Page 21 - 2019 Annual Report

NOTES TO FINANCIAL STATEMENTS (continued)

Sales Taxes. Sales taxes collected from customers are recorded as liabilities until remitted to taxing authorities and therefore
are not reflected in the consolidated statements of earnings.

Start‐Up Costs. Noncapital start‐up costs for new facilities and products are charged to operations as incurred.

Warranties. The Company’s construction contracts usually contain warranty provisions covering defects in materials, design or
workmanship, the majority of which cover one year after project completion. Due to the nature of its projects, including
contract owner inspections of the work both during construction and prior to acceptance, the Company has not experienced
material warranty costs for these short‐term warranties and therefore does not believe an accrual for these costs is necessary.
The ready mixed concrete product line carries a longer warranty period, for which the Company has accrued an estimate of
warranty cost based on experience with the type of work and any known risks relative to the projects. These costs were not
material to the Company’s consolidated results of operations for the years ended December 31, 2019, 2018 and 2017.

Consolidated Comprehensive Earnings and Accumulated Other Comprehensive Loss. Consolidated comprehensive earnings
for the Company consist of consolidated net earnings, adjustments for the funded status of pension and postretirement
benefit plans, foreign currency translation adjustments and the amortization of the value of terminated forward starting
interest rate swap agreements into interest expense, and are presented in the Company’s consolidated statements of
comprehensive earnings.

Accumulated other comprehensive loss consists of unrecognized gains and losses related to the funded status of the pension
and postretirement benefit plans, foreign currency translation and the unamortized value of terminated forward starting
interest rate swap agreements, and is presented on the Company’s consolidated balance sheets.

Celebrating 25 Years as a Public Company Annual Report ♦ Page 19