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BENEFIT PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
BENEFIT PLANS BENEFIT PLANS
PENSION PLANS
We sponsor two qualified, noncontributory defined benefit pension plans, the Vulcan Materials Company Pension Plan (VMC Pension Plan) and the CMG Hourly Pension Plan (CMG Pension Plan). The VMC Pension Plan has been closed to new entrants since 2007, and benefit accruals ceased in 2005 for hourly participants and 2013 for salaried participants. The CMG Pension Plan is closed to new entrants other than through one small union, and benefits continue to accrue equal to a flat dollar amount for each year of service. In addition to these qualified plans, we sponsor three unfunded, nonqualified pension plans. The projected benefit obligation (PBO) presented in the table below includes $32.5 million and $39.7 million related to these unfunded, nonqualified pension plans for 2024 and 2023, respectively.
The following table sets forth the combined funded status of the plans and their reconciliation with the related amounts recognized in our consolidated financial statements at December 31:
in millions20242023
Change in Benefit Obligation
Projected benefit obligation at beginning of year$693.3 $691.1 
Service cost2.3 2.5 
Interest cost32.9 34.0 
Actuarial (gain) loss(40.2)12.4 
Benefits paid(47.5)(46.7)
Projected benefit obligation at end of year$640.8 $693.3 
Change in Fair Value of Plan Assets
Fair value of assets at beginning of year$647.9 $637.8 
Actual return on plan assets(2.0)49.4 
Employer contribution8.7 7.4 
Benefits paid(47.5)(46.7)
Fair value of assets at end of year$607.1 $647.9 
Funded status(33.7)(45.4)
Net amount recognized$(33.7)$(45.4)
Amounts Recognized in the Consolidated Balance Sheets
Noncurrent assets$8.1 $6.5 
Current liabilities(4.1)(7.3)
Noncurrent liabilities(37.7)(44.6)
Net amount recognized$(33.7)$(45.4)
Amounts Recognized in Accumulated Other Comprehensive Income
Net actuarial loss$153.1 $168.4 
Prior service cost0.0 1.0 
Total amount recognized$153.1 $169.4 
The decrease in actuarial loss as of December 31, 2024 was primarily attributable to the increase in discount rates compared with the prior year.
The following table sets forth the pension plans for which their accumulated benefit obligation (ABO) or projected benefit obligation (PBO) exceeds the fair value of their respective plan assets at December 31:
in millions20242023
Pension plans with ABO in excess of plan assets
Accumulated benefit obligation$177.5 $182.7 
Fair value of assets135.8 140.3 
Pension plans with PBO in excess of plan assets
Projected benefit obligation$177.7 $192.2 
Fair value of assets135.8 140.3 
The following table sets forth the components of net periodic benefit cost, amounts recognized in other comprehensive income and weighted-average assumptions of the plans at December 31:
dollars in millions202420232022
Components of Net Periodic Pension Benefit Cost
Service cost$2.3 $2.5 $4.0 
Interest cost32.9 34.0 21.1 
Expected return on plan assets(28.1)(27.6)(30.1)
Amortization of prior service cost1.0 1.4 1.4 
Amortization of actuarial loss5.1 5.6 4.2 
Net periodic pension benefit cost$13.2 $15.9 $0.6 
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net actuarial loss (gain)$(10.2)$(9.4)$11.2 
Reclassification of prior service cost(1.0)(1.4)(1.4)
Reclassification of actuarial loss(5.1)(5.6)(4.2)
Amount recognized in other comprehensive income$(16.3)$(16.4)$5.6 
Amount recognized in net periodic pension benefit cost and other comprehensive income$(3.1)$(0.5)$6.2 
Assumptions
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31
Discount rate — PBO5.00 %5.19 %2.92 %
Discount rate — service cost
5.10 %5.29 %3.17 %
Discount rate — interest cost4.90 %5.09 %2.37 %
Expected return on plan assets
4.85 %4.85 %4.00 %
Weighted-average assumptions used to determine benefit obligation at December 31
Discount rate5.65 %5.00 %5.19 %
Plan assets are primarily invested in liability hedging assets which include money market securities, inflation linked debt securities, public corporate debt securities and government debt securities that are actively managed to match the duration of the plans’ liabilities.
At each measurement date, we estimate the net asset values and fair values of our pension assets using various valuation techniques. For certain investments, we use the net asset value (NAV) as a practical expedient to estimating fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as described below:
Level 1: Quoted prices in active markets for identical assets or liabilities
Level 2: Inputs that are derived principally from or corroborated by observable market data
Level 3: Inputs that are unobservable and significant to the overall fair value measurement
The fair values and net asset values of our pension plan assets at December 31, 2024 and 2023 are in the tables below. The assets in the common/collective trusts and in the private partnerships consist of both return seeking and liability hedging investments.
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2024
in millionsLevel 1Level 2Level 3Total
Asset Category
Debt funds$0.0 $590.2 $0.0 $590.2 
Investments in the fair value hierarchy$0.0 $590.2 $0.0 $590.2 
Interest in common/collective trusts (at NAV)13.1 
Private partnerships (at NAV)3.8 
Total pension plan assets$607.1 
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2023
in millionsLevel 1Level 2Level 3Total
Asset Category
Debt funds$0.0 $634.9 $0.0 $634.9 
Investments in the fair value hierarchy$0.0 $634.9 $0.0 $634.9 
Interest in common/collective trusts (at NAV)9.3 
Private partnerships (at NAV)3.7 
Total pension plan assets$647.9 
The following describes the types of investments included in each asset category listed in the tables above and the valuation techniques we used to determine the fair values or net asset values as of December 31, 2024 and 2023.
The debt funds category consists of U.S. federal, state and local government debt securities, corporate debt securities, foreign government debt securities, asset-backed securities and derivatives. The fair values of U.S. government and corporate debt securities are based on current market rates and credit spreads for debt securities with similar maturities. The fair values of debt securities issued by foreign governments are based on prices obtained from broker/dealers and international indices. The fair values of asset-backed securities are priced using prepayment speed and spread inputs that are sourced from the new issue market. Derivatives are valued using pricing models based on the prevailing forward exchange rate of the underlying currencies taking into account the creditworthiness of the counterparties.
Common/collective trust fund investments consist of an index fund investing primarily in domestic equities and a short-term investment fund for highly liquid, short-term debt securities. Investments are valued at the NAV of units of a bank collective trust. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV.
The private partnerships category consists primarily of secondary private equity funds and mezzanine debt funds. The NAV of these investments has been estimated based on methods employed by the general partners, including reference to third-party transactions and valuations of comparable companies.
Total employer contributions to the pension plans are presented below:
in millionsPension
Employer Contributions
2022$7.8 
20237.4 
20248.7 
2025 (estimated)13.8 
For our qualified pension plans, we made a contribution of $2.0 million in 2024 and made no contributions during 2023 and 2022. We anticipate making a $9.6 million contribution to our qualified pension plans in 2025. For our nonqualified pension plans, we contributed $6.7 million, $7.4 million and $7.8 million during 2024, 2023 and 2022, respectively, and expect to contribute $4.2 million during 2025.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
in millionsPension
Estimated Future Benefit Payments
2025$48.0 
202648.5 
202749.6 
202849.6 
202950.0 
2030-2034247.5 
We contribute to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements for union-represented employees. The risks of participating in multiemployer plans differ from single employer plans as follows:
▪assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers
▪if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers
▪if we cease to have an obligation to contribute to one or more of the multiemployer plans to which we contribute, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability
None of the multiemployer pension plans that we participate in are individually significant. Our contributions to individual multiemployer pension plans did not exceed 5% of the plans’ total contributions in the three years ended December 31, 2024, 2023 and 2022. Total contributions to multiemployer pension plans were $30.2 million, $36.6 million and $48.6 million in 2024, 2023 and 2022, respectively.
As of December 31, 2024, a total of 14.7% of our domestic hourly labor force was covered by collective-bargaining agreements. Of such employees covered by collective-bargaining agreements, 48.8% were covered by agreements that expire in 2025. We also employed 248 union employees in Mexico who are covered by a collective-bargaining agreement that will expire in 2025. None of our union employees in Mexico participate in multiemployer pension plans.
In addition to the pension plans noted above, we had one unfunded supplemental retirement plan as of December 31, 2024 and 2023. The accrued costs for the supplemental retirement plan were $0.5 million and $0.4 million at December 31, 2024 and 2023, respectively.
POSTRETIREMENT PLANS
In addition to pension benefits, we provide certain healthcare and life insurance benefits for some retired employees. Our employer portion of the medical coverage cost for the postretirement healthcare plan is capped. Substantially all of our salaried employees and, where applicable, certain of our hourly employees may become eligible for these benefits if they reach a qualifying age and meet certain service requirements. Generally, Company-provided healthcare benefits end when covered individuals become eligible for Medicare benefits, become eligible for other group insurance coverage or reach age 65 (whichever occurs first).
The following table sets forth the combined funded status of the plans and their reconciliation with the related amounts recognized in our consolidated financial statements at December 31:
in millions20242023
Change in Benefit Obligation
Projected benefit obligation at beginning of year$44.2 $41.8 
Service cost2.2 2.0 
Interest cost2.2 2.0 
Actuarial (gain) loss(3.0)3.6 
Benefits paid(3.4)(5.2)
Projected benefit obligation at end of year$42.2 $44.2 
Change in Fair Value of Plan Assets
Fair value of assets at beginning of year$0.0 $0.0 
Actual return on plan assets0.0 0.0 
Fair value of assets at end of year$0.0 $0.0 
Funded status$(42.2)$(44.2)
Net amount recognized$(42.2)$(44.2)
Amounts Recognized in the Consolidated Balance Sheets
Current liabilities$(4.7)$(5.2)
Noncurrent liabilities(37.5)(39.0)
Net amount recognized$(42.2)$(44.2)
Amounts Recognized in Accumulated Other Comprehensive Income
Net actuarial gain$(15.0)$(12.7)
Prior service cost10.2 11.7 
Total amount recognized$(4.8)$(1.0)
The increase in actuarial gain as of December 31, 2024 was primarily attributable to the increase in discount rates and favorable claims experience for the plans compared with the prior year.
The following table sets forth the components of net periodic benefit cost, amounts recognized in other comprehensive income, weighted-average assumptions and assumed trend rates of the plans at December 31:
dollars in millions202420232022
Components of Net Periodic Postretirement Benefit Cost
Service cost$2.2 $2.0 $2.2 
Interest cost2.2 2.0 0.9 
Amortization of prior service cost (credit)1.4 1.4 (0.3)
Amortization of actuarial gain(0.7)(1.5)(1.3)
Net periodic postretirement benefit cost$5.1 $3.9 $1.5 
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net actuarial (gain) loss$(3.0)$3.6 $(2.4)
Reclassification of prior service (cost) credit(1.4)(1.4)0.3 
Reclassification of actuarial gain0.7 1.5 1.3 
Amount recognized in other comprehensive income$(3.7)$3.7 $(0.8)
Amount recognized in net periodic postretirement benefit cost and other comprehensive income$1.4 $7.6 $0.7 
Assumptions
Assumed Healthcare Cost Trend Rates at December 31
Healthcare cost trend rate assumed for next year (Pre-65/Post-65)
8.45% / n/a
10.20% / n/a
7.04% / n/a
Rate to which the cost trend rate gradually declines4.50 %4.50 %4.50 %
Year that the rate reaches the rate it is assumed to maintain203520312030
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31
Discount rate — PBO4.90 %5.09 %2.59 %
Discount rate — service cost
4.96 %5.15 %2.89 %
Discount rate — interest cost4.85 %5.03 %2.06 %
Weighted-average assumptions used to determine benefit obligation at December 31
Discount rate5.51 %4.90 %5.08 %
Total employer contributions to the postretirement plans are presented below:
in millionsPostretirement
Employer Contributions
2022$4.9 
20235.2 
20243.4 
2025 (estimated)4.7 
The employer contributions shown above are equal to the cost of benefits during the year. The plans are not funded and are not subject to any regulatory funding requirements.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
in millionsPostretirement
Estimated Future Benefit Payments
2025$4.7 
20264.9 
20275.1 
20285.1 
20295.0 
2030–203421.4 
Contributions by participants to the postretirement benefit plans for the years ended December 31 are as follows:
in millionsPostretirement
Participants Contributions
2022$2.0 
20231.5 
20241.7 
PENSION AND OTHER POSTRETIREMENT BENEFITS ASSUMPTIONS
Each year, we review our assumptions for discount rates (used for PBO, service cost, and interest cost calculations), the per capita cost of healthcare benefits and the expected return on plan assets. Due to plan changes made in 2013, annual pay increases do not materially impact plan obligations.
We use a high-quality bond full yield curve approach (specific spot rates for each annual expected cash flow) to establish the discount rates at each measurement date. At December 31, 2024, the discount rates used were as follows:
▪PBO for various plans – ranged from 5.25% to 5.73% (December 31, 2023 ranged from 4.77% to 5.05%)
▪Service cost – weighted average of 5.10% and 4.96% for our pension plans and our other postretirement plans, respectively
(2023 figures were 5.29% and 5.15%, respectively)
▪Interest cost – weighted average of 4.90% and 4.85% for our pension plans and our other postretirement plans, respectively
(2023 figures were 5.09% and 5.03%, respectively)
In selecting the rate of increase in the per capita cost of covered healthcare benefits, we consider past performance and forecast of future healthcare cost trends. At December 31, 2024, our assumed rate of increase in the per capita cost of covered healthcare benefits was 8.45% for pre-65 coverage, with rates decreasing each year until reaching 4.50% in 2035 and remaining level thereafter.
Our expected return on plan assets is a long-term view based on our current asset allocation and a judgment informed by consultation with our retirement plans’ consultant and our pension plans’ actuary. For 2024 and 2023, the expected return on plan assets used to measure plan benefit costs was set at 4.85% and 4.85%, respectively. For 2025, the preliminary expected return on plan assets is 5.90%.
DEFINED CONTRIBUTION PLANS
In addition to our pension and postretirement plans, we sponsor seven defined contribution plans. Substantially all salaried and non-union hourly employees are eligible to be covered by one of these plans. Under these plans, we match employees’ eligible contributions at established rates. Expense recognized in connection with these matching obligations totaled $87.5 million, $79.2 million and $68.2 million in 2024, 2023 and 2022, respectively.