VULCAN MATERIALS CO, 10-Q filed on 8/4/2011
Quarterly Report
Document and Entity Information (USD $)
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
Vulcan Materials CO 
 
Entity Central Index Key
0001396009 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 30, 2011 
 
Amendment Flag
FALSE 
 
Document Fiscal Year Focus
2011 
 
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
 
$ 5,602,210,475 
Entity Common Stock, Shares Outstanding
129,224,468 
 
Condensed Consolidated Balance Sheets (Unaudited, except for December 31) (USD $)
In Thousands
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Assets
 
 
 
Cash and cash equivalents
$ 106,744 
$ 47,541 
$ 42,173 1
Restricted cash
109 
547 
3,746 1
Medium-term investments
3,910 1
Accounts and notes receivable
 
 
 
Accounts and notes receivable, gross
397,423 
325,303 
398,613 1
Less: Allowance for doubtful accounts
(7,641)
(7,505)
(9,290)1
Accounts and notes receivable, net
389,782 
317,798 
389,323 1
Inventories
 
 
 
Finished products
259,109 
254,840 
246,956 1
Raw materials
26,300 
22,222 
23,114 1
Products in process
4,930 
6,036 
3,784 1
Operating supplies and other
38,926 
36,747 
37,486 1
Inventories
329,265 
319,845 
311,340 1
Current deferred income taxes
44,794 
53,794 
57,575 1
Prepaid expenses
21,659 
19,374 
33,972 1
Assets held for sale
13,207 
14,864 1
Total current assets
892,353 
772,106 
856,903 1
Investments and long-term receivables
37,251 
37,386 
34,078 1
Property, plant & equipment
 
 
 
Property, plant & equipment, cost
6,739,908 
6,692,814 
6,632,580 1
Reserve for depreciation, depletion & amortization
(3,197,163)
(3,059,900)
(2,915,565)1
Property, plant & equipment, net
3,542,745 
3,632,914 
3,717,015 1
Goodwill
3,097,016 
3,097,016 
3,096,300 1
Other intangible assets, net
694,509 
691,693 
681,059 1
Other noncurrent assets
121,736 
106,776 
101,610 1
Total assets
8,385,610 
8,337,891 
8,486,965 1
Liabilities
 
 
 
Current maturities of long-term debt
5,230 
5,246 
425,300 1
Short-term borrowings
100,000 
285,500 
320,000 1
Trade payables and accruals
153,729 
102,315 
168,269 1
Other current liabilities
162,001 
172,495 
160,151 1
Liabilities of assets held for sale
116 
409 1
Total current liabilities
420,960 
565,672 
1,074,129 1
Long-term debt
2,785,843 
2,427,516 
2,001,180 1
Noncurrent deferred income taxes
762,406 
849,448 
843,408 1
Other noncurrent liabilities
535,136 
530,275 
538,929 1
Total liabilities
4,504,345 
4,372,911 
4,457,646 1
Other commitments and contingencies (Note 19)
 
 
 1
Equity
 
 
 
Common stock, $1 par value
129,224 
128,570 
128,270 1
Capital in excess of par value
2,534,562 
2,500,886 
2,477,672 1
Retained earnings
1,385,208 
1,512,863 
1,610,835 1
Accumulated other comprehensive loss
(167,729)
(177,339)
(187,458)1
Total equity
3,881,265 
3,964,980 
4,029,319 1
Total liabilities and equity
$ 8,385,610 
$ 8,337,891 
$ 8,486,965 1
Condensed Consolidated Balance Sheets (Unaudited, except for December 31) (Parenthetical)
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Mar. 31, 2010
Equity
 
 
 
 
Common stock, par value
$ 1 
$ 1 
$ 1 1
$ 1 
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Condensed Consolidated Statements of Comprehensive Income [Abstract]
 
 
 
 
Net sales
$ 657,457 
$ 692,758 
$ 1,113,773 
$ 1,157,293 
Delivery revenues
44,514 
43,394 
75,398 
72,122 
Total revenues
701,971 
736,152 
1,189,171 
1,229,415 
Cost of goods sold (Note 8)
556,617 
570,423 
1,020,039 
1,034,063 
Delivery costs
44,514 
43,394 
75,398 
72,122 
Cost of revenues
601,131 
613,817 
1,095,437 
1,106,185 
Gross profit
100,840 
122,335 
93,734 
123,230 
Selling, administrative and general expenses (Note 8)
75,893 
83,376 
153,408 
169,872 
Gain on sale of property, plant & equipment and businesses, net
2,919 
1,362 
3,373 
49,734 
Recovery (charge) from legal settlement (Note 19)
(40,000)
25,546 
(40,000)
Other operating income (expense), net
(4,378)
889 
(6,940)
1,347 
Operating earnings (loss)
23,488 
1,210 
(37,695)
(35,561)
Other nonoperating income (expense), net
(20)
(1,233)
1,361 
144 
Interest expense, net (Note 8)
70,911 
43,723 
113,161 
87,016 
Loss from continuing operations before income taxes
(47,443)
(43,746)
(149,495)
(122,433)
Benefit from income taxes
(40,341)
(21,231)
(77,771)
(55,444)
Loss from continuing operations
(7,102)
(22,515)
(71,724)
(66,989)
Earnings (loss) on discontinued operations, net of tax
(1,037)
(1,477)
8,852 
4,250 
Net loss
(8,139)
(23,992)
(62,872)
(62,739)
Other comprehensive income, net of tax
 
 
 
 
Fair value adjustments to cash flow hedges
124 
(320)
Reclassification adjustment for cash flow hedges
4,003 
2,645 
5,453 
5,498 
Amortization of pension and postretirement plan actuarial loss and prior service cost
1,941 
823 
4,158 
1,722 
Other comprehensive income
5,944 
3,592 
9,611 
6,900 
Comprehensive loss
(2,195)
(20,400)
(53,261)
(55,839)
Basic earnings (loss) per share
 
 
 
 
Continuing operations
$ (0.05)
$ (0.18)
$ (0.55)
$ (0.53)
Discontinued operations
$ (0.01)
$ (0.01)
$ 0.06 
$ 0.04 
Net loss per share
$ (0.06)
$ (0.19)
$ (0.49)
$ (0.49)
Diluted earnings (loss) per share
 
 
 
 
Continuing operations
$ (0.05)
$ (0.18)
$ (0.55)
$ (0.53)
Discontinued operations
$ (0.01)
$ (0.01)
$ 0.06 
$ 0.04 
Net loss per share
$ (0.06)
$ (0.19)
$ (0.49)
$ (0.49)
Weighted-average common shares outstanding
 
 
 
 
Basic
129,446 
128,168 
129,263 
127,452 
Assuming dilution
129,446 
128,168 
129,263 
127,452 
Cash dividends declared per share of common stock
$ 0.25 
$ 0.25 
$ 0.50 
$ 0.50 
Depreciation, depletion, accretion and amortization
$ 92,137 
$ 97,280 
$ 182,723 
$ 191,476 
Effective tax rate from continuing operations
85.00% 
48.50% 
52.00% 
45.30% 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands
6 Months Ended
Jun. 30,
2011
2010
Operating Activities
 
 
Net loss
$ (62,872)
$ (62,739)
Adjustments to reconcile net loss to net cash provided by operating activities
 
 
Depreciation, depletion, accretion and amortization
182,723 
191,476 
Net gain on sale of property, plant & equipment and businesses
(15,657)
(58,527)
Contributions to pension plans
(1,995)
(21,075)
Share-based compensation
8,849 
10,524 
Deferred tax provision
(92,031)
(54,755)
Changes in assets and liabilities before initial effects of business acquisitions and dispositions
(37,591)
2,585 
Cost of debt purchase
19,153 
Other, net
6,437 
11,167 
Net cash provided by operating activities
7,016 
18,656 
Investing Activities
 
 
Purchases of property, plant & equipment
(51,512)
(42,158)
Proceeds from sale of property, plant & equipment
6,717 
3,224 
Proceeds from sale of businesses, net of transaction costs
12,284 
50,954 
Decrease (increase) in restricted cash
437 
(3,746)
Other, net
927 
(283)
Net cash provided by (used for) investing activities
(31,147)
7,991 
Financing Activities
 
 
Net short-term borrowings (payments)
(185,500)
83,488 
Payment of current maturities and long-term debt
(737,739)
(75,188)
Proceeds from issuance of long-term debt
1,100,000 
Debt issuance costs
(17,904)
Proceeds from issuance of common stock
4,936 
35,314 
Dividends paid
(64,570)
(63,600)
Proceeds from exercise of stock options
3,232 
12,597 
Cost of debt purchase
(19,153)
Other, net
32 
650 
Net cash provided by (used for) financing activities
83,334 
(6,739)
Net increase in cash and cash equivalents
59,203 
19,908 
Cash and cash equivalents at beginning of year
47,541 
22,265 
Cash and cash equivalents at end of period
$ 106,744 
$ 42,173 1
Basis of Presentation
BASIS OF PRESENTATION
NOTE 1: BASIS OF PRESENTATION
Vulcan Materials Company (the “Company,” “Vulcan,” “we,” “our”), a New Jersey corporation, is the nation’s largest producer of construction aggregates, primarily crushed stone, sand and gravel; a major producer of asphalt mix and ready-mixed concrete and a leading producer of cement in Florida.
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, 2011 are not necessarily indicative of the results that may be expected for the year ended December 31, 2011. For further information, refer to the consolidated financial statements and footnotes included in our most recent Annual Report on Form 10-K.
Due to the 2005 sale of our Chemicals business as presented in Note 2, the operating results of the Chemicals business are presented as discontinued operations in the accompanying Condensed Consolidated Statements of Comprehensive Income.
RECLASSIFICATIONS
Certain items previously reported in specific financial statement captions have been reclassified to conform with the 2011 presentation.
CORRECTION OF PRIOR PERIOD FINANCIAL STATEMENTS
During 2010 we completed a comprehensive analysis of our deferred income tax balances and concluded that our deferred income tax liabilities were understated. The errors arose during 2008 and during periods prior to January 1, 2007, and are not material to previously issued financial statements. As a result, we did not amend previously filed financial statements but restated the December 31, 2009 balance sheet in our Annual Report on Form 10-K for the year ended December 31, 2010 and have restated the June 30, 2010 balance sheet presented in this Form 10-Q.
The errors that arose during 2008 related to the calculations of deferred income taxes referable to the Florida Rock acquisition and additional 2008 federal return adjustments. The correction of these errors resulted in a decrease to deferred income tax liabilities of $6,129,000, an increase to goodwill referable to our Aggregates segment of $2,321,000 and an increase in current taxes payable of $8,450,000 for the year ended December 31, 2008.
The errors that arose during periods prior to January 1, 2007 resulted in an understatement of deferred income tax liabilities of $14,785,000. Based on the work performed to confirm the current and deferred income tax provisions recorded during 2007, 2008 and 2009, and to determine the correct deferred income tax account balances as of January 1, 2007, we were able to substantiate that the $14,785,000 understatement related to periods prior to January 1, 2007. The correction of these errors resulted in an increase to deferred income tax liabilities and a corresponding decrease to retained earnings of $14,785,000 as of January 1, 2007.
A summary of the effects of the correction of the errors on our Condensed Consolidated Balance Sheet as of June 30, 2010, is presented in the table below:
                         
 
    As of June 30, 2010  
    As             As  
in thousands   Reported     Correction     Restated  
 
Balance Sheet
                       
Assets
                       
Current deferred income taxes
    $59,525       ($1,950 )     $57,575  
Prepaid expenses
    42,422       (8,450 )     33,972  
 
Total current assets
    867,303       (10,400 )     856,903  
Goodwill
    3,093,979       2,321       3,096,300  
 
Total assets
    $8,495,044       ($8,079 )     $8,486,965  
 
Liabilities
                       
Noncurrent deferred income taxes
    $836,702       $6,706       $843,408  
 
Total liabilities
    4,450,940       6,706       4,457,646  
 
Equity
                       
Retained earnings
    1,625,620       (14,785 )     1,610,835  
 
Total equity
    4,044,104       (14,785 )     4,029,319  
 
Total liabilities and equity
    $8,495,044       ($8,079 )     $8,486,965  
 
Discontinued Operations
DISCONTINUED OPERATIONS
NOTE 2: DISCONTINUED OPERATIONS
In 2005, we sold substantially all the assets of our Chemicals business to Basic Chemicals, a subsidiary of Occidental Chemical Corporation. In addition to the initial cash proceeds, Basic Chemicals was required to make payments under two earn-out agreements 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 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). 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 2011, we received a payment of $12,284,000 under the 5CP earn-out related to performance during the year ended December 31, 2010. During the first quarter of 2010, we received $8,794,000 under the 5CP earn-out related to the year ended December 31, 2009. These receipts were recorded as gains on disposal of discontinued operations. Through June 30, 2011, we have received a total of $54,991,000 under the 5CP earn-out, a total of $21,890,000 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 2011 payout will be $1,228,000 and have accrued this amount as of June 30, 2011. In comparison, we had accrued $882,000 as of June 30, 2010.
The financial results of the Chemicals business are classified as discontinued operations in the accompanying Condensed Consolidated Statements of Comprehensive Income for all periods presented. There were no net sales or revenues from discontinued operations during the six month periods ended June 30, 2011 and 2010. Results from discontinued operations are as follows:
                                 
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
 
Discontinued Operations
                               
Pretax earnings (loss) from results
    ($1,719 )     ($1,821 )     $3,587       ($860 )
Gain on disposal, net of transaction bonus
    0       (2 )     11,056       7,912  
Income tax (provision) benefit
    682       346       (5,791 )     (2,802 )
 
                       
Earnings (loss) on discontinued operations,
net of tax
    ($1,037 )     ($1,477 )     $8,852       $4,250  
 
                       
The second quarter pretax losses from results of discontinued operations of ($1,719,000) in 2011 and ($1,821,000) in 2010 were 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 of $3,587,000 for the six months ended June 30, 2011 includes a $7,500,000 pretax gain recognized in the first quarter on recovery from an insurer in lawsuits involving perchloroethylene. This gain was offset in part by general and product liability costs, including legal defense costs, and environmental remediation costs. The pretax loss from results of discontinued operations of ($860,000) for the six months ended June 30, 2010 includes litigation settlements associated with our former Chemicals business offset in part by general and product liability costs, including legal defense costs, and environmental remediation costs.
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 by the weighted-average common shares outstanding (basic EPS) or weighted-average common shares outstanding assuming dilution (diluted EPS) as set forth below:
                                 
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
 
Weighted-average common shares
outstanding
    129,446       128,168       129,263       127,452  
Dilutive effect of
                               
Stock options/SOSARs
    0       0       0       0  
Other stock compensation plans
    0       0       0       0  
 
                       
Weighted-average common shares
outstanding, assuming dilution
    129,446       128,168       129,263       127,452  
 
                       
All dilutive common stock equivalents are reflected in our earnings per share calculations. Antidilutive common stock equivalents are not included in our earnings per share calculations. In periods of loss, shares that otherwise would have been included in our diluted weighted-average common shares outstanding computation are excluded. These excluded shares are as follows: three months ended June 30, 2011 — 291,000 shares, three months ended June 30, 2010 — 513,000 shares, six months ended June 30, 2011 — 324,000 shares and six months ended June 30, 2010 — 533,000 shares.
The number of antidilutive common stock equivalents for which the exercise price exceeds the weighted-average market price, are as follows:
                                 
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
 
Antidilutive common stock equivalents
    5,873       4,067       5,873       4,254  
 
                       
Income Taxes
INCOME TAXES
NOTE 4: INCOME TAXES
Our income tax provision and the corresponding annual effective tax rate are 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 effective tax rate based on projected taxable income for the full year and record a quarterly tax provision in accordance with the expected annual effective tax 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 annual 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 income tax provision reflects the expected annual effective tax rate. Significant judgment is required in determining our annual effective tax rate and in evaluating our tax positions.
When application of the expected annual effective tax rate distorts the financial results of an interim period, we calculate the income tax provision or benefit using an alternative methodology. This alternative methodology results in an income tax provision or benefit based solely on the year-to-date pretax income or loss as adjusted for permanent differences on a pro rata basis.
We recognize an income 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 income 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. We consider resolution for an issue to occur at the earlier of settlement of an examination, the expiration of the statute of limitations, or when the issue is effectively settled. Our income tax provision includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as we consider appropriate.
In the first quarter of 2011, we applied the alternative methodology discussed above in the determination of the income tax benefit from continuing operations. However, as of June 30, 2011, the conditions requiring the alternative methodology no longer existed. As a result, in the second quarter of 2011, we estimated the annual effective tax rate based on our projected taxable loss for the full year and recorded a quarterly tax benefit in accordance with the expected annual effective tax rate.
We recorded income tax benefits from continuing operations of $40,341,000 in the second quarter of 2011 compared to $21,231,000 in the second quarter of 2010. An adjustment to the current quarter’s income tax benefit was required so that the year-to-date benefit reflects the expected annual effective tax rate. The increase in our income tax benefit resulted largely from applying the alternative methodology in the second quarter of 2010. We recorded income tax benefits from continuing operations of $77,771,000 for the six months ended June 30, 2011 compared to $55,444,000 for the six months ended June 30, 2010. The increase in our income tax benefit resulted largely from applying the alternative methodology for the first six months of 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, 2011 — $0, December 31, 2010 — $5,531,000 and June 30, 2010 — $5,532,000. 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, during 2008 we changed the classification of our investments in The Reserve funds from cash and cash equivalents to medium-term investments. We reduced the carrying value of our investment to its estimated fair value of $3,630,000 and $3,910,000 as of December 31, 2010 and June 30, 2010, respectively. See Note 7 for further discussion of the fair value determination.
During January 2011, we received $3,630,000 from the Reserve representing the final redemption of the investment. As a result of this redemption, we reclassified our investments in The Reserve funds from medium-term investments to cash and cash equivalents as of December 31, 2010.
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 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 accounting for gains and losses that result from changes in the fair value of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationship. The interest rate swap agreements described below were designated as either fair value hedges or cash flow hedges. The changes in fair value of our interest rate swap fair value hedges are recorded as interest expense consistent with the change in the fair value of the hedged items attributable to the risk being hedged. The changes in fair value of our interest rate swap cash flow hedges are recorded in accumulated other comprehensive income (AOCI) and are reclassified into interest expense in the same period the hedged items affect earnings.
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:
                                 
 
                       
            Fair Value1  
            June 30     December 31     June 30  
in thousands   Balance Sheet Location   2011     2010     2010  
 
                       
Liabilities
                               
Interest rate swaps
  Other current liabilities     $0       $0       $5,614  
Interest rate swaps
  Other noncurrent liabilities     7,419       0       0  
 
                       
Total hedging instrument liabilities
            $7,419       $0       $5,614  
 
                       
   1   See Note 7 for further discussion of the fair value determination.
We use interest rate swap agreements designated as cash flow hedges to minimize the variability in cash flows of liabilities or forecasted transactions caused by fluctuations in interest rates. In December 2007, we issued $325,000,000 of 3-year floating-rate notes that bore 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 amount of $325,000,000. Under this agreement, we paid a fixed interest rate of 5.25% and received 3-month LIBOR plus 1.25% per annum. Concurrent with each quarterly interest payment, the portion of this swap related to that interest payment was settled and the associated realized gain or loss was recognized. This swap agreement terminated December 15, 2010, coinciding with the maturity of the 3-year notes.
Additionally, during 2007, we entered into fifteen forward starting interest rate swap agreements for a total stated amount of $1,500,000,000. Upon the 2007 and 2008 issuances of the related fixed-rate debt, we terminated and settled these forward starting swaps for cash payments of $89,777,000. Amounts accumulated in other comprehensive loss are being amortized to interest expense over the term of the related debt. For the twelve month period ending June 30, 2012, we estimate that $6,247,000 of the pretax loss accumulated in other comprehensive income (OCI) will be reclassified to earnings.
The effects of changes in the fair values of derivatives designed as cash flow hedges on the accompanying Condensed Consolidated Statements of Comprehensive Income are as follows:
                                         
 
                             
            Three Months Ended     Six Months Ended  
    Location on     June 30     June 30  
in thousands   Statements     2011     2010     2011     2010  
 
                             
Cash Flow Hedges
                                       
Gain (loss) recognized in OCI
(effective portion)
  OCI       $0       $234       $0       ($574 )
 
                                       
Gain (loss) reclassified from
                                       
Accumulated OCI
  Interest                                  
(effective portion)
  expense       (6,678 )     (4,997 )     (8,672 )     (9,895)  
 
                             
We use interest rate swap agreements designated as fair value hedges to minimize exposure to changes in the fair value of fixed-rate debt that results from fluctuations in the benchmark interest rates for such debt. In June 2011, we issued $500,000,000 of 6.50% fixed-rate debt maturing on December 1, 2016. Concurrently, we entered into interest rate swap agreements in the stated amount of $500,000,000. Under these agreements, we pay 6-month LIBOR plus a spread of approximately 4.05% and receive a fixed interest rate of 6.50%. Additionally, in June 2011, we entered into interest rate swap agreements on our $150,000,000 fixed-rate 10.125% 7-year notes issued in 2009. Under these agreements, we pay 6-month LIBOR plus a spread of approximately 8.03% and receive a fixed interest rate of 10.125%.
The effects of changes in the fair value of derivatives designated as fair value hedges on the accompanying Condensed Consolidated Statements of Comprehensive Income are as follows:
                                         
 
                             
            Three Months Ended     Six Months Ended  
    Location on     June 30     June 30  
in thousands   Statements     2011     2010     2011     2010  
 
                             
Fair Value Hedges
                                       
Gain (loss) recognized in income
  Interest                                
- Interest rate swaps
  expense     ($7,419 )     $0       ($7,419 )     $0  
 
                                   
Gain (loss) recognized in income
  Interest                                
- Fixed rate debt
  expense     7,419       0       7,419       0  
 
                             
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:
                         
 
                 
            Level 1        
    June 30     December 31     June 30  
in thousands   2011     2010     2010  
 
                 
Fair Value Recurring
                       
Rabbi Trust
                       
Mutual funds
    $14,836       $13,960       $10,787  
Equities
    8,413       9,336       7,236  
 
                 
Total asset
    $23,249       $23,296       $18,023  
 
                 
                         
 
                       
    Level 2
    June 30   December 31     June 30  
in thousands   2011     2010     2010  
 
                       
Fair Value Recurring
                       
Medium-term investments
    $0       $0       $3,910  
Interest rate swaps
    (7,419 )     0       (5,614 )
Rabbi Trust
                       
Common/collective trust funds
    1,368       2,431       3,185  
 
                       
Net asset (liability)
    ($6,051 )     $2,431       $1,481  
 
                       
The Rabbi Trust investments relate to funding for the executive nonqualified deferred compensation and excess benefit plans. The fair values of these investments are estimated using a market approach. The Level 1 investments include mutual funds and equity securities for which quoted prices in active markets are available. 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 were 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 would reduce the principal available for distribution.
Interest rate swaps are measured at fair value using quoted market prices or pricing models using prevailing market interest rate as of the measurement date. These interest rate swaps are more fully described in Note 6.
The carrying values of our cash equivalents, restricted cash, accounts and notes receivable, current maturities of long-term debt, short-term borrowings, trade payables and other accrued expenses 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.
Assets that were subject to fair value measurement on a nonrecurring basis are summarized below:
                 
 
               
    As of December 31, 2010  
            Impairment  
in thousands   Level 3     Charges  
 
Fair Value Nonrecurring
               
Property, plant & equipment
    $1,536       $2,500  
Assets held for sale
    9,625       1,436  
 
Totals
    $11,161       $3,936  
 
We recorded a $3,936,000 loss on impairment of long-lived assets in 2010. We utilized an income approach to measure the fair value of the long-lived assets and determined that the carrying value of the assets exceeded the fair value. The loss on impairment represents the difference between the carrying value and the fair value (less costs to sell for assets held for sale) of the impacted long-lived assets.
Other Comprehensive Income (OCI)
OTHER COMPREHENSIVE INCOME (OCI)
NOTE 8: OTHER COMPREHENSIVE INCOME (OCI)
Comprehensive income includes charges and credits to equity from nonowner sources and comprises two subsets: net earnings and other comprehensive income. The components of other comprehensive income are presented in the accompanying Condensed Consolidated Statements of Comprehensive Income, net of applicable taxes.
Amounts accumulated in other comprehensive income (loss), net of tax, are as follows:
                                 
 
                       
    June 30     December 31     June 30        
in thousands   2011     2010     2010          
Accumulated Other Comprehensive Loss
                               
Cash flow hedges
    ($33,685 )     ($39,137 )     ($44,187 )        
Pension and postretirement plans
    (134,044 )     (138,202 )     (143,271 )        
 
                       
Total
    ($167,729 )     ($177,339 )     ($187,458 )        
 
                       
Amounts reclassified from other comprehensive income (loss) to net loss, are as follows:
                                 
 
                       
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
Reclassification Adjustment for Cash Flow
Hedges
                               
Interest expense, net
    $6,658       $4,977       $8,632       $9,855  
Benefit from income taxes
    ($2,655 )     ($2,332 )     ($3,179 )     ($4,357 )
 
                       
Total
    $4,003       $2,645       $5,453       $5,498  
 
                       
Amortization of Pension and Postretirement
Plan Actuarial Loss and Prior Service Cost
                               
Cost of goods sold
    $2,454       $1,273       $4,697       $2,376  
Selling, administrative and general expense
    761       422       1,545       810  
Benefit from income taxes
    (1,274 )     (872 )     (2,084 )     (1,464 )
 
                       
Total
    $1,941       $823       $4,158       $1,722  
 
                       
Total reclassifications from OCI to net loss
    $5,944       $3,468       $9,611       $7,220  
 
                       
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. This transaction increased shareholders’ equity by $53,864,000 (common stock $1,190,000 and capital in excess of par $52,674,000).
In February 2011, we issued 372,992 shares (368,527 shares net of acquired cash) of common stock in connection with a business acquisition as described in Note 14.
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, 2011 — issued 110,881 shares for cash proceeds of $4,745,000; and
 
§   six months ended June 30, 2010 — issued 768,735 shares for cash proceeds of $35,314,000 and a receivable of $1,453,000.
No shares were held in treasury as of June 30, 2011, December 31, 2010 and June 30, 2010. As of June 30, 2011, 3,411,416 shares may be repurchased under the current authorization of our Board of Directors.
Benefit Plans
BENEFIT PLANS
NOTE 10: BENEFIT PLANS
The following tables set forth the components of net periodic benefit cost:
                                 
 
                       
PENSION BENEFITS   Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
Components of Net Periodic Benefit Cost
                               
Service cost
    $5,191       $4,800       $10,381       $9,608  
Interest cost
    10,650       10,406       21,192       20,811  
Expected return on plan assets
    (12,370 )     (12,526 )     (24,740 )     (25,061 )
Amortization of prior service cost
    85       115       170       230  
Amortization of actuarial loss
    3,011       1,540       5,835       2,876  
 
                       
Net periodic pension benefit cost
    $6,567       $4,335       $12,838       $8,464  
 
                       
Pretax reclassification from OCI included in net periodic pension benefit cost
    $3,096       $1,655       $6,005       $3,106  
 
                       
                                 
 
                       
OTHER POSTRETIREMENT BENEFITS   Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
Components of Net Periodic Benefit Cost
                               
Service cost
    $1,198       $1,067       $2,395       $2,133  
Interest cost
    1,612       1,662       3,225       3,325  
Amortization of prior service credit
    (168 )     (182 )     (337 )     (364 )
Amortization of actuarial loss
    287       222       574       444  
 
                       
Net periodic postretirement benefit cost
    $2,929       $2,769       $5,857       $5,538  
 
                       
Pretax reclassification from OCI included in net periodic postretirement benefit cost
    $119       $40       $237       $80  
 
                       
The reclassifications from OCI noted in the tables above are related to amortization of prior service costs or credits and actuarial losses as shown in Note 8.
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) and an additional $1,300,000 in July 2010 to our qualified pension plans for the 2009 plan year. These contributions, along with the existing funding credits, should be sufficient to cover expected required contributions to the qualified plans through 2012.
As of December 31, 2008, our Master Pension Trust had assets invested at Westridge Capital Management, Inc. (WCM) with a reported fair value of $59,245,000. In February 2009, the New York District Court appointed a receiver over WCM due to allegations of fraud and other violations of federal commodities and securities laws by principals of a WCM affiliate. In light of these allegations, we reassessed the fair value of our investments at WCM and recorded a $48,018,000 write-down in the estimated fair value of these assets for the year ended December 31, 2008.
During 2010, the Master Pension Trust received $6,555,000 from the receiver over WCM as a partial distribution of assets, and received a $15,000,000 insurance settlement related to our WCM loss. In April 2011, the court-appointed receiver released an additional $22,041,000 to our Master Pension Trust.
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:
                         
 
                 
    June 30     December 31     June 30  
dollars in thousands   2011     2010     2010  
Short-term Borrowings
                       
Bank borrowings
    $100,000       $285,500       $0  
Commercial paper
    0       0       320,000  
 
                 
Total
    $100,000       $285,500       $320,000  
 
                 
Bank Borrowings
                       
Maturity
  15 days     3 - 74 days       n/a  
Weighted-average interest rate
    0.53 %       0.59 %       n/a  
 
                       
Commercial Paper
                       
Maturity
    n/a       n/a     1 - 2 days  
Weighted-average interest rate
    n/a       n/a       0.70%  
 
                 
We utilize our bank lines of credit to fund our working capital and for general corporate purposes. Bank lines of credit totaling $1,500,000,000 were maintained at June 30, 2011, all of which expire November 16, 2012. Interest rates referable to borrowings under these lines of credit are determined at the time of borrowing based on current market conditions. Bank loans totaled $100,000,000 as of June 30, 2011 and were borrowed for 15 days at 0.53%.
All lines of credit extended to us in 2011 and 2010 required no compensating balances. In the normal course of business, we maintain balances in our bank accounts for which we are credited with earnings allowances toward our cash management related service fees. To the extent the earnings allowances are not sufficient to fully cover the related fees for these non-credit services, we pay the difference.
In June 2011, we issued $1,100,000,000 of long-term notes in two series, as follows: $500,000,000 of 6.50% notes due in 2016 and $600,000,000 of 7.50% notes due in 2021. These notes were issued principally to:
§   repay and terminate our $450,000,000 5-year floating-rate term loan,
 
§   fund the purchase of $165,443,000 of our outstanding 5.60% 5-year notes issued in 2007 and $109,556,000 of our outstanding 6.30% 5-year notes issued in 2008 through a tender offer,
 
§   repay $275,000,000 outstanding under our revolving credit facility,
 
§   and for general corporate purposes.
The aforementioned $450,000,000 5-year term loan was established in July 2010 in order to repay the $100,000,000 outstanding balance of our 3-year syndicated term loan issued in 2008 and all outstanding commercial paper. Unamortized deferred financing costs of $2,423,000 were recognized in June 2011 as a component of interest expense upon the termination of the term loan.
The 5.60% and 6.30% 5-year notes were purchased for total consideration of $294,533,000, representing a $19,534,000 premium above the $274,999,000 face value of the notes. This premium primarily reflects the trading price of the notes at the time of purchase relative to par value. Additionally, $4,711,000 of expense associated with a proportional amount of unamortized discounts, deferred financing costs and amounts accumulated in OCI was recognized in June 2011 upon the partial termination of the notes. The combined expense of $24,245,000 is presented in the accompanying Condensed Consolidated Statements of Comprehensive Income as a component of interest expense for the three and six month periods ended June 30, 2011.
As of June 30, 2011, $40,000 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 and long-term, are unsecured.
Long-term debt is summarized as follows:
                         
 
    June 30     December 31     June 30  
in thousands   2011     2010     2010  
 
                 
Long-term Debt
                       
6.50% 5.5-year notes issued 20111
      $500,000       $0       $0  
7.50% 10-year notes issued 20112
    600,000       0       0  
5-year floating-rate term loan issued 2010
    0       450,000       0  
10.125% 7-year notes issued 20093
    149,628       149,597       149,567  
10.375% 10-year notes issued 20094
    248,457       248,391       248,329  
3-year floating-rate term loan issued 2008
    0       0       100,000  
6.30% 5-year notes issued 20085
    140,322       249,729       249,680  
7.00% 10-year notes issued 20086
    399,675       399,658       399,641  
3-year floating-rate notes issued 2007
    0       0       325,000  
5.60% 5-year notes issued 20077
    134,483       299,773       299,719  
6.40% 10-year notes issued 20078
    349,861       349,852       349,844  
7.15% 30-year notes issued 20079
    239,717       249,324       249,321  
Private placement notes
    0       0       15,181  
Medium-term notes
    21,000       21,000       21,000  
Industrial revenue bonds
    14,000       14,000       17,550  
Other notes
    1,349       1,438       1,648  
Fair value adjustments 10
    (7,419 )     0       0  
 
                 
Total debt excluding short-term borrowings
    $2,791,073       $2,432,762       $2,426,480  
 
                 
Less current maturities of long-term debt
    5,230       5,246       425,300  
 
                 
Total long-term debt
    $2,785,843       $2,427,516       $2,001,180  
 
                 
         
Estimated fair value of total long-term debt
    $2,857,684       $2,559,059       $2,240,447  
 
                 
 
1   The effective interest rate for these notes is 6.85% , excluding the impact of the interest rate swap described in Note 6.
 
2   The effective interest rate for these notes is 7.73% .
 
3   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $372 thousand, December 31, 2010 — $403 thousand and June 30, 2010 — $433 thousand. The effective interest rate for these notes is 10.31% , excluding the impact of the interest rate swap described in Note 6.
 
4   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $1,543 thousand, December 31, 2010 — $1,609 thousand and June 30, 2010 — $1,671 thousand. The effective interest rate for these notes is 10.58%.
 
5   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $122 thousand, December 31, 2010 — $271 thousand and June 30, 2010 — $320 thousand. The effective interest rate for these notes is 7.46%.
 
6   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $325 thousand, December 31, 2010 — $342 thousand and June 30, 2010 — $359 thousand. The effective interest rate for these notes is 7.86%.
 
7   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $74 thousand, December 31, 2010 — $227 thousand and June 30, 2010 — $281 thousand. The effective interest rate for these notes is 6.55%.
 
8   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $139 thousand, December 31, 2010 — $148 thousand and June 30, 2010 — $156 thousand. The effective interest rate for these notes is 7.39%.
 
9   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $646 thousand, December 31, 2010 — $676 thousand and June 30, 2010 — $679 thousand. The effective interest rate for these notes is 8.04%.
 
10   See Note 6 for additional information about our fair value hedging strategy.
The estimated fair value of total long-term debt presented in the table above was 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 bank credit facility and the indentures governing our notes contain a covenant limiting our total debt as a percentage of total capital to 65%. Our total debt as a percentage of total capital was 42.7% as of June 30, 2011; 40.7% as of December 31, 2010; and 40.5% as of June 30, 2010.
Asset Retirement Obligations
ASSET RETIREMENT OBLIGATIONS
NOTE 12: ASSET RETIREMENT OBLIGATIONS
Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets.
Recognition of a liability for an ARO is required in the period in which it is incurred at its estimated fair value. The associated asset retirement costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability is accreted through charges to operating expenses. If the ARO is settled for other than the carrying amount of the liability, we recognize a gain or loss on settlement.
We record all AROs for which we have legal obligations for land reclamation at estimated fair value. Essentially all these AROs relate to our underlying land parcels, including both owned properties and mineral leases. For the three and six month periods ended June 30, we recognized ARO operating costs related to accretion of the liabilities and depreciation of the assets as follows:
                                 
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
 
                       
ARO Operating Costs
                               
Accretion
    $2,124       $2,255       $4,296       $4,444  
Depreciation
    1,853       3,157       3,395       6,340  
 
                       
Total
    $3,977       $5,412       $7,691       $10,784  
 
                       
ARO operating costs for our continuing operations are reported in cost of goods sold. AROs are reported within other noncurrent liabilities in our accompanying Condensed Consolidated Balance Sheets.
Reconciliations of the carrying amounts of our AROs are as follows:
                                 
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
 
                       
Asset Retirement Obligations
                               
Balance at beginning of period
    $162,591       $163,931       $162,730       $167,757  
Liabilities incurred
    278       1,441       278       1,441  
Liabilities settled
    (3,632 )     (1,740 )     (5,964 )     (4,117 )
Accretion expense
    2,124       2,255       4,296       4,444  
Revisions up (down)
    (628 )     (3,719 )     (607 )     (7,357 )
 
                       
Balance at end of period
    $160,733       $162,168       $160,733       $162,168  
 
                       
Revisions to our AROs during 2010 related primarily to extensions in the estimated settlement dates at numerous 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 such letters of credit to back our obligations to pay or perform when required to do so according 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.
Our standby letters of credit as of June 30, 2011 are summarized in the table below:
             
 
    June 30  
in thousands   2011  
 
     
Standby Letters of Credit
       
Risk management requirement for insurance claims
    $41,083  
Payment surety required by utilities
    133  
Contractual reclamation/restoration requirements
    8,468  
Financial requirement for industrial revenue bond
    14,230  
 
     
Total
    $63,914  
 
     
Since banks consider standby 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 automatically renewed unless cancelled with the approval of the beneficiary. Of the total $63,914,000 outstanding standby letters of credit as of June 30, 2011, $60,882,000 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 2011, we acquired ten ready-mixed concrete facilities located in Georgia for 432,407 shares of common stock valued at the closing date price of $42.85 per share (total consideration of $18,529,000 net of acquired cash). We issued 368,527 shares to the seller at closing and retained 63,880 shares to fulfill certain working capital adjustments and indemnification obligations.
As a result of this acquisition, we recognized $6,246,000 of amortizable intangible assets, none of which is expected to be deductible for income tax purposes. The amortizable intangible assets consist of contractual rights in place and will be amortized over an estimated weighted-average period of 20 years. The purchase price allocation for this 2011 acquisition is preliminary and subject to adjustment.
We no longer anticipate the sale of an aggregates production facility and a ready-mixed concrete operation located outside the United States within the next twelve months. Thus, these assets no longer meet the criteria for classification as held for sale. The property, plant & equipment was measured at the lower of fair value or carrying amount adjusted to recapture suspended depreciation. This remeasurement had an immaterial earnings impact. This facility was presented in the accompanying Condensed Consolidated Balance Sheets as of December 31, 2010 and June 30, 2010 as assets held for sale and liabilities of assets held for sale. The major classes of assets and liabilities of assets classified as held for sale were as follows:
                 
 
    December 31     June 30  
in thousands   2010     2010  
 
           
Held for Sale
               
Current assets
    $3,460       $3,695  
Property, plant & equipment, net
    9,625       11,016  
Other assets
    122       153  
 
           
Total assets held for sale
    $13,207       $14,864  
 
           
 
Current liabilities
    $116       $409  
 
           
Total liabilities of assets held for sale
    $116       $409  
 
           
During the first quarter of 2010, we sold three aggregates facilities located in rural Virginia for approximately $42,750,000 (total cash consideration).
Goodwill
GOODWILL
NOTE 15: GOODWILL
Changes in the carrying amount of goodwill by reportable segment from December 31, 2010 to June 30, 2011 are summarized below:
 
GOODWILL                              
in thousands   Aggregates     Concrete     Asphalt mix     Cement     Total  
 
                             
 
Gross Carrying Amount
                                       
Total as of December 31, 2010
    $3,005,383       $0       $91,633       $252,664       $3,349,680  
 
                             
Goodwill of acquired businesses
    0       0       0       0       0  
 
                             
Total as of June 30, 2011
    $3,005,383       $0       $91,633       $252,664       $3,349,680  
 
                             
 
Accumulated Impairment Losses
                                       
Total as of December 31, 2010
    $0       $0       $0       ($252,664 )     ($252,664 )
 
                             
Goodwill impairment loss
    0       0       0       0       0  
 
                             
Total as of June 30, 2011
    $0       $0       $0       ($252,664 )     ($252,664 )
 
                             
 
Goodwill, net of Accumulated
Impairment Losses
                                       
Total as of December 31, 2010
    $3,005,383       $0       $91,633       $0       $3,097,016  
 
                             
Total as of June 30, 2011
    $3,005,383       $0       $91,633       $0       $3,097,016  
 
                             
New Accounting Standards
NEW ACCOUNTING STANDARDS
NOTE 16: NEW ACCOUNTING STANDARDS
ACCOUNTING STANDARDS RECENTLY ADOPTED
ENHANCED DISCLOSURES FOR FAIR VALUE MEASUREMENTS As of and for the interim period ended March 31, 2011, we adopted Accounting Standards Update (ASU) No. 2010-6, “Improving Disclosures about Fair Value Measurements” as it relates to separate disclosures about purchases, sales, issuances and settlements applicable to Level 3 measurements. Our adoption of this standard had no impact on our financial position, results of operations or liquidity.
PRESENTATION OF OTHER COMPREHENSIVE INCOME As of and for the interim period ended June 30, 2011 we early adopted ASU No. 2011-05, “Presentation of Comprehensive Income.” This standard eliminates the option to present components of other comprehensive income (OCI) as part of the statement of shareholders’ equity. The amendments in this standard require that all nonowner changes in shareholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Our Condensed Consolidated Statements of Comprehensive Income conform to the presentation requirements of this standard.
ACCOUNTING STANDARD RECENTLY ISSUED
AMENDMENTS TO FAIR VALUE MEASUREMENT REQUIREMENTS In May 2011, the Financial Accounting Standards Board (FASB) issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. The amendments in the ASU achieve the objectives of developing common fair value measurement and disclosure requirements in U.S. GAAP and International Financial Reporting Standards (IFRSs) and improving their understandability. Some of the requirements clarify the FASB’s intent about the application of existing fair value measurement requirements while other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments in this ASU are effective prospectively for interim and annual periods beginning after December 15, 2011, with no early adoption permitted. We will adopt this standard as of and for the interim period ended March 31, 2012. We do not expect the adoption of this standard to have a material impact on our condensed consolidated financial statements.
Segment Reporting
SEGMENT REPORTING
NOTE 17: SEGMENT REPORTING
We have four operating segments organized around our principal product lines: aggregates, concrete, asphalt mix and cement. The vast majority of our activities are domestic. We sell a relatively small amount of products 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  
           
in millions   2011     2010     2011     2010  
 
                       
 
                               
Total Revenues
                               
Aggregates 1
                               
Segment revenues
    $478.4       $513.9       $810.1       $855.2  
Intersegment sales
    (39.5 )     (42.4 )     (69.3 )     (74.5 )
 
                       
Net sales
    438.9       471.5       740.8       780.7  
 
                       
Concrete 2
                               
Segment revenues
    98.2       105.0       180.4       188.0  
Intersegment sales
    0.0       0.0       0.0       0.0  
 
                       
Net sales
    98.2       105.0       180.4       188.0  
 
                       
Asphalt mix
                               
Segment revenues
    110.9       103.5       175.5       166.5  
Intersegment sales
    0.0       0.0       0.0       0.0  
 
                       
Net sales
    110.9       103.5       175.5       166.5  
 
                       
Cement 3
                               
Segment revenues
    16.8       22.9       33.4       40.8  
Intersegment sales
    (7.3 )     (10.1 )     (16.3 )     (18.7 )
 
                       
Net sales
    9.5       12.8       17.1       22.1  
 
                       
Total
                               
Net sales
    657.5       692.8       1,113.8       1,157.3  
Delivery revenues
    44.5       43.4       75.4       72.1  
 
                       
Total revenues
    $702.0       $736.2       $1,189.2       $1,229.4  
 
                       
 
                               
Gross Profit
                               
Aggregates
    $102.8       $122.0       $113.6       $137.4  
Concrete
    (9.0 )     (5.6 )     (23.4 )     (21.7 )
Asphalt mix
    8.3       7.3       8.1       8.3  
Cement
    (1.3 )     (1.4 )     (4.6 )     (0.8 )
 
                       
Total
    $100.8       $122.3       $93.7       $123.2  
 
                       
 
                               
Depreciation, Depletion,
Accretion and Amortization
                               
Aggregates
    $71.1       $74.9       $141.2       $148.1  
Concrete
    13.2       13.4       26.2       26.4  
Asphalt mix
    2.0       2.3       3.9       4.5  
Cement
    4.7       5.2       9.1       9.6  
Corporate and other unallocated
    1.1       1.5       2.3       2.9  
 
                       
Total
    $92.1       $97.3       $182.7       $191.5  
 
                       
1   Includes crushed stone, sand and gravel, sand, other aggregates, as well as transportation and service revenues associated with the aggregates business.
 
2   Includes ready-mixed concrete, concrete block, precast concrete, as well as building materials purchased for resale.
 
3   Includes cement and calcium products.
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:
 
    Six Months Ended  
    June 30  
     
in thousands   2011     2010  
 
           
Cash Payments (Refunds)
               
Interest (exclusive of amount capitalized)
      $102,984       $90,942  
Income taxes
    (33,070 )     1,130  
 
           
Noncash Investing and Financing Activities
               
Accrued liabilities for purchases of property, plant & equipment
    6,414       5,165  
Stock issued for pension contribution (Note 9)
    0       53,864  
Proceeds receivable from issuance of common stock
    0       1,453  
Amounts referable to business acquisition (Note 14)
               
Liabilities assumed
    13,774       0  
Fair value of equity consideration
    18,529       0  
 
           
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES
NOTE 19: 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 material legal proceedings are more specifically described below.
PERCHLOROETHYLENE CASES
We are a defendant in 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 one of a number of defendants in each of these cases and is vigorously defending all of them. 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. Trial is scheduled for September 2012.
 
§   SUFFOLK COUNTY WATER AUTHORITY — On July 29, 2010, we were served in an action styled Suffolk County Water Authority v. The Dow Chemical Company, et al., in the Supreme Court for Suffolk County, State 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 breakdown products “have been and are contaminating and damaging Plaintiff’s drinking water supply wells.” The plaintiff is seeking compensatory and punitive damages. Discovery is ongoing.
§   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. The perc manufacturing defendants, including Vulcan, have filed a motion for summary judgment. The Court has yet to rule on the motion but in the interim has stayed the litigation. As such, there has been no activity on this matter pending the Court’s ruling.
 
§   WEST VIRGINIA COAL SINK LAB LITIGATION — This is a mass tort action consisting of over 100 cases filed in 17 different counties in West Virginia from September 1 to October 13, 2010, for medical monitoring and personal injury damages for exposure to perc used in coal sink labs. The West Virginia Supreme Court of Appeals, in an order entered January 19, 2011, transferred all of these cases (referred to as Jeffrey Blount v. Arkema, Inc., et al.) to the West Virginia Mass Litigation Panel. Discovery is ongoing. Trial is scheduled for September 2012.
 
§   SANTARSIERO — This is a case styled Robert Santarsiero v. R.V. Davies, et al., pending in Supreme Court, New York County, New York. We were brought in as a third-party defendant by original defendant R.V. Davies. We have learned that the plaintiff, who was alleging perc exposure, is now deceased. The case has been stayed pending further information about this development.
 
§   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 have had discussions with Street about the nature and extent of indemnity obligations, if any, and to date there has been no resolution of these issues.
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 Inc., Tarmac America LLC, and VCNA Prestige Ready-Mix Florida, 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 are defending the case vigorously. Discovery in ongoing. Trial is scheduled for July 2012.
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 $40,000,000 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 $20,000,000 in May 2010 and we paid the second installment of $20,000,000 on February 17, 2011. We are taking appropriate actions, including participating in two arbitrations in 2011, to recover the settlement amount in excess of the self-insured retention of $2,000,000, as well as a portion of our defense costs from our insurers. In February 2011, we completed the first arbitration with two of our three insurers. The arbitration panel awarded us a total of $25,546,000 in payment of their share of the settlement amount and attorneys’ fees. This award was recorded as income in the first quarter of 2011. The second arbitration was held in May 2011.
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, along with approximately 300 other third-party defendants. 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. A liability trial is scheduled for April 2013. A separate damages trial, if required, is scheduled for January 2014.
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. 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.
New Accounting Standards (Policies)
ENHANCED DISCLOSURES FOR FAIR VALUE MEASUREMENTS As of and for the interim period ended March 31, 2011, we adopted Accounting Standards Update (ASU) No. 2010-6, “Improving Disclosures about Fair Value Measurements” as it relates to separate disclosures about purchases, sales, issuances and settlements applicable to Level 3 measurements. Our adoption of this standard had no impact on our financial position, results of operations or liquidity.
AMENDMENTS TO FAIR VALUE MEASUREMENT REQUIREMENTS In May 2011, the Financial Accounting Standards Board (FASB) issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. The amendments in the ASU achieve the objectives of developing common fair value measurement and disclosure requirements in U.S. GAAP and International Financial Reporting Standards (IFRSs) and improving their understandability. Some of the requirements clarify the FASB’s intent about the application of existing fair value measurement requirements while other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments in this ASU are effective prospectively for interim and annual periods beginning after December 15, 2011, with no early adoption permitted. We will adopt this standard as of and for the interim period ended March 31, 2012. We do not expect the adoption of this standard to have a material impact on our condensed consolidated financial statements.
PRESENTATION OF OTHER COMPREHENSIVE INCOME As of and for the interim period ended June 30, 2011 we early adopted ASU No. 2011-05, “Presentation of Comprehensive Income.” This standard eliminates the option to present components of other comprehensive income (OCI) as part of the statement of shareholders’ equity. The amendments in this standard require that all nonowner changes in shareholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Our Condensed Consolidated Statements of Comprehensive Income conform to the presentation requirements of this standard.
Basis of Presentation (Tables)
Summary of the effects of the correction of errors on the Condensed Consolidated Balance Sheet
                         
 
    As of June 30, 2010  
    As             As  
in thousands   Reported     Correction     Restated  
 
Balance Sheet
                       
Assets
                       
Current deferred income taxes
    $59,525       ($1,950 )     $57,575  
Prepaid expenses
    42,422       (8,450 )     33,972  
 
Total current assets
    867,303       (10,400 )     856,903  
Goodwill
    3,093,979       2,321       3,096,300  
 
Total assets
    $8,495,044       ($8,079 )     $8,486,965  
 
Liabilities
                       
Noncurrent deferred income taxes
    $836,702       $6,706       $843,408  
 
Total liabilities
    4,450,940       6,706       4,457,646  
 
Equity
                       
Retained earnings
    1,625,620       (14,785 )     1,610,835  
 
Total equity
    4,044,104       (14,785 )     4,029,319  
 
Total liabilities and equity
    $8,495,044       ($8,079 )     $8,486,965  
 
Discontinued Operations (Tables)
Results from discontinued operations
                                 
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
 
Discontinued Operations
                               
Pretax earnings (loss) from results
    ($1,719 )     ($1,821 )     $3,587       ($860 )
Gain on disposal, net of transaction bonus
    0       (2 )     11,056       7,912  
Income tax (provision) benefit
    682       346       (5,791 )     (2,802 )
 
                       
Earnings (loss) on discontinued operations,
net of tax
    ($1,037 )     ($1,477 )     $8,852       $4,250  
 
                       
Earnings Per Share (EPS) (Tables)
                                 
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
 
Weighted-average common shares
outstanding
    129,446       128,168       129,263       127,452  
Dilutive effect of
                               
Stock options/SOSARs
    0       0       0       0  
Other stock compensation plans
    0       0       0       0  
 
                       
Weighted-average common shares
outstanding, assuming dilution
    129,446       128,168       129,263       127,452  
 
                       
                                 
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
 
Antidilutive common stock equivalents
    5,873       4,067       5,873       4,254  
 
                       
Derivative Instruments (Tables)
                                 
 
                       
            Fair Value1  
            June 30     December 31     June 30  
in thousands   Balance Sheet Location   2011     2010     2010  
 
                       
Liabilities
                               
Interest rate swaps
  Other current liabilities     $0       $0       $5,614  
Interest rate swaps
  Other noncurrent liabilities     7,419       0       0  
 
                       
Total hedging instrument liabilities
            $7,419       $0       $5,614  
 
                       
   1   See Note 7 for further discussion of the fair value determination.
                                         
 
                             
            Three Months Ended     Six Months Ended  
    Location on     June 30     June 30  
in thousands   Statements     2011     2010     2011     2010  
 
                             
Cash Flow Hedges
                                       
Gain (loss) recognized in OCI
(effective portion)
  OCI       $0       $234       $0       ($574 )
 
                                       
Gain (loss) reclassified from
                                       
Accumulated OCI
  Interest                                  
(effective portion)
  expense       (6,678 )     (4,997 )     (8,672 )     (9,895)  
 
                             
                                         
 
                             
            Three Months Ended     Six Months Ended  
    Location on     June 30     June 30  
in thousands   Statements     2011     2010     2011     2010  
 
                             
Fair Value Hedges
                                       
Gain (loss) recognized in income
  Interest                                
- Interest rate swaps
  expense     ($7,419 )     $0       ($7,419 )     $0  
 
                                   
Gain (loss) recognized in income
  Interest                                
- Fixed rate debt
  expense     7,419       0       7,419       0  
 
                             
Fair Value Measurements (Tables)
                         
 
                 
            Level 1        
    June 30     December 31     June 30  
in thousands   2011     2010     2010  
 
                 
Fair Value Recurring
                       
Rabbi Trust
                       
Mutual funds
    $14,836       $13,960       $10,787  
Equities
    8,413       9,336       7,236  
 
                 
Total asset
    $23,249       $23,296       $18,023  
 
                 
                         
 
                       
    Level 2
    June 30   December 31     June 30  
in thousands   2011     2010     2010  
 
                       
Fair Value Recurring
                       
Medium-term investments
    $0       $0       $3,910  
Interest rate swaps
    (7,419 )     0       (5,614 )
Rabbi Trust
                       
Common/collective trust funds
    1,368       2,431       3,185  
 
                       
Net asset (liability)
    ($6,051 )     $2,431       $1,481  
 
                       
                 
 
               
    As of December 31, 2010  
            Impairment  
in thousands   Level 3     Charges  
 
Fair Value Nonrecurring
               
Property, plant & equipment
    $1,536       $2,500  
Assets held for sale
    9,625       1,436  
 
Totals
    $11,161       $3,936  
 
Other Comprehensive Income (OCI) (Tables)
                                 
 
                       
    June 30     December 31     June 30        
in thousands   2011     2010     2010          
Accumulated Other Comprehensive Loss
                               
Cash flow hedges
    ($33,685 )     ($39,137 )     ($44,187 )        
Pension and postretirement plans
    (134,044 )     (138,202 )     (143,271 )        
 
                       
Total
    ($167,729 )     ($177,339 )     ($187,458 )        
 
                       
                                 
 
                       
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
Reclassification Adjustment for Cash Flow
Hedges
                               
Interest expense, net
    $6,658       $4,977       $8,632       $9,855  
Benefit from income taxes
    ($2,655 )     ($2,332 )     ($3,179 )     ($4,357 )
 
                       
Total
    $4,003       $2,645       $5,453       $5,498  
 
                       
Amortization of Pension and Postretirement
Plan Actuarial Loss and Prior Service Cost
                               
Cost of goods sold
    $2,454       $1,273       $4,697       $2,376  
Selling, administrative and general expense
    761       422       1,545       810  
Benefit from income taxes
    (1,274 )     (872 )     (2,084 )     (1,464 )
 
                       
Total
    $1,941       $823       $4,158       $1,722  
 
                       
Total reclassifications from OCI to net loss
    $5,944       $3,468       $9,611       $7,220  
 
                       
Benefit Plans (Tables)
Components of net periodic benefit cost
                                 
 
                       
PENSION BENEFITS   Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
Components of Net Periodic Benefit Cost
                               
Service cost
    $5,191       $4,800       $10,381       $9,608  
Interest cost
    10,650       10,406       21,192       20,811  
Expected return on plan assets
    (12,370 )     (12,526 )     (24,740 )     (25,061 )
Amortization of prior service cost
    85       115       170       230  
Amortization of actuarial loss
    3,011       1,540       5,835       2,876  
 
                       
Net periodic pension benefit cost
    $6,567       $4,335       $12,838       $8,464  
 
                       
Pretax reclassification from OCI included in net periodic pension benefit cost
    $3,096       $1,655       $6,005       $3,106  
 
                       
                                 
 
                       
OTHER POSTRETIREMENT BENEFITS   Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
Components of Net Periodic Benefit Cost
                               
Service cost
    $1,198       $1,067       $2,395       $2,133  
Interest cost
    1,612       1,662       3,225       3,325  
Amortization of prior service credit
    (168 )     (182 )     (337 )     (364 )
Amortization of actuarial loss
    287       222       574       444  
 
                       
Net periodic postretirement benefit cost
    $2,929       $2,769       $5,857       $5,538  
 
                       
Pretax reclassification from OCI included in net periodic postretirement benefit cost
    $119       $40       $237       $80  
 
                       
Credit Facilities, Short-term Borrowings and Long-term Debt (Tables)
                         
 
                 
    June 30     December 31     June 30  
dollars in thousands   2011     2010     2010  
Short-term Borrowings
                       
Bank borrowings
    $100,000       $285,500       $0  
Commercial paper
    0       0       320,000  
 
                 
Total
    $100,000       $285,500       $320,000  
 
                 
Bank Borrowings
                       
Maturity
  15 days     3 - 74 days       n/a  
Weighted-average interest rate
    0.53 %       0.59 %       n/a  
 
                       
Commercial Paper
                       
Maturity
    n/a       n/a     1 - 2 days  
Weighted-average interest rate
    n/a       n/a       0.70%  
 
                 
                         
 
    June 30     December 31     June 30  
in thousands   2011     2010     2010  
 
                 
Long-term Debt
                       
6.50% 5.5-year notes issued 20111
      $500,000       $0       $0  
7.50% 10-year notes issued 20112
    600,000       0       0  
5-year floating-rate term loan issued 2010
    0       450,000       0  
10.125% 7-year notes issued 20093
    149,628       149,597       149,567  
10.375% 10-year notes issued 20094
    248,457       248,391       248,329  
3-year floating-rate term loan issued 2008
    0       0       100,000  
6.30% 5-year notes issued 20085
    140,322       249,729       249,680  
7.00% 10-year notes issued 20086
    399,675       399,658       399,641  
3-year floating-rate notes issued 2007
    0       0       325,000  
5.60% 5-year notes issued 20077
    134,483       299,773       299,719  
6.40% 10-year notes issued 20078
    349,861       349,852       349,844  
7.15% 30-year notes issued 20079
    239,717       249,324       249,321  
Private placement notes
    0       0       15,181  
Medium-term notes
    21,000       21,000       21,000  
Industrial revenue bonds
    14,000       14,000       17,550  
Other notes
    1,349       1,438       1,648  
Fair value adjustments 10
    (7,419 )     0       0  
 
                 
Total debt excluding short-term borrowings
    $2,791,073       $2,432,762       $2,426,480  
 
                 
Less current maturities of long-term debt
    5,230       5,246       425,300  
 
                 
Total long-term debt
    $2,785,843       $2,427,516       $2,001,180  
 
                 
         
Estimated fair value of total long-term debt
    $2,857,684       $2,559,059       $2,240,447  
 
                 
 
1   The effective interest rate for these notes is 6.85% , excluding the impact of the interest rate swap described in Note 6.
 
2   The effective interest rate for these notes is 7.73% .
 
3   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $372 thousand, December 31, 2010 — $403 thousand and June 30, 2010 — $433 thousand. The effective interest rate for these notes is 10.31% , excluding the impact of the interest rate swap described in Note 6.
 
4   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $1,543 thousand, December 31, 2010 — $1,609 thousand and June 30, 2010 — $1,671 thousand. The effective interest rate for these notes is 10.58%.
 
5   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $122 thousand, December 31, 2010 — $271 thousand and June 30, 2010 — $320 thousand. The effective interest rate for these notes is 7.46%.
 
6   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $325 thousand, December 31, 2010 — $342 thousand and June 30, 2010 — $359 thousand. The effective interest rate for these notes is 7.86%.
 
7   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $74 thousand, December 31, 2010 — $227 thousand and June 30, 2010 — $281 thousand. The effective interest rate for these notes is 6.55%.
 
8   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $139 thousand, December 31, 2010 — $148 thousand and June 30, 2010 — $156 thousand. The effective interest rate for these notes is 7.39%.
 
9   Includes decreases for unamortized discounts, as follows: June 30, 2011 — $646 thousand, December 31, 2010 — $676 thousand and June 30, 2010 — $679 thousand. The effective interest rate for these notes is 8.04%.
 
10   See Note 6 for additional information about our fair value hedging strategy.
Asset Retirement Obligations (Tables)
                                 
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
 
                       
ARO Operating Costs
                               
Accretion
    $2,124       $2,255       $4,296       $4,444  
Depreciation
    1,853       3,157       3,395       6,340  
 
                       
Total
    $3,977       $5,412       $7,691       $10,784  
 
                       
                                 
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
in thousands   2011     2010     2011     2010  
 
                       
Asset Retirement Obligations
                               
Balance at beginning of period
    $162,591       $163,931       $162,730       $167,757  
Liabilities incurred
    278       1,441       278       1,441  
Liabilities settled
    (3,632 )     (1,740 )     (5,964 )     (4,117 )
Accretion expense
    2,124       2,255       4,296       4,444  
Revisions up (down)
    (628 )     (3,719 )     (607 )     (7,357 )
 
                       
Balance at end of period
    $160,733       $162,168       $160,733       $162,168  
 
                       
Standby Letters of Credit (Tables)
Standby Letters of Credit
             
 
    June 30  
in thousands   2011  
 
     
Standby Letters of Credit
       
Risk management requirement for insurance claims
    $41,083  
Payment surety required by utilities
    133  
Contractual reclamation/restoration requirements
    8,468  
Financial requirement for industrial revenue bond
    14,230  
 
     
Total
    $63,914  
 
     
Acquisitions and Divestitures (Tables)
Classification of assets and liabilities held for sale
                 
 
    December 31     June 30  
in thousands   2010     2010  
 
           
Held for Sale
               
Current assets
    $3,460       $3,695  
Property, plant & equipment, net
    9,625       11,016  
Other assets
    122       153  
 
           
Total assets held for sale
    $13,207       $14,864  
 
           
 
Current liabilities
    $116       $409  
 
           
Total liabilities of assets held for sale
    $116       $409  
 
           
Goodwill (Tables)
Changes in the carrying amount of goodwill by reportable segment
 
GOODWILL                              
in thousands   Aggregates     Concrete     Asphalt mix     Cement     Total  
 
                             
 
Gross Carrying Amount
                                       
Total as of December 31, 2010
    $3,005,383       $0       $91,633       $252,664       $3,349,680  
 
                             
Goodwill of acquired businesses
    0       0       0       0       0  
 
                             
Total as of June 30, 2011
    $3,005,383       $0       $91,633       $252,664       $3,349,680  
 
                             
 
Accumulated Impairment Losses
                                       
Total as of December 31, 2010
    $0       $0       $0       ($252,664 )     ($252,664 )
 
                             
Goodwill impairment loss
    0       0       0       0       0  
 
                             
Total as of June 30, 2011
    $0       $0       $0       ($252,664 )     ($252,664 )
 
                             
 
Goodwill, net of Accumulated
Impairment Losses
                                       
Total as of December 31, 2010
    $3,005,383       $0       $91,633       $0       $3,097,016  
 
                             
Total as of June 30, 2011
    $3,005,383       $0       $91,633       $0       $3,097,016  
 
                             
Segment Reporting (Tables)
Segment Financial Disclosure
SEGMENT FINANCIAL DISCLOSURE
 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
           
in millions   2011     2010     2011     2010  
 
                       
 
                               
Total Revenues
                               
Aggregates 1
                               
Segment revenues
    $478.4       $513.9       $810.1       $855.2  
Intersegment sales
    (39.5 )     (42.4 )     (69.3 )     (74.5 )
 
                       
Net sales
    438.9       471.5       740.8       780.7  
 
                       
Concrete 2
                               
Segment revenues
    98.2       105.0       180.4       188.0  
Intersegment sales
    0.0       0.0       0.0       0.0  
 
                       
Net sales
    98.2       105.0       180.4       188.0  
 
                       
Asphalt mix
                               
Segment revenues
    110.9       103.5       175.5       166.5  
Intersegment sales
    0.0       0.0       0.0       0.0  
 
                       
Net sales
    110.9       103.5       175.5       166.5  
 
                       
Cement 3
                               
Segment revenues
    16.8       22.9       33.4       40.8  
Intersegment sales
    (7.3 )     (10.1 )     (16.3 )     (18.7 )
 
                       
Net sales
    9.5       12.8       17.1       22.1  
 
                       
Total
                               
Net sales
    657.5       692.8       1,113.8       1,157.3  
Delivery revenues
    44.5       43.4       75.4       72.1  
 
                       
Total revenues
    $702.0       $736.2       $1,189.2       $1,229.4  
 
                       
 
                               
Gross Profit
                               
Aggregates
    $102.8       $122.0       $113.6       $137.4  
Concrete
    (9.0 )     (5.6 )     (23.4 )     (21.7 )
Asphalt mix
    8.3       7.3       8.1       8.3  
Cement
    (1.3 )     (1.4 )     (4.6 )     (0.8 )
 
                       
Total
    $100.8       $122.3       $93.7       $123.2  
 
                       
 
                               
Depreciation, Depletion,
Accretion and Amortization
                               
Aggregates
    $71.1       $74.9       $141.2       $148.1  
Concrete
    13.2       13.4       26.2       26.4  
Asphalt mix
    2.0       2.3       3.9       4.5  
Cement
    4.7       5.2       9.1       9.6  
Corporate and other unallocated
    1.1       1.5       2.3       2.9  
 
                       
Total
    $92.1       $97.3       $182.7       $191.5  
 
                       
1   Includes crushed stone, sand and gravel, sand, other aggregates, as well as transportation and service revenues associated with the aggregates business.
 
2   Includes ready-mixed concrete, concrete block, precast concrete, as well as building materials purchased for resale.
 
3   Includes cement and calcium products.
Supplemental Cash Flow Information (Tables)
Supplemental Cash Flow Information
 
    Six Months Ended  
    June 30  
     
in thousands   2011     2010  
 
           
Cash Payments (Refunds)
               
Interest (exclusive of amount capitalized)
      $102,984       $90,942  
Income taxes
    (33,070 )     1,130  
 
           
Noncash Investing and Financing Activities
               
Accrued liabilities for purchases of property, plant & equipment
    6,414       5,165  
Stock issued for pension contribution (Note 9)
    0       53,864  
Proceeds receivable from issuance of common stock
    0       1,453  
Amounts referable to business acquisition (Note 14)
               
Liabilities assumed
    13,774       0  
Fair value of equity consideration
    18,529       0  
 
           
Basis of Presentation (Details) (USD $)
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Jun. 30, 2010
As Reported [Member]
Jun. 30, 2010
Correction [Member]
Dec. 31, 2008
Correction [Member]
Dec. 31, 2007
Correction [Member]
Assets
 
 
 
 
 
 
 
Current deferred income taxes
$ 44,794,000 
$ 53,794,000 
$ 57,575,000 1
$ 59,525,000 
$ (1,950,000)
 
 
Prepaid expenses
21,659,000 
19,374,000 
33,972,000 1
42,422,000 
(8,450,000)
 
 
Total current assets
892,353,000 
772,106,000 
856,903,000 1
867,303,000 
(10,400,000)
 
 
Goodwill
3,097,016,000 
3,097,016,000 
3,096,300,000 1
3,093,979,000 
2,321,000 
2,321,000 
 
Total assets
8,385,610,000 
8,337,891,000 
8,486,965,000 1
8,495,044,000 
(8,079,000)
 
 
Liabilities
 
 
 
 
 
 
 
Noncurrent deferred income taxes
762,406,000 
849,448,000 
843,408,000 1
836,702,000 
6,706,000 
 
(14,785,000)
Total liabilities
4,504,345,000 
4,372,911,000 
4,457,646,000 1
4,450,940,000 
6,706,000 
 
 
Equity
 
 
 
 
 
 
 
Retained earnings
1,385,208,000 
1,512,863,000 
1,610,835,000 1
1,625,620,000 
(14,785,000)
 
14,785,000 
Total shareholders' equity
 
 
4,029,319,000 
4,044,104,000 
(14,785,000)
 
 
Total liabilities and equity
$ 8,385,610,000 
$ 8,337,891,000 
$ 8,486,965,000 1
$ 8,495,044,000 
$ (8,079,000)
 
 
Basis of Presentation (Details Textual) (USD $)
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Jun. 30, 2010
Correction [Member]
Dec. 31, 2008
Correction [Member]
Dec. 31, 2007
Correction [Member]
Basis of Presentation (Textuals)
 
 
 
 
 
 
Decrease to deferred income tax liabilities
 
 
 
 
$ (6,129,000)
 
Goodwill
3,097,016,000 
3,097,016,000 
3,096,300,000 1
2,321,000 
2,321,000 
 
Increase in current taxes payable
 
 
 
 
8,450,000 
 
Deferred income tax liabilities
762,406,000 
849,448,000 
843,408,000 1
6,706,000 
 
(14,785,000)
Retained earnings
$ 1,385,208,000 
$ 1,512,863,000 
$ 1,610,835,000 1
$ (14,785,000)
 
$ 14,785,000 
Discontinued Operations (Details) (USD $)
6 Months Ended
Jun. 30,
3 Months Ended
Jun. 30, 2011
3 Months Ended
Mar. 31, 2011
3 Months Ended
Jun. 30, 2010
3 Months Ended
Mar. 31, 2010
2011
2010
12 Months Ended
Dec. 31, 2007
Discontinued Operations
 
 
 
 
 
 
 
Pretax earnings (loss) from results
$ (1,719,000)
 
$ (1,821,000)
 
$ 3,587,000 
$ (860,000)
 
Gain on disposal, net of transaction bonus
 
(2,000)
 
11,056,000 
7,912,000 
 
Income tax (provision) benefit
682,000 
 
346,000 
 
(5,791,000)
(2,802,000)
 
Earnings (loss) on discontinued operations, net of tax
(1,037,000)
 
(1,477,000)
 
8,852,000 
4,250,000 
 
Discontinued Operations (Textuals)
 
 
 
 
 
 
 
Cumulative cash receipts received under ECU earn-out
 
 
 
 
 
 
150,000,000 
Payments received under 5CP earn-out
 
12,284,000 
 
8,794,000 
 
 
 
Total payments received under the 5CP earn-out
 
 
 
 
54,991,000 
 
 
Excess cash received under 5CP earn-out
 
 
 
 
21,890,000 
 
 
Cash transaction bonus payable
 
 
 
 
1,228,000 
882,000 
 
Pretax earnings (loss) from results
(1,719,000)
 
(1,821,000)
 
3,587,000 
(860,000)
 
Pretax gains from discontinued operations related to insurance settlements
 
$ 7,500,000 
 
 
 
 
 
Earnings Per Share (EPS) (Details)
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Weighted-average common shares outstanding
 
 
 
 
Weighted-average common shares outstanding
129,446,000 
128,168,000 
129,263,000 
127,452,000 
Dilutive effect of
 
 
 
 
Stock options/SOSARs
Other stock compensation plans
Weighted-average common shares outstanding, assuming dilution
129,446,000 
128,168,000 
129,263,000 
127,452,000 
Antidilutive common stock equivalents
 
 
 
 
Antidilutive common stock equivalents
5,873,000 
4,067,000 
5,873,000 
4,254,000 
Earnings Per Share (EPS) (Textuals)
 
 
 
 
Shares excluded from diluted weighted-average common shares outstanding computation due to operating losses
291,000 
513,000 
324,000 
533,000 
Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Income Taxes (Textuals)
 
 
 
 
Accounting Standards Codification Topic 740 - Income Taxes recognition threshold for uncertain tax positions
 
 
50.00% 
50.00% 
Provision (benefit) for income taxes from continuing operations
$ 40,341 
$ 21,231 
$ 77,771 
$ 55,444 
Medium-Term Investments (Details) (USD $)
1 Months Ended
Jan. 31, 2011
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Medium-Term Investments (Textuals)
 
 
 
 
Medium-term investments principal balance
 
$ 0 
$ 5,531,000 
$ 5,532,000 
Medium term investment reclassified to cash equivalents
 
 
3,630,000 
 
Medium-term investments
 
3,910,000 1
Redemption of medium-term investments
$ 3,630,000 
 
 
 
Derivative Instruments (Details) (Designated as Hedging Instrument [Member], USD $)
In Thousands
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Liabilities
 
 
 
Total hedging instrument liabilities
$ 7,419 
$ 0 
$ 5,614 
Other current liabilities [Member] |
Interest rate swaps [Member]
 
 
 
Liabilities
 
 
 
Interest rate swaps
5,614 
Other noncurrent liabilities [Member] |
Interest rate swaps [Member]
 
 
 
Liabilities
 
 
 
Interest rate swaps
$ 7,419 
$ 0 
$ 0 
Derivative Instruments (Details 1) (USD $)
In Thousands
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Interest rate swaps [Member] |
Interest Expense [Member] |
Cash Flow Hedge [Member]
 
 
 
 
Effects of cash flow and fair value hedge derivative instruments on the accompanying Condensed Consolidated Statements of Comprehensive Income
 
 
 
 
Gain (loss) reclassified from Accumulated OCI (effective portion)
$ (6,678)
$ (4,997)
$ (8,672)
$ (9,895)
Interest rate swaps [Member] |
Interest Expense [Member] |
Fair Value Hedge [Member]
 
 
 
 
Effects of cash flow and fair value hedge derivative instruments on the accompanying Condensed Consolidated Statements of Comprehensive Income
 
 
 
 
Gain (loss) recognized in income
(7,419)
(7,419)
Interest rate swaps [Member] |
Cash Flow Hedge [Member]
 
 
 
 
Effects of cash flow and fair value hedge derivative instruments on the accompanying Condensed Consolidated Statements of Comprehensive Income
 
 
 
 
Gain (loss) recognized in OCI (effective portion)
234 
(574)
Fixed rate debt [Member] |
Interest Expense [Member] |
Fair Value Hedge [Member]
 
 
 
 
Effects of cash flow and fair value hedge derivative instruments on the accompanying Condensed Consolidated Statements of Comprehensive Income
 
 
 
 
Gain (loss) recognized in income
$ 7,419 
$ 0 
$ 7,419 
$ 0 
Derivative Instruments (Details Textual) (USD $)
6 Months Ended
Jun. 30,
12 Months Ended
Dec. 31, 2007
37 Months Ended
Dec. 15, 2010
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2011
6.50% 5.5-year notes issued 2011 [Member]
Jun. 30, 2011
10.125% 7-year notes issued 2009 [Member]
Dec. 31, 2010
10.125% 7-year notes issued 2009 [Member]
Jun. 30, 2010
10.125% 7-year notes issued 2009 [Member]
2011
Interest Rate Swap Agreement 1 [Member]
2011
Interest Rate Swap Agreement 2 [Member]
Derivative Instruments (Textuals)
 
 
 
 
 
 
 
 
 
 
Coupon rate of notes
 
 
 
 
6.50% 
10.125% 
10.125% 
10.125% 
 
 
Derivative Instruments (Textuals)
 
 
 
 
 
 
 
 
 
 
Notional amount of interest rate swap agreement
$ 325,000,000 
 
 
 
 
 
 
 
$ 500,000,000 
$ 150,000,000 
Fixed interest rate under swap agreement
5.25% 
 
 
 
 
 
 
 
6.50% 
10.125% 
Maturity period of notes (in years)
3 years 
 
 
7 years 
5 years 6 months 
7 years 
7 years 
7 years 
 
 
Interest rate spread above London Interbank Offered Rate (LIBOR)
 
1.25% 
 
 
 
 
 
 
4.05% 
8.03% 
Variable rate basis
 
3-month LIBOR 
 
 
 
 
 
 
6-month LIBOR 
6-month LIBOR 
Aggregate notional amount of swaps
325,000,000 
 
 
500,000,000 
 
 
 
 
 
 
Length of interest rate swap agreement (In years)
3 years 
 
 
 
 
 
 
 
 
 
Number of forward starting interest rate swap agreements
15 
 
 
 
 
 
 
 
 
 
Notional amount for forward starting interest rate swap agreements
1,500,000,000 
 
 
 
 
 
 
 
 
 
Cash payment for settlement of forward starting interest rate swap
89,777,000 
 
 
 
 
 
 
 
 
 
Estimated amount of pretax loss accumulated in Other Comprehensive Income related to interest rate swap that would be reclassified to earnings
 
 
$ 6,247,000 
 
 
 
 
 
 
 
Fair Value Measurements (Details) (Recurring [Member], USD $)
In Thousands
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Level 1 [Member]
 
 
 
Fair value assets
 
 
 
Mutual funds
$ 14,836 
$ 13,960 
$ 10,787 
Equities
8,413 
9,336 
7,236 
Total asset
23,249 
23,296 
18,023 
Level 2 [Member]
 
 
 
Fair value assets
 
 
 
Medium-term investments
3,910 
Common/collective trust funds
1,368 
2,431 
3,185 
Total asset
 
2,431 
1,481 
Fair value liabilities
 
 
 
Interest rate swaps
(7,419)
(5,614)
Net liability
$ (6,051)
 
 
Fair Value Measurements (Details 1) (USD $)
In Thousands
12 Months Ended
Dec. 31, 2010
Fair value assets
 
Impairment charges - Totals
$ 3,936 
Nonrecurring [Member]
 
Fair value assets
 
Impairment charges - Property, plant & equipment
2,500 
Impairment charges - Assets held for sale
1,436 
Impairment charges - Totals
3,936 
Nonrecurring [Member] |
Level 3 [Member]
 
Fair value assets
 
Property, plant & equipment
1,536 
Assets held for sale
9,625 
Totals
$ 11,161 
Fair Value Measurements (Details Textual) (USD $)
In Thousands
12 Months Ended
Dec. 31, 2010
Fair Value Measurements (Textuals)
 
Loss on impairment of long-lived assets
$ 3,936 
Other Comprehensive Income (OCI) (Details) (USD $)
In Thousands
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Accumulated Other Comprehensive Loss
 
 
 
Cash flow hedges
$ (33,685)
$ (39,137)
$ (44,187)
Pension and postretirement plans
(134,044)
(138,202)
(143,271)
Accumulated other comprehensive loss
$ (167,729)
$ (177,339)
$ (187,458)1
Other Comprehensive Income (OCI) (Details 1) (USD $)
In Thousands
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Reclassification Adjustment for Cash Flow Hedges
 
 
 
 
Interest expense, net
$ 6,658 
$ 4,977 
$ 8,632 
$ 9,855 
Benefit from income taxes
(2,655)
(2,332)
(3,179)
(4,357)
Total
4,003 
2,645 
5,453 
5,498 
Amortization of Pension and Postretirement Plan Actuarial Loss and Prior Service Cost
 
 
 
 
Cost of goods sold
2,454 
1,273 
4,697 
2,376 
Selling, administrative and general expense
761 
422 
1,545 
810 
Benefit from income taxes
(1,274)
(872)
(2,084)
(1,464)
Total
1,941 
823 
4,158 
1,722 
Total reclassifications from OCI to net loss
$ 5,944 
$ 3,468 
$ 9,611 
$ 7,220 
Shareholders' Equity (Details) (USD $)
6 Months Ended
Jun. 30,
1 Months Ended
Feb. 28, 2011
1 Months Ended
Mar. 31, 2010
2011
2010
Dec. 31, 2010
Shareholders' Equity (Textuals)
 
 
 
 
 
Number of common shares issued to pension plan
 
1,190,000 
 
 
 
Common stock, par value
 
$ 1 
$ 1 
$ 1 1
$ 1 
Increase in shareholders' equity from issuance of common shares to pension plan
 
$ 53,864,000 
 
 
 
Value of common shares issued to pension plan
 
1,190,000 
 
 
 
Increase in capital in excess of par from issuance of common shares to pension plan
 
52,674,000 
 
 
 
Common stock issued in connection with business acquisitions
372,992 
 
 
 
 
Net of acquired cash, shares
368,527 
 
 
 
 
Shares of common stock issued to trustee under 401(k) savings and retirement plan
 
 
110,881 
768,735 
 
Net proceeds from issuance of common stock to the trustee under 401(k) savings and retirement plan
 
 
4,745,000 
35,314,000 
 
Receivable from issuance of common stock to trustee under 401(k) savings and retirement plan
 
 
 
$ 1,453,000 
 
Number of shares held in treasury
 
 
Shares remaining under the current authorization repurchase program
 
 
3,411,416 
 
 
Benefit Plans (Details) (USD $)
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
1 Months Ended
Apr. 30, 2011
1 Months Ended
Jul. 31, 2010
1 Months Ended
Mar. 31, 2010
12 Months Ended
Dec. 31, 2010
2011
Pension Benefits [Member]
2010
Pension Benefits [Member]
2011
Pension Benefits [Member]
2010
Pension Benefits [Member]
2011
Other Postretirement Benefits [Member]
2010
Other Postretirement Benefits [Member]
2011
Other Postretirement Benefits [Member]
2010
Other Postretirement Benefits [Member]
12 Months Ended
Dec. 31, 2008
Investment at Westridge Capital Management [Member]
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
 
 
 
$ 5,191,000 
$ 4,800,000 
$ 10,381,000 
$ 9,608,000 
$ 1,198,000 
$ 1,067,000 
$ 2,395,000 
$ 2,133,000 
 
Interest cost
 
 
 
 
10,650,000 
10,406,000 
21,192,000 
20,811,000 
1,612,000 
1,662,000 
3,225,000 
3,325,000 
 
Expected return on plan assets
 
 
 
 
(12,370,000)
(12,526,000)
(24,740,000)
(25,061,000)
 
 
 
 
 
Amortization of prior service cost
 
 
 
 
85,000 
115,000 
170,000 
230,000 
(168,000)
(182,000)
(337,000)
(364,000)
 
Amortization of actuarial loss
 
 
 
 
3,011,000 
1,540,000 
5,835,000 
2,876,000 
287,000 
222,000 
574,000 
444,000 
 
Net periodic pension benefit cost
 
 
 
 
6,567,000 
4,335,000 
12,838,000 
8,464,000 
2,929,000 
2,769,000 
5,857,000 
5,538,000 
 
Pretax reclassification from OCI included in net periodic benefit cost
 
 
 
 
3,096,000 
1,655,000 
6,005,000 
3,106,000 
119,000 
40,000 
237,000 
80,000 
 
Benefit Plans (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of pension plan assets
 
 
 
 
 
 
 
 
 
 
 
 
59,245,000 
Write-down in estimated fair value of assets
 
 
 
 
 
 
 
 
 
 
 
 
48,018,000 
Total contributions (cash and stock) to qualified pension plans
 
 
72,500,000 
 
 
 
 
 
 
 
 
 
 
Contributions to pension plans in cash
 
 
18,636,000 
 
 
 
 
 
 
 
 
 
 
Contributions to pension plans in stock
 
 
53,864,000 
 
 
 
 
 
 
 
 
 
 
Number of shares contributed to pension plans
 
 
1,190,000 
 
 
 
 
 
 
 
 
 
 
Value per share of shares contributed to pension plans
 
 
$ 45.26 
 
 
 
 
 
 
 
 
 
 
Additional contribution to pension plan
 
1,300,000 
 
 
 
 
 
 
 
 
 
 
 
Partial distribution amount released by court-appointed receiver
 
 
 
6,555,000 
 
 
 
 
 
 
 
 
 
Insurance settlement amount received by the Master Pension Trust related to the WCM loss
 
 
 
15,000,000 
 
 
 
 
 
 
 
 
 
Additional distribution amount released by court-appointed receiver
$ 22,041,000 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
6 Months Ended
Jun. 30, 2011
Bank Borrowings [Member]
12 Months Ended
Dec. 31, 2010
Bank Borrowings [Member]
6 Months Ended
Jun. 30, 2010
Commercial Paper [Member]
Short-term Borrowings
 
 
 
 
 
 
Bank borrowings
$ 100,000 
$ 285,500 
$ 0 
 
 
 
Commercial paper
320,000 
 
 
 
Total
$ 100,000 
$ 285,500 
$ 320,000 1
 
 
 
Maturity
 
 
 
15 days 
3 - 74 days 
1 - 2 days 
Weighted-average interest rate
 
 
 
0.53% 
0.59% 
0.70% 
Credit Facilities, Short-term Borrowings and Long-term Debt (Details 1) (USD $)
In Thousands
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
$ 2,791,073 
$ 2,432,762 
$ 2,426,480 
Less current maturities of long-term debt
5,230 
5,246 
425,300 1
Total long-term debt
2,785,843 
2,427,516 
2,001,180 1
Estimated fair value of total long-term debt
2,857,684 
2,559,059 
2,240,447 
6.50% 5.5-year notes issued 2011 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
500,000 
7.50% 10-year notes issued 2011 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
600,000 
5-year floating-rate term loan issued 2010 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
450,000 
10.125% 7-year notes issued 2009 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
149,628 
149,597 
149,567 
10.375% 10-year notes issued 2009 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
248,457 
248,391 
248,329 
3-year floating-rate term loan issued 2008 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
100,000 
7.00% 10-year notes issued 2008 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
399,675 
399,658 
399,641 
3-year floating-rate notes issued 2007 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
325,000 
5.60% 5-year notes issued 2007 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
134,483 
299,773 
299,719 
6.40% 10-year notes issued 2007 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
349,861 
349,852 
349,844 
7.15% 30-year notes issued 2007 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
239,717 
249,324 
249,321 
Private placement notes [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
15,181 
Medium-term notes [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
21,000 
21,000 
21,000 
Industrial revenue bonds [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
14,000 
14,000 
17,550 
Other notes [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
1,349 
1,438 
1,648 
Fair value adjustments [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
(7,419)
6.30% 5-year notes issued 2008 [Member]
 
 
 
Long-term Debt
 
 
 
Total debt excluding short-term borrowings
$ 140,322 
$ 249,729 
$ 249,680 
Credit Facilities, Short-term Borrowings and Long-term Debt (Details Textual) (USD $)
1 Months Ended
Jun. 30, 2011
3 Months Ended
Jun. 30, 2011
6 Months Ended
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Dec. 31, 2007
Jun. 30, 2011
6.50% 5.5-year notes issued 2011 [Member]
Jun. 30, 2011
7.50% 10-year notes issued 2011 [Member]
Jun. 30, 2011
5-year floating-rate term loan issued 2010 [Member]
Jul. 7, 2010
5-year floating-rate term loan issued 2010 [Member]
Jun. 30, 2010
5-year floating-rate term loan issued 2010 [Member]
Jun. 30, 2011
10.125% 7-year notes issued 2009 [Member]
Dec. 31, 2010
10.125% 7-year notes issued 2009 [Member]
Jun. 30, 2010
10.125% 7-year notes issued 2009 [Member]
Jun. 30, 2011
10.375% 10-year notes issued 2009 [Member]
Dec. 31, 2010
10.375% 10-year notes issued 2009 [Member]
Jun. 30, 2010
10.375% 10-year notes issued 2009 [Member]
1 Months Ended
Jul. 31, 2010
3-year floating-rate term loan issued 2008 [Member]
Jun. 30, 2011
3-year floating-rate term loan issued 2008 [Member]
Dec. 31, 2010
3-year floating-rate term loan issued 2008 [Member]
Jul. 7, 2010
3-year floating-rate term loan issued 2008 [Member]
Jun. 30, 2010
3-year floating-rate term loan issued 2008 [Member]
Jun. 30, 2011
7.00% 10-year notes issued 2008 [Member]
Dec. 31, 2010
7.00% 10-year notes issued 2008 [Member]
Jun. 30, 2010
7.00% 10-year notes issued 2008 [Member]
Jun. 30, 2011
3-year floating-rate notes issued 2007 [Member]
Dec. 31, 2010
3-year floating-rate notes issued 2007 [Member]
Jun. 30, 2010
3-year floating-rate notes issued 2007 [Member]
3 Months Ended
Jun. 30, 2011
5.60% 5-year notes issued 2007 [Member]
Dec. 31, 2010
5.60% 5-year notes issued 2007 [Member]
Jun. 30, 2010
5.60% 5-year notes issued 2007 [Member]
6 Months Ended
Jun. 30, 2011
5.60% 5-year notes issued 2007 [Member]
6.30% 5-year notes issued 2008 [Member]
Jun. 30, 2011
6.40% 10-year notes issued 2007 [Member]
Dec. 31, 2010
6.40% 10-year notes issued 2007 [Member]
Jun. 30, 2010
6.40% 10-year notes issued 2007 [Member]
Jun. 30, 2011
7.15% 30-year notes issued 2007 [Member]
Dec. 31, 2010
7.15% 30-year notes issued 2007 [Member]
Jun. 30, 2010
7.15% 30-year notes issued 2007 [Member]
3 Months Ended
Jun. 30, 2011
6.30% 5-year notes issued 2008 [Member]
Dec. 31, 2010
6.30% 5-year notes issued 2008 [Member]
Jun. 30, 2010
6.30% 5-year notes issued 2008 [Member]
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Decrease in unamortized discounts
 
 
 
 
 
 
 
 
 
 
 
$ 372,000 
$ 403,000 
$ 433,000 
$ 1,543,000 
$ 1,609,000 
$ 1,671,000 
 
 
 
 
 
$ 325,000 
$ 342,000 
$ 359,000 
 
 
 
$ 74,000 
$ 227,000 
$ 281,000 
 
$ 139,000 
$ 148,000 
$ 156,000 
$ 646,000 
$ 676,000 
$ 679,000 
$ 122,000 
$ 271,000 
$ 320,000 
Effective interest rate
 
 
 
 
 
 
6.85% 
7.73% 
 
 
 
10.31% 
10.31% 
10.31% 
10.58% 
10.58% 
10.58% 
 
 
 
 
 
7.86% 
7.86% 
7.86% 
 
 
 
6.55% 
6.55% 
6.55% 
 
7.39% 
7.39% 
7.39% 
8.04% 
8.04% 
8.04% 
7.46% 
7.46% 
7.46% 
Coupon rate of notes
 
 
 
 
 
 
6.50% 
7.50% 
 
 
 
10.125% 
10.125% 
10.125% 
10.375% 
10.375% 
10.375% 
 
 
 
 
 
7.00% 
7.00% 
7.00% 
 
 
 
5.60% 
5.60% 
5.60% 
 
6.40% 
6.40% 
6.40% 
7.15% 
7.15% 
7.15% 
6.30% 
6.30% 
6.30% 
Maturity period of notes (in years)
7 years 
7 years 
7 years 
 
 
3 years 
5 years 6 months 
10 years 
5 years 
5 years 
5 years 
7 years 
7 years 
7 years 
10 years 
10 years 
10 years 
 
3 years 
3 years 
3 years 
3 years 
10 years 
10 years 
10 years 
3 years 
3 years 
3 years 
5 years 
5 years 
5 years 
 
10 years 
10 years 
10 years 
30 years 
30 years 
30 years 
5 years 
5 years 
5 years 
Long-term notes face amount
1,100,000,000 
1,100,000,000 
1,100,000,000 
 
 
 
500,000,000 
600,000,000 
 
450,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
274,999,000 
 
 
 
 
 
 
 
 
 
Purchase of long term notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
165,443,000 
 
 
 
 
 
 
 
 
 
109,556,000 
 
 
Total consideration paid for debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
294,533,000 
 
 
 
 
 
 
 
 
 
Premium paid for purchase of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19,534,000 
 
 
 
 
 
 
 
 
 
Amount of outstanding balance of loan repaid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium paid for purchase of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19,534,000 
 
 
 
 
 
 
 
 
 
Amount of outstanding balance of loan repaid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding amount under revolving credit facility repaid
275,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recognition of unamortized deferred financing costs
 
 
2,423,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses related to partial termination of debt
4,711,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Combined expense
 
$ 24,245,000 
$ 24,245,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum total debt as a percentage of total capital
65.00% 
65.00% 
65.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt as a percentage of total capital
42.70% 
42.70% 
42.70% 
40.70% 
40.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Details Textual 2) (USD $)
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals)
 
 
 
Total bank loans
$ 100,000,000 
$ 285,500,000 
$ 0 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals)
 
 
 
Total unsecured bank lines of credit
1,500,000,000 
 
 
Secured long-term debt, including current maturities
40,000 
 
 
Bank Loan Borrowed For 15 Days [Member]
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals)
 
 
 
Total bank loans
100,000,000 
 
 
Interest rate of bank loan
0.53% 
 
 
Line Of Credit Expiring November 16 2012 [Member]
 
 
 
Credit Facilities, Short-term Borrowings and Long-term Debt (Textuals)
 
 
 
Total unsecured bank lines of credit
$ 1,500,000,000 
 
 
Asset Retirement Obligations (Details) (USD $)
In Thousands
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
ARO Operating Costs
 
 
 
 
Accretion
$ 2,124 
$ 2,255 
$ 4,296 
$ 4,444 
Depreciation
1,853 
3,157 
3,395 
6,340 
Total
3,977 
5,412 
7,691 
10,784 
Asset Retirement Obligations
 
 
 
 
Balance at beginning of period
162,591 
163,931 
162,730 
167,757 
Liabilities incurred
278 
1,441 
278 
1,441 
Liabilities settled
(3,632)
1,740 
(5,964)
4,117 
Accretion expense
2,124 
2,255 
4,296 
4,444 
Revisions up (down)
(628)
(3,719)
(607)
(7,357)
Balance at end of period
$ 160,733 
$ 162,168 
$ 160,733 
$ 162,168 
Standby Letters of Credit (Details) (USD $)
Jun. 30, 2011
Standby Letters of Credit
 
Risk management requirement for insurance claims
$ 41,083,000 
Payment surety required by utilities
133,000 
Contractual reclamation/restoration requirements
8,468,000 
Financial requirement for industrial revenue bond
14,230,000 
Total
63,914,000 
Standby Letters of Credit (Textuals)
 
Total outstanding standby letters of credit
63,914,000 
Amount backed by bank credit facility
60,882,000 
Amount of bank credit facility
$ 1,500,000,000 
Acquisitions and Divestitures (Details) (USD $)
3 Months Ended
Mar. 31,
2011
2010
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Held for Sale
 
 
 
 
 
Current assets
 
 
 
$ 3,460,000 
$ 3,695,000 
Property, plant & equipment, net
 
 
 
9,625,000 
11,016,000 
Other assets
 
 
 
122,000 
153,000 
Total assets held for sale
 
 
13,207,000 
14,864,000 1
Current liabilities
 
 
116,000 
409,000 1
Liabilities of assets held for sale
 
 
116,000 
409,000 1
Acquisitions and Divestitures (Textuals)
 
 
 
 
 
Number of ready-mixed concrete facilities acquired
10 
 
 
 
 
Total consideration net of cash acquired
18,529,000 
 
18,529,000 
 
Number of shares of common stock valued at the closing date
432,407 
 
 
 
 
Closing date price
$ 42.85 
 
 
 
 
Number of shares issued to seller
368,527 
 
 
 
 
Number of shares retained to fulfill certain working capital adjustments and indemnification obligations
63,880 
 
 
 
 
Amortizable intangible assets recognized
6,246,000 
 
 
 
 
Estimated weighted-average period intangible assets are to be amortized
20 
 
 
 
 
Number of aggregates facilities sold
 
 
 
 
Cash proceeds from divestiture
 
$ 42,750,000 
 
 
 
Goodwill (Details) (USD $)
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Changes in the carrying amount of goodwill by reportable segment
 
 
Goodwill, gross carrying amount, beginning balance
$ 3,349,680,000 
 
Goodwill of acquired businesses
 
Goodwill, gross carrying amount, ending balance
3,349,680,000 
 
Goodwill, accumulated impairment losses, beginning balance
(252,664,000)
 
Goodwill impairment losses
 
Goodwill, accumulated impairment losses, ending balance
(252,664,000)
 
Goodwill, net of accumulated impairment losses, beginning balance
3,097,016,000 
3,096,300,000 1
Goodwill, net of accumulated impairment losses, ending balance
3,097,016,000 
3,096,300,000 1
Aggregates [Member]
 
 
Changes in the carrying amount of goodwill by reportable segment
 
 
Goodwill, gross carrying amount, beginning balance
3,005,383,000 
 
Goodwill of acquired businesses
 
Goodwill, gross carrying amount, ending balance
3,005,383,000 
 
Goodwill, accumulated impairment losses, beginning balance
 
Goodwill impairment losses
 
Goodwill, accumulated impairment losses, ending balance
 
Goodwill, net of accumulated impairment losses, beginning balance
3,005,383,000 
 
Goodwill, net of accumulated impairment losses, ending balance
3,005,383,000 
 
Concrete [Member]
 
 
Changes in the carrying amount of goodwill by reportable segment
 
 
Goodwill, gross carrying amount, beginning balance
 
Goodwill of acquired businesses
 
Goodwill, gross carrying amount, ending balance
 
Goodwill, accumulated impairment losses, beginning balance
 
Goodwill impairment losses
 
Goodwill, accumulated impairment losses, ending balance
 
Goodwill, net of accumulated impairment losses, beginning balance
 
Goodwill, net of accumulated impairment losses, ending balance
 
Asphalt mix [Member]
 
 
Changes in the carrying amount of goodwill by reportable segment
 
 
Goodwill, gross carrying amount, beginning balance
91,633,000 
 
Goodwill of acquired businesses
 
Goodwill, gross carrying amount, ending balance
91,633,000 
 
Goodwill, accumulated impairment losses, beginning balance
 
Goodwill impairment losses
 
Goodwill, accumulated impairment losses, ending balance
 
Goodwill, net of accumulated impairment losses, beginning balance
91,633,000 
 
Goodwill, net of accumulated impairment losses, ending balance
91,633,000 
 
Cement [Member]
 
 
Changes in the carrying amount of goodwill by reportable segment
 
 
Goodwill, gross carrying amount, beginning balance
252,664,000 
 
Goodwill of acquired businesses
 
Goodwill, gross carrying amount, ending balance
252,664,000 
 
Goodwill, accumulated impairment losses, beginning balance
(252,664,000)
 
Goodwill impairment losses
 
Goodwill, accumulated impairment losses, ending balance
(252,664,000)
 
Goodwill, net of accumulated impairment losses, beginning balance
 
Goodwill, net of accumulated impairment losses, ending balance
$ 0 
 
Segment Reporting (Details) (USD $)
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Total Revenues
 
 
 
 
Net sales
$ 657,457,000 
$ 692,758,000 
$ 1,113,773,000 
$ 1,157,293,000 
Delivery revenues
44,514,000 
43,394,000 
75,398,000 
72,122,000 
Total revenues
701,971,000 
736,152,000 
1,189,171,000 
1,229,415,000 
Gross Profit
 
 
 
 
Gross profit
100,840,000 
122,335,000 
93,734,000 
123,230,000 
Depreciation, Depletion, Accretion and Amortization
 
 
 
 
Depreciation, depletion, accretion and amortization
92,137,000 
97,280,000 
182,723,000 
191,476,000 
Segment Reporting (Textuals)
 
 
 
 
Number of operating segments
 
 
Aggregates [Member]
 
 
 
 
Total Revenues
 
 
 
 
Segment revenues
478,400,000 
513,900,000 
810,100,000 
855,200,000 
Intersegment sales
(39,500,000)
(42,400,000)
(69,300,000)
(74,500,000)
Net sales
438,900,000 
471,500,000 
740,800,000 
780,700,000 
Gross Profit
 
 
 
 
Gross profit
102,800,000 
122,000,000 
113,600,000 
137,400,000 
Depreciation, Depletion, Accretion and Amortization
 
 
 
 
Depreciation, depletion, accretion and amortization
71,100,000 
74,900,000 
141,200,000 
148,100,000 
Concrete [Member]
 
 
 
 
Total Revenues
 
 
 
 
Segment revenues
98,200,000 
105,000,000 
180,400,000 
188,000,000 
Intersegment sales
Net sales
98,200,000 
105,000,000 
180,400,000 
188,000,000 
Gross Profit
 
 
 
 
Gross profit
(9,000,000)
(5,600,000)
(23,400,000)
(21,700,000)
Depreciation, Depletion, Accretion and Amortization
 
 
 
 
Depreciation, depletion, accretion and amortization
13,200,000 
13,400,000 
26,200,000 
26,400,000 
Asphalt mix [Member]
 
 
 
 
Total Revenues
 
 
 
 
Segment revenues
110,900,000 
103,500,000 
175,500,000 
166,500,000 
Intersegment sales
Net sales
110,900,000 
103,500,000 
175,500,000 
166,500,000 
Gross Profit
 
 
 
 
Gross profit
8,300,000 
7,300,000 
8,100,000 
8,300,000 
Depreciation, Depletion, Accretion and Amortization
 
 
 
 
Depreciation, depletion, accretion and amortization
2,000,000 
2,300,000 
3,900,000 
4,500,000 
Cement [Member]
 
 
 
 
Total Revenues
 
 
 
 
Segment revenues
16,800,000 
22,900,000 
33,400,000 
40,800,000 
Intersegment sales
(7,300,000)
(10,100,000)
(16,300,000)
(18,700,000)
Net sales
9,500,000 
12,800,000 
17,100,000 
22,100,000 
Gross Profit
 
 
 
 
Gross profit
(1,300,000)
(1,400,000)
(4,600,000)
(800,000)
Depreciation, Depletion, Accretion and Amortization
 
 
 
 
Depreciation, depletion, accretion and amortization
4,700,000 
5,200,000 
9,100,000 
9,600,000 
Corporate and other unallocated [Member]
 
 
 
 
Depreciation, Depletion, Accretion and Amortization
 
 
 
 
Depreciation, depletion, accretion and amortization
$ 1,100,000 
$ 1,500,000 
$ 2,300,000 
$ 2,900,000 
Supplemental Cash Flow Information (Details) (USD $)
6 Months Ended
Jun. 30,
2011
2010
Mar. 31, 2011
Cash Payments (Refunds)
 
 
 
Interest (exclusive of amount capitalized)
$ 102,984,000 
$ 90,942,000 
 
Income taxes
(33,070,000)
1,130,000 
 
Noncash Investing and Financing Activities
 
 
 
Accrued liabilities for purchases of property, plant & equipment
6,414,000 
5,165,000 
 
Stock issued for pension contribution (Note 9)
53,864,000 
 
Proceeds receivable from issuance of common stock
1,453,000 
 
Amounts referable to business acquisition (Note 14)
 
 
 
Liabilities assumed
13,774,000 
 
Fair value of equity consideration
$ 18,529,000 
$ 0 
$ 18,529,000 
Commitments and Contingencies (Details) (USD $)
1 Months Ended
Feb. 28, 2011
1 Months Ended
Oct. 13, 2010
1 Months Ended
May 31, 2007
6 Months Ended
Jun. 30, 2011
Feb. 17, 2011
May 18, 2010
Commitments and Contingencies (Textuals)
 
 
 
 
 
 
Number of cases in mass tort action
 
over 100 
 
 
 
 
Number of counties that cases were filed in the mass tort action
 
17 
 
 
 
 
Claims against damages, IDOT/Joliet Road lawsuit
 
 
 
 
 
$ 40,000,000 
Payment to Illinois Department of Transportation (IDOT)
 
 
 
 
20,000,000 
20,000,000 
Complaints in Florida Antitrust Litigation
 
 
 
 
 
Self-insured retention amount
 
 
 
 
2,000,000 
 
Number of arbitrations
 
 
 
 
 
Settlement awarded
$ 25,546,000 
 
 
 
 
 
Number of other parties sued in the Lower Passaic River Clean-Up
 
 
 
300 
 
 
Number of other companies to perform a Remedial Investigation/Feasibility Study related to the Lower Passaic River Clean-Up lawsuit
 
 
70