Page 134 - Martin Marietta - 2024 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
Note I: Income Taxes

The components of the Company’s income tax expense from continuing operations are as follows:
years ended December 31
(in millions) 2023 2022 2021
Federal income taxes:
Current $ 264.0 $ 174.9 $ 66.3
Deferred (11.4) 18.0 61.4
Total federal income taxes 252.6 192.9 127.7
State income taxes:
Current 42.7 35.1 18.7
Deferred (3.0) 5.3 6.5
Total state income taxes 39.7 40.4 25.2
Foreign income taxes:
Current 0.2 1.2 —
Deferred — 0.3 0.3
Total foreign income taxes 0.2 1.5 0.3
Income tax expense $ 292.5 $ 234.8 $ 153.2

The Company generated foreign pretax earnings of $8.1 million, a loss of $2.3 million and earnings of $7.5 million for the years
ended December 31, 2023, 2022 and 2021, respectively.

The Company’s effective income tax rate on continuing operations varied from the statutory United States income tax rate because
of the following tax differences:
years ended December 31 2023 2022 2021
atutory income tax rate 21.0% 21.0% 21.0%
(Reduction) increase resulting from:
Effect of statutory depletion (2.3) (2.4) (3.5)
State income taxes, net of federal tax benefit 2.1 2.9 2.3
Federal tax credits (1.0) (0.9) (1.4)
Other items (0.2) 0.9 (0.5)
Effective income tax rate 19.6% 21.5% 17.9%

The higher 2022 effective tax rate versus 2023 and 2021 was primarily driven by the impact of the divestiture of the Colorado and
Central Texas ready mixed concrete businesses.
The statutory depletion deduction for all years is calculated as a percentage of sales, subject to certain limitations. Due to these
limitations, the impact of changes in the sales volumes and earnings may not proportionately affect the Company’s statutory
depletion deduction and the corresponding impact on the effective income tax rate.
In 2023, 2022, and 2021, the Company financed third‐party railroad track maintenance. In exchange, the Company received federal
income tax credits and tax deductions.

ge 32 ♦ 2023 Annual Report