ENGINE ESCALATION. The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for General Electric Aircraft GEnx series engines and all accessories, equipment and parts provided by the engine manufacturer (Engines). The adjustment in Engine Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: [*****] [*****] Where: [*****] [*****] [*****] [*****] [*****] [*****] [*****] Where: [*****] [*****] [*****] is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics, Employment Cost Index for NAICS Aircraft Manufacturing - Wages and Salaries (Series ID CIU2023211000000I), calculated by establishing a three (3) month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be used for the months of January, February and March; the value released for the second quarter will be used for the months of April, May and June; the value released for the third quarter will be used for the months of July, August and September; the value released for the fourth quarter will be used for the months of October, November and December. “[***]” This information is subject to confidential treatment and has been omitted and filed separately with the commission [*****] [*****] [*****] Where: [*****] [*****] [*****] is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics, Producer Prices and Price Index - Industrial Commodities Index (BLS Series ID WPU03THRU15), calculated as a three (3) month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to the month of scheduled delivery of the applicable Aircraft. [*****] [*****] Where: [*****] is the number of calendar months which have elapsed from the Airframe Price Base Year and month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. The entire calculation of [*****] will be rounded to four (4) places, and the final value of B will be rounded to the nearest dollar. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the value of [*****]. NOTE: (i) In determining the values of [*****], all calculations and resulting values will be expressed as a decimal rounded to the nearest ten-thousandth. (ii) [*****] is the numeric ratio attributed to labor in the Engine Price Adjustment formula. “[***]” This information is subject to confidential treatment and has been omitted and filed separately with the commission (iii) [*****] is the numeric ratio attributed to materials in the Engine Price Adjustment formula. (iv) The [*****]are the actual average values reported by the U.S. Department of Labor, Bureau of Labor Statistics. The actual average values are calculated as a three (3) month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to the Engine Price base year. The applicable base year and corresponding denominator is provided by Boeing in Table 1 of this Purchase Agreement. (v) The final value of [*****] will be rounded to the nearest dollar. (vi) The Engine Price Adjustment will not be made if it will [*****] Engine Price.
Appears in 1 contract
Samples: Purchase Agreement (China Southern Airlines Co LTD)
ENGINE ESCALATION. The Aircraft Basic Price of each Aircraft set forth in Table 1 1b of the Purchase Agreement includes an aggregate price for General Electric Aircraft GEnx Rolls-Royce plc Trent 1000 series engines and all accessories, equipment and parts provided by the engine manufacturer (Engines). The adjustment in Engine Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: [*****] [* Where: *****] * Where: [*****] [*****] [*****] [*****] [*****] [*****] [*****] Where: [*****] [*****] [*****] ECIb is the base year engine escalation index (as set forth in Table 1b of this Purchase Agreement); ECI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics, Employment Cost Index for NAICS Aircraft Manufacturing - Wages and Salaries – Total Compensation (Series ID CIU2023211000000ICIU2013000000000I), calculated by establishing a three (3) month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th 12th, and 13th months prior to the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be used for the months of January, February February, and March; the value released for the second quarter will be used for the months of April, May May, and June; the value released for the third quarter will be used for the months of July, August August, and September; the value released for the fourth quarter will be used for the months of October, November November, and December. “[***]” This information is subject to confidential treatment and has been omitted and filed separately with the commission [* *****] [* *****] [* *****] * Where: [*****] [*****] [*****] CPIb is the base year engine escalation index (as set forth in Table 1b of this Purchase Agreement); and CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics, Producer Prices and Consumer Price Index - Industrial Commodities Index – All Urban Consumers (BLS Series ID WPU03THRU15CUUR0000SA0), calculated as a three (3) month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th 12th, and 13th months prior to the month of scheduled delivery of the applicable Aircraft. [*****] [*****] Where: [*****] is the number of calendar months which have elapsed from the Airframe Price Base Year and month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. The entire calculation of [*****] will be rounded to four (4) places, and the final value of B will be rounded to the nearest dollar. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the value of [*****]ECI and CPI. NOTENote:
(i) In determining the values of [*****]L and M, all calculations and resulting values will be expressed as a decimal rounded to the nearest ten-thousandth.
(iiiv) [The *****] is the numeric ratio attributed to labor in the Engine Price Adjustment formula. “[***]” This information is subject to confidential treatment and has been omitted and filed separately with the commission
* (iiibase year indices) [*****] is the numeric ratio attributed to materials in the Engine Price Adjustment formula.
(iv) The [*****]are the actual average values reported by the U.S. Department of Labor, Bureau of Labor Statistics. The actual average values are calculated as a three (3) month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th 12th, and 13th months prior to the Engine Price base year. The applicable base year and corresponding denominator is provided by Boeing in Table 1 1b of this Purchase Agreement.
(v) The final value of [*****] Pa will be rounded to the nearest dollar.
(vi) The Engine Price Adjustment will not be made if it will [*****] result in a decrease in the Engine Price.
Appears in 1 contract
ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for General Electric Aircraft GEnx series engines and all accessories, equipment and parts provided by the engine manufacturer General Electric Aircraft Engines (EnginesGE). The adjustment in Engine Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: Pe = [*****(Pb + F) x ( CPI / CPIb )] [*****] Where- Pb where CPIb is the engine escalation base year index as set forth in Table 1 of the Purchase Agreement.
(b) The following definitions will apply herein: [*****] [*****] [*****] [*****] [*****] [*****] [*****] Where: [*****] [*****] [*****] Pe = Engine Price Adjustment Pb = Engine Price (per Aircraft), as set forth in Table 1 of the Purchase Agreement. F = 0.005 x (N/12) x Pb where N is a the number of calendar months which have elapsed from the Engine Price base year and month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. CPI = L + ICI (rounded to the nearest hundredth) L = A value determined using the U.S. Department of Labor, Bureau of Labor Statistics, Statistics “Employment Cost Index for NAICS Aircraft Manufacturing - Wages and Salaries for Aircraft Manufacturing (Series BLS series ID CIU2023211000000Iciu2023211000000i)”, base 100 = December 2005, calculated by establishing as a three (3) -month arithmetic average value of the released values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th12th, 12th 13th, and 13th 14th months prior to the month of scheduled delivery Aircraft delivery, then multiplied by sixty-five percent (65%) (rounded to the nearest thousandth). ICI = A value determined using the U.S. Department of Labor, Bureau of Labor Statistics “Producer Prices and Price Index - Industrial Commodities Index (BLS series ID wpu03thru15)”, base 100 = Calendar year 1982, calculated as a 3-month arithmetic average of FED-PA-03712-EE1 December 12, 2011 the released monthly values (expressed as a decimal and rounded to the nearest hundredth) using the values for the 12th, 13th and 14th months prior to the month of scheduled Aircraft delivery, then multiplied by thirty-five percent (35%) (rounded to the nearest thousandth). The Engine Price Adjustment will not be made if it would result in a decrease in the Engine Price.
(c) The values of the applicable AircraftEmployment Cost Index Wages & Salaries and Producer Prices and Price Index—Industrial Commodities Index used will be those published as of a date thirty (30) days prior to the first day of the scheduled Aircraft delivery month to Customer. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be used for the months of January, February and March; the value released for the second quarter will be used for the months of April, May and June; the value released for the third quarter will be used for the months of July, August and September; the value released for the fourth quarter will be used for the months of October, November and December. “[***]” This information is subject Such values will be considered final and no Engine Price Adjustment will be made after Aircraft delivery for any subsequent changes in published index values. If no values have been released for an applicable month, the provisions set forth in paragraph 1(e), below, will apply. If prior to confidential treatment and has been omitted and filed separately with the commission [*****] [*****] [*****] Where: [*****] [*****] [*****] is a value determined using delivery of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics, Producer Prices and Price Index - Industrial Commodities Index (BLS Series ID WPU03THRU15), calculated as a three (3) month arithmetic average Statistics changes the base year for determination of the released monthly L or ICI values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11thdefined above, 12th and 13th months prior to the month of scheduled delivery of the applicable Aircraft. [*****] [*****] Where: [*****] is the number of calendar months which have elapsed from the Airframe Price Base Year and month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. The entire calculation of [*****] will be rounded to four (4) places, and the final value of B will be rounded to the nearest dollar. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the value of [*****]. NOTE:
(i) In determining the values of [*****], all calculations and resulting such rebase values will be expressed as a decimal rounded to the nearest ten-thousandth.
(ii) [*****] is the numeric ratio attributed to labor incorporated in the Engine Price Adjustment formula. “[***]” This information is subject to confidential treatment and has been omitted and filed separately with the commissioncalculation.
(iiid) [*****] If at the time of delivery of an Aircraft, Boeing is the numeric ratio attributed unable to materials in determine the Engine Price Adjustment formula.
(iv) The [*****]are because the actual average applicable values reported to be used to determine L and ICI have not been released by the U.S. Department of Labor, Bureau of Labor Statistics. The actual average values ; then, in the event the Engine Price escalation provisions are calculated as a three (3) month arithmetic average made non-enforceable or otherwise rendered null and void by any agency of the released monthly United States Government, GE agrees to meet jointly with Boeing and Customer (to the extent such parties may lawfully do so) to adjust equitably the Aircraft Basic Price of any affected Aircraft to reflect an allowance for increase or decrease in labor compensation and material costs occurring since February of the base price year which is consistent with the application provisions of this Supplemental Exhibit EE1.
(e) If prior to delivery of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics substantially revises the methodology used for the determination of the values to be used to determine the L and ICI values (expressed as in contrast to benchmark adjustments or other corrections of previously released values), Customer, Boeing and GE will, prior to delivery of such Aircraft, select a decimal and rounded substitute for such values from data published by the U.S. Department of Labor, Bureau of Labor Statistics or other similar data reported by non-governmental United States organizations, such substitute to lead in application to the nearest tenthsame adjustment result insofar as possible, as would have been achieved by continuing the use of the original values as they may have fluctuated during the applicable time period. Appropriate revisions of the formula will be made as required to reflect any substitute values. However, if within twenty-four (24) using months from delivery of the Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics FED-PA-03712-EE1 December 12, 2011 should resume releasing values for the 11th, 12th and 13th months prior needed to determine the Engine Price base year. The applicable base year and corresponding denominator is provided by Boeing in Table 1 of this Purchase Agreement.
(v) The final value of [*****] Adjustment, such values will be rounded used to determine the nearest dollar.
(vi) The increase or decrease in the Engine Price Adjustment will not be made if it will [*****] Engine Pricedetermined at the time of delivery of such Aircraft.
Appears in 1 contract
Samples: Purchase Agreement (Fedex Corp)
ENGINE ESCALATION. The Aircraft Basic Price of each Aircraft set forth in Table 1 1a of the Purchase Agreement includes an aggregate price for General Electric Aircraft GEnx series engines and all accessories, equipment and parts provided by the engine manufacturer (Engines). The adjustment in Engine Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: [*****] [* *****] * Where: [*****] [*****] [*****] [*****] [*****] [*****] [*****] * Where: [*****] [*****] [*****] ECIb is the base year engine escalation index (as set forth in Table 1a of this Purchase Agreement); ECI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics, Employment Cost Index for NAICS Aircraft Manufacturing - Wages and Salaries Total Compensation (BLS Series ID CIU2023211000000ICIU2013000000000I), calculated by establishing a three (3) month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th 12th, and 13th months prior to the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be used for the months of January, February February, and March; the value released for the second quarter will be used for the months of April, May May, and June; the value released for the third quarter will be used for the months of July, August August, and September; the value released for the fourth quarter will be used for the months of October, November November, and December. “[***]” This information is subject to confidential treatment and has been omitted and filed separately with the commission [* *****] [* *****] [* *****] * Where: [*****] [*****] [*****] CPIb is the base year index (as set forth in Table 1a of this Purchase Agreement); and CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics, Producer Prices and Consumer Price Index - Industrial Commodities Index All Urban Consumers (BLS Series ID WPU03THRU15CUUR0000SA0), calculated as a three (3) month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th 12th, and 13th months prior to the month of scheduled delivery of the applicable Aircraft. [*****] [*****] Where: [*****] is the number of calendar months which have elapsed from the Airframe Price Base Year and month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. The entire calculation of [*****] will be rounded to four (4) places, and the final value of B will be rounded to the nearest dollar. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the value of [*****]. NOTE:
(i) In determining the values of [*****], all calculations ECI and resulting values will be expressed as a decimal rounded to the nearest ten-thousandthCPI.
(ii) [*****] is the numeric ratio attributed to labor in the Engine Price Adjustment formula. “[***]” This information is subject to confidential treatment and has been omitted and filed separately with the commission
(iii) [*****] is the numeric ratio attributed to materials in the Engine Price Adjustment formula.
(iv) The [*****]are the actual average values reported by the U.S. Department of Labor, Bureau of Labor Statistics. The actual average values are calculated as a three (3) month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to the Engine Price base year. The applicable base year and corresponding denominator is provided by Boeing in Table 1 of this Purchase Agreement.
(v) The final value of [*****] will be rounded to the nearest dollar.
(vi) The Engine Price Adjustment will not be made if it will [*****] Engine Price.
Appears in 1 contract
ENGINE ESCALATION. (a) The Aircraft Basic Price of each Aircraft set forth in Table 1 of the Purchase Agreement includes an aggregate price for General Electric Aircraft GEnx series engines and all accessories, equipment and parts provided by the engine manufacturer General Electric Aircraft Engines (EnginesGE). The adjustment in Engine Price applicable to each Aircraft (Engine Price Adjustment) will be determined at the time of Aircraft delivery in accordance with the following formula: P(e) = [*****(P(b) + F) x ( CPI / CPI(b)_)] [*****] Where- P(b) where CPI(b) is the Engine Escalation Base Year Index as set forth in Table 1 of the Purchase Agreement.
(b) The following definitions will apply herein: [*****] [*****] [*****] [*****] [*****] [*****] [*****] Where: [*****] [*****] [*****] is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics, Employment Cost Index for NAICS Aircraft Manufacturing - Wages and Salaries P(e) = Engine Price Adjustment P(b) = Engine Price (Series ID CIU2023211000000Iper Aircraft), calculated by establishing a three (3) month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) using the values for the 11th, 12th and 13th months prior to the month of scheduled delivery set forth in Table 1 of the applicable AircraftPurchase Agreement. As the Employment Cost Index values are only released on a quarterly basis, the value released for the first quarter will be used for the months of January, February and March; the value released for the second quarter will be used for the months of April, May and June; the value released for the third quarter will be used for the months of July, August and September; the value released for the fourth quarter will be used for the months of October, November and December. “[***]” This information is subject to confidential treatment and has been omitted and filed separately with the commission [*****] [*****] [*****] Where: [*****] [*****] [*****] is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics, Producer Prices and Price Index - Industrial Commodities Index F = 0.005 x (BLS Series ID WPU03THRU15), calculated as a three (3N/12) month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenthx P(b) using the values for the 11th, 12th and 13th months prior to the month of scheduled delivery of the applicable Aircraft. [*****] [*****] Where: [*****] where N is the number of calendar months which have elapsed from the Airframe Engine Price Base Year and month Month up to and including the month of delivery, both as shown in Table 1 of the Purchase Agreement. The entire calculation of [*****] will be rounded to four CPI = L + ICI (4) places, and the final value of B will be rounded to the nearest dollar. As an example, for an Aircraft scheduled to be delivered in the month of July, the months June, July and August of the preceding year will be utilized in determining the hundredth) L = A value of [*****]. NOTE:
(i) In determining the values of [*****], all calculations and resulting values will be expressed as a decimal rounded to the nearest ten-thousandth.
(ii) [*****] is the numeric ratio attributed to labor in the Engine Price Adjustment formula. “[***]” This information is subject to confidential treatment and has been omitted and filed separately with the commission
(iii) [*****] is the numeric ratio attributed to materials in the Engine Price Adjustment formula.
(iv) The [*****]are the actual average values reported by determined using the U.S. Department of Labor, Bureau of Labor Statistics. The actual average values are Statistics "Employment Cost Index Wages and Salaries for Aircraft Manufacturing (SIC 3721)", calculated as a three 3-month arithmetic average of the released values (expressed as a decimal and rounded to the nearest tenth) using the values for the 12th, 13th and 14th months prior to the month of scheduled Aircraft delivery then multiplied by 65% and rounded to the nearest thousandth. ICI = A value determined using the U.S. Department of Labor, Bureau of Labor Statistics "Producer Prices and Price Index - Industrial Commodities Index ", calculated as a 3) -month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenthhundredth) using the values for the 11th12th, 12th 13th and 13th 14th months prior to the Engine Price base year. The applicable base year month of scheduled delivery of the Aircraft, then multiplied by 35% and corresponding denominator is provided by Boeing in Table 1 of this Purchase Agreement.
(v) The final value of [*****] will be rounded to the nearest dollar.
(vi) thousandth. The Engine Price Adjustment will not be made if it will [*****] would result in a decrease in the Engine Price.
(c) The values of the Employment Cost Index Wages & Salaries (SIC 3721) and Producer Prices and Price Index - Industrial Commodities Index used will be those published as of a date 30 days prior to the first day of the scheduled Aircraft delivery month to Customer. As the Employment Cost Index Wages and Salaries for Aircraft Manufacturing (SIC 3721) values are only released on a quarterly basis, the value released for the month of March will be used for the months of January and February; the value for June used for April and May; the value for September used for July and August; and the value for December used for October and November. Such values will be considered final and no Engine Price Adjustment will be made after Aircraft delivery for any subsequent changes in published index values. If no values have been released for an applicable month, the provisions set forth in Paragraph e, below, will apply. If prior to delivery of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics changes the base year for determination of the L or ICI values as defined above, such rebase values will be incorporated in the Engine Price Adjustment calculation.
(d) If at the time of delivery of an Aircraft, Boeing is unable to determine the Engine Price Adjustment because the applicable values to be used to determine L and ICI have not been released by the U.S. Department of Labor, Bureau of Labor Statistics, then: In the event the Engine Price escalation provisions are made non-enforceable or otherwise rendered null and void by any agency of the United States Government, GE agrees to meet jointly with Boeing and Customer (to the extent such parties may lawfully do so) to adjust equitably the Aircraft Basic Price of any affected Aircraft to reflect an allowance for increase or decrease in labor compensation and material costs occurring since February of the base price year which is consistent with the application provisions of this Supplemental Exhibit EE1.
(e) If prior to delivery of an Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics substantially revises the methodology used for the determination of the values to be used to determine the L and ICI values (in contrast to benchmark adjustments or other corrections of previously released values), Customer, Boeing and GE will, prior to delivery of such Aircraft, select a substitute for such values from data published by the U.S. Department of Labor, Bureau of Labor Statistics or other similar data reported by non-governmental United States organizations, such substitute to lead in application to the same adjustment result insofar as possible, as would have been achieved by continuing the use of the original values as they may have fluctuated during the applicable time period. Appropriate revisions of the formula will be made as required to reflect any substitute values. However, if within 24 months from delivery of the Aircraft, the U.S. Department of Labor, Bureau of Labor Statistics should resume releasing values for the months needed to determine the Engine Price Adjustment, such values will be used to determine the increase or decrease in the Engine Price Adjustment determined at the time of delivery of such Aircraft.
Appears in 1 contract