714 
Net cash provided by (used for) investing activities
7,991 
(50,189)
Financing Activities
 
 
Net short-term borrowings (payments)
83,488 
(672,176)
Payment of current maturities and long-term debt
(75,188)
(281,461)
Proceeds from issuance of long-term debt, net of discounts
397,660 
Debt issuance costs
(3,033)
Proceeds from issuance of common stock
35,314 
578,237 
Dividends paid
(63,600)
(108,752)
Proceeds from exercise of stock options
12,597 
3,697 
Other, net
650 
132 
Net cash used for financing activities
(6,739)
(85,696)
Net increase in cash and cash equivalents
19,908 
33,517 
Cash and cash equivalents at beginning of year
22,265 
10,194 
Cash and cash equivalents at end of period
$ 42,173 
$ 43,711 1
Basis of Presentation
Basis of Presentation
Note 1   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. 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, 2010 are not necessarily indicative of the results that may be expected for the year ended December 31, 2010. For further information, refer to the consolidated financial statements and footnotes included in our most recent Annual Report on Form 10-K.
We disaggregated our asphalt mix and concrete operating segments for reporting purposes as of January 1, 2010 (see Note 17).
Due to the 2005 sale of our Chemicals business as presented in Note 2, the operating results of the Chemicals business are presented as discontinued operations in the accompanying Condensed Consolidated Statements of Earnings.
Restricted Cash — We identified a portion of the proceeds from the disposition of three aggregates facilities during the first quarter of 2010 (see Note 14) for potential use in IRS Section 1031 like-kind exchange transactions. This cash is restricted from withdrawal or usage as of June 30, 2010. The restriction expires in the third quarter of 2010.
Correction of Prior Period Financial Statements — During the third quarter of 2009, we completed a comprehensive analysis of our deferred income tax balances and concluded that our deferred income tax liabilities were overstated. The errors arose during the fourth quarter of 2008 and during periods prior to January 1, 2006, and were not material to previously issued financial statements. However, correcting the errors in 2009 would have materially impacted that year’s deferred tax provision. As a result, we restated all affected prior period financial statements in our Annual Report on Form 10-K for the year ended December 31, 2009 and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009.
A summary of the effects of the correction of the errors on our Condensed Consolidated Balance Sheet as of June 30, 2009 is presented in the table below (in thousands of dollars):
                         
    June 30, 2009
    As           As
    Reported   Corrections   Restated
 
 
                       
Goodwill
    $3,091,524       $2,455       $3,093,979  
 
Total assets
    $8,847,872       $2,455       $8,850,327  
 
 
                       
Deferred income taxes
    $957,248       ($28,561 )     $928,687  
 
Total liabilities
    $4,844,653       ($28,561 )     $4,816,092  
 
 
                       
Retained earnings
    $1,743,097       $31,016       $1,774,113  
 
Shareholders’ equity
    $4,003,219       $31,016       $4,034,235  
 
 
                       
Total liabilities and shareholders’ equity
    $8,847,872       $2,455       $8,850,327  
 
Discontinued Operations
Discontinued Operations
Note 2    Discontinued Operations
In June 2005, we sold substantially all the assets of our Chemicals business to Basic Chemicals, a subsidiary of Occidental Chemical Corporation. In addition to the initial cash proceeds, Basic Chemicals was required to make payments under two earn-out agreements subject to certain conditions. During 2007, we received the final payment under the ECU (electrochemical unit) earn-out, bringing cumulative cash receipts to its $150,000,000 cap.
Proceeds under the second earn-out agreement are determined based on the performance of the hydrochlorocarbon product HCC-240fa (commonly referred to as 5CP) from the closing of the transaction through December 31, 2012 (5CP earn-out). Under this earn-out agreement, cash plant margin for 5CP, as defined in the Asset Purchase Agreement, in excess of an annual threshold amount is shared equally between Vulcan and Basic Chemicals. The primary determinant of the value for this earn-out is the level of growth in 5CP sales volume. At the June 7, 2005 closing date, the value assigned to the 5CP earn-out was limited to an amount that resulted in no gain on the sale of the business, as the gain was contingent in nature. A gain on disposal of the Chemicals business is recognized to the extent cumulative cash receipts under the 5CP earn-out exceed the initial value recorded.
In March 2010, we received a payment of $8,794,000 (recorded as gain on disposal of discontinued operations) under the 5CP earn-out related to performance during the year ended December 31, 2009. Any future payments received pursuant to the 5CP earn-out will be recorded as additional gain on disposal of discontinued operations. During 2009, we received $11,625,000 under the 5CP earn-out related to the year ended December 31, 2008. These 2009 receipts resulted in a gain on disposal of discontinued operations of $812,000 for 2009. Through June 30, 2010, we have received a total of $42,707,000 under the 5CP earn-out, a total of $9,606,000 in excess of the receivable recorded on the date of disposition.
We are liable for a cash transaction bonus payable to certain former key Chemicals employees. This transaction bonus is payable if cash receipts realized from the two earn-out agreements described above exceed an established minimum threshold. The bonus is payable annually based on the prior year’s results. We expect the 2010 payout will be approximately $882,000 and have accrued this amount as of June 30, 2010. In comparison, we had accrued approximately $728,000 as of June 30, 2009.
There were no net sales or revenues from discontinued operations during the six month periods ended June 30, 2010 or 2009. Results from discontinued operations are as follows (in thousands of dollars):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
Discontinued operations
                               
Earnings (loss) from results
    ($1,821 )     $11,121       ($860 )     $9,721  
Gain on disposal, net of transaction bonus
    (2 )     (28 )     7,912       495  
Income tax (provision) benefit
    346       (4,442 )     (2,802 )     (4,091 )
 
Earnings (loss) on discontinued operations, net of tax
    ($1,477 )     $6,651       $4,250       $6,125  
 
The 2010 pretax losses from results of discontinued operations of ($1,821,000) for the second quarter and ($860,000) for the six months ended June 30, 2010 are due primarily to general and product liability costs, including legal defense costs, and environmental remediation costs associated with our former Chemicals business. The pretax earnings from results of discontinued operations in 2009 of $11,121,000 for the second quarter and $9,721,000 for the six months ended June 30, 2009 relate primarily to a settlement during the second quarter with one of our insurers in the Modesto case (lawsuit settled in October 2007 involving the perchloroethylene product) resulting in a $12,238,000 pretax gain, after deducting legal fees and other expenses. The insurance proceeds and associated gain represent a partial recovery of legal and settlement costs recognized in prior periods.
Earnings Per Share (EPS)
Earnings Per Share (EPS)
Note 3    Earnings Per Share (EPS)
We report two earnings per share numbers: basic and diluted. These are computed by dividing net earnings (loss) by the weighted-average common shares outstanding (basic EPS) or weighted-average common shares outstanding assuming dilution (diluted EPS) as set forth below (in thousands of shares):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
Weighted-average common shares outstanding
    128,168       113,477       127,452       112,045  
Dilutive effect of
                               
Stock options/SOSARs
    0       144       0       0  
Other stock compensation plans
    0       208       0       0  
 
Weighted-average common shares outstanding, assuming dilution
    128,168       113,829       127,452       112,045  
 
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. Because we operated at a loss for the three and six month periods ended June 30, 2010 and the six month period ended June 30, 2009, 513,000 shares, 533,000 shares and 464,000 shares, respectively, that otherwise would have been included in our diluted weighted-average common shares outstanding, computation, were excluded.
The number of antidilutive common stock equivalents for which the exercise price exceeds the weighted-average market price, are as follows (in thousands of shares):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
Antidilutive common stock equivalents
    4,067       5,104       4,254       3,823  
 
Income Taxes
Income Taxes
Note 4    Income Taxes
Our effective tax rate is based on expected income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate. For interim financial reporting, except in circumstances as described in the following paragraph, we estimate the annual tax rate based on projected taxable income for the full year and record a quarterly tax provision in accordance with the anticipated annual rate. As the year progresses, we refine the estimates of the year’s taxable income as new information becomes available, including year-to-date financial results. This continual estimation process often results in a change to our expected effective tax rate for the year. When this occurs, we adjust the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual tax rate. Significant judgment is required in determining our effective tax rate and in evaluating our tax positions.
When application of the estimated annual effective tax rate distorts the financial results of an interim period, we calculate the income tax provision or benefit using an alternative methodology as prescribed by accounting standards. This alternative methodology results in an income tax provision or benefit based solely on the year-to-date pretax loss as adjusted for permanent differences on a pro rata basis.
We recognize a tax benefit associated with an uncertain tax position when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. Our liability associated with 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. Such adjustments are recognized entirely in the period in which they are identified. Our effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as we consider appropriate.
We applied the alternative methodology discussed above in the determination of the income tax benefit from continuing operations for the three and six month periods ending June 30, 2010. We recognized a tax benefit from continuing operations of $21,231,000 for the second quarter and $55,444,000 for the six months ended June 30, 2010. In 2009, we recognized tax expense from continuing operations of $9,632,000 for the second quarter and a tax benefit from continuing operations of $3,638,000 for the six months ended June 30, 2009. The increase in our income tax benefit, after recording the effect of the pretax loss at the statutory rate, resulted largely from applying the alternative methodology in 2010.
Medium-term Investments
Medium-term Investments
Note 5    Medium-term Investments
We held investments in money market and other money funds at The Reserve, an investment management company specializing in such funds, as follows: June 30, 2010 — $5,532,000, December 31, 2009 — $5,554,000 and June 30, 2009 — $8,247,000. The substantial majority of our investment was held in the Reserve International Liquidity Fund, Ltd. On September 15, 2008, Lehman Brothers Holdings Inc. filed for bankruptcy protection. In the following days, The Reserve announced that it was closing all of its money funds, some of which owned Lehman Brothers securities, and was suspending redemptions from and purchases of its funds, including the Reserve International Liquidity Fund. As a result of the temporary suspension of redemptions and the uncertainty as to the timing of such redemptions, we changed the classification of our investments in The Reserve funds from cash and cash equivalents to medium-term investments and reduced the carrying value of our investment to its estimated fair value, as follows: June 30, 2010 — $3,910,000, December 31, 2009 — $4,111,000 and June 30, 2009 — $6,755,000. See Note 7 for further discussion of the fair value determination.
The Reserve redeemed $22,000 of our investment during the six months ended June 30, 2010 and $30,590,000 during the six months ended June 30, 2009. Based on public statements issued by The Reserve and the maturity dates of the underlying investments, we believe that proceeds from the liquidation of the money funds in which we have investments will be received within twelve months of June 30, 2010, and therefore, such investments are classified as current.
Derivative Instruments
Derivative Instruments
Note 6    Derivative Instruments
During the normal course of operations, we are exposed to market risks including fluctuations in interest rates, fluctuations in foreign currency exchange rates and changes in commodity pricing. From time to time, and consistent with our risk management policies, we use derivative instruments to hedge against these market risks. We do not utilize derivative instruments for trading or other speculative purposes. The interest rate swap agreements described below were designated as cash flow hedges of future interest payments.
In December 2007, we issued $325,000,000 of 3-year floating (variable) rate notes that bear interest at 3-month London Interbank Offered Rate (LIBOR) plus 1.25% per annum. Concurrently, we entered into a 3-year interest rate swap agreement in the stated (notional) amount of $325,000,000. Under this agreement, we pay a fixed interest rate of 5.25% and receive 3-month LIBOR plus 1.25% per annum. Concurrent with each quarterly interest payment, the portion of this swap related to that interest payment is settled and the associated realized gain or loss is recognized. The pretax loss of $5,614,000 accumulated in Other Comprehensive Income (OCI) related to this interest rate swap will be reclassified to earnings by the end of the current year in conjunction with the retirement of the related debt.
Additionally, during 2007, we entered into fifteen forward starting interest rate swap agreements for a total notional amount of $1,500,000,000. On December 11, 2007, upon the issuance of the related fixed-rate debt, we terminated and settled for a cash payment of $57,303,000 a portion of these forward starting swaps with an aggregate notional amount of $900,000,000 ($300,000,000 5-year, $350,000,000 10-year and $250,000,000 30-year). In December 2007, the remaining forward starting swaps on an aggregate notional amount of $600,000,000 were extended to August 29, 2008. On June 20, 2008, upon the issuance of $650,000,000 of related fixed-rate debt, we terminated and settled for a cash payment of $32,474,000 the remaining forward starting swaps. Amounts accumulated in other comprehensive loss are being amortized to interest expense over the term of the related debt. For the 12-month period ending June 30, 2011, we estimate that $7,908,000 of the pretax loss accumulated in OCI will be reclassified to earnings.
Derivative instruments are recognized at fair value in the accompanying Condensed Consolidated Balance Sheets. Fair values of derivative instruments designated as hedging instruments are as follows (in thousands of dollars):
                                 
            Fair Value1
            June 30   December 31   June 30
    Balance Sheet Location   2010   2009   2009
 
Liability derivatives
                               
Interest rate derivatives
  Other current liabilities     $5,614       $11,193       $0  
Interest rate derivatives
  Other noncurrent liabilities     0       0       14,069  
 
Total derivatives liability
            $5,614       $11,193       $14,069  
 
 
  1   See Note 7 for further discussion of the fair value determination.
The effects of the cash flow hedge derivative instruments on the accompanying Condensed Consolidated Statements of Earnings for the three and six months ended June 30 are as follows (in thousands of dollars):
                                         
            Three Months Ended   Six Months Ended
    Location on   June 30   June 30
    Statement   2010   2009   2010   2009
 
Interest rate derivatives
                                       
Gain (loss) recognized in OCI (effective portion)
  Note 8     $234       ($871 )     ($574 )     ($1,670 )
 
                                       
Loss reclassified from Accumulated OCI (effective portion)
  Interest expense     (4,997 )     (3,957 )     (9,895 )     (7,327 )
 
Fair Value Measurements
Fair Value Measurements
Note 7    Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as described below:
     
  Level 1:
  Quoted prices in active markets for identical assets or liabilities;
  Level 2:
  Inputs that are derived principally from or corroborated by observable market data;
  Level 3:
  Inputs that are unobservable and significant to the overall fair value measurement.
Our assets and liabilities that are subject to fair value measurements on a recurring basis are summarized below (in thousands of dollars):
                         
    Level 1
    June 30   December 31   June 30
    2010   2009   2009
 
Fair value recurring
                       
Rabbi Trust
                       
Mutual funds
    $10,787       $10,490       $9,245  
Equities
    7,236       8,472       6,562  
 
Net asset
    $18,023       $18,962       $15,807  
 
                         
    Level 2
    June 30   December 31   June 30
    2010   2009   2009
 
Fair value recurring
                       
Medium-term investments
    $3,910       $4,111       $6,755  
Interest rate derivative
    (5,614 )     (11,193 )     (14,069 )
Rabbi Trust
                       
Common/collective trust funds
    3,185       4,084       3,816  
 
Net asset (liability)
    $1,481       ($2,998 )     ($3,498 )
 
The fair values of the Rabbi Trust 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. Investments in common/collective trust funds are stated at estimated fair value based on the underlying investments in those funds. The underlying investments are comprised of short-term, highly liquid assets in commercial paper, short-term bonds and treasury bills.
The medium-term investments are comprised of money market and other money funds, as more fully described in Note 5. Using a market approach, we estimated the fair value of these funds by applying our historical distribution ratio to the liquidated value of investments in The Reserve funds. Additionally, we estimated a discount against our investment balances to allow for the risk that legal and accounting costs and pending or threatened claims and litigation against The Reserve and its management may reduce the principal available for distribution.
The interest rate derivative consists of an interest rate swap agreement applied to our $325,000,000 3-year notes issued December 2007 and is more fully described in Note 6. This interest rate swap is measured at fair value using a market approach based on the prevailing market interest rate as of the measurement date.
The carrying values of our cash equivalents, restricted cash, accounts and notes receivable, current maturities of long-term debt, trade payables, accrued expenses and short-term borrowings 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 11, respectively.
Comprehensive Income
Comprehensive Income
Note 8   Comprehensive Income
Comprehensive income (loss) includes charges and credits to equity from nonowner sources and comprises two subsets: net earnings (loss) and other comprehensive income (loss). Total comprehensive income (loss) comprises the following (in thousands of dollars):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
Net earnings (loss)
    ($23,992 )     $22,212       ($62,739 )     ($10,569 )
Other comprehensive income (loss)
                               
Fair value adjustments to cash flow hedges, net of tax
    124       (519 )     (320 )     (995 )
Reclassification adjustment for cash flow hedges included in net income (loss), net of tax
    2,645       2,352       5,498       4,334  
Amortization of pension and postretirement plan actuarial loss and prior service cost, net of tax
    823       294       1,722       569  
 
Total comprehensive income (loss)
    ($20,400 )     $24,339       ($55,839 )     ($6,661 )
 
Amounts accumulated in other comprehensive loss, net of tax, are as follows (in thousands of dollars):
                         
    June 30   December 31   June 30
    2010   2009   2009
 
Cash flow hedges
    ($44,187 )     ($49,365 )     ($53,180 )
Pension and postretirement plans
    (143,271 )     (144,993 )     (128,194 )
 
Accumulated other comprehensive loss
    ($187,458 )        ($194,358 )     ($181,374 )
 
Shareholders' Equity
Shareholders' Equity
Note 9   Shareholders’ Equity
In March 2010, we issued 1,190,000 shares of common stock to our qualified pension plan (par value of $1 per share) as described in Note 10. The transaction increased shareholders’ equity by $53,864,000 (common stock $1,190,000 and capital in excess of par $52,674,000).
In June 2009, we completed a public offering of common stock (par value of $1 per share) resulting in the issuance of 13,225,000 common shares at a price of $41.00 per share. The total number of shares issued through the offering included 1,725,000 shares issued upon full exercise of the underwriters’ option to purchase additional shares. We received net proceeds of $519,993,000 (net of commissions and transaction costs of $22,232,000) from the sale of the shares. The net proceeds from the offering were used for debt reduction and general corporate purposes. The transaction increased shareholders’ equity by $519,993,000 (common stock $13,225,000 and capital in excess of par $506,768,000).
We periodically issue shares of common stock to the trustee of our 401(k) savings and retirement plan to satisfy the plan participants’ elections to invest in our common stock. The resulting cash proceeds provide a means of improving cash flow, increasing shareholders’ equity and reducing leverage. Under this arrangement, the stock issuances and resulting cash proceeds were as follows: six months ended June 30, 2010 — issued 768,735 shares for cash proceeds of $35,314,000 and a receivable of $1,453,000; six months ended June 30, 2009 — issued 561,529 shares for cash proceeds of $24,295,000.
On November 16, 2007, pursuant to the terms of the agreement to acquire Florida Rock, all treasury stock held immediately prior to the close of the transaction was canceled. Our Board of Directors resolved to carry forward the existing authorization to purchase common stock. As of June 30, 2010, 3,411,416 shares remained under the current authorization.
There were no shares purchased during the six month periods ended June 30, 2010 and 2009, and there were no shares held in treasury as of June 30, 2010, December 31, 2009 and June 30, 2009.
Benefit Plans
Benefit Plans
Note 10   Benefit Plans
The following tables set forth the components of net periodic benefit cost (in thousands of dollars):
                                 
    Three Months Ended   Six Months Ended
PENSION BENEFITS   June 30   June 30
    2010   2009   2010   2009
 
Components of net periodic benefit cost
                               
Service cost
    $4,800       $4,658       $9,608       $9,319  
Interest cost
    10,406       10,485       20,811       20,970  
Expected return on plan assets
    (12,526 )     (11,582 )     (25,061 )     (23,252 )
Amortization of prior service cost
    115       115       230       230  
Amortization of actuarial loss
    1,540       426       2,876       826  
 
Net periodic pension benefit cost
    $4,335       $4,102       $8,464       $8,093  
 
 
                               
Pretax reclassification from OCI included in net periodic pension benefit cost
    $1,655       $541       $3,106       $1,056  
 
                                 
    Three Months Ended   Six Months Ended
OTHER POSTRETIREMENT BENEFITS   June 30   June 30
    2010   2009   2010   2009
 
Components of net periodic benefit cost
                               
Service cost
    $1,067       $978       $2,133       $1,956  
Interest cost
    1,662       1,761       3,325       3,522  
Amortization of prior service credit
    (182 )     (206 )     (364 )     (412 )
Amortization of actuarial loss
    222       150       444       299  
 
Net periodic postretirement benefit cost
    $2,769       $2,683       $5,538       $5,365  
 
 
                               
Pretax reclassification from OCI included in net periodic postretirement benefit cost
    $40       ($56 )     $80       ($113 )
 
The reclassifications from other comprehensive income (OCI) noted in the tables above are related to amortization of prior service costs or credits and actuarial losses.
In March 2010, we contributed $72,500,000 ($18,636,000 in cash and $53,864,000 in stock — 1,190,000 shares valued at $45.26 per share) to our qualified pension plans for the 2009 plan year. This contribution, along with the existing funding credits, should be sufficient to cover expected required contributions to the qualified plans through 2012.
During the six months ended June 30, 2010 and 2009, contributions of $74,938,000 and $2,242,000, respectively, were made to our pension plans (qualified and nonqualified).
Credit Facilities, Short-term Borrowings and Long-term Debt
Credit Facilities, Short-term Borrowings and Long-term Debt
Note 11   Credit Facilities, Short-term Borrowings and Long-term Debt
Short-term borrowings are summarized as follows (in thousands of dollars):
                         
    June 30   December 31   June 30
    2010   2009   2009
 
Short-term borrowings
                       
Bank borrowings
    $0       $0       $46,000  
Commercial paper
    320,000       236,512       366,300  
 
Total short-term borrowings
    $320,000       $236,512       $412,300  
 
 
                       
Bank borrowings
                       
Maturity
    n/a       n/a     1 day  
Weighted-average interest rate
    n/a       n/a       0.62%  
 
                       
Commercial paper
                       
Maturity
  1 to 2 days     42 days       1 to 43 days  
Weighted-average interest rate
    0.70%       0.39%       0.72%  
 
We utilize our bank lines of credit as liquidity back-up for outstanding commercial paper or draw on the bank lines to access LIBOR-based short-term loans to fund our borrowing requirements. Periodically, we issue commercial paper for general corporate purposes, including working capital requirements.
Our policy is to maintain committed credit facilities at least equal to our outstanding commercial paper. Unsecured bank lines of credit totaling $1,500,000,000 were maintained at June 30, 2010, all of which expire November 16, 2012. As of June 30, 2010, there were no borrowings under the lines of credit. Interest rates referable to borrowings under these lines of credit are determined at the time of borrowing based on current market conditions. Pricing of bank loans, if any lines were drawn, would be 30 basis points (0.3%) over LIBOR based on our long-term debt ratings at June 30, 2010.
All lines of credit extended to us in 2010 and 2009 were based solely on a commitment fee; no compensating balances were required. In the normal course of business, we maintain balances for which we are credited with earnings allowances. To the extent the earnings allowances are not sufficient to fully compensate banks for the services they provide, we pay the fee equivalent for the differences.
As of June 30, 2010, $3,636,000 of our long-term debt, including current maturities, was secured. This secured debt was assumed with the November 2007 acquisition of Florida Rock. All other debt obligations, both short-term borrowings and long-term debt, are unsecured.
In February 2009, we issued $400,000,000 of long-term notes in two related series (tranches), as follows: $150,000,000 of 10.125% coupon notes due December 2015 and $250,000,000 of 10.375% coupon notes due December 2018. The proceeds were used primarily to repay outstanding borrowings. The notes are presented in the table below net of unamortized discounts from par. Discounts and debt issuance costs are being amortized using the effective interest method over the respective lives of the notes.
Long-term debt is summarized as follows (in thousands of dollars):
                         
    June 30   December 31   June 30
    2010   2009   2009
 
Long-term debt
                       
10.125% 2015 notes issued 20091
    $149,567       $149,538       $149,511  
10.375% 2018 notes issued 20092
    248,329       248,270       248,213  
3-year floating loan issued 2008
    100,000       175,000       255,000  
6.30% 5-year notes issued 20083
    249,680       249,632       249,587  
7.00% 10-year notes issued 20084
    399,641       399,625       399,610  
3-year floating notes issued 2007
    325,000       325,000       325,000  
5.60% 5-year notes issued 20075
    299,719       299,666       299,615  
6.40% 10-year notes issued 20076
    349,844       349,837       349,829  
7.15% 30-year notes issued 20077
    249,321       249,317       249,314  
Private placement notes
    15,181       15,243       15,309  
Medium-term notes
    21,000       21,000       21,000  
Industrial revenue bonds
    17,550       17,550       17,550  
Other notes
    1,648       1,823       2,069  
 
Total debt excluding short-term borrowings
    $2,426,480       $2,501,501       $2,581,607  
Less current maturities of long-term debt
    425,300       385,381       60,417  
 
Total long-term debt
    $2,001,180       $2,116,120       $2,521,190  
 
Estimated fair value of total long-term debt
    $2,240,447       $2,300,522       $2,499,454  
 
 
  1 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $433 thousand, December 31, 2009 - $462 thousand and June 30, 2009 - $489 thousand. The effective interest rate for these 2015 notes is 10.305%.
 
  2 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $1,671 thousand, December 31, 2009 - $1,730 thousand and June 30, 2009 - $1,787 thousand. The effective interest rate for these 2018 notes is 10.584%.
 
  3 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $320 thousand, December 31, 2009 - $368 thousand and June 30, 2009 - $413 thousand. The effective interest rate for these 5-year notes is 7.47%.
 
  4 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $359 thousand, December 31, 2009 - $375 thousand and June 30, 2009 - $390 thousand. The effective interest rate for these 10-year notes is 7.86%.
 
  5 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $281 thousand, December 31, 2009 - $334 thousand and June 30, 2009 - $385 thousand. The effective interest rate for these 5-year notes is 6.58%.
 
  6 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $156 thousand, December 31, 2009 - $163 thousand and June 30, 2009 - $171 thousand. The effective interest rate for these 10-year notes is 7.39%.
 
  7 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $679 thousand, December 31, 2009 - $683 thousand and June 30, 2009 - $686 thousand. The effective interest rate for these 30-year notes is 8.04%.
The estimated fair values of long-term debt presented in the table above were determined by discounting expected future cash flows based on credit-adjusted interest rates on U.S. Treasury bills, notes or bonds, as appropriate. The fair value estimates were based on information available to us as of the respective balance sheet dates. Although we are not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued since those dates.
Our debt agreements do not subject us to contractual restrictions with regard to working capital or the amount we may expend for cash dividends and purchases of our stock. The percentage of consolidated debt to total capitalization (total debt as a percentage of total capital), as defined in our bank credit facility agreements, must be less than 65%. Our total debt as a percentage of total capital was 40.4% as of June 30, 2010; 40.3% as of December 31, 2009; and 42.6% as of June 30, 2009.
Asset Retirement Obligations
Asset Retirement Obligations
Note 12   Asset Retirement Obligations
Asset retirement obligations 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 asset retirement obligation 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 asset retirement obligation is settled for other than the carrying amount of the liability, we recognize a gain or loss on settlement.
We record all asset retirement obligations for which we have legal obligations for land reclamation at estimated fair value. Essentially all these asset retirement obligations 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 asset retirement obligation (ARO) operating costs related to accretion of the liabilities and depreciation of the assets as follows (in thousands of dollars):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
ARO operating costs
                               
Accretion
    $2,255       $2,333       $4,444       $4,605  
Depreciation
    3,157       3,288       6,340       6,891  
 
Total
    $5,412       $5,621       $10,784       $11,496  
 
ARO operating costs for our continuing operations are reported in cost of goods sold. Asset retirement obligations are reported within other noncurrent liabilities in our accompanying Condensed Consolidated Balance Sheets.
Reconciliations of the carrying amounts of our asset retirement obligations are as follows (in thousands of dollars):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
Asset retirement obligations
                               
Balance at beginning of period
    $163,931       $173,774       $167,757       $173,435  
Liabilities incurred
    1,441       0       1,441       334  
Liabilities settled
    (1,740 )     (3,326 )     (4,117 )     (5,925 )
Accretion expense
    2,255       2,333       4,444       4,605  
Revisions down
    (3,719 )     (4,306 )     (7,357 )     (3,974 )
 
Balance at end of period
    $162,168       $168,475       $162,168       $168,475  
 
Downward revisions to our asset retirement obligations during 2010 relate primarily to changes in the estimated settlement dates at select sites.
Standby Letters of Credit
Standby Letters of Credit
Note 13   Standby Letters of Credit
We provide certain third parties with irrevocable standby letters of credit in the normal course of business. We use commercial banks to issue standby letters of credit to back our obligations to pay or perform when required to do so pursuant to the requirements of an underlying agreement. The standby letters of credit listed below are cancelable only at the option of the beneficiaries who are authorized to draw drafts on the issuing bank up to the face amount of the standby letter of credit in accordance with its terms. Since banks consider letters of credit as contingent extensions of credit, we are required to pay a fee until they expire or are canceled. Substantially all of our standby letters of credit have a one-year term and are renewable annually at the option of the beneficiary.
Our standby letters of credit as of June 30, 2010 are summarized in the table below (in thousands of dollars):
         
    June 30
    2010
 
Standby letters of credit
       
Risk management requirement for insurance claims
    $40,411  
Payment surety required by utilities
    133  
Contractual reclamation/restoration requirements
    11,803  
Financial requirement for industrial revenue bond
    14,230  
 
Total
    $66,577  
 
Of the total $66,577,000 outstanding letters of credit, $63,386,000 is backed by our $1,500,000,000 bank credit facility which expires November 16, 2012.
Acquisitions and Divestitures
Acquisitions and Divestitures
Note 14   Acquisitions and Divestitures
During the first quarter of 2010, we sold three aggregates facilities located in rural Virginia for cash proceeds of approximately $42,750,000.
Assets held for sale and liabilities of assets held for sale as presented in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2010 and December 31, 2009, relate to an aggregates production facility and ready-mixed concrete operation located outside the United States. We expect the transaction to close within the 12-month period ending June 30, 2011. There were no pending divestitures as of June 30, 2009. The major classes of assets and liabilities of assets classified as held for sale are as follows (in thousands of dollars):
                 
    June 30   December 31
    2010   2009
 
Current assets
    $3,695       $3,799  
Property, plant & equipment, net
    11,016       11,117  
Intangible assets
    93       96  
Other assets
    60       60  
 
Total assets held for sale
    $14,864       $15,072  
 
Current liabilities
    $409       $369  
 
Total liabilities of assets held for sale
    $409       $369  
 
During the six months ended June 30, 2009, we acquired the following assets for approximately $38,955,000 (total note and cash consideration), net of acquired cash:
    leasehold interest in a rail yard
    two aggregates production facilities
Goodwill
Goodwill
Note 15   Goodwill
Changes in the carrying amount of goodwill by reportable segment from December 31, 2009 to June 30, 2010 are summarized below (in thousands of dollars):
                                         
Goodwill                    
    Aggregates   Concrete   Asphalt mix   Cement   Total
 
 
Gross carrying amount
                                       
Total as of December 31, 2009
    $3,002,346       $0       $91,633       $252,664       $3,346,643  
 
Purchase price allocation adjustment
    0       0       0       0       0  
 
Total as of June 30, 2010
    $3,002,346       $0       $91,633       $252,664       $3,346,643  
 
 
                                       
Accumulated impairment losses
                                       
Total as of December 31, 2009
    $0       $0       $0       ($252,664 )     ($252,664 )
 
Goodwill impairment loss
    0       0       0       0       0  
 
Total as of June 30, 2010
    $0       $0       $0       ($252,664 )     ($252,664 )
 
 
                                       
Goodwill, net of accumulated impairment losses                                
Total as of December 31, 2009
    $3,002,346       $0       $91,633       $0       $3,093,979  
 
Total as of June 30, 2010
    $3,002,346       $0       $91,633       $0       $3,093,979  
 
New Accounting Standards
New Accounting Standards
Note 16   New Accounting Standards
Recently Adopted
Enhanced disclosures for fair value measurements — As of and for the interim period ended March 31, 2010, we adopted Accounting Standards Update (ASU) No. 2010-6, “Improving Disclosures about Fair Value Measurements” (ASU 2010-6) as it relates to disclosures about transfers into and out of Level 1 and 2. Our adoption of this standard had no impact on our financial position, results of operations or liquidity. We will adopt ASU 2010-6 as it relates to separate disclosures about purchases, sales, issuances and settlements relating to Level 3 measurements as of and for the interim period ended March 31, 2011.
Segment Reporting - Continuing Operations
Segment Reporting- Continuing Operations
Note 17   Segment Reporting - Continuing Operations
We have four operating segments organized around our principal product lines: aggregates, asphalt mix, concrete and cement. For reporting purposes, we historically combined our Asphalt mix and Concrete operating segments into one reporting segment as the products are similar in nature and the businesses exhibited similar economic characteristics, production processes, types and classes of customer, methods of distribution and regulatory environments. We routinely received inquiries from our investors specific to these individual operating segments. In an effort to provide more meaningful information to the public, these two segments are now reported separately. We have recast our 2009 data to reflect this change in reportable segments to conform to the current period’s presentation.
The majority of our activities are domestic. We sell a relatively small amount of aggregates outside the United States. Transactions between our reportable segments are recorded at prices approximating market levels. Management reviews earnings from the product line reporting units principally at the gross profit level.
                                 
Segment Financial Disclosure   Three Months Ended   Six Months Ended
    June 30   June 30
    2010     2009     2010     2009  
 
Amounts in millions                                
 
                               
TOTAL REVENUES
                               
Aggregates
                               
Segment revenues
    $513.9       $497.6       $855.2       $899.4  
Intersegment sales
    (42.4 )     (42.9 )     (74.5 )     (80.0 )
 
Net sales
    471.5       454.7       780.7       819.4  
 
Concrete
                               
Segment revenues
    105.0       114.6       188.0       229.4  
Intersegment sales
    0.0       0.0       0.0       (0.1 )
 
Net sales
    105.0       114.6       188.0       229.3  
 
Asphalt mix
                               
Segment revenues
    103.5       103.7       166.5       182.1  
Intersegment sales
    0.0       0.0       0.0       0.0  
 
Net sales
    103.5       103.7       166.5       182.1  
 
Cement
                               
Segment revenues
    22.9       16.9       40.8       36.6  
Intersegment sales
    (10.1 )     (8.5 )     (18.7 )     (18.1 )
 
Net sales
    12.8       8.4       22.1       18.5  
 
Total
                               
Net sales
    692.8       681.4       1,157.3       1,249.3  
Delivery revenues
    43.4       40.5       72.1       72.9  
 
Total revenues
    $736.2       $721.9       $1,229.4       $1,322.2  
 
 
                               
GROSS PROFIT
                               
Aggregates
    $122.0       $126.8       $137.4       $190.4  
Concrete
    (5.6 )     (2.2 )     (21.7 )     (3.1 )
Asphalt mix
    7.3       21.7       8.3       37.9  
Cement
    (1.4 )     (0.5 )     (0.8 )     (1.8 )
 
Total gross profit
    $122.3       $145.8       $123.2       $223.4  
 
 
                               
Depreciation, Depletion, Accretion and Amortization
                               
Aggregates
    $74.9       $78.3       $148.1       $157.1  
Concrete
    13.4       13.3       26.4       26.2  
Asphalt mix
    2.3       2.2       4.5       4.2  
Cement
    5.2       4.8       9.6       9.4  
Corporate and other unallocated
    1.5       1.0       2.9       2.0  
 
Total depreciation, depletion, accretion and amortization
    $97.3       $99.6       $191.5       $198.9  
 
Supplemental Cash Flow Information
Supplemental Cash Flow Information
Note 18   Supplemental Cash Flow Information
Supplemental information referable to our Condensed Consolidated Statements of Cash Flows is summarized below (in thousands of dollars):
                 
    Six Months Ended
    June 30
    2010   2009
 
Cash payments (refunds)
               
Interest (exclusive of amount capitalized)
    $90,942       $98,871  
Income taxes
    1,130       (9,468 )
 
Noncash investing and financing activities
               
Accrued liabilities for purchases of property, plant & equipment
    5,165       14,684  
Debt issued for purchases of property, plant & equipment
    0       1,982  
Stock issued for pension contribution (Note 9)
    53,864       0  
Proceeds receivable from issuance of common stock
    1,453       0  
 
Other Commitments and Contingencies
Other Commitments and Contingencies
Note 19   Other Commitments and Contingencies
We are a defendant in various lawsuits in the ordinary course of business. It is not possible to determine with precision the outcome, or the amount of liability, if any, under these lawsuits, especially where the cases involve possible jury trials with as yet undetermined jury panels.
In addition to these lawsuits in which we are involved in the ordinary course of business, certain other legal proceedings are more specifically described below.
Florida Antitrust Litigation — Our subsidiary, Florida Rock Industries, Inc., has been named as a defendant in a number of class action lawsuits filed in the United States District Court for the Southern District of Florida. The lawsuits were filed by several ready-mixed concrete producers and construction companies against a number of concrete and cement producers and importers in Florida. There are now two consolidated amended complaints: (1) on behalf of direct independent ready-mixed concrete producers, and (2) on behalf of indirect users of ready-mixed concrete. The other defendants include Cemex Corp., Lehigh Cement Company, Oldcastle Materials, Suwannee American Cement LLC, Titan America LLC, and Votorantim Cimentos North America, Inc. The complaints allege various violations under the federal antitrust laws, including price fixing and market allocations. We have no reason to believe that Florida Rock is liable for any of the matters alleged in the complaint, and we intend to defend the case vigorously.
IDOT/Joliet Road — In September 2001, we were named a defendant in a suit brought by the Illinois Department of Transportation (IDOT), in the Circuit Court of Cook County, Chancery Division, Illinois, alleging damage to a 0.9-mile section of Joliet Road that bisects our McCook quarry in McCook, Illinois, a Chicago suburb. On May 18, 2010, we settled this lawsuit for $40 million and recognized the full settlement as a charge to operations in the second quarter of 2010. Under the terms of the settlement we paid IDOT $20 million in May 2010 and will pay the final $20 million no later than 9 months from the date of settlement. During that time we will take appropriate actions, including one or more arbitrations, to recover the settlement amount, in excess of the self-insured retention of $2 million, as well as a portion of our defense costs from our insurers. While we believe this settlement is covered by insurance policies, the ultimate amount and timing of such recoveries, which will be recorded as income when realized, cannot be predicted with certainty.
Lower Passaic River Clean-Up — We have been sued as a third-party defendant in New Jersey Department of Environmental Protection, et al. v. Occidental Chemical Corporation, et al., a case brought by the New Jersey Department of Environmental Protection in the New Jersey Superior Court. The third-party complaint was filed on February 4, 2009. This suit by the New Jersey Department of Environmental Protection seeks recovery of past and future clean-up costs as well as unspecified economic damages, punitive damages, penalties and a variety of other forms of relief arising from alleged discharges into the Passaic River of dioxin and other unspecified hazardous substances. Our former Chemicals Division operated a plant adjacent to the Passaic River and has been sued as a third-party defendant, along with approximately 300 other parties. Additionally, Vulcan and approximately 70 other companies are parties to a May 2007 Administrative Order of Consent with the U.S. Environmental Protection Agency to perform a Remedial Investigation/Feasibility Study of the contamination in the lower 17 miles of the Passaic River. This study is ongoing. At this time, we cannot determine the likelihood or reasonably estimate a range of loss pertaining to this matter.
Perchloroethylene cases
We are a defendant in several cases involving perchloroethylene (perc), which was a product manufactured by our former Chemicals business. Perc is a cleaning solvent used in dry cleaning and other industrial applications. These cases involve various allegations of groundwater contamination, or exposure to perc allegedly resulting in personal injury. Vulcan is vigorously defending all of these cases. At this time, we cannot determine the likelihood or reasonably estimate a range of loss pertaining to any of these matters, which are listed below:
    California Water Service Company — On June 6, 2008, we were served in an action styled California Water Service Company v. Dow, et al, now pending in the San Mateo County Superior Court, California. According to the complaint, California Water Service Company “owns and/or operates public drinking water systems, and supplies drinking water to hundreds of thousands of residents and businesses throughout California.” The complaint alleges that water systems in a number of communities have been contaminated with perc. The plaintiff is seeking compensatory damages and punitive damages. Discovery is ongoing.
    City of Sunnyvale California — On January 6, 2009, we were served in an action styled City of Sunnyvale v. Legacy Vulcan Corporation, f/k/a Vulcan Materials Company, filed in the San Mateo County Superior Court, California. The plaintiffs are seeking cost recovery and other damages for alleged environmental contamination from perc and its breakdown products at the Sunnyvale Town Center Redevelopment Project. Discovery is ongoing.
    Suffolk County Water Authority — On May 4, 2010, we were served in an action styled Suffolk County Water Authority v. The Dow Chemical Company, et al., in the United States District Court for the Eastern District of New York. The complaint alleges that the plaintiff “owns and/or operates drinking water systems and supplies drinking water to thousands of residents and businesses, in Suffolk County, New York.” The complaint alleges that perc and its degradation products “have been and are contaminating and damaging Plaintiff’s drinking water supply wells.” The plaintiff is seeking compensatory and punitive damages. This case has recently been dismissed but we anticipate it will be refiled in state court.
    Team Enterprises — On June 5, 2008, we were named as a defendant in the matter of Team Enterprises, Inc. v. Century Centers, Ltd., et al., filed in Modesto, Stanislaus County, California but removed to the United States District Court for the Eastern District of California (Fresno Division). This is an action filed by Team Enterprises as the former operator of a dry cleaner located in Modesto, California. The plaintiff is seeking damages from the defendants associated with the remediation of perc from the site of the dry cleaner. Discovery is ongoing.
    United States Virgin Islands — There are currently two cases pending here.
    Government of the United States; Department of Planning and Natural Resources; and Commissioner Robert Mathes, in his capacity as Trustee for the Natural Resources of the Territory of The United States Virgin Islands v. Vulcan Materials Company, et al. Plaintiff brought this action based on parens patriae doctrine for injury to quasi-sovereign interest on the island of St. Thomas (injuries to groundwater resources held in public trust). It is alleged that the island’s sole source of drinking water (the Tutu aquifer) is contaminated with perc. The primary source of perc contamination allegedly emanated from the former Laga facility (a textile manufacturing site). The perc defendants are alleged to have failed to adequately warn perc users of the dangers posed by the use and disposal of perc. It is also alleged that perc from O’Henry Dry Cleaners has contributed to the perc contamination in the Tutu aquifer. This case was dismissed, but we anticipate it will be refiled in territorial court.
    L’Henry, Inc., d/b/a O’Henry Cleaners and Cyril V. Francois, LLC v. Vulcan and Dow. Plaintiffs are the owners of a dry cleaning business on St. Thomas. It is alleged that perc from the dry cleaner contributed to the contamination of the Tutu Wells aquifer, and that Vulcan as a perc manufacturer failed to properly warn the dry cleaner of the proper disposal method for perc, resulting in unspecified damages to the dry cleaner. A trial date of December 1, 2010, has been set for this matter.
    Addair — This is a purported class action case for medical monitoring and personal injury damages styled Addair et al. v. Processing Company, LLC, et al., pending in the Circuit Court of Wyoming County, West Virginia. The plaintiffs allege various personal injuries from exposure to perc used in coal sink labs. Discovery is now complete. The class certification hearing scheduled for August 2010 has been stayed.
    Santarsiero — This is a case styled Robert Santarsiero v. R.V. Davies, et al., pending in Supreme Court, New York County, New York. The plaintiff alleges personal injury (kidney cancer) from exposure to perc. We were brought in as a third-party defendant by original defendant R.V. Davies. Discovery is ongoing.
    R.R. Street Indemnity — Street, a former distributor of perc manufactured by us, alleges that we owe Street, and its insurer (National Union), a defense and indemnity in several of these litigation matters, as well as some prior litigation which we have now settled. National Union alleges that we are obligated to contribute to National Union’s share of defense fees, costs and any indemnity payments made on Street’s behalf. We are having ongoing discussions with Street about the nature and extent of indemnity obligations, if any, and to date there has been no resolution of these issues.
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, could cause actual losses to differ materially from accrued costs. We believe the amounts accrued in our financial statements as of June 30, 2010 are sufficient to address claims and litigation for which a loss was determined to be probable and reasonably estimable. 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. 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.
Subsequent Event
Subsequent Event
Note 20   Subsequent Event
On July 7, 2010, we closed on a $450,000,000 5-year syndicated term loan which bears interest at a floating rate. The interest rate reflects 1, 2, 3 or 6-month LIBOR plus a credit spread governed by our Standard & Poor’s and Moody’s long-term credit ratings. Our current ratings are BBB and Baa2, respectively, and the applicable credit spread is 2.0%. The loan requires quarterly principal payments of $10,000,000 starting in June 2013 and a final principal payment of $360,000,000 in July 2015. The term loan agreement provides up to $150,000,000 in additional loans at our request, subject to each lender’s acceptance to increase its commitment.
New Accounting Standards (Policies)
Accounting Standards Update (ASU) No. 2010-6, "Improving Disclosures about Fair Value Measurements"
Recently Adopted
Enhanced disclosures for fair value measurements — As of and for the interim period ended March 31, 2010, we adopted Accounting Standards Update (ASU) No. 2010-6, “Improving Disclosures about Fair Value Measurements” (ASU 2010-6) as it relates to disclosures about transfers into and out of Level 1 and 2. Our adoption of this standard had no impact on our financial position, results of operations or liquidity. We will adopt ASU 2010-6 as it relates to separate disclosures about purchases, sales, issuances and settlements relating to Level 3 measurements as of and for the interim period ended March 31, 2011.
Basis of Presentation (Tables)
Correction of errors on Condensed Consolidated Balance Sheet
A summary of the effects of the correction of the errors on our Condensed Consolidated Balance Sheet as of June 30, 2009 is presented in the table below (in thousands of dollars):
                         
    June 30, 2009
    As           As
    Reported   Corrections   Restated
 
 
                       
Goodwill
    $3,091,524       $2,455       $3,093,979  
 
Total assets
    $8,847,872       $2,455       $8,850,327  
 
 
                       
Deferred income taxes
    $957,248       ($28,561 )     $928,687  
 
Total liabilities
    $4,844,653       ($28,561 )     $4,816,092  
 
 
                       
Retained earnings
    $1,743,097       $31,016       $1,774,113  
 
Shareholders’ equity
    $4,003,219       $31,016       $4,034,235  
 
 
                       
Total liabilities and shareholders’ equity
    $8,847,872       $2,455       $8,850,327  
 
Discontinued Operations (Tables)
Results from discontinued operations
There were no net sales or revenues from discontinued operations during the six month periods ended June 30, 2010 or 2009. Results from discontinued operations are as follows (in thousands of dollars):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
Discontinued operations
                               
Earnings (loss) from results
    ($1,821 )     $11,121       ($860 )     $9,721  
Gain on disposal, net of transaction bonus
    (2 )     (28 )     7,912       495  
Income tax (provision) benefit
    346       (4,442 )     (2,802 )     (4,091 )
 
Earnings (loss) on discontinued operations, net of tax
    ($1,477 )     $6,651       $4,250       $6,125  
 
Earnings Per Share (EPS) (Tables)
6 Months Ended
Jun. 30, 2010
Earnings Per Share (EPS) (Tables) [Abstract]
 
Weighted-average common shares outstanding
Antidilutive common stock equivalents
We report two earnings per share numbers: basic and diluted. These are computed by dividing net earnings (loss) by the weighted-average common shares outstanding (basic EPS) or weighted-average common shares outstanding assuming dilution (diluted EPS) as set forth below (in thousands of shares):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
Weighted-average common shares outstanding
    128,168       113,477       127,452       112,045  
Dilutive effect of
                               
Stock options/SOSARs
    0       144       0       0  
Other stock compensation plans
    0       208       0       0  
 
Weighted-average common shares outstanding, assuming dilution
    128,168       113,829       127,452       112,045  
 
The number of antidilutive common stock equivalents for which the exercise price exceeds the weighted-average market price, are as follows (in thousands of shares):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
Antidilutive common stock equivalents
    4,067       5,104       4,254       3,823  
 
Derivative Instruments (Tables)
6 Months Ended
Jun. 30, 2010
Derivative Instruments (Tables) [Abstract]
 
Fair values of derivative instruments designated as hedging instruments
Cash flow hedge derivative instruments on the accompanying Condensed Consolidated Statements of Earnings
Derivative instruments are recognized at fair value in the accompanying Condensed Consolidated Balance Sheets. Fair values of derivative instruments designated as hedging instruments are as follows (in thousands of dollars):
                                 
            Fair Value1
            June 30   December 31   June 30
    Balance Sheet Location   2010   2009   2009
 
Liability derivatives
                               
Interest rate derivatives
  Other current liabilities     $5,614       $11,193       $0  
Interest rate derivatives
  Other noncurrent liabilities     0       0       14,069  
 
Total derivatives liability
            $5,614       $11,193       $14,069  
 
 
  1   See Note 7 for further discussion of the fair value determination.
The effects of the cash flow hedge derivative instruments on the accompanying Condensed Consolidated Statements of Earnings for the three and six months ended June 30 are as follows (in thousands of dollars):
                                         
            Three Months Ended   Six Months Ended
    Location on   June 30   June 30
    Statement   2010   2009   2010   2009
 
Interest rate derivatives
                                       
Gain (loss) recognized in OCI (effective portion)
  Note 8     $234       ($871 )     ($574 )     ($1,670 )
 
                                       
Loss reclassified from Accumulated OCI (effective portion)
  Interest expense     (4,997 )     (3,957 )     (9,895 )     (7,327 )
 
Fair Value Measurements (Tables)
Fair value measurement of assets and liabilities on recurring basis
Our assets and liabilities that are subject to fair value measurements on a recurring basis are summarized below (in thousands of dollars):
                         
    Level 1
    June 30   December 31   June 30
    2010   2009   2009
 
Fair value recurring
                       
Rabbi Trust
                       
Mutual funds
    $10,787       $10,490       $9,245  
Equities
    7,236       8,472       6,562  
 
Net asset
    $18,023       $18,962       $15,807  
 
                         
    Level 2
    June 30   December 31   June 30
    2010   2009   2009
 
Fair value recurring
                       
Medium-term investments
    $3,910       $4,111       $6,755  
Interest rate derivative
    (5,614 )     (11,193 )     (14,069 )
Rabbi Trust
                       
Common/collective trust funds
    3,185       4,084       3,816  
 
Net asset (liability)
    $1,481       ($2,998 )     ($3,498 )
 
Comprehensive Income (Tables)
6 Months Ended
Jun. 30, 2010
Comprehensive Income (Tables) [Abstract]
 
Total comprehensive income (loss)
Accumulated other comprehensive loss
Comprehensive income (loss) includes charges and credits to equity from nonowner sources and comprises two subsets: net earnings (loss) and other comprehensive income (loss). Total comprehensive income (loss) comprises the following (in thousands of dollars):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
Net earnings (loss)
    ($23,992 )     $22,212       ($62,739 )     ($10,569 )
Other comprehensive income (loss)
                               
Fair value adjustments to cash flow hedges, net of tax
    124       (519 )     (320 )     (995 )
Reclassification adjustment for cash flow hedges included in net income (loss), net of tax
    2,645       2,352       5,498       4,334  
Amortization of pension and postretirement plan actuarial loss and prior service cost, net of tax
    823       294       1,722       569  
 
Total comprehensive income (loss)
    ($20,400 )     $24,339       ($55,839 )     ($6,661 )
 
Amounts accumulated in other comprehensive loss, net of tax, are as follows (in thousands of dollars):
                         
    June 30   December 31   June 30
    2010   2009   2009
 
Cash flow hedges
    ($44,187 )     ($49,365 )     ($53,180 )
Pension and postretirement plans
    (143,271 )     (144,993 )     (128,194 )
 
Accumulated other comprehensive loss
    ($187,458 )        ($194,358 )     ($181,374 )
 
Benefit Plans (Tables)
Components of net periodic benefit cost
The following tables set forth the components of net periodic benefit cost (in thousands of dollars):
                                 
    Three Months Ended   Six Months Ended
PENSION BENEFITS   June 30   June 30
    2010   2009   2010   2009
 
Components of net periodic benefit cost
                               
Service cost
    $4,800       $4,658       $9,608       $9,319  
Interest cost
    10,406       10,485       20,811       20,970  
Expected return on plan assets
    (12,526 )     (11,582 )     (25,061 )     (23,252 )
Amortization of prior service cost
    115       115       230       230  
Amortization of actuarial loss
    1,540       426       2,876       826  
 
Net periodic pension benefit cost
    $4,335       $4,102       $8,464       $8,093  
 
 
                               
Pretax reclassification from OCI included in net periodic pension benefit cost
    $1,655       $541       $3,106       $1,056  
 
                                 
    Three Months Ended   Six Months Ended
OTHER POSTRETIREMENT BENEFITS   June 30   June 30
    2010   2009   2010   2009
 
Components of net periodic benefit cost
                               
Service cost
    $1,067       $978       $2,133       $1,956  
Interest cost
    1,662       1,761       3,325       3,522  
Amortization of prior service credit
    (182 )     (206 )     (364 )     (412 )
Amortization of actuarial loss
    222       150       444       299  
 
Net periodic postretirement benefit cost
    $2,769       $2,683       $5,538       $5,365  
 
 
                               
Pretax reclassification from OCI included in net periodic postretirement benefit cost
    $40       ($56 )     $80       ($113 )
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Tables)
6 Months Ended
Jun. 30, 2010
Credit Facilities, Short-term Borrowings and Long-term Debt (Tables) [Abstract]
 
Short-term borrowings
Long-term debt
Short-term borrowings are summarized as follows (in thousands of dollars):
                         
    June 30   December 31   June 30
    2010   2009   2009
 
Short-term borrowings
                       
Bank borrowings
    $0       $0       $46,000  
Commercial paper
    320,000       236,512       366,300  
 
Total short-term borrowings
    $320,000       $236,512       $412,300  
 
 
                       
Bank borrowings
                       
Maturity
    n/a       n/a     1 day  
Weighted-average interest rate
    n/a       n/a       0.62%  
 
                       
Commercial paper
                       
Maturity
  1 to 2 days     42 days       1 to 43 days  
Weighted-average interest rate
    0.70%       0.39%       0.72%  
 
Long-term debt is summarized as follows (in thousands of dollars):
                         
    June 30   December 31   June 30
    2010   2009   2009
 
Long-term debt
                       
10.125% 2015 notes issued 20091
    $149,567       $149,538       $149,511  
10.375% 2018 notes issued 20092
    248,329       248,270       248,213  
3-year floating loan issued 2008
    100,000       175,000       255,000  
6.30% 5-year notes issued 20083
    249,680       249,632       249,587  
7.00% 10-year notes issued 20084
    399,641       399,625       399,610  
3-year floating notes issued 2007
    325,000       325,000       325,000  
5.60% 5-year notes issued 20075
    299,719       299,666       299,615  
6.40% 10-year notes issued 20076
    349,844       349,837       349,829  
7.15% 30-year notes issued 20077
    249,321       249,317       249,314  
Private placement notes
    15,181       15,243       15,309  
Medium-term notes
    21,000       21,000       21,000  
Industrial revenue bonds
    17,550       17,550       17,550  
Other notes
    1,648       1,823       2,069  
 
Total debt excluding short-term borrowings
    $2,426,480       $2,501,501       $2,581,607  
Less current maturities of long-term debt
    425,300       385,381       60,417  
 
Total long-term debt
    $2,001,180       $2,116,120       $2,521,190  
 
Estimated fair value of total long-term debt
    $2,240,447       $2,300,522       $2,499,454  
 
 
  1 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $433 thousand, December 31, 2009 - $462 thousand and June 30, 2009 - $489 thousand. The effective interest rate for these 2015 notes is 10.305%.
 
  2 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $1,671 thousand, December 31, 2009 - $1,730 thousand and June 30, 2009 - $1,787 thousand. The effective interest rate for these 2018 notes is 10.584%.
 
  3 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $320 thousand, December 31, 2009 - $368 thousand and June 30, 2009 - $413 thousand. The effective interest rate for these 5-year notes is 7.47%.
 
  4 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $359 thousand, December 31, 2009 - $375 thousand and June 30, 2009 - $390 thousand. The effective interest rate for these 10-year notes is 7.86%.
 
  5 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $281 thousand, December 31, 2009 - $334 thousand and June 30, 2009 - $385 thousand. The effective interest rate for these 5-year notes is 6.58%.
 
  6 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $156 thousand, December 31, 2009 - $163 thousand and June 30, 2009 - $171 thousand. The effective interest rate for these 10-year notes is 7.39%.
 
  7 Includes decreases for unamortized discounts, as follows: June 30, 2010 - $679 thousand, December 31, 2009 - $683 thousand and June 30, 2009 - $686 thousand. The effective interest rate for these 30-year notes is 8.04%.
Asset Retirement Obligations (Tables)
6 Months Ended
Jun. 30, 2010
Asset Retirement Obligations (Tables) [Abstract]
 
ARO operating costs
Reconciliations of ARO
We record all asset retirement obligations for which we have legal obligations for land reclamation at estimated fair value. Essentially all these asset retirement obligations 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 asset retirement obligation (ARO) operating costs related to accretion of the liabilities and depreciation of the assets as follows (in thousands of dollars):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
ARO operating costs
                               
Accretion
    $2,255       $2,333       $4,444       $4,605  
Depreciation
    3,157       3,288       6,340       6,891  
 
Total
    $5,412       $5,621       $10,784       $11,496  
 
Reconciliations of the carrying amounts of our asset retirement obligations are as follows (in thousands of dollars):
                                 
    Three Months Ended   Six Months Ended
    June 30   June 30
    2010   2009   2010   2009
 
Asset retirement obligations
                               
Balance at beginning of period
    $163,931       $173,774       $167,757       $173,435  
Liabilities incurred
    1,441       0       1,441       334  
Liabilities settled
    (1,740 )     (3,326 )     (4,117 )     (5,925 )
Accretion expense
    2,255       2,333       4,444       4,605  
Revisions down
    (3,719 )     (4,306 )     (7,357 )     (3,974 )
 
Balance at end of period
    $162,168       $168,475       $162,168       $168,475  
 
Standby Letters of Credit (Tables)
Standby letters of credit
Note 13   Standby Letters of Credit
We provide certain third parties with irrevocable standby letters of credit in the normal course of business. We use commercial banks to issue standby letters of credit to back our obligations to pay or perform when required to do so pursuant to the requirements of an underlying agreement. The standby letters of credit listed below are cancelable only at the option of the beneficiaries who are authorized to draw drafts on the issuing bank up to the face amount of the standby letter of credit in accordance with its terms. Since banks consider letters of credit as contingent extensions of credit, we are required to pay a fee until they expire or are canceled. Substantially all of our standby letters of credit have a one-year term and are renewable annually at the option of the beneficiary.
Our standby letters of credit as of June 30, 2010 are summarized in the table below (in thousands of dollars):
         
    June 30
    2010
 
Standby letters of credit
       
Risk management requirement for insurance claims
    $40,411  
Payment surety required by utilities
    133  
Contractual reclamation/restoration requirements
    11,803  
Financial requirement for industrial revenue bond
    14,230  
 
Total
    $66,577  
 
Of the total $66,577,000 outstanding letters of credit, $63,386,000 is backed by our $1,500,000,000 bank credit facility which expires November 16, 2012.
Acquisitions and Divestitures (Tables)
Classification of assets and liabilities held for sale
Assets held for sale and liabilities of assets held for sale as presented in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2010 and December 31, 2009, relate to an aggregates production facility and ready-mixed concrete operation located outside the United States. We expect the transaction to close within the 12-month period ending June 30, 2011. There were no pending divestitures as of June 30, 2009. The major classes of assets and liabilities of assets classified as held for sale are as follows (in thousands of dollars):
                 
    June 30   December 31
    2010   2009
 
Current assets
    $3,695       $3,799  
Property, plant & equipment, net
    11,016       11,117  
Intangible assets
    93       96  
Other assets
    60       60  
 
Total assets held for sale
    $14,864       $15,072  
 
Current liabilities
    $409       $369  
 
Total liabilities of assets held for sale
    $409       $369  
 
Goodwill (Tables)
Changes in the carrying amount of goodwill by reportable segment
Changes in the carrying amount of goodwill by reportable segment from December 31, 2009 to June 30, 2010 are summarized below (in thousands of dollars):
                                         
Goodwill                    
    Aggregates   Concrete   Asphalt mix   Cement   Total
 
 
Gross carrying amount
                                       
Total as of December 31, 2009
    $3,002,346       $0       $91,633       $252,664       $3,346,643  
 
Purchase price allocation adjustment
    0       0       0       0       0  
 
Total as of June 30, 2010
    $3,002,346       $0       $91,633       $252,664       $3,346,643  
 
 
                                       
Accumulated impairment losses
                                       
Total as of December 31, 2009
    $0       $0       $0       ($252,664 )     ($252,664 )
 
Goodwill impairment loss
    0       0       0       0       0  
 
Total as of June 30, 2010
    $0       $0       $0       ($252,664 )     ($252,664 )
 
 
                                       
Goodwill, net of accumulated impairment losses                                
Total as of December 31, 2009
    $3,002,346       $0       $91,633       $0       $3,093,979  
 
Total as of June 30, 2010
    $3,002,346       $0       $91,633       $0       $3,093,979  
 
Segment Reporting - Continuing Operations (Tables)
Segment Financial Disclosure
                                 
Segment Financial Disclosure   Three Months Ended   Six Months Ended
    June 30   June 30
    2010     2009     2010     2009  
 
Amounts in millions                                
 
                               
TOTAL REVENUES
                               
Aggregates
                               
Segment revenues
    $513.9       $497.6       $855.2       $899.4  
Intersegment sales
    (42.4 )     (42.9 )     (74.5 )     (80.0 )
 
Net sales
    471.5       454.7       780.7       819.4  
 
Concrete
                               
Segment revenues
    105.0       114.6       188.0       229.4  
Intersegment sales
    0.0       0.0       0.0       (0.1 )
 
Net sales
    105.0       114.6       188.0       229.3  
 
Asphalt mix
                               
Segment revenues
    103.5       103.7       166.5       182.1  
Intersegment sales
    0.0       0.0       0.0       0.0  
 
Net sales
    103.5       103.7       166.5       182.1  
 
Cement
                               
Segment revenues
    22.9       16.9       40.8       36.6  
Intersegment sales
    (10.1 )     (8.5 )     (18.7 )     (18.1 )
 
Net sales
    12.8       8.4       22.1       18.5  
 
Total
                               
Net sales
    692.8       681.4       1,157.3       1,249.3  
Delivery revenues
    43.4       40.5       72.1       72.9  
 
Total revenues
    $736.2       $721.9       $1,229.4       $1,322.2  
 
 
                               
GROSS PROFIT
                               
Aggregates
    $122.0       $126.8       $137.4       $190.4  
Concrete
    (5.6 )     (2.2 )     (21.7 )     (3.1 )
Asphalt mix
    7.3       21.7       8.3       37.9  
Cement
    (1.4 )     (0.5 )     (0.8 )     (1.8 )
 
Total gross profit
    $122.3       $145.8       $123.2       $223.4  
 
 
                               
Depreciation, Depletion, Accretion and Amortization
                               
Aggregates
    $74.9       $78.3       $148.1       $157.1  
Concrete
    13.4       13.3       26.4       26.2  
Asphalt mix
    2.3       2.2       4.5       4.2  
Cement
    5.2       4.8       9.6       9.4  
Corporate and other unallocated
    1.5       1.0       2.9       2.0  
 
Total depreciation, depletion, accretion and amortization
    $97.3       $99.6       $191.5       $198.9  
 
Supplemental Cash Flow Information (Tables)
Supplemental Cash Flow Information
Supplemental information referable to our Condensed Consolidated Statements of Cash Flows is summarized below (in thousands of dollars):
                 
    Six Months Ended
    June 30
    2010   2009
 
Cash payments (refunds)
               
Interest (exclusive of amount capitalized)
    $90,942       $98,871  
Income taxes
    1,130       (9,468 )
 
Noncash investing and financing activities
               
Accrued liabilities for purchases of property, plant & equipment
    5,165       14,684  
Debt issued for purchases of property, plant & equipment
    0       1,982  
Stock issued for pension contribution (Note 9)
    53,864       0  
Proceeds receivable from issuance of common stock
    1,453       0  
 
Basis of Presentation (Details) (USD $)
In Thousands
Jun. 30, 2010
Dec. 31, 2009
Jun. 30, 2009
Correction of errors on Condensed Consolidated Balance Sheet
 
 
 
Goodwill
$ 3,093,979 
$ 3,093,979 
$ 3,093,979 1
Total assets
8,495,044 
8,532,950 
8,850,327 1
Deferred income taxes
836,702 
887,268 
928,687 1
Total liabilities
4,450,940 
4,480,928 
4,816,092 1
Retained earnings
1,625,620 
1,752,240 
1,774,113 1
Shareholders' equity
4,044,104 
4,052,022 
4,034,235 1
Total liabilities and shareholders' equity
8,495,044 
8,532,950 
8,850,327 1
As Reported [Member]
 
 
 
Correction of errors on Condensed Consolidated Balance Sheet
 
 
 
Goodwill
 
 
3,091,524 
Total assets
 
 
8,847,872 
Deferred income taxes
 
 
957,248 
Total liabilities
 
 
4,844,653 
Retained earnings
 
 
1,743,097 
Shareholders' equity
 
 
4,003,219 
Total liabilities and shareholders' equity
 
 
8,847,872 
Corrections [Member]
 
 
 
Correction of errors on Condensed Consolidated Balance Sheet
 
 
 
Goodwill
 
 
2,455 
Total assets
 
 
2,455 
Deferred income taxes
 
 
(28,561)
Total liabilities
 
 
(28,561)
Retained earnings
 
 
31,016 
Shareholders' equity
 
 
31,016 
Total liabilities and shareholders' equity
 
 
$ 2,455 
Discontinued Operations (Details) (USD $)
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
Jun. 7, 2005 - Jun. 30, 2010
1 Month Ended
Mar. 31, 2010
Year Ended
Dec. 31, 2009
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Year Ended
Dec. 31, 2007
Discontinued operations
 
 
 
 
 
 
 
 
Earnings (loss) from results
$ (1,821,000)
$ (860,000)
 
 
 
$ 11,121,000 
$ 9,721,000 
 
Gain on disposal, net of transaction bonus
(2,000)
7,912,000 
 
 
812,000 
(28,000)
495,000 
 
Income tax (provision) benefit
346,000 
(2,802,000)
 
 
 
(4,442,000)
(4,091,000)
 
Earnings (loss) on discontinued operations, net of tax
(1,477,000)
4,250,000 
 
 
 
6,651,000 
6,125,000 
 
Discontinued Operations (Textuals) [Abstract]
 
 
 
 
 
 
 
 
Cumulative cash receipts received under ECU earn-out
 
 
 
 
 
 
 
150,000,000 
Payments received under 5CP earn-out
 
 
 
8,794,000 
11,625,000 
 
 
 
Gain on disposal of discontinued operations
(2,000)
7,912,000 
 
 
812,000 
(28,000)
495,000 
 
Total payments received under the 5CP earn-out
 
 
42,707,000 
 
 
 
 
 
Excess cash received under 5CP earn-out
 
 
9,606,000 
 
 
 
 
 
Cash transaction bonus payable
882,000 
882,000 
882,000 
 
 
 
728,000 
 
Earnings (loss) from results
(1,821,000)
(860,000)
 
 
 
11,121,000 
9,721,000 
 
Pretax gains from discontinued operations related to insurance settlements
 
 
 
 
 
 
$ 12,238,000 
 
Earnings Per Share (EPS) (Details)
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Earnings Per Share (EPS) [Abstract]
 
 
 
 
Weighted-average common shares outstanding
128,168,000 
127,452,000 
113,477,000 
112,045,000 
Weighted-average common shares outstanding, assuming dilution
128,168,000 
127,452,000 
113,829,000 
112,045,000 
Antidilutive common stock equivalents [Abstract]
 
 
 
 
Antidilutive common stock equivalents
4,067,000 
4,254,000 
5,104,000 
3,823,000 
Earnings Per Share (EPS) (Textuals) [Abstract]
 
 
 
 
Expected increase in weighted-average common shares outstanding, assuming dilution, for positive earnings
513,000 
533,000 
 
464,000 
Other stock compensation plans [Member]
 
 
 
 
Earnings Per Share (EPS) [Abstract]
 
 
 
 
Dilutive effect of stock options/SOSARs/ other stock compensation plans
208,000 
Stock options/SOSARs [Member]
 
 
 
 
Earnings Per Share (EPS) [Abstract]
 
 
 
 
Dilutive effect of stock options/SOSARs/ other stock compensation plans
144,000 
Income Taxes (Details) (USD $)
In Thousands
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Income Taxes (Textuals) [Abstract]
 
 
 
 
Accounting Standards Codification Topic 740 - Income Taxes recognition threshold for uncertain tax positions
50% 
50% 
50% 
50% 
Provision (benefit) for income taxes from continuing operations
$ (21,231)
$ (55,444)
$ 9,632 
$ (3,638)
Medium-term Investments (Details) (USD $)
In Thousands
6 Months Ended
Jun. 30, 2010
Dec. 31, 2009
6 Months Ended
Jun. 30, 2009
Medium-term Investments (Textuals) [Abstract]
 
 
 
Medium-term investments principal balance
$ 5,532 
$ 5,554 
$ 8,247 
Redemption of medium-term investments
22 
 
30,590 
Medium-term investments
$ 3,910 
$ 4,111 
$ 6,755 1
Derivative Instruments (Details) (USD $)
In Thousands
Jun. 30, 2011
Dec. 31, 2010
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
Dec. 31, 2009
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Jun. 20, 2008
1 Month Ended
Dec. 31, 2007
Dec. 11, 2007
Fair values of derivative instruments designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Interest rate cash flow hedge liability
 
 
$ 5,614 1
$ 5,614 1
$ 11,193 1
 
$ 14,069 1
 
 
 
Cash flow hedge derivative instruments on the accompanying Condensed Consolidated Statements of Earnings
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in OCI (effective portion)
 
 
234 
(574)
 
(871)
(1,670)
 
 
 
Derivative Instruments (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
Aggregate notional amount of swaps
 
 
2,426,480 
2,426,480 
2,501,501 
 
2,581,607 
650,000 
325,000 
 
Interest rate spread above 3-month London Interbank Offered Rate (LIBOR)
 
 
 
 
 
 
 
 
3-month LIBOR plus 1.25% 
 
Notional amount of forward starting interest rate swaps terminated and settled
 
 
 
 
 
 
325,000 
 
325,000 
 
Fixed interest rate paid under swap agreement
 
 
 
 
 
 
 
 
5.25% 
 
Estimated amount of pretax loss accumulated in Other Comprehensive Income related to interest rate swap that would be reclassified to earnings
7,908 
5,614 
 
 
 
 
 
 
 
 
Number of forward starting interest rate swap agreements
 
 
 
 
 
 
 
 
15 
 
Notional amount for forward starting interest rate swap agreements
 
 
 
 
 
 
 
 
1,500,000 
 
Cash payment for settlement of forward starting interest rate swap
 
 
 
 
 
 
 
 
 
57,303 
Notional amount of forward starting interest rate swaps terminated and settled
 
 
 
 
 
 
 
 
 
900,000 
Notional amount of remaining forward starting interest rate swaps extended
 
 
 
 
 
 
 
 
600,000 
 
Cash payment for settlement of remaining forward starting interest rate swaps
 
 
 
 
 
 
 
32,474 
 
 
5-year [Member]
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
Notional amount of forward starting interest rate swaps terminated and settled
 
 
 
 
 
 
 
 
 
300,000 
Interest rate derivatives [Member] | Other current liabilities [Member]
 
 
 
 
 
 
 
 
 
 
Fair values of derivative instruments designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Interest rate cash flow hedge liability
 
 
5,614 1
 
11,193 1
1
 
 
 
 
Interest rate derivatives [Member] | Other noncurrent liabilities [Member]
 
 
 
 
 
 
 
 
 
 
Fair values of derivative instruments designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Interest rate cash flow hedge liability
 
 
1
 
1
14,069 1
 
 
 
 
10-year [Member]
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
Notional amount of forward starting interest rate swaps terminated and settled
 
 
 
 
 
 
 
 
 
350,000 
30-year [Member]
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
Notional amount of forward starting interest rate swaps terminated and settled
 
 
 
 
 
 
 
 
 
250,000 
Interest Expense [Member]
 
 
 
 
 
 
 
 
 
 
Cash flow hedge derivative instruments on the accompanying Condensed Consolidated Statements of Earnings
 
 
 
 
 
 
 
 
 
 
Loss reclassified from Accumulated OCI (effective portion)
 
 
$ (4,997)
$ (9,895)
 
$ (3,957)
$ (7,327)
 
 
 
Fair Value Measurements (Details) (USD $)
In Thousands
Jun. 30, 2010
Dec. 31, 2009
Jun. 30, 2009
Dec. 31, 2007
Level 1 [Member]
 
 
 
 
Rabbi Trust
 
 
 
 
Net asset
$ 18,023 
$ 18,962 
$ 15,807 
 
Level 2 [Member]
 
 
 
 
Fair value recurring
 
 
 
 
Interest rate derivative
(5,614)
(11,193)
(14,069)
 
Net (asset) liability
1,481 
(2,998)
(3,498)
 
Fair Value Measurement (Textuals) [Abstract]
 
 
 
 
Interest rate swap agreement on 3-year notes
 
 
325,000 
325,000 
Rabbi Trust Equities [Member] | Level 1 [Member]
 
 
 
 
Rabbi Trust
 
 
 
 
Fair value recurring
7,236 
 
6,562 
 
Rabbi Trust Mutual Funds [Member] | Level 1 [Member]
 
 
 
 
Rabbi Trust
 
 
 
 
Fair value recurring
10,787 
 
9,245 
 
Medium-term Investments [Member] | Level 2 [Member]
 
 
 
 
Rabbi Trust
 
 
 
 
Fair value recurring
3,910 
 
6,755 
 
Rabbi Trust Common Collective Trust Funds [Member] | Level 2 [Member]
 
 
 
 
Rabbi Trust
 
 
 
 
Fair value recurring
$ 3,185 
 
$ 3,816 
 
Comprehensive Income (Details) (USD $)
In Thousands
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
Dec. 31, 2009
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Total comprehensive income (loss)
 
 
 
 
 
Net earnings (loss)
$ (23,992)
$ (62,739)
 
$ 22,212 
$ (10,569)
Other comprehensive income (loss)
 
 
 
 
 
Fair value adjustments to cash flow hedges, net of tax
124 
(320)
 
(519)
(995)
Reclassification adjustment for cash flow hedges included in net income (loss), net of tax
2,645 
5,498 
 
2,352 
4,334 
Amortization of pension and postretirement plan actuarial loss and prior service cost, net of tax
823 
1,722 
 
294 
569 
Total comprehensive income (loss)
(20,400)
(55,839)
 
24,339 
(6,661)
Accumulated other comprehensive loss
 
 
 
 
 
Cash flow hedges
(44,187)
(44,187)
(49,365)
 
(53,180)
Pension and postretirement plans
(143,271)
(143,271)
(144,993)
 
(128,194)
Accumulated other comprehensive loss
$ (187,458)
$ (187,458)
$ (194,358)
 
$ (181,374)1
Shareholders' Equity (Details) (USD $)
In Thousands, except Share and Per Share data
6 Months Ended
Jun. 30, 2010
1 Month Ended
Mar. 31, 2010
Dec. 31, 2009
1 Month Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Shareholders' Equity (Textuals) [Abstract]
 
 
 
 
 
Common stock, par value
$ 1 
$ 1 
$ 1 
 
$ 1 1
Number of common shares issued to pension plan
 
1,190,000 
 
 
 
Number of common shares issued in a public offering
 
 
 
13,225,000 
 
Receivable from issuance of common stock to the trustee under 401(k) savings and retirement plan
1,453 
 
 
 
 
Net proceeds from issuance of common stock to the trustee under 401(k) savings and retirement plan
35,314 
 
 
 
24,295 
Net proceeds from issuance of common stock to the trustee under 401(k) savings and retirement plan, Shares
768,735 
 
 
 
561,529 
Price of common shares
 
 
 
 
41 
Shares issued upon full exercise of the underwriters' option to purchase additional shares
 
 
 
 
1,725 
Net proceeds from the sale of the shares in a public offering
35,314 
 
 
519,993 
578,237 
Commissions and transaction costs included in net proceeds
 
 
 
22,232 
 
Increase in shareholders' equity from issuance of common shares in a public offering
 
 
 
519,993 
 
Increase in shareholders' equity from issuance of common shares to pension plan
 
53,864 
 
 
 
Value of common shares issued in a public offering
 
 
 
13,225 
 
Value of common shares issued to pension plan
 
1,190 
 
 
 
Increase in capital in excess of par from issuance of common shares in a public offering
 
 
 
506,768 
 
Increase in capital in excess of par from issuance of common shares to pension plan
 
52,674 
 
 
 
Shares remaining under the current authorization repurchase program
3,411,416 
 
 
 
 
Benefit Plans (Details) (USD $)
In Thousands, except Share data in Millions and Per Share data
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
1 Month Ended
Mar. 31, 2010
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Benefit Plans (Textuals) [Abstract]
 
 
 
 
 
Contributions to pension plans in cash
 
 
$ 18,636 
 
 
Contributions to pension plans in stock
 
 
53,864 
 
 
Total contributions (cash and stock) to qualified pension plans
 
 
72,500 
 
 
Number of shares contributed to pension plans
 
 
1.19 
 
 
Value per share of shares contributed to pension plans
 
 
45.26 
 
 
Contribution towards qualified and nonqualified pension plan
 
74,938 
 
 
2,242 
PENSION BENEFITS [Member]
 
 
 
 
 
Components of net periodic benefit cost
 
 
 
 
 
Service cost
4,800 
9,608 
 
4,658 
9,319 
Interest cost
10,406 
20,811 
 
10,485 
20,970 
Expected return on plan assets
(12,526)
(25,061)
 
(11,582)
(23,252)
Amortization of prior service cost
115 
230 
 
115 
230 
Amortization of actuarial loss
1,540 
2,876 
 
426 
826 
Net periodic pension/ postretirement benefit cost
4,335 
8,464 
 
4,102 
8,093 
Pretax reclassification from OCI included in net periodic pension (postretirement) benefit cost
1,655 
3,106 
 
541 
1,056 
OTHER POSTRETIREMENT BENEFITS [Member]
 
 
 
 
 
Components of net periodic benefit cost
 
 
 
 
 
Service cost
1,067 
2,133 
 
978 
1,956 
Interest cost
1,662 
3,325 
 
1,761 
3,522 
Amortization of prior service cost
(182)
(364)
 
(206)
(412)
Amortization of actuarial loss
222 
444 
 
150 
299 
Net periodic pension/ postretirement benefit cost
2,769 
5,538 
 
2,683 
5,365 
Pretax reclassification from OCI included in net periodic pension (postretirement) benefit cost
$ 40 
$ 80 
 
$ (56)
$ (113)
Credit Facilities, Short-term Borrowings and Long-term Debt (Details) (USD $)
In Thousands
Jul. 7, 2010
6 Months Ended
Jun. 30, 2010
Dec. 31, 2009
Jun. 30, 2009
Feb. 28, 2009
Jun. 20, 2008
Dec. 31, 2007
Short-term borrowings
 
 
 
 
 
 
 
Bank borrowings
 
$ 0 
$ 0 
$ 46,000 
 
 
 
Commercial paper
 
320,000 
236,512 
366,300 
 
 
 
Total short-term borrowings
 
320,000 
236,512 
412,300 1
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
2,426,480 
2,501,501 
2,581,607 
 
650,000 
325,000 
Less current maturities of long-term debt
 
425,300 
385,381 
60,417 1
 
 
 
Total long-term debt
 
2,001,180 
2,116,120 
2,521,190 1
 
 
 
Estimated fair value of total long-term debt
 
2,240,447 
 
 
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
Total unsecured bank lines of credit
 
1,500,000 
 
 
 
 
 
Pricing of bank loan over LIBOR, basis points
 
30 
 
 
 
 
 
Pricing of bank loan over LIBOR, basis points (as a percentage)
 
0.3% 
 
 
 
 
 
Secured long-term debt, including current maturities
 
3,636 
 
 
 
 
 
Long-term notes issued
450,000 
 
 
 
 
 
 
Maximum total debt as a percentage of total capital
 
65% 
 
 
 
 
 
Total debt as a percentage of total capital
 
40.4% 
40.3% 
42.6% 
 
 
 
Effective interest rate
2% 
 
 
 
 
 
 
Estimated fair value of total long-term debt [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Estimated fair value of total long-term debt
 
 
2,300,522 
2,499,454 
 
 
 
Commercial Paper [Member]
 
 
 
 
 
 
 
Short-term borrowings
 
 
 
 
 
 
 
Minimum days of maturity
 
 
 
 
Maximum days of maturity
 
42 
43 
 
 
 
Weighted-average interest rate
 
0.70% 
0.39% 
0.72% 
 
 
 
Bank borrowings [Member]
 
 
 
 
 
 
 
Short-term borrowings
 
 
 
 
 
 
 
Maximum days of maturity
 
 
 
 
 
 
Weighted-average interest rate
 
 
 
0.62% 
 
 
 
Long-term notes issued [Member]
 
 
 
 
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
Long-term notes issued
 
 
 
 
400,000 
 
 
7.15% 30-year notes issued 2007 [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
249,321 8
249,317 8
249,314 8
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
Coupon rate of notes
 
7.15% 
 
 
 
 
 
Decrease in unamortized discounts
 
679 
683 
686 
 
 
 
Effective interest rate
 
8.04% 
8.04% 
8.04% 
 
 
 
Maturity period of notes (In years)
 
0.03 
0.03 
0.03 
 
 
 
6.40% 10-year notes issued 2007 [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
349,844 3
349,837 3
349,829 3
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
Coupon rate of notes
 
6.4% 
 
 
 
 
 
Decrease in unamortized discounts
 
156 
163 
171 
 
 
 
Effective interest rate
 
7.39% 
7.39% 
7.39% 
 
 
 
Maturity period of notes (In years)
 
0.01 
0.01 
0.01 
 
 
 
5.60% 5-year notes issued 2007 [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
299,719 4
299,666 4
299,615 4
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
Coupon rate of notes
 
5.6% 
 
 
 
 
 
Decrease in unamortized discounts
 
281 
334 
385 
 
 
 
Effective interest rate
 
6.58% 
6.58% 
6.58% 
 
 
 
Maturity period of notes (In years)
 
 
 
 
3-year floating notes issued 2007
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
325,000 
325,000 
325,000 
 
 
 
7.00% 10-year notes issued 2008
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
399,641 6
399,625 6
399,610 6
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
Coupon rate of notes
 
7% 
 
 
 
 
 
Decrease in unamortized discounts
 
359 
375 
390 
 
 
 
Effective interest rate
 
7.86% 
7.86% 
7.86% 
 
 
 
Maturity period of notes (In years)
 
0.01 
0.01 
0.01 
 
 
 
6.30% 5-year notes issued 2008 [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
249,680 5
249,632 5
249,587 5
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
Coupon rate of notes
 
6.3% 
 
 
 
 
 
Decrease in unamortized discounts
 
320 
368 
413 
 
 
 
Effective interest rate
 
7.47% 
7.47% 
7.47% 
 
 
 
Maturity period of notes (In years)
 
 
 
 
3-year floating loan issued 2008 [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
100,000 
175,000 
255,000 
 
 
 
10.375% 2018 notes issued 2009 [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
248,329 7
248,270 7
248,213 7
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
Long-term notes issued
 
 
 
 
250,000 
 
 
Coupon rate of notes
 
10.375% 
 
 
10.375% 
 
 
Decrease in unamortized discounts
 
1,671 
1,730 
1,787 
 
 
 
Effective interest rate
 
10.584% 
10.584% 
10.584% 
 
 
 
10.125% 2015 notes issued 2009 [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
149,567 2
149,538 2
149,511 2
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals) [Abstract]
 
 
 
 
 
 
 
Long-term notes issued
 
 
 
 
150,000 
 
 
Coupon rate of notes
 
10.125% 
 
 
10.125% 
 
 
Decrease in unamortized discounts
 
433 
462 
489 
 
 
 
Effective interest rate
 
10.305% 
10.305% 
10.305% 
 
 
 
Private placement notes [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
15,181 
15,243 
15,309 
 
 
 
Other notes [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
1,648 
1,823 
2,069 
 
 
 
Industrial revenue bonds [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
17,550 
17,550 
17,550 
 
 
 
Medium-term Notes [Member]
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
Total debt excluding short-term borrowings
 
$ 21,000 
$ 21,000 
$ 21,000 
 
 
 
Asset Retirement Obligations (Details) (USD $)
In Thousands
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
ARO operating costs
 
 
 
 
Accretion