Revenue | 2. Revenue The Company disaggregates revenue based on its operating and reportable segments. The Company’s reportable segments are: (1) Americas Materials Solutions, (2) Americas Building Solutions, (3) Europe Materials Solutions, and (4) Europe Building Solutions. Revenue is disaggregated by principal activities and products. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions. The vertically integrated Essential Materials businesses manufacture and supply aggregates and cement for use in a range of construction and industrial applications. Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure. Building & Infrastructure Solutions connect, protect and transport critical water, energy and telecommunications infrastructure and deliver complex commercial building projects. Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces. Three months ended June 30, 2024 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 1,312 - 1,207 - 2,519 Road Solutions (i) 3,094 - 1,197 - 4,291 Building & Infrastructure Solutions (ii) - 680 - 528 1,208 Outdoor Living Solutions - 1,436 - 200 1,636 Total revenues 4,406 2,116 2,404 728 9,654 Three months ended June 30, 2023 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 1,255 - 1,381 - 2,636 Road Solutions (i) 2,909 - 1,233 - 4,142 Building & Infrastructure Solutions (ii) - 679 - 596 1,275 Outdoor Living Solutions - 1,469 - 187 1,656 Total revenues 4,164 2,148 2,614 783 9,709 Six months ended June 30, 2024 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 2,215 - 2,197 - 4,412 Road Solutions (i) 4,393 - 2,220 - 6,613 Building & Infrastructure Solutions (ii) - 1,228 - 1,021 2,249 Outdoor Living Solutions - 2,581 - 332 2,913 Total revenues 6,608 3,809 4,417 1,353 16,187 Six months ended June 30, 2023 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 2,062 - 2,478 - 4,540 Road Solutions (i) 3,997 - 2,314 - 6,311 Building & Infrastructure Solutions (ii) - 1,248 - 1,159 2,407 Outdoor Living Solutions - 2,561 - 317 2,878 Total revenues 6,059 3,809 4,792 1,476 16,136 (i) Revenue from contracts with customers in the Road Solutions principal activities and products category that is recognized over time was: Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Americas Materials Solutions 1,736 1,606 2,332 2,101 Europe Materials Solutions 453 502 867 931 Total revenue from contracts with customers 2,189 2,108 3,199 3,032 (ii) Revenue from contracts with customers in the Building & Infrastructure Solutions principal activities and products category that is recognized over time was: Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Americas Building Solutions 26 18 49 34 Europe Building Solutions 131 152 263 301 Total revenue from contracts with customers 157 170 312 335 Contract assets were $887 million, $716 million and $906 million and contract liabilities were $448 million, $439 million and $329 million, at June 30, 2024, December 31, 2023 and June 30, 2023, respectively. The Company recognized revenue of $339 million and $270 million for the six months ended June 30, 2024, and June 30, 2023, respectively, which was previously included in the contract liability balance at December 31, 2023 and December 31, 2022, respectively. Contract assets include unbilled revenue and retentions held by customers in respect of construction contracts at June 30, 2024, December 31, 2023 and June 30, 2023 amounting to $664 million and $223 million, $471 million and $245 million, and $723 million and $183 million, respectively. Unbilled receivables represent the estimated value of unbilled work for projects with performance obligations recognized over time. Retentions represent amounts that have been billed to customers but payment is withheld until final acceptance of the performance obligation by the customer. Retentions that have been billed, but are not due until completion of performance and acceptance by customers, are generally expected to be collected within one year. The Company applies the practical expedient and does not adjust any of its transaction prices for the time value of money. On June 30, 2024, the Company had $4,032 million of transaction price allocated to remaining performance obligations. The majority of open contracts at June 30, 2024 are expected to close and revenue to be recognized within 12 months of the balance sheet date. |