Page 146 - Martin Marietta - 2024 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
Future lease payments as of December 31, 2023 are as follows:

Operating Finance
(in millions) Leases Leases
2024 $ 69.1 $ 25.0
2025 60.8 21.1
2026 52.2 13.9
2027 42.1 12.8
2028 36.4 12.0
Thereafter 254.3 171.5
Total lease payments 514.9 256.3
Less: imputed interest (119.4) (55.9)
Present value of lease payments 395.5 200.4
Less: leases classified as held for sale (15.5) (0.8)
Less: current lease obligations (53.3) (20.1)
Total long‐term lease obligations $ 326.7 $ 179.5

Note M: Shareholders’ Equity
The authorized capital structure of the Company includes 100.0 million shares of common stock, with a par value of $0.01 per
share. At December 31, 2023, approximately 1.1 million common shares were reserved for issuance under stock‐based award
plans.
Pursuant to authority granted byits Board ofDirectors, the Company can repurchase up to 20.0 million shares of common stock.
During each of 2023 and 2022, the Company repurchased 0.4 million shares of common stock. The Company made no share
repurchases during 2021. Future share repurchases are at the discretion of management. At December 31, 2023, 12.7 million
shares of common stock were remaining under the Company’s repurchase authorization.

Note N: Commitments and Contingencies

Legal and Administrative Proceedings. The Company is engaged in certain legal and administrative proceedings incidental to its
normal business activities. In the opinion of management and counsel, based upon currently available facts, the likelihood is
remote that the ultimate outcome of any litigation and other proceedings, including those pertaining to environmental matters
(see Note A), relating to the Company and its subsidiaries, will have a material adverse effect on the overall results of the
Company’s operations, its cash flows or its financial position.
Asset Retirement Obligations. The Company incurs reclamation and teardown costs as part of its mining and production processes.
Estimated future obligations are discounted to their present value and accreted to their projected future obligations via charges
to operating expenses. Additionally, the fixed assets recorded concurrently with the liabilities are depreciated over the period until
retirement activities are expected to occur. Total accretion and depreciation expenses for 2023, 2022 and 2021 were $17.1 million,
e
$15.5 million and $11.9 million, respectively, and are included in Other operating income, net, in the consolidated statements of
earnings.
The following shows the changes in asset retirement obligations:
years ended December 31
(in millions) 2023 2022 2021
Balance at beginning of year $ 380.0 $ 306.8 $ 153.8
Accretion expense 10.9 10.6 7.2
Liabilities incurred and liabilities assumed in business combinations 33.8 78.6 179.0
Liabilities settled (27.7) (14.1) (5.2)
Revisions in estimated cash flows (12.5) (3.1) 3.5
Liabilities reclassified from/(to) assets held for sale 15.8 1.2 (31.5)
Balance at end of year $ 400.3 $ 380.0 $ 306.8

ge 44 ♦ 2023 Annual Report