CRH PUBLIC LTD CO 10-Q

Item 1. Financial Statements Condensed Consolidated Statements of Income (Unaudited) (in $ millions, except share and per share data) Three months ended Six months ended June 30 June 30 2024 2023 2024 2023 Product revenues 7,308 7,431 12,676 12,769 Service revenues 2,346 2,278 3,511 3,367 Total revenues 9,654 9,709 16,187 16,136 Cost of product revenues ( 3,759 ) ( 3,932 ) ( 7,336 ) ( 7,676 ) Cost of service revenues ( 2,220 ) ( 2,147 ) ( 3,369 ) ( 3,211 ) Total cost of revenues ( 5,979 ) ( 6,079 ) ( 10,705 ) ( 10,887 ) Gross profit 3,675 3,630 5,482 5,249 Selling, general and administrative expenses ( 1,948 ) ( 2,035 ) ( 3,735 ) ( 3,657 ) Gain on disposal of long-lived assets 102 18 110 23 Operating income 1,829 1,613 1,857 1,615 Interest income 36 36 79 76 Interest expense ( 155 ) ( 73 ) ( 288 ) ( 154 ) Other nonoperating income, net 23 2 184 2 Income from operations before income tax expense and income from equity method investments 1,733 1,578 1,832 1,539 Income tax expense ( 430 ) ( 379 ) ( 411 ) ( 365 ) Income from equity method investments 6 13 2 7 Net income 1,309 1,212 1,423 1,181 Net (income) attributable to redeemable noncontrolling interests ( 10 ) ( 10 ) ( 12 ) ( 12 ) Net (income) loss attributable to noncontrolling interests ( 2 ) ( 3 ) 2 2 Net income attributable to CRH plc 1,297 1,199 1,413 1,171 Earnings per share attributable to CRH plc Basic $ 1.89 $ 1.63 $ 2.05 $ 1.57 Diluted $ 1.88 $ 1.62 $ 2.03 $ 1.56 Weighted average common shares outstanding Basic 685.5 734.7 686.6 738.8 Diluted 688.8 738.2 691.1 743.4 The accompanying notes form an integral part of the Condensed Consolidated Financial Statements. CRH Form 10-Q 2 Condensed Consolidated Statements of Comprehensive Income (Unaudited) (in $ millions) Three months ended Six months ended June 30 June 30 2024 2023 2024 2023 Net income 1,309 1,212 1,423 1,181 Other comprehensive (loss) income, net of tax: Currency translation adjustment ( 49 ) 49 ( 197 ) 147 Net change in fair value of effective portion of cash flow hedges, net of tax of $( 4 ) million and $( 3 ) million for the three months ended June 30, 2024 and June 30, 2023, respectively; and $ 2 million and $( 3 ) million for the six months ended June 30, 2024 and June 30, 2023, respectively 19 ( 7 ) ( 18 ) 24 Actuarial gains (losses) and prior service credits (costs) for pension and other postretirement plans, net of tax of $ nil million and $ nil million for the three months ended June 30, 2024 and June 30, 2023, respectively; and $ 1 million and $ nil million for the six months ended June 30, 2024 and June 30, 2023, respectively 2 - ( 1 ) ( 3 ) Other comprehensive (loss) income ( 28 ) 42 ( 216 ) 168 Comprehensive income 1,281 1,254 1,207 1,349 Comprehensive (income) attributable to redeemable noncontrolling interests ( 10 ) ( 10 ) ( 12 ) ( 12 ) Comprehensive loss (income) attributable to noncontrolling interests 10 3 21 ( 4 ) Comprehensive income attributable to CRH plc 1,281 1,247 1,216 1,333 The accompanying notes form an integral part of the Condensed Consolidated Financial Statements. CRH Form 10-Q 3 Condensed Consolidated Balance Sheets (Unaudited) (in $ millions, except share data) June 30 December 31 June 30 2024 2023 2023 Assets Current assets: Cash and cash equivalents 3,066 6,341 4,275 Restricted cash 869 - - Accounts receivable, net 5,893 4,507 6,119 Inventories 4,514 4,291 4,276 Assets held for sale 67 1,268 - Other current assets 704 478 404 Total current assets 15,113 16,885 15,074 Property, plant and equipment, net 19,235 17,841 18,155 Equity method investments 484 620 672 Goodwill 10,251 9,158 9,338 Intangible assets, net 1,086 1,041 1,061 Operating lease right-of-use assets, net 1,279 1,292 1,187 Other noncurrent assets 657 632 655 Total assets 48,105 47,469 46,142 Liabilities, redeemable noncontrolling interests and shareholders’ equity Current liabilities: Accounts payable 3,363 3,149 3,553 Accrued expenses 2,272 2,296 2,335 Current portion of long-term debt 3,218 1,866 2,185 Operating lease liabilities 259 255 240 Liabilities held for sale 14 375 - Other current liabilities 1,422 2,072 1,358 Total current liabilities 10,548 10,013 9,671 Long-term debt 9,900 9,776 7,563 Deferred income tax liabilities 2,914 2,738 3,010 Noncurrent operating lease liabilities 1,114 1,125 1,016 Other noncurrent liabilities 2,178 2,196 2,173 Total liabilities 26,654 25,848 23,433 Commitments and contingencies (Note 18) Redeemable noncontrolling interests 335 333 313 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 June 30, 2024, December 31, 2023, and June 30, 2023 1 1 1 Common stock, € 0.32 par value, 1,250,000,000 shares authorized; 725,113,896 , 734,519,598 and 752,140,338 issued and outstanding, as of June 30, 2024, December 31, 2023, and June 30, 2023 respectively 292 296 302 Treasury stock, at cost ( 41,540,247 , 42,419,281 and 24,158,408 shares as of June 30, 2024, December 31, 2023 and June 30, 2023 respectively) ( 2,143 ) ( 2,199 ) ( 1,140 ) Additional paid-in capital 359 454 391 Accumulated other comprehensive loss ( 813 ) ( 616 ) ( 625 ) Retained earnings 23,030 22,918 22,892 Total shareholders’ equity attributable to CRH plc shareholders 20,726 20,854 21,821 Noncontrolling interests 390 434 575 Total equity 21,116 21,288 22,396 Total liabilities, redeemable noncontrolling interests and equity 48,105 47,469 46,142 The accompanying notes form an integral part of the Condensed Consolidated Financial Statements. CRH Form 10-Q 4 Condensed Consolidated Statements of Cash Flows (Unaudited) (in $ millions) Six months ended June 30 2024 2023 Cash Flows from Operating Activities: Net income 1,423 1,181 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 821 785 Share-based compensation 63 60 Gains on disposals from businesses and long-lived assets, net ( 248 ) ( 23 ) Deferred tax expense 197 95 Income from equity method investments ( 2 ) ( 7 ) Pension and other postretirement benefits net periodic benefit cost 18 14 Non-cash operating lease costs 151 138 Other items, net ( 16 ) 35 Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: Accounts receivable, net ( 1,371 ) ( 1,758 ) Inventories ( 175 ) ( 22 ) Accounts payable 232 558 Operating lease liabilities ( 151 ) ( 137 ) Other assets ( 107 ) ( 2 ) Other liabilities ( 39 ) 69 Pension and other postretirement benefits contributions ( 23 ) ( 23 ) Net cash provided by operating activities 773 963 Cash Flows from Investing Activities: Purchases of property, plant and equipment ( 1,130 ) ( 771 ) Acquisitions, net of cash acquired ( 2,522 ) ( 198 ) Proceeds from divestitures and disposals of long-lived assets 1,096 42 Dividends received from equity method investments 15 12 Settlements of derivatives ( 3 ) 7 Deferred divestiture consideration received 55 - Other investing activities, net ( 128 ) ( 62 ) Net cash used in investing activities ( 2,617 ) ( 970 ) CRH Form 10-Q 5 Condensed Consolidated Statements of Cash Flows (Unaudited) (in $ millions) Six months ended June 30 2024 2023 Cash Flows from Financing Activities: Proceeds from debt issuances 3,370 855 Payments on debt ( 1,691 ) ( 849 ) Settlements of derivatives ( 3 ) 4 Payments of finance lease obligations ( 21 ) ( 12 ) Deferred and contingent acquisition consideration paid ( 10 ) ( 4 ) Dividends paid ( 1,231 ) ( 761 ) Distributions to noncontrolling and redeemable noncontrolling interests ( 22 ) ( 23 ) Repurchases of common stock ( 907 ) ( 959 ) Proceeds from exercise of stock options - 3 Net cash used in financing activities ( 515 ) ( 1,746 ) Effect of exchange rate changes on cash and cash equivalents, including restricted cash ( 85 ) 92 Decrease in cash and cash equivalents, including restricted cash ( 2,444 ) ( 1,661 ) Cash and cash equivalents and restricted cash at the beginning of period 6,390 5,936 Cash and cash equivalents and restricted cash at the end of period 3,946 4,275 Supplemental cash flow information: Cash paid for interest (including finance leases) 216 201 Cash paid for income taxes 304 277 Reconciliation of cash and cash equivalents and restricted cash Cash and cash equivalents presented in the Condensed Consolidated Balance Sheets 3,066 4,275 Restricted cash presented in the Condensed Consolidated Balance Sheets 869 - Cash and cash equivalents included in Assets held for sale 11 - Total cash and cash equivalents and restricted cash presented in the Condensed Consolidated Statements of Cash Flows 3,946 4,275 The accompanying notes form an integral part of the Condensed Consolidated Financial Statements. CRH Form 10-Q 6 Condensed Consolidated Statements of Changes in Equity (Unaudited) (in $ millions, except share and per share data) 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 March 31, 2024 0.9 $ 1 729.5 $ 294 ( 41.9 ) ($ 2,166 ) $ 337 ($ 797 ) $ 22,346 $ 20,015 $ 401 $ 20,416 Net income - - - - - - - - 1,297 1,297 2 1,299 Other comprehensive loss - - - - - - - ( 16 ) - ( 16 ) ( 12 ) ( 28 ) Share-based compensation - - - - - - 33 - - 33 - 33 Repurchases and retirement of common stock - - ( 4.4 ) ( 2 ) - - - - ( 346 ) ( 348 ) - ( 348 ) Shares issued under employee share plans - - - - 0.4 23 ( 11 ) - ( 24 ) ( 12 ) - ( 12 ) Dividends declared on common stock - - - - - - - - ( 240 ) ( 240 ) - ( 240 ) Distributions to noncontrolling interests - - - - - - - - - - ( 1 ) ( 1 ) Adjustment of redeemable noncontrolling interests to redemption value - - - - - - - - ( 3 ) ( 3 ) - ( 3 ) Balance at June 30, 2024 0.9 $ 1 725.1 $ 292 ( 41.5 ) ($ 2,143 ) $ 359 ($ 813 ) $ 23,030 $ 20,726 $ 390 $ 21,116 For the three months ended June 30, 2024, dividends declared on common stock were $ 0.35 per common share. 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, 2023 0.9 $ 1 734.5 $ 296 ( 42.4 ) ($ 2,199 ) $ 454 ($ 616 ) $ 22,918 $ 20,854 $ 434 $ 21,288 Net income - - - - - - - - 1,413 1,413 ( 2 ) 1,411 Other comprehensive loss - - - - - - - ( 197 ) - ( 197 ) ( 19 ) ( 216 ) Share-based compensation - - - - - - 63 - - 63 - 63 Repurchases of common stock - - - - ( 2.6 ) ( 179 ) - - - ( 179 ) - ( 179 ) Repurchases and retirement of common stock - - ( 9.4 ) ( 4 ) - - - - ( 724 ) ( 728 ) - ( 728 ) Shares issued under employee share plans - - - - 3.5 235 ( 158 ) - ( 89 ) ( 12 ) - ( 12 ) Dividends declared on common stock - - - - - - - - ( 481 ) ( 481 ) - ( 481 ) Distributions to noncontrolling interests - - - - - - - - - - ( 5 ) ( 5 ) Divestiture of noncontrolling interests - - - - - - - - - - ( 18 ) ( 18 ) Adjustment of redeemable noncontrolling interests to redemption value - - - - - - - - ( 7 ) ( 7 ) - ( 7 ) Balance at June 30, 2024 0.9 $ 1 725.1 $ 292 ( 41.5 ) ($ 2,143 ) $ 359 ($ 813 ) $ 23,030 $ 20,726 $ 390 $ 21,116 For the six months ended June 30, 2024, dividends declared on common stock were $ 0.70 per common share. CRH Form 10-Q 7 Condensed Consolidated Statements of Changes in Equity (Unaudited) (in $ millions, except share and per share data) 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 March 31, 2023 0.9 $ 1 752.1 $ 302 ( 11.6 ) ($ 487 ) $ 420 ($ 673 ) $ 21,692 $ 21,255 $ 582 $ 21,837 Net income - - - - - - - - 1,199 1,199 3 1,202 Other comprehensive income - - - - - - - 48 - 48 ( 6 ) 42 Share-based compensation - - - - - - 30 - - 30 - 30 Repurchases of common stock - - - - ( 14.3 ) ( 713 ) - - - ( 713 ) - ( 713 ) Shares issued under employee share plans - - - - 1.8 60 ( 59 ) - - 1 - 1 Dividends declared on common stock - - - - - - - - 3 3 - 3 Distributions to noncontrolling interests - - - - - - - - - - ( 4 ) ( 4 ) Adjustment of redeemable noncontrolling interests to redemption value - - - - - - - - ( 2 ) ( 2 ) - ( 2 ) Balance at June 30, 2023 0.9 $ 1 752.1 $ 302 ( 24.1 ) ($ 1,140 ) $ 391 ($ 625 ) $ 22,892 $ 21,821 $ 575 $ 22,396 For the three months ended June 30, 2023, dividends declared on common stock were $ nil per common share. 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 - - - - - - - - 1,171 1,171 ( 2 ) 1,169 Other comprehensive income - - - - - - - 162 - 162 6 168 Share-based compensation - - - - - - 60 - - 60 - 60 Repurchases of common stock - - - - ( 19.9 ) ( 959 ) - - - ( 959 ) - ( 959 ) Shares issued under employee share plans - - - - 3.5 116 ( 112 ) - ( 1 ) 3 - 3 Dividends declared on common stock - - - - - - - - ( 761 ) ( 761 ) - ( 761 ) Distributions to noncontrolling interests - - - - - - - - - - ( 4 ) ( 4 ) Adjustment of redeemable noncontrolling interests to redemption value - - - - - - - - ( 12 ) ( 12 ) - ( 12 ) Balance at June 30, 2023 0.9 $ 1 752.1 $ 302 ( 24.1 ) ($ 1,140 ) $ 391 ($ 625 ) $ 22,892 $ 21,821 $ 575 $ 22,396 For the six months ended June 30, 2023, dividends declared on common stock were $ 1.03 per common share. The accompanying notes form an integral part of the Condensed Consolidated Financial Statements. CRH Form 10-Q 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 1. Summary of significant accounting policies 1.1. Description of business CRH plc (the Company) is a multinational company that operates in the building materials industry, providing essential products and services for construction projects primarily in North America and Europe. The Company is one of the largest suppliers of building materials globally. The Company is a major producer of aggregates, cement, readymixed concrete, asphalt, paving and construction services, and value-added building products. The Company provides solutions to a wide range of customers, including contractors, builders, engineers, infrastructure developers, and the residential market. 1.2. Basis of presentation and use of estimates The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and in Article 10 of Regulation S-X. The Company has continued to follow the accounting policies set forth in the audited Consolidated Financial Statements and related notes thereto included in the Company’s 2023 Form 10-K. In the opinion of our management, these statements reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of our results of operations and financial condition for the periods and at the dates presented. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The Condensed Consolidated Balance Sheet at December 31, 2023 has been derived from the audited Consolidated Financial Statements at that date but does not include all of the information and notes required by U.S. GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s 2023 Form 10-K. The preparation of the Company's Condensed Consolidated Financial Statements 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 period in which the change in estimate occurs. 1.3. Restricted cash Restricted cash consists of amounts held in escrow related to transactions expected to close in a future period, including amounts payable for the acquisition of Adbri Ltd. (Adbri) as referenced in Note 4, as well as amounts designated for exchange of assets under Section 1031 of the U.S. Internal Revenue Code. 1.4. New accounting standards Refer to Note 1.25 in the 2023 Form 10-K for impacts of new accounting standards. There were no material impacts from the adoption of new accounting standards for the six months ended June 30, 2024. CRH Form 10-Q 9 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. 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. Three months ended June 30, 2024 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 1,312 - 1,207 - 2,519 Road Solutions (i) 3,094 - 1,197 - 4,291 Building & Infrastructure Solutions (ii) - 680 - 528 1,208 Outdoor Living Solutions - 1,436 - 200 1,636 Total revenues 4,406 2,116 2,404 728 9,654 Three months ended June 30, 2023 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 1,255 - 1,381 - 2,636 Road Solutions (i) 2,909 - 1,233 - 4,142 Building & Infrastructure Solutions (ii) - 679 - 596 1,275 Outdoor Living Solutions - 1,469 - 187 1,656 Total revenues 4,164 2,148 2,614 783 9,709 Six months ended June 30, 2024 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 2,215 - 2,197 - 4,412 Road Solutions (i) 4,393 - 2,220 - 6,613 Building & Infrastructure Solutions (ii) - 1,228 - 1,021 2,249 Outdoor Living Solutions - 2,581 - 332 2,913 Total revenues 6,608 3,809 4,417 1,353 16,187 Six months ended June 30, 2023 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 2,062 - 2,478 - 4,540 Road Solutions (i) 3,997 - 2,314 - 6,311 Building & Infrastructure Solutions (ii) - 1,248 - 1,159 2,407 Outdoor Living Solutions - 2,561 - 317 2,878 Total revenues 6,059 3,809 4,792 1,476 16,136 CRH Form 10-Q 10 (i) Revenue from contracts with customers in the Road Solutions principal activities and products category that is recognized over time was: Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Americas Materials Solutions 1,736 1,606 2,332 2,101 Europe Materials Solutions 453 502 867 931 Total revenue from contracts with customers 2,189 2,108 3,199 3,032 (ii) Revenue from contracts with customers in the Building & Infrastructure Solutions principal activities and products category that is recognized over time was: Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Americas Building Solutions 26 18 49 34 Europe Building Solutions 131 152 263 301 Total revenue from contracts with customers 157 170 312 335 Contract assets were $ 887 million, $ 716 million and $ 906 million and contract liabilities were $ 448 million, $ 439 million and $ 329 million, at June 30, 2024, December 31, 2023 and June 30, 2023, respectively. The Company recognized revenue of $ 339 million and $ 270 million for the six months ended June 30, 2024, and June 30, 2023, respectively, which was previously included in the contract liability balance at December 31, 2023 and December 31, 2022, respectively. Contract assets include unbilled revenue and retentions held by customers in respect of construction contracts at June 30, 2024, December 31, 2023 and June 30, 2023 amounting to $ 664 million and $ 223 million, $ 471 million and $ 245 million, and $ 723 million and $ 183 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 June 30, 2024, the Company had $ 4,032 million of transaction price allocated to remaining performance obligations. The majority of open contracts at June 30, 2024 are expected to close and revenue to be recognized within 12 months of the balance sheet date. 3. Assets held for sale and divestitures 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, closed on January 1, 2024 and the second phase comprising the operations in the United Kingdom, closed on March 27, 2024. The divestitures resulted in a pretax gain of $ 115 million which is included in Other nonoperating income, net. The results of the divested operations and the gain on divestiture are reported in the Europe Materials Solutions segment. The third phase comprising the operations in Poland, is expected to close in the second half of 2024. The Lime operations in Poland comprise part of the Company’s Europe Materials Solutions segment and the relevant assets, $ 67 million, and liabilities, $ 14 million, have accordingly been reclassified as assets and liabilities held for sale. The disposal of certain cement, aggregates and readymixed concrete operations in Quebec, Canada, previously classified as held for sale, completed during the second quarter of 2024. CRH Form 10-Q 11 4. Acquisitions The Company strategically acquires companies in order to increase its footprint and offer products and services that enhance 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. On February 9, 2024, the Company acquired a portfolio of cement and readymixed concrete assets and operations in Texas, United States (the 'Hunter' acquisition) for a total consideration of $ 2,106 million. The Hunter acquisition is reported in the Americas Materials Solutions segment. During the six months ended June 30, 2024, the Company completed the acquisition of 16 companies. The total cash consideration for these acquisitions net of cash acquired, was $ 2,522 million. The estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the acquisition dates. The Company expects to finalize the valuation and complete the purchase price allocations as soon as practical but no later than one year from the acquisition dates. The provisional amounts for assets acquired, liabilities assumed, and consideration related to the acquisitions at June 30, 2024 were: in $ millions Hunter Other acquisitions (i) Total Identifiable assets acquired and liabilities assumed Cash and cash equivalents - 2 2 Accounts receivable, net - 12 12 Inventories 70 9 79 Other current assets 2 10 12 Property, plant and equipment, net 1,070 229 1,299 Intangible assets, net 2 43 45 Operating lease right-of-use assets, net 12 34 46 Accounts payable - 7 7 Accrued expenses 6 3 9 Operating lease liabilities 12 34 46 Long-term debt - ( 2 ) ( 2 ) Deferred income tax liabilities - 15 15 Other liabilities 7 16 23 Total identifiable net assets at fair value 1,131 266 1,397 Goodwill 975 196 1,171 Total consideration 2,106 462 2,568 Consideration satisfied by: Cash payments 2,106 418 2,524 Asset exchange - 41 41 Deferred consideration (stated at net present cost) - 2 2 Contingent consideration - 1 1 Total consideration 2,106 462 2,568 Acquisitions of businesses, net of cash acquired Cash consideration 2,106 418 2,524 Less: cash and cash equivalents acquired - ( 2 ) ( 2 ) Total outflow in the Condensed Consolidated Statements of Cash Flows 2,106 416 2,522 (i) Other acquisitions are aggregated on the basis of individual immateriality. As a result of the acquisitions completed through June 30, 2024, the Company recognized $ 45 million of amortizable intangible assets and $ 1,171 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 the six months ended June 30, 2024, $ 1,125 million is expected to be deductible for tax purposes. The amortizable intangible assets will be amortized against earnings over a weighted average of six years . On February 26, 2024, the Company announced that it had entered into a binding agreement to acquire a majority stake in Adbri (the ‘Adbri transaction’), a materials business in Australia. On July 1, 2024, the Adbri transaction was completed with the acquisition of approximately 57 % of the issued share capital for $ 0.8 billion. The assets acquired complement the Company’s core competencies in cement, concrete and aggregates while creating additional opportunities for growth and development for the Company’s existing Australian business. Due to the timing of the Adbri transaction, the preliminary purchase price accounting remains ongoing as the Company continues to collect and assess information as of the transaction date. CRH Form 10-Q 12 Acquisition-related costs Acquisition-related costs have been included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Income. These costs include legal and consulting expenses incurred in connection with completed acquisitions. The Company incurred the following acquisition-related costs: Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Hunter 2 - 22 - Other acquisitions 2 - 2 2 Total acquisition-related costs 4 - 24 2 The financial information regarding the acquisitions included in the Company’s Condensed Consolidated Statements of Income from the date of acquisition through June 30 were: in $ millions 2024 2023 Revenue 179 46 Net loss attributable to CRH plc (i) ( 17 ) ( 3 ) (i) Net loss amount excludes acquisition-related costs that arose during the six months ended June 30, 2024, and June 30, 2023. Pro forma results of operations for the acquisitions have not been presented because they are not material to the Condensed Consolidated Financial Statements. 5. Accounts receivable, net Accounts receivable, net, were: June 30 December 31 June 30 in $ millions 2024 2023 2023 Trade receivables 4,788 3,574 4,957 Construction contract assets 887 716 906 Total accounts receivable 5,675 4,290 5,863 Less: allowance for credit losses ( 142 ) ( 149 ) ( 139 ) Other current receivables 360 366 395 Total accounts receivable, net 5,893 4,507 6,119 Of the total Accounts receivable, net balances $ 34 million, $ 27 million and $ 39 million at June 30, 2024, December 31, 2023 and June 30, 2023, respectively, were due from equity method investments. The changes in the allowance for credit losses were as follows: in $ millions 2024 2023 At January 1 149 125 Charge-offs ( 5 ) ( 8 ) Provision for credit losses - 19 Foreign currency translation and other ( 2 ) 3 At June 30 142 139 6. Inventories Inventories were: June 30 December 31 June 30 in $ millions 2024 2023 2023 Raw materials 2,158 1,865 2,089 Work-in-process 200 186 192 Finished goods 2,156 2,240 1,995 Total inventories 4,514 4,291 4,276 CRH Form 10-Q 13 7. Goodwill The changes in the carrying amount of goodwill were: in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Carrying value, December 31, 2023 4,417 2,752 1,362 627 9,158 Acquisitions 1,120 57 ( 3 ) ( 3 ) 1,171 Foreign currency translation adjustment ( 17 ) ( 6 ) ( 41 ) ( 16 ) ( 80 ) Divestitures - - ( 197 ) - ( 197 ) Reclassified from held for sale - - 199 - 199 Carrying value, June 30, 2024 5,520 2,803 1,320 608 10,251 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total 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 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Carrying value, December 31, 2022 4,407 2,517 1,763 512 9,199 Acquisitions 18 ( 8 ) - 68 78 Foreign currency translation adjustment 7 3 43 8 61 Carrying value, June 30, 2023 4,432 2,512 1,806 588 9,338 There were no charges for goodwill impairment in the six months ended June 30, 2024 and June 30, 2023. CRH Form 10-Q 14 8. Additional financial information Other current assets were: June 30 December 31 June 30 in $ millions 2024 2023 2023 Prepayments 343 285 241 Other 361 193 163 Total other current assets 704 478 404 Accrued expenses were: June 30 December 31 June 30 in $ millions 2024 2023 2023 Accrued payroll and employee benefits 966 1,066 920 Other accruals 1,306 1,230 1,415 Total accrued expenses 2,272 2,296 2,335 Other current liabilities were: June 30 December 31 June 30 in $ millions 2024 2023 2023 Dividends payable - 750 - Construction contract liabilities 448 439 329 Insurance liability 162 171 176 Income tax payable 26 129 177 Other 786 583 676 Total other current liabilities 1,422 2,072 1,358 Other noncurrent liabilities were: June 30 December 31 June 30 in $ millions 2024 2023 2023 Income tax payable 712 712 632 Asset retirement obligations 290 310 352 Pension liability 250 254 278 Insurance liability 259 260 257 Other 667 660 654 Total other noncurrent liabilities 2,178 2,196 2,173 CRH Form 10-Q 15 9. Debt Long-term debt was: June 30 December 31 June 30 in $ millions Effective interest rate 2024 2023 2023 Long-term debt (U.S. Dollar denominated unless otherwise noted) 0.875 % euro Senior Notes due 2023 0.92 % - - 543 1.875 % euro Senior Notes due 2024 2.02 % - 663 651 3.875 % Senior Notes due 2025 3.93 % 1,250 1,250 1,250 1.250 % euro Senior Notes due 2026 1.25 % 802 829 814 3.400 % Senior Notes due 2027 3.49 % 600 600 600 4.000 % euro Senior Notes due 2027 4.13 % 535 553 - 3.950 % Senior Notes due 2028 4.07 % 900 900 900 1.375 % euro Senior Notes due 2028 1.42 % 642 663 651 5.200 % Senior Notes due 2029 5.30 % 750 - - 4.125 % Sterling Senior Notes due 2029 4.22 % 506 509 506 1.625 % euro Senior Notes due 2030 1.72 % 802 829 814 4.000 % euro Senior Notes due 2031 4.10 % 802 829 - 6.400 % Senior Notes due 2033 (i) 6.43 % 213 213 213 5.400 % Senior Notes due 2034 5.52 % 750 - - 4.250 % euro Senior Notes due 2035 4.38 % 802 829 - 5.125 % Senior Notes due 2045 5.25 % 500 500 500 4.400 % Senior Notes due 2047 4.44 % 400 400 400 4.500 % Senior Notes due 2048 4.63 % 600 600 600 PHP interest bearing loan due 2027 6.02 % 386 396 423 U.S. Dollar Commercial Paper 5.67 % 1,260 1,002 200 Euro Commercial Paper 4.01 % 498 - 559 Other 33 37 16 Unamortized discounts and debt issuance costs ( 72 ) ( 67 ) ( 54 ) Total long-term debt (ii) 12,959 11,535 9,586 Less: current portion of long-term debt (iii) ( 3,059 ) ( 1,759 ) ( 2,023 ) Long-term debt 9,900 9,776 7,563 (i) The $ 300 million 6.400 % Senior Notes were issued in September 2003, and at the time of issuance the Senior Notes were partially swapped to floating interest rates. In August 2009 and December 2010, $ 87 million of the issued Senior 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 in the Condensed Consolidated Balance Sheets was $ 28 million, $ 30 million, and $ 31 million at June 30, 2024, December 31, 2023, and June 30, 2023, respectively. (ii) Of the Company’s nominal fixed rate debt at June 30, 2024 and December 31, 2023, $ 1,375 million, was hedged to daily compounded Secured Overnight Financing Rate (SOFR) using interest rate swaps. Of the Company’s nominal fixed rate debt at June 30, 2023, $ 1,375 million was hedged to U.S. Dollar London Interbank Offered Rate (LIBOR) using interest rate swaps. (iii) Excludes borrowings from bank overdrafts of $ 159 million, $ 107 million and $ 162 million, which are recorded within Current portion of long-term debt in the Condensed Consolidated Balance Sheets at June 30, 2024, December 31, 2023, and June 30, 2023, 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 senior unsubordinated indebtedness. With the exception of the 6.400 % Senior Notes due 2033, all other Senior Notes can be redeemed before their respective par call dates, 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 2025, 3.400 % Senior Notes due 2027, 3.95 % Senior Notes due 2028, 5.200 % Senior Notes due 2029, 5.400 % Senior Notes due 2034, 5.125 % Senior Notes due 2045, 4.400 % Senior Notes due 2047, and 4.500 % Senior Notes due 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 2025 and 5.125 % Senior Notes due 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. In May 2024, wholly owned subsidiaries of the Company completed the issuance and sale of $ 750 million 5.200 % Senior Notes due 2029 and $ 750 million 5.400 % Senior Notes due 2034. CRH Form 10-Q 16 Philippines (PHP) Debt: In March 2017, the Company's subsidiary, Republic Cement & Building Materials, Inc., entered into 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 Facility (the 'RCF') with a syndicate of lenders. The RCF offers a senior unsecured revolving credit facility of € 3,500 million over five years , maturing May 11, 2029. The terms of the facility allow for one further plus one year extension option which, if successfully exercised with the agreement of the Lenders, would extend the maturity to May 11, 2030. 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, Euro Interbank Offer Rate (EURIBOR) for euros, Sterling Overnight Index Average (SONIA) for Sterling, and Swiss Average Rate Overnight (SARON) for Swiss Francs, respectively. A commitment fee is payable on a quarterly basis based on a percentage of the applicable margin and calculated on the daily undrawn amount of the facility. The deferred financing costs associated with the RCF were $ 6 million at June 30, 2024. The total potential credit available through this arrangement is € 3,500 million, inclusive of the ability to issue letters of credit. At June 30, 2024, December 31, 2023, and June 30, 2023, 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 June 30, 2024 were $ 3,743 million (€ 3,500 million equivalent). The RCF includes customary terms and conditions for investment-grade borrowers. There are no financial covenants. At June 30, 2024, the Company had a $ 4,000 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 June 30, 2024 are as follows: in $ millions Remainder of 2024 2025 2026 2027 2028 2029 and thereafter Total Long-term debt maturities 1,832 1,224 1,094 1,128 1,508 6,173 12,959 10. 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 of the Company’s Long-term debt were $ 12,959 million, $ 11,535 million, and $ 9,586 million at June 30, 2024, December 31, 2023, and June 30, 2023, respectively. The fair values of the Company’s Long-term debt were $ 12,520 million, $ 11,337 million, and $ 8,990 million at June 30, 2024, December 31, 2023, and June 30, 2023, respectively. 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 Condensed 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 6.35 % and 7.33 %. See Note 17 for the changes in the fair value of redeemable noncontrolling interests. The carrying values of the Company’s Cash and cash equivalents, Restricted cash, 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-Q 17 11. Income taxes The Company’s tax provision for the interim period is calculated using an estimated annual effective tax rate based on the expected full-year results which is applied to ordinary year-to-date income or loss. The tax provision is adjusted for discrete items that occur in the applicable interim period to arrive at the effective income tax rate. The summary of the income tax expense from operations was: Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Total tax expense 430 379 411 365 Effective income tax rate 25 % 24 % 22 % 24 % The increase in the effective tax rate for this quarter in comparison to the three months ended June 30, 2023 is mainly driven by a change in the mix of income earned in jurisdictions with a higher rate of tax. The decrease in the year-to-date effective tax rate compared to the six months ended June 30, 2023 is due to the offset of items arising in the first quarter (being the movement in tax provisions, a tax deduction for share-based compensation and the largely tax-exempt divestiture of phases one and two of the European Lime operations). 12. Earnings per share (EPS) The calculation of basic and diluted earnings per share was as follows: Three months ended Six months ended June 30 June 30 in $ millions, except share and per share data 2024 2023 2024 2023 Numerator Net income 1,309 1,212 1,423 1,181 Net (income) attributable to redeemable noncontrolling interests ( 10 ) ( 10 ) ( 12 ) ( 12 ) Net (income) loss attributable to noncontrolling interests ( 2 ) ( 3 ) 2 2 Adjustment of redeemable noncontrolling interests to redemption value ( 3 ) ( 2 ) ( 7 ) ( 12 ) Net income attributable to CRH plc for EPS - basic and diluted 1,294 1,197 1,406 1,159 Denominator Weighted average common shares outstanding - basic (i) 685.5 734.7 686.6 738.8 Effect of dilutive employee share awards (ii) 3.3 3.5 4.5 4.6 Weighted average common shares outstanding - diluted 688.8 738.2 691.1 743.4 Earnings per share attributable to CRH plc Basic $ 1.89 $ 1.63 $ 2.05 $ 1.57 Diluted $ 1.88 $ 1.62 $ 2.03 $ 1.56 (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 4,904,276 at June 30, 2024 and 5,700,540 at June 30, 2023 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 period presented. CRH Form 10-Q 18 13. Accumulated other comprehensive loss The changes in the balances for each component of Accumulated other comprehensive loss, net of tax, were as follows: in $ millions Currency Translation Cash Flow Hedges Pension and Other Postretirement Plans Total Balance at March 31, 2024 ( 580 ) ( 84 ) ( 133 ) ( 797 ) Other comprehensive (loss) income before reclassifications ( 44 ) 27 - ( 17 ) Amounts reclassified from Accumulated other comprehensive loss ( 5 ) ( 8 ) 2 ( 11 ) Net current-period other comprehensive (loss) income ( 49 ) 19 2 ( 28 ) Other comprehensive loss attributable to noncontrolling interests 12 - - 12 Balance at June 30, 2024 ( 617 ) ( 65 ) ( 131 ) ( 813 ) Balance at December 31, 2023 ( 439 ) ( 47 ) ( 130 ) ( 616 ) Other comprehensive loss before reclassifications ( 158 ) ( 37 ) - ( 195 ) Amounts reclassified from Accumulated other comprehensive loss ( 39 ) 19 ( 1 ) ( 21 ) Net current-period other comprehensive (loss) ( 197 ) ( 18 ) ( 1 ) ( 216 ) Other comprehensive loss attributable to noncontrolling interests 19 - - 19 Balance at June 30, 2024 ( 617 ) ( 65 ) ( 131 ) ( 813 ) Balance at March 31, 2023 ( 660 ) 12 ( 25 ) ( 673 ) Other comprehensive income (loss) before reclassifications 49 ( 10 ) - 39 Amounts reclassified from Accumulated other comprehensive loss - 3 - 3 Net current-period other comprehensive income (loss) 49 ( 7 ) - 42 Other comprehensive loss attributable to noncontrolling interests 6 - - 6 Balance at June 30, 2023 ( 605 ) 5 ( 25 ) ( 625 ) Balance at December 31, 2022 ( 746 ) ( 19 ) ( 22 ) ( 787 ) Other comprehensive income before reclassifications 147 11 - 158 Amounts reclassified from Accumulated other comprehensive loss - 13 ( 3 ) 10 Net current-period other comprehensive income (loss) 147 24 ( 3 ) 168 Other comprehensive (income) attributable to noncontrolling interests ( 6 ) - - ( 6 ) Balance at June 30, 2023 ( 605 ) 5 ( 25 ) ( 625 ) The amounts reclassified from Accumulated other comprehensive loss to income were as follows: Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Cash flow hedges Cost of product revenues ( 9 ) 3 22 17 Income tax expense (benefit) 1 - ( 3 ) ( 4 ) Total ( 8 ) 3 19 13 Pension and other postretirement plans Other nonoperating income, net 2 - ( 2 ) ( 3 ) Income tax expense - - 1 - Total 2 - ( 1 ) ( 3 ) Reclassifications from Accumulated other comprehensive loss to income ( 6 ) 3 18 10 CRH Form 10-Q 19 14. Segment information The Company has the following four reportable 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. This business serves the growing demand across the construction value chain for innovative and value-added products and services. The Company’s reportable segments are the same as the Company’s operating segments and correspond with how the Chief Operating Decision Maker (CODM) regularly reviews financial information to allocate resources and assess performance under the Company’s organizational structure. 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 and unrealized gain/loss on investments, 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 were: Revenues Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Americas Materials Solutions 4,406 4,164 6,608 6,059 Americas Building Solutions 2,116 2,148 3,809 3,809 Europe Materials Solutions 2,404 2,614 4,417 4,792 Europe Building Solutions 728 783 1,353 1,476 Total revenues 9,654 9,709 16,187 16,136 Adjusted EBITDA Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Americas Materials Solutions 1,193 935 1,208 900 Americas Building Solutions 476 474 784 775 Europe Materials Solutions 499 515 589 583 Europe Building Solutions 87 90 119 142 Total Adjusted EBITDA 2,255 2,014 2,700 2,400 CRH Form 10-Q 20 Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Adjusted EBITDA 2,255 2,014 2,700 2,400 Depreciation, depletion and amortization ( 424 ) ( 401 ) ( 821 ) ( 785 ) Interest income 36 36 79 76 Interest expense ( 155 ) ( 73 ) ( 288 ) ( 154 ) Gain on divestitures and unrealized gains on investments (i) 23 - 183 - Pension income excluding current service cost component (i) 1 2 2 2 Other interest, net (i) ( 1 ) - ( 1 ) - Substantial acquisition-related costs ( 2 ) - ( 22 ) - Income from operations before income tax expense and income from equity method investments 1,733 1,578 1,832 1,539 (i) Gain on divestitures and unrealized gains on investments, pension income excluding current service cost component and other interest, net have been included in Other nonoperating income, net in the Condensed Consolidated Statements of Income. Depreciation, depletion and amortization for each of the segments were: Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Americas Materials Solutions 208 195 398 381 Americas Building Solutions 84 73 164 148 Europe Materials Solutions 109 111 212 212 Europe Building Solutions 23 22 47 44 Total depreciation, depletion and amortization 424 401 821 785 15. Pension and other postretirement benefits Components of Net Periodic Benefit Cost The components of net periodic benefit cost (income) recognized in the Condensed Consolidated Statements of Income for the Pension and Other Postretirement Benefit (OPEB) Plans were: Pension and OPEB Plans U.S. Non-U.S. Three months ended Six months ended Three months ended Six months ended June 30 June 30 June 30 June 30 in $ millions 2024 2023 2024 2023 2024 2023 2024 2023 Service cost - - - - 10 8 20 16 Interest cost 6 6 12 12 21 22 42 46 Expected return on assets ( 5 ) ( 5 ) ( 10 ) ( 10 ) ( 22 ) ( 23 ) ( 44 ) ( 46 ) Amortization of: Past service credit - - - - ( 3 ) ( 3 ) ( 6 ) ( 6 ) Actuarial loss 1 1 2 2 1 - 2 - Settlement gain (i) - - - - - - ( 3 ) - Net periodic benefit cost (ii) (iii) 2 2 4 4 7 4 11 10 (i) Settlement gain of $ 3 million relates to pension plans divested as part of the sale of the Company's Lime operations in Europe and is included in gain on divestitures and unrealized gains on investments, within Other nonoperating income, net. (ii) Includes net periodic benefit cost of $ 1 million and $ 1 million related to OPEB plans for the three months ended June 30, 2024 and June 30, 2023, and $ 2 million and $ 2 million for the six months ended June 30, 2024 and June 30, 2023, respectively. (iii) Service cost is included within Cost of revenues and Selling, general and administrative expenses while all other cost components are recorded within Other nonoperating income, net. CRH Form 10-Q 21 16. Variable interest entities The Company’s operations in the Philippines are conducted through a Variable Interest Entity (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. 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 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 Condensed Consolidated Balance Sheets before intragroup eliminations with other CRH plc companies were: June 30 December 31 June 30 in $ millions 2024 2023 2023 Assets Current assets: Cash and cash equivalents 34 19 39 Accounts receivable, net 38 31 32 Inventories 98 99 114 Other current assets 52 51 46 Total current assets 222 200 231 Property, plant and equipment, net 852 923 946 Goodwill 188 200 500 Operating lease right-of-use assets, net 5 5 6 Other noncurrent assets 10 11 10 Total assets 1,277 1,339 1,693 Liabilities Current liabilities: Accounts payable 94 92 88 Accrued expenses 36 36 47 Current portion of long-term debt 82 98 74 Operating lease liabilities 1 1 1 Other current liabilities 25 25 25 Total current liabilities 238 252 235 Long-term debt 303 297 348 Deferred income tax liabilities 95 106 109 Noncurrent operating lease liabilities 4 5 5 Other noncurrent liabilities 18 17 15 Total liabilities 658 677 712 The operating results of the consolidated VIE, reported within the Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Cash Flows before intragroup eliminations with other CRH plc companies were: Three months ended Six months ended June 30 June 30 in $ millions 2024 2023 2024 2023 Total revenues 98 122 194 237 Total cost of revenues ( 89 ) ( 113 ) ( 176 ) ( 227 ) Gross profit 9 9 18 10 Net loss ( 3 ) ( 6 ) ( 12 ) ( 18 ) Net cash (used in) provided by operating activities ( 2 ) 6 CRH Form 10-Q 22 17. Redeemable noncontrolling interests The redeemable noncontrolling interests comprise the noncontrolling interests in two of the Company’s North American subsidiaries, 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 noncontrolling interests have put and call options and both are redeemable based on multiples of EBITDA. The noncontrolling interests are considered redeemable noncontrolling equity interests, classified as temporary or mezzanine equity, 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. The following table summarizes the redeemable noncontrolling interest for the following periods: in $ millions Balance at March 31, 2024 326 Net income attributable to redeemable noncontrolling interests 10 Adjustment to the redemption value 3 Dividends paid ( 4 ) Balance at June 30, 2024 335 Balance at March 31, 2023 307 Net income attributable to redeemable noncontrolling interests 10 Adjustment to the redemption value 2 Dividends paid ( 6 ) Balance at June 30, 2023 313 in $ millions Balance at December 31, 2023 333 Net income attributable to redeemable noncontrolling interests 12 Adjustment to the redemption value 7 Dividends paid ( 17 ) Balance at June 30, 2024 335 Balance at December 31, 2022 308 Net income attributable to redeemable noncontrolling interests 12 Adjustment to the redemption value 12 Dividends paid ( 19 ) Balance at June 30, 2023 313 18. Commitments and contingencies Guarantees The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: $ 12.8 billion, $ 11.3 billion, and $ 9.5 billion in respect of loans and borrowings, bank advances and derivative obligations at June 30, 2024, December 31, 2023 and June 30, 2023, respectively, and $ 0.4 billion, $ 0.4 billion, and $ 0.4 billion at June 30, 2024, December 31, 2023 and June 30, 2023, respectively, in respect of letters of credit due within one year . 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. CRH Form 10-Q 23