Page 150 - Martin Marietta - 2025 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
The Company has royalty agreements that are prescriptivelyexcluded fromthe scopeof ASC 842and generally require royalty
paymentsbased on tons produced,tonssoldortotal salesdollars andalsocontain minimumpayments. Royalty expense was$92
million, $86 millionand $78 million for the years ended December31, 2024, 2023 and 2022, respectively.
The balancesheet classificationsof operating and finance leases areas follows:
December 31
(in millions) 2024 2023
Operatingleases:
Operatinglease right-of-use assets $ 376 $ 372

Current operatinglease liabilities $ 56 $ 53
Noncurrent operatinglease liabilities 335 327
Totaloperating leaseliabilities $ 391 $ 380

Financeleases:
Property,plant andequipment $ 295 $ 254
Accumulateddepreciation (83) (59)
Property,plant andequipment,net $ 212 $ 195

Othercurrent liabilities $ 19 $ 20
Othernoncurrent liabilities 202 180
Total finance leaseliabilities $ 221 $ 200
The incremental borrowing rate ranged from 0.4% to 6.0% forthe yearsended December31, 2024 and 2023. Weighted-average
remaining leaseterms anddiscount rates areas follows:
December 31 2024 2023
Weighted-average remaininglease terms(years):
Operatingleases 11.0 11.7
Financeleases 18.1 18.3

Weighted-average discount rates:
Operatingleases 4.6% 4.3%
Financeleases 3.3% 2.6%

Future lease paymentsasofDecember31, 2024 areas follows:
Operating Finance
(in millions) Leases Leases
2025 $ 72 $ 26
2026 65 19
2027 53 18
2028 43 16
2029 38 15
Thereafter 234 202
Totallease payments 505 296
Less: imputed interest (114) (75)
Present value of lease payments 391 221
Less: current leaseobligations (56) (19)
Totallong-term leaseobligations $ 335 $ 202

age42 ♦ 2024 Annual Report