Basis of Presentation

The accompanying unaudited consolidated financial statements of Martin Marietta Materials, Inc. (the "Corporation") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and to Article 10 of Regulation S-X. The Corporation has continued to follow the accounting policies set forth in the audited consolidated financial statements and related notes thereto included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 29, 2012. In the opinion of management, the interim financial information provided herein reflects all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results of operations, financial position and cash flows for the interim periods. The results of operations for the quarter ended March 31, 2012 are not indicative of the results expected for other interim periods or the full year. The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2011.

Consolidated Comprehensive Earnings/Loss and Accumulated Other Comprehensive Loss

Consolidated comprehensive earnings/loss for the Corporation consist of consolidated net earnings or loss; adjustments for the funded status of pension and postretirement benefit plans; foreign currency translation adjustments; and the amortization of the value of terminated forward starting interest rate swap agreements into interest expense.

Effective January 1, 2012, as required by recent accounting guidance, the Corporation changed its presentation of consolidated comprehensive earnings/loss. The Corporation no longer reports total consolidated comprehensive earnings/loss and related components of other comprehensive earnings/loss in its consolidated statement of total equity. Rather, the Corporation presents total consolidated comprehensive earnings/loss in its consolidated statements of earnings and comprehensive earnings for interim periods and in separate but consecutive consolidated statements of comprehensive earnings for annual periods. Prior year information has been recast to conform to this presentation approach.

Changes in accumulated other comprehensive loss, net of tax, are as follows:


	Three Months Ended March 31, 2012
	(Dollars in Thousands)

	Pension and Postretirement Benefit Plans		Foreign Currency		Unamortized Value of Terminated Forward Starting Interest Rate Swap		Accumulated Other Comprehensive Loss


Balance at beginning of period	$	(84,204)	$	5,076	$	(4,762)	$	(83,890)
Other comprehensive earnings, net of tax		1,548		199		152		1,899

Balance at end of period	$	(82,656)	$	5,275	$	(4,610)	$	(81,991)

The Corporation had net noncurrent deferred tax assets recorded in accumulated other comprehensive loss as follows:


	Three Months Ended March 31, 2012
	(Dollars in Thousands)

	Pension and Postretirement Benefit Plans		Unamortized Value of Terminated Forward Starting Interest Rate Swap		Net Noncurrent Deferred Tax Assets


Balance at beginning of period	$	55,161	$	3,116	$	58,277
Other comprehensive earnings, tax effect		(1,013)		(99)		(1,112)

Balance at end of period	$	54,148	$	3,017	$	57,165

Earnings (Loss) per Common Share

The numerator for basic and diluted earnings (loss) per common share is net earnings (loss) attributable to Martin Marietta Materials, Inc., reduced by dividends and undistributed earnings attributable to the Corporation's unvested restricted stock awards and incentive stock awards. The denominator for basic earnings (loss) per common share is the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per common share are computed assuming that the weighted-average number of common shares is increased by the conversion, using the treasury stock method, of awards to be issued to employees and nonemployee members of the Corporation's Board of Directors under certain stock-based compensation arrangements if the conversion is dilutive. For the three months ended March 31, 2012 and 2011, all such awards were antidilutive given the net loss attributable to Martin Marietta Materials, Inc.

The following table reconciles the numerator and denominator for basic and diluted earnings (loss) per common share:


	Three Months Ended March 31,
	2012		2011
	(In Thousands)
Net loss from continuing operations attributable to Martin Marietta Materials, Inc.	$	(36,140)	$	(15,958)
Less: Distributed and undistributed earnings attributable to unvested awards		(126)		(165)

Basic and diluted net loss available to common shareholders from continuing operations attributable to Martin Marietta Materials, Inc.		(36,266)		(16,123)
Basic and diluted net loss available to common shareholders from discontinued operations		(592)		(1,456)

Basic and diluted net loss available to common shareholders attributable to Martin Marietta Materials, Inc.	$	(36,858)	$	(17,579)


Basic weighted-average common shares outstanding		45,734		45,584
Effect of dilutive employee and director awards		--		--

Diluted weighted-average common shares outstanding		45,734		45,584