Page 120 - Martin Marietta - 2024 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
in a paving contract is relatively consistent with the performance of the related paving services. When the Company arranges third‐
party freight to deliver products to customers, the Company has elected the delivery to be a fulfillment activity rather than a
separate performance obligation. Further, the Company acts as a principal in the delivery arrangements and, as required by
t
r
Accounting Standards Codification 606, Revenues fromContracts with Customers (ASC 606), the related revenues and costs are
t
r
presented gross in the consolidated statements of earnings and are recognized consistently with the timing of the product
revenues.
Cash, Cash Equivalents and Restricted Cash. Cash equivalents are comprised of highly‐liquid instruments with original maturities
of three months or less from the date of purchase.
As of December 31, 2023 and 2022, the Company had $10.5 million and $0.8 million, respectively, of restricted cash, 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 is 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 cash at the end of the 180 days is transferred to unrestricted accounts of the Company and used for general corporate
purposes.
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:
December 31
(in millions) 2023 2022 2021
Cash and cash equivalents $ 1,271.8 $ 358.0 $ 258.4
Restricted cash 10.5 0.8 0.5
Total cash, cash equivalents and restricted cash
presented in the consolidated statements of cash flows $ 1,282.3 $ 358.8 $ 258.9

Restricted Investments. At December 31, 2022, the Company had $704.6 million of restricted investments, representing assets
irrevocably transferred to an escrow trust account during 2022 to satisfy and discharge the Company's $700.0 million of 0.650%
Senior Notes due 2023 (the 0.650% Senior Notes) (see Note G). The assets in the escrow trust account could not be used for any
purpose other than to satisfy the remaining interest payments and to repay the principal amount of the 0.650% Senior Notes that
matured on July 15, 2023. The assets transferred to the escrow trust account were invested in a U.S. Treasury securities fund (see
Note H) and investment returns on those trust assets were for the account of the Company (after satisfaction of all amounts
payable in connection with the 0.650% Senior Notes). The Company consolidated the trust account on its consolidated balance
sheet at December 31, 2022. On July 17, 2023, funds in the escrow trust account were applied to satisfy the remaining principal
and interest payments and the 0.650% Senior Notes have been paid in full. There were no restricted investments at December 31,
2023.
Accounts Receivable. Accounts receivable are stated at cost. The Company does not typically charge interest on customer accounts
receivable. The Company records an allowance for credit losses, which includes a provision for probable losses based on historical
write‐offs, adjusted for current conditions as deemed necessary, and a specific reserve for accounts deemed at risk. The allowance
is the Company’s estimate for receivables as of the balance sheet date that ultimately will not be collected. Any changes in the
allowance are reflected in earningsin the period in which the change occurs. The Company writes‐off accounts receivable when it
becomes probable, based upon customerfacts and circumstances, that such amounts will not be collected.
Inventories Valuation. Finished products and in‐process inventories are stated at the lower of cost or net realizable value using
standard costs, which approximate the first‐in, first‐out method. Carrying value for parts and supplies are determined by the
weighted‐average cost method. The Company records an allowance for finished product inventories based on an analysis offuture
demand and inventory on hand in excess of one year's sales using an average of the last two years of sales. The Company also
establishes an allowance for parts overfive years old and supplies over a year old.
Post‐production stripping costs, which represent costs of removing overburden and waste materials to access mineral deposits,
are a component ofinventory production costs and recognized as incurred.

ge 18 ♦ 2023 Annual Report