Page 146 - Martin Marietta - 2023 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)

Total tax benefits related to stock‐based compensation expense were $7.6 million, $7.9 million and $5.6 million for the years ended
December 31, 2022, 2021 and 2020, respectively.
The following presents expected stock‐based compensation expense in future periods for outstanding awards as of December 31,
2022:
(in millions)
2023 $ 26.1
2024 12.8
2025 2.2
2026 1.1
2027 0.2
Total $ 42.4

i
g
i
Stock‐based compensation expense is included in Selling, general and administrative expenses in the Company’s consolidated
g
x
statements of earnings.
Note M: Leases
The Company has leases, primarilyfor equipment, railcars, fleet vehicles, office space, land, information technology equipment
and software. The Company’s leases have remaining lease terms of less than one year to 97 years, some of which may include
options to extend the leases for up to 30 years, and some of which may include options to terminate the leases within one year.
Certain of the Company’s lease agreements include payments based upon variable rates, including, but not limited to, hours used,
tonnage processed and factors related to indices. The Company’s lease agreements do not contain any material residual value
guarantees or material restrictive covenants.
The components of lease cost are as follows:
years ended December 31
(in millions) 2022 2021 2020
Operating lease cost $ 73.1 $ 72.9 $ 79.0
Finance lease cost:
mortization of right‐of‐use assets 18.3 14.3 3.6
Interest on lease liabilities 4.4 3.5 0.6
Variable lease cost 16.5 17.9 16.9
Short‐term lease cost 45.2 32.3 31.3
Total lease cost $ 157.5 $ 140.9 $ 131.4

The Company has royalty agreements that are prescriptively excluded from the scope of ASC 842 and generally require royalty
payments based on tons produced, tons sold or total sales dollars and also contain minimum payments. Royalty expense was $78.2
million, $67.1 million and $60.8 million for the years ended December 31, 2022, 2021 and 2020, respectively.

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