Page 127 - Martin Marietta - 2025 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
presentedgross in theconsolidatedstatementsof earningsand are recognizedconsistently withthe timing of theproduct
revenues.
Cash, Cash Equivalents and Restricted Cash. Cash equivalentsare comprisedof highly-liquid instruments with original maturities
of three monthsorless fromthe date of purchase.
AsofDecember31, 2023,the Company had $10 millionofrestrictedcash, whichwas invested in an account designated forthe
purchaseoflike-kind exchange replacementassetsunder Section1031of the Internal Revenue Code and related IRSprocedures
(Section 1031). The Companywas restricted from utilizingthe cash forpurposesother than the purchaseof qualifiedassets for
180 daysfrom receiptof the proceeds from thesaleof the exchangedproperty. Any unused restrictedcashatthe endof the 180
days was transferredtounrestrictedaccountsof the Companyand used forgeneral corporatepurposes. As of December 31,2024,
the Companyhad no restricted cash.
Thestatementsof cash flows reflectcash flowchanges andbalances for cash,cashequivalents and restrictedcashonan
aggregated basis. The following table reconcilescash, cash equivalentsand restricted cash as reported on theconsolidatedbalance
sheetstothe aggregated amountspresented on theconsolidatedstatementsof cashflows:
December 31
(in millions) 2024 2023 2022
Cash andcashequivalents $ 670 $ 1,272 $ 358
Restricted cash — 10 1
Totalcash, cash equivalentsand restricted cash
presented inthe consolidated statements of cash flows $ 670 $ 1,282 $ 359

Accounts Receivable. Accounts receivableare stated at cost. The Company doesnot typically charge interest on customer accounts
receivable. The Companyrecords an allowance for credit losses, which includesa provision for probable lossesbased on historical
write-offs, adjusted forcurrent conditionsasdeemednecessary, and aspecific reserve foraccountsdeemedat risk. Theallowance
isthe Company’sestimate for receivablesasof the balancesheet date that ultimately will not becollected.Any changes inthe
allowance are reflected in earnings in the period inwhich thechangeoccurs. The Company writes off accounts receivable when it
becomes probable,based upon customerfactsand circumstances, that such amounts willnot be collected.
Inventories Valuation. Finished products and in-process inventories arestatedatthe lowerof costornet realizable valueusing
standard costs, whichapproximate the first-in, first-out method.Carrying value forparts andsuppliesare determined by the
weighted-average cost method. The Company records an allowance forfinished product inventories basedonananalysisoffuture
demandand inventory onhand inexcessof one year's salesusing an averageof the last two years of sales. The Company also
establishesanallowance forparts overfive yearsold andsuppliesovera year old.
Post-productionstripping costs, which represent costsofremovingoverburdenand waste materials to access mineraldeposits,
area componentofinventory production costsand recognized as incurred.

Property, Plant and Equipment. Property,plant andequipmentare stated at cost.
Theestimated servicelives forproperty, plantand equipmentare as follows:
ClassofAssets RangeofService Lives
Buildings 5to30 years
Machinery & Equipment 2to20 years
Land Improvements 5to60 years

The Company begins capitalizing quarry developmentcosts at apoint when reserves aredeterminedtobe provenorprobable,
economicallymineableand when demand supports investment inthe market. Capitalizationof these costsceases whenproduction
commences. Capitalized quarry developmentcosts areclassifiedasland improvementsand depreciatedoverthe lifeof the
reserves.
The Company reviews relevant facts andcircumstances to determinewhether to capitalizeorexpense pre-production stripping
costs when additional pits aredeveloped at an existing quarry. If the additional pitoperates ina separate anddistinctareaof the
quarry,these costsare capitalized as quarry developmentcosts anddepreciated over thelifeof the uncovered reserves.
Additionally, a separate asset retirementobligationiscreated foradditionalpits whenthe liability isincurred. Once apit enters
the production phase, all post-productionstripping costsare chargedto inventory production costsas incurred.

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