Capital Efficiency definition
Examples of Capital Efficiency in a sentence
For purposes of illustration, if the Company achieves the threshold Increase in Sales and Return on Invested Capital but does not achieve the threshold Increase in Earnings Per Share, each as set forth in the applicable Table B attached hereto, Executive will receive a Company Sales Growth Bonus and Company Capital Efficiency Bonus but will not receive a Company Earnings Growth Bonus for the Plan Year.
SUPPLIER agrees to aggressively work with BUYER to develop strategies which will lead to ongoing reductions in costs, Leadtimes and cycle times, yields and improvements in Capital Efficiency.
For purposes of illustration, if the Company achieves the threshold Sales Growth and Gross Profit Dollars and Capital Efficiency but does not achieve the threshold fully diluted earnings per share, each as set forth in the applicable Table B attached hereto, Executive will receive a Company Sales Growth and Gross Profit Dollars Bonus and Company Capital Efficiency Bonus but will not receive a Company Earnings Bonus for the Plan Year.
For purposes of determining whether there will be a penalty incurred under the Capital Efficiency Mechanism set forth in this section, there shall be a range above the Capital Spending Target equal to an overspend of $2,500,000 (equivalent to a simplified revenue requirement of $500,000) (Deadband).
Assume the following facts: (i) the Target Number of Units is 15,000; (ii) the Company’s actual Cumulative Net Income for the Performance Period was half-way between the Minimum Amount and the Target Amount, resulting in a Performance Factor for Cumulative Net Income of 50%; and (iii) the Company’s actual Working Capital Efficiency for the Performance Period was half-way between the Minimum Amount and the Target Amount, resulting in a Performance Factor for Working Capital Efficiency of 50%.
The Capital Efficiency Mechanism set forth in this section shall have no effect on the implementation of the annual ISR Plan spending plan and the operation of the reconciliation of actual ISR Plan activity under the ISR Plan.
The reward earned or penalty incurred from the calculation of the Capital Efficiency Mechanism in this section shall be capped at $2 million.
ISR-eligible capital additions for Rate Year 2 and Rate Year 3 will be addressed in the ordinary course outside of base distribution rates through the ISR Plan and included for recovery in future ISR Plans, subject to the Capital Efficiency mechanism set forth in Section 28 to this Settlement Agreement.
SUPPLIER agrees to aggressively work with BUYER to develop strategies which will lead to ongoing reductions in costs, Lead-times and cycle times, yields and improvements in Capital Efficiency.
The implementation of the Capital Efficiency Mechanism set forth in this section shall have no effect on the authority of the Division and the PUC to review the prudency of Company decisions under the ordinary course of the ISR Plan process or any other rate proceeding.