Page 156 - Martin Marietta - 2025 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
Performance Obligations. Performanceobligations arecontractual promises to transfer or providea distinct good or service for a
stated price. The Company’s productsales agreements aresingle-performanceobligations that aresatisfied at apoint in time.
Performance obligations within paving serviceagreements aresatisfied over time, primarily ranging fromone daytotwo years.
Customerpayment termsare generally 30 days from invoicedate.Customer payments forthe paving operations arebased on a
contractual billing scheduleand aretypically "paid-when-paid", meaning the Company is paid once thecustomer ispaid.

Future revenues fromunsatisfied performanceobligations at December 31, 2024, 2023 and 2022 were $255 million, $251 million
and $239 million, respectively, where the remaining periodstocompletethese obligations ranged fromone monthto36 months
at December 31,2024, one month to 22 months at December 31,2023and two monthsto34monthsat December31, 2022.
Service Revenues. Service revenues, which include paving operations located in Californiaand Colorado, were $411 million, $411
millionand $354 million for theyears ended December31, 2024, 2023 and 2022, respectively.
Note Q: Supplemental Cash Flow Information
ncash investing and financing activities areas follows:
years ended December 31
(in millions) 2024 2023 2022
Accruedliabilities for purchases of property,plant andequipment $ 143 $ 128 $ 152
Right-of-use assets obtained in exchange fornew operatinglease
liabilities $ 68 $ 63 $ 27
Right-of-use assets obtained in exchange fornew financelease
liabilities $ 17 $ 22 $ 12
Remeasurementof operating lease right-of-useassets $ 7 $ 10 $ (3)
Remeasurementoffinance lease right-of-useassets $ 27 $ — $ (13)
Acquisition of assets throughasset exchange $ — $ 5 $ —

Supplementaldisclosures of cash flowinformationare as follows:
years ended December 31
(in millions) 2024 2023 2022
Cash paid for interest, netof amount capitalized $ 158 $ 159 $ 165
Cash paid for incometaxes $ 382 $ 292 $ 201
Cash paid foramounts included inthe measurementof
leaseliabilities:
Operatingcash flows used foroperating leases $ 77 $ 77 $ 79
Operatingcash flows used for finance leases $ 6 $ 5 $ 5
Financingcash flows used for finance leases $ 20 $ 17 $ 15

Note R: Other Operating Income, Net
Other operating income, net, is comprisedgenerally of gainsand lossesondivestituresand thesaleof assets; asset and portfolio
rationalizationcharges; recoveriesand losses relatedtocertain customer accounts receivable; recoveries andlossesonthe
resolutionof contingency accruals; rental, royaltyand services income; and accretionexpense,depreciationexpense, and gains
andlosses related to asset retirementobligations. These netamounts represented income of $1.3billion, $28 millionand $190
millionin2024,2023 and 2022, respectively.
In2024,other operating income, net, includeda $1.3billionpretax gainonthe divestitureof the SouthTexas cement businessand
certainofits related ready mixedconcreteoperationsand $28 millionof gains on land sales, whichwere partially offset by a$50
million pretax,noncash assetand portfolio rationalizationcharge. The2024 noncashassetand portfolio rationalizationcharge
relatestothe Company'sdecisiontodiscontinue usageof certain long-hauldistribution facilitiestotransport aggregates products
into Colorado becausethe AFSacquisition completed inJanuary 2024 provides more economical,local aggregates supply. This
charge, which is reported inthe West Group, reflects the Company's evaluation of the recoverability of certain long-lived assets,
including property,plant andequipment andoperating lease right-of-useassets, for thecessation of these railroadoperations.

In2023,other operating income, net, included $20 millionof gains on land sales.

age48 ♦ 2024 Annual Report