Quantitative and Qualitative Disclosures About Market Risk.
−Removed: The COVID-19 pandemic continues to impact the global and domestic economy.
−Removed: The Company’s operations have to date been considered “essential” operations under applicable governmental orders that restrict activities in an effort to prevent further outbreak of COVID-19.
−Removed: As such, the Company is conducting business with certain modifications, including engaging medical experts to screen those who may have had COVID-19 exposure before allowing access to sites;
−Removed: enhancing the cleaning and disinfection of equipment and common areas, including engaging third-party specialists to disinfect work spaces;
−Removed: and issuing a quarantine policy requiring employees with COVID-19 symptoms to stay home for at least 10 days, among other things.
−Removed: The Company continues to actively monitor the situation and may take further actions that alter its business operations including any that may be required by federal, state or local authorities or that the Company determines are in the best interests of its employees, customers, suppliers, vendors, communities and other stakeholders.
−Removed: Demand for aggregates products, particularly in the infrastructure construction market, is affected by federal, state and local budget and deficit issues.
−Removed: Remote working trends are reducing miles driven, which is having a negative impact on various revenue streams that fund roadway projects.
−Removed: Further, delays or cancellations of projects in the nonresidential and residential construction markets, which combined accounted for 61% of aggregates shipments for the nine months ended September 30, 2021, could occur if companies and consumers are unable to obtain financing for construction projects or if consumer confidence continues to be eroded by economic uncertainty.
The Company’s operations are highly dependent upon the interest rate-sensitive construction and steelmaking industries.
−Removed: Consequently, these marketplaces could experience lower levels of economic activity in an environment of rising interest rates or higher borrowing costs.
+Added: Demand in the residential and nonresidential construction market, which combined accounted for 62% of aggregates shipments for the three months ended March 31, 2022, is affected by interest rates.
+Added: During the quarter ended March 31, 2022, the Federal Reserve raised the target federal funds rate 25 basis points.
+Added: Consequently, these marketplaces could experience lower levels of economic activity in an environment of rising interest rates or escalating costs if companies and consumers are unable to obtain financing for construction projects or if consumer confidence is eroded by economic uncertainty.
+Added: Demand for aggregates products, particularly in the infrastructure construction market, is affected by federal, state and local budget and deficit issues.
Aside from these inherent risks from within its operations, the Company’s earnings are also affected by changes in short-term interest rates and changes in enacted tax laws.
Variable-Rate Borrowing Facilities.
−Removed: At September 30, 2021, the Company had a $700 million Revolving Facility and a $400 million Trade Receivable Facility.
+Added: At March 31, 2022, the Company had an $800.0 million Revolving Facility and a $400.0 million Trade Receivable Facility.
Borrowings under these facilities bear interest at a variable interest rate.
−Removed: A hypothetical 100-basis-point increase in interest rates on borrowings of $20 million, which was the collective outstanding balance at September 30, 2021, would increase interest expense by $0.2 million on an annual basis.
+Added: There were no borrowings outstanding on either facility at March 31, 2022.
+Added: However, any future borrowings under the credit facilities or outstanding variable-rate debt are exposed to interest rate risk.
Pension Expense.
3 unchanged sentences
The impact of hypothetical changes in these assumptions on the Company’s annual pension expense is discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
−Removed: As of September 30, 2021, discount rates were approximately 40 basis points higher than the rate selected as of December 31, 2020, the most recent measurement date.
−Removed: Unless an event requires an interim remeasurement, the Company will next remeasure its pension obligation and funded status as of December 31, 2021.
+Added: The Company remeasured its qualified pension plan as of February 28, 2022, to reflect an amendment that increased the pension benefit for qualifying hourly employees.
+Added: The discount rate at the remeasurement date was approximately 50 basis points higher compared with the discount rate as of December 31, 2021.
+Added: Further, discount rates increased approximately 25 additional basis points in the month of March 2022.
+Added: Unless another event requires an interim remeasurement, the Company will next remeasure its pension obligation and funded status as of December 31, 2022.
Changes in the discount rate and pension asset values will impact 2023 pension expense.
−Removed: Any changes in enacted tax laws (such as the recent U.S.
−Removed: tax legislation), rules or regulatory or judicial interpretations;
+Added: Any changes in enacted tax laws, rules or regulatory or judicial interpretations;
or any change in the pronouncements relating to accounting for income taxes could materially impact our effective tax rate, tax payments, financial condition and results of operations.
−Removed: Page 50 of 54
−Removed: MARTIN MARIETTA MATERIALS, INC.
−Removed: AND CONSOLIDATED SUBSIDIARIES
−Removed: For the Quarter Ended September 30, 2021
Energy Costs .
1 unchanged sentence
The cement operations and Magnesia Specialties business have fixed price agreements covering a majority of their 2022 coal requirements.
−Removed: Energy expense for the nine months ended September 30, 2021 inc reased approximately 29 % compared with the prior-year period , due to increased natural gas , diesel , electricity and gasoline costs in 202 1 ;
+Added: Organic energy expense for the three months ended March 31, 2022 increased approximately 52% compared with the prior-year period, related to higher prices for natural gas, diesel, electricity and gasoline in 2022.
+Added: Specifically, the ongoing conflict between Russia and Ukraine has exacerbated already increased diesel prices;
however, any future energy prices cannot be reliably predicted.
−Removed: A hypothetical price change of 2 9 % would change full year 2021 energy expense by $ 67 million as compared with 2020 , assuming constant volumes.
+Added: A hypothetical price change of 52% would change organic full-year 2022 energy expense by $158.1 million as compared with 2021, assuming constant volumes.
+Added: Further, the full-year 2022 impact on profitability and margins would be greater when considering the energy consumed by operations acquired 2021.
+Added: Page 37 of 41
+Added: MARTIN MARIETTA MATERIALS, INC.
+Added: AND CONSOLIDATED SUBSIDIARIES
+Added: For the Quarter Ended March 31, 2022
Commodity Risk.
2 unchanged sentences
Increases in the production capacity of industry participants or increases in cement imports tend to create an oversupply of such products leading to an imbalance between supply and demand, which can have a negative impact on product prices.
−Removed: There can be no assurance that prices for products sold will not decline in the future or that such declines will not have a material adverse effect on the Company’s business, financial condition and results of operations.
−Removed: Assuming full- year 2020 cement product revenues of $453 million, a hypothetical 10% change in sales price would impact cement product revenues by $45.3 million.
+Added: There can be no assurance that prices for products sold will not decline in the future or that such declines will not have a material adverse effect on the Company’s business, financial condition and results of operation s.
+Added: Assuming full - year 202 1 cement product revenues of $ 4 9 4.
+Added: 5 million, a hypothetical 10% change in sales price would impact full-year cement product revenues by $ 49.5 million .
Cement is a key raw material in the production of ready mixed concrete.
2 unchanged sentences
While increases in cement pricing may negatively impact the profitability of the ready mixed concrete operations, the cement business would benefit, although the positive impact may not reflect a direct correlation to the impact on the ready mixed concrete business.
+Added: The Company consumes other raw material and supply commodities in its operations, the costs of which have been negatively impacted by high inflation.
+Added: The Company periodically implements price increases due to rising costs.
+Added: However, there is a lag between announced price increases and the time when they are fully realized.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.