Page 151 - Martin Marietta - 2024 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
Performance Obligations. Performance obligations are contractual promises to transfer or provide a distinct good or service for a
stated price. The Company’s product sales agreements are single‐performance obligations that are satisfied at a point in time.
Performance obligations within paving service agreements are satisfied over time, primarily ranging from one day to two years.
Customer payment terms are generally 30 days from invoice date. Customer payments for the paving operations are based on a
contractual billing schedule and are due 30 days from invoice date.

Future revenues from unsatisfied performance obligations at December 31, 2023, 2022 and 2021were $250.5 million, $239.2
million and $153.9 million, respectively, where the remaining periods to complete these obligations ranged from one month to 22
months at December 31, 2023, two months to 34 months at December 31, 2022 and three months to 12 months at December 31,
2021.

Service Revenues. Service revenues, which include paving operations located in California and Colorado, were $410.7 million,
$353.7 million and $259.1 million for the years ended December 31, 2023, 2022 and 2021, respectively.

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) 2023 2022
Costs in excess of billings $ 5.3 $ 5.1
Billings in excess of costs $ 10.3 $ 10.5
Revenues recognized from the beginning balance of contract liabilities for the years ended December 31, 2023 and 2022 were
$10.3 million and $7.7 million, respectively.
Retainage. 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 assets on the
Company’s consolidated balance sheets, retainage was $16.6 million and $13.4 million at December 31, 2023 and 2022,
respectively.

Note Q: Supplemental Cash Flow Information
ncash investing and financing activities are as follows:
years ended December 31
(in millions) 2023 2022 2021
Accrued liabilities for purchases of property, plant and equipment $ 128.4 $ 152.4 $ 92.4
Right‐of‐use assets obtained in exchange for new operating lease
liabilities $ 63.4 $ 27.2 $ 65.6
Right‐of‐use assets obtained in exchange for new finance lease
liabilities $ 21.9 $ 11.7 $ 202.3
Remeasurement of operating lease right‐of‐use assets $ 10.3 $ (2.9) $ (12.8)
Remeasurement of finance lease right‐of‐use assets $ — $ (12.6) $ —
Acquisition of assets through asset exchange $ 5.2 $ — $ —
Accounts payable relieved in connection with sale of property, plant
and equipment $ 0.7 $ — $ —

23 Annual Report ♦ Page 49