Page 151 - Martin Marietta - 2025 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
Note M: Shareholders’ Equity

Theauthorizedcapital structureof the Companyincludes100 millionsharesof commonstock, witha par value of $0.01 pershare.
At December31, 2024, approximately 1.0 millioncommonshares were reserved for issuance understock-based awardplans.
Pursuanttoauthority grantedbyits BoardofDirectors,the Company can repurchase up to 20 millionsharesof commonstock.
During2024, the Company repurchased 0.8 millionsharesof commonstock. Duringeachof2023 and 2022, the Company
repurchased 0.4 millionsharesof commonstock.Futureshare repurchases areatthe discretion of management.At December31,
2024, 11.9 millionsharesof commonstock were remaining underthe Company’s repurchaseauthorization.
Note N: Commitments and Contingencies

Legal and Administrative Proceedings. The Company is engaged incertain legaland administrative proceedings incidentalto its
normalbusinessactivities. In theopinion of management andcounsel,based upon currently available facts,the likelihood is
remotethatthe ultimate outcomeof any litigationand otherproceedings, including those pertainingtoenvironmental matters
(seeNoteA), relating to the Company and its subsidiaries, will have a materialadverse effect on theoverall resultsof the
Company’s operations, its cash flowsor its financial position.
Asset Retirement Obligations. The Company incurs reclamationand teardown costsaspartofits mining andproductionprocesses.
Estimated future obligations arediscountedtotheir present value andaccreted to theirprojected future obligations viacharges
tooperating expenses.Additionally,the fixedassets recorded concurrently with theliabilitiesare depreciatedoverthe period until
retirement activities areexpectedtooccur. Total accretionand depreciation expenses for2024, 2023 and 2022 were $28 million,
e
$17 millionand $16 million, respectively, and are included in Otheroperating income,net, inthe consolidated statements of
earnings.
The following showsthe changes inasset retirementobligations:
years ended December 31
(in millions) 2024 2023 2022
Balanceat beginning of year $ 400 $ 380 $ 307
Accretionexpense 11 11 10
Liabilities incurredand liabilitiesassumed in business combinations 12 34 79
Liabilitiessettled (2) (28) (14)
Revisions inestimated cash flows 9 (13) (3)
Liabilities reclassified from assets held forsale 2 16 1
Balanceatend of year $ 432 $ 400 $ 380

Other Environmental Matters. The Company’s operations aresubjecttoand affected byfederal, stateand locallawsand
regulations relating to theenvironment,healthand safety, and other regulatory matters. Certain of the Company’s operations
may, fromtimetotime, involvethe useof substancesthatare classified as toxicorhazardous within the meaning of theselaws
and regulations. Environmentaloperating permitsare,or may be, required for certainof the Company’soperations, andsuch
permitsare subjectto modification, renewaland revocation. The Companyregularly monitors and reviews itsoperations,
proceduresand policies for compliance withthese laws and regulations. Despite thesecomplianceefforts, riskof environmental
remediationliabilityis inherent in theoperation of the Company’s businesses, as it is with othercompanies engaged insimilar
businesses. The Company hasno materialprovisions for environmental remediation liabilitiesand does not believe such liabilities
will have a materialadverse effect on the Company in the future.
Insurance Reserves. At December 31, 2024 and 2023, reserves of $53 millionand $47million, respectively,were recorded for
insuranceclaims.

Letters of Credit. In thenormalcourseof business, the Company provides certainthird parties withstandby letter of credit
agreements guaranteeing itspayment forcertain insuranceclaims, contract performanceand permit requirements.At
December31, 2024,the Company was contingently liable for $37 million inletters of credit.
Surety Bonds. At December 31, 2024, the Companywascontingently liable for $818 million insurety bonds required by certain
statesand municipalitiesand their related agencies. The bonds are provided inthe normal course of businessand are principally
forcertain insuranceclaims, construction contracts, reclamationobligations and miningpermits guaranteeing the Company’s own
performance. The Company has indemnified theunderwriting insurance companyagainst any exposureunder thesurety bonds.
Inthe Company’spastexperience, no material claims have been made againstthese financial instruments.

024 Annual Report ♦ Page 43