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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 11-K
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[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the fiscal year ended December 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from _______ to ________
Commission file number: 1-12744
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MARTIN MARIETTA MATERIALS, INC.
SAVINGS AND INVESTMENT PLAN for HOURLY EMPLOYEES
(Full title of the plan and the address of the plan,
if different from that of the issuer named below)
MARTIN MARIETTA MATERIALS, INC.
2710 WYCLIFF ROAD
RALEIGH, NORTH CAROLINA 27607
(Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office)
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FINANCIAL STATEMENTS
Martin Marietta Materials, Inc.
Savings and Investment Plan for Hourly Employees
DECEMBER 31, 2000 AND 1999 AND YEAR ENDED DECEMBER 31, 2000 WITH REPORT OF
INDEPENDENT AUDITORS
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Martin Marietta Materials, Inc.
Savings and Investment Plan for Hourly Employees
Audited Financial Statements
December 31, 2000 and 1999 and year ended December 31, 2000
CONTENTS
Report of Independent Auditors...........................................1
Audited Financial Statements
Statements of Net Assets Available for Benefits..........................2
Statement of Changes in Net Assets Available for Benefits................3
Notes to Financial Statements............................................4
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Report of Independent Auditors
Martin Marietta Materials, Inc., as Plan Administrator
We have audited the accompanying statements of net assets available for benefits
of the Martin Marietta Materials, Inc. Savings and Investment Plan for Hourly
Employees as of December 31, 2000 and 1999, and the related statement of changes
in net assets available for benefits for the year ended December 31, 2000. These
financial statements are the responsibility of Martin Marietta Materials, Inc.,
as Plan Administrator. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 2000 and 1999, and the changes in its net assets available for
benefits for the year ended December 31, 2000 in conformity with accounting
principles generally accepted in the United States.
/s/ ERNST & YOUNG LLP
June 8, 2001
Raleigh, North Carolina
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Martin Marietta Materials, Inc.
Savings and Investment Plan for Hourly Employees
Statements of Net Assets Available for Benefits
DECEMBER 31
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2000 1999
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(IN THOUSANDS)
ASSETS
Cash $ -- $ 76
Interest in Master Trust, at fair value 28,430 24,003
Contributions receivable:
Employees 363 365
Martin Marietta Materials, Inc. 113 79
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Net assets available for benefits $28,906 $24,523
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SEE ACCOMPANYING NOTES.
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Martin Marietta Materials, Inc.
Savings and Investment Plan for Hourly Employees
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 2000
(IN THOUSANDS)
Net assets available for benefits at beginning of year $24,523
Additions to net assets attributed to:
Contributions:
Employees 4,236
Martin Marietta Materials, Inc. 1,286
Rollovers 1,002
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Total contributions 6,524
Deductions from net assets attributed to:
Distributions and withdrawals 1,883
Interest in net investment loss of Master Trust 149
Administrative expenses 109
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Total deductions 2,141
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Net assets available for benefits at end of year $28,906
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SEE ACCOMPANYING NOTES.
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Martin Marietta Materials, Inc.
Savings and Investment Plan for Hourly Employees
Notes to Financial Statements
December 31, 2000
1. ACCOUNTING POLICIES
The financial statements of the Martin Marietta Materials, Inc. Savings and
Investment Plan for Hourly Employees (the "Plan") are prepared on the accrual
basis of accounting. No liability is recorded for distributions to participants
who terminated during the year but have chosen to defer payments to the
following year. The assets of the Plan are held and invested on a commingled
basis in the Martin Marietta Materials, Inc. Defined Contribution Plans Master
Trust (the "Master Trust") along with the assets of the Martin Marietta
Materials, Inc. Performance Sharing Plan. The Plan's interest in the Master
Trust is stated at the fair value of the underlying net assets in the Master
Trust. Fair values of the underlying net assets are determined by closing prices
on the last business day of the year for those securities traded on national
exchanges, at the most recent sales prices for those securities traded in
over-the-counter markets and at fair value as determined by the trustee for
securities for which there is not an established market. The assets, realized
and unrealized gains and losses and investment income of the Master Trust are
allocated among the participating plans on a pro rata basis. All administrative
expenses, a portion of which are paid by Martin Marietta Materials, Inc. (the
"Corporation"), are otherwise paid from the Master Trust and allocated to each
of the participating plans.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates,
in particular the determination of fair values of investments for which market
values are not readily available. Actual results could differ from those
estimates.
2. DESCRIPTION OF THE PLAN
The following description of the Plan provides only general information.
Participants should refer to the summary plan description for a more complete
description of the Plan's provisions.
The Plan is a defined contribution plan providing hourly paid employees of the
Corporation and hourly employees covered under certain collectively bargained
agreements an opportunity to participate in an individual savings and investment
program providing tax deferred savings. The Plan is subject to the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA). Martin Marietta
Materials, Inc. is the Plan's sponsor and also serves as the Plan administrator.
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Martin Marietta Materials, Inc.
Savings and Investment Plan for Hourly Employees
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN
Employees are eligible to enroll in the Plan after six months of service.
Employee participation requires employee basic contributions of 1% to 7% of base
salary (as defined in the Plan and subject to applicable Internal Revenue Code
("IRC") limitations on allowable compensation). Certain participants may also
elect to make additional supplemental contributions, which are not considered
for purposes of computing the employer match. A participant's combined basic and
supplemental contributions may not exceed 17% of that participant's base pay.
Generally, a participant's before-tax contributions may not exceed 15% of base
pay.
The Corporation matches the first 7% of eligible participants' annual basic
contributions. The amount of the Corporation's match is equal to 40% (30% prior
to January 1, 2000) of the basic contributions and is credited to participant
accounts monthly. Certain participants are not eligible for employer
contributions, as defined by the Plan. All participants are 100% vested in the
value of their accounts, including employer contributions.
During 2000 and 1999, the participants' investment options included the
Yield-Enhanced Short-Term Investment Fund, S&P 500 Index Fund, Martin Marietta
Materials Common Stock Fund, Harbor Capital Appreciation Fund, Daily Bond Market
Fund, Vanguard Windsor Fund and Vanguard International Growth Fund.
Participants may change the overall percentage of their contributions in 1%
increments and may change investment elections for future before-tax, after-tax
and matching contributions, both up to once per month. Any changes in investment
elections must be made in 5% increments. In addition, participants may change
the investment mix of the accumulated value of prior contributions among the
investment options daily, but are limited to 12 changes in a calendar year,
provided that the participant has one transfer in a calendar quarter, regardless
of the limitation.
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Martin Marietta Materials, Inc.
Savings and Investment Plan for Hourly Employees
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
The Plan provides for participants to borrow from the money in his or her own
investment account. All loans must meet specific terms and conditions of the
Plan and are subject to applicable IRC regulations. Personal loans are available
to participants in terms of up to 5 years, and primary residence loans are
available for terms of up to 15 years. Such loans bear interest at a fixed rate,
established upon loan request, which is equal to the annual prime rate (based
upon corporate borrowing rates posted by at least 75% of the nation's 30 largest
banks, as reported in THE WALL STREET JOURNAL on the first business day of the
calendar month before loan application) plus 1%. All loans are due in full
immediately upon termination of employment. Approximately $1,044,000 and
$1,363,000 were loaned to participants during 2000 and 1999, respectively. In
addition, the Plan provides for in-service withdrawals to participants that meet
specific conditions of financial hardship, as defined in the Plan and in
accordance with current specific regulations under the IRC. Participants who are
still working at the age of 59 1/2 may qualify for special withdrawal rights and
privileges as defined in the Plan.
Upon separation from the Corporation, participants may receive the full current
value of their contributions and the matching employer contributions.
Participants who have attained age 55 may receive their distributions in the
form of a lump-sum payment or in annual installments over a period of up to 20
years. The accounts of participants who receive installment payments remain
invested in the funds indicated by the participant.
State Street Bank and Trust Company is the trustee of the Master Trust and
recordkeeper of the Master Trust and Plan.
Although the Corporation expects to continue the Plan indefinitely, the Board of
Directors of the Corporation may terminate the Plan for any reason at any time.
If the Plan is terminated, each participant or former participant shall receive
a payment equal to the value of the participant's account.
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Martin Marietta Materials, Inc.
Savings and Investment Plan for Hourly Employees
Notes to Financial Statements (continued)
3. INCOME TAX STATUS
The Plan received a determination letter from the Internal Revenue Service dated
April 1, 1998, stating that the Plan is qualified under Section 401(a) of the
Internal Revenue Code (the "Code"), therefore, the related trust is exempt from
taxation. Once qualified, the Plan is required to operate in conformity with the
Code to maintain its qualification. The Plan Administrator believes the Plan is
being operated in compliance with the applicable requirements of the Code, and,
therefore, believes that the Plan is qualified and the related trust is tax
exempt.
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Martin Marietta Materials, Inc.
Savings and Investment Plan for Hourly Employees
Notes to Financial Statements (continued)
4. MASTER TRUST
The Plan's interest in the Master Trust's net assets as of December 31, 2000 and
1999, was 20.07% and 17.50%, respectively. The Plan's interest in the Master
Trust did not fluctuate significantly throughout the years ended December 31,
2000 and 1999. An analysis of investments and related investment income for the
Master Trust is as follows:
2000
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NET APPRECIATION
(DEPRECIATION) IN
INTEREST FAIR VALUE DURING
AND DIVIDENDS YEAR FAIR VALUE AT END
OF YEAR
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(IN THOUSANDS)
Cash and cash equivalents $ 2,346 $ -- $ 39,787
Governmental bonds -- 141 1,569
Corporate bonds -- 147 1,633
Common stocks 4,270 (9,027) 95,273
Other 114 -- 2,991
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$ 6,730 $ (8,739) $ 141,253
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1999
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NET DEPRECIATION
INTEREST IN FAIR VALUE FAIR VALUE AT END
AND DIVIDENDS DURING YEAR OF YEAR
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(IN THOUSANDS)
Cash and cash equivalents $ 1,758 $ -- $ 35,191
Governmental bonds -- -- 2,027
Corporate bonds -- -- 1,467
Common stocks 2,835 (1,606) 96,033
Other 123 -- 2,449
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$ 4,716 $ (1,606) $ 137,167
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SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustee of the below named plan has duly caused this annual report
to be signed on its behalf by the undersigned hereunto duly authorized.
MARTIN MARIETTA MATERIALS, INC.
SAVINGS and INVESTMENT PLAN for
HOURLY EMPLOYEES
By: Martin Marietta Materials, Inc.
Plan Administrator
By: Benefit Plan Committee
By: /s/ Janice K. Henry
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Janice K. Henry
Date: June 28, 2001
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EXHIBIT INDEX
EXHIBIT NO. DOCUMENT
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23 Consent of Ernst & Young LLP