Revenue | 2. Revenue The Company disaggregates revenue based on its operating and reportable segments. The Company’s operating and 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 September 30, 2024 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 1,390 – 1,363 – 2,753 Road Solutions (i) 3,909 – 1,432 – 5,341 Building & Infrastructure Solutions (ii) – 705 – 488 1,193 Outdoor Living Solutions – 1,052 – 176 1,228 Total revenues 5,299 1,757 2,795 664 10,515 Three months ended September 30, 2023 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 1,326 – 1,286 – 2,612 Road Solutions (i) 3,754 – 1,331 – 5,085 Building & Infrastructure Solutions (ii) – 687 – 520 1,207 Outdoor Living Solutions – 1,051 – 173 1,224 Total revenues 5,080 1,738 2,617 693 10,128 Nine months ended September 30, 2024 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 3,605 – 3,560 – 7,165 Road Solutions (i) 8,302 – 3,652 – 11,954 Building & Infrastructure Solutions (ii) – 1,933 – 1,509 3,442 Outdoor Living Solutions – 3,633 – 508 4,141 Total revenues 11,907 5,566 7,212 2,017 26,702 Nine months ended September 30, 2023 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 3,388 – 3,764 – 7,152 Road Solutions (i) 7,751 – 3,645 – 11,396 Building & Infrastructure Solutions (ii) – 1,935 – 1,679 3,614 Outdoor Living Solutions – 3,612 – 490 4,102 Total revenues 11,139 5,547 7,409 2,169 26,264 (i) Revenue from contracts with customers in the Road Solutions principal activities and products category that is recognized over time was: Three months ended Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Americas Materials Solutions 2,333 2,259 4,665 4,360 Europe Materials Solutions 572 570 1,439 1,501 Total revenue from contracts with customers 2,905 2,829 6,104 5,861 (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 Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Americas Building Solutions 17 19 66 53 Europe Building Solutions 111 123 374 424 Total revenue from contracts with customers 128 142 440 477 Contract assets were $1,004 million, $716 million and $1,005 million and contract liabilities were $495 million, $439 million and $404 million, at September 30, 2024, December 31, 2023 and September 30, 2023, respectively. The Company recognized revenue of $382 million and $328 million for the nine months ended September 30, 2024, and September 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 September 30, 2024, December 31, 2023 and September 30, 2023 amounting to $752 million and $252 million, $471 million and $245 million, and $790 million and $215 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 September 30, 2024, the Company had $4,069 million of transaction price allocated to remaining performance obligations. The majority of open contracts at September 30, 2024 are expected to close and revenue to be recognized within 12 months of the balance sheet date. |