Page 132 - Martin Marietta - 2025 Proxy Statement

NOTES TO FINANCIAL STATEMENTS (Continued)
Earnings Per Common Share. Thenumeratorforbasic anddilutedearningsper commonshare is netearningsattributableto
Martin Marietta. The denominator for basicearningsper commonshare is theweighted-averagenumberof commonshares
outstanding duringthe period. Diluted earnings percommonshare is computed assuming that the weighted-averagenumberof
commonshares is increased by theconversion, usingthe treasury stock method, of awards issued to employees andnonemployee
members of the Company’s BoardofDirectors under certainstock-based compensation arrangements if theconversion isdilutive.

The following table reconcilesthe denominator for basicand dilutedearnings fromcontinuingoperationsper commonshare:
years ended December 31
(in millions) 2024 2023 2022
Basic weighted-averagecommonsharesoutstanding 61.4 61.9 62.3
Effect of dilutive employee anddirectorawards 0.2 0.2 0.2
Diluted weighted-averagecommonsharesoutstanding 61.6 62.1 62.5

Reclassifications. Certain reclassifications have been made in the Company's financialstatementsof the prioryears to conformto
thecurrent-yearpresentation. The reclassifications hadno impactonthe Company'spreviously reported results of operations,
financial condition or cash flows.

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New Accounting Pronouncements. In November 2023, theFASB issuedASU 2023-07, Segment Reporting (TopT ic 280):
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Improvementsto ReportableSegment Disclosures,which requiresa public entity to disclose significantsegment expenses and
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othersegment itemsonanannualand interimbasis andprovide in interim periods alldisclosures abouta reportable segment’s
profitorlossand assets thatare currently required annually.Additionally,the ASU requiresa public entity to disclose thetitle and
position of the Chief Operating DecisionMaker. The ASUdoesnot change how a public entity identifies itsoperating segments,
aggregates them,orappliesthe quantitative thresholds to determine its reportable segments. The Companyadopted ASU2023-
07 as of December 31,2024 and appliedthe disclosure requirements retrospectively to all prior periodspresented in the financial
statements included inthe 2024 Annual Report on Form 10-K(seeNoteO). Theadoptionhad no impact on its results of operations,
cash flowsor financial condition.
In December 2023,the FASBissued ASU2023-09, Income Taxes (Topic740): Improvements to Income TaxDisclosures, which
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focuses on the rate reconciliation and incometaxes paid.ASU 2023-09 requirespublic entities to disclose,onanannualbasis, a
tabular taxrate reconciliation usingbothpercentages andcurrencyamounts, broken out intospecified categories. Certain
reconciling itemsare furtherbrokenout by nature andjurisdictiontothe extent those items exceed aspecified threshold.
Additionally, all entities are requiredtodisclose incometaxes paid,net of refunds received, disaggregatedbyfederal, state/local,
and foreign taxesand by individual jurisdiction if theamount isatleast 5% of total incometax payments,net of refunds received.
The ASUalso requiresadditional qualitativedisclosures.ASU 2023-09 iseffective prospectively forannual periods beginning after
December15, 2024, andearly adoption and retrospective applicationare permitted. TheASU will impact the Company's income
tax disclosuresbeginning with the financial statements included inthe 2025 Annual ReportonForm10-K, but will have no impact
on its resultsof operations, cash flowsor financial condition.
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In November 2024,the FASB issued ASU2024-03, Income Statement - ReportingComprehensive Income -Expense Disaggregation
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Disclosures (Subtopic220-40):DisaggregationofIncomeStatement Expenses (DISE), which requirespublicentitiestodisaggregate
anyrelevantexpense captionpresented on the faceof the income statement withincontinuing operations into the following
requirednatural expensecategories, as applicable: (1) purchasesofinventory,(2) employee compensation,(3) depreciation,(4)
intangibleasset amortization, and (5)depreciation, depletionand amortization recognized as part of oil- andgas-producing
activitiesorother depletionexpenses. Thesedisclosures must be made in atabularformat in the footnotestothe financial
statements. Thenew standard does notchangethe requirements for the presentationof expensesonthe face of thestatement
of earnings. The ASUiseffective prospectively forannual reporting periodsbeginning after December15, 2026 and interim
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reporting periodsbeginning after December15, 2027, and earlyadoptionand retrospectiveapplication are permitted. TheASU
will impact the Company's expensedisclosures beginning with the financial statements included inthe 2027 Annual Reporton
Form10-K, but will have no impact on its resultsof operations, cash flowsor financial condition.

age24 ♦ 2024 Annual Report