What changed in EAGLE MATERIALS INC's 10-K — 2023 vs 2024
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Paragraph-level year-over-year comparison of EAGLE MATERIALS INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.
+148 added−147 removedSource: 10-K (2024-05-22) vs 10-K (2023-05-19)
Top changes in EAGLE MATERIALS INC's 2024 10-K
148 paragraphs added · 147 removed · 120 edited across 1 sections
- Item 7A. Quantitative and Qualitative Disclosures About Market Risk+148 / −147 · 120 edited
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
120 edited+28 added−27 removed72 unchanged
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
120 edited+28 added−27 removed72 unchanged
2023 filing
2024 filing
Biggest changeFinancial Statements and Supplementary Data Financial Information Index to Financial Statements and Related Information PAGE Eagle Materials Inc.: Consolidated Statements of Earnings for the Years Ended March 31, 2023, 2022, and 20 21 62 Consolidated Statements of Comprehensive Earnings for the Years Ended March 31, 2023, 2022, and 2021 63 Consolidated Balance Sheets as of March 31, 2023 and 2022 64 Consolidated Statements of Cash Flows for the Years Ended March 31, 2023, 2022, and 2021 65 Consolidated Statements of Stockholders’ Equity for the Years Ended March 31, 2023, 2022, and 20 21 66 Notes to Consolidated Financial Statements 67 Report of Independent Registered Public Accounting Firm 96 Auditor Name: Ernst & Young LLP Auditor Location: Dallas, Texas Auditor Firm ID: 42 61 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Earnings For the Years Ended March 31, 2023 2022 2021 (dollars in thousands, except share and per share data) Revenue $ 2,148,069 $ 1,861,522 $ 1,622,642 Cost of Goods Sold 1,508,803 1,341,908 1,214,287 Gross Profit 639,266 519,614 408,355 Equity in Earnings of Unconsolidated Joint Venture 35,474 32,488 37,441 Corporate General and Administrative Expense ( 53,630 ) ( 46,801 ) ( 49,511 ) Loss on Early Retirement of Senior Notes — ( 8,407 ) — Gain on Sale of Businesses — — 51,973 Other Nonoperating Income 2,654 9,073 20,274 Interest Expense, net ( 35,171 ) ( 30,873 ) ( 44,420 ) Earnings from Continuing Operations Before Income Taxes 588,593 475,094 424,112 Income Taxes ( 127,053 ) ( 100,847 ) ( 89,946 ) Earnings from Continuing Operations 461,540 374,247 334,166 Earnings from Discontinued Operations, net of Income Taxes — — 5,278 Net Earnings $ 461,540 $ 374,247 $ 339,444 BASIC EARNINGS PER SHARE Continuing Operations $ 12.54 $ 9.23 $ 8.04 Discontinued Operations — — 0.13 Net Earnings $ 12.54 $ 9.23 $ 8.17 DILUTED EARNINGS PER SHARE Continuing Operations $ 12.46 $ 9.14 $ 7.99 Discontinued Operations — — 0.13 Net Earnings $ 12.46 $ 9.14 $ 8.12 AVERAGE SHARES OUTSTANDING Basic 36,798,354 40,547,048 41,543,067 Diluted 37,052,942 40,929,712 41,826,709 CASH DIVIDENDS PER SHARE $ 1.00 $ 0.75 $ 0.10 See Notes to Consolidated Financial Statements. 62 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Comprehensive Earnings For the Years Ended March 31, 2023 2022 2021 (dollars in thousands) Net Earnings $ 461,540 $ 374,247 $ 339,444 Net Actuarial Change in Defined Benefit Plans: Unrealized (Loss) Gain During the Period, net of tax (benefit) expense of $( 147 ), $ 48 , and $ 33 ( 465 ) 161 101 Amortization of Net Actuarial Gain (Loss), net of tax (expense) benefit of $ 30 , $ 39 , and $( 49 ) 93 104 ( 154 ) Comprehensive Earnings $ 461,168 $ 374,512 $ 339,391 See Notes to Consolidated Financial Statements. 63 Eagle Materials Inc. and Subsidiaries C onsolidated Balance Sheets March 31, 2023 2022 (dollars in thousands) ASSETS Current Assets Cash and Cash Equivalents $ 15,242 $ 19,416 Accounts and Notes Receivable, net 195,052 176,276 Inventories 291,882 236,661 Income Tax Receivable 16,267 7,202 Prepaid and Other Assets 3,060 3,172 Total Current Assets 521,503 442,727 Property, Plant, and Equipment, net 1,662,061 1,616,539 Notes Receivable 7,382 8,485 Investment in Joint Venture 89,111 80,637 Operating Lease Right-of-Use Assets 20,759 23,856 Goodwill and Intangible Assets, net 466,043 387,898 Other Assets 14,143 19,510 Total Assets $ 2,781,002 $ 2,579,652 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts Payable $ 110,408 $ 113,679 Accrued Liabilities 86,472 86,754 Operating Lease Liabilities 6,009 7,118 Current Portion of Long-term Debt 10,000 — Total Current Liabilities 212,889 207,551 Long-term Debt 1,079,032 938,265 Noncurrent Operating Lease Liabilities 24,940 29,212 Other Long-term Liabilities 41,603 38,699 Deferred Income Taxes 236,844 232,369 Total Liabilities 1,595,308 1,446,096 Stockholders’ Equity Preferred Stock, Par Value $ 0.01 ; Authorized 5,000,000 Shares; None Issued — — Common Stock, Par Value $ 0.01 ; Authorized 100,000,000 Shares; Issued and Outstanding 35,768,376 and 38,710,929 Shares, respectively 358 387 Capital in Excess of Par Value — — Accumulated Other Comprehensive Losses ( 3,547 ) ( 3,175 ) Retained Earnings 1,188,883 1,136,344 Total Stockholders’ Equity 1,185,694 1,133,556 $ 2,781,002 $ 2,579,652 See Notes to Consolidated Financial Statements. 64 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Cash Flows For the Years Ended March 31, 2023 2022 2021 (dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net Earnings $ 461,540 $ 374,247 $ 339,444 Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities, Net of Effect of Noncash Activity: Depreciation, Depletion, and Amortization 138,554 128,811 129,087 Write-off of Debt Issuance Costs — 6,101 — Deferred Income Tax Provision 4,475 6,383 59,319 Stock Compensation Expense 17,155 14,264 15,293 Gain on Sale of Businesses — — ( 61,203 ) Equity in Earnings of Unconsolidated Joint Venture ( 35,474 ) ( 32,488 ) ( 37,441 ) Distributions from Joint Venture 27,000 27,250 36,000 Changes in Operating Assets and Liabilities: Accounts and Notes Receivable ( 12,035 ) ( 29,209 ) 2,127 Inventories ( 47,946 ) ( 912 ) 30,002 Accounts Payable and Accrued Liabilities ( 7,797 ) 27,192 9,541 Other Assets 4,955 ( 1,331 ) ( 6,455 ) Income Taxes Receivable ( 8,701 ) ( 3,137 ) 127,359 Net Cash Provided by Operating Activities 541,726 517,171 643,073 CASH FLOWS FROM INVESTING ACTIVITIES Additions to Property, Plant, and Equipment ( 110,143 ) ( 74,121 ) ( 53,933 ) Acquisition Spending ( 158,451 ) — — Proceeds from Sale of Businesses — — 91,022 Net Cash Provided by (Used in) Investing Activities ( 268,594 ) ( 74,121 ) 37,089 CASH FLOWS FROM FINANCING ACTIVITIES Borrowings Under Revolving Credit Facility 200,000 200,000 — Repayment of Borrowings Under Revolving Credit Facility ( 43,000 ) — ( 560,000 ) Proceeds from 2.500% Senior Unsecured Notes — 743,692 — Repayment of 4.500% Senior Unsecured Notes — ( 350,000 ) — Repayment of Term Loan ( 7,500 ) ( 665,000 ) — Dividends Paid to Stockholders ( 37,496 ) ( 30,770 ) ( 4,163 ) Purchase and Retirement of Common Stock ( 387,717 ) ( 589,742 ) — Proceeds from Stock Option Exercises 5,418 21,366 40,455 Premium Paid on Early Retirement of Senior Notes — ( 8,407 ) — Payment of Debt Issuance Costs ( 903 ) ( 7,985 ) ( 2,396 ) Shares Redeemed to Settle Employee Taxes on Stock Compensation ( 6,108 ) ( 5,308 ) ( 4,186 ) Net Cash Used in Financing Activities ( 277,306 ) ( 692,154 ) ( 530,290 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ( 4,174 ) ( 249,104 ) 149,872 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 19,416 268,520 118,648 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 15,242 $ 19,416 $ 268,520 See Notes to Consolidated Financial Statements. 65 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Stockholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Losses Total (dollars in thousands) Balance at March 31, 2020 $ 416 $ 10,943 $ 960,065 $ ( 3,581 ) $ 967,843 Net Earnings — — 339,444 — 339,444 Stock Option Exercises and Restricted Share Vesting 8 40,449 — — 40,457 Stock Compensation Expense — 15,291 — — 15,291 Shares Redeemed to Settle Employee Taxes — ( 4,186 ) — — ( 4,186 ) Sale of Business with Unfunded Pension Liability — — — 254 254 Unfunded Pension Liability, net of tax — — — ( 113 ) ( 113 ) Balance at March 31, 2021 $ 424 $ 62,497 $ 1,299,509 $ ( 3,440 ) $ 1,358,990 Net Earnings — — 374,247 — 374,247 Stock Option Exercises and Restricted Share Vesting 3 21,363 — — 21,366 Stock Compensation Expense — 14,264 — — 14,264 Shares Redeemed to Settle Employee Taxes — ( 5,308 ) — — ( 5,308 ) Purchase and Retirement of Common Stock ( 40 ) ( 92,816 ) ( 496,886 ) — ( 589,742 ) Dividends to Stockholders — — ( 40,526 ) — ( 40,526 ) Unfunded Pension Liability, net of tax — — — 265 265 Balance at March 31, 2022 $ 387 $ — $ 1,136,344 $ ( 3,175 ) $ 1,133,556 Net Earnings — — 461,540 — 461,540 Stock Option Exercises and Restricted Share Vesting 2 5,416 — — 5,418 Stock Compensation Expense — 17,155 — — 17,155 Shares Redeemed to Settle Employee Taxes — ( 6,108 ) — — ( 6,108 ) Purchase and Retirement of Common Stock ( 31 ) ( 16,463 ) ( 371,961 ) — ( 388,455 ) Dividends to Stockholders — — ( 37,040 ) — ( 37,040 ) Unfunded Pension Liability, net of tax — — — ( 372 ) ( 372 ) Balance at March 31, 2023 $ 358 $ — $ 1,188,883 $ ( 3,547 ) $ 1,185,694 See Notes to Consolidated Financial Statements. 66 Eagle Materials Inc. and Subsidiaries N ot es to Consolidated Financial Statements (A) Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Eagle Materials Inc. and its majority-owned subsidiaries (the Company), which may be referred to as we, our, or us.
Biggest changeFinancial Statements and Supplementary Data Financial Information Index to Financial Statements and Related Information PAGE Eagle Materials Inc.: Consolidated Statements of Earnings for the Years Ended March 31, 2024, 2023, and 20 22 65 Consolidated Statements of Comprehensive Earnings for the Years Ended March 31, 2024, 2023, and 2022 66 Consolidated Balance Sheets as of March 31, 2024 and 2023 67 Consolidated Statements of Cash Flows for the Years Ended March 31, 2024, 2023, and 2022 68 Consolidated Statements of Stockholders’ Equity for the Years Ended March 31, 2024, 2023, and 20 22 69 Notes to Consolidated Financial Statements 70 Report of Independent Registered Public Accounting Firm 97 Auditor Name: Ernst & Young LLP Auditor Location: Dallas, Texas Auditor Firm ID: 42 64 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Earnings For the Years Ended March 31, 2024 2023 2022 (dollars in thousands, except share and per share data) Revenue $ 2,259,297 $ 2,148,069 $ 1,861,522 Cost of Goods Sold 1,573,976 1,508,803 1,341,908 Gross Profit 685,321 639,266 519,614 Equity in Earnings of Unconsolidated Joint Venture 31,581 35,474 32,488 Corporate General and Administrative Expense ( 59,795 ) ( 53,630 ) ( 46,801 ) Loss on Early Retirement of Senior Notes — — ( 8,407 ) Other Nonoperating Income 3,087 2,654 9,073 Interest Expense, net ( 42,257 ) ( 35,171 ) ( 30,873 ) Earnings Before Income Taxes 617,937 588,593 475,094 Income Taxes ( 140,298 ) ( 127,053 ) ( 100,847 ) Net Earnings $ 477,639 $ 461,540 $ 374,247 EARNINGS PER SHARE Basic $ 13.72 $ 12.54 $ 9.23 Diluted 13.61 12.46 9.14 AVERAGE SHARES OUTSTANDING Basic 34,811,560 36,798,354 40,547,048 Diluted 35,097,871 37,052,942 40,929,712 CASH DIVIDENDS PER SHARE $ 1.00 $ 1.00 $ 0.75 See Notes to Consolidated Financial Statements. 65 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Comprehensive Earnings For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Net Earnings $ 477,639 $ 461,540 $ 374,247 Net Actuarial Change in Defined Benefit Plans: Unrealized (Loss) Gain During the Period, net of tax (benefit) expense of $( 24 ), $( 147 ), and $ 48 ( 53 ) ( 465 ) 161 Amortization of Net Actuarial Gain (Loss), net of tax (expense) benefit of $ 59 , $ 30 , and $ 39 192 93 104 Comprehensive Earnings $ 477,778 $ 461,168 $ 374,512 See Notes to Consolidated Financial Statements. 66 Eagle Materials Inc. and Subsidiaries C onsolidated Balance Sheets March 31, 2024 2023 (dollars in thousands) ASSETS Current Assets Cash and Cash Equivalents $ 34,925 $ 15,242 Accounts and Notes Receivable, net 202,985 195,052 Inventories 373,923 291,882 Income Tax Receivable 9,910 16,267 Prepaid and Other Assets 5,950 3,060 Total Current Assets 627,693 521,503 Property, Plant, and Equipment, net 1,676,217 1,662,061 Notes Receivable — 7,382 Investment in Joint Venture 113,478 89,111 Operating Lease Right-of-Use Assets 19,373 20,759 Goodwill and Intangible Assets, net 486,117 466,043 Other Assets 24,141 14,143 Total Assets $ 2,947,019 $ 2,781,002 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts Payable $ 127,183 $ 110,408 Accrued Liabilities 94,327 86,472 Operating Lease Liabilities 7,899 6,009 Current Portion of Long-term Debt 10,000 10,000 Total Current Liabilities 239,409 212,889 Long-term Debt 1,083,299 1,079,032 Noncurrent Operating Lease Liabilities 19,037 24,940 Other Long-term Liabilities 51,942 41,603 Deferred Income Taxes 244,797 236,844 Total Liabilities 1,638,484 1,595,308 Stockholders’ Equity Preferred Stock, Par Value $ 0.01 ; Authorized 5,000,000 Shares; None Issued — — Common Stock, Par Value $ 0.01 ; Authorized 100,000,000 Shares; Issued and Outstanding 34,143,945 and 35,768,376 Shares, respectively 341 358 Capital in Excess of Par Value — — Accumulated Other Comprehensive Losses ( 3,373 ) ( 3,547 ) Retained Earnings 1,311,567 1,188,883 Total Stockholders’ Equity 1,308,535 1,185,694 $ 2,947,019 $ 2,781,002 See Notes to Consolidated Financial Statements. 67 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Cash Flows For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net Earnings $ 477,639 $ 461,540 $ 374,247 Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities, Net of Effect of Noncash Activity: Depreciation, Depletion, and Amortization 149,832 138,554 128,811 Write-off of Debt Issuance Costs — — 6,101 Deferred Income Tax Provision 7,953 4,475 6,383 Stock Compensation Expense 19,900 17,155 14,264 Equity in Earnings of Unconsolidated Joint Venture ( 31,581 ) ( 35,474 ) ( 32,488 ) Distributions from Joint Venture 7,000 27,000 27,250 Changes in Operating Assets and Liabilities: Accounts and Notes Receivable ( 551 ) ( 12,035 ) ( 29,209 ) Inventories ( 67,232 ) ( 47,946 ) ( 912 ) Accounts Payable and Accrued Liabilities 13,794 ( 7,797 ) 27,192 Other Assets ( 20,468 ) 4,955 ( 1,331 ) Income Taxes Receivable 7,652 ( 8,701 ) ( 3,137 ) Net Cash Provided by Operating Activities 563,938 541,726 517,171 CASH FLOWS FROM INVESTING ACTIVITIES Additions to Property, Plant, and Equipment ( 120,305 ) ( 110,143 ) ( 74,121 ) Acquisition Spending ( 55,053 ) ( 158,451 ) — Proceeds from Sale of Businesses — — — Net Cash Provided by (Used in) Investing Activities ( 175,358 ) ( 268,594 ) ( 74,121 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings Under Revolving Credit Facility 13,000 200,000 200,000 Repayment of Borrowings Under Revolving Credit Facility — ( 43,000 ) — Proceeds from 2.500% Senior Unsecured Notes — — 743,692 Repayment of 4.500% Senior Unsecured Notes — — ( 350,000 ) Repayment of Term Loan ( 10,000 ) ( 7,500 ) ( 665,000 ) Dividends Paid to Stockholders ( 35,298 ) ( 37,496 ) ( 30,770 ) Purchase and Retirement of Common Stock ( 343,274 ) ( 387,717 ) ( 589,742 ) Proceeds from Stock Option Exercises 17,098 5,418 21,366 Premium Paid on Early Retirement of Senior Notes — — ( 8,407 ) Payment of Debt Issuance Costs — ( 903 ) ( 7,985 ) Shares Redeemed to Settle Employee Taxes on Stock Compensation ( 10,423 ) ( 6,108 ) ( 5,308 ) Net Cash Used in Financing Activities ( 368,897 ) ( 277,306 ) ( 692,154 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 19,683 ( 4,174 ) ( 249,104 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 15,242 19,416 268,520 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 34,925 $ 15,242 $ 19,416 See Notes to Consolidated Financial Statements. 68 Eagle Materials Inc. and Subsidiaries C onsolidated Statements of Stockholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Losses Total (dollars in thousands) Balance at March 31, 2021 $ 424 $ 62,497 $ 1,299,509 $ ( 3,440 ) $ 1,358,990 Net Earnings — — 374,247 — 374,247 Stock Option Exercises and Restricted Share Vesting 3 21,363 — — 21,366 Stock Compensation Expense — 14,264 — — 14,264 Shares Redeemed to Settle Employee Taxes — ( 5,308 ) — — ( 5,308 ) Purchase and Retirement of Common Stock ( 40 ) ( 92,816 ) ( 496,886 ) — ( 589,742 ) Dividends to Stockholders — — ( 40,526 ) — ( 40,526 ) Unfunded Pension Liability, net of tax — — — 265 265 Balance at March 31, 2022 $ 387 $ — $ 1,136,344 $ ( 3,175 ) $ 1,133,556 Net Earnings — — 461,540 — 461,540 Stock Option Exercises and Restricted Share Vesting 2 5,416 — — 5,418 Stock Compensation Expense — 17,155 — — 17,155 Shares Redeemed to Settle Employee Taxes — ( 6,108 ) — — ( 6,108 ) Purchase and Retirement of Common Stock ( 31 ) ( 16,463 ) ( 371,961 ) — ( 388,455 ) Dividends to Stockholders — — ( 37,040 ) — ( 37,040 ) Unfunded Pension Liability, net of tax — — — ( 372 ) ( 372 ) Balance at March 31, 2023 $ 358 $ — $ 1,188,883 $ ( 3,547 ) $ 1,185,694 Net Earnings — — 477,639 — 477,639 Stock Option Exercises and Restricted Share Vesting 2 17,096 — — 17,098 Stock Compensation Expense — 19,900 — — 19,900 Shares Redeemed to Settle Employee Taxes ( 1 ) ( 10,422 ) — — ( 10,423 ) Purchase and Retirement of Common Stock ( 18 ) ( 26,574 ) ( 320,114 ) — ( 346,706 ) Dividends to Stockholders — — ( 34,841 ) — ( 34,841 ) Unfunded Pension Liability, net of tax — — — 174 174 Balance at March 31, 2024 $ 341 $ — $ 1,311,567 $ ( 3,373 ) $ 1,308,535 See Notes to Consolidated Financial Statements. 69 Eagle Materials Inc. and Subsidiaries N ot es to Consolidated Financial Statements (A) Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Eagle Materials Inc. and its majority-owned subsidiaries (the Company), which may be referred to as we, our, or us.
All intercompany balances and transactions have been eliminated. The Company is a holding company whose assets consist of its investments in its subsidiaries, joint venture, intercompany balances, and holdings of cash and cash equivalents. The businesses of the consolidated group are conducted through the Company’s subsidiaries.
All intercompany balances and transactions have been eliminated. The Company is a holding company whose assets consist of its investments in its subsidiaries, a joint venture, intercompany balances, and holdings of cash and cash equivalents. The businesses of the consolidated group are conducted through the Company’s subsidiaries.
At the Company’s option, principal amounts outstanding under the Term Loan bear interest as set forth in the Revolving Credit Facility (but not, for the avoidance of doubt, at a daily simple SOFR rate unless and until such time as the then-existing Benchmark [as defined in the Revolving Credit Facility] is replaced in accordance with the Revolving Credit Facility). 79 2.500% Senior Unsecured Notes Due 2031 On July 1, 2021, we issued $ 750.0 million aggregate principal amount of 2.500% senior notes due July 2031 (the 2.500 % Senior Unsecured Notes).
At the Company’s option, principal amounts outstanding under the Term Loan bear interest as set forth in the Revolving Credit Facility (but not, for the avoidance of doubt, at a daily simple SOFR rate unless and until such time as the then-existing Benchmark [as defined in the Revolving Credit Facility] is replaced in accordance with the Revolving Credit Facility). 2.500% Senior Unsecured Notes Due 2031 On July 1, 2021, we issued $ 750.0 million aggregate principal amount of 2.500% senior notes due July 2031 (the 2.500 % Senior Unsecured Notes).
To determine this rate, we developed estimates of the key components underlying capital asset returns that include: market-based estimates of inflation, real risk-free rates of return, yield curve structure, credit-risk premiums, and equity-risk premiums. Because all of our pension plans were frozen beginning in fiscal 2021, the rate of compensation increase is not applicable.
To determine this rate, we developed estimates of the key components underlying capital asset returns that include: market-based estimates of inflation, real risk-free rates of return, yield curve structure, credit-risk premiums, and equity-risk premiums. Because our pension plans were frozen beginning in fiscal 2021, the rate of compensation increase is not applicable.
We have indemnified the underwriting insurance company against any exposure under the performance bonds. In our past experience, no material claims have been made against these financial instruments. Other In the ordinary course of business, we execute contracts involving indemnifications that are standard in the industry and indemnifications specific to a transaction, such as the sale of a business.
We have indemnified the underwriting insurance company against any exposure under the performance bonds. In our experience, no material claims have been made against these financial instruments. Other In the ordinary course of business, we execute contracts involving indemnifications that are standard in the industry and indemnifications specific to a transaction, such as the sale of a business.
We performed qualitative assessments on all of our reporting units in the fourth quarter of fiscal 2023 and 2022. As a result of these qualitative assessments, we determined it was not more likely than not that an impairment existed; therefore, we did not perform a Step 1 quantitative test in either fiscal 2023 or 2022.
We performed qualitative assessments on all of our reporting units in the fourth quarter of fiscal years 2023 and 2022. As a result of these qualitative assessments, we determined it was not more likely than not that an impairment existed; therefore, we did not perform a Step 1 quantitative test in either fiscal 2023 or fiscal 2022.
If we perform a Step 1 test and the carrying value of the reporting unit exceeds its fair value, then an impairment charge equal to the difference, not to exceed the total amount of Goodwill, is recorded. The fair values of the reporting units are estimated by using both the market and income approaches.
If we perform a Step 1 quantitative test and the carrying value of the reporting unit exceeds its fair value, then an impairment charge equal to the difference, not to exceed the total amount of Goodwill, is recorded. The fair values of the reporting units are estimated by using both the market and income approaches.
The Revolving Credit Facility also requires the Company to maintain at the end of each fiscal quarter a Leverage Ratio of 3.50 :1.00 or less and an Interest Coverage Ratio (both ratios, as 78 defined in the Revolving Credit Facility) equal to or greater than 2.50 to 1.00 (collectively, the Financial Covenants).
The Revolving Credit Facility also requires the Company to maintain at the end of each fiscal quarter a Leverage Ratio of 3.50 :1.00 or less and an Interest Coverage Ratio (both ratios, as defined in the Revolving Credit Facility) equal to or greater than 2.50 to 1.00 (collectively, the Financial Covenants).
A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 99 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 100 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
We monitor the credit risk of each borrower by focusing on the timeliness of payments, credit history review, credit metrics, and interaction with the borrowers. Inventories Inventories are stated at the lower of average cost (including applicable material, labor, depreciation, and plant overhead) or net realizable value.
We monitor the credit risk of each borrower by focusing on the timeliness of payments, credit history review, credit metrics, and interaction with the borrowers. 70 Inventories Inventories are stated at the lower of average cost (including applicable material, labor, depreciation, and plant overhead) or net realizable value.
Our long-term supply agreements with customers define, among other commitments, the volume of product that we must provide and the volume that the customer must purchase by the end of the defined periods. Pricing structures under our agreements are generally market-based, but are subject to certain contractual adjustments.
Our long-term supply agreements with customers define, among other commitments, the volume of product we must provide and the volume the customer must purchase by the end of the defined periods. Pricing structures under our agreements are generally market-based, but are subject to certain contractual adjustments.
These funds are maintained by an investment manager and are primarily invested in indexes. The remaining funds, excluding cash, primarily consist of investments in institutional funds. 94 Profit Sharing Plans We also provide profit sharing plans, which cover substantially all salaried and certain hourly employees.
These funds are maintained by an investment manager and are primarily invested in indexes. The remaining funds, excluding cash, primarily consist of investments in institutional funds. Profit Sharing Plans We also provide profit sharing plans, which cover substantially all salaried and certain hourly employees.
When we arrange for a third party to deliver products to customers, fees for shipping and handling billed to the customer are 71 recorded as Revenue, while costs incurred for shipping and handling are recorded as expenses and included in Cost of Goods Sold.
When we arrange for a third party to deliver products to customers, fees for shipping and handling billed to the customer are recorded as Revenue, while costs incurred for shipping and handling are recorded as expenses and included in Cost of Goods Sold.
Due to the nature of raw materials and materials-in-progress inventory, the Company utilizes technology to measure certain volumes of the inventory stockpiles and applies density factors to convert the measurements to tons of inventory, which is then compared to the Company’s recorded balance.
Due to the nature of raw materials and materials-in-progress inventory, the Company utilizes technology to measure certain volumes of the inventory stockpiles and applies standard density factors to convert the measurements to tons of inventory, which is then compared to the Company’s recorded balance.
The qualitative analysis considers the impact of the following events and circumstances on the reporting unit being tested: macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and other relevant entity-specific events.
The qualitative analysis considers 71 the impact of the following events and circumstances on the reporting unit being tested: macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and other relevant entity-specific events.
The Company pays each lender a participation fee with respect to such lender’s participation in letters of credit, which fee accrues at the same Applicable Rate (as defined in the Revolving Credit Facility) used to determine the interest rate applicable to Eurodollar Revolving Loans (as defined in the Revolving Credit Facility) plus a fronting fee for each letter of credit issued by the issuing bank in an amount equal to 12.5 basis points per annum on the daily maximum amount then available to be drawn under such letter of credit.
The Company pays each lender a participation fee with respect to such lender’s participation in letters of credit, and the fee accrues at the same Applicable Rate (as defined in the Revolving Credit Facility) used to determine the interest rate applicable to Eurodollar Revolving Loans (as defined in the Revolving Credit Facility), plus a fronting fee for each letter of credit issued by the issuing bank in an amount equal to 12.5 basis points per annum on the daily maximum amount then available to be drawn under such letter of credit.
We believe that our audits provide a reasonable basis for our opinion. 96 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.
We believe that our audits provide a reasonable basis for our opinion. 97 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.
We recognize deferred taxes for the differences between financial statement carrying amounts and the tax bases of existing assets and liabilities by applying enacted statutory tax rates for future years. In addition, we recognize future tax benefits to the extent that such benefits are more likely than not to be realized. See Footnote (J) for more information.
We recognize deferred taxes for the differences between financial statement carrying amounts and the tax bases of existing assets and liabilities by applying enacted statutory tax rates for future years. In addition, we recognize future tax benefits to the extent that such benefits are more likely than not to be realized. See Footnote (I) for more information.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at March 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2023, in conformity with U.S. generally accepted accounting principles.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at March 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2024, in conformity with U.S. generally accepted accounting principles.
Accounts and Notes Receivable Accounts and Notes Receivable have been shown net of the allowance for doubtful accounts of $ 6.9 million and $ 6.7 million at March 31, 2023 and 2022, respectively. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers.
Accounts and Notes Receivable Accounts and Notes Receivable have been shown net of the allowance for doubtful accounts of $ 6.7 million and $ 6.9 million at March 31, 2024 and 2023, respectively. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers.
The carrying values of cash and cash equivalents, accounts and notes receivable, accounts payable, and accrued liabilities approximate their fair values at March 31, 2023, due to the short-term maturities of these assets and liabilities. The fair value of our Revolving Credit Facility and Term Loan also approximates its carrying values at March 31, 2023.
The carrying values of cash and cash equivalents, accounts and notes receivable, accounts payable, and accrued liabilities approximate their fair values at March 31, 2024, due to the short-term maturities of these assets and liabilities. The fair value of our Revolving Credit Facility and Term Loan also approximates its carrying values at March 31, 2024.
Corporate General and Administrative (Corporate G&A) Expenses include administration, financial, legal, employee benefits, and other corporate activities, and are shown separately in the Consolidated Statements of Earnings. Corporate G&A also includes stock compensation expense. See Footnote (L) for more information.
Corporate General and Administrative (Corporate G&A) Expenses include administration, financial, legal, employee benefits, and other corporate activities, and are shown separately in the Consolidated Statements of Earnings. Corporate G&A also includes stock compensation expense. See Footnote (K) for more information.
In our opinion, Eagle Materials Inc. and Subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of March 31, 2023, based on the COSO criteria.
In our opinion, Eagle Materials Inc. and Subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of March 31, 2024, based on the COSO criteria.
The pension plans’ approximate weighted-average asset allocation at March 31, 2023 and 2022, and the range of target allocation are as follows: Percentage of Plan Assets at March 31, Range of Target Allocation 2023 2022 Asset Category Equity Securities 10 – 20 % 9 % 9 % Debt Securities 60 – 90 % 89 % 90 % Other 0 – 20 % 2 % 1 % Total 100 % 100 % Our pension investment strategies have been developed as part of a comprehensive management process that considers the interaction between the assets and liabilities within each plan.
The pension plans’ approximate weighted-average asset allocation at March 31, 2024 and 2023, and the range of target allocation are as follows: Percentage of Plan Assets at March 31, Range of Target Allocation 2024 2023 Asset Category Equity Securities 10 – 20 % — 9 % Debt Securities 60 – 90 % 98 % 89 % Other 0 – 20 % 2 % 2 % Total 100 % 100 % Our pension investment strategies have been developed as part of a comprehensive management process that considers the interaction between the assets and liabilities within each plan.
Auditing management’s process for measuring certain raw materials and materials-in-progress inventory was complex as auditor judgement was necessary to evaluate the Company’s process for measuring the inventory, given the technology utilized, and converting the measurements to tonnage.
Auditing management’s process for measuring certain raw materials and materials-in-progress inventory was complex as auditor judgment was necessary to evaluate the Company’s process for measuring the inventory, given the technology utilized, and converting the measurements to tonnage.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated May 19, 2023 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 31, 2024, based on criteria established in Internal Control–Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated May 22, 2024 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of March 31, 2023 and 2022, the related consolidated statements of earnings, comprehensive earnings, stockholders’ equity and cash flows for each of the three years in the period ended March 31, 2023, and the related notes, and our report dated May 19, 2023 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of March 31, 2024 and 2023, the related consolidated statements of earnings, comprehensive earnings, stockholders’ equity and cash flows for each of the three years in the period ended March 31, 2024, and the related notes, and our report dated May 22, 2024 expressed an unqualified opinion thereon.
Based on our evaluation under the framework in Internal Control – Integrated Framework , our management concluded that our internal control over financial reporting was effective as of March 31, 2023.
Based on our evaluation under the framework in Internal Control – Integrated Framework , our management concluded that our internal control over financial reporting was effective as of March 31, 2024.
(N) Pension and Profit Sharing Plans We offer our employees multiple retirement and profit sharing plans. Pension Plans We have several defined benefit and defined contribution retirement plans that together cover substantially all of our employees.
(M) Pension and Profit Sharing Plans We offer our employees multiple retirement and profit sharing plans. Pension Plans We have several defined benefit and defined contribution retirement plans that together cover substantially all of our employees.
We also made matching contributions to the hourly profit sharing plan for certain of our entities totaling $ 1.4 million , $ 1.3 million, and $ 1.1 million for these employees during fiscal years 2023, 2022, and 2021, respectively. Approximately 50 of our employees belong to two different multi-employer plans.
We also made matching contributions to the hourly profit sharing plan for certain of our entities totaling $ 1.8 million , $ 1.4 million, and $ 1.3 million for these employees during fiscal years 2024, 2023, and 2022, respectively. 95 Approximately 50 of our employees belong to two different multi-employer plans.
The fair value of our Senior Unsecured Notes at March 31, 2023 is as follows: Fair Value (dollars in thousands) 2.500 % Senior Unsecured Notes Due 2031 $ 610,000 The estimated fair value of our long-term debt was based on publicly quoted prices of these debt instruments (level 1 input).
The fair value of our Senior Unsecured Notes at March 31, 2024 is as follows: Fair Value (dollars in thousands) 2.500 % Senior Unsecured Notes Due 2031 $ 628,000 The estimated fair value of our long-term debt was based on publicly quoted prices of these debt instruments (level 1 input).
The allowance for noncollection of receivables is based on our assessment of the collectability of outstanding accounts receivable, and includes a provision for probable losses based on historical write-offs, adjusted for current economic trends in the construction industry, and a specific reserve for accounts deemed at risk. We have no significant credit risk concentration among our diversified customer base.
The allowance for non-collection of receivables is based on our assessment of the collectability of outstanding accounts receivable, and includes a provision for probable losses based on historical write-offs, adjusted for current economic trends in the construction industry, and a specific reserve for accounts deemed at risk. We have no significant credit risk concentration among our diversified customer bases.
We recorded no interest and penalties for each of the fiscal years ended March 31, 2023, 2022, and 2021. 86 (K) Commitments and Contingencies Our operations and properties are subject to extensive and changing federal, state, and local laws; regulations and ordinances governing the protection of the environment; as well as laws relating to worker health and workplace safety.
We recorded no interest and penalties for each of the fiscal years ended March 31, 2024, 2023, and 2022. (J) Commitments and Contingencies Our operations and properties are subject to extensive and changing federal, state, and local laws; regulations and ordinances governing the protection of the environment; as well as laws relating to worker health and workplace safety.
Our maturities of long-term debt during the next five fiscal years are as follows: Fiscal Year Amount 2024 $ 10,000 2025 10,000 2026 10,000 2027 10,000 2028 309,500 Thereafter 750,000 Total $ 1,099,500 Retirement of Debt In connection with the issuance of the 2.500% Senior Unsecured notes, on July 1, 2021 , we repaid all outstanding amounts under and terminated our $ 665.0 million term loan credit agreement (the Term Loan Facility).
Our maturities of long-term debt during the next five fiscal years are as follows: Fiscal Year Amount 2025 $ 10,000 2026 10,000 2027 10,000 2028 322,500 2029 — Thereafter 750,000 Total $ 1,102,500 Retirement of Debt In connection with the issuance of the 2.500% Senior Unsecured notes, on July 1, 2021 , we repaid all outstanding amounts and terminated our $ 665.0 million term loan credit agreement (the Term Loan Facility).
Components of Interest Expense include interest associated with the Revolving Credit Facility, Term Loan (retired in July 2021), Senior Unsecured Notes, and commitment fees based on the unused portion of the Revolving Credit Facility. Other Expenses include amortization of debt issuance costs and Revolving Credit Facility and Term Loan costs.
Components of Interest Expense include interest associated with the Revolving Credit Facility, Term Loan, Senior Unsecured Notes, and commitment fees based on the unused portion of the Revolving Credit Facility. Other Expenses include amortization of debt issuance costs and Revolving Credit Facility and Term Loan costs.
Major renewals and improvements are capitalized and depreciated. Annual maintenance is expensed as incurred. Depreciation is provided on a straight-line basis over the estimated useful lives of depreciable assets and totaled $ 129.6 million, $ 122.4 million, and $ 120.7 million, for the fiscal years ended March 31, 2023, 2022, and 2021, respectively.
Major renewals and improvements are capitalized and depreciated. Annual maintenance is expensed as incurred. Depreciation is provided on a straight-line basis over the estimated useful lives of depreciable assets and totaled $ 139.5 million, $ 129.6 million, and $ 122.4 million, for the fiscal years ended March 31, 2024, 2023, and 2022, respectively.
We were in compliance with all covenants at March 31, 2023; therefore, all $ 586.6 million is available for future borrowings. Term Loan On May 5, 2022, we borrowed the $ 200.0 million Term Loan under the Revolving Credit Facility, and used these proceeds to, among other things, pay down a portion of the Revolving Credit Facility.
We were in compliance with all covenants at March 31, 2024; therefore, all $ 571.7 million is available for future borrowings. 80 Term Loan On May 5, 2022, we borrowed the $ 200.0 million Term Loan under the Revolving Credit Facility, and used these proceeds to, among other things, pay down a portion of the Revolving Credit Facility.
Costs relating to the employer discretionary contributions for our plan totaled $ 9.1 million, $ 8.5 million, and $ 8.3 million in fiscal years 2023, 2022, and 2021, respectively.
Costs relating to the employer discretionary contributions for our plan totaled $ 9.6 million, $ 9.1 million, and $ 8.5 million in fiscal years 2024, 2023, and 2022, respectively.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Dallas, Texas May 19, 2023 I TEM 9b. Other Information None.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Dallas, Texas May 22, 2024 I TEM 9b.
We incurred $ 173.4 million, $ 147.8 million, and $ 137.2 million of maintenance and repair expenses in the fiscal years ended March 31, 2023, 2022, and 2021, respectively, which is included in Cost of Goods Sold on the Consolidated Statement of Earnings.
We incurred $ 220.1 million, $ 173.4 million, and $ 147.8 million of maintenance and repair expenses in the fiscal years ended March 31, 2024, 2023, and 2022, respectively, which is included in Cost of Goods Sold on the Consolidated Statement of Earnings.
Both of the Fiscal 2023 Employee Restricted Stock Performance Award and the Fiscal 2023 Employee Restricted Stock Time-Vesting Award were valued at the closing price of the stock on the date of grant and are being expensed over a four-year period.
The Fiscal 2024 Employee Restricted Stock Performance Award and the Fiscal 2024 Employee Restricted Stock Time-Vesting Award were valued at the closing price of the stock on the date of grant and are being expensed over a three-year period.
Approximately $ 229.6 million, $ 199.1 million, and $ 177.5 million of freight for the fiscal years ended March 31, 2023, 2022, and 2021, respectively, were included in both Revenue and Cost of Goods Sold in our Consolidated Statement of Earnings.
Approximately $ 215.3 million, $ 229.6 million, and $ 199.1 million of freight for the fiscal years ended March 31, 2024, 2023, and 2022, respectively, were included in both Revenue and Cost of Goods Sold in our Consolidated Statement of Earnings.
The segment breakdown of Goodwill at March 31, 2023 and 2022 is as follows: For the Years Ended March 31, 2023 2022 (dollars in thousands) Cement $ 215,781 $ 203,342 Concrete and Aggregates 40,774 1,639 Gypsum Wallboard 116,618 116,618 Paperboard 7,538 7,538 $ 380,711 $ 329,137 Summarized financial information for the Joint Venture that is not consolidated is set out below.
The segment breakdown of Goodwill at March 31, 2024 and 2023 is as follows: For the Years Ended March 31, 2024 2023 (dollars in thousands) Cement $ 227,639 $ 215,781 Concrete and Aggregates 40,774 40,774 Gypsum Wallboard 116,618 116,618 Paperboard 7,538 7,538 $ 392,569 $ 380,711 Summarized financial information for the Joint Venture that is not consolidated is set out below.
We performed a Step 1 quantitative impairment test on our all of our reporting units with Goodwill during the fourth quarter of fiscal 2021. We estimated the fair value of the reporting unit using a discounted cash flow model as well as a market analysis.
We elected to perform a Step 1 quantitative test on all of our reporting units with Goodwill during the fourth quarter of fiscal 2024. We estimated the fair value of the reporting unit using a discounted cash flow model as well as a market analysis.
At March 31, 2023, we had contingent liabilities under these outstanding letters of credit of approximately $ 6.4 million. We are currently contingently liable for performance under $ 26.9 million in performance bonds required by certain states and municipalities, and their related agencies. The bonds are principally for certain reclamation obligations and mining permits.
At March 31, 2024, we had contingent liabilities under these outstanding letters of credit of approximately $ 8.3 million. We are currently contingently liable for performance under $ 29.3 million in performance bonds required by certain states and municipalities, and their related agencies. The bonds are principally for certain reclamation obligations and mining permits.
Other Nonoperating Income includes lease and rental income, asset sale income, non-inventoried aggregates sales income, and trucking income, as well as other miscellaneous revenue items and costs that have not been allocated to a business segment. See Footnote (I) for disaggregation of Revenue by segment.
Other Nonoperating Income includes lease and rental income, asset sale income, non-inventoried aggregates sales income, and trucking income, as well as other miscellaneous revenue items and costs that have not been allocated to a business segment.
There were 52,375 ; 6,053 ; and 569,431 stock options at an average exercise price of $ 127.06 per share, $ 139.80 per share, and $ 89.11 per share, respectively, that were excluded from the computation of diluted earnings per share for the fiscal years ended March 31, 2023, 2022, and 2021, because such inclusion would have been anti-dilutive.
There were 16,609, 52,375, and 6,053 stock options at an average exercise price of $ 133.91 per share, $ 127.06 per share, and $ 139.80 per share, respectively, that were excluded from the computation of 75 diluted earnings per share for the fiscal years ended March 31, 2024, 2023, and 2022, because such inclusion would have been anti-dilutive.
Options granted under the Fiscal 2023 Board of Directors Stock Option Award vest immediately and can be exercised from the grant date until their expiration on the tenth anniversary of the grant date. All stock options issued during fiscal 2023 and 2022 were valued at the grant date using the Black-Scholes option pricing model.
Options granted under the Fiscal 2024 Board Stock Option Award vest one year after the date of grant, and can be exercised from the vesting date until their expiration on the tenth anniversary of the grant date. 89 All stock options issued during fiscal 2024 and 2023 were valued at the grant date using the Black-Scholes option pricing model.
The fair values by category of inputs as of March 31, 2023 were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Asset Categories (dollars in thousands) Equity Securities $ — $ 2,878 $ — $ 2,878 Fixed Income Securities — 27,811 — 27,811 Cash Equivalents 417 — — 417 $ 417 $ 30,689 $ — $ 31,106 The fair values by category of inputs as of March 31, 2022 were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Asset Categories (dollars in thousands) Equity Securities $ — $ 3,433 $ — $ 3,433 Fixed Income Securities — 32,583 — 32,583 Real Estate Funds — 115 — 115 Cash Equivalents 182 — — 182 $ 182 $ 36,131 $ — $ 36,313 Equity securities consist of funds that are not actively traded.
The fair values by category of inputs as of March 31, 2024, were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Asset Categories (dollars in thousands) Equity Securities $ — $ — $ — $ — Fixed Income Securities — 29,541 — 29,541 Cash Equivalents 583 — — 583 $ 583 $ 29,541 $ — $ 30,124 The fair values by category of inputs as of March 31, 2023, were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Asset Categories (dollars in thousands) Equity Securities $ — $ 2,878 $ — $ 2,878 Fixed Income Securities — 27,811 — 27,811 Cash Equivalents 417 — — 417 $ 417 $ 30,689 $ — $ 31,106 Equity securities consist of funds that are not actively traded.
At March 31, 2023, there was approximately $ 3.3 million of unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted-average period of 2.3 years.
At March 31, 2024, there was approximately $ 1.7 million of unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted-average period of 1.9 years.
Revenue from the sale of cement, concrete, aggregates, and gypsum wallboard that is not related to long-term supply agreements is recognized upon shipment of the related products to customers, which is when title and ownership are transferred, and the customer is obligated to pay.
We invoice customers upon shipment, and our collection terms range from 30 to 75 days. Revenue from the sale of cement, concrete, aggregates, and gypsum wallboard that is not related to long-term supply agreements is recognized upon shipment of the related products to customers, which is when title and ownership are transferred, and the customer is obligated to pay.
The total intrinsic value of options exercised during the fiscal years ended March 31, 2023, 2022, and 2021 was approximately $ 4.4 million, $ 15.7 million and $ 26.4 million, respectively. 89 Restricted Stock In May 2022, the Compensation Committee approved the granting to certain officers and key employees an aggregate of 50,783 shares of performance vesting restricted stock that would be earned only if certain performance conditions were satisfied (the Fiscal 2023 Employee Restricted Stock Performance Award).
The total intrinsic value of options exercised during the fiscal years ended March 31, 2024, 2023, and 2022 was approximately $ 18.8 million, $ 4.4 million and $ 15.7 million, respectively. 90 Restricted Stock In May 2023, under the Prior Plan, the Compensation Committee approved the granting to certain officers and key employees an aggregate of 45,693 shares of performance-vesting restricted stock that would be earned only if certain performance conditions were satisfied (the Fiscal 2024 Employee Restricted Stock Performance Award).
Consolidated Cash Flows – Supplemental Disclosures Supplemental cash flow information is as follows: For the Years Ended March 31, 2023 2022 2021 (dollars in thousands) Cash Payments: Interest $ 31,596 $ 21,298 $ 42,343 Income Taxes 131,512 86,407 32,870 Operating Cash Flows Used for Operating Leases 8,314 8,141 10,741 Noncash Financing Activities: Right-of-Use Assets Obtained for Capitalized Operating Leases $ 1,711 $ 2,598 $ 272 Excise Tax on Share Repurchases 738 — — Selling, General, and Administrative Expenses Selling, General, and Administrative Expenses of the operating units are included in Cost of Goods Sold on the Consolidated Statements of Earnings.
Consolidated Cash Flows – Supplemental Disclosures Supplemental cash flow information is as follows: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Cash Payments: Interest $ 43,663 $ 31,596 $ 21,298 Income Taxes 124,482 131,512 86,407 Operating Cash Flows Used for Operating Leases 9,286 8,314 8,141 Noncash Financing Activities: Right-of-Use Assets Obtained for Capitalized Operating Leases $ 6,465 $ 1,711 $ 2,598 Excise Tax on Share Repurchases 3,432 738 — Selling, General, and Administrative Expenses Selling, General, and Administrative Expenses of the operating units are included in Cost of Goods Sold on the Consolidated Statements of Earnings.
Raw Materials and Materials-in-Progress inventory existence Description of the Matter As described in Note A, the Company’s raw materials and materials-in-progress inventory balance was $96.9 million at March 31, 2023.
Raw Materials and Materials-in-Progress inventory existence Description of the Matter As described in Note A, the Company’s raw materials and materials-in-progress inventory balance was $122.8 million at March 31, 2024.
Based on our current actuarial estimates, we do no t anticipate making any contributions to our defined benefit plans for fiscal 2024. 93 The fair values of our defined benefit plans’ consolidated assets by category as of March 31, 2023 and 2022 were as follows: March 31, 2023 2022 (dollars in thousands) Equity Securities $ 2,878 $ 3,433 Fixed Income Securities 27,811 32,583 Real Estate Funds — 115 Cash Equivalents 417 182 Total $ 31,106 $ 36,313 The fair values of our defined benefit plans’ consolidated assets were determined using the fair value hierarchy of inputs described in Footnote (A) to the Consolidated Financial Statements.
Based on our current actuarial estimates, we do no t anticipate making any contributions to our defined benefit plans for fiscal 2025. 94 The fair values of our defined benefit plans’ consolidated assets by category as of March 31, 2024 and 2023 were as follows: March 31, 2024 2023 (dollars in thousands) Equity Securities $ — $ 2,878 Fixed Income Securities 29,541 27,811 Cash Equivalents 583 417 Total $ 30,124 $ 31,106 The fair values of our defined benefit plans’ consolidated assets were determined using the fair value hierarchy of inputs described in Footnote (A) to the Consolidated Financial Statements.
(I) Business Segments Operating segments are defined as components of an enterprise that engage in business activities that earn revenue, incur expenses, and prepare separate financial information that is evaluated regularly by our chief operating decision maker in order to allocate resources and assess performance.
(H) Business Segments Operating segments are defined as components of an enterprise that engage in business activities that earn revenue, incur expenses, and prepare separate financial information that is evaluated regularly by our chief operating decision maker in order to allocate resources and assess performance. Our business is organized into two sectors within which there are four reportable business segments.
At the Company’s option, principal amounts outstanding under the Revolving Credit Facility bear interest at a variable rate equal to either (i) the Adjusted LIBO Rate (as defined in the Revolving Credit Facility) plus an agreed spread (ranging from 100 to 162.5 basis points, which is established based on the Company's credit rating); or (ii) an Alternate Base Rate (as defined in the Revolving Credit Facility), which is the highest of (a) the Prime Rate (as defined in the Revolving Credit Facility) in effect on any applicable day, (b) the NYFRB Rate (as defined in the Revolving Credit Facility) in effect on any applicable day, plus ½ of 1% , and (c) the Adjusted LIBO Rate for a one-month interest period on any applicable day, or if such day is not a business day, the immediately preceding business day, plus 1.0%, in each case plus an agreed upon spread (ranging from 0 to 62.5 basis points) which is established quarterly based on the Company's credit rating.
At the Company’s option, outstanding loans under the Revolving Credit Facility bear interest, at a variable rate equal to either (i) the adjusted term SOFR rate (secured overnight financing rate), plus 10 basis points, plus an agreed spread (ranging from 100 to 162.5 basis points, which is established based on the Company's credit rating); (ii) in respect of any Revolving Loans (until such time as the then-existing Benchmark (as defined in the Revolving Credit Facility) is replaced in accordance with the Revolving Credit Facility), the adjusted daily simple SOFR rate, plus 10 basis points, plus an agreed spread (ranging from 100 to 162.5 basis points, which is established based on the Company's credit rating) or (iii) an Alternate Base Rate (as defined in the Revolving Credit Facility), which is the highest of (a) the Prime Rate (as defined in the Revolving Credit Facility) in effect on any applicable day, (b) the NYFRB Rate (as defined in the Revolving Credit Facility) in effect on any applicable day, plus ½ of 1% , and (c) the Adjusted Term SOFR (as defined in the Revolving Credit Facility) for a one-month interest period on any applicable day, or if such day is not a business day, the immediately preceding business day, plus 1.0%, in each case plus an agreed upon spread (ranging from 0 to 62.5 basis points), which is established quarterly based on the Company's credit rating.
Dallas, Texas May 19, 20 23 97 I TEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. I tem 9a.
Dallas, Texas May 22, 20 24 98 I TEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. I tem 9a.
The tax matters challenged by the tax authorities are typically complex; therefore, the ultimate outcome of these challenges is subject to uncertainty. We review and assess all tax positions subject to uncertainty on a more-likely-than-not standard with respect to the ultimate outcome if challenged. We measure and record tax benefit or expense only when the more-likely-than-not threshold is met.
We review and assess all tax positions subject to uncertainty on a more-likely-than-not standard with respect to the ultimate outcome if challenged. We measure and record tax benefit or expense only when 87 the more-likely-than-not threshold is met.
The collective bargaining agreements for the employees who participate in the multi-employer plans expire in February 2024 and March 2025 . Our expense related to these plans was approximately $ 1.8 million , $ 1.7 million, and $ 1.8 million during fiscal years 2023, 2022, and 2021, respectively.
One of the collective bargaining agreements for the employees who participate in the multi-employer plans expired in February 2024 and is currently being renegotiated, and the other expires in March 2025 . Our expense related to these plans was approximately $ 1.7 million , $ 1.8 million, and $ 1.7 million during fiscal years 2024, 2023, and 2022, respectively.
The following table summarizes the activity for nonvested restricted shares during the fiscal years ended March 31, 2023, 2022, and 2021: For the Years Ended March 31, 2023 2022 2021 Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Nonvested Restricted Stock at Beginning of Year 258,779 $ 85.34 267,090 $ 62.56 233,120 $ 75.35 Granted 111,230 $ 126.23 113,414 $ 139.91 179,377 $ 63.83 Vested ( 147,678 ) $ 104.33 ( 116,507 ) $ 87.47 ( 136,280 ) $ 78.89 Cancelled ( 3,247 ) $ 124.82 ( 5,218 ) $ 75.10 ( 9,127 ) $ 71.46 Nonvested Restricted Stock at End of Year 219,084 $ 96.54 258,779 $ 85.34 267,090 $ 62.56 Expense related to restricted shares was $ 13.7 million, $ 10.9 million, and $ 10.4 million in fiscal years ended March 31, 2023, 2022, and 2021, respectively.
The following table summarizes the activity for nonvested restricted shares during the fiscal years ended March 31, 2024, 2023, and 2022: For the Years Ended March 31, 2024 2023 2022 Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Nonvested Restricted Stock at Beginning of Year 219,084 $ 96.54 258,779 $ 85.34 267,090 $ 62.56 Granted 97,257 $ 169.62 111,230 $ 126.23 113,414 $ 139.91 Vested ( 111,695 ) $ 124.78 ( 147,678 ) $ 104.33 ( 116,507 ) $ 87.47 Cancelled ( 3,000 ) $ 30.38 ( 3,247 ) $ 124.82 ( 5,218 ) $ 75.10 Nonvested Restricted Stock at End of Year 201,646 $ 122.58 219,084 $ 96.54 258,779 $ 85.34 91 Expense related to restricted shares was $ 17.9 million, $ 13.7 million, and $ 10.9 million in fiscal years ended March 31, 2024, 2023, and 2022, respectively.
The annual measurement date is March 31 for the benefit obligations, fair value of plan assets, and the funded status of the defined benefit plans. 91 The following table provides a reconciliation of the Benefit Obligations and Fair Values of Plan Assets for all defined benefit plans for the years ended March 31, 2023 and 2022, as well as a statement of the funded status for the same periods: For the Years Ended March 31, 2023 2022 (dollars in thousands) Reconciliation of Benefit Obligations Benefit Obligation at April 1, $ 33,909 $ 35,844 Interest Cost on Projected Benefit Obligation 1,240 1,167 Actuarial Gain ( 4,509 ) ( 1,776 ) Benefits Paid ( 1,451 ) ( 1,326 ) Benefit Obligation at March 31, $ 29,189 $ 33,909 Reconciliation of Fair Value of Plan Assets Fair Value of Plan Assets at April 1, $ 36,313 $ 37,907 Actual Return on Plan Assets ( 3,756 ) ( 268 ) Benefits Paid ( 1,451 ) ( 1,326 ) Fair Value of Plan Assets at March 31, 31,106 36,313 Funded Status Funded Status at March 31, $ 1,917 $ 2,404 Amounts Recognized in the Balance Sheet Include: Other Assets $ 1,917 $ 2,404 Accumulated Other Comprehensive Losses: Net Actuarial Loss 4,662 4,172 Accumulated Other Comprehensive Losses $ 4,662 $ 4,172 Tax Impact ( 1,115 ) ( 997 ) Accumulated Other Comprehensive Losses, net of tax $ 3,547 $ 3,175 Net periodic pension cost for the fiscal years ended March 31, 2023, 2022, and 2021, included the following components: For the Years Ended March 31, 2023 2022 2021 (dollars in thousands) Interest Cost of Projected Benefit Obligation 1,240 1,167 1,216 Expected Return on Plan Assets ( 1,366 ) ( 1,299 ) ( 1,419 ) Recognized Net Actuarial Loss 123 143 133 Net Periodic Pension Cost $ ( 3 ) $ 11 $ ( 70 ) Expected benefit payments over the next five years, and the following five years under the pension plans are expected to be as follows (dollars in thousands): Fiscal Years Total 2024 $ 1,753 2025 $ 1,842 2026 $ 1,890 2027 $ 1,964 2028 $ 1,994 2029-2033 $ 9,834 The following tables set forth the assumptions used in the actuarial calculations of the present value of Net Periodic Benefit Costs and Benefit Obligations: 92 March 31, 2023 2022 2021 Net Periodic Benefit Costs Discount Rate 3.75 % 3.33 % 3.64 % Expected Return on Plan Assets 3.85 % 3.50 % 4.00 % Rate of Compensation Increase n/a n/a n/a March 31, 2023 2022 Benefit Obligations Discount Rate 4.99 % 3.75 % Rate of Compensation Increase n/a n/a The expected long-term rate of return on plan assets is an assumption reflecting the anticipated weighted-average rate of earnings on the portfolio over the long term.
The annual measurement date is March 31 for the benefit obligations, fair value of plan assets, and the funded status of the defined benefit plans. 92 The following table provides a reconciliation of the Benefit Obligations and Fair Values of Plan Assets for all defined benefit plans for the years ended March 31, 2024 and 2023, as well as a statement of the funded status for the same periods: For the Years Ended March 31, 2024 2023 (dollars in thousands) Reconciliation of Benefit Obligations Benefit Obligation at April 1, $ 29,189 $ 33,909 Interest Cost on Projected Benefit Obligation 1,413 1,240 Actuarial Gain ( 829 ) ( 4,509 ) Benefits Paid ( 1,643 ) ( 1,451 ) Benefit Obligation at March 31, $ 28,130 $ 29,189 Reconciliation of Fair Value of Plan Assets Fair Value of Plan Assets at April 1, $ 31,106 $ 36,313 Actual Return on Plan Assets 641 ( 3,756 ) Employer Contributions 20 — Benefits Paid ( 1,643 ) ( 1,451 ) Fair Value of Plan Assets at March 31, 30,124 31,106 Funded Status Funded Status at March 31, $ 1,994 $ 1,917 Amounts Recognized in the Balance Sheet Include: Other Assets $ 1,994 $ 1,917 Accumulated Other Comprehensive Losses Net Actuarial Loss 4,454 4,662 Accumulated Other Comprehensive Losses $ 4,454 $ 4,662 Tax Impact ( 1,081 ) ( 1,115 ) Accumulated Other Comprehensive Losses, net of tax $ 3,373 $ 3,547 Net periodic pension cost for the fiscal years ended March 31, 2024, 2023, and 2022, included the following components: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Interest Cost of Projected Benefit Obligation 1,413 1,240 1,167 Expected Return on Plan Assets ( 1,512 ) ( 1,366 ) ( 1,299 ) Recognized Net Actuarial Loss 250 123 143 Net Periodic Pension Cost $ 151 $ ( 3 ) $ 11 Expected benefit payments over the next five years, and the following five years under the pension plans are expected to be as follows (dollars in thousands): Fiscal Years Total 2025 $ 1,843 2026 $ 1,874 2027 $ 1,951 2028 $ 1,988 2029 $ 1,962 2030-2034 $ 9,853 The following tables set forth the assumptions used in the actuarial calculations of the present value of Net Periodic Benefit Costs and Benefit Obligations: 93 March 31, 2024 2023 2022 Net Periodic Benefit Costs Discount Rate 4.99 % 3.75 % 3.33 % Expected Return on Plan Assets 5.00 % 3.85 % 3.50 % Rate of Compensation Increase n/a n/a n/a March 31, 2024 2023 Benefit Obligations Discount Rate 5.27 % 4.99 % Rate of Compensation Increase n/a n/a The expected long-term rate of return on plan assets is an assumption reflecting the anticipated weighted-average rate of earnings on the portfolio over the long term.
Total Selling, General, and Administrative Expenses for each of the periods are summarized as follows: For the Years Ended March 31, 2023 2022 2021 (dollars in thousands) Operating Units Selling, G&A $ 65,468 $ 56,561 $ 56,309 Corporate G&A 53,630 46,801 49,511 $ 119,098 $ 103,362 $ 105,820 72 Earnings per Share For the Years Ended March 31, 2023 2022 2021 Weighted-Average Shares of Common Stock Outstanding 36,798,354 40,547,048 41,543,067 Effect of Dilutive Shares: Assumed Exercise of Outstanding Dilutive Options 418,659 539,309 570,325 Less Shares Repurchased from Proceeds of Assumed Exercised Options ( 290,590 ) ( 343,917 ) ( 429,815 ) Restricted Stock Units 126,519 187,272 143,132 Weighted-Average Common Stock and Dilutive Securities Outstanding 37,052,942 40,929,712 41,826,709 The line Less Shares Repurchased from Proceeds of Assumed Exercised Options includes unearned compensation related to outstanding stock options.
Total Selling, General, and Administrative Expenses for each of the periods are summarized as follows: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Operating Units Selling, G&A $ 75,001 $ 65,468 $ 56,561 Corporate G&A 59,795 53,630 46,801 $ 134,796 $ 119,098 $ 103,362 Earnings per Share For the Years Ended March 31, 2024 2023 2022 Weighted-Average Shares of Common Stock Outstanding 34,811,560 36,798,354 40,547,048 Effect of Dilutive Shares: Assumed Exercise of Outstanding Dilutive Options 304,889 418,659 539,309 Less Shares Repurchased from Proceeds of Assumed Exercised Options ( 157,457 ) ( 290,590 ) ( 343,917 ) Restricted Stock Units 138,879 126,519 187,272 Weighted-Average Common Stock and Dilutive Securities Outstanding 35,097,871 37,052,942 40,929,712 The line Less Shares Repurchased from Proceeds of Assumed Exercised Options includes unearned compensation related to outstanding stock options.
Comprehensive Income/Losses As of March 31, 2023, we have an Accumulated Other Comprehensive Loss of $ 3.5 million, which is net of income taxes of $ 1.0 million, in connection with recognizing the difference between the fair value of the pension assets and the projected benefit obligation.
See Footnote (H) for disaggregation of Revenue by segment. 74 Comprehensive Income/Losses As of March 31, 2024, we have an Accumulated Other Comprehensive Loss of $ 3.4 million, which is net of income taxes of $ 1.1 million, in connection with recognizing the difference between the fair value of the pension assets and the projected benefit obligation.
Amortization expense is expected to be approximately $ 6.8 million in fiscal 2024, $ 6.6 million in fiscal 2025 and 2026, $ 6.4 million in fiscal 2027, and $ 6.3 million in fiscal 2028.
Amortization expense is expected to be approximately $ 7.7 million in fiscal 2025, $ 7.6 million in fiscal 2026, $ 7.5 million in fiscal 2027, $ 7.4 million in fiscal 2028, and $ 7.1 million in fiscal 2029.
Long-Term Compensation Plans Options In May 2022, the Compensation Committee of the Board of Directors approved the granting to certain officers and key employees an aggregate of 25,192 performance-vesting stock options that would be earned only if certain performance conditions were satisfied (the Fiscal 2023 Employee Performance Stock Option Grant).
Long-Term Compensation Plans Options In May 2023, under the 2013 Amended and Restated Incentive Plan (the Prior Plan), the Compensation Committee of the Board approved the granting to certain officers and key employees an aggregate of 2,296 performance-vesting stock options that would be earned only if certain performance conditions were satisfied (the Fiscal 2024 Employee Performance Stock Option Award).
Any assets held for sale are reflected at the lower of their carrying amount or fair value less cost to sell. There were no indicators of impairment related to our long-lived assets during fiscal 2023.
Any assets held for sale are reflected at the lower of their carrying amount or fair value less cost to sell. There were no indicators of impairment related to our long-lived assets during fiscal 2024. Other Assets Other Assets are primarily composed of financing costs related to our Revolving Credit Facility, deferred expenses, and deposits.
The performance criterion for the Fiscal 2023 Employee Performance Stock Option Grant was based upon the achievement of certain levels of return on equity (as defined in the option agreements), ranging from 10.0 % to 20.0 %, for the fiscal year ending March 31, 2023.
The performance criterion for the Fiscal 2024 Employee Performance Stock Option Award was based upon the achievement of certain levels of return on equity (as defined in the option agreements), ranging from 10 % to 20 %, from the performance periods described below.
The performance criterion for the Fiscal 2023 Employee Restricted Stock Performance Award is based upon the achievement of certain levels of return on equity (as defined in the agreement), ranging from 10.0 % to 20.0 %, for the fiscal year ended March 31, 2023.
The performance criterion for the Fiscal 2024 Employee Restricted Stock Performance Award was based upon the achievement of certain levels of return on equity (as defined in the agreement), ranging from 10 % to 20 %, for the performance periods described below.
Additionally, on July 19, 2021 , (the first business day following the redemption date), we redeemed and paid in full all outstanding amounts due under the $ 350.0 million aggregate principal amount of 4.500% senior notes (4.500% Senior Unsecured Notes) due August 2026 , using proceeds from the 2.500% Senior Unsecured Notes, the Revolving Credit Facility and cash on hand.
The Term Loan Facility was used to pay a portion of the purchase price for the Kosmos Acquisition, and fees and expenses incurred in connection with the Kosmos Acquisition in March 2020. 81 Additionally, on July 19, 2021 , (the first business day following the redemption date), we redeemed and paid in full all outstanding amounts due under the $ 350.0 million aggregate principal amount of 4.500% senior notes (4.500% Senior Unsecured Notes) due August 2026 , using proceeds from the 2.500% Senior Unsecured Notes, the Revolving Credit Facility and cash on hand.
The following table presents the Revenue and Operating Earnings related to the ConAgg Acquisition that has been included in our Consolidated Statement of Earnings from April 22, 2022 through March 31, 2023.
The following table presents the Revenue and Operating Earnings related to the Stockton Terminal Acquisition that have been included in our Consolidated Statement of Earnings from May 3, 2023 through March 31, 2024.
There was $ 157.0 million of outstanding borrowings under the Revolving Credit Facility, plus $ 6.4 million of outstanding letters of credit as of March 31, 2023, leaving us with $ 586.6 million of available borrowings under the Revolving Credit Facility, net of outstanding letters of credit.
There was $ 170.0 million of outstanding borrowings under the Revolving Credit Facility, plus $ 8.3 million of outstanding letters of credit as of March 31, 2024, leaving us with $ 571.7 million of available borrowings under the Revolving Credit Facility, net of outstanding letters of credit.
Lease expense for our operating and short-term leases is as follows: For the Years Ended March 31, 2023 2022 2021 (dollars in thousands) Operating Lease Cost $ 7,339 $ 6,543 $ 6,757 Short-term Lease Cost 593 1,261 2,562 Total Lease Cost $ 7,932 $ 7,804 $ 9,319 The Right-of-Use Assets and Lease Liabilities are reflected on our Balance Sheet as follows: March 31, 2023 2022 (dollars in thousands) Operating Leases: Operating Lease Right-of-Use Assets $ 20,759 $ 23,856 Current Operating Lease Liabilities $ 6,009 $ 7,118 Noncurrent Operating Lease Liabilities 24,940 29,212 Total Operating Lease Liabilities $ 30,949 $ 36,330 77 Future payments for operating leases are as follows: Amount Fiscal Year (dollars in thousands) 2024 $ 6,875 2025 6,427 2026 4,662 2027 3,540 2028 2,705 Thereafter 14,229 Total Lease Payments $ 38,438 Less: Imputed Interest ( 7,489 ) Present Value of Lease Liabilities $ 30,949 Weighted-Average Remaining Lease Term (in years) 10.2 Weighted-Average Discount Rate 3.80 % (G) Indebtedness Long-term debt at March 31, 2023 consists of the following: As of March 31, 2023 2022 (dollars in thousands) Revolving Credit Facility $ 157,000 $ 200,000 2.500 % Senior Unsecured Notes Due 2031 750,000 750,000 Term Loan 192,500 — Total Debt 1,099,500 950,000 Less: Current Portion of Long-term Debt ( 10,000 ) — Less: Unamortized Discount and Debt Issuance Costs ( 10,468 ) ( 11,735 ) Long-term Debt $ 1,079,032 $ 938,265 The weighted-average interest rate of borrowings under our Revolving Credit Facility during fiscal years 2023, 2022, and 2021 was approximately 3.7 %, 1.5 %, and 2.8 %, respectively.
Lease expense for our operating and short-term leases is as follows: For the Years Ended March 31, 2024 2023 2022 (dollars in thousands) Operating Lease Cost $ 8,030 $ 7,339 $ 6,543 Short-term Lease Cost 691 593 1,261 Total Lease Cost $ 8,721 $ 7,932 $ 7,804 78 The Right-of-Use Assets and Lease Liabilities are reflected on our Balance Sheet as follows: March 31, 2024 2023 (dollars in thousands) Operating Leases: Operating Lease Right-of-Use Assets $ 19,373 $ 20,759 Current Operating Lease Liabilities $ 7,899 $ 6,009 Noncurrent Operating Lease Liabilities 19,037 24,940 Total Operating Lease Liabilities $ 26,936 $ 30,949 Future payments for operating leases are as follows: Amount Fiscal Year (dollars in thousands) 2025 $ 8,650 2026 4,785 2027 3,619 2028 2,752 2029 2,675 Thereafter 11,006 Total Lease Payments $ 33,487 Less: Imputed Interest ( 6,551 ) Present Value of Lease Liabilities $ 26,936 Weighted-Average Remaining Lease Term (in years) 9.6 Weighted-Average Discount Rate 4.16 % (F) Indebtedness Long-term debt consists of the following: As of March 31, 2024 2023 (dollars in thousands) Revolving Credit Facility $ 170,000 $ 157,000 2.500 % Senior Unsecured Notes Due 2031 750,000 750,000 Term Loan 182,500 192,500 Total Debt 1,102,500 1,099,500 Less: Current Portion of Long-term Debt ( 10,000 ) ( 10,000 ) Less: Unamortized Discount and Debt Issuance Costs ( 9,201 ) ( 10,468 ) Long-term Debt $ 1,083,299 $ 1,079,032 The weighted-average interest rate of borrowings under our Revolving Credit Facility during fiscal years 2024, 2023, and 2022 was approximately 6.6 %, 3.7 %, and 1.5 %, respectively.
Our operations are conducted in the U.S. and include the mining of limestone for the manufacture, production, distribution, and sale of portland cement (a basic construction material that is the essential binding ingredient in concrete); the grinding and sale of slag; the mining of gypsum for the manufacture and sale of gypsum wallboard; the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and the mining and sale of aggregates (crushed stone, sand, and gravel).
Our operations are conducted in the U.S. and include the mining of limestone for the manufacture, production, distribution, and sale of portland cement (a basic construction material that is the essential binding ingredient in concrete); the grinding and sale of slag; the mining of gypsum for the manufacture and sale of gypsum wallboard; the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and the mining and sale of aggregates (crushed stone, sand, and gravel). 82 We operate eight modern cement plants (one of which is operated through a joint venture located in Buda, Texas), one slag grinding facility, and over 30 cement distribution terminals, including terminals acquired in the Stockton Terminal Acquisition.
We anticipate the total expense in fiscal 2024 related to these plans will be approximately $ 2.0 million. 95 R eport of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Eagle Materials Inc. and Subsidiaries Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Eagle Materials Inc. and Subsidiaries (the Company) as of March 31, 2023 and 2022, the related consolidated statements of earnings, comprehensive earnings, stockholders' equity and cash flows for each of the three years in the period ended March 31, 2023, and the related notes (collectively referred to as the “consolidated financial statements”).
Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Eagle Materials Inc. and Subsidiaries (the Company) as of March 31, 2024 and 2023, the related consolidated statements of earnings, comprehensive earnings, stockholders' equity and cash flows for each of the three years in the period ended March 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”).
Our cement companies focus on the U.S. heartland and operate as an integrated network selling product primarily in California, Colorado, Illinois, Indiana, Iowa, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, and Texas.
Our cement companies focus on the U.S. heartland and operate as an integrated network selling product primarily in California, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Tennessee, and Texas. We operate over 25 readymix concrete batch plants and five aggregates processing plants in markets that are complementary to our cement network.
The effectiveness of our internal control over financial reporting as of March 31, 2023, has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which is included herein. 98 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of Eagle Materials Inc. and Subsidiaries Opinion on Internal Control Over Financial Reporting We have audited Eagle Materials Inc. and Subsidiaries’ internal control over financial reporting as of March 31, 2023, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
The effectiveness of our internal control over financial reporting as of March 31, 2024, has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which is included herein. 99 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of Eagle Materials Inc.
Other Assets Other Assets are primarily composed of financing costs related to our Revolving Credit Facility, deferred expenses, and deposits. 70 Income Taxes We account for Income Taxes using the asset and liability method. The effect on deferred taxes of a change in tax rates is recognized in earnings in the period that includes the enactment date.
Income Taxes We account for Income Taxes using the asset and liability method. The effect on deferred taxes of a change in tax rates is recognized in earnings in the period that includes the enactment date.
We operate 30 readymix concrete batch plants and five aggregates processing plants in markets that are complementary to our cement network. 81 We operate five gypsum wallboard plants and a recycled paperboard mill. We distribute gypsum wallboard and recycled paperboard throughout the continental U.S., with the exception of the Northeast. We account for intersegment sales at market prices.
We operate five gypsum wallboard plants and a recycled paperboard mill. We distribute gypsum wallboard and recycled paperboard throughout the continental U.S., with the exception of the Northeast. We account for intersegment sales at market prices.
Bad debt expense was approximately $ 0.3 million, $ 0.3 million, and $ 0.7 million for the fiscal years ended March 31, 2023, 2022, and 2021, respectively.
Bad debt expense was approximately $ 0.3 million, $ 0.3 million, and $ 0.3 million for the fiscal years ended March 31, 2024, 2023, and 2022, respectively. Write-offs of accounts receivable were approximately $ 0.6 million, $ 0.1 million, and $ 1.6 million for the fiscal years ended March 31, 2024, 2023, and 2022, respectively.
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