Page 127 - Martin Marietta - 2023 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)

Revenue by Category. ervice revenues, which include paving operations located in California and Colorado, were $353.7 million,
$259.1 million and $287.6 million for the years ended December 31, 2022, 2021 and 2020, respectively. The following table
presents the Company’s total revenues by categoryfor each reportable segment:
Products and
years ended December 31 Services Freight Total
(in millions) 2022
East Group $ 2,324.1 $ 144.0 $ 2,468.1
West Group 3,128.4 260.2 3,388.6
Total Building Materials business 5,452.5 404.2 5,856.7
Magnesia Specialties 278.0 26.0 304.0
Total $ 5,730.5 $ 430.2 $ 6,160.7

2021
East Group $ 2,161.6 $ 141.4 $ 2,303.0
West Group 2,648.4 163.9 2,812.3
Total Building Materials business 4,810.0 305.3 5,115.3
Magnesia Specialties 274.7 24.0 298.7
Total $ 5,084.7 $ 329.3 $ 5,414.0

2020
East Group $ 1,826.6 $ 122.5 $ 1,949.1
West Group 2,384.6 153.5 2,538.1
Total Building Materials business 4,211.2 276.0 4,487.2
Magnesia Specialties 220.9 21.8 242.7
Total $ 4,432.1 $ 297.8 $ 4,729.9

Contract Balances. Costs in excess of billings relate to the conditional right to consideration for completed contractual
performance and are contract assets on the consolidated balance sheets. Costs in excess of billings are reclassified to accounts
receivable when the right to consideration becomes unconditional. Billings in excess of costs relate to customers invoiced in
advance of contractual performance and are contract liabilities on the consolidated balance sheets. The following table presents
information about the Company’s contract balances:
December 31
(in millions) 2022 2021
Costs in excess of billings $ 5.1 $ 4.3
Billings in excess of costs $ 10.5 $ 7.8

Revenues recognized from the beginning balance of contract liabilities for the years ended December 31, 2022 and 2021 were $7.7
million and $13.6 million, respectively.

Retainage, which primarily relates to the paving services, represents amounts that have been billed to customers but payment
withheld until final acceptance of the performance obligation by the customer. Included in Other current assetst on the Company’s
t
consolidated balance sheets, retainage was $13.4 million and $10.5 million at December 31, 2022 and 2021, respectively.

Note C: Business Combinations, Divestitures, Discontinued Operations and Assets and Liabilities Held for
Sale
Business Combinations
Total revenues and earnings from operations attributable to continuing operations acquired in 2021 (as subsequently described)
included in the consolidated statement of earnings were $338.6 million and $12.1 million, respectively, for the year ended
December 31, 2021. Total acquisition and integration expenses were $57.9 million for the year ended December 31, 2021 and
were primarily related to the acquisition of Lehigh Hanson, Inc.'s West Region business (Lehigh West Region).

Annual Report ♦ Page 23