CRH PUBLIC LTD CO 10-K

Item 8. Financial Statements and Supplementary Data Independent Auditor’s Report Report of Independent Registered Public Accounting Firm To the shareholders and the Board of Directors of CRH public limited company (CRH plc) Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of CRH plc and subsidiaries (the Company) as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, changes in equity and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 29, 2024, expressed an unqualified opinion on the Company’s internal control over financial reporting. Change in Reporting Framework As discussed in Note 1 to the financial statements, the Company has changed its reporting framework from International Financial Reporting Standards as issued by the International Accounting Standards Board to accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the Audit Committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. CRH Form 10-K 48 Goodwill - Philippines reporting unit - Refer to Notes 1 and 9 to the financial statements Critical Audit Matter Description The Company recorded an impairment charge of $0.3 billion in the Philippines reporting unit (RU) during the year ended December 31, 2023 (2022: $nil). The Company’s evaluation of the carrying value of goodwill for impairment involves the comparison of the fair value of each RU to its carrying value. The Company used a discounted cash flow model to estimate the fair value, which requires management to make significant estimates and assumptions relating to discount rates, short-term forecasts of sales growth, Adjusted EBITDA margin projections, and long-term growth rates (key assumptions). Changes in these key assumptions could have a significant impact on the fair value, the amount of any goodwill impairment charge, or both. We determined that the assessment of the fair value of the Philippines RU was a critical audit matter because of the significant judgments and assumptions made by management to estimate the fair value of the RU given the fair value does not exceed the carrying value by a significant amount. Performing audit procedures to evaluate the reasonableness of management’s key assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists. How the Critical Audit Matter was Addressed in the Audit Our audit procedures related to the discount rate, short-term forecasts of sales growth, Adjusted EBITDA margin projections, and long-term growth rate of the Philippines RU, used by management to estimate the fair value of the RU, and included the following, among others: • We tested the effectiveness of controls over management’s goodwill impairment evaluation, including those over the determination of the fair value of the Philippines RU, such as controls related to management’s selection of discount rates, short-term forecasts of sales growth, Adjusted EBITDA margin projections, and long-term growth rates; • With the assistance of our fair value specialists, we evaluated the reasonableness of the valuation methodology and discount rate for the Philippines RU by: – assessing the valuation methodology compared to generally accepted valuation practices and accounting standards; and – developing a range of independent estimates and comparing those to the discount rate selected by management • We agreed the underlying cash flow forecasts to the Board approved projections and we evaluated management's ability to accurately forecast future sales growth and Adjusted EBITDA margin projections by: – performing a look-back analysis and comparing actual results to management's historical forecasts; – assessing the reasonableness of the impact of macroeconomic activity on short-term cash flows; – comparing management’s forecasts against independent third-party economic and industry projections; and – comparing internal Company communications to management and the Board against the cash flow forecasts to evaluate for consistency • We compared the actual results for the year ended December 31, 2023, to management’s forecasts at the date of the annual impairment test to determine if any additional indicators of impairment existed; • We evaluated the potential impact of climate change, and in particular the Company’s 2030 CO₂ emissions reduction target, on the Adjusted EBITDA margin; and • We evaluated the disclosures related to goodwill and assessed the assumptions used in the impairment assessment for consistency with the impairment models and other information presented in the Annual Report on Form 10-K. CRH Form 10-K 49 Service revenues - Revenue recognition for certain long-term contracts - Refer to Notes 1 and 2 to the financial statements Critical Audit Matter Description The Company recognizes long-term contract revenue over the contract term as the work progresses because transfer of control and the fulfilment of performance obligations to the customer is continuous. Revenue derived from long-term contracts, measured on a percentage of completion basis and in-progress at the balance sheet date involves judgment, particularly as it relates to the process of estimating total forecasted costs of the contracts. We identified revenue recognition for long-term contracts, measured on a percentage of completion basis and in-progress at the balance sheet date (certain long-term contracts) as a critical audit matter because of the judgments made by management in estimating total forecasted costs of the contracts. This required extensive audit effort due to the complexity of certain long-term contracts and required a high degree of auditor judgment when performing audit procedures to audit management’s estimates and evaluating the results of those procedures. How the Critical Audit Matter was Addressed in the Audit Our audit procedures related to management’s recognition of revenue for certain long-term contracts at the balance sheet date included the following, among others: • We tested the effectiveness of controls over long-term contract revenue, including management’s controls over the estimates of total forecasted costs. • We selected a sample of long-term contracts and: – assessed whether the contracts were properly included in management's calculation of long-term contract revenue based on the terms and conditions of each contract, including whether continuous transfer of control to the customer occurred as progress was made toward fulfilling the performance obligation; – tested the accuracy and completeness of the costs incurred to date for the performance obligation to supporting documentation; – evaluated management's ability to estimate total costs accurately by: ◦ comparing costs incurred to date to the costs management estimated at either the inception of the contract or the start of the reporting period, to be incurred to date; ◦ evaluating management’s ability to accurately estimate the total cost by performing corroborating inquiries with the Company’s project managers, and comparing the estimates to management’s work plans, engineering specifications, and supplier contracts; and ◦ comparing management’s estimates for the selected contracts to costs of similar performance obligations, when applicable. – tested the mathematical accuracy of management’s calculation of revenue for the performance obligation. /s/ Deloitte Ireland LLP Dublin, Ireland February 29, 2024 We have served as the Company’s auditor since 2020. CRH Form 10-K 50 Consolidated Statements of Income (in $ millions, except share and per share data) For the years ended December 31 2023 2022 2021 Product revenues 26,156 24,519 22,187 Service revenues 8,793 8,204 7,019 Total revenues 34,949 32,723 29,206 Cost of product revenues ( 14,741 ) ( 14,123 ) ( 12,817 ) Cost of service revenues ( 8,245 ) ( 7,785 ) ( 6,562 ) Total cost of revenues ( 22,986 ) ( 21,908 ) ( 19,379 ) Gross profit 11,963 10,815 9,827 Selling, general and administrative expenses ( 7,486 ) ( 7,056 ) ( 6,538 ) Gain on disposal of long-lived assets 66 50 38 Loss on impairments ( 357 ) – – Operating income 4,186 3,809 3,327 Interest income 206 65 – Interest expense ( 376 ) ( 344 ) ( 315 ) Other nonoperating (expense) income, net ( 2 ) ( 69 ) 90 Income from continuing operations before income tax expense and income from equity method investments 4,014 3,461 3,102 Income tax expense ( 925 ) ( 762 ) ( 650 ) (Loss) income from equity method investments ( 17 ) – 55 Income from continuing operations 3,072 2,699 2,507 Income from discontinued operations, net of income tax expense – 1,190 179 Net income 3,072 3,889 2,686 Net (income) attributable to redeemable noncontrolling interests ( 28 ) ( 27 ) ( 22 ) Net loss (income) attributable to noncontrolling interests 134 – ( 34 ) Net income attributable to CRH plc 3,178 3,862 2,630 Basic earnings per share attributable to CRH plc Continuing operations $ 4.36 $ 3.58 $ 3.12 Discontinued operations – $ 1.57 $ 0.23 Net income $ 4.36 $ 5.15 $ 3.35 Diluted earnings per share attributable to CRH plc Continuing operations $ 4.33 $ 3.55 $ 3.09 Discontinued operations - $ 1.56 $ 0.23 Net income $ 4.33 $ 5.11 $ 3.32 Weighted average common shares outstanding Basic 723.9 758.3 780.2 Diluted 729.2 764.1 786.8 The accompanying notes form an integral part of the Consolidated Financial Statements. CRH Form 10-K 51 Consolidated Statements of Comprehensive Income (in $ millions) For the years ended December 31 2023 2022 2021 Net income 3,072 3,889 2,686 Other comprehensive income (loss), net of tax: Currency translation adjustment 310 ( 665 ) ( 367 ) Net change in fair value of effective portion of cash flow hedges, net of tax of $ 1 million, $ 6 million, and $( 6 ) million in 2023, 2022, and 2021, respectively ( 28 ) ( 37 ) 19 Actuarial (losses) gains and prior service (costs) credits for pension and other postretirement plans, net of tax of $ 17 million, $( 66 ) million, and $( 41 ) million in 2023, 2022, and 2021, respectively ( 108 ) 294 232 Other comprehensive income (loss) 174 ( 408 ) ( 116 ) Comprehensive income 3,246 3,481 2,570 Comprehensive (income) attributable to redeemable noncontrolling interests ( 28 ) ( 27 ) ( 22 ) Comprehensive loss attributable to noncontrolling interests 131 46 1 Comprehensive income attributable to CRH plc 3,349 3,500 2,549 The accompanying notes form an integral part of the Consolidated Financial Statements. CRH Form 10-K 52 Consolidated Balance Sheets (in $ millions, except share data) At December 31 2023 2022 Assets Current assets: Cash and cash equivalents 6,341 5,936 Accounts receivable, net 4,507 4,300 Inventories 4,291 4,194 Assets held for sale 1,268 – Other current assets 478 403 Total current assets 16,885 14,833 Property, plant and equipment, net 17,841 17,768 Equity method investments 620 649 Goodwill 9,158 9,199 Intangible assets, net 1,041 1,088 Operating lease right-of-use assets, net 1,292 1,175 Other noncurrent assets 632 607 Total assets 47,469 45,319 Liabilities, redeemable noncontrolling interests and shareholders’ equity Current liabilities: Accounts payable 3,149 2,930 Accrued expenses 2,296 2,132 Current portion of long-term debt 1,866 1,491 Operating lease liabilities 255 238 Liabilities held for sale 375 – Other current liabilities 2,072 1,250 Total current liabilities 10,013 8,041 Long-term debt 9,776 8,145 Deferred income tax liabilities 2,738 2,885 Noncurrent operating lease liabilities 1,125 1,000 Other noncurrent liabilities 2,196 2,208 Total liabilities 25,848 22,279 Commitments and contingencies (Note 24) Redeemable noncontrolling interests 333 308 Shareholders’ equity Preferred stock, € 1.27 par value, 150,000 shares authorized and 50,000 shares issued and outstanding for 5 % preferred stock and 872,000 shares authorized, issued and outstanding for 7 % 'A' preferred stock, as of December 31, 2023 and December 31, 2022 1 1 Common stock, € 0.32 par value, 1,250,000,000 shares authorized; 734,519,598 and 752,140,338 shares issued and outstanding, as of December 31, 2023 and December 31, 2022, respectively 296 302 Treasury stock, at cost ( 42,419,281 and 7,712,885 shares as of December 31, 2023 and December 31, 2022, respectively) ( 2,199 ) ( 297 ) Additional paid-in capital 454 443 Accumulated other comprehensive loss ( 616 ) ( 787 ) Retained earnings 22,918 22,495 Total shareholders’ equity attributable to CRH plc shareholders 20,854 22,157 Noncontrolling interests 434 575 Total equity 21,288 22,732 Total liabilities, redeemable noncontrolling interests and equity 47,469 45,319 The accompanying notes form an integral part of the Consolidated Financial Statements. CRH Form 10-K 53 Consolidated Statements of Cash Flows (in $ millions) For the years ended December 31 2023 2022 2021 Cash Flows from Operating Activities: Net income 3,072 3,889 2,686 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 1,633 1,577 1,551 Loss on impairments 357 – – Share-based compensation 123 101 110 Gains on disposals from discontinued operations, businesses and long-lived assets, net ( 66 ) ( 1,422 ) ( 119 ) Deferred tax (benefit) expense ( 64 ) ( 63 ) 99 Loss (income) from equity method investments 17 – ( 55 ) Pension and other postretirement benefits net periodic benefit cost 31 30 61 Non-cash operating lease costs 293 273 318 Other items, net 68 45 11 Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: Accounts receivable, net ( 164 ) ( 226 ) ( 404 ) Inventories ( 60 ) ( 655 ) ( 439 ) Accounts payable 144 403 539 Operating lease liabilities ( 276 ) ( 269 ) ( 299 ) Other assets 25 ( 45 ) ( 124 ) Other liabilities ( 72 ) 205 95 Pension and other postretirement benefits contributions ( 44 ) ( 43 ) ( 51 ) Net cash provided by operating activities 5,017 3,800 3,979 Cash Flows from Investing Activities: Purchases of property, plant and equipment ( 1,817 ) ( 1,523 ) ( 1,554 ) Acquisitions, net of cash acquired ( 640 ) ( 3,253 ) ( 1,494 ) Proceeds from divestitures and disposals of long-lived assets 104 3,827 387 Dividends received from equity method investments 44 36 32 Settlements of derivatives ( 1 ) ( 11 ) – Deferred divestiture consideration received 6 52 120 Other investing activities, net ( 87 ) ( 45 ) ( 4 ) Net cash used in investing activities ( 2,391 ) ( 917 ) ( 2,513 ) The accompanying notes form an integral part of the Consolidated Financial Statements. CRH Form 10-K 54 Consolidated Statements of Cash Flows (in $ millions) For the years ended December 31 2023 2022 2021 Cash Flows from Financing Activities: Proceeds from debt issuances 3,163 38 – Payments on debt ( 1,462 ) ( 364 ) ( 1,183 ) Settlements of derivatives 7 ( 11 ) ( 37 ) Payments of finance lease obligations ( 26 ) ( 28 ) ( 29 ) Deferred and contingent acquisition consideration paid ( 22 ) ( 24 ) ( 29 ) Dividends paid ( 940 ) ( 917 ) ( 906 ) Distributions to noncontrolling and redeemable noncontrolling interests ( 35 ) ( 23 ) ( 40 ) Transactions involving noncontrolling interests ( 2 ) ( 3 ) – Repurchases of common stock ( 3,067 ) ( 1,178 ) ( 896 ) Proceeds from exercise of stock options 4 11 13 Net cash used in financing activities ( 2,380 ) ( 2,499 ) ( 3,107 ) Effect of exchange rate changes on cash and cash equivalents 208 ( 231 ) ( 297 ) Increase/(decrease) in cash and cash equivalents 454 153 ( 1,938 ) Cash and cash equivalents at the beginning of year 5,936 5,783 7,721 Cash and cash equivalents at the end of year 6,390 5,936 5,783 Supplemental cash flow information: Cash paid for interest (including finance leases) 418 329 340 Cash paid for income taxes 959 1,043 642 Reconciliation of cash and cash equivalents Cash and cash equivalents presented in the Consolidated Balance Sheets 6,341 5,936 5,783 Cash and cash equivalents included in assets held for sale 49 – – Total cash and cash equivalents presented on the Consolidated Statements of Cash Flows 6,390 5,936 5,783 The accompanying notes form an integral part of the Consolidated Financial Statements. CRH Form 10-K 55 Consolidated Statements of Changes in Equity (in $ millions, except shares) Preferred Stock Common Stock Treasury Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Total Shareholders' Equity Attributable to CRH plc Shareholders Noncontrolling Interests Total Equity Shares Amount Shares Amount Shares Amount Balance at December 31, 2020 0.9 $ 1 1,590.2 $ 333 ( 10.3 ) ($ 386 ) $ 7,937 ($ 344 ) $ 12,224 $ 19,765 $ 647 $ 20,412 Net income – – – – – – – – 2,630 2,630 34 2,664 Other comprehensive loss – – – – – – – ( 81 ) – ( 81 ) ( 35 ) ( 116 ) Share-based compensation – – – – – – 110 – – 110 – 110 Repurchases of common stock – – – – ( 18.2 ) ( 896 ) – – – ( 896 ) – ( 896 ) Retirement of treasury stock – – ( 21.0 ) ( 8 ) 21.0 951 – – ( 943 ) – – – Retirement of income stock – – ( 795.1 ) ( 16 ) – – 16 – – – – – Reduction in additional paid-in capital – – – - – – ( 7,493 ) – 7,493 – – – Shares issued under employee share plans – – – - 3.8 136 ( 112 ) – ( 11 ) 13 – 13 Dividends declared on common stock – – – - – – – – ( 909 ) ( 909 ) – ( 909 ) Distributions to noncontrolling interests – – – - – – – – – – ( 14 ) ( 14 ) Adjustment of redeemable noncontrolling interests to redemption value – – – - – – – – ( 18 ) ( 18 ) – ( 18 ) Balance at December 31, 2021 0.9 $ 1 774.1 $ 309 ( 3.7 ) ($ 195 ) $ 458 ($ 425 ) $ 20,466 $ 20,614 $ 632 $ 21,246 For the year ended December 31, 2021, dividends declared on common stock were $ 1.21 per common share. The accompanying notes form an integral part of the Consolidated Financial Statements. CRH Form 10-K 56 Consolidated Statements of Changes in Equity (in $ millions, except shares) Preferred Stock Common Stock Treasury Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Total Shareholders' Equity Attributable to CRH plc Shareholders Noncontrolling Interests Total Equity Shares Amount Shares Amount Shares Amount Balance at December 31, 2021 0.9 $ 1 774.1 $ 309 ( 3.7 ) ($ 195 ) $ 458 ($ 425 ) $ 20,466 $ 20,614 $ 632 $ 21,246 Net income – – – – – – – – 3,862 3,862 – 3,862 Other comprehensive loss – – – – – – – ( 362 ) – ( 362 ) ( 46 ) ( 408 ) Share-based compensation – – – – – – 101 – – 101 – 101 Repurchases of common stock – – – – ( 30.0 ) ( 1,178 ) – – – ( 1,178 ) – ( 1,178 ) Retirement of treasury stock – – ( 22.0 ) ( 7 ) 22.0 879 – – ( 872 ) – – – Shares issued under employee share plans – – – – 4.0 197 ( 116 ) – ( 70 ) 11 – 11 Dividends declared on common stock – – – – – – – – ( 931 ) ( 931 ) – ( 931 ) Distributions to noncontrolling interests – – – – – – – – – – ( 8 ) ( 8 ) Transactions involving noncontrolling interests – – – – – – – – – – ( 3 ) ( 3 ) Adjustment of redeemable noncontrolling interests to redemption value – – – – – – – – 40 40 – 40 Balance at December 31, 2022 0.9 $ 1 752.1 $ 302 ( 7.7 ) ($ 297 ) $ 443 ($ 787 ) $ 22,495 $ 22,157 $ 575 $ 22,732 For the year ended December 31, 2022, dividends declared on common stock were $ 1.27 per common share. The accompanying notes form an integral part of the Consolidated Financial Statements. CRH Form 10-K 57 Consolidated Statements of Changes in Equity (in $ millions, except shares) Preferred Stock Common Stock Treasury Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Total Shareholders' Equity Attributable to CRH plc Shareholders Noncontrolling Interests Total Equity Shares Amount Shares Amount Shares Amount Balance at December 31, 2022 0.9 $ 1 752.1 $ 302 ( 7.7 ) ($ 297 ) $ 443 ($ 787 ) $ 22,495 $ 22,157 $ 575 $ 22,732 Net income – – – – – – – – 3,178 3,178 ( 134 ) 3,044 Other comprehensive income – – – – – – – 171 – 171 3 174 Share-based compensation – – – – – – 123 – – 123 – 123 Repurchases of common stock – – – – ( 38.2 ) ( 2,019 ) – – – ( 2,019 ) – ( 2,019 ) Repurchases and retirement of common stock – – ( 17.6 ) ( 6 ) – – – – ( 1,042 ) ( 1,048 ) – ( 1,048 ) Shares issued under employee share plans – – – – 3.5 117 ( 112 ) – ( 1 ) 4 – 4 Dividends declared on common stock – – – – – – – – ( 1,688 ) ( 1,688 ) – ( 1,688 ) Distributions to noncontrolling interests – – – – – – – – – – ( 8 ) ( 8 ) Transactions involving noncontrolling interests – – – – – – – – – – ( 2 ) ( 2 ) Adjustment of redeemable noncontrolling interests to redemption value – – – – – – – – ( 24 ) ( 24 ) – ( 24 ) Balance at December 31, 2023 0.9 $ 1 734.5 $ 296 ( 42.4 ) ($ 2,199 ) $ 454 ($ 616 ) $ 22,918 $ 20,854 $ 434 $ 21,288 For the year ended December 31, 2023, dividends declared on common stock were $ 1.33 per common share. The accompanying notes form an integral part of the Consolidated Financial Statements. CRH Form 10-K 58 Notes To Consolidated Financial Statements 1. Summary of significant accounting policies 1.1. Description of business CRH plc, (the Company) is a multinational company incorporated and domiciled in the Republic of Ireland that operates in the building materials industry, providing essential products and services for construction projects worldwide. The Company is one of the largest suppliers of building materials globally. The Company is a major producer of aggregates, cement, readymixed concrete, and asphalt and a supplier of paving and constructions services, providing solutions to a wide range of customers, including contractors, builders, engineers, infrastructure developers, and the residential market. Effective January 1, 2023, the Company restructured into two Divisions, CRH Americas and CRH Europe. During the first quarter of 2023, the Company’s reportable segments increased from three to four reportable segments, see Note 20 for further information. A summary of significant accounting policies used in the preparation of the accompanying Consolidated Financial Statements follows. 1.2. Basis of presentation and use of estimates Effective January 1, 2023, the Company transitioned from International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS) to accounting principles generally accepted in the United States (U.S. GAAP). The accompanying Consolidated Financial Statements and notes thereto, including all prior periods presented, have been presented under U.S. GAAP, which requires management to make certain estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenues and expenses. Such estimates include impairment of long-lived assets, impairment of goodwill, pension and other postretirement benefits, tax matters and litigation, including insurance and environmental compliance costs. These estimates and assumptions are based on management’s judgment. Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates may be necessary if there are changes in the circumstances or experiences on which the estimate was based or as a result of new information. Changes in estimates, including those resulting from changes in the economic environment, are reflected in the Consolidated Financial Statements for the period in which the change in estimate occurs. 1.3. Consolidation The Consolidated Financial Statements include the accounts of CRH plc, and the wholly and majority owned subsidiaries of CRH plc, in addition to variable interest entities (VIEs) in which the Company is the primary beneficiary. In evaluating whether the Company has a controlling financial interest, the following are considered: (1) for voting interest entities, the Company consolidates those entities in which they own a majority of the voting interests; and (2) for VIEs, the Company consolidates those entities for which they are the primary beneficiary. All intercompany transactions and accounts have been eliminated. The Company uses the equity method of accounting for their investments in entities over which the Company has the ability to exercise significant influence over the operating and financial policies or exercise joint control with other investors but does not control and is not the primary beneficiary. Equity method investments are initially recognized at cost and are included within Equity method investments in the Consolidated Balance Sheets. The Company’s proportionate interest in the results of the investment is included within Income (loss) from equity method investments in the Consolidated Statements of Income. Where the Company is an active party to contractual arrangements that involve a joint operating activity and is exposed to significant risks and rewards that are dependent on the commercial success of the activity, the Company treats such operations as collaborative arrangements. For such operations, the Company accounts for its pro rata share of assets, liabilities, revenues, and costs in the Consolidated Balance Sheets and Consolidated Statements of Income. 1.4. Noncontrolling interests – nonredeemable and redeemable Noncontrolling interests represent the portion of the equity of a subsidiary not attributable either directly or indirectly to the Company and are presented separately in the Consolidated Statements of Income and within equity in the Consolidated Balance Sheets, distinguished from Company shareholders’ equity. Acquisitions of noncontrolling interests are accounted for as transactions with equity holders in their capacity as equity holders and therefore no goodwill is recognized as a result of such transactions. Noncontrolling interests are measured initially at fair value. Noncontrolling interests with redemption features, such as put/call options, that are not solely within the Company’s control (redeemable noncontrolling interests) are reported separately in the Consolidated Balance Sheets at the greater of carrying value or redemption value. The redeemable noncontrolling interests comprises the noncontrolling interests in two of the Company’s subsidiaries within the Americas Materials Solutions segment. The respective shareholders’ agreements for these entities contain put options that provide the noncontrolling shareholders the right to put their shares to the Company at a value based on a calculated formula. The put options are currently exercisable. See Note 23 for further information. 1.5. Business combinations Acquisitions are accounted for using the acquisition method, which requires allocation of the purchase price to assets acquired and liabilities assumed based on estimated fair values. The purchase price is determined based on the fair value of consideration transferred to and liabilities assumed from the seller as of the date of acquisition. The Company allocates the purchase price to the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed as of the date of acquisition. Any excess of the purchase price over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. Determining the fair values of assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction, and therefore represents an exit price. A fair value measurement assumes the highest and best use of the asset by market participants. Allocations of the purchase price are based on preliminary estimates and assumptions at the date of acquisition and are subject to revision based on final information received including appraisals and other analyses which support underlying estimates within the measurement period, a period of no more than one year from the acquisition date. Measurement period adjustments are generally recorded as increases or decreases to goodwill, if any, recognized in the transaction. See Note 4 for further information. CRH Form 10-K 59 1.6. Foreign currency translation The Consolidated Financial Statements are presented in U.S. Dollar, which is the reporting currency of the Company. Transactions in foreign currencies are recorded at the rate of exchange in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange in effect at the balance sheet date. The Company releases any related cumulative translation adjustment into earnings only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. Non-monetary items are measured at historical rates. Results and cash flows of subsidiaries and equity method investments with non-U.S. Dollar functional currencies have been translated into U.S. Dollar at average exchange rates for the periods, and the related balance sheets have been translated at the rates of exchange in effect at the balance sheet date. Adjustments arising on translation of the results and net assets of non-U.S. Dollar subsidiaries and equity method investments are recognized as a component of Accumulated other comprehensive income (loss) and Noncontrolling interests both of which are presented in the Consolidated Balance Sheets. 1.7. Revenue recognition The Company recognizes revenues in the amount of the price expected to be received for goods and services supplied at a point in time or over time, as contractual performance obligations are fulfilled, and control of goods and services passes to the customer. Revenue excludes trade discounts and value-added tax or sales tax. Revenues derived from sale of goods (sources other than construction contracts) The Company manufactures and supplies a diverse range of building materials and products. Revenues from the sale of goods are recognized at a point in time when control of the promised goods is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled to receive in exchange for the goods. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from the goods. Control passes to the customer either upon leaving the Company’s premises or upon delivery to the customer, depending on the terms of the sale. Contracts do not contain multiple performance obligations. Goods are often sold with discounts or rebates based on cumulative sales over a period. This variable consideration is only recognized when it is probable that it will not be subsequently reversed and is recognized using the most-likely amount or expected value methods, depending on the individual contract terms. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on the assessment of anticipated performance and all information (historical, current, and forecasted) that is reasonably available to management. Revenues derived from construction contracts The Company enters into construction contracts to complete large construction projects. Contracts usually commence and complete within one year and are generally fixed price but may be subject to indexation and/or escalation clauses that can either increase or decrease the final transaction price. The Company typically recognizes revenue within its construction contract businesses over time as it performs its obligations. The Company believes this best reflects the transfer of control to the customer by providing a faithful depiction of the enhancement of a customer-controlled asset or the construction of an asset with no alternative use. The percentage-of-completion method is used to recognize revenue when the outcome of a contract can be estimated reliably. The percentage-of-completion is calculated using an input method and based on the proportion of contract costs incurred at the balance sheet date relative to the total estimated costs of the contract. In all construction contract arrangements, the Company has an enforceable right to payment for work and performance obligations completed to date. Some of the Company’s construction contracts may contain forms of variable consideration that can either increase or decrease the transaction price. Variable consideration is estimated based on the most likely amount or expected value methods (depending on the contract terms) and the transaction price is adjusted to the extent it is probable that a significant reversal of revenue recognized will not occur. See Note 2 for further information. 1.8. Contract assets and liabilities A contract asset is recognized when the related performance obligation has been satisfied, but the Company has not yet invoiced the customer and so is not unconditionally entitled to the consideration under the payment terms set out in the contract. Contract assets are classified as Accounts receivable, net, in the Consolidated Balance Sheets. A contract liability is recognized when a non-refundable payment is received from a customer in advance of work being performed. A contract liability would also be recognized if the Company has an unconditional right to receive non-refundable consideration before the Company recognizes the related revenue. Contract liabilities are classified as Other current liabilities in the Consolidated Balance Sheets. The Company’s contracts generally are for a duration of less than one year and therefore the Company does not capitalize incremental contract costs; instead these are expensed as incurred, as permitted by the practical expedient. 1.9. Cash and cash equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities at the time of purchase of three months or less. The Company had restricted cash of $ 6 million and $ 5 million at December 31, 2023 and 2022, respectively, included within Cash and cash equivalents in the Consolidated Balance Sheets. The Company is restricted from utilizing the cash for purposes other than with government approval as it is linked to the awarding of government licenses for quarrying. CRH Form 10-K 60 1.10. Accounts receivable, net Accounts receivable are stated at amortized cost. The Company records an allowance for credit losses, which includes an allowance for probable losses based on historical write-offs, adjusted for current conditions as deemed necessary, and a specific reserve for accounts deemed at risk. The allowance is the Company’s estimate for receivables as of the balance sheet date that ultimately will not be collected. Any changes in the allowance are reflected in earnings in the period in which the change occurs. The Company writes-off accounts receivable when it becomes probable, based upon customer facts and circumstances, that such amounts will not be collected. See Note 5 for further information. 1.11. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method or weighted average method. Net realizable value is the estimated selling price in the ordinary course of business, less estimates for costs of completion, disposal, and transportation. Materials and other supplies held for use in the production of inventories are not written down below cost if the finished goods, in which they will be incorporated, are expected to be sold at or above cost. See Note 6 for further information. 1.12. Property, plant and equipment, net Property, plant and equipment are stated at cost less any accumulated depreciation, depletion, and any accumulated impairments. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred. The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset group may not be recoverable. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods. An impairment loss is recognized if the estimated future (undiscounted) cash flows expected to result from the use and eventual disposition of that asset group are less than its carrying value and is measured by the amount by which the carrying value of the asset group exceeds its fair value. The Company capitalizes interest as part of the cost of capital projects incurred during construction. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: • Buildings 40 years; and • Plant and machinery 5 to 30 years Mineral-bearing land, less an estimate of its residual value, is depleted over the period of the mineral extraction in the proportion to which product for the year bears to the latest estimates of proven and probable mineral reserves. Land, other than mineral-bearing land, is not depreciated. See Note 7 for further information. 1.13. Leases A contract contains a lease if it is enforceable and conveys the right to control the use of a specified asset for a period of time in exchange for consideration, which is assessed at inception. A right-of-use asset and lease liability are recognized at the commencement date for contracts containing a lease. Leases are evaluated and classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: (1) the lease transfers ownership of the asset by the end of the lease term; (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised; (3) the lease term is for a major part of the remaining useful life of the asset; (4) the underlying asset is of such a specialized nature that is expected to have no alternative use to the lessor at the end of the lease term or (5) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of the above criteria. The lease liability is initially measured at the present value of the future lease payments, discounted using the incremental borrowing rate or the interest rate implicit in the lease, if this is readily determinable, over the remaining lease term. Lease payments include fixed payments less any lease incentives receivable, variable payments that are dependent on a rate or index known at the commencement date, amounts expected to be paid under residual value guarantees and any payments for an optional renewal period and purchase and termination option payments, if the Company is reasonably certain to exercise those options. The lease term is the non-cancellable period of the lease adjusted for any renewal or termination options which are reasonably certain to be exercised. The Company applies judgment in determining whether it is reasonably certain that a renewal, termination or purchase option will be exercised. The right-of-use asset for each lease is initially measured at cost, which comprises the lease liability adjusted for any payments made at or before the commencement date, initial direct costs incurred, lease incentives received and an estimate of the cost to dismantle or restore the underlying asset or the site on which it is located at the end of the lease term. The right-of-use asset of finance leases is amortized over the lease term or, where a purchase option is reasonably certain to be exercised, over the useful economic life of the asset in line with depreciation rates for owned property, plant and equipment. The right-of-use asset of operating leases is amortized as a balancing amount that together with the accretion on lease liability produces straight-line total lease expenses. The amortization of operating lease right-of-use assets and the accretion of operating lease liabilities are reported together as fixed lease expense in the Consolidated Financial Statements. The fixed lease expense is recognized on a straight-line basis over the life of the lease. Interest expense on a finance lease is recognized using the effective interest method over the lease term. The Company has elected to separate non-lease components in a contract such as maintenance and other service charges from the lease component and expense such components as incurred. Variable lease payments directly linked to sales or usage are also expensed as incurred. Additionally, for short-term leases with an initial lease term of 12 months or less and with purchase options which the Company is reasonably certain not to exercise, the Company has elected not to record the corresponding right-of-use asset or the corresponding lease liability in the Consolidated Balance Sheets and to expense short-term lease payments as incurred. Incremental borrowing rates are calculated using a portfolio approach, based on the risk profile of the entity holding the lease and the term and currency of the lease. See Note 12 for further information. CRH Form 10-K 61 1.14. Asset retirement obligations The Company records a liability for an asset retirement obligation at fair value in the period in which it is incurred where a legal or contractual obligation exists, and the liability can be reasonably estimated. When the liability is initially recorded, the Company capitalizes the cost by increasing the carrying amount of the related long-lived asset. The liability is accreted over time and the asset is depreciated over the useful life of the related asset. Upon settlement of the liability, the Company recognizes a gain or loss for any difference between the settlement amount and the liability recorded. Asset retirement obligations consist primarily of quarry closure and post-closure costs. See Note 13 for further information. 1.15. Derivative financial instruments and hedging practices The Company enters into various derivative financial instruments to manage its exposure to fluctuating interest rates, currency exchange rates, and commodity pricing. Such instruments primarily include interest rate swap agreements, currency swap agreements, commodity swap agreements, and currency and commodity forward contracts. These instruments are not entered into for trading purposes. There are three types of derivatives the Company enters into: (i) those relating to fair value exposures; (ii) those relating to cash flow exposures and (iii) those relating to foreign currency net investment exposures. Fair value exposures relate to recognized assets or liabilities, and firm commitments; cash flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities, or forecasted transactions, and net investment exposures relate to the impact of foreign currency exchange rate changes on the carrying value of net assets denominated in foreign currencies. When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair value hedge, cash flow hedge, or a net investment hedge. Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure. On an ongoing basis, the Company assesses the hedge effectiveness of all derivatives designated as hedges for accounting purposes to determine if they continue to be highly effective in offsetting changes in fair values or cash flows of the underlying hedged items. If it is determined that the hedge is not highly effective, then hedge accounting will be discontinued prospectively. Changes in the fair value of derivatives designated as fair value hedges are recognized in earnings as an offset to the change in the fair values of the underlying exposures being hedged. The changes in fair value of derivatives that are designated as cash flow hedges are deferred in Accumulated other comprehensive income (loss) and are reclassified to earnings as the underlying hedged transaction affects earnings. Provided the hedge remains highly effective, any ineffectiveness is deferred in Accumulated other comprehensive income (loss) and is reclassified to earnings as the underlying hedged transaction affects earnings. Hedges of net investments in foreign subsidiaries are recognized in the currency translation adjustment component of Accumulated other comprehensive income (loss) in the Consolidated Balance Sheets to offset translation gains and losses associated with the hedged net investment. Derivatives that are entered into for risk management purposes and are not designated as hedges are recorded at their fair market values and recognized in net income. The fair values of the Company's derivatives are not material. The notional amount of the Company’s outstanding fair value hedges, cash flow hedges, and net investment hedges was $ 1,375 million, $ 550 million, and $ 1,187 million at December 31, 2023, respectively, and $ 1,775 million, $ 683 million, and $ 1,145 million at December 31, 2022, respectively. The notional amount of derivatives not designated as hedging instruments was $ 338 million and $ 280 million at December 31, 2023 and 2022, respectively. 1.16. Debt Debt is recorded at initial fair value, which normally reflects the proceeds received by the Company, net of debt issuance costs. Debt is subsequently stated at amortized cost. Debt issuance costs are amortized to interest expense over the term of the debt. Debt issuance discounts and premiums are also amortized to interest expense using the effective interest rate method over the term of the debt. Debt issuance costs associated with the Company’s revolving facility are amortized to interest expense on a straight-line basis over the facility’s term. 1.17. Goodwill Goodwill represents the excess of the purchase price over the fair value of the assets acquired and liabilities assumed in a business combination. Goodwill is tested for impairment annually at October 1 or more frequently if events or circumstances indicate that an impairment loss may have been incurred, at the reporting unit level, one level below the Company’s operating segments. The Company has the option of either assessing qualitative factors to determine whether it is more likely than not that the carrying value of the reporting units exceeds their respective fair value or proceeding directly to a quantitative test. The Company elected to perform the quantitative impairment test for all years presented. If the fair value exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. However, if the carrying value of a reporting unit exceeds its fair value, an impairment loss is recognized by writing down the assets to their fair value. See Note 9 for further information. 1.18. Intangible assets, net Intangible assets acquired in business combinations are stated at their fair value as determined at the date of acquisition. Intangible assets are amortized on a straight-line basis. In general, based on the current composition of definite-lived intangible assets, the useful lives for customer-related intangible assets range from 5 to 20 years and the useful lives for marketing-related intangible assets range from 10 to 30 years. The Company evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value is not recoverable, impairment is measured as the amount by which the carrying value exceeds its estimated fair value. See Note 8 for further information. 1.19. Pension and other postretirement benefits The Company sponsors defined benefit retirement plans and also provides other postretirement benefits. The Company recognizes the funded status, defined as the difference between the fair value of plan assets and the benefit obligation, of its pension plans and other postretirement benefits as an asset or liability in the Consolidated Balance Sheets. Actuarial gains or losses that arise during the year are recognized as a component of Accumulated other comprehensive income (loss). Amounts in excess of a corridor are subsequently amortized over the participants’ average remaining service period and recognized as a component of net periodic benefit cost. The corridor represents the excess over 10% of the greater of the projected benefit obligation or pension plan assets and is determined on a plan-by-plan basis. See Note 21 for further information . CRH Form 10-K 62 1.20. Insurance The Company has insurance arrangements which comprise employer’s liability (workers’ compensation in the United States), public and products liability (general liability in the United States), automobile liability, property damage, business interruption and various other insurances. Due to the extended timeframe associated with many of the insurances, a significant proportion of the total liability is subject to periodic actuarial valuation. The projected cash flows underlying the discounting process are established through the application of actuarial triangulations, which are extrapolated from historical claims experience. While the Company believes the assumptions used to calculate these liabilities are appropriate, significant differences in actual experience and/or significant changes in those assumptions may materially affect insurance liabilities. 1.21. Share-based compensation The Company grants share-based awards, which consist of performance stock units (PSU) and stock options. All of the share-based compensation awards are classified as equity awards. The Company measures share-based compensation awards using fair value based measurement methods. This results in the recognition of compensation expense for all share-based compensation awards based on their fair value as of the grant date. For performance-based awards, compensation expense is recognized only if it is probable that the performance condition will be achieved. Compensation expense is recognized over the requisite service period for time and performance-based awards, net of estimated forfeitures. See Note 17 for further information. 1.22. Treasury Stock The Company accounts for Treasury Stock under the cost method. When Treasury Stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in capital in the Consolidated Balance Sheets. When Treasury Stock is re-issued at a price lower than its cost, the difference is recorded as a component of additional paid-in capital to the extent that there are previously recorded gains to offset the losses. If there are no Treasury Stock gains in additional paid-in capital, the losses upon re-issuance of Treasury Stock are recorded as a reduction of retained earnings in the Consolidated Balance Sheets. 1.23. Environmental remediation costs The Company records an accrual for environmental remediation liabilities in the period in which it is probable that a liability has been incurred and the appropriate amounts can be estimated reasonably. Such accruals are adjusted as further information develops or circumstances change. Generally, these costs are not discounted to their present value or offset for potential insurance or other claims or potential gains from future alternative uses for a site. 1.24. Income taxes Current tax represents the expected tax payable (or recoverable) on the taxable profit for the year using tax rates enacted for the period. Where items are accounted for outside of profit or loss, the related income tax is recognized either in other comprehensive income (loss) or directly in equity, as appropriate. Interest and penalties associated with the liability for income tax are classified as income tax expense. The Company’s policy is to release tax effects from Accumulated other comprehensive income (loss) when the underlying items affect earnings. Deferred tax is recognized using the liability method on temporary differences arising at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. For the most part, no provision has been made for undistributed earnings as the majority of earnings are considered indefinitely reinvested or can be distributed on a tax-free basis. However, a temporary difference has been recognized to the extent that earnings are not permanently reinvested. Deferred tax is determined using tax rates (and laws) that have been enacted as of the balance sheet date and are expected to apply when the related deferred income tax asset is realized, or the deferred income tax liability is settled. Deferred tax assets are recognized in full and then reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be recognized. The Company’s income tax charge is based on reported profit and enacted statutory tax rates, which reflect various allowances and reliefs available to the Company in the multiple tax jurisdictions in which it operates. The determination of the Company’s provision for income tax requires certain judgments and estimates in relation to matters where the ultimate tax outcome may not be certain. In addition, the Company is subject to tax audits which can involve complex issues that could require extended periods to conclude, the resolution of which is often not within the control of the Company. Although the Company believes that the estimates included in the Consolidated Financial Statements and its tax return positions are reasonable, there is no certainty that the final outcome of these matters will not be different to that which is reflected in the Company’s historical income tax provisions and accruals. The Company evaluates these positions regularly and records a tax benefit only to the extent it is more likely than not that a position will be sustained upon examination by taxing authorities. See Note 15 for further information. 1.25. New accounting standards Recently issued accounting pronouncements not yet adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (CODM) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU will likely result in the Company including the additional required disclosures when adopted. The Company is currently evaluating the provisions of this ASU and expects to adopt them for the year ending December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the required additional disclosures being included in the Consolidated Financial Statements, once adopted. CRH Form 10-K 63 2. Revenue The Company disaggregates revenue based on its operating and reportable segments. The Company’s reportable segments are: (1) Americas Materials Solutions, (2) Americas Building Solutions, (3) Europe Materials Solutions, and (4) Europe Building Solutions. Revenue is disaggregated by principal activities and products and by primary geographic market. Business lines are reviewed and evaluated as follows: (1) Essential Materials, (2) Road Solutions, (3) Building & Infrastructure Solutions, and (4) Outdoor Living Solutions. The vertically integrated Essential Materials businesses manufacture and supply aggregates and cement for use in a range of construction and industrial applications. Road Solutions support the manufacturing, installation and maintenance of public highway infrastructure projects and commercial infrastructure. Building & Infrastructure Solutions connect, protect and transport critical water, energy and telecommunications infrastructure and deliver complex commercial building projects. Outdoor Living Solutions integrate specialized materials, products and design features to enhance the quality of private and public spaces. For the Year Ended December 31, 2023 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 4,583 – 4,876 – 9,459 Road Solutions (i) 10,852 – 4,814 – 15,666 Building & Infrastructure Solutions (ii) – 2,524 – 2,174 4,698 Outdoor Living Solutions – 4,493 – 633 5,126 Total revenues 15,435 7,017 9,690 2,807 34,949 For the Year Ended December 31, 2022 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 4,160 – 4,625 – 8,785 Road Solutions (i) 10,164 – 4,724 – 14,888 Building & Infrastructure Solutions (ii) – 2,379 – 2,252 4,631 Outdoor Living Solutions – 3,809 – 610 4,419 Total revenues 14,324 6,188 9,349 2,862 32,723 For the Year Ended December 31, 2021 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 3,833 – 4,665 – 8,498 Road Solutions (i) 8,574 – 4,724 – 13,298 Building & Infrastructure Solutions (ii) – 1,464 – 2,145 3,609 Outdoor Living Solutions – 3,164 – 637 3,801 Total revenues 12,407 4,628 9,389 2,782 29,206 (i) Revenue from contracts with customers in the Road Solutions principal activities and products category that is recognized over time for the years ended December 31 were: in $ millions 2023 2022 2021 Americas Materials Solutions 6,146 5,791 4,662 Europe Materials Solutions 2,004 1,814 1,801 Total revenue from contracts with customers 8,150 7,605 6,463 CRH Form 10-K 64 (ii) Revenue from contracts with customers in the Building & Infrastructure Solutions principal activities and products category that is recognized over time for the years ended December 31 were: in $ millions 2023 2022 2021 Americas Building Solutions 70 78 81 Europe Building Solutions 573 521 475 Total revenue from contracts with customers 643 599 556 For the Year Ended December 31, 2023 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Primary geographic markets Republic of Ireland – – 916 – 916 United Kingdom – – 4,090 222 4,312 Rest of Europe (i) – – 4,230 2,256 6,486 United States 14,088 6,692 – 150 20,930 Rest of World (ii) 1,347 325 454 179 2,305 Total revenues 15,435 7,017 9,690 2,807 34,949 For the Year Ended December 31, 2022 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Primary geographic markets Republic of Ireland – – 801 – 801 United Kingdom – – 4,003 238 4,241 Rest of Europe (i) – 3 3,992 2,298 6,293 United States 13,050 5,860 – 178 19,088 Rest of World (ii) 1,274 325 553 148 2,300 Total revenues 14,324 6,188 9,349 2,862 32,723 For the Year Ended December 31, 2021 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Primary geographic markets Republic of Ireland – – 706 – 706 United Kingdom – – 3,979 220 4,199 Rest of Europe (i) – 4 4,051 2,261 6,316 United States 11,172 4,293 – 153 15,618 Rest of World (ii) 1,235 331 653 148 2,367 Total revenues 12,407 4,628 9,389 2,782 29,206 (i) The Rest of Europe principally includes Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Romania, Serbia, Slovakia, Spain, Sweden, Switzerland and Ukraine. (ii) The Rest of World principally includes Australia, Brazil, Canada and the Philippines. Contract assets were $ 716 million and $ 606 million and contract liabilities were $ 439 million and $ 344 million, at December 31, 2023 and 2022, respectively. The increase in contract assets was primarily attributed to revenue recognized on certain contracts partially offset by the timing of billings. The increase in contract liabilities was due to the timing of advance payments and revenue recognized during the period. The Company recognized revenue of $ 308 million and $ 308 million for the years ended December 31, 2023 and 2022, respectively, which was previously included in the contract liability balance at December 31, 2022 and 2021, respectively. CRH Form 10-K 65 Contract assets include unbilled revenue and retentions held by customers in respect of construction contracts at December 31, 2023 and 2022 amounting to $ 471 million and $ 245 million, and $ 402 million and $ 204 million respectively. Unbilled receivables represent the estimated value of unbilled work for projects with performance obligations recognized over time. Retentions represent amounts that have been billed to customers but payment is withheld until final acceptance of the performance obligation by the customer. Retentions that have been billed, but are not due until completion of performance and acceptance by customers, are generally expected to be collected within one year. The Company applies the practical expedient and does not adjust any of its transaction prices for the time value of money. On December 31, 2023, the Company had $ 3,725 million of transaction price allocated to remaining performance obligations. The majority of open contracts at December 31, 2023 will close and revenue will be recognized within 12 months of the balance sheet date. Revenue from sales to equity method investments for the years ended December 31, 2023, 2022 and 2021 were $ 221 million, $ 237 million, and $ 199 million, respectively. 3. Assets held for sale and discontinued operations In November 2023, the Company entered into a sales agreement with SigmaRoc plc. to divest of its Lime operations in Europe for consideration of $ 1.1 billion. The transaction was structured in three phases. The first phase of the transaction, comprising the Company’s lime operations in Germany, Czech Republic and Ireland, was closed effective January 1, 2024 and the second and third phases comprising the operations of the United Kingdom and Poland, respectively, are expected to close in 2024. No impairment loss was recognized on the reclassification of the Lime operations as held for sale. In December 2023, the Company entered into a sales agreement to dispose of certain of its cement and materials assets in Canada, which is expected to close in 2024. An impairment of $ 30 million has been recognized on the Canadian cement and materials assets in the fourth quarter of 2023 to reflect the reduction to fair value less costs to sell. The assets associated with these transactions comprise part of the Company’s Europe Materials Solutions and Americas Materials Solutions segments, respectively, and the relevant assets and liabilities have accordingly been reclassified as assets and liabilities held for sale. The major classes of assets and liabilities classified as held for sale at December 31, 2023 were: in $ millions 2023 Assets Cash and cash equivalents 49 Accounts receivable, net 70 Inventories 102 Property, plant and equipment, net 832 Goodwill 201 Operating lease right-of-use assets, net 6 Other assets 8 Assets held for sale 1,268 Liabilities Accounts payable 59 Accrued expenses 17 Deferred income tax liabilities 148 Operating lease liabilities 6 Other liabilities 145 Liabilities held for sale 375 In April 2022, the Company completed the divestiture of its Building Envelope business, formerly part of the Americas Building Solutions segment. The Company analyzed the quantitative and qualitative factors relevant to the Building Envelope business and determined that the criteria for discontinued operations presentation were met during the year ended 2022. As a result, the operating results of the Building Envelope business were reported separately as discontinued operations, net of income tax expense, in the Consolidated Statements of Income for the periods ended December 31, 2022 and 2021, respectively. CRH Form 10-K 66 The financial results for the Company’s discontinued operations for the years ended December 31 were: in $ millions 2022 2021 Total revenues 645 1,775 Operating income 89 239 Gain on divestiture before income taxes 1,471 - Income from discontinued operations before income tax expense 1,560 239 Income tax expense ( 370 ) ( 60 ) Income from discontinued operations, net of income tax expense 1,190 179 The cash flows from discontinued operations included in the accompanying Consolidated Statements of Cash Flows for the years ended December 31 were: in $ millions 2022 2021 Cash flows from discontinued operations Net cash (used in) provided by operating activities (i) ( 444 ) 208 Net cash provided by (used in) investing activities (ii) 3,446 ( 102 ) Net cash provided by (used in) financing activities 3 ( 2 ) (i) Includes the corporation tax paid on the sale of discontinued operations. (ii) Includes the proceeds from the divestiture of discontinued operations. CRH Form 10-K 67 4. Acquisitions The Company strategically acquires companies in order to increase its footprint and offer products and services that diversify its existing offerings. These acquisitions are accounted for as business combinations using the acquisition method, whereby the purchase price is allocated to the assets acquired and liabilities assumed, based on their estimated fair values at the date of the acquisition with the remaining amount recorded in goodwill. During 2023, the Company completed the acquisition of 22 companies, each individually immaterial. The total cash consideration for these acquisitions net of cash acquired, was $ 640 million. The provisional amounts for assets acquired, liabilities assumed, and consideration related to the acquisitions at December 31, 2023 were: in $ millions Total Identifiable assets acquired and liabilities assumed Cash and cash equivalents 19 Accounts receivable, net 71 Inventories 65 Other current assets 8 Property, plant and equipment, net 252 Intangible assets, net 86 Operating lease right-of-use assets, net 35 Accounts payable 56 Accrued expenses 30 Operating lease liabilities 35 Long-term debt 104 Deferred income tax liabilities 30 Other liabilities 6 Total identifiable net assets at fair value 275 Goodwill 398 Total consideration 673 Consideration satisfied by: Cash payments 659 Deferred consideration (stated at net present cost) 8 Contingent consideration 6 Total consideration 673 Acquisitions of businesses, net of cash acquired Cash consideration 659 Less: cash and cash equivalents acquired ( 19 ) Total outflow in the Consolidated Statements of Cash Flows 640 As a result of the 2023 acquisitions, the Company recognized $ 86 million of amortizable intangible assets and $ 398 million of goodwill. Goodwill represents the excess of the consideration paid over the fair value of net assets acquired and includes the expected benefit of cost savings and synergies within the Company’s segments and intangible assets that do not qualify for separate recognition. Of the Goodwill recognized in respect of the acquisitions completed in 2023, $ 33 million is expected to be deductible for tax purposes. The amortizable intangible assets will be amortized against earnings over a weighted average of 6 years. On November 21, 2023, the Company announced that it had reached an agreement to acquire a portfolio of cement and readymixed concrete assets and operations in Texas, United States from Martin Marietta, Inc. (the ‘Transaction’) for a total consideration of $ 2.1 billion. On February 9, 2024, the Transaction was completed. The assets acquired are located in the United States and are expected to strengthen the Company’s position in Texas as well as increasing exposure to attractive, high-growth markets. Due to the timing of the Transaction, the preliminary purchase price accounting remains ongoing as the Company continues to collect and assess information as of the transaction date. There have been no other acquisitions completed subsequent to the balance sheet date which would be individually material to the Company. CRH Form 10-K 68 2022 Barrette Outdoor Living, Inc. Acquisition On July 8, 2022 the Company acquired Barrette Outdoor Living, Inc. (Barrette), North America's leading provider of residential fencing and railing solutions headquartered in Middleburg Heights, Ohio, United States, at an effective 100 % stake. The assets acquired are all in the United States and are expected to enhance the Company’s existing offering of sustainable outdoor living solutions in North America. The total cash consideration for this acquisition, net of cash acquired, was $ 1,903 million. During 2022, the Company completed the acquisition of 28 other companies, each individually immaterial. The total cash consideration for these acquisitions net of cash acquired, was $ 1,350 million. The identifiable assets acquired, liabilities assumed, and consideration related to the acquisitions at December 31, 2022 were: in $ millions Barrette Other acquisitions Total Identifiable assets acquired and liabilities assumed Cash and cash equivalents 8 14 22 Accounts receivable, net 128 49 177 Inventories 247 128 375 Other current assets 40 10 50 Property, plant and equipment, net 266 539 805 Equity method investments – 28 28 Intangible assets, net 809 178 987 Operating lease right-of-use assets, net 43 59 102 Accounts payable 26 20 46 Accrued expenses 121 27 148 Operating lease liabilities 43 59 102 Long-term debt – 8 8 Deferred income tax liabilities 192 55 247 Other liabilities 22 4 26 Total identifiable net assets at fair value 1,137 832 1,969 Goodwill 774 546 1,320 Total consideration 1,911 1,378 3,289 Consideration satisfied by: Cash payments 1,911 1,364 3,275 Deferred consideration (stated at net present cost) – 10 10 Contingent consideration – 4 4 Total consideration 1,911 1,378 3,289 Acquisitions of businesses, net of cash acquired Cash consideration 1,911 1,364 3,275 Less: cash and cash equivalents acquired ( 8 ) ( 14 ) ( 22 ) Total outflow in the Consolidated Statements of Cash Flows 1,903 1,350 3,253 As a result of the 2022 acquisitions, the Company recognized $ 987 million of amortizable intangible assets and $ 1,320 million of goodwill. Goodwill represents the excess of the consideration paid over the fair value of net assets acquired and includes the expected benefit of cost savings and synergies within the Company’s segments and intangible assets that do not qualify for separate recognition. Of the Goodwill recognized in respect of the acquisitions completed in 2022, $ 1,289 million is expected to be deductible for tax purposes. The amortizable intangible assets will be amortized against earnings over a weighted average of 19 years. CRH Form 10-K 69 During 2021, the Company completed the acquisition of 20 companies ( 19 continuing operations), each individually immaterial. The total cash consideration for these acquisitions net of cash acquired, was $ 1,494 million. The identifiable assets acquired, liabilities assumed, and consideration related to the acquisitions at December 31, 2021 were: in $ millions Total Identifiable assets acquired and liabilities assumed Cash and cash equivalents 7 Accounts receivable, net 173 Inventories 157 Other current assets 18 Property, plant and equipment, net 526 Intangible assets, net 131 Operating lease right-of-use assets, net 83 Accounts payable 94 Accrued expenses 49 Operating lease liabilities 83 Long-term debt 3 Deferred income tax liabilities 37 Other liabilities 6 Total identifiable net assets at fair value 823 Goodwill 679 Total consideration 1,502 Consideration satisfied by: Cash payments 1,501 Contingent consideration 1 Total consideration 1,502 Acquisitions of businesses, net of cash acquired Cash consideration 1,501 Less: cash and cash equivalents acquired ( 7 ) Total outflow in the Consolidated Statements of Cash Flows 1,494 As a result of the 2021 acquisitions, the Company recognized $ 131 million of amortizable intangible assets and $ 679 million of goodwill. Goodwill represents the excess of the consideration paid over the fair value of net assets acquired and includes the expected benefit of cost savings and synergies within the Company’s segments and intangible assets that do not qualify for separate recognition. Of the Goodwill recognized in respect of the acquisitions completed in 2021, $ 284 million is expected to be deductible for tax purposes. The amortizable intangible assets will be amortized against earnings over a weighted average of 8 years. Acquisition-related costs Acquisition-related costs have been included in Selling, general and administrative expenses in the Consolidated Statements of Income. These costs include legal and consulting expenses incurred in connection with acquisitions completed during the applicable period. The Company incurred the following acquisition-related costs for the years ended December 31, 2023, 2022, and 2021: in $ millions 2023 2022 2021 Acquisition-related costs Barrette – 27 – Other acquisitions 10 12 13 Total acquisition-related costs 10 39 13 The financial information regarding the acquisitions included in the Company’s Consolidated Statements of Income from the date of acquisition through December 31 were: Actual from acquisition date in $ millions 2023 2022 2021 Revenue 228 761 524 Net (loss) income attributable to CRH plc ( 15 ) ( 18 ) 38 Pro forma results of operations for the acquisitions have not been presented because they are not material to the Consolidated Financial Statements. CRH Form 10-K 70 5. Accounts receivable, net Accounts receivable, net at December 31 were: in $ millions 2023 2022 Trade receivables 3,574 3,435 Construction contract assets 716 606 Total accounts receivable 4,290 4,041 Less: allowance for credit losses ( 149 ) ( 125 ) Other current receivables 366 384 Total accounts receivable, net 4,507 4,300 Of the total Accounts receivable, net, balances, $ 27 million and $ 37 million at December 31, 2023 and 2022, respectively, were due from equity method investments. The changes in the allowance for credit losses at December 31 were as follows: in $ millions 2023 2022 2021 At January 1 125 131 140 Charge-offs ( 18 ) ( 19 ) ( 14 ) Provision for credit losses 39 24 10 Foreign currency translation and other 3 ( 11 ) ( 5 ) At December 31 149 125 131 6. Inventories Inventories at December 31 were: in $ millions 2023 2022 Raw materials 1,865 1,988 Work-in-process 186 181 Finished goods 2,240 2,025 Total inventories 4,291 4,194 7. Property, plant and equipment, net Property, plant and equipment, net at December 31 were: in $ millions 2023 2022 Mineral-bearing land 4,847 5,055 Land and buildings 5,991 5,851 Plant and machinery 20,468 19,605 Construction in progress 1,271 1,090 Finance lease right-of-use assets 187 128 Total property, plant and equipment 32,764 31,729 Less: accumulated depreciation, depletion, amortization and impairment ( 14,923 ) ( 13,961 ) Total property, plant and equipment, net 17,841 17,768 Depreciation, depletion and amortization expense related to property, plant and equipment was $ 1,494 million, $ 1,449 million and $ 1,433 million for the years ended December 31, 2023, 2022 and 2021, respectively. Depreciation, depletion and amortization expense includes amortization of right-of-use assets from finance leases. Potential impairment of property, plant and equipment is considered by applying a series of external and internal indicators including a limited number of climate change factors. An impairment charge of $ 30 million was recognized during the year ended December 31, 2023, principally relating to the write-down of property, plant and equipment in our Americas Materials Solutions segment. CRH Form 10-K 71 8. Intangible assets, net Intangible assets, net at December 31 were: 2023 2022 in $ millions Marketing-related Customer-related (i) Contract-based Total Marketing-related (ii) Customer-related (i) & (ii) Contract-based (ii) Total At December 31 Gross amount 310 1,260 101 1,671 286 1,202 92 1,580 Accumulated amortization ( 94 ) ( 482 ) ( 54 ) ( 630 ) ( 78 ) ( 369 ) ( 45 ) ( 492 ) Total intangible assets, net 216 778 47 1,041 208 833 47 1,088 (i) The customer-related intangible assets relate predominantly to non-contractual customer relationships. (ii) Marketing-related, customer-related and contract-based intangible assets of $ 174 million, $ 594 million and $ 41 million respectively arose on the acquisition of Barrette in July 2022. These primarily related to brand names, patents and non-contractual customer relationships. Amortization of intangibles included in Selling, general and administrative expenses in the Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 amounted to $ 139 million, $ 103 million and $ 46 million, respectively. The estimated amortization for intangible assets for the five years subsequent to December 31, 2023 and thereafter is as follows: in $ millions 2024 2025 2026 2027 2028 2029 and thereafter Amortization 127 112 74 61 52 615 CRH Form 10-K 72 9. Goodwill Effective January 1, 2023, the Company restructured into two Divisions, CRH Americas and CRH Europe. During the first quarter of 2023, the Company's reportable segments increased from three to the below four segments and existing goodwill was reallocated to each of the new reportable segments and associated reporting units based on management’s estimate of the relative fair value of each reporting unit. See Note 20 for further information. The results of this reallocation of goodwill have been recast below, by reportable segment, at December 31, 2022. As a result of this revision to reportable segments and associated reporting units, the Company performed an impairment assessment before and after the reallocation. Both before, and after, the reallocation, the Company concluded that the fair value of the reporting units were above their carrying value and therefore there was no indication of impairment. The Company uses the present value of estimated future cash flows to establish the estimated fair value of the reporting units at the testing date. This approach includes many assumptions related to future growth rates, discount factors, and tax rates, among other considerations. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairment in future periods. Additionally, the Company uses the market approach to corroborate the estimated fair value. The changes in the carrying amount of goodwill at December 31 were: in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Carrying value, December 31, 2021 4,292 2,576 2,075 508 9,451 Acquisitions 147 1,120 15 38 1,320 Foreign currency translation adjustment ( 32 ) ( 12 ) ( 161 ) ( 34 ) ( 239 ) Divestitures – ( 1,167 ) ( 166 ) – ( 1,333 ) Carrying value, December 31, 2022 4,407 2,517 1,763 512 9,199 Acquisitions 34 240 38 86 398 Foreign currency translation adjustment 8 ( 5 ) 57 29 89 Impairment charge for the year ( 32 ) – ( 295 ) – ( 327 ) Reclassified as held for sale – – ( 201 ) – ( 201 ) Carrying value, December 31, 2023 4,417 2,752 1,362 627 9,158 There were no charges for goodwill impairment in the year ended December 31, 2022. For the year ended December 31, 2023, the fair value of the Company’s Philippines reporting unit within Europe Materials Solutions, did not exceed its carrying value. As a result, a goodwill impairment loss of $ 295 million was recorded in Loss on impairments. The total impairment loss of $ 327 million principally relates to the $ 295 million impairment of the Philippines cement business, driven by challenging cement market conditions which has had an impact on growth prospects. The assumption underlying the estimated future cash flows resulted in a present value (using a real pre-tax discount rate of 9.7 %) of $ 1,022 million and a related goodwill impairment being recorded of $ 295 million. Further, a goodwill impairment loss of $ 32 million has been recorded across certain reporting units within the Company’s Americas Materials Solutions segment primarily relating to assets held for sale. Accumulated goodwill impairment losses amount to $ 1,001 million and $ 691 million at December 31, 2023 and 2022, respectively and relates predominantly to Europe Materials Solutions. CRH Form 10-K 73 10. Additional financial information Other current assets at December 31 were: in $ millions 2023 2022 Prepayments 285 269 Other 193 134 Total other current assets 478 403 Accrued expenses at December 31 were: in $ millions 2023 2022 Accrued payroll and employee benefits 1,066 956 Other accruals 1,230 1,176 Total accrued expenses 2,296 2,132 Other current liabilities at December 31 were: in $ millions 2023 2022 Dividends payable 750 – Construction contract liabilities 439 344 Insurance liability 171 194 Income tax payable 129 142 Other 583 570 Total other current liabilities 2,072 1,250 Other noncurrent liabilities at December 31 were: in $ millions 2023 2022 Income tax payable 712 605 Asset retirement obligations 310 329 Pension liability 254 272 Insurance liability 260 265 Other 660 737 Total other noncurrent liabilities 2,196 2,208 CRH Form 10-K 74 11. Debt Long-term debt at December 31 was: in $ millions Effective interest rate 2023 2022 Long-term debt (U.S. dollar denominated unless otherwise noted) 3.125 % € notes due 2023 3.23 % – 801 0.875 % € notes due 2023 0.92 % – 534 1.875 % € notes due 2024 2.02 % 663 640 3.875 % U.S. Dollar notes due 2025 3.93 % 1,250 1,250 1.250 % € notes due 2026 1.25 % 829 801 3.400 % U.S. Dollar notes due 2027 3.49 % 600 600 4.000 % € notes due 2027 4.13 % 553 – 3.950 % U.S. Dollar notes due 2028 4.07 % 900 900 1.375 % € notes due 2028 1.42 % 663 640 4.125 % Sterling notes due 2029 4.22 % 509 481 1.625 % € notes due 2030 1.72 % 829 801 4.000 % € notes due 2031 4.10 % 829 – 6.400 % U.S. Dollar notes due 2033 (i) 6.43 % 213 213 4.250 % € notes due 2035 4.38 % 829 – 5.125 % U.S. Dollar notes due 2045 5.25 % 500 500 4.400 % U.S. Dollar notes due 2047 4.44 % 400 400 4.500 % U.S. Dollar notes due 2048 4.63 % 600 600 PHP interest bearing loan due 2027 5.95 % 396 420 U.S. Dollar Commercial Paper 5.85 % 1,002 – Other 37 11 Unamortized discounts and debt issuance costs ( 67 ) ( 50 ) Total long-term debt (ii) 11,535 9,542 Less: current portion of long-term debt (iii) ( 1,759 ) ( 1,397 ) Long-term debt 9,776 8,145 (i) The $ 300 million bond was issued in September 2003, and at the time of issuance the bond was partially swapped to floating interest rates. In August 2009 and December 2010, $ 87 million of the issued notes were acquired by CRH plc as part of liability management exercises undertaken and the interest rate hedge was closed out. The remaining fair value hedge adjustment on the hedged item on the Consolidated Balance Sheets was $ 30 million and $ 33 million at December 31, 2023 and 2022, respectively. (ii) Of the Company’s nominal fixed rate debt at December 31, 2023, $ 1,375 million is hedged to daily compounded Secured Overnight Financing Rate (SOFR) using interest rate swaps. Of the Company’s nominal fixed rate debt at December 31, 2022, $ 1,775 million was hedged to a mix of U.S. Dollar LIBOR and EURIBOR floating rates using interest rate swaps. (iii) Excludes borrowings from bank overdrafts of $ 107 million and $ 94 million, which are recorded within Current portion of long-term debt in the Consolidated Balance Sheets at December 31, 2023 and 2022, respectively. Long-term debt includes borrowings of $ nil million and $ nil million secured on specific items of property, plant and equipment at December 31, 2023 and 2022, respectively. Senior Notes: The Senior Notes are issued by wholly owned subsidiaries of the Company and carry full and unconditional guarantees from the Company, as defined in the indentures that govern them. These Senior Notes represent senior unsecured obligations of the Company and hold an equal standing in payment priority with the Company's existing and future unsubordinated indebtedness. The Senior Notes can be redeemed before their respective par call dates, with the exception of the 6.40 % Senior Notes due in 2033, at a make-whole redemption price. Post par call dates and before the respective maturity dates, the Senior Notes can be redeemed at a price equal to 100 % of the principal amount. In the event of a change-of-control repurchase event, the Company is obligated to offer repurchase options for the 3.875 % Senior Notes due in 2025, 3.40 % Senior Notes due in 2027, 3.95 % Senior Notes due in 2028, 5.125 % Senior Notes due in 2045, 4.40 % Senior Notes due in 2047, and 4.50 % Senior Notes due in 2048. This repurchase involves a cash payment equal to 101 % of the principal amount, along with any accrued and unpaid interest. If the Company's credit rating falls below investment-grade, the Company would be required to make an additional coupon step-up payment on the 3.875 % Senior Notes due in 2025 and 5.125 % Senior Notes due in 2045. The increase is 25 basis points per rating notch per agency, capped at 100 basis points per agency. However, this coupon step-up would reverse if the Company returns to an investment-grade rating. On July 11, 2023, the Company completed the issuance and sale of € 500 million in 4.00 % Senior Notes due in 2027, € 750 million in 4.00 % Senior Notes due in 2031, and € 750 million in 4.25 % Senior Notes due in 2035 (collectively referred to as the "2027/2031/2035 Senior Notes"). The net proceeds of € 1,984 million (after accounting for discounts and underwriting expenses) were utilized for general corporate business purposes. The costs related to this issuance, amounting to $ 18 million, have been capitalized and will be pro rata amortized over the lifespan of the 2027/2031/2035 Senior Notes. CRH Form 10-K 75 On April 3, 2023, and November 5, 2023, the Company utilized available cash to fully redeem € 750 million and € 500 million of outstanding 3.125 % euro Senior Notes due April 2023 and 0.875 % euro Senior Notes due November 2023, respectively. Philippines (PHP) Debt: In March 2017, the Company's subsidiary, Republic Cement & Building Materials, Inc., entered a credit arrangement with the Bank of the Philippine Islands. The Company does not provide a guarantee for this facility. The initial credit agreement provided for total commitments of PHP 12.5 billion for a ten-year term, which was later expanded to PHP 22.5 billion. The funds drawn from this facility carry a combination of fixed and floating interest rates. Bank Credit: The Company maintains a multi-currency revolving credit arrangement with a syndicate of lenders (the RCF). The RCF offers a senior unsecured revolving facility of € 3,500 million over five years . Borrowings under the RCF bear interest at rates based upon an underlying base rate, plus a margin determined in accordance with a ratings-based pricing grid. Base rates include SOFR for U.S. Dollar, EURIBOR for euros, SONIA for Sterling, and SARON for Swiss Francs, respectively. The facility entails an annual commitment fee calculated as a percentage of the applicable margin. On May 11, 2023, the Company amended and restated the RCF, extending the maturity date to May 11, 2028. The revised terms also re-instate the two plus-one (+1) extension options which, if successfully exercised with the agreement of the Lenders, would extend the maturity out to May 11, 2030. The deferred financing costs associated with the RCF were $ 8 million at December 31, 2023. The total potential credit available through this arrangement is € 3,500 million, inclusive of the ability to issue letters of credit. At December 31, 2023, and 2022, there were no outstanding borrowings or letters of credit issued under this facility and the undrawn committed facilities available to be drawn by the Company at December 31, 2023 were $ 3,868 million (€ 3,500 million equivalent). The RCF includes customary terms and conditions for investment-grade borrowers. There are no financial covenants. The Company has a $ 2,000 million U.S. Dollar Commercial Paper Program and a € 1,500 million euro Commercial Paper Program. The purpose of these programs is to provide short-term liquidity as required. The Company’s RCF supports the commercial paper programs with a separate € 750 million swingline sublimit which allows for same-day drawing in either euro or U.S. Dollar. The amount of commercial paper outstanding does not reduce available capacity under the RCF. Commercial paper borrowings may vary during the period, largely as a result of fluctuations in funding requirements. The long-term debt maturities, net of the unamortized discounts and debt issuance costs, for the periods subsequent to December 31, 2023 are as follows: in $ millions 2024 2025 2026 2027 2028 2029 and thereafter Total Long-term debt maturities 1,759 1,219 824 1,436 1,537 4,760 11,535 CRH Form 10-K 76 12. Leases In the normal course of its business, the Company enters into various leases as the lessee, primarily related to property. The Company also leases plant and machinery, vehicles and equipment. Lease liabilities at December 31 were: in $ millions 2023 2022 Current: Operating lease liabilities 255 238 Finance lease liabilities 31 22 Noncurrent: Operating lease liabilities 1,125 1,000 Finance lease liabilities 86 59 Total lease liabilities 1,497 1,319 The current portion of finance lease liabilities is included within Other current liabilities and the noncurrent portion of finance lease liabilities is included within Other noncurrent liabilities in the Consolidated Balance Sheets. The maturity analysis for the discounted and undiscounted lease liability arising from the Company’s leasing activities at December 31, 2023 was: in $ millions Operating leases Finance leases 2024 261 31 2025 221 27 2026 180 23 2027 144 15 2028 122 10 Thereafter 810 57 Total minimum lease payments 1,738 163 Less: lease payments representing interest ( 358 ) ( 46 ) Present value of future minimum lease payments 1,380 117 Less: current portion of lease liabilities ( 255 ) ( 31 ) Noncurrent portion of lease liabilities 1,125 86 The projections are based on the foreign exchange rates applied at the end of the relevant financial year and on interest rates (discounted projections only) applicable to the lease portfolio. The components of lease expense for the years ended December 31 were : in $ millions 2023 2022 2021 Finance leases Amortization of right-of-use-assets 19 20 22 Interest on lease liabilities 3 3 3 Operating leases 293 255 265 Short-term leases 329 273 239 Variable leases 85 94 97 Total lease expense (i) 729 645 626 (i) Income from subleasing transactions were not material for the Company. CRH Form 10-K 77 The weighted average remaining lease term and discount rates at December 31 were: 2023 2022 Weighted average remaining lease term (years) Operating leases 12 12 Finance leases 13 15 Weighted average discount rate (%) Operating leases 3.63 % 3.44 % Finance leases 4.07 % 3.85 % The supplemental cash flow information for the years ended December 31 were: in $ millions 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases ( 276 ) ( 269 ) ( 299 ) Financing cash flows from finance leases ( 26 ) ( 28 ) ( 29 ) Non cash investing and financing activities Leased assets obtained in exchange for new operating lease liabilities 232 130 180 Leased assets obtained in exchange for new finance lease liabilities 51 24 30 CRH Form 10-K 78 13. Asset retirement obligations Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets, including legal obligations for land reclamation. Recognition of a liability for an ARO is required in the period in which it is incurred at its estimated fair value. The associated asset retirement costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability is accreted through charges to Cost of revenues. If the ARO is settled for other than the carrying amount of the liability, a gain or loss on settlement is recognized. ARO costs related to accretion of the Company’s liabilities and the depreciation of the related assets for the years ended December 31 were: in $ millions 2023 2022 2021 Accretion 12 11 12 Depreciation 27 46 42 Total costs 39 57 54 AROs are reported within Other current liabilities and Other noncurrent liabilities in the Company’s accompanying Consolidated Balance Sheets. At December 31, 2023 and 2022, the carrying amount of the Company’s AROs were $ 360 million and $ 392 million, of which, $ 50 million and $ 63 million are current, respectively. 14. Fair value measurement Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and is measured using inputs in one of the following three categories: Level 1 measurements are based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation of these items does not entail a significant amount of judgment. Level 2 measurements are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or market data other than quoted prices that are observable for the assets or liabilities. Level 3 measurements are based on unobservable data that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. The carrying values and fair values of the Company’s Long-term debt were $ 11,535 million and $ 11,337 million, respectively, at December 31, 2023 and $ 9,542 million and $ 8,907 million, respectively, at December 31, 2022. The Company’s Long-term debt obligations are Level 2 instruments whose fair value is derived from quoted market prices. The redeemable noncontrolling interests included in the Consolidated Balance Sheets are marked to fair value on a recurring basis using Level 3 inputs. The redemption value of redeemable noncontrolling interests approximates the fair value and is based on a range of estimated potential outcomes of the expected payment amounts primarily dependent on underlying performance metrics. The unobservable inputs in the valuation include a discount rate determined using a Capital Asset Pricing Model methodology with ranges of between 6.67 % and 7.50 %. See Note 23 for the changes in the fair value of redeemable noncontrolling interests. The carrying values of the Company’s Cash and cash equivalents, Accounts receivable, net, Current portion of long-term debt, Accounts payable, Accrued expenses, and Other current liabilities approximate their fair values because of the short-term nature of these instruments. CRH Form 10-K 79 15. Income taxes The summary of the Income from continuing operations before income tax expense for the years ended December 31 was: in $ millions 2023 2022 2021 Income U.S. 2,729 2,225 1,596 Non-U.S. 1,285 1,236 1,506 Total income 4,014 3,461 3,102 The summary of the Income tax expense from continuing operations for the years ended December 31 was: in $ millions 2023 2022 2021 Current tax: U.S. - Federal 632 443 304 U.S. - State 67 87 47 Non-U.S. 290 221 205 Total current tax expense 989 751 556 Deferred tax: U.S. - Federal ( 28 ) 11 54 U.S. - State ( 12 ) ( 6 ) 11 Non-U.S. ( 24 ) 6 29 Total deferred tax (benefit) expense ( 64 ) 11 94 Total income tax expense 925 762 650 While the Company is domiciled in Ireland, due to the percentage of global operations subject to tax in the United States, the Company uses the U.S. Federal statutory tax rate in the reconciliation of the effective income tax rate. The reconciliation of the applicable U.S. Federal income tax rate to the effective income tax rates was: in $ millions 2023 2022 2021 U.S. statutory rate 843 727 651 State tax, net of federal tax benefit 38 73 61 Tax rate differentials ( 11 ) ( 6 ) 4 Uncertain tax positions 87 60 75 Tax credits ( 125 ) ( 96 ) ( 107 ) Non-deductible goodwill impairment 75 – – Other 18 4 ( 34 ) Total tax expense 925 762 650 Effective income tax rate 23 % 22 % 21 % CRH Form 10-K 80 The significant components of the deferred tax assets and liabilities at December 31 were: in $ millions 2023 2022 Deferred tax assets: Company retirement benefit plans 38 26 Revaluation of derivative financial instruments to fair value 2 – Tax losses, credits and interest deduction carryforwards 1,052 855 Share-based compensation 41 31 Accrued expenses 420 350 Lease liabilities 292 263 Total deferred tax assets 1,845 1,525 Less: valuation allowances ( 914 ) ( 737 ) Total deferred tax assets after valuation allowances 931 788 Deferred tax liabilities: Investment in subsidiaries 155 159 Depreciation, depletion and amortization 3,109 3,165 Leased right-of-use assets 274 250 Rolled-over capital gains 21 20 Other 12 – Total deferred tax liabilities 3,571 3,594 Total net deferred tax liabilities 2,640 2,806 The net deferred tax assets and liabilities that are included in the Consolidated Balance Sheets at December 31 were: in $ millions 2023 2022 Deferred income taxes, noncurrent assets ( 98 ) ( 79 ) Deferred income taxes, noncurrent liabilities 2,738 2,885 Total net deferred tax liabilities 2,640 2,806 At December 31, 2023, the Company had gross loss carryforwards of $ 1,295 million related to foreign operations and $ 32 million of state net operating loss carryforwards. $ 332 million of certain foreign and state loss carryforwards have various expiration dates ranging from 2024 to 2050; $ 931 million do not expire based on current tax legislation. The Company had gross interest deduction carryforwards of $ 2,115 million related to foreign operations. $ 74 million of certain interest carryforwards have various expiration dates ranging from 2024 to 2044, $ 2,041 million do not expire based on current tax legislation. The summary of the change in valuation allowance at December 31 was: in $ millions 2023 2022 2021 Balance at January 1 737 578 507 Provision for income taxes 151 203 102 Foreign currency and other 26 ( 44 ) ( 31 ) Balance at December 31 914 737 578 The Company maintains a valuation allowance on net operating losses and other deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. At December 31, 2023 and December 31, 2022, the Company has a valuation allowance on net deferred tax assets of $ 914 million and $ 737 million, respectively. For the year ended December 31, 2023, the valuation allowance increased due to an increase in interest deduction carryforwards. A deferred tax liability has been recognized in respect of any undistributed earnings in which the Company is not permanently reinvested. The Company has $ 16.4 billion of undistributed earnings that are considered permanently reinvested at December 31, 2023, for which no deferred tax liabilities have been recognized. It is not practicable to estimate the amount of tax that would be paid if there was a distribution of these earnings. Participation exemptions and tax credits are available in the majority of jurisdictions in which the Company operates. CRH Form 10-K 81 The reconciliation of the changes in the unrecognized tax benefits at December 31 was: in $ millions 2023 2022 2021 Balance at January 1 576 547 536 Increases related to prior periods 9 4 2 Decreases related to prior periods ( 12 ) ( 8 ) ( 21 ) Increases related to current period 148 130 104 Decreases related to settlements with taxing authorities and lapse of statute of limitations ( 68 ) ( 67 ) ( 56 ) Foreign currency and other 12 ( 30 ) ( 18 ) Balance at December 31 665 576 547 The Company files income tax returns in Ireland, the United States, the United Kingdom, Germany, Canada, and other various foreign jurisdictions and is subject to ongoing examination by tax authorities throughout the world. In general, the Company is no longer subject to significant income tax examinations by tax authorities in the jurisdictions noted for years before 2016. The Company believes that its income tax reserves are adequately maintained taking into consideration both the technical merits of its tax return positions and ongoing developments in its income tax audits. However, the final determination of the Company's tax return positions, if audited, is uncertain and therefore there is a possibility that the outcomes of such events could cause the Company’s estimate to change in the future. No single position is expected to generate a significant increase or decrease to the liability for unrecognized tax benefits within 12 months of the reporting date. At December 31, 2023 and December 31, 2022, the unrecognized tax benefits that, if recognized, would impact the effective tax rate were $ 627 million and $ 537 million, respectively. The Company’s policy is to accrue interest and penalties related to potential underpayment of income taxes within the provision for income taxes. At December 31, 2023 and December 31, 2022, the Company had accrued interest of $ 84 million and $ 68 million, respectively. At December 31, 2023, December 31, 2022, and December 31, 2021, the interest and penalties included in income tax expense was $ 14 million, $ 5 million, and $ 12 million, respectively. CRH Form 10-K 82 16. Earnings per share (EPS) The calculation of basic and diluted earnings per share for the years ended December 31 were: in $ millions, except share and per share data 2023 2022 2021 Numerator Income from continuing operations 3,072 2,699 2,507 Net (income) attributable to redeemable noncontrolling interests ( 28 ) ( 27 ) ( 22 ) Net loss (income) attributable to noncontrolling interests 134 – ( 34 ) Adjustment of redeemable noncontrolling interests to redemption value ( 24 ) 40 ( 18 ) Income from continuing operations for EPS - basic and diluted 3,154 2,712 2,433 Income from discontinued operations, net of income tax expense – 1,190 179 Net income attributable to CRH plc for EPS - basic and diluted 3,154 3,902 2,612 Denominator Weighted average common shares outstanding – Basic (i) 723.9 758.3 780.2 Effect of dilutive employee share awards (ii) 5.3 5.8 6.6 Weighted average common shares outstanding – Diluted 729.2 764.1 786.8 Basic earnings per share attributable to CRH plc Continuing operations $ 4.36 $ 3.58 $ 3.12 Discontinued operations – $ 1.57 $ 0.23 Net income $ 4.36 $ 5.15 $ 3.35 Diluted earnings per share attributable to CRH plc Continuing operations $ 4.33 $ 3.55 $ 3.09 Discontinued operations – $ 1.56 $ 0.23 Net income $ 4.33 $ 5.11 $ 3.32 (i) The weighted average number of common shares included in the computation of basic and diluted earnings per share has been adjusted to exclude shares repurchased and held by the Company as Treasury Stock given that these shares do not rank for dividend. (ii) Common shares that would only be issued contingent on certain conditions totaling 4,677,404 , 4,209,404 and 3,630,633 at December 31, 2023, 2022 and 2021, respectively, are excluded from the computation of diluted earnings per share where the conditions governing exercisability have not been satisfied as of the end of the reporting period or they are antidilutive for the periods presented. CRH Form 10-K 83 17. Share-based compensation Share-based compensation relates primarily to awards granted under the 2014 Performance Share Plan (PSP) and the Company’s Savings-related Share Option Schemes. The expense, net of estimated forfeitures, is reflected in operating income in the Consolidated Statements of Income. The share-based compensation for these plans for the years ended December 31 was: in $ millions 2023 2022 2021 Performance Share Plan expense 120 97 106 Share Option expense 3 3 2 Total share-based compensation 123 100 108 2014 Performance Share Plan The PSP authorizes the granting of conditional awards or nil-cost options (right to acquire shares during an exercise period without cost to the participant). The number of shares authorized under the PSP during the years ended December 31, 2023, 2022 and 2021 did not exceed 10 % of the issued share capital at that time. Under the PSP, the Company has granted performance stock units (PSUs) to its employees. PSUs provide an employee with the right to receive shares of the Company’s stock, subject to fulfillment of certain market, performance and service conditions over a vesting period. The performance conditions are as follows for the 2023 and 2022 PSUs: 20 % of each award made is subject to Total Shareholder Return (TSR) performance measured against a tailored peer group; 20 % is subject to a Return on Net Assets (RONA) metric; 15 % is subject to a sustainability and diversity scorecard metric introduced in 2022; with the remaining 45 % subject to a cumulative cash flow metric. The performance conditions are as follows for the 2021 PSUs: 25 % of each award made is subject to TSR performance measured against a tailored peer group; 25 % is subject to a RONA metric; with the remaining 50 % subject to a cumulative cash flow metric. Performance for the awards is assessed over a three-year period. The details of the awards granted under the PSP for the year ended December 31, 2023 were: Number of shares Weighted average grant date fair value Shares in whole numbers Amounts in $ Amounts in € Outstanding at beginning of year 10,178,940 36.25 32.52 Granted 2,979,818 48.55 45.57 Forfeited ( 356,840 ) 37.45 33.97 Vested ( 2,985,299 ) 30.95 27.70 Outstanding at end of year 9,816,619 41.56 37.90 During fiscal years 2022 and 2021, the weighted average grant date fair values were $ 36.29 (€ 34.50 ) and $ 42.05 (€ 35.40 ), respectively. The fair value of (i) the portion of awards subject to a cash flow performance metric; (ii) the portion of awards subject to a RONA metric; (iii) the portion of awards subject to a sustainability and diversity scorecard metric (from 2022 onward); and (iv) the portion of awards with no performance conditions which are subject to a two-year service period; was calculated as the Company’s closing share price at the date the award was granted. The fair value assigned to the portion of awards subject to a TSR performance metric was calculated using the Monte Carlo simulation model, at the grant date, taking account of peer group TSR, volatilities and correlations together with the following assumptions: 2023 2022 2021 Risk-free interest rate (%) 3.16 0.51 ( 0.56 ) Expected volatility (%) 28.9 36.9 35.1 The expected volatility was determined using a historical sample of the Company’s daily share prices over a period equal to the expected term. The risk-free interest rate is based on the Irish government bond yield at the grant date with a maturity period equal to the expected term. During the years ended December 31, 2023, 2022 and 2021, 2,985,299 shares vested having a fair value of $ 147 million; 3,084,926 shares vested having a fair value of $ 123 million, and 2,915,761 shares vested having a fair value of $ 137 million, respectively. At December 31, 2023, unrecognized compensation expense related to the awards was $ 179 million, which will be recognized over the remaining weighted average vesting period of 1.31 years. CRH Form 10-K 84 2010 and 2021 Savings-related Share Option Schemes In April 2021, shareholders approved the adoption of the 2021 Savings-related Share Option Schemes, which replaced the schemes approved by shareholders in May 2010. The number of shares authorized under the Savings-related Share Option Schemes during the years ended December 31, 2023, 2022 and 2021 did not exceed 10 % of the issued share capital at that time. Under the schemes, participants may save up to € 500 /Stg£ 500 per month from their net salaries, for a fixed term of three or five years (the savings period). Within a period of six months after the end of the savings period, they have the option to buy shares of the Company at a discount of up to 15 % of the market price on the date of invitation of each savings contract. Under the Share Options schemes, 86,520 , 402,645 and 470,001 shares of the Company were purchased at a weighted average price of $ 26.82 , $ 25.24 and $ 25.88 respectively, during the years ended December 31, 2023, 2022, and 2021, respectively. At December 31, 2023, the total unrecognized stock-based compensation expense related to the Share Option Schemes was $ 4 million and is expected to be recognized over a weighted average period of 1.66 years. The fair values assigned to options issued under the Share Option Schemes were calculated in accordance with the trinomial valuation methodology. The assumptions used to determine the fair value of the options issued under the Share Options Schemes with three-year and five-year savings periods at December 31 were: 2022 2021 3-year 5-year 3-year 5-year Risk-free interest rate (%) 2.08 2.24 ( 0.61 ) ( 0.43 ) Expected dividend payments over the expected life (€) 4.06 7.05 3.25 5.65 Expected volatility (%) 26.4 24.2 23.5 21.2 Expected life term (years) 3 5 3 5 There were no options granted during the year ended December 31, 2023. The expected volatility was determined using a historical sample of 37 month-end Company share prices in respect of the three-year savings-related share options and 61 month-end share prices in respect of the five-year savings-related share options. The expected lives of the options are based on historical data and are therefore not necessarily indicative of exercise patterns that may materialize. Other than the assumptions listed above, no other features of options grants were factored into the determination of fair value. The terms of the options issued under the Savings-related Share Option Schemes do not contain any market conditions. 18. Shareholders' equity The Company’s capital stock consists of common stock, 5 % preferred stock and 7 % ‘A’ preferred stock. Holders of the Company’s common stock are entitled to one vote per share. The holders of the 5 % preferred stock are entitled to a fixed preferred dividend at a rate of 5 % per annum and priority in a winding-up to repayment of capital but have no further right to participate in profits or assets and are not entitled to be present or vote at general meetings unless their dividend is in arrears. Dividends on the 5 % preferred stock are payable half-yearly on April 15 and October 15 in each year. The 5 % preferred stock represent 0.03 % and 0.03 % of the total issued share capital at December 31, 2023 and 2022, respectively. The holders of the 7 % ‘A’ preferred stock are entitled to a fixed preferred dividend at a rate of 7 % per annum, and subject to the rights of the holders of the 5 % preferred stock, priority in a winding-up to repayment of capital, but have no further right to participate in profits or assets and are not entitled to be present or vote at general meetings unless their dividend is in arrears or unless the business of the meeting includes certain matters. Dividends on the 7 % ‘A’ preferred stock are payable half-yearly on April 5 and October 5 in each year. The 7 % ‘A’ preferred stock represent 0.47 % and 0.45 % of the total issued share capital at December 31, 2023 and 2022, respectively. For the years ended December 31, 2023, 2022, and 2021, dividends declared on 5 % preferred stock and 7 % ‘A’ preferred stock were all less than $ 1 million, respectively. On March 2, 2023, the Board approved the Company’s intention to increase its share buyback program through the repurchase of up to $ 3 billion of the Company’s shares over the 12 months to March 2024, subject to market conditions prevailing at the time and on the formal Shareholder approval of the share buyback authority. During 2023 and 2022, a total of 54,900,928 and 29,755,861 shares of Common stock (equivalent to 7.47 % and 3.96 % of the Company’s issued share capital) were repurchased at an average price of $ 54.92 and $ 39.22 per share under the share buyback program, respectively. During 2023, 17,620,740 shares of Common stock (equivalent to 2.40 % of the Company’s issued share capital) were retired on repurchase. During 2022, 22,000,000 shares of Treasury stock (equivalent to 2.92 % of the Company’s issued share capital) were retired. At December 31, 2023 and 2022, 42,419,281 and 7,712,885 shares were held as Treasury stock, equivalent to 5.78 % and 1.03 % of the Common stock issued, respectively. CRH Form 10-K 85 19. Accumulated other comprehensive loss The changes in the balances for each component of Accumulated other comprehensive loss, net of tax, for the years ended December 31 were: in $ millions Currency Translation Cash Flow Hedges Pension and Other Postretirement Plans Total Balance at December 31, 2020 205 ( 1 ) ( 548 ) ( 344 ) Other comprehensive (loss) income before reclassifications ( 338 ) 48 203 ( 87 ) Amounts reclassified from Accumulated other comprehensive loss (i) ( 29 ) ( 29 ) 29 ( 29 ) Net current-period other comprehensive (loss) income ( 367 ) 19 232 ( 116 ) Other comprehensive loss attributable to noncontrolling interests 35 – – 35 Balance at December 31, 2021 ( 127 ) 18 ( 316 ) ( 425 ) Other comprehensive (loss) income before reclassifications ( 664 ) 23 288 ( 353 ) Amounts reclassified from Accumulated other comprehensive loss (i) ( 1 ) ( 60 ) 6 ( 55 ) Net current-period other comprehensive (loss) income ( 665 ) ( 37 ) 294 ( 408 ) Other comprehensive loss attributable to noncontrolling interests 46 – – 46 Balance at December 31, 2022 ( 746 ) ( 19 ) ( 22 ) ( 787 ) Other comprehensive income (loss) before reclassifications 310 ( 37 ) ( 104 ) 169 Amounts reclassified from Accumulated other comprehensive loss – 9 ( 4 ) 5 Net current-period other comprehensive income (loss) 310 ( 28 ) ( 108 ) 174 Other comprehensive (income) attributable to noncontrolling interests ( 3 ) – – ( 3 ) Balance at December 31, 2023 ( 439 ) ( 47 ) ( 130 ) ( 616 ) (i) For the year ended December 31, 2022, $ 4 million and $( 5 ) million were transferred from currency translation related to gains and (losses) on divestitures that were reclassified from Accumulated other comprehensive loss to Other nonoperating (expense) income, net and Income from discontinued operations, net of income tax expense, respectively. For the year ended December 31, 2021 amounts transferred from currency translation related to losses on divestitures were reclassified from Accumulated other comprehensive loss to Other nonoperating (expense) income, net. The amounts reclassified from Accumulated other comprehensive loss to income for the years ended December 31 were: in $ millions 2023 2022 2021 Cash flow hedges Cost of product revenues 12 ( 73 ) ( 29 ) Income tax (benefit) expense ( 3 ) 13 – Total 9 ( 60 ) ( 29 ) Pension and other postretirement plans Other nonoperating (income) expense, net ( 7 ) 8 36 Income tax expense (benefit) 3 ( 2 ) ( 7 ) Total ( 4 ) 6 29 Reclassifications from Accumulated other comprehensive loss to income 5 ( 54 ) – CRH Form 10-K 86 20. Segment information Effective January 1, 2023 the Company restructured into two Divisions, CRH Americas and CRH Europe. During the first quarter of 2023, the Company's reportable segments changed to the following four segments: Americas Materials Solutions; Americas Building Solutions; Europe Materials Solutions; and Europe Building Solutions The Americas Materials Solutions segment provides solutions for the construction and maintenance of public infrastructure and commercial and residential buildings in North America. The primary materials produced by this segment include aggregates, cement, readymixed concrete and asphalt. This segment also provides paving and construction services for customers. The Americas Building Solutions segment manufactures, supplies and delivers solutions for the built environment in communities across North America. Our subsidiaries within this segment offer building and infrastructure solutions serving complex critical utility infrastructure (such as water, energy, transportation and telecommunications projects) and outdoor living solutions for enhancing private and public spaces. The Europe Materials Solutions segment provides solutions for the construction of public infrastructure and commercial and residential buildings to customers in construction markets in Europe. The primary materials produced in this segment include aggregates, cement, readymixed concrete, asphalt and concrete products. The Europe Building Solutions segment combines materials, products and services to produce a wide range of architectural and infrastructural solutions for use in the building and renovation of critical utility infrastructure, commercial and residential buildings, and outdoor living spaces for the built environment. This business serves the growing demand across the construction value chain for innovative and value-added products and services. This realignment reflects the Company’s organizational structure in 2023 and the nature of the financial information reported to and assessed by the Chief Executive, Chief Financial Officer and Chief Operating Officer, who are together determined to fulfil the role of Chief Operating Decision Maker (CODM). Comparative segment information for 2022 and 2021 has been restated to reflect the change in segments. The principal factors employed in the identification of the four segments reflected in this note include: (i) the Company’s organizational structure in 2023 (during 2023 the Divisional President fulfilled the role of “segment manager”); (ii) the nature of the reporting lines to the CODM; and (iii) the structure of internal reporting documentation such as management accounts and budgets. The Company’s reportable segments are the same as the Company’s operating segments and correspond with how the CODM regularly reviews financial information to allocate resources and assess performance under the Company’s organizational structure in 2023. The CODM monitors the operating results of segments separately in order to allocate resources between segments and to assess performance. Segment performance is evaluated using Adjusted EBITDA. Given that Interest expense and Income tax expense are managed on a centralized basis, these items are not allocated between operating segments for the purposes of the information presented to the CODM and are accordingly omitted from the detailed segmental analysis below. There are no asymmetrical allocations to reporting segments which would require disclosure. Adjusted EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, loss on impairments, gain/loss on divestitures, income/loss from equity method investments, substantial acquisition-related costs and pension expense/income excluding current service cost component. The key performance measures for the Company’s reportable segments for the years ended December 31 were: Revenues Adjusted EBITDA in $ millions 2023 2022 2021 2023 2022 2021 Americas Materials Solutions 15,435 14,324 12,407 3,059 2,638 2,543 Americas Building Solutions 7,017 6,188 4,628 1,442 1,219 720 Europe Materials Solutions 9,690 9,349 9,389 1,395 1,195 1,228 Europe Building Solutions 2,807 2,862 2,782 280 336 315 Total revenues and Adjusted EBITDA 34,949 32,723 29,206 6,176 5,388 4,806 in $ millions 2023 2022 2021 Adjusted EBITDA 6,176 5,388 4,806 Depreciation, depletion and amortization ( 1,633 ) ( 1,552 ) ( 1,479 ) Loss on impairments (i) ( 357 ) – – Interest income 206 65 – Interest expense ( 376 ) ( 344 ) ( 315 ) (Loss) gain on divestitures (ii) – ( 99 ) 78 Pension income excluding current service cost component (ii) 3 30 9 Other interest, net (ii) ( 5 ) – 3 Substantial acquisition-related costs – ( 27 ) – Income from continuing operations before income tax expense and income from equity method investments 4,014 3,461 3,102 CRH Form 10-K 87 (i) For the year ended December 31, 2023, the total loss on impairments comprised of $ 62 million within Americas Materials Solutions and $ 295 million within Europe Materials Solutions. (ii) (Loss) gain on divestitures, pension income excluding current service cost component and other interest, net have been included in Other nonoperating (expense) income, net in the Consolidated Statements of Income. Depreciation, depletion and amortization for each of the segments for the years ended December 31 were: in $ millions 2023 2022 2021 Depreciation, depletion and amortization Americas Materials Solutions 781 777 750 Americas Building Solutions 299 236 155 Europe Materials Solutions 464 466 490 Europe Building Solutions 89 73 84 Total depreciation, depletion and amortization 1,633 1,552 1,479 There was no (loss) gain on divestitures for the year ended December 31, 2023. The (loss) gain on divestitures for each of the segments for the years ended December 31 were: in $ millions 2022 2021 (Loss) gain on divestitures Americas Materials Solutions – 104 Americas Building Solutions – ( 25 ) Europe Materials Solutions ( 99 ) 3 Europe Building Solutions – ( 4 ) Total (loss) gain on divestitures ( 99 ) 78 CRH Form 10-K 88 The segment assets at December 31 were: in $ millions 2023 2022 Assets Americas Materials Solutions 17,534 17,615 Americas Building Solutions 7,961 7,749 Europe Materials Solutions 10,983 10,947 Europe Building Solutions 2,390 2,193 Total assets for reportable segments 38,868 38,504 Cash and cash equivalents 6,341 5,936 Other current assets, excluding segment assets 193 134 Equity method investments 620 649 Assets held for sale 1,268 – Other noncurrent assets, excluding segment assets 179 96 Total assets as reported in the Consolidated Balance Sheets 47,469 45,319 The segment liabilities at December 31 were: in $ millions 2023 2022 Liabilities Americas Materials Solutions 3,349 2,908 Americas Building Solutions 1,770 1,567 Europe Materials Solutions 4,096 3,522 Europe Building Solutions 954 886 Total liabilities for reportable segments 10,169 8,883 Other current liabilities, excluding segment liabilities 156 193 Total debt 11,642 9,636 Deferred income tax liabilities 2,738 2,885 Liabilities held for sale 375 – Other noncurrent liabilities, excluding segment liabilities 768 682 Total liabilities as reported in the Consolidated Balance Sheets 25,848 22,279 Additions to property, plant and equipment for each of the segments for the years ended December 31 were: in $ millions 2023 2022 2021 Property, plant and equipment additions (i) Americas Materials Solutions 854 715 727 Americas Building Solutions 360 259 206 Europe Materials Solutions 553 460 510 Europe Building Solutions 111 99 97 Total property, plant and equipment additions 1,878 1,533 1,540 (i) Property, plant and equipment additions exclude asset retirement cost additions. Long-lived assets by geographic area at December 31 were: in $ millions 2023 2022 Long-lived assets by geographical area (i) Republic of Ireland 421 487 United Kingdom 1,786 1,691 United States 10,821 10,916 Other 6,105 5,849 Total long-lived assets by geographical area 19,133 18,943 (i) Long-lived assets comprise property, plant and equipment and operating lease right-of-use assets. Information about major customers There are no material dependencies or concentrations of individual customers that require disclosure. The individual entities within the Company have a large number of customers spread across various activities, end-users and geographies. CRH Form 10-K 89 21. Pension and other postretirement benefits The Company operates either defined benefit or defined contribution pension schemes in all of its principal operating areas. The disclosures included below relate to all pension schemes in the Company. The Company operates defined benefit pension schemes in Belgium, Canada, France, Germany, Italy, the Netherlands, the Philippines, the Republic of Ireland, Romania, Serbia, Slovakia, Switzerland, the United Kingdom and the United States. The Company also operated a defined benefit pension scheme in Brazil which was divested in April 2021. The Company has a mixture of funded and unfunded defined benefit pension schemes. The net surplus of the funded schemes was $ 218 million and $ 298 million at December 31, 2023 and December 31, 2022, respectively. Unfunded obligations (including jubilee, postretirement healthcare obligations and long-term service commitments) comprise of a number of schemes in Canada, France, Germany, Italy, the Netherlands, the Philippines, Romania, Serbia, Slovakia, Switzerland and the United States, totaling a net liability of $ 260 million and $ 238 million at December 31, 2023 and December 31, 2022 respectively. Funded defined benefit schemes in the Republic of Ireland, Switzerland and the United Kingdom are administered by separate funds that are legally distinct from the Company under the jurisdiction of Trustees. The Trustees are required by law to act in the best interests of the scheme participants and are responsible for the definition of investment strategy and for scheme administration. Other schemes are also administered in line with the local regulatory environment. The level of benefits available to most members depends on length of service and either their average salary over their period of employment or their salary in the final years leading up to retirement. For Switzerland, the level of benefits depends on salary, level of savings contributions, the interest rate on old age accounts (which cannot be negative) and the annuity conversion factor on retirement. The Company’s pension schemes in Switzerland are contribution-based schemes with guarantees. This means the Company pays an age-dependent fixed contribution percentage but should the invested assets be insufficient to meet the guaranteed benefit obligations, additional contributions might be required. CRH Form 10-K 90 The change in benefit obligation, change in plan assets, funded status of pension and other postretirement (OPEB) plans, and amounts recognized in the Consolidated Balance Sheets were: Pension Plans OPEB Plans (i) 2023 2022 2023 2022 in $ millions U.S. Non-U.S. U.S. Non-U.S. Change in benefit obligation: Benefit obligation at beginning of year 497 2,105 677 3,136 100 129 Service cost 1 31 2 55 2 3 Interest cost 24 86 18 43 5 3 Amendments – ( 1 ) 2 ( 2 ) – – Actuarial losses and (gains) 9 178 ( 153 ) ( 831 ) 3 ( 32 ) Benefits paid ( 35 ) ( 89 ) ( 35 ) ( 101 ) ( 5 ) ( 5 ) Plan participant contributions – 9 – 9 – – Settlements – ( 4 ) – ( 6 ) – – Net transfer out (including the effect of any business combinations/divestitures) – – ( 14 ) ( 11 ) – – Foreign currency rate changes – 99 – ( 187 ) – 2 Benefit obligation at end of year 496 2,414 497 2,105 105 100 Change in plan assets Fair value of plan assets at beginning of year 446 2,316 601 3,015 – – Actual gain (loss) on plan assets 37 143 ( 122 ) ( 467 ) – – Employer contributions 1 38 2 36 5 5 Plan participant contributions – 9 – 9 – – Benefits paid ( 35 ) ( 89 ) ( 35 ) ( 101 ) ( 5 ) ( 5 ) Settlements – ( 4 ) – ( 6 ) – – Foreign currency rate changes – 111 – ( 170 ) – – Fair value of plan assets at end of year 449 2,524 446 2,316 – – Reconciliation of funded status: Fair value of plan assets 449 2,524 446 2,316 – – Benefit obligation 496 2,414 497 2,105 105 100 Funded status ( 47 ) 110 ( 51 ) 211 ( 105 ) ( 100 ) Accumulated Benefit Obligation 496 2,349 497 2,074 Amounts recognized in the Consolidated Balance Sheets: Noncurrent assets – 271 – 347 – – Current liabilities ( 2 ) ( 4 ) ( 2 ) ( 7 ) ( 6 ) ( 6 ) Noncurrent liabilities ( 45 ) ( 111 ) ( 49 ) ( 129 ) ( 98 ) ( 94 ) Liabilities held for sale – ( 46 ) – – ( 1 ) – Funded status at end of year ( 47 ) 110 ( 51 ) 211 ( 105 ) ( 100 ) Net actuarial (loss) gain ( 68 ) ( 225 ) ( 79 ) ( 97 ) 35 40 Prior service (cost) credit ( 1 ) 92 ( 1 ) 95 3 3 Total accumulated other comprehensive (loss) income ( 69 ) ( 133 ) ( 80 ) ( 2 ) 38 43 (i) Includes a benefit obligation of $ 11 million and $ 11 million related to non-U.S. OPEB plans at December 31, 2023 and 2022, respectively. CRH Form 10-K 91 The pension and other postretirement plans for which their accumulated benefit obligation, projected benefit obligation or accumulated postretirement benefit obligation exceeds the fair value of their respective plan assets at December 31 were: U.S. Plans Non-U.S. Plans in $ millions 2023 2022 2023 2022 Pension plans with projected benefit obligations in excess of plan assets: Projected benefit obligation 496 497 580 512 Fair value of plan assets 449 446 421 378 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation 496 497 527 503 Fair value of plan assets 449 446 394 374 Other postretirement plans with accumulated postretirement benefit obligations in excess of plan assets: Accumulated postretirement benefit obligation – – 9 8 Fair value of plan assets – – – – Impact on Consolidated Statements of Income The total retirement benefit expense recognized in the Consolidated Statements of Income for the years ended December 31 were: in $ millions 2023 2022 2021 Total defined contribution expense 320 307 288 Total defined benefit expense 31 30 61 Total expense within the Consolidated Statements of Income 351 337 349 Components of Net Periodic Benefit Cost (Income) The components of net periodic benefit cost (income) recognized in the Consolidated Statements of Income for the years ended December 31 were: Pension Plans OPEB Plans (ii) U.S. Non-U.S. in $ millions 2023 2022 2021 2023 2022 2021 2023 2022 2021 Service cost 1 2 3 31 55 63 2 3 4 Interest cost 24 18 19 86 43 40 5 3 4 Expected return on assets ( 20 ) ( 30 ) ( 37 ) ( 91 ) ( 72 ) ( 71 ) – - – Amortization of: Prior service cost (credit) – 1 – ( 11 ) ( 11 ) ( 11 ) – – ( 1 ) Actuarial loss (gain) 3 2 4 4 15 26 ( 3 ) – – Curtailment loss (gain) – 3 – – – – ( 1 ) – – Settlement loss (gain) – – 17 1 ( 2 ) 1 – – – Net periodic benefit cost (income) (i) 8 ( 4 ) 6 20 28 48 3 6 7 (i) Service cost is included within Cost of revenues and Selling, general and administrative expenses while all other cost components are recorded within Other nonoperating (expense) income, net. (ii) Includes the net periodic benefit cost of $ nil million, $ 1 million and $ 1 million related to non-U.S. OPEB plans for the years ended December 31, 2023, 2022, and 2021 respectively. CRH Form 10-K 92 The changes in plan assets and benefit obligations that were recognized in Other comprehensive (income) loss for the years ended December 31 were: Pension Plans OPEB Plans U.S. Non-U.S. (i) in $ millions 2023 2022 2021 2023 2022 2021 2023 2022 2021 Net actuarial (gain) loss ( 8 ) ( 1 ) ( 7 ) 126 ( 292 ) ( 181 ) 3 ( 32 ) ( 19 ) Prior service cost (credit) – 2 1 ( 1 ) ( 2 ) ( 1 ) – – ( 1 ) Amortization or curtailment recognition of prior service (cost) credit – ( 4 ) – 11 11 11 – – 1 Amortization or settlement recognition of net (loss) gain ( 3 ) ( 2 ) ( 21 ) ( 4 ) ( 13 ) ( 27 ) 3 – – Foreign currency exchange effects – – – ( 2 ) ( 27 ) ( 29 ) – – – Amount recognized in other comprehensive (income) loss (i) ( 11 ) ( 5 ) ( 27 ) 130 ( 323 ) ( 227 ) 6 ( 32 ) ( 19 ) Amount recognized in net periodic pension benefit cost (income) and other comprehensive (income) loss ( 3 ) ( 9 ) ( 21 ) 150 ( 295 ) ( 179 ) 9 ( 26 ) ( 12 ) (i) Includes an amount recognized in other comprehensive (income) loss of $ 1 million, $( 2 ) million and $( 2 ) million related to non-U.S. OPEB plans for the years ended December 31, 2023, 2022 and 2021, respectively. The weighted average assumptions used to determine net periodic benefit cost (income) for the years ended December 31 were: Pension Plans OPEB Plans U.S. Non-U.S. 2023 2022 2021 2023 2022 2021 2023 2022 2021 Discount rate 5.20 % 2.70 % 2.25 % 4.13 % 1.54 % 1.23 % 5.08 % 2.59 % 2.18 % Rate of compensation increase N/A 3.50 % 3.50 % 3.22 % 2.74 % 2.39 % 2.80 % 2.22 % 2.37 % Expected long‐term rate of return on plan assets 5.50 % 5.50 % 5.50 % 4.04 % 2.54 % 2.51 % N/A N/A N/A Interest crediting rates N/A N/A N/A 1.50 % 2.25 % 1.25 % N/A N/A N/A The weighted average assumptions used to determine the benefit obligation at December 31 were: Pension Plans OPEB Plans U.S. Non-U.S. 2023 2022 2023 2022 2023 2022 Discount rate 4.95 % 5.20 % 3.49 % 4.13 % 4.86 % 5.08 % Rate of compensation increase N/A N/A 3.22 % 3.22 % 2.75 % 2.80 % The long-term return expectation is developed based on a diversified investment strategy that takes into account historical experience, as well as the impact of portfolio diversification, active portfolio management, and the Company’s view of current and future economic and financial market conditions. In determining the expected rate of return for the plan assets, the Company analyzes investment community forecasts and current market conditions to develop expected returns for each of the asset classes used by the plans, which are weighted to reflect the asset allocation of each plan. As market conditions and other factors change, the Company may adjust targets accordingly, and asset allocations may vary from the target allocations. The assets of the Company’s pension and other postretirement plans are managed externally for the benefit of the plan members. Consideration is given to the long-term nature of the benefit obligations and the investment strategy is set at plan level, typically to maintain a diversified portfolio of assets with the objective of meeting future obligations and long-term cash requirements as they fall due. Assets are primarily invested in diversified funds that hold equity and debt securities to maintain security while maximizing returns within each plan’s investment policy. The investment policy for each plan specifies the type of investment vehicle, asset allocation guidelines as well as investment monitoring/performance requirements. For the main funded plans, the target allocations to equity/debt are as follows: (i) Ireland: Equities 10 - 20 % / Debt 45 - 55 %. (ii) U.S.: Equities 10 - 30 % / Debt 65 - 85 %. (iii) Switzerland: Equities 25 - 35 % / Debt 25 - 55 %. (iv) Other asset classes have a range of smaller % targets. CRH Form 10-K 93 The target allocation ranges and fair values by asset class at December 31 were: Pension Plans Target allocation ranges U.S. Plans Non-U.S. Plans 2023 (%) Cash and cash equivalents – 0 - 5 Equity instruments (i) 10 - 30 15 - 25 Debt instruments (ii) 65 - 85 20 - 35 Real estate – 5 - 10 Derivatives – 0 - 5 Investment funds 0 - 15 0 - 5 Assets held by insurance company – 0 - 5 Other – 0 - 10 (i) For U.S. pension plans, equity instruments with a total allocation range of 10 - 30 % are made up of 10 - 30 % in developed markets’ diversified equity instruments and 10 - 30 % in emerging markets’ diversified equity instruments. For non-U.S. pension plans, equity instruments with a total allocation range of 15 - 25 % are made up of 15 - 22 % in developed markets’ diversified equity instruments and 1 - 2 % in emerging markets’ diversified equity instruments. (ii) For U.S. pension plans, debt instruments with a total allocation range of 65 - 85 % are made up of 65 - 85 % in non-government debt instruments and 65 - 85 % in government fixed interest instruments. For non-U.S. pension plans, debt instruments with a total allocation range of 20 - 35 % are made up of 11 - 18 % in non-government debt instruments, 17 - 32 % in government fixed interest instruments, 31 - 40 % in government inflation-protected bonds, 4 - 10 % in asset-backed instruments, 4 - 10 % in inflation-protected bonds and 4 - 10 % in structured debt. The Company’s asset allocations by asset category at December 31 were: Pension Plans Fair Values 2023 U.S. Plans Non-U.S. Plans in $ millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents 3 – – 3 50 15 – 65 Equity instruments (i) – 90 – 90 462 56 – 518 Debt instruments (ii) – 341 – 341 1,310 179 – 1,489 Real estate – – – – 97 82 14 193 Derivatives – – – – 12 2 – 14 Investment funds 11 – – 11 85 13 – 98 Assets held by insurance company – – – – – 2 117 119 Other – – 4 4 1 19 8 28 Total 14 431 4 449 2,017 368 139 2,524 (i) For U.S. pension plans, equity instruments of $ 90 million are made up of $ 79 million in developed markets’ diversified equity instruments and $ 11 million in emerging markets’ diversified equity instruments. For non-U.S. pension plans, equity instruments of $ 518 million are made up of $ 486 million in developed markets’ diversified equity instruments and $ 32 million in emerging markets’ diversified equity instruments. (ii) For U.S. pension plans, debt instruments of $ 341 million are made up of $ 233 million in non-government debt instruments and $ 108 million in government fixed interest instruments. For non-U.S. pension plans, debt instruments of $ 1,489 million are made up of $ 251 million in non-government debt instruments, $ 400 million in government fixed interest instruments, $ 763 million in government inflation-protected bonds, $ 34 million in asset-backed instruments and $ 41 million in inflation-protected bonds. There were no other postretirement plan assets at December 31, 2023. CRH Form 10-K 94 Pension Plans Fair Values 2022 U.S. Plans Non-U.S. Plans in $ millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents 4 – – 4 53 – – 53 Equity instruments (i) – 83 – 83 435 66 – 501 Debt instruments (ii) 3 314 – 317 1,288 36 – 1,324 Real estate – – – – 181 – 13 194 Derivatives – – – – 12 ( 5 ) – 7 Investment funds 23 – 11 34 77 11 – 88 Assets held by insurance company – – – – – 2 113 115 Other – – 8 8 28 – 6 34 Total 30 397 19 446 2,074 110 132 2,316 (i) For U.S. pension plans, equity instruments of $ 83 million are made up of $ 73 million in developed markets’ diversified equity instruments and $ 10 million in emerging markets’ diversified equity instruments. For non-U.S. pension plans, equity instruments of $ 501 million are made up of $ 470 million in developed markets’ diversified equity instruments and $ 31 million in emerging markets’ diversified equity instruments. (ii) For U.S. pension plans, debt instruments of $ 317 million are made up of $ 189 million in non-government debt instruments and $ 128 million in government fixed interest instruments. For non-U.S. pension plans, debt instruments of $ 1,324 million are made up of $ 197 million in non-government debt instruments, $ 437 million in government fixed interest instruments, $ 663 million in government inflation-protected bonds and $ 27 million in asset-backed instruments. There were no other postretirement plan assets at December 31, 2022. The Level 3 reconciliation for pension plans by asset class for the years ended December 31, 2023 and 2022 were: U.S. Plans in $ millions Beginning balance on 1/1/2023 Actual return on plan assets, relating to assets still held at reporting date Purchases, sales and settlements Transfer (out of) Level 3 Change due to exchange rate changes Ending balance on 12/31/2023 Asset Class Investment funds 11 – – ( 11 ) – – Other 8 1 ( 1 ) ( 4 ) – 4 Total 19 1 ( 1 ) ( 15 ) – 4 Non-U.S. Plans in $ millions Beginning balance on 1/1/2023 Actual return on plan assets, relating to assets still held at reporting date Purchases, sales and settlements Transfer into/(out of) Level 3 Change due to exchange rate changes Ending balance on 12/31/2023 Asset Class Real estate 13 – - – 1 14 Assets held by insurance company 113 11 ( 10 ) – 3 117 Other 6 2 – – – 8 Total 132 13 ( 10 ) – 4 139 U.S. Plans in $ millions Beginning balance on 1/1/2022 Actual return on plan assets, relating to assets still held at reporting date Purchases, sales and settlements Change due to exchange rate changes Ending balance on 12/31/2022 Asset Class Investment funds 11 – – – 11 Other 9 – ( 1 ) – 8 Total 20 – ( 1 ) – 19 CRH Form 10-K 95 Non-U.S. Plans in $ millions Beginning balance on 1/1/2022 Actual return on plan assets, relating to assets still held at reporting date Purchases, sales and settlements Change due to exchange rate changes Ending balance on 12/31/2022 Asset Class Real estate 17 ( 2 ) – ( 2 ) 13 Assets held by insurance company 152 ( 31 ) – ( 8 ) 113 Other 5 2 – ( 1 ) 6 Total 174 ( 31 ) – ( 11 ) 132 The following is a description of the methods and assumptions used to estimate the fair value of the pension and other postretirement plans’ assets: Cash and cash equivalents: Cash and all highly liquid securities with original maturities of three months or less are classified as Cash and cash equivalents, primarily consisting of cash deposits in interest bearing accounts, time deposits and money market funds. These assets are classified as Level 1. Equity instruments: Individual securities that are valued at the closing price or last trade reported on the major market on which they are traded are classed as Level 1. Commingled funds that are publicly traded are based upon market quotes and are classed as Level 1. The fair-value of non-publicly traded funds are determined using the Net Asset Value (NAV) provided by the administrator and are classified as Level 2. Debt instruments: The fair value is determined using market prices (Level 1) or prices derived from observable inputs (Level 2). Level 2 investments may also include commingled funds that have a readily determinable fair value based on observable prices of the underlying securities. Real estate: Investments in real estate funds that are publicly traded are based upon market quotes and are classed as Level 1. Direct investments in real estate are classed as Level 2 and determined using the NAV provided by the administrator. Assets held by insurance company: The fair value is based on negotiated value and the underlying investments held in separate account portfolios, as well as the consideration of the creditworthiness of the issuer. The underlying investments are primarily government, asset-backed and fixed income securities. Assets held by insurance company are generally classified as Level 2 or Level 3 depending on the structure of the contract/market pricing information. The assumed healthcare cost trend rates at December 31 were: 2023 2022 2021 Healthcare cost trend rate assumed for next year 6.85 % 1.76 % 5.91 % Rate to which the cost trend rate gradually declines 3.70 % 3.70 % 3.60 % Year the rate reaches the ultimate rate 2090 2090 2074 The following table presents the expected future benefit payments to be made over the next 10 years: Pension plans OPEB in $ millions U.S. Non-U.S. 2024 36 100 6 2025 37 104 6 2026 37 107 6 2027 37 111 6 2028 36 114 6 2029-2033 176 598 34 The Company expects that it will contribute $ 2 million to the U.S. pension plans, $ 37 million to the non-U.S. pension plans and $ 6 million to the OPEB plans, including minimum funding payments, in 2024. CRH Form 10-K 96 22. Variable interest entities The Company’s operations in the Philippines are conducted through a VIE, wherein the Company holds 40 % of the equity share capital and a 55 % share of earnings and distributions. The remaining noncontrolling interest of 60 % equity share capital and 45 % share of earnings and distributions is held by an unrelated party. The Company’s voting rights are not proportional to its share of earnings and distributions, and substantially all of the activities of the Philippines business are conducted on behalf of the Company and controlled by the Company through contractual relationships. Therefore, the Philippines business meets the definition of a VIE for which the Company is the primary beneficiary and, therefore, is consolidated. Further, the Company has provided subordinated debt to the intermediate parent of the Philippines business which exposes the Company to the profits and losses of the Philippines business. The debt is repayable only in the event where the shareholder agreement of the intermediate parent of the Philippines business is terminated or where the Company transfers its shares in the intermediate parent to an unrelated entity (i.e., the debt exposure of the Company becomes in substance a residual interest in the intermediate parent). The carrying amounts of assets and liabilities of the consolidated VIE, reported within the Consolidated Balance Sheets before intragroup eliminations with other CRH plc companies at December 31 were: in $ millions 2023 2022 Assets Current assets: Cash and cash equivalents 19 34 Accounts receivable, net 31 34 Inventories 99 149 Other current assets 51 48 Total current assets 200 265 Property, plant and equipment, net 923 954 Goodwill 200 495 Operating lease right-of-use assets, net 5 6 Other noncurrent assets 11 7 Total assets 1,339 1,727 Liabilities Current liabilities: Accounts payable 92 118 Accrued expenses 36 48 Current portion of long-term debt 98 72 Operating lease liabilities 1 1 Other current liabilities 25 28 Total current liabilities 252 267 Long-term debt 297 347 Deferred income tax liabilities 106 108 Noncurrent operating lease liabilities 5 5 Other noncurrent liabilities 17 15 Total liabilities 677 742 The operating results of the consolidated VIE, reported within the Consolidated Statements of Income and Consolidated Statements of Cash Flows before intragroup eliminations with other CRH plc companies for the years ended December 31 were: in $ millions 2023 2022 2021 Total revenues 446 544 616 Total cost of revenues ( 416 ) ( 479 ) ( 487 ) Gross profit 30 65 129 Net (loss) income ( 325 ) ( 24 ) 61 Net cash provided by operating activities 24 12 75 CRH Form 10-K 97 23. Redeemable noncontrolling interests The redeemable noncontrolling interests comprises the noncontrolling interests in two of the Company’s subsidiaries within the Americas Materials Solutions segment, that are currently redeemable. The Company has the ability to exercise the call option for the noncontrolling interests on or after December 31, 2031. In addition to the call options, the noncontrolling interest holder has the right to sell the noncontrolling interests to the Company, which are currently exercisable. These put and call options are redeemable based on multiples of EBITDA. The noncontrolling interests are considered redeemable noncontrolling equity interests, as their redemption is not solely within the Company’s control. The noncontrolling interests were recorded at their respective fair values as of the acquisition dates and are adjusted to their expected redemption values, with an offsetting entry to retained earnings, as of the reporting date as if that date was the redemption date, if those amounts exceed their respective carrying values. During the twelve months ended December 31, 2023, the Company increased the carrying amount of the redeemable noncontrolling interests to reflect the estimated redemption values as of the balance sheet date based on the formulaic redemption values, with an offsetting entry to retained earnings. The rollforward of Redeemable noncontrolling interests at December 31 was: in $ millions Balance at December 31, 2020 322 Net income attributable to redeemable noncontrolling interests 22 Adjustment to the redemption value 18 Dividends paid ( 26 ) Balance at December 31, 2021 336 Net income attributable to redeemable noncontrolling interests 27 Adjustment to the redemption value ( 40 ) Dividends paid ( 15 ) Balance at December 31, 2022 308 Net income attributable to redeemable noncontrolling interests 28 Adjustment to the redemption value 24 Dividends paid ( 27 ) Balance at December 31, 2023 333 CRH Form 10-K 98 24. Commitments and contingencies Guarantees The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: $ 11.3 billion and $ 9.3 billion in respect of loans and borrowings, bank advances and derivative obligations at December 31, 2023 and 2022 respectively, and $ 0.4 billion and $ 0.4 billion at December 31, 2023 and 2022, respectively, in respect of letters of credit due within one year . Contractual commitments Contractual commitments at December 31, 2023 were: in $ millions Unconditional purchase obligations 2024 1,216 Thereafter 887 Total contractual commitments 2,103 Legal Proceedings The Company is not involved in any proceedings that it believes could reasonably be expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity. 25. Subsequent events The Company has evaluated subsequent events occurring through to the date the Consolidated Financial Statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the Consolidated Financial Statements except as noted below or disclosed in the notes elsewhere. Dividends It is proposed to pay an interim dividend for Q1 2024 of $ 0.35 per share on April 17, 2024 to shareholders registered at the close of business on March 15, 2024. CRH Form 10-K 99 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure None .