Page 140 - Martin Marietta - 2025 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
The CreditAgreement requiresthe Company’s ratio of consolidated net debt-to-consolidated earnings before interest,taxes,
depreciation, depletionand amortization, asdefined, for thetrailing-twelve months (the Ratio) to notexceed 3.50x asof the end
of anyfiscal quarter,providedthatthe Companymay exclude from the Ratio any debt incurred inconnection withcertain
acquisitionsduringthe quarter or three preceding quarterssolong asthe Ratiocalculated without such exclusiondoesnot exceed
4.00x.Additionally, if noamountsare outstanding underthe RevolvingFacility orthe Company'strade receivable securitization
facility (discussedlater), consolidated debt, asdefined,which includesdebt forwhichthe Companyisa guarantor, shallbe reduced
inanamount equaltothe lesserof $500 millionorthe sumof the Company’sunrestrictedcashand temporary investments, for
purposes of thecovenantcalculation. The Companywas in compliance withthe Ratioat December31, 2024.
The Company,through a wholly-owned special-purpose subsidiary,has a$400 milliontrade receivable securitization facility(the
Trade Receivable Facility).OnSeptember 18, 2024, the Company extendedthe maturity to September17, 2025. The Trade
ReceivableFacility,with Truist Bank, Regions Bank, First-Citizens Bank &Trust Company, andcertain otherlenders that may
becomea partytothe facility fromtimetotime, is backed by eligible trade receivables, asdefined. Borrowingsare limited to the
lesserof the facility limit or theborrowing base, asdefined. These receivablesare originated by the Company andthensoldor
contributed to thewholly-owned special-purpose subsidiary. The Company continues to be responsible for theservicing and
administration of the receivables purchased by thewholly-owned special-purpose subsidiary. Borrowingsunderthe Trade
Receivable Facility bear interest at a rateequaltoAdjusted TermSecured OvernightFinancing Rate (Adjusted TermSOFR), as
defined,plus0.8%. The Trade Receivable Facility containsa cross-defaultprovision to the Company’s otherdebtagreements.
Subjecttocertain conditions, including lenders providingthe requisite commitments,the Trade ReceivableFacility may be
increasedtoa borrowing base nottoexceed$500 million. At December 31, 2024 and 2023, there werenoborrowingsoutstanding
underthe Trade ReceivableFacility.
f
The Company’s long-termdebt maturities for each of thenext five years andthereafterare as follows:
(in millions)
2025 $ 125
2026 —
2027 792
2028 —
2029 —
Thereafter 4,496
Total $ 5,413

Note H: Financial Instruments
The Company’s financial instruments include temporary cash investments, restrictedcash, accounts receivable, accountspayable,
publicly-registeredlong-term notes, debentures andother long-termdebt.

Temporarycash investments are placedprimarily in moneymarket funds, money market demand depositaccountsand Eurodollar
time depositaccounts with financial institutions. The Company’scashequivalents have maturities of less than three months. Due
to theshort maturity of these investments,theyare carriedonthe consolidated balancesheetsatcost, whichapproximates fair
value.

Restricted cash at December 31,2023was held in atrust account with athird-party intermediary. Due to theshort-termnatureof
thisaccount,the carrying value of restricted cash approximated its fairvalue.
Accounts receivableare due from alarge numberof customers,primarily in theconstruction industry, andare dispersedacross
wide geographicand economic regions. However, accounts receivable are moreheavily concentrated in certainstates, namely
Texas,North Carolina, Colorado, California, Georgia, Florida, Minnesota, Arizona, South Carolinaand Iowa. The carrying valuesof
accounts receivableapproximatetheirfair values.
Accountspayable representamounts owed to suppliers andvendors.The estimatedcarryingvalue of accountspayable
approximates its fair value due to theshort-termnatureof the payables.
The carrying value and fair value of the Company’s long-termdebt were $5.4 billionand $4.8billion, respectively, at December31,
2024 and$4.3billionand $3.9billion, respectively, at December31, 2023. Theestimated fairvalueof the Company’s publicly-
registered long-termdebt was estimatedbased on Level 1 of the fairvalue hierarchy using quoted marketprices.

age32 ♦ 2024 Annual Report