Page 175 - Martin Marietta - 2025 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
Discontinued Operations

Throughtheir respective divestituredates,the financial results of the Company's Californiacement businessesand certain
California ready mixedconcreteoperations, whichwereacquired in2021, were reported as discontinuedoperations. The
Company soldthe Tehachapi,Californiacementplant on October31, 2023 andthe Stockton, Californiacement importterminal
onMay 3, 2023. Thecollectivebusinessesgenerated alossof $30 million in2023, netof expensesassociated with the
divestituresand income tax benefit.

Net Earnings and Earnings Per Diluted Share From Continuing Operations Attributable to Martin
Marietta
Netearnings fromcontinuing operations attributable to Martin Marietta were $2.0billion, or $32.41 perdilutedshare, for
2024 and$1.2billion, or $19.32 perdilutedshare, for 2023.2024 includedanafter-tax gain of $976 million, or $15.85 per
diluted share, on the Divestiture, anafter-tax loss of $37 million, or $0.61 perdilutedshare, for the Rationalization Charge, an
after-tax charge of $15 million, or $0.24 perdilutedshare, for the Inventory Markup andafter-tax acquisition,divestiture and
integration expenses of $32 million, or $0.51 perdilutedshare, related to the BWI Southeastacquisition andthe Divestiture.
Liquidity and Cash Flows
Operating Activities
Generally,the Company’s primary source of liquidity is cash generated fromoperating activities.Operating cash flowis
substantially derived fromconsolidated netearnings, before deductingdepreciation, depletionand amortization, after
adjusting fornoncash gainsand losses, andoffset by workingcapital requirements.Cash provided by operations was$1.5billion
ineachof2024 and 2023.
The Internal Revenue Servicehas provided certaindisastertax reliefforNorth Carolinabusinessesaffected by Hurricanes Debby
and Helene, which allows the Company to deferestimated federaland certainstate income, payroll andexcisetax payments
for the period fromAugust2024 throughApril 2025. Thedeferredobligationwill be due May 1,2025. Forthe year ended
December31, 2024, operatingcash flowbenefited from deferred incometax payments of $102 millionunderthisprovision.

Investing Activities
Netcashused for investing activities was $2.4 billion in2024 andnet cash provided by investing activities was $459 million in
2023.
Pretax proceeds fromdivestituresand salesof assets were $2.2billion in2024 and$427 million in2023. The2024 amount
includesthe Divestiture. On April5,2024, the Company used $2.05 billionof cashonhandto fund the BWI Southeast
acquisition.Subsequently, the Company used availableliquidity to fund theSouth Floridaaggregates acquisition on October
25, 2024 andthe West Texasaggregatesacquisition on December 13,2024.
Cashpaid for property, plant andequipmentadditions was $855 million in2024, which includeda purchaseofland, aggregates
reservesand processing plants in Southern California, and$650 millionin2023.
In2023, netcashprovidedbyinvesting activities included$700 million inproceeds fromthe sale of restricted investments,
which the Company had investedduring2022and were used to repay dischargeddebtand related interest in2023.

Financing Activities
Netcashprovidedby financing activities was$373 million in2024 andnet cash used for financing activities was$1.1billion in
2023. InNovember2024, the Company issued $1.5 billionof publicly traded debt and inJuly 2024, repaid the $400 millionof
4.250% Senior Notesthat matured by theirown terms. Additionally,during2024, the Company borrowedand repaid $1.3
billionon its short-termfacilities. In 2023, the Company used $700 millionto repay discharged debt and related interest.
For the years ended December 31,2024 and 2023,the BoardofDirectors approved totalcashdividends on the Company’s
commonstock of $3.06 pershare and$2.80 pershare, respectively. Totalcashdividends paid were $189 million in2024 and
$174 million in2023.

During 2024, the Company repurchased0.8 millionsharesofits commonstock fora totalcostof $450 million. During 2023,
the Companyrepurchased 0.4 millionsharesofits commonstock fora totalcostof $150 million. In 2024 and 2023, theaverage
cost was $572.70 pershare and$393.16 pershare, respectively.

2024 Annual Report ♦ Page 67