Page 78 - 2019 Annual Report

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
Capital Structure and Resources
Long-term debt, including current maturities, was $2.77 billion at December 31, 2019, and was principally in the form of
publicly-issued long-term notes and debentures.
The Company, through a wholly-owned special-purpose subsidiary, has a $400.0 million trade receivable securitization facility
(the “Trade Receivable Facility”). In September 2019, the Company extended the maturity of the Trade Receivable Facility to
September 23, 2020. The Trade Receivable Facility is backed by eligible trade receivables, as defined. Borrowings are limited
to the lesser of the facility limit or the borrowing base, as defined. These receivables are originated by the Company and then
sold to the wholly-owned special-purpose subsidiary. The Company continues to be responsible for the servicing and
administration of the receivables purchased by the wholly-owned special-purpose subsidiary. The Trade Receivable Facility
contains a cross-default provision to the Company’s other debt agreements.
The $700.0 million five-year senior unsecured revolving facility (the “Revolving Facility”), which matures in December 2024,
requires the Company’s ratio of consolidated debt-to-consolidated EBITDA, as defined, for the trailing twelve month period
(the “Ratio”) to not exceed 3.50x as of the end of any fiscal quarter, provided that the Company may exclude from the Ratio
debt incurred in connection with certain acquisitions during the quarter or the three preceding quarters so long as the Ratio
calculated without such exclusion does not exceed 3.75x. Additionally, if there are no amounts outstanding under the
Revolving Facility and the Trade Receivable Facility, consolidated debt, including debt for which the Company is a co-
borrower, may be reduced by the Company’s unrestricted cash and cash equivalents in excess of $50.0 million, such
reduction not to exceed $200.0 million, for purposes of the covenant calculation.

At December 31, 2019, the Company’s ratio of consolidated debt-to-consolidated EBITDA, as defined in the agreement
governing the Revolving Facility (the “Credit Agreement”), for the trailing twelve month EBITDA was 2.16 times and was
calculated as follows:

Twelve-Month
Period
January 1, 2019 to
(dollars in millions) December 31, 2019
Net earnings attributable to Martin Marietta $ 611.9

Add back:
Interest expense 129.3
Income tax expense 136.3
Depreciation, depletion and amortization expense and nonconsolidated equity
affiliate adjustment 383.4
Stock-based compensation expense 34.1
Deduct:

Interest income (0.4 )
Consolidated EBITDA, as defined by the Company's Credit Agreement $ 1,294.6
Consolidated debt, as defined and including debt for which the Company is a
co-borrower, at December 31, 2019 $ 2,793.8
Consolidated debt-to-consolidated EBITDA, as defined by the Company's
Credit Agreement, at December 31, 2019 for trailing twelve month EBITDA 2.16x

Total equity was $5.35 billion at December 31, 2019. At that date, the Company had an accumulated other comprehensive
loss of $145.8 million, primarily resulting from unrecognized actuarial losses related to pension benefits.
Pursuant to authority granted by its Board of Directors, the Company can repurchase up to 20 million shares of common
stock. As of December 31, 2019, the Company had 13.7 million shares remaining under the repurchase authorization. The
Company expects to allocate capital for additional share repurchases based on available excess free cash flow, defined as
operating cash flow less capital expenditures and dividends, subject to a leverage target (consolidated debt-to-consolidated
EBITDA) of 2.0 times to 2.5 times and with consideration of other capital needs. Future repurchases are expected to be
carried out through a variety of methods, which may include open market purchases, privately negotiated transactions, block
trades, accelerated share purchase transactions or any combination of such methods. Share repurchases will be executed
based on then-current business and market factors so the actual return of capital in any single quarter may vary. The
repurchase program may be modified, suspended or discontinued by the Board of Directors at any time without prior notice.

Annual Report ♦ Page 76 Celebrating 25 Years as a Public Company