Page 23 - 2019 Annual Report
P. 23

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.










           Celebrating 25 Years as a Public Company                                         Annual Report  ♦  Page 21
   18   19   20   21   22   23   24   25   26   27   28