Page 176 - Martin Marietta - 2025 Proxy Statement

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

Capital Structure and Resources
Long-termdebt, includingcurrent maturities, was $5.4 billionat December31, 2024, and was inthe form of publicly-issued
long-term notesand debentures.OnNovember4,2024, the Company issued $750 millionaggregate principal amount of
5.150% Senior Notesdue 2034 and$750 millionaggregate principalamount of 5.500% Senior Notesdue 2054. The Company
usedthe net proceedsto repay theborrowingsoutstanding under its revolvingcredit facilityand tradesecuritization facility.
The remainingnet proceeds were used forgeneral corporate purposesand acquisitions.
The Company, througha wholly-owned special-purposesubsidiary,has a$400 milliontrade receivable securitization facility
(the Trade Receivable Facility) that maturesonSeptember 17,2025. TheTrade Receivable Facility containsa cross-default
provision to the Company’s otherdebtagreements. There werenooutstanding borrowingsonthe Trade ReceivableFacility as
of December 31,2024.

The Company hasan$800 million five-year senior unsecured revolving facility (the Revolving Facility),which matures in
December2029. There were no outstanding borrowingsonthe RevolvingFacility asofDecember31, 2024. The Revolving
Facility requiresthe Company’s ratio of consolidated net debt-to-consolidated EBITDA, asdefined, for thetrailing-twelve
months(the Ratio)tonot exceed 3.50x asof the endof any fiscal quarter, provided that the Company mayexclude from the
Ratio debt incurred in connection with certainacquisitionsduringthe quarter(or thethree precedingquarters) so long as the
Ratio calculated withoutsuchexclusion does notexceed4.00x.Additionally, if there arenoamounts outstandingunderthe
Revolving Facilityand theTrade Receivable Facility, consolidated debt, including debt for which the Company is aguarantor,
shall be reduced in an amount equal to thelesserof $500 millionorthe sumof the Company’sunrestrictedcashand temporary
investments, for purposesof the covenant calculation. The Company was incompliance withthe Ratioand other requirements
underthe RevolvingFacilityat December31, 2024.

Pursuanttoauthority grantedbyits BoardofDirectors,the Companycan repurchaseupto20 millionsharesof commonstock.
AsofDecember31, 2024, the Company had 11.9 millionshares remaining underthe repurchaseauthorization.Futureshare
repurchases areat management'sdiscretion.
At December31, 2024, the Company had$670 million inunrestrictedcashand short-term investmentsthatare considered
cashequivalents. The Companymanages itscashand cash equivalentstoensureshort-termoperating cash needsare metand
excess fundsare managedefficiently. The Company’s investments inbank funds generally exceed theFDIC insurance limit.
Cashonhand, alongwiththe Company’sprojected internal cash flowsand availability offinancing resources,including its
access to debt andequity capital markets,isexpectedtocontinuetobesufficientto provide thecapital resourcesnecessary
tosupport anticipatedoperating needs, coverdebtservice requirements, meetcapital expendituresand discretionary
investmentneeds, fundcertain acquisitionopportunitiesthat may ariseand allowfor paymentof dividends forthe foreseeable
future. Borrowingsunder the Revolving Facility areunsecured and may be used forgeneral corporate purposes. The Company’s
ability toborrow or issuesecurities isdependent upon, amongother things,prevailingeconomic, financialand market
conditions. At December 31, 2024, the Company had$1.2billionof unused borrowing capacity under its RevolvingFacility and
Trade Receivable Facility.
The Company is exposedtocredit markets throughthe interest cost relatedtoborrowingsunder its Revolving Facility and
Trade Receivable Facility.

Contractual and Off-Balance Sheet Obligations
The Company has retirement benefits related to pensionplans.At December31, 2024,the fairvalueof the qualifiedpension
plans’assets exceeded the projected benefitobligationby $371 million. The Company estimates makingcontributions of $25
milliontoqualified pension plans in 2025. Any contributions beyond 2025 arecurrently undeterminable andwill depend on
the investment return on the related pensionassets.At December31, 2024, the Company hada totalobligationof $100 million
related to unfunded nonqualifiedpension plansand expectsto makecontributions of $15 milliontothese plansin2025.

Page68 ♦ 2024 Annual Report