Page 77 - 2019 Annual Report
P. 77

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

           Depreciation, depletion and amortization expense were as follows:

            years ended December 31
            (in millions)                                                           2019             2018
            Depreciation                                                        $        313.6      $     296.8
            Depletion                                                                     37.5             29.3
            Amortization                                                                  16.4             17.9
            Total                                                               $        367.5      $     344.0

           The increase in 2019 reflects a full year of the legacy Bluegrass operations versus the period from acquisition on April 28 to
           December 31 in 2018.

           Investing Activities
           Net cash used for investing activities was $385.9 million in 2019 and $1.95 billion in 2018.

           Property, plant and equipment capitalized by reportable segment, excluding acquisitions, was as follows:

            years ended December 31
            (in millions)                                                           2019              2018
            Mid‐America Group                                                   $        127.7     $      176.8
            Southeast Group                                                               45.3             41.6
            West Group                                                                   182.5            145.6
            Total Building Materials Business                                            355.5            364.0
            Magnesia Specialties                                                          20.0             12.5
            Corporate                                                                     12.1              4.8
            Total                                                               $        387.6     $      381.3

           Spending  in  2019  and  2018  for  the  Mid‐America  Group  reflects  the  ongoing  new  underground  mine  project  at  the  Fort
           Calhoun operation in Nebraska, which is expected to be completed and fully operational in 2022. The increase in spending in
           the West Group for 2019 primarily reflects the secondary plant construction at the Company’s Granite Canyon quarry in
           Wyoming. Magnesia Specialties capital spending in 2019 is primarily attributable to a kiln project at the Woodville, Ohio,
           facility.
           The  Company  paid  cash  of  $1.64  billion  for  acquisitions  in  2018,  primarily  for  the  purchase  of  Bluegrass.  There  were  no
           acquisitions in 2019.

           Pretax proceeds from divestitures and sales of surplus land and equipment were $8.4 million in 2019 and $69.1 million in
           2018. In 2018, the amount includes the divestitures of the heritage Martin Marietta Forsyth Quarry and the legacy Bluegrass
           Beaver Creek Quarry as part of an agreement with the U.S. DOJ, approved by the federal district court for the District of
           Columbia, which resolved all competition issues with respect to the Bluegrass acquisition.

           Financing Activities
           The Company used $604.1 million and $158.4 million of cash for financing activities during 2019 and 2018, respectively.

           Net repayments of long‐term debt were $350.1 million in 2019 and net borrowings of long‐term debt were $89.9 million in
           2018.  The  Company  repaid  the  $300  million  aggregate  principal  amount  of  Floating  Rate  Senior  Notes  due  2019  on  its
           maturity date.
           The Company repurchased 0.4 million shares of its common stock for a total cost of $98.2 million, or $236.04 per share, in
           2019 and 0.5 million shares of its common stock for a total cost of $100.4 million, or $192.61 per share, in 2018.
           For the years ended December 31, 2019 and 2018, the Board of Directors approved total cash dividends on the Company’s
           common stock of $2.06 per share and $1.84 per share, respectively. Total cash dividends were $129.8 million in 2019 and
           $116.4 million in 2018.
           Cash provided by issuances of common stock, which represents the exercises of stock options, excluding the impact of shares
           withheld for taxes, was $13.7 million and $7.3 million in 2019 and 2018, respectively.




           Celebrating 25 Years as a Public Company                                         Annual Report  ♦  Page 75
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