Page 149 - Martin Marietta - 2023 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)

Company may incur from this agreement. The Company holds a lien on the affiliate’s membership interest in a joint venture as
collateral for payment under the revolving line of credit.
At December 31, 2022 and 2021, the Company had a $6.0 million interest‐only note receivable outstanding from this
unconsolidated affiliate. In January 2022, the parties extended the maturity date to December 31, 2024. The interest rate is one‐
month LIBOR plus a current spread of 1.625%.
Purchase Commitments. The Company had purchase commitments for property, plant and equipment of $130.4 million as of
December 31, 2022. The Company also had other purchase obligations related to energy and service contracts of $198.1 million
as of December 31, 2022. The Company’s contractual purchase commitments as of December 31, 2022 are as follows:
(in millions)
2023 $ 196.2
2024 35.0
2025 24.8
2026 10.5
2027 8.5
Thereafter 53.5
Total $ 328.5

Capital expenditures in 2022, 2021 and 2020 that were purchase commitments as of the prior year end were $89.6 million, $99.0
million and $77.0 million, respectively.

In October 2022, the Company entered into a commitment for 691 railcars at an aggregate value of $75.8 million.
Contracts of Affreightment and Royalty Commitments. Future minimum contracts of affreightment and royalty commitments for
all noncancelable agreements that are not accounted for as leases on the Company’s consolidated balance sheet as of
December 31, 2022 are as follows:
Contracts of Royalty
(in millions) Affreightment Commitments
2023 $ 28.1 $ 24.1
2024 16.9 15.4
2025 17.1 12.8
2026 17.4 10.9
2027 17.7 10.3
Thereafter — 82.8
Total $ 97.2 $ 156.3

Employees. Approximately 13% of the Company’s employees are represented by a labor union. All such employees are hourly
employees. The Company maintains collective bargaining agreements relating to the union employees within the Building
Materials business and Magnesia Specialties segment. All of the hourly employees of the Magnesia Specialties segment, located
in Manistee, Michigan, and Woodville, Ohio, are represented by labor unions. The Woodville collective bargaining agreement
expires in June 2026. The Manistee collective bargaining agreement expires in August 2027.

Note P: Segments
As of December 31, 2022, the Building Materials business is comprised offour divisions that represent individual operating
segments. These operating segments are consolidated into two reportable segments, the East Group and the West Group, for
financial reporting purposes as they meet the aggregation criteria. The Magnesia Specialties business represents an individual
operating and reportable segment. The accounting policies used for segment reporting are the same as those described in Note A.
The Chief Operating Decision Maker’s evaluation of performance and allocation of resources are based primarily on earnings from
operations. Consolidated earnings from operations include total revenues less cost of revenues; selling, general and administrative
expenses; acquisition and integration expenses; other operating income and expenses, net; and exclude interest expense; other
nonoperating income and expenses, net; and income tax expense. Corporate loss from operations primarily includes depreciation;
expenses for corporate administrative functions; acquisition and integration expenses; and other nonrecurring income and
expenses not attributable to operations of the Company's other operating segments. All long‐term debt and related interest
expense are held at Corporate.

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