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Significant Accounting Policies | 6 Months Ended
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Jun. 30, 2024
Accounting Policies [Abstract] |
Significant Accounting Policies | 1. Significant Accounting Policies Organization Martin Marietta Materials, Inc. (the Company or Martin Marietta) is a natural resource-based building materials company. As of June 30, 2024, the Company supplies aggregates (crushed stone, sand and gravel) through its network of approximately 380 quarries, mines and distribution yards in 28 states, Canada and The Bahamas. Martin Marietta also provides cement and downstream products and services, namely, ready mixed concrete, asphalt and paving, in vertically-integrated structured markets where the Company also has a leading aggregates position. The Company’s heavy-side building materials are used in infrastructure, nonresidential and residential construction projects. Aggregates are also used in agricultural, utility and environmental applications and as railroad ballast. The aggregates, cement and ready mixed concrete and asphalt and paving product lines are reported collectively as the “Building Materials” business. The Company’s Building Materials business includes two reportable segments: the East Group and the West Group.
BUILDING MATERIALS BUSINESS
Reportable Segments |  | East Group |  | West Group
Operating Locations |  | Alabama, Florida, Georgia, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia, Nova Scotia and The Bahamas |  | Arizona, Arkansas, California, Colorado, Louisiana, Oklahoma, Texas, Utah, Washington and Wyoming
Product Lines |  | Aggregates and Asphalt |  | Aggregates, Cement and Ready Mixed Concrete, Asphalt and Paving
The Company’s Magnesia Specialties business, which represents a separate reportable segment, has manufacturing facilities in Manistee, Michigan, and Woodville, Ohio. The Magnesia Specialties business produces magnesia-based chemicals products used in industrial, agricultural and environmental applications, and dolomitic lime sold primarily to customers for steel production and soil stabilization. Basis of Presentation and Use of Estimates The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and in Article 10 of Regulation S-X. The Company has continued to follow the accounting policies set forth in the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, the interim consolidated financial information provided herein reflects all adjustments, consisting of normal recurring accruals, necessary for a fair statement of the results of operations, financial position and cash flows for the interim periods. The consolidated results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results expected for other interim periods or the full year. The consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The preparation of the Company’s consolidated financial statements requires management to make certain estimates and assumptions about future events. As future events and their effects cannot be fully determined with precision, actual results could differ significantly from estimates. Changes in estimates are reflected in the consolidated financial statements in the period in which the change in estimate occurs. Restricted Cash At December 31, 2023, the Company had restricted cash of $10 million, which was invested in an account designated for the purchase of like-kind exchange replacement assets under Section 1031 of the Internal Revenue Code and related IRS procedures (Section 1031). The Company was restricted from utilizing the cash for purposes other than the purchase of qualified assets for 180 days from receipt of the proceeds from the sale of the exchanged property. Any unused restricted cash at the end of the 180 days was transferred to unrestricted accounts of the Company and used for general corporate purposes. There was no restricted cash at June 30, 2024. The statements of cash flows reflect cash flow changes and balances for cash, cash equivalents and restricted cash on an aggregated basis. The following table reconciles cash, cash equivalents and restricted cash as reported on the consolidated balance sheets to the aggregated amounts presented on the consolidated statements of cash flows:
|  | June 30, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
|  | (Dollars in Millions) |
Cash and cash equivalents |  | $ | 109 |  |  | $ | 1,272 |
Restricted cash |  |  | — |  |  |  | 10 |
Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows |  | $ | 109 |  |  | $ | 1,282 |
Consolidated Comprehensive Earnings and Accumulated Other Comprehensive Loss Consolidated comprehensive earnings consist of consolidated net earnings, adjustments for the funded status of pension and postretirement benefit plans and foreign currency translation adjustments, and are presented in the Company’s consolidated statements of earnings and comprehensive earnings. Consolidated comprehensive earnings attributable to Martin Marietta are as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | (Dollars in Millions) |
Net earnings attributable to Martin Marietta |  | $ | 294 |  |  | $ | 348 |  |  | $ | 1,339 |  |  | $ | 469 |
Other comprehensive earnings, net of tax |  |  | 1 |  |  |  | 2 |  |  |  | 1 |  |  |  | 3 |
Consolidated comprehensive earnings attributable to Martin Marietta |  | $ | 295 |  |  | $ | 350 |  |  | $ | 1,340 |  |  | $ | 472 |
Accumulated other comprehensive loss consists of unrecognized gains and losses related to the funded status of the pension and postretirement benefit plans and foreign currency translation adjustments and is presented on the Company’s consolidated balance sheets. The components of the changes in accumulated other comprehensive loss, net of tax, are as follows:
|  | (Dollars in Millions) |
|  | Pension and Postretirement Benefit Plans |  |  | Foreign Currency |  |  | Accumulated Other Comprehensive Loss |
|  | Three Months Ended June 30, 2024 |
Balance at beginning of period |  | $ | (47 | ) |  | $ | (2 | ) |  | $ | (49 | )
Amounts reclassified from accumulated other comprehensive loss, net of tax |  |  | 1 |  |  |  | — |  |  |  | 1 |
Other comprehensive earnings, net of tax |  |  | 1 |  |  |  | — |  |  |  | 1 |
Balance at end of period |  | $ | (46 | ) |  | $ | (2 | ) |  | $ | (48 | )
|  | Three Months Ended June 30, 2023 |
Balance at beginning of period |  | $ | (35 | ) |  | $ | (2 | ) |  | $ | (37 | )
Other comprehensive earnings before reclassifications, net of tax |  |  | — |  |  |  | 1 |  |  |  | 1 |
Amounts reclassified from accumulated other comprehensive loss, net of tax |  |  | 1 |  |  |  | — |  |  |  | 1 |
Other comprehensive earnings, net of tax |  |  | 1 |  |  |  | 1 |  |  |  | 2 |
Balance at end of period |  | $ | (34 | ) |  | $ | (1 | ) |  | $ | (35 | )
|  | (Dollars in Millions) |
|  | Pension and Postretirement Benefit Plans |  |  | Foreign Currency |  |  | Accumulated Other Comprehensive Loss |
|  | Six Months Ended June 30, 2024 |
Balance at beginning of period |  | $ | (48 | ) |  | $ | (1 | ) |  | $ | (49 | )
Other comprehensive loss before reclassifications, net of tax |  |  | — |  |  |  | (1 | ) |  |  | (1 | )
Amounts reclassified from accumulated other comprehensive loss, net of tax |  |  | 2 |  |  |  | — |  |  |  | 2 |
Other comprehensive earnings (loss), net of tax |  |  | 2 |  |  |  | (1 | ) |  |  | 1 |
Balance at end of period |  | $ | (46 | ) |  | $ | (2 | ) |  | $ | (48 | )
|  | Six Months Ended June 30, 2023 |
Balance at beginning of period |  | $ | (36 | ) |  | $ | (2 | ) |  | $ | (38 | )
Other comprehensive earnings before reclassifications, net of tax |  |  | — |  |  |  | 1 |  |  |  | 1 |
Amounts reclassified from accumulated other comprehensive loss, net of tax |  |  | 2 |  |  |  | — |  |  |  | 2 |
Other comprehensive earnings, net of tax |  |  | 2 |  |  |  | 1 |  |  |  | 3 |
Balance at end of period |  | $ | (34 | ) |  | $ | (1 | ) |  | $ | (35 | )
Changes in net noncurrent deferred tax assets related to accumulated other comprehensive loss are as follows:
|  | Pension and Postretirement Benefit Plans |
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | (Dollars in Millions) |
Balance at beginning of period |  | $ | 53 |  |  | $ | 50 |  |  | $ | 54 |  |  | $ | 50 |
Tax effect of other comprehensive earnings |  |  | — |  |  |  | (1 | ) |  |  | (1 | ) |  |  | (1 | )
Balance at end of period |  | $ | 53 |  |  | $ | 49 |  |  | $ | 53 |  |  | $ | 49 |
Reclassifications out of accumulated other comprehensive loss are as follows:
|  | Three Months Ended |  |  | Six Months Ended |  |  | Affected line items in the consolidated
|  | June 30, |  |  | June 30, |  |  | statements of earnings
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |  |  | and comprehensive earnings
|  | (Dollars in Millions) |  |  |
Pension and postretirement benefit plans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of prior service cost |  | $ | 2 |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 4 |  |  | Other nonoperating income, net
Tax effect |  |  | (1 | ) |  |  | (1 | ) |  |  | (1 | ) |  |  | (2 | ) |  | Income tax expense
Total |  | $ | 1 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 2 |  |  |
Earnings per Common Share The numerator for basic and diluted earnings per common share is net earnings attributable to Martin Marietta. The denominator for basic earnings per common share is the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is computed assuming that the weighted-average number of common shares is increased by the conversion, using the treasury stock method, of awards to be issued to employees and nonemployee members of the Company’s Board of Directors under certain stock-based compensation arrangements if the conversion is dilutive. For the three and six months ended June 30, 2024 and 2023, the diluted per-share computations reflect the number of common shares outstanding including the number of additional shares that would have been outstanding if the potentially dilutive common shares had been issued. The following table reconciles the denominator for basic and diluted earnings from continuing operations per common share:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | (In Millions) |
Basic weighted-average common shares outstanding |  |  | 61.5 |  |  |  | 61.9 |  |  |  | 61.6 |  |  |  | 62.0 |
Effect of dilutive employee and director awards |  |  | 0.1 |  |  |  | 0.2 |  |  |  | 0.2 |  |  |  | 0.2 |
Diluted weighted-average common shares outstanding |  |  | 61.6 |  |  |  | 62.1 |  |  |  | 61.8 |  |  |  | 62.2 |
New Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires a public entity to disclose the title and position of the Chief Operating Decision Maker. The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This ASU requires companies to apply retrospectively to all prior periods presented in the financial statements. The ASU will impact the Company's disclosures, but will have no impact on its results of operations, cash flows or financial condition. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which focuses on the rate reconciliation and income taxes paid. ASU 2023-09 requires public entities to disclose, on an annual basis, a tabular tax rate reconciliation using both percentages and currency amounts, broken out into specified categories. Certain reconciling items are further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. Additionally, all entities are required to disclose income taxes paid, net of refunds received, disaggregated by federal, state, local, and foreign taxes and by individual jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. The ASU also requires additional qualitative disclosures. ASU 2023-09 is effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. The ASU will impact the Company's income tax disclosures, but will have no impact on its results of operations, cash flows or financial condition. Reclassifications Certain reclassifications have been made in the Company's financial statements of the prior year to conform to the current-year presentation. The reclassifications had no impact on the Company’s previously reported results of operations, financial condition or cash flows.

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- Definition The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 275 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/275/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 250 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/250/tableOfContent + Details
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