Page 62 - 2019 Sustainability Report

APPENDIX

Non-GAAP financial measures disclosed by management to evaluate the Company’s operating performance from
are provided as additional information to investors in order period to period. Adjusted EBITDA is not defined by
to provide them with an alternative method for assessing generally accepted accounting principles and, as such,
our financial condition and operating results. These should not be construed as an alternative to earnings from
measures are not in accordance with, or a substitute for, operations, net earnings, or operating cash flow. However,
GAAP, and may be different from or inconsistent with non- the Company’s management believes that Adjusted
GAAP financial measures used by other companies. EBITDA may provide additional information with respect
Earnings before interest; income taxes; depreciation, to the Company’s performance. Because Adjusted EBITDA
depletion and amortization (EBITDA); the noncash earnings/ excludes some, but not all, items that affect net earnings
loss from nonconsolidated equity affiliates; the impact of and may vary among companies, Adjusted EBITDA as
Bluegrass Materials Company (Bluegrass) acquisition-related presented by the Company may not be comparable to
expenses, net; the impact of selling acquired inventory after similarly titled measures of other companies.
the markup to fair value as part of acquisition accounting; The following table presents a reconciliation of net
and the asset and portfolio rationalization charge (Adjusted earnings attributable to Martin Marietta to Adjusted
EBITDA) is an indicator used by the Company and investors EBITDA (in millions):

YEARS ENDED DECEMBER 31, 2019 2018 2017 2010
Net Earnings Attributable to Martin Marietta $611.9 $470.0 $713.3 $97.0

Add back (deduct):

Interest expense 128.9 137.1 91.5 68.5

Income tax expense (benefit) for 136.3 105.6 (94.4) 29.3
controlling interests

Depreciation, depletion
and amortization expense and 377.4 328.4 282.4 182.3
earnings/loss from nonconsolidated
equity affiliates

Bluegrass acquisition-related - 13.5 8.6 -
expenses, net

Impact of selling acquired inventory
after markup to fair value as part of - 18.7 - -
acquisition accounting

Asset and portfolio - 18.8 - -
rationalization charge
Adjusted EBITDA $1,254.5 $1,092.1 $1,001.4 $377.1

62 / MARTIN MARIETTA / SUSTAINABILITY REPORT / 2019