Page 77 - 2020 Sustainability Report

APPENDIX

APPENDIX

Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to
provide them with an alternative method for assessing our financial condition and operating results. These measures are
not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial
measures used by other companies.

Earnings before interest; income taxes; depreciation, depletion and amortization; and the earnings/ loss from
nonconsolidated equity affiliates (Adjusted EBITDA) is an indicator used by the Company and investors to evaluate the
Company’s operating performance from period to period. Adjusted EBITDA is not defined by generally accepted
accounting principles and, as such, should not be construed as an alternative to earnings from operations, net earnings,
or operating cash flow. However, the Company’s management believes that Adjusted EBITDA may provide additional
information with respect to the Company’s performance. Because Adjusted EBITDA excludes some, but not all, items that
affect net earnings and may vary among companies, Adjusted EBITDA as presented by the Company may not be
comparable to similarly titled measures of other companies.

The following table presents a reconciliation of net earnings attributable to Martin Marietta to Adjusted EBITDA (in millions):

Years ended December 31, 2020 2019

Net Earnings Attributable to Martin Marietta $721.0 $611.9
Add back:

Interest expense, net of interest income 117.6 128.9

Income tax expense for
controlling interests 168.2 136.3

Depreciation, depletion and
amortization expense and earnings/loss 386.0 377.4
from nonconsolidated equity affiliates
Adjusted EBITDA $1,392.8 $1,254.5

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