Page 142 - Martin Marietta - 2025 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
The Internal Revenue Servicehas provided certaindisastertax relieffor North Carolinabusinessesaffected by Hurricanes Debby
andHelene, whichallows the Company to deferestimated federaland certainstate income,payroll andexcisetax payments for
the period from August 2024 throughApril 2025. Thedeferredobligationwillbedue May 1,2025. The Company deferred income
tax paymentsof $102 millionunderthisprovision as ofDecember 31, 2024.
The principal components of the Company’s deferredtax assets andliabilitiesare as follows:

December 31 Deferred Assets (Liabilities)
(in millions) 2024 2023
Deferredtax assets relatedto:
ventories $ 147 $ 121
Valuationand other reserves 65 34
Netoperating loss carryforwards 2 3
Accumulatedother comprehensiveloss 41 54
Leaseliabilities 147 142
Other items,net 13 4
Grossdeferredtax assets 415 358
Valuationallowanceondeferredtax assets (2) (3)
Totalnet deferred tax assets 413 355
Deferredtax liabilities related to:
Property,plant andequipment (1,158) (828)
Goodwill andother intangibles (171) (168)
Right-of-use assets (144) (142)
Partnerships andjoint ventures (47) (34)
Employee benefits (62) (57)
Totaldeferredtax liabilities (1,582) (1,229)
Deferred incometaxes,net $ (1,169) $ (874)

The Company had immaterial grossdomestic federal netoperating loss (NOL) carryforwards at both December 31,2024 and 2023.
The Companyhad grossdomesticstate NOLcarryforwards of $24 millionand $43 millionat December31, 2024 and 2023,
respectively. Thedomestic federal andstate carryforwards have variousexpirationdates through 2044. The Company also had
immaterial domestic statetax credit carryforwardsat December31, 2024 and 2023, whichhavevarious expiration datesthrough
2044.
The Company expectsto reinvestthe earningsfrom its wholly-owned Canadianand Bahamian subsidiaries indefinitely, and
accordingly, hasnot provided deferredtaxes on thesubsidiaries’ undistributed netearningsorbasis differences.The Company
believesthatthe tax liability thatwould be incurredupon repatriationof the foreignearnings was immaterial at December 31,
2024 and 2023.
The Company’s unrecognizedtax benefits are immaterial forthe yearsended December 31,2024, 2023 and 2022. Unrecognized
tax benefitsare reversed as adiscreteevent if an examinationof applicable taxreturns is not initiated by a federal or statetax
authoritywithinthe statuteoflimitations oruponeffectivesettlement with federal or statetax authorities. Management believes
itsaccrual for unrecognizedtax benefits is sufficienttocover uncertaintax positions reviewedduring audits by taxing authorities.
The Company anticipatesan immaterial decrease in itsunrecognizedtax benefits during thetwelve monthsending December31,
2025, due to theexpirationof the statutes of limitations forthe 2021 taxyear.
The Company’stax yearssubject to federal, stateor foreign examinations are2020through 2024.

age34 ♦ 2024 Annual Report