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*		*Nine Months Ended*			*TTM*
	*September 30*		*September 30*		*September 30*
	2017	2016	2017	2016	2017	2016
Net earnings	$108,579	$142,024	$273,639	$306,890	$386,240	$395,778
Income tax expense	39,080	49,803	81,557	91,575	114,833	135,341
Interest expense, net	82,041	33,126	154,572	100,192	187,649	136,504
(Earnings) loss on discontinued operations, net of tax	1,571	3,113	(8,217)	7,451	(12,753)	12,122
EBIT	$231,271	$228,066	$501,551	$506,108	$675,969	$679,745
Depreciation, depletion, accretion and amortization	79,636	72,049	227,974	213,362	299,552	283,415
EBITDA	$310,907	$300,115	$729,525	$719,470	$975,521	$963,160
Gain on sale of real estate and businesses	$0	$0	$0	$0	($16,216)	($443)
Business interruption claims recovery, net of incentives	0	(214)	0	(11,177)	163	(11,177)
Charges associated with divested operations	114	1,071	16,515	16,768	16,730	17,121
Business development, net of termination fee	784	0	784	0	784	0
Asset impairment	0	0	0	10,506	0	10,506
Restructuring charges	0	0	1,942	320	1,942	762
Adjusted EBITDA	$311,805	$300,972	$748,766	$735,887	$978,924	$979,929
Depreciation, depletion, accretion and amortization	(79,636)	(72,049)	(227,974)	(213,362)	(299,552)	(283,415)
Adjusted EBIT	$232,169	$228,923	$520,792	$522,525	$679,372	$696,514


Adjusted EBITDA for 2016 has been revised to conform with the 2017 presentation which no longer includes an adjustment for routine business development charges. However, business development charges/credits that are deemed to be non-routine are included as an adjustment.

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*		*Nine Months Ended*			*TTM*
	*September 30*		*September 30*		*September 30*
	2017	2016	2017	2016	2017	2016
Diluted EPS	$0.82	$1.07	$1.97	$2.31	$2.77	$3.00
Items included in Adjusted EBITDA above	0.00	0.00	0.09	0.08	0.02	0.08
Interest charges associated with debt purchase	0.22	0.00	0.22	0.00	0.22	0.00
Alabama NOL carryforward valuation allowance	0.00	0.00	0.00	0.00	(0.04)	0.00
Foreign tax credit carryforward utilization	0.00	(0.05)	0.00	(0.05)	0.00	0.00
Adjusted Diluted EPS	$1.04	$1.02	$2.28	$2.34	$2.97	$3.08


The following reconciliation to the mid-point of the range of 2017 Projected EBITDA excludes adjustments for 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				$380
Income tax expense				130
Interest expense, net				190
Discontinued operations, net of tax				0
Depreciation, depletion, accretion and amortization				300
Projected EBITDA				$1,000

Vulcan Announces Third Quarter 2017 Results