SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

OR

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number 1-12744

 

MARTIN MARIETTA MATERIALS, INC.

(Exact name of registrant as specified in its charter)

 

 North Carolina

 

56-1848578

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

 

2710 Wycliff Road, Raleigh, NC

 

27607-3033

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code 919-781-4550

Former name: None

Former name, former address and former fiscal year, if changes since last report.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  þ    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  þ    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 

þ

  

Accelerated filer

 

o

 

 

 

 

Non-accelerated filer

 

o  

  

Smaller reporting company

 

o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  o    No   þ

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date.

 

Class

 

Outstanding as of May 1, 2015

Common Stock, $0.01 par value

 

67,481,231

 

 

 

 

 

 


 

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

FORM 10-Q

For the Quarter Ended March 31, 2015

 

 

Page

Part I. Financial Information:

 

 

Item 1. Financial Statements.

 

 

 

Consolidated Balance Sheets – March 31, 2015, December 31, 2014 and March 31, 2014

 

 

3

Consolidated Statements of Earnings and Comprehensive Earnings - Three Months Ended March 31, 2015 and 2014

 

 

 

4

Consolidated Statements of Cash Flows - Three Months Ended March 31, 2015 and 2014

 

 

5

Consolidated Statement of Total Equity - Three Months Ended March 31, 2015

 

 

6

Notes to Consolidated Financial Statements

 

 

7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

 

22

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

 

44

Item 4. Controls and Procedures.

 

 

45

Part II. Other Information:

 

 

 

Item 1. Legal Proceedings.

 

 

46

Item 1A. Risk Factors.

 

 

46

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

 

46

Item 4. Mine Safety Disclosures.

 

 

46

Item 6. Exhibits.

 

 

47

Signatures

 

 

48

Exhibit Index

 

 

49

 

 

 

 

 

 

 

 

Page 2 of 49


 

PART I.  FINANCIAL INFORMATION

 

Item 1.  Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2015

 

 

2014

 

 

2014

 

 

 

(Unaudited)

 

 

(Audited)

 

 

(Unaudited)

 

 

 

(Dollars in Thousands, Except Per Share Data)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

56,366

 

 

$

108,651

 

 

$

35,801

 

Accounts receivable, net

 

 

381,389

 

 

 

421,001

 

 

 

242,587

 

Inventories, net

 

 

505,047

 

 

 

484,919

 

 

 

354,718

 

Current deferred income tax benefits

 

 

235,367

 

 

 

244,638

 

 

 

73,320

 

Other current assets

 

 

103,560

 

 

 

29,607

 

 

 

51,788

 

Total Current Assets

 

 

1,281,729

 

 

 

1,288,816

 

 

 

758,214

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

5,694,546

 

 

 

5,691,676

 

 

 

4,001,505

 

Allowances for depreciation, depletion and amortization

 

 

(2,329,440

)

 

 

(2,288,906

)

 

 

(2,207,969

)

Net property, plant and equipment

 

 

3,365,106

 

 

 

3,402,770

 

 

 

1,793,536

 

Goodwill

 

 

2,071,471

 

 

 

2,068,799

 

 

 

616,621

 

Operating permits, net

 

 

497,841

 

 

 

499,487

 

 

 

16,935

 

Other intangibles, net

 

 

94,113

 

 

 

95,718

 

 

 

30,808

 

Other noncurrent assets

 

 

107,386

 

 

 

108,802

 

 

 

39,143

 

Total Assets

 

$

7,417,646

 

 

$

7,464,392

 

 

$

3,255,257

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Bank overdraft

 

$

 

 

$

183

 

 

$

 

Accounts payable

 

 

184,066

 

 

 

202,476

 

 

 

98,775

 

Accrued salaries, benefits and payroll taxes

 

 

23,590

 

 

 

36,576

 

 

 

12,904

 

Pension and postretirement benefits

 

 

6,637

 

 

 

6,953

 

 

 

2,356

 

Accrued insurance and other taxes

 

 

58,742

 

 

 

58,356

 

 

 

27,265

 

Current maturities of long-term debt and short-term facilities

 

 

14,406

 

 

 

14,336

 

 

 

12,403

 

Accrued interest

 

 

22,461

 

 

 

16,136

 

 

 

18,077

 

Other current liabilities

 

 

33,653

 

 

 

61,632

 

 

 

21,978

 

Total Current Liabilities

 

 

343,555

 

 

 

396,648

 

 

 

193,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

1,566,617

 

 

 

1,571,059

 

 

 

1,055,541

 

Pension, postretirement and postemployment benefits

 

 

252,923

 

 

 

249,333

 

 

 

80,457

 

Noncurrent deferred income taxes

 

 

753,727

 

 

 

734,583

 

 

 

272,346

 

Other noncurrent liabilities

 

 

158,641

 

 

 

160,021

 

 

 

108,862

 

Total Liabilities

 

 

3,075,463

 

 

 

3,111,644

 

 

 

1,710,964

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share

 

 

673

 

 

 

671

 

 

 

462

 

Preferred stock, par value $0.01 per share

 

 

 

 

 

 

 

 

 

Additional paid-in capital

 

 

3,255,809

 

 

 

3,243,619

 

 

 

442,551

 

Accumulated other comprehensive loss

 

 

(106,723

)

 

 

(106,159

)

 

 

(42,744

)

Retained earnings

 

 

1,190,807

 

 

 

1,213,035

 

 

 

1,108,516

 

Total Shareholders' Equity

 

 

4,340,566

 

 

 

4,351,166

 

 

 

1,508,785

 

Noncontrolling interests

 

 

1,617

 

 

 

1,582

 

 

 

35,508

 

Total Equity

 

 

4,342,183

 

 

 

4,352,748

 

 

 

1,544,293

 

Total Liabilities and Equity

 

$

7,417,646

 

 

$

7,464,392

 

 

$

3,255,257

 

 

 

See accompanying notes to the consolidated financial statements.

 

Page 3 of 49


 

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

 

2014

 

 

 

(In Thousands, Except Per Share Data)

 

 

 

(Unaudited)

 

Net Sales

 

$

631,876

 

 

$

379,678

 

Freight and delivery revenues

 

 

59,471

 

 

 

48,951

 

Total revenues

 

 

691,347

 

 

 

428,629

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

557,615

 

 

 

353,843

 

Freight and delivery costs

 

 

59,471

 

 

 

48,951

 

Total cost of revenues

 

 

617,086

 

 

 

402,794

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

74,261

 

 

 

25,835

 

Selling, general & administrative expenses

 

 

49,450

 

 

 

34,247

 

Acquisition-related expenses, net

 

 

1,604

 

 

 

9,512

 

Other operating income, net

 

 

(2,364

)

 

 

(2,026

)

Earnings (Loss) from Operations

 

 

25,571

 

 

 

(15,898

)

 

 

 

 

 

 

 

 

 

Interest expense

 

 

19,331

 

 

 

12,201

 

Other nonoperating expenses, net

 

 

893

 

 

 

3,463

 

Earnings (Loss) from continuing operations before taxes on income

 

 

5,347

 

 

 

(31,562

)

Income tax benefit

 

 

(812

)

 

 

(8,424

)

Earnings (Loss) from Continuing Operations

 

 

6,159

 

 

 

(23,138

)

Loss on discontinued operations, net of related tax benefit of $1

 

 

 

 

 

(15

)

Consolidated net earnings (loss)

 

 

6,159

 

 

 

(23,153

)

Less: Net earnings (loss) attributable to noncontrolling interests

 

 

33

 

 

 

(1,535

)

Net Earnings (Loss) Attributable to Martin Marietta Materials, Inc.

 

$

6,126

 

 

$

(21,618

)

 

 

 

 

 

 

 

 

 

Net Earnings (Loss) Attributable to Martin Marietta Materials, Inc.:

 

 

 

 

 

 

 

 

Earnings (Loss) from continuing operations

 

$

6,126

 

 

$

(21,603

)

Loss from discontinued operations

 

 

 

 

 

(15

)

 

 

$

6,126

 

 

$

(21,618

)

 

 

 

 

 

 

 

 

 

Consolidated Comprehensive Earnings (Loss):  (See Note 1)

 

 

 

 

 

 

 

 

Earnings (Loss) attributable to Martin Marietta Materials, Inc.

 

$

5,562

 

 

$

(20,248

)

Earnings (Loss) attributable to noncontrolling interests

 

 

35

 

 

 

(1,534

)

 

 

$

5,597

 

 

$

(21,782

)

Net Earnings (Loss) Attributable to Martin Marietta Materials, Inc.

 

 

 

 

 

 

 

 

Per Common Share:

 

 

 

 

 

 

 

 

Basic from continuing operations attributable to common shareholders

 

$

0.07

 

 

$

(0.47

)

Discontinued operations attributable to common shareholders

 

 

 

 

 

 

 

 

$

0.07

 

 

$

(0.47

)

 

 

 

 

 

 

 

 

 

Diluted from continuing operations attributable to common shareholders

 

$

0.07

 

 

$

(0.47

)

Discontinued operations attributable to common shareholders

 

 

 

 

 

 

 

 

$

0.07

 

 

$

(0.47

)

Weighted-Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

67,411

 

 

 

46,315

 

Diluted

 

 

67,676

 

 

 

46,315

 

 

 

 

 

 

 

 

 

 

Cash Dividends Per Common Share

 

$

0.40

 

 

$

0.40

 

 

 

See accompanying notes to the consolidated financial statements.

 

Page 4 of 49


 

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

 

2014

 

 

 

(Dollars in Thousands)

 

 

 

(Unaudited)

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Consolidated net earnings (loss)

 

$

6,159

 

 

$

(23,153

)

Adjustments to reconcile consolidated net earnings (loss) to net cash

   provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

67,268

 

 

 

42,466

 

Stock-based compensation expense

 

 

2,907

 

 

 

1,409

 

Gains on divestitures and sales of assets

 

 

(1,576

)

 

 

(1,106

)

Deferred income taxes

 

 

27,774

 

 

 

(5,063

)

Excess tax benefits from stock-based compensation transactions

 

 

(109

)

 

 

(636

)

Other items, net

 

 

1,192

 

 

 

1,223

 

Changes in operating assets and liabilities, net of effects of acquisitions

   and divestitures:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

40,006

 

 

 

2,834

 

Inventories, net

 

 

(19,071

)

 

 

(7,411

)

Accounts payable

 

 

(20,328

)

 

 

(4,825

)

Other assets and liabilities, net

 

 

(69,097

)

 

 

874

 

Net Cash Provided by Operating Activities

 

 

35,125

 

 

 

6,612

 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

(56,085

)

 

 

(36,913

)

Acquisitions, net

 

 

(10,589

)

 

 

(50

)

Proceeds from divestitures and sales of assets

 

 

1,475

 

 

 

1,401

 

Repayments from affiliate

 

 

1,808

 

 

 

 

Net Cash Used for Investing Activities

 

 

(63,391

)

 

 

(35,562

)

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Borrowings of long-term debt

 

 

 

 

 

60,000

 

Repayments of long-term debt

 

 

(4,738

)

 

 

(23,125

)

Payments on capital lease obligations

 

 

(795

)

 

 

(525

)

Change in bank overdraft

 

 

(183

)

 

 

(2,556

)

Dividends paid

 

 

(28,354

)

 

 

(18,604

)

Issuances of common stock

 

 

9,942

 

 

 

6,488

 

Excess tax benefits from stock-based compensation transactions

 

 

109

 

 

 

636

 

Net Cash (Used for) Provided by Financing Activities

 

 

(24,019

)

 

 

22,314

 

Net Decrease in Cash and Cash Equivalents

 

 

(52,285

)

 

 

(6,636

)

Cash and Cash Equivalents, beginning of period

 

 

108,651

 

 

 

42,437

 

Cash and Cash Equivalents, end of period

 

$

56,366

 

 

$

35,801

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

11,417

 

 

$

1,633

 

Cash paid for income taxes

 

$

18,678

 

 

$

53

 

 

 

See accompanying notes to the consolidated financial statements.

 

Page 5 of 49


 

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

 

CONSOLIDATED STATEMENT OF TOTAL EQUITY

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Shares of Common Stock

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Accumulated Other Comprehensive Loss

 

 

Retained Earnings

 

 

Total Shareholders' Equity

 

 

Noncontrolling Interests

 

 

Total Equity

 

Balance at December 31, 2014

 

 

67,293

 

 

$

671

 

 

$

3,243,619

 

 

$

(106,159

)

 

$

1,213,035

 

 

$

4,351,166

 

 

$

1,582

 

 

$

4,352,748

 

Consolidated net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,126

 

 

 

6,126

 

 

 

33

 

 

 

6,159

 

Other comprehensive (loss) earnings

 

 

 

 

 

 

 

 

 

 

 

(564

)

 

 

 

 

 

(564

)

 

 

2

 

 

 

(562

)

Dividends declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28,354

)

 

 

(28,354

)

 

 

 

 

 

(28,354

)

Issuances of common stock for stock award plans

 

 

182

 

 

 

2

 

 

 

9,284

 

 

 

 

 

 

 

 

 

9,286

 

 

 

 

 

 

9,286

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

2,906

 

 

 

 

 

 

 

 

 

2,906

 

 

 

 

 

 

2,906

 

Balance at March 31, 2015

 

 

67,475

 

 

$

673

 

 

$

3,255,809

 

 

$

(106,723

)

 

$

1,190,807

 

 

$

4,340,566

 

 

$

1,617

 

 

$

4,342,183

 

 

 

 

 

 

See accompanying notes to the consolidated financial statements.

 

Page 6 of 49


 

MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

FORM 10-Q

For the Quarter Ended March 31, 2015

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

1.

Significant Accounting Policies

Organization

Martin Marietta Materials, Inc. (the “Corporation” or “Martin Marietta”) is engaged principally in the construction aggregates business. The aggregates product line accounted for 58% of 2014 consolidated net sales and includes crushed stone, sand and gravel, and is used for construction of highways and other infrastructure projects, and in the nonresidential and residential construction industries. Aggregates products are also used in the railroad, agricultural, utility and environmental industries. These aggregates products, along with the Corporation’s aggregates-related downstream product lines, which accounted for 25% of 2014 consolidated net sales and include asphalt products, ready mixed concrete and road paving construction services, are sold and shipped from a network of more than 400 quarries, distribution facilities and plants to customers in 32 states, Canada, the Bahamas and the Caribbean Islands. The aggregates and aggregates-related downstream product lines are reported collectively as the “Aggregates business”.

The Corporation currently conducts the Aggregates business through three reportable segments: the Mid-America Group, the Southeast Group and the West Group.

 

AGGREGATES BUSINESS

Reportable Segments

  

Mid-America Group

  

Southeast Group

  

West Group

Operating Locations

  

Indiana, Iowa,

northern Kansas, Kentucky, Maryland, Minnesota, Missouri,

eastern Nebraska, North Carolina, Ohio,

South Carolina,

Virginia, Washington and

West Virginia

  

Alabama, Florida, Georgia, Mississippi, Tennessee, Nova Scotia and the Bahamas

  

Arkansas, Colorado, southern Kansas,

Louisiana, western Nebraska, Nevada, Oklahoma, Texas, Utah

and Wyoming

The Corporation has a Cement segment, which was acquired July 1, 2014 and accounted for 8% of 2014 consolidated net sales, with production facilities located in Midlothian, Texas, south of Dallas/Fort Worth; Hunter Texas, south of San Antonio; and Oro Grande, near Los Angeles, California. The cement business produces Portland and specialty cements, such as masonry and oil well cements. Similar to the Aggregates business, cement is used in infrastructure projects, nonresidential and residential construction, and the railroad, agricultural, utility and environmental industries. The limestone reserves used as a raw material are a part of owned property adjacent to each of the plants. The Corporation also operates cement terminals, a packaging facility and cement grinding facility at the Crestmore plant near Riverside, California.

The Corporation has a Magnesia Specialties segment with manufacturing facilities in Manistee, Michigan and Woodville, Ohio. The Magnesia Specialties segment, which accounted for 9% of 2014 consolidated net sales, produces magnesia-based chemicals products used in industrial, agricultural and environmental applications and dolomitic lime sold primarily to customers in the steel industry.

 

 

 

Page 7 of 49

 


MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

FORM 10-Q

For the Quarter Ended March 31, 2015

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

1.

Significant Accounting Policies (continued)

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Corporation have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and in Article 10 of Regulation S-X. The Corporation has continued to follow the accounting policies set forth in the audited consolidated financial statements and related notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, the interim consolidated financial information provided herein reflects all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results of operations, financial position and cash flows for the interim periods. The consolidated results of operations for the three months ended March 31, 2015 are not indicative of the results expected for other interim periods or the full year. The consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles for complete financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014.

Revenue Recognition Standard

The FASB issued an accounting standard update that amends the accounting guidance on revenue recognition. The new standard intends to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices and improve disclosure requirements. The new standard is effective for interim and annual reporting periods beginning after December 15, 2016 and can be applied on a full retrospective or modified retrospective approach. The Corporation is currently evaluating the impact of the provisions of the new standard, and at this time does not expect the impact to be material to its results of operations.

Consolidated Comprehensive Earnings/Loss and Accumulated Other Comprehensive Loss

Consolidated comprehensive earnings/loss for the Corporation consist of consolidated net earnings or loss; adjustments for the funded status of pension and postretirement benefit plans; foreign currency translation adjustments; and the amortization of the value of terminated forward starting interest rate swap agreements into interest expense, and are presented in the Corporation’s consolidated statements of earnings and comprehensive earnings.

Comprehensive earnings attributable to Martin Marietta is as follows:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

 

2014

 

 

 

(Dollars in Thousands)

 

Net earnings (loss) attributable to Martin Marietta Materials, Inc.

 

$

6,126

 

 

$

(21,618

)

Other comprehensive (loss) earnings, net of tax

 

 

(564

)

 

 

1,370

 

Comprehensive earnings (loss) attributable to Martin Marietta Materials, Inc.

 

$

5,562

 

 

$

(20,248

)

Page 8 of 49

 


MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

FORM 10-Q

For the Quarter Ended March 31, 2015

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

1.

Significant Accounting Policies (continued)

 

Consolidated Comprehensive Earnings/Loss and Accumulated Other Comprehensive Loss (continued)

Comprehensive earnings (loss) attributable to noncontrolling interests, consisting of net earnings or loss and adjustments for the funded status of pension and postretirement benefit plans, is as follows:

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2015

 

 

2014

 

 

 

(Dollars in Thousands)

 

Net earnings (loss) attributable to noncontrolling interests

 

$

33

 

 

$

(1,535

)

Other comprehensive earnings, net of tax

 

 

2

 

 

 

1

 

Comprehensive earnings (loss) attributable to noncontrolling interests

 

$

35

 

 

$

(1,534

)

Accumulated other comprehensive loss consists of unrealized gains and losses related to the funded status of pension and postretirement benefit plans; foreign currency translation; and the unamortized value of terminated forward starting interest rate swap agreements, and is presented on the Corporation’s consolidated balance sheets. Changes in accumulated other comprehensive loss, net of tax, are as follows:

 

 

 

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

Unamortized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Terminated

 

 

Accumulated

 

 

 

Pension and

 

 

 

 

 

 

Forward Starting

 

 

Other

 

 

 

Postretirement

 

 

Foreign

 

 

Interest Rate

 

 

Comprehensive

 

 

 

Benefit Plans

 

 

Currency

 

 

Swap

 

 

Loss

 

 

 

Three Months Ended March 31, 2015

 

Balance at beginning of period

 

$

(106,688

)

 

$

3,278

 

 

$

(2,749

)

 

$

(106,159

)

Other comprehensive loss before reclassifications, net of tax

 

 

 

 

 

(2,288

)

 

 

 

 

 

(2,288

)

Amounts reclassified from accumulated other comprehensive loss, net of tax

 

 

1,537

 

 

 

 

 

 

187

 

 

 

1,724

 

Other comprehensive earnings (loss), net of tax

 

 

1,537

 

 

 

(2,288

)

 

 

187

 

 

 

(564

)

Balance at end of period

 

$

(105,151

)

 

$

990

 

 

$

(2,562

)

 

$

(106,723

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2014

 

Balance at beginning of period

 

$

(44,549

)

 

$

3,902

 

 

$

(3,467

)

 

$

(44,114

)

Other comprehensive earnings before reclassifications, net of tax

 

 

 

 

 

914

 

 

 

 

 

 

914

 

Amounts reclassified from accumulated other comprehensive loss, net of tax

 

 

282

 

 

 

 

 

 

174

 

 

 

456

 

Other comprehensive earnings, net of tax

 

 

282

 

 

 

914

 

 

 

174

 

 

 

1,370

 

Balance at end of period

 

$

(44,267

)

 

$

4,816

 

 

$

(3,293

)

 

$

(42,744

)

Page 9 of 49

 


MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

FORM 10-Q

For the Quarter Ended March 31, 2015

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

1.

Significant Accounting Policies (continued)

Consolidated Comprehensive Earnings/Loss and Accumulated Other Comprehensive Loss (continued)

Changes in net noncurrent deferred tax assets recorded in accumulated other comprehensive loss are as follows:

 

 

(Dollars in Thousands)

 

 

 

 

 

 

 

Unamortized

 

 

 

 

 

 

 

 

 

 

 

Value of

 

 

Net

 

 

 

Pension and

 

 

Terminated

 

 

Noncurrent

 

 

 

Postretirement

 

 

Forward Starting

 

 

Deferred Tax

 

 

 

Benefit Plans

 

 

Interest Rate Swap

 

 

Assets

 

 

 

Three Months Ended March 31, 2015

 

Balance at beginning of period

 

$

68,568

 

 

$

1,799

 

 

$

70,367

 

Tax effect of other comprehensive earnings

 

 

(1,016

)

 

 

(120

)

 

 

(1,136

)

Balance at end of period

 

$

67,552

 

 

$

1,679

 

 

$

69,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2014

 

Balance at beginning of period

 

$

29,198

 

 

$

2,269

 

 

$

31,467

 

Tax effect of other comprehensive earnings

 

 

(182

)

 

 

(114

)

 

 

(296

)

Balance at end of period

 

$

29,016

 

 

$

2,155

 

 

$

31,171

 

 

Reclassifications out of accumulated other comprehensive loss are as follows:

 

 

Three Months Ended

 

 

Affected line items in the

 

 

March 31,

 

 

consolidated statements of earnings

 

 

2015

 

 

2014

 

 

and comprehensive earnings

 

 

(Dollars in Thousands)

 

 

 

Pension and postretirement benefit plans

 

 

 

 

 

 

 

 

 

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

Prior service credit

 

$

(471

)

 

$

(703

)

 

 

Actuarial loss

 

 

3,026

 

 

 

1,167

 

 

 

 

 

 

2,555

 

 

 

464

 

 

Cost of sales; Selling, general
  and administrative expenses

Tax benefit

 

 

(1,016

)

 

 

(182

)

 

Income tax benefit

 

 

$

1,539

 

 

$

282

 

 

 

Unamortized value of terminated forward starting interest
   rate swap

 

 

 

 

 

 

 

 

 

 

Additional interest expense

 

$

307

 

 

$

288

 

 

Interest expense

Tax benefit

 

 

(120

)

 

 

(114

)

 

Income tax benefit

 

 

$

187

 

 

$

174

 

 

 

 

Page 10 of 49

 


MARTIN MARIETTA MATERIALS, INC. AND CONSOLIDATED SUBSIDIARIES

FORM 10-Q

For the Quarter Ended March 31, 2015

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

1.

Significant Accounting Policies (continued)

Earnings (Loss) per Common Share