Return on Average Capital Employed definition
Return on Average Capital Employed means NOPAT divided by Average Capital Employed. NOPAT means the Company’s Adjusted Operating Income, as reported on the Company’s audited financial statements, multiplied by .7 to account for an assumed 30% income tax rate, and further adjusted to exclude earnings (or losses) attributable to minority shareholders. Adjusted Operating Income equals operating income plus or minus Permitted Adjustments. Average Capital Employed means the Company’s total debt plus shareholders’ equity, as reported on the Company’s audited financial statements, excluding from shareholders’ equity any equity attributable to minority shareholders. The NOPAT and Capital Employed calculations shall exclude the cumulative effect of changes in generally accepted accounting principles. Annual ROACE shall be averaged over five points (i.e., the last day of each fiscal quarter and prior fiscal year-end). Permitted Adjustments may include: · Fees and expenses for restructuring consultants or financial advisors · Employee severance, outplacement and related benefits · Employee insurance and benefits continuation · Contractual salary continuation for terminated employees · Equipment transfers and facility preparation · Environmental services (e.g. plant clean-up prior to sale) · Fees and expenses for transaction advisors · Integration expenses · Other incremental costs and charges that are non-recurring and directly related to the transaction · Unusual, non-recurring or extraordinary cash and non-cash charges or income · The cash flow impact of the timing of insurance reimbursements or settlements · Cash proceeds from the sale of facilities or other assets In addition, the calculation of ROACE will be adjusted if necessary for the impact of the adoption of new U.S. GAAP accounting standards and for significant changes in the Company’s accounting methods.
Return on Average Capital Employed means NOPAT divided by Capital Employed. NOPAT means the Company’s earnings (or losses) from continuing operations before income taxes plus interest expense, as reported on the Company’s audited financial statements, adjusted to exclude: a) exchange gains (or losses) on intercompany loans and b) all other unusual, non-recurring or extraordinary non-cash charges, as determined in the discretion of the Committee, and cash restructuring and repositioning charges in excess of $4,000,000 multiplied by .7 to account for an assumed 30% income tax rate, and further adjusted to exclude earnings (or losses) attributable to minority shareholders. Capital Employed means the Company’s total debt plus shareholders’ equity, as reported on the Company’s audited financial statements. The NOPAT and Capital Employed calculations shall exclude the cumulative effect of changes in generally accepted accounting principles (“GAAP”). Notwithstanding the above, the Officer Nomination and Compensation Committee shall retain negative discretion to make adjustments to reduce the number of Common Stock to be issued under this Performance Stock Award. The calculation of ROACE shall be based upon a three-year average ROACE for fiscal 2012 – fiscal 2014. Annual ROACE shall be averaged over five points (i.e. fiscal quarters and fiscal year end).
Return on Average Capital Employed means NOPAT divided by Capital Employed. NOPAT means the Company’s adjusted operating income, as reported on the Company’s audited financial statements, adjusted to exclude all unusual, non-recurring or extraordinary non-cash and cash charges and cash restructuring and repositioning charges, multiplied by .7 to account for an assumed 30% income tax rate, and further adjusted to exclude earnings (or losses) attributable to minority shareholders. Capital Employed means the Company’s total debt plus shareholders’ equity, as reported on the Company’s audited financial statements. The NOPAT and Capital Employed calculations shall exclude the cumulative effect of changes in generally accepted accounting principles. Annual ROACE shall be averaged over five points (i.e., the last day of each fiscal quarter and fiscal year-end).
Examples of Return on Average Capital Employed in a sentence
The Performance Goals for this Performance Stock Award are: Return on Average Capital Employed (“ROACE”) and Average Annual Revenue Growth (“Revenue Growth”), with each having a 50% weight.
The Performance Goals for this Performance Stock Award are: Return on Average Capital Employed ("ROACE") and Average Annual Revenue Growth ("Revenue Growth"), with each having a 50% weight.
The Performance Goals for this Performance Stock Award are Return on Average Capital Employed (“ROACE”), Cumulative Revenue and European ROACE (as specified in further detail below), with ROACE having a 50% weight and Cumulative Revenue and European ROACE having an equal 25% weight each.
The Performance Goals for this Performance Stock Award are Return on Average Capital Employed (“ROACE”) and Change in Economic Profit (as specified in further detail below), with each having an equal 50% weight.
The Performance Goals for this Performance Stock Award are: Return on Average Capital Employed (“ROACE”), Average Annual Revenue Growth (“Revenue Growth”), and Modine Asia Operating Income Improvement (“Asia Improvement”) (as specified in further detail below), with ROACE and Revenue Growth each having a 37.5% weight and Asia Improvement having a 25% weight.
More Definitions of Return on Average Capital Employed
Return on Average Capital Employed means NOPAT divided by Capital Employed. NOPAT means the Company’s adjusted operating income, as reported on the Company’s audited financial statements, adjusted to exclude all unusual, non-recurring or extraordinary non-cash charges and cash restructuring and repositioning charges, as determined in the discretion of the Committee, multiplied by .7 to account for an assumed 30% income tax rate, and further adjusted to exclude earnings (or losses) attributable to minority shareholders. Capital Employed means the Company’s total debt plus shareholders’ equity, as reported on the Company’s audited financial statements. The NOPAT and Capital Employed calculations shall exclude the cumulative effect of changes in generally accepted accounting principles. Annual ROACE shall be averaged over five points (i.e., the last day of each fiscal quarter and fiscal year-end).
Return on Average Capital Employed. ROACE’) means Group earnings before interest and tax as adjusted for exceptional items and non-trading items for the Accounting Period taken as a percentage of Average Group Net Assets. For the purposes of this calculation Group Net Assets are defined as total consolidated assets less total liabilities as shown in the annual report issued by the Company for such accounting period excluding net debt, derivative financial instruments, and pension surplus or deficit. Average Group Net Assets is the simple average of the opening and closing Group Net Assets but may also be adjusted to reflect the average level of acquisition investment spend and the average carrying value of assets under construction during the accounting period;