Page 130 - Martin Marietta - 2025 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
Income Taxes. The Company uses theliabilitymethodtodetermine itscurrent anddeferred incomes taxes. Deferred incometaxes,
net,onthe consolidated balancesheets reflect thenet tax effectsof temporary differencesbetween thecarrying amountsof
assets andliabilities forfinancial reporting purposesand theamounts used for incometax purposes. Theeffect of changes in
enacted taxrates on deferred incometax assets andliabilities ischarged or credited to income tax expense in the periodof
enactment.

The Company appliesthe proportional amortization method to equity investments in renewable energy tax credit (RETC) programs
that meet the following specifiedcriteria: it is probable that the incometax creditsallocable to the Company will be available; the
Company doesnot have theability toexercisesignificant influenceoverthe operating and financialpoliciesof the underlying
project; substantially allof the projectedbenefitsare from income tax credits andother income tax benefits, as determined on a
discountedbasis;the Company'sprojected yieldbased solely on thecash flows from the incometax creditsand other incometax
benefits is positive; and the Company is alimited liabilityinvestor inthe limited liability entityfor both legaland tax purposesand
its liabilityislimited to itscapital investment.Underthe proportional amortization method,the equity investment is amortized in
proportiontothe income tax credits andother income tax benefits received, with theamortizationexpense andthe income tax
benefitspresented on anet basis inthe line item Income taxexpense in theconsolidatedstatementsof earnings. The RETC
t
t
investments are included inthe line item Othernoncurrent assets on theconsolidatedbalance sheets andthe line item Investments
inlimited liability company on theconsolidated statements of cash flow.
Uncertain Tax Positions. The Company recognizes atax benefit when it is more-likely-than-not,based on thetechnical merits, that
a tax position would be sustaineduponexamination by ataxing authority. The amount to be recognized is measured as thelargest
amount of tax benefitthat isgreater than 50% likely of being realized uponultimatesettlement witha taxing authority thathas
fullknowledge of all relevant information. The Company’sunrecognizedtax benefits are recorded inother liabilities on the
consolidated balancesheetsorasanoffset to the deferredtax asset for tax carryforwards whereavailable.

The Companyrecords interest accrued in relationtounrecognizedtax benefits as income tax expense.Penalties, if incurred, are
recordedasoperating expenses in theconsolidated statements of earnings.
Sales Taxes. The Company is deemedtobeanagent when collecting salestaxes from customers. Salestaxes collected from
customersare recorded as liabilitiesuntil remittedtotaxing authorities andtherefore arenot reflected inthe consolidated
statementsof earningsas revenuesand expenses.
Start-Up Costs. Noncapital start-up costs for newfacilitiesand products arecharged to operations as incurred.
Consolidated Comprehensive Earnings and Accumulated Other Comprehensive Loss. Consolidated comprehensiveearnings
consist of consolidated netearnings, adjustments for the funded status of pensionand postretirement benefitplans and foreign
currencytranslation adjustmentsand are presented in the Company’s consolidated statements of comprehensive earnings.
Accumulatedother comprehensivelossconsistsof unrecognizedgains andlosses related to the fundedstatusof the pensionand
postretirement benefit plansand foreigncurrency translation and ispresented on the Company’s consolidated balancesheets.

age22 ♦ 2024 Annual Report