Page 90 - Martin Marietta - 2022 Proxy Statement

APPENDIX B /

Adjusted earnings per diluted share from continuing operations (Adjusted EPS) for the year ended December 31, 2021
excludes the impact of acquisition-related expenses, net; and the impact of selling acquired inventory due to the markup
to fair value as part of acquisition accounting.

Management presents this non-GAAP measure to more accurately report the performance of the Company excluding
these nonrecurring items.

The following reconciles reported earnings per diluted share from continuing operations to Adjusted EPS from continuing
operations for the year ended December 31, 2021.
(dollars in millions, except per share) Pretax Income Tax After-Tax Per Share
Earnings per diluted share from continuing operations in accordance with
GAAP $11.21
Impact of selling acquired inventory after its markup to fair value as part
of acquisition accounting $30.6 $ (7.2) $23.4 0.37
Acquisition-related expenses $57.9 $(14.2) $43.7 0.70
Adjusted earnings per diluted share from continuing operations $12.28
Earnings per diluted share from continuing operations in accordance with
GAAP for the year ended December 31, 2020 $11.54
Increase in adjusted earnings per diluted share from continuing operations
for the year ended December 31, 2021 versus earnings per diluted
share from continuing operations for the year ended December 31,
2020 6%

Adjusted gross profit from continuing operations represents a non-GAAP financial measure and excludes the impact of
selling acquired inventory after its markup to fair value as part of acquisition accounting. Management presents this
measure to evaluate and forecast the Company’s results, as the impact of selling acquired inventory after its markup to fair
value as part of acquisition accounting is nonrecurring.
Adjusted gross profit from continuing operations for the years ended December 31 is as follows:

(dollars in millions) 2021 2020
Gross profit from continuing operations in accordance with GAAP $1,348.4 $1,252.8
Add back: Impact of selling acquired inventory after its markup to fair value as part of acquisition
accounting 30.6 –
Adjusted gross profit from continuing operations $1,379.0 $1,252.8
Variance of 2021 over 2020 10%

B-2 MARTIN MARIETTA