Page 23 - 2019 Annual Report

NOTES TO FINANCIAL STATEMENTS (continued)

Reclassifications out of accumulated other comprehensive loss are as follows:

Affected line items in the
years ended December 31 consolidated statements of
(in millions) 2019 2018 2017 earnings
Pension and postretirement benefit plans:
Settlement charge $ — $ 2.9 $ —
Amortization of:
Prior service credit (0.8 ) (2.0 ) (1.4 )
Actuarial loss 15.5 12.7 13.8
Other nonoperating expenses
14.7 13.6 12.4 and (income), net
Tax effect (3.6 ) (3.4 ) (4.7 ) Income tax expense (benefit)
Total $ 11.1 $ 10.2 $ 7.7
Unamortized value of terminated forward starting
interest rate swap:
Additional interest expense $ — $ 0.5 $ 1.4 Interest expense
Tax effect — (0.2 ) (0.6 ) Income tax expense (benefit)
Total $ — $ 0.3 $ 0.8

Earnings Per Common Share. The Company computes earnings per common share (EPS) pursuant to the two‐class method.
The two‐class method determines EPS for each class of common stock and participating securities according to dividends or
dividend equivalents and their respective participation rights in undistributed earnings. The Company paid nonforfeitable
dividend equivalents during the vesting period on its restricted stock awards and incentive stock awards made prior to 2016,
which results in these being considered participating securities.

The numerator for basic and diluted earnings per common share is net earnings attributable to Martin Marietta, reduced by
dividends and undistributed earnings attributable to the Company’s unvested restricted stock awards and incentive stock
awards issued prior to 2016. The denominator for basic earnings per common share is the weighted‐average number of
common shares outstanding during the period. Diluted earnings per common share is computed assuming that the weighted‐
average number of common shares is increased by the conversion, using the treasury stock method, of awards issued to
employees and nonemployee members of the Company’s Board of Directors under certain stock‐based compensation
arrangements if the conversion is dilutive.
The following table reconciles the numerator and denominator for basic and diluted earnings per common share:

years ended December 31
(in millions) 2019 2018 2017
Net earnings attributable to Martin Marietta $ 611.9 $ 470.0 $ 713.3
Less: Distributed and undistributed earnings attributable to
unvested participating securities 0.9 0.8 2.0
Basic and diluted net earnings attributable to common
shareholders attributable to Martin Marietta $ 611.0 $ 469.2 $ 711.3

Basic weighted‐average common shares outstanding 62.5 62.9 62.9
Effect of dilutive employee and director awards 0.2 0.2 0.3
Diluted weighted‐average common shares outstanding 62.7 63.1 63.2

Reclassifications. Certain reclassifications were made to the comparative years’ financial statements and notes to the financial
statements to conform to the December 31, 2019 presentation. Such reclassifications had no impact on the Company’s
previously reported results of operations, financial position or cash flows.

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