Page 180 - Martin Marietta - 2024 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
Mineral reserves and mineral interests, when acquired in connection with a business combination, are valued using an excess
earnings approach for the life of the proven and probable reserves.
The Company uses proven and probable reserves as the denominator in its units‐of‐production calculation to record depletion
expense for its mineral reserves and mineral interests. For 2023, depletion expense was $52.8 million.
The Company begins capitalizing quarry development costs at a point when reserves are determined to be proven or probable,
economically mineable and when demand supports investment in the market. Capitalization of these costs ceases when production
commences. Capitalized quarry development costs are classified as land improvements.
New mining areas may be developed at existing quarries in order to access additional reserves. When this occurs, management
reviews the facts and circumstances of each situation in making a determination as to the appropriateness of capitalizing or
expensing the related pre‐production development costs. If the additional mining location operates in a separate and distinct area
of a quarry, the costs are capitalized as quarry development costs and depreciated over the life of the uncovered reserves. Further,
a separate asset retirement obligation is created for additional mining areas when the liability is incurred. Once a new mining area
enters the production phase, all post‐production stripping costs are expensed as incurred as periodic inventory production costs.
Useful lives of the assets can vary depending on factors, including production levels, geographic location, portability and
maintenance practices. Additionally, climate and inclement weather can reduce the useful life of an asset. Historically, the
Company has not recognized significant losses on the disposal or retirement offixed assets.

Forward‐Looking Statements – Safe Harbor Provisions Under the Private Securities Litigation Reform Act
of 1995

Ifyou are interested in Martin Marietta stock, management recommends that, at a minimum,you read the Company’s current
annual report and Forms 10‐K, 10‐Q and 8‐K reports to the Securities and Exchange Commission (SEC) over the past year. The
Company’s recent proxy statement for the annual meeting of shareholders also contains important information. These and other
materials that have been filed with the SEC are accessible through the Company’s website at www.martinmarietta.com and are
also available at the SEC’s website at www.sec.gov. You may also write or call the Company’s Corporate Secretary, who will provide
copies of such reports.

Investors are cautioned that all statements in this Annual Report that relate to the future involve risks and uncertainties, and are
based on assumptions that the Company believes in good faith are reasonable but which may be materially different from actual
results. These statements, which are forward‐looking statements within the meaning of Section 21E of the Securities Exchange Act
of 1934 and 27A of the Securities Act of 1933, and are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, provide the investorwith the Company’s expectations orforecasts offuture events. You can identify
these statements by the fact that they do not relate only to historical or current facts. They may use words such as “anticipate,”
“may,” “expect,” “should,” “believe,” “project,” “intend,” “will,” and other words of similar meaning in connection with future
events orfuture operating orfinancial performance. In addition to the statements included in this report, we mayfrom time to
time make other oral orwritten forward‐looking statements in other filings under the Securities Exchange Act of 1934 or in other
public disclosures. Any or all of management’s forward‐looking statements here and in other publications may turn out to be
wrong.
These forward‐looking statements are subject to risks and uncertainties, and are based on assumptions that may be materially
different from actual results, and include, but are not limited to:
 the ability of the Company to face challenges, including shipment declines resulting from economic events beyond the
Company's control;
 a widespread decline in aggregates pricing, including a decline in aggregates shipment volume negatively affecting
aggregates price;
 the history of both cement and ready mixed concrete being subject to significant changes in supply, demand and price
fluctuations;
 the termination, capping and/or reduction or suspension of the federal and/or state fuel tax(es) or other revenue related
to public construction;
 the level and timing offederal, state or local transportation or infrastructure or public projects funding, most particularly
in Texas, North Carolina, Colorado, California, Georgia, Minnesota, Arizona, Iowa, Florida and Indiana;

Page 78 ♦ 2023 Annual Report