As required by Item 402(v) of Regulation S-K, we are providing the following information regarding the relationship between executive compensation and our financial performance for each of the last four completed calendar years. In determining the “compensation actually paid” to our named executive officers, we are required to make various adjustments to amounts that have been previously reported in the Summary Compensation Table in previous years, as the SEC’s valuation methods for this section differ from those required in the Summary Compensation Table. The table below summarizes compensation values both previously reported in our Summary Compensation Table, as well as the adjusted values required in this section for the 2020, 2021, 2022 and 2023 calendar years.


								Value of Initial Fixed $100 Investment Based on:
Year	Summary Compensation Table Total for PEO(1) ($)	Compensation Actually Paid to PEO(1)(2)(3) ($)		Average Summary Compensation Table Total for Non-PEO NEOs(4) ($)		Average Compensation Actually Paid to Non-PEO NEOs(2)(3)(4) ($)		Company Total Shareholder Return ($)	Peer Group Total Shareholder Return(5) ($)	Net Income ($ in millions)		Adj. EBITDA excl. LIFO(6) ($ in millions)



2023	$6,476,248		$7,874,337		$1,763,051		$2,275,550	$299.90	$221.59		146.4	231.1


2022	$8,898,112		$10,124,161		$1,999,669		$2,480,774	$257.23	$163.52		391.5	582.0


2021	$5,319,454		$8,913,561		$1,405,832		$2,029,082	$217.77	$142.15		295.4	860.6


2020	$1,836,307		$2,493,004		$573,271		$561,577	$113.29	$106.54		(65.3)	125.7

(1)

Edward J. Lehner (President & CEO) served as the principal executive officer ("PEO") for the full year of each year shown.

PEO Total Compensation Amount

^[1]

$ 6,476,248

$ 8,898,112

$ 5,319,454

^[2]

$ 1,836,307

^[3]

Adjustment To PEO Compensation, Footnote

(2)

Compensation Actually Paid (CAP) is an amount calculated using a formula prescribed by the SEC based on total compensation as disclosed in the “Summary Compensation Table (SCT)”, with specified adjustments for pensions and stock-based compensation. To calculate CAP, the following amounts were deducted from and added to SCT total compensation:


PEO SCT Total to CAP Reconciliation:


Year	Salary	Bonus and Non- Equity Incentive Compensation(i)	Other Compensation(ii)	SCT Total	Deductions from SCT Total (iii)	Additions to SCT Total (iv)	CAP



2023	$1,150,000	$1,250,480	$73,968	$6,476,248	-$4,001,800	$5,399,889	$7,874,337


2022	$1,037,500	$3,950,000	$58,412	$8,898,112	-$3,852,200	$5,078,249	$10,124,161


2021	$937,500	$2,437,500	$19,504	$5,319,454(v)	-$1,924,950	$5,519,057	$8,913,561


2020(vi)	$754,615	$506,250	$16,842	$1,836,307	-$558,600	$1,215,297	$2,493,004


Adjustments to Determine Compensation "Actually Paid" for CEO	2023	2022	2021	2020



Deduction for Change in the Actuarial Present Values reported under the "Change in Pension Value and Nonqualified Deferred Compensation Earnings" Column of the SCT	—	—	—	—


Increase for "Service Cost" for Pension Plans	—	—	—	—


Increase for "Prior Service Cost" for Pension Plans	—	—	—	—


Deduction for Amounts Reported under the "Stock Awards" Column in the SCT	$(4,001,800)	$(3,852,200)	$(1,789,200)	$(558,600)


Deduction for Amounts Reported under the "Option Awards" Column in the SCT	—	—	$(135,750)	—


Increase for Fair Value of Awards Granted during year that Remain Unvested as of Year end	$3,814,800	$3,328,600	$2,946,552	$1,436,292


Increase for Fair Value of Awards Granted during year that Vest during year	—	—	—	—


Increase/deduction for Change in Fair Value from prior Year-end to current Year-end of Awards Granted Prior to year that were Outstanding and Unvested as of Year-end	$896,798	$784,149	$2,213,331	$409,271


Increase/deduction for Change in Fair Value from Prior Year-end to Vesting Date of Awards Granted Prior to year that Vested during year	$688,291	$965,500	$347,718	$(630,266)


Deduction of Fair Value of Awards Granted Prior to year that were Forfeited during year	—	—	—	—


Increase based upon Incremental Fair Value of Awards Modified during year	—	—	—	—


Increase based on Dividends or Other Earnings Paid during year prior to Vesting Date of Award	—	—	$11,456	—


Total Adjustments	$1,398,089	$1,226,049	$3,594,107	$656,697

Non-PEO NEO Average Compensation Actually Paid Amount

^[4],[5],[6]

$ 2,275,550

2,480,774

2,029,082

561,577

^[3]

Equity Valuation Assumption Difference, Footnote

(3)

The assumptions used in calculating the fair value of unvested stock-based awards and outstanding option awards as of December 31st of each year (or the vest date if earlier) were consistent with those used to calculate the grant date fair value, except that the expected level of achievement of any performance criteria applicable to outstanding PSUs was updated based on then-current projections taking into account actual performance through the December 31st of the applicable year (or the vest date if earlier) and the stock price was determined for all equity compensation based on the value on December 31st of the applicable year (or the vest date if earlier). The amounts shown do not constitute a promise or commitment by the Company to pay and final outcomes are likely to differ.

Compensation Actually Paid vs. Company Selected Measure

Compensation Actually Paid

The following graphs show the relationships between compensation actually paid to our CEO and non-CEO named executive officers versus select measures:

        
(1)Net income is not used by management to evaluate business or executive performance or allocate resources.
(2)Adj. EBITDA, excl. LIFO is used by management to evaluate performance and allocate resources. The Company believes that the presentation of Adj. EBITDA, excl. LIFO, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. For our named executive officers, 50% of their bonus opportunity for 2023 was based on Company (“corporate”) Adj. EBITDA, excl. LIFO and the remaining 50% was based on corporate EVA for 2023. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is included in Appendix A to this proxy statement.

Tabular List, Table

The following table lists the most important performance measures that the Committee used to link compensation actually paid to the named executive officers to Company performance for the most recently completed fiscal year.

      Most Important Performance Measures

     

      Cumulative Adjusted EBITDA(1)(2)

     

      Cumulative Managerial Controllable Free Cash Flow(1)

     

      Economic Value Added (EVA)(2)

     

(1)

Cumulative Adjusted EBITDA and Cumulative Managerial Controllable Free Cash Flow are the performance measures used for performance units (PSUs), which represents at least two-thirds of each named executive officers' LTI awards, as discussed in “Long-Term Incentive Plan (“LTIP”).

(2)

For our named executive officers, 50% of their bonus opportunity for 2023 was based on Company (“corporate”) Adj. EBITDA, excl. LIFO and the remaining 50% was based on corporate EVA for 2023.

Peer Group Total Shareholder Return Amount

^[7]

$ 221.59

$ 163.52

$ 142.15

$ 106.54

PEO Name

Edward J. Lehner

Name

Cumulative Adjusted EBITDA(1)(2)

Name

Cumulative Managerial Controllable Free Cash Flow(1)