Page 143 - Martin Marietta - 2025 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
Note J: Retirement and Other Benefit Plans

Defined Benefit Retirement Plans. The Company sponsors definedbenefit retirement plansthatcover substantially allemployees.
Defined retirement benefits forsalariedemployees arebased on each employee’s years of serviceand averagecompensation for
a specifiedperiodof timebefore retirement. Defined retirement benefits for hourly employeesare generally stated amounts for
specified periodsof service.
The Company sponsors aSupplemental Excess RetirementPlan(SERP)thatgenerally provides forthe paymentofretirement
benefitsinexcessof allowable Internal Revenue Code limits. TheSERPgenerally provides fora lump-sum paymentof vested
benefits. When thesebenefit payments exceed thesum of theservice and interestcosts forthe SERP during ayear,the Company
recognizesa pro rataportion of theSERP’sunrecognizedactuarial loss as settlementexpense.

Thenet periodic benefitcostof defined benefitplans includesthe followingcomponents:
years ended December 31
(in millions) 2024 2023 2022
Servicecost $ 38 $ 33 $ 48
Interest cost 55 51 41
Expected return on assets (79) (71) (77)
Amortization of:
Priorservice cost 6 6 4
Actuarialloss 2 1 4
Settlementcharge — — 5
Netperiodicbenefit cost $ 22 $ 20 $ 25

Thecomponentsof net periodic benefitcost, otherthanservice cost, are included inthe line item Othernonoperatingincome, net,
inthe consolidated statements of earnings. Based on the roles of theemployees, service cost is included in Cost of revenues or
Selling, generaland administrativeexpenses line items in theconsolidated statements of earnings.
Theexpected returnonassets iscalculatedbyapplying anannually selected expected long-term rateofreturnassumptiontothe
estimated fair value of the planassets during theyear, giving considerationtocontributions andbenefitspaid.
The Company recognizedthe followingpretax amounts in consolidated comprehensiveearnings:
years ended December 31
(in millions) 2024 2023 2022
Actuarial(gain) loss $ (44) $ 21 $ (115)
Priorservice cost — — 48
Amortization of:
Priorservice cost (6) (6) (4)
Actuarialloss (2) (1) (4)
Settlementcharge — — (5)
Total $ (52) $ 14 $ (80)

During 2022,the Companyamended its qualifiedpension plan to provideanenhanced benefit for eligible hourly active participants
who retire subsequent to April30, 2022, which resulted in a remeasurement of the qualified pensionplanasof February28, 2022.
The remeasurement increasedthe definedbenefit plans’ unrecognizedprior servicecost by $48 million.
Accumulated othercomprehensive loss includes the following amountsthathavenot yet been recognized innet periodic benefit
cost:

December 31 2024 2023
(in millions) Gross Net of tax Gross Net of tax
Priorservice cost $ 37 $ 7 $ 42 $ 20
Actuarialloss 17 3 64 30
Total $ 54 $ 10 $ 106 $ 50

024 Annual Report ♦ Page 35