Page 143 - Martin Marietta - 2023 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)

The postretirement health care plans’ change in plan assets, funded status and amounts recognized on the Company’s consolidated
balance sheets are as follows:
years ended December 31
(in millions) 2022 2021
Fair value of plan assets at beginning of year $ — $ —
Employer contributions 1.0 0.9
Participants’ contributions 0.6 0.6
Gross benefits paid (1.6) (1.5)
Fair value of plan assets at end of year $ — $ —

December 31
(in millions) 2022 2021
Funded status of the plan at end of year $ (8.9) $ (11.4)
Accrued benefit cost $ (8.9) $ (11.4)

December 31
(in millions) 2022 2021
Amounts recognized on consolidated balance sheets consist of:
Current liability $ (1.0) $ (1.2)
Noncurrent liability (7.9) (10.2)
Net amount recognized at end of year $ (8.9) $ (11.4)

Weighted‐average assumptions used to determine the postretirement benefit obligation as of December 31 are:
2022 2021
Discount rate 6.02% 3.02%

Weighted‐average assumptions used to determine net postretirement benefit credit for the years ended December 31 are:
2022 2021 2020
Discount rate 3.02% 2.48% 3.29%

As of December 31, 2022 and 2021, the Company estimated the remaining lives of participants in the postretirement benefit 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.

Assumed health care cost trend rates at December 31 are:
2022 2021
Health care cost trend rate assumed for next year 6.75% 6.25%
Rate to which the cost trend rate gradually declines 4.75% 4.75%
Year the rate reaches the ultimate rate 2031 2028

The Company estimates that it will contribute $1.0 million to its postretirement health care plans in 2023.

The total expected benefit payments to be paid by the Company, net of participant contributions, for each of the next five years
and the five‐year period thereafter are as follows:
(in millions)
2023 $ 1.0
2024 $ 1.3
2025 $ 1.2
2026 $ 1.1
2027 $ 1.0
Years 2028 ‐2032 $ 3.9

Annual Report ♦ Page 39