Page 80 - Proxy Statement - 2020

Appendix B / Non-GAAP Measures

The leverage ratio is our consolidated debt to consolidated EBITDA for the trailing twelve months as defined by the Company’s credit
agreement. The following is the calculation of the leverage ratio as of December 31, 2019:
(dollars in millions)
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 2.2x

B-2 2020 PROXY STATEMENT