MARTIN MARIETTA MATERIALS INC Goodwill & Intangibles Disclosure
Note C: Goodwill and Other Intangible Assets
The following table shows the changes in goodwill by reportable segment and in total:
December 31 |
|
East |
|
|
West |
|
|
Specialties |
|
|
Total |
|
||||
(in millions) |
|
2025 |
|
|||||||||||||
Balance at beginning of period |
|
$ |
1,031 |
|
|
$ |
2,362 |
|
|
$ |
— |
|
|
$ |
3,393 |
|
Acquisitions |
|
|
5 |
|
|
|
— |
|
|
|
209 |
|
|
|
214 |
|
Adjustments to purchase price allocations |
|
|
(1 |
) |
|
|
8 |
|
|
|
— |
|
|
|
7 |
|
Balance at end of period |
|
$ |
1,035 |
|
|
$ |
2,370 |
|
|
$ |
209 |
|
|
$ |
3,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
2024 |
|
|||||||||||||
Balance at beginning of period |
|
$ |
764 |
|
|
$ |
2,625 |
|
|
$ |
— |
|
|
$ |
3,389 |
|
Acquisitions |
|
|
267 |
|
|
|
111 |
|
|
|
— |
|
|
|
378 |
|
Goodwill allocated to assets held for sale |
|
|
— |
|
|
|
(374 |
) |
|
|
— |
|
|
|
(374 |
) |
Balance at end of period |
|
$ |
1,031 |
|
|
$ |
2,362 |
|
|
$ |
— |
|
|
$ |
3,393 |
|
Intangible assets subject to amortization consist of the following:
December 31 |
|
Gross |
|
|
Accumulated |
|
|
Net |
|
|||
(in millions) |
|
2025 |
|
|||||||||
Noncompetition agreements |
|
$ |
1 |
|
|
$ |
(1 |
) |
|
$ |
— |
|
Customer relationships |
|
|
418 |
|
|
|
(99 |
) |
|
|
319 |
|
Operating permits |
|
|
110 |
|
|
|
(33 |
) |
|
|
77 |
|
Use rights and other |
|
|
29 |
|
|
|
(14 |
) |
|
|
15 |
|
Trade names |
|
|
10 |
|
|
|
(5 |
) |
|
|
5 |
|
Total |
|
$ |
568 |
|
|
$ |
(152 |
) |
|
$ |
416 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
2024 |
|
|||||||||
Noncompetition agreements |
|
$ |
4 |
|
|
$ |
(4 |
) |
|
$ |
— |
|
Customer relationships |
|
|
415 |
|
|
|
(79 |
) |
|
|
336 |
|
Operating permits |
|
|
110 |
|
|
|
(30 |
) |
|
|
80 |
|
Use rights and other |
|
|
29 |
|
|
|
(12 |
) |
|
|
17 |
|
Trade names |
|
|
10 |
|
|
|
(4 |
) |
|
|
6 |
|
Total |
|
$ |
568 |
|
|
$ |
(129 |
) |
|
$ |
439 |
|
Intangible assets deemed to have an indefinite life that are therefore not amortized consist of the following:
December 31 |
|
Building |
|
|
Specialties |
|
|
Total |
|
|||
(in millions) |
|
2025 |
|
|||||||||
Operating permits |
|
$ |
7 |
|
|
$ |
— |
|
|
$ |
7 |
|
Use rights |
|
|
29 |
|
|
|
— |
|
|
|
29 |
|
Trade names |
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
Total |
|
$ |
36 |
|
|
$ |
7 |
|
|
$ |
43 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
2024 |
|
|||||||||
Operating permits |
|
$ |
7 |
|
|
$ |
— |
|
|
$ |
7 |
|
Use rights |
|
|
29 |
|
|
|
— |
|
|
|
29 |
|
Trade names |
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
Total |
|
$ |
36 |
|
|
$ |
2 |
|
|
$ |
38 |
|
All intangible assets acquired during 2025 were from business combinations and are as follows:
(in millions, except year data) |
|
Amount |
|
|
Weighted-average |
|
Subject to amortization: |
|
|
|
|
|
|
Customer relationships |
|
$ |
3 |
|
|
8 years |
Total subject to amortization |
|
$ |
3 |
|
|
8 years |
Not subject to amortization: |
|
|
|
|
|
|
Trade names |
|
|
5 |
|
|
N/A |
Total |
|
$ |
8 |
|
|
|
Amortization expense for intangible assets for the years ended December 31, 2025, 2024 and 2023 was $26 million, $23 million and $22 million, respectively.
The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:
(in millions) |
|
|
|
|
2026 |
|
$ |
25 |
|
2027 |
|
|
25 |
|
2028 |
|
|
25 |
|
2029 |
|
|
24 |
|
2030 |
|
|
23 |
|
Thereafter |
|
|
294 |
|
Total |
|
$ |
416 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 23, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.