Martin Marietta Materials(MLM) - 2022 Q2 - Quarterly Report

FORM 10-Q Cover Page - This report is a quarterly report for the period ended June 30, 2022, for MARTIN MARIETTA MATERIALS, INC., with stock ticker MLM, listed on the New York Stock Exchange[2][3] FORM 10-Q Cover Page Key Details | Metric | Details | | :--- | :--- | | Report Type | Quarterly Report (FORM 10-Q) | | Quarter End Date | June 30, 2022 | | Commission File Number | 1-12744 | | Registrant Name | MARTIN MARIETTA MATERIALS, INC. | | State of Incorporation | North Carolina | | Principal Executive Offices | 4123 Parklake Avenue, Raleigh, NC 27612 | | Telephone Number | (919) 781-4550 | | Title of Each Class of Securities | Common Stock (par value $0.01) | | Trading Symbol | MLM | | Name of Each Exchange on Which Registered | NYSE | | All Reports Filed | Yes | | Large Accelerated Filer | Yes | | Common Stock Outstanding as of July 25, 2022 (shares) | 62,374,140 | Table of Contents The report's table of contents lists Part I Financial Information (including financial statements and management's discussion and analysis) and Part II Other Information (including legal proceedings, risk factors, equity security sales, and exhibits)[6] PART I. FINANCIAL INFORMATION Item 1. Financial Statements This section presents the company's unaudited consolidated financial statements as of June 30, 2022, including balance sheets, statements of earnings and comprehensive earnings, cash flows, and equity, along with detailed notes explaining accounting policies, operations, recent M&A, debt, taxes, pensions, and market risks Consolidated Balance Sheets Key Data (As of June 30, 2022 vs. December 31, 2021) | Metric | As of June 30, 2022 (million USD) | As of December 31, 2021 (million USD) | Change (million USD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Assets | | | | | | Cash and Cash Equivalents | 772.1 | 258.4 | 513.7 | 198.8% | | Accounts Receivable Net | 1,026.6 | 774.0 | 252.6 | 32.6% | | Inventories, Net | 835.2 | 752.6 | 82.6 | 11.0% | | Current Assets Held for Sale | 57.5 | 102.2 | (44.7) | (43.7)% | | Total Current Assets | 2,760.3 | 2,025.6 | 734.7 | 36.3% | | Property, Plant and Equipment Net | 6,164.3 | 6,338.0 | (173.7) | (2.7)% | | Goodwill | 3,400.5 | 3,494.4 | (93.9) | (2.7)% | | Noncurrent Assets Held for Sale | 388.2 | 616.9 | (228.7) | (37.1)% | | Total Assets | 14,542.8 | 14,393.0 | 149.8 | 1.0% | | Liabilities and Equity | | | | | | Total Current Liabilities | 761.4 | 752.6 | 8.8 | 1.2% | | Long-Term Debt | 5,044.3 | 5,100.8 | (56.5) | (1.1)% | | Deferred Income Tax Net | 852.8 | 895.3 | (42.5) | (4.7)% | | Total Liabilities | 7,770.7 | 7,855.4 | (84.7) | (1.1)% | | Total Stockholders' Equity | 6,770.0 | 6,535.3 | 234.7 | 3.6% | | Total Liabilities and Equity | 14,542.8 | 14,393.0 | 149.8 | 1.0% | Consolidated Statements of Earnings and Comprehensive Earnings Key Data (As of June 30, 2022) | Metric | Q2 2022 (million USD) | Q2 2021 (million USD) | Change (%) | H1 2022 (million USD) | H1 2021 (million USD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 1,641.7 | 1,377.9 | 19.1% | 2,872.5 | 2,360.3 | 21.7% | | Total Cost of Sales | 1,216.5 | 992.8 | 22.5% | 2,291.2 | 1,800.5 | 27.2% | | Gross Profit | 425.2 | 385.1 | 10.4% | 581.3 | 559.8 | 3.8% | | Selling, General and Administrative Expenses | 104.1 | 82.4 | 26.3% | 201.2 | 162.2 | 24.0% | | Operating Earnings | 478.6 | 307.5 | 55.7% | 538.4 | 406.8 | 32.4% | | Pre-tax Earnings from Continuing Operations | 457.5 | 288.1 | 58.1% | 487.7 | 369.4 | 32.0% | | Income Tax Expense | 104.4 | 62.3 | 67.6% | 110.2 | 78.1 | 41.1% | | Earnings from Continuing Operations | 353.1 | 225.8 | 56.4% | 377.5 | 291.3 | 29.6% | | Earnings from Discontinued Operations (Net of Tax) | 13.3 | — | N/A | 10.2 | — | N/A | | Consolidated Net Earnings | 366.4 | 225.8 | 62.3% | 387.7 | 291.3 | 33.1% | | Net Earnings Attributable to Martin Marietta Materials, Inc. | 366.5 | 225.8 | 62.3% | 387.9 | 291.1 | 33.3% | | Basic Earnings Per Share from Continuing Operations | 5.66 | 3.62 | 56.3% | 6.06 | 4.66 | 30.0% | | Diluted Earnings Per Share from Continuing Operations | 5.65 | 3.61 | 56.5% | 6.04 | 4.65 | 30.0% | Consolidated Statements of Cash Flows Key Data (As of June 30, 2022) | Metric | H1 2022 (million USD) | H1 2021 (million USD) | Change (million USD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 286.2 | 441.2 | (155.0) | (35.1)% | | Net Cash Used in Investing Activities | 433.5 | (823.1) | 1,256.6 | 152.7% | | Net Cash Provided by (Used in) Financing Activities | (206.5) | 147.8 | (354.3) | (239.7)% | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 513.2 | (234.1) | 747.3 | 319.2% | | Cash, Cash Equivalents and Restricted Cash at End of Period | 772.1 | 70.3 | 701.8 | 998.3% | - Net Cash Used in Investing Activities significantly increased, primarily due to 644.4 million USD in proceeds from asset divestitures, compared to substantial M&A expenditures in the prior-year period[13] Consolidated Statements of Total Equity Key Data (As of June 30, 2022) | Metric | As of June 30, 2022 (million USD) | As of December 31, 2021 (million USD) | Change (million USD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Common Stock | 0.6 | 0.6 | 0.0 | 0.0% | | Additional Paid-in Capital | 3,474.4 | 3,470.4 | 4.0 | 0.1% | | Accumulated Other Comprehensive Loss | (128.1) | (97.6) | (30.5) | 31.2% | | Retained Earnings | 3,423.1 | 3,161.9 | 261.2 | 8.3% | | Total Stockholders' Equity | 6,770.0 | 6,535.3 | 234.7 | 3.6% | | Noncontrolling Interests | 2.1 | 2.3 | (0.2) | (8.7)% | | Total Equity | 6,772.1 | 6,537.6 | 234.5 | 3.6% | - As of June 30, 2022, the company's total stockholders' equity was 6.77 billion USD, a 3.6% increase from year-end 2021, primarily driven by increased retained earnings, partially offset by an expanded accumulated other comprehensive loss[15] Notes to Consolidated Financial Statements 1. Significant Accounting Policies This note outlines the company's organizational structure, primary business segments (Building Materials and Magnesia Specialties), accounting basis, comprehensive earnings components, earnings per share calculation, and restricted cash disclosures - The company's primary business involves natural resource-based construction materials, including aggregates, cement, ready mixed concrete, asphalt, and paving services, divided into East and West business groups, also operating a Magnesia Specialties business[19][20][21][23] - As of June 30, 2022, the company's California cement plant, cement distribution terminals, and ready mixed concrete operations were classified as assets held for sale and discontinued operations[19] Comprehensive Earnings Attributable to Martin Marietta (As of June 30, 2022) | Metric | Q2 2022 (million USD) | Q2 2021 (million USD) | H1 2022 (million USD) | H1 2021 (million USD) | | :--- | :--- | :--- | :--- | :--- | | Net Earnings Attributable to Martin Marietta | 366.5 | 225.8 | 387.9 | 291.1 | | Other Comprehensive Earnings (Loss), Net of Tax | 1.2 | 2.6 | (30.5) | 5.4 | | Comprehensive Earnings Attributable to Martin Marietta | 367.7 | 228.4 | 357.4 | 296.5 | - As of June 30, 2022, the company had no restricted cash, compared to 0.5 million USD as of December 31, 2021, primarily for Section 1031 tax-deferred transactions[34] 2. Revenue Recognition This note details the company's revenue recognition for products and services, including product sales recognized upon transfer of control, service revenue using the percentage-of-completion method, and freight revenue recognition principles, also disclosing future revenue from unfulfilled contract obligations and revenue breakdown by business segment - Product revenue is recognized when control transfers, while service revenue (e.g., paving) is recognized using the cost-to-cost percentage-of-completion method; freight revenue is recognized concurrently with product revenue[36][37] Future Revenue from Unfulfilled Contract Obligations (As of June 30, 2022) | As of | Future Revenue (million USD) | Remaining Completion Period | | :--- | :--- | :--- | | June 30, 2022 | 322.5 | 1 to 23 months | | June 30, 2021 | 215.5 | 1 to 21 months | Total Revenue by Business Segment and Revenue Category (As of June 30, 2022) | Business Segment | Q2 2022 Product and Service Revenue (million USD) | Q2 2022 Freight Revenue (million USD) | Q2 2022 Total Revenue (million USD) | | :--- | :--- | :--- | :--- | | East Group | 632.4 | 42.1 | 674.5 | | West Group | 816.8 | 68.7 | 885.5 | | Total Building Materials Business | 1,449.2 | 110.8 | 1,560.0 | | Magnesia Specialties | 74.6 | 7.1 | 81.7 | | Total | 1,523.8 | 117.9 | 1,641.7 | | Business Segment | H1 2022 Product and Service Revenue (million USD) | H1 2022 Freight Revenue (million USD) | H1 2022 Total Revenue (million USD) | | :--- | :--- | :--- | :--- | | East Group | 1,027.0 | 66.3 | 1,093.3 | | West Group | 1,499.2 | 121.3 | 1,620.5 | | Total Building Materials Business | 2,526.2 | 187.6 | 2,713.8 | | Magnesia Specialties | 145.4 | 13.3 | 158.7 | | Total | 2,671.6 | 200.9 | 2,872.5 | 3. Business Combinations, Divestitures and Discontinued Operations This note discloses the company's recent business combinations (e.g., Lehigh Hanson Western operations, Southern Crushed Concrete, and Tiller Corporation) and divestiture activities (e.g., California cement and ready mixed concrete operations, Colorado and Central Texas ready mixed concrete operations), detailing financial data for discontinued operations and the composition of assets and liabilities held for sale - In October 2021, the company acquired Lehigh Hanson, Inc.'s Western business for 2.26 billion USD, primarily financed by publicly traded debt, with results included in the company's West Group[46] - On June 30, 2022, the company sold its Redding, California cement plant, related cement distribution terminals, and 14 California ready mixed concrete operations for 235 million USD in cash, and agreed to sell its interest in a cement distribution terminal joint venture for 15 million USD[52] - On April 1, 2022, the company divested its Colorado and Central Texas ready mixed concrete operations, generating 151.7 million USD in pre-tax earnings, recorded in 'Other Operating Income, Net'[53] Discontinued Operations Financial Data (As of June 30, 2022) | Metric | Q2 2022 (million USD) | H1 2022 (million USD) | | :--- | :--- | :--- | | Total Revenue | 111.7 | 206.4 | | Pre-tax Operating Earnings | 20.5 | 16.4 | | Pre-tax Loss on Divestiture | (1.0) | (1.0) | | Pre-tax Earnings | 19.5 | 15.4 | | Income Tax Expense | 6.2 | 5.2 | | Earnings from Discontinued Operations (Net of Tax) | 13.3 | 10.2 | 4. Goodwill This note discloses changes in the company's goodwill during the reporting period, including the impact of acquisitions, purchase price allocation adjustments, and divestitures Goodwill Changes (As of June 30, 2022) | Metric | East Group (million USD) | West Group (million USD) | Total (million USD) | | :--- | :--- | :--- | :--- | | Balance as of January 1, 2022 | 759.4 | 2,735.0 | 3,494.4 | | Acquisitions | — | 3.7 | 3.7 | | Purchase Price Allocation Adjustments | 5.0 | 52.8 | 57.8 | | Divestitures | — | (159.7) | (159.7) | | Goodwill Reclassified from Assets Held for Sale | — | 4.3 | 4.3 | | Balance as of June 30, 2022 | 764.4 | 2,636.1 | 3,400.5 | - As of June 30, 2022, total company goodwill was 3.4005 billion USD, a slight decrease from the beginning of the year, primarily due to divestitures[56] 5. Inventories, Net This note provides a detailed breakdown of the company's inventories, net, including finished goods, work-in-process, raw materials, and supplies and consumables, along with corresponding allowances Inventories, Net Composition (As of June 30, 2022 vs. December 31, 2021) | Inventory Category | As of June 30, 2022 (million USD) | As of December 31, 2021 (million USD) | | :--- | :--- | :--- | | Finished Goods | 859.8 | 713.3 | | Work-in-Process | 9.1 | 30.1 | | Raw Materials | 96.7 | 69.6 | | Supplies and Consumables | 139.6 | 153.9 | | Subtotal | 1,105.2 | 966.9 | | Less: Allowance | (270.0) | (214.3) | | Total | 835.2 | 752.6 | - As of June 30, 2022, the company's inventories, net, were 835.2 million USD, an increase from 752.6 million USD at year-end 2021, primarily due to growth in finished goods inventory[57] 6. Long-Term Debt This note details the composition of the company's long-term debt, including various senior notes and borrowings, and discloses the utilization of trade accounts receivable securitization financing and revolving credit facilities, along with related debt covenants Long-Term Debt Composition (As of June 30, 2022 vs. December 31, 2021) | Debt Type | As of June 30, 2022 (million USD) | As of December 31, 2021 (million USD) | | :--- | :--- | :--- | | 0.650% Senior Notes, 2023 due | 698.3 | 697.4 | | 4.250% Senior Notes, 2024 due | 398.6 | 398.3 | | 7% Bonds, 2025 due | 124.6 | 124.6 | | 3.450% Senior Notes, 2027 due | 298.1 | 297.9 | | 3.500% Senior Notes, 2027 due | 496.7 | 496.4 | | 2.500% Senior Notes, 2030 due | 471.8 | 491.1 | | 2.400% Senior Notes, 2031 due | 888.2 | 891.8 | | 6.25% Senior Notes, 2037 due | 228.3 | 228.3 | | 4.250% Senior Notes, 2047 due | 590.1 | 592.1 | | 3.200% Senior Notes, 2051 due | 849.6 | 882.9 | | Other Notes | — | 0.1 | | Total Debt | 5,044.3 | 5,100.9 | | Less: Current Portion of Long-Term Debt | — | (0.1) | | Long-Term Debt | 5,044.3 | 5,100.8 | - As of June 30, 2022, total company long-term debt was 5.0443 billion USD, a slight decrease from year-end 2021, primarily due to the repurchase of 60.5 million USD (face value) of senior notes[58][59] - The company has 400 million USD in trade accounts receivable securitization financing and an 800 million USD five-year senior unsecured revolving credit facility, both with no outstanding borrowings as of June 30, 2022, and complied with the debt covenant for a consolidated net debt to Adjusted EBITDA ratio not exceeding 3.50x[60][61] 7. Financial Instruments This note describes the composition of the company's primary financial instruments, including cash investments, accounts receivable, accounts payable, and long-term debt, and discloses their carrying and fair values - The company's financial instruments include short-term cash investments, restricted cash, accounts receivable, accounts payable, and long-term debt; the fair value of short-term investments and receivables/payables approximates their carrying value[63][64][65][66][67] Carrying Value and Fair Value of Long-Term Debt (As of June 30, 2022 vs. December 31, 2021) | Metric | As of June 30, 2022 (million USD) | As of December 31, 2021 (million USD) | | :--- | :--- | :--- | | Long-Term Debt Carrying Value | 5,040 | 5,100 | | Long-Term Debt Fair Value | 4,480 | 5,450 | - As of June 30, 2022, the fair value of the company's long-term debt was 4.48 billion USD, lower than the carrying value of 5.04 billion USD, while at year-end 2021, fair value exceeded carrying value, reflecting market interest rate changes on debt valuation[68] 8. Income Taxes This note discloses the company's effective income tax rate from continuing operations and explains the primary reasons for changes in the rate Effective Income Tax Rate from Continuing Operations (As of June 30, 2022) | Period | Effective Income Tax Rate | | :--- | :--- | | H1 2022 | 22.6% | | H1 2021 | 21.2% | - The effective income tax rate for the first half of 2022 increased to 22.6% from 21.2% in the prior-year period, primarily due to the divestiture of Colorado and Central Texas ready mixed concrete operations[69] 9. Pension and Postretirement Benefits This note discloses amendments to the company's pension plans and their impact on net periodic benefit costs, and lists the components of pension and postretirement benefit costs - In the first half of 2022, the company amended its qualified pension plan to provide enhanced benefits for eligible hourly employees, resulting in a pension plan remeasurement and increased annual pension expense estimates[29][71] Pension and Postretirement Benefits Net Periodic Benefit Cost (As of June 30, 2022) | Cost Component | Q2 2022 (million USD) | Q2 2021 (million USD) | H1 2022 (million USD) | H1 2021 (million USD) | | :--- | :--- | :--- | :--- | :--- | | Service Cost | 14.0 | 10.6 | 24.0 | 23.0 | | Interest Cost | 11.9 | 8.3 | 20.6 | 17.7 | | Expected Return on Assets | (22.5) | (16.3) | (38.7) | (35.1) | | Amortization: Prior Service Cost (Credit) | 1.4 | 0.3 | 2.5 | 0.4 | | Amortization: Actuarial Loss (Gain) | 1.2 | 2.8 | 2.0 | 6.2 | | Net Periodic Pension Benefit Cost | 6.0 | 5.7 | 10.4 | 12.2 | | Net Periodic Postretirement Benefit Cost (Credit) | (0.2) | (0.1) | (0.3) | (0.3) | 10. Commitments and Contingencies This note discloses the legal and administrative proceedings faced by the company, borrowing arrangements with affiliates, and outstanding letter of credit commitments - The company is involved in legal and administrative proceedings related to its normal business activities, including environmental matters, with management deeming the likelihood of any material loss from current litigation as remote[74] - The company, as guarantor, provides a 15 million USD revolving credit facility for a non-consolidated affiliate, with 3.7 million USD drawn as of June 30, 2022[76] - As of June 30, 2022, the company had 17.2 million USD in letter of credit contingencies, of which 2.6 million USD were issued under its revolving credit facility[78] 11. Business Segments This note provides the company's financial data by reporting segment, including total revenue, product and service revenue, and operating earnings (loss), to assess the performance and resource allocation of each segment - The company has three reporting segments: Building Materials (East Group and West Group) and Magnesia Specialties, with performance primarily assessed based on operating earnings[79] Total Revenue and Operating Earnings by Business Segment (As of June 30, 2022) | Metric | Q2 2022 (million USD) | Q2 2021 (million USD) | H1 2022 (million USD) | H1 2021 (million USD) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | | | | | | East Group | 674.5 | 635.3 | 1,093.3 | 1,030.2 | | West Group | 885.5 | 666.8 | 1,620.5 | 1,183.4 | | Total Building Materials Business | 1,560.0 | 1,302.1 | 2,713.8 | 2,213.6 | | Magnesia Specialties | 81.7 | 75.8 | 158.7 | 146.7 | | Total | 1,641.7 | 1,377.9 | 2,872.5 | 2,360.3 | | Operating Earnings (Loss) | | | | | | East Group | 210.6 | 197.8 | 238.5 | 259.5 | | West Group | 274.5 | 101.8 | 317.6 | 133.6 | | Total Building Materials Business | 485.1 | 299.6 | 556.1 | 393.1 | | Magnesia Specialties | 20.3 | 23.1 | 41.8 | 46.7 | | Corporate | (26.8) | (15.2) | (59.5) | (33.0) | | Total | 478.6 | 307.5 | 538.4 | 406.8 | - In Q2 2022, West Group operating earnings significantly increased to 274.5 million USD, primarily driven by 151.7 million USD in non-recurring earnings from asset divestitures[81][82] 12. Revenues and Gross Profit This note details the revenue and gross profit (loss) for the Building Materials and Magnesia Specialties businesses, broken down by product line (aggregates, cement, ready mixed concrete, asphalt, and paving services) Total Revenue by Product Line (As of June 30, 2022) | Product Line | Q2 2022 (million USD) | Q2 2021 (million USD) | H1 2022 (million USD) | H1 2021 (million USD) | | :--- | :--- | :--- | :--- | :--- | | Building Materials Business | | | | | | Aggregates | 955.2 | 801.8 | 1,641.1 | 1,374.4 | | Cement | 157.9 | 116.5 | 292.2 | 226.1 | | Ready Mixed Concrete | 226.1 | 268.4 | 516.2 | 503.7 | | Asphalt and Paving Services | 212.3 | 135.3 | 267.1 | 147.6 | | Freight | 110.8 | 76.8 | 187.6 | 131.6 | | Magnesia Specialties | | | | | | Products and Services | 74.6 | 70.0 | 145.4 | 135.2 | | Freight | 7.1 | 5.8 | 13.3 | 11.5 | | Total | 1,641.7 | 1,377.9 | 2,872.5 | 2,360.3 | | Gross Profit (Loss) | | | | | | Building Materials Business | | | | | | Aggregates | 309.0 | 273.0 | 410.9 | 394.7 | | Cement | 51.1 | 36.1 | 78.5 | 51.4 | | Ready Mixed Concrete | 14.3 | 19.1 | 35.4 | 38.6 | | Asphalt and Paving Services | 26.4 | 28.7 | 13.1 | 20.4 | | Freight | (1.7) | 0.7 | (0.4) | 0.5 | | Magnesia Specialties | | | | | | Products and Services | 25.8 | 27.9 | 52.6 | 56.3 | | Freight | (1.3) | (0.9) | (2.4) | (1.9) | | Total | 425.2 | 385.1 | 581.3 | 559.8 | - In Q2 2022, Aggregates product and service revenue grew to 955.2 million USD, with gross profit of 309 million USD and a gross margin of 32.3%; Cement product and service revenue increased to 157.9 million USD, with gross profit of 51.1 million USD and a gross margin of 32.4%[84][107] 13. Supplemental Cash Flow Information This note provides supplemental disclosures for non-cash investing and financing activities and cash flows, including new lease liabilities, accrued liabilities for property, plant and equipment purchases, and interest and income taxes paid Non-Cash Investing and Financing Activities (As of June 30, 2022) | Non-Cash Activity | H1 2022 (million USD) | H1 2021 (million USD) | | :--- | :--- | :--- | | Right-of-Use Assets Obtained in Exchange for New Finance Lease Liabilities | 7.0 | 158.8 | | Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | 13.0 | 13.2 | | Accrued Liabilities for Purchases of Property, Plant and Equipment | 27.3 | 29.5 | | Remeasurement of Operating Lease Right-of-Use Assets | (3.5) | (6.3) | | Remeasurement of Finance Lease Right-of-Use Assets | (6.4) | — | Supplemental Cash Flow Information (As of June 30, 2022) | Cash Flow Information | H1 2022 (million USD) | H1 2021 (million USD) | | :--- | :--- | :--- | | Interest Paid, Net | 84.3 | 53.6 | | Income Taxes Paid, Net | 42.9 | 56.9 | 14. Other Operating Income, Net This note explains the primary drivers of changes in other operating income, net, particularly earnings related to asset divestitures - In Q2 and the first half of 2022, the increase in other operating income, net, was primarily attributable to 151.7 million USD in earnings from the divestiture of Colorado and Central Texas ready mixed concrete operations[87] - In the prior-year period, other operating income, net, included 12.3 million USD in earnings from the sale of the company's former headquarters[87] 15. Other Nonoperating Income, Net This note discloses the composition of other nonoperating income, net, specifically pre-tax earnings related to debt repurchases - In Q2 and the first half of 2022, other nonoperating income, net, included 11.6 million USD in pre-tax earnings related to the repurchase of company debt[88] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides a detailed analysis of the company's financial condition and operating performance, including a business overview, critical accounting policies, operating results (quarterly and semi-annually), liquidity and capital resources, industry trends and risks, and investor information Overview The company is a natural resource-based construction materials company, primarily providing aggregates, cement, ready mixed concrete, asphalt, and paving services, divided into East and West business groups, also operating a Magnesia Specialties business; the Building Materials business is significantly affected by weather and seasonality - The company's primary business involves aggregates (crushed stone, sand, and gravel), cement, and downstream products (ready mixed concrete, asphalt, and paving), serving infrastructure, nonresidential, and residential construction projects[89] - The Building Materials business is divided into East and West Groups; the East Group primarily provides aggregates and asphalt, while the West Group offers aggregates, cement, ready mixed concrete, asphalt, and paving services[90][92] - The Building Materials business is significantly affected by weather patterns and seasonality, with production and shipment levels typically higher in spring, summer, and fall[92] - The Magnesia Specialties business produces magnesia-based chemical products and dolomitic lime, primarily for industrial, agricultural, environmental, and steel and mining industries[94] Critical Accounting Policies This section states that the company's critical accounting policies remained unchanged for the six months ended June 30, 2022, consistent with those disclosed in the 2021 annual report - The company's critical accounting policies remained unchanged for the six months ended June 30, 2022[95] Results of Operations This section analyzes the company's operating performance for Q2 and the first half of 2022, including Adjusted EBITDA, Adjusted Operating Earnings, and EPS, along with revenue, gross profit, volume, and pricing trends by business segment and product line, discussing cost pressures and market demand Adjusted EBITDA Reconciliation This section provides a reconciliation from net earnings from continuing operations to Adjusted EBITDA, a metric used to assess the company's period operating performance by excluding non-recurring items such as interest, taxes, depreciation, amortization, equity in earnings (losses) of nonconsolidated equity affiliates, acquisition and integration costs, and divestiture gains Adjusted EBITDA Reconciliation (As of June 30, 2022) | Metric | Q2 2022 (million USD) | Q2 2021 (million USD) | H1 2022 (million USD) | H1 2021 (million USD) | | :--- | :--- | :--- | :--- | :--- | | Net Earnings from Continuing Operations Attributable to Martin Marietta | 353.2 | 225.8 | 377.7 | 291.1 | | Add (Subtract): | | | | | | Interest Expense, Net of Interest Income | 42.2 | 28.2 | 82.7 | 55.5 | | Income Tax Expense Attributable to Controlling Interest | 104.4 | 62.2 | 110.2 | 78.1 | | Depreciation, Depletion, and Amortization and Equity in Earnings (Losses) of Nonconsolidated Equity Affiliates | 127.3 | 106.1 | 252.3 | 201.9 | | Acquisition and Integration Costs | 2.9 | 9.3 | 4.3 | 10.6 | | Impact of Inventory Step-up in Acquisition Accounting | — | 7.6 | — | 7.6 | | Divestiture Gain | (151.7) | — | (151.7) | — | | Adjusted EBITDA | 478.3 | 439.2 | 675.5 | 644.8 | - Q2 2022 Adjusted EBITDA was 478.3 million USD, an 8.9% increase year-over-year; for the first half, it was 675.5 million USD, up 4.8%[97] Adjusted Earnings from Operations and EPS Reconciliation This section provides a reconciliation from GAAP operating earnings to adjusted operating earnings and from GAAP diluted EPS to adjusted diluted EPS, excluding non-recurring items such as acquisition and integration costs, the impact of inventory step-up in acquisition accounting, and divestiture gains Adjusted Consolidated Operating Earnings Reconciliation (As of June 30, 2022) | Metric | Q2 2022 (million USD) | Q2 2021 (million USD) | H1 2022 (million USD) | H1 2021 (million USD) | | :--- | :--- | :--- | :--- | :--- | | GAAP Consolidated Operating Earnings | 478.6 | 307.5 | 538.4 | 406.8 | | Add (Subtract): | | | | | | Acquisition and Integration Costs | 2.9 | 9.3 | 4.3 | 10.6 | | Impact of Inventory Step-up in Acquisition Accounting | — | 7.6 | — | 7.6 | | Divestiture Gain | (151.7) | — | (151.7) | — | | Adjusted Consolidated Operating Earnings | 329.8 | 324.4 | 391.0 | 425.0 | Adjusted Diluted Earnings Per Share Reconciliation (As of June 30, 2022) | Metric | Q2 2022 (per share) | Q2 2021 (per share) | H1 2022 (per share) | H1 2021 (per share) | | :--- | :--- | :--- | :--- | :--- | | GAAP Diluted Earnings Per Share from Continuing Operations | 5.65 | 3.61 | 6.04 | 4.65 | | Impact of Acquisition and Integration Costs | 0.04 | 0.11 | 0.05 | 0.13 | | Impact of Divestiture Gain | (1.73) | — | (1.73) | — | | Impact of Inventory Step-up in Acquisition Accounting | — | 0.09 | — | 0.09 | | Adjusted Diluted Earnings Per Share from Continuing Operations | 3.96 | 3.81 | 4.36 | 4.87 | - Q2 2022 Adjusted Diluted EPS was 3.96 USD, up 3.9% year-over-year; for the first half, it was 4.36 USD, down 10.5%[99][100] Mix-Adjusted Average Selling Price (ASP) This section explains the calculation of mix-adjusted average selling price (a non-GAAP metric) used to assess the effectiveness of the company's pricing strategy by excluding product, geographic, and other mix impacts, and provides mix-adjusted ASP and its changes for aggregates and cement products across business segments - Mix-adjusted ASP is calculated by comparing current period shipments to comparable prior period shipments of similar products, aiming to assess the effectiveness of the company's pricing strategy[100] Mix-Adjusted Average Selling Price (ASP) and Changes (As of June 30, 2022) | Product/Business Segment | Q2 2022 Reported ASP | Q2 2022 Mix-Adjusted ASP | Q2 2022 Reported ASP Change | Q2 2022 Mix-Adjusted ASP Change | | :--- | :--- | :--- | :--- | :--- | | Organic East Group - Aggregates | $16.79 | $16.71 | 7.6% | 7.1% | | Organic West Group - Aggregates | $15.67 | $15.20 | 11.7% | 8.3% | | Total Organic Aggregates | $16.40 | $16.20 | 8.8% | 7.5% | | Cement | $140.00 | $137.33 | 14.7% | 12.5% | | Product/Business Segment | H1 2022 Reported ASP | H1 2022 Mix-Adjusted ASP | H1 2022 Reported ASP Change | H1 2022 Mix-Adjusted ASP Change | | :--- | :--- | :--- | :--- | :--- | | Organic East Group - Aggregates | $16.91 | $16.85 | 6.6% | 6.3% | | Organic West Group - Aggregates | $15.37 | $14.92 | 10.3% | 7.1% | | Total Organic Aggregates | $16.34 | $16.16 | 7.7% | 6.5% | | Cement | $134.79 | $132.75 | 13.5% | 11.7% | - In Q2 2022, organic aggregates mix-adjusted ASP increased by 7.5%, and cement mix-adjusted ASP increased by 12.5%, indicating an effective pricing strategy[103] Quarter Ended June 30, 2022 Financial Highlights This section summarizes the company's key financial performance for Q2 2022, including significant growth in total revenue, operating earnings, net earnings, and EPS, as well as changes in adjusted metrics Q2 2022 Financial Highlights (Year-over-Year) | Metric | Q2 2022 (million USD/per share) | Q2 2021 (million USD/per share) | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Total Revenue | $1,641.7 | $1,377.9 | 19.1% | | Building Materials Business Product and Service Revenue | $1,449.2 | $1,225.3 | 18.3% | | Magnesia Specialties Revenue | $74.6 | $70.0 | 6.6% | | Consolidated Gross Profit | $425.2 | $385.1 | 10.4% | | Consolidated Operating Earnings | $478.6 | $307.5 | 55.7% | | Adjusted Consolidated Operating Earnings | $329.8 | $324.4 | 1.7% | | Net Earnings from Continuing Operations Attributable to Martin Marietta | $353.2 | $225.8 | 56.4% | | Adjusted EBITDA | $478.3 | $439.2 | 8.9% | | Diluted Earnings Per Share from Continuing Operations | $5.65 | $3.61 | 56.5% | | Adjusted Diluted Earnings Per Share from Continuing Operations | $3.96 | $3.81 | 3.9% | Quarter Ended June 30, 2022 Segment and Product Line Performance This section details the Q2 2022 revenue, gross profit, selling, general and administrative expenses, and operating earnings for each business segment and product line; aggregates business saw increased shipments and pricing, but gross margin was impacted by rising costs; cement business performed strongly, while ready mixed concrete and asphalt businesses were affected by divestitures and accelerating cost increases Building Materials Business (Quarter) In Q2 2022, Building Materials organic aggregates shipments grew 1.8%, with pricing up 8.8% (7.5% mix-adjusted); cement shipments hit a quarterly record, with pricing up 14.7%; ready mixed concrete and asphalt gross margins faced pressure from divestitures and accelerating cost increases Q2 2022 Aggregates Shipments and Pricing Changes (Year-over-Year) | Metric | Shipment Change (%) | Pricing Change (%) | | :--- | :--- | :--- | | East Group | (1.0)% | 7.6% | | West Group | 30.0% | 11.6% | | Total Aggregates Business | 9.3% | 8.4% | | Organic Aggregates Business | 1.8% | 8.8% | Q2 2022 Building Materials Business Product Line Shipments and Average Selling Price (Year-over-Year) | Product Line | 2022 Shipments (million) | 2021 Shipments (million) | Shipment Change (%) | 2022 Average Selling Price | 2021 Average Selling Price | Selling Price Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Aggregates (tons) | 57.8 | 52.9 | 9.3% | $16.34 | $15.07 | 8.4% | | Cement (tons) | 1.1 | 0.9 | 19.8% | $140.00 | $122.11 | 14.7% | | Ready Mixed Concrete (cubic yards) | 1.8 | 2.3 | (22.6)% | $124.51 | $114.27 | 9.0% | | Asphalt (tons) | 2.6 | 1.8 | 40.2% | $60.54 | $48.83 | 24.0% | - Aggregates product gross profit increased 13.2% to 309 million USD, but gross margin decreased by 170 basis points to 32.3%, primarily due to significant increases in energy, contract services, supplies, and internal freight costs[115] - Cement product gross profit increased 41.7% to 51.1 million USD, with gross margin expanding by 140 basis points to 32.4%, benefiting from volume and pricing growth, partially offset by energy costs and unplanned kiln outages[116] - Ready mixed concrete product revenue and gross profit decreased by 15.8% and 25.1%, respectively, primarily due to the divestiture of Colorado and Central Texas operations[117] - Asphalt shipments and pricing increased by 40.2% and 24.0%, respectively, but rapidly rising liquid asphalt costs compressed gross margin by 880 basis points[118] Aggregates End-Use Markets (Quarter) In Q2 2022, organic aggregates shipments increased in both infrastructure and residential markets, while the nonresidential market remained flat, and the ChemRock/Rail market experienced a decline - Infrastructure market organic aggregates shipments increased 5%, accounting for 35% of Q2 organic aggregates shipments[112] - Nonresidential market organic aggregates shipments were flat, accounting for 35% of Q2 organic aggregates shipments[112] - Residential market organic aggregates shipments increased 4%, accounting for 25% of Q2 organic aggregates shipments[113] - ChemRock/Rail market shipments decreased 10%, accounting for 5% of Q2 organic aggregates shipments[113] Magnesia Specialties Business (Quarter) In Q2 2022, Magnesia Specialties business revenue increased, but gross profit declined due to rising energy costs - Magnesia Specialties Q2 product revenue increased 6.6% to 74.6 million USD, driven by strong global demand for magnesia-based chemical products[119] - Product gross profit decreased 7.6% to 25.8 million USD, primarily due to rising energy costs impacting margins[119] Consolidated Operating Results (Quarter) In Q2 2022, consolidated selling, general and administrative expenses as a percentage of total revenue slightly increased, operating earnings grew significantly due to divestiture gains, and other operating and nonoperating income were positively impacted by divestiture and debt repurchase gains - Q2 2022 consolidated selling, general and administrative expenses were 6.3% of total revenue, up 30 basis points from 6.0% in the prior-year period[120] - Q2 operating earnings were 478.6 million USD, a significant increase from 307.5 million USD in the prior-year period, primarily benefiting from 151.7 million USD in earnings from the divestiture of Colorado and Central Texas ready mixed concrete operations[120] - Other operating income, net, was 160.4 million USD, primarily attributable to 151.7 million USD in earnings from the divestiture of Colorado and Central Texas ready mixed concrete operations[121] - Other nonoperating income, net, was 22 million USD, including 11.6 million USD in pre-tax earnings related to the repurchase of company debt[123] Six Months Ended June 30, 2022 Financial Highlights This section summarizes the company's key financial performance for the first half of 2022, including significant growth in total revenue, operating earnings, net earnings, and EPS, as well as changes in adjusted metrics H1 2022 Financial Highlights (Year-over-Year) | Metric | H1 2022 (million USD/per share) | H1 2021 (million USD/per share) | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Total Revenue | $2,872.5 | $2,360.3 | 21.7% | | Building Materials Business Product and Service Revenue | $2,526.2 | $2,082.0 | 21.3% | | Magnesia Specialties Revenue | $145.4 | $135.2 | 7.5% | | Consolidated Gross Profit | $581.3 | $559.8 | 3.8% | | Consolidated Operating Earnings | $538.4 | $406.8 | 32.4% | | Adjusted Consolidated Operating Earnings | $391.0 | $425.0 | (8.0)% | | Net Earnings from Continuing Operations Attributable to Martin Marietta | $377.7 | $291.1 | 29.6% | | Adjusted EBITDA | $675.5 | $644.8 | 4.8% | | Diluted Earnings Per Share from Continuing Operations | $6.04 | $4.65 | 30.0% | | Adjusted Diluted Earnings Per Share from Continuing Operations | $4.36 | $4.87 | (10.5)% | Six Months Ended June 30, 2022 Segment and Product Line Performance This section details the first half of 2022 revenue, gross profit, selling, general and administrative expenses, and operating earnings for each business segment and product line; aggregates business saw increased shipments and pricing, but gross margin was impacted by rising energy costs; cement business performed strongly, while ready mixed concrete and asphalt businesses faced cost pressures Building Materials Business (Six Months) In the first half of 2022, Building Materials organic aggregates shipments grew 2.4%, with pricing up 7.7% (6.5% mix-adjusted); cement shipments increased 14.9%, with pricing up 13.5%; ready mixed concrete and asphalt gross margins declined due to rising raw material and diesel costs H1 2022 Aggregates Shipments and Pricing Changes (Year-over-Year) | Metric | Shipment Change (%) | Pricing Change (%) | | :--- | :--- | :--- | | East Group | (0.1)% | 6.6% | | West Group | 31.2% | 10.4% | | Total Aggregates Business | 11.0% | 7.2% | | Organic Aggregates Business | 2.4% | 7.7% | H1 2022 Building Materials Business Product Line Shipments and Average Selling Price (Year-over-Year) | Product Line | 2022 Shipments (million) | 2021 Shipments (million) | Shipment Change (%) | 2022 Average Selling Price | 2021 Average Selling Price | Selling Price Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Aggregates (tons) | 99.9 | 90.0 | 11.0% | $16.27 | $15.17 | 7.2% | | Cement (tons) | 2.1 | 1.9 | 14.9% | $134.79 | $118.80 | 13.5% | | Ready Mixed Concrete (cubic yards) | 4.2 | 4.4 | (4.9)% | $122.34 | $113.25 | 8.0% | | Asphalt (tons) | 3.3 | 1.9 | 67.4% | $60.93 | $48.85 | 24.7% | - Aggregates product gross margin decreased by 370 basis points to 25.0%, primarily due to rising energy, fuel, supplies, repair, and contract services costs offsetting price increases[134] - Texas cement shipments increased 14.9%, with pricing up 13.5%, and product gross margin expanded by 420 basis points to 26.9%[135] - Ready mixed concrete product gross margin decreased by 80 basis points to 6.9%, primarily impacted by rising raw material and diesel costs[136] - Asphalt product and service gross margin decreased by 900 basis points to 4.9%, primarily due to delayed construction season in Minnesota and rising liquid asphalt costs in Colorado[137] Aggregates End-Use Markets (Six Months) In the first half of 2022, organic aggregates shipments increased in both infrastructure and residential markets, while the nonresidential market remained flat, and the ChemRock/Rail market also saw growth - Infrastructure market organic aggregates shipments increased 6%, accounting for 34% of H1 organic aggregates shipments[131] - Nonresidential market organic aggregates shipments were flat, accounting for 35% of H1 organic aggregates shipments[131] - Residential market organic aggregates shipments increased 2%, accounting for 26% of H1 organic aggregates shipments[132] - ChemRock/Rail market shipments increased 4%, accounting for 5% of H1 organic aggregates shipments[133] Magnesia Specialties Business (Six Months) In the first half of 2022, Magnesia Specialties business revenue increased, but gross profit declined due to rising costs - Magnesia Specialties H1 product revenue increased 7.5% to 145.4 million USD, driven by strong global demand for magnesia-based chemical products[138] - Product gross profit was 52.6 million USD, a decrease from 56.3 million USD in the prior-year period, with gross margin declining by 550 basis points to 36.2%, primarily due to rising energy, supplies, and raw material costs[138] Consolidated Operating Results (Six Months) In the first half of 2022, consolidated selling, general and administrative expenses as a percentage of total revenue slightly increased, operating earnings grew significantly due to divestiture gains, and other operating and nonoperating income were positively impacted by divestiture and debt repurchase gains - H1 2022 consolidated selling, general and administrative expenses were 7.0% of total revenue, a slight increase from 6.9% in the prior-year period[139] - H1 operating earnings were 538.4 million USD, a significant increase from 406.8 million USD in the prior-year period, primarily benefiting from 151.7 million USD in earnings from the divestiture of Colorado and Central Texas ready mixed concrete operations[139] - Other operating income, net, was 162.6 million USD, primarily attributable to 151.7 million USD in earnings from the divestiture of Colorado and Central Texas ready mixed concrete operations[140] - Other nonoperating income, net, was 32.9 million USD, including 11.6 million USD in pre-tax earnings related to the repurchase of company debt[142] Income Tax Expense (Six Months) In the first half of 2022, the company's effective income tax rate from continuing operations increased, primarily due to the divestiture of operations Effective Income Tax Rate from Continuing Operations (As of June 30, 2022) | Period | Effective Income Tax Rate | | :--- | :--- | | H1 2022 | 22.6% | | H1 2021 | 21.2% | - The effective income tax rate for the first half of 2022 increased to 22.6% from 21.2% in the prior-year period, primarily due to the divestiture of Colorado and Central Texas ready mixed concrete operations[143] Liquidity and Capital Resources This section discusses the company's cash flow, capital expenditures, stock repurchases, debt financing instruments and their compliance, and anticipates the company's future capital capacity to meet operational needs and investment plans Cash Flow from Operating Activities and Capital Expenditures (As of June 30, 2022) | Metric | H1 2022 (million USD) | H1 2021 (million USD) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 286.2 | 441.2 | | Additions to Property, Plant and Equipment | (220.7) | (213.0) | - H1 2022 operating cash flow was 286.2 million USD, a decrease from the prior-year period, primarily due to changes in working capital[144] - The company repurchased 130,551 shares of common stock for a total cost of 50 million USD in the first half of 2022; as of June 30, 2022, 13,390,401 shares remained authorized for repurchase by the Board of Directors[146] - The company has 400 million USD in trade accounts receivable securitization financing and an 800 million USD five-year senior unsecured revolving credit facility, both with no outstanding borrowings as of June 30, 2022, and complied with the debt covenant for a consolidated net debt to Adjusted EBITDA ratio not exceeding 3.50x[147][148][149] - As of June 30, 2022, the company had 1.1974 billion USD in unused borrowing capacity, with existing cash, internal cash flow, and financing resources expected to be sufficient to support future operations, debt service, capital expenditures, potential acquisitions, and dividend payments[150] Trends and Risks This section alerts investors that the company's forward-looking statements involve risks and uncertainties, listing various factors that could cause actual results to differ materially from expectations, including economic events, pricing fluctuations, government funding, construction spending, weather conditions, fuel costs, supply chain challenges, regulatory changes, and inflation - The company's forward-looking statements involve risks and uncertainties, and actual results may differ materially from expectations[154][155] - Key risk factors include: sales volume declines due to economic events, falling aggregates pricing, cement and ready mixed concrete supply/demand and price fluctuations, government transportation or infrastructure project funding levels and timing, construction spending levels, rising residential mortgage interest rates, adverse weather conditions, fluctuating fuel costs (especially diesel), supply chain challenges, equipment failures, COVID-19 pandemic impacts, increased government regulation, transportation availability and costs, labor shortages, inflation, and failure to realize acquisition synergies[156][157] Other Matters This section advises investors to review the company's annual reports, quarterly reports, and 8-K reports filed with the SEC for additional information, and provides avenues for accessing these documents - The company advises investors to review its annual reports and Forms 10-K, 10-Q, and 8-K filed with the SEC, which are available on the company's website and the SEC's website[153][160] Investor Access to Company Filings This section provides specific ways for investors to access the company's SEC filings, including through written request, the company's website, and the SEC's EDGAR system - Investors can obtain the company's annual reports, press releases, and SEC filings via written request, the company's website (www.martinmarietta.com), or the SEC's website (www.sec.gov)[160](index=160&type=chunk) Item 3. Quantitative and Qualitative Disclosures About Market Risk This section discloses the various market risks faced by the company, including those related to interest-rate-sensitive construction and steel industries, changes in short-term interest rates, pension expense, income taxes, and fluctuations in energy and commodity costs - The company's operations are highly dependent on interest-rate-sensitive construction and steel industries, with residential and nonresidential construction markets accounting for 61% of H1 2022 aggregates shipments[163] - Rising federal funds rates could lead to difficulties in financing construction projects or decreased consumer confidence, impacting market activity levels[163] - The company faces short-term interest rate risk, with its 800 million USD revolving credit facility and 400 million USD trade accounts receivable securitization financing both utilizing floating interest rates[165] - Pension expense is affected by discount rates and expected return on assets; following the February 2022 pension plan remeasurement, the discount rate increased by approximately 50 basis points from year-end 2021[166] - Energy costs (including diesel, natural gas, electricity, coal, and liquid asphalt) are significant production costs for the company; in H1 2022, organic energy expense increased by approximately 59% year-over-year, primarily due to rising diesel, natural gas, electricity, and gasoline prices[168] - Cement, as a commodity, is highly sensitive to supply and demand changes; a 10% change in cement costs could increase ready mixed concrete product line costs by 32.3 million USD[170][171] Item 4. Controls and Procedures This section states that as of June 30, 2022, the company's management (including the CEO and CFO) assessed and determined that disclosure controls and procedures were effective, and internal control over financial reporting was effective, having completed the integration of information systems for the Pacific operations acquired in 2021 - As of June 30, 2022, company disclosure controls and procedures were determined to be effective[173] - The information systems for the Pacific operations acquired in October 2021 have been integrated into the company's current point-of-sale and general ledger systems, and as of June 30, 2022, the company's internal control over financial reporting was determined to be effective[173] PART II. OTHER INFORMATION This section contains other important disclosures beyond financial information, including legal proceedings, risk factors, equity security sales, mine safety disclosures, and a list of report exhibits Item 1. Legal Proceedings This section refers to the disclosure regarding the company's legal and administrative proceedings in Note 10 of the financial statements - Information regarding legal proceedings is provided in Note 10, 'Commitments and Contingencies, Legal and Administrative Proceedings,' of this Form 10-Q[175] Item 1A. Risk Factors This section refers to the disclosure regarding risk factors and forward-looking statements in Part I, Item 1A of the company's 2021 Annual Report on Form 10-K - Information regarding risk factors is provided in Part I, Item 1A, 'Risk Factors and Forward-Looking Statements,' of Martin Marietta's Annual Report on Form 10-K for the year ended December 31, 2021[176] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section discloses the execution of the company's common stock repurchase program, including the number of shares repurchased and the remaining number of shares available for repurchase Issuer Purchases of Equity Securities (As of June 30, 2022) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Shares Yet to Be Purchased Under Plans | | :--- | :--- | :--- | :--- | :--- | | April 1 - April 30, 2022 | — | $— | — | 13,390,401 | | May 1 - May 31, 2022 | — | $— | — | 13,390,401 | | June 1 - June 30, 2022 | — | $— | — | 13,390,401 | | Total | — | | — | | - As of June 30, 2022, the company made no common stock repurchases in Q2; the Board of Directors authorized a maximum repurchase of 20 million shares, with 13,390,401 shares remaining available for repurchase as of June 30, 2022[177] Item 4. Mine Safety Disclosures This section states that information regarding mine safety violations or other regulatory matters is included in Exhibit 95 of this quarterly report - Information regarding mine safety violations or other regulatory matters is included in Exhibit 95 to this quarterly report[178] Item 6. Exhibits This section lists all exhibits filed with Form 10-Q, including CEO and CFO certifications, mine safety disclosures, and XBRL-related documents Exhibit List | Exhibit Number | Description | | :--- | :--- | | 31.01 | Certification of Chief Executive Officer pursuant to Section 13a-14 of the Securities Exchange Act of 1934 (adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002), dated July 28, 2022 | | 31.02 | Certification of Chief Financial Officer pursuant to Section 13a-14 of the Securities Exchange Act of 1934 (adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002), dated July 28, 2022 | | 32.01 | Written Statement of Chief Executive Officer pursuant to 18 U.S.C. 1350 (adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002), dated July 28, 2022 | | 32.02 | Written Statement of Chief Financial Officer pursuant to 18 U.S.C. 1350 (adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002), dated July 28, 2022 | | 95 | Mine Safety Disclosures | | 101.INS | Inline XBRL Instance Document | | 101.SCH | Inline XBRL Taxonomy Extension Schema Document | | 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | | 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | | 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | | 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | Signatures - This report was signed by Martin Marietta Materials, Inc. on July 28, 2022, by James A. J. Nickolas, Senior Vice President and Chief Financial Officer[182]