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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 SECITON 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.
SOUTHWEST DIVISION 401(k) PLAN
(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 AND SUPPLEMENTAL SCHEDULE
Martin Marietta Materials, Inc. Southwest Division 401(k) Plan
(f/k/a Redland Stone 401(k) Plan)
DECEMBER 31, 2000 AND 1999 AND YEAR ENDED DECEMBER 31, 2000 WITH REPORT OF
INDEPENDENT AUDITORS
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Martin Marietta Materials, Inc. Southwest Division 401(k) Plan
(f/k/a Redland Stone 401(k) Plan)
Audited Financial Statements and Supplemental Schedule
December 31, 2000 and 1999 and year ended December 31, 2000
CONTENTS
Report of Independent Auditors .............................................1
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
Supplemental Schedule
Schedule H, Line 4(i) - Schedule of Assets (Held at End of Year)............8
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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 Martin Marietta Materials, Inc. Southwest Division 401(k) Plan (f/k/a Redland
Stone 401(k) Plan) 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 the Plan's
management. 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.
Our audit of the Plan's financial statements as of and for the year ended
December 31, 2000 was made for the purpose of forming an opinion on the
financial statements taken as a whole. The supplemental schedule of Assets (Held
at End of Year) as of December 31, 2000 is presented for the purpose of
additional analysis and is not a required part of the financial statements but
is supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. This supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been subjected to the auditing
procedures applied in the audit of the financial statements for the year ended
December 31, 2000, and, in our opinion, is fairly stated in all material
respects in relation to the financial statements taken as a whole.
/s/ ERNST & YOUNG LLP
June 8, 2001
Raleigh, North Carolina
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Martin Marietta Materials, Inc. Southwest Division 401(k) Plan
(f/k/a Redland Stone 401(k) Plan)
Statements of Net Assets Available for Benefits
DECEMBER 31
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2000 1999
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ASSETS
Investments, at fair value $12,615,746 $11,481,855
Contributions receivable:
Employer 14,815 13,733
Participants 36,174 33,911
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Total contributions receivable 50,989 47,644
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Net assets available for benefits $12,666,735 $11,529,499
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SEE ACCOMPANYING NOTES.
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Martin Marietta Materials, Inc. Southwest Division 401(k) Plan
(f/k/a Redland Stone 401(k) Plan)
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 2000
Additions to net assets attributed to:
Investment income:
Net depreciation in fair value of investments $ (631,235)
Interest and dividend income 884,686
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253,451
Contributions:
Employer 432,108
Participants 1,152,906
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1,585,014
Other 777
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Total additions 1,839,242
Deductions from net assets attributed to:
Benefits paid to participants 698,606
Loan administrative expenses 3,400
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Total deductions 702,006
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Net increase 1,137,236
Net assets available for benefits, beginning of year 11,529,499
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Net assets available for benefits, end of year $ 12,666,735
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SEE ACCOMPANYING NOTES.
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Martin Marietta Materials, Inc. Southwest Division 401(k) Plan
(f/k/a Redland Stone 401(k) Plan)
Notes to Financial Statements
December 31, 2000
1. ACCOUNTING POLICIES
The financial statements of the Martin Marietta Materials, Inc. Southwest
Division 401(k) Plan (f/k/a Redland Stone 401(k) Plan) (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. All administrative expenses, except for loan application
and maintenance fees, are paid by Redland Stone Products Company, (the
"Company"), which is a wholly-owned subsidiary of Martin Marietta Materials,
Inc. ("Martin Marietta").
The Plan's investments are stated at fair value. Shares of registered investment
companies are valued at quoted market prices, which represent the net asset
value of shares held by the Plan at year-end. Shares of Martin Marietta common
stock are valued at quoted market prices. Participant notes receivable are
valued at their outstanding balances, which approximate fair value. Purchases
and sales are recorded on a trade-date basis. Interest income is recorded on the
accrual basis. Dividends are recorded on the ex-dividend date.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
that affect the amounts reported in the financial statements and accompanying
notes. 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 plan agreement for a more complete description
of the Plan's provisions.
The Plan is a defined contribution plan providing substantially all employees of
the Company an opportunity to participate in an individual savings and
investment program providing tax-deferred savings and retirement incentives.
Martin Marietta is the Plan's sponsor and also serves as the plan administrator.
The Plan is subject to the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA).
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Martin Marietta Materials, Inc. Southwest Division 401(k) Plan
(f/k/a Redland Stone 401(k) Plan)
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Employees are eligible to enroll in the Plan after six months of service. An
employee may elect to defer from 1% up to 15% of compensation (as defined in the
Plan and subject to applicable Internal Revenue Code (IRC) limitations on
allowable compensation).
The Company matches a participant's salary deferral contribution in an amount
equal to 50% of the participant's salary deferral contribution, but not to
exceed 7% of the participant's compensation (6% prior to January 1, 2000). All
participants are 100% vested in their salary deferral contributions plus actual
earnings thereon. Vesting in the Company's contribution portion of their
accounts plus actual earnings thereon is based on years of continuous service. A
participant is 100% vested after three years of credited service. Forfeited
nonvested accounts are used to reduce future employer contributions.
Participants may change the overall percentage of their contributions in 1%
increments and may change investment elections for future salary deferral and
matching contributions at any time. 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 at
any time.
The Plan provides for participants to borrow from the money in their own
investment accounts. 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 rate
commensurate with local prevailing rates. Interest rates range from 9.25% to
10.5%. 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.
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Martin Marietta Materials, Inc. Southwest Division 401(k) Plan
(f/k/a Redland Stone 401(k) Plan)
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Upon separation from the Company, participants may receive the full current
value of their contributions and the vested portion of their matching employer
contributions in the form of a lump-sum payment.
Vanguard Fiduciary Trust Company is the trustee and recordkeeper of the Plan.
The Board of Directors of Martin Marietta may terminate the Plan, subject to
provisions of ERISA, for any reason at any time. If the Plan is terminated, each
participant or former participant shall become 100% vested in his or her
account.
3. INVESTMENTS
An analysis of investment income for the Plan for the year ended December 31,
2000 is as follows:
Net (depreciation) appreciation in fair value of investments:
Registered investment companies $(637,656)
Martin Marietta common stock 6,421
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Total net depreciation in fair value of investments $(631,235)
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The fair values of individual investments that represent 5% or more of the
Plan's assets at December 31 are as follows:
2000 1999
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Vanguard Explorer Fund $1,954,551 $1,765,443
Vanguard 500 Index Fund 3,837,889 4,170,562
Vanguard Wellington Fund 2,045,001 1,673,485
Vanguard Retirement Savings Trust 2,557,304 2,235,063
Participant loans 1,194,566 959,921
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Martin Marietta Materials, Inc. Southwest Division 401(k) Plan
(f/k/a Redland Stone 401(k) Plan)
Notes to Financial Statements (continued)
4. INCOME TAX STATUS
The Plan has not received a determination letter from the Internal Revenue
Service stating that the Plan is qualified under Section 401(a) of the Internal
Revenue Code. However, the plan administrator believes the Plan is qualified
and, therefore, the related trust is exempt from taxation.
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Martin Marietta Materials, Inc. Southwest Division 401(k) Plan
(f/k/a Redland Stone 401(k) Plan)
EIN: 84-1314050 Plan No: 009
Schedule H, Line 4(i)
Schedule of Assets (Held at End of Year)
December 31, 2000
(C)
(B) DESCRIPTION OF INVESTMENT,
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, OR RATE OF INTEREST, COLLATERAL, CURRENT
(A) SIMILAR PARTY PAR OR MATURITY VALUE (D) VALUE
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* Vanguard Explorer Fund Registered investment company $ 1,954,551
* Vanguard International
Growth Fund Registered investment company 360,749
* Vanguard 500 Index Fund Registered investment company 3,837,889
* Vanguard Long-Term
Corporate Fund Registered investment company 67,596
* Vanguard Wellington Fund Registered investment company 2,045,001
* Vanguard Windsor II Fund Registered investment company 428,645
* Vanguard Retirement
Savings Trust Common/collective trust 2,557,304
* Martin Marietta Materials,
Inc. Shares of common stock 169,445
Participant loans Interest rates ranging from
9.25% to 10.5% 1,194,566
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$ 12,615,746
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* Indicates party-in-interest to the Plan.
Note: Cost information has not been included in column (d) because all
investments are participant directed.
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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.
SOUTHWEST DIVISION 401(k) PLAN
By: Martin Marietta Materials, Inc.
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