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 Nine months ended September 30 September 30 2024 2023 2024 2023 Product revenues 7,482 7,157 20,158 19,926 Service revenues 3,033 2,971 6,544 6,338 Total revenues 10,515 10,128 26,702 26,264 Cost of product revenues ( 3,674 ) ( 3,609 ) ( 11,010 ) ( 11,285 ) Cost of service revenues ( 2,782 ) ( 2,756 ) ( 6,151 ) ( 5,967 ) Total cost of revenues ( 6,456 ) ( 6,365 ) ( 17,161 ) ( 17,252 ) Gross profit 4,059 3,763 9,541 9,012 Selling, general and administrative expenses ( 2,184 ) ( 1,990 ) ( 5,919 ) ( 5,647 ) Gain on disposal of long-lived assets 89 15 199 38 Operating income 1,964 1,788 3,821 3,403 Interest income 33 62 112 138 Interest expense ( 164 ) ( 131 ) ( 452 ) ( 285 ) Other nonoperating income, net 62 1 246 3 Income from operations before income tax expense and income from equity method investments 1,895 1,720 3,727 3,259 Income tax expense ( 531 ) ( 416 ) ( 942 ) ( 781 ) Income from equity method investments 25 14 27 21 Net income 1,389 1,318 2,812 2,499 Net (income) attributable to redeemable noncontrolling interests ( 9 ) ( 9 ) ( 21 ) ( 21 ) Net (income) attributable to noncontrolling interests ( 4 ) ( 3 ) ( 2 ) ( 1 ) Net income attributable to CRH plc 1,376 1,306 2,789 2,477 Earnings per share attributable to CRH plc Basic $ 1.99 $ 1.81 $ 4.03 $ 3.36 Diluted $ 1.97 $ 1.80 $ 4.00 $ 3.34 Weighted average common shares outstanding Basic 681.6 718.2 685.0 731.8 Diluted 685.5 722.1 690.0 736.6 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 Nine months ended September 30 September 30 2024 2023 2024 2023 Net income 1,389 1,318 2,812 2,499 Other comprehensive income (loss), net of tax: Currency translation adjustment 363 ( 130 ) 166 17 Net change in fair value of effective portion of cash flow hedges, net of tax of $ 6 million and $ 2 million for the three months ended September 30, 2024 and September 30, 2023, respectively; and $ 8 million and $( 1 ) million for the nine months ended September 30, 2024 and September 30, 2023, respectively ( 8 ) ( 20 ) ( 26 ) 4 Actuarial losses and prior service costs for pension and other postretirement plans, net of tax of $( 1 ) million and $ nil million for the three months ended September 30, 2024 and September 30, 2023, respectively; and $ nil million and $ nil million for the nine months ended September 30, 2024 and September 30, 2023, respectively ( 7 ) ( 1 ) ( 8 ) ( 4 ) Other comprehensive income (loss) 348 ( 151 ) 132 17 Comprehensive income 1,737 1,167 2,944 2,516 Comprehensive (income) attributable to redeemable noncontrolling interests ( 9 ) ( 9 ) ( 21 ) ( 21 ) Comprehensive (income) loss attributable to noncontrolling interests ( 38 ) 10 ( 17 ) 6 Comprehensive income attributable to CRH plc 1,690 1,168 2,906 2,501 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) September 30 December 31 September 30 2024 2023 2023 Assets Current assets: Cash and cash equivalents 2,978 6,341 5,722 Restricted cash 102 – – Accounts receivable, net 6,422 4,507 5,972 Inventories 4,644 4,291 4,191 Assets held for sale – 1,268 – Other current assets 694 478 430 Total current assets 14,840 16,885 16,315 Property, plant and equipment, net 21,289 17,841 18,103 Equity method investments 929 620 665 Goodwill 10,906 9,158 9,545 Intangible assets, net 1,105 1,041 1,074 Operating lease right-of-use assets, net 1,322 1,292 1,237 Other noncurrent assets 830 632 692 Total assets 51,221 47,469 47,631 Liabilities, redeemable noncontrolling interests and shareholders’ equity Current liabilities: Accounts payable 2,963 3,149 2,954 Accrued expenses 2,513 2,296 2,457 Current portion of long-term debt 3,218 1,866 1,860 Operating lease liabilities 271 255 245 Liabilities held for sale – 375 – Other current liabilities 1,703 2,072 1,675 Total current liabilities 10,668 10,013 9,191 Long-term debt 10,672 9,776 9,535 Deferred income tax liabilities 3,168 2,738 3,050 Noncurrent operating lease liabilities 1,117 1,125 1,065 Other noncurrent liabilities 2,430 2,196 2,142 Total liabilities 28,055 25,848 24,983 Commitments and contingencies (Note 18) Redeemable noncontrolling interests 361 333 320 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 September 30, 2024, December 31, 2023, and September 30, 2023 1 1 1 Common stock, € 0.32 par value, 1,250,000,000 shares authorized; 721,319,880 , 734,519,598 and 750,725,468 issued and outstanding, as of September 30, 2024, December 31, 2023, and September 30, 2023 respectively 291 296 302 Treasury stock, at cost ( 41,493,074 , 42,419,281 and 41,554,960 shares as of September 30, 2024, December 31, 2023 and September 30, 2023 respectively) ( 2,141 ) ( 2,199 ) ( 2,132 ) Additional paid-in capital 392 454 423 Accumulated other comprehensive loss ( 499 ) ( 616 ) ( 763 ) Retained earnings 23,831 22,918 23,936 Total shareholders’ equity attributable to CRH plc shareholders 21,875 20,854 21,767 Noncontrolling interests 930 434 561 Total equity 22,805 21,288 22,328 Total liabilities, redeemable noncontrolling interests and equity 51,221 47,469 47,631 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) Nine months ended September 30 2024 2023 Cash Flows from Operating Activities: Net income 2,812 2,499 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 1,288 1,187 Share-based compensation 96 92 Gains on disposals from businesses and long-lived assets, net ( 389 ) ( 38 ) Deferred tax expense 195 108 Income from equity method investments ( 27 ) ( 21 ) Pension and other postretirement benefits net periodic benefit cost 27 22 Non-cash operating lease costs 188 212 Other items, net ( 17 ) 33 Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: Accounts receivable, net ( 1,527 ) ( 1,643 ) Inventories ( 45 ) 62 Accounts payable ( 276 ) ( 30 ) Operating lease liabilities ( 218 ) ( 204 ) Other assets ( 311 ) ( 5 ) Other liabilities 498 354 Pension and other postretirement benefits contributions ( 35 ) ( 34 ) Net cash provided by operating activities 2,259 2,594 Cash Flows from Investing Activities: Purchases of property, plant and equipment ( 1,635 ) ( 1,175 ) Acquisitions, net of cash acquired ( 3,853 ) ( 561 ) Proceeds from divestitures and disposals of long-lived assets 1,180 64 Dividends received from equity method investments 22 23 Settlements of derivatives ( 21 ) 3 Deferred divestiture consideration received 82 5 Other investing activities, net ( 180 ) ( 88 ) Net cash used in investing activities ( 4,405 ) ( 1,729 ) CRH Form 10-Q 5 Condensed Consolidated Statements of Cash Flows (Unaudited) (in $ millions) Nine months ended September 30 2024 2023 Cash Flows from Financing Activities: Proceeds from debt issuances 3,452 2,687 Payments on debt ( 1,854 ) ( 940 ) Settlements of derivatives 34 5 Payments of finance lease obligations ( 37 ) ( 18 ) Deferred and contingent acquisition consideration paid ( 16 ) ( 8 ) Dividends paid ( 1,469 ) ( 761 ) Distributions to noncontrolling and redeemable noncontrolling interests ( 33 ) ( 35 ) Repurchases of common stock ( 1,224 ) ( 2,031 ) Proceeds from exercise of stock options 3 4 Net cash used in financing activities ( 1,144 ) ( 1,097 ) Effect of exchange rate changes on cash and cash equivalents, including restricted cash ( 20 ) 18 Decrease in cash and cash equivalents, including restricted cash ( 3,310 ) ( 214 ) 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 3,080 5,722 Supplemental cash flow information: Cash paid for interest (including finance leases) 372 244 Cash paid for income taxes 654 620 Reconciliation of cash and cash equivalents and restricted cash Cash and cash equivalents presented in the Condensed Consolidated Balance Sheets 2,978 5,722 Restricted cash presented in the Condensed Consolidated Balance Sheets 102 – Total cash and cash equivalents and restricted cash presented in the Condensed Consolidated Statements of Cash Flows 3,080 5,722 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 June 30, 2024 0.9 $ 1 725.1 $ 292 ( 41.5 ) ($ 2,143 ) $ 359 ($ 813 ) $ 23,030 $ 20,726 $ 390 $ 21,116 Net income – – – – – – – – 1,376 1,376 4 1,380 Other comprehensive income – – – – – – – 314 – 314 34 348 Share-based compensation – – – – – – 33 – – 33 – 33 Repurchases and retirement of common stock – – ( 3.8 ) ( 1 ) – – – – ( 316 ) ( 317 ) – ( 317 ) Shares issued under employee share plans – – – – – 2 – – 2 4 – 4 Dividends declared on common stock – – – – – – – – ( 238 ) ( 238 ) – ( 238 ) Distributions to noncontrolling interests – – – – – – – – – – ( 5 ) ( 5 ) Noncontrolling interests arising on acquisition – – – – – – – – – – 507 507 Adjustment of redeemable noncontrolling interests to redemption value – – – – – – – – ( 23 ) ( 23 ) – ( 23 ) Balance at September 30, 2024 0.9 $ 1 721.3 $ 291 ( 41.5 ) ($ 2,141 ) $ 392 ($ 499 ) $ 23,831 $ 21,875 $ 930 $ 22,805 For the three months ended September 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 – – – – – – – – 2,789 2,789 2 2,791 Other comprehensive income – – – – – – – 117 – 117 15 132 Share-based compensation – – – – – – 96 – – 96 – 96 Repurchases of common stock – – – – ( 2.6 ) ( 179 ) – – – ( 179 ) – ( 179 ) Repurchases and retirement of common stock – – ( 13.2 ) ( 5 ) – – – – ( 1,040 ) ( 1,045 ) – ( 1,045 ) Shares issued under employee share plans – – – – 3.5 237 ( 158 ) – ( 87 ) ( 8 ) – ( 8 ) Dividends declared on common stock – – – – – – – – ( 719 ) ( 719 ) – ( 719 ) Distributions to noncontrolling interests – – – – – – – – – – ( 10 ) ( 10 ) Divestiture of noncontrolling interests – – – – – – – – – – ( 18 ) ( 18 ) Noncontrolling interests arising on acquisition – – – – – – – – – – 507 507 Adjustment of redeemable noncontrolling interests to redemption value – – – – – – – – ( 30 ) ( 30 ) – ( 30 ) Balance at September 30, 2024 0.9 $ 1 721.3 $ 291 ( 41.5 ) ($ 2,141 ) $ 392 ($ 499 ) $ 23,831 $ 21,875 $ 930 $ 22,805 For the nine months ended September 30, 2024, dividends declared on common stock were $ 1.05 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 June 30, 2023 0.9 $ 1 752.1 $ 302 ( 24.2 ) ($ 1,140 ) $ 391 ($ 625 ) $ 22,892 $ 21,821 $ 575 $ 22,396 Net income – – – – – – – – 1,306 1,306 3 1,309 Other comprehensive loss – – – – – – – ( 138 ) – ( 138 ) ( 13 ) ( 151 ) Share-based compensation – – – – – – 32 – – 32 – 32 Repurchases of common stock – – – – ( 17.5 ) ( 993 ) – – – ( 993 ) – ( 993 ) Repurchases and retirement of common stock – – ( 1.4 ) – – – – – ( 79 ) ( 79 ) – ( 79 ) Shares issued under employee share plans – – – – 0.1 1 – – – 1 – 1 Dividends declared on common stock – – – – – – – – ( 177 ) ( 177 ) – ( 177 ) Distributions to noncontrolling interests – – – – – – – – – – ( 4 ) ( 4 ) Adjustment of redeemable noncontrolling interests to redemption value – – – – – – – – ( 6 ) ( 6 ) – ( 6 ) Balance at September 30, 2023 0.9 $ 1 750.7 $ 302 ( 41.6 ) ($ 2,132 ) $ 423 ($ 763 ) $ 23,936 $ 21,767 $ 561 $ 22,328 For the three months ended September 30, 2023, dividends declared on common stock were $ 0.25 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 – – – – – – – – 2,477 2,477 1 2,478 Other comprehensive income – – – – – – – 24 – 24 ( 7 ) 17 Share-based compensation – – – – – – 92 – – 92 – 92 Repurchases of common stock – – – – ( 37.4 ) ( 1,952 ) – – – ( 1,952 ) – ( 1,952 ) Repurchases and retirement of common stock – – ( 1.4 ) – – – – – ( 79 ) ( 79 ) – ( 79 ) Shares issued under employee share plans – – – – 3.5 117 ( 112 ) – ( 1 ) 4 – 4 Dividends declared on common stock – – – – – – – – ( 938 ) ( 938 ) – ( 938 ) Distributions to noncontrolling interests – – – – – – – – – – ( 8 ) ( 8 ) Adjustment of redeemable noncontrolling interests to redemption value – – – – – – – – ( 18 ) ( 18 ) – ( 18 ) Balance at September 30, 2023 0.9 $ 1 750.7 $ 302 ( 41.6 ) ($ 2,132 ) $ 423 ($ 763 ) $ 23,936 $ 21,767 $ 561 $ 22,328 For the nine months ended September 30, 2023, dividends declared on common stock were $ 1.28 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, and 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 Annual Report on 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 nine months ended September 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 Annual Report on 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 designated for the purchase of like-kind exchange replacement assets under Section 1031 of the U.S. Internal Revenue Code. 1.4. New accounting standards Refer to Note 1.25 in the 2023 Annual Report on Form 10-K for impacts of new accounting standards. There were no material impacts from the adoption of new accounting standards for the nine months ended September 30, 2024. CRH Form 10-Q 9 2. Revenue The Company disaggregates revenue based on its operating and reportable segments. The Company’s operating and 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 September 30, 2024 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 1,390 – 1,363 – 2,753 Road Solutions (i) 3,909 – 1,432 – 5,341 Building & Infrastructure Solutions (ii) – 705 – 488 1,193 Outdoor Living Solutions – 1,052 – 176 1,228 Total revenues 5,299 1,757 2,795 664 10,515 Three months ended September 30, 2023 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 1,326 – 1,286 – 2,612 Road Solutions (i) 3,754 – 1,331 – 5,085 Building & Infrastructure Solutions (ii) – 687 – 520 1,207 Outdoor Living Solutions – 1,051 – 173 1,224 Total revenues 5,080 1,738 2,617 693 10,128 Nine months ended September 30, 2024 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 3,605 – 3,560 – 7,165 Road Solutions (i) 8,302 – 3,652 – 11,954 Building & Infrastructure Solutions (ii) – 1,933 – 1,509 3,442 Outdoor Living Solutions – 3,633 – 508 4,141 Total revenues 11,907 5,566 7,212 2,017 26,702 Nine months ended September 30, 2023 in $ millions Americas Materials Solutions Americas Building Solutions Europe Materials Solutions Europe Building Solutions Total Principal activities and products Essential Materials 3,388 – 3,764 – 7,152 Road Solutions (i) 7,751 – 3,645 – 11,396 Building & Infrastructure Solutions (ii) – 1,935 – 1,679 3,614 Outdoor Living Solutions – 3,612 – 490 4,102 Total revenues 11,139 5,547 7,409 2,169 26,264 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 Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Americas Materials Solutions 2,333 2,259 4,665 4,360 Europe Materials Solutions 572 570 1,439 1,501 Total revenue from contracts with customers 2,905 2,829 6,104 5,861 (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 Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Americas Building Solutions 17 19 66 53 Europe Building Solutions 111 123 374 424 Total revenue from contracts with customers 128 142 440 477 Contract assets were $ 1,004 million, $ 716 million and $ 1,005 million and contract liabilities were $ 495 million, $ 439 million and $ 404 million, at September 30, 2024, December 31, 2023 and September 30, 2023, respectively. The Company recognized revenue of $ 382 million and $ 328 million for the nine months ended September 30, 2024, and September 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 September 30, 2024, December 31, 2023 and September 30, 2023 amounting to $ 752 million and $ 252 million, $ 471 million and $ 245 million, and $ 790 million and $ 215 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 September 30, 2024, the Company had $ 4,069 million of transaction price allocated to remaining performance obligations. The majority of open contracts at September 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 third phase, comprising the operations in Poland previously classified as held for sale, closed on August 30, 2024. In total, the divestiture resulted in a pretax gain of $ 163 million which is included in Other nonoperating income, net in the Condensed Consolidated Statements of Income. The results of the divested operations and the gain on divestiture are reported in the Europe Materials Solutions segment. 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. On July 1, 2024, the Company acquired approximately 57 % of the issued share capital of Adbri (the 'Adbri' acquisition), a materials business in Australia, for a total consideration of $ 802 million. The Adbri acquisition is reported in the Europe Materials Solutions segment. During the nine months ended September 30, 2024, the Company completed the acquisition of 28 companies. The total cash consideration for these acquisitions net of cash acquired, was $ 3,853 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 September 30, 2024 were: in $ millions Adbri Hunter Other acquisitions (i) Total Identifiable assets acquired and liabilities assumed Cash and cash equivalents 15 – 8 23 Accounts receivable, net 158 – 80 238 Inventories 136 70 42 248 Other current assets 4 2 2 8 Property, plant and equipment, net 1,361 1,070 431 2,862 Equity method investments 366 – – 366 Intangible assets, net 4 2 75 81 Operating lease right-of-use assets, net 18 12 28 58 Accounts payable 17 - 24 41 Accrued expenses 63 6 8 77 Operating lease liabilities 18 12 28 58 Long-term debt 519 – 9 528 Deferred income tax liabilities 208 – 21 229 Other liabilities 172 7 35 214 Total identifiable net assets at fair value 1,065 1,131 541 2,737 Goodwill 244 975 489 1,708 Noncontrolling interests ( 507 ) – – ( 507 ) Total consideration 802 2,106 1,030 3,938 Consideration satisfied by: Cash payments 802 2,106 968 3,876 Asset exchange – – 41 41 Deferred consideration (stated at net present cost) – – 10 10 Contingent consideration – – 11 11 Total consideration 802 2,106 1,030 3,938 Acquisitions of businesses, net of cash acquired Cash consideration 802 2,106 968 3,876 Less: cash and cash equivalents acquired ( 15 ) – ( 8 ) ( 23 ) Total outflow in the Condensed Consolidated Statements of Cash Flows 787 2,106 960 3,853 (i) Other acquisitions are aggregated on the basis of individual immateriality. As a result of the acquisitions completed through September 30, 2024, the Company recognized $ 81 million of amortizable intangible assets and $ 1,708 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 nine months ended September 30, 2024, $ 1,379 million is expected to be deductible for tax purposes. The amortizable intangible assets will be amortized against earnings over a weighted average of seven years . 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 Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Adbri 22 – 22 – Hunter 1 – 23 – Other acquisitions 5 4 7 6 Total acquisition-related costs 28 4 52 6 The post-acquisition impact of acquisitions completed during the financial period on the Company’s results for the period ended September 30 was: in $ millions 2024 2023 Revenue 733 114 Net loss attributable to CRH plc (i) ( 3 ) ( 7 ) (i) Net loss amount excludes acquisition-related costs that arose during the nine months ended September 30, 2024, and September 30, 2023. Pro forma results of operations for the current year acquisitions, as if they were combined as of January 1, 2023, have not been presented because they are not material to the Condensed Consolidated Financial Statements. 5. Accounts receivable, net Accounts receivable, net, were: September 30 December 31 September 30 in $ millions 2024 2023 2023 Trade receivables 5,106 3,574 4,766 Construction contract assets 1,004 716 1,005 Total accounts receivable 6,110 4,290 5,771 Less: allowance for credit losses ( 151 ) ( 149 ) ( 139 ) Other current receivables 463 366 340 Total accounts receivable, net 6,422 4,507 5,972 Of the total Accounts receivable, net balances $ 58 million, $ 27 million and $ 33 million at September 30, 2024, December 31, 2023 and September 30, 2023, respectively, were due from equity method investments. The changes in the allowance for credit losses were: in $ millions 2024 2023 At January 1 149 125 Charge-offs ( 8 ) ( 9 ) Provision for credit losses 5 23 Foreign currency translation and other 5 – At September 30 151 139 6. Inventories Inventories were: September 30 December 31 September 30 in $ millions 2024 2023 2023 Raw materials 2,182 1,865 2,007 Work-in-process 246 186 175 Finished goods 2,216 2,240 2,009 Total inventories 4,644 4,291 4,191 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 1,270 160 281 ( 3 ) 1,708 Foreign currency translation adjustment ( 11 ) 1 38 12 40 Divestitures – – ( 201 ) – ( 201 ) Reclassified from held for sale – – 201 – 201 Carrying value, September 30, 2024 5,676 2,913 1,681 636 10,906 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 15 237 28 74 354 Foreign currency translation adjustment 1 1 ( 6 ) ( 4 ) ( 8 ) Carrying value, September 30, 2023 4,423 2,755 1,785 582 9,545 There were no charges for goodwill impairment in the nine months ended September 30, 2024 and September 30, 2023. CRH Form 10-Q 14 8. Additional financial information Other current assets were: September 30 December 31 September 30 in $ millions 2024 2023 2023 Prepayments 323 285 290 Other financial assets 163 – – Other 208 193 140 Total other current assets 694 478 430 Other noncurrent assets were: September 30 December 31 September 30 in $ millions 2024 2023 2023 Pension assets 296 271 358 Other 534 361 334 Total other noncurrent assets 830 632 692 Accrued expenses were: September 30 December 31 September 30 in $ millions 2024 2023 2023 Accrued payroll and employee benefits 1,048 1,066 984 Other accruals 1,465 1,230 1,473 Total accrued expenses 2,513 2,296 2,457 Other current liabilities were: September 30 December 31 September 30 in $ millions 2024 2023 2023 Dividends payable – 750 177 Construction contract liabilities 495 439 404 Insurance liability 178 171 168 Income tax payable 148 129 196 Asset retirement obligations 74 50 65 Finance lease liability 60 31 25 Other 748 502 640 Total other current liabilities 1,703 2,072 1,675 Other noncurrent liabilities were: September 30 December 31 September 30 in $ millions 2024 2023 2023 Income tax payable 816 712 635 Asset retirement obligations 325 310 352 Finance lease liability 168 86 71 Pension liability 257 254 276 Insurance liability 266 260 266 Other 598 574 542 Total other noncurrent liabilities 2,430 2,196 2,142 CRH Form 10-Q 15 9. Debt Long-term debt was: September 30 December 31 September 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 % – – 530 1.875 % euro Senior Notes due 2024 2.02 % – 663 636 3.875 % Senior Notes due 2025 3.93 % 1,250 1,250 1,250 1.250 % euro Senior Notes due 2026 1.25 % 840 829 795 3.400 % Senior Notes due 2027 3.49 % 600 600 600 4.000 % euro Senior Notes due 2027 4.13 % 560 553 530 3.950 % Senior Notes due 2028 4.07 % 900 900 900 1.375 % euro Senior Notes due 2028 1.42 % 672 663 636 5.200 % Senior Notes due 2029 5.30 % 750 - - 4.125 % Sterling Senior Notes due 2029 4.22 % 536 509 490 1.625 % euro Senior Notes due 2030 1.72 % 840 829 795 4.000 % euro Senior Notes due 2031 4.10 % 840 829 795 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 % 840 829 795 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 6.05 % 407 396 400 AUD interest bearing loan due 2029 5.10 % 565 – – U.S. Dollar Commercial Paper 5.47 % 1,295 1,002 260 Euro Commercial Paper 3.69 % 383 – 159 Other 66 37 6 Unamortized discounts and debt issuance costs ( 70 ) ( 67 ) ( 68 ) Total long-term debt (ii) 13,737 11,535 11,222 Less: current portion of long-term debt (iii) ( 3,065 ) ( 1,759 ) ( 1,687 ) Long-term debt 10,672 9,776 9,535 (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 the Company 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 $ 27 million, $ 30 million, and $ 30 million at September 30, 2024, December 31, 2023, and September 30, 2023, respectively. (ii) Of the Company’s nominal fixed rate debt at September 30, 2024, December 31, 2023, and September 30, 2023, $ 1,375 million was hedged to daily compounded Secured Overnight Financing Rate (SOFR) using interest rate swaps. Of the Company’s nominal floating rate debt at September 30, 2024, December 31, 2023, and September 30, 2023, AUD 300 million, AUD nil million, and AUD nil million, respectively, was hedged to fixed rates using interest rate swaps. (iii) Excludes borrowings from bank overdrafts of $ 153 million, $ 107 million and $ 173 million, which are recorded within Current portion of long-term debt in the Condensed Consolidated Balance Sheets at September 30, 2024, December 31, 2023, and September 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, 3.950 % 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. CRH Form 10-Q 16 Australian (AUD) Debt: In July 2024, the Company acquired Adbri Ltd who have committed credit agreements with a range of banks and credit institutions totaling AUD 940 million. The Company does not provide a guarantee for these facilities. The funds drawn from these facilities carry a combination of fixed and floating interest rates. 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 September 30, 2024. The total potential credit available through this arrangement is € 3,500 million, inclusive of the ability to issue letters of credit. At September 30, 2024, December 31, 2023, and September 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 September 30, 2024 were $ 3,919 million (€ 3,500 million equivalent). The RCF includes customary terms and conditions for investment-grade borrowers. There are no financial covenants. At September 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 September 30, 2024 are as follows: in $ millions Remainder of 2024 2025 2026 2027 2028 2029 and thereafter Total Long-term debt maturities 1,757 1,334 1,612 1,159 1,559 6,316 13,737 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 $ 13,737 million, $ 11,535 million, and $ 11,222 million at September 30, 2024, December 31, 2023, and September 30, 2023, respectively. The fair values of the Company’s Long-term debt were $ 13,599 million, $ 11,337 million, and $ 10,471 million at September 30, 2024, December 31, 2023, and September 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 6.23 % and 7.16 %. 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 Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Total tax expense 531 416 942 781 Effective income tax rate 28 % 24 % 25 % 24 % The increase in the effective tax rate for this quarter in comparison to the three months ended September 30, 2023 is mainly driven by the timing of discrete items occurring throughout the year, including non-deductible acquisition-related costs in the third quarter. The increase in the year-to-date compared to the nine months ended September 30, 2023 is mainly driven by a change in the mix of income earned in jurisdictions with a higher rate of tax and non-deductible acquisition-related costs which is partially offset by 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: Three months ended Nine months ended September 30 September 30 in $ millions, except share and per share data 2024 2023 2024 2023 Numerator Net income 1,389 1,318 2,812 2,499 Net (income) attributable to redeemable noncontrolling interests ( 9 ) ( 9 ) ( 21 ) ( 21 ) Net (income) attributable to noncontrolling interests ( 4 ) ( 3 ) ( 2 ) ( 1 ) Adjustment of redeemable noncontrolling interests to redemption value ( 23 ) ( 6 ) ( 30 ) ( 18 ) Net income attributable to CRH plc for EPS - basic and diluted 1,353 1,300 2,759 2,459 Denominator Weighted average common shares outstanding - basic (i) 681.6 718.2 685.0 731.8 Effect of dilutive employee share awards (ii) 3.9 3.9 5.0 4.8 Weighted average common shares outstanding - diluted 685.5 722.1 690.0 736.6 Earnings per share attributable to CRH plc Basic $ 1.99 $ 1.81 $ 4.03 $ 3.36 Diluted $ 1.97 $ 1.80 $ 4.00 $ 3.34 (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 3,919,037 at September 30, 2024 and 5,336,581 at September 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: in $ millions Currency Translation Cash Flow Hedges Pension and Other Postretirement Plans Total Balance at June 30, 2024 ( 617 ) ( 65 ) ( 131 ) ( 813 ) Other comprehensive income (loss) before reclassifications 363 ( 9 ) – 354 Amounts reclassified from Accumulated other comprehensive loss – 1 ( 7 ) ( 6 ) Net current-period other comprehensive income (loss) 363 ( 8 ) ( 7 ) 348 Other comprehensive (income) attributable to noncontrolling interests ( 34 ) – – ( 34 ) Balance at September 30, 2024 ( 288 ) ( 73 ) ( 138 ) ( 499 ) Balance at December 31, 2023 ( 439 ) ( 47 ) ( 130 ) ( 616 ) Other comprehensive income (loss) before reclassifications 205 ( 46 ) – 159 Amounts reclassified from Accumulated other comprehensive loss ( 39 ) 20 ( 8 ) ( 27 ) Net current-period other comprehensive income (loss) 166 ( 26 ) ( 8 ) 132 Other comprehensive (income) attributable to noncontrolling interests ( 15 ) – – ( 15 ) Balance at September 30, 2024 ( 288 ) ( 73 ) ( 138 ) ( 499 ) Balance at June 30, 2023 ( 605 ) 5 ( 25 ) ( 625 ) Other comprehensive (loss) before reclassifications ( 130 ) ( 23 ) – ( 153 ) Amounts reclassified from Accumulated other comprehensive loss – 3 ( 1 ) 2 Net current-period other comprehensive (loss) ( 130 ) ( 20 ) ( 1 ) ( 151 ) Other comprehensive loss attributable to noncontrolling interests 13 – – 13 Balance at September 30, 2023 ( 722 ) ( 15 ) ( 26 ) ( 763 ) Balance at December 31, 2022 ( 746 ) ( 19 ) ( 22 ) ( 787 ) Other comprehensive income (loss) before reclassifications 17 ( 12 ) - 5 Amounts reclassified from Accumulated other comprehensive loss – 16 ( 4 ) 12 Net current-period other comprehensive income (loss) 17 4 ( 4 ) 17 Other comprehensive loss attributable to noncontrolling interests 7 – – 7 Balance at September 30, 2023 ( 722 ) ( 15 ) ( 26 ) ( 763 ) The amounts reclassified from Accumulated other comprehensive loss to income were: Three months ended Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Cash flow hedges Cost of product revenues 1 4 23 21 Income tax benefit – ( 1 ) ( 3 ) ( 5 ) Total 1 3 20 16 Pension and other postretirement plans Other nonoperating income, net ( 6 ) ( 1 ) ( 8 ) ( 4 ) Income tax benefit ( 1 ) – – – Total ( 7 ) ( 1 ) ( 8 ) ( 4 ) Reclassifications from Accumulated other comprehensive loss to income ( 6 ) 2 12 12 CRH Form 10-Q 19 14. Segment information The Company has the following four operating and 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, 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, commercial and residential buildings to customers in construction markets primarily 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 Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Americas Materials Solutions 5,299 5,080 11,907 11,139 Americas Building Solutions 1,757 1,738 5,566 5,547 Europe Materials Solutions 2,795 2,617 7,212 7,409 Europe Building Solutions 664 693 2,017 2,169 Total revenues 10,515 10,128 26,702 26,264 Adjusted EBITDA Three months ended Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Americas Materials Solutions 1,484 1,284 2,692 2,184 Americas Building Solutions 355 391 1,139 1,166 Europe Materials Solutions 553 446 1,142 1,029 Europe Building Solutions 62 69 181 211 Total Adjusted EBITDA 2,454 2,190 5,154 4,590 CRH Form 10-Q 20 Three months ended Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Adjusted EBITDA 2,454 2,190 5,154 4,590 Depreciation, depletion and amortization ( 467 ) ( 402 ) ( 1,288 ) ( 1,187 ) Interest income 33 62 112 138 Interest expense ( 164 ) ( 131 ) ( 452 ) ( 285 ) Gain on divestitures and unrealized gains on investments (i) 59 – 242 – Pension income excluding current service cost component (i) 1 1 3 3 Other interest, net (i) 2 – 1 – Substantial acquisition-related costs ( 23 ) – ( 45 ) – Income from operations before income tax expense and income from equity method investments 1,895 1,720 3,727 3,259 (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 Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Americas Materials Solutions 213 195 611 576 Americas Building Solutions 85 73 249 221 Europe Materials Solutions 145 112 357 324 Europe Building Solutions 24 22 71 66 Total depreciation, depletion and amortization 467 402 1,288 1,187 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: U.S. Non-U.S. Three months ended Nine months ended Three months ended Nine months ended September 30 September 30 September 30 September 30 in $ millions 2024 2023 2024 2023 2024 2023 2024 2023 Service cost – – – – 10 9 30 25 Interest cost 6 6 18 18 22 23 64 69 Expected return on assets ( 5 ) ( 5 ) ( 15 ) ( 15 ) ( 23 ) ( 23 ) ( 67 ) ( 69 ) Amortization of: Past service credit – – – – ( 3 ) ( 3 ) ( 9 ) ( 9 ) Actuarial loss 1 1 3 3 1 – 3 – Settlement gain (i) – – – – – – ( 3 ) – Net periodic benefit cost (ii) (iii) 2 2 6 6 7 6 18 16 (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 September 30, 2024 and September 30, 2023, and $ 3 million and $ 3 million for the nine months ended September 30, 2024 and September 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: September 30 December 31 September 30 in $ millions 2024 2023 2023 Assets Current assets: Cash and cash equivalents 20 19 32 Accounts receivable, net 39 31 33 Inventories 101 99 97 Other current assets 56 51 48 Total current assets 216 200 210 Property, plant and equipment, net 882 923 913 Goodwill 197 200 488 Operating lease right-of-use assets, net 5 5 5 Other noncurrent assets 13 11 9 Total assets 1,313 1,339 1,625 Liabilities Current liabilities: Accounts payable 80 92 83 Accrued expenses 52 36 46 Current portion of long-term debt 77 98 108 Operating lease liabilities 1 1 1 Other current liabilities 23 25 23 Total current liabilities 233 252 261 Long-term debt 329 297 290 Deferred income tax liabilities 98 106 104 Noncurrent operating lease liabilities 4 5 5 Other noncurrent liabilities 20 17 15 Total liabilities 684 677 675 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 Nine months ended September 30 September 30 in $ millions 2024 2023 2024 2023 Total revenues 88 116 282 353 Total cost of revenues ( 86 ) ( 105 ) ( 262 ) ( 332 ) Gross profit 2 11 20 21 Net loss ( 10 ) ( 5 ) ( 22 ) ( 23 ) Net cash (used in) provided by operating activities ( 11 ) 21 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 June 30, 2024 335 Net income attributable to redeemable noncontrolling interests 9 Adjustment to the redemption value 23 Dividends paid ( 6 ) Balance at September 30, 2024 361 Balance at December 31, 2023 333 Net income attributable to redeemable noncontrolling interests 21 Adjustment to the redemption value 30 Dividends paid ( 23 ) Balance at September 30, 2024 361 in $ millions Balance at June 30, 2023 313 Net income attributable to redeemable noncontrolling interests 9 Adjustment to the redemption value 6 Dividends paid ( 8 ) Balance at September 30, 2023 320 Balance at December 31, 2022 308 Net income attributable to redeemable noncontrolling interests 21 Adjustment to the redemption value 18 Dividends paid ( 27 ) Balance at September 30, 2023 320 18. Commitments and contingencies Guarantees The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: $ 12.9 billion, $ 11.3 billion, and $ 11.1 billion in respect of loans and borrowings, bank advances and derivative obligations at September 30, 2024, December 31, 2023 and September 30, 2023, respectively, and $ 0.5 billion, $ 0.4 billion, and $ 0.4 billion at September 30, 2024, December 31, 2023 and September 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. 19. Subsequent events The Company has evaluated subsequent events occurring through to the date the Condensed 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 Condensed Consolidated Financial Statements except as noted below. Change in Operating and Reportable Segments During the fourth quarter of 2024, there was a change to how the CODM reviews financial information to manage the business, assess performance and allocate resources. This resulted in a realignment of the Company's operating and reportable segments to the following three segments: Americas Materials Solutions, Americas Building Solutions and International Solutions. Beginning with the Form 10-K for the year ending December 31, 2024, any historical segment financial information presented will be recast to conform to the new reportable segment structure. CRH Form 10-Q 23