Page 125 - Martin Marietta - 2024 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
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 common stock and participating securities according to dividends or dividend equivalents
and their respective participation rights in undistributed earnings.
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 participating securities. 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 earningsfrom continuing operations per
common share:

years ended December 31
(in millions) 2023 2022 2021
Net earnings from continuing operations attributable to
Martin Marietta $ 1,199.8 $ 856.3 $ 702.0
Less: distributed and undistributed earnings attributable to
unvested participating securities — — 0.2
Basic and diluted net earnings from continuing operations
attributable to common shareholders attributable to Martin
Marietta $ 1,199.8 $ 856.3 $ 701.8

Basic weighted‐average common shares outstanding 61.9 62.3 62.4
Effect of dilutive employee and director awards 0.2 0.2 0.2
Diluted weighted‐average common shares outstanding 62.1 62.5 62.6

Reclassifications. As of December 31, 2023, the Company combined products and services revenues and freight revenues into the
Total revenues line item, and combined cost of revenues ‐ products and services and cost of revenues ‐ freight into the Total cost
of revenues line item on the Company's consolidated statements of earnings. Prior‐year information has been reclassified to
conform to the current‐year presentation. The reclassifications had no impact on the Company's previously reported results of
operations, financial position or cash flows.

New Accounting Pronouncements. In March 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards
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Update (ASU) 2023‐02, Investments ‐ Equity Method and Joint Ventures (TopT ic 323): Accounting for Investments in Tax Credit
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Structures Using the Proportional Amortization Method, which amended the guidance related to accounting for investments in tax
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credit structures to allow the use of the proportional amortization method if certain conditions are met. The amendments also
require certain disclosures in annual and interim reporting periods about an entity's tax credit programs. The Company early
adopted ASU 2023‐02, which did not have a material impact on the Company's results ofoperations, cash flows and financial
condition, in 2023.
In November 2023, the FASB issued ASU 2023‐07, Segment Reporting (TopT ic 280): Improvements to Reportable Segment
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Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and
interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently
required annually. Additionally, it requires a public entity to disclose the title and position of the Chief Operating Decision Maker.
The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative
thresholds to determine its reportable segments. The new standard is effective for fiscal years beginning after December 15, 2023,
and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This ASU requires
companies to apply retrospectively to all prior periods presented in the financial statements. The ASU will impact the Company's
disclosures, but will have no impacts to its results of operations, cash flows and financial condition.
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In December 2023, the FASB issued ASU 2023‐09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which
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focuses on the rate reconciliation and income taxes paid. ASU 2023‐09 requires public entities to disclose, on annual basis, a tabular
tax rate reconciliation using both percentages and currency amounts with specific categories, broken out into specified categories
with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold.
23 Annual Report ♦ Page 23