Page 140 - Martin Marietta - 2023 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31
(in millions) 2022 2021
Amounts recognized on consolidated balance sheets consist of:
Noncurrent asset $ 295.3 $ 179.2
Current liability (6.8) (14.8)
Noncurrent liability (79.0) (99.6)
Net amount recognized at end of year $ 209.5 $ 64.8

The accumulated benefit obligation for all defined benefit pension plans was $789.6 million and $1.00 billion at December 31, 2022
and 2021, respectively.
Benefit obligations and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets are
as follows:
December 31
(in millions) 2022 2021
rojected benefit obligation $ 86.3 $ 115.0
Accumulated benefit obligation $ 79.5 $ 101.8
Fair value of plan assets $ 0.5 $ 0.7

Weighted‐average assumptions used to determine benefit obligations as of December 31 are:
2022 2021
Discount rate 5.88% 3.23%
Rate of increase in future compensation levels 4.50% 4.50%

Weighted‐average assumptions used to determine net periodic benefit cost for the years ended December 31 are:

2022 2021 2020
Discount rate 3.44% 3.16% 3.69%
Rate of increase in future compensation levels 4.50% 4.50% 4.50%
Expected long‐term rate of return on assets 6.75% 6.75% 6.75%

The expected long‐term rate of return on assets is based on a building‐block approach, whereby the components are weighted
based on the allocation of pension plan assets.

As of December 31, 2022 and 2021, the Company estimated the remaining lives of participants in the pension plans using the Pri‐
2012 Base tables. The no‐collar table was used for salaried participants and the blue‐collar table was used for hourly participants;
both tables were adjusted to reflect the experience of the Company’s participants. The Company used the MP‐2020 mortality
improvement scale for the years 2022 and 2021.

Retirement plan assets are invested in listed stocks, bonds, real estate, private infrastructure and cash equivalents. The target
allocation for 2022 and the actual pension plan asset allocation by asset class are as follows:
Percentage of Plan Assets
2022
Target December 31
Asset Class Allocation 2022 2021
Equity securities 56% 54% 59%
Debt securities 28% 24% 27%
Real estate 10% 14% 7%
Private infrastructure 6% 8% 7%
Total 100% 100% 100%

The Company’s investment strategy is for equity securities to be invested in mid‐sized to large capitalization U.S. funds, and small
capitalization, international and emerging growth funds. Debt securities, or fixed income investments, are invested in funds
benchmarked to the Barclays U.S. Aggregate Bond Index.

Page 36 ♦ Annual Report