ROIC means the Company’s return on Invested Capital calculated as a percentage for the twelve month period ending on the last day of the Performance Period by dividing net operating profit after tax by Invested Capital. For the purposes of calculating ROIC under this Agreement, “net operating profit” shall be adjusted to exclude the impact of all restructuring, foreign exchange, impairments, legal settlements, employee separation costs, product liability charges, pension plan and SERP terminations and retroactive tax law changes to the extent such items were not contemplated and included in the Company’s 2013-2018 Strategic Plan, upon which the ROIC goals were based.
ROIC means return on invested capital calculated as (A) average (i) net income plus (ii) interest expense times one minus the highest marginal federal corporate tax rate, divided by (B) (i) average debt (including current maturities of long-term debt) plus (ii) average stockholders’ equity, plus the postretirement amounts determined at year-end as included in the Corporation’s Statement of Stockholders’ Equity.
ROIC means (x) GAAP net income as reported by the Company with the following adjustments: (1) after-tax interest will be added back and (2) the Committee may adjust for extraordinary, infrequent or unusual items as defined by GAAP and as agreed to by the external auditors of the Company divided by (y) the average of the beginning and ending Company debt plus shareholder equity with the average calculated using the eight (8) full calendar quarters of financial data commencing January 1, 2014 and ending December 31, 2015.
Examples of ROIC in a sentence
The performance measures will be weighted as follows: ROIC 75% and Revenues 25%.
The relative weighting for each metric will be applied to such payout rates, and the results will be aggregated, resulting in an aggregate payout rate (the “Payout Rate”).2 To illustrate, if Company performance results in ROIC and Revenues as set forth below, the payout would be calculated as follows: Payment of vested Performance Units based on the Payout Rate will be made in the period provided for in Section 2(b) of this Agreement.
The Performance Units shall vest and become non-forfeitable based on the Company’s achievement of specified levels of ROIC and Revenues (each as defined below) for the Performance Period as set forth in the chart below: ROIC PerformancePayout50.0%62.5%75.0%87.5%100.0%125.0%150.0%175.0%200.0% Revenue Performance Payout50.0%100.0%150.0%200.0% Following the end of the Performance Period, the Committee will determine actual results for each of the metrics described above (the “Final Committee Determination”).
More Definitions of ROIC
ROIC means return on invested capital, which is calculated by dividing (a) operating profit by (b) average invested capital over the applicable period. In calculating ROIC for the Company or a Peer Group company, the Committee may adjust for reported special, non-recurring or non-operating items or the effects of mergers, acquisitions or extraordinary transactions. The Committee may establish rules for calculating ROIC for purposes of ensuring consistency in calculations across the Company and the Peer Group.
ROIC means, for a fiscal year, the Company’s return on invested capital, as defined by the Committee during the first 90 days of such fiscal year.
ROIC means (a) the result of (x) the sum of (i) the Company’s operating income, plus (ii) depreciation and amortization, plus (iii) minimum rentals, minus (y) taxes, divided by (b) the result of (x) the sum of the averages of: (i) total assets, plus (ii) accumulated depreciation and amortization, minus (y) (i) cash, minus (ii) goodwill, minus (iii) accounts payable, minus (iv) other payables, minus (v) accrued liabilities, plus (vi) 8x minimum rentals (with all of the foregoing terms as determined per the Company’s financial statements), but (1) shall exclude the impact of (a) any costs, fees and expenses directly related to the consideration, negotiation, preparation, or consummation of any asset sale, merger or other transaction that results in a Change in Control (within the meaning of the Plan) of the Company or any offering of Company common stock or other security; (b) any gain or loss recognized as a result of derivative instrument transactions or other hedging activities; (c) any gains or losses associated with the early retirement of debt obligations; (d) charges resulting from significant natural disasters; and (e) any significant gains or losses associated with the Company’s LIFO computation; and (2) unless the Committee disallows any such item, shall also exclude (a) non-cash asset impairments; (b) any significant loss as a result of an individual litigation, judgment or lawsuit settlement (including a collective or class action lawsuit and security holder lawsuit, among others); (c) charges for business restructurings; (d) losses due to new or modified tax or other legislation or accounting changes enacted after the beginning of the Performance Period; (e) significant tax settlements; and (f) any significant unplanned items of a non-recurring or extraordinary nature.
ROIC means return on invested capital and is computed as the sum of Holdings’ net income and after-tax net interest expense for the Plan Year in question, which sum is divided by Average Invested Capital for the Plan Year in question, all as determined in accordance with GAAP and as set forth in Holdings’ audited consolidated financial statements for the Plan Year.
ROIC means the Company’s return on invested capital calculated by dividing NOPAT by Invested Capital.
ROIC means Return on Invested Capital, an investment return measure which is established for the attainment of a predetermined target over a three year period.
ROIC means the adjusted net earnings before interest and income taxes for the applicable period divided by the average invested capital. For this purpose, “average invested capital” means (i) the shareholders’ equity plus long-term debt of the Corporation as at the beginning of the applicable period, plus (ii) the shareholders’ equity plus long-term debt of the Corporation as at the end of the applicable period, divided by two.