2022 Corporate Responsibility Report
Capital Structure and Allocation
Capital Structure
Optimizes financial leverage benefits and financial flexibility
Target 2-2.5x leverage¹
$ billions
Cash
3/31/2024
Rate
1.2
nm
Maturity
nm
Revolver
0.3
Term SOFR + 135
2029
•
~$200M cash is needed to run the business
2028 Bonds
0.8
4.50%
2028
Free Cash Flow deployment
•
Expect to offset equity dilution
Opportunistic, price sensitive stock repurchases
Strategic value-enhancing tuck-in acquisitions
No current plans for material debt repayments
2029 Bonds
0.6
3.63%
2029
2030 Bonds
0.8
3.75%
2030
Total Debt
2.5
5.06%
Revolver Unused Capacity
0.7
15 bps
Interest Rate Swaps
0.4
2.98%
% Debt With Fixed Rates
100%
Leverage Ratios
1Q 2024
Bank Covenant
Share Repurchases $ millions
1,656
1,044
Gross Debt/Adjusted EBITDA1
Net Debt/Adjusted EBITDA
Consolidated Leverage Ratio 2
1.7x
na
0.8x
na
1.4x
≤ 4.0x
432
509
182
261
59
-
199
-
176
41
606
225
Debt Ratings
Fitch
S&P
T
T
2013 2014 2015 2016 2017 2018 2019 2020 2021
2022
2023
YTD
Moody's
Investment Grade Ratings
BBB
BBB-
Baa3
2024
~$830M repurchase authorization remaining as of 3/31/2024
1 Gross debt/Trailing twelve month Adjusted EBITDA.
2
26
As defined in the Company's 2024 Credit Agreement.
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