		Appendix 3
Reconciliation of Non-GAAP Measures (Continued)

GAAP does not define "Earnings Before Interest, Taxes, Depreciation and Amortization" (EBITDA) and it should not be considered as an alternative to earnings measures defined by GAAP. We present this metric for the convenience of investment professionals who use such metrics in their analyses and for shareholders who need to understand the metrics we use to assess performance. We use this metric to assess the operating performance of our business and for a basis of strategic planning and forecasting as we believe that it closely correlates to long-term shareholder value. We do not use this metric as a measure to allocate resources. We adjust EBITDA for certain items to provide a more consistent comparison of earnings performance from period to period. Reconciliation of this metric to its nearest GAAP measure is presented below:

EBITDA and Adjusted EBITDA
	(in thousands)
	*Three Months Ended*		*Six Months Ended*
	*June 30*		*June 30*
	2017	2016	2017	2016
Net earnings	$120,139	$124,709	$165,060	$164,866
Income tax expense	45,652	53,241	42,477	41,772
Interest expense, net	38,455	33,333	72,531	67,065
(Earnings) loss on discontinued operations, net of tax	(8,390)	2,532	(9,788)	4,338
EBIT	$195,856	$213,815	$270,280	$278,041
Depreciation, depletion, accretion and amortization	76,775	71,908	148,339	141,314
EBITDA	$272,631	$285,723	$418,619	$419,355
Gain on sale of real estate and businesses	$0	$0	$0	$0
Business interruption claims recovery, net of incentives	0	(10,962)	0	(10,962)
Charges associated with divested operations	15,023	3,847	16,401	15,697
Fair market value adjustments for acquired inventory	0	0	0	0
Asset impairment	0	860	0	10,506
Restructuring charges	0	0	1,942	320
Adjusted EBITDA	$287,654	$279,468	$436,962	$434,916
Depreciation, depletion, accretion and amortization	(76,775)	(71,908)	(148,339)	(141,314)
Adjusted EBIT	$210,879	$207,560	$288,623	$293,602

Adjusted EBITDA for 2016 has been revised to conform with the 2017 presentation which no longer includes an adjustment for charges associated with business development. We no longer exclude charges associated with business development as they are deemed to represent normal recurring operating expenses.

Similar to our presentation of Adjusted EBITDA, we present Adjusted Diluted EPS to provide a more consistent comparison of earnings performance from period to period.

Adjusted Diluted EPS from Continuing Operations (Adjusted Diluted EPS)

	*Three Months Ended*		*Six Months Ended*
	*June 30*		*June 30*
	2017	2016	2017	2016
Diluted EPS	$0.83	$0.93	$1.15	$1.24
Items included in Adjusted EBITDA above	0.07	(0.03)	0.09	0.08
Alabama NOL carryforward valuation allowance	0.00	0.00	0.00	0.00
Foreign tax credit carryforward impairment	0.00	0.00	0.00	0.00
Adjusted Diluted EPS	$0.90	$0.90	$1.24	$1.32

The following reconciliation to the mid-point of the range of 2017 Projected EBITDA excludes adjustments for the future outcome of legal proceedings, charges associated with divested operations, asset impairment and other unusual gains and losses. Due to the difficulty of forecasting the timing or amount of items that have not yet occurred, are out of our control, or cannot be reasonably predicted, we are unable to estimate the significance of this unavailable information.

2017 Projected EBITDA
			(in millions)
				Mid-point
Net earnings				$430
Income tax expense				170
Interest expense, net				190
Discontinued operations, net of tax				0
Depreciation, depletion, accretion and amortization				300
Projected EBITDA				$1,090

Vulcan Announces Second Quarter 2017 Results