facility are determined by our leverage ratio. The facility requires us to maintain two financial covenants, a leverage ratio test and an interest coverage test, and we were in compliance with
the covenants as of March 31, 2019.
The facility backs up commercial paper and credit line borrowings. As a result of the long-term nature of this
facility, our commercial paper and credit line borrowings, as well as drawings under the facility, are classified as long-term debt. At March 31, 2019, we had available borrowing capacity of $335.5 million under this facility. We believe
the combination of available borrowing capacity and operating cash flows will provide sufficient funds to finance our existing operations for the foreseeable future.
Our total debt increased $63.0 million from $221.4 million at December 31, 2018 to $284.4 million at March 31, 2019 to fund our share
repurchase activity and dividend payments. Our leverage, as measured by the ratio of total debt to total capitalization, calculated excluding operating lease liabilities, was 14.0 percent at the end of the first quarter in 2019, compared with
11.4 percent at the end of last year.
Our pension plan continues to meet all funding requirements under ERISA regulations. We are not required to
make a contribution and we do not plan to make any voluntary contributions to the plan in 2019.
In December 2018, our Board of Directors approved adding
5 million shares of common stock to an existing discretionary share repurchase authority. Under the share repurchase program, our common stock may be purchased through a combination of a Rule
10b5-1
automatic trading plan and discretionary purchases in accordance with applicable securities laws. The stock repurchase authorization remains effective until terminated by our Board of Directors, which may occur at any time, subject to the parameters
of any Rule
10b5-1
automatic trading plan that we may then have in effect. During the first three months of 2019, we repurchased 911,800 shares of our stock at a total cost of $45.6 million. At
March 31, 2019, we had 5,163,453 million shares remaining on the board share repurchase authority. Depending on factors such as stock price, working capital requirements and alternative investment opportunities, we expect to spend
approximately $200 million on stock repurchases in 2019 through a combination of our Rule
10b5-1
automatic trading plan and opportunistic repurchase in the open market.
On April 9, 2019, our Board of Directors declared a regular quarterly cash dividend of $0.22 per share on our Common Stock and Class A common stock.
The five-year compound annual growth rate of our dividend is approximately 30 percent. The dividend is payable on May 15, 2019 to shareholders of record on April 30, 2019.
Non-GAAP
Financial Information
We provide
non-GAAP
measures (adjusted earnings, adjusted earnings per share (EPS) and adjusted segment earnings) that
exclude restructuring and impairment expenses in 2018.
We believe that the measures of adjusted earnings, adjusted EPS and adjusted segment earnings
provide useful information to investors about our performance and allow management and our investors to better compare our performance period over period.
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